Pan Drugs Ltd. के निदेशक की रिपोर्ट

Mar 31, 1999

The Directors' have pleasure in presenting herewith Sixth Annual report for the year ended 31.03.1999 of the Company. The following figures summarise the working results for the year :

Financial Results : (Rs. In Lacs)

1998-99 1997-98

Gross Income 2211.78 1657.39

Profit before Interest, Depreciation and Tax 205.08 133.08

Interest 122.88 85.79

Depreciation 21.64 19.03

Net Profit before Tax 60.55 28.26

Provision for Taxation 6.00 2.85

Profit after Tax 54.55 25.41

YEAR IN RETROSPECT

During the year under review, the Company continued to pursuit excellence in the performance by fetching the Gross Income of Rs.2211.78 lacs against Rs.1657.39 lacs of previous year, registering growth by 33.44%, by earning Gross Profit before Interest, Depreciation and Tax of Rs.205.08 lacs against Rs.133.08 lacs of previous year, registering growth of 54.10% and by earning Net Profit of Rs.54.55 lacs against Rs.25.41 lacs of previous year, showing the rise of 114.68%.

The company could show better performance on account of optimum utilisation of Expanded capacity from 100 tons to 150 tons of Paracetamol per month with newer technology, stabilizing the optimum yield in Erythromycin Salts, minimising unproductive and wasteful operating costs and inputs and better management of Inventory and Working Capital. However delayed and non realisation of sale proceeds, and stiff competition in market coupled with financial crunch prevailing in present sluggish and recessionary trend of Economy and Industries in general, have largely and adversely affected the performance of the Company, mainly by increasing the cost of borrowing/fund for upward growth of the Company.

The Company continues to operate to its optimum capacities inspite of many odds and difficulties, However to conserve its cash resources, the Board does not recommend payment of Dividend to the Shareholders.

The Company focuses on generation of higher volume of sales with minimum operating costs, with its systematic and determined efforts and in view of ever increasing and growing demand of the Company's products and with conceiving the diversification into the same Industry, requiring newer technology and plant & Machineries to manufacture widely accepted Vitamin `C', by utilising the existing and in built other manufacturing and its allied facilities, the Company intends to project better future in coming years. Moreover, there are plans a foot to explore all the possibilities of expanding the existing 150 MTs pm. capacity of Paracetamol to 200 MTs pm subject to the suitable term lending tie-overs with the existing and/or new Banking/Financial Institutions.

DIRECTORATE

Shri Pankaj Pandya resigned as a Director from the Board of Directors of the Company in view of his other occupation. The Board places on record its sincere appreciations for the contributions received by the Company during his tenure as a Director with the Company.

Shri S.S. Reddy has been appointed as a Director on the Board of Directors of the Company in the casual vacancy caused by the resignation of Shri Yatin Shah.

Shri S.S. Reddy retires by rotation and being eligible offers himself for reappointment.

ENERGY, TECHNOLOGY & FOREIGN EXCHANGE

Information in accordance with the provisions of Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosures of particulars in the report of Board of Directors) Rules, 1988 regarding conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgoing, is given in the Annexure forming part of this report.

PARTICULARS OF EMPLOYEES

As required under the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, information is not furnished as no employees are covered thereunder.

Y2K COMPLIANCE

Software and Hardware of Information Technology of the Company are being made Y2K Compliant by necessary upgradation and updation and the same is expected to be completed by November 1999.

EXTENTION FOR CONVENING ANNUAL GENERAL MEETING

At the request of the Company, the Registrar of Companies, Gujarat has granted approval for convening Annual General Meeting by 15th December, 1999 vide his letter No. STA/(RO)/EXTN/CO No. 20671 dated 08.09.1999.

AUDITORS

The Auditors M/s. S.G. Bhagwat & Co., retire at the conclusion of the ensuing Annual General Meeting and offer themselves for reappointment. Members are requested to appoint and fix their remuneration.

INSURANCE

All the properties and assets of the Company are adequately insured, risks arising out of non insurance are minimal.

PUBLIC DEPOSITS

During the year, the Company has not accepted any Fixed Deposits under Section 58A of the Companies Act, 1956.

(Information under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors' Report for the year ended 31st March, 1999.

A. CONSERVATION OF ENERGY :

(a) Energy Conservation measures taken

- Optimum batch Size.

- Elimination of idle running time.

- Inventory planning & control.

(b) Additional Investment and proposals being implemented for reduction in consumption of energy.

The Company has ongoing study and survey of actual energy consumption of equipments and less efficient equipments are replaced by more efficient equipment.

(c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods.

The measures taken have resulted in saving in the cost of production.

(d) Details of Energy Consumption for production : As per Form-A

B. TECHNOLOGY ABSORPTION :

Research & Development and Technology Absorption :

Considering the size of the unit and nature of products, the avenues for R & D are very limited and therefore not applicable.

C. FOREIGN EXCHANGE, EARNING & OUTGO :

1) Total Foreign Exchange used and earned :

i) Foreign Exchange used : Rs. 3,37,254/-

ii) Foreign Exchange earned : Rs. 2,24,04,477/-

B. Consumption per unit of production :

In view of number of product, with different sizes, shape and other parameters, being manufactured by Company, it is not feasible to give information on consumption fuel per unit of production.

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Mar 31, 1998

The Directors' have pleasure in presenting herewith Fifth Annual Report for the year ended 31.03.1998 of the Company. The following figures summarise the working results for the year :-

Financial Results (Rs. in Lacs)

1997-98 1996-97

Gross Income 1657.39 987.96 Profit before Interest, Depreciation and tax 133.08 86.46 Interest 85.79 50.45 Depreciation 19.03 12.42 Net Profit before Tax 28.26 23.59 Provision for Taxation 2.85 3.92 Profit after Tax 25.41 19.67

YEAR IN RETROSPECT

During the year under review, the Company continued to pursuit excellence in the performance by fetching the Gross Income of Rs. 1657.39 lacs against Rs 987.96 lacs of previous year, registering growth by 68%, by earning Gross Profit before Interest, Depreciation and Tax of Rs. 133.08 lacs against Rs. 86.46 lacs of previous year, registering growth of 54% and by earning Net Profit of Rs. 28.26 lacs against Rs. 19.67 lacs of previous year, showing the rise of 44%. The Company could show better performance on account of optimum utilisation of Expanded Capacity from 35 Tonnes to 100 Tonnes of Paracetamol with newer technology , stabilizing the optimum yield in Erythromycin Estolate, minimising unproductive and wasteful operating costs and inputs and better management of Inventory and Working Capital. However delayed and non realisation of sale proceeds, and stiff competition in market coupled with financial crunch prevailing in present sluggish and recessionary trend of economy and industries in general, have largely and adversely affected the performance of the Company, mainly by increasing the cost of borrowing/fund for sustaining the level of growth of the Company.

The Company continues to operate to its optimum capacities inspite of many odds and difficulties, However to conserve its cash resources, the Board does not recommend payment of Dividend to the Shareholder.

The Company focuses on generation of higher volume of sales with minimum operating costs, with its systematic and determined efforts and in view of ever increasing and growing demand of the Company products, the second expansion programme for increasing the present capacity of 100 MT per months to 125 MT per month has been taken on hand which is in progress and expected to be completed by end of December 1998.

DIRECTORATE

Mr. NiIesh Kamdar retires by rotation and being eligible, offers himself for reappointment.

During the year under review Shri Pankaj Pandya, the Chairman and Shri Yatin Shah resigned as Directors, owing to their other occupations. The Board places on record its appreciations for the contributions received from both of them during their tenure as Directors of the Company.

ENERGY, TECHNOLOGY & FOREIGN EXCHANGE

Information in accordance with the provisions of Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosures of particulars in the report of Board of Directors) Rules, 1988 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgoings, is given in this report.

PARTICULARS OF EMPLOYEES

As required under the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, information is not furnished as no employees are covered thereunder.

AUDITORS

The Auditors M/s. S.G. Bhagwat & Co., retire at the conclusion of the ensuing Annual General Meeting and offer themselves for reappointment. Members are requested to appoint and fix their remuneration.

INSURANCE

All the properties and assets of the Company are adequately insured, risks arising out of non insurance are minimal

PUBLIC DEPOSITS

During the year, the Company has not accepted any Fixed Deposits under Section 58A of the Companies Act, 1956.

Information under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors Report for the year ended 31st March, 1998.

A. CONSERVATION OF ENERGY :

a. Energy Conservation measures taken

Optimum batch size.

Elimination of idle running time.

Inventory planning & control.

b. Additional Investments and proposals being implemented for reduction in consumption of energy.

The Company has ongoing study and survey of actual energy consumption of equipments and less efficient equipments are replaced by more efficient equipment.

c. Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods.

The measures taken have resulted in saving in the cost of production.

d. Details of Energy Consumption for production : As per Form-A

B. TECHNOLOGY ABSORPTION :

Research & Development and Technology Absorption :

Considering the size of the unit and nature of products, the avenues for R & D are very limited and therefore not applicable.

C. FOREIGN EXCHANGE, EARNING & OUTGO :

1. Total foreign exchange used and earned :

i. Foreign Exchange used : Rs. 8,23,781

ii. Foreign Exchange earned : Rs. 59,20,483

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Mar 31, 1997

Your Directors have pleasure in presenting herewith Fourth Annual Report for the year ended 31.03.1997 of your Company. The following figures summarize the working results for the year :-

Financial Results (Rs. in Lacs)

1996-97 1995-96

Gross Income 903.87 852.94

Profit before Interest, 84.16 71.27 Depreciation, and tax

Interest 48.15 42.42

Depreciation 12.42 14.44

Profit before Tax 23.59 14.41

Provision for Taxation 3.92 3.28

Profit after Tax 19.67 11.13

Profit available for 19.67 11.13 Appropriation

Transfer to General Reserve 3.00 1.00

Balance carried to Balance Sheet 16.67 10.13

Dividend

In order to conserve the cash resources, your directors do not recommend payment of dividend.

Year in Retrospect

During the year under review the Company could earn Gross Income of Rs. 903.87 lacs against Rs. 852.94 lacs of previous year, registering growth of 6% whereas the Gross Profit before interest, depreciation and tax reached Rs. 84.16 lacs against Rs. 71.27 lacs of previous year and Net Profit reached to Rs. 19.67 lacs against Rs. 11.13 lacs of previous year which show the rise of 77%.

The Company continues to pursuit excellence in the performance mainly by controlling the rising costs and by expanding the manufacturing facilities. Operations at Plant of Erythromycin Estolate are stablised and has started generating revenues regularly. Although expansion project of manufacturing Paracetamol was delayed mainly due to delay in procurement and supply of machinery and delay in stabilizing the production with New Technology, it has become operative and has commenced generation of revenues to the Company.

The Company, on expansion of existing paracetamol plant being operative and other Bulk Drugs productions having stabilized, expects better future in coming years.

Directorate

Shri. Nilesh I. Kamdar retires by rotation and being eligible,offers himself for reappointment.

Shri Pankaj N. Pandya has been appointed a Director by the Board of Directors of the Company on 1/04/97 and the Company would again avail his expertise as a Director of the Company.

Shri. Ramesh Bhagat resigned as a Director, owing to his other occupations, effective from 31-3-1997. Smt. Prafullaben N. Pandya who was appointed as an additional Director of the Company from 20th June 1997, has resigned with effective from 20th August, 1997, in view of her other occupation. The Board places on record the contributions received from each one of them during their tenure as Directors of the Company.

Energy, Technology & Foreign Exchange

Information in accordance with the provisions of Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosures of particulars in the report of Board of Directors) Rules, 1988 regarding conservation of energy, technology absorption and foreign exchange earnings and outgoings, is given in the Annexure forming part of this report.

Particulars of Employees

As required under the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, information is not furnished as no employees are covered thereunder.

Auditors

The Auditors M/s. S. G. Bhagwat & Co., retire at the conclusion of the ensuing Annual General Meeting and being eligible, offer themselves for reappointment. Members are requested to appoint Auditors and fix their remuneration.

Public Deposits

During the year under review, the Company has not accepted any Fixed Deposits under Section 58A of the Companies Act, 1956.

Acknowledgement

The Board places on record its deep appreciation for the continued support received from Banks, all the staff members and workmen for furthering interest of the Company.

ANNEXURE TO THE DIRECTORS' REPORT

(Information under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors' Report for the year ended 31st March, 1997.

A. CONSERVATION OF ENERGY :

(a) Energy Conservation measures taken

- Optimum batch size.

- Elimination of idle running time.

- Inventory planning & control.

(b) Additional Investments and proposals being implemented for reduction in consumption of energy.

The Company has ongoing study and survey of actual energy consumption of equipments and less efficient equipments are replaced by more efficient equipment.

(c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods.

The measures taken have resulted in saving in the cost of production.

(d) Details of Energy Consumption for production : As per Form-A

B. TECHNOLOGY ABSORPTION :

Research & Development and Technology Absorption :

Considering the size of the unit and nature of products, the avenues for R & D are very limited and therefore not applicable.

C. FOREIGN EXCHANGE, EARNING & OUTGO :

1) Total foreign exchange used and earned :

i) Foreign Exchange used : Rs. 9,48,848/-

ii) Foreign Exchange earned : Rs. Nil.