On behalf of the Board of Directors I hereby present the 29th Annual Reporttogether with Audited Statements of Accountants of the Company for the year ended March312018.
During the year 2017-18 BIBCOL has turnover of ?3479.88 lakhs as against the previousyear turnover of ?12418.51 lakhs. The (Loss)/Profit before tax is ? -795.89 lakhs for theyear as compared to the previous year profit of ? 922.28 lakhs. The accumulated losses hasbeen increased to ? 568.51 lakhs as compared of previous year figure of ? 142.83 lakhs.
In view of the accumulated losses company has not been recommending any dividend forthe year.
Company has obtained license for Ready to use Therpheutic Food (RUTF) and low caloriesweetener and hoping for commercial sales in the current year. Additionally company isworking on diversification into Plasma Derived Medicines (PDMs) and Oral Cholera Vaccinefor long term sustainability and growth.
The company has not accepted/ invited any Deposits from public pursuant to Section 73of the Companies Act 2013 till the end of the year under review.
There is a change in Board as Dr. Kanury Rao has vacated his office pursuant to theprovisions of section 167(1 )(b) of the Companies Act 2013.
LISTING OF SECURITIES
The shares of the company are listed with Bombay Delhi and U.P. Stock Exchanges.However the Delhi and U.P. Stock Exchanges are not functional. The company has paid annuallisting fee to Bombay Stock Exchange for the year 2017-2018.
M/s. B. K. Kapur & Co. Chartered Accountants has been appointed as StatutoryAuditors of the Company by Comptroller and Auditor General of India for the period underreview.
Comments on the observation of the Auditors / CAG are given as addendum toDirectors Report and are self-explanatory and/or suitably explained in various Noteson the Accounts.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
In accordance with the provisions of Sec.134 (3)(m) of the Companies Act2013 and theCompanies (Accounts) Rule 2014 the required information relating to conservation ofenergy technology absorption and foreign exchange outgo is available at Annexure andforms an integral part of this report.
DIRECTORS RESPONSIBILITY STATEMENT:
Based on the work performed by the Internal Statutory and Secretarial Auditorsincluding audit of internal financial controls over financial reporting by the StatutoryAuditors and reviews performed by the Management and the Audit Committee and subject tothe disclosures in the Annual Accounts and also on the basis of the discussion with theStatutory Auditors of the Company from time to time we state as under:
(a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;
(b) the directors had 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 at the end of the financial year and ofthe profit and loss of the company for that period;
(c) the directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis; and
(e) the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.
Since the Company is Government company and it is following the General Financial Rulesof Ministry of Finance Government of India. Further the Company has some Rules of its ownand in absence of any particular clarity; the Government of India prescribed Rules arebeing followed.
(f) the directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
CORPORATE SOCIAL RESPONSIBILITY
The provision of section 135 of the Companies Act 2013 for Corporate SocialResponsibility was not applicable on the company for the Financial Year 2017-18.
The company has constituted a CSR Committee of its Directors comprising of Dr.Sudhanshu Vrati Dr. Mohd. Aslam and Sh. Roshan Lal.
Relations with the Employees remained cordial and harmonious throughout the yearthereby strengthening the commitment of the Employees at all level to the growth of theCompany.
In terms of SEBIs (Listing Obligation and Disclosure Requirements) Regulations2015 a report on Corporate Governance for the year ended 31st March 2017supported by a certificate from the Practicing Company Secretary confirming compliance ofconditions forms part of this report.
In terms of Section 204(1) of the Companies Act 2013 the Board has appointed M/sAgrawal Manish Kumar & Co. Practicing Company Secretary as Secretarial Auditor forthe conducting secretarial compliance audit for the financial year ended 31stMarch 2017. Their Report has been annexed with this report and forms part of this Report.
Maintenance of cost records as specified by the Central Government under subsection (1)of section 148 of the Companies Act 2013 is required by the Company and accordingly suchaccounts and records are made and maintained and the Audit Report has been filed at MCAfor the year 2017-18.
EXTRACT OF ANNUAL RETURN
Pursuant to section 92(3) of the Companies Act 2013 and rule 12(1) of the Companies(Management and Administration) Rules 2014 an extract of the Annual Report are given inthe annexure to this report.
DISCLOSURES AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION. PROHIBITIONAND REDRESSAL) ACT 2013
The company has complied with provisions relating to the constitution of InternalComplaints Committee under the Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013. During the year under review no complaints receivedon sexual harassment.
The Directors acknowledge with gratitude the co-operation extended by Department ofBiotechnology the administrative department various agencies of the Central Government
Banks and all Business Associates during the year under review. The Board also takesthis opportunity to express its deep gratitude for the continuous support received fromthe Shareholders and Whole hearted cooperation given by the employees of the Companyworking at various levels.
|Place: Bulandshahr ||For and on behalf of Board of Director |
|Date: ||Managing Director |
ANNEXURE TO DIRECTORS REPORT
Information as required under section 134 (3) (m) read with the Companies (Disclosureof Particulars in respect of Board of Directors ) Rules 1988.
(A) CONSERVATION OF ENERGY:
Form of Disclosure Power and Fuel Consumption
1. Electricity Particulars:
|Particulars ||2017-18 ||2016-17 |
|(a) Units Purchased ||1355880 ||1954990 |
|Total Amount (f In Lacs) ||123.87 ||165.84 |
|Avg. Rate/Unit (in f) ||9.14 ||8.48 |
|(b) Unit Generation-Own diesel generator ||26742 ||31788 |
|HSD Used (Unit & f In lacs) 12709 Ltr.2017-18 13785 Ltr. 2016-17. ||7.43 ||8.29 |
|Unit per liter of diesel ||58.47 ||60.15 |
|Oil/Cost/Unit (in f) ||27.79 ||26.08 |
|2. Light Diesel Oil (Used for stream Production) : || || |
|Particulars ||2017-18 ||2016-17 |
|Quantity (Ltrs.) (Used in Boilers) ||43075 ||72520 |
|Total Amount (f In Lacs) ||18.36 ||27.20 |
|Average Rate (Rs./Ltr.) ||42.63 ||37.50 |
3. Consumption (Per one Lac Doses of Oral Polio Vaccine)
|Source of Energy ||Standard(If any) Indigenous Production || |
Current Year 2017-18
Previous Year 2016-17
| || ||OPV ||ZINC ||OPV ||ZINC |
|Electricity ||4655 Units ||1347495 ||8385 ||1940715 ||14275 |
|Light Diesel Oil ||520 Lt. ||43075 ||0 ||72520 ||0 |
|Others ||None ||0 ||0 ||0 ||0 |
|PARTICULARS ||CURRENT YEAR ||PREVIOUS YEAR |
|(A) Technology Absorption ||NIL ||NIL |
|(B) Foreign Exchange Loss (f in lacs) ||(0.73) ||(74.35) |
|(C) Foreign Exchange Outgo (Rs. in lakhs) ||2933.11 ||7941.23 |
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Industrial Structure and Development
BIBCOL was established for supply of Oral Polio Vaccine for meeting nationalImmunization Programme of Government of India. Commercial production was started in theyear 1996 and since then has contributed significantly to the National ImmunizationsProgramme by supplying billions of doses of OPV. In the year 2006 the facility was upgraded to meet the WHO cGMP & revised schedule M of Drugs & Cosmetics Act. In theyear 2016 BIBCOL switched over to bOPV from tOPV and secured WHO GMP certification forbOPV.
In addition to bOPV in vaccine segment BIBCOL has been manufacturing & marketingdispersible Zinc Tablet and Diarrhea Treatment Kit in Pharmaceutical segment and now hasentered into RUTF and low calorie sweetner tablets in food segment.
To add in product line company has plans to diversifying into Plasma derivedmedicines and Oral Cholera Vaccine.
Segment-wise or product-wise performance
Company has main revenue generation in vaccine (OPV) segment and it has achieved netsale of ? 3479.88 lakhs during the year.
Outlook-opportunities threats risk and concerns
|Opportunities ||: Awareness & concern of health of young children among public provide an opportunity for development of new products. BIBCOL is gearing up for the same & has tied up with reputed institutions for development various products. |
|Threats: ||Growth of private manufacturers non availability of bulk in India frequent change in foreign exchange rates reluctance of the Ministry of Health & Family Welfare to award supply order to a PSU on nomination that was established to support government polio eradication programme abolishment of price preference to PSUs are perceived to be threats. |
|Risks: ||Product development long period reduced product price due to competition continuous upgradation of regulatory requirements are perceived to be risk factors. |
|Concerns: ||Perpetual import of bulk vaccine of OPV & dependence on single product. |
I nternal control systems and their adequacy
The Company has established systems providing adequate internal controls commensuratewith its size and nature of the business. Such systems have been appropriately documented.
Financial performance with respect to operation performance
Effective cost controlling process had been adopted to reduce Sundry Expenses as couldbe appreciated from the Statement of Profit and Loss Account.
The Company regards its human resources amongst its most valuable assets. Company hasestablished a Training Division for continuous upgradation of knowledge & skills ofits employees by conducting workshops seminars etc on regular basis. It proactivelyreviews and evolves policies and process to attract and retain its substantial pool ofScientific technical and managerial resources and work force through a work environmentthat encourages initiative provides challenges and opportunities.