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Divis Laboratories Ltd

BSE Code : 532488 | NSE Symbol : DIVISLAB | ISIN:INE361B01024| SECTOR : Pharmaceuticals |

NSE BSE
 
SMC down arrow

4,029.10

-33.95 (-0.84%) Volume 280564

07-May-2021 EOD

Prev. Close

4,063.05

Open Price

4,068.60

Bid Price (QTY)

0.00(0)

Offer Price (QTY)

4,029.10(13)

 

Today’s High/Low 4,087.65 - 4,019.30

52 wk High/Low 4,147.30 - 2,090.05

Key Stats

MARKET CAP (RS CR) 106970.56
P/E 57.56
BOOK VALUE (RS) 313.4741488
DIV (%) 800
MARKET LOT 1
EPS (TTM) 70.01
PRICE/BOOK 12.854329505081
DIV YIELD.(%) 0.4
FACE VALUE (RS) 2
DELIVERABLES (%) 12.44
4

News & Announcements

03-May-2021

Divis Laboratories Ltd spurts 1.85%, up for third straight session

22-Apr-2021

Divis Laboratories Ltd - Divis Laboratories Limited - Disclosure under SEBI Takeover Regulations

17-Apr-2021

Divis Laboratories Ltd - Format of Initial Disclosure to be made by an entity identified as a Large Corporate

15-Apr-2021

Divis Laboratories Ltd - Divis Laboratories Limited - Disclosure under SEBI Takeover Regulations

23-Jan-2021

Divis Laboratories to hold board meeting

01-Dec-2020

Divis Laboratories to commence construction of Unit III factory in Andhra Pradesh

27-Oct-2020

Divis Laboratories schedules board meeting

18-Aug-2020

Divis Laboratories schedules AGM

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
Aarey Drugs & Pharmaceuticals Ltd 524412
Aarti Drugs Ltd 524348 AARTIDRUGS
Add Life Pharma Ltd 524665
Adithya Alkaloids Pvt Ltd 524320
Alpha Drug India Ltd(merged) 500006 ALPHADRUG
Anuh Pharma Ltd 506260
Anus Laboratories Ltd 532981
Arch Pharmalabs Ltd 524729
Aster Drugs & Pharmaceuticals Ltd 40286
Auro Laboratories Ltd 530233
Auromed Ltd 532103
Bacil Pharma Ltd 524516
Beta Drugs Ltd 535022 BETA
Betalact Laboratories Ltd 531238
Biotech Synergy Ltd 40183
Cheminor Drugs Ltd (Merged) 524140 CHEMNODRUG
Chemo Pharma Laboratories Ltd 506365
Chemox Chemical Industries Ltd (Wound-up) 512042 CHEMOXCHEM
Chiplun Fine Chemicals Ltd 530417
Core Laboratories Ltd (Merged) 506963
Coromandel Pharmaceuticals Ltd 524524
Daurala Organics Ltd(merged) 524256 DAURALAORG
Denis Chem Lab Ltd 537536
Dishman Pharmaceuticals and Chemicals Ltd(Merged) 532526 DISHMAN
Dynachem Pharmaceuticals (Export) Ltd 524562 DYNAPHARMA
Elder Pharmaceuticals Ltd 532322 ELDERPHARM
Elegant Pharmaceuticals Ltd 524344
Emergy Phaarma Ltd 524812
Everest Organics Ltd 524790
Fermenta Biotech Ltd 506414
Fernhill Industries Ltd 531466
Fine Drugs And Chemicals Ltd (Merged) 524782
Gennex Laboratories Ltd 531739
Gland Pharma Ltd 543245 GLAND
Godavari Drugs Ltd 530317
Granules India Ltd 532482 GRANULES
Gujarat Lyka Organics Ltd (Merged) 506930
Gujarat Themis Biosyn Ltd 506879 GUJTHEMIS
Hallmark Drugs & Chemicals Ltd 531407
Harshita Ltd 531347
Hikal Ltd 524735 HIKAL
Hiran Orgochem Ltd 506170
Hi-Tech Drugs Ltd 524424
Ishita Drugs & Industries Ltd 524400
J K Pharmachem Ltd 500218 JKPHARMA
Janak Intermediates Ltd 524380
Jubilant Pharmova Ltd 530019 JUBLPHARMA
Kaprinas Pharmaceuticals & Chemicals Ltd 530147
Kimia Biosciences Ltd 530313
Konar Organics Ltd 526933
Krebs Biochemicals & Industries Ltd 524518 KREBSBIO
Kwality Pharmaceuticals Ltd 539997
Lactose (India) Ltd 524202
Larite Industries Ltd 512325
Lupin Ltd 500257 LUPIN
Magnum Intermediates Ltd 40177
Manav Pharma Ltd 524390
Marksans Pharma Ltd 524404 MARKSANS
Medicorp Technologies India Ltd (Merged) 532108 MEDICOTECH
Nagarjuna Drugs Ltd 530064
Nagarjuna Nature Base Ltd 40353
Nalin Chemicals Ltd 531292
Natco Laboratories Ltd (Merged) 500299 NATCOLABS
Nectar Lifescience Ltd 532649 NECLIFE
Neuland Laboratories Ltd 524558 NEULANDLAB
NGL Fine Chem Ltd 524774
Nutraplus India Ltd 524764
Orchid Pharma Ltd 524372 ORCHPHARMA
Paam Drugs & Pharmaceuticals Ltd 524462 PAAMDRUG
Pan India Drugs & Chemicals Ltd 524560
Panchsheel Organics Ltd 531726 PANCHSHEEL
Par Drugs & Chemicals Ltd 535341 PAR
Parabolic Drugs Ltd 533211 PARABDRUGS
Parmax Pharma Ltd 540359
Pharmed Chemicals Ltd 524733
Piramal Phytocare Ltd(Merged) 532979 PIRPHYTO
Plama Laboratories Ltd (Merged) 524798
Pradeep Drug Company Ltd (Merged) 524246
Ratna Drugs Ltd 524382
Regent Chemicals Ltd 506989
Richline Pharma Ltd 524460
Roopa Industries Ltd 530991
Rupal Chemical Industries Ltd (Merged) 524705
Rupangi Impex Ltd (Wound-up) 512606 RUPANGIMPX
S S Organics Ltd 524636
Samrat Pharmachem Ltd 530125
Sequent Scientific Ltd 512529 SEQUENT
Sharvani Pharmaceuticals Ltd 40159
Shasun Pharmaceuticals Ltd(Merged) 524552 SHASUNPHAR
Shilpa Medicare Ltd 530549 SHILPAMED
Shilpax Laboratories Ltd 524482
Shrishma Fine Chemicals (Karnataka) Ltd 507000
Siris Ltd 524746 SIRIS
Smruthi Organics Ltd 540686
SMS Pharmaceuticals Ltd 532815 SMSPHARMA
Southern Herbals Ltd 500395 SOUTHNHERB
Sri Chakra Remedies Ltd (Merged) 507484
Stellar Drugs Ltd 524612
Sterling Basic Organics Ltd 524644
Suven Life Sciences Ltd 530239 SUVEN
Swet-Chem Antibiotics Ltd 531186
Targof Pure Drugs Ltd 40230
Teem Laboratories Ltd 507761
Transchem Ltd 500422 TRANSCHEM
Umedix India Ltd 524822
Venkat Pharma Ltd 532093
Venmax Drugs & Pharmaceuticals Ltd 531015
Vera Laboratories Ltd (Merged) 40228
Vitara Chemicals Ltd 524646 VITARACHEM
Vivo Bio Tech Ltd 511509
Vorin Laboratories Ltd (Merged) 524508
Wanbury Ltd 524212 WANBURY
Zora Pharma Ltd(merged) 524438
Zyden Gentec Ltd 530091

Share Holding

Category No. of shares Percentage
Total Foreign 54409158 20.50
Total Institutions 44433300 16.74
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 3597764 1.36
Total Promoters 137899200 51.95
Total Public & others 25129158 9.47
Total 265468580 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Divi's Laboratories Ltd

Divi's Laboratories Ltd is an India based manufacturer of Active Pharmaceutical Ingredients (APIs) and Intermediates. The company is engaged in manufacture of leading generic compounds, Nutraceutical ingredients and custom synthesis of APIs and intermediates for global innovator companies. Divis is among the largest pharmaceutical companies in India with a portfolio of 120 products across diverse therapeutic areas. The company has four manufacturing facilities and market presence across several countries. The first facility is located at village Lingojigudem in Yadadri Bhuvanagiri District near Hyderabad (Telangana) comprises 11 multipurpose production blocks with finished product areas for APIs. The second manufacturing unit is an export oriented unit located at village Chippada, Bheemunipatnam Mandal, about 30 KM from the port city of Visakhapatnam (Andhra Pradesh) on the east coast situated on a 100-acre site. The third facility is located at village Chippda situated on a sprawling 267-acre site and is a Special Economic Zone (SEZ) Unit in Pharma Sector. The fourth facility is located at the company's Pharma SEZ at village Chippada. The company has two subsidiaries M/s. Divis Laboratories (USA) Inc., in the United States of America and M/s. Divi's Laboratories Europe AG in Switzerland for marketing its Nutra products and to provide a greater reach to customers within these regions. The company has Research Centers at Sanathnagar, Hyderabad and at the manufacturing sites. Research Centre at Sanathnagar primarily focuses on custom synthesis, contract research for MNC companies as also future generics involving processes like route design, route selection, establishing gram scale process and structural confirmation. Divi's Laboratories Ltd was established in the year 1990 as Divis Research Center (DRC) with Research & Development as their prime fundamental. During the year 1991-93, the company successfully developed several commercial processes for intermediates and bulk actives and supplies to manufacturing majors. In the year 1994, they changed their name to Divis Laboratories Ltd to reflect their growing area of operations. In the year 1995, the company started operations in their manufacturing facility (Unit I) at Choutuppal near Hyderabad. In the year 1997, the company was certified as ISO-9002 compliant by SGS-Yarsley of U.K. In the year 1999, European Directorate gave a 'Certificate of Suitability' (CoS) for Naproxen produced by the company. In the year 2001, the company received OHSAS-18001 Certification from BVQI of London for their Occupational Health and Safety Management Systems. In the year 2002, the company commenced setting up of their second manufacturing facility (Unit II) at Chippada near Visakhapatnam. In the year 2003, they opened a new research center christened 'DRC-Vizag' for fundamental research in selected niche business core segments. The company went for initial public offering (IPO) and their shares were listed on Bombay Stock Exchange and National Stock Exchange. In the year 2004, the company invested an amount of Rs 3035.21 lakh towards capital expenditure at their manufacturing facilities at Choutuppal (Unit-I) and Chippada (Unit-II) for additional machinery installed at both Unit-I and Unit-II. In the year 2006, the company received letter of approval from Ministry of Commerce, Government of India, for setting up a sector-specific special economic zone (SEZ) for pharmaceutical ingredients at Chippada, Bheemunipatnam in Visakhapatnam with investment of Rs 200 crore. The company's second manufacturing site at Chippada, was converted into Export Oriented Unit (EOU) and started operations as EOU from June 1, 2006. During the year 2006-07, the company developed an SEZ titled 'Divi's Pharma SEZ' on a 250-acre site at Chippada, Visakhapatnam. During the year 2007-08, the company set up new production as well as utility facilities in SEZ and EOU Units, and enhanced existing capacities at Unit-1. They commissioned Nutraceuticals Manufacturing facility at Divi's Pharma SEZ and commenced commercial operations effective June 1, 2008. During the year 2008-09, the company added 9 products to their product portfolio of which 4 are generic APIs and intermediates and 5 are custom synthesis APIs and intermediates. During the year 2009-10, they added 7 products to their product portfolio of which 2 are generic APIs and intermediates and 5 are custom synthesis APIs and intermediates. During the year 2010-11, the company added 21 products to their product portfolio of which 8 are generic APIs and intermediates and 13 are custom synthesis APIs and intermediates. The company set up a new facility called 'DSN SEZ Unit' at Chippada in Visakhapatnam at an estimated cost of Rs 200 crore for creating additional capacities for the new opportunities in generic as well as custom synthesis segment. The DSN SEZ Unit commenced commercial operations from June 1, 2011. During the year 2012-13, the company added 9 products to its product portfolio of which 3 are generic APIs and intermediates and 6 are custom synthesis APIs and intermediates. In 2014, the Korean Food and Drug Administration (KFDA) carried out inspection of the company's Visakhapatnam Unit-2 for the third time. During the year, fourth US FDA inspection was carried out at the company's Visakhapatnam Unit-2. Also during the year, fifth US FDA inspection was carried out for Unit-1. During the year, COFEPRIS (Mexico) inspected the company's Visakhapatnam Unit-2 for the first time. COFEPRIS (Mexico) also inspected the company's Choutuppal Unit-1 in Telangana for the first time in the year 2014. On 19 February 2016, Divi's Laboratories announced that it has had a successful inspection by the US-FDA for its Unit-2 at Chippada, Bheemunipatnam near Visakhapatnam during February 2016 with no observations. The Board of Directors of Divi's Laboratories at its meeting held on 12 August 2016 approved and ratified one-time ex-gratia of an aggregate amount of Rs 79 crore to the employees and whole-time directors of the company on the occasion of completion of 25 years of formation of the company. On 8 April 2017, Divi's Laboratories announced that the US-FDA has exempted some more products manufactured at the company's Unit-II at Visakhapatnam from import alert issued under clauses 66-40 and 99-32 of the FDA regulations. On 22 April 2017, Divi's Laboratories announced that the US-FDA has issued a warning letter for the company's Unit-II at Visakhapatnam. On 4 August 2017, Divi's Laboratories announced that the inspection of the Unit-2 Visakhapatnam was completed successfully by HPRA (Ireland) and JAZMP (Slovenia). The inspection was focused on follow up on the effectiveness of the CAPA implemented from the last JAZMP inspection and general GMP inspection of the site. On 15 November 2017, Divi's Laboratories announced that the US-FDA has lifted/removed import alert 66-40 imposed on the company's Unit-II at Visakhapatnam. On 18 November 2017, Divi's Laboratories announced that the company has received an Establishment Inspection Report (EIR) from US-FDA for Unit-II at Visakhapatnam, as closure of audit by FDA. Earlier, the company had informed the stock exchanged that its Unit-II at Visakhapatnam was inspected by US-FDA in September 2017 wherein a Form-483 was issued with 6 observations. On 16 May 2018, Divi's Laboratories announced that its Unit-I at Choutuppal, Telangana has had an inspection by the US-FDA from 14th May 2018 to 16th May, 2018. This was a general cGMP inspection by the FDA. The inspection has been concluded with no 483 observations.

Divi's Laboratories Ltd Chairman Speech

Divi's Laboratories Ltd Company History

Divi's Laboratories Ltd is an India based manufacturer of Active Pharmaceutical Ingredients (APIs) and Intermediates. The company is engaged in manufacture of leading generic compounds, Nutraceutical ingredients and custom synthesis of APIs and intermediates for global innovator companies. Divis is among the largest pharmaceutical companies in India with a portfolio of 120 products across diverse therapeutic areas. The company has four manufacturing facilities and market presence across several countries. The first facility is located at village Lingojigudem in Yadadri Bhuvanagiri District near Hyderabad (Telangana) comprises 11 multipurpose production blocks with finished product areas for APIs. The second manufacturing unit is an export oriented unit located at village Chippada, Bheemunipatnam Mandal, about 30 KM from the port city of Visakhapatnam (Andhra Pradesh) on the east coast situated on a 100-acre site. The third facility is located at village Chippda situated on a sprawling 267-acre site and is a Special Economic Zone (SEZ) Unit in Pharma Sector. The fourth facility is located at the company's Pharma SEZ at village Chippada. The company has two subsidiaries M/s. Divis Laboratories (USA) Inc., in the United States of America and M/s. Divi's Laboratories Europe AG in Switzerland for marketing its Nutra products and to provide a greater reach to customers within these regions. The company has Research Centers at Sanathnagar, Hyderabad and at the manufacturing sites. Research Centre at Sanathnagar primarily focuses on custom synthesis, contract research for MNC companies as also future generics involving processes like route design, route selection, establishing gram scale process and structural confirmation. Divi's Laboratories Ltd was established in the year 1990 as Divis Research Center (DRC) with Research & Development as their prime fundamental. During the year 1991-93, the company successfully developed several commercial processes for intermediates and bulk actives and supplies to manufacturing majors. In the year 1994, they changed their name to Divis Laboratories Ltd to reflect their growing area of operations. In the year 1995, the company started operations in their manufacturing facility (Unit I) at Choutuppal near Hyderabad. In the year 1997, the company was certified as ISO-9002 compliant by SGS-Yarsley of U.K. In the year 1999, European Directorate gave a 'Certificate of Suitability' (CoS) for Naproxen produced by the company. In the year 2001, the company received OHSAS-18001 Certification from BVQI of London for their Occupational Health and Safety Management Systems. In the year 2002, the company commenced setting up of their second manufacturing facility (Unit II) at Chippada near Visakhapatnam. In the year 2003, they opened a new research center christened 'DRC-Vizag' for fundamental research in selected niche business core segments. The company went for initial public offering (IPO) and their shares were listed on Bombay Stock Exchange and National Stock Exchange. In the year 2004, the company invested an amount of Rs 3035.21 lakh towards capital expenditure at their manufacturing facilities at Choutuppal (Unit-I) and Chippada (Unit-II) for additional machinery installed at both Unit-I and Unit-II. In the year 2006, the company received letter of approval from Ministry of Commerce, Government of India, for setting up a sector-specific special economic zone (SEZ) for pharmaceutical ingredients at Chippada, Bheemunipatnam in Visakhapatnam with investment of Rs 200 crore. The company's second manufacturing site at Chippada, was converted into Export Oriented Unit (EOU) and started operations as EOU from June 1, 2006. During the year 2006-07, the company developed an SEZ titled 'Divi's Pharma SEZ' on a 250-acre site at Chippada, Visakhapatnam. During the year 2007-08, the company set up new production as well as utility facilities in SEZ and EOU Units, and enhanced existing capacities at Unit-1. They commissioned Nutraceuticals Manufacturing facility at Divi's Pharma SEZ and commenced commercial operations effective June 1, 2008. During the year 2008-09, the company added 9 products to their product portfolio of which 4 are generic APIs and intermediates and 5 are custom synthesis APIs and intermediates. During the year 2009-10, they added 7 products to their product portfolio of which 2 are generic APIs and intermediates and 5 are custom synthesis APIs and intermediates. During the year 2010-11, the company added 21 products to their product portfolio of which 8 are generic APIs and intermediates and 13 are custom synthesis APIs and intermediates. The company set up a new facility called 'DSN SEZ Unit' at Chippada in Visakhapatnam at an estimated cost of Rs 200 crore for creating additional capacities for the new opportunities in generic as well as custom synthesis segment. The DSN SEZ Unit commenced commercial operations from June 1, 2011. During the year 2012-13, the company added 9 products to its product portfolio of which 3 are generic APIs and intermediates and 6 are custom synthesis APIs and intermediates. In 2014, the Korean Food and Drug Administration (KFDA) carried out inspection of the company's Visakhapatnam Unit-2 for the third time. During the year, fourth US FDA inspection was carried out at the company's Visakhapatnam Unit-2. Also during the year, fifth US FDA inspection was carried out for Unit-1. During the year, COFEPRIS (Mexico) inspected the company's Visakhapatnam Unit-2 for the first time. COFEPRIS (Mexico) also inspected the company's Choutuppal Unit-1 in Telangana for the first time in the year 2014. On 19 February 2016, Divi's Laboratories announced that it has had a successful inspection by the US-FDA for its Unit-2 at Chippada, Bheemunipatnam near Visakhapatnam during February 2016 with no observations. The Board of Directors of Divi's Laboratories at its meeting held on 12 August 2016 approved and ratified one-time ex-gratia of an aggregate amount of Rs 79 crore to the employees and whole-time directors of the company on the occasion of completion of 25 years of formation of the company. On 8 April 2017, Divi's Laboratories announced that the US-FDA has exempted some more products manufactured at the company's Unit-II at Visakhapatnam from import alert issued under clauses 66-40 and 99-32 of the FDA regulations. On 22 April 2017, Divi's Laboratories announced that the US-FDA has issued a warning letter for the company's Unit-II at Visakhapatnam. On 4 August 2017, Divi's Laboratories announced that the inspection of the Unit-2 Visakhapatnam was completed successfully by HPRA (Ireland) and JAZMP (Slovenia). The inspection was focused on follow up on the effectiveness of the CAPA implemented from the last JAZMP inspection and general GMP inspection of the site. On 15 November 2017, Divi's Laboratories announced that the US-FDA has lifted/removed import alert 66-40 imposed on the company's Unit-II at Visakhapatnam. On 18 November 2017, Divi's Laboratories announced that the company has received an Establishment Inspection Report (EIR) from US-FDA for Unit-II at Visakhapatnam, as closure of audit by FDA. Earlier, the company had informed the stock exchanged that its Unit-II at Visakhapatnam was inspected by US-FDA in September 2017 wherein a Form-483 was issued with 6 observations. On 16 May 2018, Divi's Laboratories announced that its Unit-I at Choutuppal, Telangana has had an inspection by the US-FDA from 14th May 2018 to 16th May, 2018. This was a general cGMP inspection by the FDA. The inspection has been concluded with no 483 observations.

Divi's Laboratories Ltd Directors Reports

Dear Shareholders,

Your Directors have pleasure in placing before you the Twenty Eighth Annual Report of the Company together with the Audited Accounts for the year ended 31 March 2018.

Financial Results

The Company's financial performance, for the year ended 31 March, 2018 is summarized below:

Rs in Lakhs
Particulars Standalone Consolidated
2017-18 2016-17 2017-18 2016-17
Revenue 383723 406578 391278 410626
Other Income 11248 7594 11344 7489
Total Revenues 394971 414172 402622 418115
Expenditure 258660 262798 265107 266023
Profit before depreciation, interest and tax (PBDIT) 136311 151374 137515 152093
Depreciation 14242 12326 14249 12333
Finance Cost 133 225 133 225
Profit before Tax (PBT) 121936 138823 123133 139534
Provision for Tax:
Current Tax 28713 28523 28983 28523
Deferred Tax 6265 4973 6449 4969
Total tax provision 34978 33496 35432 33492
Profit after Tax (PAT) 86958 105327 87701 106042
Other comprehensive Income (net of tax) 67 (140) 990 367
Total Comprehensive Income 87025 105187 88691 106409
Earnings per Share (EPS) Basic & Diluted (H) 32.76 39.68 33.04 39.95

Operations

Standalone

Total Revenues for the year decreased by 5% to H394971 lakhs.

Operating profit (PBDIT) for the year amounted to H136311 lakhs as against an operating profit of H151374 lakhs last year.

Profit before Tax (PBT) for the year amounted to H121936 lakhs as against a PBT of H138823 lakhs for the last year. before depreciation,

Tax Provision for the current year amounted to H34978 lakhs as against a tax provision of H33496 lakhs.

Profit after Tax (PAT) before Other Comprehensive Income for the year amounted to H86958 lakhs as against a PAT of H105327 lakhs last year.

• Earnings Per Share of H2/- each works out to H32.76 for the year as against H39.68 last year.

Out of the total revenue, 29% came from North America, 44% from Europe, 9% from Asia, 13% from India and 5% from rest of the World.

Consolidated

Our total revenues on consolidated basis decreased by 4% to H402622 lakhs from H418115 lakhs in the previous year.

Theoperatingprofit charges and tax(PBDIT) amounted to H137515 lakhs as against H152093 lakhs in the previous year. Profit after Tax, before Other ComprehensiveIncome, for the year accounted to H87701 lakhs as against H106042 lakhs in the previous year.

Subsidiaries

Our subsidiaries viz., M/s. Divis Laboratories (USA) Inc., in USA and

M/s. Divi's Laboratories Europe AG in Switzerland are engaged in marketing/distribution of nutraceutical products and to provide a greater reach to customers within these regions.

During the year, the subsidiaries have achieved aggregate turnover of H22593 lakhs as against H21678 lakhs in the previous year, reflecting a growth of 4% for the nutraceutical products in

North America and Europe.

Subsidiaries have been into profitable operations for the last few years and with the additional capacities created at Visakhapatnam, the planned growth of nutraceutical business and the support from the parent, the companyisconfident of continuing profitability at the subsidiaries and recovery of the investments/advances made in the foreseeable future. There has been no material change in the nature of the business of the subsidiaries.

As per section 129(3) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014, statement containing the salient features of the subsidiaries in form AOC-1 is annexed herewith as "Annexure I". Moreover, pursuant to provisions of Section 136(1) of the

Companies Act, 2013, audited subsidiary companies are placed on the website of the company at www.divislabs.com. The Consolidated Financial Statements presented by the Company include the subsidiary companies.

Policy for determining Material Subsidiaries, is available on the Company's corporate website at: http://www.divislabs.com/inside/pdf/Policy%20Subsidiary.pdf

Presently, the Company does not have any material subsidiary.

Consolidated Accounts

As stipulated in the listing regulations and Companies Act, 2013, the consolidated financial statements have been prepared by theCompany in accordance with the relevant accounting standards.

The audited consolidated financial statements together with

Auditors Report thereon form part of the Annual report. financial position of the company. Further, there is no

Regulatory Inspections

We reported in the last Board's report that the company's Unit-II at Visakhapatnam was inspected by US-FDA during Nov-Dec,2016 and that an Import Alert was issued to the company. The US-FDA also exempted several products from the Import Alert. Subsequently, the company received a warning letter from US-FDA, summarizing the deviations from current Good Manufacturing Practices (CGMP) for active pharmaceutical ingredients (APIs).

The company fileddetailed responses and given updates to theForm-483 and the warning letter within the stipulated time. The company, along with its external regulatory consultants and subject matter experts, has taken up appropriate remediation measures to address the deficiencies observed by US-FDA. During July, 2017, the US-FDA has lifted the Import Alert under Clause 99-32 imposed on the company's Unit-II at Visakhapatnam.

The company's Unit-II was again inspected by the US-FDA during September 2017. This inspection was for full cGMP and verification of all corrective actions proposed against the previous Inspection observations. All previous observations have been confirmedas completed and resolved. On completion of the current inspection, statement of Company's the Investigators of US-FDA have issued a Form-483 with 6 observations and the company filed its response to the same within the stipulated time.statementsDuring November,of the 2017, FDA has removed the import alert under clause 66-40 and also closed out the warning letter and issued Establishment Inspection Report

(EIR) for the Unit-II. results of its Unit-II was inspected by HPRA (Ireland) and JAZMP (Slovenia) during July/August, 2017 and the inspection concluded successfully with no critical observations.

The company's Unit-I at Choutuppal, Telangana State has also been inspected by the US-FDA during May 2018. This was a general cGMP inspection by the FDA and the inspection was concluded without any observations.

Material Changes and Commitments

No other material changes and commitments have occurred after the close of the year till the date of this Report, which affect the in the nature of business of the Company.

Dividend

Your Directors are pleased to recommend a dividend of H10/- per equity share of H2/- each, i.e., 500% for the 31 March, 2018, subject to approval of members at the ensuing Annual General Meeting.

The total dividend payout for the current year amounts to H32004 lakhs (inclusive of tax of H5457 lakhs) as against H31951 lakhs in the previous year. Dividend (including dividend tax) as a percentage of profits is 37% as compared to 30% in the previous year.

Transfer to Reserves

The Directors have decided to retain the entire profit of H87025 lakhs in the Retained Earnings.

Deposits

The Company has not accepted any deposits from public covered by provisions of Section 73 of the Companies Act, 2013.

Loans, Guarantees or Investments

During the year, the company has not given any loans or guarantees covered under the provisions of section 186 of the Companies Act, 2013.

The details of investments made by company are given in the notes to the financial statements.

Related Party Transactions

There are no materially significant related party transactions made by the company with Promoters, Key Managerial Personnel or other designated persons which may have potential conflict with interest of the company at large. As a matter of policy, your Company carries out transactions with related parties on an arms' length basis. Statement of these transactions is given at Note No. 39 of the notes to Accounts.

Accordingly, particulars of contracts or arrangements with related parties referred to in section 188(1) along with the for entering into such contract or arrangement in Form AOC-2 does not form a part of this report.

Internal Financial Controls

Information in respect of internal adequacy is included in the Management Discussion and Analysis, which is a part of the Annual report.

Risk Management

The Company has an enterprise-wide approach to risk management, which lays emphasis on identifying and managingyearended key operational and strategic risks. The company has been addressing various risks impacting the company and the policy and processes of the company on risk management is provided in the Management Discussion and Analysis.

The Risk Management Committee constituted by the Company constantlyevaluatesvariousrisks–business,customerconcentration, supplier concentration, regulatory compliances, confidentiality of processes, consistency of cGMP practices, environment, employee health and safety etc., monitors risk and deploy appropriate control systems aimed at mitigating such risks to the extent possible.

Management Discussion and Analysis

In terms of provisions of regulation 34(2) of SEBI (Listing

Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") report on Management Discussion & Analysis for the year under review is provided in a separate section forming part of this Annual Report.

Directors' Responsibility Statement

As required under Section 134 (5) of the Companies Act, 2013, Directors of your company hereby state and confirm that:

a) the applicable accounting standards have been followed in the preparation of the annual accounts;

b) accounting policies selected were applied consistently and the judgements and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit of the company for the period;

c) proper and sufficient care has been taken for the 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; justification d) the annual accounts have been prepared on a going concern basis.

e) internal financial controls are adequate and operating effectively; control and their f) proper systems have been laid down to ensure compliance with the provisions of all applicable laws and such systems are adequate and operating effectively.

Number of Meetings of Board of Directors

The Board meets at least four times in a year at quarterly intervals and more frequently if deemed necessary, to transact its business. During the financial year the Board has met five times, i.e. on May 2017, 27 June 2017, 22 July 2017, 31 October 2017 and 27 January 2018.

Directors and Key Managerial Personnel

Retirement:

Smt. S. Sridevi has completed her tenure of appointment as Small Shareholder Independent Director on 22 June, 2017 and she is not eligible for re-appointment. Your Board appreciates the contribution made by her during her tenure as Director of the Company.

Re- Appointment:

As per the provisions of the Companies Act, 2013 Mr. N.V. Ramana, Executive Director and Mr. Madhusudana Rao Divi, Whole-timeDirector will retire by rotation at the ensuing 28th Annual General Meeting and, being eligible, offer themselves for re-appointment. tions, positive attributes and director's

Appointment:

Mrs. Nilima Motaparti has been appointed as Whole-time Director of the company in the Annual General Meeting held on 25 September 2017 for a period of five years with effect from 27 June 2017.

Dr. Ramesh B.V. Nimmagadda and Dr. S. Ganapaty have been appointed as Independent Directors of the company in the Annual General Meeting held on 25 September 2017 for a period of five years with effect from 27 June 2017 and 22 July 2017 respectively.

Brief profile of the directors proposed for appointment/ reappointment is given in the notice convening the 28th AGM for reference of the shareholders.

Declaration By Independent Directors

The Company has obtained declaration from all independent directors of the company under section 149(7) of the Companies

Act, 2013 confirming that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and Regulation 25 of SEBI Listing Regulations.

Board Evaluation

The Board of Directors carried out an annual evaluation of its own performance, of the committees of the Board and of the individual directors pursuant to the provisions of the Companies Act, 2013 and SEBI Listing Regulations.

Performance evaluation was carried out on the basis of criteria evolved, as provided by the Guidance Note on Board Evaluation issued by Securities and Exchange Board of India, seeking inputs from the directors individually and the committees through a structured questionnaire which provides a valuable feedback for contribution to the Board, improving board effectiveness, maximising strengths and highlighting areas for further improvement etc.,

In a separate meeting of the Independent directors, performance of the non-independent directors and the Board as a whole was evaluated taking into account the views of the non-independent directors and the same was discussed in the Board meeting. Performance evaluation of Independent Directors is done by the entire Board of Directors (excluding the directors being evaluated)

Policy on Directors' Appointment and Remuneration

The Policy on appointment and remuneration of Directors, Key Managerial Personnel and Senior Management including criteria fordetermining independence as required under section 178(3) of the Companies

Act, 2013 and Regulation 19 read with Schedule II Part D of SEBI Listing Regulations has been formulated by the company:

• To identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down.

• To ensure a transparent board nomination process with the diversity of thought, experience, knowledge, perspective and gender in the Board.

• To determine remuneration based on the Company's size and financial position and trends and practices on remuneration prevailing in peer companies, in the Pharma industry besides qualifications, skills, capabilities etc.,

• To carry out evaluation of the performance of Directors, as well as Key Managerial and Senior Management Personnel.

• To provide them rewards linked directly to their effort, performance, dedication and achievement relating to the Company's operations.

• To retain, motivate and promote talent and to ensure long term sustainability of talented managerial personnel and create competitive advantage.

Policy on Nomination and Remuneration of Directors, Key / Senior Managerial Personnel may be accessed on the Company's website at: http://www.divislabs.com/inside/pdf/Nomination%20and%20 Remuneration%20policy18.pdf

Remuneration Details of Directors and KMP

Particulars required to be furnished under Rule 5(1) of the

Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended are given in "Annexure – II" and forms part of this Report.

Particulars of Employees

Particulars of employees required to be furnished under Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended are given in "Annexure – III" and forms part of this Report.

Corporate Social Responsibility

The Board of Directors has constituted Corporate Social Responsibility Committee (CSR Committee) consisting of members viz. Mr. R. Ranga Rao (Chairman), Dr. Murali K. Divi, Mr. N. V. Ramana and Mr. Madusudana Rao Divi.

Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company was adopted by the Board on the recommendation of the CSR Committee.

Report on Corporate Social Responsibility as Per Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is prepared and the same is enclosed as "Annexure – IV" to this Report.

Business Responsibility Report

Pursuant to the SEBI Listing Regulations, Business Responsibility Report (BRR) describing the initiatives taken by the Company is enclosed as part of this Report.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo

Particulars required under Section 134 (3) (m) of the Companies

Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is given in the "Annexure – V" to this report.

Corporate Governance Report

The report on Corporate Governance as per regulation 34(3) read with Schedule V of the SEBI Listing Regulations is included as a part of this Annual Report. The requisite certificate from Mr. V. Bhaskara Rao, Practicing Company Secretary confirming the compliance with the conditions of Corporate Governance is attached to the report on Corporate Governance.

Audit Committee

The details pertaining to the role, objective and composition of the Audit Committee are included in the Corporate Governance Report which is part of the Annual Report for the year.

Vigil Mechanism

The Company has established a vigil mechanism and formulated a Whistle Blower Policy to provide mechanism for directors and employees of the company to report their concerns about any unethical behavior, actual or suspected fraud or violation of the company's code of conduct or ethics policy. The Policy provides that the company investigates such incidents, when reported, in an impartial manner and takes appropriate action to ensure that requisite standards of professional and ethical conduct are always upheld. This mechanism also provides for adequate safeguards against victimization of director(s)/ employee(s) who avail the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases. The Whistle Blower

Policy may be accessed on the Company's website at: http://www. divislabs.com/inside/pdf/Whistle%20blower%20policy.pdf

Audit Reports

• Report of the Statutory Auditors for the year does not contain any qualification, reservation or adverse remark or disclaimer or reporting of any offence or fraud.

• The Secretarial Audit Report does not contain any qualification, reservation or adverse remark or disclaimer.

Statutory Auditors

At the Annual General Meeting held on 25 September 2017, M/s Price Waterhouse Chartered Accountants LLP (Firm Registration No. 012754N/ N500016) were appointed as Statutory Auditors of the Company to hold office for five consecutive years till the conclusion of the 32nd Annual General Meeting of the Company in the calendar year 2022 (subject to ratification by the shareholders at each Annual General Meeting).

In terms of first proviso to Section 139 of the 2013, the appointment of the auditors shall be placed for ratification at every Annual General Meeting. However, (Amendment) Act, 2017 omitted the first proviso to Section 139 of Companies Act, 2013 that requires ratification of auditor at every annual general meeting.

Accordingly, M/s. Price Waterhouse Chartered Accountants LLP will continue as the Statutory Auditors of the Company till conclusion of 32nd Annual General Meeting of the Company.

Secretarial Audit

Pursuant to provisions of section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company has appointed Mr. V. Bhaskara Rao, Practicing Company Secretary (PCS Registration No. 4182) as the Secretarial Auditor of the Company to conduct the Secretarial Audit for the financial year 2017-18. The Secretarial Audit report for the financial year 2017-18 is annexed herewith as "Annexure VI".

Cost Audit

Pursuant to the Section 148 of the Act and rule 3 of the Companies (cost records and audit) Rules, 2014 as amended, the company maintains cost records in its books of account. As per rule 4 of the said rules, the requirement for cost audit is not applicable to a company which is covered under rule 3, and whose revenue from exports, in foreign exchange, exceeds seventy five per cent of its total revenue or which is operating from a special economic zone. However, company has voluntarily opted for audit of cost records and appointed M/s. E.V.S & Associates, Cost Accountants as Cost Auditors.

Extract of Annual Return

An Extract of Annual Return in Form MGT-9 as per the provisions of Section 92(3) of the Companies Act, 2013 and Rule 12 of Companies (Management and Administration) Rules, 2014, is enclosed as "Annexure VII" to this report.

Other Disclosures

Information on Unclaimed Dividend and transfer to IEPF is provided in the Corporate Governance Report

• No company has become or ceased to be its Subsidiary, joint venture or associate company during the year

No significant and material orders were passed by the regulators or courts or tribunals impacting the going concern status and company's operations in future.

No cases were filedpursuant to the Sexual Harassment of

Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013 during the year under review.

• As per Regulation 43A of the SEBI Listing Regulations, the Dividend Distribution Policy is disclosed in the Corporate Governance Report and on the website of the Company.

Directors of your company hereby state and confirm that the Company has complied with all the applicable Secretarial Standards.

Acknowledgements

The Board expresses its appreciation for the continued support received from Government authorities, Banks, customers, vendors and investors. The Board also appreciates and value the commitment and contribution of its employees at all levels.

For and on behalf of the Board
Dr. Murali K. Divi
Hyderabad Chairman & Managing Director
26 May 2018 (DIN: 00005040)

   

Divi's Laboratories Ltd Company Background

Ramesh B V NimmagaddaMurali K Divi
Incorporation Year1990
Registered Office1-72-23(P)/DIVIS/303 Divi Towe,Cyber Hills Gachibowli
Hyderabad,Telangana-500032
Telephone91-40-23786300/23786352/400,Managing Director
Fax91-40-23786460
Company SecretarySatish Choudhury
AuditorPrice Waterhouse Chartered Accountants LLP
Face Value2
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarKFin Techologies Pvt Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Divi's Laboratories Ltd Company Management

Director NameDirector DesignationYear
Murali K Divi Chairman & Managing Director 2020
N V Ramana Executive Director 2020
Madhusudana Rao Divi Director (Projects) 2020
Kiran S Divi Whole Time Director & CEO 2020
G Suresh Kumar Independent Director 2020
Ranga Rao Ravipati Independent Director 2020
K V K Seshavataram Independent Director 2020
Ramesh B V Nimmagadda Chairman (Non-Executive) 2020
Nilima Motaparti Whole Time Director -Commercia 2020
S Ganapaty Independent Director 2020
Sunaina Singh Independent Director 2020
Kosaraju Veerayya Chowdary Addtnl Independent Director 2020
Satish Choudhury Company Secretary 2020

Divi's Laboratories Ltd Listing Information

Listing Information
NIFTY
BSE_500
BSE_HC
BSE_100
BSE_200
BSEDOLLEX
CNX500
CNXPHARMA
CNX100
CNX200
NFTALPHA50
BSECARBONE
NI15
BSEALLCAP
BSELARGECA
BSEMANUFAC
SENSEX50
ESG100
LMI250
BSEDSI
BSELVI
BSEMOI
BSEQUI
BSE100LTMC
NFTY200Q30

Divi's Laboratories Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Sale of Products NA 0005198.31
Export incentives NA 00086.48
Sale of Scrap NA 00016.77
Sale of Services NA 0009.01
API Intermediates MT 0000
API Intermediates Traded NA 0000
Bulk Drugs & Interm.-Others MT 0000
Traded Goods NA 0000
Excise Duty NA 0000
Other Operating Revenue NA 0000

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