Zenotech Laboratories Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018


1. The above financial results for the quarter and nine months period ended Dec 31, 2018 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meeting held on 4th Feb 2019 and have undergone a ‘limited review’ by the Statutory Auditors of the Company.

2. The Company adopted India Accounting Standards (“Ind AS”) from April 01, 2016 and accordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS prescribed under section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and other accounting principles generally accepted in India.

3. The Company had reconstructed the financial statements for the years ended March 31, 2011 and 2012 based on the available limited records, statutory returns filed, supplementary documents, invoices, external corroborative evidence post 12th November 2011 and after considering the various non-compliances under the Companies Act, 1956, listing agreement and Foreign Exchange Management Act etc.

4. The matters relating to several financial and non-financial irregularities pertaining to period prior to November 12, 2011 are currently sub-judice and the impact of the various legal proceedings would be made in the financial results of the Company as and when the outcome of the above uncertainties becomes known and the consequential adjustments / disclosures are identifiable / determinable. Accordingly, based on the steps taken by the Company and evidence available so far, any financial impact on the results of the Company is likely to be significantly low.

5. The Management has represented that it is well placed to meet the cash burn requirements in the coming periods for it to develop and build the business to a profitable level as per the projections prepared by the Company. Hence the company’s financials have been prepared on a going concern basis. However, this position will be reviewed regularly until all the indicators for any likely going concern issue are fully addressed.

6. Pursuant to the Rights offer, the Company had allotted 266,03,068 equity shares of face value of Rs 10/- each at a premium of Rs 35 per equity share to the shareholders for a total consideration of Rs. 1,197,138,060. These equity shares of the Company were listed in Bombay Stock Exchange (BSE) w.e.f. Friday, July 28, 2017.

7. Use of Rights Issue Proceeds is summarized as below:

(Rupees Lakhs, unless otherwise stated)

Sl. No Particulars Planned as per Letter of Offer Utilisation upto Dec 31, 2018 Balance as at

Dec 31, 2018

1 Funding capital expenditure requirement for expansion and up gradation of our existing manufacturing units 2,002.45 646.48 1,355.97

2 Repayment in full or part, of certain borrowings availed by our Company 6,988.04 6,988.04 -

3 General corporate purposes 2,980.89 2,980.89 -

Total 11,971.38 10,615.41 1,355.97

8 Rights Issue proceeds which remain unutilized as at December 31, 2018 were invested in deposits with scheduled commercial banks and in current bank accounts of the Company including monitoring agency accounts.

9 The Company has only one segment, i.e. Pharmaceuticals.

10 Figures for previous period/ year have been regrouped to conform to the current period presentation.


By Order of the Board

Date: 04 Feb, 2019 Chairman

Place: Mumbai DIN: 01219312