To the members of Jagsonpal Pharmaceuticals Limited
Your Directors have the pleasure in presenting their 40th Annual Report ofthe Company along with the Financial Statements for the period ended 31stMarch 2019.
The financial performance of the Company is as under:
| || |
(Rs. in Lacs)
|Particulars ||Current Year ||Previous Year |
|Sales ||16682.00 ||12660.42 |
|Operating Expenditure ||15605.59 ||13725.39 |
|Profit before interest ||1076.41 ||-1064.97 |
|depreciation and tax || || |
|Financial Expenses ||74.55 ||65.72 |
|Depreciation ||101.58 ||31.98 |
|Profit before tax ||900.28 ||-1162.67 |
|Exceptional Items ||- ||- |
|Provision for taxation ||185.28 ||- |
|Profit after Tax ||715.00 ||-1155.06 |
|Deferred Tax ||-6.61 ||-7.61 |
|Balance brought forward ||3470.62 ||4657.21 |
|Profit available for appropriation ||4192.23 ||3546.07 |
|Appropriations: || || |
|Proposed Dividend ||65.50 ||26.20 |
|Additional Income Tax ||13.46 ||5.34 |
|Transfer to General Reserve ||0.00 ||0.00 |
|Balance carried forward ||4113.27 ||3514.53 |
During the period ended 31st March 2019 the sales of the Company increased to Rs.16682 lakhs from Rs. 12660 lakhs as compared to period ended 31.3.2018. The profit beforetax barring exceptional items increased from (-) 1162.67 Lakhs to Rs. 900.28 Lakhs duringthe year.
Management Discussions & Analysis Report
Indian Pharma Industry Scenario
Global pharmaceuticals markets are in the midst of major discontinuities. While growthin the developed markets will slow down emerging markets will become increasinglyimportant in the coming decade. The Indian pharmaceuticals market along with the marketof China Brazil & Russia spearhead growth within these markets.
Indian pharmaceutical sector industry supplies over 50 % of global demand for variousvaccines 40 % of generic demand in the US and 25 % of all medicine in UK. Indiacontributes the second largest share of pharmaceutical and biotech workforce in the world.The pharmaceutical sector in India was valued at US$ 33 billion in 2017. India's domesticpharmaceutical market turnover reached Rs 129015 Crore (US$ 18.12 billion) in 2018growing 9.4 % year-on-year (in Rs) from Rs 116389 crore (US$ 17.87 billion) in 2017. InFebruary 2019 the Indian pharmaceutical market grew by 10 % year-on-year.
With 71 % market share generic drugs form the largest segment of the Indianpharmaceutical sector. Based on moving annual turnover Anti-Infectives (13.6%) Cardiac(12.4%) Gastro Intestinals (11.5%) had the biggest market share in the Indian pharmamarket in 2018.
Indian drugs are exported to more than 195 countries in the world with the US as thekey market. Generic drugs account for 20 % of global exports in terms of volume makingthe country the largest provider of generic medicines globally and expected to expand evenfurther in coming years. India's pharmaceutical exports stood at US$ 19.14 billion in FY19and US$ 3.1 billion in FY20 (up to June 2019). In FY18 31 % of these exports from Indiawent to the US.
The Pharma Vision 2020' by the government's Department of Pharmaceuticals aims tomake India a major hub for end-to-end drug discovery. The sector has received cumulativeFDI worth US$ 15.98 billion between April 2000 and March 2019. Under Budget 2019-20allocation to the Ministry of Health and Family Welfare increased by 3.1 % to Rs 63298crore (US$ 9.06 billion). Indian pharmaceutical sector is expected to grow at a CAGR of
15 % in the near future and medical device market expected to grow $50 billion by 2025.
Your Company welcomes these measures & opportunities to serve more patients of ourCountry.
The Company is taking elaborate steps to increase its geographical presence andvisibilities within the medical fraternity for greater repeat recall of products of theCompany.
Certain statement with respect to Management Discussion and Analysis and may beforwarded looking and are stated as required by the applicable laws and regulations.
The future results of the Company may be affected by many factors which could bedifferent from what the Directors envisage in terms of future performance and outlook.
Your Directors are pleased to recommend for consideration a dividend of 5%. This willabsorb a sum of Rs. 654900.00 (Sum for previous period Rs. 2619800.00 exclusive ofCorporate tax thereon).
Particulars of Loan Guarantees or Investments
The Company has neither given any loan nor provided any guarantee to entities as perthe provisions of Section 186 of the Act.
Transfer to Reserve
Directors did not propose to transfer any amount to the General Reserve.
The company has not accepted any fixed deposits and has no amount of principal orinterest which was outstanding as of the balance sheet date.
Internal Financial control and its adequacy
The Board has adopted policies and procedures for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies safeguarding ofits assets the prevention and detection of fraud error reporting mechanisms theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial disclosures.
Significant and Material Orders
There are no significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and Company's operations in future.
Extract of Annual Return
In accordance with Section 134 (3) (a) of the Companies Act 2013 an extract of theannual return in the prescribed is appended as Annexure D to the Board Report.
Investor Education and Protection Fund
Pursuant to the applicable provisions of the Companies Act 2013 read with the IEPFAuthority (Accounting Audit Transfer and Refund) Rules 2016 (the Rules') all unpaidor unclaimed dividends are required to be transferred by the Company to the IEPFestablished by the Central Government after completion of seven years. Further accordingto the rules the shares in respect of which dividend has not been paid or claimed by theshareholders for seven consecutive years or more shall also be transferred to the demataccount created by the IEPF Authority. Accordingly the Company has transferred theunclaimed and unpaid dividends. Further the corresponding shares will be transferred asper the requirement of the IEPF rules details of which are provided on our website.
Audit & Auditors Reports
As per the provisions of Section 139 of the Companies Act 2013 M/s H.L. Bansal &Co. Chartered Accountants were appointed as the Statutory Auditors of the Company for theperiod of five years.
The Auditors Report for fiscal 2019 does not contain any qualification reservation oradverse remarks. Auditors' Report is enclosed with the financial Statements in this AnnualReport.
The Board has appointed M/s. Subhashis Patri as Cost Auditor for the year 2019-20. Theremuneration of the cost auditor is subject to the approval by the members.
Pursuant to provisions of Section 204 the Companies Act 2013 and rules there underthe Board has appointed. Mr. Mukesh Arora Practicing Company Secretary as SecretarialAuditors of the company for fiscal 2019.
The Secretarial Auditors' Report for the year 2018-19 has been received from theSecretarial Auditors'. The report does not contain any qualification reservation oradverse remark. The report is annexed herewith as Annexure C.
Energy Technology & Foreign Exchange
As stipulated under the provisions of Section 134(3) the Companies Act 2013 read withthe (disclosure of particulars in the report of Board of Directors) rules Annexure 'A'contains the particulars pertaining to Conservation of Energy Technology absorption andForeign Exchange earning and outgo.
The Company continued to maintain cordial relations with its employees at all levels.No man-days were lost during the period due to industrial strike. The information asrequired under the Companies Act 2013 read with the Companies (Particulars of Employees)Rules is enclosed in Annexure B' and forms part of this Report.
The Company is committed to good corporate governance in line with the SEBI (ListingObligations & Disclosure Requirements) Regulations 2015. The Company is in compliancewith the provisions of corporate governance with NSE & BSE.
A certificate of compliance from M/s Mukesh Arora & Co. Practicing CompanySecretary and the report on Corporate Governance forms part of this Director Report.
Internal Control Systems and Risk Management :
The Company has devised and implemented a mechanism for risk management and hasdeveloped a Risk Management voluntarily. The committee will on quarterly basis providestatus updates to the Board of Directors of the Company.
Directors Responsibility Statement
Pursuant to Section 133 of the Companies Act 2013 your Directors state that:
a In the preparation of the Annual Accounts for the year ended March 31 2019 theapplicable accounting standards read with requirements set out under Schedule III to theAct have been followed and there are no material departures from the same;
b the Directors have selected such accounting policies and applied them consistentlyand have made judgements and estimates that are reasonable and prudent so as to give atrue and fair view of the state of affairs of the Company as at March 31 2019 and of theprofit and loss of the Company for the year ended on that date;
c the Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;
d the Directors have prepared the annual accounts on a going concern basis;
e the Directors have laid down internal financial controls to be followed by theCompany and that such systems are adequate and are operating effectively; and
f the Directors have devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems are adequate and operating effectively.
Corporate Social Responsibility
The provision of the Companies Act 2013 with respect to the Corporate SocialResponsibility are applicable now and in this respect the company has framed the CSRPolicy.
Contracts And Arrangements With Related Parties
In line with the requirements of the Companies Act 2013 and SEBI (Listing Obligations& Disclosure Requirements) Regulations 2015 your Company has formulated a policy onRelated Party Transactions. All related party transactions that are entered into duringthe year were on arm's length basis and were in the ordinary course of business. AllRelated Party Transactions are placed before the Audit Committee for review and approval.Prior omnibus approval is obtained for Related Party Transactions on a quarterly basis fortransactions which are of repetitive nature and/or entered in the ordinary course ofbusiness and are at arm's length. Adequate disclosures have been made in Sch.-23.
The Board of Directors would like to record their appreciation and gratitude to allemployees of the organisation for their active co-operation and involvement. Thanks arealso due to Jagsonpal customers dealers suppliers and bankers. The Directors alsoacknowledge with gratitude the valuable and timely advice guidance and support receivedfrom Government authorities Securities and Exchange Board of India and Stock Exchanges in-functioning Company.
|For and on behalf of the ||Board of Directors |
| ||RAJPAL SINGH KOCHHAR |
|Place : New Delhi ||Chairman & Mg. Director |
|Dated : 28/05/2019 ||(DIN 00059492) |