Cadila Healthcare Limited Annual Report 2016-17 Contents
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Cadila Healthcare Limited Annual Report 2016-17 Contents Management Business Directors’ Report Our culture Chairman’s Highlights of Discussion and Responsibility & relevant in a story Address Operations 2016-17 Analysis - 2016-17 Report Annexures 04 -11 12-15 16-17 18-32 33-40 41-73 Corporate Auditors’ Balance Statement of Cash Flow Statement of Governance Report Report Sheet Profit and Loss Statement Change in Equity 74-89 90-95 96 97 98-99 100 Notes to the Consolidated Notice of Financial Consolidated Financial Section 129 (3) Annual General Statements Auditors’ Report Statements Statement Meeting 101-164 165-169 170-239 240-241 242-256 Corporate Information Founder Board of Directors Directors Chief Financial Late Ramanbhai B. Patel Pankaj R. Patel Mukesh M. Patel Officer Chairman & Managing Director Humayun R. Dhanrajgir Nitin D. Parekh Dr. Sharvil P. Patel Nitin R. Desai Joint Managing Director Dharmishta N. Rawal Company Apurva S. Diwanji* Secretary *[w.e.f. May 13, 2016] Registered and Corporate Office Statutory Auditors Upen H. Shah “Zydus Tower”, Satellite Cross Roads, Mukesh M. Shah & Co. Sarkhej-Gandhinagar Highway, Chartered Accountants Zydus Research Centre Ahmedabad 380 015. Ahmedabad Survey No. 396 / 403, Sarkhej-Bavla N.H. No. 8A, Moraiya, Ahmedabad 382 213. Registrar and Share Transfer Agents Works Formulation Units API Units Topical Unit Link Intime India Private Limited Survey No. 417, 419 & 420, Block No. 265/266, Village: Plot No. 254-255, Opp. Laxmi Narayan 506-508, Amarnath Business Centre-1 Sarkhej-Bavla N.H. No. 8A, Changodar, Sarkhej-Bavla N.H. Petrol Pump, Sarkhej-Bavla N.H. No. 8A, Changodar Road, Taluka : Sanand, (ABC-1), Besides Gala Business Village : Moraiya, No. 8A, Ahmedabad 382 210. Centre, Off. C G Road, Ellisbridge, District : Ahmedabad 382 210. Taluka : Sanand, Ahmedabad 380 006. GIDC Estate, District : Ahmedabad 382 210. Ankleshwar 393 002, Gujarat Biologics Unit Plot No.203-213, Survey No. 40P, 23, 25P, 42, 37 Dabhasa, Taluka-Padra 391 440. Opp. Ramdev Masala, Sarkhej-Bavla Kundaim Industrial Estate, SEZ Unit District : Vadodara. N.H. No. 8A, Changodar, Ponda, Goa 403 115. District : Ahmedabad 382 213. Plot No. 1 / 1A & 2, Block No. 162, “PHARMEZ” (Special Economic Zone) Village : Swaraj Majra, Baddi, Ekalbara Umraya Road, Matoda, Sarkhej-Bavla N.H. No. 8A, District : Solan, Village : Dabhasa Animal Health Unit Taluka : Sanand, Himachal Pradesh 173 205. Taluka : Padra 391 440. District : Ahmedabad 382 213. Plot No. F-1/1, Sector 6B, IIE SIIDCUL, District : Vadodara. Haridwar 249 403. Mr. Ramanbhai B. Patel Founder Chairman, Zydus Cadila August 19, 1925 - September 19, 2001 A first-generation pharma entrepreneur, our Founder Chairman, Shri Ramanbhai B. Patel always believed that people are the most essential part of any organisation as they provide the inspiration, creativity, vision and motivation that keep an organisation alive. Shri Ramanbhai Patel said that the workplace is where people spend most of their time in a day and a happy employee would be a catalyst translating the organisation’s growth. He also felt that the bedrock of a pharma enterprise should be, Innovation. His passion for innovation continues to inspire us at Zydus. It is the collective passion and commitment of over 20,000 Zydans across the globe who work together to bring to fruition the ‘purpose’ that binds them all - to create healthier communities globally. And that is how, the visionary’s vision lives on. People. Passion. Purpose. Annual Report 2016-17 | 01 In most companies, there could be a handful of reasons for success. At Cadila Healthcare Limited, there are no less than 20,000. Because each Zydan has been a reason why we have succeeded. Their passion. Their pride. Their capabilities have fused into the corporate performance. And that is how it becomes Our story. 02 | Cadila Healthcare Ltd. Annual Report 2016-17 | 03 04 | Cadila Healthcare Ltd. You don’t need thousands of words to describe Cadila Healthcare’s culture. Two-word quotables say it better. Act now. Build people. What’s new? Think big. Challenge yourself. Improvement =Betterment Daro mat. Speak up. Annual Report 2016-17 | 05 When a shop floor worker stopped the production line IN A STORY OUR CULTURE which affected the day’s target, he was... Applauded. 06 | Cadila Healthcare Ltd. Quality is the ‘Daro watchword; process integrity mat. was strengthened; Khul ke productivity improvement was bolo’. a bonus. The principle message on the Company’s shop floor is - ‘Daro mat!’ (Do not fear) This message is a part of the QUEST programme that sensitises workers in employing the right processes and to speak up and report any deviation so that steps can be immediately initiated to address it The message : Doing the right thing is acceptable. No short cuts Each time workers did so, they became champions Cross-functional communication increased; managers began to understand workers better Workers suggested process modifications; continuous improvement became a shop floor reality Quality processes were strengthened; process integrity was strengthened; productivity improvement was a bonus Annual Report 2016-17 | 07 When our workers huddled for a morning dialogue at the IN A STORY OUR CULTURE start of the shift, the supervisor Introduced a break out approach to raise the quality nodded benchmark Instituted 30-minute brain approvingly storming sessions on quality 8,000 people across Zydus’ manufacturing locations saying: discuss a specific theme relevant to our quality ethic every morning ‘I want to see this These sessions are conducted at the start of every shift kind of behaviour across every plant Supervisors turned into speakers and mentors; roles everyday at work’. are periodically rotated Gradually, change room discussions have begun to revolve around workplace quality Workers are a part of the solution. Ideas have begun to flow When quality improved in one plant, others immediately replicated it Positive change agents are recognised Quality culture supports productivity 08 | Cadila Healthcare Ltd. Challenge Quality is about doing the right yourself, thing, at the right time in the surprise right way. yourself Annual Report 2016-17 | 09 Innovation A new lease of is about life - that’s the bridging unmet healthcare outcome of needs innovation OUR CULTURE IN A STORY OUR CULTURE He now has a new name for Lipaglyn: ‘the wonder drug’. More than 500,000 patients are currently on Lipaglyn (Saroglitazar Magnesium). The novel drug was approved in 2013 in India to treat diabetic dyslipidemia. It’s the first novel drug to be developed from the lab to the market by an Indian pharma company. The Company is also developing Saroglitazar Magnesium for treating diseases with high unmet medical needs in USA / EU With a successful career in the aviation He then met a medical practitioner • Non-Alcoholic Steato Hepatitis industry, he was truly a high flier. But who prescribed the novel drug (NASH) – No drug has been the 54-year-old non-diabetic executive Lipaglyn in addition to statin therapy. approved as yet for treating NASH of one of India’s largest airlines was in USA / EU Three months later, much to his extremely worried when his reports surprise, his triglyceride value had • Primary Biliary Cholangitis (PBC) showed persistently elevated levels of declined, without side-effects. – Saroglitazar Magnesium has triglycerides, despite adequate statin the potential to treat PBC, an autoimmune condition, which therapy and fenofibrate. Unable to affects the liver find a solution, he reconciled to the fact that he would have to live with (The identity of the person has not been disclosed to • Has significant effect on reducing respect his privacy) triglycerides and could treat this reality. severe Hypertriglyceridemia 10 | Cadila Healthcare Ltd. When From being innovation confined to the works a miracle in one’s life bed to running a marathon He has a description for Exemptia: ‘Life saver’. World’s 1st biosimilar of Adalimumab India’s highest selling biologic in rheumatology (as per IPSOS MAT Dec 2016 data). Used to treat Rheumatoid Arthritis, Ankylosing Spondylitis, Psoriatic Arthritis, Juvenile Idiopathic Arthritis, Ulcerative Colitis, Crohn’s Disease (Adult and Paediatric), Plaque Psoriasis and Hidradenitis Suppurativa More than 7000 patients have been on Exemptia Constant pain, stiffness, fatigue and that perhaps Exemptia may do the inability to carry out simple chores magic, he doubted it. Starting out as a - these are the staples of a patient disbeliever, he began to see a glimmer suffering from Ankylosing Spondylitis. of hope when there were some positive changes. At 36 years, Swayam Prakash Chaudhary’s life came to a grinding After six months of Exemptia therapy, halt when he was diagnosed with he was back on his feet - walking this disorder. He was unable to sit for and jogging. And then he did the more than 30 minutes in office. The unimaginable - participating in the 10K outdoor life and sports which were his Hyderabad Marathon. He stood 441st passion, also stopped because of the out of 2700 runners. chronic pain. When a doctor suggested Annual Report 2016-17 | 11 CHAIRMAN’S ADDRESS CHAIRMAN’S The Big ‘C’ at Zydus stands for Culture. 12 | Cadila Healthcare Ltd. Friends, Our culture, The biggest asset of ours does Our culture is a fusion of a number of not figure on the Balance things. Sheet. The commitment to be ethical in Our Company’s 20,000 thoughts and deeds - doing things employees are not listed on the right way. the Assets’ side of its core financial statement. The desire to challenge the status- quo. But that’s exactly who they are... Our most precious The confidence to see a challenge assets. right through and not blink. Our people have transformed The resilience to encounter a setback the Company into a and ensure it never happens again. modern innovations-driven The resolution to design solutions institution.