Unichem Laboratories Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
1 The above standalone financial results for the quarter and year ended 31st March, 2021 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 29th May, 2021. The statutory auditors have expressed an unqualified audit opinion on these standalone financial results for the year ended 31st March, 2021.
2 The above 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 During the quarter ended 31 st December, 2020, the Company had decided to opt for new tax regime for the financial year 2020-2021. Considering brought forward tax loss, no tax is payable under the new tax regime. Consequently, provision for current tax made in accordance with Section 115JB of the Income-tax Act, 1961 under old regime during the quarter and half year ended 30th September, 2020 was reversed during the quarter ended 31st December, 2020.
5 For the quarter and year ended 31st March 2021, deferred tax liability exceeds the deferred tax assets (including assets in respect of brought forward losses and depreciation) in accordance with the new tax regime. Upto 31st December, 2020, deferred tax assets was recognised on the amount of tax loss, unabsorbed tax depreciation and other temporary differences upto 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 Rs 12,044.69 lakhs) is disclosed under contingent liability. The statutory auditors have given Emphasis of Matter in their audit report on standalone and consolidated financial results for the year ended 31st March, 2021 and in earlier reports.
7 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 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.
8 Subsequent to year ended 31st March, 2021, the Company has invested USD 1,00,000 (equivalent to Rs 75.26 lakhs) towards equity in wholly owned subsidiary - "Unichem (China) Pvt. Ltd".
9 The Board recommends a final dividend of Rs 4/- per share (200 %) (face value of Rs 2/- per share) for the year ended 31st March, 2021. The payment is subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company. The final dividend declared in the previous year and paid during the current year was Rs 4/- per share (200%).
10 The aggregate amount of revenue expenditure incurred on Research and Development (R&D) as included in the relevant expense heads is as tabulated below: For Table, kindly refer Corporate Announcements on www.bseindia.com.
11 The results for the quarter ended 31st March, 2021 being the derived figures between the audited figures in respect of the current full financial year ended 31st March, 2021 and the published unaudited figures for the nine-months ended 31st December, 2020, which were subjected to a limited review.