Orchid Pharma, a Rs.875 crore plus loss making pharma major, has reduced its net loss to Rs.60.98 crore during the third quarter ended December 2016 from Rs.94.02 crore in the corresponding period of last year. Its net sales declined by 13.1 per cent to Rs.177.27 crore from Rs.204.02 crore. EPS worked out to negative Rs.6.85 as compared to negative Rs.10.57 in the last period.

Its interest cost declined to Rs.69.43 crore from Rs.76.14 crore. The company shown other income of Rs.6.23 as against nil in the last period. Further, it has shown tax credit of Rs.12.20 crore as against tax provision of Rs.7 crore in the similar quarter of last year.

The company's independent auditor pointed out that the company has given advances amounting to Rs.726 crore to various parties and are outstanding as on December 31, 2016. The company has not received any materials/capital goods against these advances. The company is not able to take delivery of materials due to financial constraints.

Further, auditor's said that the company has investments of Rs.123 crore and loans of Rs.36.99 crore in two subsidiaries carrying on research and development activities. These subsidiaries have not been spending any money on the research during the current period as no financial support is given by the parent company and the parent company has not allocated any funds for the future development  The company has no information regarding the value of molecules available with the company.

For the nine months ended December 2016, Orchid's net sales declined by 18.8 per cent to Rs.545.32 crore from Rs.671.99 crore in the same period of last year. Its net loss increased to Rs.295.77 crore from Rs.210.53 crore. EPS worked out to negative Rs.23.55 as compared to negative Rs.23.66 in the last period. Exceptional loss amounted to Rs.28.70 crore as against Rs.18.21 crore. Its interest cost worked out to Rs.209.85 crore as compared to Rs.222.89 crore.