Chirotech Technology Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02667953 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31st March 2020

for

Chirotech Technology Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

V N Mannam

S Kushwaha

SECRETARY:

S Kushwaha

REGISTERED OFFICE:

C/O Kingsbridge Corporate Solutions

1st Floor Lowgate House

Lowgate

Hull

HU1 1EL

REGISTERED NUMBER:

02667953 (England and Wales)

AUDITORS:

cbaSadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

The directors present their strategic report for the year ended 31st March 2020.

REVIEW OF BUSINESS AND CLOSING POSITION

The key financial highlights are as follows:

31/3/20

31/3/19

31/3/18

£

£

£

Turnover - United Kingdom

-

-

-

Turnover Growth - United Kingdom

-

-

-

Turnover - Europe and other countries

-

-

-

Turnover Growth - Europe and other countries

-

-

-

Profit before tax

167,149

173,973

129,041

Profit before tax margin

-

-

-

The company has ceased trading with the trade and the assets and liabilities being transferred to the company's immediate

parent company on the 1st April 2017. The company's only activity has been the foreign exchange losses and the interest

receivable on the group balances. The company continues to have one bank account open until the remaining debtors have

been repaid.

PRINCIPAL RISKS AND UNCERTAINTIES

The company has identified the principal areas of risk that it faces as:

Financial instrument risk

The company has established a risk and financial management framework whose primary objectives are to protect the

company from events that hinder the company's performance objectives. The objectives aim to ensure sufficient working

capital exists and monitor the management of risk at a business unit level.

Impact of pharmaceutical regulations

The business is subject to various regulations and any tightening of these could have a negative impact on earnings.

Price risk

The company provides specialist chiral chemical manufacturing and consultancy services to several pharmaceutical

companies.

Foreign exchange risk

The company sells and purchases some of its products in foreign currencies. The risk is mitigated by monitoring foreign

exchange rates on a daily basis and taking foreign exchange cover, if required.

Credit risk

Credit checks are carried out on all customers. Amounts outstanding for both time and credit limits are regularly monitored.

The company has little experience of material bad debts in general.

Liquidity risk

Liquidity is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities.

The company manages its cash flow to ensure that sufficient liquid resources are available to meet its operating needs.

Interest rate and cash flow risk

The company had a favourable cash balance during the year and therefore does not consider that interest rates or cash flow

pose a significant risk.

SECTION 172(1) STATEMENT

The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good

faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so

have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic

importance to the Company are appropriately informed by s172 factors.

At Chirotech Technology, our Board of Directors, management and employees are committed to upholding high standards of

corporate governance and business ethics. We firmly believe that timely disclosures, transparent accounting policies,

rigorous internal control systems and a strong and independent Board go a long way in preserving shareholder trust while

maximising long-term shareholder value.

This s172 statement explains how the Chirotech Technology Directors:

- Have engaged with employees, suppliers, customers and others; and

-Have had regards to employee interests, the need to foster the company's business relationships with suppliers, customers

and others, and the effect of that regards, including on the principal decisions taken by the company during the financial

year.

The s172 statement focuses on matters of strategic importance to Dr. Reddys, and the level of information disclosed is

consistent with the size and the complexity of the business.

General confirmation of Directors' duties

Chirotech Technology have a number of Committees appointed by the Board at group level of Dr Reddys to focus on

specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations

to the Board. All decisions and recommendations of the committees are placed before the Board for information or for

approval.

When making decisions, each Director ensures that they act in the way they consider, in good faith, would most likely

promote the Company' success for the benefit of its members as a whole, and in doing so have regard (among matters) to:

The likely consequences of any decision in the long term

The Directors understand the business and the demand to innovate the latest products in order to find the most effective

treatments in the pharmaceutical market. Chirotech Technology as part of the Dr. Reddy's group have the vision and goal of

'Good Health Can't Wait' is what the business drives and strives for. The strategy set by the Board as a leader in the

pharmaceutical industry is to ensure good health can be delivered to those who need it, and to promote wellness among

them.

Whilst investing for the future, the Board also recognises that we must focus on meeting the current supply and demand of

pharmaceuticals.

The Directors are guided by our principles - Empathy and Dynamism - which provide both guidance for our current

behaviour and inspiration for our future actions.

The interests of the company's employees

At Chirotech Technology employees are at the heart of our business. The Management team invites a fair and open two way

relationship with all employees. We believe in respecting every individual, regardless of position. At Chirotech Technology

employees are heard and have the opportunity to express their opinion. Organisation believes in equality and discourage any

discrimination based on any caste, creed, race, religion age and gender etc. We are committed to employee's safety and

well-being. Our HR policies are well documented and available to each employee. Management assumes responsibility that

such policies are adhered to.

The talented and capable people have played a major role in powering and defining the growth of Chirotech Technology.

We believe that when people with diverse skills are bound together by a common purpose and value system, they can make

magic.

The need to foster the company's business relationships with suppliers, customers and others

Customers and suppliers are the key stakeholders in our business. In a competitive price driven environment, stock is the

vital component at the keenest price. We engage in regular communication with our suppliers as well as customers. We

recognise the fact that the stronger the relationships with suppliers the more we are able to serve our customers better. We

remain committed to all our stakeholder for ethical business practices. The Company has put in practice a code of business

conduct and ethics (CoBE) , every employee at Dr Reddy's is required to sign an undertaking, at least annually, that they

have read such code and comply with its principles.

The impact of the company's operations on the community and environment

At Chirotech Technology Good Health Can't Wait is not just a slogan. But a belief that guides our thoughts, our behaviour

and our actions. There are a number of initiatives that we've taken- from product development to patient management to

helping doctors and partners delivers good health to patients.

Some of these were-life changing, for the patients. Like creating affordable option of complex, difficult to make medicines.

All of this is aimed of bringing good health to the community via innovative R&D, active pharmaceutical ingredients supply

to Pharma industries and contribute in to overall community health system. The company strives to ensure that it focused on

the larger community.

The desirability of the company maintaining a reputation for high standards of business conduct

Chirotech Technology Board periodically reviews their Corporate Governance requirements as the commitment to upholding

the highest standards are set at board level but is filtered down throughout the whole group organisation.

The need to act fairly as between members of the company

The Directors consider and focus its attention to ensure that the company's performance is in line with their strategic vision

for both the short and long term objectives. The impact of this on all of the stakeholders is reviewed. The Directors believe

they act fairly.

The Board has created a culture of honesty, integrity and respect of the Chirotech Technology core values and principles.

The company that has set a number guidelines on Code of Business Conduct and Ethics (COBE) through to various

Environment and Employment policies.

Principal decisions

We define principal decisions taken by the Board as those decisions in 2019/20 that are of a strategic nature and that are

significant to any of our key stakeholder groups. As outlined in the FRC Guidance on the Strategic Report, we include

decisions related to capital allocation and dividend policy.

FUTURE DEVELOPMENTS AND STRATEGY

The company is intended to be formally liquidated during the next 12 months.

ON BEHALF OF THE BOARD:

S Kushwaha - Secretary

18th May 2020

The directors present their report with the financial statements of the company for the year ended 31st March 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a dormant company.

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2020.

FUTURE DEVELOPMENTS

Details have been provided on the company's strategic report.

DIRECTORS

The directors during the year under review were:

S Kohli

- resigned 29/11/19

V N Mannam

C J Troche

- resigned 15/5/19

S Kushwaha

- appointed 1/1/20

The directors holding office at 31st March 2020 did not hold any beneficial interest in the issued share capital of the

company at 1st April 2019 (or date of appointment if later) or 31st March 2020.

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The company's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose

of these instruments is to raise funds and finance the company's operations.

Revenue maintenance

The company has ceased trading.

Principle risks and uncertainties

These details have been provided on the company's strategic report.

GOING CONCERN

The company ceased sales on the 1st April 2017 when the company's operations where transferred to its immediate parent

company. As the intention is to formally liquidate the company the directors consider it inappropriate to prepare the financial

statements on a going concern basis and therefore the directors have prepared these financial statements on the break-up

basis as set out under the basis of preparation note 2.

ENGAGEMENT WITH EMPLOYEES

These details have been provided in the company's section 172(1) statement which is included in the strategic report.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

These details have been provided in the company's section 172(1) statement which is included in the strategic report.

STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS

Dr. Reddy's Laboratories (EU) Limited believes that timely disclosures, transparent accounting policies coupled with a

strong board go a long way in maintaining good corporate governance, preserving all stakeholders' trust and maximizing

long-term corporate value. The company's corporate governance framework is based on the following main principles:

Ethical business conduct by the board, management and employees. Well-developed systems of internal controls,

Compliance to applicable local and international laws and financial reporting. Protection and facilitation of all stakeholders'

rights. Adequate, timely and accurate disclosure of all material operational and financial information to relevant

stakeholders.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in

accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the

financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of

the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's

transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to

ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the

assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the

company's website.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a

director in order to make himself aware of any relevant audit information and to establish that the company's auditors are

aware of that information.

AUDITORS

The auditors, cbaSadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S Kushwaha - Secretary

18th May 2020

Opinion

We have audited the financial statements of Chirotech Technology Limited (the 'company') for the year ended

31st March 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity

and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting

framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United

Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st March 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial

statements section of our report. We are independent of the company in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our

other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you

where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly

stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in

the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material

misstatement of the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we

have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if,

in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of

the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

directors determine necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless

the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material

if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies

Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are

required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do

not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit

work, for this report, or for the opinions we have formed.

Alan Brocklehurst (Senior Statutory Auditor)

for and on behalf of cbaSadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

20th May 2020

TURNOVER

-

-

Cost of sales

-

5,662

GROSS PROFIT

-

5,662

Administrative expenses

514

(7,296

)

OPERATING PROFIT/(LOSS)

4

514

(1,634

)

Interest receivable and similar income

5

166,635

175,607

PROFIT BEFORE TAXATION

167,149

173,973

Tax on profit

6

(31,758

)

(33,055

)

PROFIT FOR THE FINANCIAL YEAR

135,391

140,918

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

135,391

140,918

CURRENT ASSETS

Debtors

7

11,276,504

11,028,151

Cash at bank

9,831

91,035

11,286,335

11,119,186

CREDITORS

Amounts falling due within one year

8

103,582

71,824

NET CURRENT ASSETS

11,182,753

11,047,362

TOTAL ASSETS LESS CURRENT LIABILITIES

11,182,753

11,047,362

CAPITAL AND RESERVES

Called up share capital

9

20,778,057

20,778,057

Other reserves

364,000

364,000

Retained earnings

(9,959,304

)

(10,094,695

)

SHAREHOLDERS' FUNDS

11,182,753

11,047,362

The financial statements were approved by the Board of Directors and authorised for issue on 18th May 2020 and were signed on its behalf by:

S Kushwaha - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1st April 2018

20,778,057

(10,235,613

)

364,000

10,906,444

Changes in equity

Total comprehensive income

-

140,918

-

140,918

Balance at 31st March 2019

20,778,057

(10,094,695

)

364,000

11,047,362

Changes in equity

Total comprehensive income

-

135,391

-

135,391

Balance at 31st March 2020

20,778,057

(9,959,304

)

364,000

11,182,753

1.	STATUTORY INFORMATION

Chirotech Technology Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial

Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

As set out in the Directors' report, due to the company's operations being transferred as of the 1st April 2017, the

financial statements have been prepared on a break up basis at the year end. In adopting the break up basis at the year

end the following procedures were implemented:

- All assets have been disclosed at values which they are expected to be realised

- All liabilities reflect the full amount at which they are expected to materialise.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as

permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Research and development

Expenditure in relation to research and development is written off in the year in which it is incurred. Any expenditure

of a capital nature is capitalised in the balance sheet and depreciated in line with the above note on tangible fixed

assets.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance

sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of

transaction. Exchange differences are taken into account in arriving at the operating result.

Patents

Patents were valued at cost as of the date at which the patent was first filed and amortised on a straight line basis

over their useful economic lives.

Trade licences

Expenditure in respect of the renewal of trade licences has been charged to the profit and loss account when it has

been incurred.

3.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

-

7,752

The average number of employees during the year was as follows:

2020

2019

Research and development

-

-

Operations - recharged to parent company

-

-

Sales and marketing

-

-

Administration

-

-

-

-

2020

2019

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT/(LOSS)

The operating profit (2019 - operating loss) is stated after charging/(crediting):

2020

2019

£

£

Auditors' remuneration for non audit work

-

450

Foreign exchange differences

(546

)

(962

)

5.

INTEREST RECEIVABLE AND SIMILAR INCOME

2020

2019

£

£

Corporation tax interest

-

236

Interest on group loans

166,635

175,371

166,635

175,607

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

31,758

33,055

Tax on profit

31,758

33,055

UK corporation tax has been charged at 19% (2019 - 19%).

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Amounts owed by group undertakings

11,203,715

10,955,362

Other debtors

875

875

VAT

90

90

R&D tax credits receivable

71,824

71,824

11,276,504

11,028,151

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Taxation

103,582

71,824

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

207,780,570

Ordinary

10p

20,778,057

20,778,057

10.	ULTIMATE PARENT COMPANY