Lupin Pharma Care Ltd., InDIA

8/3/2019 Lupin Pharma Care Ltd., InDIA

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Lupin Pharmacare Ltd.

AUDITED ACCOUNTS

FOR THE YEAR ENDED

MARCH 31,2010

LUPIN PHARMACARE LIMITED

i59 , Cs . T= ead- --------vaiina.

Santacruz (East), Mumbai - 400 098.

-



Deloitte

Haskins&Sells

CharteredAccountanU12, Dr. Annie Besant Road

Opp. Shiv Sagar Estate

Worli, Mumbai - 400 010India

Tel: +91 (22) 6667 9000Fax:+91 (22)6667 9100

AUDITORS' REPORT

TO THE MEMBERSOFLUPIN PHARMACARF:LIMITED

1. W e have audited the attached Balance Sheet of LUPIN PILUXMACBRELIMITED

rthe Company") as at 3 lS'March 2010, the Profit and Loss Account and the CashFlow Statement of the Company for the year ended on that date, both annexedthereto. These financial statements are the responsibility of the Company'sManagement. Our respon sibility is to express an opinion on these financial statemen tsbased on our audit.

2. W e condu cted ou r audit in accordance with the auditing standards generally acceptedin India. Those Standards require that we plan and perform the audit to obtainresomb!e asslxzmce bout whether the financial statements are free of materialmisstatements. An audit includes examining, on a test basis, evidence supporting the

amounts and the disclosures in the financial statements. An audit also includesassessing the accounting principles used and the significant estimates made by the

Management, as well as evaluating the overall financial statement presentation. Webelieve that o ur audit provides a reasonable basis fo r our o pinion.

3. As required by the Companies (Auditor's Report) Order, 2003 (CARO) i2sued by th eCentral Government in terms of Section 227(4A) of the Companies Act, 1956, weenclose in the Annexure a statem ent on the matters specified in paragraphs 4 and 5 ofthe said Order.

4. Further to our comm ents in the Annexure referred to in paragraph 3 above, we reportas follows:

(a) w e have obtained all th e inform ation and explanations, which to the best of ourknowledge and belief were necessary for the purposes o f ou r audit;

(b) in our opinion, proper book s of account as required by l aw have been kep t by theCompany so far as it appears from o ur examination of thos e books;

(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statementdealt with by this report are in agreement with the books of account;

(d) in our opinion, the Balance Sh eet, the Profit and L oss account and the Cash Flo wStatement dealt with by this report are in compliance with the AccountingStandards referred to in Section 21 l(3C) of the C ompanies Act, 1956;



Deloitte

Haskins&Sells

(e) in our opinion and to the best of our information and according to theexplanations given to us, the said accounts give the information required by theCompanies Act, 1956, in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India:

(i) in the case of the Balance Sheet, of the state of affzirs of the Company as at3 1* March, 2010;

(ii) in the case of the Profit and Loss Account, of the Loss of the Company forthe year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash flows of the Companyfor the year ended on that date.

5. On the basis of written representations received from the Directors, as on 3I* March, -2010 taken on record by the Board of Directors, none of the Directors is disqualifiedas on 31* March, 2010 fiom being appointed as a director in terns of Section274(1)(g) of the Companies Act, 1956.

ForDmeErEm " - S &.S-JmS

Chartered Accountants(Registration No. 117366W)

M. S. DlimgdhikariPartner

Membership Number: 30802

MUMBAT,28fi April, 20 10



Deloitte

Haskins&Sells

ANNEXURE TO TBEAUDITOR'S REPORT

(Referred to in Paragraph 3 of our report of even date)

i) Having regard to the nature of the Company's business /activities during the year

clauses (iii), (v), (vi), (xi), (xii), (xiii), (xiv), (xv), (xvi), (xviii), (xix) and (xx) of

CAR0 are not applicable.

ii) In respect of its fixed assets

(a) The Company has maintained proper records showing full particulars,

iiicludig q ~ ~ t i t a t i v eetzils and sihtlon of the fixed assets.

(b) The fured assets were physically verified during the year by the Management

in accordance with a regular programme of verification which, in our opinion,

provides for physical verification of the fixed assets at reasonable intervals.

According to the information and explanations given to us, no material..diszie~macs =&iced OI? s ~ he~icztion.

(c) In our opinion and according to the information and explanatioxs given to us,

the Company has not made any disposal of fixed assets during the year.

iii) In respect of its inventory:

(a) As explained to us, the inventories were physically verified during the year by

the Management cit reasonable intervals.

(b) In our opinion and according to the information and explanations given to us,

the procedures of physical verification of inventories followed by the

Management were reasonable and adequate in relation to the size of theCompany and the nature of its business.

(c) In our opinion and according to the information and explanations given to us,

the Company has maintained proper records of its inventories and no material

discrepancies were noticed on physical verification.



Deloitte

Haskins& Sells

iv) In our opinion and according to the information and explanations given to us,having regard t o the explanations that som e of the items purchased are of specialnature and suitable alternative sources are not readily available for obtainingcomparable quotations, there is an adequate internal control system com mensuratewith the size of the Company and the nature of its business with regard topurchases of inventory and fixed assets The Company has not commenced itsbusiness operations up t o the year end (Refer note no. 2.3 of Schedule no. 13)andaccordingly there is no comm ercial sale of goods and services. During the courseof our audit, w e have not observed any major weakness in such internal controlsystem.

v) In ou r opinion, the internal audit functions carried out during the year by firm of

Chartered A ccountants appointed by the Managem ent have been comm ensuratewith the size o f the Company and the nature of its business.

vi) According t o the information and explanations given to us, the Com pany's projectfor setting up of formulations plant is at advanced stage of construction and theCompany has not commenced the commercial production and hence, maintenanceof cost records is not applicable during the year under audit.

vii)

a. The Company has generally been regular in depositing undisputed dues,including Provident Fund, Investor Education and Protection Fund,Employees' State Insurance, Income-tax, Sales-Tax, Wealth Tax, ServiceTax, Custom Duty, Excise Duty, cess and any other material statutorydues, applicable to it with the appropriate authorities. According to theinformation and explanation given to us, no undisputed amounts payablein respect of aforesaid were in arrears, as at 31st March, 2010 for a periodof m ore than six months fiom th e date they became payable.

b. Acco rding to information and explanations given to us there are no dues of

salestax,

incomet q ervice

t w c tistoms duty, wealth t w excise dutyand cess, which have not been deposited with the appropriate authoritieson account of any dispute.

viii) The Company has not completed five years from the date of its registration andhence clause (x) o f paragraph 4 of the O rder is not applicable to the company.



Deloitte

Haskins& Sells

ix) In accordance with the terms of arrangement with the holding company, all the

amounts payable to the creditors for the projects under commissioning, are fbnded

by the holding company by way of long term unsecured loan. Considering this, in

our opinion and according to information and explanations given to us, and on an

overall examination of the Balance Sheet, we report that hnds raised on short

term basis have not been used during the year for long term investment.

x) To the best of our knowledge and according to the information and explanations

given to us, no fiaud by the Company and no material fraud on the Company has

been noticed or reported during the year.

For Deloitte Haskins& Sells.

Chartered Accountants

(Registration No. 117366'613 . .

M. S.Dharmadhikari

Yrtner

Membership Number: 30802

Mumbai, dated :28th April, 20 10



Page No. 1


BALANCE SHEET AS AT 31st MARCH 2010 As at As a t

31.03.201 0 31.03.2009

Schedules Amount in Rs. Amount i n Rs.

I. SOURCES OF FUNDS

SHAREHOLDERS'FUNDS

Share Capital 1 10,500,000 10,500,000

Reserves and Surplus 2 89,874,526 89,874,526

100,374,526 100,374,526

LOAN FUNDS

Unsecured Loans 3 2,059,297,869 1,030,708,202

2,059,297,869 1,030,708,202

TOTAL I 2,159,672,395 1 I 1,131,082,728

II. APPLICATION OF FUNDS

FIXED ASSETS 4

Gross Block 95,283,381 91,928,052

Less: Depreciation and Amortisation 10,075,851 5,521,746

Net Block 85,207,530 86,406,306

Capital Work in Progress 1,727,904,117 929,131,814

1,813,111,647 1,015,538,120

CURRENT ASSETS, LOANS AND ADVANCES

Inventories 5 63,758,774 44,812,059

Cash and Bank Balances 6 498,520 3,669,198

Loans and Advances 7 25,024,622 29,002,742

89,281,916 77,483,999

LESS: CURRENT LIABILITIES AND PROVISIONS 8

Current Liabilities 110,899,586 46,777,236

Provisions 3,245,551 1,920,987

114,145,137 48,698,223

NET CURRENT LIABILI'TIES I ASSETS (24,863,221) 28,785,776

Profit and Loss Account 371,423,969 86,758,832

TOTAL I 2,159,672,395 1 I Ill 1,082,728

Sisnificant Accountinq Policies andNotes to Accounts 13

In terms of our report attached

For Deloitte Haskins & Sells For and on behalf of the Board of DirectorsChartered Accountants

MSDharmadhikari - W.XZihlal K. SharmaPartner Director

Place : MumbaiDated : April 28, 2010

Nilesh GuptaDirector



Page No. 2I

L UPIN PHARMACARE LIMITED

PR OFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2010

Previousurrent

Year ended31.03.2010

Am oun t in Rs.

Year ende d31.03.2009

Amount in Rs.chedules

9I INCOMEOther Income

EXPENDITUREPersonnel Expenses[ ~ e f e rote no. 2.3 (b) of sche du le 13 ]

Othei Expenses[ Refer note no. 2.3 (b) of schedu le 13 ]Research and Development Expenses[ Refer note no. 2.3 (c) o f sched ule 13 ]Interest and Finance Charges

I Lo ss before Tax

Provision for Taxation- Current Tax- Deferred Tax- Fringe Benefit Tax

N et Loss af ter Tax

Balan ce brought forward from previous yearI Balan ce Carr ied to Balance Sheet

IEarnings Per Share - Basic ana Diluiea

[Refer note no. 2.8 of Schedu le 131

Face Value o f E quity Shares (in Rs.)Signi f icant Account ing P ol ic ies and

Notes to Accounts

In terms of our report attached

Fo r Deloit te Haskins & Sells For and on behal f of the Board of D i rec tors

Chartered Accountants

MSDharmadh ikar iPartner

Dr. Kam al K. SharmaDirector

Ni lesh GuptaDirector

Place : MumbaiDated : April 28, 2010



LUPIN PHARMACARE LIMI TE DCash flow statement for the year ended 31st March, 2010

A. Cash Flow from Operating Activi ties

Loss before Tax

Adjustments for:

Depreciation [included in Research and Development Expenses (Refer

Schedule 12)]

lnterest on Fixed Deposits with Banks

Loss on disposal of fixed asset

0perating.Loss before working capital changes

Adjustments for:

Inventories

Other Receivables

Trade and Other Payables

Cash used in Operations

Direct Taxes Paid ( Net )

Fringe Benefit Tax Paid

Net Cash used in Operating activities (Refer note 1below)I . Cesh F!nw frem !.n.vnsting Activities

Additions to Fixed AssetsI apital work in progress

lnterest on Fixed Deposits with Banks

Net Cash used in nvesting Activities

C. Cash Flow from Financing Activities

Unsecured Loan received

I' ?!et cash geiiewteb tisiii Fiiisiiciiig ActivitiesI;

Net (decrease)lincrease in cash and cash equivalents

Cash and Cash equivalents as at the beginning of the period

11 Cash and Cash equivalents as at the end of the period

Current year Previous Year

ended ended

31.03.2010 31.03.2009

Amount In Rs Amount In Rs

(284,685,112) (85,800.355)

573,053 240,239

(413) (427,373)23,332

(284,089,140) (85,987,489)

(18,946,715) (44,812,059)

4,028,120 (19,800,263)

41,147,847 15,011,153.

26,229,252 (49,601,169)

(87.1 37) (102.061)

(83,025) (222,000)

(258,030,050) (135,912,719)

(773,730,708) (712,938,143)

413 427,373

(773,730,295) (712,510,770)

1,028,589,667 850,985.270

(3,170,678) 2,561,781

498,520 3,669,198

I Notes :

1 Pending commencement of the commercial production, cash flow arising from Reaserch and Development

activities and administration expenses have been considered as cash flow arising from operating activities.

2 Cash and cash equivalents represent bank balance in current account and deposit account

(Refer Schedule 6 of the Balance Sheel)

3 The above Cash Flow Statement has been prepared under the 'Indirect Method as

set out in the Accounting Standard 3 (AS-3), "Cash Flow Stdement"

1 In terms of our report attached

For Deloitte Haskins 8 Sells

Chactewd Accountant%

M. S. Dharrnadhikari1 Pa.ner

Place : Murnbai

Dated :April 28. 2010

For and on behalf of &ard of Directors

Dr. Kamal K. harrna NileshGupa

Director Director



Paae No. 4


SCHEDULES FORMING PART OF THE BALANCE SHEET

As at As at

31.03.2010 31.03.2009

Amount In Rs. Amount in Rs.SCHEDULE 1 -SHARE CAPITAL

Author lsed :

2,000,000 Equity Shares of Rs 101- each

Issued, Subscr ibed and Paid-up

1,050,000 Equity Shares of R s 101- each fully paid-up 10.500,OOO 10,500,000

TOTAL 10,500,000 10,500,000

Note :All the above equity shares are held by "Lupin Lim ited , the Ho lding Company and its nominees

I CHEDULE 2 - RESERVESAND SURPLUS

Securi t ies Premium Accou ntBalance as per last B alance Sheet

I SCHEDULE 3 - UNSECURED LOANS

I Other Loans and Advances

- From Holding Company Lupin Limled

TOTAL

I TOTAL 2,059,297,869 1,030,708,202



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IPage No. 6

ILUPIN PHARMACARE LIMITED

SCHEDULES FORMING PART OF THE BALANCE SHEET

As at

31.03.2010

Amount i n Rs.

31.03.2009

Amount in Rs.I SCHEDULE5 -INVENTORIES

I Stock-in-trade- Raw Materials

I - Packing Materials

Consumable Stores. Spares and Fuel

TOTAL

SCHEDULE 6 - CASH AND BANK BALANCES

Bank Balances :

- With Scheduled Banks

In Current Accounts 492,500

In Deposii Account 6,020

TOTAL 498,520

Notes :Fixed Deposit Receipt of Rs. 50001- ( Previous Year Rs. 50001-) lcdged with the Government of India.

Bank Balance n deposit account Includes nterest accrued on fixed

deposit aggregating Rs.1,020/- ( Previous Year Rs. 6071-).

( SCHEDULE7 - LOANS AND ADVANCES1 Unsecured, considered good unless 6therwlse stated

I Advances recoverable n cash or in kind or

for value to be received, consideredgood

Deposits

Advance payment of Income Tax

TOTAL

I SCHEDULE 8 -CURRENT LIABILITIES AND PROVISIONS

1Current Liabilities

Sundry Creditors

-Total outstanding dues of Micro Enterprises and Srnall Enterprises- Total outstanding dues of creditors other than Micro Enterprises and

Srnall Enterprises [ includes emporary overdrawn bank balances

as per books of account Rs. 22,626,5401- ( Previous Year Rs. 31,346,3451-)]

Other Liabilities

TOTAL

Provisions

For Gratuity

For Compensated Absences

For Taxation ( net of Advance Tax)

For Fringe Benefit Tax [net o f Advance Tax!

TOTAL




SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT

Current

Year ended

31.03.2010

Amount i n Rs.

SCHEDOLE 9 -OTHER INCOME

lnsurance Claim Received[in respect of loss due to flood (Refer Schedule 11 below)]

Interest on Fixed Deposits with Banks

[Tax Deducted at Source Rs. Nil (previous year Rs.97,863/-)]

Miscellaneous Income

TOTAL

SCHEDULE 10 - PERSONNEL EXPENSES

[Refer note no.2.3 (b) of Schedule 131 .Salaries, Wages and Bonus

Contribution to Provident, Gratuity and Other Funds

Welfare Expenses

TOTAL

SCHEDULE 11 -OTHER EXPENSES

[Refer note no.2.3 (b) of Schedule 131

Loss due lo Flood- Loss of lnvenlory- Repairs and Maintenance- Buildings ,- Plzn! 2nd Mac!!inery- Others

Insurance

Audit Fees

(indudes service tax Rs.51.5721-, previous year Rs.51,560/-)

Repairs and Maintenance- Others

Rent

Freight and Forwarding

Lease Rent and Hire Chlrges

Postage and Telephone Expenses

Travelling and Conveyance

Legal and Professional Charges

Training and Manpower- Training

Guest House mens es

License and Registration

Contract Labour Charges

Exchange Difference

Miscellaneous Expenses

(indudes Printing and Stationery, Vehicle Expenses etc.)

TOTAL

Current

Year ended

31.03.201 0

Amount in Rs.

Previous

Year ended

31.03.2009

Amount i n Rs.



Page No. 8


SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT

Current Prevlbus

Year ended Year ended

31.03.2010 31.03.2909

Amount in Rs. Amount i n Rs.

SCHEDULE 12- RESEARCH AND DEVELOPMENT EXPENSES[ Refer note -no.2.3 (c) of Schedule 13 ]

Cost of Materials

Raw and Packing Materials Consumed

Personnel Expenses

Salaries, Wages and Bonus 47,472,961 1'7,466,016

Contribution o Provident , Gratuity and Other Funds 3,119,338 524,384

Welfare Expenses 8,438,935 . ' ' 2,503,463

Consumable Stores and Spares

Repairs and Maintenance- Buildings- Plant and Machinery-OthersInsurance

Power and Fuel

Contract Labour Charges

Freight and Forwarding

Lease Rent and Hire Charges

Postage and Telephone Expenses

Travelling and Conveyance

Legal and Professional Charges

Clinical and Analytical Charges

Exchange Rate Difference (net)

Depreciation


(includes Printing and Stationery, Vehicle Expenses, General Expenses etc.)



Lupin Pharmacare Limited

SCHEDULE " 13":

SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS

1. Significant Accounting Policies: -1) Basis of preparation of Financial Statements :The accompanying financial statements

have been prepared as per the historical cost convention and in accordance with generally

accepted accounting principles in India, the provisions of the Companies Act, 1956 and the

applicable accounting standards issued by the Institute of Chartered Accountants of India.

2) Use of Estimates : The preparation of financial statement requires estimates and

assumptions that affect the reported amount of assets and liabilities on the date of the

financial statements and the reported amount of revenues and expenses during the

reporting period. Differences between the actual results and the estimates are recognized in

the period in which the same are known / materialized.

3) Fixed Assets : Fixed Assets are stated at cost, less accumulated depreciation and

accumulated impairment losses, if any.

Expenses directly attributable to the project prior to commencement of commercial

production are classified as Project Development Expenditure and disclosed under Capital

Work-in-Progress (net of related income earned, if any, during the project development

stage).

4) Depreciation and Amortisation :Depreciation on fixed assets is provided on straight line

method at the rates and in the manner prescribed in Schedule XIV to the Companies Act,

? 956, except for the Leasehold Land, which is amoeised over the period of.lease.

5) Foreign Currency Transactions :

i) Transactions in foreign currency are recorded at the original rate of exchange in forceat

the time transactions are effected.

ii) Exchange difference arising on settlements during the year of short term monetary items

denominated in foreign currency; and exchange difference arising on the reporting of short

term monetary items denominated in foreign currency which are outstanding at the year-

end using the exchange rates prevailing at the balance sheet date, are recognized in the

Profit and Loss Account.

iii) In terms of the Notification relating to AS 11 issued by the Ministry of Corporate Affairs inMarch 2009:

a) The exchange difference arising on reporting of the "Long Terrn Foreign CurrencyMonetary Items" at the rates different from those at which they were initially recorded

during the period or reported in the previous financial statements and the exchange

difference on settlement of such items, in so far as such items relate to the

acquisition of a depreciable capital asset, are added or deducted as the case may

be, frorn the cost of the respective asset and depreciated over the balance life of

those assets and

b) In other cases, these are accumulated in a "Foreign Currency Monetary Item

Translation Difference Account" and amortised over the balance period of such long

term assetlliability but not beyond 31st March, 201 1.



6) Inventories:

Stock-in-trade and stock of consum able stores, spares and furnace oil are valued at lower ofcost and net realisable value. Cost is computed based on moving weighted average inrespect of all procured materials. Cost also includes all charges incurred for bringing theinventories to their present location and condition.

7) Employee Benef i ts :

a) Post Emp loyment Benefits and Othe r Long Term Ben efits.

i) Defined Co ntribution Plan

Company's contribution for the year paidlpayable to defined contribution retirement benefitschemes are charged to Profit and Lo ss Account.

ii) De fined Benefit and Other Long Term Benefit PlansCom pany's liabilities towards defined be nefit plans and other long term benefits viz. gratuity

and com pensated absences expected to occur after twelve months, is determined using theProjected Unit Credit Method. Actuarial valuations und er the Projected Unit Credit M ethodare carried out at the balance sheet date. Actuarial gains and losses are recognised in th eProfit and Loss account in the period of occurrence of such gains and losses. Past servicecost is recogn ised immed iately to the ex tent of benefits are vested, otherwise it is am ortised -on straight-line basis over the remaining average period u ntil the benefits become vested.

The retirement benefit obligation recognised in the balance sheet represents the presentvalue of the defined benefit obligation as adjusted for unrecognised past service cost, an das reduced by the fair value of s cheme assets. Any asset resulting from this calculation islimited to past service cost, plus the present value of available refunds and reductions infuture contributions to the scheme.

b) Short-term employee benefitsShgrt-term employee benefits expected to be paid in exchang e for the services rende red byemployees a re recognised undiscounted during the period employee renders services.These benefits include performance incentives.

8) Research an d DevelopmentRevenue expenditure incurred on resea rch and developm ent is charged to the Profit ar ~ dLoss account in the year it is incurred and Capital expenditure there on is included n therespective heads under the fixed assets.

9) Taxes on lncome : lncome Taxes are accounted for in accordance with AccountingStandard 22 on "Acco unting for Taxes on Income", (AS 22). Tax expense comprises bo thcurrent tax and deferred tax. Current tax is m easured at the amount expected to be paid orrecovered from the tax au thorities using applicable tax rates.

Deferred tax asse ts and liabilities are rec ognize d for future tax consequence a ttributable totiming difference between taxable income and accou nting income that are measured atrelevant enacted tax rates. At each balance sheet date the company reassessesunrecognised deferred tax assets, to the extent they beco me reasonably certain or virtuallycertain of realisation, as the case may be.

10) Fringe Be ne f i t Tax:

Fringe Benefit Tax was recognized in accordance with the relevant provisions of the IncomeTax Act, 1 961 a nd the Guidance note on Fringe Benefit Tax issued by the Institute ofChartered Acco untan ts of India (ICAI).



11) Provisions, Contingent Liabilities and Contingent Assets : Provisions involving

substantial degree of estimation in measurement are recognized when there is a present

obligation as a result of past events and it is probable that there will be an outflow ofresources. Contingent Liabilities are not recognised but are disclosed in the Notes to

Accounts. Contingent Assets are neither recognised nor disclosed in the financial

statements.

2 Notes to Accounts: -2.1 Company Overview: -

The Company was incorporated on 1 0 ~anuary 2007 in India under the provisions of the

Companies Act, 1956 mainly to manufacture and market pharmaceutical products in

advanced markets.

2.2 Considering the definition of reportable business segment and reportable geographical

segment contained in Accounting Standard 17 (AS 17) "Segment Reporting", the

management is of the opinion that there is only one reportable business segment viz.

'Pharmaceutical' and one geographical segment, the results of which are disclosed in thefinancial statements.

The Company is setting up a formulation plant in a Special Econornic Zone at Pithampur,

Indore, Madhya Pradesh.

a) The expenditure incurred during the construction period and directly attributable to the

Project is classified as "Project Development Expendituren. Such expenses will be

apportioned to the cost of the respective fixed Assets on commissioning of the Plant.

Necessary details as per part II of Schedule VI of the Companies Act, 1956 have been

disclosed below :

Project Development Expenditure (included under Capital Work-in-Progress (schedule 4)):l-:-. .---, n dupees

Opening Balance

---- .-

55,369,753

Payments to and ~rovisionsor Employees- Salaries, Wages and Bonus- Contribution to Provident, Gratuity and Other

Funds.- Welfare and other expenses

-2,648,934

231,259

Rent

Rates and Taxes

5,766,564

173,130

347,616

Insurance

Lease Rent and Hire Charges

Printing and Stationery

License and Registration

Maintenance Charges

Travelling and Conveyance Expenses

Legal and Professional lees


b) Personnel Expenses Rs. 2,725,8941- (Previous year Rs. 653,8981-) (Schedule 10)and other expenses Rs. 83,062,2841- (Previous year Rs. 598,3791-) (Schedule 11 ,

826,541

--

1 Depreciation-

Power and Fuel

Closing Balance

594,500

2.500-4,799,204

26,879-

1,479,377

132,176

852,740

3,495,391

250,109

13,489,768

876,655

252,768

5,979,220

1,252,356

3,590,417

5,858,662

3,986,720

4,706,703

78,076,752

3,522,134

4,278,821

55,369,753



which are in the nature of general and administrative costs and not directly

attributable to the project, are charged to Profit and Loss Account.

c) Research and development expenditure debited to Profit and Loss Account

aggregating Rs. 233,053,2311- (Previous year Rs. 84,975,4511-) (refer Schedule 12)

represents costs incurred on various stability testing, test runs and experimental

production of exhibit batches of various products which the company maymanufacture on successful commissioning of the plant for commercial production

and upon obtaining necessary regulatory approvals.

Presently, the plant has only the test batch manufacturing license. It is still to be

commissioned and start commercial production. As soon as, the plant is ready for

commercial production, all the expenses other than those referred to in (b) and (c)

above, will be allocated1 apportioned to the cost of respective fixed assets and

capitalized.

2.4 Estimated amount of contracts remaining to be executed on capital account and not

provided for net of advances, Rs. 256,861,1661- (Previous Year Rs. 348,195,4641-)

2.5 Contingent Liabilities :VAT demand of Rs. 1,032,4901- (Previous Year Rs. 1,032,4901-) raised under the State VAT

Act, disputed in appeal and pending decision before higher authorities. The Company has

paid Rs. 1,032,4901- (Previous year Rs. 1,032,4901-) included in Loans and Advances

(Schedule 7). The Company expects to succeed in the matter.

2.6 Additional information pursuant to the Provisions of Paragraphs 4D of part II of schedule VI

to the Companies Act, 1956 for production of experimental batches and exhibit production.

a) Consumption of Materials:

b) Value of lmported and lndigenous consumption:

Item

Minocycline

Hydrochloride USP (Archimica)

Dihydroxy Ketone (For

Drospirenone)

Methoxydienone

Estra-4, 9 Diene-3, 17

Dione3 Keto 17 Hydroxy(For

desogestral)

Others

TOTAL

I I I ITOTAL 1 100.00 1 33,779,544 1 100.00 12,360,876

2009-2010

Quantity (Unit

in Kgs)-

17.1 07

-27

8.125

-

-

i)Consumption of Materials:

Imported

. Indigenous

2009-2010

Value Rs.

-

9,402,244

-

2,472,378

15,995,355

5,909,567

33,779,544

2008-2009

Quantity (Unit

in Kgs)

63.399

4.228

31OOO

-

-

-

-

2009- 201 0

2008-2009

Value Rs.

5,121,140

2,352,758

2,294,064-

-

2,592,914

12,360,876

YO

90.52

9.48

2008-2009

Amount in Rs.

30,575,947

3,203,597

%

76.21

23.79

Amount in Rs.

9,420,703

2,940,173



ITOTAL

I I) 100.00 1 82,957,688

I I/ 100.00 1 26,808,518

ii) Consumption of Stores and Spares :

c) CIF Value of Imports:

ImportedIndigenous

2.7 Auditors Remuneration:

Capital Goods

Raw Materials

Packing Materials

Stores and Spares

2009 - 2010

*excluding service tax

YO

2.6597.35

2008- 2009

2009-2010112,324,119

33,793,896

3,014,115

2,197,748

2.8 Earnings Per Share (EPS) is calculated as follows:

Amount in Rs.2,197,748

80,759,940

YO-100.00

2008 -20091 1,670,040

29,965,929

295,144-

-

-

Particularsa) As Audit Feesb) Reimburseme~i of out-of-pocket expenses

Total

Amount in Rs.-26,808,518

2.9 Post Employment Benefits

(i) Defined contribution plans:

For the Year ended 31"March 2010 in Rs. *

500,000700

500,700

The Company makes contributions towards provident fund and superannuation fund to adefined contribution retirement benefit plan for qualifying employees. The superannuationfund is administered by the Life Insurance Corporation of India (LIC). Under the plan, theCompany is required to contribute a specified percentage of payroll cost to the retirementbenefit plan to fund the benefits.

The provident fund plan is operated by the "Lupin Ltd Employees Provident Fund Trust"(the "Trust"). Eligible employees receive benefits from the said ~kovident und Trust. Boththe employees and the Ccmpany make mcnthiy ccr,:rlbu~icns tc the Provident Fund Plzr:equal to a specified percentage of the covered employee's salary. The minimum interest

For the Year ended 31"'March 2009 in Rs. *

500,000-

500,000

For the Year ended31'' March 2009 in Rs.(86,249,929)

1,050,000

(82.14)

Particulars

Net Loss after tax attributableto Equity ShareholdersWeighted average number ofequity shares- Basic and Diluted

Basic and Diluted Earningsper share

For the Year ended31'' March 2010 in Rs.(284,665,137)

1,050,000

(271.1 1)



rate payable by the Trust to the beneficiaries every year is being notified by theGovernment. The Com pany has an obligation to make good the short fall, if any, be tweenthe return from the inv estments of the trust and the notified interest rate.

The Guidance No te on Implementing AS 15, Employee benefits (revised 2005) issued byAccounting Standards Board (ASB) states that benefit plans involving employer estab lishedprovident funds, wh ich require interest shortfalls to be recom pensed are to be consideredas defined benefit plans. Pending the issuance of the guidance note from the ActuarialSociety of India, the Company's actuary has expressed an inability to reliably measureprovident fund liabilities. Accordingly, the Com pany is unable to exhibit th e relatedinformation.

The Company recognized Rs. 1,367;496/- (Previous year Rs. 322,235/-) for providentfund contributions in the Profit and Loss Account.

(ii) De fined benefit plan

The Company makes annual contributions to the Lupin Limited Em ployees' Group Gratuitycum Life Assurance Scheme administered by the LIC, a funded defined benefit plan for

qualifying em ployees. The scheme p rovides for payment to ves ted employees as under:

-

a) On Normal retirement/ early retiremen t/ withdrawal/resignation:As per the provisions of Paym ent of G ratuity Act, 1972 with vesting period of 5 years ofservice.

-

b) On death in service:As per the provisions of Payment of Gra tuity Act, 1972 without any vesting period.

The most recent actuarial valuation of plan assets and the present value of the definedbenefit obligation for gratuity were carried cut zs at Mzrch 31,2C)'i0 by the LlC. The pieseiii

value of the defined benefit obligations and the related current service cost and pastservice cost, were measured using the P rojected Unit Credit Method.

The following table sets out the status of the gra tuity plan and the amounts recognized inthe Company's financial statem ents as at March 31, 2010.

Sr. Ns

I )

II)

Particulars---Reconciliation in present value ofsbliaations (FVO)

-defined benefit

obligation :Present value of obligations as atbeginning of yearCurrent Service CostInterest CostActuarial (gain) 1 lossesBenefits paidPVO on transfer of the employees to theCompanyPVO at end of the year

Chanqe in fair value of plan assets :Fair value of plan assets at beginning ofyearExpected return on plan assetsActuarial gain/(losses)

Gratuity (Funded)

As on31.03.2010

Rs.

2,516,962

376,28796,637

(218,093)(212,756)

-

2,559,037

1,901,369

149,769

As on31.03.2009

Rs.

-

317,914237,685 ,

258,138(642,843)

. 2,346,068

2,516,962

-202,894

-



Note : The Company is covered under the "Group Gratuity Scheme" of the Holding

Company, Lupin Limited (LL). LL has obtained actuarial valuation certificate in respect of

gratuity for all the entities covered under the aforesaid scheme, on a composite basis. The

afcresaic! detzi!s have been derived based on alloczti~nn proportion of salary cost of the

concerned companies covered under the Scheme.

2.10 Related Parties Disclosure Note: -a) Name of Related parties and description of relationship: -

Company whose control exists - Lupin Limited (Holding Company)

b) Transactions with the Related parties: -Sr.

No.

1.2.

5 .

4.

Transaction

Purchases of Raw MaterialsPurchase of Equipment

~isceilaneousncome

Unsecured Loan received

Description of

Relationship

Holding CompanyHolding Company

Holding Cornpany

Holding Company

Amount (Rs)

2009-1 0

, 15,696,7848,275,813

31,19,855

1,028,589,667

Amount (Rs)

2008-09

8,873,5801,115,603

-

850,985,270



c ) Balances due to Related parties: -

Note: -Related party relationship is as identified by the Company and relied upon by the Auditors.

2.1 1 The information regarding Micro, Small and Medium Enterprises has been determined to theextent s ~ c h arties have been identified on the basis of information available with theCompany. This has been relied upon by the auditors.

1,030,708,202..2.

Vide a Scheme of Amalgamation, Lupin Pharmacare Limited, Lupin Herbal Limited andNovodigm Limited (wholly owned subsidiaries of Lupin Limited) have filed petitions beforethe Honourable High Courts of Mumbai 1 Gujarat for amalgamation with Lupin Limited, the

appointed date being April 1, 2009. Vide its Order dated January 8, 2010, the HonourableHigh Court of Judicature at Mumbai sanctioned the scheme of amalgamation betweenLupin Pharmacare Limited and Lupin Herbal Limited with Lupin Limited subject, to the orderto be passed by the Honourable High Court of Gujarat sanctioning the scheme ofamalgamation between Novodigm Limited and Lupin Limited. The order af the HonourableHigh Court of Gujarat is awaited. Pending such Order, no effect has been given in theseaccounts to the Scheme of Amalgamation.

2.13 Previous year figures are regrouped wherever required.

2.14 Figures in bracket are for the previous year.

2,059,297,869618,094

Unsecured Loan balanceCreditor balance

Signature to schedules 1 to 13

Holding CompanyHolding Company

For and on behalf of the Board of Directors

Dr. Kam al K. SharflhaDirector

Nilesh Gupta.Director

Place : MumbaiDated :April 28, 2010

Lupin Pharma Care Ltd., InDIA

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