German Remedies Ltd has posted a net profit of Rs 3.39 crore for the quarter ended December 31, 2002 as compared to Rs 6 crore for the quarter ended December 31, 2001. Total income (net of excise) has increased from Rs 47.35 crore in DQ-01 to Rs 66 crore in DQ-02.
The decline in profit was mainly due to exceptional items of expenditure charged against the income of the current year, both during the current quarter and nine months like VRS payment etc made to the Andheri Plant employees, where the operations have been scaled down and additional expenses of the new divisions set up during the current year.
The Board of Directors approved the merger of the company with Cadila Healthcare & also merger of Recon Healthcare Ltd, Zydus Pathline Ltd & Zoom Properties Ltd with Cadila Healthcare. The appointed date of the scheme has been fixed as April 01, 2002.
Based on the expert opinion of two firms of Chartered Accountants, the Board of Directors of the Cadila Health Care Ltd and the company has unanimously approved share exchange ratio of 7:4 which means 7 shares of the face value of Rs 5 each in Cadila Healthcare Ltd will be issued and allotted in exchange of every 4 equity shares of the face value of Rs 10 each in German Remedies Ltd.