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Cipla Ltd(Industry :   Pharmaceuticals - Indian - Bulk Drugs & Formln)
 
BSE Code:500087NSE Symbol: CIPLAP/E  (TTM): 26.93
ISIN Demat:INE059A01026Div Yield %:0.38EPS   (TTM) :19.63
Book Value (Rs):137.9428746Market Cap (RsCr):42463.6Face Value (Rs) :2
  Change Company 






NOTES TO THE ACCOUNTS









1 Significant Accounting Policies

A Basis of Preparation

The financial statements are prepared in accordance with the generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 issued under subsection (3C) of section 211 of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. Previous year figures have been recast/regrouped wherever necessary in order to conform to current year’s presentation.

B Use of Estimates

The preparation of financial statements requires the Management of the Company to make estimates and assumptions that affect the reported balance of assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision of accounting estimates is recognised prospectively in the current and future periods.

C Fixed Assets

Fixed assets are stated at cost of acquisition (net of recoverable taxes and Government grants and other subsidies, wherever availed ) or construction or other amounts substituted for historical costs on revaluation less accumulated depreciation. Where several fixed assets are acquired for a consolidated price, the consideration is apportioned to fixed assets on fair value basis.

D Borrowing Costs

Borrowing costs attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other borrowing costs are charged to the Statement of Profit and Loss.

E Depreciation

Depreciation on fixed assets is provided on the Straight Line Method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

All individual items of fixed assets, where the actual cost does not exceed Rs.5000 have been written off entirely in the year of acquisition.

Cost of leasehold land including premium is amortised over the primary period of lease.

F Valuation of Inventories

Raw materials and packing materials are valued at lower of cost and net realisable value after providing for obsolescence, if any. However, these items are considered to be realisable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.

Work-in-process and finished goods are valued at lower of cost and net realisable value. Work-in-process and finished goods include costs of raw material, labour, conversion costs and other costs incurred in bringing the inventories to their present location and condition.

Cost of finished goods includes excise duty, wherever applicable.

Cost of inventories is computed on weighted average basis.

G Investments

Non-current investments are stated at cost, less provision for diminution (other than temporary) in value.

Current investments are stated at lower of cost and fair value.

Investments property is carried at cost, less depreciation computed in a manner prescribed for Fixed Assets.

H Foreign Exchange Transactions

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

Foreign currency monetary assets and liabilities and forward contracts are restated at year end exchange rates. Exchange differences arising on the settlement of foreign currency monetary items or on reporting

Company’s foreign currency monetary items at rates different from those at which they were initially recorded during the year or reported in the previous financial statements, are recognised as income or expense in the year in which they arise.

Non-monetary foreign currency items are carried at the rates prevailing on the date of the transaction.

In respect of forward contracts, the premium or discount on these contracts is recognised as income or expenditure over the period of the contract. Any Profit or loss arising on cancellation or renewal of such contracts is recognised as income or expense of the year.

Foreign branches are identified as integral foreign operations. All transactions are translated at rates prevailing on the date of transaction. Monetary assets and liabilities of the branch are restated at the year end rates.

I Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date.

A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

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

J Revenue Recognition

Revenue is recognised to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer, which ordinarily coincides with despatch of goods to customers. Revenues are recorded at invoice value, net of sales tax, returns and trade discounts.

Revenue from rendering of services are recognised on completion of services.

Benefits on account of entitlement of export incentives are recognised as and when the right to receive is established.

Technical Know-how/Fees are recognised as and when right to receive such income is establised as per terms and conditions of relevant agreement.

Interest income is recognised on time proportion basis.

Dividend income is recognised when the right to receive is established.

K Employee Benefits

Liability on account of short term employee benefits is recognised on an undiscounted and accrual basis during the period when the employee renders service/vesting period of the benefit.

Post retirement contribution plans such as Employees’ Pension Scheme are charged to the Statement of Profit and Loss for the year when the contributions to the respective funds accrue.

Periodic contributions towards post retirement benefit plan such as provident fund administered through an Employees’ Provident Fund Trust are charged to the Statement of Profit and Loss.

Post retirement benefit plans such as gratuity and leave encashment are determined on the basis of actuarial valuation made by an independent actuary as at the Balance Sheet date. Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.

L Income Tax

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of local Income Tax Laws as applicable to the financial year.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted as at the Balance Sheet date.

The Company offsets, on a year-on-year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

M Impairment of Assets

At each Balance Sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairment loss is charged to the Statement of Profit and Loss. If, at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

N Research and Development

Revenue expenditure on Research and Development is recognised as expense in the year in which it is incurred.

Capital expenditure on Research and Development is shown as addition to Fixed Assets.

O Expenditure on Regulatory Approvals

Expenditure incurred for obtaining regulatory approvals and registration of products for overseas markets is charged to revenue.

P Government Grants and Subsidies

Capital subsidy/Government grants are accounted for where it is reasonably certain that the ultimate collection will be made. Capital subsidy/Government grants related to specific depreciable assets are shown as deduction from the gross value of the asset concerned in arriving at its book value. The grant/subsidy is thus recognised in the Statement of Profit and Loss over the useful life of such depreciable assets by way of a reduced depreciation charge.

Q Leases

Where the Company is a Lessee

Lease rentals on assets taken on operating lease are recognised as expense in the Statement of Profit and Loss on an accrual basis over the lease term in accordance with the lease agreement.

Where the Company is a Lessor

Lease rentals on assets given on operating lease are recognised as income in the Statement of Profit and Loss on an accrual basis in accordance with the lease agreement.

R Earnings Per Share

Basic earnings per share is calculated by dividing the net Profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net Profit attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effect of all dilutive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which would be issued on the conversion of all the dilutive potential equity shares into equity shares.

Rs. in crore
2013 2012
2 Share Capital
Authorised
87,50,00,000 Equity Shares of Rs.2 each (Previous year 87,50,00,000 Equity Shares of Rs.2 each) 175.00 175.00
175.00 175.00
Issued
80,39,24,752 Equity Shares of Rs.2 each (Previous year 80,39,24,752 Equity Shares of Rs.2 each) 160.78 160.78
160.78 160.78
Subscribed & Paid-up
80,29,21,357 Equity Shares of Rs.2 each fully paid (Previous year 80,29,21,357 Equity Shares of Rs.2 each fully paid) 160.58 160.58
160.58 160.58

• There is no change in the shares outstanding at the beginning and at the end of the reporting date and immediately preceding reporting date.

Details of Shareholders holding more than 5 percent shares in the Company

2013 2012
Number of shares % Holding Number of shares % Holding
Dr. Y.K. Hamied 12,48,27,750 15.55 12,48,27,750 15.55
Mrs. Farida Hamied 4,19,14,937 5.22 4,19,14,937 5.22
Mrs. Sophie Ahmed 4,59,82,000 5.73 4,59,82,000 5.73
Life Insurance Corporation of India 4,41,70,361 5.50 8,01,53,536 9.98

• Terms and Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

Rs. in crore
2013 2012
3 Reserves and Surplus
Capital Reserve 0.08 0.08
Securities Premium Reserve 1428.96 1428.96
Revaluation Reserve 8.97 8.97
General Reserve
As per last Balance Sheet 2841.43 2716.43
Add: Transferred from the Statement of Profit and Loss 160.00 125.00
Balance at the end of the year 3001.43 2841.43
Surplus in the Statement of Profit and Loss
As per last Balance Sheet 3110.26 2297.93
Add: Profit for the year 1507.11 1123.96
4617.37 3421.89
Less: Appropriations
Transferred to General Reserve 160.00 125.00
Proposed Dividend 160.58 160.58
Tax on Dividend 27.29 26.05
Balance at the end of the year 4269.50 3110.26
8708.94 7389.70

 

Rs. in crore
2013 2012
4 Long Term Borrowings
Unsecured
Deferred Payment Liability - Sales Tax Deferral Loan 0.55 2.20
0.55 2.20
VAT Deferral scheme is for 10 years, hence liability is repayable in 3 installments from the 10th year.

 

Rs. in crore
2013 2012
5 Deferred Tax Liabilities
Deferred Tax Liabilities arising on account of
Export Incentives 0.79 17.52
Depreciation 280.41 214.93
281.20 232.45

 

Rs. in crore
2013 2012
6 Other Non-Current Liabilities
Security Deposits 30.00 30.00
30.00 30.00

 

Rs. in crore
2013 2012
7 Long Term Provisions
Provision for Employee Benefits - Leave Encashment (Note 25) 47.34 29.12
47.34 29.12

 

Rs. in crore
2013 2012
8 Short Term Borrowings
Loans Repayable on demand
Secured
Cash Credit from Banks (Secured against receivables and moveable assets including stocks, both present and future) 9.49 10.00
Unsecured
Packing Credit from Banks 955.77 -
965.26 10.00

 

Rs. in crore
2013 2012
9 Trade Payables
Micro, Small and Medium Enterprises 41.88 14.13
Others 785.21 671.72
827.09 685.85

The details of amounts outstanding to Micro, Small and Medium Enterprises based on available information with the Company is as under:

Rs. in crore
2013 2012
i. The principal amount and the interest due thereon remaining unpaid to suppliers
a. Principal - -
b. Interest due thereon - -
ii. a. The delayed payments of principal paid beyond the appointed date during the entire accounting year - -
b. Interest actually paid under section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 - -
iii. a. Normal interest accrued during the year, for all the delayed payments, as per the agreed terms - -
b. Normal interest payable for the period of delay in making payment, as per the agreed terms - -
iv. a. Total interest accrued during the year - -
b. Total interest accrued during the year and remaining unpaid - -

 

Rs. in crore
2013 2012
10 Other Current Liabilities
Current maturities of Long Term Debt - Sales Tax Deferral Loan 0.14 0.72
Unclaimed Dividend* 15.46 13.59
Statutory Dues 28.39 19.57
Dues to Employees 37.77 24.63
Creditors for Capital Expenditure 56.48 41.47
Unclaimed Preference Share Capital 0.01 0.01
Security Deposits 1.50 1.73
Book Overdraft 33.43 24.95
Advance from Customers 69.31 106.12
Interest Payable 0.13 -
242.62 232.79

* There are no amounts due and outstanding to be credited to Investor Education & Protection Fund.

Rs. in crore
2013 2012
11 Short Term Provisions
Provision for Employee Benefits - Leave Encashment (Note 25) 7.99 7.29
Employee Retirement Benefit Obligations - Gratuity (Note 25) 25.65 17.49
Provision for Bonus 8.12 9.23
Proposed Dividend 160.58 160.58
Tax on Proposed Dividend 27.29 26.05
229.63 220.64

12 Fixed Assets - Tangible Assets

GROSS BLOCK DEPRECIATION/AMORTISATION NET BLOCK
ASSETS As at 01.04.12 Additions Deletions / Adjustments As at 31.03.13 Upto 31.03.12 For the year 2012-13 Deletions / Adjustments Upto 31.03.13 As at 31.03.13 As at 31.03.12
Freehold Land 31.63 1.10 - 32.73 - - - - 32.73 31.63
Leasehold Land 75.05 0.02 0.02 75.05 9.48 1.79 - 11.27 63.78 65.57
Plant and Equipments 3024.64 296.58 49.81 3271.41 1078.98 256.11 31.18 1303.91 1967.50 1945.66
Office Equipments 58.67 14.49 0.86 72.30 10.55 3.17 0.31 13.41 58.89 48.12
Furniture and Fixtures 105.27 9.27 1.14 113.40 34.97 6.90 0.61 41.26 72.14 70.30
Buildings and Flats 993.75 415.87 0.08 1409.54 157.65 34.26 - 191.91 1217.63 836.10
Vehicles 9.17 1.51 1.30 9.38 3.89 0.79 0.92 3.76 5.62 5.28
Total 4298.18 738.84 53.21 4983.81 1295.52 303.02 33.02 1565.52 3418.29 3002.66
Previous year 3928.47 444.05 74.34 4298.18 1060.82 282.06 47.36 1295.52

Notes: i. The gross value of Buildings and Flats includes the cost of shares in Co-operative Housing Societies.

ii. The above additions to fixed assets during the year includes Rs.61.32 crore (Previous year Rs.17.40 crore) used for Research and Development.

iii. Freehold Land at Mumbai Central and Vikhroli, were revalued on 16th March 1985 and was again revalued on 21st March 1990 along with Freehold Land at Bengaluru on the basis of valuation report of approved valuers resulting in an increase in book value by Rs.8.97 crore.

Rs. in crore
2013 2012
13 Non-Current Investments
Trade Investments
Investments in Equity Instruments (Unquoted)
Investment in Wholly Owned Subsidiaries
15 (Previous year 15) Equity Shares of Cipla FZE of AED 10,00,000 each, fully paid 18.69 18.69
45,966 (Previous year 45,966) Equity Shares of Goldencross Pharma Pvt. Ltd. of Rs.10 each, fully paid 191.12 191.12
60,00,072 (Previous year 60,00,072) Equity Shares of Meditab Specialities Pvt. Ltd. of Rs.1 each, fully paid 133.72 133.72
8,50,001 (Previous year 7,00,001) Ordinary Shares of Cipla (Mauritius) Ltd. of USD 1 each, fully paid 3.96 3.16
Investment in Associates
87,33,333 (Previous year 87,33,333) Ordinary Shares of Biomab Holding Ltd. of USD 1 each, fully paid 114.78 114.78
1,70,48,597 (Previous year Nil) Equity Shares of Mabpharm Pvt. Ltd. of Rs.10 each, fully paid 51.74 -
Investment in Joint Venture
1 (Previous year 1) Ordinary Share of Aspen-Cipla Australia Pty Ltd. of AUD 1, fully paid - Rs.51.97 (Previous year Rs.51.97) 0.00 0.00
Other Investments
Investments in Equity Instruments (Unquoted)
1,000 (Previous year 1,000) Equity Shares of The Saraswat Co-operative Bank Ltd. of Rs.10 each, fully paid - Rs.10000 (Previous year - Rs.10000) 0.00 0.00
Investments in Government and Trust Securities
National Savings Certificates - Rs.40000 (Previous year - Rs.39000) 0.00 0.00
Investment property (at cost less accumulated depreciation)
Cost of Building given on Operating Lease 0.52 0.52
Less: Accumulated Depreciation 0.17 0.16
Net Block 0.35 0.36
514.36 461.83
Aggregate amount of unquoted investments - Rs.514.01 crore (Previous year - Rs.461.47 crore)

 

Rs. in crore
2013 2012
14 Long Term Loans and Advances
Secured, Considered Good
Capital Advances# 7.03 1.77
Unsecured, Considered Good
Capital Advances* 72.12 75.51
Security Deposits 30.03 23.98
MAT Credit Entitlement Receivable - 70.00
Advance Taxes and TDS (Net of Provision for Tax Rs.663.50 crore;
Previous year Rs.505.20 crore) 223.11 188.15
VAT Receivable 34.22 26.24
Other Loans and Advances 7.21 7.85
373.72 393.50

# Secured against Bank Guarantees

* Includes Rs.55.74 crore (Previous year Rs.55.74 crore) paid to wholly owned subsidiary - Meditab Specialities Pvt. Ltd.

Rs. in crore
2013 2012
15 Other Non-Current Assets
Fixed Deposits as Margin Money (maturity more than 12 months) 0.31 0.24
0.31 0.24

 

Rs. in crore
No. of units 2013 No. of units 2012
16 Current Investments
Investments in Mutual Funds (Unquoted)
Axis Mutual Fund "Axis Liquid Fund" - Direct Plan - Growth 1,54,071 20.00 - -
Axis Mutual Fund - "Axis Fixed Term Plan" Series 23 (3 Months) - Growth - - 50,00,000 5.00
Axis Mutual Fund "Axis Liquid Fund" - Institutional Growth - - 2,52,756 30.00
Baroda Pioneer Mutual Fund "Baroda Pioneer Liquid Fund" - Plan B - Growth 12,00,494 161.17 - -
Baroda Pioneer Mutual Fund "Baroda Pioneer Liquid Fund" - Institutional Growth - - 81,570 10.01
Birla Sun Life Mutual Fund "Birla Cash Plus" - Institutional Premium Growth - - 19,72,187 33.84
Birla Sun Life Mutual Fund "Birla Sun Life Cash Plus" - Growth - Direct Plan 56,48,719 106.00 - -
Birla Sun Life Mutual Fund "Birla Sun Life Floating Rate Fund Short Term Plan" - Growth - Direct Plan 16,06,630 25.00 - -
Birla Sun Life Mutual Fund "Birla Sun Life Floating Rate Fund" - Short Term - IP - Growth - - 14,58,285 20.75
Daiwa Mutual Fund "Daiwa Liquid Fund" - Institutional Plan - Growth Option - - 1,21,859 14.61
Deutsche Asset Management "DWS Insta Cash Plus Fund" - Direct Plan - Growth 7,26,876 141.11 - -
Deutsche Asset Management "DWS Insta Cash Plus Fund" - Super Institutional Plan Growth - - 18,95,798 26.39
Deutsche Asset Management "DWS Ultra Short Term Fund" - Direct Plan - Growth 35,95,053 5.00 - -
DSP Blackrock Mutual Fund "DSP Blackrock Liquidity Fund" - Direct Plan - Growth 92,66,104 121.91 - -
Edelweiss Mutual Fund "Edelweiss Fixed Maturity Plan - Series 5" - Growth Plan - - 1,00,00,000 10.00
Edelweiss Mutual Fund "Edelweiss Liquid Fund" - Super Institutional Growth - - 1,01,92,623 10.80
Franklin Templeton Mutual Fund "Templeton India Treasury Management Account" - Super Institutional Plan Growth - - 1,99,584 31.82
HDFC Mutual Fund "HDFC Cash Management " - Savings Plan Growth - - 1,76,63,721 39.50
ICICI Prudential Mutual Fund "ICICI Prudential Liquid Plan" - Super Institutional Growth - - 22,52,438 35.68
ICICI Prudential Mutual Fund "ICICI Prudential Liquid" - Direct Plan - Growth 77,30,182 133.94 - -
IDBI Mutual Fund "IDBI Liquid Fund" - Growth - Direct 71,565 9.00 - -
Indiabulls Mutual Fund "Indiabulls Liquid Fund" - Direct Plan Growth 3,54,872 40.43 - -
JM Financial Mutual Fund "JM High Liquidity Fund" (Direct) - Growth Option (452) 2,15,84,260 68.97 - -
JM Financial Mutual Fund "JM High Liquidity Fund" - Super Institutional Plan - Growth - - 1,72,33,780 28.93
JP Morgan Mutual Fund "JP Morgan India Liquid Fund" - Direct Plan - Growth 8,24,75,345 125.26 - -
JP Morgan Mutual Fund "JP Morgan India Liquid Fund" - Super Institutional Growth Plan - - 2,38,07,567 33.05
Kotak Mahindra Mutual Fund "Kotak Liquid Scheme" Plan A - Direct Plan - Growth 5,23,470 124.45 - -
Kotak Mahindra Mutual Fund "Kotak Liquid" - Institutional Premium Growth - - 37,93,348 8.25
L&T Mutual Fund "L&T Liquid Fund" Direct Plan - Growth 1,55,629 25.00 - -
Morgan Stanley Mutual Fund "Morgan Stanley Liquid Fund" Direct Growth Plan 3,04,488 35.03 - -
Peerless Mutual Fund "Peerless Liquid Fund" - Direct Plan Growth 11,48,39,618 147.18 - -
Peerless Mutual Fund "Peerless Liquid Fund" - Super Institutional Growth - - 2,81,19,991 32.91
Pramerica Mutual Fund "Pramerica Liquid Fund" - Direct Plan - Growth Option 6,01,771 75.28 - -
Pramerica Mutual Fund "Pramerica Liquid Fund" - Growth Option - - 3,69,831 42.27
Principal Mutual Fund "Principal Cash Management Fund" - Direct Plan - Growth Option 11,27,268 128.45 - -
Reliance Mutual Fund "Reliance Liquid Fund - Treasury Plan" Institiutional - Growth Option - - 1,34,78,017 35.15
Reliance Mutual Fund "Reliance Liquidity Fund" - Direct Growth Plan 7,55,484 133.29 - -
Religare Mutual Fund "Religare Liquid Fund"
- Direct Plan Growth 10,48,687 168.88 - -
SBI Mutual Fund "SBI Magnum Insta Cash Fund - Liquid Floater" - Direct Plan - Growth 74,749 15.04 - -
Sundaram BNP Paribas Mutual Fund "Sundaram Money Fund" - Super Institutional Growth - - 1,42,77,965 32.25
Sundaram BNP Paribas Mutual Fund "Sundaram Money Fund" - Direct Plan - Growth 3,66,72,109 90.60 - -
Tata Mutual Fund "Tata Liquid Super High Investment Fund" - Appreciation - - 92,289 18.26
Taurus Mutual Fund "Taurus Liquid Fund" - Direct Plan - Super Institutional Growth 11,58,404 146.43 - -
Taurus Mutual Fund "Taurus Liquid Fund" - Super Institutional Growth - - 86,529 10.00
Union KBC Mutual Fund "UKBC Liquid Fund" - Growth - Direct Plan 85,183 10.00 - -
Union KBC Mutual Fund "UKBC Liquid Fund" - Growth - - 3,79,362 40.70
UTI Mutual Fund "UTI Fixed Income Interval Fund" - Quaterly Interval Plan Series-I - Institutional Growth Plan - - 84,85,939 10.00
UTI Mutual Fund "UTI Liquid Cash Plan" - Institutional Growth Option - - 74,765 13.15
UTI Mutual Fund "UTI Liquid Cash Plan" - Institutional - Direct Plan - Growth 1,56,352 30.04 - -
2087.46 573.32

Aggregate amount of unquoted investments - Rs.2087.46 crore (Previous year - Rs.573.32 crore)

Rs. in crore
2013 2012
17 Inventories (Refer Note - 24c)
Raw Materials and Packing Materials (including Stock-in-Transit of Rs.120.23 crore; Previous year Rs.103.49 crore) 1058.84 830.72
Work-in-Process (including Stock-in-Transit of Rs.8.39 crore; Previous year Rs.8.75 crore) 563.52 411.13
Finished Goods (including Stock-in-Transit of Rs.116.55 crore; Previous year Rs.90.13 crore) 513.84 446.81
Traded Goods 207.17 135.84
2343.37 1824.50

 

Rs. in crore
2013 2012
18 Trade Receivables
Unsecured, Considered Good
Outstanding over Six Months 12.16 86.76
Others 1633.06 1432.55
Unsecured, Considered Doubtful
Outstanding over Six Months 75.44 138.66
Less: Allowance for Doubtful Debts 75.44 138.66
- -
1645.22 1519.31

 

Rs. in crore
2013 2012
19 Cash and Bank Balances
Cash and Cash Equivalents
Balances with Banks 38.31 38.61
Fixed Deposits as Margin Money (maturity less than 3 months) 0.03 -
Cash on Hand 1.27 1.62
Other Bank Balances
Balance earmarked for Unclaimed Dividend 15.46 13.59
Fixed Deposits as Margin Money (maturity less than 12 months) - 1.24
Fixed Deposits (maturity less than 12 months) 50.00 -
105.07 55.06

 

Rs. in crore
2013 2012
20 Short Term Loans and Advances
Unsecured (Considered good, unless otherwise stated)
Inter Corporate Loans
Considered Good (includes amounts referred to in Note 39) 152.03 258.61
Considered Doubtful 2.25 2.25
154.28 260.86
Less: Allowance for Doubtful Loans 2.25 2.25
152.03 258.61
Interest Accrued
Considered Good 2.17 0.10
Considered Doubtful 0.46 0.46
2.63 0.56
Less: Allowance for Doubtful Interest 0.46 0.46
2.17 0.10
Share Application Money - Pending Allotment - 41.64
Balances with Statutory/Revenue Authorities 317.96 301.90
Capital Subsidy Receivable 61.26 61.26
Others*
Considered Good 119.37 101.97
Considered Doubtful 4.59 -
123.95 101.97
Less: Allowance for Doubtful Advances 4.59 -
119.37 101.97
652.79 765.48

*Includes advances to sundry creditors, employee loans and prepaid expenses

Rs. in crore
2013 2012
21 Other Current Assets
Export Incentives Receivable 2.28 53.98
2.28 53.98

 

Rs. in crore
2013 2012
22 Revenue from Operations
Sale of Products 8107.53 6904.91
Rendering of Services 27.03 27.01
Other Operating Revenue
Export Incentives 63.21 80.95
Technical Know-how/Fees 65.93 31.03
Scrap Sales 30.88 25.54
Others - 5.29
8294.58 7074.73

Details of Products sold

Rs. in crore

2013 2012
Manufactured Goods
Bulk Drugs 756.92 778.21
Tablets and Capsules 4499.91 3644.31
Liquids 286.36 366.33
Creams 108.73 82.46
Aerosols/Inhalation Devices 736.28 584.83
Injections/Sterile Solutions 653.46 580.26
Others 49.03 36.83
7090.69 6073.23
Traded Goods
Bulk Drugs 121.80 119.59
Tablets and Capsules 433.96 337.00
Liquids 176.15 146.17
Creams 45.46 51.58
Aerosols/Inhalation Devices 49.66 32.65
Injections/Sterile Solutions 135.00 100.03
Others 54.81 44.66
1016.84 831.68
8107.53 6904.91

• Earnings in Foreign Exchange

Rs. in crore
2013 2012
F.O.B. Value of Exports 4426.16 3692.03
Technical Know-how/Fees 60.43 29.55
Others 8.13 6.59
4494.72 3728.17

 

Rs. in crore
2013 2012
23 Other Income
Interest 5.75 8.97
Dividend 90.66 36.29
Net Gain on Sale of Current Investment 3.21 0.56
Insurance Claims 2.37 1.16
Rent 2.80 2.83
Sundry Balances Written Back 1.44 0.45
Miscellaneous Receipts 36.20 31.36
Net Gain on Foreign Currency Transaction and Translation 86.70 66.68
229.13 148.30

Rs. in crore

2013 2012
24a Cost of Materials Consumed
Consumption of Raw and Packing Materials
Opening Stock 830.72 878.14
Add: Purchases 2874.95 2253.43
3705.67 3131.57
Less: Closing Stock 1058.84 830.72
2646.83 2300.85
2646.83 2300.85

• Break-up of Materials Consumed

Rs. in crore
Class of Goods 2013 2012
Bulk Drugs 953.33 884.16
Solvents 134.90 109.03
Capsules 33.47 30.26
Packing Material 663.69 572.55
Others 977.36 796.30
2762.75 2392.30
Less: Recoverable Duties (included in the above cost) 115.92 91.45
Total Consumption (Net of Cenvat) 2646.83 2300.85

• Consumption of Raw and Packing Materials/Spares and Components

Rs. in crore

Class of Goods 2013 2012
Value % Value %
Purchased Indigenously 1665.58 60 1466.77 61
Imported 1097.17 40 925.53 39
2762.75 100 2392.30 100
Less: Recoverable Duties (included in the above cost) 115.92 91.45
Total Consumption (Net of Cenvat) 2646.83 2300.85

 

Rs. in crore
2013 2012
24b Purchase of Traded Goods
Bulk Drugs 99.96 81.45
Tablets and Capsules 305.37 211.61
Liquids 112.02 107.63
Creams 29.08 31.79
Aerosols/Inhalation Devices 37.26 29.45
Injections/Sterile Solutions 89.68 64.42
Others 33.52 29.20
706.89 555.55

 

Rs. in crore
2013 2012
24c Changes in Inventories of Finished Goods, Work-in-Process and Traded Goods
Opening Stock
Work-in-Process 411.13 410.74
Finished Goods 446.81 441.12
Traded Goods 135.84 153.16
993.78 1005.02
Less: Closing Stock
Work-in-Process 563.52 411.13
Finished Goods 513.84 446.81
Traded Goods 207.17 135.84
1284.53 993.78
(290.75) 11.24

• Break-up of Inventory

Rs. in crore
2013 2012
Work-in-Process
Formulations 130.84 93.78
Bulk Drugs 432.68 317.35
563.52 411.13
Finished Goods
Bulk Drugs 21.22 9.33
Tablets and Capsules 285.48 272.92
Liquids 29.46 33.53
Creams 18.88 12.80
Aerosols/Inhalation Devices 61.77 40.67
Injections/Sterile Solutions 89.43 73.68
Others 7.60 3.88
513.84 446.81
Traded Goods
Bulk Drugs 30.96 9.35
Tablets and Capsules 91.77 55.06
Liquids 28.39 27.53
Creams 6.89 6.76
Aerosols/Inhalation Devices 5.64 5.85
Injections/Sterile Solutions 31.78 20.00
Others 11.74 11.29
207.17 135.84

 

Rs. in crore
2013 2012
25 Employee Benefits Expense
Salaries and Wages 853.35 639.33
Contribution to Provident and Other Funds 44.40 34.38
Staff Gratuity 12.16 15.62
Staff Welfare Expenses 59.37 38.88
969.28 728.21

• Employee Benefits

i. Short Term Employee Benefits

All employee Benefits payable wholly within twelve months of rendering the service are classified as short term employee Benefits. Benefits such as salaries, wages, short term compensated absences, etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

ii. Long Term Employee Benefits

The disclosures as per the revised AS-15 are as under:

a. Brief description of the plans

Defined Contribution Plan

The Company’s Defined contribution plan is Employees’ Pension Scheme (under the provisions of Employees’ Provident Funds and Miscellaneous Provisions Act, 1952) since the Company has no further obligation beyond making the contributions.

Defined Benefit and other Long Term Benefit Plans

The Company has two schemes for long term Benefits namely, Provident Fund and Gratuity:

• The Provident Fund plan, a funded scheme is operated by the Company’s Provident Fund Trust, which is recognised by the Income Tax authorities and administered through trustees/appropriate authorities. The Guidance Note on implementing the revised AS-15, “Employee Benefits (revised 2005)” issued by Accounting Standards Board (ASB) states Benefit involving employer established provident funds, which require interest shortfalls to be recompensed, are to be considered as Defined Benefit plans. Accordingly, the Company has considered the provident fund as Defined Benefit plan.

• The Company provides for gratuity, a Defined Benefit plan based on actuarial valuation as of the Balance Sheet date, based upon which, the Company contributes all the ascertained liabilities to the Insurer Managed Funds.

The employees of the Company are also entitled to leave encashment. The provision is made based on actuarial valuation for leave encashment at the year end.

b. Charge to the Statement of Profit and Loss

i. Based on contribution

Rs. in crore
2013 2012
Employees’ Pension Scheme 12.59 11.49
Provident Fund 30.12 20.98
42.71 32.47

ii. Charge towards leave encashment to the Statement of Profit and Loss amounts to Rs.18.92 crore (Previous year Rs.10.16 crore).

c. Disclosures for Defined Benefit plans based on actuarial report as on 31st March 2013

Rs. in crore

2013 2012
Gratuity (Funded Plan) Gratuity (Funded Plan)
i. Change in Defined Benefit obligation
Opening Defined Benefit obligation 46.52 33.23
Interest cost 3.95 2.74
Current service cost 6.68 5.20
Actuarial (gain)/loss on obligations 5.23 10.06
Benefits paid (2.99) (4.71)
Liability at the end of the year 59.39 46.52
ii. Change in fair value of assets
Opening fair value of plan assets 29.03 26.36
Expected return on plan assets 2.47 2.17
Actuarial gain/(loss) 1.23 0.21
Contributions by employer 4.00 5.00
Transfer of plan assets - -
Benefits paid (2.99) (4.71)
Closing fair value of plan assets 33.74 29.03
iii. Amount recognised in Balance Sheet
Present value of obligations as at year end (59.39) (46.52)
Fair value of plan assets as at year end 33.74 29.03
Net asset/(liability) recognised (25.65) (17.49)
iv. Expenses recognised in Statement of Profit and Loss
Current service cost 6.68 5.20
Interest on Defined Benefit obligation 3.95 2.74
Expected return on plan assets (2.47) (2.17)
Net actuarial (gain)/loss recognised in the current year 4.00 9.85
Transfer of plan assets - -
Total expense recognised in Statement of Profit and Loss 12.16 15.62
v. Actual return on plan assets
Expected return on plan assets 2.47 2.17
Actuarial gain/(loss) on plan assets 1.23 0.21
Actual return on plan assets 3.70 2.38
vi. Asset information
Insurer managed funds 100% 100%
vii. Experience adjustments
Defined Benefit obligation 59.39 46.52
Plan assets (33.74) (29.03)
Deficit/(Surplus) 25.65 17.49
Experience adjustment on plan liabilities - (gain)/loss 0.20 11.22
Experience adjustment on plan assets - (gain)/loss (1.23) (0.21)
viii. Expected employer's contribution for the next year 32.81 6.92

The actuarial calculations used to estimate commitments and expenses in respect of gratuity and compensated absences are based on the following assumptions which if changed, would affect the commitment's size, funding requirements and expense:

Principal Actuarial assumptions used 2013 2012
Discounted rate (per annum) 8.25% 8.50%
Expected rate of return on plan assets (per annum) 8.25% 8.50%
Expected rate of future salary increase 4.00% 4.00%

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in employment market.

• Amounts for the current and previous four periods are as follows:

Rs. in crore

2013 2012 2011 2010 2009
Gratuity
Defined Benefit obligation 59.39 46.52 33.23 26.14 20.58
Plan assets 33.74 29.03 26.36 21.84 15.91
(Surplus)/Deficit 25.65 17.49 6.87 4.30 4.67
Experience adjustment on plan liabilities - (gain)/loss 0.20 11.22 9.36 2.61 (2.46)
Experience adjustment on plan assets - (gain)/loss (1.23) (0.21) 0.56 (0.57) 0.17

Rs. in crore

2013 2012
26 Finance Costs
Interest Expense 27.04 12.13
Applicable Loss on Foreign Currency Transaction and Translation 6.34 14.50
33.38 26.63

 

Rs. in crore
2013 2012
27 Depreciation and Amortisation Expense
Depreciation on Tangible Assets 303.03 282.07
303.03 282.07

 

Rs. in crore
2013 2012
28 Other Expenses
Manufacturing Expenses 234.31 218.08
Stores and Spares 86.43 91.57
Power and Fuel 211.17 211.32
Repairs and Maintenance
Machinery 75.27 63.80
Buildings 102.74 111.19
Travelling Expenses 181.70 132.56
Sales Promotion Expenses 177.74 139.18
Commission on Sales 209.58 275.16
Rates and Taxes 24.70 13.94
Freight and Forwarding 75.17 50.53
Conveyance and Vehicle Expenses 22.93 19.93
Rent 30.59 20.47
Insurance 12.28 9.65
Remuneration to Auditors
Audit Fees 0.58 0.58
Tax Audit Fees 0.05 -
Certification Fees 0.17 0.15
Professional Fees 220.35 93.63
Telephone, Postage and Telegram 26.26 24.75
Directors’ Sitting Fees 0.07 0.06
Contractual Services 65.58 50.85
Donations 0.62 5.67
Bad debts, provision for doubtful debts and advances (Net) 54.75 100.02
Loss on sale/discard of fixed assets (Net) 15.97 36.85
Printing and Stationery 51.61 43.10
Research - Clinical Trials, Samples and Grants 43.21 36.30
Miscellaneous Expenses 127.20 50.45
2051.03 1799.79

 

Rs. in crore
2013 2012
29 Research and Development Expenditure
The amount of expenditure as shown in the respective heads of account is as under:
Capital Expenditure 61.32 17.40
Revenue Expenditure charged to the Statement of Profit and Loss
Materials Consumed 22.01 44.02
Employee Benefits Expense 116.53 83.42
Power and Fuel 20.94 23.14
Repairs and Maintenance 22.95 21.30
Manufacturing Expenses 18.89 22.32
Professional Fees 50.43 29.60
Depreciation 35.25 20.99
Research - Clinical Trials, Samples and Grants 31.33 28.07
Printing and Stationery 1.94 4.67
Travelling Expenses 5.49 4.28
Other Research and Development Expenses 38.06 24.62
363.82 306.43
425.14 323.83
Amount eligible for weighted deduction under section 35(2AB) of the Income Tax Act, 1961
Capital Expenditure 45.90 17.22
Revenue Expenditure
Employee Benefits Expense 68.11 51.13
Raw Materials and Consumables 22.01 20.38
Research - Clinical Trials, Samples and Grants 31.33 27.80
Other Expenditure 77.33 56.08
198.78 155.39
244.68 172.61

 

Rs. in crore
2013 2012
30 Net difference in foreign exchange credited to the Statement of Profit and Loss 80.36 52.18
80.36 52.18

 

Rs. in crore
2013 2012
31 Value of Imports on C.I.F. basis
Raw Materials and Packing Materials 1206.78 954.34
Components and Spare Parts 26.23 32.42
Capital Goods 83.21 146.50
1316.22 1133.26

 

Rs. in crore
2013 2012
32 Expenditure in Foreign Currency
Legal and Professional charges 86.30 35.24
Commission 101.02 128.52
Other Matters – Travelling, Registration Fees, etc. 87.02 32.18
274.34 195.94

33 Lease Accounting

Where the Company is a Lessee

The Company has obtained certain premises for its business operations (including furniture and fixtures, therein as applicable) under cancellable operating lease or leave and license agreements ranging from 11 months to 5 years or longer which are subject to renewal at mutual consent. The cancellable lease arrangements can be terminated by either party after giving due notice. Lease payments are recognised in the Statement of Profit and Loss under “Rent” in Note 28.

Where the Company is a Lessor

The Company has given certain premises under operating lease or leave and license agreement. The Company retains substantially all risks and Benefits of ownership of the leased asset and hence classified as operating lease.3 Lease income on such operating lease is recognised in the Statement of Profit and Loss under “Rent’’ in Note 23.

34 Foreign Exchange Derivatives and Exposures outstanding at the year end

Rs. in crore
Nature of Instrument Currency Cross Currency 2013 2012
Forward contracts – Sold USD INR 1152.42 1105.21
Forward contracts – Bought USD INR 955.77 -
Unhedged foreign exchange exposures
Receivables 385.17 401.69
Payables 389.54 373.11

Note: The Company uses forward contracts/derivatives for hedging purposes and/or reducing interest costs.

35 Segment Information

In accordance with AS-17 “Segment Reporting”, segment information has been given in the Consolidated Financial Statements of Cipla Limited., and therefore, no separate disclosure on segment information is given in these financial statements.

Rs. in crore
2013 2012
36 Contingent Liabilities and Commitments (to the extent not provided for)
Contingent Liabilities
Claims against the Company not acknowledged as debt 6.51 1.88
Guarantees (refer Note) 2750.66 100.51
Letters of Credit 11.59 20.75
Refund of Technical Know-how/Fees on account of non compliance of certain obligations as per respective agreements 2.54 27.19
Income Tax 191.78 179.73
Excise Duty/Service Tax 29.85 29.55
Sales Tax 3.99 3.64
2996.92 363.25
Commitments
Estimated Amount of Contracts unexecuted on Capital Account 171.89 291.61
Other Commitments 824.85 665.21
996.74 956.82
3993.66 1320.07

Note: On 15th May 2013 the shareholders of Cipla Medpro South Africa Ltd. (“Medpro”), a company incorporated in the Republic of South Africa and listed on JSE Ltd., have approved the Scheme of Arrangement (“Scheme”) for Cipla Limited (“the Company”) to acquire 100% of the ordinary share capital of Medpro at a price of ZAR 10 per share, and to settle all outstanding options to acquire Medpro shares. Based on Medpro’s current shares and share options outstanding, the total consideration payable would be approximately ZAR 4518 million (approximately Rs.2666 crore). Medpro is a distributor of the Company’s products in South Africa and certain neighbouring countries. Guarantees disclosed under contingent liabilities include counter indemnity/guarantees furnished by the Company in an aggregate amount of ZAR 4520 million (approximately Rs.2667 crore) in respect of bank guarantees which have been issued in connection with the Scheme by two South African banks in favour of the Takeover Regulation Panel, South Africa and which are valid until 10th September 2013. Implementation of the Scheme is still subject to regulatory and other approvals and conditions.

37 The Government of India has served demand notices in March 1995 and May 1995 on the Company in respect of six bulk drugs, claiming that an amount of Rs.5.46 crore along with interest due thereon is payable into the DPEA under the Drugs (Prices Control) Order, 1979 on account of alleged unintended Benefit enjoyed by the Company. The Company has filed its replies to the notices and has contended that no amount is payable into the DPEA under the Drugs (Prices Control) Order, 1979.

38 In 2003, the Company received notice of demand from the National Pharmaceutical Pricing Authority, Government of India on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order. This was contested before the jurisdictional High Courts in Mumbai, Karnataka and Allahabad wherein it was held in favour of the Company. The orders of Hon’ble High Court of Allahabad and Bombay were challenged before the Hon’ble Supreme Court of India by the Government. Although in the challenge to the decision of the Hon’ble Bombay High Court, the Hon’ble Supreme Court of India restored the matter to the Hon’ble Bombay High Court in August 2003 for interpreting the Drug Policy on the basis of directions and principles laid down by them and the same was pending, in the challenge to the Hon’ble High Court of Allahabad’s order, in Feb 2013, the Hon’ble Supreme Court of India transferred the Bombay High Court petition also before itself for a final hearing on both the matters. In an earlier order, the Hon’ble Supreme Court has already restrained the Government from taking any coercive action against the Company. The Company has been legally advised that on the basis of these orders there is no probability of demand crystallising. Hence no provision is considered necessary in respect of notice of demand aggregating to Rs.1654.92 crore (inclusive of principal amount for the period July 1995 to April 2009 and interest upto January 2012).

39 Loans and Advances in the nature of Loans given to Subsidiaries and Associates

Rs. in crore
Sr. No. Name of the Company Nature As at 31st March 2013 Maximum balance during the year As at 31st March 2012 Maximum balance during the year
1. Goldencross Pharma Pvt. Ltd. Subsidiary 26.75 30.00 15.00 30.50
2. Meditab Specialities Pvt. Ltd. Subsidiary 124.48 242.81 242.81 248.31

Notes: i. The above loans are repayable on demand.

ii. Loan given to Meditab Specialities Pvt. Ltd. is interest-free.

iii. Loans given to employees as per the Company’s policy are not considered.

No. of shares
Goldencross Pharma Pvt. Ltd. has made the following investments in its subsidiary
a Four M Propack Pvt. Ltd. 58,000
Meditab Specialities Pvt. Ltd. has made the following investments in its subsidiaries
a. Meditab Holdings Ltd. 2,96,20,100
b.Medispray Laboratories Pvt. Ltd. 51,020
c.Sitec Labs Pvt. Ltd. 10,000
Meditab Holdings Ltd. has made the following investments in its subsidiaries
a. Meditab Pharmaceuticals South Africa (Pty) Ltd. 70,100
b.Meditab Specialities New Zealand Ltd. 30,100

40 Related Party Disclosures

i. The related parties where control exists or where significant influence exists and with whom transactions have taken place:

a. Subsidiary Companies including step-down subsidiaries, associate companies and joint venture:

Sr. No. Name of the Company

Subsidiaries (held directly)

1. Cipla FZE

2. Goldencross Pharma Pvt. Ltd.

3. Cipla (Mauritius) Ltd.

4. Meditab Specialities Pvt. Ltd.

Subsidiaries (held indirectly)

5. Cipla (UK) Ltd.

6. Cipla Australia Pty Ltd. (formerly Cipla-Oz Pty Ltd.)

7. Cipla (EU) Ltd. (formerly STD Chemicals Ltd.)

8. Medispray Laboratories Pvt. Ltd.

9. Sitec Labs Pvt. Ltd.

10. Four M Propack Pvt. Ltd.

11. Meditab Holdings Ltd.

12. Meditab Pharmaceuticals South Africa (Pty) Ltd.

13. Meditab Specialities New Zealand Ltd.

14. Cipla ila Ticaret Anonim Sirketi

15. Cipla USA Inc. (w.e.f. 12th September 2012)

16. Cipla Kenya Ltd. (w.e.f. 8th October 2012)

17. Cipla Malaysia Sdn. Bhd. (w.e.f. 20th March 2013)

Associates

18. Quality Chemical Industries Ltd.

19. Stempeutics Research Pvt. Ltd.

20. Biomab Holding Ltd.

21. Mabpharm Pvt. Ltd. (w.e.f. 29th October 2012)

Joint Venture

22. Aspen-Cipla Australia Pty Ltd.

b. Key Management Personnel:

1. Dr. Y.K. Hamied – Chairman and Managing Director

2. Mr. M.K. Hamied – Joint Managing Director

3. Mr. S. Radhakrishnan – Whole-time Director

4. Mr. Subhanu Saxena – Chief Executive Officer (w.e.f. 1st February 2013)

c. Relatives of Key Management Personnel:

1. Mr. Kamil Hamied

2. Mrs. Samina Vaziralli

d. Entities over which Key Management Personnel are able to exercise significant influence:

1. Okasa Pvt. Ltd.

2. Okasa Pharma Pvt. Ltd.

3. Cipla Foundation

ii. Transactions during the year with related parties:

Rs. in crore

Particulars Subsidiaries Associates/Joint Venture Key Management Personnel including transactions with relatives of Key Management Personnel Entities over which Key Management Personnel exercise significant influence Total
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Interest received 1.79 1.97 - - - - - - 1.79 1.97
Loans repaid 192.60 59.50 - - - - - - 192.60 59.50
Investment in Equity 0.80 0.001 51.74 114.78 - - - - 52.54 114.78
Loans given 86.02 112.84 - - - - - - 86.02 112.84
Remuneration - - - - 29.60 16.13 - - 29.60 16.13
Purchase of Goods 244.99 189.25 - - - - 81.37 58.11 326.36 247.36
Processing charges paid 28.18 33.86 - - - - 23.44 21.04 51.62 54.90
Testing and Analysis charges paid 44.22 46.95 - - - - - - 44.22 46.95
Research Grant paid - - 1.41 10.53 - - - - 1.41 10.53
Freight charges paid 0.72 1.25 - - - - - - 0.72 1.25
Sale of Goods 26.22 24.07 65.02 158.86 - - 24.40 15.41 115.64 198.34
Sale of Fixed Assets 0.002 0.01 0.64 - - - 0.003 - 0.64 0.01
Purchase of Fixed Assets 0.12 - - - - - - - 0.12 -
Advances paid against Services - - - 1.39 - - - - - 1.39
Processing charges received 3.27 1.86 - - - - 1.43 0.49 4.70 2.35
Service charges paid 41.35 6.32 - - - - - - 41.35 6.32
Service charges received - - 1.12 - - - - - 1.12 -
Donations given - - - - - - 0.36 5.31 0.36 5.31
Rent paid 0.01 0.01 - - - - 0.28 0.28 0.29 0.29
Rent received - - 1.47 - 0.004 0.004 - - 1.47 0.004
Reimbursement of operating/ other expenses 1.03 - - - - - 1.14 - 2.17 -
Reimbursement received of operating/other expenses 0.02 - - - - - 0.07 - 0.09 -
Balances at end of the year Outstanding Payables 27.75 17.76 0.02 - - - 14.92 17.07 42.69 34.83
Outstanding Receivables 212.27 314.67 8.25 48.08 - - 21.82 22.87 242.34 385.62

1 Rs.102.26

2 Rs.11250.00

3 Rs.22623.00

4 Rs.20040.00

Disclosures in respect of material related party transactions during the year:

Rs. in crore
2013 2012
A. Interest received
Goldencross Pharma Pvt. Ltd. 1.79 1.97
1.79 1.97
B. Loans repaid
Goldencross Pharma Pvt. Ltd. 24.75 30.00
Meditab Specialities Pvt. Ltd. 167.85 29.50
192.60 59.50
C. Investment in Equity
Cipla (Mauritius) Ltd. 0.80 0.001
Aspen-Cipla Australia Pty Ltd. - 0.002
Biomab Holding Ltd. - 114.78
Mabpharm Pvt. Ltd. 51.74 -
52.54 114.78
D. Loans given
Goldencross Pharma Pvt. Ltd. 36.50 30.00
Meditab Specialities Pvt. Ltd. 49.52 82.84
86.02 112.84
E. Remuneration
Dr. Y.K. Hamied 13.55 6.65
Mr. M.K. Hamied 5.44 5.02
Mr. S. Radhakrishnan 4.18 4.04
Mr. Subhanu Saxena 4.24 -
Mr. Kamil Hamied 1.50 0.22
Mrs. Samina Vaziralli 0.69 0.20
29.60 16.13
F. Purchase of Goods
Goldencross Pharma Pvt. Ltd. 211.84 167.68
Medispray Laboratories Pvt. Ltd. 16.68 8.64
Meditab Specialities Pvt. Ltd. 5.28 3.27
Four M Propack Pvt. Ltd. 11.19 9.66
Okasa Pharma Pvt. Ltd. 47.05 25.30
Okasa Pvt. Ltd. 34.32 32.81
326.36 247.36
G. Processing charges paid
Goldencross Pharma Pvt. Ltd. 3.73 2.94
Medispray Laboratories Pvt. Ltd. 4.88 5.34
Meditab Specialities Pvt. Ltd. 19.57 25.58
Okasa Pharma Pvt. Ltd. 8.93 8.51
Okasa Pvt. Ltd. 14.51 12.53
51.62 54.90

 

Rs. in crore
2013 2012
H. Testing and Analysis charges paid
Sitec Labs Pvt. Ltd. 44.22 46.95
44.22 46.95
I. Research Grants paid
Stempeutics Research Pvt. Ltd. 1.41 10.53
1.41 10.53
J. Freight charges paid
Four M Propack Pvt. Ltd. 0.72 0.80
Meditab Specialities Pvt. Ltd. - 0.45
0.72 1.25
K. Sale of Goods
Goldencross Pharma Pvt. Ltd. 1.69 2.33
Meditab Specialities Pvt. Ltd. 5.58 4.82
Four M Propack Pvt. Ltd. 0.003 0.01
Medispray Laboratories Pvt. Ltd. 18.94 16.91
Sitec Labs Pvt. Ltd. 0.004 -
Okasa Pharma Pvt. Ltd. 17.92 10.04
Okasa Pvt. Ltd. 6.48 5.37
Quality Chemical Industries Ltd. 65.03 158.86
115.64 198.34
L. Sale of Fixed Assets
Meditab Specialities Pvt. Ltd. - 0.01
Goldencross Pharma Pvt. Ltd. 0.005 -
Okasa Pharma Pvt. Ltd. 0.006 -
Mabpharm Pvt. Ltd. 0.64 -
0.64 0.01
M. Purchase of Fixed Assets
Meditab Specialities Pvt. Ltd. 0.12 -
0.12 -
N. Advances paid against services
Stempeutics Research Pvt. Ltd. - 1.39
- 1.39
O. Processing charges received
Meditab Specialities Pvt. Ltd. 0.85 0.31
Medispray Laboratories Pvt. Ltd. 2.42 1.55
Okasa Pharma Pvt. Ltd. 0.24 0.30
Okasa Pvt. Ltd. 1.19 0.19
4.70 2.35

 

Rs. in crore
2013 2012
P. Service charges paid
Cipla (EU) Ltd. 11.90 4.06
Cipla (UK) Ltd. 24.78 1.66
Cipla Australia Pty Ltd. 4.17 0.60
Cipla Ila Ticaret Anonim Sirketi 0.50 -
41.35 6.32
Q. Service charges received
Mabpharm Pvt. Ltd. 1.12 -
1.12 -
R. Donations given
Cipla Public Charitable Trust - 0.31
Cipla Foundation 0.36 5.00
0.36 5.31
S. Rent paid
Okasa Pvt. Ltd. 0.28 0.28
Medispray Laboratories Pvt. Ltd. 0.01 0.01
0.29 0.29
T. Rent received
Dr. Y.K. Hamied 0.007 0.007
Mabpharm Pvt. Ltd. 1.47 -
1.47 0.007
U. Reimbursement of Operating/Other Expenses
Goldencross Pharma Pvt. Ltd. 0.23 -
Meditab Specialities Pvt. Ltd. 0.80 -
Okasa Pharma Pvt. Ltd. 1.01 -
Okasa Pvt. Ltd. 0.13 -
2.17 -
V. Reimbursement received of Operating/Other Expenses
Goldencross Pharma Pvt. Ltd. 0.01 -
Meditab Specialities Pvt. Ltd. 0.01 -
Okasa Pharma Pvt. Ltd. 0.07 -
Okasa Pvt. Ltd. 0.008 -
0.09 -
W. Outstanding Payables
Goldencross Pharma Pvt. Ltd. 7.15 3.61
Medispray Laboratories Pvt. Ltd. 1.95 1.15
Four M Propack Pvt. Ltd. 0.89 2.42
Sitec Labs Pvt. Ltd. 13.34 8.69
Okasa Pharma Pvt. Ltd. 9.71 10.40
Okasa Pvt. Ltd. 5.21 6.68
Cipla (EU) Ltd. 0.54 1.46
Cipla (UK) Ltd. 3.31 0.42
Cipla Australia Pty Ltd. 0.50 -
Cipla ila Ticaret Anonim Sirketi 0.07 -
Stempeutics Research Pvt. Ltd. 0.02 -
42.69 34.83

 

Rs. in crore
2013 2012
X. Outstanding Receivables
Goldencross Pharma Pvt. Ltd. 27.54 15.00
Meditab Specialities Pvt. Ltd. 178.68 296.81
Medispray Laboratories Pvt. Ltd. 6.05 2.86
Sitec Labs Pvt. Ltd. 0.009 -
Stempeutics Research Pvt. Ltd. - 1.39
Okasa Pharma Pvt. Ltd. 6.57 6.32
Okasa Pvt. Ltd. 15.25 16.55
Mabpharm Pvt. Ltd. 4.86 -
Quality Chemical Industries Ltd. 3.39 46.69
242.34 385.62

1 Rs.50.29

2 Rs.51.97

3 Rs.489.13

4 Rs.36111.00

5 Rs.11250.00

6 Rs.22623.00

7 Rs.20040.00

8 Rs.8000.00

9 Rs.26340.00

41 Basic and Diluted Earnings per share has been computed as under

2013 2012
Profit for the Year (Rs. in crore) 1507.11 1123.96
Weighted Average No. of Shares Outstanding 80,29,21,357 80,29,21,357
Basic and Diluted Earnings per share Rs.18.77 Rs.14.00
Face value per share Rs.2.00 Rs.2.00

 

As per our report of even date M.K. Hamied S. Radhakrishnan
Managing Director Whole-time Director
For V. Sankar Aiyar & Co., For R.G.N. Price & Co., Subhanu Saxena V.S. Mani
Chartered Accountants Chartered Accountants Chief Executive Officer Chief Financial Officer
Firm Reg. No. 109208W Firm Reg. No. 002785S
V. Mohan R. Rangarajan H.R. Manchanda Mital Sanghvi
Partner Partner Ramesh Shroff Company Secretary
Membership No. 17748 Membership No. 41883 M.R. Raghavan
Pankaj Patel
Ranjan Pai
Mumbai, 29th May 2013 Directors Mumbai, 29th May 2013
   
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