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P C I Chemicals & Pharmaceuticals Ltd.

BSE: 524792 Sector: Health care
NSE: N.A. ISIN Code: N.A.
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P C I Chemicals & Pharmaceuticals Ltd. (PCICHEMICALS) - Director Report

Company director report

PCI CHEMICALS AND PHARMACEUTICALS LIMITED DIRECTORS' REPORT To The Members, Your Directors have pleasure in presenting the Twentieth Annual Report of the company together with Audited Statement of Accounts for the year ended 31 st March,1998. OPERATION During the year under consideration there has been slight increase in the operation of the company. The sales and other income registered during the year was Rs.2261.24 Lacs as against previous year total of Rs.2188.35 Lacs which represented an increase of 3.20 %. The operating Profit for the year amounted to Rs.32.49 Lacs as compared to Rs. 65.78 Lacs for the previous year which represented a decrease of 49.39 %. The profitability constrained during the year mainly due to increase in cost of production and overhead expenses as also other factors responsible for decline are general recessionary trend prevailing in the Indian economy, heavy competition, liquidity crunch, unstable finance market, high cost of finance etc. Your Directors have already taken effective steps to boost the sales and profitability of the company and expect better results in current financial year. DIVIDEND In view of the inadequacy of profit Your Directors expressed their inabilities to recommend any dividend for the Financial Year 1997-98. REDEMPTION OF 20,000 REDEEMABLE CUMULATIVE PREFERENCE SHARES During the year company has started redemption of 20,000 14% Redeemable Cumulative Preference Shares of Rs. 100/- each at par and so far company has repaid 9,86,000/-to the Preference Shareholders who has submitted duly discharged Preference Share Certificates to the company. PRODUCT DEVELOPMENT Your company has planned to launch two promising new generation molecules showing good future potential & growth. These products are growing at more than 1005in the market. The proposed new products to be launched are Azimycin and Sulindol. The Azithromycin (Azimyci) is a once a day new macrolide and Nimesulide (Sulindol) is a new Anti-inflammatory,analgesic and Anti-pyretic. The new products have good gross margins and are going to be a part large growing market. The Anti-malarial season did not go to peak this year which resulted into erosion of demands for the company's Anti-malarial product range, however the concept of malaquin 1000 has been meeting with increased acceptance from the market. NEW BULK DRUG PROJECT Your Directors decided to stalled the Bulk-Drug Project due to abysmal demand and severe competition from the China and other South East Asia countries. COST AUDIT The company's manufacturing sales was less than Rs. 10 Crores during the year and the company being a SSI is eligible for exemption from the compulsory cost audit. PROJECTIONS V/S ACTUALS The profitability projections for the 1997-98 as per the Prospectus dated 08.12.94 and the actuals against the same compared below: Particulars 1997-98 Projection Actuals Net Sales (Rs in Lacs) 6060.25 2259.89 Net Profit (Rs in Lacs) 283.00 4.59 Earning per Share (Rs.) 9.43 0.81 The projected Sales/Profitability differed with the actual sales & profitability achieved in the year 1997-98 due to stalling of Bulk Drug Project at G.l.D.C Ankleshwar as stated in the Prospectus dated 08-12-94. The Board of Directors are planning to enlarge the product range of existing formulation unit as proceeding with Bulk Drug project will be a very risky proposition at this juncture. DIRECTORATE: Mr.K.M.Shah, Mr.M.C.Patel and Mr.J.C.Patel retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re- appointment. AUDITORS AND THEIR REPORT: M/S Balsekar & Desai, Chartered Accountants, Mumbai ,the retiring Auditors of the company, retire at the ensuing Annual General Meeting and being eligible offer themselves for re- appointment.The members are requested to appoint the Auditors . The specific notes forming part of the Accounts referred to in the Auditors' Report are self-explanatory and do not require any further elucidation. SUBSIDIARY COMPANY: The Report of the Directors of P.C.I. Organics Pvt. Ltd., an erstwhile subsidiary of the company and the statement of accounts of the said company for the year ended 30th June, 1998 together with the Auditors Report thereon have not been attached as the said company is no more a Subsidiary of the company FIXED DEPOSITS The company has not invited any deposits from public during the year 1997- 98. PARTICULARS REGARDING CONSERVATION OF ENERGY,ETC The 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 Board of Directors Rules.1988 regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is given in the statement annexed 'A' & 'B' hereto forming cart of the Report. PARTICULARS OF EMPLOYEES: The information required U/5.2172A) of the Companies Act,1956, read with the Companies Particulars of Employees) Rules,1975 have not been given as nc employee has drawn salary stipulated in the said Section during Financial Year 1997-98. INDUSTRIAL RELATIONS The industrial relations continued to be cordial and friendly. INSURANCE The assets of the company have been adequately insured. APPRECIATION: Your Directors wish to place on record their grateful appreciation for the devoted services of the workers, staff and officers who have largely contributed to the efficient Management of the Company. The Directors gratefully acknowledge continuing support received from the shareholders,Bankers, Financial Institution and Govt. Departments Your Directors also thank medical profession traders and consumers for their patronage of the company's products. ON BEHALF OF THE BOARD OF DIRECTORS K.M.SHAH (Chairman & Whole-time Director) Place : Mumbai. Dated : 30th September,1998 ANNEXURE TO DIRECTORS' REPORT FORM "B" DISCLOSURE OF PARTICULARS WITH RESPECT TO RESEARCH AND DEVELOPMENT 1. RESEARCH AND DEVELOPMENT 1. The specific areas in which R & D carried out by the Company: - New product Development - product Improvement - Process Development The Company conducts its Research & Development at its Plant at Ankleshwar, Gujarat. 2. Benefits Derived as a result of the above R & D: The Research and Development efforts resulted in Development of new products. 3. Future Plan of Action: The Company will continue to lay emphasis on the main areas of R & D mentioned in paragraph 1 above. Current Year Previous Year. 1997-98 1996-97 Rupees Rupees 4. The Expenditure of R D a. Capital - - b. Recurring - 48,000 c. Total - 48,000 d. Total Research Expenditure as - 0,022 percentage of total turnover Il.TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION 1 Efforts in brief made towards technology absorption, adaptation and innovation Not Applicable 2. The benefits derived as result of the above efforts. Not Applicable 3 imported Technology Not Applicable Ill.FOREIGN EXCHANGE EARNINGS AND OUTGO The details of foreign exchange earning and outgo are given in Notes to Accounts.