MEDI CAPS LIMITED
ANNUAL REPORT 2007-2008
I take immense pleasure in welcoming you all to our 25th Annual General
Meeting of Medi-Caps Limited.
At the outset I appreciate your abiding interest and faith in the Company
and am very pleased to have here you amongst us.
I take pleasure in informing you that the Company has generated a quantum
profit of Rs.1405.28 lacs as compared to last year Rs.821.80 lacs, despite
of facing tough market scenario of price reduction and machine shutdown,
only due to sound fundamental and well planning of management from
investment generating a profit of Rs.1290.22 lacs in comparison of last
year Rs.582.23 lacs.
The Company had to face a steep price reduction due to which turnover
declined from Rs.2076.27 lacs to Rs.2030.41 lacs.
The Company has taken substantial measures for up-gradation of machine due
to which machine was shut down for up-gradation resulting a loss of
production from 35354.00 lacs to 35099.00 lacs.
Despite of above Company has achieved a substantial profit and in order to
reward the Share holders , Board of Directors has recommended a dividend of
15% for the year 2007-08 (Previous year 15%) and proposed to utilize
remaining surplus for future business activities.
Your company is making a tremendous effort to overcome last year's
deficiency and resulting to which Company has already achieved a turnover
of Rs.997.05 lacs in the initial 5 months operation up to August 2008, thus
showing an upward trend.
EQUITY CAPITAL REVIEW:
Looking into the earning per share i.e. Rs.45.08( previous year Rs.26.36)
during the year under review, the book value of the equity shares of
Rs.10/- has been Rs.164.49 per share (previous year Rs.121.33) as at 31'
March 2008, therefore presently the equity shares of the Company are still
under valued as per norms and it has good potential future for investments
in the Company on long term basis. The Company's equity shares are
regularly traded at the Bombay Stock Exchange.
FINANCE AND CAPITAL:
I am pleased to inform that your Company is not having any loan liabilities
and is having adequate resources to meet out its working capital and long
term financial requirements. Moreover, surplus funds being invested in the
mutual funds and capital market to maximize the net worth of the Company.
We have also made a joint venture agreement with Mission Viva Care Ltd for
setting up a softgel encapsulation facility at Special Economic Zone,
Pharma Zone, Pithampur. The total estimated project cost is 25.00 crores.
The facility is already under construction and is estimated to be completed
by Feb. 2009.
Due to stiff international competition and government policies for patent,
the export is slightly lower than previous year. Further that due to strong
position of rupees as compared to US $, the realization on export as well
as profitability on export turnover was also affected.
The Company is continuously making efforts to tap another fresh market in
the export front.
As reported in the 25th Directors Report, your Company has complied with
the requirements of Clause 49 of the Listing Agreements, relating to the
Corporate Governance. The Company is having independent professional agency
for the share transfer for the Electronic as well in physical mode. As at
31st March, 2008, 1643945 shares were in D -Mat form which is 52.73% of the
total paid up share capital of the Company.
I would also like to express my deepest sense of gratitude to all the
shareholders, Govt. Agencies and the employees of the Company for their
cooperation and support extended to the management of the Company.
The audited Balance Sheet as at 31st March, 2008 along with Director's
Report and Auditors Report thereon, are with you for quite time now, and
with your permission, I take them as read.
Now with your kind permission, I proceed to the agenda items of the notice
for seeking your necessary approvals.
For MEDI CAPS LIMITED
CHAIRMAN CUM MANAGING DIRECTOR