AI assistant
Unichem Laboratories Ltd. Interim / Quarterly Report 2020
61109_rns_2020-02-03_cbaf3079-ecc5-4b79-8d64-f2441c4e8c5b.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
February 3, 2020
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. Monday February 3, 2020 inter-alia approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter and nine months ended December 31, 2019. Enclosed herewith please find the Unaudited financial Results (Standalone and Consolidated) for the quarter and nine months ended December 31, 2019 and the Limited Review Reports of the Auditors thereon.
C~ •iS ,::>n--,)
The Board meeting commenced at 11.45 am and concluded at ~ · ,,fpm
Kindly take the same on your records.
Thanking you, FOR UNICHEM LABORATORIES LIMITED
Pradeep Bhandari Head- Legal & Company Secretary Encl: a/a
| Statement of Standalone Unaudited Results for the Quarter & Nine Months ended 31st December, 2019. | f Lakhs | ||||||
|---|---|---|---|---|---|---|---|
| Particulars | Quarter ended ended 30th 31st Dec'19 (Unaudited) |
Quarter Sep'19 (Unaudited) |
Quarter ended 31st Dec'18 (Unaudited) |
Nine months ended 31st Dec'19 (Unaudited) |
Nine months ended 31st Dec'18 (Unaudited) |
For the year ended 31st Mar' 19 (Audited) |
|
| I | CONTINUING OPERATIONS Revenue from operations |
23,119.50 | 22,509.74 | 24,436.12 | 68,881 .38 | 69,065.75 | 96,773.89 |
| II | Other income | 2,300.85 | 2,904.90 | 2,729.01 | 8,004.10 | 7,898.41 | 10,154.23 |
| Ill | Total income (1+11) | 25,420.35 | 25,414.64 | 27,165.13 | 76,885.48 | 76,964.16 | 1,06,928.12 |
| IV | EXPENSES | ||||||
| Cost of materials consumed (including provisions) | 11 ,092.41 | 10,218. 16 | 11 ,768.00 | 31,389.49 | 33,912.00 | 44 ,317.29 | |
| Purchase of stock-in-trade | 8.67 | 21.07 | - | 65.92 | 10.15 | 20.86 | |
| Changes in inventories of finished goods and work- in-progress |
(1,474.90) | 418.75 | (2,407.01) | (1 ,184.91) | (4,348.20) | (3,053. 94) | |
| Employee benefits expense | 5,081.73 41.84 |
5,212.35 23.08 |
4,603.67 12.72 |
15,180.52 69.66 |
12,948.66 20.56 |
17,755.75 61.71 |
|
| Finance costs | 100.00 | 402.83 | 863.42 | ||||
| Impairment loss on financia l assets (refer note 4) | - | ||||||
| Depreciation and amortization expense | 1,725.71 | 1,786.42 | 1,682.77 | 5,197.73 | 4,399.03 31,738.91 |
6,1 71 .25 42,949.80 |
|
| Other exoenses | 10.981 .83 27,457.29 |
10,221 .19 27,901.02 |
12,306.88 28,067.03 |
31 ,393.79 82,112.20 |
79,083.94 | 1,09,086.14 | |
| Total expenses (IV) ProfiU(loss) before exceptional items and tax (Ill |
|||||||
| V | IV) | (2,036.94) | (2,486.38) | (901.90) | (5,226.72) | (2,119.78) | (2,158.02) |
| VI | Exceptional items | - | - | - | - | - | - |
| VII | ProfiU/loss) before tax (V-VI) | (2,036.94 | (2,486.38) | (901.90) | (5,226.72) | (2,119.78) | (2,158.02) |
| VIII | Tax expense | ||||||
| (1) Current tax | - | - | - | - | - | - | |
| (2) Deferred tax (Refer note 6) | - | - | (1,409.50} | (749 .82) | (2 ,330.25) | (2,737 .77) | |
| (3) Short I (excess} provision for tax (earlier vears\ frefer note 51 |
- | (124.45) | (124 .45) | (124.45) | |||
| IX | Profit/(loss) for the period from continuing Operations (VII-VIII) |
(2,036.94) | (2,486.38) | 632.05 | (4,476.90) | 334.92 | 704.20 |
| DISCONTINUED OPERATIONS | |||||||
| X | Discontinued Operations | ||||||
| Profit/(loss} before tax from discontinued operations (refer note 7) |
- | - | (367.94) | - | (727.29) | 246. 96 | |
| ProfiU(Loss) for the period from discontinued operations |
- | - | (367.94) | - | (727.29) | 246.96 | |
| Tax on discontinued operations | - | - | (166.00) | - | (278.00) | 71 .24 | |
| X | Profitl(loss) from discontinued operations (after tax) |
- | - | (201.94) | - | (449.29) | 175.72 |
| XI | ProfiU(loss) for the period (IX+Xl | (2,036.94) | (2,486.381 | 430.11 | (4,476.90) | (114.37) | 879.92 |
| XII | Other Comprehensive lncome/(Loss) | ||||||
| (i} Items that will not be reclassified A. subsequently to profit or loss |
13.42 | (158.09) | (105.13) | (143.88) | (9 .77) | (41.4 1) | |
| (ii} Income tax expense/ (credit} relating to items that will not be reclassified to profit or |
- | - | 32.80 | (0.25) | 3.05 | 12.92 | |
| loss (i} Items that will be reclassified to profit or B. loss |
- | - | - | - | - | - | |
| (ii} Income tax relating to items that will be reclassified to profit or loss |
- | - | - | - | - | ||
| Total of Other Comprehensive Income/ (Loss) | 13.42 | (158.09) | (72.33) | (144.13) | (6.72) | (28.49) | |
| XIII | Total Comprehensive Income for the period (Xl+XII) |
(2,023.52) | (2,644.47) | 357.78 | (4,621.03) | (121.09) | 851 .43 |
| XIV | Paid-up equity share capital (Face value oft 2/- per share} |
1,408.12 | 1,408.12 | 1,407.66 | 1,408.12 | 1,407.66 | 1,407.67 |
| xv | Other Equity (Reserves excluding revaluation reserve} |
2,71,785.74 |
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 • CIN: L99999MH1962PLC012451
| Particulars | Quarter ended ended 30th 31st Dec'19 (Unaudited) |
Quarter Sep'19 (Unaudited) |
Quarter ended 31st Dec'18 (Unaudited) |
Nine months ended 31st Dec'19 (Unaudited) |
Nine months ended 31st Dec'18 (Unaudited) |
For the year ended 31st Mar' 19 (Audited) |
|
|---|---|---|---|---|---|---|---|
| XVI | Earnings per equity share (for continuing operation) in ~: |
||||||
| (1) Basic | (2.89) | (3.53) | 0.90 | (6.35) | 0.48 | 1.00 | |
| (2) Diluted | (2.89) | (3.53) | 0.90 | (6.35) | 0.48 | 1.00 | |
| XVII | Earnings per equity share (for discontinued operation) in z: |
||||||
| (1) Basic | (0.29) | (0.64) | 0.25 | ||||
| (2) Diluted | (0.29) | (0.64) | 0.25 | ||||
| XVIII | Earnings per equity share (for discontinued & continuing operation) in z: |
||||||
| (1) Basic | (2.89) | (3.53) | 0.61 | (6.35) | (0.16) | 1.25 | |
| (2) Diluted | (2.89) | (3.53) | 0.61 | (6.35) | (0.16) | 1.25 |
Notes :
1 The unaudited standalone financial results for the quarter and nine months ended 31st December, 2019 have been reviewed by the Audit Committee and approved by the Board of Direclors of the Company at its meeting held on 3rd February, 2020. The statutory auditors have carried out a limited review of the standalone financial results for the quarter and nine months ended 31st December, 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" of z Nil for the quarter ended 31st December 2019 (~ Nil for the quarter ended 3oth September 2019, z Nil for the quarter ended 31st December 2018, ~ Nil for the nine months ended 31st December 2019, z 302.83 lakhs for the nine months ended 31st December 2018 and ~ 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 to the extent of deferred tax liability.
- 7 Loss in discontinued operations for the quarter ended 31st December 2018 includes additional provision made towards claim from regulatory authority of~ 367.94 lakhs. Further, loss in discontinued operations for the nine months ended 31st December 2018 includes additional provision made towards doubtful recovery of amount receivable from the government authorities of z 328.90 lakhs. 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.
- 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 z 11,228.03 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 nine months ended 31st December 2019.
- 9 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 31st Dec'19 |
Quarter ended 30th Sep'19 |
Quarter ended 31st Dec'18 |
Nine month ended 31st Dec'18 |
For the year ended 31st Mar' 19 |
|
| Total R&D expenditure | 4,587.25 | 3,941.38 | 4,669.30 | 15,903.84 | ||
| Place: Mumbai | r. Pr sh A. Mody |
|||||
| Date: 3rd Februa , 2020 | Chai121an & Managing Director DIN No.: 00001285 |
|||||
| Statement of Consolidated Unaudited Results for the Quarter & Nine Months ended 31st December, 2019. | f Lakhs | ||||||
|---|---|---|---|---|---|---|---|
| Particulars | 31st Dec'19 (Unaudited) |
30th Sep'19 (Unaudited) |
Quarter ended Quarter ended Quarter ended 31st Dec'18 (Unaudited) |
Nine months ended 31st Dec'19 (Unaudited) |
Nine months ended 31st Dec'18 (Unaudited) |
For the year ended 31st Mar' 19 (Audited) |
|
| I | CONTINUING OPERATIONS Revenue from operations |
29,705.30 | 29,560.64 | 30,282.09 | 89,039.46 | 80,514.26 | 1, 17,938.52 |
| II | Other income | 2,509.58 | 2 813.28 | 2,729.02 33,011.11 |
7,949.09 96,988.55 |
7,769.91 88 284.17 |
9,841.29 1,27,779.81 |
| Ill | Total income 0+11\ | 32 214.88 | 32 373.92 | ||||
| IV | EXPENSES | ||||||
| Cost of materials consumed (including provisions) |
11,075.83 | 10,732.24 | 10,342.21 | 32,595.98 | 36,118.54 | 47,691.79 | |
| Purchase of stock-in-trade | 8.67 | 21.07 | - | 65.92 | 10.15 | 20.86 | |
| Changes in inventories of finished goods and work-in-progress |
(2,124.95) | (286.31) | 163.16 | (3,004.96) | (2,737.02) | (3,247.73) | |
| Employee benefits expense | 6,599.52 | 6,776.15 | 6,119.90 | 19,841.41 | 17,222.18 | 23,933.21 | |
| Finance costs | 231.68 | 185.53 | 70.04 | 545.25 | 330.09 | 613.94 560.59 |
|
| Impairment loss on financial assets | - | - | 100.00 | - 5,870.73 |
100.00 4,833.78 |
6,684.58 | |
| Depreciation and amortization expense | 1,947.32 | 2,098.15 14,998.09 |
1,842.06 15,590.76 |
45,959.14 | 40,684.08 | 57,519.63 | |
| Other expenses Total exoenses (IVI |
15,862.03 33,600.10 |
34,524.92 | 34,228.13 | 101,873.47 | 96,561.80 | 1, 33, 776!!l_ | |
| V | Share of profit/(loss) in associate (net of tax) | 45.26 | (2.27) | 43.15 | 19.85 | 14.22 | 6.52 |
| VI | Profit/(loss) before exceptional items and tax (111-IV+V) |
(1,339.96) | (2,153.27) | (1,173.87) | (4,865.07) | (8,263.41) | (5,990.54) |
| VII | Excentional items | - 11 339.96' |
- 12,153.271 |
- 11 ,173.871 |
- (4 865.07 |
- 18,263.41 |
- (5,990.54) |
| VIII IX |
Profit/lloss) before tax (VI-Vlll Tax expense |
||||||
| (1) Current tax | (8.70) | 69.46 | 0.02 | 255.53 | 0.02 (2,409.09) |
713.83 (4,024 15) |
|
| (2) Deferred tax (Refer note 5) (3) Short/ (excess) provision for tax |
128.46 - |
(1.85) - |
(1,221.15) (124.45) |
(821.18) - |
(124.45) | (124.45) | |
| X | !earlier vears l I Refer note 4\ Profitl(loss) for the period from continuing |
(1,459.72) | (2,220.88) | 171.71 | (4,299.42) | (5,729.89) | (2,555.77) |
| Operations (VIII-IX) DISCONTINUED OPERATIONS |
|||||||
| XI | Discontinued Operations | ||||||
| Profitl(loss) before tax from discontinued operations (refer note 6) |
- | - | (367.94) | - | (727.29) | 246.96 | |
| Profit/(Loss) for the period from discontinued operations |
- | - | (367.94) | - | (727.29) | 246.96 | |
| Tax on discontinued ocerations | - | - | (166.001 | - | 1278.00) | 71.24 | |
| Profitl(loss) from discontinued operations (after tax) |
- | - | (201.94) | - | (449.29) | 175.72 | |
| XII | Profitl(loss\ for the period fX+XII | 11 459.721 | 12 220.88) | 130.231 | 14,299.421 | 16179.18\ | 12,380.051 |
| XIII | Other Comprehensive lncome/(Loss) | ||||||
| (i) Items that will not be reclassified A. subsequently to profit or loss |
13.42 | (158.09) | (105.13) | (143.88) | (9.77) | (41.41) | |
| (ii) Income tax expense/ (credit) relating to items that will not be reclassified to profit or loss |
- | - | 32.80 | (0.25) | 3.05 | 12.92 | |
| (i) Items that will be reclassified to profit or B. loss |
(223.82) | 165.10 | (86.32) | (195.37) | 319.99 | 215.46 | |
| (ii) Income tax relating to items that will be reclassified to profit or loss |
- | - | - | - | - | ||
| Total of Other Comprehensive Income/ (Loss) | (210.40) | 7.01 | (158.65) | (339.50) | 313.27 | 186.97 | |
| XIV | Total Comprehensive Income for the period (Xll+XIII) |
(1,670.12) | (2,213.87) | (188.88) | (4,638.92) | (5,865.91) | (2,193.08) |
| xv | Paid-up equity share capital (Face value of~ 21- per share) |
1,408.12 | 1,408.12 | 1,407.66 | 1,408.12 | 1,407.66 | 1,407.67 |
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 • CIN: L99999MH1962PLC012451
| Particulars | 31st Oec'19 (Unaudited) |
Quarter ended Quarter ended Quarter ended 30th Sep'19 (Unaudited) |
31st Dec'18 (Unaudited) |
Nine months ended 31st Dec'19 (Unaudited) |
Nine months ended 31st Dec'18 (Unaudited) |
For the year ended 31st Mar' 19 (Audited) |
|
|---|---|---|---|---|---|---|---|
| XVI | Other Equity (Reserves excluding revaluation reserve) |
2,60,583.02 | |||||
| XVII | Earnings per equity share (for continuing operation) in {: |
||||||
| (1) Basic (2) Diluted |
(2 07) (2.07) |
(3.15) (3.15) |
0.24 0.24 |
(6 11) (6.11) |
(8.14) (8.14) |
(3.63) (3 63) |
|
| XVIII | Earnings per equity share (for discontinued operation) in ~ : |
||||||
| (1) Basic | (0.29) | (0.64) | 0.25 | ||||
| (2) Diluted | (0.29) | (0.64) | 0.25 | ||||
| XIX | Earnings per equity share (for discontinued & continuing operation) in ~: |
||||||
| (1) Basic | (2.07) | (3.15) | (0.04) | (611) | (8.77) | (3 .38) | |
| (2) Diluted | (2.07) | (3.15) | (0.04) | (6.11) | (8.78) | (3.38) |
Notes :
1 The unaudited consolidated financial results for the quarter and nine months ended 31st December, 2019 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 3rd February, 2020. The statutory auditors have carried out a limited review of the consolidated financial results for the quarter and nine months ended 31st December, 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 to the extent of deferred tax liability.
- 6 Loss in discontinued operations for the quarter ended 31st December 2018 includes additional provision made towards claim from regulatory authority of ~367.94 lakhs . Further. loss in discontinued operations for the nine months ended 31st December 2018 includes additional provision made towards doubtful recovery of amount receivable from the government authorities of { 328.90 lakhs. 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 { 11 ,228 03 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 nine months ended 31st December 2019.
- 8 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 31stDec'19 |
Quarter ended 30th Sep'19 |
Quarter ended 31st Dec'18 |
Nine month ended 31st Dec'19 |
Nine month ended 31st Dec'18 |
For the year ended 31st Mar' 19 |
|||
| Total R&D expenditure | 4,587.25 | 3,941.38 | 4,669.30 | 12,513.60 | 12,379.55 | 15,903.84 | |||
| 9 | The consolidated figures for the corresponding quarter ended 31st December 2018 and for the nine months e~edfi1sl Decembe;.,2018 are approved \Y / by the Board of Directors and have not been subjected to Limited review by the auditors. |
||||||||
| ;~rder of h Boar | |||||||||
| ,t;oh | ab ato,;,. Um;t,d | ||||||||
| Dr. P ash A. Mody |
|||||||||
| Place: Mumbai Date: 3rd February, 2020 |
C N No.: 00001285 |
rman ( Managing Director |
Registered Office: Unichern 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 • CIN: L99999MH1962PLC012451
N. A. SHAH ASSOCIATES LLP ORIGIN l\L ! Chartered Accountants
Limited Review Report on quarterly and year to date standalone unaudited 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 nine months ended 31 st December, 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.
2. 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 dovvn 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.
3. Auditor's responsibility
OiJr 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 '3n audit opinion.
4. 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 disclos€:d 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.: 8 4145, Paragon Centre, Pandurang Budhkar Marg, Warli, Mumbai 400 013. Tel.: 91-2240733000 •Fax: 91-2240733090 •E-mail: [email protected]
N. A. SHAH ASSOCIATES LLP Chartered Accountants
Limited Review Report on quarterly and year to date standalone unaudited 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 8 of notes to the standalone financial results for the quarter and nine months ended 31 st December 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 11,228.03 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 September 2019, 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 Firm's registration number: 116560W / W100149
(!lb. /k/t Milan Mody Partner
Membership number: 103286 ~ a6 c... UDI N: 2..o \ O "!, 2.. %° 6 A A. P..,., J:!..... A.? ~' o Place: Mumbai Date: ~ 3 FEB 2020
N. A. SHAH ASSOCIATES LLP Chartered Accountants
Lirr,ited Review Report on quarterly and year to date 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 I loss of its associate for the quarter and nine months ended 31 st December, 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 nine months ended 3P1December, 2018 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 and nine months ended 31st December 2019.
Management's responsibility
- 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
- 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. ~ SHAH ASSOCIAlES LLP Chartered Accountants
Limited Review Report on quarterly and year to date 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 nine months ended 31st December 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 11,228.03 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 September 2019,30th June 2019 and year ended 31 st 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 revenues (including other income) of Rs 19,337.05 lakhs and Rs 61,222.10 lakhs, total net loss after tax of Rs 97.48 lakhs and net profit after tax of Rs 563.42 lakhs and total comprehensive income of Rs (18.69) lakhs and Rs 755.16 lakhs for the quarter and nine months ended 31 st December,2019 respectively 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.
