ABL BIOTECHNOLOGIES LIMITED
ANNUAL REPORT 2011-2012
Your Directors present the 20th Annual Report, together with the Audited
Accounts for the year ended on March 31st, 2012.
During the year under review, the Company did not have any revenue
generating business. All its efforts are now concentrated on its research
activities, from which, it is hoped that its revival will commence. The
Company recorded a loss of Rs.17.92 lakhs on account of Depreciation
charges Rs. 6.77 lakhs, Misc. Expenses written off Rs. 499 lakhs and other
overhead expenses of Rs. 537 lakhs.
Your Company has not conducted any business during last year but has
focused itself at restructuring its operations and objectives, so as to
take advantage of its experience and Intellectual property and become a
full fledged technology provider.
* R&D Division
The research operations of the Company have been relocated successfully in
leased premises at Bangalore. With the induction of qualified personnel and
re-initiation of a few select programs, it is hoped that technology
development efforts will lead the Company to greater success. The R & D
activities were transferred to its 100% subsidiary ABL Research Pvt.Ltd,
located in Bangalore.
The DHA Project
Your Directors are happy to inform that the Company's 22 litre pilot
fermenter is operating well in the new Research Facility under a new team
and fine tuning of various processes for the production of fatty acids is
underway. Your Directors are also happy to inform that its efforts in
pursuing Intellectual Property and filing patent applications in the USA,
Europe and India have been successful. The Company hopes to attract
partnerships in establishing commercial scale facilities for a number of
Fatty Acids, in the days to come.
* Formation of Special Purpose Vehicles
Your Company has chosen a strategy of incorporating three new wholly owned
subsidiaries of ABL Biotechnologies Ltd, in order to facilitate focus on
activity and invite investments in the respective business segments.
Accordingly three wholly owned subsidiaries were formed on 30th March 2011
ABL Research Pvt.Ltd, (R & D segment) a wholly owned subsidiary of ABL will
now focus on select technologies and developmental objectives, with a view
to market requirements and commercialisation objectives. As mentioned
before it is functioning in full swing at Bangalore.
ABL Healthcare Pvt. Ltd (Formulation segment) a wholly owned subsidiary of
ABL, will focus on formulation development and manufacture of various types
of contract manufacturing businesses. It will seek to successfully
commercialise over 450 formulations developed and enhanced them, in the
days to come. It has not been activated yet.
ABL Lipids Ltd, (Fatty acids DHA Segment) a wholly owned subsidiary of ABL,
will now focus on commercialisation and manufacture of a variety of Fatty
Acids and derivatives for the international nutrition and pharmaceutical
industry. Initially, major efforts are being focused at either Technology
sale or Joint Ventures in the area of Lipids.
The shares of the Company are listed in the Mumbai and Luxemburg stock
exchanges. The shares of the Company are traded in the demat form.
The Company continues to follow the code of Corporate Governance during the
year under review. A separate report on the same is attached.
Your Company has not accepted any deposits from public during the year
Mr. K. O. Isaac, Managing Director's term expires and Company has received
a notice in writing from a member under section 257 of the Act proposing
his candidature for the office of the Managing Director of the Company.
M/s. Pratapkaran Paul & Co., Chartered Accountants, Chennai, Auditors of
the Company retire at the ensuing annual general meeting and are eligible
for reappointment. A notice has been received under section 224(1 B) of the
Companies Act, 1956 from them confirming their eligibility for
Your Directors place on record their appreciation of the sincere and
dedicated services rendered by all the employees during the year under
None of the employees have received remuneration in excess of the sum
prescribed u/s 217(2A) of the companies Act 1956.
Directors' Responsibility Statement
The Directors confirm that:
* in the preparation of the Annual Accounts, the applicable Accounting
Standards have been followed.
* they have selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as on 31st
March, 2012 and of the Profit and Loss of the Company for that period.
* proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
* the annual accounts are prepared on a going concern basis
Energy, Technology Absorption & Foreign Exchange
Information in accordance with the provisions of Section 217(1)(e) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 regarding conservation of
energy, Technology absorption and Foreign Exchange earnings and outgo are
Conservation of Energy
Energy conservation is not applicable to the biotechnology industry.
The technology for microbial metabolites is developed indigenously and
hence absorption of foreign technology does not arise.
Foreign Exchange Earnings & Outgo
There were neither any earnings nor any expenditure in foreign exchange
during the year. Acknowledgement
The Board of Directors wishes to place on record its gratitude to the
Department of Science and Technology, Department of Bio-Technology and the
other Institutions/Organizations/Agencies who have supported the company
during the year.
For and on behalf of the Board of Directors
Date : 03/09/2012 K. O. Isaac
Place: Chennai Chairman and Managing Director
MANAGEMENT DISCUSSION AND ANALYSIS
Industries Structure, Development and outlook
Indian Pharmaceutical industry is the world's second largest by volume and
likely to lead the country's manufacturing sector. India's Bio - tech
industry clocked a 17% growth in the fiscal 2009 -10. Association of
Biotechnology-led Enterprises (ABLE) estimates the industry to grow to $ 5
billion in revenue in near future. Indian Bio-tech market is dominated by
Bio-pharmaceuticals which registered a growth of 30% in 2009 - 10 and
contributed 60% of the industry's growth. Out look of the industry is
prospective but there are challenges to be faced by the industry.
Your company being primarily a technology development company is in the
process of re- structuring its business model to focus on converting
technologies and marketing them to industry. Thus the years ahead will be
focused at completing development of selected projects and working on out
licensing them to industry.
As mentioned earlier in the report that the company as a strategy is
currently not pursuing the formulation segment of the business. Hence there
was no sale recorded during the year. Company incurred a loss of Rs. 17.92
lakh on account of fixed expenses during the year under review.
Internal control system and adequacy
The system of internal control has been established to provide reasonable
assurance of safeguarding assets, maintenance of proper accounting records
in compliance with applicable Laws and Regulations to ensure reliability of
financial statements and reports. The Statutory Auditors and the Audit
Committee review all financial statements and ensure adequacy of internal
Risk evaluation and management of risk is an ongoing process in the
Since your Company is in the Biotechnology Industry, the criticality of
talented man-power and their retention needs no emphasis. Your company is
in the process of working out a comprehensive plan to attract, motivate and
retain highly skilled and technically competent man-power.
Statements in the Management discussion and analysis describing the
company's objectives, projections, estimates and expectations may be
'forward looking statements' within the meaning of applicable laws and
regulations. Actual results could differ materially from those expressed or
implied. Important factors that could make a difference to the company's
operations include economic conditions affecting demand/supply and prices
conditions in the domestic and overseas markets in which the company
operates/ going to operate, changes in government regulations, tax laws and
other statutes and other incidental factors.
Place: Chennai for ABL Biotechnologies Limited
Date : 03/09/2012
K O Isaac
Chairman and Managing Director