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

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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

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

Madhapur. 8. 2. in their own interest. to their Depository Participants. Hyderabad-500 081. 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. will be printed on the dividend warrants. The dividend for the year ended 31st March 2012 as recommended by the Board. 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. if sanctioned at the Meeting. 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. Members who hold shares in physical form can nominate a person in respect of all the shares held by them singly or jointly. Tel: (040) 2342 0818 / (040) 4465 5201 Fax: (040) 2342 0814 6. The Explanatory Statement pursuant to section 173 of the Companies Act. to be effective. to avail of the nomination facility by filling Form 2B in duplicate with the Share Transfer Agents which. Members holding shares in dematerialised form must give instructions. Members holding shares in the dematerialised form may contact the Depository Participant for recording nomination in respect of their shares. 3rd August 2012 to Friday. both days inclusive. Members holding shares in dematerialised form may please note that. The Register of Members and the Share Transfer Books of the Company will remain closed from Friday. 7. 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 paid to those members whose names appear in the Company’s Register of Members on Thursday. 4. In the absence of NECS facility. Members may please note that. the bank account details. In respect of shares held in electronic form. Proxies. SEBI has also mandated that for securities market transactions and off market/ private transactions involving transfer of shares in physical form. on request will supply blank forms.NOTICE contd. 5. 2nd August 2012. 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. 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. irrespective of the amount of such transactions. 3 . if available. 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.17-24. 1956 is annexed hereunder and forms part of the Notice. Members who hold shares in single name are advised. 17th August 2012. should be deposited at the Registered Office of the Company not later than 48 hours before the commencement of the Meeting. Vittal Rao Nagar. NOTES: 1. regarding bank accounts in which they wish to receive dividend.

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

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

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

this could also result in a deteriorating fiscal position of the country in the long run.29. The Government should also take into consideration that at a time of slow economic growth. A sustained depreciation of the Rupee would benefit the Company and the overall pharmaceutical industry due to significant contribution from exports.6 percent in 2012-13. high interest rates and a widening current account deficit. However. The country’s economic growth has fallen below expectations as it copes with spiralling inflation.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. MANAGEMENT REVIEW: 2011-12 Industry Structure and Development The global economy has witnessed considerable political and economic turmoil during the last year. governance is going to be a critical challenge and will have a significant impact on the country’s growth rates. 7 .9 percent in 2011-12. its slowest in the last three years and the Government expects it to grow by 7.21.357 equity shares of `2 each for the year 2011-12 amounting to `160. This has resulted in general uncertainty across the globe impacting all businesses. Increasingly. any delay in the implementation of sound policies and reforms in various sectors could result in lasting damage to the economy. The Indian Rupee has depreciated by more than 14 percent as compared to the US Dollar during the financial year 2011-12. India is expected to play an increasing role in the global economy as demand from a growing population continues to drive consumption. This will depend on the way India works towards a resolution. 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. India’s economy grew by about 6. compounded by problems of inflation and uncertainty.58 crore. from uprisings in the Middle East and North Africa to the tsunami in Japan and the debt crisis in Europe.

operating margin (as a percentage of total revenue) increased by about 2 percent. Japan and Australia is witnessing price erosion in the generic business primarily due to competition. 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. in particular the US. increase in lifestyle-related diseases and growth in the health insurance sector. Europe. The Indian pharmaceutical industry maintained its momentum and registered a growth of about 15 percent. there are the rising costs of production and compliance. from `2822 crore in the previous financial year to `3213 crore in the financial year under review. rapid urbanization. The global pharmaceutical industry. During the year under review. reduction in input costs of certain product categories and changes in the product mix. This was primarily due to reduction in material cost from 47 percent to 42 percent on account of improved realisations. 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 . 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. such as a growing middle class population. The domestic turnover increased by 14 percent.DIRECTORS’ REPORT contd. In addition. All this is exerting pressure on the margins across the industry. according to ORG-IMS statistics. Total exports increased by 10 percent during the year. Profit after tax of the Company increased by 17 percent to `1124 crore from `960 crore in the previous financial year. This growth can be attributed to prominent factors.

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. Central & South America 23% Australasia 13% Exports 9 . 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.DIRECTORS’ REPORT contd.

These agencies included the US FDA. the Danish Medical Agency and the WHO. anti-virals. 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. PIC (Germany). The Company is also setting up API facilities at Patalganga. TGA (Australia). 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.DIRECTORS’ REPORT contd. gynaecology and urology. clinical trials for regulatory approvals for certain therapeutic areas are underway in India and Malaysia. The Company is actively involved in developing bio-similars/ bio-therapeutic products through its partners in China. These products may be targeted for international markets in future. Ministry of Health (Kingdom of Saudi Arabia).. Currently. 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. ANVISA (Brazil). Department of Health (Canada). With an R&D team committed to constant innovation and a strong field force of more than 7. 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 .500 people. It is anticipated that operations will commence during 2012-13. Ltd. SIDC (Slovak Republic). the Company continues to introduce several new products and dosage forms every year which offer significant opportunities. Bengaluru. Manufacturing Facilities The Company is setting up additional R&D facilities at Vikhroli and Patalganga. The Company’s venture into stem cell-based products is under progress with a major investment in Stempeutics Research Pvt. 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. 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. MHRA (UK). The launch of the stem cellbased products is expected in 3 years. MCC (South Africa).

have amended their patent laws to avail this flexibility allowed under the TRIPS agreement. Pakistan. in a landmark judgement by the Indian Patent Office. Recently. The Company has been consistently challenging some patent applications and post-grant patents. During the year under review. International Markets Cipla’s international business continues to be a major revenue driver for the Company. These patents are intended to create extended monopoly and ever-greening. The policy seeks to impose a drug price control regime on more than 348 drugs on the basis of essentiality. Threats. 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. monopoly and compulsory licensing. The Government should actively promote a pragmatic compulsory licensing system for life-saving/essential drugs. 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. Many other countries like China. etc. Any announcement of such a policy or guideline should be clear and time-bound. Indonesia. India enjoys the lowest prices of medicines in the world – cheaper than Bangladesh. In the US. Brazil. 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. Concerns Patents The Company has always maintained its position against MNCs filing pharmaceutical patents which have no novelty. The Company believes that these negotiations should be open and transparent. more than 53 percent of the total income originated from international markets. and is therefore involved in a number of patent litigations. the Company is exploring all options. The Company is expanding its presence in the inhaler segment in Europe. with regulatory approvals for a few products already in place and few more in the pipeline. including filing its own Abbreviated New Drug Applications (ANDAs). The Company’s international business strategy is focused on an optimised product mix with a greater thrust towards high margin products. 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. 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. This creates an impediment to providing affordable healthcare to the nation. 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 Government of India is in negotiations with the European Union to formulate a Free Trade Agreement (FTA). Risks. India is known as the pharmacy capital of the world not only for its quality and range but also for its prices. etc. This will improve access to the latest medicines required by Indian consumers at affordable prices. Thailand. Some recent judicial rulings have affirmed the Company’s stand on this vexatious issue.DIRECTORS’ REPORT contd.

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

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

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

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

since the Company manufactures a large range of formulations with different energy requirements. Consumption per Unit of Production 2012 1. II. Development of agro technology.ANNEXURE TO THE DIRECTORS’ REPORT contd. 16 . Patenting of newer processes/newer products/newer drug delivery systems/newer medical devices/newer usage of drugs for both local and international markets. Development of new drug formulations for existing and newer active drug substances.02 67698041 3.98 149813673 80. both in the area of APIs as well as formulations.38 kwh kwh ` 51008095 3. Development of products related to the indigenous system of medicines. vi. v. Electricity a. iv. Development of new products.63 5.86 43187 27396 91. genetics and biotechnology for cultivation of medicinal plants and isolation of active ingredients from plant materials. kl ` in crore `/kl 24743 106. RESEARCH & DEVELOPMENT AND TECHNOLOGY ABSORPTION A. specifically for export. vii.63 12. ii.94 33563 B.70 8.38 2011 69256 4. Power and Fuel Consumption 2012 1.90 It is not feasible to classify energy consumption data of formulations on the basis of product categories. 2. Research & Development 1. A. 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.69 2. Development of new innovative technology for the manufacture of existing APIs and their intermediates. Development of new drug delivery systems for existing and newer active drug substances as also newer medical devices.62 5. iii. Purchased Units Total amount Rate/Unit b. Electricity Bulk drugs Light diesel oil/diesel oil/furnace oil Bulk drugs (kwh/mt) (kl/mt) 63667 5. 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.

i. On behalf of the Board.83 Total The total R&D expenditure as a percentage of total turnover is around 5 percent. Capital 17. Expenditure on R&D: ` in crore a. adaptation and innovation: i. III. better solvent recovery and simplification of processes.43 323. 7th June 2012 17 Y. pollution control and all-round safety standards. 4. 1.40 b. Improved processes and enhanced productivity in both APIs and formulations. Maximum utilisation of indigenous raw materials. Details of the same have been given in Notes 21. iv. Improvement in operational efficiency through reduction in batch hours. effluent control. ii. made towards technology absorption. ii. 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. the Company earned `30 crore towards technical know-how/fees. Development and patenting of new molecular forms and methods of synthesis. Efforts. Improvements in effluent treatment. Successful commercial scale up of several new APIs and formulations. B. Development of products for import substitution. i. Mumbai. Development of new drug delivery systems and devices. 3. In addition. The Company continues to leverage on its strategic marketing alliances and partnerships in more than 170 countries. Revenue 306. Technology Absorption.K. Total foreign exchange used and earned: During the year. v. iii. Meeting norms of external regulatory agencies to facilitate more exports. initiative taken to increase exports. increase in batch sizes. Projects to develop APIs and formulations jointly with overseas companies. Benefits derived as a result of the above efforts: FOREIGN EXCHANGE EARNINGS AND OUTGO Activities relating to exports. etc. Exports constituted more than 50 percent of total turnover. ii. ix. in brief. 2. 2. iii. Adaptation and Innovation 1. 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 methods to improve safety procedures. 2. Development of new drug delivery systems. The major thrust would be on developing new products and drug delivery systems. Hamied Chairman & Managing Director . viii. 30 and 31 in Notes to the Accounts.ANNEXURE TO THE DIRECTORS’ REPORT contd. the foreign exchange outgo was `1329 crore and the earnings in foreign exchange was `3728 crore.

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

H.20 1. M. Dr.25 80.00 Commission (` in lakhs) 500. Y.Member.10 0.e. 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. Kotwal Mr.R. the Company does not have a scheme for grant of stock options either to its Executive Directors or to its employees.20 0. Ranjan Pai* *Appointed w. 29th June 2011. Raghavan .61 Retiral Benefits* (` in lakhs) 0. as and when necessary. 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. Ramesh Shroff Mr. S.K. Presently.00 110. Ranjan Pai – Non-Executive Directors held 200000.C. which are actuarially determined on an overall basis Notes: i. M.00 325. None of the other Non-Executive Directors hold any equity shares of the Company. Ramesh Shroff . 14th November 2011 and 13th February 2012 during the financial year 2011-12 whereat all the members were present. Hamied Mr. 5th August 2011. None of the Directors is related to each other except for Dr. Radhakrishnan * Exclusive of provision for leave encashment and contribution to the approved Group Gratuity Fund.K. M. H.K.02 11. The Audit Committee currently comprises: Mr. Y. The Company Secretary acts as Secretary to the Committee.Chairman. Hamied. Shareholding of present Non-Executive Directors: As on 31st March 2012. Raghavan Mr.f.R. Audit Committee The Audit Committee was constituted on 4th September 2000 in compliance with the requirements of Clause 49 of the Listing Agreement.98 70. S. 14th November 2011 Note: The above figures are inclusive of fees paid for attendance of committee meetings. c. 19 Sitting Fees (` in lakhs) 2. ii.K. M. Radhakrishnan . Sitting fees to Non-Executive Directors during the financial year 2011-12 are given below: Non-Executive Directors Dr. Hamied and Mr. V. Pankaj Patel Dr.00 95. Hamied Mr. Manchanda Mr.20 .00 200.Member and Mr. 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. Mr.00 Perquisites and Allowances (` in lakhs) 69. 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. Mr.40 1. 250 and 1025 equity shares respectively in the share capital of the Company.R.20 1. Ramesh Shroff and Dr. Manchanda.REPORT ON CORPORATE GOVERNANCE contd.R.40 13.20 Dr. Meetings and attendance during the year: The meetings of the Audit Committee were held on 5th May 2011. d. The agreement with each Executive Director is for a period of five years.

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

Sakaal. Rama Watumull Auditorium. k.com The Management Discussion and Analysis Report forms part of the Directors’ Report. K. The annual/half-yearly/quarterly results and other official news releases are displayed on the website of the Company – www.cipla. Dinshaw Wacha Road. The Financial Express. 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. 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. j. College.00 p. 17th August 2012 at 3.C. 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.m. General Shareholder Information Date. Churchgate.REPORT ON CORPORATE GOVERNANCE contd. Business Standard. Time and Venue of the AGM : Friday. The results are usually published in the following newspapers: The Economic Times. Navbharat Times. The Hindu Business Line. Stock Code : 500087 on BSE Limited CIPLA EQ on National Stock Exchange of India Limited ISIN Number for NSDL & CDSL : INE059A01026 21 .

95 329.60 272.50 284.00 21417579 315.00 341.00 276.80 310.00 2008138 295.REPORT ON CORPORATE GOVERNANCE contd.30 40065312 Year (2011-12) April May June July August September October November December January February March High (`) 326.50 340.10 299.10 3126120 311.10 26855794 337.65 17252144 334.85 25455291 300.15 3131451 310.00 351.00 320.95 315.45 304.00 3152893 315.90 295.10 1813764 274.10 2266020 273.00 299. The Company’s market capitalisation is included in the computation of BSE Sensex and S&P CNX NIFTY Index.00 286.80 316.00 334.00 3141318 286.05 2874171 305.00 35335555 340.45 274.00 25088838 352.15 23719585 329.30 32789685 320.) .95 305.50 337.50 22215242 359.95 311.00 4043059 315.50 6751110 Performance in comparison to BSE SENSEX – Year 2011-12 Cipla Share Price ( ) Month 22 BSE Sensex (Pts.00 315. National Stock Exchange of India Limited High Low Number of (`) (`) Shares Traded 326.60 2619325 276.50 23821800 341.20 26444535 299.00 BSE Limited Low Number of (`) Shares Traded 305.10 1733876 284.90 359. Market Price Data : The high and low prices of every month during the financial year 2011-12 are given below.

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.83 0.77 91. dividend.10 0.74 0. periodic certificates issued by a Practising Company Secretary are filed with the Stock Exchanges. Karvy Computershare Private Limited have adequate infrastructure to process the above matters.23 . Address for Correspondence All communications with regard to transfer.ris@karvy.93 99.00 8. Share Transfer Agents : Karvy Computershare Private Limited (Unit: Cipla Limited) Plot No.66 0. Hyderabad-500 081 Tel: (040) 2342 0818/4465 5201 Fax: (040) 2342 0814 E-mail: einward. of Shares 24892502 5266796 6631094 5932411 3967735 4658260 13791882 737780677 802921357 70385145 732536212 % of Total 3.88 100. transmission.72 91.REPORT ON CORPORATE GOVERNANCE contd. dematerialisation.07 No. Madhapur.22 0.com Website: www.82 0. Karvy Computershare Private Limited.com Shares Department Cipla Limited Mumbai Central. of Folios 168376 1425 895 482 225 205 374 863 172845 1603 171242 23 % of Total 97.12 0.00 0.52 0.28 0. In compliance with the requirement of Listing Agreement.41 0. Vittal Rao Nagar.cipla.com Company : Share Transfer System A Committee of Directors has been constituted to approve the transfer. Mumbai-400 008 Tel: (022) 2302 5272/2309 5521 Fax: (022) 2300 8101 E-mail: cosecretary@cipla.58 1. etc. should be addressed to the Share Transfer Agents viz. A predetermined process cycle at regular interval ensures transfer of shares (in physical form) within the stipulated time limit. issue of duplicate share certificates and allied matters.50 100. 17–24. The Company’s Share Transfer Agents. National Electronic Clearing Service (NECS).com Website: www.karvy.13 0. transmission.49 0.

Institutions/Non-Govt Institutions) 10. KIADB 4th Phase.18% Promoters and Promoter Group 36. Old Madras Road.REPORT ON CORPORATE GOVERNANCE contd. 7. Bengaluru-560 049.85% Banks. 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. Virgonagar. The Company has not issued any American Depository Receipts (ADRs)/Warrants or any convertible instruments.35% Dematerialisation of Shares and Liquidity As on 31st March 2012. Each GDR represents one underlying equity share of the Company.11% Indian Public 20. Karnataka ii. As to the Liquidity.14. Financial Institutions.80% Bodies Corporate 6. Karnataka 24 .32% Bank of New York (Shares underlying GDRs) 0. Insurance Companies (Central/State Govt.07% Mutual Funds and UTI 6. Plant Locations i. about 91 percent of the share capital was held in dematerialised form. They are also included in S&P CNX NIFTY of National Stock Exchange of India Limited.23% Foreign Institutional Investors 16. They are among the select scrips in which derivatives trading has been permitted in the form of stock futures and stock options. As on 31st March 2012.09% Shares in transit (Depository) 0. Industrial Area. equity shares of the Company are traded in the ‘A’/Forward group and have been included in the SENSEX at BSE Limited.657 GDRs were outstanding. Shareholding Pattern as on 31st March 2012 NRIs / Foreign Corporate Bodies 3. Bommasandra-Jigani Link Road. Bengaluru-560 099.

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

An audit also includes assessing the accounting principles used and significant estimates made by the Management. we enclose in the Annexure. issued by the Central Government of India in terms of section 227(4A) of the Companies Act. 1956. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In the case of the Balance Sheet. 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. ii. c. e. In the case of the Cash Flow Statement. In our opinion. together with the notes thereto. of the cash flows for the year ended on that date. 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. b. For R.AUDITORS’ REPORT TO THE MEMBERS OF CIPLA LIMITED 1. a statement on the matters specified in paragraphs 4 and 5 of the said Order. as well as evaluating the overall financial statement presentation. 109208W V. No. In the case of the Statement of Profit and Loss. and iii. proper books of account as required by law have been kept by the Company. The Balance Sheet. Our responsibility is to express an opinion on these financial statements based on our audit. 2003. Chartered Accountants Firm Reg. the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account. For V. f.. we report that: a. 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. In our opinion.N. the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year ended on that date annexed thereto.G. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i. In our opinion and to the best of our information and according to the explanations given to us. 4. on a test basis. No. Rangarajan Partner Membership No. Mohan Partner Membership No. the Balance Sheet. An audit includes examining. 17748 Mumbai. evidence supporting the amounts and disclosures in the financial statements. as amended. 1956. the said financial statements. 7th June 2012 . Price & Co. which to the best of our knowledge and belief were necessary for the purposes of our audit. give the information required by the Companies Act. 3. 1956. 5. We conducted our audit in accordance with the auditing standards generally accepted in India. We have obtained all the information and explanations. As required by the Companies (Auditors’ Report) Order. 002785S R. 41883 Mumbai. (hereinafter referred to as “the Order”). we report that none of the Directors is disqualified as on 31st March 2012. These financial statements are the responsibility of the Company’s management. Further to our comments in the Annexure referred to in paragraph 3 above. Without qualifying. We believe that our audit provides a reasonable basis for our opinion.. from being appointed as a Director in terms of section 274(1) (g) of the Companies Act. d. 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. Chartered Accountants Firm Reg. of the state of affairs of the Company as at 31st March 2012. We have audited the attached Balance Sheet of Cipla Limited (the Company) as at 31st March 2012. of the profit for the year ended on that date. 7th June 2012 26 2. Sankar Aiyar & Co. so far as appears from our examination of those books.

In our opinion and according to the information and explanations given to us. On the basis of our examination of the inventory records. In our opinion and according to the information and explanations given to us. a. the requirements of clause (iii) of paragraph 4 of the Order are not applicable to the Company. The verification was done on the basis of the perpetual inventory system operated by the Company. During the year. certificates confirming such inventory have been obtained by the Company from most of the third parties. to or from companies. The Company has a policy of physically verifying its fixed assets periodically. Further. c.1956. 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. 6. 5. c. 2. secured or unsecured. The discrepancies noticed on physical verification of inventory have been properly dealt with in the books of account. Consequently. the Company has maintained proper records of inventory. 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. the particulars of contracts or arrangements referred to in section 301 of the Companies Act.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. the transactions made in pursuance of contracts or agreements referred to in 5. the Company has not accepted any deposits from the public within the meaning of section 58A. 1956 have been entered in the Register required to be maintained under that section. 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. 4. In our opinion and according to the information and explanations given to us. 27 b. a. 58AA or any other relevant provisions of Companies Act. The inventory has been physically verified by the Management at reasonable intervals during the year. The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets. other than situation of furniture and fixtures and office equipment where the situation recorded is the location of the Company’s different establishments. In case of materials lying with third parties. Hence. which in our opinion. As informed to us. a. b. 3. . the Company has not granted or taken any loans. no major weakness has been noticed in these internal control systems. In our opinion and on the basis of the information and explanations given to us. 1975. the going concern concept has not been affected. firms or other parties listed in the Register maintained under section 301 of the Companies Act. in our opinion.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. b. 1956 and the Companies (Acceptance of Deposits) Rules. In our opinion and according to the information and explanations given to us. is reasonable having regard to the size of the Company and the nature of its business. 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. 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.

Sales Tax. 28 . we have not carried out a detailed examination of the accounts and records with a view to determine whether these are accurate or complete. Accordingly. the Company is not a chit fund or a nidhi mutual benefit fund/society. prima facie. Service Tax.64 17. debentures or other investments. as on 31st March 2012. In our opinion. 8. According to the information and explanations provided to us and the records of the Company examined by us.83 9. According to the information and explanations given to us. the provisions of clause 4(xiii) of the Order are not applicable to the Company. However. 1944 State Sales Tax Acts Income Tax Act. the provisions of clause 4(xiv) of the Order are not applicable to the Company. 1961 10. Wealth Tax. b. 14. According to the information and explanations given to us and based on the records of the Company examined by us. the Company has an internal audit system commensurate with its size and the nature of its business. 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. 1956 in respect of its products and are of the opinion that. 12. Customs Duty and Cess that have not been deposited with the appropriate authorities on account of dispute.22 3. there were no dues in respect of Wealth Tax. the Company was regular in depositing undisputed statutory dues including Provident Fund. the Company has not granted any loans and advances on the basis of security by way of pledge of shares. Therefore. In our opinion and according to the information and explanations given to us. securities. The particulars of dues towards Excise Duty. 13. the prescribed accounts and records have been made and maintained. debentures and other securities. Employees’ State Insurance. the Company is not a dealer or trader in shares. the Company has not defaulted in repayment of dues to any financial institution or bank. Income Tax. 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. in our opinion. 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. Customs Duty. Cess and other material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us and based on our audit procedures. Service Tax. 7. 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. Excise Duty. 11.ANNEXURE TO THE AUDITORS’ REPORT contd. In our opinion. The Central Excise Act. Investor Education and Protection Fund. a.

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

R.65 0. 7th June 2012 Mumbai. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai. Manchanda Ramesh Shroff V.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 10 160.33 8447.16 1497.32 1824. Price & Co.50 0.41 8993.00 437. Rangarajan Partner Membership No.50 1519.00 600.31 55.79 160.39 357.79 Y.20 232. 41883 11 12 13 14 15 16 17 18 19 20 1 to 41 3002. Mohan Partner Membership No.98 8993. Hamied Joint Managing Director V. Sankar Aiyar & Co. 7th June 2012 30 . Kotwal M. 002785S R.K.56 661.83 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.06 773.67 300.98 771.83 385.45 461.12 10.45 29.92 212.R.65 253.04 83.K.06 435.94 211. No. Hamied Chairman & Managing Director S.N.24 573.30 85.58 6452.66 343.88 8447.45 21.15 223. Chartered Accountants Firm Reg.G.40 198.58 7389. Raghavan Pankaj Patel Directors 2867. No. Radhakrishnan Whole-time Director H.83 M.07 347.. Chartered Accountants Firm Reg..79 53.59 1883.C. 17748 For R.37 2. 109208W V.70 2.S.

Work-in-Process and Traded Goods Employee Benefits Expense Finance Costs Depreciation and Amortisation Expense Other Expenses 23a 23b 23c 24 25 26 27 2300.00 1123. Hamied Chairman & Managing Director S.64 6331. Chartered Accountants Firm Reg. Radhakrishnan Whole-time Director H.30 7125. 109208W V.73 67. Mohan Partner Membership No.24 728.96 M.39 Profit Before Tax Tax Expense Current Tax MAT Credit (entitlement)/utilisation Deferred Tax 277.34 1151.R. No.50 20.23 6977.52 5271.G. 17748 For R.79 5704..K.64 6422..C. Hamied Joint Managing Director V.73 Expenditure Cost of Materials Consumed Purchase of Traded Goods Changes in Inventories of Finished Goods.07 1799.55 11.63 282. Chartered Accountants Firm Reg.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.S. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai. Price & Co.50 148.21 26. 41883 41 1 to 41 Y. Sankar Aiyar & Co.13 (138.09 91.96 227. Rangarajan Partner Membership No.12 671.33 12.71) 540. No.70 (70.85 555. 7th June 2012 31 .03 1581.80 6398.00) 33.30 960. Manchanda Ramesh Shroff V.34 1421. Kotwal M. 7th June 2012 Mumbai. 002785S R.K. Raghavan Pankaj Patel Directors `14.92 248.46 2356.R.73 97.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 7074.00 `11.N.

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

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

For the purpose of calculating diluted earnings per share. on a year-on-year basis. the Company assesses whether there is any indication that any asset may be impaired. 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. Capital expenditure on Research and Development is shown as addition to Fixed Assets. The Company offsets. Other financing/ borrowing costs are charged to the Statement of Profit and Loss. If. 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. If any such indication exists. 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 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. up to the date such assets are ready for their intended use. at the Balance Sheet date. 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. 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. N Research and Development Revenue expenditure on Research and Development is recognised as expense in the year in which it is incurred. 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 current tax assets and liabilities. 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. M Impairment of Assets At each Balance Sheet date.NOTES TO THE ACCOUNTS contd. O Expenditure on Regulatory Approvals Expenditure incurred for obtaining regulatory approvals and registration of products for overseas markets is charged to revenue. P Government Grants and Subsidies Capital subsidy/Government grants are accounted for where it is reasonably certain that the ultimate collection will be made. 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. 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.

00 175.22 5.24.55 5.98 2011 Number of shares 12.937 4. Terms and Rights attached to Equity Shares The Company has only one class of equity shares having a par value of `2 per share. Details of Shareholders holding more than 5 percent shares in the Company 2012 Number of shares Dr.752 Equity Shares of `2 each (Previous year 80. Each holder of equity share is entitled to one vote per share.07 Shares allotted as fully paid-up by way of Bonus shares (during 5 years preceding 31st March 2012) 46.50.00 175.55 5.48.21.NOTES TO THE ACCOUNTS contd.01.78 160.78 160.00.814 equity shares of `2 each were allotted as Bonus shares by capitalisation of General Reserve and Securities Premium Account in May 2006.536 % Holding 15.750 4. Hamied Mrs.937 4.73 9.63.19.27. The Company declares and pays dividends in Indian Rupees.357 Equity Shares of `2 each fully paid (Previous year 80.53.59.59.82.98.000 Equity Shares of `2 each) Issued 80. ` in crore 2011 2012 2 Share Capital Authorised 87.50.21. The distribution will be in proportion to the number of Equity Shares held by the shareholder.82.78 175. the holders of equity shares will be entitled to receive remaining assets of the Company. Sophie Ahmed Life Insurance Corporation of India 12.27.171 % Holding 15.00 175.58 160. Y.29.14.74.68.000 8.78 160.22 5.58 160.58 160.19.000 9. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. after distribution of all preferential amounts.750 4.39.14.752 Equity Shares of `2 each) Subscribed & Paid-up 80.48.357 Equity Shares of `2 each fully paid) 160. Farida Hamied Mrs.000 Equity Shares of `2 each (Previous year 87.73 12.39.00.K.58 160.24.00 There is no change in the shares outstanding at the beginning and at the end of the reporting date and immediately preceding reporting date. In the event of liquidation of the Company. 35 .29.

` in crore 2011 0.20 2.92 ` in crore 2011 2012 5 Deferred Tax Liabilities Deferred Tax Liabilities arising on account of DEPB Incentives Depreciation 17.43 2297.43 125.93 232.43 100.Sales Tax Deferral Loan 2.37 ` in crore 2011 2716.97 2012 4 Long Term Borrowings Unsecured Deferred Payment Liability .39 2659.75 212.20 2.07 960.NOTES TO THE ACCOUNTS contd.00 64.43 1699.00 160.93 6452.23 160.96 8.05 3110.45 36 .93 1123.00 2841.52 214.70 100.26 7389.96 8.58 26.97 2616.70 184.72 2297.46 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 2716.89 Less: Appropriations Transferred to General Reserve Interim Dividend Proposed Dividend Tax on Dividend Balance at the end of the year 125.45 27.00 0.08 1428.92 2.58 36.08 1428.96 3421.

22 661. Small and Medium Enterprises based on available information with the Company is as under: 2012 i. Total interest accrued during the year b.39 The details of amounts outstanding to Micro. The principal amount and the interest due thereon remaining unpaid to suppliers a.56 ` in crore 2011 15. a.12 29. Normal interest accrued during the year.00 ` in crore 2011 2012 6 Long Term Provisions Provision for Employee Benefits . Small and Medium Enterprises Development Act.67 2012 8 Trade Payables Micro.95 434. Small and Medium Enterprises Others 14. as per the agreed terms b.00 10. a.26 600. both present and future) Unsecured Packing Credit from Banks 10.45 646. a. as per the agreed terms iv. The delayed payments of principal paid beyond the appointed date during the entire accounting year b.61 437. ` in crore 2011 21. 2006 iii.13 586.Leave Encashment (Note 24) 29.00 21. Total interest accrued during the year and remaining unpaid 37 ` in crore 2011 - - .00 2. Principal b. Interest due thereon ii. Normal interest payable for the period of delay in making payment.12 2012 7 Short Term Borrowings Loans Repayable on demand Secured Cash Credit from Banks (Secured against receivables and moveable assets including stocks.NOTES TO THE ACCOUNTS contd. Interest actually paid under section 16 of the Micro. for all the delayed payments.

01 22.05 211.Leave Encashment (Note 24) Employee Retirement Benefit Obligations .99 160.12 357.79 17.40 2012 ` in crore 2011 10 Short Term Provisions Provision for Employee Benefits .12 29.46 36.73 24.NOTES TO THE ACCOUNTS contd.47 0.94 * There are no amounts due and outstanding to be credited to Investor Education & Protection Fund.41 5.05 198.29 17.88 38 .98 124.95 106.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 0.58 26.Gratuity (Note 24) Proposed Dividend Tax on Proposed Dividend 7.26 6.91 12.72 13. ` in crore 2011 2012 9 Other Current Liabilities Current maturities of Long Term Debt .30 0.59 14.25 63.49 160.37 41.01 31.58 26. 0.73 117.83 300.

03. The gross block is net of Government grants/other subsidies Nil for current year (Previous year Goa `9.31 44. iii.63 3928.86 9.03.52 1060.64 49.10 5.80 239.48 1078. 39 Buildings and Flats Vehicles Total Previous year Notes: i.02 0.82 1.67 9.46 73.30 836. ii.06 75.40 crore (Previous year `25.37 1.40 58.63 65.18 1060.` in crore 11 Fixed Assets .03.79 12.77 2.44 920.11 For the Deletions/ year Adjustments 2011-12 1.69 9.98 10.55 0.75 126.05 343.97 157.25 65.55 34.64 1.12 DEPRECIATION/AMORTISATION NET BLOCK As at 31.14 0.57 1945.18 103.76 282.84 3928.66 48.66 Upto 31.92 1137.99 - 31.09 40.Tangible Assets GROSS BLOCK As at 01.89 1295.04 crore) used for Research and Development.53 6.11 Additions Deletions/ Adjustments As at 31.34 4298. The gross value of Buildings and Flats includes the cost of shares in Co-operative Housing Societies.13 993.71 69.13 444.83 5.05 7.28 3002.15 793.29 11.30 94.27 29.29 2.31 1866.03 1.47 884.12 As at 31.38 2867.12 70.06 248.04.65 Leasehold Land Plant and Equipments Office Equipments Furniture and Fixtures NOTES TO THE ACCOUNTS contd.63 - 29.97 crore.64 884.71 3024.00 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. The above additions to fixed assets during the year includes `17. iv.82 31.05 74. . Freehold Land at Mumbai Central and Vikhroli.12 Upto 31.03.47 2894.86 0.36 71.99 2750.17 3.64 67.03.20 crore and Indore `0.62 8.65 3.33 47.02 crore).11 ASSETS Freehold Land 74.54 105.68 29.82 30.

fully paid 45.16 0.16 0.15 0.12 133.072 (Previous year 60.06 40 . fully paid 60.`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 . fully paid .00.33.69 191.333 (Previous year Nil) Ordinary Shares of Biomab Holding Ltd. fully paid Investment in Associates 87.00.966 (Previous year 45. of AUD 1.000) Equity Shares of The Saraswat Co-operative Bank Ltd.000) Ordinary Shares of Cipla (Mauritius) Ltd.72 3.47 crore (Previous year .00 0.12 133.00.001 (Previous year 7.NOTES TO THE ACCOUNTS contd.36 461.69 crore) 0.072) Equity Shares of Meditab Specialities Pvt.52 0. of `10 each. fully paid .`346.`39000 (Previous year .83 0. fully paid 7.966) Equity Shares of Goldencross Pharma Pvt. Ltd. of USD 1 each.`10000 (Previous year . ` 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 10.00 0.37 347. of USD 1 each.`51.00 0.78 18. Ltd.00 0.`461.00 - Other Investments Investments in Equity Instruments (Unquoted) 1. of `10 each.000 each.16 18.72 3.52 0. of `1 each.000 (Previous year 1.69 191. fully paid Investment in Joint Ventures 1 (Previous year Nil) Ordinary Share of Aspen-Cipla Australia Pty Ltd.00.`10000) Investments in Government and Trust Securities National Savings Certificates .00.97 (Previous year Nil) 114.

24 385. # 1.24 0.58.25 11.00.00 188.13.052 70.04 13.90 435.IP .17.15 0.39 25.NOTES TO THE ACCOUNTS contd.52.859 18.05 19.00 10.798 30.Super Institutional Plan Growth 41 2. of units ` in crore 2011 15 Current Investments Investments in Mutual Funds (Unquoted) Axis Mutual Fund “Axis Liquid Fund” .756 50. Ltd.Institutional Premium Growth Birla Sun Life Mutual Fund “Birla Sun Life Floating Rate Fund” .Institutional Growth Birla Sun Life Mutual Fund “Birla Cash Plus” .24 No.20 crore) VAT Receivable Secured against Bank Guarantees * Includes `55.285 1.20 crore.Short Term .00 .72.567 7.00 143.77 75.15 26.39 70.Growth Option Deutsche Asset Management “DWS Insta Cash Plus Fund” .01 33.650 1. Considered Good Capital Advances* Security Deposits MAT Credit Entitlement Receivable Advance Taxes and TDS (Net of Provision for Tax `505.18.Growth Baroda Pioneer Mutual Fund “Baroda Pioneer Liquid Fund” .187 14.61 26.73. Previous year `456.“Axis Fixed Term Plan” Series 23 (3 Months) .03 6.74 crore (Previous year `55.09 17.Institutional Plan .Meditab Specialities Pvt.50 2012 ` in crore 2011 0.Growth BNP Paribas Mutual Fund “BNP Paribas Overnight” .51 23.65 3.95.98 70.000 81.21.77 173. ` in crore 2011 2012 13 Long Term Loans and Advances Secured.75 14.570 19. Considered Good Capital Advances# Unsecured.00 5.775 1.15 14 Other Non-Current Assets Fixed Deposits as Margin Money (maturity more than 12 months) 0.71.Institutional Growth Daiwa Mutual Fund “Daiwa Liquid Fund “ . of units 2012 No.74 crore) paid to wholly owned subsidiary .172 4.84 20.Institutional Growth Axis Mutual Fund .39 64.

Super Institutional Growth Plan Kotak Mahindra Mutual Fund “Kotak Liquid” .Growth UTI Mutual Fund “UTI Liquid Cash Plan” .79.092 1.33.62 11.Growth JP Morgan Mutual Fund “JP Morgan India Liquid Fund” .77.Super Institutional Growth IDBI Mutual Fund “IDBI Liquid Fund” .78.15 10.00.249 1.70 13.`573.00 10.Growth Plan Franklin Templeton Mutual Fund “Templeton India Treasury Management Account” .01 19.44.32 12.85.Super Institutional Plan Growth HDFC Mutual Fund “HDFC Cash Management “ .Savings Plan Growth ICICI Prudential Mutual Fund “ICICI Prudential Liquid Plan” .Appreciation Taurus Mutual Fund “Taurus Liquid Fund” .529 3.765 84.85.Super Institutional Growth Sundaram BNP Paribas Mutual Fund “Sundaram Money Fund” .07.473 - 18.99.42.00 18.623 1.93.831 1.61 18.Institutional Premium Growth Peerless Mutual Fund “Peerless Liquid Fund” .Super Institutional Growth Pramerica Mutual Fund “Pramerica Liquid Fund” .71.Super Institutional Growth Union KBC Mutual Fund “UKBC Liquid Fund” .96.91 42.Super Institutional Plan .25 18.15 32.00 22.Institutional Growth Option UTI Mutual Fund “UTI Money Market Fund” .00.Growth Option Religare Mutual Fund “Religare Liquid Fund” .68 28.14.289 86.NOTES TO THE ACCOUNTS contd.500 2.69.66.41 17.225 1.92.Institutional Growth Plan Aggregate amount of unquoted investments .00 573.721 22.25 32.348 2.38.000 10.01.81.780 2.63.Series 5” .00 40.584 1.Super Institutional Growth Edelweiss Mutual Fund “Edelweiss Fixed Maturity Plan .`223.438 1. ` in crore 2011 No.502 68.Growth Option Reliance Mutual Fund “Reliance Liquid Fund .82 39.Growth IDFC Mutual Fund “IDFC Cash Fund” .567 37.32 crore (Previous year .52.Super Institutional Plan C Growth ING Vysya Mutual Fund “ING Vysya Liquid Fund” .92 13.59 crore) 1.80 10.93 33.Treasury Plan” Institiutional .965 92.67.50 35.898 99.991 3.27 35. of units 15 Current Investments .979 97.939 31.00 - - 1.26 10. Edelweiss Mutual Fund “Edelweiss Liquid Fund” .455 88.64.34.Super Institutional Growth Tata Mutual Fund “Tata Liquid Super High Investment Fund” .19.362 74.59 42 .05 8.595 62.61 223.84.00 20.91. of units 2012 No.contd.017 1.76.Super Institutional Growth Option JM Financial Mutual Fund “JM High Liquidity Fund” .72.

16 84.14 410.75 crore.76 1432. Considered Doubtful Outstanding over Six Months Less: Allowance for Doubtful Debts 86.24 55.93 84.59 1.31 138.79 0.62 13. Previous year `98.13 446.50 878.04 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) 38.81 135.72 411. Considered Good Outstanding over Six Months Others Unsecured.49 crore.75 crore) Finished Goods (including Stock-in-Transit of `90.03 crore) Work-in-Process (including Stock-in-Transit of `8.12 153.42 83.74 441.66 1519.84 crore) Traded Goods 830. ` in crore 2011 2012 16 Inventories (Refer Note .11 1358.NOTES TO THE ACCOUNTS contd.98 43 .16 1497.61 1.16 1883. Previous year `16.55 138.06 69.13 crore.23c) Raw Materials and Packing Materials (including Stock-in-Transit of `103.40 1. Previous year `119.66 138.16 2012 ` in crore 2011 17 Trade Receivables Unsecured.37 12.84 1824.

46 0.95 31.25 207.NOTES TO THE ACCOUNTS contd.64 61.61 2.90 110.27 2.98 53.25 260.36 0.61 0.73 44 . 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 258.28 773.36 8.73 20 Other Current Assets Export Incentives Receivable 53. ` in crore 2011 2012 19 Short Term Loans and Advances Unsecured (Considered good.03 25.87 9.98 2012 21 Revenue from Operations Sale of Products Sale of Services Export Incentives Technical Know-how/Fees Scrap Sales Others 6904.86 2.72 6398.60 771.26 330.79 2012 ` in crore 2011 85.95 120.49 63.30 Share Application Money .10 205.54 5. employee loans and prepaid expenses 41.46 0.82 0.71 165.33 85.01 80.46 0.56 0.91 27.70 20.29 7074.10 61.52 2.46 0.10 0.26 301.25 258.33 ` in crore 2011 6183.25 205.27 0.Pending Allotment Capital Subsidy Receivable Balances with Statutory/Revenue Authorities Others* *Includes advances to sundry creditors.

69 303.83 20. 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 778.29 0.65 91.30 10.17 51.83 0.83 36.00 146.42 3417.23 119.66 3377.55 6.66 831.64 F.83 580.97 36.O.69 37.68 148.59 3728.31 366.59 337.B.56 1.91 ` in crore 2011 610.68 6904.30 45 .67 ` in crore 2011 7.87 Earnings in Foreign Exchange 2012 3692.54 8.48 75.16 2.21 3644.97 0.33 82.96 879. 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 8.65 41.95 214.16 214.56 505.23 41.27 125.65 100.03 44.36 66.30 105. 21 Revenue from Operations .64 52.45 31.70 1.26 36.99 5303.76 1.83 6073.58 32.17 ` in crore 2011 3361.41 482.NOTES TO THE ACCOUNTS contd.49 54.contd.03 29.92 6183.46 584.

45 64.55 46 .57 830.95 93.30 2392.00 3234.16 109.27 237.03 30.12 2356.83 2356.26 572.81 1005.NOTES TO THE ACCOUNTS contd.45 2300.30 91.85 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 1466.41 76.85 ` in crore 2011 1075.72 2300.85 2300.63 31.12 2012 23b Purchases of Traded Goods Bulk Drugs Tablets and Capsules Liquids Creams Aerosols/Inhalation Devices Injections/Sterile Solutions Others 81.79 29.00 45.13 % 59 41 100 2012 884.60 671.53 26.55 796.59 684.26 2588.53 2392.20 555. ` in crore 2011 2012 23a Cost of Materials Consumed Consumption of Raw and Packing Materials Opening Stock Add: Purchases Less: Closing Stock 878.59 558.42 105.45 2449.14 2253.95 93.14 2356.61 107.12 ` in crore 2011 155.45 2300.30 91.90 24.83 2356.14 2449.26 878.85 % 61 39 100 2011 Value 1444.08 29.42 29.24 102.77 925.12 646.45 211.43 3131.

47 4.79 284.58 3.68 3.33 272.53 12.87 38.12 22.NOTES TO THE ACCOUNTS contd.01 866.13 9.12 153.12 153.80 40. ` in crore 2011 2012 23c Changes in Inventories of Finished Goods.67 73.11 382.84 ` in crore 2011 110.19 97.16 387. 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 410.24 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 93.21 65.74 19.35 55.81 9.29 135.53 6.73 441.00 11.02 411.78 317.74 441.92 33.06 27.02 (138.16 1005.31 410.54 410.71) 47 .16 1005.75 4.84 993.80 4.81 135.78 11.95 153.09 25.35 411.13 446.88 446.10 5.54 25.20 300.76 5.42 55.98 33.74 441.85 20.

30 2012 Employees’ Pension Scheme Provident Fund 11. Benefits such as salaries.16 10. Charge to the Statement of Profit and Loss based on contributions ` in crore 2011 9.99 24.62 38. which is recognised by the Income Tax authorities and administered through trustees/ appropriate authorities. b.NOTES TO THE ACCOUNTS contd. which require interest shortfalls to be recompensed. a defined benefit plan based on actuarial valuation as of the Balance Sheet date. The Company has two schemes for long term benefits namely.21 Employee Benefits i. short term compensated absences. to reliably measure provident fund liabilities.49 20. The Guidance Note on implementing the revised AS-15.38 15.31 14.33 34.88 728. Provident Fund and Gratuity: The Provident Fund plan.33 2012 24 Employee Benefits Expense Salaries and Wages Contribution to Provident and Other Funds Staff Gratuity Staff Welfare Expenses 639. The Company provides for gratuity. Pending the issuance of the Guidance Note from the Actuarial Society of India.98 32. The employees of the Company are also entitled to leave encashment and compensated absences as per the Company’s policy. ` in crore 2011 471. Long Term Employee Benefits The disclosures as per the revised AS-15 are as under: a.18 540. and the expected cost of bonus. wages. 1952) since the Company has no further obligation beyond making the contributions. ii. ex-gratia are recognised in the period in which the employee renders the related service. Short Term Employee Benefits All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. the Company’s actuary has expressed an inability.47 48 . Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states benefit involving employer established provident funds. are to be considered as defined benefit plans. based upon which. Accordingly. a funded scheme is operated by the Company’s Provident Fund Trust.88 26.. the Company contributes all the ascertained liabilities to the Insurer Managed Funds. 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. the Company is unable to present the related information.11 32.

84 1.03) 17.23 21.36) 6.75 (0.52 33.20 10.36 2012 Gratuity (Funded Plan) i.62 46.08 10.17 0.23 (26.85 15.00 (4.11 1.52 (29.69 4. 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 2.56) 1.20 2.38 5.49 26.19) 26.09 4. 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.87 4.17 0.69 2.09 (1.74 (0.NOTES TO THE ACCOUNTS contd.75) 5.21 5.19) 33.06 (4.71) 29.17) 9.21 2. c.52 (4.14 2.36 2. 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. Actual return on plan assets Expected return on plan assets Actuarial gain/(loss) on plan assets Actual return on plan assets 49 2.74 (2. Disclosures for defined benefit plans based on actuarial reports as on 31st March 2012 ` in crore 2011 Gratuity (Funded Plan) 26.71) 46.03 33.18 .contd. 24 Employee Benefits Expense .50 (4.74 5.56) 7. 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.

63 50 .46) (0.61 0.(gain)/loss ix.06 (0.50% 8.50% 8.56) 5.25% 100% 100% ` in crore 2011 Gratuity (Funded Plan) 2012 Gratuity Defined benefit obligation Plan assets Surplus/(Deficit) Experience adjustment on plan liabilities . Principal Actuarial assumptions used Discounted rate (per annum) Expected rate of return on plan assets (per annum) The estimates of future salary increases.02 8.contd.22 0.68) ` in crore 2011 5.(gain)/loss Experience adjustment on plan assets .(gain)/loss 46.92 33.58 15.87 9.36) 6. Experience adjustments Defined benefit obligation Plan assets Deficit/(Surplus) Experience adjustment on plan liabilities .21) 9.23 26.21 2011 33.67) (2. 24 Employee Benefits Expense .84 (4.30) 2.14 7. Asset information Insurer managed funds vii.17) 2012 25 Finance Costs Interest Paid Applicable Loss on Foreign Currency Transaction and Translation 12.36 (0. Expected employer's contribution for the next year Amounts for the current and previous four periods are as follows: ` in crore 2008 17.36 (6.89 14.NOTES TO THE ACCOUNTS contd.78 12.50 26. take account of inflation.52 29.13 14. promotion and other relevant factors. viii.03 (17. seniority.21 (3.87) 9.23 (26.56) 2010 26. considered in actuarial valuation.57 2009 20.22 0.25% 8.91 (4. 2012 Gratuity (Funded Plan) vi.92 10.85 11.(gain)/loss Experience adjustment on plan assets .49) 11.36 (0.14 21. such as supply and demand in employment market.21 6.

57 14.75 0.72 45.48 0.58 0.85 45.93 0. Samples and Grants Miscellaneous Expenses 218.48 4.15 93.18 275.07 282. 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 .19 132.61 1581.56 23.30 50.72 59.65 53.06 50.76 108. ` in crore 2011 248.52 43.52 100.37 52.NOTES TO THE ACCOUNTS contd.50 9.01 15.07 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.10 0.79 51 .50 36.45 1799.16 13.Clinical Trials.04 183.57 211.52 2012 26 Depreciation and Amortisation Expense Depreciation on Tangible Assets Amortisation of Goodwill on Acquisition 282.01 248.67 54.94 50.93 20.23 91.03 ` in crore 2011 249.91 0.65 0.02 0.04 65.80 111.78 7.53 19.08 91.63 24.32 63.48 0.85 5.44 225.58 44.08 89.47 9.56 139.64 109.10 36.32 25.

50 1133.42 146.97 4.14 21.09 131.88 45.83 15.77 41. basis Raw Materials and Packing Materials Components and Spare Parts Capital Goods 954.40 44.34 32.02 83.61 25.76 3.67 4.30 22.87 12.13 20.75 259.85 17.48 ` in crore 2011 12.44 156.28 24.39 1391.32 29.04 41.03 19. 1961 Capital Expenditure Revenue Expenditure Employee Benefits Expense Raw Materials and Consumables Research .39 172.22 17.38 27.42 23.43 323.07 4.17 24.18 52.92 25.79 284.64 19.87 ` in crore 2011 1170.11 19.NOTES TO THE ACCOUNTS contd.62 306.11 21. ` 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 .64 28.11 76.26 52 .06 28.Clinical Trials and Grants Other Expenditure 25.99 28.74 179.18 2012 30 Value of Imports on C.90 2012 29 Net difference in foreign exchange credited to the Statement of Profit and Loss 52.F.Clinical Trials and Grants Printing and Stationery Travelling Expenses Other Research and Development Expenses 17.80 56.60 20.08 155.83 Amount eligible for weighted deduction under section 35(2AB) of the Income Tax Act.22 51.I.

07 220..03 Note: The Company uses forward contracts/derivatives for hedging purposes and/or reducing interest costs.29 28.21 ` in crore 2011 460. The Company retains substantially all risks and benefits  of ownership of the leased asset and hence classified as operating lease. etc. and therefore. 53 .86 214.59 2012 31 Expenditure in Foreign Currency Legal and Professional Charges Royalties Interest Commission Other Matters – Travelling. therein as applicable) under operating lease or leave and license agreements.24 128.  Lease payments are recognised in the Statement of Profit and Loss under ‘Rent’ in  Note 27. 34 Segment Information In accordance with AS-17 ‘Segment Reporting’.08 119.52 32.10 Currency USD USD USD Cross Currency INR INR INR 2012 1105. 35.  Lease income on such operating lease is recognised in the Statement of Profit and Loss under ‘Rent’ in Note 22.29 171. ` in crore 2011 23. These are generally not non-cancellable and range between 11 months to 5 years under leave and licence.11 993. 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 401.94 32 Lease Accounting Where the Company is a Lessee The Company has obtained certain premises for its business operations (including furniture and fixtures. segment information has been given in the Consolidated Financial Statements of Cipla Ltd.69 373. Where the Company is a Lessor The Company has given certain premises under operating lease or leave and license agreement. no separate disclosure on segment information is given in these financial statements. or longer for other lease and are renewable by mutual consent on mutually agreeable terms.73 0.NOTES TO THE ACCOUNTS contd.74 402.20 0.18 195. The Company has given refundable interest free security deposits in accordance with the agreed terms.

21 956. This was contested before the jurisdictional High Courts wherein it was held in favour of the Company.NOTES TO THE ACCOUNTS contd.75 27. 1979.64 363.29 36 In a proceeding instituted against the Company for patent infringement of an animal health care product. The orders were challenged before the Hon’ble Supreme Court by the Government.88 100. the District Court is required to initiate hearings to determine the award for damages.74 747. which has not yet commenced.46 crore along with interest due thereon is payable into the DPEA under the Drugs (Prices 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.92 crore (inclusive of principal amount for the period July 1995 to April 2009 and interest upto January 2012).02 363. ` 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 291.44 49. 37 The Government of India has served demand notices in March 1995 and May 1995 on the Company in respect of six bulk drugs.67 1110.64 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. Hence no provision is considered necessary in respect of notice of demand aggregating to `1654. the US District Court issued an injunction and the Federal Circuit Court at Washington upheld this order. 1979 on account of alleged unintended benefit enjoyed by the Company.97 36.19 179. The Company is also examining further legal remedies as may be advised. Pursuant to this.93 528. claiming that an amount of `5.61 665.45 204.55 3.96 1. 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.23 4. 38 In 2003. 54 . Government of India on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order.54 7.51 20.25 1. the Company received notice of demand from the National Pharmaceutical Pricing Authority.82 1320.73 29.07 218. Therefore. The Company has been legally advised that on the basis of these orders there is no probability of demand crystallising.

has made the following investments in its subsidiaries 40 Related Party Disclosures i. Ltd.020 10.42 1.81 15. 6. Loan given to Meditab Specialities Pvt. No. b. Four M Propack Pvt. has made the following investment in its subsidiary a. Sitec Labs Pvt. c.96.50 248. Loans given to employees as per the Company’s policy are not considered. Subsidiary Subsidiary 15. Ltd.00 189. a.20. 8. Medispray Laboratories Pvt. Name of the Company Subsidiaries (held directly) Cipla FZE Goldencross Pharma Pvt. The above loans are repayable on demand. Ltd. 9. 2. Medispray Laboratories Pvt. Name of the Company Nature As at 31st March 2012 Maximum balance during the year 30.000 2.00 242. Ltd. b. Cipla-Oz Pty Ltd. Ltd. Subsidiaries (held indirectly) Cipla (UK) Ltd. ii. Meditab Specialities New Zealand Ltd.21 219. Meditab Specialities Pvt. Sitec Labs Pvt. Meditab Specialities Pvt. Ltd. Ltd. of shares Goldencross Pharma Pvt. 58. 5. Ltd. Ltd. 7. The related parties where control exists or where significant influence exists and with whom transactions have taken place: a. 10. Ltd.NOTES TO THE ACCOUNTS contd. Meditab Holdings Ltd. 39 Loans and Advances in the nature of Loans given to Subsidiaries and Associates Sr. Cipla (Mauritius) Ltd. has made the following investments in its subsidiaries Meditab Holdings Ltd. Ltd. 4. Subsidiary Companies including step-down subsidiaries and associate companies: Sr. No. No. is interest-free.47 i. STD Chemicals Ltd.100 51. 55 . Four M Propack Pvt.31 As at 31st March 2011 ` in crore Maximum balance during the year 69. Meditab Pharmaceuticals South Africa (Pty) Ltd.000 100 30.100 Meditab Specialities Pvt. Ltd. Notes: Goldencross Pharma Pvt. 1. a. Ltd. iii. 3. 2.

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

40 Related Party Disclosures .33 6.39 0.50 0.46 0.73 2012 2011 2012 1.35 1.78 0.67 18.13 225.00 252.97 2011 1.34 2.97 2011 1.41 1.25 24.00* 59.14 29.50 76.contd.86 6.28 17.17 114.78 112.93 29.25 15.83 338.60 64.51 11.31 0. Interest received Goldencross Pharma Pvt.07 22.70 179.54 0.95 10.86 0.10 182.25 33.03 22.32 1.11 198.83 1.00* 0.93 178.94 22.26 96.97 1. Ltd.31 0.02 0.87 * `20040 ** `50.10 186.00* 179.79 16.69 1.53 1.00 29.01 189.84 18.95 59.29 34.73 ` in crore 2011 57 .04 41. B.01 1.41 8.67 0. Loans repaid Goldencross Pharma Pvt.67 16.25 328.84 1. Meditab Specialities Pvt.03 70.46 10.36 54.39 27.13 247.19 1.10 1.41 1. 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 17.74 453.37 6.02 0.76 314.11 21.50 0.50 149.25 328. Meditab Specialities Pvt.62 33.50 59.00# 20.29 # `45000 Disclosures in respect of material related party transactions during the year: 2012 A.21 0.00** 112.90 46.00 252.86 46.52 0.25 1.53 20.39 0.35 6.93 158.NOTES TO THE ACCOUNTS contd.34 0.55 102.32 5. ii.86 1.97 1. Ltd.50 114. Ltd.01 1.73 0.74 58.07 0.00* 179.24 21. 30.49 5. Ltd.

00** 114. Ltd. Advanced Remedies Pvt. Medispray Laboratories Pvt.30 32.00 225.93 .57 2. Samina Vaziralli F. Mediorals Laboratories Pvt. Mediorals Laboratories Pvt. Remuneration Dr.91 2.30 33.78 30.21 10. Ltd.89 2.25 11.84 0. Ltd.34 25.27 9. Radhakrishnan Mr. Okasa Pvt. Ltd. Shanghai Desano Pharmaceuticals Co.98 174.32 1.40 0. Ltd. Medispray Laboratories Pvt.96 3.21 11. Ltd. Investment in Equity Goldencross Pharma Pvt.00 27.14 18. Okasa Pharma Pvt.68 8.02 4.61 15. Hamied Late Mr. Ltd. Advanced Remedies Pvt.contd.58 8. Ltd. Ltd. Ltd.63 9.56 0.52 7.16 328.16 63. 40 Related Party Disclosures .20 16.22 0.67 6.74 169. D.13 167. Ltd.09 0. Purchase of Goods Goldencross Pharma Pvt. Meditab Specialities Pvt. Ltd. M.90 58 ` in crore 2011 191. Meditab Specialities Pvt.94 5.67 252.78 114. Shanghai Desano Chemical Pharmaceutical Co.K.04 0. Processing charges paid Goldencross Pharma Pvt. G. S.53 54. Loans given Goldencross Pharma Pvt. Ltd.00 82. Aspen-Cipla Australia Pty Ltd. Okasa Pharma Pvt. Amar Lulla Mr.66 25.51 12.NOTES TO THE ACCOUNTS contd.00* 0.65 5. Four M Propack Pvt.81 247. Y. Meditab Specialities Pvt. Kamil Hamied Mrs. Ltd. Ltd. Ltd.61 453. Biomab Holding Ltd.12 133. E.K. Ltd.84 112. Ltd. Hamied Mr. Ltd.62 2. Ltd.03 6.64 3.Ltd. 2012 C. Meditab Specialities Pvt.10 3. 0.84 6. Okasa Pvt.36 2.72 3. Cipla (Mauritius) Ltd.

Okasa Pvt. Ltd. Ltd. 2012 H.37 6.42 1. Ltd. Ltd.91 10. 46.37 0. Meditab Specialities Pvt. Four M Propack Pvt.46 8.39 1.46 29. M. Ltd.31 1. Meditab Specialities Pvt.91 0.30 0.05 14. Shanghai Desano Chemical Pharmaceutical Co. Ltd.23 1.01 0.03 0. Okasa Pharma Pvt.33 4. L.36 178. Ltd.95 46. Sale of Fixed Assets Meditab Specialities Pvt. Research Grants paid Stempeutics Research Pvt. Medispray Laboratories Pvt.95 10. Ltd. Ltd. Ltd. Ltd.39 0.55 92. Advanced Remedies Pvt. Ltd.76 0.97 0.53 0. Ltd. K. N. Advances paid against services Stempeutics Research Pvt.contd. Ltd. Sitec Labs Pvt. J. Freight charges paid Four M Propack Pvt. I.05 0.NOTES TO THE ACCOUNTS contd. Medispray Laboratories Pvt. Ltd.10 6. Okasa Pharma Pvt. Mediorals Laboratories Pvt. Ltd.53 10. Ltd. Ltd.55 0.86 198.69 .34 0.45 1. Ltd. Ltd.37 158.01 0.80 0. Processing charges received Meditab Specialities Pvt.43 2.34 0.14 0. Testing & Analysis charges paid Sitec Labs Pvt. Quality Chemical Industries Ltd. Advanced Remedies Pvt.01 1.19 2. Sale of Goods Goldencross Pharma Pvt. Okasa Pvt.10 0. Mediorals Laboratories Pvt. 40 Related Party Disclosures .82 0.04 5.03 1.25 2.35 59 ` in crore 2011 29.01 16. Ltd. Ltd.41 56.

10 0.03 0.34 70.15 2.02 1.72 7.40 6.50 ` in crore 2011 60 . Service charges paid STD Chemicals Ltd. STD Chemicals Ltd.41 4.55 0. Ltd. Medispray Laboratories Pvt.63 4. Purchase of Shares Good Earth Remedies Ltd.51 1.38 0.37 0.79 0.37 0. Okasa Pvt. 3. Outstanding payables Goldencross Pharma Pvt. Cipla (UK) Ltd. Advanced Remedies Pvt. Donations given Cipla Public Charitable Trust Cipla Foundation Q. Cipla-Oz Pty Ltd.31 0.42 8. Globus Healthcare Ltd.contd. Shanghai Desano Pharmaceuticals Co. 40 Related Party Disclosures .31 5. Cipla (UK) Ltd. Ltd.60 6.06 1.00 5. S. Shanghai Desano Chemical Pharmaceutical Co.34 1.32 0. Ltd.29 0. Ltd. P.83 5.12 9.13 20.28 0.NOTES TO THE ACCOUNTS contd.79 0.00# 0.51 0.46 0. Ltd.42 34. Okasa Pharma Pvt.61 1. Ltd.69 10. Mediorals Laboratories Pvt. Four M Propack Pvt. Ltd. Ltd. Ltd.23 7.41 0.13 0.69 12. R. Ltd. 2012 O.02 0.03 0. Medispray Laboratories Pvt. Cipla-Oz Pty Ltd.01 0. Rent paid Okasa Pvt. Ltd.68 1.66 0. Sitec Labs Pvt. Ltd.

54 6.39 80.contd. 41883 2012 1123.21 41 Basic and Diluted Earnings per share has been computed as under Profit After Tax (` in crore) Weighted Average No. 40 Related Party Disclosures . Meditab Specialities Pvt. Radhakrishnan Whole-time Director H. Rangarajan Partner Membership No.00 296.14 39. Chartered Accountants Firm Reg. Sitec Labs Pvt.09 1. Ltd. Ltd.00 M.86 1. Mediorals Laboratories Pvt. Chartered Accountants Firm Reg. Outstanding receivables Goldencross Pharma Pvt. Ltd. Okasa Pharma Pvt. Ltd.00 `2. 17748 For R.357 `11.G. Okasa Pvt.. 15.N.K. Mohan Partner Membership No. Shanghai Desano Chemical Pharmaceuticals Co.C. No.93 *`50. Ltd.39 6.29. of Shares Outstanding Basic and Diluted Earnings per share Face value per share As per our report of even date For V.K. 7th June 2012 Mumbai.55 338. Medispray Laboratories Pvt.81 2. Sankar Aiyar & Co.29. Hamied Chairman & Managing Director S. 2012 T. Ltd.32 16.10 56. 109208W V. Quality Chemical Industries Ltd.00 Y.NOTES TO THE ACCOUNTS contd.29 ** `51. Stempeutics Research Pvt. Shanghai Desano Pharmaceutical Investment Co. 7th June 2012 61 . Raghavan Pankaj Patel Directors 2011 960. 002785S R.S. Ltd.21.357 `14. Hamied Joint Managing Director V. Price & Co. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.33 12.97 # `45000 ` in crore 2011 51.R. Manchanda Ramesh Shroff V.96 80.21. Ltd.R. Ltd.29 182.96 `2. Ltd.03 15.48 0.21 0. No.. Kotwal M.

88) 1243.66 167.57 (30.56 1400.67 (204.07 12.34 (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 (548.97) (36.13 (27.29 2.19) (370.64) (328.39 248.09 1151.28 0.29) (0.10) (5228.54) (8.48 (7.97 1.00** (33.89 (157.25 11.95 (55.78) (687.60) 4.92 9.50 (8.34) (1046.58) 267.80 10.56) 36.36 (322.03 5.82 236.76) 12.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 1421.46 282.34 1730.07 (255.47) 64.88 8.97) (0.18) 5251.23 36.56 1967.08 58.07) 7118.55 (1136.56) 54.73) 987.78 (1.65) 249.27) 1645.78) 0.83 (53.00* (114.30) 19.54) (7468.83) 309.26) (B) .00) (8.41) 0.85 (2.14 (5.

14 60.79 crore) on account of unclaimed dividend. Rangarajan Partner Membership No.67) 172. Kotwal M. Cash and Cash Equivalents includes `13.67) (64.06 23. Chartered Accountants Firm Reg.05) (C) (A)+(B)+(C) (627.29 ** `51.92) 83. No. which are not available for use by the Company. 109208W V.98 55.S. Chartered Accountants Firm Reg. 7th June 2012 Mumbai. Hamied Joint Managing Director V.C.G. Mohan Partner Membership No. 41883 Y. Raghavan Pankaj Patel Directors M.13) (160. No..74 (428.39) (5. Radhakrishnan Whole-time Director H. Cash and Cash Equivalents represent cash and bank balances and fixed deposits with banks.58) (26.K.23) (28. Price & Co. As per our report of even date For V. 002785S R.CASH FLOW STATEMENT contd. ii.06 Notes: i.R. 17748 For R.14) (160.R.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. Manchanda Ramesh Shroff V. Sankar Aiyar & Co. Hamied Chairman & Managing Director S.23) (10.84 83. 7th June 2012 63 .97 200.00 (628.N. ` in crore 2011 867.58) (26. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai..59 crore (Previous year `12.K.47) (12.

09) (0.K. Ltd.E.78 (2. Manchanda Ramesh Shroff V.12 3.22 0.36 0.15 2.6275 41. 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.55 16.` in crore Reporting Currency Exchange Rate on 31.12) (0.03 0. 9 Meditab Holdings Ltd.70 0.32 0.03 0.59 (0.96 47.K.New Zealand India India U.80 0.01) (0. 8 Medispray Laboratories Pvt. Ltd. 11 Meditab Specialities New Zealand Ltd.09) Mauritius U.91 157.C.03) 0.73 1.R. 7 Goldencross Pharma Pvt.A.30 3.36) 1.15) 3.88 0.32 357. Hamied Joint Managing Director V. Radhakrishnan Whole-time Director H.23 0.14 (0.01 0. 10 Meditab Pharmaceuticals South Africa (Pty) Ltd.8750 6.56 0.04) (5.10) 0. 2 Cipla (UK) Ltd. 12 Meditab Specialities Pvt. Name of the Subsidiary Company 1 USD GBP AED AUD TRY INR INR INR USD ZAR NZD INR INR GBP Cipla (Mauritius) Ltd.26 0.13 50. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.93 57.33 9. Ltd.01 4. 5 Cipla İlaç Ticaret Anonim Şirketi 6 Four M Propack Pvt Ltd.28 0.05 0.93 11.75 Y.67 0.0000 1.43 233.42 0.36 187.02 (0.16 1.K.24 13.0000 1.27 0.10) 0.04 20.8075 1.8750 81.73 2. Ltd.89) 0.24) 10.9100 28.0000 1.04 (0.0000 81.17 283.4575 13. U.05 41. 7th June 2012 13 Sitec Labs Pvt.2012 50. INFORMATION ON SUBSIDIARIES 64 M.51 0.29 (0.74 384.02) (0.53 0.03. 14 STD Chemicals Ltd.73 0.35 5.35 1.93) 17.10) (0.06 (0.06 14.13 (0. 3 Cipla FZE 4 Cipla-Oz Pty Ltd.42 0.0000 50.56 (0.91 0. Raghavan Pankaj Patel Directors .89 0.60 25.05 0.36 42.R.61 48.00* (0.90 52.02 0.12) 0.69 (48.14 0. No. * `662.25) (0.10) 0.00 0.02 0.8525 52.4575 1.30 0.01 (0.5066 1.K.50) 289.59 0.08 (0.22 0.98 88.04) (5. Hamied Chairman & Managing Director S. Australia Turkey India India India Mauritius South Africa .55 9.65 15.39 39. Kotwal M.13 1.08 0.05 193.02) 150.47 0.S.

Price & Co. whose financial statements reflect total assets of `423. Rangarajan Partner Membership No.. 8. of the profit of the Group for the year ended on that date. We did not audit the financial statements of certain subsidiaries. which reflect total assets of `632. We believe that our audit provides a reasonable basis for our opinion. and also the consolidated Statement of Profit and Loss and the consolidated Cash Flow Statement for the year ended on that date annexed thereto. For R. An audit also includes assessing the accounting principles used and significant estimates made by the Management. Without qualifying. 41883 Mumbai. total revenue of `211.94 crore.N. Our responsibility is to express an opinion on these financial statements based on our audit. evidence supporting the amounts and disclosures in the financial statements. In the case of the consolidated Statement of Profit and Loss. No.46 crore for the year then ended have been audited by one of us. Financial statements of certain subsidiaries. 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. 7th June 2012 65 2.75 crore for the year then ended. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. For V. 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. We have audited the attached consolidated Balance Sheet of Cipla Limited (the Company) and its subsidiaries (collectively referred to as the Group). We have conducted our audit in accordance with the auditing standards generally accepted in India. 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. 002785S R. Chartered Accountants Firm Reg. Chartered Accountants Firm Reg. In the case of the consolidated Cash Flow Statement. total revenue of `104.97 crore as at 31st March 2012. 6. In the case of the consolidated Balance Sheet. Based on our audit as aforesaid. as well as evaluating the overall financial statement presentation. 2006. 3. Consolidated Financial Statements and AS-23. 7th June 2012 . 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. of the cash flows of the Group for the year ended on that date. as at 31st March 2012. No.00 crore and net cash outflows of `0. 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. 17748 Mumbai.AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS OF CIPLA LIMITED AND ITS SUBSIDIARIES 1. and our opinion is based solely on the report of other auditors. 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.G.. 4. Accounting for Investments in Associates in Consolidated Financial Statements as notified by the Companies (Accounting Standards) Rules.04 crore as at 31st March 2012. 5.16 crore and net cash inflows of `23. Mohan Partner Membership No. Sankar Aiyar & Co. ii. on a test basis. 109208W V. An audit includes examining. 7. of the state of affairs of the Group as at 31st March 2012. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us. and iii. We have relied on the unaudited financial statements of associates wherein the Group’s share of profit aggregates to `2.

K.55 17.77 5.70 211.05 223. Mohan Partner Membership No..94 53.26 601.28 219.32 8596.20 233. 002785S R.12 0.58 90.29 361.78 9350. Hamied Joint Managing Director V. Rangarajan Partner Membership No.52 1850. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai. Raghavan Pankaj Patel Directors 3094.46 579.G.R. 7th June 2012 66 .06 720.33 8596.S.65 M. Chartered Accountants Firm Reg. 41883 12 13 14 15 16 17 18 19 20 21 1 to 39 3215.18 401.79 371.97 641.25 Y.94 523.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. No. 109208W V. No.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.C.25 160.35 2.R.58 6505. 17748 For R.24 31. Chartered Accountants Firm Reg.69 619. Manchanda Ramesh Shroff V. Price & Co.16 1490.88 235.98 9350.20 940.26 85.K.59 1906. Kotwal M.34 367.58 7478.45 11.92 213. Radhakrishnan Whole-time Director H.24 5.82 95.17 328.08 1553.N. 7th June 2012 Mumbai. Hamied Chairman & Managing Director S. Sankar Aiyar & Co.18 285..

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

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

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

` in crore 2011 2012 4 Reserves and Surplus .20 2.92 ` in crore 2011 2012 6 Deferred Tax Liabilities (Net) Deferred Tax Liabilities arising on account of DEPB Incentives Depreciation Others 17.30 100.58 26.57 2683.12 74 .00 160. 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 2716.55 ` in crore 2011 2012 5 Long Term Borrowings Secured Term Loan from Bank (Secured by Hypothecation of Tangible moveable Machinery and Building.24 27.72 2321.00 2.23) 213.77 6505.01 125.43 28.43 125.58 36.23 160.92 17. repayable in 6 half yearly instalments beginning January 2010 and ending in July 2012) Unsecured Deferred Payment Liability .00 2716.65 (0.70 185.47 2321.00 64.NOTES TO THE CONSOLIDATED ACCOUNTS contd.00 2841.35 2616.43 100.contd.24 3466.06 16.73 989.56 (0.51 216.28 1693.Sales Tax Deferral Loan 15.38 7478.43 28.83) 233.05 3154.06 1.20 2.77 1144.

` in crore 2011 0.45 705.88 9 Trade Payables Micro.45 2012 8 Short Terms Borrowings Loans Repayable on demand From Banks Secured Cash Credit (Secured against receivables and moveable assets including stocks.00 - 2.95 434.69 The details of amounts outstanding to Micro.49 523.85 85. Principal b.94 ` in crore 2011 2012 7 Long Term Provisions Provision for Employee Benefits .Leave Encashment (Note 25) 31.13 587.94 0.06 2012 ` in crore 2011 15.62 1. The delayed payments of principal paid beyond the appointed date during the entire accounting year 75 - - .26 11.NOTES TO THE CONSOLIDATED ACCOUNTS contd.26 80. Small and Medium Enterprises Others 14. The principal amount and the interest due thereon remaining unpaid to suppliers a.64 4.43 720. Small and Medium Enterprises based on available information wit h the Company is as under: ` in crore 2011 2012 i. Interest due thereon ii.26 1. a.56 601.45 31. both present and future) Unsecured Packing Credit From Others Unsecured Inter Corporate Borrowings Add: Interest Accrued and due 10.

01 13.NOTES TO THE CONSOLIDATED ACCOUNTS contd.00 0.67 31.50 128. a.32 11 Short Term Provisions Provision for Employee Benefits .72 74.39 160.01 31. 2006 iii. for all the delayed payments.26 8.70 0.05 219.Leave Encashment (Note 25) Employee Retirement Benefit Obligations .05 211.58 26.76 17. a.78 76 .91 30. ` 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 0.84 619. Total interest accrued during the year and remaining unpaid b. Small and Medium Enterprises Development Act.79 17.12 0.contd. as per the agreed terms iv.66 238. 9 Trade Payables . as per the agreed terms b.06 6.59 17. 2012 Interest actually paid under section 16 of the Micro.09 235.28 * There are no amounts due and outstanding to be credited to Investor Education & Protection Fund. Total interest accrued during the year b.53 36.01 23.Gratuity (Note 25) Proposed Dividend Tax on Proposed Dividend 7.95 106.00 12.48 42.82 24. Normal interest accrued during the year.58 26.63 160.30 0. 2012 ` in crore 2011 26. Normal interest payable for the period of delay in making payment.72 15.

iii.19 9. .57 9.28 44.03. The gross block is net of Government grants/other subsidies Nil for current year (Previous year Goa `9.58 70.11 1146.37 1.24 312.03.12 50.33 47.10 0.14 40.58 1.22 273.77 4240.95 898.Tangible Assets GROSS BLOCK Addition on Additions Acquisition Deletions/ Adjustments As at 31.85 260.14 0.41 2.55 2894.40 60.69 3094. The gross value of Buildings and Flats includes the cost of shares in Co-operative Housing Societies.17 12. iv.04.42 1161.07 1411.60 5.02 crore).48 41.12 DEPRECIATION/AMORTISATION NET BLOCK As at 31.70 2079.53 7.43 78.83 61.60 944.36 5.98 1.11 Addition on Acquisition For the Deletions/ Upto year Adjustments 31.12 Upto 31.61 1008.98 - 31.09 80. ii.90 1146.03.37 72.60 3215.67 3.21 11. Freehold Land at Mumbai Central and Vikhroli.13 461.44 2953.83 1160.70 185.59 13.54 119.42 356.20 crore and Indore `0.55 2.14 74.10 3239.65 33.57 0.75 8. The above additions to fixed assets during the year includes `17.08 74. 77 Vehicles Total Previous year Notes: i.33 1083.12 2011-12 1.36 70.03.28 9. 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 `8.92 288.97 crore.03.69 9.11 ASSETS As at 01.` in crore 12 Fixed Assets .39 49.99 - 33.79 As at 31.36 - - 31.18 Leasehold Land Plant and Machinery Office Machinery Furniture and Fixtures Buildings and Flats NOTES TO THE CONSOLIDATED ACCOUNTS contd.52 147.44 860.98 104.11 Freehold Land 80.46 2008.55 884.37 - 1.56 107.26 4240.64 0.40 crore (Previous year `25.37 33.04 crore) used for Research and Development.16 4.67 37.03 1.73 4626.48 72.57 75.

81 crore) 0.85 0.NOTES TO THE CONSOLIDATED ACCOUNTS contd.310) Ordinary Shares of Quality Chemical Industries Ltd.12 4.93 crore (Previous year .`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 . Ltd.945) Equity Shares of Stempeutics Research Pvt. of `10 each.97 (Previous year Nil) Other Investments Investments in Equity Instruments (Unquoted) 16.52 0. fully paid (including Goodwill of `54.393 (Previous year 70.28 crore) Nil (Previous year 59. of Uganda Shillings 5000 each.07.15 0. convertible into Equity Shares of `10 each Nil (Previous year 3. of USD 1 each.333 (Previous year Nil) Ordinary Shares of Biomab Holding Ltd.310 (Previous year 7. fully paid 48.50% Equity Interest in Shanghai Desano Pharmaceuticals Co.00 - 96.13 - 13.000) Equity Shares of The Saraswat Co-operative Bank Ltd. fully paid (including Goodwill of `0.66 - 0.`51.00 0.000 (Previous year 1.57 7. of AUD 1.67.16 0.18 78 .22% (Previous year Nil) Equity Interest in Jiangsu Cdymax Pharmaceuticals Co. fully paid .00 0.52 0. of `10 each. (Net of Capital Reserve of `5.30.`10000) Investments in Government and Trust Securities National Savings Certificates .000) Ordinary Shares of Desano Holdings Limited of USD 1 each. fully paid Investment in Associates 87. Ltd. Ltd. 1.14 - 114.17 crore) 1.31 crore) 7.77 7.`10000 (Previous year .29 0.33.00 0.`40000 (Previous year .30 354. Ltd.39.448) warrants of Stempeutics Research Pvt.000 (Previous year Nil) Equity Shares of Cipla İlaç Ticaret Anonim Şirketi of TRY 1 each. having paid up value of 50 paise each.30.50.53 - 0.37 367.36 328.00 0. ` in crore 2011 2012 13 Non-Current Investments Trade Investments Investments in Equity Instruments (Unquoted) Investment in Wholly Owned Subsidiary 50.67 95.`327. fully paid . fully paid [Note 1 C f(iii)] Investment in Joint Ventures 1 (Previous year Nil) Ordinary Share of Aspen-Cipla Australia Pty Ltd.`366.

77 117. Considered Good Capital Advances Security Deposits MAT Credit Entitlement Receivable Advance Taxes and TDS (Net of Provision for Tax `526.Institutional Growth Birla Sun Life Mutual Fund “Birla Cash Plus” .570 19.172 - 7. of units 2012 No.Institutional Plan .24 # 1.36 crore) VAT Receivable 22.Growth Option 2.25 11.“Axis Fixed Term Plan” Series 23 (3 Months) .Institutional Growth Axis Mutual Fund .Growth BNP Paribas Mutual Fund “BNP Paribas Overnight” .052 70.58 361.Short Term .43 5.72 70.52.00 163.77 Secured against Bank Guarantees 2012 ` in crore 2011 4.03 - 79 .84 20.76 3.61 crore.00 5.00 208.650 1.48 24.17.21.000 81.61 64.56 0. of units 16 Current Investments Investments in Mutual Funds (Unquoted) Axis Mutual Fund “Axis Liquid Fund” .01 33.70 33.73.Institutional Growth Daiwa Mutual Fund “Daiwa Liquid Fund “ .00 10.72.18.63 25.285 1.20 No.58.04 13. ` in crore 2011 2012 14 Long Term Loans and Advances Secured.05 ` in crore 2011 15 Other Non-Current Assets Fixed Deposits as Margin Money (maturity more than 12 months) Interest Accrued but not due 4.775 1.Growth Baroda Pioneer Mutual Fund “Baroda Pioneer Liquid Fund” .64 5.NOTES TO THE CONSOLIDATED ACCOUNTS contd.13 70.13.859 30.00.62 0.31 21.756 50.187 14.IP .93 401.75 14.09 17. Considered Good Capital Advances# Unsecured. Previous year `465.Institutional Premium Growth Birla Sun Life Mutual Fund “Birla Sun Life Floating Rate Fund” .

92 13.Super Institutional Growth Union KBC Mutual Fund “UKBC Liquid Fund” .39 10.50 35.Growth 18.225 1.68 12.529 3. of units 2012 No.Super Institutional Growth Option JM Financial Mutual Fund “JM High Liquidity Fund” .05 8.Growth Option Reliance Mutual Fund “Reliance Liquid Fund .76.00 20.contd.14.584 1.Super Institutional Growth ICICI Prudential Mutual Fund “ICICI Prudential Liquid Plan” .236 1.91 42.780 2.42.567 37.Daily Dividend Reinvestment IDBI Mutual Fund “IDBI Liquid Fund” .27 35.69.71.831 1.NOTES TO THE CONSOLIDATED ACCOUNTS contd.99.77.61 - 80 .95.85.Super Institutional Plan Growth HDFC Mutual Fund “HDFC Cash Management “ .00.991 3.84. ` in crore 2011 No.72.Super Institutional Plan .01.017 1.38.Institutional Premium Growth Peerless Mutual Fund “Peerless Liquid Fund” .00 18.249 1.15 32.898 99.82 39. Deutsche Asset Management “DWS Insta Cash Plus Fund” .Growth IDFC Mutual Fund “IDFC Cash Fund” .96.798 1.19.71.595 62.348 2.567 6.979 97.41 17.67.Super Institutional Plan .Growth Option Religare Mutual Fund “Religare Liquid Fund” .362 2.44.80 10.965 92.Super Institutional Growth Plan Kotak Mahindra Mutual Fund “Kotak Liquid” .79.Treasury Plan” Institiutional .Super Institutional Growth Tata Mutual Fund “Tata Liquid Super High Investment Fund” .63.455 88.33.Super Institutional Plan C Growth ING Vysya Mutual Fund “ING Vysya Liquid Fund” .91.25 32.93 33.Super Institutional Plan Growth Edelweiss Mutual Fund “Edelweiss Liquid Fund” .26 10.00 10. of units 16 Current Investments .70 1.00.438 31.Super Institutional Growth Pramerica Mutual Fund “Pramerica Liquid Fund” .473 - 18.92.00 40.00 22.25 18.623 1.52.01 19.Series 5” .092 18.Super Institutional Growth Edelweiss Mutual Fund “Edelweiss Fixed Maturity Plan .07.66.81.56.Super Institutional Growth Sundaram BNP Paribas Mutual Fund “Sundaram Money Fund” .289 86.502 68.500 2.721 22.00 4.Growth JP Morgan Mutual Fund “JP Morgan India Liquid Fund” .62 11.78.000 26.93.Appreciation Taurus Mutual Fund “Taurus Liquid Fund” .Savings Plan Growth ICICI Prudential Mutual Fund “ICICI Prudential Liquid Plan” .00 - 1.61 2.Growth Plan Franklin Templeton Mutual Fund “Templeton India Treasury Management Account” .34.61 28.64.

16 84. Previous year `119. of units 2012 No.11 1352.66 138.75 crore) Finished Goods (including Stock-in-Transit of `90.765 84.59 crore) 74. Previous year `98.66 1553.16 2012 ` in crore 2011 18 Trade Receivables Unsecured.07 413.85.contd.84 1850. fully paid [Note 1 C f(iii)] Aggregate amount of unquoted investments .77 447.36 153.00 - - 364.13 crore.30. UTI Mutual Fund “UTI Liquid Cash Plan” .30.000 (Previous year 3.939 13.59 2012 ` in crore 2011 17 Inventories Raw Materials and Packing Materials (including Stock-in-Transit of `103.50.40 1462. ` in crore 2011 No.000) Ordinary Shares of Desano Holdings Limited of USD 1 each. Previous year `16.16 1490.`223.03 crore) Work-in-Process (including Stock-in-Transit of `8. Considered Good Outstanding over Six Months Others Unsecured.57 439.NOTES TO THE CONSOLIDATED ACCOUNTS contd.18 138.52 223.58 84.49 crore.50.08 900.15 10.84 crore) Traded Goods 849.16 1906.`940.83 135.82 91. Considered Doubtful Outstanding over Six Months Less: Allowance for Doubtful Debts 138.71 81 .64 416.59 940.75 crore.Institutional Growth Option UTI Mutual Fund “UTI Money Market Fund” . of units 16 Current Investments .52 crore (Previous year .Institutional Growth Plan Investments in Equity Instruments (Unquoted) 3.

24 90.76 2.51 0.46 0.51 2.94 2012 ` in crore 2011 85.05 2.97 2012 ` in crore 2011 20 Short Term Loans and Advances Unsecured (Considered good.98 53.33 85.25 3.64 107.08 117.99 579.42 95.NOTES TO THE CONSOLIDATED ACCOUNTS contd.29 175.80 1. employee loans and prepaid expenses 41.43 346.33 21 Other Current Assets Export Incentives Receivable 53.43 311.80 2. ` 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) 73.16 12.98 82 . 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 0.59 1.52 0.46 1.00 3.79 0.06 8.87 641.Pending Allotment Capital Subsidy Receivable Balances with Statutory/Revenue Authorities Others* *Includes advances to sundry creditors.46 79.10 107.00 0.46 0.46 1.76 13.25 0.60 3.26 Share Application Money .25 5.06 0.46 0.25 3.87 1.

32 10.23 5.07 83 .07 2275.11 31.49 63.36 139.34 67.52 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 900.31 20.59 91.70 20.96 6392.13 8.16 2.28 2012 22 Revenue from Operations Sale of Products Sale of Services Export Incentives Technical Know-how/Fees Scrap Sales Others 6955.84 0. ` in crore 2011 6179.83 7.92 3175.07 2384.35 81.64 2326.40 0.45 22.56 19.07 2384.35 2326.30 120.NOTES TO THE CONSOLIDATED ACCOUNTS contd.65 42.68 ` 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 8.29 7128.14 900.03 26.82 2012 ` in crore 2011 7.27 2618.56 1.41 36.81 29.31 3284.99 849.96 0.35 646.72 1.

91 867.83 135.16 1006.94 16.11 382.68 565.57 439.65 413.57 439. ex-gratia are recognised in the period in which the employee renders the related service. Short Term Employee Benefits All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. wages.22 2012 ` in crore 2011 494.01 0.95 36.36 153.67 10.52 Employee Benefits i.77 447. etc.90 32. Benefits such as salaries.19 97. short term compensated absences.59 25 Employee Benefits Expense Salaries and Wages Contribution to Provident and Other Funds Staff Gratuity Staff Welfare Expenses 677.34 27. 84 . and the expected cost of bonus.87) 413.09 (138.36 153.34 41. 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.NOTES TO THE CONSOLIDATED ACCOUNTS contd.29 772.84 1000. ` in crore 2011 2012 24b Changes in Inventories of Finished Goods.09 387.44 5.16 1006..

Accordingly. Charge to the Statement of Profit and Loss based on contributions 2012 12.NOTES TO THE CONSOLIDATED ACCOUNTS contd. 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. based upon which. which require interest shortfalls to be recompensed. which is recognised by the Income Tax authorities and administered through trustees/ appropriate authorities. 1952) since the Company has no further obligation beyond making the contributions.73 ` in crore 2011 9. b. Employee Benefits (revised 2005) issued by Accounting Standards Board (ASB) states benefit involving employer established provident funds. The Guidance Note on implementing the revised AS-15. a defined benefit plan based on actuarial valuation as of the Balance Sheet date.31 16.81 ` in crore 2011 Gratuity (Funded Plan) 27.16 Employees’ Pension Scheme Provident Fund c. the Company’s actuary has expressed an inability. are to be considered as defined benefit plans.contd. Pending the issuance of the Guidance Note from the Actuarial Society of India.16 2.91 5.16 (4. The Company provides for gratuity. The employees of the Company are also entitled to leave encashment and compensated absences as per the Company’s policy.18 2.86 10.34) 35. 25 Employee Benefits Expense . to reliably measure provident fund liabilities. The Company has two schemes for long term benefits namely.27 85 . a funded scheme is operated by the Company’s Provident Fund Trust.18 22. Disclosures for defined benefit plans based on actuarial reports as on 31st March 2012 2012 Gratuity (Funded Plan) i.50 25.26 (4. Long Term Employee Benefits The disclosures as per the revised AS-15 are as under: a. 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. the Company is unable to present the related information. the Company contributes all the ascertained liabilities to the Insurer Managed Funds. Provident Fund and Gratuity: The Provident Fund plan.55 34. ii.90 5.17 4.83) 49.

61 100% 8.00 2.83) 31.22 5.34) 29.29 1.80) 17. such as supply and demand in employment market. 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.NOTES TO THE CONSOLIDATED ACCOUNTS contd.16 (29. v.39) 9.25% 8.10 (4.43) 8.43) 1.86) 5.contd.34 2.50% 8. promotion and other relevant factors.22 2.86 (0. 29. 25 Employee Benefits Expense .97 16.01) 6. considered in actuarial valuation.72 10.43 100% 8.15 4.90 (2. 2012 Gratuity (Funded Plan) ii. take account of inflation.91 2.39 0.63 (4.56 5.25% iii. iv. seniority.01 35.17 (1.35 (31.50% ` in crore 2011 Gratuity (Funded Plan) 23.86 2.39 0.94 1. vi. vii.88 49.86 (0. 86 .

25 Employee Benefits Expense .84 14.01 273.39 11.01) 6.78 25. Experience adjustments Defined benefit obligation Plan assets Deficit/(Surplus) Experience adjustment on plan liabilities .(gain)/loss 49.19 7.88) 17. 2012 Gratuity (Funded Plan) viii.98) ` in crore 2011 17.(gain)/loss Experience adjustment on plan assets .16 (29.43) 2010 26.33 ` in crore 2011 Gratuity (Funded Plan) 35.34 2012 27 Depreciation and Amortisation Expense Depreciation on Tangible Assets Amortisation of Goodwill on Acquisition 312.19 (0.27 (31.40 0.10 ` in crore 2011 273.16 ix.88 (17.01 (6.72 (4.15) 10.22 312.57 2009 20.50 38.(gain)/loss Experience adjustment on plan assets .15 10.40 0. 2012 26 Finance Costs Interest Paid Applicable Loss on Foreign Currency Transaction and Translation 23.NOTES TO THE CONSOLIDATED ACCOUNTS contd.39) 11.45) (0.32 7.33 49.16 29.contd.03 14.96 16.64 (3.45) 2.43) 5.(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 .60 22.71) (2.22 87 .18) ` in crore 2008 18.61 0.19 (0.19 2011 35.74 (4.32 0.27 31.

45 198.08 93.08 58.75 133.50 9.86 62.13 0.47 43.62 0.43 225. ` in crore 2011 235.86 88 .72 97.15 93.47 235.03 7.23 121.86 45.30 51.39 45.19 275.01 0.48 4.NOTES TO THE CONSOLIDATED ACCOUNTS contd.58 23.05 99.47 0.81 29 Net difference in foreign exchange credited to the Statement of Profit and Loss 52.74 16.83 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.30 1613.84 1850.55 58. Samples and Grants Miscellaneous Expenses 197.46 21.93 0.35 71.48 0.78 52.50 36.92 17.59 44.80 0.16 52.32 23.15 66.86 0.35 100.69 54. 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 .80 36.04 2012 ` in crore 2011 12.09 139.88 25.43 26.62 0.02 0.54 10.96 16.81 12.76 108.Clinical Trials.70 5.00 115.86 52.

or longer for other lease and are renewable by mutual consent on mutually agreeable terms.45 206.61 20.41 1. The Company is also examining further legal remedies as may be advised.19 181.64 32 In a proceeding instituted against the Company for patent infringement of an animal health care product. These are generally not non-cancellable and range between 11 months to 5 years under leave and licence.62 3.13 1.98 281.44 29. Therefore.88 104.75 27.30 4. 89 .77 977.02 367. 30 Lease Accounting Where the Company is a Lessee The Company has obtained certain premises for its business operations (including furniture and fittings. Where the Company is a Lessor The Company has given certain premises under operating lease or leave and license agreement.53 829.  Lease payments are recognised in the Statement of Profit and Loss under ‘Rent’ in  Note 28.85 1346.NOTES TO THE CONSOLIDATED ACCOUNTS contd.64 62.54 7. 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.54 36.15 49. The Company retains substantially all risks and benefits  of ownership of the leased asset and hence classified as operating lease.  Lease income on such operating lease is recognised in the Statement of Profit and Loss under ‘Rent’ in Note 23.77 1197. Pursuant to this.08 683.64 369. The Company has given refundable interest free security deposits in accordance with the agreed terms. therein as applicable) under operating lease or leave and license agreements.24 548. ` 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. the District Court is required to initiate hearings to determine the award for damages. which has not yet commenced. the US District Court issued an injunction and the Federal Circuit Court at Washington upheld this order.

the Company received notice of demand from the National Pharmaceutical Pricing Authority. This was contested before the jurisdictional High Courts wherein it was held in favour of the Company. The Company has been legally advised that on the basis of these orders there is no probability of demand crystallising. (the Subsidiary Company) acquired on lease. Meditab Specialities Pvt. Following public agitation. 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. land admeasuring 123. 35 In March 2006.46 crore along with interest due thereon is payable into the DPEA under the Drugs (Prices Control) Order. 36 Related Party Disclosures i. The Company has filed its replies to the notices and has contended that no amount is payable into the DPEA under the Drugs (Prices Control) Order. 1979 on account of alleged unintended benefit enjoyed by the Company. The orders were challenged before the Hon’ble Supreme Court by the Government. 33 The Government of India has served demand notices in March 1995 and May 1995 on the Company in respect of six bulk drugs. the Subsidiary Company entered into sub-lease of this land with a SEZ occupier with an undertaking to provide infrastructural facilities.20 hectares in Kerim Industrial Estate at Bhut Khamb. Associates: 1. 4.f. Ltd. 1st September 2011) Jiangsu Cdymax Pharmaceuticals Co. 2. Biomab Holding Ltd.NOTES TO THE CONSOLIDATED ACCOUNTS contd. 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.e.92 crore (inclusive of principal amount for the period July 1995 to April 2009 and interest upto January 2012). Government of India on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order. 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 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. Goa from Goa Industrial Development Corporation (GIDC) for setting up and development of Special Economic Zone (SEZ) for pharmaceutical products. Stempeutics Research Pvt. (w. Ltd. 34 In 2003. Quality Chemical Industries Ltd.f.e. 3. claiming that an amount of `5. Taluka Ponda. 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.68 crore (Previous year `26.50 crore) as at 31st March 2012. Thereafter. (w. 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. The related parties where control exists or where significant influence exists and with whom transactions have taken place: a. Hence no provision is considered necessary in respect of notice of demand aggregating to `1654. 1979. Ltd. 10th February 2012) 90 .

Mr. b.K.78 16.74 1.contd.53 15.17 10.28 15.41 1.78 7. Hamied Foundation ii.28 0.36 18. Radhakrishnan – Whole-time Director Relatives of Key Management Personnel: 1. Aspen-Cipla Australia Pty Ltd.10 0. M.17 228.28 1.53 158.50 114.39 1. Ltd.50 7. 4. e.41 1.e. Dr. Okasa Pvt. Cipla Foundation 5. 1st July 2011) d.94 5.17 58.39 149.13 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 0.92 91 . Y. Joint Venture: 1.e.09 18. Samina Vaziralli (w.86 1.03 0. 36 Related Party Disclosures .67 21.42 6. Mr. Hamied – Joint Managing Director 3.36 16.67 21.NOTES TO THE CONSOLIDATED ACCOUNTS contd.94 5.K.02 0.91 11.53 174. Mr. S.03 114. Ltd.02 0.33 6.08 11.13 186. 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. Hamied – Chairman and Managing Director 2. 3.31 164.31 0. 2.92 58.f. Entities over which Key Management Personnel are able to exercise significant influence: 1. Cipla Public Charitable Trust 2. Kamil Hamied Mrs.39 0.f. (w. 4th November 2011) Key Management Personnel: 1.74 1. Okasa Pharma Pvt.10 1. c.76 10.28 0.76 41.

14 18.98 2011 0.17 6. Advanced Remedies Pvt.03 6.50 7.00* 27.00* 18.00* 114. S. K.74 0. Kamil Hamied Mrs.00* 54.78 ` in crore 2011 0.00# 0. Y.48 123.02 4. Ltd.42 26.36 92 . Ltd.10 3.00# 0.42 25.94 2011 0.39 96. Investment in Equity Stempeutics Research Pvt.91 2. Aspen-Cipla Australia Pty Ltd. 36 Related Party Disclosures .78 114.56 0. 0.04 0.65 5. Samina Vaziralli D.22 0.46 Disclosures in respect of material related party transactions during the year: 2012 A. B.NOTES TO THE CONSOLIDATED ACCOUNTS contd.26 1. Hamied Mr.00# 0.13 6.22 26.52 0.79 0.contd. Ltd.20 16.50 0. ` in crore Particulars Associates/Joint Venture Key Management Personnel and relatives Entities over which Key Management Personnel exercise significant influence 2012 0. Interest paid Mediorals Laboratories Pvt.38 1.59 27. Biomab Holding Ltd. Remuneration Dr.36 7.00# Total 2012 Rent received Other receipts Balances at end of the year Outstanding payables Outstanding receivables `36000 * `20040 # 2011 2012 2011 2012 0. Ltd. M. K.00* 18. C. Loan repaid Mediorals Laboratories Pvt. Hamied Late Mr. Radhakrishnan Mr. Amar Lulla Mr.

Ltd.39 6.63 5. Okasa Pharma Pvt. Ltd.77 32. Ltd. 2012 E.39 1. Ltd. Shanghai Desano Chemical Pharmaceutical Co. Ltd. Research Grants paid Stempeutics Research Pvt. I. Quality Chemical Industries Ltd.37 5.90 58.33 2. Okasa Pvt.27 0. H.21 11.08 2. Ltd. Advanced Remedies Pvt. Ltd.10 10. Purchase of Goods Advanced Remedies Pvt. Okasa Pvt. Ltd.80 228. Medispray Laboratories Pvt.32 1. Sale of Goods Goldencross Pharma Pvt.61 0. Shanghai Desano Pharmaceuticals Co.96 3.contd.62 7. G.53 10. Mediorals Laboratories Pvt.63 174.95 0.72 13.76 0. Medispray Laboratories Pvt. 1.10 6. Ltd. Ltd. Ltd. Ltd. Shanghai Desano Chemical Pharmaceutical Co. Mediorals Laboratories Pvt. 36 Related Party Disclosures . Mediorals Laboratories Pvt.04 21.97 8.39 0. Ltd.NOTES TO THE CONSOLIDATED ACCOUNTS contd.32 11. Ltd. Ltd.16 18. Processing charges paid Goldencross Pharma Pvt. Ltd.93 92.92 25. Ltd. Medispray Laboratories Pvt.36 164. Ltd. Goldencross Pharma Pvt. Okasa Pharma Pvt. Okasa Pharma Pvt.14 0. Ltd.67 0.10 5. Ltd.86 174.08 ` in crore 2011 93 .37 56. Ltd.43 158. Ltd. Advances paid against Services Stempeutics Research Pvt.38 10. F. Ltd. Advanced Remedies Pvt. Okasa Pvt.01 0.42 10.53 8.

38 0.31 0.03 0.98 0. Advanced Remedies Pvt.42 0. 2012 J. Shanghai Desano Pharmaceuticals Co. Shanghai Desano Chemical Pharmaceutical Co. Stempeutics Research Pvt. Okasa Pvt.02 0. Ltd.contd. Purchase of Shares Good Earth Remedies Ltd.13 54.10 7.63 6.45 0.78 0. Ltd.00 0. Ltd. P.51 0. Donations given Cipla Public Charitable Trust Cipla Foundation Hamied Foundation L.51 1. Ltd. M.28 1. Ltd.28 0. 1.14 0. Ltd. Ltd. Okasa Pharma Pvt. K. Ltd. Mediorals Laboratories Pvt. Globus Healthcare Ltd. Ltd.00 0.48 0. Okasa Pvt.41 0.02 0.NOTES TO THE CONSOLIDATED ACCOUNTS contd.06 0.49 0. 36 Related Party Disclosures . Ltd. Okasa Pharma Pvt. Advanced Remedies Pvt.00** 5. O. Processing charges received Medispray Laboratories Pvt.02 13.13 20.72 13.03 0.79 18. Ltd. Ltd. Ltd. Rent paid Okasa Pvt. N.31 5.28 ` in crore 2011 94 . Ltd.39 6. Advanced Remedies Pvt.41 0.28 0.08 11.00 0. Outstanding Payables Mediorals Laboratories Pvt.00# 0.00# 0.94 0. Ltd.01 7. Outstanding Receivables Mediorals Laboratories Pvt. Ltd. Okasa Pharma Pvt.23 0. Ltd. Rent received Okasa Pvt.

21 1517. Information about primary business segments: The Company is exclusively in the pharmaceutical business segment.97 ** `15000 # `36000 ` in crore 2011 19.86 214.45 995. Information about secondary business segments: ` in crore India 2012 Segment Revenue Carrying Amount of Segment Assets Carrying Amount of other unallocated Assets Capital Expenditure 546.27 2011 3416.58 Currency USD USD USD Cross Currency INR INR INR 2012 1105.12 Total 2012 6908. Ltd. Ltd. Ltd.25 1394. Shanghai Desano Chemical Pharmaceutical Co.91 2011 6182. * `51.29 763.91 763.87 6166.14 39.02 3160.09 95 .NOTES TO THE CONSOLIDATED ACCOUNTS contd.24 289.09 1.08 7683. Shanghai Desano Pharmaceuticals Co.06 379.46 18.38 7631.21 ` in crore 2011 460.98 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 417.61 26. 36 Related Party Disclosures .62 56.12 Outside India 2012 3747.14 6237. 2012 Okasa Pvt.07 220.32 404.99 546. 38 Segment Information i.29 123. Quality Chemical Industries Ltd.contd.20 2011 2766.47 343. ii.03 Note: The Company uses forward contracts/derivatives for hedging purposes and/or reducing interest costs.07 0.

24 80. Radhakrishnan Whole-time Director H.S. Segment Revenue and Assets include the respective amounts identifiable to each of the segment. Hamied Joint Managing Director V. Kotwal M. Sankar Aiyar & Co. Chartered Accountants Firm Reg. 7th June 2012 Mumbai.29.contd.00 M. b. Chartered Accountants Firm Reg. Hamied Chairman & Managing Director S. 7th June 2012 96 .57 80.. 38 Segment Information .21. 002785S R. 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. Mohan Partner Membership No.K. 41883 2012 1144.29.C. Manchanda Ramesh Shroff V.N. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai. Notes: a. 17748 For R.G.32 `2.NOTES TO THE CONSOLIDATED ACCOUNTS contd. Raghavan Pankaj Patel Directors 2011 989. Rangarajan Partner Membership No.00 Y.21.K.25 `2. 39 Basic and Diluted Earnings per share has been computed as under Profit After Tax (` in crore) Weighted Average No. No.R. Revenue outside India includes sales to customers located outside India and earnings outside India.. of Shares Outstanding Basic and Diluted Earnings per share Face value per share As per our report of even date For V. 109208W V.357 `12. No. Price & Co.R.357 `14.

37) 308.65) 288.33 (97.26 36. 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 .68) 7118.40 2.23 (331.45 56.96 1.84 1451.92 238.46) 12.22 23.32 (4.30 (264.08 131.03) 1289.49 273.67 (2.14) (311.20) 0.33) (373.14) 0.55 (0.96) (0.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 1447.82 245.48 (7.71) (908.81 312.33 17.84 (28.47) 1712.10 (710.84 2.41 8.32) 19.64) (208.67 (162.39) (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.71 (965.84) 351.88 57.28 7.50 (8.22) (1.76 (561.40) (0.97) (8.06) 4.20) 1025.57 (30.91 (1.84 7.00* (33.10) (5228.07 1798.35 2044.54) (7470.10) 1162.86 (2.14) 54.13) (8.41) (36.56) 36.18) 5251.

Manchanda Ramesh Shroff V. Radhakrishnan Whole-time Director H.05) (C) (A)+(B)+(C) (753. 109208W V.59 crore (Previous year `12. As per our report of even date For V.74 (671. Chartered Accountants Firm Reg.58) (26.06 95. Cash and Cash Equivalents represent cash and bank balances and fixed deposits with banks. Raghavan Pankaj Patel Directors M..80) 33.17) (5. 7th June 2012 98 .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. ii.R.97 90. Hamied Chairman & Managing Director S. Sankar Aiyar & Co. which are not available for use by the Company.83) (160.91 62. No.67) (64.N..CONSOLIDATED CASH FLOW STATEMENT contd.97 200. 17748 For R. 7th June 2012 Mumbai. 41883 Y.S.K. Cash and Cash Equivalents includes `13.23) (10.R.C. Rangarajan Partner Membership No. ` in crore 2011 867. Price & Co.K. Mani Chief Financial Officer Mital Sanghvi Company Secretary Mumbai.71) (23. Hamied Joint Managing Director V.51) 95.79 crore) on account of unclaimed dividend.G. Chartered Accountants Firm Reg.58) (26. Kotwal M. Mohan Partner Membership No.32) (160. No.07) (17.67) (82 .46 Notes: i.00 (742. 002785S R.

K. Notes: 1. 17th August 2012 at 3. Affix 15 p. ___________________________________________________________________________________________________________ of _____________________________________________________________________________________________________________ being a member/members of CIPLA LIMITED.: ___________________________ DP ID No. of Shares held ___________________ I/We.: _______________ DP ID No. 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. 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. 17th August 2012.: _________________________ 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. College. This form. duly completed and signed across the stamp.00 p.CIPLA LTD.: ___________________ No. 2. Office : Mumbai Central. Regd. Office : Mumbai Central. and at any adjournment thereof. Mumbai-400 008 ATTENDANCE SLIP PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL Folio No. Mumbai-400 008 FORM OF PROXY Folio No. Revenue Stamp Signature(s) of the Shareholder(s) 99 . C.: ______________ Client ID No.: ___________________________ Client ID No. CIPLA LTD. Churchgate. 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. Mumbai-400 020 on Friday.m. Dinshaw Wacha Road. Regd. Signed this _______________________ day of ______________________ 2012. should reach the Registered Office of the Company not less than 48 hours before the meeting.

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09 5.28 12.55 3763.58 7389.67 3120.05 937.77 1540.05 59.48 155.20 88.46 21.48 212.15 4445.96 14.53 194.58 59.46 26.48 94.94 1833.09 2011 2010 2009 2008 2007 2006 2005 2004 ` in crore 2003 7794.10 1070.58 0.39 224.99 404.19 1461.42 3472.72 570.77 59.48 2550.41 265.49 247.05 * After adjustments of earlier years # Includes Current and Non-Current 3 .58 65.73 1151.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 3346.32 6422.68 180.87 18.61 409.24 1324.93 4338.31 5455.96 11.80 2358.11* 1599.69 89.14 4445.58 26.75 940.36 3755.95 289.61 104.13 59.05 210.49 160.45 149.59 694.27 123.15 3413.51 2695.07 94.07 179.01 1894.21 838.87 514.30 970.80 1893.13 1833.30 1983.58 5753.42 486.72 807.72 698.78 56.70 2090.86 5713.37 756.39 960.80 1421.37 6612.26 117.64 399.88 126.11 1035.97 1204.82 901.42 155.98 668.85 607.88 160.43 155.65 3574.14 155.63 191.08 844.31 160.46 26.88 6098.60 603.97 7.97 1493.58 26.42 594.97 1923.80 430.08 1264.48 7125.97 1010.24 164.10 1221.51 5914.93 7265.95 440.64 155.10 3137.31 776.46 1123.57 180.32 3015.00 312.93 160.46 4195.95 1540.65 3472.15 3207.66 1553.20 1221.15 6098.74 59.24 5315.96 160.70 7550.81 81.95 2550.45 7265.62 22.99 1081.29 4350.81 3236.09 306.46 3600.20 232.82 540.42 1143.46 26.43 1384.27 468.38 2482.42 519.58 6452.36 701.91 97.45 7794.81 155.15 5455.81 36.46 3080.56 112.67 894.95 709.03 155.75 2456.

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