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Resilience Our Strength A n n u a l R e p o r t 2 0 1 4 - 1 5 Contents Corporate Information 01 Vision, Mission & Values 03 Chairmans Message 04 Financial Highlights 06 Know us Better 07 Core Strengths 08 Management Discussion & Analysis 10 Directors Report 25 Corporate Governance Report 48 Auditors Report on Stand alone 64 Financial Statements Stand-alone Financial Statements 68 Auditors Report on Consolidated 102 Financial Statements Consolidated Financial Statements 106 Safe Harbour Statement This report contains forward-looking statements, which may be identied by their use of words like plans, expects, will, anticipates, believes, intends, projects, estimates, or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about Companys future growth drivers, product development, market position and expenditures are forward looking statements. Forward looking statements are based on certain assumptions and expectations for future events. The company may not guarantee that these assumptions and expectations are accurate and will be realised. The Companys actual results, performance or achievements could thus dier materially from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify, revise any forward-looking statements, on the basis of any subsequent developments, information and events. Corporate Information Board of Directors R&D Centers Executive Directors GRAND R&D Center Mr. Soshil Kumar Jain - Chairman Plot No. 72/3, Gen Block, T.T.C. Indl. Area Mr. Ravinder Jain - Managing Director Mahape, Navi Mumbai - 400 710, India Dr. Rajesh Jain - Joint Managing Director SAMPANN Drug Delivery R&D Center Mr. Sandeep Jain - Joint Managing Director Ambala-Chandigarh Highway Mr. Sumit Jain - Director Operations & Projects Lalru 140 501, Punjab, India Non-Executive Independent Directors LAKSH Drug Discovery R&D Center Mr. R.L. Narasimhan Mr. N.N. Khamitkar Plot No. E-4, Phase II, Indl. Area Mr. K.M. Lal Mohali 160 055, Punjab, India Dr. A.N. Saksena OneStream Research Center Mr. O.P. Kelkar B-1 Extn./A-24-25, Mohan Co-operative Indl. Estate Mrs. Manjula Upadhyay Mathura Road, New Delhi -110 044, India Company Secretary Sales & Marketing Oce Mr. Vinod Goel - Group CFO and Head Legal & 7th oor, Sagar Tech Plaza, A Wing, Saki Naka, Company Secretary Andheri (East), Mumbai - 400 072, India Chief Financial Ocer Mr. Devender Gupta - Chief Financial Ocer & Head IT Statutory Auditors Registered Oce M/s. Walker Chandiok & Co. LLP Chartered Accountants, Gurgaon, India Ambala-Chandigarh Highway Lalru - 140 501, Punjab, India Secretarial Auditors M/s R&D Company Secretaries, Delhi, India Corporate Oces Cost Auditors B-1 Extn./G-3, Mohan Co-operative Indl. Estate Mathura Road, New Delhi - 110 044, India M/s. G.T. & Co., Cost Accountants, New Delhi, India Registrar & Transfer Agents B-1 Extn./A-27, Mohan Co-operative Indl. Estate Mathura Road, New Delhi - 110 044, India M/s. Skyline Financial Services Private Limited D-153 A, Ist Floor, Okhla Indl. Area, Phase-I Manufacturing Facilities New Delhi - 110 020, India Malpur, Baddi, Dist. Solan Banks Himachal Pradesh - 173 205, India Axis Bank Limited Ambala-Chandigarh Highway Bank of India Lalru 140 501, Punjab, India Canara Bank B-1/E-12, Mohan Co-operative Indl. Estate IDBI Bank Limited Mathura Road, New Delhi - 110 044, India Indian Overseas Bank State Bank of India State Bank of Mysore * As on August 13, 2015 State Bank of Travancore Union Bank of India www.panaceabiotec.com CIN: L33117PB1984PLC022350 Panacea Biotec Ltd. 1 Resilience Our Strength More than education, more than experience, more Since nding meaning in one's environment is than training, a person's level of resilience will such an important aspect of resilience, it should determine who succeeds and who fails. That's true come as no surprise that the most successful in the cancer ward, it's true in the Olympics, and it's organizations and people possess strong value systems. Strong values infuse an environment true in the boardroom. with meaning because they oer ways to Resilience is neither ethically good nor bad. It is interpret and shape events. While it's popular merely the skill and the capacity to be robust these days to ridicule values, it's surely no under conditions of enormous stress and coincidence that the most resilient organizations change. in the world have been those having their Resilient organizations possess three immutable set of values. Businesses that survive characteristics: a staunch acceptance of reality; a also have their creeds, which give them purposes deep belief, often buttressed by strongly held beyond just making money. Value systems at values, that life is meaningful; and an uncanny resilient companies change very little over the ability to improvise. You can bounce back from years and are used as scaolding in times of hardship with just one or two of these qualities, trouble. but you will only be truly resilient with all three. The third building block of resilience is the ability In the business world, an unblinking attitude is to make do with whatever is at hand. Indeed, shared by executives at all the most successful companies that survive regard improvisation as a companies. Resilient organizations have very core skill. sober and down-to-earth views of those parts of Panacea Biotec as an organization has shown all reality that matter for survival and success. That's the above inherent characteristics of a truly not to say that optimism doesn't have its place: In resilient organization having all the three core turning around a demoralized sales force, for characteristics of Resilience. Panacea Biotec as a instance, conjuring a sense of possibility can be a global health management company with a very powerful tool. But for bigger challenges, a mission to bring about innovation in support of cool, almost pessimistic, sense of reality is far life in every situation is a testament to its rm more important. belief in its abilities and reason for existence. This The ability to see reality is closely linked to the rm belief coupled with strong and deep rooted second building block of resilience, the value system which ows directly from the top propensity to make meaning of terrible times. We management to each and every employee of the all know organizations that, under duress, throw organization gives us unparalleled strength to up their hands and cry, How can this be tide over any situations. The realization of each happening to us? Such organizations see and every employee to make do with whatever is themselves as victims, and living through at hand and deliver the desired outcome by hardship carries no lessons for them. But resilient improvisation and innovation is the reason for organizations devise constructs about their our improved performance during the last year suering to create some sort of meaning for and we are now fully geared to ride the path of themselves and others. growth and good times in year ahead. 2 Annual Report 2014-15 Mission Vision Goal Objective Innovation in Leading Health To Meet Every Take Ideas from Support of Life Management Healthcare Need Grey Cell to Company with a Markets Panacea Biotec in a Brand and Proactive Service Manner Our Values A process which transforms business ideas to marketable products Bringing together dierent functions of the organisation like marketing, nance, R&D, manufacturing to meet a common goal A 'way of life' in every activity, from administration to innovation To challenge every process & solution to discover ways to make them better Intolerance towards stability, encouraging continuous change Thinking about the impossible and discovering ways to execute it Deep rooted and sustainable change and supercial eorts Striving for leadership in every activity and to become the guiding star Having a vision of the future and succeed in reaching there before anyone else Persevere in owning innovation and be the rst mover in the market Empowering people to speed up the organisation growth Always embracing new technology and processes Condence to stand apart from competitive organisations Honesty Ethical practices Transparent and clear communication Always learning & improving Humility to respect all individuals Care for individuals and environment Placing betterment of people (external and internal) at the core of each activity Core of new developments Panacea Biotec Ltd. 3 Chairman’s Message Dear Shareholders, I am happy to communicate with you once again on your Company's performance. Panacea Biotec's glorious past as a company with a remarkable history of research & development, manufacturing & marketing of pharmaceuticals, vaccines, bio-similars and natural products, consistent performance during the last year and bright future is reminiscent of the fact that your company is among the selected few companies in the world which has shown tremendous resilience in the best and worst of times. We have not compromised on our belief systems and values while pursuing the path of growth and culture of innovation in support of life. Company's mission of becoming one of the leading health management company in the world oering widest range of innovative products and services to meet every healthcare need of mankind remains intact. To achieve this, we have been working incessantly on developing & commercializing best-in-class medicines When we tackle obstacles, and expanding our business operations. we nd hidden reserves of During the year, your company worked overtime to expand and strengthen what we believe is an courage and resilience we exceptional portfolio of products and brands in global markets. The focus was on expansion of your did not know we had. And Company's customer base and product portfolio for its existing products and brands and increasing market it is only when we are penetration in both established and emerging markets at global level.