Financials - Quarterly Review

NOTES:

(1)	The above results were reviewed by the Audit Committee and approved by the Board of Directors, in their respective meetings held on 23 January 2003. There is no qualification in the Auditors report on this statement of financial results.
(2)	The figures for the previous year have been regrouped to render them comparable with the figures for the current year.
(3a)	This statement of financial results has been prepared by applying the same accounting policies as were applied in the most recent annual financial statements for the year 2001-02.
(3b)	Based on a review of potential future benefits, the Company wrote off the entire balance in Deferred Revenue Expenditure (comprising Research & Development Expenses & Market Development Expenditure) in the annual financial statements for 2001-02. The expenditure for the third quarter and first nine months of the previous year includes Rs.72 lacs and Rs.215 lacs respectively, on account of amortisation of such Deferred Revenue Expenditure.
(4)	The Company operates in a solitary business segment viz. pharmaceuticals, comprising mainly manufacture of branded formulations. A further breakdown of pharmaceutical sales is given below.

Rs. Lacs

Particulars	Three Months Ended			Nine Months Ended			Accounting year 2001-02
Particulars	31-Dec-02	31-Dec-01	Growth (%)	31-Dec-02	31-Dec-01	Growth (%)	Accounting year 2001-02
Domestic Formulations	7590	7510	1%	24303	23579	3%	30224
Exports	1177	1217	-3%	3254	2735	19%	3652
Contract Manufacture	2600	2643	-2%	5673	6941	-18%	7861
Others *	299	285	--	1093	951	--	1457
Total	11666	11655	--	34323	34206	--	43194

* includes inter-unit transfer for captive consumption, current quarter Rs.170 lacs (comparative quarter Rs.160 lacs), current nine months Rs.667 lacs (comparative nine months Rs.556 lacs) and accounting year 2001-02 Rs.930 lacs.

(5a)	Sales include excise duty recovered (current quarter Rs.1024 lacs & nine months Rs.3265 lacs) and sales tax recovered (current quarter Rs.658 lacs & nine months Rs.2065 lacs).
(5b)	Sales & Income from Operations for the current quarter and nine months include Rs.241 lacs (comparative quarter and nine months nil) income on account of Option Fees received from Novartis Pharma AG, Switzerland in terms of Research and Option Agreement between the Company and Novartis Pharma AG for Company’s AGE Breaker compound.
(6)	The Company made further investments during the quarter amounting to Rs 323 lacs in equity shares of Torrent Do Brasil Ltda. (total investments made in current nine months Rs.1076 lacs), its wholly owned subsidiary in Brazil, and Rs.63 lacs in equity share of Torrent Pharma GmbH. (total investments made in current nine months Rs.75 lacs), its wholly owned subsidiary in Germany.
(7)	The following individuals have joined the Board of Directors of the Company as non-executive and independent directors.
(a)	Mr. Mihir Thakore with effect from 23-Oct-2002.
(b)	Mr. Sanjay Lalbhai with effect from 23-Jan-2003.

After the above addition, the total strength of the Board is 9, of which 6 are non-executive and 5 are independent directors.

Rs. Lacs

Particulars	Three Months Ended			Six Months Ended			Accounting year 2001-02
Particulars	30-Sep-02	30-Sep-01	Growth (%)	30-Sep-02	30-Sep-01	Growth (%)	Accounting year 2001-02
Domestic Formulations	8402	8356	1%	16713	16068	4%	30224
Exports	1323	795	66%	2077	1518	37%	3652
Contract Manufacture	1213	2391	-49%	3074	4299	-28%	7861
Others *	444	283	57%	793	666	19%	1457
Total	11382	11825	-4%	22657	22551	-	43194

*includes inter-unit transfer for captive consumption, current quarter Rs.226 lacs (comparative quarter Rs.168 lacs), current half year Rs.496 lacs (comparative half year Rs.397 lacs) and accounting year 2001-02 Rs.930 lacs.

(5)	Sales include excise duty and sales tax.
(6a)	The Company made further investments during the quarter amounting to Rs 504 lacs in equity shares of Torrent Do Brasil Ltda , its wholly owned subsidiary at Brazil.
(6b)	The Company made investment during the quarter amounting to Rs 12 lacs in equity share of Torrent Pharma GmbH, its newly formed wholly owned subsidiary at Germany.

	For TORRENT PHARMACEUTICALS LIMITED Sd/-
Ahmedabad23 January 2003.	Samir Mehta Managing Director