Panacea Biotec Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Sep 2023

1. The above financial results of Panacea Biotec Limited (‘the Company’ or ‘PBL’) were reviewed by the Audit Committee of the Board of Directors and approved by the Board of Directors at their meetings held on November 09, 2023 and November 10, 2023 respectively and have been reviewed by the statutory auditors of the Company.



2. The financial results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards (“IND AS”) notified under the Companies (Indian Accounting Standards) Rule, 2015, as amended from time to time, specified under section 133 of the Companies Act, 2013.



3. The unaudited consolidated financial results of the Company have been prepared by consolidating the Company's financial results for the respective periods with the unaudited financial results of the following wholly-owned subsidiaries (“WOS”) and the Enterprises over which the Company exercises control (collectively, the Company, these subsidiaries and the enterprises hereinafter referred to as “the Group”):



(i) Indian WOS: Panacea Biotec Pharma Limited (“PBPL”) and Meyten Realtech Private Limited;

(ii) Overseas WOS: Panacea Biotec (International) S.A., and Panacea Biotec Germany GmbH; and

(iii) Enterprises over which the Company exercises control: PanEra Biotec Private Limited and Adveta Power Private Limited.
4. For the half year ended September 30, 2023, the Company has earned profit (before tax and exceptional items) of Rs.449 lakh (year ended March 31, 2023: loss of Rs.6,275 lakh) and the Group has incurred a loss (before tax and exceptional items) of Rs.2,526 lakh (year ended March 31, 2023: loss of Rs. 8,986 lakh). In March 2022, PBPL had sold its Pharmaceutical Formulations Brands in India and Nepal, as explained in Note 5 below, for consideration of Rs.187,200 lakh, which enabled the Group to repay its outstanding dues of Non-Convertible Debenture (NCDs) and retain sufficient surplus to fund its existing projects and operations and also helped the Group to enter new market and expediting development of new products. The surplus funds with the Group has also strengthened the working capital position and scaling up its pharmaceutical formulations business in international markets including ROW countries, USA / EU, etc. and to pursue other business opportunities. The Company has already received higher long-term business orders for vaccines from key institutional customers. Based on these measures and continuous efforts to improve the business performance, the management has prepared the financial results on going concern basis.



5. During the half year ended September 30, 2023, the Group has recognised revenue of Rs.3,051 lakh, out of the remaining deferred consideration of Rs.9,313 lakh from sale of domestic pharmaceutical brands, under “Exceptional Item” in the consolidated statement of the profit and loss and the balance deferred consideration of Rs.6,262 lakh would be recognised as revenue in subsequent quarters / years and is shown as Contract Liability.



6. During the current financial year, the Company has adopted the new tax regime under the Income Tax Act, 1961.



7. On 04.10.2023, the Holding Company has received notice from the International Court of Arbitration, Paris (“ICC”) intimating commencement of an Arbitration proceeding pursuant to the request filed by Apotex Inc., claiming an amount of USD 118.14 million towards outsized alleged losses plus interest thereon under the collaboration Agreement dated May 09, 2014 entered into between Apotex Inc. and the Holding Company. The said agreement was subsequently assigned and novated in favour of Panacea Biotec Pharma Limited (‘PBPL’), a wholly-owned subsidiary of Holding Company. The management believes that the Holding Company/PBPL is not in breach of its obligations and the claims filed by Apotex are frivolous, unsubstantiated, premised on fundamental factual misstatements and incorrect legal assumptions regarding the Collaboration Agreement and contrary to the overwhelming facts and evidence. Based on the legal opinion obtained and assessment of aforesaid matter, the management is of the view that no material liability is expected to arise on the Group on account of aforesaid claims.



8. The Company publishes standalone financial results along with the consolidated financial results. In accordance with Ind AS 108, ‘Operating Segments’, the management has disclosed the segment information in the unaudited consolidated financial results. Accordingly, the segment information is given in the unaudited consolidated financial results of the Group for the quarter and half year ended September 30, 2023.



9. The necessary certificate / report in respect of the above results in terms of requirement of Regulation 33 of the SEBI (Listing Obligations and Other Disclosure Requirements) Regulations, 2015, has been placed before the Board of Directors.



10. Previous period amounts have been regrouped/ reclassified in compliance with IND-AS to make them comparable with those of current period / year.



11. ‘0’ under “Rs. in Lakh” represents amount less than Rs.50,000. Further, the figures shown in the tables may not exactly add up due to rounding off.



12. The above results are also available on the Company’s website https://www.panaceabiotec.com