Your Directors have the pleasure in presenting their 28th Annual Report andaudited Accounts of your Company for the year ended 31st March 2014.
FINANCIAL RESULTS :
| ||2013-2014 ||2012-2013 |
| ||(Rs. in Lacs) ||(Rs. in Lacs) |
|Earnings before Interest Depreciation & Tax (EBITDA) ||47.30 ||62.39 |
|Less: Bank Charges and Interest ||8.41 ||20.21 |
|Depreciation ||26.24 ||26.19 |
|Profit before Taxation ||12.65 ||15.99 |
|Less/ (Add): Provision for Current Tax ||2.29 ||2.97 |
|Provision for Deferred Tax ||3.71 ||5.04 |
|Profit after Taxation ||6.65 ||7.98 |
1) During the year under review the Government of India finally notified the DrugsPrice Control Order 2013 in May-2013 regulating the Prices of 348 essential medicinescovered under the National List of Essential Medicines. The order was made effective from1st July 2013. like most of the Companies in Pharmaceutical Industry yourcompany was also affected by the DPCO 2013 since more than dozen of the companiesproducts came under price control with the reduction in prices ranging from 20% to 40%.Further the stockiest and retailers refused to lift the goods from all companies until
a) The new prices were announced
b) The Goods with new prices were supplied to them
Further stand taken by the stockiest of getting the old margins for newly covered pricecontrolled items also affected the Sales during the year under review. Inspite of allthese hurdles your Company maintained top line though the bottom line was affected by thecompressed margins.
The total revenues of the company stood at Rs.792 lacs compared to Rs.779 lacs ofprevious financial year an increase of 2 %.
The earnings before Interest Depreciation and tax was also lower at Rs. 47.30 Lacsduring the year under review compared to Rs. 62.39 Lacs in the previous year. The profitbefore tax was Rs. 12.65 Lacs the net profit after providing for Income Tax and DeferredTax Liability was Rs. 6.65 Lacs . Net profit would have been higher except for increase inthe staff cost particularly incurred to retain the productive field staff and the increasein Material Cost.
Your Directors are unable to recommend any dividend during the year under reviewconsidering the small surplus available and with a view to conserve funds towards marginmonies.
LISTING OF SHARES:
The shares of your Company are listed in Stock Exchange Mumbai. Annual Listing Feesfor the year 2013-14 has been paid on time.
PUBLIC DEPOSITS :
The Company has not invited / received any fixed deposits during the year.
The Board consists of Executive and Non-Executive directors including independentDirectors who have wide and varied experience in different disciplines of corporatefunctioning. In accordance with the provisions of Companies Act 2013 as amended fromtime to time and Article of Association of the Company Shri. A. Krishna Kumar who retiresby rotation at the ensuing Annual General Meeting and being eligible offers himself forre-appointment.
Pursuant to the order issued by Central Government Under Section 233B of the CompaniesAct 1956 The Board of Directors of your Company have appointed MR. K. R. VaidyanathanCost Accountants for conducting the Audit of Cost Accounting records maintained by theCompany for its formulations.
DIRECTORS' RESPONSIBILITY STATEMENT:
In terms of provisions of Section 217[2AA] of the Companies Act 1956 your Directorsconfirm that:
I. In the preparation of the annual accounts the applicable accounting standards havebeen followed along-with proper explanation relating to material departures whereverapplicable.
II. The Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as at the end of the accounting year andof the profit of the company for that year;
III. The Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act as amended from time totime for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities;
IV. The Directors have prepared the annual accounts on a going concern basis.
During the year under review relations between the Employees and the Managementremained cordial.
There are no employees falling within the provision of Section 217 (2A) of theCompanies Act 1956 read with the Companies (Particulars of Employees) Rules 1975 asamended from time to time.
CONSERVATION OF ENERGY:
Except for the consumption of Power (Electricity) the Company does not consume anyother source of energy. Pharmaceutical company is not power intensive. Since it alsoinvolves multiple products disclosure of consumption of power per unit of product is notmeaningful.
TECHNOLOGY ABSORPTION ADAPTATION AND INNOVATION:
No imported technology is adapted by the Company. Continuous developmental efforts aremade by our qualified and approved staff to formulate new products and innovation ofexisting products. Such efforts have benefited in improving the stability of our productsand simplification of manufacturing procedures.
During the year under review Foreign exchange earned Rs.Nil( Previous Year - Rs.NIL/-). Foreign exchange outgo was Rs. NIL (Previous Year - NIL /-).
RESEARCH AND DEVELOPMENT:
Your Company has not incurred any expenditure on research and development other thanthe routine developmental work.
REPORT ON CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange the followingform part of this Annual Report:
i) Management Discussion and Analysis.
ii) Report on Corporate Governance.
iii) Auditor's Certificate regarding compliance of conditions of Corporate Governance.
Your Company is not a polluting industry and the requirements of Pollution ControlBoard if any are met with.
M/s. S. V. Bhat & Co. Chartered Accountants retire as auditors of the Company atthe conclusion of the 28th Annual General Meeting and are eligible forreappointment.
Your Directors would like to acknowledge the co-operation they received during the yearunder review from Bankers Distributors as well as from various Government Departments andalso the investing public. We would also like to place on record our profound admirationand sincere appreciation of the hard work put in by the members of the staff and workmen.We are grateful to you for the confidence and faith you have reposed in us.
| ||For and on behalf of the Board |
| ||Dr. L. S. Mani |
| ||Chairman & Managing Director |
|Mumbai 15th May 2014 || |