GUJARAT INJECT (KERALA) LIMITED
ANNUAL REPORT 2006-2007
Your Directors have pleasure in presenting the 16th Annual Report of the
company and Audited Statement of Accounts for the year ended 31st March,
FINANCIAL RESULTS : Current year Previous year
from April, 2006 from July, 2005
to March 2007 to June 2006
(Rs. in lacs) (Rs. in lacs)
Profit/Loss before Depreciation & Tax 19.27 18.15
Less : Depreciation 48.04 36.74
Less : Provision for income tax for
earlier year 0.20 0.41
(Profit /Loss) : for the year ) (-)28.97 (-)19.00
Add (Less) : Profit/Loss brought }
forward from previous year } (-)2335.19 (-)2316.19
Balance carried to Balance Sheet (-)2364.16 (-)2335.19
Since the company has not made profits during the year, your Directors do
not recommend any Dividend for the financial year ended 31st March, 2007.
REVIEW OF WORKINGS & OPERATIONS
The year under review with respect to the plant capacity utilization
achieved at 83% of the installed capacity. The Company had added one more
Bottle pack Machine supplied by M/s. Fresenious Kabi (india) Pvt. Ltd.,
Pune for production of I.V. Fluids in 100 ml bottles last year and achieved
a capacity utilisation of 64% during this financial year.
The total production of (500ml & 100 ml) is 80 lac bottles which has
enabled company to earn total income of Rs. 2,45,02,819 for a period ended
31st March 07 (Previous year Rs. 1,97,29,314 for a period of 9 months) and
generated operational profit of Rs. 19.27 lacs.
However, the Company has not been able to generate net profit for the
period ended 31.03.2007 after providing the depreciation.
The company had submitted a restructuring scheme to IFCI in the month of
May 2006. IFCI did not find it comfortable to consider a rehabilitation
proposal based on long term servicing and instead suggested for reduced
time frame, preferably settlement.
The company had started negotiation with M/s Fresenius-Kabi India Pvt ltd
for a revised settlement proposal as required by IFCI., In the meantime,
the winding up petition pending before the Hon'ble High Court of Kerala was
listed for final hearing.
The company has submitted a 5 yeas cash flow to the High Court based on the
additional revenue generation expected from the capacity enhancement
proposed by Fresenius-Kabi as per their Affidavit filed before the Hon'ble
High Court a/w company's affidavit. Hon'ble High Court vide its order dated
6th March 07 has remanded the matter back to BIFR with a direction to
review the proposal filed by the company.
Accordingly the company will submit a rehabilitation scheme before the BIFR
authorities for approval. In the meantime, all legal proceedings shall be
suspended till final disposal of the matter by BIFR.
In view of the restructuring proposal submitted to IFCI earlier as well as
the cash flow submitted to Hon'ble High Court seeking complete waiver of
simple Interest, Compound interest and liquidated damages accumulated upto
31.03.07. The company has decided not to provide the interest on its
secured loan for the period under review.
The DRT matter is under adjudication with the appropriate Courts.
In terms of Section 58A of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules 1975, we report that your Company has not
accepted or renewed Fixed Deposit during the year under review.
All the properties and insurable interest of your Company are adequately
PARTICULARS OF EMPLOYEES:
As regards the details of remuneration paid to employees as required under
Section 217 (2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules 1988 as amended, no employee in the
Company drawing remuneration above the specified limit of salary and hence
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
Information pursuant to section 217(1) (e) of the Companies Act, 1956 read
with the Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1988 is given in Annexure A to the Report and forms part
of the same.
During the year under review, Dwipa Mankodi retires by rotation and being
eligible offers herself for reappointment.
DEMATERIALISATION OF SHARES:
As on 31.03.2007 1585750 equity shares have been dematerialized, out of
which 1316648 shares have been dematerialized with NSDL and 269102 with
During the year the audit committee meetings were conducted as per the
provisions of listing agreement with stock exchange. The details about
Role, power etc. of audit committee enumerated in Corporate governance
report forming part of this report.
The notes forming part of the accounts are self-explanatory and do not call
for any further clarifications under section 217(3) of the Companies Act,
NOTE NO. 09 During the year 97-97 promoters had decided to infuse funds by
way of equity capital to tied over the financial difficulties. Accordingly
the authorized capital has been enhanced by Rs. 2 Crores in the EGM. But,
on sudden demise of the main Promoter Sri. Y.R. Mankodi they could not able
to proceed the matter further.
Non-Provision of Interest : It is to be mentioned that with respect to the
auditor's note on Non provision of interest for the current book balances
of secured lenders, the same has been explained in the notes to accounts.
To avoid duplication, the same has not been explained here.
AUDITORS : M/s. Krishnamoorthy & Krishnamoorthy, Chartered Accountants,
retiring auditors hold office upto the ensuing Annual General Meeting and
are eligible for reappointment. They have submitted a certificate for their
eligibility for reappointment under Section 224 (1B) of the Companies Act,
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to section 217(2AA) of the Companies Act, 1956, the Directors
confirm the following in respect of the audited accounts for the period
ended 31st March 2007.
1. That in the preparation of the annual accounts, the applicable
accounting standards have been followed.
2. That the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that ore reasonable and
prudent so as to give a true and fair view of the state affairs of the
company at the end of the financial year arid the profit/loss of the
company for that period.
3. That the Directors have Taken proper and sufficient core for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 safeguarding the assets of the
company and for preventing and detecting fraud and other irregularities.
4. That the Directors have prepared the annual accounts on a going concern
Your Directors gratefully acknowledge the support and service rendered to
the Company by KSIDC, Bankers, Financial Institutions, Government
Authorities, Shareholders and Associates. Your Directors also gratefully
acknowledge the spirit and dedication of the employees, who have in their
untiring efforts to improve and strengthen the working of the Company.
By the order of the Board of Directors of
Registered Office : GUJARAT INJECT (KERALA) LIMITED
Dist. Palghat (Kerala)
Palghat - 678 625. Sd/-
Place: Palakkad Dwipa Y. Mankodi
Date : 16-8-2007 (Director)
ANNEXURE 'A' TO THE DIRECTORS REPORT
Information regarding conservation of energy, technology absorption and
foreign exchange earnings and outgo required to be furnished pursuant to
the Companies (Disclosures of Particulars in the Report of the Board of
Directors) Rules 1988 and forming part of the Directors Report for the year
ended 31st March, 2007.
A. CONSERVATION OF ENERGY:
a. Energy conservation measures taken:
Stringent standards for conservation of energy are enforced in the entire
plant. Leakage of steam is minimized by making all the pipelines leak
b. Additional investment and proposals, if any, being implemented for
reduction of consumption of energy.
c. Impact of the measures at (a) and (b) above for reduction of energy
consumption consequent impact on the cost of Production of goods Measures
taken for minimizing leakage of steam have resulted into maintaining the
cost of steam at minimum level.
d. Total energy consumption and energy consumption per unit of production
as per Form-A of the Annexure in respect of industries specified in the
Details of total energy consumption and energy consumption per unit of
production are given in Form-A hereunder
B. TECHNOLOGY ABSORPTION
Efforts make in technology absorption as Form - B:
The relevant information is given in Form-B hereunder.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
1. Exports - Nil
2. Foreign exchange used and earned : Nil
FORM - A
Form for disclosure of particulars with respect to energy
A. POWER AND FUEL CONSUMPTION:
a. Purchased Units 1048848 837720
Total Amt (Rs.) 4133052 3271231
Rate/Unit (Rs.) 3.94 3.91
b. Own Generation
(i) Through Diesel Generator 98580 76997
(ii) Through steam Turbine/Generator Nil Nil
2. Coal (Specify quality and where used Nil Nil
3. Furnace Oil
Qty. (K.Ltrs) 255560 208190
Total Amt.(Rs.) 5661827 4168430
Average Rate (Rs.) 22.15 20.05
4. Other / Internal Generation Nil Nil
B. CONSUMPTION PER UNIT OF PRODUCTION
Standard Current Previous
(if any) (year) (year)
Production (with details) Units
(i) IV solution in disposable plastic
containers (100 & 500 ml) 8039020 6963057
(ii) Haemodialysis concentrate jars - - -
(iii) Electricity Per Unit of 0.51 0.47
Furnace Oil - do - 0.71 0.60
Coal (specify Qty) - - -
Others (specify Qty) - - -
For disclosure of particulars with respect to absorption, research and
1. Specify areas in which R&D carried out by the company:
2. Benefits as a result of the above R&D : } The company is facing
} severe cash crunch and
3. Future Plan of Action } no plan of putting up a
} research & development Unit
4. Expenditure on R&D } and therefore no information
a. Capital } is available in reply of these
b. Recurring } points (1 to 4)
c. Total }
d. Total R&D expenditure as a }
percentage of total turnover: }
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:
1. Efforts in brief, made towards technology absorption, adaptation and
innovation The Company has been employing latest technology as used in the
European countries for manufacture of intravenous transfusion fluids.
2. Benefits derived as a result of the above efforts e.g. product
improvement, cost reduction, product development, import substitution etc.,
As the time span is short since the Company started commercial production,
no information is available regarding the above.
3. In case of imported technology (imported during the last 5 years
reckoned from the beginning of the financial year) following information
may be furnished:
(a) Technology import : }
(b) Years of import : } Not applicable as the
(c) Has technology been fully absorbed ? : } has not been using imported
(d) If not fully absorbed, areas where } technology
this has not taken place, reasons thereof }
and any future plans of action }
For and on behalf of the Board of Directors of
GUJARAT INJECT (KERALA) LIMITED
Dwipa Y. Mankodi
Place: Palakkad (Director)
Date : 16-8-2007