Unichem Laboratories Ltd. — Interim / Quarterly Report 2022

Jan 29, 2022

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January 29, 2022

Department of Corporate Services Mr. Hari K

Bombay Stock Exchange Ltd. Asst. Vice President - Operations Phiroze Jeejeebhoy Towers National Stock Exchange of India Ltd Dalal Street, Exchange Plaza, Bandra – Kurla Complex Mumbai- 400 001 Bandra (East), Mumbai – 400 051

Dear Sir,

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

Sub: Outcome of Board Meeting

We would like to inform you that Board of Directors at its Meeting held today, i.e. Saturday, January 29, 2022 approved the Unaudited Financial Results (Standalone & Consolidated) for the third quarter and nine months ended December 31, 2021 . Enclosed herewith please find the Unaudited Financial Results (Standalone & Consolidated) for the third quarter and nine months ended December 31, 2021 and the Auditors Reports thereon.

The Board Meeting commenced at 12:30 p.m. and concluded at 02:45 p.m.

Kindly take the same on your records.

Thanking you, FOR UNICHEM LABORATORIES LIMITED

PRADEEP Digitally signed by PRADEEP BHANDARI BHANDARI Date: 2022.01.29 14:53:27 +05'30' Pradeep Bhandari Head- Legal & Company Secretary

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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 Financial Results for the Quarter & Nine Months ended 31st December, 2021

UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Standalone Financial Results for the Quarter & Nine Months ended 31st December, 2021
	₹ Lakhs
Particulars	Quarter ended 31st Dec'21 (Unaudited)	Quarter ended 30th Sep'21 (Unaudited)	Quarter ended 31st Dec'20 (Unaudited)	Nine months ended 31st Dec'21 (Unaudited)	Nine months ended 31st Dec'20 (Unaudited)	Year ended 31st Mar'21 (Audited)
I II Revenue from operations Other income(Refer note 4)	24,829.14 1,508.91	21,696.73 534.13	31,118.33 1,332.44	66,606.18 3,299.00	86,288.63 4,246.55	1,12,397.28 4,737.11
III Total income (I+II)	26,338.05	22,230.86	32,450.77	69,905.18	90,535.18	1,17,134.39
IV EXPENSES Cost of materials consumed Purchase of stock-in-trade Changes in inventories of finished goods and work-in-progress Employee benefits expense Finance costs Impairment loss on financial assets (Refer note 10) Depreciation and amortization expenses Other expenses	11,665.20 24.40 (1,140.73) 6,295.19 32.87 692.17 2,136.38 8,982.50	10,049.56 44.27 (1,555.23) 6,170.36 102.94 - 2,044.93 8,033.01	10,817.48 16.06 1,767.33 6,013.39 60.89 - 1,874.96 9,340.01	31,724.10 107.07 (4,536.85) 18,774.91 149.72 692.17 6,191.96 25,449.31	34,365.43 48.17 1,250.21 17,654.69 93.06 - 5,598.89 26,202.85	44,913.87 53.52 (1,672.68) 23,403.73 130.06 - 7,589.18 36,152.16
Total expenses(IV)	28,687.98	24,889.84	29,890.12	78,552.39	85,213.30	1,10,569.84
V VI Profit / (loss) before exceptional items and tax (III-IV) Exceptional items	(2,349.93) -	(2,658.98) -	2,560.65 -	(8,647.21) -	5,321.88 -	6,564.55 -
VII Profit /(loss) before tax(V-VI)	(2,349.93)	(2,658.98)	2,560.65	(8,647.21)	5,321.88	6,564.55
VIII (1) Current tax (2) Deferred tax charge / (credit) (Refer note 5) (3) Short / (excess) provision for tax (earlier years) Tax expense	- - -	- (515.66) -	(482.00) - -	- (1,394.80) 23.70	- - -	- 1,094.30 62.02
	-	(515.66)	(482.00)	(1,371.10)	-	1,156.32
IX Profit / (loss) for the period after tax (VII-VIII)	(2,349.93)	(2,143.32)	3,042.65	(7,276.11)	5,321.88	5,408.23
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)	(37.41) - - - - -	(194.08) - (24.58) - - -	(88.59) - - - - -	(255.09) - (24.58) - - -	(246.69) - - - - -	(97.68) 2,504.10 24.58 (300.51) - -
Total of Other Comprehensive Income /(Loss)	(37.41)	(218.66)	(88.59)	(279.67)	(246.69)	2,130.49
XI Total Comprehensive Income for the period (IX+X)	(2,387.34)	(2,361.98)	2,954.06	(7,555.78)	5,075.19	7,538.72
XII XIII Paid-up equity share capital (Face value of ₹ 2/- per share) Other Equity (Reserves excludingrevaluation reserve)	1,408.12	1,408.12	1,408.12	1,408.12	1,408.12	1,408.12 2,68,325.35
XIV (1) Basic (2) Diluted Earnings per equity share (Face value of ₹ 2/- per share) (not annualized)	(3.34) (3.34)	(3.04) (3.04)	4.32 4.32	(10.33) (10.33)	7.56 7.56	7.68 7.68
Notes: 1 The unaudited standalone financial results for the quarter and nine months ended 31st December, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 29th January, 2022. The statutory auditors have carried out a limited review of the standalone financial results for the quarter and nine months ended 31st December, 2021.
2 3 4 5 6 Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'. 'Other Income' for quarter and nine months ended 31st December, 2021 includes dividend income of Rs.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. 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 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 ₹ 11,803.71 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 nine months ended 31st December, 2021 and in earlier reports. 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.

• 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 quarter and nine months ended 31st December, 2021 includes dividend income of Rs.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 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 ₹ 11,803.71 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 nine months ended 31st December, 2021 and in earlier reports.

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• 7 The COVID 19 pandemic continues to adversely impact the global economic conditions and its impact remains uncertain. Considering the Company is in the business of 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 continues to closely monitor any material changes to future economic conditions.

• 8 During the quarter ended 30th September, 2021, the Company had invested USD 2,00,000 (equivalent to ₹ 147.64 lakhs) towards equity in wholly owned subsidiary - "Unichem (China) Pvt Ltd."

• 9 The aggregate amount of revenue expenditure incurred on Research and Development as included in the relevant expense heads is as tabulated below:

₹ Lakhs	₹ Lakhs	₹ Lakhs	₹ Lakhs	₹ Lakhs	₹ Lakhs	₹ Lakhs
Particulars	Quarter ended 31st Dec'21	Quarter ended 30th Sep'21	Quarter ended 31st Dec'20	Nine months ended 31st Dec'21	Nine months ended 31st Dec'20	Year ended 31st Mar' 21
Total R&D expenditure	2,641.63	2,520.04	3,657.68	8,259.37	9,358.46	12,990.81

• 10 Impairment loss on financial assets for the quarter and nine-months ended 31st December 2021 includes Rs. 569.31 lakhs of provision towards impairment of equity investment in ‘Synchron Research Services Private Limited’ (associate company)

	By Order of the Board
	For Unichem Laboratories Limited
	Prakash Amrut Mody Digitally signed by Prakash Amrut Mody Date: 2022.01.29 14:50:26 +05'30'
	Dr. Prakash A. Mody
Place: Mumbai	Chairman & Managing Director
Date: 29thJanuary,2022	DIN:00001285

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UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451

Statement of Unaudited Consolidated Financial Results for the Quarter & Nine Months ended 31st December, 2021

₹ Lakhs

UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Financial Results for the Quarter & Nine Months ended 31st December, 2021	UNICHEM LABORATORIES LIMITED CIN: L99999MH1962PLC012451 Statement of Unaudited Consolidated Financial Results for the Quarter & Nine Months ended 31st December, 2021
₹ Lakhs
Particulars	Quarter ended 31st Dec'21 (Unaudited)	Quarter ended 30th Sep'21 (Unaudited)	Quarter ended 31st Dec'20 (Unaudited)	Nine months ended 31st Dec'21 (Unaudited)	Nine months ended 31st Dec'20 (Unaudited)	Year ended 31st Mar'21 (Audited)
I II Revenue from operations Other income(Refer note 4)	31,130.52 1,465.85	29,066.08 265.18	32,628.49 1,560.59	89,987.86 3,311.89	96,101.81 4,235.66	1,23,513.53 5,018.76
III Total income(I+II)	32,596.37	29,331.26	34,189.08	93,299.75	1,00,337.47	1,28,532.29
IV EXPENSES Cost of materials consumed Purchase of stock-in-trade Changes in inventories of finished goods and work-in-progress Employee benefits expense Finance costs Impairment loss on financial assets (Refer note 10) Depreciation and amortization expenses Other expenses	12,137.57 24.40 (1,231.04) 8,241.26 135.83 609.98 2,331.26 11,411.28	10,076.13 44.27 (336.21) 8,091.13 214.79 - 2,242.96 10,527.99	11,356.74 16.06 (1,004.13) 7,823.95 127.03 - 2,081.69 11,423.78	32,932.79 107.07 (1,289.27) 24,494.73 451.97 609.98 6,786.15 32,696.87	35,827.16 48.17 (3,903.81) 23,093.46 330.54 - 6,248.54 33,830.83	46,698.72 53.52 (8,814.04) 30,697.06 511.86 - 8,435.63 45,767.35
Total expenses(IV)	33,660.54	30,861.06	31,825.12	96,790.29	95,474.89	1,23,350.10
V VI VII Profit / (loss) before exceptional items and tax (III- IV+V) Exceptional items Share of profit / (loss) in associate (net of tax)	(77.13) (1,141.30) -	(21.40) (1,551.20) -	(14.97) 2,348.99 -	(106.10) (3,596.64) -	(10.60) 4,851.98 -	(34.25) 5,147.94 -
VIII Profit /(loss) before tax(VI-VII)	(1,141.30)	(1,551.20)	2,348.99	(3,596.64)	4,851.98	5,147.94
IX (1) Current tax (2) Deferred tax charge / (credit) (Refer note 5) (3) Short / (excess) provision for tax (earlier years) Tax expense	291.97 (22.79) -	3.64 (273.16) -	3.80 (10.89) -	503.43 (282.73) 23.70	1,386.09 (7.45) -	1,668.26 (14.82) 62.02
	269.18	(269.52)	(7.09)	244.40	1,378.64	1,715.46
X Profit /(loss) for theperiod after tax(VIII-IX)	(1,410.48)	(1,281.68)	2,356.08	(3,841.04)	3,473.34	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 - 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	(37.41) - - - (186.11) -	(194.08) - (24.58) - (52.03) -	(88.59) - - - (328.33) -	(255.09) - (24.58) - (230.05) -	(246.69) - - - (527.86) -	(97.68) 2,504.10 24.58 (300.51) (491.02) -
Total of Other Comprehensive Income /(Loss)	(223.52)	(270.69)	(416.92)	(509.72)	(774.55)	1,639.47
XII Total Comprehensive Income for theperiod(X+XI)	(1,634.00)	(1,552.37)	1,939.16	(4,350.76)	2,698.79	5,071.95
XIII XIV Paid-up equity share capital (Face value of ₹ 2/- per share) Other Equity (Reserves excludingrevaluation reserve)	1,408.12	1,408.12	1,408.12	1,408.12	1,408.12	1,408.12 2,54,275.36
XV (1) Basic (2)Diluted Earnings per equity share (Face value of ₹ 2/- per share) (not annualized)		(1.82) (1.82)	3.35 3.35		4.93 4.93	4.88 4.88
	(2.01) (2.01)			(5.46) (5.46)
Notes: 1 2 3 4 Operating Segment: The Company has a single reportable segment i.e. 'Pharmaceuticals'. 'Other Income' for quarter and nine months ended 31st December, 2021 includes dividend income of Rs.1,000.98 lakhs received on investments in equity shares held by the Company. 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. The above unaudited consolidated financial results for the quarter ended 31st December, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 29th January, 2022. The statutory auditors have carried out a limited review of the consolidated financial results for the quarter ended 31st December, 2021.

Notes:

1 The above unaudited consolidated financial results for the quarter ended 31st December, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 29th January, 2022. The statutory auditors have carried out a limited review of the consolidated financial results for the quarter ended 31st December, 2021.

• 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 quarter and nine months ended 31st December, 2021 includes dividend income of Rs.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.

• 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 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 ₹ 11,803.71 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 nine months ended 31st December, 2021 and in earlier reports.

• 7 The COVID 19 pandemic continues to adversely impact the global economic conditions and its impact remains uncertain. Considering the Company is in the business of 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 continues to closely monitor any material changes to future economic conditions.

• 8 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 31st Dec'21	Quarter ended 30th Sep'21	Quarter ended 31st Dec'20	Nine months ended 31st Dec'21	Nine months ended 31st Dec'20	Year ended 31st Mar' 21
Total R&D expenditure	2,641.63	2,520.04	3,657.68	8,259.37	9,358.46	12,990.81

• 9 Other income of subsidiary at USA for the year ended 31st March, 2021 includes write back of loan of USD 4.23 lakhs (equivalent to ₹ 313.44 lakhs) which was received under Paycheck Protection Program [PPP]. The subsidiary had initiated the loan forgiveness process with the Small Business Administration (SBA) under PPP which was approved during March 2021 and accordingly, the loan amount was written back.

• 10 Impairment loss on financial assets for the quarter and nine-months ended 31st December 2021 includes Rs. 487.13 lakhs of provision towards impairment of equity investment in ‘Synchron Research Services Private Limited’ (associate company).

	By Order of the Board
	For Unichem Laboratories Limited
	Prakash Amrut Mody Digitally signed by Prakash Amrut Mody Date: 2022.01.29 14:48:45 +05'30'
	Dr. Prakash A. Mody
Place: Mumbai	Chairman & Managing Director
Date: 29thJanuary,2022	DIN:00001285

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To

The Board of Directors Unichem Laboratories Limited

1. We have reviewed the accompanying statement and nine months ended 31[st] December,

2021, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of

2. 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.

3. 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

4. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited standalone financial results, prepared in accordance with recognition and measurement principles laid down in the applicable Indian Accounting 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.

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Emphasis of Matter

5. We draw attention to note 6 of the Statement, which informs that the General Court of the European Union had on 12[th] December, 2018, rejected the appeal and confirmed the fine of Euro 13.96 Million (equivalent to Rs. 11,803.71 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

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Milan Mody

Partner Membership No.: 103286 UDIN: 22103286AAAABD5538

Place: Mumbai Date: 29[th] January, 2022

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To

The Board of Directors Unichem Laboratories Limited

1. 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 nine months ended 31[st] December, 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 .

2. 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

and measurement principles laid down in Indian Accounting Stan accepted in India.

1. Our responsibility is to issue a report on this Statement based on our review.

We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Institute of Chartered Accountants of India. 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.

4. 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.

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Conclusion

1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 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

1. We draw attention to note 6 of the Statement for the quarter and nine months ended 31[st] December, 2021, which informs that the General Court of the European Union had on 12[th] December, 2018 rejected the appeal and confirmed the fine of Euro 13.96 Million (equivalent to Rs. 11,803.71 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. 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

1. We did not review the interim financial statements of five subsidiaries, whose interim financial statements reflect total revenues (including other income) of Rs. 20,868.65 lakhs and Rs. 61,089.77 lakhs, total net profit after tax of Rs. 652.14 lakhs and Rs. 1,348.66 lakhs and total comprehensive income of Rs. 644.02 lakhs and Rs. 1,414.49 lakhs for the quarter and nine months ended 31[st] December, 2021 respectively as considered in the unaudited consolidated financial results. These financial results have been reviewed by other auditors whose reports have been furnished to us by the management and our conclusion on the unaudited consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and our report in terms of 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.

2. We also did not review the interim financial information of subsidiary at China whose financial information reflects total revenue (including other income) of Rs. 0.01 lakhs and Rs. 1.03 lakhs, total net loss after tax of Rs. 50.11 lakhs and Rs. 134.22 lakhs and total comprehensive loss of Rs. 47.43 lakhs and Rs. 134.25 lakhs for the quarter and nine months ended 31[st] December, 2021 respectively 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.

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1. share of net loss after tax / total comprehensive loss of Rs. 77.13 lakhs and Rs. 106.10 lakhs for the quarter and nine months ended 31[st] December, 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

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Milan Mody

Partner Membership No.: 103286 UDIN: 22103286AAAABE8701

Place: Mumbai Date: 29[th] January, 2022