Biocon Annual Report
Biocon Annual Report
Biocon Annual Report
Drivers
• Oncology
• Immune-mediated
Diseases
Biosimilar
Insulin &
MAbs
Portfolio
02
• Syngene:
Discovery Research Services
• Clinigene:
Clinical Research Services
Research
Services
03
• Oral Insulin
• Anti-CD6
• Peptide Hybrid
• Bio-better MAbs
• Immuno-conjugated
High Value MAbs
R&D Assets
04
• Latin America
• Asia
• Middle East &
North Africa
• The Commonwealth
India & of Independent States
Emerging
Markets
01 BIOCON’S
GROWTH DRIVERS
Biosimilar
Insulin +
MAbs
Portfolio
The global biosimilars market is expected to be worth $19 billion by 2014.*
$19 billion
BIOCON HAS THE REQUISITE TECHNICAL AND
OPERATIONAL EXPERTISE TO DEVELOP AND
TAKE TO MARKET AN INNOVATIVE, AFFORDABLE
INSULIN AND MAb PORTFOLIO, AS PROVEN BY
THE SUCCESS OF INSUGEN®, BASALOGTM AND
BIOMAb EGFR®
GD5H9BHGC:PFGH;9B9F5H=CB Biocon has a clearly defi ned biosimilar to enable Biocon to realize a
6=C@C;=75@DFC8I7HGGH5FHHC strategy that includes development scientifi cally signifi cant, cost effective
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and manufacturing. In India and insulin portfolio for global markets.
D5H=9BH;FCIDGACIBHH<9DF9GGIF9 SAARC, we have established our own
CB;@C65@D<5FA5HCF98I798FI; marketing and distribution network Biocon’s MAb pipeline is also
7CGHG
;9B9F=7J9FG=CBGC:6=C@C;=7G for our biosimilar products. For progressing rapidly. We have the
CF6=CG=A=@5FG5F99A9F;=B;5G emerging markets, we operate via requisite technical and operational
DCK9F:I@B9K;FCKH<8F=J9FG alliances with regional partners. In expertise in developing MAbs as seen
terms of geographical reach, Biocon in our success with BIOMAb EGFR®.
A:L:=HIM>=:<HFFHG@HMHF:KD>M Additionally, we have signifi cant
pathway for all its products. This advantages in process/formulation
comprises launching in India fi rst, then development, characterization and
moving into emerging markets and <EBGB<:E=>O>EHIF>GM+NKLM:M>H?
eventually, entering developed markets. MA>:KM);F:GN?:<MNKBG@?:<BEBMB>L
are US FDA compliant and Asia’s
For the highly demanding insulin largest. Biocon has also strategically
market, Biocon has already begun to entered into research alliances with
deliver affordable insulin therapies. Our synergistic biopharma companies and
recombinant human insulin, INSUGEN®, forged licensing deals with key
has revolutionized the Indian diabetes marketing leaders in established and
market and several emerging markets. emerging markets.
The competitively priced BASALOGTM
BGLNEBG@E:K@BG>A:L@:KG>K>=LB@GB We believe our well developed insulin
fi cant market share within its fi rst year portfolio and promising MAb programs
of launch. Superior manufacturing will drive future growth for Biocon
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<HLMHIMBFBS>==>O>EHI enabling us to strongly leverage
*Pricewaterhouse Coopers ment and regulatory expertise continue emerging biosimilar opportunities.
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For the year 2009, global outsourced R&D was worth $30 billion.*
$30 billion
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RESEARCH EXPERTISE AND THE INDIA ADVANTAGE
TO CONTRIBUTE SIGNIFICANTLY TO INDIA’S RISE
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"B7F95G=B;;9B9F=7=N5H=CB5B8 India’s ability to create a differentiating organization together offer a full range
897@=B=B;+DFC8I7H=J=HM <HLMO:EN>IKHIHLBMBHGIHP>K>=;REHP>K of high quality, cost competitive services
<5J9F9GI@H98=BD<5FA579IH=75@ costs, skilled manpower and strong to partners across the globe. Syngene’s
7CAD5B=9G:C7IG=B;CBF9GHFI7HIF=B; technical capabilities ideally positions “integrated discovery platform” has
5B8=AD@9A9BH=B;GIGH5=B987CGH BMMH;>G>VM?KHF@EH;:EIA:KF:LHNM signifi cantly enhanced the width and
7CBH5=BA9BH=B=H=5H=J9GACB; sourcing strategy. The Indian custom depth of its engagements while
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CIHGCIF7=B;F9G95F7<5B8 research industry continues to enjoy a Clinigene has established itself as
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reputation for research quality and an experienced provider of world class
;@C65@D<5FA5=GHF5BG=H=CB=B;:FCA thoroughness, speed to project clinical research services. From discovery
CIHGCIF7=B;G9@97HGHI8=9G5B8 completion and strong client to late stage clinical trials and
G9FJ=79GHC9BH9F=B;=BHCGHF5H9;=7 relationships. In terms of number of registration, both companies address
5@@=5B79GK=H<F9G95F7<CF;5B=N5H=CBG trials, India is one of the fastest growing the increasing need of pharmaceutical
HCH5?9H<9=FAC@97I@9G:FCA8=G7CJ9FM clinical research destinations with a companies to collaborate with one
HCF9;=GHF5H=CB growth rate 2.5 times that of the partner for all their research
overall market. Several industry surveys requirements. Biocon’s ability to
have rated India amongst the most incrementally invest in cutting edge
sought after geographies for research facilities, expand its service
outsourcing research activities. offering and maintain an impeccable
reputation for confi dentiality will continue
Given the extremely favorable macro to drive company growth and create
environment and our unique positioning opportunities for innovative drug
as a full service contract research partner development programs and partnerships.
with an enviable track record, Biocon’s
research services are expected to be
strong growth drivers for the future.
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*Estimate
Reuters, Frost & Sullivan zation and Clinigene, our clinical research
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Assets
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deals within the biopharmaceutical and pharmaceutical space.*
2,200 Deals
BIOCON PLANS TO TAKE TWO OF ITS HIGHLY
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COSTS INVOLVED IN TAKING THE MOLECULES TO
MARKET, AND UNLOCKING SUBSTANTIAL VALUE
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Pharmerging countries accounted for $123 billion of the total world market in 2009.*
$123 billion
BIOCON HAS BEEN AN EARLY MOVER INTO THE
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EXPANDED OUR PRESENCE IN SEVERAL COUNTRIES
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-<9;@C65@D<5FA579IH=75@ Biocon’s ‘India and emerging markets’ that we will continue to explore.
=B8IGHFM=GG<=:H=B;7CIFG9:CF strategy is supported by an affordable,
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well balanced product portfolio of Biocon’s emerging market thrust is
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,CIH< generics, biosimilars and novel biologics. already under implementation. We
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-IF?9M5B8+IGG=5RH<9 !:KERBGO>LMF>GMLBGK>L>:K<A
=>O>EHI have launched our biosimilar insulins
CF=;=B5@9A9F;=B;A5F?9HG
5F9 ment and manufacturing have given us in numerous emerging markets within
B9K@M>C=B986MGC75@@984H=9F an edge in delivering cost competitive South America, North Africa and East
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treatment options within key therapeutic Asia. The medium term strategy is to
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footprint in all emerging markets
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Our India strategy is to develop market through strategic alliances while
H<9G9D<5FA9F;=B;A5F?9HGC::9F presence on our own for all our products. furthering clinical development of our
GHFCB;;FCKH<DFCGD97HG:I9@@986M We are currently present in four main insulins for Europe and USA. In the long
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9LD5B8=B;5779GGHC therapeutic areas – Diabetology, term, Biocon aims to position itself as
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5B Cardiology, Nephrology and Oncology. a comprehensive healthcare company
=ADFCJ=B;F9;I@5HCFM9BJ=FCBA9BH In order to grow our domestic branded offering a portfolio of biosimilar
formulations business, we intend to insulins, accompanying delivery devices,
launch two new divisions this year – other biosimilar proteins and MAbs for
HFIK>A>GLBO>:K>:G=%FFNGH all markets.
therapy. We will also be focusing on
building large brands by increasing the
number of new introductions annually,
tapping the hospital segment and
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further support our brands. Additionally,
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cally important aspect of our future ulated protein supplement, NARITA+TM In the hyper-competitive taxane market,
growth. for dialysis patients suffering from our flagship product, Abraxane®,
malnutrition. Biocon Nephrology is launched in July 2008, is performing
Nephrology confident of sustaining an impressive exceedingly well. It has established
Since its launch in March 2007, this growth trajectory and aims to be a itself in the metastatic breast cancer
division has posted outstanding market leader in the immuno- setting and is being increasingly used
performance with a CAGR in excess suppressants segment. to treat other tumor types such as
of 50%. Today, Biocon’s Nephrology pancreatic cancer, non small cell lung
products have earned a strong reputation Oncology cancer and ovarian cancer.
with many attaining high rankings in a This division has also had its share of
competitive and crowded market. center stage with the ongoing success In the area of neutropenia, NUFIL safeTM
of BIOMAb EGFR®, now approved in is now among the top 10 brands in the
ERYPRO safeTM (erythropoietin) has 22 countries for various indications filgrastim segment. This brand has
risen to the top 5 rank in the highly including head and neck cancers, glioma grown over 200% in volume over the
competitive EPO market which has (adult and pediatric) and nasopharyngeal past year and received remarkable
over 30 brands. RENODAPT®, Biocon’s carcinoma. I am pleased to inform you response from clinicians for its quality,
premium immunosuppressant, myco- that this revolutionary product is available efficacy and presentation.
phenolate mofetil ranks No. 4 among to Indian patients at less than 50% of
25 brands whilst our most recently the cost of other anti-cancer therapies Cardiology
introduced immunosuppressant, in the same class and indication. The Launched in 2008, Biocon Cardiology
tacrolimus branded TACROGRAFTM scientific and marketing strategies, completed two years of field operations
has already overtaken 20 brands to coupled with an increased confidence in March 2010. With major brands like
the No. 3 position. of physicians based on their in-clinic STATIX® (anti-cholesterol) and TELMISAT®
experience with this molecule, have (anti-hypertensive) as the foundation,
The past year has also seen the launch substantially helped in accessing more this division has established formidable
of a renal nutrition segment where patients across India. equity with cardiologists in a short span.
Biocon has introduced a specially form- Our Cardiology division now ranked
03 Our Pharmaceutical Business exceeded Rs. 20,871 million in revenue
No. 22 in our represented market has pelling case for risk and cost mitigation to drug development challenges.
posted growth of 44% (ORG MAT: strategies that rely on outsourced R&D
Dec 2009) outperforming the industry services. Data already indicates that Research & Development
benchmark. 21% of global R&D spends in 2009 Our balanced portfolio of generics,
were outsourced which was less than biosimilars and novel programs is
Research Services 1% a decade ago. This trend augers proving to be a strong value different-
Syngene well for Syngene which sees itself as a iator for Biocon. Leveraging the cost
Our custom research organization, key player in this space, with the advantage we have in India, we plan
Syngene continues to demonstrate potential of building niche capabilities to take two novel programs, IN-105
proficiency in advancing compounds for global leadership. (oral insulin) and T1h (anti-CD6
through R&D processes efficiently, monoclonal antibody), through proof-
quickly and cost effectively. This Clinigene of-concept, Phase III clinical trials
has helped to expand its business Over the years, Clinigene has trans- before licensing. IN-105 is the most
and maintain a growth rate at 30% formed into a full service CRO with advanced program in the oral insulin
in FY 2010. significant scientific and operational space globally with a US IND filed in
expertise across multiple therapeutic December 2009. For T1h, we are now
Syngene already has the distinction areas. India continues to be an at the point of entering a pivotal Phase
of having set up India’s largest R&D attractive destination for clinical trials III trial for psoriasis. Biocon’s strategy
partnership with Bristol Myers-Squibb especially with mid to large sized global for both programs is to develop them
and is working with its other pharma- pharmaceutical companies who are to “proof of safety and efficacy” in
ceutical clients to expand its relationship grappling with high R&D costs. New India and only then pursue more
to provide high quality integrated areas of focus for Clinigene include expensive global development through
discovery and pre-clinical development biomarker development, data manage- licensed partnering. I believe this
services at competitive prices. ment and pharmacovigilance. These approach will unlock maximum value
new capabilities will see Clinigene for Biocon and our shareholders, whilst
The changing dynamics of the global differentiate itself from other CROs in reducing the development risk for the
pharmaceutical industry makes a com- India by offering cutting edge solutions licensee.
Strategic Research success fees from them as per the which I am pleased to report has been
Partnership agreement. successfully commissioned.
Biocon has made excellent progress in
becoming the partner of choice to Acquisitions Beyond Borders
potential collaborators because of our CIMAB AxiCorp
well recognized research and biotech An important development this fiscal 2009 was a very successful year for our
capabilities. was the conclusion of the agreement German subsidiary AxiCorp. In January
for acquisition of 49% equity stake 2010, AxiCorp was ranked No. 30 in
Our multiple collaborations with Mylan, of our Cuban partner CIMAB S.A. Germany by IMS and recognized as one
Optimer, Amylin and Vaccinex are in Biocon Biopharmaceuticals Pvt. of the three fastest growing German
making steady progress. Our investment Ltd. (BBPL), a seven year old bio- pharmaceutical companies. With over
in a biotech start-up, IATRICa continues manufacturing joint venture. This 250 employees, the Company achieved
to look promising as we develop acquisition will enable us to efficiently a total revenue of Á 133 million in
immuno-therapeutics for oncology that utilize capacities to manufacture 2009. Growth was primarily driven by
actually evoke T cell response, a Biocon’s biosimilar products. BBPL, efficient sourcing of products for its
therapeutic vaccine approach to cancer. will however, continue to support business, a restructuring of its sales
the manufacturing needs of BIOMAb force and winning AOK, BKK & DAK
In addition to Biocon’s research alliances, EGFR® and other products that are tenders for several generics. AxiCorp is
Syngene too has entered into synergistic partnered with CIMAB. now the most successful Indian owned
research partnerships. Through its German pharmaceutical company.
collaboration with Endo Pharmaceuticals, IDL
Syngene is working towards jointly Another key acquisition made this NeoBiocon
discovering and developing novel bio- fiscal was IDL Specialty Chemicals Ltd. NeoBiocon, our Dubai based JV with
logical drug molecules to fight cancer. near Hyderabad. This facility is a bulk Abu Dhabi pharmaceutical manufacturer
Endo will retain all rights to the molecules pharmaceutical plant that will cater to Neopharma, has successfully registered
developed, while Syngene will receive Biocon’s expansion needs. This is our our breast cancer treatment drug
research fees, milestone payments and first remote manufacturing operation Abraxane® in the formulary of all major
07 Our Research Services business crossed Rs. 2,807 million
cancer institutes in the UAE. doctors and nurses for medical relief people that enable us to serve patients
and care. More than 5,000 patients and our shareholders better and better
Corporate Social were treated by our doctors and each year. At Biocon, it is not about
Responsibility medicines in excess of Rs.10 lakhs were being the biggest – it is about being
Through the past year, Biocon has distributed. We are currently rebuilding the best. On behalf of the Board of
continued to demonstrate its serious 1,000 homes in three affected villages in Directors, I once again thank all my
commitment to corporate social respon- the severely damaged Bagalkot district colleagues at Biocon and dedicate this
sibility through improved services at our of Karnataka. Annual Report to them.
primary healthcare clinics, supported by
our ever expanding micro health insur- Looking Ahead
ance scheme, Arogya Raksha Yojana The ability of a company to move
(ARY) for underserved villages around forward with confidence is primarily
Karnataka. determined by its judicious investments Kiran Mazumdar-Shaw
in the past and a current ability to May 2010
An important initiative undertaken in navigate through change and challenge.
2009 was developing a mobile phone I believe Biocon has always developed
based solution for efficient and speedier and invested in a uniquely differentiated
enrollment into ARY. To date, this scheme business model that continues to drive
has facilitated more than 1,000 surgeries growth, even in difficult times. Biocon’s
across Karnataka and I am happy to performance, at every level in the year
announce that 2009 saw almost 100% gone by, has been commendable.
renewal in areas where our teams have Thanks to the unflinching support of
directly worked with local communities. Team Biocon, we now feature in the
When devastating floods swept North prestigious Forbes ‘Best Under A
Karnataka in Sept/Oct 2009, Biocon Billion’ list of companies for “seizing
Foundation moved swiftly into action opportunities arising from economic
by immediately dispatching teams of uncertainty”. Without a doubt, it is our
01 Dr. Neville Bain and holder of many patents • Recognized civilian awards for her pioneering efforts in
Chairman, Institute of Directors, UK • Board through numerous awards for contributions Biotechnology, 2005
Member, Scottish & Newcastle Plc., Provexis as educator, inventor and entrepreneur,
Ltd. • Former Group CEO, Coats Viyella Plc. including Technical Academy Award in 06 Mr. John Shaw
• Former Deputy Group Chief Executive and Digital Cinematography by Academy of Vice Chairman, Biocon • Served in senior
Finance Director, Cadbury Schweppes Plc. Motion Pictures, Arts and Sciences corporate positions at various locations
• Author of several management books on around the world • Former Chairman,
corporate governance, strategy and people 04 Mr. Suresh Talwar Madura Coats Ltd.
management Partner, Talwar Thakore & Associates
• Director, Cadbury India Ltd., Blue Star Ltd., 07 Prof. Ravi Mazumdar
02 Prof. Charles L. Cooney L&T Ltd. and other leading companies University Research Chair Professor,
Professor, Chemical & Biochemical • Area of professional specialization includes Department of Electrical and Computer
Engineering, MIT, USA • Director, Genzyme corporate law and related fields • Legal Engineering, University of Waterloo, Canada
Inc. • Recipient of prestigious awards, including counsel to numerous Indian companies, • Fellow of the Institute of Electrical and
Gold Medal of the Institute of Biotechnology multinational corporations and Indian/ Electronics Engineers (IEEE) and Fellow of
Studies and Distinguished Service Award foreign banks the Royal Statistical Society
from the American Chemical Society
05 Ms. Kiran Mazumdar-Shaw 08 Prof. Catherine Rosenberg
03 Dr. Bala S. Manian Chairman & Managing Director, Biocon Alternate Director, Biocon • University
Chairman and Founder, Reametrix Inc. • First generation entrepreneur with more Research Chair Professor and Chairman,
• Co-founder, Quantum Dot Corporation and than 32 years experience in biotechnology Department of Electrical and Computer
Surromed Corporation, USA • Expert in the and industrial enzymes • Master Brewer, Engineering, University of Waterloo, Canada
design of electro-optical systems • Authored Ballarat University, Australia • Awarded the
several peer-reviewed scientific publications Padmabhushan, one of India’s highest
01 Prof. Alan D. Cherrington 03 Dr. Harold E. Lebovitz
PhD, Professor & Chairman of Molecular MD, FACE, Professor of Medicine,
Physiology & Biophysics and Professor of Endocrinology and Diabetes Division,
Medicine & Diabetes Research Vanderbilt State University of New York, Health
University • Past President of the American Science Center, Brooklyn
Diabetes Association
04 Dr. Kapil Dhingra
02 Dr. G. Alexander Fleming Managing Member, KAPital Consulting
MD, President and CEO of Kinexum LLC LLC • Former Head, Roche Oncology
• Member of numerous Scientific Advisory Leadership Team
Boards and Expert Committee
24 Milestones
26 Marketing
38 Human Resources
44 Product Glossary
Milestones
Marketing
Biocon continues to grow its product
presence in India while broadening its
footprint to emerging and developed
F:KD>MLMAKHN@AO:EN><K>:MBG@LMK:M>
gies like acquisitions, partnerships and
BGEB<>GLBG@
Diabetology
safe™, TACROGRAF™ and RENODAPT® able innovation, even after three years Biocon is poised to emerge as a key
has made Biocon Nephrology a preferred of being in the market, all our products global player in diabetes therapy. In
therapeutic partner in the management are priced 10 -20% lower than innovator this fiscal, Biocon Diabetology grew
of end stage renal disease. ERYPRO brands. 24% supported by strong sales from
safe™ has retained its position as the brand INSUGEN®. As per ORG estimates,
fastest growing erythropoietin brand in Narita™ + The launch of Narita™ + we are ranked 15th in the covered mar-
a competitive market of approximately in December 2009 was a milestone in ket and 18th in the overall diabetic
29 brands. Its current market share is 8% the renal nutrition space. CKD patients market. While our insulins (INSUGEN®
which we anticipate will grow to 11% undergoing dialysis usually suffer from and BASALOGTM) continue to garner
in the coming fiscal. In an EPO market malnutrition due to drop in appetite larger market share in India and several
that is growing at 16%, ERYPRO™ has and frequent blood loss leading to sig- emerging markets, we are implement-
performed remarkably well posting 50% nificant protein deficiency and a poor ing programs to improve diabetes care
growth this year. Our immunosuppres- quality of life. Narita™ + is best suited across India through an awareness
sant range has also increased its pene- to address the unmet nutritional needs campaign on monitoring and control of
Marketing
Research & Development
Discovery Research Services: Syngene
Clinical Research Services: Clinigene
Human Resources
Quality & Regulatory
Environment, Health & Safety
Corporate Social Responsibility
blood glucose as well as early detection Winning with Diabetes (WWD) able increase in Brandfolio realization that
of the disease. To further enhance patient To further support BASALOGTM, Biocon grew by 27% over 2008-09.
comfort, compliance and convenience, Diabetology’s WWD initiative is aimed
we plan to introduce pen-based insulin at helping patients lead a better life INSUGEN® Our flagship brand
delivery devices in the latter half of with diabetes. By partnering with the INSUGEN® has maintained its third rank
2010. In the near term, Biocon expects medical fraternity, WWD focuses on in the vial market (ORG MAT February
to have a complete and comprehensive educating diabetics in self help methods 2010). As per the ORG December 2009
portfolio of insulin and insulin analogs including monitoring of blood glucose, hospital audit, INSUGEN® has increased
that can enter global markets post patent exercise and dietary routines as well as its market share in hospitals too. De-
expiries. By 2015, we aspire to be among providing helpful tips to control diabe- spite a revision in prices of our insulins,
the top 10 companies worldwide in the tes. To bring home the importance of INSUGEN® continues to be priced al-
field of diabetes management. self monitoring of blood glucose on a most 40% lower than the competition.
regular basis, the WWD initiative facili- This has been made possible by Biocon’s
BASALOGTM Launch This fiscal, Biocon tated a tie-up with Bayer Healthcare, unrelenting efforts to provide affordable
launched a new and highly affordable (a leading German company in the therapy.
anti-diabetes drug BASALOGTM into the blood glucose monitoring space) to
Indian market. Targeting patients with offer the hi-tech, blood glucose moni- Other Oral Anti-Diabetic
type I and II diabetes, BASALOGTM can toring device – Breeze2, free of cost Formulations Amongst our oral anti-
be used just once a day and is effective to BASALOGTM users. diabetic formulations, both BLISTO-MFTM
for 24 hours thereby diminishing the and METADOZE-IPR® are continuing to
discomfort of multiple insulin shots and Other value added services under the gain wider acceptance across special-
decreasing the possibility of developing WWD initiative include: ties. In the anti-obesity segment,
hypoglycemia (low blood sugar). In the • Patient support toll free helpline OLISATTM has consistently registered
overall analysis, BASALOGTM offers better “Biocon Winning with Diabetes” positive growth.
glucose control with the compliance of (1800-425-7667)
a single shot at a price almost 40% • Patient education programs Cardiology
lower than comparable injectables. Fol- • Nurse education programs 2009 -10 was a good year for Biocon
lowing the launch, Biocon Diabetology • Neuropathy detection service Cardiology. We are now ranked 22nd
initiated aggressive Continuing Medical • Body mass index camps in our represented market with 44%
Education (CME) programs conducted • INSUGEN® initiation kit growth that is outperforming all indus-
across the country on recent advances • Juvenile diabetes service try benchmarks (ORG MAT December
in diabetes management and the role On a larger platform, Biocon Diabetolo- 2009). Focus on quality and affordable
of basal insulin in effective HbA1c con- gy is an active participant in conventions innovation has been one of the main
trol. The keynote address for all programs such as RSSDI (Research Society for the reasons behind the significant market
was delivered by Dr. Harold Lebovitz, Study of Diabetes in India), a presti- share we have cornered for CLOTIDE™,
an internationally recognized authority gious annual convention of important in the very competitive market of
in the field of diabetes. The CMEs pro- healthcare professionals and researchers eptifibatide. Today CLOTIDE™ is the
vided momentum to the BASALOGTM in Asia. In addition, awareness generation leading eptifibatide brand in India.
launch and were an integral part of our activities on occasions like World Diabe- Our other life saving injectable MYOKI-
go-to-market strategy. tes Day (14th November) continue to NASE™ (met-free streptokinase) has also
enhance Biocon’s equity in the field of occupied the No. 2 position in its cate-
diabetes. This is reflected in a consider- gory with the fastest growth (ORG
On 7th February 2010, Biocon organized NUFIL safeTM Biocon’s NUFIL safeTM for R&D Expenditure
an international symposium “Abraxane® the treatment of cancer chemotherapy Biocon’s R&D programs have always
:G=G:;]G:GHI:KMB<E>:E;NFBG induced neutropenia is now among the been fi nanced entirely from internal ac
bound) Technology – Changing Para top 10 brands in the Indian fi lgrastim cruals. Total R&D spend, as a propor
digms in Cancer Chemotherapy”, in market space. Over the previous fi scal, tion of Biocon’s stand alone revenue,
Bangalore. The purpose of this event this brand achieved more than 200% GHPLM:G=L:M0ABLBLK>W><MBO>H?
was to explore the potential of novel
taxane formulations such as Abraxane®
for optimal patient outcomes.
Anti-CD6 Oncology/Inflammatory/
Autoimmune
Anti-CD20 Oncology
Anti-EGFR Oncology
ing processes for several new products the efficacy and safety of IN-105 in blind, randomized, multiple dose,
which we intend to commercialize soon. patients with type II diabetes mellitus multiple schedule, multi-centric, parallel
Biocon’s new product range includes who have inadequate glucose control study in patients with active moderate
synthetic prostaglandins, injectable with metformin. It involves a titration to severe psoriasis, with independent
APIs and peptides, several of which are phase to find out optimum dose and a blinded disease activity assessment and
niche molecules where the technology maintenance phase to understand the quality of life metrics assessment. The
involved is complex and challenging. effect of oral insulin on lowering of target enrollment of patients was com-
With the commercialization of synthetic HbA1c. The doses being tried out are pleted and the final study report sub-
prostaglandins used in the treatment of 10 mg, 15 mg, 20 mg and 30 mg along mitted to DCGI in November 2009. The
glaucoma, Biocon will make its foray with their matching placebo. pivotal Phase III efficacy clinical trial in
into the field of opthalmics. All our APIs psoriasis is expected to start in 2010.
are being developed for global markets, Biocon has also filed a US IND for
covering all regions. We believe our conducting a Phase I study in patients Global Alliances
ability to reduce the manufacturing with type I diabetes mellitus to test the Given that it takes around 10 years
costs of our products by way of improved pharmacokinetics and pharmaco- and approximately $1.2 billion to bring
processes, will enable us to stay ahead dynamics of IN-105. Trials are expected a drug to market, profiting together or
in highly competitive markets. to begin shortly. collaborative co-development models
are the only way forward. Alliances
Internal Novel Programs T1h T1h is an anti-CD6 monoclonal enable partners to leverage each other’s
By maximizing development in India antibody entering Phase III clinical trials capabilities, share risks, R&D costs and
to take advantage of lower R&D costs for psoriasis, an autoimmune disease scale up quickly. Biocon has entered
and faster clinical development, Biocon that 3% of the global population suffers into four strategic alliances to realize its
has successfully taken two of its novel from. A randomized, open label, four biosimilar portfolio, develop a novel
programs to a Phase III proof-of-concept arms parallel Phase II clinical study to peptide for the treatment of diabetes,
clinical trial in India. Both these programs evaluate the safety and efficacy of and discover/develop novel therapeutic
have potential blockbuster profiles. The anti-T1h in combination with metho- antibodies.
strategy is to develop novel programs up trexate in MTX-inadequate responders/
to proof-of-concept stage leveraging non-responders with active rheumatoid Biocon & Amylin
the India cost base and creating a high arthritis has been initiated at multiple Delivering a Novel Peptide Hybrid
value licensing asset. This approach will investigation sites. The target of enrolling for Diabetes Biocon and Amylin
unlock maximum value for Biocon and patients in multiple weekly dose arms Pharmaceuticals Inc. (Nasdaq: AMLN)
its shareholders whilst reducing the de- was completed and the clinical study have entered into an exclusive agreement
velopment risk for the licensee. report is being finalized. A second to jointly develop, commercialize and
Phase II/III study of T1h in combination manufacture a novel peptide therapeutic
IN-105 (Oral Insulin) IN-105 is an oral with methotrexate in MTX-inadequate for the potential treatment of diabetes.
insulin program that potentially addresses responders/non-responders with active Both companies will collaborate to
300 million diabetes patients worldwide. rheumatoid arthritis is expected to develop the therapeutic potential of
Biocon has initiated a 24 weeks, placebo begin in 2010. A Phase II clinical trial the compound and share development
controlled, Phase III clinical study in India to evaluate the safety, efficacy and costs. Research will center around
in 2009 which is expected to be com- pharmacokinetics of T1h in patients Amylin’s ‘phybrid technology’. Under
pleted towards the end of 2010. This with active psoriasis has been completed. the terms of agreement, Amylin will
study is being undertaken to understand This study was designed as a single provide expertise in peptide hormone
development, particularly in the area of Biocon & Mylan exclusive collaboration to develop,
phybrid technology, as well as metabolic Entering Global Biosimilar Markets manufacture, supply and commercial-
disease therapeutics. Biocon will utilize The generics segment in the pharma- ize multiple, high value biosimilars for
its expertise in recombinant microbial ceutical industry, which is currently the global marketplace. Through this
expression to manufacture the compound based almost entirely on chemically partnership, Mylan and Biocon bring
and also leverage its experience in pre- synthesized drugs, is undergoing a together highly complementary capabil-
clinical and clinical development of paradigm shift. The pressure to lower ities that will significantly advance their
diabetes products. health care costs is galvanizing govern- combined efforts to secure a leading
mental efforts globally to facilitate the position in the emerging biosimilar
Biocon & IATRICa entry of biosimilars. An estimated industry. As part of this collaboration,
Co-developing Immuno-conjugates $25 billion worth of biologics will have Mylan and Biocon will share develop-
for Cancer Biocon and IATRICa are lost patent protection by 2016, creating ment, capital and other costs to bring
working towards development of tar- a significant market opportunity for products to market. Mylan will have ex-
geted immuno-conjugates for oncology biosimilars like insulin and its analogs, clusive commercialization rights in USA,
indications. Presently in discovery stage, erythropoietin, human growth hormone, Canada, Japan, Australia, New Zealand,
the goal of this collaboration is to monoclonal antibodies and many others. EU and European Free Trade Associa-
develop a therapeutic vaccine where the The complexity and costs involved in tion countries through a profit sharing
T cell mediated immunity is enhanced developing these generic biologics are arrangement with Biocon. Additionally,
and maintained against a tumor which expected to see only a few players be- Mylan will have co-exclusive commercial-
otherwise evades immune responses. ing able to gain entry into the highly ization rights with Biocon in all other
Methods of developing, characterizing regulated markets of Europe and USA. markets around the world.
and scaling up of conjugated monoclo-
nal antibody production are being cur- Biocon executed a definitive agreement
rently studied. with Mylan Inc. (Nasdaq: MYL) for an
Marketing
Research & Development
Discovery Research Services: Syngene
Clinical Research Services: Clinigene
Human Resources
Quality & Regulatory
Environment, Health & Safety
Corporate Social Responsibility
Biocon & Optimer ing were being monitored in these stud- Facility (SLAR) is AAALAC (Association
Foray into the Anti-infective Market ies. Phase I studies in human subjects are for the Assessment and Accreditation
Biocon and Optimer Pharmaceuticals, expected to begin in 2010. of Laboratory Animal Care International)
Inc. – a biopharmaceutical company accredited and capable of housing
focused on the treatment of serious Intellectual Property small laboratory animals such as rats,
infections such as Clostridium Difficile Biocon was granted 32 patents in mice, hamsters, rabbits and guinea
Infection (CDI) – have entered into a FY 2009 -10. Our total IP asset stands pigs. It is also registered with the
long-term supply agreement for the at 951 patent applications, of which CPCSEA (Committee for the Purpose
commercial manufacturing of the active 142 are PCT applications and 205 are of Control and Supervision on Experi-
pharmaceutical ingredient, fidaxomicin, granted patents. We have also filed mentation on Animals) which is a
Optimer’s lead product candidate for the applications for our trademark BASA- regulatory body under the Ministry of
treatment of CDI. Biocon’s expertise in LOGTM in Russia and Brazil, INSURAPTM Environment and Forests (Government
fermentation technology and our prior and INSUGEN® in 21 countries during of India). In recognition of achieving
analytical development work with the last fiscal. In recognition of our the expected standards for excellence
fidaxomicin makes us the most suited impressive IP assets, Biocon received in the areas of toxicology and muta-
manufacturer for Optimer’s product the prestigious “Pharmexcil/Government genicity testing, SLAR has been GLP
requirements. of India Patents Award 2008-09” in (Good Laboratory Practice) certified
September 2009 and “IDMA Indian by the German Federal Bureau in
Biocon & Vaccinex Patent Appreciation Award 2008- December 2009.
Partnering for Therapeutic Anti bod- 2009” in January 2010.
ies to treat Cancer, Inflammation & In vivo Pharmacology SLAR conducts
Autoimmune Diseases Biocon and pharmacological evaluation of small
Vaccinex Inc. have embarked on a broad, Discovery Research and large molecules in various thera-
strategic partnership to discover and Services: Syngene peutic areas of immediate relevance
co-develop fully humanized antibodies Syngene remains among India’s largest to human health such as oncology,
focused on cancer, inflammation and preclinical service companies with a metabolic disorders, inflammation and
autoimmune diseases. This collaboration portfolio that covers a wide range of autoimmune diseases.
combines Vaccinex’s unique capabilities discovery services, including scaffold
to discover fully human monoclonal and library synthesis, medicinal chemis- Oncology Both small molecule inhibi-
antibodies using its proprietary antibody try, DMPK profiling, crystallography, tors and monoclonal antibodies are
discovery technology and Biocon’s proven cGMP manufacturing of APIs, tox evaluated to test their efficacy in
expertise in clinical research and biologics studies, efficacy studies in animals and subcutaneous xenografts in nude/SCID
manufacturing. Currently, one mono- oral dosage formulation for first in mice, syngeneic mouse models, metas-
clonal antibody BVX-20 (intended for human studies. Over the years, Syngene’s tasis and angiogenesis models. Based
use in the treatment of patients with incremental investments in industry rel- on the study requirement, in vivo target
relapsed or chemotherapy resistant evant, world class infrastructure has modulation studies and histopathology
follicular B-cell NHL and CD20 positive positioned it as an ideal partner in the can also be carried out.
diffuse large B-cell NHL in combination integrated drug discovery process.
with chemotherapy) has completed GLP Metabolic Disorders SLAR offers effi-
toxicology studies for safety in relevant Syngene Laboratory Animal cacy services in the area of metabolic
animal species. Single and repeat dose Research Facility disorders with special reference to type
pharmacokinetics, immuno-genicity test- Syngene Laboratory Animal Research I, type II diabetes mellitus and DIO (diet
Achievements
• Utilization of solar energy for pre-
heating of canteen water
• Utilization of biogas as co-fuel for boiler
Corporate Social
Responsibility
Arogya Raksha Yojana (ARY)
Healthcare Initiatives
Although India accounts for 16.5%
of the global population, we have an
alarming 1/5th of the world’s share of
diseases. These include diarrheal diseas-
es, TB, respiratory infection, maternal ing all three services in one place, we • Bangalore City: Austin Town and
conditions, nutritional deficiencies, help our customers manage their health Krishnarajpuram
diabetes, cardio-vascular diseases and more efficiently. • Anekal Taluk: Huskur and Hennagara
HIV/AIDS. This disproportionate disease • Our Clinics constantly work towards • Districts of Mandya, Chickballapur
burden requires grassroots intervention improving clinical competencies, through and Bagalkote
from both, public and private sectors. shared standards and protocols.
• We are in the process of developing Each Clinic serves a population of
In an ongoing effort to exercise Biocon’s and introducing patient based clinical 50,000 people living within a radius of
corporate social responsibility, Biocon record systems and health information 10 kms. All our Clinics organize regular
Foundation focuses on helping the including tracking, monitoring and general health checks in remote villages
underprivileged communities of India analysis of symptoms, diagnosis, treat- by bringing in their physicians and
deal with the multiple health challenges ment, compliance, and disease profiles doctors from Narayana Hrudalaya and
they face everyday. To remain relevant of communities. other network hospitals. Additionally, a
and improve our efficacy, we continu- • We provide antenatal/postnatal track- mobile diabetic foot van from the Jain
ously fine tune our healthcare services ing. Mothers are counseled about insti- Institute of Vascular Sciences, Bangalore,
to provide an integrated and holistic sys- tutional deliveries which they can access visits each Clinic once a month. On the
tem that is accessible and affordable to using the ARY Health Insurance scheme. pre-appointed day, patients with diabe-
as many people as we can reach. The • ARY Clinics serve as referrals for scal- tes get free foot screening and advice
ARY Healthcare System operates on two ing up to hospitals. We actively promote on management of their illness and its
levels: linkage with the ARY Health Insurance treatment. These visits are extremely
scheme to ensure that critical illnesses popular with over 100 patients using
Primary Healthcare are treated in time, by competent the service wherever it goes.
• We offer competent clinical care, generic medical personnel. Biocon Foundation
medicines, and basic diagnostic tests at currently runs seven Clinics in both The ARY Clinic in Kaladgi (Bagalkote
each of our seven ARY Clinics. By provid- urban and rural areas. They include: District of North Karnataka) was an
the team could interact with children awareness of basic hygiene and related 229 lives were lost. The Government’s
and teachers in different schools and habits. It caters to the needs of children response was swift, people were moved
get a better understanding of issues from 5th to 7th grade in government to higher areas, temporary shelters were
faced by them in order to provide schools across Karnataka and follows built, and medical relief was sent to all
solutions for the same. The camps the principles of child rights and child affected areas. In the aftermath, the
also enabled employees from Biocon participation. Government launched Aasare – a public
to volunteer their time to teach and private partnership, through which the
assist less privileged children. Infrastructure private sector could rebuild 277 villages
Over the years, Biocon Foundation has on higher ground to protect them from
In the last year, Biocon Foundation’s provided infrastructure support to future calamities.
effort to increase access and exposure several communities by constructing
to learning opportunities for children school buildings (including a perfor- Biocon has made its contribution by
resulted in the Aata Pata Wadi Project mance stage, flooring, classrooms), committing to building 1,000 homes
launched in 2009. The first Aata Pata creches, sanitary facilities and water in three villages within Bagalkote dis-
Wadi (after-school resource center), set supply connections. In Hebbagodi vil- trict. Each house constructed by us will
up in Thithimati, Kodagu district of lage, Biocon built a primary school and be a hybrid home consisting of con-
Karnataka, in partnership with the toilet blocks. We also facilitated daily crete external walls and prefabricated
Skanda Foundation, aims to provide an supply of water through the BWSSB to composite internal walls. A 340 sq.ft
open and fun learning environment for people living around Biocon Campus. covered area will include shelter for
children, many of whom come from Further, in Hennagara Gram Panchayat, each family to secure livestock, their
marginalized communities, thus enabling Biocon sponsored the construction of most valuable asset. Biocon Founda-
them to nurture their interests, learn new two primary schools, a compound wall, tion has used a participatory approach
skills and awaken their spirit of inquiry. school stage and toilet block. At while developing the design and
Objectives of the Project include: Srirampura and Hebbagodi village, technology for these homes. We hope
• Providing access to computer aided we sponsored and facilitated a water to complete 1,000 homes by the end of
learning scheme comprising of a borewell and October 2010.
• Emphasizing experiential learning pipelines. In the near future, we pro-
and extracurricular activities pose to build two schools in Yarandan-
• Boosting English language skills ahalli and Ennaki villages.
• Providing life skills education
Karnataka Flood Relief: A Public-
The Center is equipped with computers, Private Partnership with the
a children’s library, science equipment Government of Karnataka, India
and games/sports material. The Center On September 29, 2009, 4,292 villages
coordinator and teacher manage all in 15 districts of North Karnataka were
activities. Daily nutrition of the children is inundated with more than 377 mm of
supplemented by nutritious refreshments rainfall in 24 hours, the highest in 100
and a health drink that is provided every years. 18 million people were affected
evening, when the children arrive after by this natural disaster; villages were
school. Designed to be bright, airy and submerged; crops were destroyed; top
comfortable, the Center has separate soil was washed away; livestock was
toilets for boys and girls thus reinforcing lost; houses collapsed; and tragically,
BESTOR® 50%
More economical than the leading brands
BASALOG™ 40%
STATIX® 40%
INSUGEN® 30%
TACROGRAF™ 30%
MYOKINASE™ 10%
Cardiology
STATIX® STATIX®F
Active Ingredient: Atorvastatin Active Ingredient: Atorvastatin
10/20/40 mg 10 mg + Micronised Fenofi brate
Indication: Controls elevated 200 mg
cholesterol levels Indication: Corrects cholesterol
levels in Diabetic Dyslipidemics
TELMISAT™! TELMISAT® AM
Active Ingredient: Telmisartan Active Ingredient: Telmisartan
40/80 mg + Hydrochlorothiazide 40 mg + Amlodipine 5 mg tablets
12.5 mg Indication: In Diabetic Hypertensives
Indication: In uncontrolled
hypertension
,-(+® +"™
Active Ingredient: Rosuvastatin Active Ingredient: Ivabradine
Calcium 5/10 mg tablets 5/ 7.5 mg tablets
Indication: For the management Indication: For the management
of Dyslipidemia and Atherosclerosis of Stable Angina
Z+ (® Z+ (® !
Active Ingredient: Losartan Active Ingredient: Losartan
Potassium 25/50 mg Potassium 50 mg +
Indication: Reduces high Hydrochlorothiazide 12.5 mg
blood pressure Indication: Reduces high
blood pressure
2'%"1® %(-"™
Active Ingredient: Enoxaparin Active Ingredient: Eptifi batide
40 mg, 60 mg Pre Filled Syringe 10 ml bolus, 100 ml infusion
Indication: In patients of Acute Indication: In patients of Acute
Coronary Syndrome and Prophylaxis Coronary Syndrome, undergoing
of Deep Vein Thrombosis Percutaneous Coronary Interventions
=569HC@C;M
+2)+(safe ™ +2)+(™
Active Ingredient: Recombinant Active Ingredient: Recombinant
Human Erythropoietin Alpha injection Human Erythropoietin Alpha 2000
in strengths of 2000 IU/3000 IU/ IU/4000 IU/10000 IU
4000 IU/5000 IU/6000 IU/10000 IU Indication: For the treatment of
Indication: For the treatment of patients with anemia due to
patients with anemia due to chronic renal chronic renal failure, either on
?:BENK>
>BMA>KHG=B:ERLBLHKGHG=B:ERLBL =B:ERLBLHKGHG=B:ERLBL
+APACAN™ 6=(,/™
Active Ingredient: Sirolimus Active Ingredient: Sevelamer HCl
1/2 mg tablets 400/800 mg tablets
Indication: Prevention of rejection Indication: For the management of
and rescue therapy for rejection in hyperphosphatemia in CKD patients
renal transplantation
9+5%™
Active Ingredient: Cinacalcet hydrochloride
equivalent to Cinacalcet 30 / 60 mg
Indication: For the treatment of secondary
hyperparathyroidism in dialysis patients
Oncology
NUFIL™
Active Ingredient: Filgrastim
(Recombinant Human Granulocyte
Colony Stimulating Factor) 300 μg
Indication: For the treatment of
chemotherapy induced neutropenia
47 Biocon Limited
52 Financial Highlights
57 Director’s Report
2600 37
2400
2405
2400
2200 281
2200
2000 2000
(Rupees in Crores)
1800
1673 1800
1600
64
(Rupees in Crores)
1400 1600
1200
1090 225
1400
1000 990
793
800 1200 2087
36
600
1000 4 176
06 07 08 09 10 135 46 1384
800 5
(Fiscal Year) 109
101
85 832
600
742
602
06 07 08 09 10
(Fiscal Year)
550
500 509
450
400 387
(Rupees in Crores)
350 351
342
300 293
287 260
250 240
234 231
202 211 225
200 200
PBIDT
174
150 PBT
PAT
06 07 08 09 10
(Fiscal Year)
Current Ratio
2000
1092
1000
900
800 792
(Rupees in Crores)
700 1.9
1.9
600 1.8 1.8
580
530 535
500
1.4
437
400
360
300 301
275
260 Current Asset
200
Current Liabilities
Current Ratio
06 07 08 09 10
(Fiscal Year)
Net Assets
2500
2356
2000 2106
(Rupees in Crores)
1778
1500
1299
1026
1000
500
Debt : Equity
06 07 08 09 10
(Fiscal Year)
2500
2272
2035
2000 514
1739 524
(Rupees in Crores)
255
1500
1256
187
993
1000
105 1758
1484 1511
500 1069
888
741
06 07 08 09 10
(Fiscal Year)
Debt
Equity
1800
1758
1700
1600
1511
1484
1400
(Rupees in Crores)
1200
1069
1000
888
800
600
400
EPS Before Exceptional Items & Book Value Per Share
200
06 07 08 09 10 160
148.4
(Fiscal Year)
140
120
106.9
100
(Rupees in Crores)
88.8 87.9
80
75.5
60
40
15.0
12.5
10.3 11.6
20 9.1
Book Value
90
EPS before Exceptional Items
80 78
Note: 2009 - Post Bonus
70
60
(Rupees in Crores)
60
7.8% 7.6%
7.1%
50
47
6.0%
5.8%
40 39
30
20 20 21
18
15 13
Revenue R&D
10 10
Capital R&D
2000
1926
1800
1739
1600
1400
(Rupees in Crores)
1304
1219
1200
19% 926
1000
17% 15%
800 16%
14%
600
400
Operational PAT
240 293
225
200 174 200 Fixed assets, net working capital & intangible assets
Distribution of Revenues
10% Material Costs 56%
13%
Other Expenses 13%
56%
Interest 1%
1%
Depreciation 6%
6%
2% Tax 2%
12%
Operational PAT 12%
Directors’ Report
Dear Shareholders,
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Corporate Results: .LBG)BEEBHGL
Appropriations:
Dividend
Directors are pleased to recommend a dividend of 70%, which translates to Rs 3.5 per equity share.
Transfer to Reserves
We propose to transfer Rs. 248 millions to the General Reserves. An amount of Rs. 9,470 Million is proposed to be retained in the profit
and loss account.
Biocon SA
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Directors:
Prof. Charles Clooney and Mr. Ravi Mazumdar shall retire by rotation at the ensuing Annual General Meeting, and being eligible, offer
themselves for re-appointment.
Auditors:
The Statutory Auditors M/s. S. R. Batliboi & Associates (Firm registration no. 101049W), Chartered Accountants, Bangalore, retire at the
ensuing Annual General Meeting, and have confirmed their eligibility and willingness to accept office, if re-appointed.
Cumulative disclosure under the stock option scheme as on March 31, 2010:
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Particulars of employees
In terms of the provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, as
amended, is annexed and is a part of this report.
However, having regard to the provisions of Section 219(1)(b)(iv) of the said Act, the Annual Report excluding the aforesaid information is
being sent to all the members of the Company and others entitled thereto. Any member interested in obtaining such particulars may write
to the Company Secretary at the registered office of the Company.
Acknowledgements
The Board greatly appreciates the commitment and dedication of employees at all levels who have contributed to the growth and success
of the Company. We would also thank all our clients, vendors, investors, bankers and other business associates for their continued support
and encouragement during the year.
We also thank the Government of India, Government of Karnataka, Ministry of Information Technology and Biotechnology, Ministry of
Commerce and Industry, Ministry of Finance, Customs and Excise Departments, Income Tax Department, CSEZ and all other Government
agencies for their support during the year and look forward to their continued support in the future.
Rs in Millions
Foreign exchange earned and used for the year ended March 31, 2010,
Rs in Millions
Section 212
Statement pursuant to Section 212 of the Companies Act, 1956 relating to Holding Company’s interest in the Subsidiary
Companies
All amounts in Indian Rupees thousands
Syngene Clinigene Biocon Biocon NeoBiocon Biocon SA AxiCorp
International International Biopharmaceuticals Research FZ LLC GmbH:
Limited Limited Private Limited Limited
Financial year of the subsidiary March 31, March 31, March 31, March 31, March 31, March 31, December 31,
ended on 2010 2010 2010 2010 2010 2010 2009
1. (a) Number of shares held by 28,74,830 50,000 equity 6,732,000 equity 5,00,000 equity 150 equity 100,000 equity 193,360 equity
Biocon Limited at the end of equity shares of shares of Rs. shares of Rs. 10/- shares of RS. shares of shares of 1/- shares of 1/-
the above date Rs. 10/- each 10/- each each 1/- each 1,000/- AED CHF each Euro each
each
(b) Extent of interest on above 99.99% 100% 51% 100% 50% 100% 78%
dated
(i) for the financial year ended 308,113 22,011 13,292 (50,595) 2,713 (59,175) 299,322
March 31, 2010
(ii) for the previous financial 1,491,471 17,960 (191,616) (25) (4,335) 29,479 71,143
years, since it became a
subsidiary
(i) for the financial year ended Nil Nil Nil Nil Nil Nil Nil
March 31, 2010
(ii) for the previous financial Nil Nil Nil Nil Nil Nil Nil
years, since it became a
subsidiary
Biocon Limited
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The Company has only one class of shares viz. equity shares of par value of Rs 5 each. The authorized share capital of the Company was
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HFI:GRA:LNMBEBS>=.L
NG=>KLN<A?:<BEBMR0A>L:E>LM:QEB:;BEBMRBLK>I:R:;E>BGM>GA:E?R>:KERBGLM:EEF>GML
/><NK>=EH:GL=><K>:L>=;R.L
=N>MH=><K>:L>BG;:GD;HKKHPBG@L
Fixed Assets
2010 2009 %
Gross Block
(>LL<<NFNE:M>==>IK><B:MBHG
Net Block
==<:IBM:EPHKDBGIKH@K>LL
Net fi xed assets
*>MLL>MMNKGHO>KK:MBH
NKBG@MA>R>:K
MA>HFI:GRA:L<:IBM:EBS>=VQ>=:LL>MLMHMA>>QM>GMH?.L
0A>IKBF:KBER:==BMBHGL:K>BGIE:GM:G=
F:<ABG>KRH?.L
:G=K>L>:K<A:G==>O>EHIF>GM>JNBIF>GMLH?.L
+G ><>F;>K
MA>HFI:GR<HFIE>M>=MA>:<JNBLBMBHGH?<MBO>,A:KF:%G@K>=B>GM;NLBG>LLH?)
L% (/I><B:EBMRA>FB<:EL
(BFBM>=0A>:LL>ML:<JNBK>=A:O>;>>G<:IBM:EBL>=BGMA>;HHDLH?MA>HFI:GR:M?:BKO:EN>0A>VQ>=:LL>ML:K>=>IK><B:M>=HO>KMA>BK
K>F:BGBG@NL>?NEEB?>:L:LL>LL>=;R:GBG=>I>G=>GMO:EN>K0A>=>IK><B:MBHG<A:K@>
?HKMA>R>:K
HG:<JNBK>=:LL>MLBL.L
0A><:IBM:EPHKDBGIKH@K>LL:L:M):K<A
K>IK>L>GML:=O:G<>LI:B=MHP:K=LINK<A:L>H?VQ>=:LL>ML:G=MA>:<JNBLBMBHG<HLML
K>E:MBG@MH:LL>MLGHMK>:=R?HKNL>
0A>HFI:GRA:L:<:IBM:E<HFFBMF>GMH?.L
:L:M):K<A
:L<HFI:K>=MH.L
:LH?):K<A
Investments
0A>HFI:GR:L:M):K<A
A>E=<NKK>GMBGO>LMF>GMLBGFNMN:E?NG=LH?.L
:L<HFI:K>=MH.L
:LH?
):K<A
NKBG@MA>R>:K
MA>?NG=L@>G>K:M>=?KHFHI>K:MBG@:<MBOBMB>LP>K>BGO>LM>=BG<NKK>GMBGO>LMF>GML:LK>W><M>=BG
(BJNB=BMRL><MBHG;>EHP
0A>EHG@M>KFBGO>LMF>GMLA:O>BG<K>:L>=?KHF.L
MH.L
HO>KMA>IK>OBHNLR>:K==BMBHG:EBGO>LMF>GML=NKBG@MA>R>:K
BG<EN=>BGO>LMF>GMH?.L
BG2:<<BG>Q%G<
1/:G=.L
BG%0.%:%G<
1/0A>CHBGMK>L>:K<A<HEE:;HK:MBHGIKH@K:FPBMA
2:<<BG>Q%G<:G=CHBGM=>O>EHIF>GMIKH@K:FPBMA%0.%:%G<:K>HGLMK>:FL:M):K<A
MA>HFI:GRA:LOHMBG@KB@AML
BG%0.%:%G<
0A>HFI:GR<HGMBGN>LMHAHE=BMLBGO>LMF>GMLBGBMLLN;LB=B:KB>L/RG@>G>
EBGB@>G>
BH<HG/:G=BH<HG.>L>:K<A(BFBM>=:G=CHBGM
O>GMNK>LOBS
BH<HGBHIA:KF:<>NMB<:EL,KBO:M>(BFBM>=:G=*>HBH<HG
Intangible Assets
NKBG@MA>R>:K>G=>=):K<A
MA>HFI:GRMK:GL?>KK>=MA>KB@AMMH=>O>EHI:G=<HFF>K<B:EBL>+K:E%GLNEBGMHBH<HG.>L>:K<A
(BFBM>=
?HK:<HGLB=>K:MBHGH?.L
1/FBEEBHGLMA>K>:K><>KM:BGH;EB@:MBHGLH?MA>I:KMB>LMH<HG<EN=>MA>:KK:G@>F>GML
MA><HGLB=>K:MBHGA:L;>>GMK>:M>=:L=>?>KK>=K>O>GN>;RMA>HFI:GR:L:M):K<A
NKBG@MA>R>:K>G=>=):K<A
MA>HFI:GR:<JNBK>=F:KD>MBG@KB@AMLH?A.:G=!,+?KHF,(?HK:LNFH?.L
0A>L>KB@AML@BO>MA>HFI:GR:G>Q<ENLBO>KB@AMH?F:KD>MBG@MA>IKH=N<MLBG<>KM:BGM>KKBMHKB>L,>G=BG@K><>BIMH?K>@NE:MHKR:IIKHO:EL
?KHFMA>:NMAHKBMB>LH?LN<A<HNGMKB>L
GH:FHKMBL:MBHGA:L;>>GK><HK=>=;RMA>HFI:GR
L:MR>:K>G=
G>MO:EN>H?BGM:G@B;E>L:LL>ML:K>.L
PROFIT BEFORE DEPRECIATION , EXCEPTIONAL ITEMS AND TAXES 3,559,573 2,884,918 23%
Depreciation and Amortisation 797,290 742,830 7%
PROFIT BEFORE TAXES AND EXCEPTIONAL ITEMS 2,762,283 2,142,088 29%
Provision for Income Tax
Current Tax 278,713 164,394 70%
Less: MAT Credit Entitlement - (87,068) -100%
Deferred taxes - 12,171 -100%
Fringe benefit tax - 14,470 -100%
PROFIT AFTER TAXES AND EXCEPTIONAL ITEMS 2,483,570 2,038,121 22%
EXCEPTIONAL ITEMS NET OF TAX - (920,124) -100%
NET PROFIT FOR THE YEAR 2,483,570 1,117,997 122%
Balance brought forward from the previous year 8,009,190 7,704,962 4%
PROFIT AVAILABLE FOR APPROPRIATION 10,492,760 8,822,959 19%
Proposed dividend on equity shares 700,000 600,000 17%
Tax on proposed dividend 74,136 101,970 -27%
Transfer to general reserve 248,357 111,799 122%
BALANCE, END OF THE YEAR 9,470,267 8,009,190 18%
Biocon’s total income for the year ended March 31, 2010 comprises of three components:
• Sales of Biopharmaceuticals products;
• Technical Licensing fees; and
• Other income.
Biocon Limited
0A>?HEEHPBG@M:;E>L>MLHNMMA><HGMKB;NMBHGH?>:<AH?MA>L><HFIHG>GMLH?BH<HGLBG<HF>>QIK>LL>=:L:I>K<>GM:@>H?BH<HGLMHM:E
BG<HF>?HKMA>R>:KL>G=>=):K<A
:G=):K<A
Sales
2010 2009
Sale of Products
BHIA:KF:<>NMB<:EL
0><AGB<:E(B<>GLBG@">>L
+MA>K%G<HF>
0HM:E%G<HF> 100.0% 100.0%
/A:K>H?K>O>GN>L?KHFG>ML:E>L;>MP>>G=HF>LMB<:G=>QIHKMF:KD>ML:K>:L?HEEHPL
Share of revenues
2010 % 2009 %
HF>LMB<
Exports
Total
BH<HGLG>ML:E>L@K>P;RMH.L
BGPABE>MA>MHM:EBG<HF>@K>P;RMH.L
HFI:GRL>QIHKM
K>O>GN>L?KHFIKH=N<ML:E>LA:O>BG<K>:L>=;R
:G==HF>LMB<L:E>LA:O>BG<K>:L>=;R
, &'-0",)+(+&'
BIOPHARMACEUTICALS
+NK;NLBG>LL?H<NLBLHGMA>F:GN?:<MNKBG@:G=F:KD>MBG@H?;BHIA:KF:<>NMB<:ELMA:MK>JNBK>?>KF>GM:MBHG:G=LRGMA>MB<<A>FBLMKRLDBEEL
Statins:
/M:MBGL:K><AHE>LM>KHEEHP>KBG@:@>GMLNL>=MHMK>:M:G=IK>O>GM<HKHG:KR=BL>:L>L:G=:K>:FHG@LMMA>E:K@>LML>EEBG@=KN@LPHKE=PB=>
+NKLM:MBGLIHKM?HEBHIK>L>GMER<HFIKBL>L/BFO:LM:MBG
,K:O:LM:MBG
MHKO:LM:MBG
"ENO:LM:MBG
(HO:LM:MBG:G=.HLNO:LM:MBGBH<HGBLIKBF:KBER
L>EEBG@/M:MBGLBG%G=B:G
1/:G=!NKHI>:GF:KD>ML
+NK/M:MBGLL>@F>GM@K>P5H5=>LIBM>IKB<BG@IK>LLNK>LHPBG@MH>GA:G<>=<:I:<BMR>G:;E>=;RBFIKHO>=IKH=N<MBOBMR/BFO:LM:MBG
K>F:BG>=BH<HGLE:K@>LMIKH=N<M;RL:E>LBGMABLL>@F>GM
Insulins:
%GLNEBGBL:AHKFHG>MA:MK>@NE:M>LMA>>G>K@R:G=@EN<HL>F>M:;HEBLFBGMA>;H=RBH<HGF:KD>MLK><HF;BG:GMANF:GBGLNEBGBG%G=B:
NG=>KBMLHPG;K:G=G:F>%*/1#!*:G=A:L:ELHK>@BLM>K>=MA>%GLNEBGBGL>O>K:E>QIHKMF:KD>ML%G:==BMBHG
BH<HGA:LLNIIER
:KK:G@>F>GMLPBMAIA:KF:<>NMB<:EF:CHKL:G==>OB<><HFI:GB>LMHLNIIERK><HF;BG:GMANF:GBGLNEBG?HKNL>BGMA>BKGHO>EBGLNEBG
?HKFNE:MBHGL/HF>H?MA>L>=>EBO>KRLRLM>FL:K>NG=>K@HBG@<EBGB<:EMKB:EL
+NKBGLNEBGL;NLBG>LL@K>P5H5PBMA@KHPBG@FHF>GMNFBG>F>K@BG@F:KD>ML:E>L0A>K>A:L;>>G:GBG<K>:L>BG?HKFNE:MBHGL:E>L
BGMA>>F>K@BG@F:KD>M
LB@GB?RBG@:FHO>F>GMNIMA>O:EN><A:BGBGMABL;NLBG>LL NKBG@MA>R>:K
P>A:O>>GM>K>=L>O>K:EG>PF:KD>ML
EBD>K:SBE:G=ABE>:FHG@HMA>KL:G=:LH?MA>>G=H?MA>R>:KP>A:O>OB:E:G=<:KMKB=@>K>@BLMK:MBHGLBG:IIKHQBF:M>ER<HNGMKB>L
Immunosuppressants:
%FFNGHLNIIK>LL:GMLIK>O>GMHK@:G:G=MBLLN>K>C><MBHGBGMK:GLIE:GML:G=K>JNBK>AB@AM><AGHEH@R;:L>=F:GN?:<MNKBG@<:I:;BEBMB>L
NKK>GMERBH<HGIKH=N<>LFR<HIA>GHE:M>FH?>MBE))"
LBKHEBFNL:G=M:<KHEBFNL%G:==BMBHGMHMA>L:E>LH?))":G=0:<KHEBFNLBGMA>
=HF>LMB<F:KD>M
MA>HFI:GRA:L:ELH<HFF>G<>=>QIHKMLMHMA>1/):KD>M:G=<>KM:BG<HNGMKB>LBGMA>!1K>@BHG
0ABLL>@F>GMIHLM>=:5H5@KHPMA=>LIBM>IKB<BG@IK>LLNK>L0:<KHEBFNL,%L:E>LMH<NLMHF>KL:P:BMBG@* :IIKHO:ELA:O>:ELH
:==>=MHMABLFHF>GMNF
Branded Formulations:
K:G=>=?HKFNE:MBHGL:K>VGBLA>==HL:@>L<NKK>GMERLHE=BG%G=B::G=>F>K@BG@F:KD>M@>H@K:IAB>L+NKHFI:GRBLIK>L>GMBG?HNK
MA>K:I>NMB<:K>:LX B:;>MHEH@R
+G<HEH@R
:K=BHEH@R:G=*>IAKHEH@R0A>K:G=>=?HKFNE:MBHGLL>@F>GM@K>P5H5HGMA>;:<DH?
LMKHG@L:E>LBG=B:;>MHEH@R:G=HG<HEH@R
+NKHFI:GRBLIHLBMBHGBG@BML>E?:L:D>RIE:R>KBG=B:;>M>LMA>K:IRHG:@EH;:EL<:E>+NKBGLNEBGL:K>@:BGBG@F:KD>MLA:K>BG%G=B::G=
L>O>K:E>F>K@BG@F:KD>MLBH<HGA:L?H<NL>=BML>??HKMLMHBFIKHOBG@=B:;>M>L<:K>BG%G=B:MAKHN@A:G:P:K>G>LL<:FI:B@GHG
FHGBMHKBG@:G=<HGMKHEH?;EHH=@EN<HL>:G=>:KER=>M><MBHGH?MA>=BL>:L>
BH<HGA:L:=>=B<:M>=F:KD>MBG@M>:FH?HO>KI>HIE>?HKMA>VGBLA>==HL:@>;NLBG>LL
5. OTHER FINANCIAL DATA
Technical Licensing Fees
0A>L>?>>LK>IK>L>GMBG<HF>K><>BO>=;RBH<HGMHP:K=LMK:GL?>KH?IKHIKB>M:KRM><AGHEH@RPBMAK>LI><MMH<>KM:BG;BH@>G>KB<LNG=>K
EHG@M>KF<HGMK:<ML0A>R:ELHBG<EN=>?>>LK><>BO>=;RBH<HGMHP:K=LHNMEB<>GLBG@BMLIKHIKB>M:KRIKH=N<ML NKBG@MA>R>:K
MA>
HFI:GRA:L:K>@BLM>K>=EB<>GLBG@BG<HF>H?.L
:GBG<K>:L>H?.L
:L<HFI:K>=MHIK>OBHNLR>:KIKBF:KBER=N>MH
EB<>GLBG@BG<HF>?KHFL:E>H?=>O>EHIF>GMKB@AMLH?<>KM:BGIKH=N<ML<:G=B=:M>L
2010 2009
*>M<:LA@>G>K:M>=?KHFHI>K:MBG@:<MBOBMB>L
*>M<:LANL>=?HK
Capital expenditure
BOB=>G=BG<EN=BG@=BOB=>G=M:Q
%GO>LMF>GMLBG:LLH<B:M>
LN;LB=B:KR<HFI:GB>L
(H:GLMHLN;LB=B:KB>L
CHBGMO>GMNK>L<HFI:GB>L
HKKHPBG@L?KHF;:GDL
Others
*>M<:LA>JNBO:E>GML
*>MINK<A:L>
K>=>FIMBHGH?<NKK>GMBGO>LMF>GML
:LA:M;>@BGGBG@H?R>:K
Cash at end of year
6. PERFORMANCE OF SUBSIDIARIES
Syngene International Limited
/RG@>G>BL:HPG>=LN;LB=B:KRH?MA>HFI:GR/RG@>G>P:LBG<HKIHK:M>=HG*HO>F;>K
/RG@>G>PHKDLBGMPHF:BG
K>L>:K<A:K>:L/RGMA>MB<A>FBLMKR:G=)HE><NE:KBHEH@R/RG@>G>BL:ELHBGOHEO>=BG<NLMHF<A>FB<:ELRGMA>LBL NKBG@MA>R>:K
/RG@>G>A:L<HGV=>GMERFHO>=BGMH%GM>@K:M>= KN@ BL<HO>KRL>KOB<>L
/RG@>G>LMHM:EBG<HF>IKBF:KBER<HGLBLMLH?G>ML:E>L?KHFHGMK:<MK>L>:K<A:G=F:GN?:<MNKBG@L>KOB<>LBG<HF>/N;LM:GMB:EER:EEH?
/RG@>G>L<HGMK:<ML:K>;:L>=HGMBF>:G=F:M>KB:EF:G:@>F>GM.>O>GN>?KHFMA>L><HGMK:<MLBLK><H@GBS>=PA>GL>KOB<>L:K>K>G=>K>=
BG:<<HK=:G<>PBMAMA>M>KFLH?MA><HGMK:<M/RG@>G>LMHM:EK>O>GN>A:LBG<K>:L>=?KHF.L
MH.L
K>IK>L>GMBG@:
@KHPMAH?0A>@KHPMABGHI>K:MBHGLBLLNIIHKM>=;RBG<K>:L>BGK>O>GN>L?KHF>QBLMBG@:G=G>P<NLMHF>KL
/RG@>G>L>QI>GL>LF:BGER<HFIKBL>H?K:PF:M>KB:E<HLML:G=LM:??<HLML.:PF:M>KB:E<HLM<HGLBLMLH?E:;<HGLNF:;E>LNL>=?HK
K>L>:K<A0A>K:PF:M>KB:E<HLMLBG<K>:L>=;R?KHF.L
MH.L
BGVL<:E:G=MA>LM:??<HLMLBG<K>:L>=;R
.L
MH.L
%G<K>:L>BGF:M>KB:E<HLM:G=BG<K>:L>BGLM:??<HLML:K>=N>MH@KHPMABGL:E>L+MA>K<HLMLBG<K>:L>=;R
?KHF.L
MH.L
*>MIKHVM;>?HK>>Q<>IMBHG:EBM>FL?HKMA>R>:KA:L=><K>:L>=;R.L
?KHF.L
MH.L
F:BGER=N>MHBG<K>:L>BG
=>IK><B:MBHG;R.L
?KHF.L
BGMA>R>:K>G=>=):K<A
MH.L
BGMA>R>:K>G=>=):K<A
%GIK>OBHNL
R>:K
/RG@>G>A:=:G>Q<>IMBHG:EEHLLH?.L
HG:<<HNGMH?):KDMH):KD>MEHLL>LHG?HK>B@G>Q<A:G@>?HKP:K=<HGMK:<ML
Clinigene International Limited
EBGB@>G>BL:HPG>=LN;LB=B:KRH?BH<HG(BFBM>=EBGB@>G>P:L>LM:;EBLA>=MHNG=>KM:D><EBGB<:E:G=HMA>KMKB:EL:G=Oalidation for
=KN@L:G=IA:KF:<>NMB<:EL:G=MH<HG=N<MK>L>:K<ABGMA>:K>:H?F>=B<:EL<B>G<>L?HK=>O>EHIF>GMH?G>P:G=BFIKHO>NIHG>QBLMBG@
F>=B<:E=B:@GHLMB<
LNK@B<:E:G=MA>K:I>NMB<M><AGBJN>L
EBGB@>G>LMHM:EBG<HF>IKBG<BI:EER<HGLBLMLH?BG<HF>?KHF<EBGB<:EK>L>:K<A?>>L:G=:ELHBH:G:ERMB<:E:G=BH>JNBO:E>G<>LMN=B>L
EBGB@>G>>GM>KL>BMA>KBGMHMBF>:G=F:M>KB:E<HGMK:<ML:G=
HKVQ>=IKB<>:KK:G@>F>GML.>O>GN>?KHFMBF>:G=F:M>KB:E<HGMK:<ML:K>
K><H@GBL>=HG:FHGMAER;:LBL:LL>KOB<>L:K>K>G=>K>=BG:<<HK=:G<>PBMAMA>M>KFLH?MA>:IIEB<:;E><HGMK:<ML.>O>GN>?KHFVQ>=IKB<>
<HGMK:<MLBLK><H@GBS>=;:L>=HGMA>I>K<>GM:@><HFIE>MBHGF>MAH=0HM:EK>O>GN>H?EBGB@>G>BG<K>:L>=?KHF.L
BGVL<:E
MH.L
BGMA>VL<:E
IKBF:KBERHG:<<HNGMH?BG<K>:L>BG<EBGB<:EK>L>:K<A?>>L
EBGB@>G>L>QI>GL>L<HFIKBL>H?K>L>:K<AF:M>KB:E<HLML
<HGLNEM:G<R?>>L
LM:??<HLM
HMA>KHI>K:MBG@>QI>GL>
BGM>K>LM<HLM
=>IK><B:MBHG
:G=IKHOBLBHGL?HK<NKK>GMM:QHGLNEM:G<R?>>LA:O>BG<K>:L>=;R?KHF.L
MH.L
:L<HFI:K>=MHEBGB@>G>L
LM:??<HLMA:LBG<K>:L>=;R?KHF.L
MH.L
:L<HFI:K>=MHIK>OBHNLR>:K%GM>K>LM>QI>GL>LA:O>=><K>:L>=?KHF
.L
MH
HG:<<HNGMH?K>I:RF>GMH?M>KFEH:G
,KHVM?HKMA>R>:K>G=>=):K<A
H?.L
:L:@:BGLM.L
BGMA>IK>OBHNLR>:K
Biocon Biopharmaceuticals Private Limited
BH<HGBHIA:KF:<>NMB<:EL,KBO:M>(BFBM>=BL:CHBGMO>GMNK>HFI:GRPBMA%),(P:LBG<HKIHK:M>=HG&NG>
:G=
<NKK>GMERA:L:G:NMAHKBL>=LA:K><:IBM:EH?.L
NKK>GMER
I:B=NILA:K><:IBM:EH?MA>HFI:GRBL.L
"HKMA>R>:KNG=>KK>OB>P
,(>:KG>=K>O>GN>LH?.L
:L:@:BGLM.L
BGMA>IK>OBHNLR>:K,(<HFF>G<>=?NEEW>=@>=
HI>K:MBHGLHGERK><>GMER:G=?HKMA>R>:KNG=>KK>OB>PA:L:G>MIKHVMH?.L
:L:@:BGLM:EHLLH?.L
BGMA>IK>OBHNLR>:K
L:M):K<A
,(A:L:<<NFNE:M>=EHLL>LH?.L
+G):K<A
%)/
,(:G=BH<HG/A:O>>GM>K>=BGMH:G:@K>>F>GMMH:<JNBK>MA>>JNBMRLM:D>A>E=;R%)/
BG,( 0A>MK:GL:<MBHGA:L;>>G<HGLNFF:M>=BGIKBE
Biocon Research Limited
BH<HG.>L>:K<A(BFBM>=UMA>HFI:GRZP:LBG<HKIHK:M>=BG%G=B:HG):R
:L:PAHEERHPG>=LN;LB=B:KRH?BH<HG(BFBM>=
0A>HFI:GRBL>G@:@>=BG<:KKRBG@HNMK>L>:K<A:G==>O>EHIF>GMH?G>P=KN@L
=KN@=>EBO>KRLRLM>FL:G=<HGMK:<MN:EK>L>:K<A NKBG@
MA>R>:K>G=>=):K<A
MA>HFI:GRA:LK><>BO>=:G:IIKHO:E?HK:/!6NGBMMH;>EH<:M>=PBMABGBH<HG/!6:MMA>BH<HG,:KD
?:<BEBMR NKBG@MA>R>:K
MA>HFI:GRA:L<HFF>G<>=<HFF>K<B:EHI>K:MBHGL:G=:<JNBK>==>O>EHIF>GM:G=F:KD>MBG@KB@AMLH?+K:E
%GLNEBG:G=<>KM:BGFHGH<EHG:E:GMB;H=B>L?KHFBH<HG
0A>HFI:GR>:KG>=K>O>GN>H?.L
:G=A:L:EHLLH?.L
:L:M):K<A
Name of the Director No. of Board meetings attended Attendance at the last AGM No. of other Directorships (*)
Dr. Kiran Mazumdar-Shaw 4 Yes 10
Mr. John Shaw 4 Yes 6
Prof. Ravi Mazumdar 3 Yes 3
Dr. Neville Bain 3 No 4
Prof. Charles Cooney 4 Yes 8
Mr. Suresh Talwar 4 Yes 49
Dr. Bala S Manian 4 Yes 5
Prof. Catherine Rosenberg (Alternate Director 1 Yes 1
to Prof. Ravi Mazumdar)
* Includes private limited companies and foreign body corporate and alternate directorships.
Availability of information to the Members of the Board
• Annual operating plans and budgets, capital budgets and any updates thereon.
• Quarterly results for the Company and its divisions.
• Minutes of meetings of Audit Committee, Remuneration Committee, Investors’ Grievance Committee and Share Transfer Committee.
• The information on recruitment and remuneration of senior officers just below the board level, including the Company Secretary.
• General notice of interest.
• Dividend data and bonus, if applicable.
• Show cause, demand, prosecution notices and penalty notices which are materially important.
• Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems.
• Any material default in financial obligations to and by the Company, or substantial non-payment for goods sold by the Company.
• Any issue, which involves possible public or product liability claims of substantial nature.
• Details of any joint venture, acquisition, technology or collaboration agreement.
• Transactions that involve substantial payment towards goodwill, brand equity or intellectual property.
• Significant development in Human Resources/ Industrial Relations.
• Sale of material nature, of investments, subsidiaries, assets, which is not in the normal course of business.
• Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of adverse exchange rate
movement, if material.
• Non-compliance of any regulatory, statutory nature or listing requirements and shareholders service such as non-payment of dividend,
delay in share transfer, etc.
Biocon Limited
0$%//,!$/!!*%*0!*0%+*((5(!"0(*'
Sl. No. Name of the Director Name of the Indian Public Limited Company Nature of the Committee* Member/Chairman
K'BK:G):SNF=:K/A:P BH<HG(M= %GO>LMHKL#KB>O:G<> )>F;>K
)K&HAG/A:P BH<HG(M= %GO>LMHKL#KB>O:G<> )>F;>K
,KH?.:OB):SNF=:K BH<HG(M= None None
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2. v. Code of Conduct:
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F>F;>KL:G=L>GBHKF:G:@>F>GMBL>G<EHL>=:G=?HKFLI:KMH?MABLK>IHKM
Certifi cate of Code of Conduct:
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KNE>L:G=K>@NE:MBHGL:G=PBMAAB@A>LM
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2. vi. Shareholding of Directors
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2. viii. Notice of interest by Senior Management personnel.
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3. Audit Committee:
3. i. Terms of Reference
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PBMA/><MBHGH?MA>HFI:GB>L<M
:G=BG<EN=>LLN<AHMA>K?NG<MBHGL:LF:R;>:LLB@G>=MHBM;RH:K=?KHFMBF>MHMBF>
0A>N=BMHFFBMM>>A:L;>>G>GMKNLM>=PBMA:EEK>JNBK>=:NMAHKBMR:G=IHP>KLMHIE:R:G>??><MBO>KHE>:L>GOBL:@>=NG=>KK>OBL>=
E:NL>H?MA>(BLMBG@@K>>F>GM
During the year 2009-10, the Committee met 4 times on April 27, 2009, July 22, 2009, October 21, 2009 and January 20, 2010. The
Senior Management and Auditors were invited to attend the meeting of the Audit Committee and attended all meetings. The Company
Secretary acts as the Secretary to the Audit Committee.
The Committee reviewed the financial results of the Company prepared in accordance with Indian GAAP (including consolidated results)
and recommended the same to the Board of Directors for their adoption.
The Committee also recommended to the Board of Directors the re-appointment of M/s S. R. Batliboi & Associates, Chartered
Accountants (Firm registration no. 101049W), as Statutory Auditors of the Company from conclusion of 2010 Annual General Meeting to
the forthcoming Annual General Meeting.
The Committee also reviewed Internal Audit reports, Internal Control Systems, risk management policies, related party transactions, etc.
from time to time.
Audit Committee members are advised of the work of independent internal auditors M/s. Grant Thornton were appointed to review the
control processes in place and report quarterly to the Audit Committee.
3. iv. Subsidiary Companies:
The Company has five subsidiary companies, Syngene International Limited, Clinigene International Limited, Biocon Research Limited,
Biocon SA, AxiCorp GmbH and two joint ventures, Biocon Biopharmaceuticals Private Limited and NeoBiocon, as explained in the
Directors Report. None of the subsidiary companies represent more than 20% of consolidated turnover or net worth of the Company in
the immediately preceding financial year. However, two independent Directors of the Company are on the Board of Syngene International
Limited.
The Audit Committee of the Company reviews the financial statements of all the subsidiary companies. The minutes of the Board
meetings of Subsidiary companies are placed Board meetings of the Company and reviewed.
3. v. CEO/CFO Certification:
The Board has recognized the Chairman and Managing Director of the Company as the CEO and President – Group Finance as the CFO
for the limited purpose of compliance under the Listing Agreement. The CEO and CFO have certified, in terms of revised Clause 49 of the
Listing Agreement to the Board that the financial statements present a true and fair view of the Company’s affairs and are in compliance
with existing accounting standards.
4. Remuneration Committee:
4. i. Terms of Reference:
The terms of reference of the Remuneration Committee, inter alia, includes determination of compensation package of executive directors
and senior management of the Company, determination and supervision of the bonus scheme of the Company and to investigate any
activities within the terms of reference, etc. The Committee also oversees the employee stock option scheme and recommends the same
for the approval of the Board/shareholders. The Committee is empowered to decide the eligibility of the category of employees and the
terms and conditions of grants to be extended under the ESOP schemes of the Company.
4. ii. Constitution:
The Board constituted the Remuneration Committee April 16, 2001. The following directors are the current members of the Committee:
a) Prof. Charles L. Cooney
b) Dr. Neville Bain
The members of the committee are non-executive and independent directors Prof. Charles Cooney is the Chairman of the Committee.
4. iii. Meeting and Attendance during the year:
4. v. Details of Remuneration:
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F=H9F=5:CFA5?=B;D5MA9BHHC'CBL97IH=J9=F97HCFG
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5. Shareholders:
5. i. Investor Grievances Committee:
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5. ii. Compliance offi cer:
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5.iii. Details of Shareholders Complaints
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vi) Stock Code/Symbol */!%++*
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vii) International Securities Identifi cation Number %*!#
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280 16800
260 15800
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220 13800
200 12800
180 11800
160 10800
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We have examined the compliance of conditions of corporate governance by Biocon Limited, for the year ended on March 31, 2010, as
stipulated in clause 49 of the Listing Agreement of the said Company with stock exchange(s).
The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to procedures
and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is
neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied
with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.
Bangalore
April 29, 2010
Auditors’ Report
To the Members of Biocon Limited
1. We have audited the attached Balance Sheet of Biocon Limited (‘the Company’) as at March 31, 2010 and also the Profi t and Loss
Account and the Cash Flow Statement for the year ended on that date annexed thereto. These fi nancial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on these fi nancial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes
assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nanci al
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003 (as amended) issued by the Central Government of India in terms of
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i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes
of our audit;
ii. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of
those books;
iii. The balance sheet, profi t and loss account and cash fl ow statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the balance sheet, profi t and loss account and cash fl ow statement dealt with by this report comply with the Accounting
/M:G=:K=LK>?>KK>=MHBGLN;L><MBHGH?/><MBHGH?MA>HFI:GB>L<M
v. On the basis of the written representations received from the directors, as on March 31, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualifi ed as on March 31, 2010 from being appointed as a director in terms of Clause
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vi. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information
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(a) in the case of the balance sheet, of the state of affairs of the Company as at March 31, 2010;
(b) in the case of the profi t and loss account, of the profi t for the year ended on that date; and
(c) in the case of cash fl ow statement, of the cash fl ows for the year ended on that date.
Name of the statute Nature of dues Amount Period to which the Forum where dispute is
(Rs in thousands) amount relates pending
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Appellate Tribunal, Chennai.
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2008 Appellate Tribunal, Chennai.
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Appellate Tribunal, Chennai.
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(Appeals)
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(x) The Company has no accumulated losses at the end of the fi nancial year and it has not incurred cash losses in the current and
immediately preceding fi nancial year.
(xi) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to fi nancial institution and banks. The Company does not have any borrowing by
way of debenture.
(xii) According to the information and explanations given to us and based on the documents and records produced to us, the Company
has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) %GHNKHIBGBHG
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the Companies (Auditor’s Report) Order, 2003 (as amended) are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the
IKHOBLBHGLH?E:NL>QBOH?MA>HFI:GB>LN=BMHKL.>IHKM+K=>K
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(xv) According to the information and explanations given to us, the Company has given guarantee for loans taken by others from banks
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Company.
(xvi) The Company did not have any term loans outstanding during the year.
(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we
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(xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under
Section 301 of the Companies Act.
(xix) The Company did not have any outstanding debentures during the year.
(xx) The Company has not raised any money through a public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the fi nancial statements and as
per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or
reported during the course of our audit.
Bangalore
IKBE
The Schedules referred to above and Notes to accounts form an integral part of the Balance Sheet.
For S.R. BATLIBOI & ASSOCIATES For and on behalf of the Board of Directors of Biocon Limited
Firm registration no.: 101049W
Chartered Accountants
Profi t and Loss Account for the year ended March 31, 2010
(All amounts in Indian Rupees thousands, except share data and per share data)
INCOME
Gross sales
(>LL!Q<BL>=NMR 300,281
Net sales 11,280,695 9,034,360
Licensing and development fees
Other income 13
12,289,152 9,871,103
EXPENDITURE
Manufacturing, contract research and other expenses
Interest and fi nance charges
8,729,579 6,986,185
PROFIT BEFORE DEPRECIATION, EXCEPTIONAL ITEMS AND TAXES 3,559,573 2,884,918
Depreciation/Amortisation BBB
PROFIT BEFORE TAXES AND EXCEPTIONAL ITEMS 2,762,283 2,142,088
,KHOBLBHG?HKBG<HF>M:Q
Current tax 278,713
(>LL)0<K>=BM>GMBME>F>GM
Deferred taxes 12,171
Fringe benefi ts
PROFIT AFTER TAXES, BEFORE EXCEPTIONAL ITEMS 2,483,570 2,038,121
Exceptional items, net
==
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PROFIT FOR THE YEAR 2,483,570 1,117,997
Balance brought forward from previous year
PROFIT AVAILABLE FOR APPROPRIATION 10,492,760 8,822,959
Proposed dividend on equity shares 700,000
Tax on proposed dividend
Transfer to general reserve
BALANCE TRANSFERRED TO BALANCE SHEET 9,470,267 8,009,190
!:KGBG@LI>KLA:K>>JNBMRLA:K>L
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Basic (in Rs) 12.77
Diluted (in Rs)
Weighted average number of shares used in computing earnings per share
Basic
Diluted
Notes to Accounts 17
The schedules referred to above and the notes to accounts form an integral part of the Profi t and Loss Account
For S.R. BATLIBOI & ASSOCIATES For and on behalf of the Board of Directors of Biocon Limited
"BKFK>@BLMK:MBHGGH3
Chartered Accountants
*These balances are not available for use by the Company as they represent corresponding unpaid dividend liabilities.
As per our report of even date
For S.R. BATLIBOI & ASSOCIATES For and on behalf of the Board of Directors of Biocon Limited
Firm registration no.: 101049W
Chartered Accountants
0$%//,!$/!!*%*0!*0%+*((5(!"0(*'
Securities Premium
Balance 2,788,478 3,288,478
Less: Utilised during the year for issuance of bonus shares - (500,000)
2,788,478 2,788,478
ESOP Trust
Balance 169,785 145,856
Add: Dividend, interest income and profit on sale of shares, net 202,469 23,929
372,254 169,785
General Reserve
Balance 1,527,351 1,415,552
Add: Transfer from Profit and Loss Account 248,357 111,799
1,775,708 1,527,351
Stock compensation adjustment (Also see Note 3 in Schedule 17)
Stock options outstanding 293,805 313,950
Additions during the year - 3,836
Deletions during the year 30,073 23,981
263,732 293,805
Less: Deferred employee stock compensation expense 17,061 49,345
246,671 244,460
Balance in profit and loss account 9,470,267 8,009,190
14,662,867 12,748,753
(i) Deferred employee stock compensation expense (Also see Note 3 in Schedule 17):
Stock compensation expense outstanding at the beginning of the year 49,345 96,324
Stock options granted during the year - 3,836
Stock options cancelled/forfeited during the year (30,073) (23,981)
Stock compensation expense (amortised)/reversed during the year 1,800 (15,754)
Stock compensation expense charged to Subsidiaries during the year (4,011) (11,080)
Closing balance of deferred employee stock compensation expense 17,061 49,345
(i) The Company has working capital facilities with State Bank of India (SBI). These facilities are repayable on demand, secured by a
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March 31, 2007. The registration for a part of the land under this lease is pending settlement of certain disputes in respect of claims made
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Limited. The assets acquired have been capitalised at their fair values in the books of the Company.
(a) The Company acquired patents relating to certain technologies (collectively IPs) including oral insulin and Apaza from M/s Nobex Inc.
During the year ended March 31, 2007 , the Company licensed out it’s IP Apaza for further development and commercialisation.
Effective October 2006, the Company commenced amortisation of Apaza over a period of 5 years.
During the year ended March 31, 2010, the Company transferred the right to develop and commercialise Oral Insulin to Biocon Research
Ltd , a wholly owned subsidiary (BRL) for a consideration of Rs 673,260 (US$ 14 Million). As the development and marketing rights of
Oral Insulin have certain obligations of the parties to conclude the arrangements, the same has been treated as deferred revenues by the
Company at March 31, 2010.
(b) During the year ended March 31, 2010, the Company transferred the rights relating to development and marketing of certain
monoclonal antibodies (‘MABs’) to BRL for a consideration of Rs 480,500. As the Company has certain obligations for the development
of the products, the income is being recognised over the period of the process development, estimated to be 18 months from the date of
agreement.
(c) During the year ended March 31, 2009, the Company acquired marketing rights of hR3 and EPO from Biocon Biopharmaceuticals
Private Limited (BBPL) for a sum of Rs. 128,850. These rights give the Company an exclusive right of marketing the products in certain
territories. The Company is yet to receive regulatory approvals for marketing of the products from the authorities of such countries.
Pending receipt of approval, no amortisation has been recorded by the Company.
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research in novel and innovative drug initiatives. BRL has commenced commercial activities during the year ended March 31, 2010.
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development stage company and of strategic importance to the Company. Accordingly, the management is of the view that there is no
diminution in the value of the investment. Further, the Company has given a letter of fi nancial support to BRL to fund its operations.
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of Biopharmaceuticals. At March 31, 2010, the aggregate amount of Biocon’s interest in the assets, liabilities, income and expenses of
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full fl edged operations only recently, and considering the future business potential, management believes that there is no other than
temporary diminution in the value of the investment.
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equity stake held by CIMAB in BBPL. The sale is yet to be consummated as at March 31,2010.
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development, marketing and distribution of biopharmaceuticals in the Gulf region. As at March 31, 2010, the aggregate amount of
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NeoBiocon has commenced marketing / distribution activities recently, management believes that there is no other than temporary
diminution in the value of the investment.
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of shares to/ by employees of the Company and its subsidiaries under the ESOP Scheme. Also refer Note 3 in Schedule 17.
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worth. As Vaccinex is a development stage enterprise and of strategic importance to the Company, management believes that there is no
other than temporary diminution in the value of this investment.
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4,186,382 3,466,855
Aggregate value of unquoted investments 4,064,261 3,345,417
Aggregate value of quoted investments (cost) 122,121 121,438
Aggregate value of quoted investments (market value) 1,567,127 1,009,947
(a) Other Investments include current and unquoted investments of the ESOP Trust of Rs 73,198 (March 31, 2009 -
Rs 32,671)
Biocon Limited
(a) Balances with scheduled banks in current accounts and deposit account include the balances of the ESOP Trust of Rs 186,826 (March 31, 2009 - Rs 4,800)
and Rs Nil (March 31, 2009 - Rs 2,168), respectively.
11. Loans and advances (Unsecured and considered good, unless March 31, 2010 March 31, 2009
otherwise stated)
Advances recoverable in cash or in kind or for value to be received 300,193 123,749
Intercorporate loans to Subsidiaries / Joint Venture Company 1,914,754 2,024,938
Other Receivables 1,278,937 187,033
Duty drawback receivable, net of provision of Rs 3,797 (March 31, 2009 - Rs 238) 4,610 6,208
Deposits 121,237 70,961
Balances with Customs, Excise and Sales Tax Authorities 357,427 243,488
MAT Credit entitlement - 87,068
Advance income-tax, net of provision 53,553 59,287
4,030,711 2,802,732
(a) Advances recoverable in cash or in kind or for value to be received include amounts due from employees to the ESOP Trust of Rs 5,724 (March 31, 2009 -
Rs 6,226)
(b) Included under advance tax is Rs Nil (March 31, 2009 - Rs 13,998) and provision for taxation of Rs 17,403 (March 31, 2009 - Rs 9,520) of the ESOP Trust.
(c) Included under Intercorporate loans are amounts due from companies under the same management :
(i) Subsidiary March 31, 2010 March 31, 2009
Clinigene 288,720 290,735
Maximum amount outstanding at any time during the year 293,785 359,629
Biocon SA 1,367,775 1,416,692
Maximum amount outstanding at any time during the year 1,616,762 1,489,215
(ii) Joint Venture Company
BBPL 258,259 317,511
Maximum amount outstanding at any time during the year 970,375 388,746
(d) Dues from companies under the same management
(i) BBPL 727 1,073
Maximum amount outstanding at any time during the year 1,200 1,200
(ii) Syngene 68,574 -
Maximum amount outstanding at any time during the year 207,008 -
(iii) Biocon SA 220,105 185,960
Maximum amount outstanding at any time during the year 220,105 185,960
(iv) Biocon Research 976,199 -
Maximum amount outstanding at any time during the year 1,221,567 -
Biocon Limited
12. Current liabilities and provisions March 31, 2010 March 31, 2009
Current Liabilities
Sundry Creditors
Capital
Others
Advances from customers
Deferred revenues
Balance in current account with bank representing book overdraft
Interest accrued but not due
Investor Education and Protection Fund shall be credited by
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Other liabilities
3,816,243 2,196,970
Provisions
Proposed dividend 700,000
Tax on proposed dividend
Leave encashment
Gratuity
Superannuation
4,648,719 2,956,942
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The above disclosures are provided by the Company based on the information available with the Company in respect of the registration status of it’s vendors/
suppliers.
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Dividend earned
On Current investments (non trade)
Gain on investments sold, net
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658,327 747,738
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*Excise duty on sales amounting to Rs 300,281 (March 31, 2009 - Rs 257,134) has been reduced from sales in profit and loss account and excise duty on
increase/decrease in stock amounting to Rs 1,239, (March 31, 2009 - Rs 255) has been considered as (income)/expense in Schedule 14 of financial statements.
**Repair and maintenance include spare parts of Rs 91,060 (March 31, 2009 - Rs 58,694) of which Rs 65,252 (March 31, 2009 - Rs 44,873) were purchased
indigenously.
Biocon Limited
15. Research and development expenses March 31, 2010 March 31, 2009
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the Company have been disclosed under the appropriate account heads.
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Salaries, wages and bonus
Employee stock compensation expense 3,300
Lab consumables 222,018
Travel and Conveyance
Amortisation of IP Assets
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283,002
Professional charges
Others
Recharge of Research expenses for Co Development Product
624,831 598,062
16. Interest and fi nance charges March 31, 2010 March 31, 2009
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Bank charges
19,910 49,371
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c. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external
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amount is the greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future cash fl ows are
discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or reversed depending on
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by charging usual depreciation if there was no impairment.
d. Intangible assets
Intellectual Property rights/marketing rights
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future sales from the use of the said intangible asset, i.e., over their estimated useful lives not exceeding ten years.
Computer Software
Software which is not an integral part of the related hardware is classifi ed as an intangible asset and is being amortised over a period of
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Research and Development Costs
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except for development costs which relate to the design and testing of new or improved materials, products or processes or for existing
products in new territories which are recognised as an intangible asset to the extent that it is expected that such assets will generate
future economic benefi ts. Research and development expenditure of a capital nature is added to fi xed assets. Development costs carried
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The carrying value of intellectual property/marketing rights and development costs is reviewed for impairment annually when the asset is
not yet in use, and otherwise when events or changes in circumstances indicate that the carrying value may not be recoverable.
e. Inventories
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materials production of inventories are not written down below cost if the fi nished products in which they will be
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Customs duty on imported raw materials (excluding stocks in the bonded warehouse) is treated as part
of the cost of the inventories.
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goods manufacturing overheads based on normal operating capacity. Cost of fi nished goods includes excise
duty.
Traded goods (HP>KH?<HLM:G=G>MK>:EBS:;E>O:EN>HLMBG<EN=>LMA>INK<A:L>IKB<>:G=HMA>K:LLH<B:M>=<HLML
directly incurred in bringing the inventory to its present location.
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costs necessary to make the sale.
f. Revenue recognition
.>O>GN>BLK><H@GBS>=MHMA>>QM>GMMA:MBMBLIKH;:;E>MA:MMA>><HGHFB<;>G>VMLPBEEWHPMHMA>HFI:GR:G=MA>K>O>GN><:G;>
reliably measured.
(i) Revenue is recognised when the signifi cant risks and rewards of ownership of the goods have passed to the buyer and are recorded net
of excise duty, sales tax and other levies. For the purposes of disclosure in these fi nancial statements, sales are refl ected gross and net of
excise duty in the profi t and loss account.
g. Investments
Investments that are readily realisable and intended to be held for not more than twelve months are classified as current investments. All
other investments are classified as long-term investments. Long-term investments are stated at cost. However, provision for diminution in
value is made to recognise a decline other than temporary in the value of the investments. Current investments are carried at lower of cost
and fair value and determined on an individual investment basis.
h. Retirement benefits
(i) Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and
Loss Account of the year when the contributions to the government funds are due.
(ii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method
made at the end of each financial year. The gratuity benefit of the Company is administered by a trust formed for this purpose through
the group gratuity scheme.
(iii) Leave encashment liability is in accordance with the rules of the Company. Short-term compensated absences are provided for based
on estimates. Long-term compensated absences are provided for based on actuarial valuation made at the end of each financial year. The
actuarial valuation is done as per projected unit credit method made at the end of each financial year.
(iv) Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
Conversion
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when
the values were determined.
Exchange Differences
Exchange differences arising on a monetary item that, in substance, form part of the company’s net investment in a non-integral foreign
operation is accumulated in a foreign currency translation reserve in the financial statements until the disposal of the net investment, at
which time they are recognised as income or as expenses.
Exchange differences, in respect of accounting periods commencing on or after December 7, 2006, arising on reporting of long-term
foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in
previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the
cost of the asset and are depreciated over the balance life of the asset, and in other cases, are accumulated in a “Foreign Currency
Monetary Item Translation Difference Account” in the financial statements and amortized over the balance period of such long-term asset/
liability but not beyond accounting period ending on or before March 31, 2011.
Exchange differences arising on the settlement of monetary items not covered above, or on reporting such monetary items at rates
different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as
income or as expenses in the year in which they arise.
j. Income tax
Tax expense comprises current, deferred and fringe benefi t tax. Current income tax and fringe benefi t tax is measured at the amount
>QI><M>=MH;>I:B=MHMA>M:Q:NMAHKBMB>LBG:<<HK=:G<>PBMAMA>%G=B:G%G<HF>0:Q<M >?>KK>=BG<HF>M:Q>LK>W><MLMA>BFI:<M
of current period timing differences between taxable income and accounting income for the year net of reversals of timing differences of
earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax
assets are recognised only to the extent that there is reasonable certainty that suffi cient future taxable income will be available against
which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses,
all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against
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deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that suffi cient future taxable
income will be available against which such deferred tax assets can be realised.
0A><:KKRBG@:FHNGMH?=>?>KK>=M:Q:LL>ML:K>K>OB>P>=:M>:<A;:E:G<>LA>>M=:M>0A>HFI:GRPKBM>L=HPGMA><:KKRBG@:FHNGMH?:
deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that suffi cient future taxable
BG<HF>PBEE;>:O:BE:;E>:@:BGLMPAB<A=>?>KK>=M:Q:LL>M<:G;>K>:EBL>=GRLN<APKBM>=HPGBLK>O>KL>=MHMA>>QM>GMMA:MBM;><HF>L
reasonably certain or virtually certain, as the case may be, that suffi cient future taxable income will be available.
Minimum Alternative Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the
HFI:GRPBEEI:RGHKF:EBG<HF>M:Q=NKBG@MA>LI><BV>=I>KBH=%GMA>R>:KBGPAB<AMA>)0<K>=BM;><HF>L>EB@B;E>MH;>K><H@GBS>=:L
an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of
India, the said asset is created by way of a credit to the profi t and loss account and shown as MAT Credit Entitlement. The Company
reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no
longer convincing evidence to the effect that Company will pay normal Income Tax during the specifi ed period.
k. Borrowing costs
Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalised as a part of the cost of the
asset. Other borrowing costs are recognised as an expense in the year in which they are incurred.
n. Operating lease
Where the Company is a Lessee
Leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classifi ed as operating leases.
(>:L>I:RF>GMLNG=>KHI>K:MBG@E>:L>L:K>K><H@GBL>=:L:G>QI>GL>HG:LMK:B@AMEBG>;:LBLHO>KMA>E>:L>M>KF
p. Provisions
A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present
value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect the current best estimates.
s. Derivative Instruments
As per the ICAI Announcement, accounting for derivative contracts, other than those covered under AS-11, are marked to market on a
portfolio basis, and the net loss after considering the offsetting effect on the underlying hedge item is charged to the profit and loss
account. Net gains are ignored.
Grant I
In September 2001, the Company granted 71,510 options under the ESOP Plan 2000 to be exercised at a grant price of Rs 10 (before
adjusting bonus and share split). The options vested with the employees equally over a four year period.
Biocon Limited
Grant II
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share.
The options vest with the employees equally over a four year period.
Details of Grant II
Particulars March 31, 2010 March 31, 2009
No. of Options Weighted Average No. of Options Weighted Average
Exercise Price (Rs)* Exercise Price (Rs)
Outstanding at the beginning of the year
10,780
Granted during the year
Forfeited during the year
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Exercisable at the end of the year
Weighted average remaining contractual life (in years) 1
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Grant III
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determined for the IPO through the book building process. The options vest with the employees equally over a four year period.
Grant IV
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grade of the employees. These options are exercisable at a discount of 20% to the market price of Company’s’ shares on the date of grant.
Details of Grant IV
Particulars March 31, 2010 March 31, 2009
No. of Options Weighted Average No. of Options Weighted Average
Exercise Price (Rs)* Exercise Price (Rs)
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
=CNLMF>GM?HKBLLN:G<>H?HGNLLA:K>L=NKBG@MA>R>:K
Exercised during the year
138 27,380
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
Weighted average remaining contractual life (in years) 2.3
:=CNLM>=?HKMA>>??><MH?;HGNLLA:K>L
Details of Grant V
Particulars March 31, 2010 March 31, 2009
No. of Options Weighted Average No. of Options Weighted Average
Exercise Price (Rs)* Exercise Price (Rs)
Outstanding at the beginning of the year 69,710 232 - -
Granted during the year 63,460 152 34,855 463
Forfeited during the year 44,975 237 - -
Adjustment for issuance of Bonus shares during the year - - 34,855 -
Exercised during the year - - - -
Expired during the year - - - -
Outstanding at the end of the year 88,195 170.9 69,710 231.5*
Exercisable at the end of the year - - - -
Weighted average remaining contractual life (in years) 6.0 - 6.3 -
Weighted average fair value of options granted (Rs) 130.0* - 110.0 -
The average market price of the Company’s share during the year ended March 31, 2010 is Rs 237 (March 31, 2009 Rs 163.42) per share
(after adjustment for the bonus shares)
Assumptions used in determination of the fair value of the stock options under the Black Scholes Model are as follows:
A summary of movement in respect of the shares held by the ESOP Trust is as follows:
4. Reconciliation of basic and diluted shares used in computing earnings per share March 31, 2010 March 31, 2009
Basic outstanding shares 200,000,000 200,000,000
(>LL/A:K>LPBMAMA>!/+,0KNLM
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Weighted average shares outstanding and potential options outstanding
: NKBG@MA>R>:K>G=>=):K<A
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transactions. The Company recorded mark to market losses in respect of foreign exchange forward contracts including realised gains/losses on termination/
cancellation of said contracts.
; NKBG@MA>R>:K>G=>=):K<A
MA>HFI:GRK><HK=>=:PKBM>;:<DH?NGNMBEBL>=IKHOBHLBHG?HK<HGMBG@>G<>LK>E:MBG@MHMK:GL?>KLH?BML>GSRF>
business of Rs 20,000, created in earlier years.
0$%//,!$/!!*%*0!*0%+*((5(!"0(*'
Sl. Name of the related party Relationship Description April 1, 2009 to Balance as at April 1, 2008 to Balance as at
No. March 31, 2010 March 31, 2010 March 31, 2009 March 31, 2009
Income/(expenses) (Payable)/receivable Income/(expenses) (Payable)/receivable
1 Kiran Mazumdar Shaw Managing Director Salary and perquisites (14,140) - (11,769) -
Other Liabilities - (2,190) - (691)
2 John Shaw Director Salary and perquisites (8,072) - (7,369) -
3 Syngene Subsidiary Power and facility charges recovered 233,256 - 156,131 -
Rent income 3,309 - 3,090 -
Management charges received - - 2,400 -
Expenses incurred on behalf of the related party 20,032 - 11,996 -
Sale of goods 1,919 - 14,935 -
Sale of Fixed Asset 15,163 - - -
Research Services received (118,877) - - -
Rent deposit received - (2,135) - (2,135)
Advance given - 42,300 - -
Sundry Debtors - 80,607 - 64,353
Other receivable - 68,574 - -
Sundry Creditors - (46,907) - -
Guarantee given on behalf of related party to Custom & Excise Department - 217,500 - 217,500
(‘CED’)
Guarantee given by related party to CED on behalf of the Company - (465,000) - (465,000)
4 Clinigene Subsidiary Management charges received - - 1,200 -
Research Services received (110,569) - (109,940) -
Expenses incurred on behalf of the related party 1,872 - 1,336 -
Welfare Expenses - Health Checkup (3,355) - (3,564) -
Sundry Creditors - (51,529) - (26,630)
Unsecured Loan given - 288,720 - 290,735
Guarantee given on behalf of related party to Custom & Excise Department
(‘CED’) - 27,205 - 27,205
5 BBPL 51% Joint Venture Interest income on unsecured loan given 42,609 - 23,987 -
(Also see note (j) below) Power and facility charges recovered 40,986 - 37,175 -
Rent income from related party 488 - 814 -
Management charges received 1,200 - 1,200 -
Vialling charges recovered 11,881 - 11,014 -
Expenses incurred on behalf of the related party 1,670 - 420 -
Purchase of Intangible assets - - (128,850) -
Research and Development Expenses (52,376) - - -
Rent paid - - (308) -
Repairs and Maintenance - Facility charges (223,940) - (52,370) -
Professional Charges - Personnel Deputation Charges (7,598) - (8,739) -
Purchase of materials (134,993) - (121,467) -
Unsecured Loan given - 258,259 - 317,511
Sundry Debtors - 7,490 - 7,474
Loans and Advances - 727 - 1,073
Sundry Creditors - (83,237) - (27,547)
Sl. Name of the related party Relationship Description April 1, 2009 to Balance as at April 1, 2008 to Balance as at
No. March 31, 2010 March 31, 2010 March 31, 2009 March 31, 2009
Income/(expenses) (Payable)/receivable Income/(expenses) (Payable)/receivable
Rent deposit received
#N:K:GM>>@BO>GHG;>A:E?H?K>E:M>=I:KMRMHNLMHF!Q<BL> >I:KMF>GM
(‘CED’)
Guarantee given to Bank on behalf of related party for term loan
BH<HG.>L>:K<A(BFBM>= /N;LB=B:KR Rent received 801
Sale of Intangible Asset
Research and development cross charge
Product development expenses cross charge
Expenses incurred on behalf of the related party
Other receivable
Equity Contribution
7 Biocon SA Subsidiary Interest Income
Licensing fees
Expenses incurred on behalf of the related party
Unsecured Loan given
Equity contribution
Other receivable
QBHKI#F;$ Fellow Subsidiary Purchase of lab consumables
Expenses incurred on behalf of the related party
Sundry Debtors
Sundry Creditors (287)
*>HBH<HG"6(( &HBGM2>GMNK> /:E>H?@HH=L
Expenses incurred on behalf of the related party
Sundry Debtors
10 IATRICa Inc. Associate Research and Development fees
Investment in preferred stock
11 Glentec International Enterprise owned by key Rent expenses paid
management personnel
,'LLH<B:M>L Proprietary fi rm of Rent expenses paid (380)
Relative of Director
NKBG@MA>R>:K>G=>=):K<A
the Company has transferred certain development and marketing rights to Biocon SA for certain prH=N<ML?HKMA>!NKHI>:GK>@BHG:M:<HGLB=>K:MBHGH?.L
!NKHFBEEBHG,>G=BG@K><>BIMH?
regulatory approvals, the same has been treated as deferred revenues by the Company as at March 31, 2010.
(b) During the year, the Company has transferred certain development and marketing rights to Biocon Resear<A(M=?HK+K:E%GLNEBG:G=)L:ELHK>?>KGHM>::G=;BG/<A>=NE>BB:;HO>?HK<>KM:BGM>KKBMHKB>L:M:<HGLB=>K:MBHGH?.L
1/FBEEBHG:G=.L
1/FBEEBHGKespectively.
(c) Prof Charles L Cooney and Dr Bala S Manian, non executive directors of the company, are Chairman and member of Scientifi c Advisory Board of the Company and are paid sitting fees of Rs Nil (Mar<A
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(d) Expenses incurred on behalf of the related party include Recharge of software license fees, canteen expenses, and Employee Stock Compensation Charges.
(e) The Company has granted an unsecured loan facility to BBPL upto Rs 300,000, carrying interest at bank rates, to support BBPL’s operational costs and capital expenditur>0A>EH:GBLK>I:R:;E>HO>K:I>KBH=H?R>:KL?Kom the date of
commencement of commercial operations of BBPL. Further
=NKBG@MA>R>:KMA>HFI:GRA:L:ELH@BO>G:G:==BMBHG:EEH:GH?.L
<:KKRBG@BGM>K>LM:MMH,(?HKK>I:RF>GMH?MA>(H:GMH/M:M>:GDH?%G=B:,(A:L?NEER
repaid such additional loan during the year.
(f) The Company has granted an interest free unsecured loan facility to Clinigene, to support Clinigene’s operational costs and capital expenditure and repayable by March 31, 2011.
(g) NKBG@MA>R>:K>G=>=):K<A
MA>HFI:GRA:=@K:GM>=:GNGL><NKed loan of Euro 21 million to Biocon SA, at the rate of 3% per annum and repayable on demand. During the year, the Company has granted additional loan of
!NKH)BEEBHG
Financials
(h) NKBG@MA>R>:K>G=>=):K<A
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(i) !??><MBO>+<MH;>K
MA>HFI:GRL/!6 >O>EHI>K BOBLBHGA:L>GM>Ked into service contracts with SEZ unit of BBPL and SEZ unit of Syngene for provision of certain facilities and services.
C On March 31, 2010, CIMAB SA, BBPL, Biocon SA and the Company, have entered into an agreement whereby Biocon SA would acquir>MA>>JNBMRLM:D>A>E=;R%)/BG,(0A>MK:GL:<MBHGA:LGHM;>>G<HGLNFF:M>=:L:M
March 31, 2010.
7. Supplementary profit and loss data March 31, 2010 March 31, 2009
(a) Payments to auditors (included in professional charges)
(i) Statutory audit (including limited review of quarterly results) 2,475 1,275
(ii) Tax audit 125 125
(iii) Other matters (certification and other services) 275 275
(iv) Reimbursement of out-of-pocket expenses 339 310
3,214 1,985
(b) Managerial remuneration
(i) Remuneration to Managing Director
Salary 9,833 8,493
Perquisites 2,661 2,791
Leave Encashment 1,119 -
Contribution to provident fund 527 485
14,140 11,769
(ii) Remuneration to whole-time Director
Salary 7,254 6,412
Perquisites 818 957
8,072 7,369
(iii) Computation of net profits in accordance with Section 349 of the Companies Act, 1956 (‘the Act’)
Net profit for the year before tax (before exceptional items) 2,762,283 2,142,088
Less:
Exceptional items being mark to market loss in respect of foreign exchange forward contracts - (1,017,450)
A 2,762,283 1,124,638
Add:
Depreciation/amortisation provided in the accounts 797,290 742,830
Loss on sale of fixed asset 28,282 -
Managerial remuneration 22,212 19,138
Provision for bad and doubtful debts 15,306 15,777
B 863,090 777,745
Less:
Depreciation/amortisation under Section 350 of the Act 797,290 742,830
C 797,290 742,830
Net Profit under Section 198 of the Act (A+B-C) 2,828,083 1,159,553
Maximum remuneration payable to whole-time directors 282,808 115,955
Remuneration paid to Managing Director 14,140 11,769
Remuneration paid to whole-time Director 8,072 7,369
As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the directors is
not ascertainable and, therefore, not included above.
(c) Information pursuant to the provisions of paragraphs 3, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956 (‘the Act’):
* Exempted from the licensing provisions of the Industries (Development and Regulation) Act, 1951 in terms of notification No.S.O.477(E) dated July 25, 1991.
** Installed capacity has not been disclosed as these are variable and subject to changes in product mix, and utilisation of manufacturing facilities, given the
nature of operations.
*HM>EHLBG@LMH<DJN:GMBMB>L:K>:?M>K:=CNLMBG@PKBM>H??H?BM>FL=N>MHH;LHE>L<>G<>
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ascertained during physical count, write off of obsolete items, etc.
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8. Commitments
(a) Capital commitments March 31, 2010 March 31, 2009
Estimated amount of contracts remaining to be executed on capital account and not provided for, net
of advances . 947,617 106,501
(b) Operating lease commitments
Where the Company is a lessee:
(i) Rent
The Company has entered into various agreements for lease of building / office space which expires
over a period upto September 2016. Some of these lease arrangements have price escalation clause.
There are no restrictions imposed under the lease arrangements. Gross rental expenses for the year
aggregate to Rs 16,039 (March 31, 2009 - Rs 15,075). The committed lease rentals in future are as
follows :
Not later than one year 11,313 14,097
Later than one year and not later than five years 22,486 21,604
Later than five years 13,048 1,981
(ii) Vehicles
The Company has taken vehicles for certain employees under operating leases, which expire in March
2014. Gross rental expenses for the year aggregate to Rs 10,697 (March 31, 2009 - Rs 8,984). The
committed lease rental in the future are:
Not later than one year 13,010 9,024
Later than one year and not later than five years 22,699 13,246
Later than five years - -
Where the Company is a Lessor:
(i) Rent
The Company has leased out certain parts of its building (including fit outs), which expire over a period
up to 2016. Gross rental income for the year aggregate to Rs 25,403 (March 31, 2009 - Rs 25,313).
Further, minimum lease receipts under operating lease are as follows:
Not later than one year 24,790 24,688
Later than one year and not later than five years 89,832 92,474
Later than five years 50,760 72,337
Biocon Limited
10. Foreign exchange forward contracts and unhedged foreign currency exposures
The Company has entered into foreign exchange forward and option contracts to hedge highly probable forecasted transactions in foreign currency.
L:M):K<A
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In respect of foreign currency loans taken and granted. March 31, 2010 March 31, 2009
Foreign exchange forward contracts to buy 1/
Nil
Foreign exchange forward contracts to sell (Euro to USD) EURO 20,000 EURO 20,000
Foreign exchange forward contracts to sell (USD to INR) USD 30,000 USD 30,000
In respect of highly probable forecasted sales/export collection:
European style option contracts with periodical maturity dates up to August 2011 1/
1/
Foreign exchange forward contract to sell (USD to INR) 1/
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Sundry debtors
Other receivables
Exchange earners foreign currency account
Loan to Subsidiary
Sundry Creditors
Packing Credit
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The Company evaluates these assumptions based on its long-term plans of growth and industry standards and the expected contribution to the fund during the
year ending March 31, 2011, is approximately Rs 11,118 (March 31, 2010 - Rs 10,064).
The nature of allocation of the fund is only in debt based mutual funds of high credit rating.
The primary reporting of the Company has been performed on the basis of business segment. The Company operates in a single business segment of
BHIA:KF:<>NMB<:EL<<HK=BG@ERGH:==BMBHG:E=BL<EHLNK>L:K>K>JNBK>=:LI>K<<HNGMBG@/M:G=:K=HG/>@F>GM.>IHKMBG@?HKMA>R>:K>G=>=):K<A
2010.
Geographical segments
Secondary segmental reporting is performed on the basis of the geographical location of customers. The management views the Indian market and export
markets as distinct geographical segments. The following is the distribution of the Company’s sale by geographical markets
0A>?HEEHPBG@BLMA><:KKRBG@:FHNGMH?L>@F>GM:LL>ML;R@>H@K:IAB<:E:K>:BGPAB<AMA>:LL>ML:K>EH<:M>=
EEVQ>=:LL>ML:G=BGM:G@B;E>L:K>EH<:M>=BG%G=B:
(a) The Company has entered into transactions of sale of product to a private company amounting to Rs 1,812 , during the year ended March 31, 2010, that
K>JNBK>IKBHK:IIKHO:E?KHF>GMK:E#HO>KGF>GMNG=>K/><MBHGH?MA>HFI:GB>L<M
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have been approved by the Board of Directors of the Company. The Company is in the process of fi ling an application with the Central Government for such
approval and for condonation of delay in making such application.
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For S.R. BATLIBOI & ASSOCIATES For and on behalf of the Board of Directors of Biocon Limited
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Chartered Accountants
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Auditors’ Report
To the Board of Directors of Biocon Limited
We have audited the attached consolidated balance sheet of Biocon Limited (‘the Company’) and its subsidiaries, associate and joint
venture [together referred to as ‘the Group’], as at March 31, 2010, and also the consolidated profit and loss account and the
consolidated cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the
Company’s management and have been prepared by the management on the basis of separate financial statements and other financial
information regarding components. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not audit the financial statements of a subsidiary, whose financial statements reflect total assets of Rs 2,433 million as at March
31, 2010, total revenue of Rs 0.03 million and net cash outflows amounting to Rs 33 million for the year then ended.
We did not audit the financial statements of another subsidiary, whose financial statements reflect total assets of Rs 3,173 million as at
December 31, 2009, total revenue of Rs 9,117 million and net cash inflows amounting to Rs 488 million for the year then ended.
The consolidated financial statements include total assets of Rs 17 million as at March 31, 2010 and total revenue of Rs 24 million and net
cash outflow of Rs 1 million for the year then ended, being the proportionate share in the joint venture company which are based on
financial statements audited by the other auditors.
The financial statements and other financial information of the above subsidiaries and joint venture company have been audited by other
auditors whose report has been furnished to us, and our opinion is based solely on the report of other auditors.
We report that the consolidated financial statements have been prepared by the Company’s management in accordance with the
requirements of Accounting Standard (AS) 21, Consolidated financial statements, Accounting Standard (AS) 23, Accounting for
investments in Associates in Consolidated Financial Statements and Accounting Standard (AS) 27, Financial Reporting of Interests in Joint
Ventures [notified pursuant to the Companies (Accounting Standards) Rules, 2006 (as amended)].
Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial
information of the components, and to the best of our information and according to the explanations given to us, we are of the opinion
that the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally
accepted in India:
(a) in the case of the consolidated balance sheet, of the state of affairs of the Group as at March 31, 2010;
(b) in the case ofthe consolidated profit and loss account, of the profit for the year ended on that date; and
(c) in the case ofthe consolidated cash flow statement, of the cash flows for the year ended on that date.
The schedules referred to above and notes to accounts form an integral part of the Consolidated Balance Sheet
As per our report of even date
Consolidated Profit and Loss Account for the year ended March 31, 2010
(All amounts in Indian Rupees thousands, except share data and per share data)
Schedule March 31, 2010 March 31, 2009
INCOME
Gross sales 21,009,564 14,119,750
Less : Excise Duty 645,944 401,265
Net sales 20,363,620 13,718,485
Contract research and manufacturing services 2,807,178 2,245,502
Licensing and development fees 507,357 122,735
Other income 14 370,208 645,532
24,048,363 16,732,254
EXPENDITURE
Manufacturing, contract research and other expenses 15 18,963,300 12,853,129
Interest and finance charges 17 168,920 176,615
19,132,220 13,029,744
PROFIT BEFORE DEPRECIATION, EXCEPTIONAL ITEMS AND TAXES 4,916,143 3,702,510
Depreciation and Amortisation 7 (i) & 7 (ii) 1,401,401 1,102,519
PROFIT BEFORE TAXES AND EXCEPTIONAL ITEMS 3,514,742 2,599,991
Provision for income-tax
Current tax 457,739 190,095
Less : MAT Credit Entitlement (13,117) (92,201)
Deferred taxes 6 42,059 1,263
Fringe Benefits tax - 19,227
PROFIT AFTER TAXES, BEFORE EXCEPTIONAL ITEMS 3,028,061 2,481,607
Shares of Losses in Associate Company - (7,199)
Minority interest (95,619) (71,306)
PROFIT AFTER TAXES, BEFORE EXCEPTIONAL ITEMS 2,932,442 2,403,102
Exceptional items, net 18(5) - (1,549,211)
Add/ (Less) : Tax effect on exceptional items - 77,326
PROFIT FOR THE YEAR 2,932,442 931,217
Balance brought forward from previous year 9,363,827 9,246,379
PROFIT AVAILABLE FOR APPROPRIATION 12,296,269 10,177,596
Proposed dividend on equity shares 700,000 600,000
Tax on proposed dividend 74,136 101,970
Transfer to general reserve 248,357 111,799
BALANCE, TRANSFERRED TO BALANCE SHEET 11,273,776 9,363,827
Earnings per share (equity shares, par value of Rs 5 each)
Basic (in Rs) 18(4) 15.08 4.83
Diluted (in Rs) 14.84 4.69
Weighted average number of shares used in computing earnings per share 18(4)
Basic 194,490,677 192,944,832
Diluted 197,626,701 198,359,510
Notes to Consolidated Accounts 18
The schedules referred to above and notes to accounts form an integral part of the Consolidated Profit and Loss Account
As per our report of even date
3. Minority interest
Minority interest represents that part of the net profit and net assets of Syngene to the extent of 170 shares (0.01 per cent), BBPL to the extent of 8,612,000
shares (49 per cent) and 22% of AxiCorp, which are attributable to interests which are not owned, directly or indirectly by Biocon.
March 31, 2010 March 31, 2009
The share of the net assets attributable to the minority shareholders is as follows:
As per last balance sheet 247,686 (73,218)
Interest of minority Shareholders of AxiCorp GmbH - 249,598
Foreign currency translation adjustment (5,405) -
Profit for the year attributable to minority shareholders * 95,619 71,306
337,900 247,686
* Amount for the year ended March 31, 2010 includes Rs 31,894 (March 31, 2009 - Rs 41,414) pertaining to share of losses of the Joint Venture partner in
BBPL absorbed by Biocon.
7. (i) Fixed assets Balance at the Acquisition Foreign Additions Deletions Balance at the
beginning of during the currency during the during the end of the
the year year Translation year year year
Adjustment
Gross block
Land
Freehold (revalued) 8,967 - - - - 8,967
Freehold (others) 94,331 - - - - 94,331
Leasehold 226,420 - - 50,625 - 277,045
Buildings (revalued) 16,561 - - - - 16,561
Buildings (others) 2,910,993 - - 432,538 - 3,343,531
Leasehold improvements 3,191 - - - - 3,191
Plant and machinery 9,715,744 - (1,227) 1,948,035 148,202 11,514,350
Research and development equipment 900,520 - - 113,763 - 1,014,283
Furniture and fixtures 200,519 - (90) 17,820 102 218,147
Vehicles 20,617 - - 5,535 1,953 24,199
14,097,863 - (1,317) 2,568,316 150,257 16,514,605
Year ended March 31, 2009 11,547,886 83,198 - 2,471,968 5,189 14,097,863
Accumulated depreciation
Buildings (revalued) 16,561 - - - - 16,561
Buildings (others) 352,972 - - 128,448 - 481,420
Leasehold improvements 796 - - 128 - 924
Plant and machinery 2,803,861 - (530) 1,093,662 101,071 3,795,922
Research and development equipment 330,652 - - 97,217 - 427,869
Furniture and fixtures 97,867 - (56) 29,176 102 126,885
Vehicles 10,176 - - 3,296 1,528 11,944
3,612,885 - (586) 1,351,927 102,701 4,861,525
Year ended March 31, 2009 2,511,059 32,432 - 1,069,494 100 3,612,885
Net block
Land
Freehold (revalued) 8,967 8,967
Freehold (others) 94,331 94,331
Leasehold 226,420 277,045
Buildings (revalued) - -
Buildings (others) 2,558,021 2,862,111
Leasehold improvements 2,395 2,267
Plant and machinery 6,911,883 7,718,428
Research and development equipment 569,868 586,414
Furniture and fixtures 102,652 91,262
Vehicles 10,441 12,255
10,484,978 11,653,080
Year ended March 31, 2009 9,036,827 10,484,978
Notes :
(a) Certain freehold land and buildings were revalued on November 1, 1994, based on the estimated replacement cost after considering depreciation up to
that date, as per valuers reports and the resultant surplus of Rs 34,529 was credited to revaluation reserve. Of this reserve, Rs 25,040 (March 31, 2009 - Rs
25,040) has been transferred to the profit and loss account for depreciation on these assets till March 31, 2008 or adjusted on the sale of these assets.
(b) On December 5, 2002, Karnataka Industrial Areas Development Board (‘KIADB’) allotted land aggregating to 26.75 acres to the Company for Rs 64,200
on a lease-cum-sale basis for a period of 6 years, extended subsequently for further period of 14 years. During the year ended March 31, 2005, the Company
acquired an additional 41.25 acres of land for Rs 99,417 from KIADB. During the quarter ended June 30, 2005, the Company paid an advance of Rs 56,320
towards allotment of additional 19.68 acres of land, offered to the Company by KIADB on December 20, 2003. The Company has received the possession
certificate from KIADB in January 2006 and entered into an agreement with KIADB to acquire this plot of Land on lease cum sale basis for a period of 20
years during the year ended March 31, 2007. The registration for a part of the land under this lease is pending settlement of certain disputes in respect of
claims made against KIADB.
(c) During the year ended March 31, 2008, the Company has been allotted land measuring approximately 50 acres at the Jawaharlal Nehru Pharma City
Vishakapatnam, Andhra Pradesh, on a long term lease basis for a consideration of Rs 260,100. As at March 31, 2010 , the Company has paid the entire
consideration towards the lease and is in the process of completing the formalities for registering the said lease in favour of the Company.
(d) Foreign exchange (gain)/loss of Rs (43,768) (March 31,2009 - Rs 35,270) on long term foreign currency monetary liabilities relating to acquisition of a
depreciable capital asset has been adjusted with the cost of such asset and is being depreciated over the balance life of the assets.
(e) Additions to fixed assets and capital work in progress during the year ended March 31, 2010, include Rs 9,603 (March 31, 2009 - Rs 43,177) being
interest and net of (gain)/loss Rs (13,403) (March 31,2009 - Rs 73,201) being foreign exchange loss/(gain), incurred on foreign currency denominated loans
adjusted under AS-16 -Borrowing costs.
(f) Additions to fixed assets and capital work in progress during the year ended March 31, 2010 include direct expenses of power, utility expenses amounting
to Rs 10,325 [March 31, 2009 - Rs 28,016] and Rs 8,076 [March 31, 2009 - Rs 2,537], respectively, attributable to the construction of the assets.
(g) Syngene has entered in to an agreement with a customer, which grants the latter an option to purchase fixed assets with gross block of Rs 1,544,027
(March 31, 2009 - Rs 1,314,320) as at March 31, 2010 relating to a particular project, upon satisfactory of certain terms and conditions.
(h) During the year ended March 31, 2009, consequent to the acquisition of majority equity holding in AxiCorp GmbH by Biocon SA, additions to the gross
block and accumulated depreciation relating to AxiCorp have been included.
(i) On December 1, 2009 the Company completed the purchase of Active Pharma Ingredient business of M/s IDL Speciality Chemicals Limited. The assets
acquired have been capitalised at their fair values in the books of the Company.
9. Inventories (at lower of cost or net realisable value) March 31, 2010 March 31, 2009
Raw materials 1,431,927 1,302,990
Goods-in-bond / goods-in-transit (Raw materials) 81,572 73,220
Packing materials 83,711 68,266
Work-in-progress 1,416,558 1,126,704
Finished goods, including traded goods of Rs 75,124 (March 31, 2009 Rs 96,200) 702,674 620,631
3,716,442 3,191,811
10. Sundry debtors (Unsecured) March 31, 2010 March 31, 2009
Debts outstanding for a period exceeding six-months
Considered good 169,249 244,702
Considered doubtful 73,049 56,231
Other debts
Considered good 4,292,025 3,422,127
4,534,323 3,723,060
Less: Provision for doubtful debts 73,049 56,231
4,461,274 3,666,829
Other debts include unbilled revenues of Rs 45,659 (March 31, 2009 - Rs 35,394) with respect to services rendered to customers.
11. Cash and bank balances March 31, 2010 March 31, 2009
Cash on hand 2,173 3,062
Balances with banks:
In current accounts 777,684 98,722
In exchange earners foreign currency account 619,292 8,699
In deposit accounts 103 7,568
1,399,252 118,051
(a) Balances with banks include balance in unclaimed dividend account of Rs 4,644 (March 31, 2009 - Rs 3,866).
(b) Balances with banks include the balances of the ESOP Trust of Rs 186,826 (March 31, 2009 - Rs 6,968)
12. Loans and advances (Unsecured and considered good, unless March 31, 2010 March 31, 2009
otherwise stated)
Advances recoverable in cash or in kind or for value to be received 423,423 199,000
Duty drawback receivable, net of provision of Rs 3,797 (March 31, 2009 - Rs 238) 4,610 6,208
Other Receivables 153,580 -
Deposits 86,762 75,288
Balances with Customs, Excise and Sales tax Authorities 456,240 346,866
MAT Credit entitlement 37,404 111,355
Advance income-tax, net of provision 181,526 208,485
1,343,545 947,202
(a) Advances recoverable in cash or in kind or for value to be received include amounts due from employees to the ESOP Trust of Rs 5,724 (March 31,
2009 - Rs 6,226).
(b) Included under advance tax is Rs Nil (March 31, 2009 - Rs 13,998) and provision for taxation of Rs 17,403 (March 31, 2009 - Rs 9,520) of the ESOP Trust.
13. Current liabilities and provisions March 31, 2010 March 31, 2009
Current Liabilities
Sundry creditors
Capital 438,785 539,995
Others 1,869,785 1,545,505
Advances from customers 284,654 124,718
Deferred revenues 951,438 231,760
Balance in current account with bank represents book overdraft 67,562 100,483
Interest accrued but not due, on loans 4,233 7,370
Investor Education and Protection Fund to be credited by :-
- Unclaimed dividend 4,644 3,866
Other liabilities 1,287,943 1,015,985
4,909,044 3,569,682
Provisions
Proposed dividend 700,000 600,000
Tax on proposed dividend 74,136 101,970
Leave encashment 79,262 86,279
Gratuity 34,826 14,866
Superannuation 2,645 2,645
890,869 805,760
5,799,913 4,375,442
17. Interest and finance charges March 31, 2010 March 31, 2009
Interest paid on:
Packing credit, cash credit from banks 157,434 163,972
[net of amounts capitalised to fixed assets Rs 9,603 (March 31, 2009 - Rs 43,177)]
Bank charges 11,486 12,643
168,920 176,615
Leasehold land on a lease-cum-sale basis are capitalised at the allotment rates currently charged by the Municipal Authorities. Leasehold
improvements are being depreciated over the lease term or useful life whichever is lower. Used assets acquired from third parties are
depreciated on a straight line basis over their remaining useful life of such assets as estimated by an independent external valuer.
The depreciation charge over-and-above the depreciation calculated on the original cost of the revalued assets is transferred from the
revaluation reserve to the consolidated profit and loss account.
Assets individually costing less than Rs 5 are fully depreciated in the year of purchase.
c. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable
amount is the greater of the asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or reversed depending on
changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed
by charging usual depreciation if there was no impairment.
d. Intangible assets
Goodwill
Goodwill represents the excess of the purchase price over the book value of the net assets of the acquired subsidiary company on the date
of investment. Goodwill is not amortised but is tested for impairment on a yearly basis.
Intellectual Property rights, contract rights, manufacturing rights and product licenses
Costs relating to intellectual property rights, contract rights, manufacturing rights and product licenses are capitalized and amortized on a
straightline basis over the period of expected future sales from the use of the said intangible asset, i.e., over their estimated useful lives
not exceeding ten years.
Computer Software
Software which is not an integral part of the related hardware is classified as an intangible asset and is being amortised over a period of
three-five years, being its estimated useful life.
f. Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably
measured.
g. Investments
Investments that are readily realisable and intended to be held for not more than twelve months are classified as current investments. All
other investments are classified as long-term investments. Long-term investments are stated at cost. However, provision for diminution in
value is made to recognise a decline other than temporary in the value of the investments. Current investments are carried at lower of
cost and fair value and determined on an individual investment basis.
h. Retirement benefits
(i) Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and
Loss Account of the year when the contributions to the government funds are due.
(ii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method
made at the end of each financial year. The gratuity benefit of the Group is administered by a trust formed for this purpose through the
group gratuity scheme.
(iii) Leave encashment liability is in accordance with the rules of the Group. Short-term compensated absences are provided for based on
estimates. Long-term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected
unit credit method made at the end of each financial year.
(iv) Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
Biocon Limited & Subisdiaries - IGAAP
(v) In case of foreign subsidiary companies, contributions are made as per the respective country laws and regulations. The same is
charged to Profit and Loss Account on accrual basis. There are no obligations beyond the Company’s contribution.
i. Foreign currency transactions
Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate
between the reporting currency and the foreign currency at the date of the transaction.
Conversion
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when
the values were determined.
Exchange Differences
Exchange differences, in respect of accounting periods commencing on or after 7th December, 2006, arising on reporting of long-term
foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in
previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, are added to or deducted from the
cost of the asset and are depreciated over the balance life of the asset, and in other cases, are accumulated in a “Foreign Currency
Monetary Item Translation Difference Account” in the financial statements and amortized over the balance period of such long-term
asset/liability but not beyond accounting period ending on or before 31st March, 2011.
Exchange differences arising on the settlement of monetary items not covered above, or on reporting such monetary items at rates
different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as
income or as expenses in the year in which they arise.
j. Income tax
Tax expense comprises current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Income Tax Act. Deferred income taxes reflects the impact of current
period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax
assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and
the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets
are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realised. In situations where the Group has unabsorbed depreciation or carry forward tax losses, all
deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against
k. Borrowing costs
Borrowing costs that are attributable to the acquisition and construction of a qualifying asset are capitalised as a part of the cost of the
asset. Other borrowing costs are recognised as an expense in the year in which they are incurred.
n. Operating lease
Where the Company is a Lessee:
Leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases.
Lease payments under operating leases are recognised as an expense on a straight-line basis over the lease term.
o. Segment reporting
Identification of segments:
The Group’s operating businesses are organized and managed separately according to the nature of products manufactured/traded, with
each segment representing a strategic business unit that offers different products to different markets. The analysis of geographical
segments is based on the areas in which the Group’s products are sold.
Inter-segment Transfers:
The Group generally accounts for intersegment sales and transfers at an agreed marked-up price.
Biocon Limited & Subisdiaries - IGAAP
s. Derivate Instruments
As per the ICAI Announcement, accounting for derivative contracts, other than those covered under AS-11, are marked to market on a
portfolio basis, and the net loss after considering the offsetting effect on the underlying hedge item is charged to the profit and loss
account. Net gains are ignored.
Grant II
In January 2004, the Company granted 142,100 options (shares of Rs 5 each ) under ESOP Plan 2000 to be exercised at a price of Rs 5 per share.
The options vest with the employees equally over a four year period.
Details of Grant II
Particulars March 31, 2010 March 31, 2009
No of Options Weighted Average No of Options Weighted Average
Exercise Price (Rs)* Exercise Price (Rs)
Outstanding at the beginning of the year 7,840 2.5 10,780 5.0
Granted during the year - - - -
Forfeited during the year - - - -
Adjustment for issuance of Bonus shares during the year - - 4,900 -
Exercised during the year 1,960 2.5 7,840 4.4
Expired during the year 5,880 2.5 - -
Outstanding at the end of the year - - 7,840 2.5*
Exercisable at the end of the year - - 7,840 2.5*
Weighted average remaining contractual life (in years) - - 1 -
* adjusted for the effect of bonus shares
Grant III
In January 2004, the Board of Directors announced the Biocon Employee Stock Option Plan (ESOP Plan 2004) for the grant of stock options to the employees
of the Company and its subsidiaries/joint venture company. Pursuant to which the compensation committee on March 19, 2004 granted 422,000 options
under the ESOP Plan 2004 to be exercised at a grant price of Rs 315 being the issue price determined for the IPO through the book building process. The
options will vest with the employees equally over a four year period.
Details of Grant III
Particulars March 31, 2010 March 31, 2009
No. of Options Weighted Average No. of Options Weighted Average
Exercise Price (Rs)* Exercise Price (Rs)
Outstanding at the beginning of the year 112,950 157.5 58,750 315.0
Granted during the year - - - -
Forfeited during the year - - - -
Adjustment for issuance of Bonus shares during the year - - 57,350 -
Exercised during the year 95,250 157.5 3,150 227.5
Expired during the year - - - -
Outstanding at the end of the year 17,700 157.5 112,950 157.5*
Exercisable at the end of the year 17,700 157.5 112,950 157.5*
Weighted average remaining contractual life (in years) 1 - 2 -
* adjusted for the effect of bonus shares
Grant IV
On July 19, 2006, the Company approved the grant of 3,478,200 options to its employees under the existing ESOP Plan 2000. The options under this grant
would vest to the employees as 25%, 35% and 40% of the total grant at the end of first, second, third year from July 18, 2006, respectively, with an exercise
period of three years for each grant. The vesting conditions include completion of two years of service and performance grade of the employees. These
options are exercisable at a discount of 20% to the market price of Company’s shares on the date of grant.
Details of Grant IV
Particulars March 31, 2010 March 31, 2009
No of Options Weighted Average No of Options Weighted Average
Exercise Price (Rs)* Exercise Price (Rs)
Outstanding at the beginning of the year 5,224,178 147 2,927,299 289
Granted during the year - - - -
Forfeited during the year 741,548 153 298,170 306
Adjustment for issuance of Bonus shares during the year - - 2,622,429 -
Exercised during the year 1,452,500 138 27,380 171*
Expired during the year - - - -
Outstanding at the end of the year 3,030,129 150.0 5,224,178 147*
Exercisable at the end of the year 1,388,545 137.5 1,997,298 137.5*
Weighted average remaining contractual life (in years) 2.3 - 2.9 -
* adjusted for the effect of bonus shares
Biocon Limited & Subisdiaries - IGAAP
Grant V
In April 2008, the Company approved the grant of 813,860 options to its employees under the existing ESOP Plan 2000. The options under this grant would
vest to the employees as 25%, 35% and 40% of the total grant at the end of first, second, third year from July 2010, respectively, with an exercise period of
three years for each grant. The vesting conditions include service terms and performance grade of the employees. These options are exercisable at the market
price of Company’s’ shares on the date of grant.
Details of Grant V
Particulars March 31, 2010 March 31, 2009
No of Options Weighted Average No of Options Weighted Average
Exercise Price (Rs)* Exercise Price (Rs)
Outstanding at the beginning of the year 69,710. 232 - -
Granted during the year 63,460 152 34,855 463
Forfeited during the year 44,975 238 - -
Adjustment for issuance of Bonus shares during the year - - 34,855 -
Expired during the year - - - -
Outstanding at the end of the year 88,195 171 69,710 231.5*
Exercisable at the end of the year - - - -
Weighted average remaining contractual life (in years) 6 - 6.3 -
Weighted average fair value of options granted (Rs) 130* - 110.0 -
*adjusted for the effect of bonus shares
The average market price of the Company’s share during the year ended March 31, 2010 is Rs 237 (March 31, 2009 Rs 163.42 per share after adjustment for
the bonus shares) Assumptions used in determination of the fair value of the stock options under the Black Scholes Model as follows:
March 31, 2010 March 31, 2009
Weighted Average Remaining Contractual Life in options (Yrs) 6.0 2.9
Weighted Average Exercise Price* 170.9 147.0
Expected volatility 37.62% 37.62%
Historical volatility 34.29% 34.29%
Life of the options granted (vesting and exercise period) in years 6.3 6.2
Expected dividends 3.50 2.45
Average risk-free interest rate 7.80% 7.80%
Expected dividend rate 1.23% 0.57%
* adjusted for the effect of bonus shares
Since the Company uses the intrinsic value method for determination of the employee stock compensation expense, the impact on the reported net profit and
earnings per share under the fair value approach is as given below:
Particulars March 31, 2010 March 31, 2009
Net Profit after taxes 2,932,442 931,217
Add: Employee stock compensation under intrinsic value 2,211 26,834
Less : Employee stock compensation under fair value (59) 65,021
Proforma profit 2,934,712 893,030
Earnings per Share - Basic
- As reported 15.08 4.83
- Proforma 15.09 4.63
Earnings per Share - Diluted
- As reported 14.84 4.69
- Proforma 14.85 4.50
(ii) Vehicles:
The Group has taken vehicles for certain employees under operating leases, which expire in March 2013. Gross rental expenses for the year aggregate to
Rs 18,323 (March 31, 2009 - Rs 14,365). The committed lease rental in the future are:
March 31, 2010 March 31, 2009
Not later than one year 20,422 15,353
Later than one year and not later than five years 32,088 24,008
Where the Group is a Lessor:
(i) Rent
The Company has leased out certain parts of its building (including fit outs) and land on an operating lease, which expire over a period up to 2016. Gross
rental income for the year aggregate to Rs 21,456 (March 31, 2009 - Rs 21,408). Further, minimum lease rentals under operating lease are as follows:
March 31, 2010 March 31, 2009
Not later than one year 20,304 20,856
Later than one year and not later than five years 81,216 81,216
Later than 5 Years 50,760 71,064
The following is the carrying amount of assets by geographical area in which the assets are located:
Carrying amount of segment assets Capital Expenditure*
March 31, 2010 March 31, 2009 March 31, 2010 March 31, 2009
India 23,488,185 18,948,245 1,593,009 2,852,223
Outside India 5,872,547 6,487,727 204,430 1,461,814
29,360,732 25,435,972 1,797,439 4,314,037
* includes additions through acquisitions.
Segment revenue and result
The expenses that are not directly attributable and that cannot be allocated to a business segment on a reasonable basis are shown as unallocated corporate
expenses.
Segment assets and liabilities
Segment assets include all operating assets used by the business segment and consist principally of fixed assets and current assets. Segment liabilities
comprise of liabilities which can be identified directly against the respective segments. Assets and liabilities that have not been allocated between segments
are shown as part of unallocated corporate assets and liabilities respectively.
13. Other note
(a) The Company has entered into transactions of sale of product to a private company amounting to Rs 1,812, during the year ended March 31,2010, that
require prior approval from Central Government under Section 297 of the Companies Act, 1956. These transactions, entered into at prevailing market prices
have been approved by the Board of Directors of the Company. The Company is in the process of filing an application with the Central Government for such
approval and for condonation of delay in making such application.
(b) In terms of Section 115O (6) of the Income Tax Act, 1961 for the year ended March 31,2010, the Company has not provided for Dividend Distribution
Tax to the extent the proposed distributable profits pertain to the profits of the Company’s SEZ Developer’s operations under section 10AA of Income tax
Act,1961.
14. Prior year comparatives
The previous years’ figures have been re-grouped/ reclassified, where necessary to conform to current years’ classification.
Glossary
ANDA Abbreviated New Drug Application
API Active Pharmaceutical Ingredient
BSE The Bombay Stock Exchange Limited
CAP College of American Pathologists
CDSL Central Depository Services (India) Limited
cGMP Current Good Manufacturing Practices
COS Certificate of Suitability
CRC Custom Research Company
CRO Contract Research Organisation
DMF Drug Master File
DPCO Drug Price Control Order
EBITDA Earnings Before Interest, Depreciation and Taxes
EDQM European Directorate for Quality of Medicines
EGFR Epidermal Growth Factor Receptor
EPS Earnings Per Share
ESOP Employees Stock Options Plan
ETP Effluent Treatment Plant
EU European Union
FTE Full Time Equivalent
GCC Gulf Co-operation Council
GCP Good Clinical Practice
ICAI Institute of Chartered Accountants of India
ICH International Conference on Harmonisation
IGAAP Indian Generally accepted Accounting principles
IPO Intial Public Offering
IPR Intellectual Property Rights
Mab Monoclonal Antibodies
MMF Mycophenolate Mofetil
MRP Mutual Recognition Procedure
NCEs New Chemical Entities
NSDL National Securities Depository Limited
NSE The National Stock Exchange of India Limited
OHSAS Occupational Health Safety Assesment Series
OTC Over the Counter
PCT Patent Co-operation Treaty
PK / PD Pharmaco Kinetic / Pharmaco Dynamic
R&D Research and Development
ROW Rest of the world
SEBI Securities Exchange Board of India
TGA Therapeutics Good Adminstration
TRIPS Trade Related Aspects of Intellectual Property Rights
US GAAP United States Generally Accepted Accounting Principles
USFDA United States Food and Drug Aminstration
WTO World Trade Organisation
Currency Abbreviation
AED UAE Dirhams
CHF Swiss Francs
EUR Euros
USD / US$ United States Dollar
This Annual Report may contain “forward-looking” information, including statements concerning the company’s outlook for the future, as well as other
statements of beliefs, future plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. The forward-
looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or
implied by, the statements. Biocon assumes no obligation to publicly update or revise these forward-looking statements even if experience or future
changes make it clear that any projected results expressed or implied therein do not materialize.
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Biocon Limited
20th KM Hosur Road
Electronic City
Bangalore 560 100 India
T 91 80 2808 2808
F 91 80 2852 3423
www.biocon.com