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Unichem Laboratories Ltd. — Interim / Quarterly Report 2023
Nov 11, 2022
61109_rns_2022-11-11_065ab7a3-a9af-4e77-9d84-081305711700.pdf
Interim / Quarterly Report
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November 11, 2022
BSE Limited
25th P. J. Towers, Dalal Street, Fort, Mumbai - 400 001 Scrip Code -506690
National Stock Exchange of India Ltd Exchange Plaza, Bandra – Kurla Complex Bandra (East), Mumbai – 400 051 Symbol – UNICHEMLAB
Dear Sir,
Sub: Outcome of Board Meeting
We would like to inform you that Board of Directors at its Meeting held today, i.e. Friday, November 11, 2022, approved the Unaudited Financial Results (Standalone & Consolidated) for the Second and Six months ended September 30, 2022. Enclosed herewith please find the Unaudited Financial Results (Standalone & Consolidated) for the second quarter and six months ended September 30, 2022, and the Auditors Reports thereon.
The Board Meeting commenced at 11:30 a.m. and concluded at 01:15 p.m.
Kindly take the same on your records.
Thanking you,
For UNICHEM LABORATORIES LIMITED
PRADEEP Digitally signed by PRADEEP BHANDARI BHANDARI Date: 2022.11.11 13:17:49 +05'30'
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PRADEEP BHANDARI Head- Legal & Company Secretary
Encl: a/a
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Registered Office: Unichem Bhavan, Prabhat Estate, Off S. V. Road Jogeshwari (West), Mumbai – 400 102, Maharashtra, India.
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451
Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2022
| UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Results for the Quarter & Half Year ended 30th September, 2022 |
|---|---|---|---|---|---|---|
| ₹ Lakhs | ||||||
| Particulars | Quarter ended 30th Sep'22 (Unaudited) |
Quarter ended 30th Jun'22 (Unaudited) |
Quarter ended 30th Sep'21 (Unaudited) |
Six months ended 30th Sep'22 (Unaudited) |
Six months ended 30th Sep'21 (Unaudited) |
Year ended 31st Mar'22 (Audited) |
| I II Revenue from operations Other income(Refer note 4) |
26,563.83 1,078.05 |
24,478.13 1,184.53 |
21,696.73 534.13 |
51,041.96 2,262.58 |
41,777.04 1,790.09 |
94,292.66 4,206.79 |
| III Total income (I+II) |
27,641.88 | 25,662.66 | 22,230.86 | 53,304.54 | 43,567.13 | 98,499.45 |
| IV EXPENSES Changes in inventories of finished goods and work-in-progress Cost of materials consumed Purchase of stock-in-trade Employee benefits expense Finance costs Impairment loss on financial assets (Refer note 8) Other expenses Depreciation and amortization expenses |
10,816.41 30.49 1,834.61 6,897.32 302.13 56.95 2,645.67 10,041.23 |
12,058.23 44.95 (1,783.41) 6,706.12 166.66 56.95 2,256.97 8,484.10 |
10,049.56 44.27 (1,555.23) 6,170.36 102.94 - 2,044.93 8,033.01 |
22,874.64 75.44 51.20 13,603.44 468.79 113.90 4,902.64 18,525.33 |
20,058.90 82.67 (3,396.12) 12,479.72 116.85 - 4,055.58 16,466.81 |
43,492.03 134.90 (5,279.05) 25,079.27 207.42 806.07 8,318.76 34,414.82 |
| Total expenses(IV) | 32,624.81 | 27,990.57 | 24,889.84 | 60,615.38 | 49,864.41 | 1,07,174.22 |
| V VI Profit / (loss) before exceptional items and tax (III-IV) Exceptional items |
(4,982.93) 502.24 |
(2,327.91) - |
(2,658.98) - |
(7,310.84) 502.24 |
(6,297.28) - |
(8,674.77) - |
| VII Profit /(loss) before tax(V-VI) |
(5,485.17) | (2,327.91) | (2,658.98) | (7,813.08) | (6,297.28) | (8,674.77) |
| VIII (1) Current tax (2) Deferred tax charge / (credit) (Refer note 5) (3) Short / (excess) provision for tax (earlier years) Tax expense |
- 2,061.22 - |
- - - |
- (515.66) - |
- 2,061.22 - |
- (1,394.80) 23.70 |
- (3,155.51) 23.70 |
| 2,061.22 | - | (515.66) | 2,061.22 | (1,371.10) | (3,131.81) | |
| IX Profit /(loss) for the period after tax (VII-VIII) |
(7,546.39) | (2,327.91) | (2,143.32) | (9,874.30) | (4,926.18) | (5,542.96) |
| X A. (i) Items that will not be reclassified subsequently to profit or loss - Remeasurement of the net defined benefit plan - Equity instruments through other comprehensive income (ii) Income tax (expense) / credit relating to items that will not be reclassified to profit or loss - Remeasurement of the net defined benefit plan - Equity instruments through other comprehensive income (net) 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 Other Comprehensive Income / (Loss) |
(18.10) 1,586.82 - 2,061.22 - - |
206.16 - - - - - |
(194.08) - (24.58) - - - |
188.06 1,586.82 - 2,061.22 - - |
(217.68) - (24.58) - - - |
(323.91) 7,646.40 (24.58) (1,760.71) - - |
| Total of Other Comprehensive Income /(Loss) | 3,629.94 | 206.16 | (218.66) | 3,836.10 | (242.26) | 5,537.20 |
| XI Total Comprehensive Income for the period (IX+X) |
(3,916.45) | (2,121.75) | (2,361.98) | (6,038.20) | (5,168.44) | (5.76) |
| XII XIII Other Equity (Reserves excludingrevaluation reserve) Paid-up equity share capital (Face value of ₹ 2/- per share) |
1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 2,65,795.97 |
| XIV (1) Basic (2) Diluted Earnings per equity share (Face value of ₹ 2/- per share) (not annualized) |
(10.72) (10.72) |
(3.31) (3.31) |
(3.04) (3.04) |
(14.02) (14.02) |
(7.00) (7.00) |
(7.87) (7.87) |
| Notes: 1 The above unaudited standalone financial results for the quarter and half year ended 30th September, 2022 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 11th November, 2022. The statutory auditors have carried out a limited review of the standalone financial results for the quarter and half year ended 30th September, 2022. |
||||||
| 2 3 4 5 6 'Other Income' for the year ended 31st March, 2022 includes dividend income of ₹ 1,000.98 lakhs received on investments in equity shares held by the Company. 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. 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. 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 Niche Generics Ltd. (“Niche”) contending that they had acted in breach of EU competition law as Niche 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. In this regard, the statutory auditors of Niche had given qualified audit opinion on the financial statement of Niche for the year ended 31st March, 2022 and continued the qualification in their limited review report for the quarter and half year ended 30th September, 2022. They had stated that, "previously the outcome of the appeal was sufficiently uncertain that a contingent liability was deemed sufficient, however, following the hearing in October 2021 and their review of the available documentation, their opinion is that it is more likely than not that Niche will be liable for the fine of Euro 13.96 million (equivalent to ₹ 11,164.21 lakhs) and hence, they believe that this should be provided for in the financial statement of Niche. As per the Board of Directors of Niche, there remains an inherent uncertainty as to the outcome of the appeal and therefore, the Directors are of the opinion that no provision should be made at this point of time." The management has obtained the counsel view on this matter and they have stated that there has not been any formal change in position after the last hearing and the uncertainty as in the past continues. Considering the status quo, in view of the management, no provision for the aforesaid fine is considered necessary and the matter is continued to be disclosed under contingent liability. Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'. |
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.
3 Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'.
4 'Other Income' for the year ended 31st March, 2022 includes dividend income of ₹ 1,000.98 lakhs received on investments in equity shares held by the Company.
- 5 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.
6 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 Niche Generics Ltd. (“Niche”) contending that they had acted in breach of EU competition law as Niche 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.
In this regard, the statutory auditors of Niche had given qualified audit opinion on the financial statement of Niche for the year ended 31st March, 2022 and continued the qualification in their limited review report for the quarter and half year ended 30th September, 2022. They had stated that, "previously the outcome of the appeal was sufficiently uncertain that a contingent liability was deemed sufficient, however, following the hearing in October 2021 and their review of the available documentation, their opinion is that it is more likely than not that Niche will be liable for the fine of Euro 13.96 million (equivalent to ₹ 11,164.21 lakhs) and hence, they believe that this should be provided for in the financial statement of Niche. As per the Board of Directors of Niche, there remains an inherent uncertainty as to the outcome of the appeal and therefore, the Directors are of the opinion that no provision should be made at this point of time." The management has obtained the counsel view on this matter and they have stated that there has not been any formal change in position after the last hearing and the uncertainty as in the past continues. Considering the status quo, in view of the management, no provision for the aforesaid fine is considered necessary and the matter is continued to be disclosed under contingent liability.
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-
As at last audited balance sheet date, the Company has aggregate financial exposure of ₹ 12,267.33 lakhs in Niche comprising of investment, trade receivable and corporate guarantee given to bank for loan availed by Niche. Considering the impact of ongoing litigation as elaborated in the above para and accumulated losses in Niche as at balance sheet date, the statutory auditor of the Company is of the view that the Company would need to provide for impairment on the exposure involved of ₹ 12,267.33 lakhs. However, the Company is of the view that such provision for impairment on exposure would be required only in the event of unfavourable outcome of the appeal which itself is uncertain. On the above matter, the auditors of the Company had given qualified opinion in their audit report on standalone financial statement for the quarter ended 30th June, 2022 and year ended 31st March, 2022 and continued the qualification in their limited review report for the quarter and half year ended 30th September, 2022.
-
Further, as per the management, the future business outlook and projections of the subsidiary are sufficient so as not to warrant any impairment on the investments in subsidiary (Niche) unless the outcome of EU matter is not in favour of the subsidiary.
-
7 During the quarter, the Company, post receipt of necessary regulatory approval, has sold specified number of shares in Optimus Drugs Private Limited (‘Optimus’) to Sekhmet Pharmaventures Private Limited (‘Purchaser’) in terms of Share Purchase Agreement (‘SPA’) dated 10th May, 2022. Further the number of shares sold included equity shares received pursuant to conversion of bonus Compulsory Convertible Preference shares (allotted during the quarter). The balance number of unsold equity shares is valued at fair value and are classified as Fair Value through Profit and Loss. The gain/loss on sale of shares is accounted/disclosed as follows in quarter and half year ended 30th September, 2022:
Exceptional item
This represents gain / loss on disposal of 7,29,849 equity shares out of new equity shares of Optimus (received on conversion of Compulsory Convertible Preference Shares which were issued during the quarter). The gain is determined after reducing from sale proceeds fair value of bonus equity shares and related transaction cost incurred on such sale.
Recognized in OCI
-
The net gain of Rs. 1,586.82 lakhs (before related taxes thereon) on disposal of equity shares of Optimus which was accounted under ‘Fair value through other comprehensive income’ category.
-
8 Impairment loss on financial assets for the year ended 31st March, 2022 includes ₹ 569.31 lakhs of provision towards impairment of equity investment in ‘Synchron Research Services Private Limited’ (associate company).
-
9 During the quarter ended 30th June, 2022, the Company has invested USD 1,87,500 (equivalent to ₹ 146.87 lakhs) towards equity in wholly owned subsidiary - "Unichem (China) Pvt Ltd."
-
10 The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below:
| The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below: | The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below: | The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below: | The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below: | The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below: | The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below: | 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 Sep'22 |
Quarter ended 30th Jun'22 |
Quarter ended 30th Sep'21 |
Half year ended 30th Sep'22 |
Half year ended 30th Sep'21 |
Year ended 31st Mar' 22 |
| Total R&D expenditure | 2,957.07 | 2,205.28 | 2,520.04 | 5,162.35 | 5,617.74 | 11,274.10 |
- 11 Statement of Standalone Assets and Liabilities:
| ₹ Lakhs | ||||
|---|---|---|---|---|
| Particulars | As at 30th Sep, 2022 |
As at 31st Mar, 2022 |
||
| Unaudited | Audited | |||
| I. ASSETS | ||||
| Non-current assets | ||||
| (a) Property, plant and equipment | 1,16,214.04 | 91,089.73 | ||
| (b) Right-of-use assets | 5,154.70 | 5,221.93 | ||
| (c) Capital work-in-progress | 21,085.38 | 49,417.99 | ||
| (d) Financial assets | ||||
| (i) Investments | 12,780.67 | 12,621.69 | ||
| (ii) Loans | 12.58 | 11.60 | ||
| (iii) Other financial assets | 828.39 | 813.06 | ||
| (e) Other non-current assets | 14,752.85 | 15,636.32 | ||
| 1,70,828.61 | 1,74,812.32 | |||
| Current assets | ||||
| (a) Inventories | 44,474.04 | 46,069.37 | ||
| (b) Financial assets | ||||
| (i) Investments | 149.53 | 26,358.02 | ||
| (ii) Trade receivables | 36,523.30 | 38,084.29 | ||
| (iii) Cash and bank balances | ||||
| Cash & cash equivalents | 29,244.07 | 9,412.69 | ||
| Other bank balances | 143.07 | 490.59 | ||
| (iv) Loans | 5.76 | 5.23 | ||
| (v) Other financial assets | 31.20 | 55.07 | ||
| (c) Other current assets | 16,517.45 | 16,573.85 | ||
| 1,27,088.42 | 1,37,049.11 | |||
| Non-current Assets held for sale | 346.96 | 346.96 | ||
| TOTAL ASSETS | 2,98,263.99 | 3,12,208.39 |
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| II. EQUITY AND LIABILITIES | ||||
|---|---|---|---|---|
| Equity | ||||
| (a) Equity share capital | 1,408.12 | 1,408.12 | ||
| (b) Other equity | 2,57,009.95 | 2,65,795.97 | ||
| 2,58,418.07 | 2,67,204.09 | |||
| Liabilities | ||||
| Non-current liabilities | ||||
| (a) Financial liabilities | ||||
| (i) Borrowings | 7,633.77 | 8,901.06 | ||
| (ii) Lease liabilities | 615.55 | 596.21 | ||
| (b) Provisions | 4,188.71 | 3,996.17 | ||
| (c) Other non-current liabilities | 97.74 | 469.21 | ||
| 12,535.77 | 13,962.65 | |||
| Current liabilities | ||||
| (a) Financial liabilities | ||||
| (i) Borrowings | 3,775.53 | 3,709.17 | ||
| (ii) Lease liabilities | 2.00 | 2.00 | ||
| (iii) Trade payables | ||||
| Total outstanding dues of micro enterprises | 265.14 | 884.98 | ||
| and small enterprises | ||||
| Total outstanding dues of creditors other | 13,113.60 | 14,822.96 | ||
| than micro enterprises and small enterprises | ||||
| (iv) Other financial liabilities | 3,387.89 | 5,245.18 | ||
| (b) Other current liabilities | 5,074.43 | 4,768.08 | ||
| (c) Provisions | 1,691.56 | 1,609.28 | ||
| 27,310.15 | 31,041.65 | |||
| TOTAL EQUITY AND LIABILITIES | 2,98,263.99 | 3,12,208.39 |
12 Statement of Standalone Cash Flows (Unaudited):
| 12 | Statement of Standalone Cash Flows (Unaudited): | |||
|---|---|---|---|---|
| ₹ Lakhs | ||||
| Particulars | Six months ended 30th September, 2022 |
Six months ended 30th September, 2021 |
||
| A.Cash Flow from Operating Activities | ||||
| Net Profit / (Loss) before tax | (7,813.08) | (6,297.28) | ||
| Adjustments: | ||||
| Depreciation / amortisation (including investment | ||||
| property) | 4,902.95 | 4,052.53 | ||
| Loss / (profit) on sale / discard of property, plant and | ||||
| equipment (net) | 1.37 | (6.81) | ||
| Unrealised exchange difference (net) | (491.27) | (15.97) | ||
| Rent income | (0.05) | (23.11) | ||
| Guarantee commission income | (12.13) | (14.67) | ||
| Finance cost | 468.78 | 116.85 | ||
| Provision for doubtful debts, loans, advances & | ||||
| deposits (net) | 56.77 | (21.37) | ||
| Share-based payments to employees | 52.46 | 112.28 | ||
| Net loss on sales of shares (refer note 7) | 502.24 | - | ||
| Fair value gain on investments (net) | (222.30) | (102.60) | ||
| Interest income | (8.50) | (547.57) | ||
| Sundry balance written off / (written back) | (0.68) | (61.91) | ||
| Impairment loss on financial assets | ||||
| - inter corporate deposits & interest thereon | 113.90 | - | ||
| Dividend income | (0.46) | (0.34) | ||
| 5,363.08 | 3,487.31 | |||
| Operating Profit / (Loss) Before Working Capital Changes | (2,450.00) | (2,809.97) | ||
| Working Capital Adjustments: | ||||
| Trade receivables & other assets | 2,110.15 | (477.77) | ||
| Inventories | 1,595.33 | (4,100.37) | ||
| Trade payables & other liabilities | (1,801.48) | (3,205.74) | ||
| 1,904.00 | (7,783.88) | |||
| Cash generated from / (used in) operations | (546.00) | (10,593.85) | ||
| Direct taxes refund received / (payment made) | (5.31) | 511.80 | ||
| Net Cash Flow from / (used in) Operating Activities [A] | (551.31) | (10,082.05) |
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| B. Cash Flow from Investing Activities Purchase of property, plant & equipment including capital work in-progress Proceeds from sale of property, plant and equipment Investments made - in subsidiaries (at cost) Sale / (purchase) of current investment (net) Sale of investment in Optimus shares (net) (refer note 7) Rent received (Increase) / decrease in escrow bank accounts Interest received Dividend received Net Cash Flow from / (used in) Investing Activities [B] |
- (2,605.26) 39.09 (146.86) 22,566.42 1,084.57 0.05 347.52 32.37 0.46 |
(6,028.83) 110.21 (222.90) 14,516.56 - 23.11 19.02 929.23 0.34 |
||
|---|---|---|---|---|
| 21,318.36 | 9,346.74 | |||
| C. Cash Flow from Financing Activities Increase / (decrease) in working capital borrowings (net) Receipt / (payment) of term loan from bank Payments of lease liabilities Finance cost paid Dividend paid Net Cash Flow from / (used in) Financing Activities [C] |
(17.99) (1,283.16) (7.58) (425.99) (2,842.99) |
1,117.50 6,200.00 (7.58) (203.88) (2,839.04) |
||
| (4,577.71) | 4,267.00 | |||
| 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 Cash and Cash Equivalents at end of the period |
16,189.34 3,642.04 19,831.38 9,412.69 29,244.07 |
3,531.69 - 3,531.69 5,259.86 8,791.55 |
||
| By Order of the Board For Unichem Laboratories Limited Dr. Prakash A. Mody Place: Mumbai Chairman & Managing Director Date: 11th November,2022 DIN:00001285 Prakash Amrut Mody Digitally signed by Prakash Amrut Mody Date: 2022.11.11 13:15:48 +05'30' |
Place: Mumbai Date: 11th November, 2022
By Order of the Board For Unichem Laboratories Limited Prakash Digitally signed by Prakash Amrut Mody Amrut Mody Date: 2022.11.11 13:15:48 +05'30' Dr. Prakash A. Mody Chairman & Managing Director DIN: 00001285
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UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451
Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2022
| UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2022 |
UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Results for the Quarter & Half Year ended 30th September, 2022 |
|---|---|---|---|---|---|---|
| ₹ Lakhs | ||||||
| Particulars | Quarter ended 30th Sep'22 (Unaudited) |
Quarter ended 30th Jun'22 (Unaudited) |
Quarter ended 30th Sep'21 (Unaudited) |
Six months ended 30th Sep'22 (Unaudited) |
Six months ended 30th Sep'21 (Unaudited) |
Year ended 31st Mar'22 (Audited) |
| I II Revenue from operations Other income(Refer note 4) |
32,881.93 920.56 |
30,960.83 784.74 |
29,066.08 265.18 |
63,842.76 1,705.30 |
58,857.34 1,846.04 |
1,26,983.22 4,750.94 |
| III Total income(I+II) |
33,802.49 | 31,745.57 | 29,331.26 | 65,548.06 | 60,703.38 | 1,31,734.16 |
| IV EXPENSES Changes in inventories of finished goods and work-in-progress Cost of materials consumed Purchase of stock-in-trade Employee benefits expense Finance costs Other expenses Impairment loss on financial assets (Refer note 8) Depreciation and amortization expenses |
11,640.29 30.49 1,280.27 8,934.48 469.09 56.95 2,843.37 12,770.60 |
12,848.25 44.95 (1,867.23) 8,776.75 301.12 56.95 2,454.54 11,197.70 |
10,076.13 44.27 (336.21) 8,091.13 214.79 - 2,242.96 10,527.99 |
24,488.54 75.44 (586.96) 17,711.23 770.21 113.90 5,297.91 23,968.30 |
20,795.22 82.67 (58.23) 16,253.47 316.14 - 4,454.89 21,285.59 |
45,601.35 134.90 (4,153.41) 33,048.96 610.53 723.89 9,116.61 44,348.34 |
| Total expenses(IV) | 38,025.54 | 33,813.03 | 30,861.06 | 71,838.57 | 63,129.75 | 1,29,431.17 |
| V VI VII Share of profit / (loss) in associate (net of tax) Profit / (loss) before exceptional items and tax (III- IV+V) Exceptional items |
- (4,223.05) 502.24 |
- (2,067.46) - |
(21.40) (1,551.20) - |
- (6,290.51) 502.24 |
(28.97) (2,455.34) - |
(106.10) 2,196.89 - |
| VIII Profit /(loss) before tax(VI-VII) |
(4,725.29) | (2,067.46) | (1,551.20) | (6,792.75) | (2,455.34) | 2,196.89 |
| IX (1) Current tax (2) Deferred tax charge / (credit) (Refer note 5) (3) Short / (excess) provision for tax (earlier years) Tax expense |
266.54 2,074.80 - |
300.22 (30.81) - |
3.64 (273.16) - |
566.76 2,043.99 - |
211.46 (259.94) 23.70 |
1,050.83 (2,183.81) 23.70 |
| 2,341.34 | 269.41 | (269.52) | 2,610.75 | (24.78) | (1,109.28) | |
| X Profit /(loss) for theperiod after tax(VIII-IX) |
(7,066.63) | (2,336.87) | (1,281.68) | (9,403.50) | (2,430.56) | 3,306.17 |
| XI A. (i) Items that will not be reclassified subsequently to profit or loss - Remeasurement of the net defined benefit plan - Equity instruments through other comprehensive income (ii) Income tax (expense) / credit relating to items that will not be reclassified to profit or loss - Remeasurement of the net defined benefit plan - Equity instruments through other comprehensive income (net) B. (i) Items that will be reclassified to profit or loss (Foreign currency translation difference) (ii) Income tax relating to items that will be reclassified to profit or loss Other Comprehensive Income / (Loss) |
(18.10) 1,586.82 - 2,061.22 502.71 - |
206.16 - - - 479.24 - |
(194.08) - (24.58) - (52.03) - |
188.06 1,586.82 - 2,061.22 981.95 - |
(217.68) - (24.58) - (43.94) - |
(323.91) 7,646.40 (24.58) (1,760.71) (162.15) - |
| Total of Other Comprehensive Income /(Loss) | 4,132.65 | 685.40 | (270.69) | 4,818.05 | (286.20) | 5,375.05 |
| XII Total Comprehensive Income for theperiod(X+XI) |
(2,933.98) | (1,651.47) | (1,552.37) | (4,585.45) | (2,716.76) | 8,681.22 |
| XIII XIV Other Equity (Reserves excludingrevaluation reserve) Paid-up equity share capital (Face value of ₹ 2/- per share) |
1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 | 1,408.12 2,60,432.98 |
| XV (1) Basic (2)Diluted Earnings per equity share (Face value of ₹ 2/- per share) (not annualized) |
(3.32) (3.32) |
(1.82) (1.82) |
(3.45) (3.45) |
4.70 4.68 |
||
| (10.04) (10.04) |
(13.36) (13.36) |
|||||
| Notes: 1 2 3 4 5 The above unaudited consolidated financial results for the quarter ended 30th September, 2022 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 11th November, 2022. The statutory auditors have carried out a limited review of the consolidated financial results for the quarter ended 30th September, 2022. 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. Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'. In respect of the Company, 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. In respect of a subsidiary, deferred tax assets (net) are recognised as per applicable tax laws. 'Other Income' for the year ended 31st March, 2022 includes dividend income of ₹ 1,000.98 lakhs received on investments in equity shares held by the Company. |
Notes:
1 The above unaudited consolidated financial results for the quarter ended 30th September, 2022 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 11th November, 2022. The statutory auditors have carried out a limited review of the consolidated financial results for the quarter ended 30th September, 2022.
-
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.
-
3 Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'.
-
4 'Other Income' for the year ended 31st March, 2022 includes dividend income of ₹ 1,000.98 lakhs received on investments in equity shares held by the Company.
5 In respect of the Company, 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.
In respect of a subsidiary, deferred tax assets (net) are recognised as per applicable tax laws.
==> picture [67 x 21] intentionally omitted <==
- 6 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 Niche Generics Ltd. (“Niche”) contending that they had acted in breach of EU competition law as Niche 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. The management has obtained the counsel view on this matter and they have stated that there has not been any formal change in position after the last hearing and the uncertainty as in the past continues. Considering the status quo, in view of the management, no provision for the aforesaid fine is considered necessary and fine imposed by the EU of Euro 13.96 million (equivalent to Rs. 11,164.21 lakhs) is continued to be disclosed under contingent liability.
On the above matter, the auditors of Niche have given qualified conclusion in their limited review report and the statutory auditor of the Company have reported the said qualification in their limited review report on consolidated financial statement for the quarter and half year ended 30th September, 2022. The above matter was also qualified in the audit reports issued by Niche auditor and statutory auditor of the Company for the quarter ended 30th June, 2022 and year ended 31st March, 2022.
7 During the quarter, the Company, post receipt of necessary regulatory approval, has sold specified number of shares in Optimus Drugs Private Limited (‘Optimus’) to Sekhmet Pharmaventures Private Limited (‘Purchaser’) in terms of Share Purchase Agreement (‘SPA’) dated 10th May, 2022. Further the number of shares sold included equity shares received pursuant to conversion of bonus Compulsory Convertible Preference shares (allotted during the quarter). The balance number of unsold equity shares is valued at fair value and are classified as Fair Value through Profit and Loss. The gain/loss on sale of shares is accounted/disclosed as follows in quarter and half year ended 30th September, 2022:
Exceptional item
This represents gain / loss on disposal of 7,29,849 equity shares out of new equity shares of Optimus (received on conversion of Compulsory Convertible Preference Shares which were issued during the quarter). The gain is determined after reducing from sale proceeds fair value of bonus equity shares and related transaction cost incurred on such sale.
Recognized in OCI
The net gain of Rs. 1,586.82 lakhs (before related taxes thereon) on disposal of equity shares of Optimus which was accounted under ‘Fair value through other comprehensive income’ category.
-
8 Impairment loss on financial assets for the year ended 31st March, 2022 includes ₹ 569.31 lakhs of provision towards impairment of equity investment in ‘Synchron Research Services Private Limited’ (associate company).
-
9 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 Sep'22 |
Quarter ended 30th Jun'22 |
Quarter ended 30th Sep'21 |
Half year ended 30th Sep'22 |
Half year ended 30th Sep'21 |
Year ended 31st Mar' 22 |
|
| Total R&D expenditure | 2,957.07 | 2,205.28 | 2,520.04 | 5,162.35 | 5,617.74 | 11,274.10 | |
| 10 | Statement of Consolidated Assets and Liabilities: | ||||||
| ₹ Lakhs | |||||||
| Particulars | As at 30th Sep, 2022 |
As at 31st Mar, 2022 |
|||||
| Unaudited | Audited | ||||||
| I. ASSETS | |||||||
| Non-current assets | |||||||
| (a) Property, plant and equipment | 1,17,319.51 | 92,448.89 | |||||
| (b) Right-of-use assets | 6,166.91 | 6,400.01 | |||||
| (c) Capital work-in-progress | 21,048.80 | 49,381.42 | |||||
| (d) Investment property | - | - | |||||
| (e) Goodwill | 154.51 | 154.51 | |||||
| (f) Investment accounted for using the equity method | - | - | |||||
| (g) Financial assets | |||||||
| (i) Investments | 24.69 | 28.47 | |||||
| (ii) Loans | 12.58 | 11.60 | |||||
| (iii) Other financial assets | 828.39 | 813.06 | |||||
| (h) Deferred tax assets (net) | 486.44 | 435.51 | |||||
| (i) Other non-current assets | 16,333.89 | 17,364.53 | |||||
| 1,62,375.72 | 1,67,038.00 | ||||||
| Current assets | |||||||
| (a) Inventories | 59,085.84 | 60,022.15 | |||||
| (b) Financial Assets | |||||||
| (i) Investments | 149.53 | 26,358.02 | |||||
| (ii) Trade receivables | 43,313.24 | 49,543.31 | |||||
| (iii) Cash and bank balances | |||||||
| Cash & cash equivalents | 33,718.75 | 10,919.63 | |||||
| Other bank balances | 143.07 | 490.59 | |||||
| (iv) Loans | 5.76 | 5.23 | |||||
| (v) Other financial assets | 31.20 | 55.07 | |||||
| (c) Current tax assets (net) | 80.44 | - | |||||
| (d) Other current assets | 17,114.76 | 17,098.47 | |||||
| 1,53,642.59 | 1,64,492.47 | ||||||
| Non-current Assets held for sale | 346.96 | 346.96 | |||||
| TOTAL ASSETS | 3,16,365.27 | 3,31,877.43 |
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11 Statement of Consolidated Cash Flows (Unaudited):
| II. EQUITY AND LIABILITIES | ||||
|---|---|---|---|---|
| Equity | ||||
| (a) Equity share capital | 1,408.12 | 1,408.12 | ||
| (b) Other equity | 2,53,098.76 | 2,60,432.98 | ||
| 2,54,506.88 | 2,61,841.10 | |||
| Liabilities | ||||
| Non-current liabilities | ||||
| (a) Financial liabilities | ||||
| (i) Borrowings | 7,633.77 | 8,901.06 | ||
| (ii) Lease liabilities | 1,275.21 | 1,457.12 | ||
| (b) Provisions | 4,188.71 | 3,996.17 | ||
| (c) Deferred tax liabilities (net) | - | - | ||
| (d) Other non-current liabilities | 97.73 | 469.21 | ||
| 13,195.42 | 14,823.56 | |||
| Current liabilities | ||||
| (a) Financial liabilities | ||||
| (i) Borrowings | 21,671.70 | 24,135.18 | ||
| (ii) Lease liabilities | 442.16 | 421.84 | ||
| (iii) Trade payables | ||||
| Total outstanding dues of micro enterprises and small enterprises |
265.14 | 884.98 | ||
| Total outstanding dues of creditors other than | 15,651.27 | 17,433.72 | ||
| micro enterprises and small enterprises | ||||
| (iv) Other financial liabilities | 3,403.27 | 5,252.86 | ||
| (b) Other current liabilities | 5,537.87 | 5,265.37 | ||
| (c) Provisions | 1,691.56 | 1,609.28 | ||
| (d) Current tax liabilities (net) | - | 209.54 | ||
| 48,662.97 | 55,212.77 | |||
| TOTAL EQUITY AND LIABILITIES | 3,16,365.27 | 3,31,877.43 |
| 11 | Statement of Consolidated Cash Flows (Unaudited): | |||
|---|---|---|---|---|
| ₹ Lakhs | ||||
| Particulars | Six months ended 30th September, 2022 |
Six months ended 30th September, 2021 |
||
| A.Cash Flow from Operating Activities | ||||
| Net Profit / (Loss) before tax | (6,792.75) | (2,455.34) | ||
| Adjustments: | ||||
| Depreciation / amortisation (including investment | ||||
| property) | 5,297.93 | 4,458.06 | ||
| Loss / (profit) on sale / discard of property, plant and | ||||
| equipment (net) | 1.36 | (6.81) | ||
| Unrealised exchange difference (net) | 69.55 | (86.98) | ||
| Rent income | (0.05) | (23.11) | ||
| Share of (profit) / loss from associate | - | 28.97 | ||
| Finance cost | 770.20 | 316.14 | ||
| Provision for doubtful debts, loans, advances & | ||||
| deposits (net) | 56.98 | 95.24 | ||
| Share-based payments to employees | 52.46 | 112.28 | ||
| Fair value gain on investments (net) | (222.30) | (102.60) | ||
| Net loss on sales of shares (refer note 7) | 502.24 | - | ||
| Interest income | (22.55) | (553.42) | ||
| Sundry balance written off / (written back) | (0.68) | (61.91) | ||
| Impairment loss on financial assets | ||||
| - inter corporate deposits & interest thereon | 113.90 | - | ||
| Dividend income | (0.46) | (0.34) | ||
| 6,618.58 | 4,175.52 | |||
| Operating Profit / (Loss) Before Working Capital Changes | (174.17) | 1,720.18 | ||
| Working Capital Adjustments: | ||||
| Trade receivables & other assets | 7,583.89 | (15,312.14) | ||
| Inventories | 936.29 | (675.96) | ||
| Trade payables & other liabilities | (1,302.48) | (3,765.96) | ||
| 7,217.70 | (19,754.06) | |||
| Cash generated from / (used in) operations | 7,043.53 | (18,033.88) | ||
| Direct taxes refund received / (payment made) | (862.06) | (112.93) | ||
| Net Cash Flow from /(used in) Operating Activities[A] | 6,181.47 | (18,146.81) | ||
==> picture [67 x 21] intentionally omitted <==
| B. Cash Flow from Investing Activities Purchase of property, plant & equipment including capital work- in-progress Proceeds from sale of property, plant and equipment Sale / (purchase) of current investment (net) Sale of investment in Optimus shares (net) (refer note 7) Rent received (Increase) / decrease in escrow bank accounts Interest received Dividend received Net Cash Flow from /(used in) Investing Activities[B] |
(2,920.85) 39.09 22,566.46 1,084.57 0.05 347.52 46.42 0.46 |
(6,137.26) 110.21 14,516.60 - 23.11 19.02 935.08 0.34 |
||
|---|---|---|---|---|
| 21,163.72 | 9,467.10 | |||
| C. Cash Flow from Financing Activities Increase / (decrease) in working capital borrowings (net) Payments of lease liabilities Receipt of term loan from bank Repayments of long-term borrowings Finance cost paid Dividend paid Net Cash Flow from /(used in) Financing Activities[C] |
(2,547.83) (808.08) - (1,283.16) (706.05) (2,842.99) |
9,538.04 (241.31) 6,200.00 - (377.15) (2,839.04) |
||
| (8,188.11) | 12,280.54 | |||
| 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 Cash and Cash Equivalents at end of the period |
19,157.08 3,642.04 22,799.12 10,919.63 33,718.75 |
3,600.83 - 3,600.83 7,746.08 11,346.91 |
||
| By Order of the Board For Unichem Laboratories Limited Dr. Prakash A. Mody Place: Mumbai Chairman & Managing Director Date: 11th November,2022 DIN:00001285 Prakash Amrut Mody Digitally signed by Prakash Amrut Mody Date: 2022.11.11 13:16:29 +05'30' |
Place: Mumbai Date: 11th November, 2022
By Order of the Board For Unichem Laboratories Limited Prakash Digitally signed by Prakash Amrut Mody Amrut Mody Date: 2022.11.11 13:16:29 +05'30' Dr. Prakash A. Mody Chairman & Managing Director DIN: 00001285
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Limited Review Report on quarterly and half yearly 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
- We have reviewed the accompanying statement of unaudited standalone financial results (“the Statement") of Unichem Laboratories Limited (“the Company") for the quarter and half year ended 30[th] September, 2022, 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 (“Listing Regulations”).
Management’s 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 the Indian Accounting Standard 34 “Interim Financial Reporting” (“Ind AS 34”), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.
Auditor’s responsibility
- Our responsibility is to issue a report on this Statement based on our review.
We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statements are free of material misstatement. A review is limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and thus, provide less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
Basis for qualified conclusion
- We draw attention to note 6 of the Statement regarding the EU fine matter and the Company’s financial exposure as on the last audited balance sheet date of Rs. 12,267.33 lakhs in the subsidiary (Niche Generics Limited, UK) in respect of which, in our view, the Company would need to provide for impairment of the exposure of Rs. 12,267.33 lakhs. However, the Company is of the view that such provision for impairment on exposure would be required only in the event of unfavourable outcome of the appeal which itself is uncertain. Our conclusion is modified in respect of this matter for the quarter and half year ended 30[th] September, 2022 and our opinion was also modified for the aforesaid matter in the quarter ended 30[th] June, 2022 and the year ended 31[st] March, 2022.
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Limited Review Report on quarterly and half yearly 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…)
Qualified conclusion
- Based on our review conducted and procedures performed as stated in paragraph 3 above, except for the effects of the matter described in ‘Basis for qualified conclusion’ paragraph 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 the Listing Regulations, 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 Firm’s Registration No.: 116560W / W100149
MILAN NAVIN Digitally signed by MILAN NAVIN MODY MODY Date: 2022.11.11 12:43:39 +05'30'
Milan Mody
Partner Membership No.: 103286 UDIN: 22103286BCUFXK5096 Place: Mumbai Date: 11[th] November, 2022
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Limited Review Report on quarterly and half yearly unaudited consolidated financial results of Unichem Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)
To
The Board of Directors Unichem Laboratories Limited
- We have reviewed the accompanying statement of unaudited consolidated financial results of Unichem Laboratories Limited (“the Holding Company”), comprising its subsidiaries (the Holding and its subsidiaries collectively referred to as “the Group”) and its share of the net loss after tax and total comprehensive income of its associate for the quarter and half year ended 30[th ] September, 2022 (“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 (“Listing Regulations”).
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. 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.
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Limited Review Report on quarterly and half yearly unaudited consolidated financial results of Unichem Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (continued…)
-
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.
Basis for qualified conclusion
- We draw attention to note 6 of the Statement which sets out the current ongoing litigation regarding the EU matter that the subsidiary (Niche Generics Limited, UK) is facing. The auditors of Niche have continued to issue a qualified conclusion for the quarter and half year ended 30[th] September, 2022 stating that:
“Niche Generics Limited has not recognized a provision on account of an ongoing appeal against a fine imposed by the European Commission. Whilst previously the outcome of the appeal was sufficiently uncertain that a contingent liability was deemed sufficient, following the hearing in October 2021 and our review of the available documentation, our opinion is that it is more likely than not that the Company will be liable for the fine of Euro 13.96 million (worth approximately GBP 12.3 million at the balance sheet date). Accordingly, we believe that this should have been provided for in the financial statement. The Directors’ opinion is that there remains an inherent uncertainty as to the outcome of the appeal and therefore, the Directors are of the opinion that no provision should be made at this point in time. The impact on the financial statements of including the provision would be that the Company would have net liabilities of approximately GBP 12.6 million at the balance sheet date.”
Our conclusion is modified in respect of this matter for the quarter and half year ended 30[th] September, 2022 and our opinion was also modified for the aforesaid matter in the quarter ended 30[th] June, 2022 and year ended 31[st] March, 2022.
Qualified 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, except for the effects of the matter described in ‘Basis for qualified conclusion’ paragraph 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 the Listing Regulations, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
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Limited Review Report on quarterly and half yearly unaudited consolidated financial results of Unichem Laboratories Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (continued…)
Other matters
-
We did not review the interim financial statements of five subsidiaries, whose interim financial statements reflect total assets of Rs. 56,698.01 lakhs as at 30[th] September, 2022, total revenues (including other income) of Rs. 21,932.28 lakhs and Rs. 42,448.20 lakhs, total net profit / (loss) after tax and total comprehensive income of Rs. 632.88 lakhs and Rs. 933.58 lakhs for the quarter and half year ended 30[th] September, 2022 respectively and cash inflow (net) of Rs. 2,923.27 lakhs for the half year ended 30[th] September, 2022, 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. 107.96 lakhs as at 30[th] September, 2022, total net profit / (loss) after tax and total comprehensive income of Rs. (54.40) lakhs and Rs. (99.71) lakhs for the quarter and half year ended 30[th] September, 2022 respectively and cash inflow (net) of Rs. 44.17 lakhs for the half year ended 30[th] September, 2022 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.
Our conclusion on the Statement is not modified in respect of the above matters.
For N. A. Shah Associates LLP
Chartered Accountants Firm’s Registration No.: 116560W / W100149
Digitally signed by MILAN NAVIN MILAN NAVIN MODY MODY Date: 2022.11.11 12:45:03 +05'30'
Milan Mody
Partner Membership No.: 103286 UDIN: 22103286BCUGFF8614 Place: Mumbai Date: 11[th] November, 2022