Close
x
  • SMC open account icon Open an A/C
    • Open an A/C
    • CHOOSE YOUR OPTION(S)
    • Trading A/c
    • Mutual Fund A/c
    • NBFC A/c
    • NPS A/c
  • SENSEX Dec 01 2020 12:00
    44,655.44 +505.72 ( +1.15%)
  • NIFTY Dec 01 2020 12:00
    13,109.05 +140.10 ( +1.08%)
  • SENSEX Dec 01 2020 12:00
    44,655.44 +505.72 ( +1.15%)
  • NIFTY Dec 01 2020 12:00
    13,109.05 +140.10 ( +1.08%)
  • Nasdaq Dec 01 2020 04:30
    12,198.74 -7.11 (-0.06%)
  • DJIA Dec 01 2020 04:30
    29,638.64 -271.73 (-0.91%)
  • S&P 500 Dec 01 2020 04:30
    3,621.63 -16.72 (-0.46%)
  • Hang Seng Dec 01 2020 02:10
    26,567.68 +226.19 ( +0.86%)
  • Crude Oil Dec 01 2020 11:46
    3,285.00 -41.00 (-1.23%)
  • Gold Dec 01 2020 11:03
    48,486.00 +694.00 ( +1.45%)
  • Silver Dec 01 2020 11:46
    62,200.00 +3,078.00 ( +5.21%)
  • Copper Dec 01 2020 11:46
    587.60 +5.30 ( +0.91%)
  • Pound / Rupee Dec 23 2016 22:30
    98.48 -0.09 (-0.09%)
  • Dollar / Rupee Dec 23 2016 22:30
    73.70 -0.08 (-0.11%)
  • Euro / Rupee Dec 23 2016 22:30
    87.81 -0.02 (-0.03%)
  • Yen / Rupee Dec 23 2016 22:30
    0.71 0.00 ( +0.04%)

Cipla Ltd

BSE Code : 500087 | NSE Symbol : CIPLA | ISIN:INE059A01026| SECTOR : Pharmaceuticals |

NSE BSE
 
SMC up arrow

755.55

10.90 (1.46%) Volume 280564

01-Dec-2020 EOD

Prev. Close

744.65

Open Price

750.35

Bid Price (QTY)

-/-()

Offer Price (QTY)

-/-()

 

Today’s High/Low 759.95 - 746.65

52 wk High/Low 829.00 - 356.75

Key Stats

MARKET CAP (RS CR) 60931.04
P/E 27.17
BOOK VALUE (RS) 233.609899
DIV (%) 200
MARKET LOT 1
EPS (TTM) 27.81
PRICE/BOOK 3.23423794639798
DIV YIELD.(%) 0.53
FACE VALUE (RS) 2
DELIVERABLES (%) 28.94
4

News & Announcements

20-Nov-2020

Cipla Ltd - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation

18-Nov-2020

Cipla launches Covi-G

18-Nov-2020

Cipla climbs on launching COVID-19 antibody detection kit

18-Nov-2020

Cipla Ltd - Announcement under Regulation 30 (LODR)-Press Release / Media Release

18-Nov-2020

Cipla launches Covi-G

09-Nov-2020

Cipla allots 80,347 equity shares under ESOS

28-Oct-2020

Cipla launches ‘ELIFast' (IgG ELISA test) for dectection of COVID-19 antibody

20-Oct-2020

Cipla launches generic Nintedanib for treatment of Idiopathic Pulmonary Fibrosis

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Alembic Ltd 506235 ALEMBICLTD
Alembic Pharmaceuticals Ltd 533573 APLLTD
Alkem Laboratories Ltd 539523 ALKEM
ANG Lifesciences India Ltd 540694
Anglo-French Drugs & Industries Ltd 40169
Astron Drugs & Industries Ltd 524206
Aurobindo Pharma Ltd 524804 AUROPHARMA
Bajaj Healthcare Ltd 539872
Bal Pharma Ltd 524824 BALPHARMA
Biocon Ltd 532523 BIOCON
Bombay Drugs & Pharma Ltd (Merged) 524512
Brooks Laboratories Ltd 533543 BROOKS
Cadila Healthcare Ltd 532321 CADILAHC
Cebon India Ltd 524272
Celestial Biolabs Ltd 532871 CELESTIAL
Cepham Organics Ltd 507756
Cian Healthcare Ltd 542678
Claris Lifesciences Ltd 533288
Concord Drugs Ltd 538965
Dee-Pharma Ltd 507722 DEEPHARMA
Dishman Carbogen Amcis Ltd 540701 DCAL
Dr Reddys Laboratories Ltd 500124 DRREDDY
Dr Sabharwals Manufacturing Labs Ltd 507743
Dr.Datsons Labs Ltd 533412 DRDATSONS
Druid Pharma Ltd 40430
Earum Pharmaceuticals Ltd 542724
Eupharma Laboratories Ltd 530409 EUPHARMLAB
FDC Ltd 531599 FDC
Glenmark Pharmaceuticals Ltd 532296 GLENMARK
Gufic BioSciences Ltd 509079 GUFICBIO
Hindustan Bio Sciences Ltd 532041
Hindustan Biotech Ltd 40162
Indoco Remedies Ltd 532612 INDOCO
Ind-Swift Laboratories Ltd 532305 INDSWFTLAB
IOL Chemicals & Pharmaceuticals Ltd 524164 IOLCP
Ipca Laboratories Ltd 524494 IPCALAB
J B Chemicals & Pharmaceuticals Ltd 506943 JBCHEPHARM
Jagsonpal Pharmaceuticals Ltd 507789 JAGSNPHARM
Jayant Vitamins Ltd 506518
Jupiter Bioscience Ltd 524826 JUPITER
KDL Biotech Ltd 532291 KOPDRUGS
Kopran Ltd 524280 KOPRAN
Kothari Phytochemicals & Industries Ltd 40136
Lasa Supergenerics Ltd 540702 LASA
Lupin Laboratories Ltd (Merged) 500258 LUPINLAB
Lyka Labs Ltd 500259 LYKALABS
Mangalam Drugs and Organics Ltd 532637 MANGALAM
Medico Remedies Ltd 540937
Mercury Phytochem Ltd 524498
Merind Ltd 506895 MARIND
Mesco Pharmaceuticals Ltd 500274 MESCOPHARM
Morepen Laboratories Ltd 500288 MOREPENLAB
Mylan Laboratories Ltd 524794 MATRIXLABS
Natco Pharma Ltd 524816 NATCOPHARM
Oriental Remedies & Herbals Ltd 526989
Ortin Laboratories Ltd 539287 ORTINLABSS
P C I Chemicals & Pharmaceuticals Ltd 524792
Pan Drugs Ltd 531440
Panacea Biotec Ltd 531349 PANACEABIO
Parnax Lab Ltd 506128
Phaarmasia Ltd 523620
Pharmaceutical Products of India Ltd 524113 PPIL
Piramal Enterprises Ltd 500302 PEL
Ranbaxy Laboratories Ltd (Merged) 500359 RANBAXY
RPG Life Sciences Ltd 532983 RPGLIFE
Saamya Biotech (India) Ltd 532905
Sakar Healthcare Ltd 538377 SAKAR
Sandoz (India) Ltd (Merged) 531990
Sharda Drugs & Industries Ltd 24206
Shree Ganesh Biotech India Ltd 539470
Shree Ganesh Remedies Ltd 540737
Siddhartha Pharmachem Ltd 532122
SMS Lifesciences India Ltd 540679 SMSLIFE
Socrus Bio Sciences Ltd 524719
SOL Pharmaceuticals Ltd 500393 SOLPHARMA
Solara Active Pharma Sciences Ltd 541540 SOLARA
Source Natural Foods & Herbal Supplements Ltd 531398
Strides Pharma Science Ltd 532531 STAR
Sumitra Pharmaceutical & Chemicals Ltd (Merged) 524133 SUMITRAPHA
Sun Pharmaceuticals Industries Ltd 524715 SUNPHARMA
Supriya Pharmaceuticals Ltd 524784
Surya Pharmaceutical Ltd 532516 SURYAPHARM
Suven Pharmaceuticals Ltd 543064 SUVENPHAR
Syngene International Ltd 539268 SYNGENE
Syschem (India) Ltd 531173
Themis Medicare Ltd 530199 THEMISMED
Titan Biotech Ltd 524717
Tonira Pharma Ltd(merged) 530155
Torrent Pharmaceuticals Ltd 500420 TORNTPHARM
Triochem Products Ltd 512101
TTK Healthcare Ltd 507747 TTKHLTCARE
Unichem Laboratories Ltd 506690 UNICHEMLAB
Unicorn Pharmaceuticals (India) Ltd 524334
Valencia Nutrition Ltd 542910
Vardhaman Laboratories Ltd 524796
Vikram Thermo (India) Ltd 530477
Vivimed Labs Ltd 532660 VIVIMEDLAB
Welcure Drugs & Pharmaceuticals Ltd 524661
Wintac Ltd 524758
Wockhardt Ltd 532300 WOCKPHARMA
Zillion Pharmachem Ltd 524476 ZILONPHARM
Zota Health Care Ltd 538426 ZOTA

Share Holding

Category No. of shares Percentage
Total Foreign 168861934 20.94
Total Institutions 159079119 19.73
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 47490466 5.89
Total Promoters 295485596 36.65
Total Public & others 135420341 16.79
Total 806337456 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Cipla Ltd

Cipla Ltd is one of the leading pharmaceutical companies in India. The company focuses on development of new formulations and has a wide range of pharmaceutical products. The product portfolio includes over 1,500 products across wide range of therapeutic categories. Cipla Ltd was incorporated in the year 1935 with the name Chemical, Industrial & Pharmaceutical Laboratories Ltd. Khwaja Abdul Hamied, the founder of Cipla gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorized capital of Rs 6 lakh. In the year 1941, as the Second World War cuts off drug supplies, the company starts producing fine chemicals, dedicating all its facilities for the war effort. In the year 1952, the company set up first research division for attaining self-sufficiency in technological development. In the year 1960, they started operations at second plant at Vikhroli, Mumbai, producing fine chemicals with special emphasis on natural products. In the year 1968, the company manufactured ampicillin for the first time in the country. In the year 1972, the company started Agricultural Research Division at Bangalore, for scientific cultivation of medicinal plants. In the year 1976, they launched medicinal aerosols for asthma. In the year 1980, the company won Chemexcil Award for Excellence for exports. In the year 1982, the company started operations in their fourth factory at Patalganga, Maharashtra. In the year 1984, they developed anti-cancer drugs, vinblastine and vincristine in collaboration with the National Chemical Laboratory, Pune. Also, they won Sir P C Ray Award for developing in-house technology for indigenous manufacture of a number of basic drugs. In the year 1985, US FDA approved the company's bulk drug manufacturing facilities. In the year 1988, they won National Award for Successful Commercialisation of Publicly Funded R&D. In the year 1991, the company launched etoposide, a breakthrough in cancer chemotherapy, in association with Indian Institute of Chemical Technology. Also, they manufactured antiretroviral drug, zidovudine, in technological collaboration with Indian Institute of Chemical Technology, Hyderabad. In the year 1994, the company commenced commercial operations in their fifth factory at Kurkumbh, Maharashtra. In the year 1997, they launched transparent Rotahaler, the world's first such dry powder inhaler device. In the year 1998, they launched lamivudine. The company becomes one of the few companies in the world to offer all three component drugs of retroviral combination therapy. In the year 1999, the company launched Nevirapine, antiretroviral drug, used to prevent the transmission of AIDS from mother to child. In the year 2000, the company became the first company, outside the USA and Europe to launch CFC-free inhalers - ten years before the deadline to phase out use of CFC in medicinal products. In the year 2002, the company set up four state-of-the-art manufacturing facilities in Goa. In the year 2003, they launched TIOVA (Tiotropium bromide), a novel inhaled, long-acting anticholinergic bronchodilator that is employed as a once-daily maintenance treatment for patients with chronic obstructive pulmonary disease (COPD). Also, they commissioned second phase of manufacturing operations at Goa. In the year 2005, the company set up state-of-the-art facility for manufacture of formulations at Baddi, Himachal Pradesh. In the year 2007, they set up state-of-the-art facility for manufacture of formulations at Sikkim. In February 2007, the company entered into a development and supply agreement with Drugs for Neglected Diseases Initiative (DNDi), a global non-profit organization, for a new anti-malarial combination drug as a global initiative. During the year 2009-10, the company sold their intellectual property rights and technical know-how of 'i-pill', an emergency contraceptive brand, to Piramal Healthcare Ltd, for the territory of India, at an aggregate consideration of Rs 95 crore. Also, they entered into a strategic alliance with Stempeutics Research Pvt. Ltd., promoted by the Manipal Group, for the marketing rights of stem-cell-based products being developed by Stempeutics. Cipla is sponsoring up to Rs.50 crore, in the initial phase, for research and development of these products. In April 2010, the company commenced commercial production of pharmaceutical formulations at the Special Economic Zone (SEZ) project, at Indore, Madhya Pradesh. This project includes facilities for the manufacture of aerosols, respules, liquid orals, pre-filled syringes (PFS), nasal sprays, large volume parenterals (LVP), eye drops, tablets and capsules. The total investment for this project is about Rs 900 crore. In May 2010, the company acquired an undertaking for Rs 30.64 crore, by way of a slump sale arrangement. The undertaking has a manufacturing facility, approved by US FDA and WHO, for APIs and intermediates. It is located at Kurkumbh (Pune district). Also, the company set up a wholly-owned subsidiary, 'Cipla Singapore Pte Ltd', in Singapore to aid logistics and distribution of the company's export business. In May 2010, the company acquired 100% shareholding of a company for Rs 51.38 crore. This company has a state-of-the-art formulations manufacturing facility at Sikkim with capabilities to manufacture tablets, capsules, oral liquids, injections, dry syrup and ointments/creams. During the year 2010-11, the company introduced a number of new drugs and formulations, such as Entavir (entecavir tablets), an antiviral for hepatitis B; Febucip (febuxostat tablets), a drug for gout; Flosoft (fluorometholone acetate ophthalmic suspension), a topical steroid for eye inflammation; Foracort (formoterol and budesonide autohaler), an asthma controller therapy in a new easy-to-use breath actuated inhaler; Furamist AZ (fluticasone furoate and azelastine hydrochloride nasal spray), a nasal spray for allergic rhinitis, and Montair FX (montelukast and fexofenadine tablets), an antiallergic combination for rhinitis. During the year, Cipla (Mauritius) Ltd, Cipla (UK) Ltd, Cipla-Oz Pty Ltd, Four M Propack Pvt Ltd, Goldencross Pharma Pvt Ltd, Medispray Laboratories Pvt Ltd, Meditab Holdings Ltd, Meditab Pharmaceuticals South Africa (Pty) Ltd, Meditab Specialities New Zealand Ltd, Meditab Specialities Pvt Ltd, Sitec Labs Pvt Ltd and STD Chemicals Ltd. The company is setting up API facilities at Bengaluru and Kurkumbh. They are also upgrading the API facilities at Patalganga. The total investment for these projects is about Rs 400 crore. The company proposes to subscribe to the share capital of two biotechnology companies, located in India and Hong Kong, to obtain a 40 per cent and a 25 per cent share, respectively. The total investment will be about USD 65 million, in a phased manner, for setting up state-of-the-art facilities for biosimilar products in Goa and China. On 3 May 2012, Cipla announced a major price reduction in selected cancer drugs. On 21st July 2012, Cipla announced collaboration with Drugs for Neglected Diseases initiative (DNDi), a not-for-profit research and development (R&D) organization, to develop and produce an improved first-line antiretroviral (ARV) combination therapy specifically adapted to meet the treatment needs of infants and toddlers living with HIV/AIDS. On 14 August 2012, Cipla announced the launch of Qvir', a novel 4 drug kit priced at Rs 158 for treating HIV/AIDS. On 8 November 2012, Cipla announced a major price reduction on select anti-cancer drugs. On 27 February 2013, Cipla announced an offer to the shareholders of Cipla Medpro South Africa Ltd. (Medpro) to acquire 100% of the ordinary share capital of Medpro for ZAR 10.0 per share via a scheme of arrangement. The Board of Directors of Medpro unanimously resolved to support and facilitate Cipla's offer and recommended to Medpro shareholders that they vote in favour of all resolutions required to implement the scheme of arrangement. Cipla Medpro South Africa is a leading provider of chronic medicines to the public and private sectors. On 16 July 2013, Cipla announced that it had completed the acquisition of 100% of the issued shares of Cipla Medpro South Africa Ltd. for an aggregate consideration of ZAR 4507mn (Rs 2707 crore). On 17 April 2013, Cipla announced the launch of the first biosimilar of Etanercept in India for the treatment of rheumatic disorders. On 20 February 2014, Cipla and MSD announced the formation of an India-specific strategic partnership whereby Cipla will have a non-exclusive license to market, promote and distribute MSD's raltegravir 400mg tablet, under a different brand name in India. The drug is used for the treatment of HIV-1 infection in adult patients as part of combination HIV therapy. On 12 May 2014, Cipla through its wholly owned subsidiary, Cipla (EU) Limited announced $21 million two-phase investment in Chase Pharmaceuticals Corporation Inc., US (Chase) to support Alzheimer's disease drug development. On 19 June 2014, Cipla announced that it has collaborated with Hetero to launch a biosimilar of the drug Darbepoetin alfa' under the brand name Actorise'. The product is indicated for the treatment of anaemia caused due to chronic kidney disease. On 7 July 2014, Cipla announced its intention to make investments of up to 100 million in its UK subsidiary over the next few years. The investment will fund the launch of a range of drugs in the areas of respiratory, oncology and antiretroviral medicines as well as research and development, clinical trials and further expansion internationally and in the UK. In its bid to enter the markets of Czech Republic and Slovaki, Cipla on 8 September 2014 announced commercial collaboration with UK-based S&D Pharma. On 15 September 2014, Cipla announced that it had signed a non-exclusive licensing agreement with Gilead Sciences, Inc. for manufacturing and distribution of Sofosbuvir mono, Ledipasvir mono, the fixed-dose combination of Ledipasvir/Sofosbuvir with each other and the combination of Sofosbuvir or Ledipasvir with other active substances, for the treatment of hepatitis C. On 18 September 2014, Cipla announced that it has granted Salix Pharmaceuticals, Inc., a US-based speciality pharmaceutical company, exclusive rights under certain patent applications in the Rifaximin Complexes' patent family controlled by Cipla. The grant is on a worldwide basis, excluding the countries of Asia (other than Japan) and Africa. On 8 October 2014, Medpro Pharmaceutica (Pty) Ltd - a subsidiary company of Cipla Medpro announced that it had entered into sales and distribution arrangement with Teva Pharmaceuticals (Pty) Ltd, an affiliate of Teva Pharmaceutical Industries Ltd (Teva) - the largest generic pharmaceutical manufacturer in the world for the territory of South Africa. As per the tie-up, Cipla Medpro, a 100% subsidiary of Cipla Limited, will exclusively market Teva's broad pharmaceutical product portfolio in South Africa. On 9 February 2015, Cipla announced that its wholly owned subsidiary, Cipla (EU) Limited, U.K. has entered into a joint venture (JV) agreement with Cipla's existing business partners in Morocco - Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI). This JV is aimed at strengthening Cipla's presence in Morocco, which is in-line with its global growth strategy to build front-end presence in key markets. On 13 February 2015, Cipla announced that it has been awarded USD 188.95 million of Global Fund ARV Tender for anti-retrovirals drugs. The Global Fund is a 21st- century partnership designed to accelerate the end of AIDS, tuberculosis and malaria as epidemics. On 21 July 2015, Cipla announced that its board of directors approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II Limited or its affiliates, in its newly launched consumer healthcare business which is under incorporation. On 4 September, 2015, Cipla announced that its UK arm, Cipla EU has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc for $550 million in an all cash transaction. InvaGen Pharmaceuticals is a leading generic pharmaceutical company in the US. Exelan Pharmaceuticals is a privately held sales and marketing company, with a focus on generic pharmaceuticals for the government and institutional market in the US. On 18 February 2016, Cipla announced that its UK arm, Cipla (EU) Limited had successfully completed the acquisition of InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The acquisition was made by Cipla (EU) Limited through a wholly owned special purpose vehicle which would merge into InvaGen Pharmaceuticals Inc. after the acquisition. On 8 October 2015, Cipla announced that its South African subsidiary Cipla Medpro (Pty) Ltd. entered into an exclusive agreement with the world's largest vaccine manufacturer, Serum Institute of India (SII) to provide vaccines in South Africa. On 29 October 2015, Cipla announced that it had entered into a definitive agreement to sell its entire 25% stake in Biomab Holding Limited, Hong Kong (BHL) to Biomab Brilliant Limited, British Virgin Islands which holds the remaining 75% stake in BHL, for a total consideration of USD 25,775,000. Biomab Holding Limited is focused on developing Biosimilars for the Chinese market. On 21 December 2015, Cipla announced the launch of generic drug Ledipasvir-Sofosbuvir in India under the brand name Hepcvir-L. Hepcvir-L is the first once-a-day, fixed-dose oral combination therapy that has been approved for chronic hepatitis C genotype 1 patients. On 6 January 2016, BioQ Pharma Incorporated, a specialty pharmaceutical company focused on the development and commercialization of single-use, large-volume ready-to-use infusible pharmaceuticals, and Cipla announced the signing of a strategic distribution, supply and development agreement for the registration and commercialization of BioQ Pharma's Ropivacaine infusion pharmaceutical in India. On 12 October 2016, Cipla announced that it has received Establishment Inspection Report (EIR) from the US FDA for its Indore facility, indicating formal closure of the US FDA inspection conducted in July/August, 2015. On 23 November 2016, Cipla announced that Chase Pharmaceuticals Corporation, a Delaware based corporation (Chase) in which Cipla Limited's UK arm, Cipla (EU) Limited (Cipla UK) has 16.7% stake, has been acquired by a subsidiary of Allergan, plc. Allergan agreed to pay $125 million upfront plus potential regulatory and commercial milestones of up to $875 million to the shareholders of Chase. Cipla UK acquired a minority stake in Chase in May 2014 via a syndicated venture investment. On 17 February 2017, Cipla announced the launch of adult Hepatitis B vaccine in India. Under a co-exclusive agreement with Serum Institute of India Private Limited (SII), Cipla will market the vaccine for adults while SII will market it for adults and children. On 4 March 2017, Cipla announced that it had entered into agreements, through its Wholly Owned Subsidiary Inyanga Trading 386 Proprietary Limited (Inyanga), with the group companies of Ascendis Health Limited, South Africa for divesting its animal health business in South Africa and Sub-Saharan Africa. On 6 April 2017, Cipla announced that its wholly owned subsidiary in USA Cipla USA Inc. signed a worldwide licensing agreement (except for East Asia) with MEDRx Company Limited (MEDRx) to further develop and commercialize MRX-4TZT, a Tizanidine patch for the management of Spasticity. On 30 November 2017, Cipla announced that it had received an approval for its product Q-TIB from World Health Organisation (WHO). Q-TIB is a novel fixed dose combination in a single tablet. This is the first time that such a combination has been made available in the world.

Cipla Ltd Chairman Speech

Dear Shareholders,

Healthcare management is about combining business with a humanitarian outlook. Our pharmaceutical industry's prime role is to save and improve the quality of patients' lives. We are the custodians of healthcare and this is our key responsibility. Cipla follows this principle, apart from achieving our business objectives. Cipla believes that access to medicines at affordable prices is a fundamental human right and that none should be denied medication, not only in India, but globally.

The pharma industry is different from other industries for two major reasons. Firstly, monopoly arising out of intellectual property rights, which gives exclusivity and secondly, the high rate of obsolescence of drugs. Newer medications have to be continuously innovated to enable long term progress.

The global pharma approach is to concentrate and focus essentially on newer drugs, future pipeline and product portfolios, R&D and innovation. Within this framework, we in Cipla believe in the adaptation of appropriate innovative technologies which can improve and facilitate healthcare in India.

Cipla started as an indigenous enterprise in 1935, committed to India's quest for self-sufficiency in healthcare. Today, Cipla is a leading worldwide generic pharmaceutical company with 46 state of the art manufacturing facilities and supplies quality medicines to over 80 markets globally. Cipla started large scale manufacture of active pharmaceutical ingredients way back in the early 1960s and developed important life-saving formulations and devices based on this, and covering many key therapies. We are currently ranked among the 15 leading global generic drug producers. Cipla is now well positioned to extend its expertise from general generics to more complex generics and niche specialty products.

In our overall R&D programme, we are closely monitoring the repurposing and repositioning of existing drugs. This interesting area of research includes prodrugs, metabolites, liposomal drugs, nano-particles, enhancers, boosters, co-crystals, chiral drugs, new polymorphs, new fixed dose combinations, newer indications, newer delivery systems and newer routes of drug administration. Again, the ultimate objective is to develop products for faster regulatory approvals in niche markets. A major example of this was in the area of HIV/ AIDS. Cipla introduced for the first time in the world, a unique fixed dose combination of three antiretroviral drugs under the name Triomune. This repositioned drug saved millions of lives during the first decade of the current century. It is a testament to the immense potential this R&D holds for the continuing progress of our Company.

Today India is regarded as the Pharmacy capital of the world. The Indian pharma industry sales were valued at $33-billion in 2017 and are on course to touch $50-billion by 2020. India is the largest provider of generic drugs globally and the Indian pharma industry supplies 40% of the generic drug demand in the US. Exports of the Indian pharma sector are estimated to exceed $20-billion by 2020. India supplies well over 80% by volume of all the HIV/AIDS drugs internationally. However, of the seven billion people living on our planet, the overwhelming majority of 6.2 billion live in the emerging and developing world. Proper healthcare is only guaranteed to approximately 10% of the world's population. The right to live should not be contingent on the ability to treat. We need to provide affordable essential drugs to safeguard a stable and healthy India. No one in our country should suffer because they cannot afford medicines, diagnostics, medical devices or vaccines. India should also extend help in this area to other countries, particularly in Africa.

Given its population and disease burden, basic healthcare in India will always require urgent attention, alongside advancements and newer technologies. It is therefore all-important that government policies and strategies are formulated to cover our present basic needs and requirements of the country. India should formulate legislation on healthcare to suit the specific needs of the indigenous pharma industry as also the healthcare required in the country. An increase in the Government's public healthcare expenditure is the need of the hour. We want all our countrymen to lead productive lives in good health, thereby promoting the well-being of our country. To this end, the flagship national health cover scheme of the Government is a very promising initiative. We should all work together to solve healthcare issues using appropriate technology and advanced science. This will enable us to fulfil our dream of a productive and progressive India.

As always, my sincere gratitude to all our stakeholders for your partnership in this journey of 'Caring for Life'. Your Cipla Board and leadership remain committed to our purpose, even as we work towards creating and delivering value.

Warm Regards,

Y.K. Hamied

   

Cipla Ltd Company History

Cipla Ltd is one of the leading pharmaceutical companies in India. The company focuses on development of new formulations and has a wide range of pharmaceutical products. The product portfolio includes over 1,500 products across wide range of therapeutic categories. Cipla Ltd was incorporated in the year 1935 with the name Chemical, Industrial & Pharmaceutical Laboratories Ltd. Khwaja Abdul Hamied, the founder of Cipla gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorized capital of Rs 6 lakh. In the year 1941, as the Second World War cuts off drug supplies, the company starts producing fine chemicals, dedicating all its facilities for the war effort. In the year 1952, the company set up first research division for attaining self-sufficiency in technological development. In the year 1960, they started operations at second plant at Vikhroli, Mumbai, producing fine chemicals with special emphasis on natural products. In the year 1968, the company manufactured ampicillin for the first time in the country. In the year 1972, the company started Agricultural Research Division at Bangalore, for scientific cultivation of medicinal plants. In the year 1976, they launched medicinal aerosols for asthma. In the year 1980, the company won Chemexcil Award for Excellence for exports. In the year 1982, the company started operations in their fourth factory at Patalganga, Maharashtra. In the year 1984, they developed anti-cancer drugs, vinblastine and vincristine in collaboration with the National Chemical Laboratory, Pune. Also, they won Sir P C Ray Award for developing in-house technology for indigenous manufacture of a number of basic drugs. In the year 1985, US FDA approved the company's bulk drug manufacturing facilities. In the year 1988, they won National Award for Successful Commercialisation of Publicly Funded R&D. In the year 1991, the company launched etoposide, a breakthrough in cancer chemotherapy, in association with Indian Institute of Chemical Technology. Also, they manufactured antiretroviral drug, zidovudine, in technological collaboration with Indian Institute of Chemical Technology, Hyderabad. In the year 1994, the company commenced commercial operations in their fifth factory at Kurkumbh, Maharashtra. In the year 1997, they launched transparent Rotahaler, the world's first such dry powder inhaler device. In the year 1998, they launched lamivudine. The company becomes one of the few companies in the world to offer all three component drugs of retroviral combination therapy. In the year 1999, the company launched Nevirapine, antiretroviral drug, used to prevent the transmission of AIDS from mother to child. In the year 2000, the company became the first company, outside the USA and Europe to launch CFC-free inhalers - ten years before the deadline to phase out use of CFC in medicinal products. In the year 2002, the company set up four state-of-the-art manufacturing facilities in Goa. In the year 2003, they launched TIOVA (Tiotropium bromide), a novel inhaled, long-acting anticholinergic bronchodilator that is employed as a once-daily maintenance treatment for patients with chronic obstructive pulmonary disease (COPD). Also, they commissioned second phase of manufacturing operations at Goa. In the year 2005, the company set up state-of-the-art facility for manufacture of formulations at Baddi, Himachal Pradesh. In the year 2007, they set up state-of-the-art facility for manufacture of formulations at Sikkim. In February 2007, the company entered into a development and supply agreement with Drugs for Neglected Diseases Initiative (DNDi), a global non-profit organization, for a new anti-malarial combination drug as a global initiative. During the year 2009-10, the company sold their intellectual property rights and technical know-how of 'i-pill', an emergency contraceptive brand, to Piramal Healthcare Ltd, for the territory of India, at an aggregate consideration of Rs 95 crore. Also, they entered into a strategic alliance with Stempeutics Research Pvt. Ltd., promoted by the Manipal Group, for the marketing rights of stem-cell-based products being developed by Stempeutics. Cipla is sponsoring up to Rs.50 crore, in the initial phase, for research and development of these products. In April 2010, the company commenced commercial production of pharmaceutical formulations at the Special Economic Zone (SEZ) project, at Indore, Madhya Pradesh. This project includes facilities for the manufacture of aerosols, respules, liquid orals, pre-filled syringes (PFS), nasal sprays, large volume parenterals (LVP), eye drops, tablets and capsules. The total investment for this project is about Rs 900 crore. In May 2010, the company acquired an undertaking for Rs 30.64 crore, by way of a slump sale arrangement. The undertaking has a manufacturing facility, approved by US FDA and WHO, for APIs and intermediates. It is located at Kurkumbh (Pune district). Also, the company set up a wholly-owned subsidiary, 'Cipla Singapore Pte Ltd', in Singapore to aid logistics and distribution of the company's export business. In May 2010, the company acquired 100% shareholding of a company for Rs 51.38 crore. This company has a state-of-the-art formulations manufacturing facility at Sikkim with capabilities to manufacture tablets, capsules, oral liquids, injections, dry syrup and ointments/creams. During the year 2010-11, the company introduced a number of new drugs and formulations, such as Entavir (entecavir tablets), an antiviral for hepatitis B; Febucip (febuxostat tablets), a drug for gout; Flosoft (fluorometholone acetate ophthalmic suspension), a topical steroid for eye inflammation; Foracort (formoterol and budesonide autohaler), an asthma controller therapy in a new easy-to-use breath actuated inhaler; Furamist AZ (fluticasone furoate and azelastine hydrochloride nasal spray), a nasal spray for allergic rhinitis, and Montair FX (montelukast and fexofenadine tablets), an antiallergic combination for rhinitis. During the year, Cipla (Mauritius) Ltd, Cipla (UK) Ltd, Cipla-Oz Pty Ltd, Four M Propack Pvt Ltd, Goldencross Pharma Pvt Ltd, Medispray Laboratories Pvt Ltd, Meditab Holdings Ltd, Meditab Pharmaceuticals South Africa (Pty) Ltd, Meditab Specialities New Zealand Ltd, Meditab Specialities Pvt Ltd, Sitec Labs Pvt Ltd and STD Chemicals Ltd. The company is setting up API facilities at Bengaluru and Kurkumbh. They are also upgrading the API facilities at Patalganga. The total investment for these projects is about Rs 400 crore. The company proposes to subscribe to the share capital of two biotechnology companies, located in India and Hong Kong, to obtain a 40 per cent and a 25 per cent share, respectively. The total investment will be about USD 65 million, in a phased manner, for setting up state-of-the-art facilities for biosimilar products in Goa and China. On 3 May 2012, Cipla announced a major price reduction in selected cancer drugs. On 21st July 2012, Cipla announced collaboration with Drugs for Neglected Diseases initiative (DNDi), a not-for-profit research and development (R&D) organization, to develop and produce an improved first-line antiretroviral (ARV) combination therapy specifically adapted to meet the treatment needs of infants and toddlers living with HIV/AIDS. On 14 August 2012, Cipla announced the launch of Qvir', a novel 4 drug kit priced at Rs 158 for treating HIV/AIDS. On 8 November 2012, Cipla announced a major price reduction on select anti-cancer drugs. On 27 February 2013, Cipla announced an offer to the shareholders of Cipla Medpro South Africa Ltd. (Medpro) to acquire 100% of the ordinary share capital of Medpro for ZAR 10.0 per share via a scheme of arrangement. The Board of Directors of Medpro unanimously resolved to support and facilitate Cipla's offer and recommended to Medpro shareholders that they vote in favour of all resolutions required to implement the scheme of arrangement. Cipla Medpro South Africa is a leading provider of chronic medicines to the public and private sectors. On 16 July 2013, Cipla announced that it had completed the acquisition of 100% of the issued shares of Cipla Medpro South Africa Ltd. for an aggregate consideration of ZAR 4507mn (Rs 2707 crore). On 17 April 2013, Cipla announced the launch of the first biosimilar of Etanercept in India for the treatment of rheumatic disorders. On 20 February 2014, Cipla and MSD announced the formation of an India-specific strategic partnership whereby Cipla will have a non-exclusive license to market, promote and distribute MSD's raltegravir 400mg tablet, under a different brand name in India. The drug is used for the treatment of HIV-1 infection in adult patients as part of combination HIV therapy. On 12 May 2014, Cipla through its wholly owned subsidiary, Cipla (EU) Limited announced $21 million two-phase investment in Chase Pharmaceuticals Corporation Inc., US (Chase) to support Alzheimer's disease drug development. On 19 June 2014, Cipla announced that it has collaborated with Hetero to launch a biosimilar of the drug Darbepoetin alfa' under the brand name Actorise'. The product is indicated for the treatment of anaemia caused due to chronic kidney disease. On 7 July 2014, Cipla announced its intention to make investments of up to 100 million in its UK subsidiary over the next few years. The investment will fund the launch of a range of drugs in the areas of respiratory, oncology and antiretroviral medicines as well as research and development, clinical trials and further expansion internationally and in the UK. In its bid to enter the markets of Czech Republic and Slovaki, Cipla on 8 September 2014 announced commercial collaboration with UK-based S&D Pharma. On 15 September 2014, Cipla announced that it had signed a non-exclusive licensing agreement with Gilead Sciences, Inc. for manufacturing and distribution of Sofosbuvir mono, Ledipasvir mono, the fixed-dose combination of Ledipasvir/Sofosbuvir with each other and the combination of Sofosbuvir or Ledipasvir with other active substances, for the treatment of hepatitis C. On 18 September 2014, Cipla announced that it has granted Salix Pharmaceuticals, Inc., a US-based speciality pharmaceutical company, exclusive rights under certain patent applications in the Rifaximin Complexes' patent family controlled by Cipla. The grant is on a worldwide basis, excluding the countries of Asia (other than Japan) and Africa. On 8 October 2014, Medpro Pharmaceutica (Pty) Ltd - a subsidiary company of Cipla Medpro announced that it had entered into sales and distribution arrangement with Teva Pharmaceuticals (Pty) Ltd, an affiliate of Teva Pharmaceutical Industries Ltd (Teva) - the largest generic pharmaceutical manufacturer in the world for the territory of South Africa. As per the tie-up, Cipla Medpro, a 100% subsidiary of Cipla Limited, will exclusively market Teva's broad pharmaceutical product portfolio in South Africa. On 9 February 2015, Cipla announced that its wholly owned subsidiary, Cipla (EU) Limited, U.K. has entered into a joint venture (JV) agreement with Cipla's existing business partners in Morocco - Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI). This JV is aimed at strengthening Cipla's presence in Morocco, which is in-line with its global growth strategy to build front-end presence in key markets. On 13 February 2015, Cipla announced that it has been awarded USD 188.95 million of Global Fund ARV Tender for anti-retrovirals drugs. The Global Fund is a 21st- century partnership designed to accelerate the end of AIDS, tuberculosis and malaria as epidemics. On 21 July 2015, Cipla announced that its board of directors approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II Limited or its affiliates, in its newly launched consumer healthcare business which is under incorporation. On 4 September, 2015, Cipla announced that its UK arm, Cipla EU has entered into definitive agreements to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc for $550 million in an all cash transaction. InvaGen Pharmaceuticals is a leading generic pharmaceutical company in the US. Exelan Pharmaceuticals is a privately held sales and marketing company, with a focus on generic pharmaceuticals for the government and institutional market in the US. On 18 February 2016, Cipla announced that its UK arm, Cipla (EU) Limited had successfully completed the acquisition of InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The acquisition was made by Cipla (EU) Limited through a wholly owned special purpose vehicle which would merge into InvaGen Pharmaceuticals Inc. after the acquisition. On 8 October 2015, Cipla announced that its South African subsidiary Cipla Medpro (Pty) Ltd. entered into an exclusive agreement with the world's largest vaccine manufacturer, Serum Institute of India (SII) to provide vaccines in South Africa. On 29 October 2015, Cipla announced that it had entered into a definitive agreement to sell its entire 25% stake in Biomab Holding Limited, Hong Kong (BHL) to Biomab Brilliant Limited, British Virgin Islands which holds the remaining 75% stake in BHL, for a total consideration of USD 25,775,000. Biomab Holding Limited is focused on developing Biosimilars for the Chinese market. On 21 December 2015, Cipla announced the launch of generic drug Ledipasvir-Sofosbuvir in India under the brand name Hepcvir-L. Hepcvir-L is the first once-a-day, fixed-dose oral combination therapy that has been approved for chronic hepatitis C genotype 1 patients. On 6 January 2016, BioQ Pharma Incorporated, a specialty pharmaceutical company focused on the development and commercialization of single-use, large-volume ready-to-use infusible pharmaceuticals, and Cipla announced the signing of a strategic distribution, supply and development agreement for the registration and commercialization of BioQ Pharma's Ropivacaine infusion pharmaceutical in India. On 12 October 2016, Cipla announced that it has received Establishment Inspection Report (EIR) from the US FDA for its Indore facility, indicating formal closure of the US FDA inspection conducted in July/August, 2015. On 23 November 2016, Cipla announced that Chase Pharmaceuticals Corporation, a Delaware based corporation (Chase) in which Cipla Limited's UK arm, Cipla (EU) Limited (Cipla UK) has 16.7% stake, has been acquired by a subsidiary of Allergan, plc. Allergan agreed to pay $125 million upfront plus potential regulatory and commercial milestones of up to $875 million to the shareholders of Chase. Cipla UK acquired a minority stake in Chase in May 2014 via a syndicated venture investment. On 17 February 2017, Cipla announced the launch of adult Hepatitis B vaccine in India. Under a co-exclusive agreement with Serum Institute of India Private Limited (SII), Cipla will market the vaccine for adults while SII will market it for adults and children. On 4 March 2017, Cipla announced that it had entered into agreements, through its Wholly Owned Subsidiary Inyanga Trading 386 Proprietary Limited (Inyanga), with the group companies of Ascendis Health Limited, South Africa for divesting its animal health business in South Africa and Sub-Saharan Africa. On 6 April 2017, Cipla announced that its wholly owned subsidiary in USA Cipla USA Inc. signed a worldwide licensing agreement (except for East Asia) with MEDRx Company Limited (MEDRx) to further develop and commercialize MRX-4TZT, a Tizanidine patch for the management of Spasticity. On 30 November 2017, Cipla announced that it had received an approval for its product Q-TIB from World Health Organisation (WHO). Q-TIB is a novel fixed dose combination in a single tablet. This is the first time that such a combination has been made available in the world.

Cipla Ltd Directors Reports

Dear Members,

The Board of Directors ('Board') are pleased to submit its report on the performance of the Company, along with the audited standalone and consolidated financial statements for the year ended 31st March, 2020.

Financial Summary and State of Affairs

Rs. in Crore

Particulars Year ended 31st March, 2019 Year ended 31st March, 2020
Standalone Consolidated Standalone Consolidated
Gross total revenue 12,374.01 16,362.41 12,659.15 17,131.99
Profit before tax and exceptional items 2,492.83 2,079.14 2,964.31 2,178.18
Profit for the year (after tax and attributable to shareholders) 1,888.41 1,527.70 2,318.17 1,546.52
Other comprehensive income for the year (not to be reclassified to P&L) 7.81 34.91 (15.30) (9.42)
Other comprehensive Income for the year (to be reclassified to P&L) 31.75 (324.85) (49.13) (119.98)
Surplus brought forward from last balance sheet 9,214.31 8,988.78 10,828.56 10,251.31
Profit available for appropriation 11,110.53 10,535.40 13,131.43 11,782.08
Appropriations:
Dividend (241.57) (241.57) (564.26) (564.26)
Tax on dividend (40.40) (42.52) (87.45) (99.94)
Surplus carried forward 10,828.56 10,251.31 12,479.72 11,117.88

The financial results and the results of operations, including major developments, have been discussed in detail in the Management Discussion and Analysis report.

The standalone and the consolidated financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS).

Share capital

During the year under review, the Company issued and allotted fully paid up 5,34,063 equity shares to its employees under the Employee Stock Option Scheme 2013-A. As a result, the issued, subscribed and paid up share capital of the Company increased from H1,61,14,02,532/- (divided into 80,57,01,266 equity shares of H2/- each) to H1,61,24,70,658/- (divided into 80,62,35,329 equity shares of H2/- each). The equity shares issued under the Employee Stock Option Scheme 2013-A rank pari-passu with the existing equity shares of the Company.

Dividend

The Board of Directors at its meeting held on 12th March, 2020, approved payment of interim dividend of H3 per equity share and one-time special dividend of H1 per equity share of face value of H2 each. The total dividend approved was H4 per equity share (i.e. 200%) of face value of H2 each. The dividend was paid to those shareholders whose name was registered in the Register of Members as on 20th March, 2020 being the record date. The Board does not recommend any final dividend, and accordingly the total interim dividend of H4/- per equity share declared by the Board at its meeting held on 12th March, 2020 is to be considered as the final dividend for FY 2019-20. The Company has paid approximately H322.49 crore (excluding dividend distribution tax of H66.29 crore) on account of dividend, which is equivalent to 13.91% of the standalone profit after tax of the Company.

The Company is in compliance with its Dividend Distribution Policy as approved by the Board. In compliance with the requirements under Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the Policy is annexed as Exhibit B to the Report on Corporate Governance.

Reserves

The Company has not transferred any amount to any reserve for the financial year ended 31st March, 2020.

Nature of business

The Company is engaged in the development, manufacture, sale and distribution of pharmaceutical generic and branded generic medicines. During the year, there has been no change in the nature of business of the Company.

Management Discussion and Analysis Report

Pursuant to Regulation 34 of the Listing Regulations, the Management Discussion and Analysis report for the year under review, is presented in a separate section, on page no. 121 of this report.

Corporate Social Responsibility (CSR)

A detailed report on Cipla's CSR initiatives has been provided in the Social Capital section forming part of the Integrated Report on page no. 100 and the Annual Report on CSR initiatives, as required under section 135 of the Companies Act, 2013 (Act) is annexed as Annexure I to this report on page no. 149. Details of CSR Committee composition, role and meetings etc. have been provided in the Report on Corporate Governance on page no. 202.

Business Responsibility Report

In compliance with the provisions of Regulation 34 of the Listing Regulations, the Business Responsibility Report (BRR) is presented in a separate section on page no. 175 of this report. Since the Company has adopted the International Integrated Reporting Council (IIRC) framework for publishing the Annual Report, reports on the nine principles of the National Voluntary Guidelines on social, environmental and economic responsibilities of business as framed by the Ministry of Corporate Affairs, Government of India, is provided in relevant sections of the Integrated Report with suitable references in the BRR.

Corporate Governance

In compliance with Regulation 34 read with Schedule V of the Listing Regulations, a Report on Corporate Governance for the year under review is presented in a separate section on page no. 182 of this report.

A certificate from M/s BNP & Associates, confirming compliance with the conditions of corporate governance, as stipulated under the Listing Regulations, is annexed as Annexure II to this report.

Directors' Responsibility Statement

Pursuant to section 134(3)(c) of the Act it is confirmed that the directors have:

i. Followed applicable accounting standards in the preparation of the annual accounts and there are no material departures for the same;

ii. 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 as on 31st March, 2020 and of the profit of the Company for the year ended 31st March, 2020;

iii. Taken proper and sufficient care for maintenance of adequate accounting records, in accordance with the provisions of the Act, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. Prepared the annual accounts on a going concern basis;

v. Laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

vi. Devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Conservation of energy, technology absorption, foreign exchange earnings and outgo

The details of energy conservation, technology absorption and foreign exchange earnings and outgo as required under section 134(3)(m) of the Act, read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed as Annexure III to this report.

Employee Stock Option Scheme

The Company has an Employee Stock Option Scheme, namely, 'Employee Stock Option Scheme 2013-A' (ESOP scheme) that helps the Company to retain and attract the right talent. The Nomination and Remuneration Committee (NRC) administers the ESOP scheme. There was no change in the ESOP scheme during the financial year under review. The ESOP scheme is in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (SBEB Regulations). Details of the Employee Stock Option Scheme 2013-A have also been provided in note no. 42 of the standalone financial statement. During FY 2019-20, no employee was issued options equal to or exceeding 1% of the issued share capital (AGM) of the Company at the time of grant.

In compliance with the requirements of the SBEB Regulations, a certificate from auditors confirming implementation of ESOP Scheme in accordance with the said regulations and shareholder's resolution, will be available electronically for inspection by the members during the annual general meeting of the Company.

Details of the shares issued under ESOP scheme and the disclosures in compliance with SBEB Regulations, are uploaded on the Company's website at https://www. cipla.com/investors/annual-reports .

Human Resources

Information required under section 197(12) of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in Annexure IV to this report.

Information required under section 197(12) of the Act read with rule 5(2) and rule 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this report. In terms of the provisions of section 136 of the Act, the Annual Report is being sent to members excluding the aforementioned information. The information will be available on the website of the Company at https://www.cipla.com/investors/annual- reports .

Particulars of loans, guarantees and investments

Particulars of loans, guarantees and investments under section 186 of the Act have been provided in Note No. 44 to the standalone financial statements.

Extract of annual return

Pursuant to the provisions of Section 92(3) and Section 134(3)(a) of the Act, extract of the annual return as on

31st March, 2020 in Form MGT-9 is annexed as Annexure V to this report and has also been placed on the website of the Company at https://www.cipla.com/investors/ annual-reports.

Vigil mechanism

Cipla is committed to foster an environment of honest and open communication and discussion, consistent with our values. The Company has formulated a Whistle-Blower Policy, which lays down the process to convey genuine concerns to the management and seek resolution towards the same without fear of retaliation. This policy covers reporting of any violation, wrongdoing or non-compliance, including without limitation, those relating to the Code of Conduct, policies and standard procedures of Cipla, and any incident involving leak or suspected leak of unpublished price sensitive information (UPSI) or unethical use of UPSI, in accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015.

Directors, employees and external stakeholders can report their genuine concerns either in writing or by email to the Chairperson of the Ethics Committee or to the Chief Internal Auditor at ethics@cipla.com or to the Chairperson of the Audit Committee at audit.chairman@ cipla.com . An Ethics Committee consisting of the Global Chief People Officer (GCPO) as Chairperson, the Global Chief Financial Officer (GCFO), the Global General Counsel (GC) and the Global Chief Internal Auditor investigate whistle-blower complaints. A report on functioning of the mechanism including the complaints received and actions taken is presented to the Audit Committee on a quarterly basis. The Whistle-Blower Policy is available on the Company's website at https:// www.cipla.com/sites/default/files/2020-02/Whistle%20 Blower%20Policy%20V3-%20Final.pdf .

Detailed updates on the functioning of the WhistleBlower Policy and compliance with the Code of Conduct have also been provided in the Report on Corporate Governance, on page no. 207.

Failure to implement any corporate action

During the year under review, the Company issued shares under its ESOP scheme, paid the final dividend for FY 2018-19 and Interim and Special Dividend for FY 2019-20. There were no instances where the Company failed to implement any corporate action mentioned herewith, within the specified time limit.

Prevention of Sexual Harassment of Women at Workplace

The Company has instituted a policy on Prevention of Sexual Harassment at Workplace, which is available on the Company website at https://www.cipla.com/ sites/default/files/1558508425_POSH-%20Cipla.pdf . All employees, consultants, trainees, volunteers, third parties and/or visitors at all business units or functions of the Company, its subsidiaries and/or its affiliated or group companies are covered by the said policy. Adequate workshops and awareness programmes against sexual harassment are conducted across the organisation.

Your Company has constituted an Internal Complaints Committee in compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and is accordingly fully compliant.

Details of complaints received/disposed during FY 2019-20 are provided in the Report on Corporate Governance on page no. 211.

Related party transactions

A detailed note on the procedure adopted by the Company in dealing with contracts and arrangements with related parties has been provided in the Report on Corporate Governance.

All contracts, arrangements and transactions entered into by the Company with related parties during FY 2019-20 were in the ordinary course of business and on an arm's length basis. During the year, the Company did not enter into any transaction, contract or arrangement with related parties that could be considered material in accordance with the Company's policy on dealing with related party transactions. Accordingly, the disclosure of related party transactions in Form AOC-2 is not applicable. However, detailed disclosure on related party transactions as per IND AS- 24 containing the name of the related party and details of the transactions entered with such related party have been provided under Note No. 41 of the standalone financial statements on page no. 295.

The policy on dealing with related party transactions is available on the Company's website https://www.cipla.com/ sites/default/files/2020-06/Policy%20on%20dealing%20 with%20Related%20Party%20Transactions.pdf.

Material changes and commitments affecting financial position between end of financial year and date of report

No material changes and commitments have occurred after the close of the year till the date of this report which may affect the financial position of the Company.

Significant and material orders passed by regulators or courts or tribunals

No significant or material orders were passed by the regulators or courts or tribunals which could impact the going concern status of the Company and its future operations.

Internal financial controls and their adequacy

Cipla has laid down an adequate system of internal controls, policies and procedures for ensuring orderly and efficient conduct of the business, including adherence to the Company's policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial disclosures.

The current system of internal financial controls is aligned with the statutory requirements and is in line with the globally accepted risk-based framework issued by the Committee of Sponsoring Organisations (COSO) of the Treadway Commission. The internal financial controls are adequate and operating effectively.

Effectiveness of internal financial controls is ensured through management reviews, controlled selfassessment and independent testing by the Internal Audit Team.

The Chairman on behalf of Audit Committee has confirmed the adequacy of internal financial controls in the Audit Committee Report which forms part of Report of Corporate Governance on page no. 196.

Risk management

The Board of Directors of the Company has formed an Investment and Risk Management Committee (IRMC) which oversees the Enterprise Risk Management (ERM) process. An update on ERM activities is presented and deliberated upon in the IRMC meetings on quarterly basis and atleast once in a year at the Board level. The Audit Committee has additional oversight in the area of financial risks and controls. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. In terms of the provisions of Section 134 of the Act, a detailed note on Risk Management has been provided on page no. 48 of this report.

Deposits

During FY 2019-20, the Company did not accept any deposit within the meaning of sections 73 and 74 of the Act read together with the Companies (Acceptance of Deposits) Rules, 2014 and accordingly no amount on account of principal or interest on public deposits was outstanding as on 31st March, 2020.

Board evaluation

The evaluation of all the directors including the Chairman, the Executive Vice-Chairperson and the Managing Director and Global Chief Executive Officer, Board committees and the Board as a whole was carried out based on the criteria and framework approved by the Nomination and Remuneration Committee. A detailed disclosure on the parameters and the process of Board evaluation as well as the outcome has been provided in the Report on Corporate Governance on page no. 190.

Subsidiaries, associates and joint ventures

At the beginning of the year, the Company had 49 subsidiaries and 1 associate, as against 51 subsidiaries and 4 associates as on 31st March, 2020. During the year, the following companies were incorporated, acquired, liquidated or divested:

o Incorporation of Cipla Pharmaceuticals Limited in India for setting up facilities for DPI dosage and for further expansion of MDI and FFS Respule Dosage, Cipla (Colombia) SAS in Colombia and Cipla (China) Pharmaceutical Co. Limited in China for strengthening its business portfolio in foreign markets;

o Incorporation of Cipla (Jiangsu) Pharmaceutical Co, Limited as Joint venture between Cipla (EU) Limited and Jiangsu Acebright Pharmaceutical Co. Limited for exploring business opportunities and manufacture of pharmaceutical products in China;

o Acquisition of the remaining 40% stake in Cipla Pharma Lanka Private Limited (CPL) by Cipla (EU) Limited, to further strengthen its presence in Sri Lanka. Upon acquisition CPL has become a wholly owned subsidiary of Cipla (EU) Limited;

o Acquisition of a 30% stake in Brandmed (Pty) Limited by Cipla Medpro South Africa (Pty) Limited to enhance its diversified portfolio in the noncommunicable diseases area;

o Acquisition of a 26% stake in AMPSolar Power Systems Private Limited to enhance the proportion of renewable (solar) based power consumption, and to comply with regulatory requirement for captive power consumption under electricity laws; and

o Liquidation of Tasfiye Halinde Cipla ilag Ticaret Anonim irketi, Turkey.

Details of these subsidiaries and associates are set out on page no. 361 of the Annual Report. Pursuant to section 129(3) of the Act read with rule 5 of the Companies (Accounts) Rules, 2014, a statement containing salient features of the financial statement of the subsidiary and associate companies in Form AOC-1 is given on page no. 420 of the Annual Report. The statement also provides details of the performance and the financial position of each of the subsidiaries and associates. The consolidated financial statements presented in this annual report include financial results of the subsidiary and associate companies.

Copies of the financial statements of the subsidiary companies are available in the Investors section on the Company's website www.cipla.com .

Directors and Key Managerial Personnel

Mr Peter Lankau, Independent Director, resigned from the Board of the Company effective 1st July, 2019 due to his other professional engagement in the same industry in the USA resulting in conflict of interest. He confirmed that there were no other material reasons for his resignation other than the one stated above.

Pursuant to the provisions of sections 149 and 152 of the Act, the recommendation of the Nomination and Remuneration Committee and on the basis of the performance evaluation report, the Board after considering the integrity, expertise and experience of Ms Naina Lal Kidwai, recommends her re-appointment as Independent Director of the Company for a second term of five consecutive years w.e.f. the expiry of her present term i.e. 6th November, 2020.

The Board, on the basis of recommendation of the Nomination and Remuneration Committee, recommends the re-appointment of Ms Samina Hamied as a Whole-Time Director designated as Executive Vice-Chairperson of the Company for a period of five years, w.e.f. 10th July, 2020.

Mr S Radhakrishnan, Non-Executive Director, retires by rotation and, being eligible, has offered himself for re-appointment. Based on the recommendation of the Nomination and Remuneration Committee, the Board recommends the re-appointment of Mr S Radhakrishnan as director, liable to retire by rotation.

The Board recommends the aforementioned appointments for approval of the members at the ensuing AGM. Brief resume, expertise in specific functional areas, names of listed companies in which the above-named directors hold directorships, committee memberships/ chairmanships, disclosure of relationships between directors inter-se, shareholding in Cipla etc., are furnished in notice of the ensuing AGM.

Criteria for determining qualification, positive attributes and independence of a director is given under the Nomination, Remuneration and Board Diversity Policy, disclosed as Exhibit A to the Report on Corporate Governance.

As on 31st March, 2020, the Company has the following Key Managerial Personnel (KMPs) as per section 2(51) of the Act:

Sr. No Name of the KMP Designation
1 Ms Samina Hamied Executive ViceChairperson Managing Director
2 Mr Umang Vohra and Global Chief Executive Officer
3 Mr Kedar Upadhye Global Chief Financial Officer
Company Secretary
4 Mr Rajendra Chopra & Compliance officer

Except for Mr Peter Lankau, Dr Peter Mugyenyi and Mr S Radhakrishnan, none of the directors including the Managing Director and Global Chief Executive Officer and the Whole-Time Director, received any remuneration or commission from any of the Company's subsidiaries during the previous year.

Declaration by independent directors

All independent directors have submitted requisite declarations confirming that they continue to meet the criteria of independence as prescribed under section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations, and are independent. The independent directors have also confirmed compliance with the Code of Conduct laid down under Schedule IV of the Act. Details on the same have also been provided in the

Report on Corporate Governance, which forms part of this report.

Committees of the Board, number of meetings of the Board and Board committees

The Board currently has six committees, namely, the Audit Committee, the Nomination and Remuneration Committee, the Corporate Social Responsibility Committee, the Stakeholders Relationship Committee, the Investment and Risk Management Committee and the Operations and Administrative Committee. All the recommendations made by the Committees of Board including the Audit Committee were accepted by the Board.

The Board met six times during the year under review. The maximum gap between two Board meetings did not exceed 120 days. A detailed update on the Board, its committees, its composition, detailed charter including terms of reference, number of Board and Committee meetings held and attendance of the directors at each meeting is provided in the Report on Corporate Governance, which forms part of this report.

Secretarial Standards

The Company has complied with the applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to 'Meetings of the Board of Directors' and 'General Meetings', respectively.

Auditor and Auditor's Report

M/s Walker Chandiok & Co LLP, Chartered Accountants, (Firm Registration No 001076N/ N500013) was appointed as the Statutory Auditor of the Company at the AGM held on 28th September, 2016 to hold the office till the conclusion of the 85th AGM of 2021. The Statutory Auditor has confirmed that they continue to remain eligible to act as the Statutory Auditor of the Company.

There are no instances of any fraud reported by the Auditors to the Audit Committee or to the Board pursuant to section 143(12) of the Act. The Auditor's Report for FY 2019-20 does not contain any qualification, reservation or adverse remark.

Secretarial Auditor and its Audit Report

The Secretarial Audit Report for the financial year ended 31st March, 2020 is annexed as Annexure VI to this report. The Report does not contain any qualification, reservation, disclaimer or adverse remark.

The Board, on the recommendation of the

Audit Committee, has reappointed M/s BNP & Associates, Company Secretaries, Mumbai to conduct the secretarial audit of the Company for FY 2020-21. They have their eligibility for the re-appointment.

Cost Auditor and Cost Audit Report

The Board, on the recommendation of the Audit Committee, had appointed Mr D H Zaveri, practising Cost Accountant (Fellow Membership No. 8971) as cost auditor to conduct the audit of Company's cost records for the financial year ended 31st March, 2020. The Cost Auditors have certified that their appointment is within the limits of Section 141(3)(g) read with Section 148 of the Act. The Cost Auditors will submit their report for FY 2019-20 on or before the due date.

The Cost Records of the Company are maintained in accordance with the provisions of section 148(1) of the Act and the Cost Audit Report, for the year ended 31st March, 2019, was filed with the Central Government within the prescribed time.

In accordance with the provisions of section 148 of the Act read with the Companies (Audit and Auditors) Rules, 2014, since the remuneration payable to the Cost Auditors for FY 2020-21 is required to be ratified by the members, the Board recommends the same for approval of the members at the ensuing AGM. The proposal forms part of the notice of the AGM.

Key initiatives with respect to stakeholder relationship, customer relationship, environment, sustainability, health and safety

The key initiatives taken by the Company with respect to stakeholder relationship, customer relationship, environment, sustainability, health and safety are provided separately under various Capitals in the Integrated Report section of this report.

Acknowledgements

We wish to place on record our appreciation to the governments of various countries where the Company has its operations. We thank Ministry of Chemicals & Fertilizers, India, Central Government, State governments and other regulatory bodies/ authorities, banks, business partners, shareholders, medical practitioners and other stakeholders for the assistance, co-operation and encouragement extended to the Company. We would also like to place on record our deep sense of appreciation to Cipla employees for their contribution and services.

On behalf of the Board
Date: 15th May, 2020 Y K Hamied
Place: London Chairman

   

Cipla Ltd Company Background

Y K HamiedUmang Vohra
Incorporation Year1935
Registered OfficeCipla House Peninsula Buss Par,Ganpatrao Kadam Mg Lower Parel
Mumbai,Maharashtra-400013
Telephone91-22-24826000,Managing Director
Fax91-22-24826120
Company SecretaryRajendra Chopra
AuditorWalker Chandiok & Co LLP
Face Value2
Market Lot1
ListingBSE,Luxembourg,MSEI ,NSE,
RegistrarKFin Techologies Pvt Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Cipla Ltd Company Management

Director NameDirector DesignationYear
Y K Hamied Chairman 2020
M K Hamied Vice Chairman 2020
S Radhakrishnan Director 2020
Ashok Sinha Independent Director 2020
Peter Mugyenyi Independent Director 2020
Adil Zainulbhai Independent Director 2020
Punita Lal Independent Director 2020
Samina Hamied Executive Vice Chairperson 2020
Naina Lal Kidwai Independent Director 2020
Umang Vohra Managing Director & Global CEO 2020
Rajendra Chopra Company Secretary 2020

Cipla Ltd Listing Information

Listing Information
NIFTY
BSE_500
BSE_HC
BSE_100
BSE_200
BSEDOLLEX
CNX500
CNXPHARMA
CNX100
CNX200
BSEGREENEX
BSECARBONE
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEMANUFAC
SENSEX50
ESG100
LMI250
BSEDSI
BSELVI
BSEMOI
NFT50EQWT
NFT100LV30
BSE100LTMC

Cipla Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Sales NA 00012220.22
Export Incentives NA 000249.96
Royalty NA 00056.02
Other Operating Revenue NA 00034.15
Scrap Sales NA 00029.55
Marketing & Other Product Lic.NA 00027.29
GST area Based Incentive NA 00022.5
Technical Know-how fees NA 00016.72
Rendering of Services NA 0002.74
Service Income NA 0000
Others-Traded NA 0000
Excise Duty NA 0000
Others No 0000
Bulk Drugs (Including Malts) MT 0000
Bulk Drugs-Traded NA 0000
Aerosols No 0000
Aerosols-Traded NA 0000
Creams MT 0000
Creams-Traded NA 0000
Injections/Sterile Solutions KL 0000
Injections-Traded NA 0000
Liquids KL 0000
Liquids-Traded NA 0000
Tablets & Capsules No 0000
Tablets & Capsules NoM0000
Tablets & Capsules-Traded NA 0000
Agro Chemical Formulations MT 0000

Contact us Contact us