SUPRIYA PHARMACEUTICALS LIMITED
ANNUAL REPORT 2002-2003
The Members of
Supriya Pharmaceuticals Limited
Your Directors have pleasure in presenting the Seventeenth Annual Report
and the Audited Statement of Accounts for the year ended 30th September,
Financial Results Year ended Year ended
Sales & Other Income 827.43 1576.65
Operating Profit 157.27 275.66
Financial Charges 27.46 18.96
Gross Profit 129.81 256.70
Depreciation & Non Cash write off 41.45 39.75
Profit (Loss) Before Tax 88.36 216.95
Your company has achieved a turnover of Rs. 827.43 Lacs, for the year ended
on 30.09.2003 in comparison to Rs. 1576.65 Lacs achieved during the
previous financial year representing a decrease of 47.50%. The company has
posted cash profit of Rs. 129.81 Lacs, for the year ended on 30.09.2003 as
compared to a cash profit of Rs. 256.70 Lacs during the previous year. The
operating margins have improved, the turnover has declined due to the time
devoted to changes carried out in the plants including putting up of new
recovery systems. The positive results Of these changes shall be visible in
the future years. The management is confident of overall improvement in the
operations of the company.
Your Directors do not recommended any dividend for the year ended 30th
The Company has not accepted any fixed deposits during the year.
The equity shares of your Company are listed on the Stock Exchanges at
Mumbai, Delhi, Ahmedabad and Jaipur,
The results that the company has achieved during the year would not have
been possible without the co-operation & support of our employees. The
directors express their appreciation for the contribution made by the
employers to the operations of the company during the year.
There is no employee in the company whose particulars are required to be
given under section 217 (2A) of the companies Act, 1956.
Mr. Dharam Singh retires by rotation from the Board and being eligible,
offer himself for reappointment. The term of Mr. Sunil Gandhi, Mr. Gagnish
Arora, Mr. C. R Madoukumar & Mr. S. N. Shukla all being additional
directors, shall expire at this coming Annual General Meeting and being
eligible, all of them offer themselves for reappointment.
Brief resume of the above directors and the membership/chairmanship of
committees of the Board, as stipulated under clause 49 of the Listing
Agreement with the Stock exchanges, are given in the section on Corporate
Governance elsewhere in the Annual Report.
MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT
Management discussions and Analysis Report as required under the listing
agreement With the Stock, exchanges enclosed and forms part of the
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirements under Section 217 (2AA) of the Companies Act,
1956, with respect to Directors Responsibility Statement it is hereby
(i) in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
(ii) the Director had selected such accounting policies and applied them
consistently and made judgement & estimates that are reasonable & prudent
so as to give a true & fair view of the state of affairs of the Company at
the end of the financial year and of the profit and loss of the Company for
(iii) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the Assets of the Company and fro
preventing and detecting fraud and other irregularities ; and
(iv) the Directors have prepared the annual accounts of the Company on a
going concern basis.
M/s. Doogar & Associates, Chartered Accountants, Statutory Auditors of the
Company hold office until the conclusion of the forthcoming AGM and are
eligible for re-appointment. The Company has received letter from them to
the effect that their appointment, if made, would be within the prescribed
limits under Section 224 (1-B) of the Companies Act, 1956.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
The information relating to energy conservation, technology absorption.
foreign exchange earnings and outgo required to to disclosed under the
Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988 is annexed and forms part of this report.
The Corporate Governance report and the certificate from the Auditors of
the company regarding compliance of conditions of Corporate Governance as
stipulated under clause 49 of the Listing Agreement with the Stock
Exchanges forms part of the Directors Report.
Your Directors would like to express their grateful appreciation for the
assistance are co-operation received from the Financial Institutions,
Banks, Government Authorities. Customers, Vendors and Shareholders during
the year under review.
Your Directors also wish to place on record their deep sense of
appreciation for the services of the Executives, Staff and workers of the
For and on behalf of the Board of Directors
Place: New Delhi VIJAY JULKA
Date: 11.11.2003 Managing Director
Information as per Sec 217(1)(e) read with Companies (Disclosure of
particulars In the report of Board of Directors) Rules, 1988 and forming
part of the Directors Report of the year ended 30th September 2003.
A. CONSERVATION OF ENERGY
a) Energy conservation measures taken
i. Efforts have been made to create awareness among the user members for
the judicious use of energy and for its conservation.
ii. The maintenance and operating staff members are being imparted regular
training for maintenance of the energy consuming devices in appropriate
manner with an objective to conserve energy in operations on regular basis.
iii. The energy consuming equipment are monitored regularly and are
subjected to preventive repairs, etc. to conserve energy.
b) Additional Investment & proposals if any, being Implemented for
reduction of consumption of energy
No separate investment is proposed as yet, however, the expenses on
training of staff are being considered as part of the operational
expenditure. The segregation of expenses on this account has not been done.
c) Impact of the measures as (a) & (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods.
d) Power & Fuel Consumption:
As at As at
(i) Purchased Units 1278948 1395137
Total Amount (in Rs.) 5685989 6547822
Rate/Unit 4.45 4.69
(ii) Own Generation through DG set
Units 146411 105250
Unit Per liter of Diesel oil 4.10 4.21
- Cost/Unit 4.75 4.83
2. FURNACE OIL
Quantity (K. Ltrs) 237 196
Total Amount (in Rs.) 3968268 2612454
Average Rate/ Ltrs 16.74 13.33
(i) Consumption per unit of Production
Electricity (Unit/M.T) 4189 3744
Furnace oil (Ltrs/M.T) 681 489
B. TECHNOLOGY ABSORPTION
1. RESEARCH & DEVELOPMENT
(i) Specify area in which R & D carried out by the Company :
The R & D efforts of the company is directed towards in the following
a). Quality assurance & improvement of existing products.
b). Improvement in existing Production: processes & design and productivity
(ii) Benefits derived as a result of the above R & D
Improvement in yields & and production, losses, improved solvent recoveries
(iii) Future plan of Action
The R & D efforts are being directed for cost reduction, process
optimization and upgrading of existing technologies.
(iv) Expenditure on R&D
a. Capital Nil
b. Recurring Nil
c. Total Nil
2. TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION
The technologies developed as a result of R & D efforts were properly
absorbed, which has resulted in product improvement and better yields.
C. FOREIGN EXCHANGE EARNING & OUTGO
a) Total Foreign exchange earning NIL NIL
b) Total Foreign exchange outgo NIL 1.12
MANAGEMENT DISCUSSION AND ANALYSIS
1. Supriya Pharmaceuticals Limited (Supriya) values its contribution to b
its customers and medical profession. The company has therefore planned its
strategic growth, keeping in view the expectations of its customers and
Supriya has state of the art manufacturing facilities, which are regularly
upgraded from time to time with changes in technologies and general
practice. Semi Synthetic Penicillins (SSPs) contribute a major part of
company's business. Supriya takes care to remain a quality conscious and
cost efficient producer.
Pharma industry in India is witnessing a metamorphosis phase. The industry
is gearing up for WTO requirements and changes in the patent regimes. It
will be easier for well-organized players to take a share of the market.
The unorganized players are likely to face difficult times ahead.
Those who are committed to stringent quality norms, adapting changes within
the industry including technological advancement, changing regulatory
environment, etc. stand better chances to grow.
Risks & Concerns
Supriya has identified those threats that face the industry, and has
already initiated step face for delisting its business. Developing new
production processes & designs, strengthening existing infrastructure to
increase productivity and reduce operational costs are part of this
endeavor to overcome risks, gain advantage in the changing market place.
Fresh investments in upgrading facilities have been considered.
Quality And Cost Management
Supriya is a cost effective quality producer. The company has aims to
achieve further cost reduction with improvement in its existing
Quality control and quality assurance systems are being further
strengthened. The company has a wealth of trained team to enforce the
systems. The awareness levels in quality control and production departments
are high and are regularly upgraded through suitable methods of personnel
Financial Management & Internal Controls
The company has a disciplined approach to cost and follows prudential norms
in every sphere of its activities The profit making is put at the center of
decision making. The costs are budgeted, reviewed and and monitored at
A knowledge company is built on the strength of its people. The management
of the company has been continuously adding skilled and experiences
professionals from time to time.
Your company recognises the need for formal human resource planning and
strategy, and has initiated stops to create systems mid procedures the will
further enhance the work environment. The company values the resources and
will endeavor to make them better.
Supriya will face challenges both anticipated and unanticipated. We are
poised to meet the challenges. The employees and customers remain happy,
the balance sheet has improved. The company has proved its ability to
deliver the best quality products constantly and regularly and has
resources including technologies to excel.
The company has a strong foundation for growth. The set of changes being
carried out will transform the future of the company into a better and
larger player in the pharma industry, and create wealth of its
shareholders. The shareholders can look forward to a better future.