Seventy-Sixth Annual Report 2011-2012

As in the past, Cipla has made a special effort to produce this report at a low cost, without compromising its quality or contents leading to a saving of 26 lakhs. This amount has been donated to Cipla Foundation.

CONTENTS
Notice ........................................................................................................................................................................................................ Directors’ Report .................................................................................................................................................................................... 2 7

Annexure to the Directors’ Report .................................................................................................................................................. 15 Report on Corporate Governance ................................................................................................................................................... 18 Auditors’ Report ..................................................................................................................................................................................... 26 Annexure to the Auditors’ Report .................................................................................................................................................... 27 Balance Sheet ......................................................................................................................................................................................... 30 Statement of Profit and Loss ............................................................................................................................................................. 31 Notes to the Accounts ......................................................................................................................................................................... 32 Cash Flow Statement ........................................................................................................................................................................... 62 Information on Subsidiaries .............................................................................................................................................................. 64 Auditors’ Report (Consolidated) ....................................................................................................................................................... 65 Balance Sheet (Consolidated) ........................................................................................................................................................... 66 Statement of Profit and Loss (Consolidated) ............................................................................................................................... 67 Notes to the Accounts (Consolidated) ........................................................................................................................................... 68 Cash Flow Statement (Consolidated) ............................................................................................................................................. 97 Attendance Slip/Form of Proxy ...................................................................................................................................... End of Report Ten-Year Highlights ......................................................................................................................................................Inside Back Cover

2

Cipla Limited
Founder Dr. K.A. Hamied (1898-1972) Bankers Bank of Baroda Canara Bank Corporation Bank Chairman & Managing Director Dr. Y.K. Hamied Indian Overseas Bank Standard Chartered Bank The Hongkong & Shanghai Banking Corporation Limited Union Bank of India

Joint Managing Director Mr. M.K. Hamied

Whole-time Director Mr. S. Radhakrishnan

Auditors V. Sankar Aiyar & Co. R.G.N. Price & Co.

Non-Executive Directors Dr. H.R. Manchanda Mr. Ramesh Shroff Mr. V.C. Kotwal Mr. M.R. Raghavan Mr. Pankaj Patel Dr. Ranjan Pai Website www.cipla.com Registered Office Mumbai Central, Mumbai 400 008

1

terms and conditions as the Board of Directors may deem fit. 260 and other applicable provisions of the Companies Act. V.m.00 p. 2.C. 5. 17th August 2012 at 3.R.C. No. be and are hereby re-appointed as Joint Statutory Auditors of the Company to hold the office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting upon such remuneration. 4. V. 002785S). Price & Co. if thought fit. taxes and out of pocket expenses. Dinshaw Wacha Road. K. as an Ordinary Resolution: “RESOLVED THAT M/s.N.” SPECIAL BUSINESS: 6. To consider and. 1956 in consultation with the Auditors of the Company to examine and audit the accounts for the financial year ending on 31st March 2013 upon such remuneration. 3. 1956 read with those under Article 129 of the Company’s Articles of Association. No.NOTICE NOTICE is hereby given that the SEVENTY-SIXTH ANNUAL GENERAL MEETING of CIPLA LIMITED will be held at Rama Watumull Auditorium. To declare Dividend for the year ended 31st March 2012. to transact the following business: ORDINARY BUSINESS: 1. to pass.. if thought fit. Chartered Accountants (Firm Reg. the Statement of Profit and Loss for the year ended on that date together with the reports of the Board of Directors and Auditors thereon. the following resolution. on Friday. Kotwal who retires by rotation and being eligible. an Additional Director holding the office up to the date of this Annual General Meeting be and is hereby appointed as a Director of the Company. R.” By Order of the Board of Directors Mumbai. Churchgate. Chartered Accountants (Firm Reg. H. Dr.. College. To consider and. RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to appoint Auditors for the Company’s branch office(s) (whether now or as may be established) in terms of section 228 of the Companies Act. Mumbai-400 020. To appoint a Director in place of Mr. Manchanda who retires by rotation and being eligible. Ranjan Pai. Sankar Aiyar & Co. together with M/s. To appoint a Director in place of Dr. with or without modifications. as may be fixed by the Board of Directors of the Company in mutual consultation with the Auditors.G. with or without modifications. liable to retire by rotation. To consider and adopt the audited Balance Sheet as at 31st March 2012. the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to the provisions of sections 257. offers himself for re-appointment. to pass. 109208W). 7th June 2012 Mital Sanghvi Company Secretary 2 . offers himself for re-appointment.

7.17-24. if available. the bank account details. in their own interest. the dividend will be payable on the basis of beneficial ownership as per details furnished by National Securities Depository Limited and Central Depository Services (India) Limited. 3. on request will supply blank forms. Securities and Exchange Board of India (SEBI) has made Permanent Account Number (PAN) as the sole identification number for all participants transacting in the securities market. 3rd August 2012 to Friday. regarding bank accounts in which they wish to receive dividend. if sanctioned at the Meeting. The Explanatory Statement pursuant to section 173 of the Companies Act. Tel: (040) 2342 0818 / (040) 4465 5201 Fax: (040) 2342 0814 6.NOTICE contd. Members holding shares in physical form are requested to forward all applications for transfers and all other shares-related correspondence (including intimation for change of address) to the Share Transfer Agents of the Company at the following address: Karvy Computershare Private Limited (Unit: Cipla Limited) Plot No. Hyderabad-500 081. The Register of Members and the Share Transfer Books of the Company will remain closed from Friday. it shall be necessary for the transferee(s) to furnish copy of PAN card to the Company/Share Transfer Agents for registration of such transfer of shares. In respect of shares held in electronic form. The dividend for the year ended 31st March 2012 as recommended by the Board. Members holding shares in dematerialised form must give instructions. Members who hold shares in single name are advised. to be effective. 17th August 2012. 3 . both days inclusive. The Company or the Share Transfer Agents will not act on any direct request from such members for change/deletion in such bank details. will be printed on the dividend warrants. Madhapur. 8. the bank details as furnished by the respective Depositories to the Company will be used for the purpose of distribution of dividend through National Electronic Clearing Service (NECS) as directed by the Stock Exchanges. 5. SEBI has also mandated that for securities market transactions and off market/ private transactions involving transfer of shares in physical form. Members holding shares in the dematerialised form may contact the Depository Participant for recording nomination in respect of their shares. Members may please note that. 2. Members holding shares in dematerialised form may please note that. In the absence of NECS facility. Proxies. to their Depository Participants. to avail of the nomination facility by filling Form 2B in duplicate with the Share Transfer Agents which. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A MEMBER OF THE COMPANY. 1956 is annexed hereunder and forms part of the Notice. will be paid to those members whose names appear in the Company’s Register of Members on Thursday. NOTES: 1. should be deposited at the Registered Office of the Company not later than 48 hours before the commencement of the Meeting. 4. Vittal Rao Nagar. Members who hold shares in physical form can nominate a person in respect of all the shares held by them singly or jointly. 2nd August 2012. irrespective of the amount of such transactions.

unclaimed dividends from the financial year ended 31st March 1996 till 31st March 2004 have been transferred by the Company to IEPF. Members should also note that any sum transferred to IEPF shall stand forfeited and no claim shall lie either against IEPF or the Company.www. Members may note that unclaimed dividend for the financial year ended 31st March 2005 shall become due for transfer to IEPF on 2nd October 2012. 12. To support this green initiative and to receive communications from the Company in electronic mode. 4 . CGO Complex. members who have not registered their e-mail addresses and are holding shares in physical form are requested to contact the Share Transfer Agents of the Company and register their email-id. As required under Clause 49 of the Listing Agreement. Consequent to the amendment of the Companies Act. Such of those members who have not so far claimed their dividend for the subsequent financial years are also advised to claim it from the Share Transfer Agents. Members holding shares in dematerialised form are requested to contact their Depository Participant. will be available on the Company’s website . CBD Belapur. All unclaimed dividends up to the financial year ended 31st March 1995 have been transferred to the General Revenue Account of the Central Government. who have not encashed their dividends for the financial year ended 31st March 2005. during office hours. annual reports. The Ministry of Corporate Affairs (MCA) has taken a “Green Initiative in Corporate Governance” by allowing companies to send documents to their shareholders in electronic mode. Navi Mumbai-400 614. 9. Members may please note that. Maharashtra. Members may please note that notices. dividends that remain unclaimed for a period of seven years shall be transferred to Investor Education and Protection Fund (IEPF).II. 10.cipla. 11. at the Registered Office of the Company. are requested to claim it from the Share Transfer Agents immediately. Members will be entitled to receive the said documents in physical form free of cost at any time upon request. 1956. Members who have not yet exchanged share certificates of `10 face value are requested to surrender their old certificates to the Share Transfer Agents at the address stated above for exchange with new share certificates of `2 face value. SEBI has also made it mandatory for submission of PAN in the following cases viz.. etc. The face value of shares has been sub-divided from `10 to `2 per equity share in the year 2004.com and the same shall also be available for inspection. Accordingly. Members who have not encashed the dividend warrants for the said period(s) are requested to claim the amount from the Registrar of Companies. (i) Deletion of name of the deceased shareholder(s) (ii) Transmission of shares to the legal heir(s) and (iii) Transposition of shares. the relevant information in respect of the Directors seeking re-appointment at the Annual General Meeting is enclosed as Annexure 1.NOTICE contd. Those members. by submitting an application in Form No.

along with the requisite deposit. a diversified group focusing on Education. a notice under section 257 in writing from some of its members proposing his appointment as a Director of the Company. He is a graduate of medicine from the Kasturba Medical College. MEMG Holdings Private Limited. Aarin Capital Partners. 7th June 2012 Mital Sanghvi Company Secretary 5 . He is not related to any other Director of the Company. Dr.6: Ordinary Resolution The Board of Directors had appointed Dr. Manipal Education and Medical Group India Private Limited. Cypress Holdings.025 equity shares of `2 each in the Company. JVMC Corporation Sdn. Ranjan Pai. Except for Dr. Manipal Global Health Services. Healthcare and Research. 1956 SETTING OUT ALL MATERIAL FACTS CONCERNING THE SPECIAL BUSINESS IN THE NOTICE DATED 7TH JUNE 2012 Item No. Ranjan Pai is the Founder and Chief Executive Officer of the Manipal Education and Medical Group (MEMG).NOTICE contd. MEMG International Limited. Manipal Institute of Regenerativ Medicine. As on the date of this Notice he holds 1. He has vast experience in the area of Healthcare. By Order of the Board of Directors Mumbai. Manipal Acunova Limited. he also holds directorships of the following companies: Manipal Health Systems Private Limited. Bhd and Manipal Education Americas LLC. MNI Ventures. he holds membership of Board Committees of the following companies: Manipal Global Education Services Private Limited (Investment Committee. Ranjan Pai as an Additional Director with effect from 14th November 2011 holding office up to the date of ensuing Annual General Meeting. Research and Education. As on the date of this Notice. Manipal Cure and Care Private Limited. Compensation Committee and Nomination Committee) and Manipal Health Enterprises Private Limited (Audit Committee and Compensation Committee). Manipal Research & Management Services International. EXPLANATORY STATEMENT UNDER SECTION 173(2) OF THE COMPANIES ACT. Manipal after which he obtained a Fellowship in Hospital Administration in the United States. Stempeutics Research International. MEMG International India Private Limited. Manipal Health Enterprises Private Limited. SEZ Developers Bangalore Private Limited. Manipal Academic Services International. Sacred Hospitality Company Private Limited. Manipal Healthcare Private Limited. none of the other Directors of the Company are concerned or interested in the resolution. Manipal Global Education Services Private Limited. As on the date of this Notice. The Company has received.

He joined the Board of Directors of the Company in 1983. Mr. Dr. V.C. he holds 2. Nature of expertise in specific functional areas: Civil Law. He does not hold directorship of any other company. He has worked with leading hospitals both in India and abroad. B. He has been a postgraduate examiner for Mumbai University and was a Board Member of The Haffkine Institute. from Mumbai University in the year 1951.NOTICE contd. He is the author of several articles on recent advances in treatment of Haemorrhoidal Surgery and Prolapse of Rectum.00. Manchanda Dr.S. J. As on the date of this Notice. Commercial Law.S. He is a Science & Law graduate from Mumbai University. He is not related to any other Director of the Company.B.000 equity shares of `2 each in the Company.C. Admiralty & Shipping Litigation and Arbitration.C. As on the date of this Notice. from Edinburgh. H. He is not related to any other Director of the Company. He has also completed his F. He is a consultant surgeon at Breach Candy Hospital since 1960. from England and did his second F.R.B.C. ANNEXURE 1 RELEVANT INFORMATION IN RESPECT OF THE DIRECTORS SEEKING RE-APPOINTMENT AT THE ANNUAL GENERAL MEETING AS REQUIRED UNDER CLAUSE 49 OF THE LISTING AGREEMENT IS AS UNDER: A.R. V.S.R. Hospital and Grant Medical College during the period 1960-85. He joined the Board of Directors of the Company in 1989. He does not hold directorship of any other company.R. He is a member of Investors’ Grievance Committee and Share Committee of the Company. he does not hold any equity share in the Company. Manchanda has done his M. Nature of expertise in specific functional areas: General Surgery with special interest in Colorectal. He has been in the legal profession since the year 1961 and has been designated as Senior Advocate since the year 1983. He was on the panel of physicians for USA Visa work at Breach Candy Hospital. 7th June 2012 Mital Sanghvi Company Secretary 6 . Kotwal is a senior advocate of Bombay High Court. He was the Professor of Surgery and Head of Surgery at J. Gastroenterological. Kotwal Mr. H. Neck and Breast Surgery. By Order of the Board of Directors Mumbai.

from uprisings in the Middle East and North Africa to the tsunami in Japan and the debt crisis in Europe.DIRECTORS’ REPORT The Directors take pleasure in presenting the Seventy-Sixth Annual Report of the Company along with the Audited Accounts for the financial year ended 31st March 2012. Increasingly.357 equity shares of `2 each for the year 2011-12 amounting to `160. MANAGEMENT REVIEW: 2011-12 Industry Structure and Development The global economy has witnessed considerable political and economic turmoil during the last year. A sustained depreciation of the Rupee would benefit the Company and the overall pharmaceutical industry due to significant contribution from exports.58 crore. The country’s economic growth has fallen below expectations as it copes with spiralling inflation.21.29. its slowest in the last three years and the Government expects it to grow by 7. any delay in the implementation of sound policies and reforms in various sectors could result in lasting damage to the economy. This has resulted in general uncertainty across the globe impacting all businesses. India’s economy grew by about 6. The Indian Rupee has depreciated by more than 14 percent as compared to the US Dollar during the financial year 2011-12. high interest rates and a widening current account deficit. India is expected to play an increasing role in the global economy as demand from a growing population continues to drive consumption. The Government should also take into consideration that at a time of slow economic growth. 7 . The business community is therefore looking up to the Government for direction. Financial Summary Year ended 31 March 2011 6490 1151 960 1699 2659 st 64 160 37 100 2298 Gross total revenue Profit before tax Profit after tax Surplus brought forward from last balance sheet Profit available for appropriation Appropriations: Interim dividend Dividend Tax on dividend Transfer to general reserve Surplus carried forward Year ended 31 March 2012 7223 1421 1124 2298 3422 st 160 26 125 3111 ` in crore DIVIDEND The Directors recommend a dividend of `2 per share on 80. However. compounded by problems of inflation and uncertainty. governance is going to be a critical challenge and will have a significant impact on the country’s growth rates. This will depend on the way India works towards a resolution. this could also result in a deteriorating fiscal position of the country in the long run.6 percent in 2012-13.9 percent in 2011-12.

In addition. Some significant formulations are mentioned below: Adgain – vital nutritional supplement for hair loss 03 04 05 06 07 08 09 10 11 12 Capnea (caffeine citrate injection and oral solution) – for apnoea of prematurity in infants Caspogin (caspofungin acetate injection) – new antifungal for life-threatening fungal infections Endobloc (ambrisentan tablets) – first once-daily endothelin receptor antagonist for pulmonary arterial hypertension Esomac (esomeprazole tablets) – faster-acting PPI for acid-related disorders Evocort (formoterol and mometasone rotacaps) – new once-daily asthma controller therapy Flavocip (flavoxate hydrochloride tablets) – for relief of spasm of the urinary tract Glatira (glatiramer acetate injection) – new disease-modifying drug for multiple sclerosis HB Set (ferrous ascorbate and folic acid) – nutritional supplement for anaemia Isablac (lactulose and isphaghula husk granules) – combination laxative for chronic constipation Ivabeat (ivabradine tablets) – novel drug for coronary artery disease and chronic heart failure 8 . in particular the US. All this is exerting pressure on the margins across the industry.DIRECTORS’ REPORT contd. operating margin (as a percentage of total revenue) increased by about 2 percent. The Indian pharmaceutical industry maintained its momentum and registered a growth of about 15 percent. according to ORG-IMS statistics. Europe. rapid urbanization. such as a growing middle class population. The global pharmaceutical industry. Total exports increased by 10 percent during the year. This growth can be attributed to prominent factors. reduction in input costs of certain product categories and changes in the product mix. there are the rising costs of production and compliance. Profit after tax of the Company increased by 17 percent to `1124 crore from `960 crore in the previous financial year. The domestic turnover increased by 14 percent. Performance Review The Company’s revenue from operations during the financial year 2011-12 amounted to `7075 crore against `6399 crore in the previous year recording a growth of more than 10 percent. from `2822 crore in the previous financial year to `3213 crore in the financial year under review. increase in lifestyle-related diseases and growth in the health insurance sector. During the year under review. Japan and Australia is witnessing price erosion in the generic business primarily due to competition. Sales & Other Income in crore 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Products The Company introduced many new drugs and formulations during the year. This was primarily due to reduction in material cost from 47 percent to 42 percent on account of improved realisations.

DIRECTORS’ REPORT contd. Lacopsy (lacosamide tablets) – new generation antiepileptic Levepsy (levetiracetam tablets) – adjunctive therapy for epilepsy Levepsy XR (levetiracetam extended release tablets) – once-daily adjunctive therapy for epilepsy Lumet (artemether and lumefantrine tablets) – combination drug for acute malaria Montair LC Kid (montelukast and levocetrizine syrup) – for rhinitis in children Mucophylin (acebrophylline capsules) – mucolytic bronchodilator for asthma and COPD Nadibact (nadifloxacin gel) – quinolone antibacterial for acne Nova M (pregabalin and methylcobalamin capsules) – combination therapy for neuropathic pain Oflox OZ (ofloxacin and ornidazole suspension) – combination therapy for polymicrobial infections Olmecip Trio (olmesartan. pioglitazone and glimepride tablets) – triple combination drug for diabetes Xydap (dapoxetine tablets) – first approved drug for premature ejaculation The following Active Pharmaceutical Ingredients (APIs) were successfully scaled up for commercial manufacture: Abacavir Sulphate – nucleoside analogue for HIV/AIDS Bortezomib – proteasome inhibitor for cancer Carmoterol – long-acting bronchodilator for COPD Dapoxetine Hydrochloride – for treatment of premature ejaculation Naftopidil – selective alpha blocker for hypertension Ritonavir – protease inhibitor for HIV/AIDS Europe 17% Africa 40% Middle East 7% North. amlodipine and hydrochlorothiazide tablets) – novel triple drug combination for hypertension Rospium XR (trospium chloride capsules) – new drug for overactive bladder Sertacide (sertaconazole nitrate cream) – for fungal skin infections Silofast (silodosin capsules) – once-daily drug for BPH Sulbacip (sulbactam sodium injection) – for multidrug resistant infections Triexer Forte (metformin hydrochloride extended release. Central & South America 23% Australasia 13% Exports 9 .

It is anticipated that operations will commence during 2012-13. ANVISA (Brazil). The total investment for these projects is estimated to be around `500 crore. Bengaluru and Kurkumbh which are expected to be completed in 2012-13. anti-virals. Bengaluru. These products may be targeted for international markets in future.DIRECTORS’ REPORT contd. Growth in Fixed Assets Gross Block Net Block in crore 4500 4000 3500 3000 2500 2000 1500 1000 500 0 03 04 05 06 07 08 09 10 11 12 10 . clinical trials for regulatory approvals for certain therapeutic areas are underway in India and Malaysia. The Company’s venture into stem cell-based products is under progress with a major investment in Stempeutics Research Pvt. the Company continues to introduce several new products and dosage forms every year which offer significant opportunities. The launch of the stem cellbased products is expected in 3 years. The capacity utilisation at the Indore SEZ factory has improved significantly compared to the previous year and is expected to reach optimum capacity in the coming years. With an R&D team committed to constant innovation and a strong field force of more than 7. gynaecology and urology. Growth in Profits Profit before Tax Profit after Tax in crore 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 Regulatory Approvals Several dosage forms and APIs manufactured at the Company’s facilities continued to enjoy the approval of major international regulatory agencies. MHRA (UK). the Danish Medical Agency and the WHO. Ministry of Health (Kingdom of Saudi Arabia). Manufacturing Facilities The Company is setting up additional R&D facilities at Vikhroli and Patalganga. PIC (Germany). These agencies included the US FDA. The Company is actively involved in developing bio-similars/ bio-therapeutic products through its partners in China. MCC (South Africa).. It is expected that the clinical trials on these drugs will be completed in 2 to 3 years and subsequently the products will be launched in India. Ltd.500 people. The Company is also setting up API facilities at Patalganga. SIDC (Slovak Republic). Currently. TGA (Australia). 03 04 05 06 07 08 09 10 11 12 0 Opportunities Domestic Markets In the domestic market. Cipla continues to maintain its leadership position in various therapeutic segments including respiratory. Department of Health (Canada).

in a landmark judgement by the Indian Patent Office. In the US. The Company has been consistently challenging some patent applications and post-grant patents. more than 53 percent of the total income originated from international markets. Thailand. This will improve access to the latest medicines required by Indian consumers at affordable prices. a pharma company was granted permission to manufacture an anti-cancer drug under a compulsory license which marked an important development in the domestic drug industry. have amended their patent laws to avail this flexibility allowed under the TRIPS agreement. The Indian Government should announce a long term and unambiguous policy or guideline on compulsory license so that this important tool can be effectively used. Some recent judicial rulings have affirmed the Company’s stand on this vexatious issue. Threats. During the year under review. the Company is exploring all options. The Company’s international business strategy is focused on an optimised product mix with a greater thrust towards high margin products. Recently. etc. Brazil. Any announcement of such a policy or guideline should be clear and time-bound. These patents are intended to create extended monopoly and ever-greening. etc. The Government of India is in negotiations with the European Union to formulate a Free Trade Agreement (FTA). with regulatory approvals for a few products already in place and few more in the pipeline. The Company believes that these negotiations should be open and transparent. International Markets Cipla’s international business continues to be a major revenue driver for the Company. Indonesia. The Government should actively promote a pragmatic compulsory licensing system for life-saving/essential drugs. including filing its own Abbreviated New Drug Applications (ANDAs). India is known as the pharmacy capital of the world not only for its quality and range but also for its prices. Its strategic partnerships with large generic pharmaceutical companies for product development and supply are expected to yield enduring benefits for the Company in the long term. Growth in Shareholders’ Funds in crore 8000 Net Worth Share Capital 7000 6000 Drug Pricing There is lot of uncertainty on the New Drug Policy which is likely to be based on the “NLEM” – National List of Essential Medicines. Many other countries like China. The Indian Government should not in any way compromise the interests of domestic indigenous companies by changing its current stance on all issues pertaining to the patent system. Pakistan. There are multiple producers of the same drug and intense competition 5000 4000 3000 2000 1000 03 04 05 06 07 08 09 10 11 12 0 11 . The policy seeks to impose a drug price control regime on more than 348 drugs on the basis of essentiality. The Company is expanding its presence in the inhaler segment in Europe. monopoly and compulsory licensing. This creates an impediment to providing affordable healthcare to the nation.DIRECTORS’ REPORT contd. India enjoys the lowest prices of medicines in the world – cheaper than Bangladesh. and is therefore involved in a number of patent litigations. Concerns Patents The Company has always maintained its position against MNCs filing pharmaceutical patents which have no novelty. Risks.

the Company continues to maintain high standards of occupational HSE practises at all our facilities. these demand notices may not be enforceable. Particulars of employees required to be furnished under section 217(2A) of the Companies Act. Villagers and school children living around the Company’s plants across India also participate in such programmes. Baddi. 12 . However. Continual efforts are made to upgrade HSE standards. Any shareholder interested in obtaining a copy may write to the Company Secretary at the Registered Office of the Company. Most of our manufacturing facilities including Bengaluru. Safety Measures Occupational Health. Distribution of Revenue Other Expenses 20% Employee Cost 10% Manufacturing Expenses 3% Depreciation 4% Taxation 4% Material Cost 40% Retained Earnings 13% Selling Expenses 2% Dividend (including dividend tax) 3% Excise Duty 1% Internal Control Systems The Company’s internal control procedures ensure compliance with various policies. well-equipped effluent treatment plant at its manufacturing facilities. Safety training programmes including those on behavioural safety are regularly imparted to increase safety awareness at all working levels. Treated water from these zero discharge facilities is used for maintaining green belts around the factory premises. across all functional areas and submits its reports to the Audit Committee of the Board of Directors. practices and statutes in keeping with the organisation’s pace of growth and increasing complexity of operations. Safety Week. any unfavourable outcome in these proceedings could have an adverse impact on the Company. As always. The Company has been legally advised that based on several High Court decisions and considering the totality of facts and circumstances. Cipla has some pending legal cases on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order. 1975 as amended. form part of this report. The Government must move away from price control to price management and the earlier it does so. including establishing well-equipped safety laboratories.DIRECTORS’ REPORT contd. 1956. Kurkumbh and Patalganga are certified for ISO 14001 and OHSAS 18001 standards. Safety & Environment (HSE) measures is an integral part of our business activities. Human Resources A recent Business Today survey of ‘Best Companies to Work for’ ranked Cipla as the No. ensures that the prices remain at reasonable levels. Fire Service Day and Electrical Safety Day are celebrated to create awareness and motivate employees. A team of internal auditors carries out extensive audits throughout the year. The aggregate amount of the demand notices received is about `1655 crore (inclusive of interest). Indore. read with the Companies (Particulars of Employees) Rules. 1 company in the pharmaceutical and healthcare sector. World Environment Day and Earth Day are also celebrated by conducting a green drive programme of mass tree-plantation. The Company continues to maintain its modern. the better for the industry and consumers.

The Cipla Palliative Care and Training Centre in Pune continues to provide care to terminally-ill cancer patients and their families. prepared the annual accounts on a going concern basis. scholarships. essentially in communities surrounding the Company’s factories both directly and through its charitable trusts. selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year ended 31st March 2012 and of the profit of the Company for that period.DIRECTORS’ REPORT contd. including annexures and attachments thereto of the Company’s subsidiaries. The focus is on reaching out to more cancer patients who need palliative care and on integrating palliative medicine with curative therapy. The consolidated financial statements presented in this Annual Report include financial results of the subsidiary companies. The NTBS would be exclusively marketed by Cipla across various diagnostic centres and hospitals in India and has been already installed at Mumbai. ii. In accordance with the general circular issued by the Ministry of Corporate Affairs. In addition. These documents will also be available for inspection by any member at the Registered Office of the Company and that of the respective subsidiary companies. etc. 13 . 1956 it is confirmed that the Directors have: i. health and educational activities. by providing healthcare education. This initiative of price reduction is a humanitarian approach by Cipla to support cancer patients. iii. The annual accounts of the subsidiary companies and the related detailed information will be made available to any member of the Company seeking such information. improvement of community infrastructure. the Balance Sheets. followed applicable accounting standards in the preparation of the annual accounts.700 patients. Subsidiary Companies The Company had 13 subsidiaries/step-down subsidiaries at the beginning of the year. CORPORATE SOCIAL RESPONSIBILITY Cipla launched the first-ever painless. As of date. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. taken proper and sufficient care for maintenance of adequate accounting records in accordance with the provisions of the Companies Act. Cipla İlaç Ticaret Anonim Şirketi became a step-down subsidiary of the Company. Drugs constitute a significant proportion of the overall cost of cancer treatment and a reduction in costs can greatly relieve the burden. are not being attached with the Annual Report of the Company. non-invasive and radiation-free breast scanning technology called the ‘No Touch Breast Scan’ (NTBS) for detecting breast cancer at an early stage. Pune and Indore. the Company continues to support several community welfare. CORPORATE MATTERS Responsibility Statement Pursuant to section 217(2AA) of the Companies Act. and facilitate regular scanning. the Centre has provided comfort and solace to more than 7. This initiative would increase awareness. and iv. The Company had recently announced a breakthrough price reduction on select cancer drugs towards its commitment to make medicines affordable and accessible. A statement containing information on the Company’s subsidiaries is included in this Annual Report. particularly to cancer patients. During the financial year ended 31st March 2012. in particular among younger women.

C. Kotwal retire by rotation and.DIRECTORS’ REPORT contd. joint statutory auditors of the Company. Zaveri (Fellow Membership No. Notices have been received from some members. Mr. proposing his appointment as a Director. Price & Co. The report on corporate governance as stipulated under Clause 49 of the Listing Agreement forms part of this report.G. H.N. The Cost Audit Reports would be submitted to the Central Government within the prescribed time.K. the relevant information and data are annexed to this report. Mumbai. R. The Cost Audit Reports for bulk drugs and formulations for the year ended 31st March 2011 were filed with the Central Government on 1st October 2011. and Messrs. Directors Dr.. He holds office upto the date of the ensuing Annual General Meeting. practising Cost Accountant. On behalf of the Board. Ranjan Pai was appointed as an Additional Director with effect from 14th November 2011. 1988. Corporate Governance Your Company is committed to good corporate governance practices. Sankar Aiyar & Co. 8971). 1956 and with the prior approval of the Central Government. V. D. Cost Auditors Pursuant to the provisions of section 233B of the Companies Act. Manchanda and Mr. retire at the conclusion of the forthcoming Annual General Meeting and are eligible for re-appointment. being eligible. Disclosure of Particulars As required by the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. offer themselves for re-appointment.H. A brief resume of the said Directors is provided in the Notice. Dr. R. V. has been appointed to conduct audit of cost records of bulk drugs and formulations for the financial year ended 31st March 2012. Auditors Messrs. 7th June 2012 Y. Hamied Chairman & Managing Director 14 .

Efficient and controlled use of Air Handling Unit system to reduce the energy consumption in Kurkumbh. I. ventilation unit at Kurkumbh factory has been closed and natural ventilation is being used. This has made it possible to maintain cost of production at optimum levels. Use of energy saving lighting system in all the factories has been started to maintain the consumption of energy during the working hours. ix. Baddi and Goa factories have switched over from furnace oil to high speed diesel oil. xi. To reduce the water consumption use of retreated and rain harvested water initiated in Patalganga. vii. To reduce the energy consumption. Unity power factor implemented in Patalganga factory for optimum utilisation of electricity. 1988. Indore and Sikkim factories. xvii. the consumption is categorised under different classes of goods as shown below. v. . Reduction in operation cost of HVAC system achieved through optimum utilisation of cooling temperature range in all storage areas. Timer based operations initiated in various factories for preventing unwanted energy usage. Some of the specific measures undertaken are: i. Installed temperature controllers for HVAC system chiller and centralized cooling fans’ motors in Bengaluru factory. Installation of VFDs (variable frequency drives) for various equipments in Goa. Total energy consumption and energy consumption per unit of production as per Form A: Considering that the Company has a multi-product. The figures for the year are not exactly comparable with the previous year’s figures because of changes in the product mix. iii. xii. Patalganga. multi-facility production system. CONSERVATION OF ENERGY a. iv. Kurkumbh and Sikkim factories. Installed motion sensors in Sikkim and Baddi factories to reduce wastage of power. c. Sikkim and Indore factories. Steam heating used in place of electrical heating for dehumidifiers in Goa factory. Impact of the above measures for reduction of energy consumption and consequent impact on the cost of production of goods: The adoption of the above energy conservation measures have helped to curtail the proportionate increase in total energy usage consequent to overall increase in production. Switching off power distribution transformers on holidays and low load periods initiated in Baddi and Sikkim factories. xvi. xiii.ANNEXURE TO THE DIRECTORS’ REPORT Information under section 217(1)(e) of the Companies Act. xviii. ii. Reduction in power consumption achieved through re-configuration of the centralised fresh air treatment systems in Goa factory. All computers programmed for power saving mode in Indore factory. vi. Goa. 1956. Sikkim. Reduction in steam generation cost through efficient operation of steam boilers through use of recovered condensate and flash steam for feed water heating in Bengaluru and Indore factories. x. xv. Installation of CFL lamps in place of regular mercury lamps/SV lamps in Bengaluru. Patalganga and Baddi factories. 15 b. Use of energy efficient motors and pumps in Goa. Indore and Kurkumbh factories to reduce the power consumption. xiv. Therefore. To reduce the fuel cost. viii. it is not possible to determine product-wise energy consumption. The Company is striving continuously to conserve energy by adopting innovative measures to reduce wastage and optimise consumption. read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules.

v. Development of new products. vi. kl ` in crore `/kl 24743 106. iv.63 12. specifically for export.ANNEXURE TO THE DIRECTORS’ REPORT contd. Consumption per Unit of Production 2012 1. Specific areas in which R&D work is carried out: The focus of the Company’s R&D efforts was on the following areas: i. RESEARCH & DEVELOPMENT AND TECHNOLOGY ABSORPTION A.63 5. ii. Purchased Units Total amount Rate/Unit b. vii. 2. genetics and biotechnology for cultivation of medicinal plants and isolation of active ingredients from plant materials. iii. Patenting of newer processes/newer products/newer drug delivery systems/newer medical devices/newer usage of drugs for both local and international markets. Power and Fuel Consumption 2012 1.38 2011 69256 4. Electricity Bulk drugs Light diesel oil/diesel oil/furnace oil Bulk drugs (kwh/mt) (kl/mt) 63667 5.69 2. A.70 8. 16 . since the Company manufactures a large range of formulations with different energy requirements.62 5. II. both in the area of APIs as well as formulations. Electricity a.86 43187 27396 91. Research & Development 1. Development of new drug delivery systems for existing and newer active drug substances as also newer medical devices. Development of products related to the indigenous system of medicines.38 kwh kwh ` 51008095 3.90 It is not feasible to classify energy consumption data of formulations on the basis of product categories.94 33563 B. Development of new innovative technology for the manufacture of existing APIs and their intermediates.02 67698041 3. Development of agro technology. Development of new drug formulations for existing and newer active drug substances. Own generation Through diesel generator Units Units per litre of diesel oil Cost/Unit Others/Internal generation Light diesel oil/diesel oil/furnace oil Quantity Total cost Average rate 2011 kwh ` in crore ` 156598143 93.98 149813673 80.

Mumbai. Technology Absorption. Efforts. Improvement in operational efficiency through reduction in batch hours.ANNEXURE TO THE DIRECTORS’ REPORT contd. Development and patenting of new molecular forms and methods of synthesis. 4. Improvements in effluent treatment. pollution control. development of new export markets for products and services and export plans: Exports sales were `3692 crore for the financial year 2011-12. Development of new drug delivery systems and devices. 2. Improved processes and enhanced productivity in both APIs and formulations. increase in batch sizes. initiative taken to increase exports. Development of products for import substitution. On behalf of the Board. the foreign exchange outgo was `1329 crore and the earnings in foreign exchange was `3728 crore. adaptation and innovation: i. III. iv. Capital 17. iii. 2. made towards technology absorption. Expenditure on R&D: ` in crore a. The Company continues to leverage on its strategic marketing alliances and partnerships in more than 170 countries. Development of new drug delivery systems. Projects to develop APIs and formulations jointly with overseas companies. Development of methods to improve safety procedures. 1. In addition. ii. Exports constituted more than 50 percent of total turnover. Total foreign exchange used and earned: During the year. ii. Revenue 306.83 Total The total R&D expenditure as a percentage of total turnover is around 5 percent. 30 and 31 in Notes to the Accounts. Meeting norms of external regulatory agencies to facilitate more exports. i. 7th June 2012 17 Y. pollution control and all-round safety standards. the Company earned `30 crore towards technical know-how/fees. Benefits derived as a result of the above efforts: FOREIGN EXCHANGE EARNINGS AND OUTGO Activities relating to exports. ii. Details of the same have been given in Notes 21. v. B. viii. better solvent recovery and simplification of processes. Adaptation and Innovation 1. 2. Successful commercial scale up of several new APIs and formulations. i.K. iii. in brief. effluent control. The major thrust would be on developing new products and drug delivery systems.40 b. Some of the major benefits derived as a result of R&D include: Future plan of action: The Company will continue its R&D efforts in the various areas indicated in (1) above. 3. etc. Hamied Chairman & Managing Director .43 323. ix. Maximum utilisation of indigenous raw materials.

S.REPORT ON CORPORATE GOVERNANCE (Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges) a. M. 14th November 2011 Six Board Meetings were held during the financial year 2011-12. H. 25th August 2011. Kotwal Mr. Raghavan Mr. Hamied Mr. The Compliance Report on Corporate Governance herein signifies compliance of all mandatory requirements of Clause 49 of the Listing Agreement. The dates on which the meetings were held are: 5th May 2011. Hamied Mr. Y. Manchanda Mr. 14 November 2011 18 .e.C. Raghavan Mr. 5th August 2011. Board of Directors The Board currently consists of 9 Directors out of which 3 are Executive Directors and 6 are Non-Executive/ Independent Directors. 29th June 2011. of Committee Memberships held in other Indian Public Companies Nil Nil Nil Nil Nil Nil Nil Nil Nil Dr.R.f. of Board Attendance at Meetings last AGM held on Attended 25th August 2011 4 6 6 5 6 2 6 6 2 th No.C.R. M. Ramesh Shroff Mr. Ranjan Pai* Yes Yes Yes Yes Yes No Yes Yes Not Applicable *Appointed w. The composition of Board and category of Directors are as follows: Category Executive Directors Name of the Directors Dr.R. Radhakrishnan Dr. Company’s Philosophy on Code of Governance The Company is committed to good corporate governance. Pankaj Patel Dr. Hamied Mr. b. V. Its endeavour has always been to maximise the long term value to the shareholders of the Company. Y. The information about the attendance of Directors at the Board Meetings and at the last Annual General Meeting and the number of directorships and committee memberships held in other Indian public companies (being a Director as on the date of the Directors’ Report) is given below: Name of the Director No. Ramesh Shroff Mr.K. S. of Directorships held in other Indian Public Companies Nil 1 Nil Nil 1 Nil Nil Nil 1 No. M.f.e. Pankaj Patel Dr. The Company respects the rights of its shareholders to secure information on the performance of the Company.R. 14th November 2011 and 13th February 2012. H. Ranjan Pai* *Appointed w.K. V.K. Hamied Mr. Radhakrishnan Non-Executive/Independent Directors Dr. Kotwal Mr.K. Manchanda Mr. M.

Hamied Mr. M.61 Retiral Benefits* (` in lakhs) 0. Hamied.K. The Audit Committee currently comprises: Mr.20 Dr. The agreement with each Executive Director is for a period of five years. Meetings and attendance during the year: The meetings of the Audit Committee were held on 5th May 2011. H. Manchanda Mr.REPORT ON CORPORATE GOVERNANCE contd.98 70. 14th November 2011 and 13th February 2012 during the financial year 2011-12 whereat all the members were present.00 Commission (` in lakhs) 500. Remuneration to Directors The details of remuneration to Executive Directors during the financial year 2011-12 are given below: Executive Directors Salary (` in lakhs) 95. Hamied and Mr.R. Raghavan . Ramesh Shroff .20 0. Mr.10 0.K.20 1. S. M. Manchanda. Pankaj Patel Dr.C. Either party to the agreement is entitled to terminate the agreement by giving not less than three months’ prior notice in writing to the other party. Radhakrishnan * Exclusive of provision for leave encashment and contribution to the approved Group Gratuity Fund. Shareholding of present Non-Executive Directors: As on 31st March 2012. The Chief Financial Officer and other functional managers along with Internal Auditors and Statutory Auditors are invited to attend the meetings of the Audit Committee. Kotwal Mr.00 110. M. as and when necessary. d. Sitting fees to Non-Executive Directors during the financial year 2011-12 are given below: Non-Executive Directors Dr. which are actuarially determined on an overall basis Notes: i. Y. Radhakrishnan .40 1.40 13. 5th August 2011.Member and Mr.20 1.Member. the Company does not have a scheme for grant of stock options either to its Executive Directors or to its employees. The Audit Committee discharges such duties and functions generally indicated in Clause 49 of the Listing Agreement with the Stock Exchanges and also such other functions as may be specifically delegated to it by the Board from time to time.Chairman.25 80. Y.K.f. Dr. None of the Directors is related to each other except for Dr.02 11. Ranjan Pai* *Appointed w. ii. c. The Company Secretary acts as Secretary to the Committee. Raghavan Mr.e. 19 Sitting Fees (` in lakhs) 2. 250 and 1025 equity shares respectively in the share capital of the Company.00 325. 29th June 2011. Presently. Mr. Ranjan Pai – Non-Executive Directors held 200000.20 . Audit Committee The Audit Committee was constituted on 4th September 2000 in compliance with the requirements of Clause 49 of the Listing Agreement.R. V.R.00 95.00 Perquisites and Allowances (` in lakhs) 69. None of the other Non-Executive Directors hold any equity shares of the Company.R. Ramesh Shroff Mr. M. 14th November 2011 Note: The above figures are inclusive of fees paid for attendance of committee meetings. H. Hamied Mr. S.00 200.K. Ramesh Shroff and Dr.

Mumbai-400 034 at 3.K. Special Resolution granting consent to the holding of office or place of profit by Mr. Company Secretary acts as the Company’s Compliance Officer. No resolution was passed through postal ballot during the financial year ended 31st March 2012. Joint Managing Director of the Company as member of management team was passed at the Annual General Meeting of the Company held on 25th August 2011. The Company attends to the shareholders’/investors’ grievances/correspondence expeditiously. Special Resolution granting consent to the holding of office or place of profit by Mrs.Member and Mr. e.S. g. Disclosures During the financial year 2011-12. Mital Sanghvi. the Committee met on 5th May 2011. Hamied. Further details of related party transactions are presented in Note 40 in Notes to the Accounts.K. that may have potential conflict with the interests of the Company at large. The Company has complied with the requirements of the Stock Exchanges. Joint Managing Director and Mr. Hamied. 45 investor grievances were received and all of them have been resolved. Mr. 14th November 2011 and 13th February 2012. 5th August 2011. Directors or the Management.Member. i. M. Kamil Hamied. M.REPORT ON CORPORATE GOVERNANCE contd. Manchanda Chairman. Joint Managing Director has declared that the Board Members and Senior Management have affirmed compliance with the Code of Conduct of the Company. V. The Committee currently comprises: Dr. During the financial year 2011-12. there were neither any penalties imposed nor any strictures passed on the Company by the Stock Exchanges. subsidiaries or relatives.m. Hamied. Samina Vaziralli. In absence of any non-compliance by the Company. relative of Mr. Hamied.K. Mani. Hamied .R.K. Lala Lajpat Rai Marg. M. f. SEBI or any other statutory authority. there were no materially significant transactions entered into between the Company and its Promoters. Code of Conduct The Code of Conduct for the Directors and Senior Management of the Company has been laid down by the Board and the same is posted on the website of the Company. M. Investors’ Grievance Committee The Company has an Investors’ Grievance Committee to attend to and address the grievances of the Shareholders’/Investors’ as and when received. etc. General Body Meetings The last three Annual General Meetings of the Company were held at Amar Gian Grover Auditorium. 20 . Mr. M. CEO and CFO Certification Mr.K. Haji Ali. Pankaj Patel . During the year under review.00 p. relative of Mr. H. Chief Financial Officer of the Company have certified positively to the Board on the matters specified under Clause 49(V) of the Listing Agreement. Mr. SEBI and other statutory authorities on all matters related to capital markets during the last three years. h. Special Resolution for further issuance of securities in the domestic and/or international markets was passed at the Annual General Meeting of the Company held on 26th August 2009. Joint Managing Director of the Company as member of management team was passed at the Annual General Meeting of the Company held on 25th August 2010.

The Hindu Business Line. The annual/half-yearly/quarterly results and other official news releases are displayed on the website of the Company – www.00 p. K.m. Global Depository Receipts (GDRs): Luxembourg Stock Exchange The Company has paid the requisite annual listing fees to the above stock exchanges for the financial year 2012-13. Business Standard.C. The Financial Express. Time and Venue of the AGM : Friday. Dinshaw Wacha Road.cipla. Churchgate. k. 17th August 2012 at 3.com The Management Discussion and Analysis Report forms part of the Directors’ Report. College. Means of Communication The half-yearly/quarterly results are published in the newspapers (Mumbai edition) and are not being sent to each household of shareholders.REPORT ON CORPORATE GOVERNANCE contd. Sakaal. General Shareholder Information Date. Navbharat Times. The results are usually published in the following newspapers: The Economic Times. j. Rama Watumull Auditorium. Stock Code : 500087 on BSE Limited CIPLA EQ on National Stock Exchange of India Limited ISIN Number for NSDL & CDSL : INE059A01026 21 . Mumbai-400 020 Financial Calendar Adoption of Quarterly Results for the Quarter Ending (tentative) 30th June 2012 30th September 2012 31 December 2012 31st March 2013 Date of Book Closure Dividend Payment Date Corporate Identity Number (CIN) Listing on Stock Exchanges : : : : st : : 1st day of April to 31st day of March in the next calendar year 1st week of August 2012 November 2012 February 2013 May 2013 3rd August 2012 to 17th August 2012 (both days inclusive) Will be dispatched/credited on or after 23rd August 2012 L24239MH1935PLC002380 Equity Shares: BSE Limited and National Stock Exchange of India Limited.

00 4043059 315.80 316.15 3131451 310.50 22215242 359.50 6751110 Performance in comparison to BSE SENSEX – Year 2011-12 Cipla Share Price ( ) Month 22 BSE Sensex (Pts.00 341.10 299.00 315.45 274.50 337.00 35335555 340.00 2008138 295.10 1813764 274.50 23821800 341.00 BSE Limited Low Number of (`) Shares Traded 305.15 23719585 329.00 25088838 352.00 3141318 286.00 3152893 315.85 25455291 300.80 310.10 3126120 311.00 334.REPORT ON CORPORATE GOVERNANCE contd.05 2874171 305. Market Price Data : The high and low prices of every month during the financial year 2011-12 are given below.95 311.95 305. National Stock Exchange of India Limited High Low Number of (`) (`) Shares Traded 326.20 26444535 299.) .30 40065312 Year (2011-12) April May June July August September October November December January February March High (`) 326.00 320.90 295.30 32789685 320.00 351.10 2266020 273. The Company’s market capitalisation is included in the computation of BSE Sensex and S&P CNX NIFTY Index.00 21417579 315.60 2619325 276.10 1733876 284.50 340.90 359.95 315.60 272.00 299.50 284.45 304.65 17252144 334.00 286.10 26855794 337.95 329.00 276.

issue of duplicate share certificates and allied matters.REPORT ON CORPORATE GOVERNANCE contd.77 91.50 100. Share Transfer Agents : Karvy Computershare Private Limited (Unit: Cipla Limited) Plot No.72 91. Hyderabad-500 081 Tel: (040) 2342 0818/4465 5201 Fax: (040) 2342 0814 E-mail: einward. should be addressed to the Share Transfer Agents viz. 17–24.cipla. of Shares 24892502 5266796 6631094 5932411 3967735 4658260 13791882 737780677 802921357 70385145 732536212 % of Total 3. dematerialisation.74 0.88 100.83 0. transmission.82 0. Karvy Computershare Private Limited.00 8. National Electronic Clearing Service (NECS).com Website: www.23 .66 0. etc. Address for Correspondence All communications with regard to transfer.13 0.com Company : Share Transfer System A Committee of Directors has been constituted to approve the transfer.karvy. Distribution of shareholding as on 31st March 2012 (Class-wise distribution of Equity Shares) Shareholding 1-2500 2501-5000 5001-10000 10001-15000 15001-20000 20001-25000 25001-50000 Above 50000 Total Physical Mode Electronic Mode No.49 0. of Folios 168376 1425 895 482 225 205 374 863 172845 1603 171242 23 % of Total 97.58 1. A predetermined process cycle at regular interval ensures transfer of shares (in physical form) within the stipulated time limit.12 0. periodic certificates issued by a Practising Company Secretary are filed with the Stock Exchanges.10 0. dividend. Karvy Computershare Private Limited have adequate infrastructure to process the above matters.07 No.ris@karvy. Vittal Rao Nagar.93 99. Madhapur. Mumbai-400 008 Tel: (022) 2302 5272/2309 5521 Fax: (022) 2300 8101 E-mail: cosecretary@cipla.52 0.41 0. In compliance with the requirement of Listing Agreement.28 0.com Website: www. The Company’s Share Transfer Agents.com Shares Department Cipla Limited Mumbai Central.00 0. transmission.22 0.

Plant Locations i. Bengaluru-560 099. Each GDR represents one underlying equity share of the Company.REPORT ON CORPORATE GOVERNANCE contd. Industrial Area. Virgonagar.18% Promoters and Promoter Group 36.80% Bodies Corporate 6. They are also included in S&P CNX NIFTY of National Stock Exchange of India Limited.09% Shares in transit (Depository) 0.85% Banks. Old Madras Road.657 GDRs were outstanding. Bommasandra-Jigani Link Road. Karnataka ii. As on 31st March 2012.23% Foreign Institutional Investors 16. KIADB 4th Phase.14. The Company has not issued any American Depository Receipts (ADRs)/Warrants or any convertible instruments. Financial Institutions. As to the Liquidity. Karnataka 24 . 7. Outstanding GDRs/ADRs/Warrants The GDRs are listed on Luxembourg Stock Exchange and the underlying equity shares are listed on BSE Limited and National Stock Exchange of India Limited. They are among the select scrips in which derivatives trading has been permitted in the form of stock futures and stock options. Insurance Companies (Central/State Govt. Shareholding Pattern as on 31st March 2012 NRIs / Foreign Corporate Bodies 3. Institutions/Non-Govt Institutions) 10.07% Mutual Funds and UTI 6.35% Dematerialisation of Shares and Liquidity As on 31st March 2012.11% Indian Public 20. equity shares of the Company are traded in the ‘A’/Forward group and have been included in the SENSEX at BSE Limited.32% Bank of New York (Shares underlying GDRs) 0. about 91 percent of the share capital was held in dematerialised form. Bengaluru-560 049.

Pharma Zone. iii. District: Pune. Maharashtra Verna Industrial Estate. K. Hamied Chairman & Managing Director Certificate on Compliance with Clause 49 of the Listing Agreement To the Members of Cipla Limited. Mumbai. for the year ended 31st March 2012. P. entered into by the Company with the Stock Exchanges. 7th June 2012 25 . The compliance of conditions of Corporate Governance is the responsibility of the Management of the Company. and implementation thereof. Sikkim Indore SEZ. Kurkumbh-413 802. vii. District: Dhar.O. Sector III. Maharashtra MIDC Industrial Area. Madhya Pradesh On behalf of the Board. MIDC. vi. 1370 Certificate of Practice No. K. Pithampur-454 774. P. I have examined the compliance by Cipla Limited (the Company) of the requirements under Clause 49 of the Listing Agreement.R. 7th June 2012 Y.REPORT ON CORPORATE GOVERNANCE contd. I certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the Listing Agreement. District: Solan. by the Company for ensuring compliance with the conditions of Corporate Governance under Clause 49. District: East Sikkim. viii. In my opinion and to the best of my information and according to the explanations given to me. v. Rangpo-737 132. Chandratre Practising Company Secretary FCS No. District: Raigad. Patalganga-410 220. The examination is neither an audit nor an expression of opinion on the financial statements of the Company. Daund. Bhud. 5144 Pune. Salcette. Himachal Pradesh Village Kumrek. Verna-403 722. I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the Management has conducted the affairs of the Company.O. Nalagarh. Goa Village Malpur Upper. Baddi-173 205. iv. My examination was limited to procedures adopted. Dr. Phase II.

In the case of the Balance Sheet. of the state of affairs of the Company as at 31st March 2012. from being appointed as a Director in terms of section 274(1) (g) of the Companies Act. 41883 Mumbai. the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account.AUDITORS’ REPORT TO THE MEMBERS OF CIPLA LIMITED 1. so far as appears from our examination of those books.. attention is drawn to Note 36 appearing in the attached financial statements regarding nonprovisioning for potential financial liability towards damages payable by the Company since such liability cannot be reliably estimated as on date. We believe that our audit provides a reasonable basis for our opinion. ii. we report that: a. 2003. An audit also includes assessing the accounting principles used and significant estimates made by the Management. Further to our comments in the Annexure referred to in paragraph 3 above. issued by the Central Government of India in terms of section 227(4A) of the Companies Act. An audit includes examining. 1956. Our responsibility is to express an opinion on these financial statements based on our audit. In our opinion and to the best of our information and according to the explanations given to us.N. Chartered Accountants Firm Reg. c. which to the best of our knowledge and belief were necessary for the purposes of our audit. In our opinion. 7th June 2012 . a statement on the matters specified in paragraphs 4 and 5 of the said Order. We conducted our audit in accordance with the auditing standards generally accepted in India. Without qualifying. On the basis of the written representations received from the Directors of the Company as on 31st March 2012 and taken on record by the Board of Directors of the Company. as amended. For R. (hereinafter referred to as “the Order”).G. the Balance Sheet. In the case of the Cash Flow Statement. 5. 1956. e. In our opinion. Price & Co. of the profit for the year ended on that date. and iii. 3. 002785S R. Mohan Partner Membership No.. No. the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in section 211(3C) of the Companies Act. the said financial statements. we report that none of the Directors is disqualified as on 31st March 2012. We have obtained all the information and explanations. give the information required by the Companies Act. 17748 Mumbai. The Balance Sheet. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 7th June 2012 26 2. together with the notes thereto. b. of the cash flows for the year ended on that date. We have audited the attached Balance Sheet of Cipla Limited (the Company) as at 31st March 2012. 1956 (the Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us. the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year ended on that date annexed thereto. proper books of account as required by law have been kept by the Company. d. on a test basis. As required by the Companies (Auditors’ Report) Order. 4. evidence supporting the amounts and disclosures in the financial statements. we enclose in the Annexure. Sankar Aiyar & Co. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i. Rangarajan Partner Membership No. No. 1956. 109208W V. Chartered Accountants Firm Reg. as well as evaluating the overall financial statement presentation. These financial statements are the responsibility of the Company’s management. In the case of the Statement of Profit and Loss. For V. f.

the requirements of clause (iii) of paragraph 4 of the Order are not applicable to the Company. on the basis of our examination of the books and records of the Company and according to the information and explanations given to us during the course of audit. The Company has a policy of physically verifying its fixed assets periodically. As informed to us. 6. the particulars of contracts or arrangements referred to in section 301 of the Companies Act. 27 b. in our opinion. 58AA or any other relevant provisions of Companies Act. 5. On the basis of our examination of the inventory records. In our opinion and according to the information and explanations given to us. a. In our opinion and according to the information and explanations given to us. In our opinion and on the basis of the information and explanations given to us. the Company has not granted or taken any loans. 3. is reasonable having regard to the size of the Company and the nature of its business.ANNEXURE TO THE AUDITORS’ REPORT (Referred to in paragraph 3 of our report of even date to the Members of Cipla Limited (the Company) for the year ended 31st March 2012) 1. 2. secured or unsecured. 1975. The verification was done on the basis of the perpetual inventory system operated by the Company. a. above and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. The discrepancies noticed on physical verification of inventory have been properly dealt with in the books of account. the Company has not accepted any deposits from the public within the meaning of section 58A. firms or other parties listed in the Register maintained under section 301 of the Companies Act. 1956 and the Companies (Acceptance of Deposits) Rules.1956. 4. other than situation of furniture and fixtures and office equipment where the situation recorded is the location of the Company’s different establishments. The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets. the transactions made in pursuance of contracts or agreements referred to in 5. b.a. to or from companies. In our opinion and according to the information and explanations given to us. In case of materials lying with third parties. Hence. the procedures for physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business. Further. The fixed assets that have been sold/disposed of during the year do not constitute a substantial part of the total fixed assets of the Company. which in our opinion. b. c. certificates confirming such inventory have been obtained by the Company from most of the third parties. the going concern concept has not been affected. The inventory has been physically verified by the Management at reasonable intervals during the year. there are generally adequate internal control systems commensurate with the size of the Company and the nature of its business for purchase of inventory and fixed assets and for the sale of goods and services. In our opinion and according to the information and explanations given to us. 1956 have been entered in the Register required to be maintained under that section. During the year. Consequently. the Company has maintained proper records of inventory. a. some of the fixed assets have been physically verified by the Management and discrepancies noticed during the physical verification have been appropriately dealt with in the books of account. no major weakness has been noticed in these internal control systems. . c.

14. debentures or other investments. Excise Duty Sales Tax Income Tax The Company does not have accumulated losses at the end of the financial year and has not incurred cash losses in the financial year under report or in the immediately preceding financial year. 13. in our opinion. b. there were no dues in respect of Wealth Tax. However. 8. Customs Duty and Cess that have not been deposited with the appropriate authorities on account of dispute. we have not carried out a detailed examination of the accounts and records with a view to determine whether these are accurate or complete. The particulars of dues towards Excise Duty. the Company is not a chit fund or a nidhi mutual benefit fund/society. the provisions of clause 4(xiv) of the Order are not applicable to the Company. 7. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act. According to the information and explanations given to us and based on the records of the Company examined by us. the provisions of clause 4(xiii) of the Order are not applicable to the Company. the Company has not granted any loans and advances on the basis of security by way of pledge of shares. In our opinion. According to the information and explanations given to us and based on our audit procedures. Wealth Tax. 1961 10. as on 31st March 2012. the Company has not defaulted in repayment of dues to any financial institution or bank.22 3. According to the information and explanations provided to us and the records of the Company examined by us. 1956 in respect of its products and are of the opinion that. 28 . 1944 State Sales Tax Acts Income Tax Act.83 9. In our opinion. Employees’ State Insurance. Service Tax.64 17. 11. In our opinion and according to the information and explanations given to us. the Company is not a dealer or trader in shares. Excise Duty. 12. Customs Duty. The Central Excise Act. debentures and other securities. Accordingly. Sales Tax. Service Tax. According to the information and explanations given to us. the Company has an internal audit system commensurate with its size and the nature of its business. a. Income Tax. Sales Tax and Income Tax that have not been deposited on account of dispute as at 31st March 2012 and the forum where these disputes are pending are as follows: Name of the statute Nature of dues Financial years to Forum where the which the matter dispute is pending pertains 2002-03 to 2009-10 2001-02 to 2008-09 2009-10 CESTAT/Commissioner (Appeals) State Sales Tax Tribunal Commissioner of Income Tax (Appeals) Amount ` in crore 24. There were no undisputed arrears that were outstanding as at 31st March 2012 for a period of more than six months from the date they became payable. the Company was regular in depositing undisputed statutory dues including Provident Fund. securities. Cess and other material statutory dues applicable to it with the appropriate authorities. Therefore. the prescribed accounts and records have been made and maintained. Investor Education and Protection Fund. prima facie.ANNEXURE TO THE AUDITORS’ REPORT contd.

The Company has not raised any money through public issue of securities during the year. the Company has not given any guarantee for loans taken by others from banks or financial institutions. No. no material fraud on or by the Company has been noticed or reported by the Company during the year. Rangarajan Partner Membership No. 1956. Accordingly. we report that no funds raised on short term basis have been used for long term investment.N. Chartered Accountants Firm Reg.. 19. According to the information and explanations given to us and the representations made by the Management.ANNEXURE TO THE AUDITORS’ REPORT contd.. 21. 17748 Mumbai. 7th June 2012 29 . The Company has not issued any debentures during the year. 20. and according to the information and explanations given to us. 109208W V. 16. Sankar Aiyar & Co. For V. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company. The Company has not made preferential allotment of shares during the year to parties and companies covered in the Register maintained under section 301 of the Companies Act. Mohan Partner Membership No. Price & Co. No. the provisions of clause 4(xvi) of the Order are not applicable to the Company. During the course of our examination of the books of account and records of the Company. 17. 15. For R. Chartered Accountants Firm Reg. 41883 Mumbai.G. The Company has not obtained any term loans. 7th June 2012 18. 002785S R.

37 2.R.98 8993. Hamied Joint Managing Director V.C.65 0.G. Manchanda Ramesh Shroff V.79 Y.31 55.83 M.00 600.00 437.66 343.67 300.58 7389.32 1824. Price & Co.45 29.S.15 223.65 253.92 212. 109208W V. 41883 11 12 13 14 15 16 17 18 19 20 1 to 41 3002.94 211. Chartered Accountants Firm Reg. No.06 435.88 8447. Hamied Chairman & Managing Director S.33 8447.24 573.20 232.06 773. Raghavan Pankaj Patel Directors 2867.83 385.16 1497.45 21.K.59 1883.39 357. 17748 For R. Rangarajan Partner Membership No.50 0.04 83. Kotwal M. 002785S R. Radhakrishnan Whole-time Director H.07 347. Sankar Aiyar & Co.50 1519.83 Assets Non-Current Assets Fixed Assets Tangible Assets Intangible Assets Capital Work-in-Progress Non-Current Investments Long Term Loans and Advances Other Non-Current Assets Current Assets Current Investments Inventories Trade Receivables Cash and Bank Balances Short Term Loans and Advances Other Current Assets Notes to the Accounts As per our report of even date For V..R.K.30 85.45 461.12 10.70 2. Chartered Accountants Firm Reg. 7th June 2012 Mumbai. No.79 160.N.56 661.58 6452. 7th June 2012 30 .98 771.41 8993.79 53.BALANCE SHEET ` in crore 2011 As at 31st March 2012 Notes 2012 Equity and Liabilities Shareholders’ Funds Share Capital Reserves and Surplus Non-Current Liabilities Long Term Borrowings Deferred Tax Liabilities Long Term Provisions Current Liabilities Short Term Borrowings Trade Payables Other Current Liabilities Short Term Provisions 2 3 4 5 6 7 8 9 10 160. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.40 198. Mohan Partner Membership No..

24 728. Hamied Joint Managing Director V.79 5704.K.39 Profit Before Tax Tax Expense Current Tax MAT Credit (entitlement)/utilisation Deferred Tax 277.R.96 227.N.52 5271.80 6398.G. Hamied Chairman & Managing Director S. Chartered Accountants Firm Reg.00) 33.34 1421.23 6977.73 67.C.00 `11. Work-in-Process and Traded Goods Employee Benefits Expense Finance Costs Depreciation and Amortisation Expense Other Expenses 23a 23b 23c 24 25 26 27 2300.46 2356. 7th June 2012 Mumbai.. Raghavan Pankaj Patel Directors `14.64 6331. Manchanda Ramesh Shroff V. 7th June 2012 31 .85 555. Sankar Aiyar & Co.71) 540. Chartered Accountants Firm Reg.55 11.73 97.00 1123.63 282.33 12. 109208W V. 17748 For R.13 (138.K.92 248.30 7125.30 960..09 91.34 1151. 002785S R. Price & Co.50 20.STATEMENT OF PROFIT AND LOSS ` in crore 2011 For the year ended 31st March 2012 Notes 2012 Income Revenue from Operations (Gross) Less: Excise Duty Revenue from Operations (Net) Other Income 22 21 7074.07 1799. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.21 26.R.03 1581.73 Expenditure Cost of Materials Consumed Purchase of Traded Goods Changes in Inventories of Finished Goods. No. Kotwal M. Radhakrishnan Whole-time Director H. No. 41883 41 1 to 41 Y. Rangarajan Partner Membership No. Mohan Partner Membership No.96 M.64 6422.70 (70.50 148.S.12 671.39 Profit for the Year Earnings per share of face value of `2 each Basic and Diluted Notes to the Accounts As per our report of even date For V.

Current investments are stated at lower of cost or fair value.NOTES TO THE ACCOUNTS 1 Significant Accounting Policies A Basis of Preparation The financial statements are prepared in accordance with generally accepted accounting principles in India. However. D 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. F Investments Long term investments are stated at cost. Any revision of accounting estimates is recognised prospectively in the current and future periods. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standards) Rules. 1956 has become applicable to the Company. labour. 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. During the financial year ended 31st March 2012 the revised Schedule VI notified under the Companies Act. if any. the consideration is apportioned to fixed assets on fair value basis. C Fixed Assets Fixed assets are stated at cost of acquisition (net of recoverable taxes and Government grants and other subsidies. wherever applicable. The accounting policies adopted in preparation of the financial statements are consistent with those of the previous year. Future results could differ from these estimates. 2006 issued under section 211(3C) of the Companies Act. Foreign currency monetary assets & liabilities and forward contracts are restated at year end exchange rates. Work-in-process and finished goods are valued at lower of cost or net realisable value. Cost of leasehold land including premium is amortised over the primary period of lease. The Company has also re-classified the previous year figures in accordance with the requirements applicable in the current year. where the actual cost does not exceed `5000 have been written off entirely in the year of acquisition. Cost of inventories is computed on weighted average basis. Where several fixed assets are acquired for consolidated price. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. E Valuation of Inventories Raw materials and packing materials are valued at lower of cost or net realisable value after providing for obsolescence. Finished goods and work-in-process include costs of raw material. G Foreign Exchange Transactions Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. 1956. conversion costs and other costs incurred in bringing the inventories to their present location and condition. in which they will be used. 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 32 . are expected to be sold at or above cost. revenue and expenses and disclosures relating to contingent liabilities. for preparation and presentation of its financial statements. All individual items of fixed assets. these items are considered to be realisable at cost if the finished products. wherever availed) or construction or other amounts substituted for historical costs on revaluation less accumulated depreciation. 1956. Cost of finished goods includes excise duty. The financial statements have been prepared on an accrual basis and under the historical cost convention. less provision for diminution (other than temporary) in value.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss. Contingent assets are neither recognised nor disclosed in the financial statements. are recognised as income or expense in the year in which they arise. net of sales tax. Foreign branches are identified as integral foreign operations. A disclosure of contingent liability is made when there is a possible obligation or a present obligation that may. K 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. Post retirement contribution plans such as Provident Fund are charged to the Statement of Profit and Loss for the year when the contributions to the respective funds accrue. I 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. All transactions are transferred at rates prevailing on the date of transaction. but probably will not. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. in respect of which a reliable estimate can be made. H Provisions. Dividend income is recognised when the right to receive is established. Monetary assets and liabilities of the branch are restated at the year end rates. Contingent Liabilities and Contingent Assets A provision is recognised when the Company has a present obligation as a result of a past event. Interest income is recognised on time proportion basis. 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. Technical Know-how/Fees are recognised as and when the right to receive such income is established as per terms and conditions of relevant agreement. during the year or reported in the previous financial statements. the premium or discount on these contracts is recognised as income or expenditure over the period of the contract. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote. 33 . it is probable that an outflow of resources will be required to settle the obligation. 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. Any profit or loss arising on cancellation or renewal of such contracts is recognised as income or expense of the year. returns and trade discounts. 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. In respect of forward contracts. J 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. Revenue from rendering of services are recognised on completion of services. Revenues are recorded at invoice value. require an outflow of resources. no provision or disclosure is made. Benefits on account of entitlement of export incentives are recognised as and when the right to receive is established.NOTES TO THE ACCOUNTS contd. Revenue from sale of goods is recognised when significant risks and rewards of ownership of the goods have been passed to the buyer. Non-monetary foreign currency items are carried at the rates prevailing on the date of the transaction. which ordinarily coincides with despatch of goods to customers.

O Expenditure on Regulatory Approvals Expenditure incurred for obtaining regulatory approvals and registration of products for overseas markets is charged to revenue. the current tax assets and liabilities. If any such indication exists. 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. up to the date such assets are ready for their intended use. L Borrowing Costs Borrowing costs attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets. 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. 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. the Company assesses whether there is any indication that any asset may be impaired. P Government Grants and Subsidies Capital subsidy/Government grants are accounted for where it is reasonably certain that the ultimate collection will be made. the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis. If. Other financing/ borrowing costs are charged to the Statement of Profit and Loss. Capital expenditure on Research and Development is shown as addition to Fixed Assets. For the purpose of calculating diluted earnings per share. The Company offsets. 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. M Impairment of Assets At each Balance Sheet date.NOTES TO THE ACCOUNTS contd. 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. 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. at the Balance Sheet date. on a year-on-year basis. 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. 34 . there is an indication that a previously assessed impairment loss no longer exists. N Research and Development Revenue expenditure on Research and Development is recognised as expense in the year in which it is incurred.

22 5.937 4.58 160.814 equity shares of `2 each were allotted as Bonus shares by capitalisation of General Reserve and Securities Premium Account in May 2006.357 Equity Shares of `2 each fully paid) 160.59.750 4.00.50.171 % Holding 15. Each holder of equity share is entitled to one vote per share.29. The distribution will be in proportion to the number of Equity Shares held by the shareholder.00.000 8.73 9. Hamied Mrs.78 175.00 175.750 4. Sophie Ahmed Life Insurance Corporation of India 12.63.98 2011 Number of shares 12.55 5.53.22 5. In the event of liquidation of the Company.K.19.55 5.82. after distribution of all preferential amounts.68.357 Equity Shares of `2 each fully paid (Previous year 80. the holders of equity shares will be entitled to receive remaining assets of the Company.937 4.752 Equity Shares of `2 each) Subscribed & Paid-up 80.73 12. Y.59.24.000 Equity Shares of `2 each (Previous year 87.58 160.01.14. Details of Shareholders holding more than 5 percent shares in the Company 2012 Number of shares Dr.39. 35 .27. The Company declares and pays dividends in Indian Rupees.14.752 Equity Shares of `2 each (Previous year 80. ` in crore 2011 2012 2 Share Capital Authorised 87. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.82.58 160.98.78 160.21. Farida Hamied Mrs.07 Shares allotted as fully paid-up by way of Bonus shares (during 5 years preceding 31st March 2012) 46.58 160.00 175.000 9.21.NOTES TO THE ACCOUNTS contd.536 % Holding 15.78 160.29.50. Terms and Rights attached to Equity Shares The Company has only one class of equity shares having a par value of `2 per share.24.00 175.00 There is no change in the shares outstanding at the beginning and at the end of the reporting date and immediately preceding reporting date.74.27.39.19.78 160.000 Equity Shares of `2 each) Issued 80.48.48.

00 160.26 7389.96 8.92 2.00 2841.Sales Tax Deferral Loan 2.45 36 .08 1428.89 Less: Appropriations Transferred to General Reserve Interim Dividend Proposed Dividend Tax on Dividend Balance at the end of the year 125.93 232.58 36.92 ` in crore 2011 2012 5 Deferred Tax Liabilities Deferred Tax Liabilities arising on account of DEPB Incentives Depreciation 17.20 2.96 3421.39 2659.96 8.08 1428.07 960.00 0.43 100.93 1123.20 2.NOTES TO THE ACCOUNTS contd.45 27.46 2012 3 Reserves and Surplus Capital Reserve Securities Premium Reserve Revaluation Reserve General Reserve As per last Balance Sheet Add: Transferred from the Statement of Profit and Loss Balance at the end of the year Surplus in the Statement of Profit and Loss As per last Balance Sheet Add: Profit for the year 2716.58 26. ` in crore 2011 0.05 3110.43 125.97 2616.75 212.43 1699.00 64.70 100.43 2297.70 184.37 ` in crore 2011 2716.72 2297.93 6452.52 214.23 160.97 2012 4 Long Term Borrowings Unsecured Deferred Payment Liability .

26 600. for all the delayed payments. a.61 437. Interest due thereon ii.12 29.00 10.NOTES TO THE ACCOUNTS contd. both present and future) Unsecured Packing Credit from Banks 10. 2006 iii.56 ` in crore 2011 15. Small and Medium Enterprises Development Act.00 ` in crore 2011 2012 6 Long Term Provisions Provision for Employee Benefits .12 2012 7 Short Term Borrowings Loans Repayable on demand Secured Cash Credit from Banks (Secured against receivables and moveable assets including stocks.00 2. The delayed payments of principal paid beyond the appointed date during the entire accounting year b. Normal interest payable for the period of delay in making payment. Small and Medium Enterprises based on available information with the Company is as under: 2012 i. Interest actually paid under section 16 of the Micro.67 2012 8 Trade Payables Micro.39 The details of amounts outstanding to Micro. a.22 661. Total interest accrued during the year and remaining unpaid 37 ` in crore 2011 - - .95 434. as per the agreed terms b. The principal amount and the interest due thereon remaining unpaid to suppliers a.00 21. as per the agreed terms iv. Normal interest accrued during the year. Total interest accrued during the year b.45 646. Small and Medium Enterprises Others 14.13 586. ` in crore 2011 21.Leave Encashment (Note 24) 29. Principal b. a.

12 357.12 29.26 6.73 117.NOTES TO THE ACCOUNTS contd.46 36.72 13.41 5.47 0.58 26.59 14.95 106.73 24.91 12.01 22. ` in crore 2011 2012 9 Other Current Liabilities Current maturities of Long Term Debt .58 26.40 2012 ` in crore 2011 10 Short Term Provisions Provision for Employee Benefits .25 63.05 211.79 17. 0.83 300.29 17.Sales Tax Deferral Loan Unclaimed Dividend* Statutory Dues Outstanding Payables Creditors for Capital Expenditure Unclaimed Preference Share Capital Security Deposits Book Overdraft Advance from Customers 0.01 31.94 * There are no amounts due and outstanding to be credited to Investor Education & Protection Fund.05 198.49 160.99 160.88 38 .98 124.Leave Encashment (Note 24) Employee Retirement Benefit Obligations .Gratuity (Note 24) Proposed Dividend Tax on Proposed Dividend 7.30 0.37 41.

28 3002.25 65.71 69.71 3024.57 1945.63 65.68 29.06 75.04 crore) used for Research and Development.66 Upto 31.13 993.Tangible Assets GROSS BLOCK As at 01.69 9.34 4298.18 1060.05 74.14 0.15 793.86 0.13 444. iii.05 343.03.31 44. The above additions to fixed assets during the year includes `17.89 1295.99 - 31.63 3928.18 103.66 48.00 1.17 3.40 crore (Previous year `25.82 1. iv.67 9. Freehold Land at Mumbai Central and Vikhroli.55 34. The gross value of Buildings and Flats includes the cost of shares in Co-operative Housing Societies.54 105.40 58.97 crore.46 73.53 6.38 2867.64 49.82 30. The gross block is net of Government grants/other subsidies Nil for current year (Previous year Goa `9.77 2.20 crore and Indore `0.02 crore).47 2894.64 67.65 Leasehold Land Plant and Equipments Office Equipments Furniture and Fixtures NOTES TO THE ACCOUNTS contd.31 1866.97 157.76 282.79 12.48 1078.29 2.12 70.` in crore 11 Fixed Assets .80 239.63 - 29.44 920.03.04.33 47.03.03.82 31.12 Upto 31.10 5.27 29.37 1. 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 `8.05 7.06 248.62 8.52 1060.47 884.11 ASSETS Freehold Land 74.02 0.64 884.92 1137.64 1.83 5.11 Additions Deletions/ Adjustments As at 31. 39 Buildings and Flats Vehicles Total Previous year Notes: i.03 1.29 11.99 2750. .86 9.30 836. ii.03.36 71.75 126.84 3928.12 As at 31.12 DEPRECIATION/AMORTISATION NET BLOCK As at 31.55 0.30 94.09 40.98 10.11 For the Deletions/ year Adjustments 2011-12 1.65 3.

00.15 0. fully paid 45. of `10 each.`346.12 133.`39000) Investment property (at cost less accumulated depreciation) Cost of Building given on Operating Lease Less: Accumulated Depreciation Net Block Aggregate amount of unquoted investments .69 191.966 (Previous year 45. of `1 each.69 191.000 (Previous year 1.000) Equity Shares of The Saraswat Co-operative Bank Ltd. ` in crore 2011 2012 12 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 10.97 (Previous year Nil) 114.00.000) Ordinary Shares of Cipla (Mauritius) Ltd. Ltd.001 (Previous year 7. fully paid 60. of USD 1 each.072) Equity Shares of Meditab Specialities Pvt.072 (Previous year 60.36 461.00.00 0.16 0. fully paid Investment in Joint Ventures 1 (Previous year Nil) Ordinary Share of Aspen-Cipla Australia Pty Ltd.12 133. fully paid .`39000 (Previous year .52 0.00 0.16 0.37 347. of `10 each.52 0.33.`461.00.83 0.69 crore) 0. fully paid .00 0.966) Equity Shares of Goldencross Pharma Pvt.16 18.72 3.72 3.`10000 (Previous year .00 0.06 40 . of AUD 1.00.`51.`10000) Investments in Government and Trust Securities National Savings Certificates .333 (Previous year Nil) Ordinary Shares of Biomab Holding Ltd. Ltd.78 18.00 - Other Investments Investments in Equity Instruments (Unquoted) 1. fully paid Investment in Associates 87. of USD 1 each.000 each. fully paid 7.47 crore (Previous year .NOTES TO THE ACCOUNTS contd.

172 4.756 50.15 14 Other Non-Current Assets Fixed Deposits as Margin Money (maturity more than 12 months) 0.24 385.05 19.75 14.20 crore. Ltd.Institutional Growth Birla Sun Life Mutual Fund “Birla Cash Plus” .Growth BNP Paribas Mutual Fund “BNP Paribas Overnight” .Institutional Growth Daiwa Mutual Fund “Daiwa Liquid Fund “ .13.74 crore) paid to wholly owned subsidiary .15 26.01 33.650 1. # 1.Short Term . Considered Good Capital Advances# Unsecured.77 75.20 crore) VAT Receivable Secured against Bank Guarantees * Includes `55.798 30.17.Super Institutional Plan Growth 41 2.84 20.859 18.03 6. ` in crore 2011 2012 13 Long Term Loans and Advances Secured.00 143.00 5.00. Previous year `456.00 10.00 188. of units ` in crore 2011 15 Current Investments Investments in Mutual Funds (Unquoted) Axis Mutual Fund “Axis Liquid Fund” .Institutional Premium Growth Birla Sun Life Mutual Fund “Birla Sun Life Floating Rate Fund” .052 70.90 435.NOTES TO THE ACCOUNTS contd.95.09 17.61 26.51 23.285 1.18. of units 2012 No.IP .65 3.98 70.Meditab Specialities Pvt.52.04 13.570 19.74 crore (Previous year `55.39 25.39 64.71.21.25 11.187 14.000 81.24 No.“Axis Fixed Term Plan” Series 23 (3 Months) .24 0.73.77 173.15 0.Institutional Plan .72.58.00 .Institutional Growth Axis Mutual Fund .775 1.Growth Baroda Pioneer Mutual Fund “Baroda Pioneer Liquid Fund” .Growth Option Deutsche Asset Management “DWS Insta Cash Plus Fund” .50 2012 ` in crore 2011 0.39 70.567 7. Considered Good Capital Advances* Security Deposits MAT Credit Entitlement Receivable Advance Taxes and TDS (Net of Provision for Tax `505.

76. Edelweiss Mutual Fund “Edelweiss Liquid Fund” .Growth Option Reliance Mutual Fund “Reliance Liquid Fund .25 18.Growth Plan Franklin Templeton Mutual Fund “Templeton India Treasury Management Account” .27 35.Super Institutional Growth Union KBC Mutual Fund “UKBC Liquid Fund” .`223.831 1.50 35. ` in crore 2011 No.000 10.85.567 37.82 39.Super Institutional Growth Edelweiss Mutual Fund “Edelweiss Fixed Maturity Plan .81.05 8.85.Super Institutional Growth Tata Mutual Fund “Tata Liquid Super High Investment Fund” .72.Appreciation Taurus Mutual Fund “Taurus Liquid Fund” .Growth IDFC Mutual Fund “IDFC Cash Fund” .249 1.939 31.99.70 13.225 1.991 3.362 74.26 10.500 2.Super Institutional Plan .91.contd.NOTES TO THE ACCOUNTS contd.00 573.15 10.61 223.Institutional Growth Plan Aggregate amount of unquoted investments .Super Institutional Growth Pramerica Mutual Fund “Pramerica Liquid Fund” .765 84.780 2.289 86.44.79. of units 2012 No.59 crore) 1.32 crore (Previous year .00 18.00.Institutional Premium Growth Peerless Mutual Fund “Peerless Liquid Fund” .93.19.34.348 2.092 1.71.623 1.62 11.69.59 42 .33.67.Treasury Plan” Institiutional .00 - - 1.01.Super Institutional Plan Growth HDFC Mutual Fund “HDFC Cash Management “ .25 32.455 88.Series 5” .Super Institutional Growth Option JM Financial Mutual Fund “JM High Liquidity Fund” .584 1.Super Institutional Plan C Growth ING Vysya Mutual Fund “ING Vysya Liquid Fund” .77.502 68.529 3.Growth Option Religare Mutual Fund “Religare Liquid Fund” .00 20.Institutional Growth Option UTI Mutual Fund “UTI Money Market Fund” .92 13.979 97.965 92.595 62.721 22.96.Super Institutional Growth IDBI Mutual Fund “IDBI Liquid Fund” .32 12.`573.66.00 10.68 28.64.41 17.91 42.61 18.00 22.15 32.92.438 1.14.78.52.84.Growth UTI Mutual Fund “UTI Liquid Cash Plan” .898 99.80 10.473 - 18.93 33.63.00 40.42.Savings Plan Growth ICICI Prudential Mutual Fund “ICICI Prudential Liquid Plan” .01 19.Super Institutional Growth Sundaram BNP Paribas Mutual Fund “Sundaram Money Fund” .Growth JP Morgan Mutual Fund “JP Morgan India Liquid Fund” .07.38.017 1.00. of units 15 Current Investments .Super Institutional Growth Plan Kotak Mahindra Mutual Fund “Kotak Liquid” .

81 135.06 69.23c) Raw Materials and Packing Materials (including Stock-in-Transit of `103.55 138.50 878.13 crore.84 crore) Traded Goods 830. Considered Doubtful Outstanding over Six Months Less: Allowance for Doubtful Debts 86.16 84. Previous year `98.49 crore.72 411.40 1.62 13.75 crore) Finished Goods (including Stock-in-Transit of `90.61 1.16 1883.11 1358.04 2012 ` in crore 2011 18 Cash and Bank Balances Cash and Cash Equivalents Balances with Banks Cash on Hand Other Bank Balances Balance earmarked for Unclaimed Dividend Fixed Deposits as Margin Money (maturity less than 12 months) 38.24 55.93 84.42 83. Previous year `119.13 446.74 441. Previous year `16.98 43 .66 1519.79 0.03 crore) Work-in-Process (including Stock-in-Transit of `8.59 1.66 138.84 1824. Considered Good Outstanding over Six Months Others Unsecured.16 1497.37 12.75 crore.31 138.16 2012 ` in crore 2011 17 Trade Receivables Unsecured.76 1432. ` in crore 2011 2012 16 Inventories (Refer Note .NOTES TO THE ACCOUNTS contd.14 410.12 153.

87 9.25 258.25 205.52 2.70 20.46 0.10 205.95 31.61 0.86 2.27 2.72 6398.61 2.NOTES TO THE ACCOUNTS contd.30 Share Application Money .60 771.10 61.46 0.26 330.33 ` in crore 2011 6183.Pending Allotment Capital Subsidy Receivable Balances with Statutory/Revenue Authorities Others* *Includes advances to sundry creditors.25 207.36 8. unless otherwise stated) Inter Corporate Loans Considered Good (includes amounts referred to in Note 39) Considered Doubtful Less: Allowance for Doubtful Loans Interest Accrued on Inter Corporate Loans Considered Good Considered Doubtful Less: Allowance for Doubtful Interest 258.73 20 Other Current Assets Export Incentives Receivable 53.79 2012 ` in crore 2011 85.03 25.36 0.01 80.98 2012 21 Revenue from Operations Sale of Products Sale of Services Export Incentives Technical Know-how/Fees Scrap Sales Others 6904.54 5.64 61.98 53.71 165.29 7074.27 0.46 0.56 0.33 85.28 773.91 27. ` in crore 2011 2012 19 Short Term Loans and Advances Unsecured (Considered good. employee loans and prepaid expenses 41.25 260.73 44 .46 0.49 63.10 0.95 120.90 110.82 0.26 301.

67 ` in crore 2011 7.49 54.83 580.30 45 .65 41.97 36.65 91.29 0.contd. 21 Revenue from Operations .69 303.27 125.64 F.45 31.87 Earnings in Foreign Exchange 2012 3692.91 ` in crore 2011 610.B.83 20.70 1.65 100. Value of Exports Technical Know-how/Fees Others 2012 22 Other Income Interest Income Dividend Income Net Gain on Sale of Current Investment Insurance Claims Rent Sundry Balances Written Back Miscellaneous Income Net Gain on Foreign Currency Transaction and Translation 8.55 6.46 584.36 66.56 505.99 5303.26 36.30 10.17 51.83 36.58 32.33 82.00 146.NOTES TO THE ACCOUNTS contd. Details of Products sold 2012 Manufactured Goods Bulk Drugs Tablets and Capsules Liquids Creams Aerosols/Inhalation Devices Injections/Sterile Solutions Others Traded Goods Bulk Drugs Tablets and Capsules Liquids Creams Aerosols/Inhalation Devices Injections/Sterile Solutions Others 778.17 ` in crore 2011 3361.76 1.54 8.68 6904.31 366.66 831.56 1.68 148.42 3417.23 41.30 105.92 6183.95 214.03 29.03 44.59 3728.23 119.69 37.83 6073.21 3644.97 0.O.96 879.48 75.16 214.16 2.59 337.83 0.41 482.64 52.66 3377.

14 2356.42 105.30 2392.20 555.57 830.90 24.45 211.26 572.30 91.55 46 .14 2449.53 2392.NOTES TO THE ACCOUNTS contd.26 878.12 ` in crore 2011 155.12 2356. ` in crore 2011 2012 23a Cost of Materials Consumed Consumption of Raw and Packing Materials Opening Stock Add: Purchases Less: Closing Stock 878.45 2300.55 796.63 31.41 76.59 558.77 925.85 Break-up of Materials Consumed Class of Goods Bulk Drugs Solvents Capsules Packing Material Others Less: Recoverable Duties (included in the above cost) Total Consumption (Net of Cenvat) Consumption of Raw and Packing Materials/Spares and Components ` in crore Class of Goods Purchased Indigenously Imported Less: Recoverable Duties (included in the above cost) Total Consumption (Net of Cenvat) 2012 Value 1466.83 2356.85 % 61 39 100 2011 Value 1444.81 1005.72 2300.42 29.16 109.14 2253.95 93.03 30.79 29.85 ` in crore 2011 1075.95 93.45 2449.24 102.59 684.45 2300.12 646.00 45.83 2356.26 2588.45 64.30 91.61 107.27 237.60 671.13 % 59 41 100 2012 884.85 2300.12 2012 23b Purchases of Traded Goods Bulk Drugs Tablets and Capsules Liquids Creams Aerosols/Inhalation Devices Injections/Sterile Solutions Others 81.53 26.08 29.00 3234.43 3131.

54 410.31 410.81 9.16 1005.76 5.68 3.54 25.84 ` in crore 2011 110.87 38.29 135.47 4.16 387.33 272.78 317.21 65.06 27.75 4.12 153.13 9.02 411.53 12.11 382.19 97.74 441. ` in crore 2011 2012 23c Changes in Inventories of Finished Goods.02 (138.81 135.74 441.85 20.09 25.78 11.98 33.12 22.58 3.01 866.00 11.84 993.24 Break-up of Inventory 2012 Work-in-Process Formulations Bulk Drugs Finished Goods Bulk Drugs Tablets and Capsules Liquids Creams Aerosols/Inhalation Devices Injections/Sterile Solutions Others Traded Goods Bulk Drugs Tablets and Capsules Liquids Creams Aerosols/Inhalation Devices Injections/Sterile Solutions Others 93.95 153.12 153.42 55.35 411.53 6.80 40.35 55.88 446.16 1005.13 446.20 300.71) 47 .92 33.73 441.10 5.79 284.NOTES TO THE ACCOUNTS contd.67 73.74 19.80 4. Work-in-Process and Traded Goods Opening Stock Work-in-Process Finished Goods Traded Goods Less: Closing Stock Work-in-Process Finished Goods Traded Goods 410.

38 15. a funded scheme is operated by the Company’s Provident Fund Trust.30 2012 Employees’ Pension Scheme Provident Fund 11. based upon which. a defined benefit plan based on actuarial valuation as of the Balance Sheet date. the Company contributes all the ascertained liabilities to the Insurer Managed Funds. which is recognised by the Income Tax authorities and administered through trustees/ appropriate authorities. Provident Fund and Gratuity: The Provident Fund plan. Charge to the Statement of Profit and Loss based on contributions ` in crore 2011 9.31 14.88 26. b. Accordingly. 1952) since the Company has no further obligation beyond making the contributions.33 2012 24 Employee Benefits Expense Salaries and Wages Contribution to Provident and Other Funds Staff Gratuity Staff Welfare Expenses 639. Benefits such as salaries.33 34. to reliably measure provident fund liabilities. Brief description of the plans The Company’s defined contribution plan is Employees’ Pension Scheme (under the provisions of Employees’ Provident Funds and Miscellaneous Provisions Act. etc..88 728.21 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.18 540. ` in crore 2011 471. The Company provides for gratuity. Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states benefit involving employer established provident funds. Pending the issuance of the Guidance Note from the Actuarial Society of India. ii. The Company has two schemes for long term benefits namely. and the expected cost of bonus.16 10. wages. ex-gratia are recognised in the period in which the employee renders the related service. which require interest shortfalls to be recompensed.98 32.47 48 .99 24. are to be considered as defined benefit plans. Long Term Employee Benefits The disclosures as per the revised AS-15 are as under: a. The Guidance Note on implementing the revised AS-15. the Company’s actuary has expressed an inability. the Company is unable to present the related information.49 20.NOTES TO THE ACCOUNTS contd. short term compensated absences. The employees of the Company are also entitled to leave encashment and compensated absences as per the Company’s policy.62 38.11 32.

Actual return on plan assets Expected return on plan assets Actuarial gain/(loss) on plan assets Actual return on plan assets 49 2. c.09 4. 24 Employee Benefits Expense .21 2.03 33.00 (4.74 (0.36) 6.75 (0.69 4.85 15. Amount recognised in Balance Sheet Present value of obligations as at year end Fair value of plan assets as at year end Net asset/(liability) recognised iv.56) 1.38 5.14 2.62 46. Change in defined benefit obligation Opening defined benefit obligation Interest cost Current service cost Actuarial (gain)/loss on obligations Benefits paid Liability at the end of the year ii.21 5.20 10.87 4.08 10.23 2.contd.17 0.06 (4.52 (4.50 (4.03) 17.17) 9.18 .19) 26.52 (29.36 2012 Gratuity (Funded Plan) i. Change in fair value of assets Opening fair value of plan assets Expected return on plan assets Actuarial gain/(loss) Contributions by employer Transfer of plan assets Benefits paid Closing fair value of plan assets iii.NOTES TO THE ACCOUNTS contd.74 5.09 (1.52 33.74 (2.84 1.49 26.19) 33.20 2.75) 5. Disclosures for defined benefit plans based on actuarial reports as on 31st March 2012 ` in crore 2011 Gratuity (Funded Plan) 26.56) 7.17 0.69 2.71) 46.11 1.36 2. Expenses recognised in the Statement of Profit and Loss Current service cost Interest on defined benefit obligation Expected return on plan assets Net actuarial (gain)/loss recognised in the current year Transfer of plan assets Total expense recognised in the Statement of Profit and Loss v.23 21.23 (26.71) 29.

89 14. Experience adjustments Defined benefit obligation Plan assets Deficit/(Surplus) Experience adjustment on plan liabilities .03 (17.68) ` in crore 2011 5.63 50 .21 (3.50 26.58 15.17) 2012 25 Finance Costs Interest Paid Applicable Loss on Foreign Currency Transaction and Translation 12. considered in actuarial valuation.61 0.(gain)/loss Experience adjustment on plan assets .(gain)/loss ix.36 (0. promotion and other relevant factors.NOTES TO THE ACCOUNTS contd.(gain)/loss 46.91 (4. 24 Employee Benefits Expense .87) 9.78 12.14 7.22 0.92 33.06 (0.49) 11.57 2009 20.46) (0.21 2011 33.56) 5. take account of inflation.25% 8.21 6.85 11.36 (6. Expected employer's contribution for the next year Amounts for the current and previous four periods are as follows: ` in crore 2008 17.22 0.30) 2.36) 6.92 10.13 14.23 (26. Asset information Insurer managed funds vii.50% 8.14 21.contd. viii.25% 100% 100% ` in crore 2011 Gratuity (Funded Plan) 2012 Gratuity Defined benefit obligation Plan assets Surplus/(Deficit) Experience adjustment on plan liabilities . 2012 Gratuity (Funded Plan) vi.(gain)/loss Experience adjustment on plan assets . such as supply and demand in employment market.21) 9.02 8.84 (4.36 (0. Principal Actuarial assumptions used Discounted rate (per annum) Expected rate of return on plan assets (per annum) The estimates of future salary increases.67) (2.87 9.23 26.52 29. seniority.50% 8.56) 2010 26.

63 24.45 1799.65 53.Clinical Trials.58 44.16 13.57 211.18 275.53 19.30 50.94 50.04 65.48 4.15 93.50 9.91 0.93 20.67 54.02 0.85 5.NOTES TO THE ACCOUNTS contd.72 45. Samples and Grants Miscellaneous Expenses 218.19 132.80 111.04 183.03 ` in crore 2011 249.48 0.56 23. ` in crore 2011 248.78 7.61 1581.10 36.10 0.01 15.79 51 .32 63.44 225.07 2012 27 Other Expenses Manufacturing Expenses Stores and Spares Power and Fuel Repairs and Maintenance Machinery Buildings Travelling Expenses Sales Promotion Expenses Commission on Sales Rates and Taxes Freight and Forwarding Conveyance and Vehicle Expenses Rent Insurance Remuneration to Auditors Audit Fees Certification Fees Professional Fees Telephone.58 0.72 59.06 50.76 108.65 0.93 0.01 248.07 282.50 36.08 89.37 52.57 14.23 91. Postage and Telegram Directors’ Sitting Fees Contractual Services Donations Provision for Doubtful Debts Loss on Sale of Fixed Assets (Net) Bad Debts Printing and Stationery Research .52 43.85 45.64 109.75 0.47 9.56 139.52 100.48 0.52 2012 26 Depreciation and Amortisation Expense Depreciation on Tangible Assets Amortisation of Goodwill on Acquisition 282.32 25.08 91.

28 24.26 52 .61 25.03 19.67 4.60 20.62 306. ` in crore 2011 2012 28 Research and Development Expenditure The amount of expenditure as shown in the respective heads of account is as under: Capital Expenditure Revenue Expenditure charged to the Statement of Profit and Loss Materials Consumed Employee Benefits Expense Power and Fuel Repairs and Maintenance Manufacturing Expenses Professional Fees Depreciation Research .34 32.14 21.79 284.88 45.11 21.17 24.NOTES TO THE ACCOUNTS contd.83 15.83 Amount eligible for weighted deduction under section 35(2AB) of the Income Tax Act.64 19.39 172.42 23.Clinical Trials and Grants Other Expenditure 25.43 323.11 76. 1961 Capital Expenditure Revenue Expenditure Employee Benefits Expense Raw Materials and Consumables Research .74 179.39 1391.48 ` in crore 2011 12.18 52.85 17.97 4.22 51.92 25.38 27.04 41.64 28.18 2012 30 Value of Imports on C.08 155.32 29.50 1133.44 156.07 4.02 83.06 28.90 2012 29 Net difference in foreign exchange credited to the Statement of Profit and Loss 52.99 28.42 146. basis Raw Materials and Packing Materials Components and Spare Parts Capital Goods 954.30 22.87 12.80 56.87 ` in crore 2011 1170.40 44.09 131.F.75 259.13 20.11 19.76 3.22 17.Clinical Trials and Grants Printing and Stationery Travelling Expenses Other Research and Development Expenses 17.77 41.I.

20 0. segment information has been given in the Consolidated Financial Statements of Cipla Ltd.18 195. no separate disclosure on segment information is given in these financial statements. The Company has given refundable interest free security deposits in accordance with the agreed terms.59 2012 31 Expenditure in Foreign Currency Legal and Professional Charges Royalties Interest Commission Other Matters – Travelling.11 993.29 171. ` in crore 2011 23.08 119. Where the Company is a Lessor The Company has given certain premises under operating lease or leave and license agreement. etc. 35.94 32 Lease Accounting Where the Company is a Lessee The Company has obtained certain premises for its business operations (including furniture and fixtures. or longer for other lease and are renewable by mutual consent on mutually agreeable terms.69 373.52 32.  Lease payments are recognised in the Statement of Profit and Loss under ‘Rent’ in  Note 27. These are generally not non-cancellable and range between 11 months to 5 years under leave and licence.21 ` in crore 2011 460.03 Note: The Company uses forward contracts/derivatives for hedging purposes and/or reducing interest costs.86 214.  Lease income on such operating lease is recognised in the Statement of Profit and Loss under ‘Rent’ in Note 22.73 0. and therefore. 34 Segment Information In accordance with AS-17 ‘Segment Reporting’.NOTES TO THE ACCOUNTS contd. 53 .07 220.29 28.74 402..24 128. The Company retains substantially all risks and benefits  of ownership of the leased asset and hence classified as operating lease. therein as applicable) under operating lease or leave and license agreements. 33 Foreign Exchange Derivatives and Exposures outstanding at the year end Nature of Instrument Forward contracts – Sold Forward contracts – Bought Foreign currency options Unhedged foreign exchange exposures Receivables Payables 401.10 Currency USD USD USD Cross Currency INR INR INR 2012 1105.

44 49. the District Court is required to initiate hearings to determine the award for damages. Hence no provision is considered necessary in respect of notice of demand aggregating to `1654.67 1110. 38 In 2003. 54 .51 20. Therefore.46 crore along with interest due thereon is payable into the DPEA under the Drugs (Prices Control) Order.21 956.64 59. The Hon’ble Supreme Court by separate orders restored the matter to the jurisdictional High Court for interpreting the Drug Policy on the basis of directions and principles laid down by them and also restrained the Government from taking any coercive action against the Company.54 7. claiming that an amount of `5.93 528.92 crore (inclusive of principal amount for the period July 1995 to April 2009 and interest upto January 2012).NOTES TO THE ACCOUNTS contd. 37 The Government of India has served demand notices in March 1995 and May 1995 on the Company in respect of six bulk drugs.82 1320. 1979.23 4.07 218.19 179.02 363. 1979 on account of alleged unintended benefit enjoyed by the Company.75 27. the Company received notice of demand from the National Pharmaceutical Pricing Authority. Pursuant to this.64 363. which has not yet commenced. The Company has been legally advised that on the basis of these orders there is no probability of demand crystallising.61 665.25 1. ` in crore 2011 2012 35 Contingent Liabilities and Commitments (to the extent not provided for) Contingent Liabilities Claims against the Company not acknowledged as Debt Guarantees Letters of Credit Refund of Technical Know-how/Fees on account of noncompliance of certain obligations as per respective agreements Income Tax Excise Duty/Service Tax Sales Tax Commitments Estimated Amount of Contracts unexecuted on Capital Account Other Commitments 291.88 100. This was contested before the jurisdictional High Courts wherein it was held in favour of the Company.45 204.97 36.73 29. Government of India on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order. it is now not possible to make any reliable estimate of the liability that may come about and accordingly no provision is made in the accounts.96 1. the US District Court issued an injunction and the Federal Circuit Court at Washington upheld this order. The orders were challenged before the Hon’ble Supreme Court by the Government.29 36 In a proceeding instituted against the Company for patent infringement of an animal health care product.55 3. 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.74 747. The Company is also examining further legal remedies as may be advised.

Loans given to employees as per the Company’s policy are not considered. has made the following investments in its subsidiaries 40 Related Party Disclosures i. Ltd. of shares Goldencross Pharma Pvt. Sitec Labs Pvt. 39 Loans and Advances in the nature of Loans given to Subsidiaries and Associates Sr. Subsidiaries (held indirectly) Cipla (UK) Ltd. b. Ltd. Notes: Goldencross Pharma Pvt.47 i. ii. Ltd.000 2. 4. Meditab Specialities New Zealand Ltd. is interest-free. No. Ltd. Meditab Pharmaceuticals South Africa (Pty) Ltd. 58.81 15. 2. Cipla (Mauritius) Ltd.100 Meditab Specialities Pvt. Meditab Holdings Ltd. a.00 189. Ltd. iii. Ltd.00 242. Four M Propack Pvt.50 248. STD Chemicals Ltd. 55 . No. 3. 10. 8. Medispray Laboratories Pvt. Four M Propack Pvt.21 219. Cipla-Oz Pty Ltd. a. Meditab Specialities Pvt.31 As at 31st March 2011 ` in crore Maximum balance during the year 69. Ltd. b.000 100 30. Ltd. No. Ltd. Ltd.NOTES TO THE ACCOUNTS contd. Ltd. 2. Medispray Laboratories Pvt. Name of the Company Nature As at 31st March 2012 Maximum balance during the year 30. 1.100 51. 9. The related parties where control exists or where significant influence exists and with whom transactions have taken place: a. Meditab Specialities Pvt.020 10. Ltd. 6. has made the following investments in its subsidiaries Meditab Holdings Ltd.20.42 1. 5. Ltd. Name of the Company Subsidiaries (held directly) Cipla FZE Goldencross Pharma Pvt. Loan given to Meditab Specialities Pvt. Subsidiary Subsidiary 15.96. c. 7. The above loans are repayable on demand. has made the following investment in its subsidiary a. Subsidiary Companies including step-down subsidiaries and associate companies: Sr. Sitec Labs Pvt.

Hamied – Chairman and Managing Director 2. Ltd. Ltd. 56 . (w. Cipla İlaç Ticaret Anonim Şirketi (w. Y.f.f. 1st July 2011) d. Hamied – Joint Managing Director 3. 4th November 2011) Key Management Personnel: 1. 10th February 2012) Joint Venture Aspen-Cipla Australia Pty Ltd. 19. 20th February 2012) Associates Quality Chemical Industries Ltd. Meditab Pharmaceuticals South Africa (Pty) Ltd. Mr.contd. Sr. 16. Entities over which Key Management Personnel are able to exercise significant influence: 1.f. M. 13.K. 17. Biomab Holding Ltd.e. 1st September 2011) Jiangsu Cdymax Pharmaceuticals Co. (w. Mr.e. 14. 12.e. b. No.K. 18. 40 Related Party Disclosures . Radhakrishnan – Whole-time Director Relatives of Key Management Personnel: 1. Name of the Company Meditab Holdings Ltd. Okasa Pvt. Ltd.f. 4. Meditab Specialities New Zealand Ltd. Okasa Pharma Pvt. 3. Mr.e. (w. Samina Vaziralli (w. Ltd.f. Cipla Foundation c. S. Cipla Public Charitable Trust 2. Mrs. Dr. 11. Stempeutics Research Pvt. 15.e. Kamil Hamied 2.NOTES TO THE ACCOUNTS contd.

97 1.39 0.90 46.67 16.67 18.10 182.00 29.35 6.86 6.31 0.11 21.51 11.25 15.03 22.10 1.70 179.01 189.36 54.25 1.50 114.52 0.86 46.00 252. ii.26 96.29 34.73 2012 2011 2012 1.53 20.13 225.86 1.19 1.93 158.32 1.60 64.01 1. Meditab Specialities Pvt.28 17.00# 20.78 112.contd.83 338. Ltd.39 0.25 33.97 2011 1.00** 112.50 76. B. Transactions during the year with related parties: ` in crore Particulars Subsidiaries Associates/ Joint Venture Key Management Personnel and relatives 2012 2011 Entities over which Key Management Personnel exercise significant influence 2012 2011 Total 2012 Receipts Interest Others Loans repaid Investment in Equity Loans given Remuneration Purchase of Goods Processing charges paid Testing & Analysis charges paid Research Grants paid Freight charges paid Sale of Goods Sale of Fixed Assets Advances paid against Services Processing charges received Service charges paid Donations given Purchase of Shares Rent paid Balances at end of the year Outstanding payables Outstanding receivables 17.00* 0.79 16.97 2011 1.54 0.29 # `45000 Disclosures in respect of material related party transactions during the year: 2012 A.24 21.02 0.03 70.10 186.94 22.50 0.84 1.93 178.50 149.50 59.33 6.25 328.41 1.97 1.78 0.02 0.41 8.00* 179.07 0.95 59.00* 179. 40 Related Party Disclosures .86 0.01 1.31 0.34 2. Ltd. 30.13 247. Ltd. Loans repaid Goldencross Pharma Pvt.46 0.35 1.17 114.46 10.39 27.55 102.76 314. Interest received Goldencross Pharma Pvt.74 453.50 0.95 10.11 198.74 58.NOTES TO THE ACCOUNTS contd.84 18.34 0.93 29.00 252.32 5.37 6.04 41.62 33. Meditab Specialities Pvt.53 1.41 1.07 22.14 29.49 5.25 24.87 * `20040 ** `50.83 1.67 0.00* 59.25 328.73 ` in crore 2011 57 .21 0. Ltd.73 0.69 1.

00 27. Ltd. 2012 C. Hamied Mr. M. Samina Vaziralli F.61 15. Investment in Equity Goldencross Pharma Pvt. Cipla (Mauritius) Ltd. Four M Propack Pvt.00* 0. Biomab Holding Ltd.03 6.67 252.14 18.12 133. Hamied Late Mr. Meditab Specialities Pvt.NOTES TO THE ACCOUNTS contd. Ltd. 40 Related Party Disclosures . Ltd. Medispray Laboratories Pvt. Y. Purchase of Goods Goldencross Pharma Pvt. Ltd.64 3. Ltd.21 10.89 2.51 12.00** 114.84 112.96 3.36 2. E.02 4.78 114. Ltd.94 5.20 16.00 82. Remuneration Dr. Ltd. Radhakrishnan Mr. Aspen-Cipla Australia Pty Ltd.13 167. Ltd. Ltd. Ltd. Mediorals Laboratories Pvt.53 54. Ltd. Meditab Specialities Pvt. Advanced Remedies Pvt.Ltd.27 9.52 7. Meditab Specialities Pvt.61 453.57 2.30 32. Meditab Specialities Pvt. Ltd.84 6. Mediorals Laboratories Pvt. Ltd. Kamil Hamied Mrs. Ltd.90 58 ` in crore 2011 191. Shanghai Desano Pharmaceuticals Co.contd.21 11. S. Okasa Pharma Pvt.84 0. Shanghai Desano Chemical Pharmaceutical Co.78 30. Loans given Goldencross Pharma Pvt. D.74 169. Advanced Remedies Pvt.30 33.40 0. Ltd.72 3. Ltd. Amar Lulla Mr.16 63. Okasa Pvt.K. Ltd. Okasa Pharma Pvt.32 1. Ltd.00 225.68 8.93 .67 6. Medispray Laboratories Pvt.34 25. Ltd. Ltd. Processing charges paid Goldencross Pharma Pvt.62 2.22 0.16 328.K.25 11.98 174.66 25.63 9. G. Okasa Pvt.91 2.10 3.81 247.58 8.09 0.04 0. 0.65 5.56 0.

46 29. M. Ltd. Mediorals Laboratories Pvt.53 0.04 5. Research Grants paid Stempeutics Research Pvt.19 2.37 0.45 1. Freight charges paid Four M Propack Pvt. Four M Propack Pvt. Ltd. Ltd.01 1.10 0.01 16. Ltd. Medispray Laboratories Pvt.37 158.41 56. Ltd.91 10.05 14. Advanced Remedies Pvt.31 1.25 2. Ltd.42 1. Testing & Analysis charges paid Sitec Labs Pvt. Ltd.53 10. Quality Chemical Industries Ltd.03 1.95 46. Okasa Pvt.76 0. Meditab Specialities Pvt. Okasa Pharma Pvt. Ltd. Ltd. K. Mediorals Laboratories Pvt.80 0.46 8. Advanced Remedies Pvt.34 0. Ltd.35 59 ` in crore 2011 29.55 0. Ltd.39 1.95 10.01 0. Ltd. Shanghai Desano Chemical Pharmaceutical Co. Sale of Goods Goldencross Pharma Pvt.contd. Processing charges received Meditab Specialities Pvt. 2012 H. Meditab Specialities Pvt.37 6.69 .55 92. Ltd. Sale of Fixed Assets Meditab Specialities Pvt.91 0. 40 Related Party Disclosures .39 0.05 0. Okasa Pharma Pvt.14 0. Ltd. L.86 198. N.36 178.97 0. Ltd.23 1.33 4.NOTES TO THE ACCOUNTS contd. Ltd.03 0. Sitec Labs Pvt. Ltd. I.10 6.82 0. Ltd. Ltd. J.01 0. Ltd.30 0. Okasa Pvt. Advances paid against services Stempeutics Research Pvt.34 0. Ltd. 46. Ltd. Medispray Laboratories Pvt.43 2.

02 0. Mediorals Laboratories Pvt.03 0.00# 0. Ltd.13 0.83 5. 2012 O. Ltd.31 5.15 2.46 0.34 70.03 0. 40 Related Party Disclosures .37 0.63 4.06 1.79 0.40 6. 3. Ltd.72 7.38 0.50 ` in crore 2011 60 . Outstanding payables Goldencross Pharma Pvt. Cipla-Oz Pty Ltd.32 0.41 4. Ltd.23 7.41 0. S.NOTES TO THE ACCOUNTS contd.contd. Sitec Labs Pvt.69 10. Ltd. R.61 1. Ltd.37 0. Ltd. Okasa Pvt.55 0. Medispray Laboratories Pvt. Cipla (UK) Ltd. P. Ltd.60 6.51 0.01 0. Medispray Laboratories Pvt. Service charges paid STD Chemicals Ltd.68 1. Cipla (UK) Ltd.12 9.66 0. Donations given Cipla Public Charitable Trust Cipla Foundation Q.31 0. Rent paid Okasa Pvt. Ltd.42 8. Okasa Pharma Pvt.13 20.51 1.42 34. Ltd.69 12. STD Chemicals Ltd. Shanghai Desano Pharmaceuticals Co. Cipla-Oz Pty Ltd.00 5.10 0. Four M Propack Pvt. Shanghai Desano Chemical Pharmaceutical Co.28 0. Globus Healthcare Ltd.34 1.29 0. Ltd. Advanced Remedies Pvt. Ltd.02 1. Purchase of Shares Good Earth Remedies Ltd.79 0.

93 *`50. Manchanda Ramesh Shroff V. Chartered Accountants Firm Reg.09 1.21. Meditab Specialities Pvt. 7th June 2012 61 . 41883 2012 1123. Sitec Labs Pvt.21 0. Shanghai Desano Chemical Pharmaceuticals Co. Rangarajan Partner Membership No. 2012 T.G. Shanghai Desano Pharmaceutical Investment Co.39 6.39 80. Ltd.S. Ltd. 15. Outstanding receivables Goldencross Pharma Pvt.03 15. Quality Chemical Industries Ltd.86 1. Kotwal M. 40 Related Party Disclosures . 109208W V.81 2. of Shares Outstanding Basic and Diluted Earnings per share Face value per share As per our report of even date For V. Hamied Joint Managing Director V.R. 17748 For R.K. No.96 `2.00 296.00 Y. Ltd.14 39.48 0.00 `2.21 41 Basic and Diluted Earnings per share has been computed as under Profit After Tax (` in crore) Weighted Average No. Hamied Chairman & Managing Director S.29. Radhakrishnan Whole-time Director H. Sankar Aiyar & Co. Ltd. Price & Co.96 80.33 12. 7th June 2012 Mumbai.K.NOTES TO THE ACCOUNTS contd. Mediorals Laboratories Pvt.97 # `45000 ` in crore 2011 51.29 ** `51. Ltd.54 6.R. Medispray Laboratories Pvt. Ltd.357 `14.N. Ltd. No.357 `11. Ltd.00 M. Stempeutics Research Pvt. Okasa Pharma Pvt.29 182. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.. 002785S R. Chartered Accountants Firm Reg. Okasa Pvt. Raghavan Pankaj Patel Directors 2011 960. Ltd.10 56.21.32 16. Ltd.29.C. Mohan Partner Membership No.contd..55 338.

60) 4.28 0.00* (114.23 36.56 1400.30) 19.78) 0.09 1151.66 167.88 8.78) (687.85 (2.13 (27.36 (322.29) (0.88) 1243.83) 309.97) (36.56 1967.65) 249.29 2.82 236.58) 267.83 (53.46 282.18) 5251.55 (1136.54) (7468.64) (328.08 58.07 (255.19) (370.CASH FLOW STATEMENT ` in crore 2011 For the year ended 31st March 2012 2012 A Cash Flow from Operating Activities Net profit before tax Adjustments for: Depreciation and Amortisation expense Interest expense Unrealised foreign exchange gains (Net) Provision for doubtful debts and advances (Net) Interest income Dividend income Profit on sale of investments (Net) Loss on sale/discard of fixed assets (Net) Rent income Operating profit before working capital changes Adjustments for : (Decrease)/Increase in trade payables and other liabilities Decrease/(Increase) in inventories Decrease in trade and other receivables Cash generated from operations Direct taxes paid (Net) Net cash from operating activities 1421.10) (5228.34 1730.07 12.25 11.56) 36.34) (1046.97) (0.97 1.89 (157.76) 12.95 (55.50 (8.41) 0.67 (204.26) (B) .34 (A) B Cash Flow from Investing Activities Purchase of fixed assets/Capital work-in-progress Sale of fixed assets Purchase consideration for acquisition of undertaking Investment in subsidiaries Investment in associates Investment in joint venture Share application money Purchase of other investments Sale of other investments Interest received Dividend received Rent received Loans given to subsidiaries (Net) Short term deposits repaid (Net) Net cash used in investing activities 62 (548.27) 1645.48 (7.03 5.80 10.78 (1.47) 64.07) 7118.56) 54.92 9.00) (8.54) (8.39 248.73) 987.14 (5.00** (33.57 (30.

Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.29 ** `51. Cash and Cash Equivalents includes `13. ii.. Price & Co. Chartered Accountants Firm Reg.CASH FLOW STATEMENT contd. Kotwal M.N.C. No.58) (26.39) (5.59 crore (Previous year `12. Rangarajan Partner Membership No. Cash and Cash Equivalents represent cash and bank balances and fixed deposits with banks.13) (160. Raghavan Pankaj Patel Directors M. Sankar Aiyar & Co. Hamied Joint Managing Director V.R. 17748 For R. Manchanda Ramesh Shroff V.K.67) (64.14 60.R. 109208W V.05) (C) (A)+(B)+(C) (627.92) 83. As per our report of even date For V. 41883 Y.98 2012 C Cash Flow from Financing Activities Proceeds from long term and other borrowings Repayment of long term and other borrowings Interest paid Dividend paid Tax paid on dividend Interim dividend paid Tax paid on interim dividend Net cash from/(used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and Cash Equivalents as at the beginning of the year Cash and Cash Equivalents as at the end of the year * `50. No.67) 172. ` in crore 2011 867.58) (26. 002785S R. Mohan Partner Membership No.S. Radhakrishnan Whole-time Director H.84 83. which are not available for use by the Company.74 (428.47) (12.23) (10. Chartered Accountants Firm Reg.K.06 23. 7th June 2012 63 .00 (628.G.06 Notes: i. 7th June 2012 Mumbai..14) (160.23) (28.98 55. Hamied Chairman & Managing Director S.97 200.79 crore) on account of unclaimed dividend.

04 (0.5066 1.70 0.91 157.55 9.0000 81.10) 0.05 41.04 20.56 0.09) Mauritius U.00* (0.23 0.6275 41. Raghavan Pankaj Patel Directors .61 48. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.36 42.35 5.8525 52.78 (2.R.29 (0.73 0.96 47.K.02 0.0000 50.` in crore Reporting Currency Exchange Rate on 31. Australia Turkey India India India Mauritius South Africa .S. Capital Reserves Total Assets Total Liabilities Investment other than investment in subsidiary Turnover Profit before Taxation Provision for Taxation Profit after Taxation Proposed Dividend Country Sr.01 0.14 (0. 10 Meditab Pharmaceuticals South Africa (Pty) Ltd.93 11.43 233. Ltd.08 0. Name of the Subsidiary Company 1 USD GBP AED AUD TRY INR INR INR USD ZAR NZD INR INR GBP Cipla (Mauritius) Ltd.80 0. Radhakrishnan Whole-time Director H.12) 0. 7th June 2012 13 Sitec Labs Pvt.74 384.04) (5. 11 Meditab Specialities New Zealand Ltd.4575 13.47 0. Ltd.0000 1.59 0.53 0. Hamied Joint Managing Director V.89) 0. * `662.69 (48.0000 1.22 0.51 0.32 357.12 3.15 2. 3 Cipla FZE 4 Cipla-Oz Pty Ltd. Manchanda Ramesh Shroff V.00 0.42 0.03) 0.56 (0. INFORMATION ON SUBSIDIARIES 64 M.98 88.02 (0.8750 6.03 0.05 193. 14 STD Chemicals Ltd. Ltd.59 (0.01 4.42 0.A.12) (0.26 0.35 1.2012 50.0000 1.8750 81.93) 17.New Zealand India India U.14 0.30 0.36 187.4575 1.60 25.K.24 13. 2 Cipla (UK) Ltd.09) (0.01) (0.03 0.02) (0.E.05 0.04) (5. 9 Meditab Holdings Ltd.73 1.02) 150.90 52.03.17 283.15) 3.39 39.R. Hamied Chairman & Managing Director S.08 (0.K.65 15.89 0.01 (0.24) 10. 7 Goldencross Pharma Pvt.13 1.25) (0.91 0.33 9.02 0.16 1.27 0.13 50. 12 Meditab Specialities Pvt. No. Kotwal M.06 (0.13 (0.10) 0.88 0.67 0.K. Ltd.9100 28.22 0.75 Y.50) 289. 8 Medispray Laboratories Pvt.73 2.28 0.36) 1. U.30 3.C.06 14.10) (0.10) 0.93 57.36 0. 5 Cipla İlaç Ticaret Anonim Şirketi 6 Four M Propack Pvt Ltd.55 16.32 0.8075 1.05 0.

Based on our audit as aforesaid. attention is drawn to Note 32 appearing in the attached financial statements regarding nonprovisioning for potential financial liability towards damages payable by the Company since such liability cannot be reliably estimated as on date. Price & Co. These consolidated financial statements are the responsibility of the Company’s Management and have been prepared on the basis of separate financial statements and other financial information regarding components. 7. 3. and on consideration of reports of other auditors on the separate financial statements/consolidated financial statements and on the other financial information of the components and to the best of our information and according to the explanations given to us. as well as evaluating the overall financial statement presentation. 6. We believe that our audit provides a reasonable basis for our opinion. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us. We report that the consolidated financial statements have been prepared by the Company’s management in accordance with the requirements of Accounting Standard (AS) 21. 109208W V. which reflect total assets of `632. We have conducted our audit in accordance with the auditing standards generally accepted in India. 17748 Mumbai. For V. In the case of the consolidated Balance Sheet. 8. The unaudited financial statements/consolidated financial statements as approved by the respective Board of Directors of these companies have been furnished to us by the Management and our report in so far as it relates to the amounts included in respect of the associates is based solely on such approved unaudited financial statements/consolidated financial statements. total revenue of `104.46 crore for the year then ended have been audited by one of us. total revenue of `211. Without qualifying. and also the consolidated Statement of Profit and Loss and the consolidated Cash Flow Statement for the year ended on that date annexed thereto. evidence supporting the amounts and disclosures in the financial statements. No. We did not audit the financial statements of certain subsidiaries. An audit includes examining. 41883 Mumbai. on a test basis.00 crore and net cash outflows of `0. 002785S R.. 4. 7th June 2012 . We have relied on the unaudited financial statements of associates wherein the Group’s share of profit aggregates to `2.AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF CIPLA LIMITED AND ITS SUBSIDIARIES 1. Rangarajan Partner Membership No. whose financial statements reflect total assets of `423.. of the cash flows of the Group for the year ended on that date. ii.N. Mohan Partner Membership No. Financial statements of certain subsidiaries. Chartered Accountants Firm Reg. An audit also includes assessing the accounting principles used and significant estimates made by the Management.16 crore and net cash inflows of `23. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. of the state of affairs of the Group as at 31st March 2012.75 crore for the year then ended. of the profit of the Group for the year ended on that date. In the case of the consolidated Statement of Profit and Loss. we are of the opinion that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: i. We have audited the attached consolidated Balance Sheet of Cipla Limited (the Company) and its subsidiaries (collectively referred to as the Group). 7th June 2012 65 2.94 crore. Sankar Aiyar & Co. In the case of the consolidated Cash Flow Statement. For R. and our opinion is based solely on the report of other auditors. Accounting for Investments in Associates in Consolidated Financial Statements as notified by the Companies (Accounting Standards) Rules. 5. Chartered Accountants Firm Reg. Consolidated Financial Statements and AS-23.04 crore as at 31st March 2012.97 crore as at 31st March 2012.G. No. as at 31st March 2012. 2006. Our responsibility is to express an opinion on these financial statements based on our audit. and iii.

26 601. 41883 12 13 14 15 16 17 18 19 20 21 1 to 39 3215. 7th June 2012 66 .82 95.77 5. Hamied Chairman & Managing Director S.94 53.18 401.58 90.88 235. Chartered Accountants Firm Reg. Sankar Aiyar & Co.24 31. No. Price & Co. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.20 940. Hamied Joint Managing Director V. Kotwal M.94 523.52 1850.25 Y.08 1553.. No. 109208W V.78 9350.65 Assets Non-Current Assets Fixed Assets Tangible Assets Intangible Assets Capital Work-in-Progress Non-Current Investments Long Term Loans and Advances Other Non-Current Assets Current Assets Current Investments Inventories Trade Receivables Cash and Bank Balances Short Term Loans and Advances Other Current Assets Notes to the Accounts As per our report of even date For V.34 367.97 641. Manchanda Ramesh Shroff V. Mohan Partner Membership No.92 213.17 328.24 5.69 619.46 579. 17748 For R.06 720.05 223.K.79 371.25 160.29 361.59 1906.R.45 11.28 219.32 8596. Chartered Accountants Firm Reg. 002785S R.65 M.98 9350.G. Radhakrishnan Whole-time Director H.18 285.16 1490.C. Rangarajan Partner Membership No.58 6505.20 233.S.R.35 2.K. Raghavan Pankaj Patel Directors 3094.CONSOLIDATED BALANCE SHEET ` in crore 2011 As at 31st March 2012 Notes 2012 Equity and Liabilities Shareholders’ Funds Share Capital Reserves and Surplus Non-Current Liabilities Long Term Borrowings Deferred Tax Liabilities (Net) Long Term Provisions Current Liabilities Short Term Borrowings Trade Payables Other Current Liabilities Short Term Provisions 3 4 5 6 7 8 9 10 11 160.N.26 85.33 8596.55 17.58 7478.12 0.70 211. 7th June 2012 Mumbai..

CONSOLIDATED STATEMENT OF PROFIT AND LOSS
` in crore 2011 6392.28 68.44 6323.84 91.68 6415.52 2384.07 529.98 (138.87) 565.59 25.10 273.33 1613.83 5253.03 1162.49

For the year ended 31st March 2012

Notes 22

2012 7128.82 108.11 7020.71 139.52 7160.23 2326.35 407.30 5.65 772.52 38.34 312.22 1850.04 5712.42 1447.81

Income
Revenue from Operations (Gross) Less: Excise Duty Revenue from Operations (Net) Other income

23

Expenditure
Cost of Materials Consumed Purchase of Traded Goods Changes in Inventories of Finished Goods, Work-in-Process and Traded Goods Employee Benefits Expense Finance Costs Depreciation and Amortisation Expense Other Expenses 24a

24b 25 26 27 28

Profit Before Tax Tax Expense
Current Tax MAT Credit (entitlement)/utilisation Deferred Tax

286.39 20.12 1141.30 2.94 1144.24

232.01 (70.00) 33.21 967.27 0.14 22.44 989.57

Profit after tax for the year before share of Profit from Associates
Less: Tax of Prior years Share of Profit/(Loss) from Associates

Profit for the Year Earnings per share of face value of `2 each
Basic and Diluted Notes to the Accounts
As per our report of even date For V. Sankar Aiyar & Co., Chartered Accountants Firm Reg. No. 109208W V. Mohan Partner Membership No. 17748 For R.G.N. Price & Co., Chartered Accountants Firm Reg. No. 002785S R. Rangarajan Partner Membership No. 41883

39 1 to 39
Y.K. Hamied Chairman & Managing Director S. Radhakrishnan Whole-time Director H.R. Manchanda Ramesh Shroff V.C. Kotwal M.R. Raghavan Pankaj Patel Directors

`14.25

`12.32

M.K. Hamied Joint Managing Director V.S. Mani Chief Financial Officer Mital Sanghvi Company Secretary

Mumbai, 7th June 2012

Mumbai, 7th June 2012

67

NOTES TO THE CONSOLIDATED ACCOUNTS
1 Significant Accounting Policies
A Basis of Preparation The consolidated financial statements are prepared under the historical cost convention on accrual basis in accordance with the Companies (Accounting Standards) Rules, 2006 issued under section 211(3C) of the Companies Act, 1956. During the financial year ended 31st March 2012 the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its financial statements. The Company has also re-classified the previous year figures in accordance with the requirements applicable in the current year. 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 Principles of Consolidation The consolidated financial statements relate to Cipla Ltd. (the ‘Company’), its subsidiaries and associates. The consolidated financial statements have been prepared on the following basis: a. The financial statements of the Company and its subsidiaries have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group transactions and resulting unrealised profits or losses. Unrealised losses resulting from intra-group transactions are eliminated unless cost cannot be recovered. The difference between the cost of investment in the subsidiaries, over the net assets at the time of acquisition of the shares in the subsidiaries is recognised in the financial statements as Goodwill/Capital Reserve as the case may be. Entities in which the Company has significant influence but not a controlling interest are considered as associates and investment therein are reported according to the equity method i.e. the investment is initially recorded at cost identifying any Goodwill/Capital Reserve arising at the time of acquisition. The carrying amount of the investment is adjusted thereafter for the post acquisition change in the investor’s share of net assets of the associate, based on the available information. The consolidated Statement of Profit and Loss includes the investor’s share of Profit/Loss of the operations of the associate. The financial statements of the subsidiaries and associates used in consolidation are drawn up to the same reporting date as of the Company. The consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner, as the Company’s separate financial statements. The subsidiaries and associates considered in the consolidated financial statements are: Name of the Company Country of Incorporation % ownership interest as at 31st March 2012 With effect from

b.

c.

d. e.

f.

Subsidiaries (held directly) Cipla FZE Goldencross Pharma Pvt. Ltd. United Arab Emirates India 100 100 04/10/2006 14/05/2010

68

NOTES TO THE CONSOLIDATED ACCOUNTS contd.
Name of the Company Country of Incorporation Mauritius India % ownership interest as at 31st March 2012 100 100 With effect from 27/01/2011 01/10/2010

Cipla (Mauritius) Ltd. Meditab Specialities Pvt. Ltd. Subsidiaries (held indirectly) Four M Propack Pvt. Ltd. Cipla (UK) Ltd. Cipla-Oz Pty Ltd. STD Chemicals Ltd. Medispray Laboratories Pvt. Ltd. Sitec Labs Pvt. Ltd. Meditab Holdings Ltd. Meditab Pharmaceuticals South Africa (Pty) Ltd. Meditab Specialities New Zealand Ltd. Associates Quality Chemical Industries Ltd. Stempeutics Research Pvt. Ltd. Biomab Holding Ltd. Jiangsu Cdymax Pharmaceuticals Co. Ltd. Notes: i.

India United Kingdom Australia United Kingdom India India Mauritius South Africa New Zealand

100 100 100 100 100 100 100 100 100

14/05/2010 27/01/2011 04/03/2011 27/01/2011 01/10/2010 01/10/2010 01/10/2010 14/01/2011 21/01/2011

Uganda India Hong Kong China

36.55 49 25 48.22

01/10/2010 01/10/2010 01/09/2011 10/02/2012

On 20th February 2012, Cipla Ltd. (the Company) through its subsidiary/step down subsidiaries acquired a wholly owned subsidiary Cipla İlaç Ticaret Anonim Şirketi, Turkey. Its first accounting period shall end on 31st December 2012. In view of the Management, as there are no significant transactions from the date of acquisition till 31st March 2012, other than transaction related to investment mentioned herein, its consolidation is not considered necessary. The Company through its subsidiary/step down subsidiaries has invested `0.14 crore in Cipla İlaç Ticaret Anonim Şirketi, Turkey towards 50,000 fully paid-up shares of TRY 1 each. In September 2011, the Company entered into an agreement with Aspen Pharma Pty Ltd., Australia to form a Joint Venture entity Aspen-Cipla Australia Pty Ltd. Its first accounting period shall end on 30th June 2012. In view of the Management, as there are no significant transactions from the date of acquisition till 31st March 2012, other than transaction related to investment mentioned herein, its consolidation is not considered necessary. The Company has invested `51.97 in Aspen-Cipla Australia Pty Ltd. towards 1 fully paid-up ordinary share of AUD 1.

ii.

iii. During the year Meditab Specialities Pvt. Ltd. and Meditab Holdings Ltd. (together referred to as “Meditab Group”) entered into an agreement to dispose of its investment in Desano Holdings Ltd. for USD 78 million (equivalent `396.82 crore). Towards the said sale of investment, the Meditab Group has received partial consideration during the year ended 31st March 2012 and the balance consideration has been received in April 2012.

69

The Effects of Changes in Foreign Exchange Rates. The depreciation on fixed assets in Indian subsidiaries is provided on Written Down Value method at the rates and in the manner prescribed under Schedule XIV to the Companies Act. In respect of forward contracts. where the actual cost does not exceed `5000 have been written off entirely in the year of acquisition. The resultant translation exchange gain/loss. Foreign branches are identified as integral foreign operations. other than investment in associates. Monetary assets and liabilities of the branch are restated at the year end rates. 70 . are stated at cost. All transactions are transferred at rates prevailing on the date of transaction. the premium or discount on these contracts is recognised as income or expenditure over the period of the contract. the consideration is apportioned to fixed assets on fair value basis. D Fixed Assets Fixed Assets are stated at cost of acquisition (net of recoverable taxes and Government grants and other subsidies. Cost of inventories is computed on weighted average basis. wherever applicable. Foreign currency monetary assets & liabilities and forward contracts are restated at year end exchange rates. All individual items of fixed assets. are recognised as income or expense in the year in which they arise. 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. conversion costs and other costs incurred in bringing the inventories to their present location and condition. Where several fixed assets are acquired for consolidated price. E Depreciation Depreciation on fixed assets is provided by the Company on the Straight Line Method at the rates and in the manner prescribed under Schedule XIV to the Companies Act. All the assets and liabilities are translated using exchange rate prevailing at the Balance Sheet date and income/expenditure are translated using average exchange rate prevailing during the reporting period. if any. less provision for diminution (other than temporary) in value. labour. have been disclosed as “Foreign Currency Translation Reserve” under Reserves and Surplus. F Valuation of Inventories Raw materials and Packing materials are valued at lower of cost or net realisable value after providing for obsolescence. Non-monetary foreign currency items are carried at the rates prevailing on the date of the transaction.NOTES TO THE CONSOLIDATED ACCOUNTS contd. Finished goods and work-in-process include costs of raw material. Current investments are stated at lower of cost and fair value. in which they will be used. Work-in-process and finished goods are valued at lower of cost or net realisable value. Cost of leasehold land including premium is amortised over primary period of lease. these items are considered to be realisable at cost if the finished products. wherever availed) or construction or other amounts substituted for historical costs on revaluation less accumulated depreciation. 1956 in the parent company. are expected to be sold at or above cost. However. H Foreign Exchange Transactions Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. 1956. G Investments Long term investments. Cost of finished goods includes excise duty. Any profit or loss arising on cancellation or renewal of such contracts is recognised as income or expense of the year. Overseas subsidiaries are classified as non integral operations as per AS-11 .

NOTES TO THE CONSOLIDATED ACCOUNTS contd.
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 a 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 the right to receive such income is established 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 Provident Fund are charged to the Statement of Profit and Loss for the year when the contributions to the respective funds accrue. Post retirement benefit plans such as gratuity and leave encashment are determined on 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 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 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 financing/borrowing costs are charged to the Statement of Profit and Loss. 71

NOTES TO THE CONSOLIDATED ACCOUNTS contd.
N 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. O 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. P Expenditure on Regulatory Approvals Expenditure incurred for obtaining regulatory approvals and registration of products for overseas markets is charged to revenue. Q 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. R 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.

2

The audited/unaudited financial statements of foreign subsidiaries/associates have been prepared in accordance with the Generally Accepted Accounting Principles of its country of incorporation or International Financial Reporting Standards. The differences in accounting policies of the Company and its subsidiaries are not material.

72

NOTES TO THE CONSOLIDATED ACCOUNTS contd.
` in crore 2012 2011

3 Share Capital
Authorised 87,50,00,000 Equity Shares of `2 each (Previous year 87,50,00,000 Equity Shares of `2 each) Issued 80,39,24,752 Equity Shares of `2 each (Previous year 80,39,24,752 Equity Shares of `2 each) Subscribed & Paid-up 80,29,21,357 Equity Shares of `2 each fully paid (Previous year 80,29,21,357 Equity Shares of `2 each fully paid)

175.00 175.00

175.00 175.00

160.78 160.78

160.78 160.78

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 2012 2011 Number of % Holding Number of % Holding shares shares 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 8,01,53,536 9.98 9,68,98,171 12.07 Shares allotted as fully paid-up by way of Bonus shares (during 5 years preceding 31st March 2012) 46,63,74,814 equity shares of `2 each were allotted as Bonus shares by capitalisation of General Reserve and Securities Premium Account in May 2006. Terms and Rights attached to Equity Shares The Company has only one class of equity shares having a par value of `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. 2012 ` in crore 2011 0.08 1428.96 8.97

4

Reserves and Surplus
Capital Reserve Securities Premium Reserve Revaluation Reserve 0.08 1428.96 8.97

73

30 100.83) 233.05 3154.06 16.23) 213.00 2716. General Reserve As per last Balance Sheet Add: Transferred from the Statement of Profit and Loss Balance at the end of the year Capital Reserve on Consolidation Foreign Currency Translation Reserve Surplus in the Statement of Profit and Loss As per last Balance Sheet Add: Profit for the year Less: Appropriations Transferred to General Reserve Interim Dividend Proposed Dividend Tax on Dividend Balance at the end of the year 2716.43 125.28 1693.20 2.43 28.24 3466.73 989.70 185.92 ` in crore 2011 2012 6 Deferred Tax Liabilities (Net) Deferred Tax Liabilities arising on account of DEPB Incentives Depreciation Others 17.23 160.38 7478.contd.56 (0. ` in crore 2011 2012 4 Reserves and Surplus .NOTES TO THE CONSOLIDATED ACCOUNTS contd.01 125.58 26.47 2321.00 2841.77 6505.06 1.24 27.Sales Tax Deferral Loan 15.72 2321.92 17.35 2616.12 74 .00 2.55 ` in crore 2011 2012 5 Long Term Borrowings Secured Term Loan from Bank (Secured by Hypothecation of Tangible moveable Machinery and Building.77 1144.43 100.20 2.58 36.43 28.51 216. repayable in 6 half yearly instalments beginning January 2010 and ending in July 2012) Unsecured Deferred Payment Liability .00 64.57 2683.65 (0.00 160.

Leave Encashment (Note 25) 31.62 1.85 85.00 - 2.88 9 Trade Payables Micro. a.94 ` in crore 2011 2012 7 Long Term Provisions Provision for Employee Benefits .NOTES TO THE CONSOLIDATED ACCOUNTS contd. Interest due thereon ii.26 1. Principal b.94 0.43 720. ` in crore 2011 0. Small and Medium Enterprises based on available information wit h the Company is as under: ` in crore 2011 2012 i.45 705.06 2012 ` in crore 2011 15.45 31.49 523.69 The details of amounts outstanding to Micro. Small and Medium Enterprises Others 14. The delayed payments of principal paid beyond the appointed date during the entire accounting year 75 - - .56 601. both present and future) Unsecured Packing Credit From Others Unsecured Inter Corporate Borrowings Add: Interest Accrued and due 10. The principal amount and the interest due thereon remaining unpaid to suppliers a.45 2012 8 Short Terms Borrowings Loans Repayable on demand From Banks Secured Cash Credit (Secured against receivables and moveable assets including stocks.95 434.64 4.26 80.13 587.26 11.

01 23.78 76 .28 * There are no amounts due and outstanding to be credited to Investor Education & Protection Fund.06 6.05 219. Normal interest accrued during the year.63 160.01 31. Total interest accrued during the year b. 2006 iii. 2012 Interest actually paid under section 16 of the Micro.09 235. ` in crore 2011 ` in crore 2011 2012 10 Other Current Liabilities Current maturities of Long Term Debt Sales Tax Deferral Loan Term Loan from Bank Interest accrued but not due on Term Loan from Bank Unclaimed Dividend* Statutory Dues Outstanding Payables Creditors for Capital Expenditure Unclaimed Preference Share Capital Security Deposits Book Overdraft Advance from Customers Advance received against sale of Investment 0.01 13.58 26.72 74. for all the delayed payments.39 160.59 17.79 17.53 36. Normal interest payable for the period of delay in making payment.66 238.26 8.12 0. 9 Trade Payables . 2012 ` in crore 2011 26. as per the agreed terms iv.72 15. Small and Medium Enterprises Development Act.67 31.82 24.NOTES TO THE CONSOLIDATED ACCOUNTS contd.00 12. a.Gratuity (Note 25) Proposed Dividend Tax on Proposed Dividend 7.95 106.70 0.84 619.Leave Encashment (Note 25) Employee Retirement Benefit Obligations . Total interest accrued during the year and remaining unpaid b. as per the agreed terms b.50 128.05 211.30 0.58 26.32 11 Short Term Provisions Provision for Employee Benefits .91 30.76 17. a.00 0.contd.48 42.

92 288.22 273.36 - - 31.14 74.52 147.54 119.83 61.41 2.98 - 31.95 898.33 47.10 0.12 Upto 31.57 9.` in crore 12 Fixed Assets .09 80.37 1.55 2894.33 1083.04.69 9.Tangible Assets GROSS BLOCK Addition on Additions Acquisition Deletions/ Adjustments As at 31.61 1008.48 41.03.85 260.70 185.42 1161.20 crore and Indore `0.77 4240.14 0.12 DEPRECIATION/AMORTISATION NET BLOCK As at 31. ii. .13 461.37 - 1.57 0.70 2079.19 9.03.53 7.99 - 33.58 1.42 356.17 12.10 3239.98 1.98 104.56 107.11 Addition on Acquisition For the Deletions/ Upto year Adjustments 31.60 3215.36 70.64 0.14 40.69 3094.44 2953. 77 Vehicles Total Previous year Notes: i.11 Freehold Land 80.58 70.03.21 11.67 37.37 72.60 5.08 74.60 944.03 1.73 4626.28 44.16 4.97 crore.28 9.07 1411.43 78. 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 into increase in book value by `8.55 2.75 8. The above additions to fixed assets during the year includes `17.03.24 312.59 13.90 1146. The gross block is net of Government grants/other subsidies Nil for current year (Previous year Goa `9.11 1146.40 60.11 ASSETS As at 01.65 33.36 5.83 1160.03.67 3.37 33. iii.04 crore) used for Research and Development.26 4240. Freehold Land at Mumbai Central and Vikhroli.02 crore).39 49.79 As at 31.48 72.55 884. The gross value of Buildings and Flats includes the cost of shares in Co-operative Housing Societies.18 Leasehold Land Plant and Machinery Office Machinery Furniture and Fixtures Buildings and Flats NOTES TO THE CONSOLIDATED ACCOUNTS contd.12 50.44 860.12 2011-12 1.46 2008.57 75. iv.40 crore (Previous year `25.

00 0. fully paid (including Goodwill of `0.00 0.310) Ordinary Shares of Quality Chemical Industries Ltd.67.22% (Previous year Nil) Equity Interest in Jiangsu Cdymax Pharmaceuticals Co.17 crore) 1. of `10 each. of Uganda Shillings 5000 each.28 crore) Nil (Previous year 59.30.945) Equity Shares of Stempeutics Research Pvt.36 328. fully paid .53 - 0.00 0. having paid up value of 50 paise each.`40000) Investment property (at cost less accumulated depreciation) Cost of Building given on Operating Lease Less: Accumulated Depreciation Net Block Aggregate amount of unquoted investments .16 0.31 crore) 7.333 (Previous year Nil) Ordinary Shares of Biomab Holding Ltd.29 0. of AUD 1. Ltd.77 7.81 crore) 0.`40000 (Previous year .`327. 1.`366.`10000 (Previous year .37 367.393 (Previous year 70.`51.14 - 114.30.18 78 . fully paid . of `10 each.85 0.57 7. fully paid [Note 1 C f(iii)] Investment in Joint Ventures 1 (Previous year Nil) Ordinary Share of Aspen-Cipla Australia Pty Ltd.30 354. (Net of Capital Reserve of `5. convertible into Equity Shares of `10 each Nil (Previous year 3.67 95.00 0. Ltd. Ltd.13 - 13.12 4.000 (Previous year Nil) Equity Shares of Cipla İlaç Ticaret Anonim Şirketi of TRY 1 each.07. fully paid Investment in Associates 87.15 0.52 0. Ltd.33. ` in crore 2011 2012 13 Non-Current Investments Trade Investments Investments in Equity Instruments (Unquoted) Investment in Wholly Owned Subsidiary 50.NOTES TO THE CONSOLIDATED ACCOUNTS contd.66 - 0.000 (Previous year 1.52 0.50.`10000) Investments in Government and Trust Securities National Savings Certificates . fully paid (including Goodwill of `54.310 (Previous year 7. of USD 1 each.97 (Previous year Nil) Other Investments Investments in Equity Instruments (Unquoted) 16.39.93 crore (Previous year .448) warrants of Stempeutics Research Pvt.000) Equity Shares of The Saraswat Co-operative Bank Ltd.000) Ordinary Shares of Desano Holdings Limited of USD 1 each.00 - 96. fully paid 48.50% Equity Interest in Shanghai Desano Pharmaceuticals Co.

63 25.13.09 17.77 Secured against Bank Guarantees 2012 ` in crore 2011 4.18.62 0.31 21. Considered Good Capital Advances Security Deposits MAT Credit Entitlement Receivable Advance Taxes and TDS (Net of Provision for Tax `526.20 No.58 361.187 14.000 81. Previous year `465.43 5.172 - 7.64 5.Institutional Premium Growth Birla Sun Life Mutual Fund “Birla Sun Life Floating Rate Fund” . of units 16 Current Investments Investments in Mutual Funds (Unquoted) Axis Mutual Fund “Axis Liquid Fund” .IP .76 3.052 70.17.00 208.570 19.21.00 163.93 401.01 33.00 5.58.Growth BNP Paribas Mutual Fund “BNP Paribas Overnight” .04 13.48 24.72 70.Growth Option 2.Institutional Growth Daiwa Mutual Fund “Daiwa Liquid Fund “ .00.13 70.Institutional Plan .Short Term .775 1.61 crore.756 50.72.25 11.70 33.77 117.650 1.24 # 1.03 - 79 .75 14. of units 2012 No.84 20.Institutional Growth Birla Sun Life Mutual Fund “Birla Cash Plus” .73. Considered Good Capital Advances# Unsecured.285 1.859 30.36 crore) VAT Receivable 22.56 0.“Axis Fixed Term Plan” Series 23 (3 Months) .61 64.00 10.NOTES TO THE CONSOLIDATED ACCOUNTS contd.52. ` in crore 2011 2012 14 Long Term Loans and Advances Secured.Growth Baroda Pioneer Mutual Fund “Baroda Pioneer Liquid Fund” .Institutional Growth Axis Mutual Fund .05 ` in crore 2011 15 Other Non-Current Assets Fixed Deposits as Margin Money (maturity more than 12 months) Interest Accrued but not due 4.

584 1.Super Institutional Growth Pramerica Mutual Fund “Pramerica Liquid Fund” .contd.62 11.438 31.91.502 68.965 92.017 1.78. of units 16 Current Investments .61 2.61 28.Super Institutional Growth ICICI Prudential Mutual Fund “ICICI Prudential Liquid Plan” .93.70 1.991 3.Super Institutional Plan . ` in crore 2011 No.92.Series 5” .00.25 32.225 1.529 3.Growth 18.41 17.14.42.72.567 37.Growth Option Religare Mutual Fund “Religare Liquid Fund” .85.Growth Option Reliance Mutual Fund “Reliance Liquid Fund .01 19.07.63.236 1.595 62.34.Super Institutional Plan C Growth ING Vysya Mutual Fund “ING Vysya Liquid Fund” .455 88.Savings Plan Growth ICICI Prudential Mutual Fund “ICICI Prudential Liquid Plan” .95.71.Appreciation Taurus Mutual Fund “Taurus Liquid Fund” .77.96.93 33.91 42.473 - 18.79.19.Growth IDFC Mutual Fund “IDFC Cash Fund” .00.38.00 22.Super Institutional Growth Union KBC Mutual Fund “UKBC Liquid Fund” .76.Super Institutional Growth Edelweiss Mutual Fund “Edelweiss Fixed Maturity Plan .289 86.Super Institutional Plan Growth Edelweiss Mutual Fund “Edelweiss Liquid Fund” .798 1.69.623 1.68 12.NOTES TO THE CONSOLIDATED ACCOUNTS contd.05 8.00 4.362 2.61 - 80 .348 2.Daily Dividend Reinvestment IDBI Mutual Fund “IDBI Liquid Fund” .44.52.64. Deutsche Asset Management “DWS Insta Cash Plus Fund” .500 2.84.26 10.50 35.092 18.39 10.82 39.Growth JP Morgan Mutual Fund “JP Morgan India Liquid Fund” .15 32.00 20.Super Institutional Growth Plan Kotak Mahindra Mutual Fund “Kotak Liquid” .979 97.898 99.33.66.80 10.81.71.99.Super Institutional Growth Sundaram BNP Paribas Mutual Fund “Sundaram Money Fund” .00 18.01.56.Growth Plan Franklin Templeton Mutual Fund “Templeton India Treasury Management Account” . of units 2012 No.567 6.831 1.Super Institutional Plan Growth HDFC Mutual Fund “HDFC Cash Management “ .249 1.25 18.Institutional Premium Growth Peerless Mutual Fund “Peerless Liquid Fund” .27 35.00 40.67.Treasury Plan” Institiutional .92 13.721 22.000 26.Super Institutional Growth Tata Mutual Fund “Tata Liquid Super High Investment Fund” .00 10.Super Institutional Growth Option JM Financial Mutual Fund “JM High Liquidity Fund” .780 2.Super Institutional Plan .00 - 1.

16 1490.64 416.84 1850.000 (Previous year 3.59 940.18 138.58 84.52 223.13 crore.50. of units 2012 No.16 84.03 crore) Work-in-Process (including Stock-in-Transit of `8.30.49 crore.83 135.59 crore) 74.15 10.`940.NOTES TO THE CONSOLIDATED ACCOUNTS contd.71 81 .30. of units 16 Current Investments .57 439.Institutional Growth Option UTI Mutual Fund “UTI Money Market Fund” .66 1553.939 13.84 crore) Traded Goods 849.52 crore (Previous year . Previous year `119.16 2012 ` in crore 2011 18 Trade Receivables Unsecured.07 413. Considered Good Outstanding over Six Months Others Unsecured.66 138. fully paid [Note 1 C f(iii)] Aggregate amount of unquoted investments .36 153.85.40 1462. Considered Doubtful Outstanding over Six Months Less: Allowance for Doubtful Debts 138.75 crore.50. Previous year `16.000) Ordinary Shares of Desano Holdings Limited of USD 1 each. ` in crore 2011 No.77 447.11 1352.Institutional Growth Plan Investments in Equity Instruments (Unquoted) 3.08 900.59 2012 ` in crore 2011 17 Inventories Raw Materials and Packing Materials (including Stock-in-Transit of `103.765 84.00 - - 364.16 1906. UTI Mutual Fund “UTI Liquid Cash Plan” .`223. Previous year `98.75 crore) Finished Goods (including Stock-in-Transit of `90.contd.82 91.

Pending Allotment Capital Subsidy Receivable Balances with Statutory/Revenue Authorities Others* *Includes advances to sundry creditors.NOTES TO THE CONSOLIDATED ACCOUNTS contd.46 0.24 90.60 3.98 82 . ` in crore 2011 2012 19 Cash and Bank Balances Cash and Cash Equivalents Balances with Banks Cash on Hand Other Bank Balances Balance earmarked for Unclaimed Dividend Fixed Deposits as Margin Money (maturity less than 12 months) 73.00 3.33 21 Other Current Assets Export Incentives Receivable 53.59 1.25 3.05 2.46 79.16 12.80 2.98 53.00 0.42 95.46 1.06 8.46 1.52 0.64 107.87 641.76 13.10 107.06 0.29 175.79 0.80 1. unless otherwise stated) Inter Corporate Loans Considered Good Considered Doubtful Less: Allowance for Doubtful Loans Interest Accrued on Inter Corporate Loans Considered Good Considered Doubtful Less: Allowance for Doubtful Interest 0.46 0.43 311.25 5.51 0.46 0.26 Share Application Money .33 85.76 2. employee loans and prepaid expenses 41.08 117.94 2012 ` in crore 2011 85.99 579.43 346.25 0.97 2012 ` in crore 2011 20 Short Term Loans and Advances Unsecured (Considered good.87 1.25 3.51 2.

81 29.27 2618.64 2326.03 26.07 2275.35 81.84 0.40 0.11 31.96 0.68 ` in crore 2011 23 Other Income Interest Income Dividend Income Net Gain on Sale of Current Investment Insurance Claims Rent Sundry Balances Written Back Miscellaneous Income Net Gain on Foreign Currency Transaction and Translation 8.56 19.31 3284.82 2012 ` in crore 2011 7.45 22. ` in crore 2011 6179.41 36.70 20.59 91.29 7128.14 900.65 42.36 139.35 2326.72 1.31 20.34 67.30 120.NOTES TO THE CONSOLIDATED ACCOUNTS contd.07 83 .16 2.13 8.32 10.23 5.96 6392.52 2012 24a Cost of Materials Consumed Consumption of Raw and Packing Materials Opening Stock Add: Purchases Add : Opening Stock of Subsidiaries acquired during the year Less: Closing Stock 900.49 63.35 646.92 3175.83 7.07 2384.07 2384.56 1.99 849.28 2012 22 Revenue from Operations Sale of Products Sale of Services Export Incentives Technical Know-how/Fees Scrap Sales Others 6955.

68 565.36 153.59 25 Employee Benefits Expense Salaries and Wages Contribution to Provident and Other Funds Staff Gratuity Staff Welfare Expenses 677.NOTES TO THE CONSOLIDATED ACCOUNTS contd.87) 413.29 772.91 867.57 439.11 382. wages. 84 . ex-gratia are recognised in the period in which the employee renders the related service.36 153.84 1000.65 413.16 1006.22 2012 ` in crore 2011 494.67 10.83 135.01 0. short term compensated absences.09 387. Work-in-Process and Traded Goods Opening Stock Work-in-Process Finished Goods Traded Goods Add: Opening Stock of Subsidiaries Acquired during the year Less: Closing Stock Work-in-Process Finished Goods Traded Goods 416.09 (138.52 Employee Benefits i.57 439.94 16. and the expected cost of bonus..77 447.44 5.34 41. Benefits such as salaries.34 27. etc.16 1006.90 32.19 97. Short Term Employee Benefits All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits.95 36. ` in crore 2011 2012 24b Changes in Inventories of Finished Goods.

a funded scheme is operated by the Company’s Provident Fund Trust. The Company provides for gratuity. to reliably measure provident fund liabilities.34) 35. 1952) since the Company has no further obligation beyond making the contributions. Provident Fund and Gratuity: The Provident Fund plan.27 85 .contd.50 25. Change in defined benefit obligation Opening defined benefit obligation Interest cost Current service cost Actuarial (gain)/loss on obligations Benefits paid Liability at the end of the year 35.90 5.NOTES TO THE CONSOLIDATED ACCOUNTS contd.83) 49. The employees of the Company are also entitled to leave encashment and compensated absences as per the Company’s policy. Brief description of the plans The Company’s defined contribution plan is Employees’ Pension Scheme (under the provisions of Employees’ Provident Funds and Miscellaneous Provisions Act. the Company is unable to present the related information. the Company contributes all the ascertained liabilities to the Insurer Managed Funds. a defined benefit plan based on actuarial valuation as of the Balance Sheet date.31 16. Charge to the Statement of Profit and Loss based on contributions 2012 12.26 (4. which require interest shortfalls to be recompensed.17 4. b. Long Term Employee Benefits The disclosures as per the revised AS-15 are as under: a. based upon which.16 2.91 5. Accordingly.81 ` in crore 2011 Gratuity (Funded Plan) 27.16 (4. the Company’s actuary has expressed an inability.86 10.16 Employees’ Pension Scheme Provident Fund c. which is recognised by the Income Tax authorities and administered through trustees/ appropriate authorities. 25 Employee Benefits Expense . The Company has two schemes for long term benefits namely. Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states benefit involving employer established provident funds.18 2. Pending the issuance of the Guidance Note from the Actuarial Society of India.73 ` in crore 2011 9. ii. Disclosures for defined benefit plans based on actuarial reports as on 31st March 2012 2012 Gratuity (Funded Plan) i.55 34.18 22. are to be considered as defined benefit plans. The Guidance Note on implementing the revised AS-15.

29 1. considered in actuarial valuation. promotion and other relevant factors.01) 6. 25 Employee Benefits Expense .88 49.50% ` in crore 2011 Gratuity (Funded Plan) 23.34 2.86 (0.91 2.NOTES TO THE CONSOLIDATED ACCOUNTS contd.34) 29.25% 8. v.80) 17.43 100% 8.43) 8. 29.22 2. vii. take account of inflation. such as supply and demand in employment market. iv.contd. 86 .39) 9.50% 8.10 (4. Change in fair value of assets Opening fair value of plan assets Expected return on plan assets Actuarial gain/(loss) Contributions by employer Transfer of plan assets Benefits paid Closing fair value of plan assets Amount recognised in Balance Sheet Present value of obligations as at year end Fair value of plan assets as at year end Net (asset)/liability recognised Expenses recognised in the Statement of Profit and Loss Current service cost Interest on defined benefit obligation Expected return on plan assets Net actuarial (gain)/loss recognised in the current year Transfer of plan assets Total expense recognised in the Statement of Profit and Loss Actual return on plan assets Expected return on plan assets Actuarial gain/(loss) on plan assets Actual return on plan assets Asset information Insurer managed funds Principal Actuarial assumptions used Discounted rate (per annum) Expected rate of return on plan assets (per annum) The estimates of future salary increases.35 (31. 2012 Gratuity (Funded Plan) ii. seniority.16 (29.25% iii.72 10.15 4.86) 5.39 0.56 5.83) 31.01 35.86 (0.86 2.90 (2.00 2.22 5.39 0.94 1. vi.63 (4.17 (1.61 100% 8.43) 1.97 16.

16 29.84 14.19 2011 35.18) ` in crore 2008 18. 2012 26 Finance Costs Interest Paid Applicable Loss on Foreign Currency Transaction and Translation 23.39) 11.NOTES TO THE CONSOLIDATED ACCOUNTS contd.(gain)/loss 49. Experience adjustments Defined benefit obligation Plan assets Deficit/(Surplus) Experience adjustment on plan liabilities .43) 5.19 (0.45) 2.(gain)/loss Experience adjustment on plan assets .45) (0.01 273.33 49.74 (4.32 7.60 22.contd.78 25.27 31.88) 17.19 (0.22 87 .64 (3.88 (17.10 ` in crore 2011 273.57 2009 20.39 11.40 0. 25 Employee Benefits Expense .01) 6.16 ix.96 16. 2012 Gratuity (Funded Plan) viii.71) (2.34 2012 27 Depreciation and Amortisation Expense Depreciation on Tangible Assets Amortisation of Goodwill on Acquisition 312.15) 10.15 10.40 0.(gain)/loss Expected employer's contribution for the next year Amounts for the current and previous four periods are as follows: 2012 Gratuity Defined benefit obligation Plan assets Surplus/(Deficit) Experience adjustment on plan liabilities .98) ` in crore 2011 17.61 0.32 0.(gain)/loss Experience adjustment on plan assets .19 7.03 14.43) 2010 26.16 (29.50 38.72 (4.27 (31.01 (6.33 ` in crore 2011 Gratuity (Funded Plan) 35.22 312.

47 43.47 235.00 115. ` in crore 2011 235.08 93.35 100.86 88 .96 16.03 7.48 0.35 71.39 45.16 52. Postage and Telegram Directors Sitting Fees Contractual Services Donation Provision for Doubtful Debts Loss on Sale of Fixed Assets (Net) Bad Debts Printing and Stationery Research .75 133.59 44.46 21.92 17.54 10.86 52.09 139.72 97.45 198.19 275.84 1850.88 25.30 51.NOTES TO THE CONSOLIDATED ACCOUNTS contd.80 0.43 225.47 0.69 54.86 45.01 0.15 66.86 0.48 4.50 9.Clinical Trials.81 29 Net difference in foreign exchange credited to the Statement of Profit and Loss 52.80 36.70 5.50 36.86 62.23 121.15 93.30 1613.83 2012 28 Other Expenses Manufacturing Expenses Stores and Spares Power and Fuel Repairs and Maintenance Machinery Buildings Travelling Expenses Sales Promotion Expenses Commission on Sales Rates and Taxes Freight and Forwarding Conveyance and Vehicle Expenses Rent Insurance Remuneration to Auditors Audit Fees Tax Audit Fees Certification Fees Professional Fees Telephone.04 2012 ` in crore 2011 12.02 0.32 23.08 58.62 0.05 99.62 0.93 0. Samples and Grants Miscellaneous Expenses 197.58 23.43 26.78 52.55 58.13 0.74 16.81 12.76 108.

NOTES TO THE CONSOLIDATED ACCOUNTS contd.61 20.64 62. the District Court is required to initiate hearings to determine the award for damages.  Lease income on such operating lease is recognised in the Statement of Profit and Loss under ‘Rent’ in Note 23. 89 . therein as applicable) under operating lease or leave and license agreements.30 4.88 104. the US District Court issued an injunction and the Federal Circuit Court at Washington upheld this order. which has not yet commenced.45 206.53 829. it is now not possible to make any reliable estimate of the liability that may come about and accordingly no provision is made in the accounts. 30 Lease Accounting Where the Company is a Lessee The Company has obtained certain premises for its business operations (including furniture and fittings. ` in crore 2011 2012 31 Contingent Liabilities and Commitments (to the extent not provided for) Contingent Liabilities Claims against the Company not acknowledged as debt Guarantees Letters of Credit Refund of Technical Know-how/Fees on account of noncompliance of certain obligations as per respective agreements Income Tax Excise Duty/Service Tax Sales Tax Commitments Estimated Amount of Contracts unexecuted on Capital Account Other Commitments 294. Therefore. The Company retains substantially all risks and benefits  of ownership of the leased asset and hence classified as operating lease.  Lease payments are recognised in the Statement of Profit and Loss under ‘Rent’ in  Note 28. The Company has given refundable interest free security deposits in accordance with the agreed terms.64 32 In a proceeding instituted against the Company for patent infringement of an animal health care product. The Company is also examining further legal remedies as may be advised.77 1197.62 3.85 1346.98 281.02 367.19 181.41 1.13 1. Pursuant to this.75 27.24 548. or longer for other lease and are renewable by mutual consent on mutually agreeable terms. Where the Company is a Lessor The Company has given certain premises under operating lease or leave and license agreement.08 683. These are generally not non-cancellable and range between 11 months to 5 years under leave and licence.44 29.64 369.54 7.15 49.77 977.54 36.

land admeasuring 123. 33 The Government of India has served demand notices in March 1995 and May 1995 on the Company in respect of six bulk drugs. 3. Ltd. Following public agitation. 10th February 2012) 90 . 2. Biomab Holding Ltd. 36 Related Party Disclosures i.50 crore) as at 31st March 2012. 1979. 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. (w. 1st September 2011) Jiangsu Cdymax Pharmaceuticals Co.46 crore along with interest due thereon is payable into the DPEA under the Drugs (Prices Control) Order. 35 In March 2006. the Subsidiary Company entered into sub-lease of this land with a SEZ occupier with an undertaking to provide infrastructural facilities. 1979 on account of alleged unintended benefit enjoyed by the Company. The Subsidiary Company’s writ petition on the challenge to the show cause was disposed by the Hon’ble Bombay High Court stating that the State Government of Goa was competent to alter the SEZ policy. Government of India on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order.e. Thereafter.68 crore (Previous year `26. (w. 4.f. Taluka Ponda.92 crore (inclusive of principal amount for the period July 1995 to April 2009 and interest upto January 2012). Ltd. Quality Chemical Industries Ltd. The orders were challenged before the Hon’ble Supreme Court by the Government. Hence no provision is considered necessary in respect of notice of demand aggregating to `1654.NOTES TO THE CONSOLIDATED ACCOUNTS contd. The Company has been legally advised that on the basis of these orders there is no probability of demand crystallising. The Subsidiary Company filed a Special Leave Petition before the Hon’ble Supreme Court and in which parties were directed to maintain status quo. The Hon’ble Supreme Court by separate orders restored the matter to the jurisdictional High Court for interpreting the Drug Policy on the basis of directions and principles laid down by them and also restrained the Government from taking any coercive action against the Company. Associates: 1. It was also held that the Subsidiary Company may apply for re-allotment of the same land to be utilised for purpose other than SEZ. (the Subsidiary Company) acquired on lease. Meditab Specialities Pvt. The related parties where control exists or where significant influence exists and with whom transactions have taken place: a. 34 In 2003. The Subsidiary Company has been legally advised that it has good case both on facts and on law succeeding in its appeal The Subsidiary Company is therefore of the view that no provision is required to be made on the amount incurred towards cost of land and on the development of SEZ amounting to `26.e. This was contested before the jurisdictional High Courts wherein it was held in favour of the Company. claiming that an amount of `5. the Company received notice of demand from the National Pharmaceutical Pricing Authority. Stempeutics Research Pvt. Goa from Goa Industrial Development Corporation (GIDC) for setting up and development of Special Economic Zone (SEZ) for pharmaceutical products.f. Ltd.20 hectares in Kerim Industrial Estate at Bhut Khamb. the State Government of Goa brought about changes in policy regarding SEZ in the State of Goa which had the effect of the Subsidiary Company not pursuing its development activity and GIDC on instructions of the State Government of Goa issued show cause for revoking allotment of land.

02 0. M. 3. 2. Cipla Foundation 5.31 164.28 0. (w.67 21.39 149.50 114.K. c. Entities over which Key Management Personnel are able to exercise significant influence: 1. Mr.92 91 .03 114. Okasa Pvt.28 15.39 0.08 11.39 1. 4th November 2011) Key Management Personnel: 1.02 0. Hamied Foundation ii.53 174. Samina Vaziralli (w. 1st July 2011) d.53 158. Mr. Hamied – Joint Managing Director 3. Transactions during the year with related parties: ` in crore Particulars Associates/Joint Venture Key Management Personnel and relatives Entities over which Key Management Personnel exercise significant influence 2012 2011 0.13 186.e.28 0.92 58.36 16. e. Ltd.17 228.f.74 1.36 18.10 0.e.41 1.78 7. 4. Okasa Pharma Pvt. Ltd. Kamil Hamied Mrs. b. Aspen-Cipla Australia Pty Ltd.09 18.76 41.03 0.K.10 1. Cipla Public Charitable Trust 2.17 58.41 1. Hamied – Chairman and Managing Director 2.28 1.78 16. 36 Related Party Disclosures .76 10.86 1. Y.33 6.94 5.contd.53 15.91 11.31 0.42 6. Mr.50 7.74 1.67 21. S.17 10.NOTES TO THE CONSOLIDATED ACCOUNTS contd. Joint Venture: 1.13 Total 2012 Loan repaid Investment in Equity Remuneration Interest Paid Purchase of Goods Processing charges paid Research Grants paid Sale of Goods Advances paid against Services Processing charges received Donations given Purchase of Shares Rent paid 2011 2012 2011 2012 2011 0.f. Dr.94 5. Radhakrishnan – Whole-time Director Relatives of Key Management Personnel: 1.

Aspen-Cipla Australia Pty Ltd.00# 0.42 25. Hamied Mr. Remuneration Dr. Radhakrishnan Mr. Investment in Equity Stempeutics Research Pvt. Hamied Late Mr. M.00# 0. ` in crore Particulars Associates/Joint Venture Key Management Personnel and relatives Entities over which Key Management Personnel exercise significant influence 2012 0. 0.98 2011 0.39 96.65 5. Loan repaid Mediorals Laboratories Pvt.52 0.78 ` in crore 2011 0.74 0.00* 18. Advanced Remedies Pvt.26 1.94 2011 0.00* 18. Ltd.20 16.42 26. Samina Vaziralli D. 36 Related Party Disclosures .46 Disclosures in respect of material related party transactions during the year: 2012 A.36 92 . Ltd. C. Kamil Hamied Mrs. Biomab Holding Ltd. Interest paid Mediorals Laboratories Pvt. Ltd.00# Total 2012 Rent received Other receipts Balances at end of the year Outstanding payables Outstanding receivables `36000 * `20040 # 2011 2012 2011 2012 0. K.contd.56 0.22 0.14 18. B.10 3.36 7.91 2.NOTES TO THE CONSOLIDATED ACCOUNTS contd.50 0.13 6. K.22 26.03 6.50 7.04 0.02 4.00* 114.59 27.38 1.17 6.79 0.48 123.00* 54. S.78 114. Amar Lulla Mr. Y. Ltd.00* 27.00# 0.

Ltd.39 6.08 ` in crore 2011 93 .37 56.86 174. Ltd. Okasa Pvt. 36 Related Party Disclosures . Ltd. Ltd. Ltd. 2012 E. Ltd. Ltd. I. Okasa Pharma Pvt.32 11.90 58.27 0.21 11.10 5. Purchase of Goods Advanced Remedies Pvt.61 0.10 6. Goldencross Pharma Pvt. Mediorals Laboratories Pvt. Ltd. Okasa Pvt. Ltd.96 3.92 25.36 164.43 158. Advanced Remedies Pvt.37 5. F.39 1.contd.10 10.39 0.04 21.01 0. Ltd.72 13. Research Grants paid Stempeutics Research Pvt.33 2. Advances paid against Services Stempeutics Research Pvt.95 0. H. Ltd. Shanghai Desano Chemical Pharmaceutical Co.42 10.67 0. Ltd. Quality Chemical Industries Ltd. Sale of Goods Goldencross Pharma Pvt.38 10. Mediorals Laboratories Pvt. Shanghai Desano Chemical Pharmaceutical Co. Ltd. Ltd. Ltd. Medispray Laboratories Pvt.93 92. 1.32 1.97 8. Ltd. Advanced Remedies Pvt. Ltd.62 7. Medispray Laboratories Pvt. Okasa Pvt.08 2. Ltd.63 174.53 10. Ltd.NOTES TO THE CONSOLIDATED ACCOUNTS contd. Ltd. Medispray Laboratories Pvt.76 0. G. Ltd. Okasa Pharma Pvt. Okasa Pharma Pvt. Ltd.14 0.77 32. Shanghai Desano Pharmaceuticals Co.53 8. Ltd.16 18. Processing charges paid Goldencross Pharma Pvt. Mediorals Laboratories Pvt.80 228.63 5.

36 Related Party Disclosures .98 0.03 0. M. Okasa Pvt.42 0.94 0.03 0. Ltd. Rent received Okasa Pvt. Outstanding Payables Mediorals Laboratories Pvt.13 20.contd. Ltd.10 7. 2012 J. Stempeutics Research Pvt.41 0.79 18.38 0. Advanced Remedies Pvt.23 0.14 0. Ltd.00 0. Donations given Cipla Public Charitable Trust Cipla Foundation Hamied Foundation L. Ltd. N.49 0.00 0. Outstanding Receivables Mediorals Laboratories Pvt. O. Okasa Pharma Pvt.28 1. K. Ltd.00# 0. Processing charges received Medispray Laboratories Pvt. Mediorals Laboratories Pvt.72 13. Ltd.51 1. Rent paid Okasa Pvt. Advanced Remedies Pvt. Ltd.41 0.51 0.13 54.28 ` in crore 2011 94 . Ltd. Purchase of Shares Good Earth Remedies Ltd.02 13. Advanced Remedies Pvt.02 0. Ltd.08 11.78 0. Ltd. Ltd. Okasa Pharma Pvt.01 7.NOTES TO THE CONSOLIDATED ACCOUNTS contd. Shanghai Desano Pharmaceuticals Co.63 6. Ltd. Ltd. 1. Ltd. Ltd.48 0. Okasa Pharma Pvt. Okasa Pvt.31 0. Shanghai Desano Chemical Pharmaceutical Co.06 0.45 0. Ltd.31 5.00 0. Globus Healthcare Ltd. Ltd.00# 0.28 0.28 0.39 6.02 0. P.00** 5.

Shanghai Desano Chemical Pharmaceutical Co.58 Currency USD USD USD Cross Currency INR INR INR 2012 1105.61 26. Information about secondary business segments: ` in crore India 2012 Segment Revenue Carrying Amount of Segment Assets Carrying Amount of other unallocated Assets Capital Expenditure 546.09 1. Ltd.29 123.62 56.07 0.45 995.38 7631. Ltd.contd.29 763.86 214.46 18.08 7683. Shanghai Desano Pharmaceuticals Co.99 546.21 1517.98 37 Foreign Exchange Derivatives and Exposures outstanding at the year end Nature of Instrument Forward contracts – Sold Forward contracts – Bought Foreign currency options Unhedged foreign exchange exposures Receivables Payables 417.97 ** `15000 # `36000 ` in crore 2011 19.25 1394.14 6237.12 Total 2012 6908.32 404.07 220.27 2011 3416. 36 Related Party Disclosures .09 95 . * `51.91 763. Ltd.24 289. ii. 2012 Okasa Pvt. 38 Segment Information i.87 6166.06 379.NOTES TO THE CONSOLIDATED ACCOUNTS contd.14 39. Quality Chemical Industries Ltd.12 Outside India 2012 3747.02 3160.03 Note: The Company uses forward contracts/derivatives for hedging purposes and/or reducing interest costs.47 343. Information about primary business segments: The Company is exclusively in the pharmaceutical business segment.91 2011 6182.20 2011 2766.21 ` in crore 2011 460.

Mohan Partner Membership No. Hamied Joint Managing Director V.29. Radhakrishnan Whole-time Director H.NOTES TO THE CONSOLIDATED ACCOUNTS contd. 7th June 2012 96 . No.K. Hamied Chairman & Managing Director S.32 `2. Kotwal M.21. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai. 17748 For R. 39 Basic and Diluted Earnings per share has been computed as under Profit After Tax (` in crore) Weighted Average No. No. 7th June 2012 Mumbai.00 M. Sankar Aiyar & Co. of Shares Outstanding Basic and Diluted Earnings per share Face value per share As per our report of even date For V.57 80.00 Y.G.R. b. Rangarajan Partner Membership No.25 `2. 109208W V. The Segment Revenue in the geographical segments considered for disclosure are as follows : Revenue within India includes sales to customers located within India and earnings in India. 002785S R.contd.24 80. 38 Segment Information .21. Revenue outside India includes sales to customers located outside India and earnings outside India.K.357 `12. Chartered Accountants Firm Reg. Chartered Accountants Firm Reg..29. Price & Co. Raghavan Pankaj Patel Directors 2011 989. Notes: a.357 `14. 41883 2012 1144.C.S.. Manchanda Ramesh Shroff V. Segment Revenue and Assets include the respective amounts identifiable to each of the segment.R.N.

41 8.14) (311.65) 288.88 57.81 312.28 7.84 7.97) (8.86 (2.20) 0.71) (908.68) 7118.18) 5251.84 1451.56) 36.91 (1.33 (97.67 (162.32) 19.84 2.10 (710.26 36.41) (36.64) (208.48 (7.03) 1289.71 (965.23 (331.54) (7470.CONSOLIDATED CASH FLOW STATEMENT ` in crore 2011 For the year ended 31st March 2012 2012 A Cash Flow from Operating Activities Net profit before tax Adjustments for: Depreciation and amortisation expense Interest expense Unrealised foreign exchange gains (Net) Provision for doubtful debts and advances (Net) Interest income Dividend income Profit on sale of investments (Net) Loss on sale/discard of fixed assets (Net) Rent income Operating profit before working capital changes Adjustments for: (Decrease)/Increase in trade payables and other liabilities Decrease/(Increase) in inventories Decrease in trade and other receivables Cash generated from operations Direct taxes paid (Net) Net cash from operating activities 1447.84) 351.57 (30.33 17.22) (1. net of cash acquired Investment in associates Investment in joint venture Share application money Purchase of other investments Sale of other investments Advance received towards sale of investments Interest received Dividend received Rent received Short term deposits repaid/(given) (Net) Net cash used in investing activities (B) 97 .08 131.67 (2.35 2044.07 1798.50 (8.20) 1025.47) 1712.32 (4.14) 54.55 (0.40) (0.14) 0.30 (264.96) (0.33) (373.46) 12.76 (561.82 245.45 56.10) 1162.96 1.10) (5228.84 (28.22 23.37) 308.92 238.49 273.40 2.00* (33.13) (8.06) 4.39) (A) B Cash Flow from Investing Activities Purchase of fixed assets/Capital work-in-progress Sale of fixed assets Purchase consideration for acquisition of undertaking Cash paid for acquisition.

58) (26.97 2012 C Cash Flow from Financing Activities Proceeds from long term and other borrowings Repayment of long term and other borrowings Interest paid Dividend paid Tax paid on dividend Interim dividend paid Tax paid on interim dividend Net cash from/(used in) financing activities Net (decrease)/increase in cash and cash equivalents Cash and Cash Equivalents as at the beginning of the year Cash and Cash Equivalents as at the end of the year * `51.R.80) 33. Raghavan Pankaj Patel Directors M.97 200.07) (17. 109208W V. 7th June 2012 98 .79 crore) on account of unclaimed dividend. Rangarajan Partner Membership No. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.83) (160. Kotwal M. Manchanda Ramesh Shroff V.. Cash and Cash Equivalents represent cash and bank balances and fixed deposits with banks. ` in crore 2011 867. Hamied Joint Managing Director V. 41883 Y.K.S. Chartered Accountants Firm Reg. Chartered Accountants Firm Reg. Mohan Partner Membership No. which are not available for use by the Company.46 Notes: i. 17748 For R.G.71) (23. Hamied Chairman & Managing Director S. No. 7th June 2012 Mumbai.91 62. No. Cash and Cash Equivalents includes `13.67) (82 .C.59 crore (Previous year `12.N. ii.06 95.05) (C) (A)+(B)+(C) (753..58) (26.32) (160. Sankar Aiyar & Co. As per our report of even date For V.67) (64.23) (10.17) (5.97 90. Price & Co. Radhakrishnan Whole-time Director H.K.51) 95.CONSOLIDATED CASH FLOW STATEMENT contd.00 (742. 002785S R.74 (671.R.

Mumbai-400 020 on Friday. Mumbai-400 008 FORM OF PROXY Folio No. ___________________________________________________________________________________________________________ of _____________________________________________________________________________________________________________ being a member/members of CIPLA LIMITED. College. duly completed and signed across the stamp. and at any adjournment thereof. Signature(s) of the Shareholder(s)/Proxy:__________________________________________________________________________ Note: Only Shareholders of the Company or their Proxies whose names are registered with the Company will be allowed to attend the meeting. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND PROXY NEED NOT BE A MEMBER. Notes: 1. 17th August 2012 at 3. hereby appoint_______________________________________________________________ of _____________________________________________________________________________________________________ or failing him _____________________________________________________________________________________________________________________ of ________________________________________________________________________________________________________ or failing him ___________________________________________________________________________________________________________________ of _______________________________________________________________________________________________________________as my/our proxy to vote for me/us and on my/our behalf at the Seventy-Sixth Annual General Meeting of the Company to be held on Friday. Signed this _______________________ day of ______________________ 2012.: ___________________________ Client ID No.m. Dinshaw Wacha Road. should reach the Registered Office of the Company not less than 48 hours before the meeting. Office : Mumbai Central. Regd.: _________________________ Name/s: ____________________________________________________________________________________________________ (1st name) ___________________________________________________________________________________________________ (Joint Holder) I/We record my/our presence at the Seventy-Sixth Annual General Meeting of the Company at Rama Watumull Auditorium.: _______________ DP ID No. Revenue Stamp Signature(s) of the Shareholder(s) 99 .00 p. Regd. K. Office : Mumbai Central. This form. Mumbai-400 008 ATTENDANCE SLIP PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL Folio No. of Shares held ___________________ I/We.: ___________________ No. 17th August 2012.: ______________ Client ID No. 2. Affix 15 p. C. Churchgate.CIPLA LTD. CIPLA LTD.: ___________________________ DP ID No.

.

14 155.68 180.48 155.65 3574.42 519.46 26.81 81.48 94.97 1010.51 5914.95 1540.58 26.58 26.67 894.53 194.24 5315.82 540.09 2011 2010 2009 2008 2007 2006 2005 2004 ` in crore 2003 7794.09 306.45 7794.43 155.87 514.98 668.41 265.51 2695.31 776.80 1421.77 1540.48 2550.43 1384.63 191.58 7389.64 399.27 468.77 59.36 701.72 807.45 7265.93 4338.38 2482.15 6098.13 1833.27 123.46 21.94 1833.46 26.13 59.58 6452.80 2358.20 232.19 1461.70 7550.05 59.05 210.96 14.10 3137.60 603.65 3472.70 2090.20 88.58 0.42 155.39 224.TEN-YEAR HIGHLIGHTS Standalone 2012 Statement of Profit and Loss Total Revenue Profit before Tax Profit after Tax Dividend Tax on Dividend Retained Earnings Balance Sheet Fixed Assets Investments# Other Net Assets# Miscellaneous Expenditure Total Share Capital Reserves and Surplus Net Worth Loan Funds# Net Deferred Tax Total 3346.05 937.07 179.46 3080.37 756.26 117.48 7125.75 940.46 3600.09 5.24 1324.30 1983.57 180.58 59.67 3120.01 1894.99 1081.15 3413.95 709.80 430.97 7.21 838.59 694.42 3472.46 26.10 1070.96 11.29 4350.72 698.10 1221.82 901.58 65.62 22.75 2456.86 5713.64 155.61 409.03 155.11 1035.14 4445.20 1221.81 36.55 3763.78 56.66 1553.48 212.42 594.74 59.31 5455.97 1923.00 312.31 160.81 155.96 160.46 1123.15 5455.80 1893.93 160.73 1151.46 4195.36 3755.30 970.85 607.91 97.42 1143.56 112.61 104.88 6098.24 164.97 1493.49 247.08 1264.69 89.88 126.07 94.95 440.15 3207.99 404.32 3015.45 149.05 * After adjustments of earlier years # Includes Current and Non-Current 3 .39 960.87 18.97 1204.15 4445.11* 1599.72 570.49 160.93 7265.95 2550.32 6422.42 486.95 289.58 5753.28 12.08 844.81 3236.88 160.37 6612.

cipla.www.com .

Sign up to vote on this title
UsefulNot useful