ANNUAL REPORT 1998-99
PAN DRUGS LIMITED
Your Directors' have pleasure in presenting herewith Sixth Annual report
for the year ended 31.03.1999 of your Company. The following figures
summarise the working results for the year:
YEAR IN RETROSPECT
During the year under review, your 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%.
Your 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 tie performance of the Company. mainly by increasing the
cost of borrowing / fund for upward growth of the Company.
Your 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.
Your 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 your 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
Shri Pankaj Pandya resigned as a Director f rom 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
Shri S.S.Reddy retires by rotation and being eligible offers himself for
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.
Software and Hardware of Information Technology of the Company are being
made Y2K Compliant by necessary upqradation 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 08.08.1999.
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
All the properties and assets of the Company are adequately insured, risks
arising out of non insurance are minimal.
During the year, the Company has not accepted any Fixed Deposits under
Section 58A of the Companies Act. 1956.
The Board places on record its deep sense of appreciation for the continued
support received from Banks all the staff members and workmen for
furthering interest of the Company.
For and on behalf of the Board
Date :24.09.1999 Kamal Pandya
Place :Baroda Chairman & Managing Director
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 31
A CONSERVATION OF ENERGY:
(a) Energy Conservation measures taken
Optimum batch Size.
Elimination of idle running time.
Inventory planning & control.
b) Aditional Investment and proposals being implemented for reduction in
consumptin of energy.
The Company has ongoing study and survey of actual energy consumption of
equipments and less efficient equipments are replaced by more efficient
(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 224,04,477/-