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Unichem Laboratories Ltd. Interim / Quarterly Report 2021
61109_rns_2021-11-02_5d029682-0ee9-481b-aa62-6c4a96f9d9ca.pdf
Interim / Quarterly Report
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November 2, 2021
Department of Corporate Services Mr. Hari K Bombay Stock Exchange Ltd. Asst. Vice President - Operations Mumbai- 400 001 Bandra (East), Mumbai – 400 051
Phiroze Jeejeebhoy Towers National Stock Exchange of India Ltd Dalal Street, Exchange Plaza, Bandra – Kurla Complex
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. Tuesday, November 2, 2021 approved the Unaudited Financial Results (Standalone & Consolidated) for the second quarter and six months ended September 30, 2021 . Enclosed herewith please find the Unaudited Financial Results (Standalone & Consolidated) for the second quarter and six months ended September 30, 2021 and the Auditors Reports thereon.
The Board Meeting commenced at 12:30 p.m. and concluded at 3:00 p.m.
Kindly take the same on your records.
Thanking you, FOR UNICHEM LABORATORIES LIMITED
PRADEEP BHANDARI Digitally signed by PRADEEP BHANDARI Date: 2021.11.02 15:07:26 +05'30'
Pradeep Bhandari Head- Legal & Company Secretary
Encl: a/a
Registered Office: Unichem Bhavan, PrabhatEstate, Off S. V.RoadJogeshwari (West), Mumbai – 400 102, Maharashtra, India.
| UNICHEM LABORATORIES LIMITED | |||||||
|---|---|---|---|---|---|---|---|
| CIN: L99999MH1962PLC012451 | |||||||
| Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2021 | ₹ Lakhs | ||||||
| Particulars | Quarter ended 30th Sep'21 (Unaudited) |
Quarter ended 30th Jun'21 (Unaudited) |
Quarter ended 30th Sep'20 (Unaudited) |
Six months ended 30th Sep'21 (Unaudited) |
Six months ended 30th Sep'20 (Unaudited) |
Year ended 31st Mar'21 (Audited) |
|
| $\mathbf{I}$ | Revenue from operations | 21,696.73 | 20,080.31 | 31,093.18 | 41,777.04 | 55,170.30 | 1,12,397.28 |
| Ш | Other income | 534 13 | 1,255.96 | 1.041.11 | 1,790.09 | 2.914 11 | 4,737.11 |
| Ш | Total income (I+II) | 22.230.86 | 21,336.27 | 32.134.29 | 43,567.13 | 58.084.41 | 1,17,134.39 |
| IV. | EXPENSES | ||||||
| Cost of materials consumed | 10.049 56 | 10,009.34 | 12,760.64 | 20,058 90 | 23,547.95 | 44.913.87 | |
| Purchase of stock-in-trade | 44.27 | 38.40 | 26.78 | 82.67 | 32.11 | 53.52 | |
| Changes in inventories of finished goods and work-in- progress |
(1, 555.23) | (1,840.89) | (629.59) | (3,396.12) | (517.12) | (1,672.68) | |
| Employee benefits expense | 6.170.36 | 6.309.36 | 5.685.23 | 12.479.72 | 11.641.30 | 23.403.73 | |
| Finance costs | 102.94 | 13.91 | 16.41 | 11685 | 32 17 | 130.06 | |
| Depreciation and amortization expenses | 2.044.93 | 2.010.65 | 1.892.70 | 4.055.58 | 3.723.93 | 7.589.18 | |
| Other expenses Total expenses (IV) |
8,033.01 24,889.84 |
8,433.80 | 8,866.25 28,618.42 |
16,466 81 49,864.41 |
16,862.84 55,323.18 |
36,152.16 1,10,569.84 |
|
| V | Profit / (loss) before exceptional items and tax (III-IV) | (2,658.98) | 24,974.57 (3,638.30) |
3,515.87 | (6, 297.28) | 2,761.23 | 6,564.55 |
| VI | Exceptional items | ||||||
| VII | Profit / (loss) before tax (V-VI) | (2,658.98) | (3,638.30) | 3,515.87 | (6, 297.28) | 2,761.23 | 6,564.55 |
| VIII Tax expense | |||||||
| (1) Current tax | 482.00 | 482.00 | |||||
| (2) Deferred tax charge / (credit) (Refer note 4) | (515.66) | (879.14) | (1,394.80) | 1,094.30 | |||
| (3) Short / (excess) provision for tax (earlier years) | 23.70 | 23.70 | 62.02 | ||||
| (515.66) | (855.44) | 482.00 | (1.371.10) | 482.00 | 1,156.32 | ||
| IX | Profit / (loss) for the period after tax (VII-VIII) | (2, 143.32) | (2,782.86) | 3.033.87 | (4,926.18) | 2.279.23 | 5.408.23 |
| x | Other Comprehensive Income / (Loss) A. (i) Items that will not be reclassified subsequently to profit or loss |
||||||
| - Remeasurement of the net defined benefit plan | (194.08) | (23.60) | 18.59 | (21768) | (158.10) | (97.68) | |
| - Equity instruments through other comprehensive income (ii) Income tax (expense) / credit relating to items that will not be reclassified to profit or loss |
2,504.10 | ||||||
| - Remeasurement of the net defined benefit plan | (24.58) | (24.58) | 24 58 | ||||
| - Equity instruments through other comprehensive income (net) |
(300.51) | ||||||
| B. (i) Items that will be reclassified to profit or loss (ii) Income tax relating to items that will be reclassified to profit or loss |
|||||||
| Total of Other Comprehensive Income / (Loss) | (218.66) | (23.60) | 18.59 | (242.26) | (158.10) | 2.130.49 | |
| ΧI | Total Comprehensive Income for the period (IX+X) | (2,361.98) | (2,806.46) | 3,052.46 | (5, 168, 44) | 2,121.13 | 7,538.72 |
| XII XIII |
Paid-up equity share capital (Face value of ₹ 2/- per share) Other Equity (Reserves excluding revaluation reserve) |
1,408.12 | 1,408.12 | 1,408 12 | 1,408 12 | 1,408.12 | 1,408.12 2,68,325.35 |
| XIV | Earnings per equity share (Face value of $\bar{z}$ 2/- per share) (not annualized) |
||||||
| (1) Basic | (3.04) | (3.95) | 4 31 | (7.00) | 3.24 | 7.68 | |
| (2) Diluted | (3.04) | (3.95) | 4 3 1 | (7.00) | 3.24 | 768 |
Notes:
The unaudited standalone financial results for the quarter and half year ended 30th September, 2021 have been reviewed by the Audit Committee and approved by the $\overline{1}$ Board of Directors of the Company at its meeting held on 2nd November, 2021. The statutory auditors have carried out a limited review of the standalone financial results for the quarter and half year ended 30th September, 2021.
The above unaudited standalone financial results have been prepared in accordance with the quidelines issued by the Securities and Exchange Board of India ("SEBI") $\overline{2}$ and the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013.
Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'. -3
As on 30th September, 2021, deferred tax assets is recognised on the amount of tax loss, unabsorbed tax depreciation and other temporary differences to the extent of $\overline{a}$ deferred tax liability. For the periods upto 30th June, 2021, deferred tax liability exceeded the deferred tax assets (including assets in respect of brought forward losses and depreciation).
On 9th July, 2014, the European Commission ("EU") decided to impose an unjustified fine of Euro 13.96 million, jointly and severally on the Company and its subsidiary 5 Niche Generics Ltd ("Niche") contending that they had acted in breach of EU competition law as Niche Generics Ltd had, in early 2005 (when the Company was only a part owner and financial investor in Niche) had agreed to settle a financially crippling patent litigation with Laboratories Servier. The Company vehemently denies any wrongdoing on the part of either itself or Niche. Both the Company & Niche had submitted appeals in September 2014 to the General Court of the EU seeking appropriate relief in the matter. The General Court of the EU has rejected the appeals vide Order dated 12th December, 2018 and confirmed the fine of Euro 13.96 million. 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 EU and outcome of the appeals are awaited. Considering the above, in view of the management, no provision for the aforesaid fine is considered necessary. Based on above, fine imposed by the EU of Euro 13.96 million (equivalent to ₹ 12,056.64 lakhs) is disclosed under contingent liability. The statutory auditors have given Emphasis of Matter in their limited review report on standalone and consolidated financial results for the quarter and half year ended 30th September, 2021 and in earlier reports
The COVID 19 pandemic has adversely impacted the global economic conditions and its impact still remains uncertain. Considering the Company is in the business of 6 manufacturing and supplying pharmaceutical products which is categorized under essential goods, the management believes that the impact of the pandemic may not be significant. The Company will continue to closely monitor any material changes to future economic conditions.
During the quarter ended 30th September, 2021, the Company has invested USD 2,00,000 (equivalent to ₹ 147.64 lakhs) towards equity in wholly owned subsidiary - $\overline{7}$ "Unichem (China) Pvt Ltd."
8 The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below:
| The agaregate amount of revenue expensiture inforred on recedibilitana percipanient as indigated in the relevant expense neads to as tabalated below. | ₹ Lakhs | |||||
|---|---|---|---|---|---|---|
| Particulars | 30th Sep'21 | Quarter ended Quarter ended Quarter ended 30th Jun'21 |
30th Sep'20 | 30th Sep'21 | Half vear ended Half vear ended 30th Sep'20 |
Year ended 31st Mar' 21 |
| Total R&D expenditure | 2.520.04 | 3.097 70 | 2.664 09 | 5.617.74 | 5.700.78 | 12.990.81 |
9 Statement of Standalone Assets and Liabilities:
| ₹ Lakhs | ||
|---|---|---|
| Particulars | As at 30th Sep, 2021 |
As at 31st Mar, 2021 |
| Unaudited | Audited | |
| I. ASSETS Non-current assets |
||
| (a) Property, plant and equipment | 83,917.04 | 81,637.22 |
| (b) Right-of-use assets (c) Capital work-in-progress |
2,929.75 55.574.00 |
2,985.65 56,773.16 |
| (d) Investment property | 350 11 | 353 28 |
| (e) Financial assets | ||
| (i) Investments | 28,676.50 | 28,399.04 |
| (ii) Loans | 12.58 | 7.28 |
| (iii) Other financial assets | 1,018.08 | 1,026.33 |
| (f) Other non-current assets | 6,797.66 | 10,187.11 |
| 1,79,275.72 | 1,81,369.07 | |
| Current assets | ||
| (a) Inventories | 42,712.02 | 38,611.65 |
| (b) Financial assets | ||
| (i) Investments | 9,223.07 | 23,642.92 |
| (ii) Trade receivables | 32,745.16 | 36,048.49 |
| (iii) Cash and bank balances | ||
| Cash & cash equivalents Other bank balances |
8,791.55 479.76 |
5,259.86 498.78 |
| (iv) Loans | 4.96 | 4 47 |
| (v) Other financial assets | 485.84 | 919.82 |
| (c) Other current assets | 29,473.80 | 25,550.67 |
| 1,23,916.16 | 1,30,536.66 | |
| TOTAL ASSETS | 3,03,191.88 | 3,11,905.73 |
| II. EQUITY AND LIABILITIES | ||
| Equity | ||
| (a) Equity share capital | 1,408.12 | 1,408.12 |
| (b) Other equity | 2,60,487.05 | 2,68,325.35 |
| 2,61,895.17 | 2,69,733.47 | |
| Liabilities | ||
| Non-current liabilities | ||
| (a) Financial liabilities | ||
| (i) Borrowings | 4,922.80 | |
| (ii) Lease liabilities | 145 16 | 146 16 |
| (b) Provisions | 3,802.55 | 3,041.36 |
| (c) Deferred tax liabilities (net) | 1,370.22 | |
| (d) Other long term liabilities | 469.21 9,339.72 |
469 21 5,026.95 |
| Current liabilities | ||
| (a) Financial liabilities | ||
| (i) Borrowings | 2,347.90 | |
| (ii) Lease liabilities | 1.92 | 1.84 |
| (iii) Trade payables Total outstanding dues of micro enterprises and small enterprises |
1,030.46 | 631 27 |
| Total outstanding dues of creditors other | 12,915.14 | 18,225.56 |
| than micro enterprises and small enterprises (iv) Other financial liabilities |
8,155.91 | 11,567.20 |
| (b) Other current liabilities | 5,850.07 | 5,236.84 |
| (c) Provisions | 1,655.59 | 1,482.60 |
| 31,956.99 | 37,145.31 | |
| TOTAL EQUITY AND LIABILITIES | 3,03,191.88 | 3,11,905.73 |
| 10 | Statement of Standalone Cash Flows (Unaudited) | ||
|---|---|---|---|
| Particulars | Six months ended 30th September, 2021 |
Six months ended 30th September, 2020 |
|
|---|---|---|---|
| A Cash Flow from Operating Activities | |||
| Net Profit / (Loss) before tax | (6, 297.28) | 2,761.23 | |
| Adiustments: | |||
| Depreciation / amortisation (including investment | |||
| property) | 4,052.53 | 3,720.15 | |
| Loss / (profit) on sale / discard of property, plant and | |||
| equipment (net) | (6.81) | 20.05 | |
| Unrealised exchange difference (net) | (15.97) | 976.81 | |
| Rent income | (23.11) | (23.11) | |
| Guarantee commission income | (14.67) | (13.46) | |
| Finance cost | 116.85 | 32.18 | |
| Provision for doubtful debts, loans, advances & | |||
| deposits (net) | (21.37) | (85.22) | |
| Employees compensation expenses (ESOP) | 112.28 | 112.28 | |
| Fair value gain on investments (net) | (102.60) | (1, 122.10) | |
| Interest income | (547.57) | (1,427.83) | |
| Sundry balance written off / (written back) | (61.91) | 25.13 | |
| Dividend income | (0.34) | (0.34) | |
| 3,487.31 | 2,214.54 | ||
| Operating Profit / (Loss) Before Working Capital Changes | (2,809.97) | 4.975.77 | |
| Working Capital Adjustments: | |||
| Trade receivables & other assets | (477.77) | (11, 115.42) | |
| Inventories | (4, 100.37) | (2,223.07) | |
| Trade payables & other liabilities | (3,205,74) | 2,745.24 | |
| (7,783.88) | (10, 593.25) | ||
| Cash generated from / (used in) operations | (10, 593.85) | (5,617.48) | |
| Direct taxes refund received / (payment made) | 511.80 | (1.53) | |
| Net Cash Flow from / (used in) Operating Activities [A] | (10,082.05) | (5,619.01) | |
| B. Cash Flow from Investing Activities | |||
| Purchase of property, plant & equipment including capital work-in-progress |
(6,028,83) | (17, 456.68) | |
| Proceeds from sale of property, plant and equipment | 110.21 | 77.37 | |
| Investments made | |||
| - in subsidiaries (at cost) | (222.90) | (872.07) | |
| Sale / (purchase) of current investment (net) | 14,516.56 | 18,551.61 | |
| Rent received | 23 11 | 23 11 | |
| (Increase) / decrease in escrow bank accounts | 19.02 | (170.06) | |
| Interest received | 929.23 | 1,520 34 | |
| Dividend received | 0 34 | 0.34 | |
| Net Cash Flow from / (used in) Investing Activities [B] | 9,346.74 | 1,673.96 | |
| C. Cash Flow from Financing Activities | |||
| Increase / (decrease) in working capital borrowings | |||
| (net) | 1,117.50 | (21.50) | |
| Receipt / (payment) of term loan from bank | 6,200.00 | ||
| Payments of lease liabilities | (7.58) | (7.60) | |
| Finance cost paid | (203.88) | (25.44) | |
| Dividend paid | (2,839.04) | (2,837.17) | |
| 4.267.00 | (2,891.71) | ||
| Net Cash Flow from / (used in) Financing Activities [C] | |||
| 3,531.69 | (6,836.76) | ||
| 759 24 | |||
| 3,531.69 | (6,077.52) | ||
| Net (Decrease) / Increase in Cash and Cash Equivalents [A+B+C] Add: Current investments reclassified as cash and cash equivalents during the period Net (Decrease) / Increase in Cash and Cash Equivalents |
|||
| Cash and Cash Equivalents at the beginning of the period |
5,259.86 | 20,307.86 |
By Order of the Board For Unichem Laboratories Limited
Prakash Digitally signed by
Amrut Mody Date: 2021.11.02
Amrut Mody 14:49:26 +05'30'
Dr. Prakash A. Mody
Chairman & Managing Director
DIN: 00001285
UNICHEM
UNICHEM LABORATORIES LIMITED
CINICIE IN EADORATORICO EDITILE
CIN: L99999MH1962PLC012451
outto for the Quarter & Half Ye $\overline{a}$ and $\overline{a}$ and $\overline{a}$ $0.004$
| Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2021 | ₹ Lakhs | ||||||
|---|---|---|---|---|---|---|---|
| Particulars | Quarter ended 30th Sep'21 (Unaudited) |
Quarter ended 30th Jun'21 (Unaudited) |
Quarter ended 30th Sep'20 (Unaudited) |
Six months ended 30th Sep'21 (Unaudited) |
Six months ended 30th Sep'20 (Unaudited) |
Year ended 31st Mar'21 (Audited) |
|
| Revenue from operations | 29,066.08 | 29,791.26 | 31,750.83 | 58,857.34 | 63,473.32 | 1,23,513.53 | |
| п | Other income | 265.18 | 1,580.86 | 1,004.05 | 1,846 04 | 2,675.07 | 5,018.76 |
| Ш | Total income (I+II) | 29,331.26 | 31,372.12 | 32,754.88 | 60,703.38 | 66,148.39 | 1,28,532.29 |
| 1V | EXPENSES | ||||||
| Cost of materials consumed | 10.076.13 | 10,719.09 | 13,032.44 | 20,795.22 | 24,470.42 | 46,698 72 | |
| Purchase of stock-in-trade | 44 27 | 38.40 | 26.78 | 82.67 | 32 11 | 53 52 | |
| Changes in inventories of finished goods and work-in- progress |
(336.21) | 277.98 | (3,230.74) | (58.23) | (2,899.68) | (8, 814.04) | |
| Employee benefits expense | 8,091.13 | 8,162.34 | 7,503.41 | 16,253.47 | 15,269.51 | 30,697.06 | |
| Finance costs | 214 79 | 101.35 | 78.86 | 316 14 | 203.51 | 511 86 | |
| Depreciation and amortization expenses | 2,242 96 | 2,211 93 | 2,11293 | 4,454 89 | 4,166 85 | 8,435.63 | |
| Other expenses | 10,527.99 | 10,757.60 | 11,432 77 | 21,285.59 | 22,407 05 | 45,767.35 | |
| Total expenses (IV) | 30,861.06 | 32,268.69 | 30,956.45 | 63,129.75 | 63,649.77 | 1,23,350.10 | |
| ۷ VI |
Share of profit / (loss) in associate (net of tax) | (21.40) | (7.57) | 0.18 | (28.97) | 4 37 | (34 25) |
| Profit / (loss) before exceptional items and tax (III-IV+V) | (1,551.20) | (904.14) | 1,798.61 | (2,455,34) | 2,502.99 | 5,147.94 | |
| VII | Exceptional items Profit / (loss) before tax (VI-VII) |
||||||
| VIII IX |
Tax expense | (1,551.20) | (904.14) | 1,798.61 | (2, 455.34) | 2,502.99 | 5,147.94 |
| (1) Current tax | 364 | 207.82 | 957.27 | 211 46 | 1,382 29 | 1,668.26 | |
| (2) Deferred tax charge / (credit) (Refer note 4) | (273.16) | 13.22 | (32.48) | (259.94) | 3.44 | (14.82) | |
| (3) Short / (excess) provision for tax (earlier years) | 23.70 | 23 70 | 62 02 | ||||
| (269.52) | 244.74 | 924.79 | (24.78) | 1,385.73 | 1,715.46 | ||
| х | Profit / (loss) for the period after tax (VIII-IX) | (1, 281.68) | (1, 148.88) | 873.82 | (2,430.56) | 1,117.26 | 3.432 48 |
| XI | Other Comprehensive Income / (Loss) A (i) Items that will not be reclassified subsequently to profit or loss |
||||||
| - Remeasurement of the net defined benefit plan | (194.08) | (23.60) | 18.59 | (217.68) | (158.10) | (9768) | |
| - Equity instruments through other comprehensive income |
2,504.10 | ||||||
| (ii) Income tax (expense) / credit relating to items that will not be reclassified to profit or loss |
|||||||
| - Remeasurement of the net defined benefit plan | (24.58) | (24.58) | 24.58 | ||||
| - Equity instruments through other comprehensive income (net) |
(300.51) | ||||||
| (i) Items that will be reclassified to profit or loss (Foreign Β. currency translation difference) |
(52.03) | 8.09 | (214.74) | (43.94) | (199.53) | (491.02) | |
| (ii) Income tax relating to items that will be reclassified to profit or loss |
|||||||
| Total of Other Comprehensive Income / (Loss) | (270.69) | (15.51) | (196.15) | (286.20) | (357.63) | 1,639.47 | |
| XII | Total Comprehensive Income for the period (X+XI) | (1,552.37) | (1, 164.39) | 677.67 | (2,716.76) | 759.63 | 5,071.95 |
| XIII XIV |
Paid-up equity share capital (Face value of ₹ 2/- per share) Other Equity (Reserves excluding revaluation reserve) |
1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 2,54,275.36 |
| Earnings per equity share (Face value of $\bar{\tau}$ 2/- per share) | |||||||
| XV | (not annualized) | ||||||
| $(1)$ Basic | (1.82) | (1.63) | 1.24 | (3.45) | 1.59 | 4.88 | |
| (2) Diluted | (1.82) | (1.63) | 1.24 | (3.45) | 1.59 | 4.88 |
Notes:
The above unaudited consolidated financial results for the quarter ended 30th September, 2021 have been reviewed by the Audit Committee and approved by the $\blacktriangleleft$ Board of Directors of the Company at its meeting held on 2nd November, 2021. The statutory auditors have carried out a limited review of the consolidated financial results for the quarter ended 30th September, 2021.
The above unaudited consolidated financial results have been prepared in accordance with the guidelines issued by the Securities and Exchange Board of India $\mathbf 2$ ("SEBI") and the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013.
Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'. $\overline{3}$
In respect of the Company, as on 30th September, 2021, deferred tax assets is recognised on the amount of tax loss, unabsorbed tax depreciation and other temporary differences to the extent of deferred tax liability. For the periods upto 30th June, 2021, deferred tax liability exceeded the deferred tax assets (including assets in respect of brought forward losses and depreciation).
In respect of a subsidiary, deferred tax assets (net) are recognised as per applicable tax laws.
- On 9th July, 2014, the European Commission ("EU") decided to impose an unjustified fine of Euro 13.96 million, jointly and severally on the Company and its subsidiary 5 Niche Generics Ltd ("Niche") contending that they had acted in breach of EU competition law as Niche Generics Ltd had, in early 2005 (when the Company was only a part owner and financial investor in Niche) had agreed to settle a financially crippling patent litigation with Laboratories Servier. The Company vehemently denies any wrongdoing on the part of either itself or Niche. Both the Company & Niche had submitted appeals in September 2014 to the General Court of the EU seeking appropriate relief in the matter. The General Court of the EU has rejected the appeals vide Order dated 12th December, 2018 and confirmed the fine of Euro 13.96 million. 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 EU and outcome of the appeals are awaited. Considering the above, in view of the management, no provision for the aforesaid fine is considered necessary. Based on above, fine imposed by the EU of Euro 13.96 million (equivalent to ₹ 12,056.64 lakhs) is disclosed under contingent liability. The statutory auditors have given Emphasis of Matter in their limited review report on standalone and consolidated financial results for the quarter and half year ended 30th September, 2021 and in earlier reports.
- The COVID 19 pandemic has adversely impacted the global economic conditions and its impact still remains uncertain. Considering the Company and its subsidiaries 6 are in the business of manufacturing and supplying pharmaceutical products, the management believes that the impact of the pandemic may not be significant. The Company and its subsidiaries will continue to closely monitor any material changes to future economic conditions.
- The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below: $\overline{7}$
| ---- | ||||||
|---|---|---|---|---|---|---|
| Particulars | ⊩ Quarter ended ' 30th Sep'21 |
30th Jun'21 | 30th Sep'20 | Quarter ended Quarter ended Half year ended Half year ended 30th Sep'21 |
30th Sep'20 | Year ended 31st Mar' 21 |
| Total R&D expenditure | 2.520.04 | 3.097.70 | 2.664.09 | 5.61774 | 5.700.78 | 12.990.81 |
8 Statement of Consolidated Assets and Liabilities:
| ₹ Lakhs | ||
|---|---|---|
| Particulars | As at 30th Sep, 2021 |
As at 31st Mar, 2021 |
| Unaudited | Audited | |
| I. ASSETS | ||
| Non-current assets | ||
| (a) Property, plant and equipment | 85,410.30 | 83,281.41 |
| (b) Right-of-use assets | 4,331.87 | 4,606.35 |
| (c) Capital work-in-progress | 55,537.42 | 56,749.62 |
| (d) Investment property | 350.11 | 353.28 |
| (e) Goodwill | 154.51 | 154.51 |
| (f) Investment accounted for using the equity method | 564 26 | 593.23 |
| (g) Financial assets | ||
| (i) Investments | 14,971.73 | 14,965 86 |
| (ii) Loans | 12.58 | 7.28 |
| (iii) Other financial assets | 1,018.08 | 1,026 33 |
| (h) Deferred tax assets (net) | 263.37 | 1,395.36 |
| (i) Other non-current assets | 8,450.68 | 11,706 50 |
| 1,71,064.91 | 1,74,839.73 | |
| Current assets | ||
| (a) Inventories | 54,509.95 | 53,833.98 |
| (b) Financial Assets | ||
| (i) Investments | 9,223.07 | 23,642.92 |
| (ii) Trade receivables | 36,424 87 | 25,026.95 |
| (iii) Cash and bank balances | ||
| Cash & cash equivalents | 11,346.91 | 7,746.08 |
| Other bank balances | 479.76 | 498 78 |
| (iv) Loans | 4.96 | 447 |
| (v) Other financial assets | 485.84 | 91982 |
| (c) Current tax assets (net) | 87.19 | |
| (d) Other current assets | 30,008.21 | 26,058.67 |
| TOTAL ASSETS | 1,42,570.76 3,13,635.67 |
1,37,731.67 3,12,571.40 |
| II. EQUITY AND LIABILITIES | ||
| Equity | ||
| (a) Equity share capital | 1,408.12 | 1,408.12 |
| (b) Other equity | 2,48,888.58 | 2,54,275.36 |
| 2,50,296.70 | 2,55,683.48 | |
$F1$ akho
| Liabilities | ||
|---|---|---|
| Non-current liabilities | ||
| (a) Financial liabilities | ||
| (i) Borrowings | 4,922.80 | |
| (ii) Lease liabilities | 1,218.59 | 1,431.02 |
| (b) Provisions | 3,802.55 | 3,041.36 |
| (c) Deferred tax liabilities (net) | 1,370.22 | |
| (d) Other long term liabilities | 469.21 | 469 21 |
| 10,413.15 | 6,311.81 | |
| Current liabilities | ||
| (a) Financial liabilities | ||
| (i) Borrowings | 20.830.94 419.58 |
10,062.50 415.79 |
| (ii) Lease liabilities | ||
| (iii) Trade payables | ||
| Total outstanding dues of micro enterprises and small enterprises |
1.030.46 | 631.27 |
| Total outstanding dues of creditors other than micro enterprises and small enterprises |
14,562 34 | 20,376.87 |
| (iv) Other financial liabilities | 8.204.81 | 11,618.51 |
| (b) Other current liabilities | 6,222.10 | 5,662.50 |
| (c) Provisions | 1,655.59 | 1,482.60 |
| (d) Current tax liabilities (net) | 326 07 | |
| 52,925.82 | 50,576.11 | |
| TOTAL EQUITY AND LIABILITIES | 3,13,635.67 | 3,12,571.40 |
$\boldsymbol{9}$
Statement of Consolidated Cash Flows (Unaudited):
| 4.458.06 (6.81) (86.98) (23.11) 28.97 316.14 |
(2,455,34) 4.169.99 1,281.06 203.51 |
2,502.99 54.24 (19.95) (4.37) |
|---|---|---|
| 95 24 | (3.88) | |
| 112 28 | 147 15 | |
| (102.60) | (1, 122.10) | |
| (553.42) | (1,432.21) | |
| (61.91) | 25.13 | |
| (0.34) | (0.34) | |
| 4,175.52 | 3,298.23 | |
| 1,720.18 | 5,801.22 | |
| (15, 312, 14) | (5.476.25) | |
| (675.96) | (4,505,19) | |
| (3,765.96) | 1,378.45 | |
| (8,602.99) | ||
| (2,801.77) | ||
| (723.44) | ||
| (3,525.21) | ||
| (19, 754.06) (18,033,88) (112.93) (18,146.81) |
₹ Lakhs
| B. Cash Flow from Investing Activities | ||
|---|---|---|
| Purchase of property, plant & equipment including capital | ||
| work-in-progress | (6, 137, 26) | (17, 462.18) |
| Proceeds from sale of property, plant and equipment | 110.21 | 33.40 |
| Sale / (purchase) of current investment (net) | 14,516.60 | 18,551.61 |
| Rent received | 23.11 | 19.95 |
| (Increase) / decrease in escrow bank accounts | 19.02 | (84.84) |
| Interest received | 935.08 | 1,524.72 |
| Dividend received | 0 34 | 0.34 |
| Net Cash Flow from / (used in) Investing Activities [B] | 9,467.10 | 2,583.00 |
| C. Cash Flow from Financing Activities | ||
| Increase / (decrease) in working capital borrowings (net) | 9.538.04 | (2,951,99) |
| Payments of Lease liabilities | (241.31) | (240.55) |
| Receipt / (payment) of term loan from bank | 6,200.00 | 86 42 |
| Finance cost paid | (377.15) | (164.35) |
| Dividend paid | (2,839.04) | (2.837.17) |
| Net Cash Flow from / (used in) Financing Activities | ||
| IC] | 12,280 54 | (6.107.64) |
| Net (Decrease) / Increase in Cash and Cash | 3,600.83 | (7,049.85) |
| Equivalents [A+B+C] | ||
| Add: Current investments reclassified as cash and cash | ||
| equivalents during the period | 759 24 | |
| Net (Decrease) / Increase in Cash and Cash | ||
| Equivalents | 3,600.83 | (6, 290.61) |
| Cash and Cash Equivalents at the beginning of the period |
7,746.08 | 22,621.99 |
10 Other income of subsidiary at USA for the year ended 31st March, 2021 includes write back of loan of USD 4.23 lakhs (equivalent ₹ 313.44 lakhs) which was received under Paycheck Protection Program [PPP]. The subsidiary
| By Order of the Board | |
|---|---|
| For Unichem Laboratories Limited | |
| Digitally signed by Prakash Prakash Amrut Mody Amrut Mody Date: 2021.11.02 |
|
| Dr Prakash A Mody | |
| Place: Mumbai | Chairman & Managing Director |
| Date: 2nd November, 2021 | DIN: 00001285 |
To The Board of Directors Unichem Laboratories Limited
- We have reviewed the accompanying statement of unaudited standalone of Unichem L and half year ended 30th September, 2021, 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 responsibility
-
The Statement which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.
-
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 the 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 of unaudited financial results, prepared in accordance with recognition and measurement principles laid down in the applicable Indian Accounting Standards i.e. 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 the Listing Regulations, 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 5 of the Statement, 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. 12,056.64 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. our earlier quarterly and annual standalone and consolidated limited review reports and audit reports. Our opinion / conclusion has not been modified in respect of the above matter.
For N. A. Shah Associates LLP
Chartered Accountants : 116560W / W100149
Milan Mody
Partner Membership No.: 103286 UDIN: 21103286AAAAIJ2398 Place: Mumbai Date: 2nd November, 2021
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 loss after tax and total comprehensive loss of its associate for the quarter and half year ended 30th September, 2021 ( 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 .
Management responsibility
-
The Statement is the responsibility of the Holding Company's management and has been approved by the Board of Directors. The Statement has been prepared in accordance with the recognition ng principles generally accepted in India.
-
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. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. 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 Listing Regulations, as amended, to the extent applicable.
-
- These unaudited consolidated financial results:
- (a) include 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. Unichem (China) Pvt. Ltd.
(b) include 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 the Listing Regulations, 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 5 of the Statement for the quarter and half year ended 30th September, 2021, 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. 12,056.64 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. Considering the above, in view of the management, no provision for the aforesaid fine is considered necessary. our earlier quarterly and annual standalone and consolidated limited review reports and audit reports. Our opinion / conclusion has not been modified in respect of the above matter.
Other Matters
-
- We did not review the interim financial statements of five subsidiaries, whose interim financial statements reflect total assets of Rs. 52,068.46 lakhs as at 30th September, 2021, total revenues (including other income) of Rs. 20,029.92 lakhs and Rs. 40,221.13 lakhs, total net profit / (loss) after tax of Rs. (76.54) lakhs and Rs. 696.52 lakhs and total comprehensive income / (loss) of Rs. (26.53) lakhs and Rs. 770.47 lakhs for the quarter and half year ended 30th September, 2021 respectively and cash outflow (net) of Rs. 97.18 lakhs for the half year ended 30th September, 2021, 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 the Listing Regulations (as amended), in so far as it relates to aforesaid subsidiaries located outside India is based on the report of other auditors.
-
- We also did not review the interim financial information of subsidiary at China whose financial information reflect total assets of Rs. 155.37 lakhs as at 30th September, 2021, total revenues (including other income) of Rs. 1.15 lakhs and Rs. 1.02 lakhs, total net loss after tax of Rs. 40.73 lakhs and Rs. 84.11 lakhs and total comprehensive loss of Rs. 38.79 lakhs and Rs. 86.82 lakhs for the quarter and half year ended 30th September, 2021 respectively and cash inflow (net) of Rs. 134.22 lakhs for the half year ended 30th September, 2021 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 share of net loss after tax / total comprehensive loss of Rs. 21.40 lakhs and Rs. 28.97 lakhs for the quarter and half year ended 30th September, 2021 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 the above matters.
For N. A. Shah Associates LLP
Chartered Accountants Registration No.: 116560W / W100149
Milan Mody Partner Membership No.: 103286 UDIN: 21103286AAAAIK7389 Place: Mumbai Date: 2nd November, 2021