EVEREST ORGANICS LIMITED
Your Directors have pleasure in presenting the Sixth Annual Report and the
audited statements of accounts for the year ended 31st March, 1999.
REVIEW OF OPERATlONS
The Company has achieved a turnover of Rs.2843.39 lacs during the year
under review and Exports stood at Rs. 1711. 11 lacs which constitutes 60%
of the total turnover. The prices of the Bulk Drugs and Intermediates are
encouraging. The Company's Exports are increasing progressively. Your
company is planning to get approval from United States Food & Drug
Administration (USFDA). To meet the capital investment for lSFDA approval
and environmental protection, your company would like to issue Preferential
Capital to the extent of Rs.3,50.00,000/- on private placement basis to
NRl/ and Promoter On getting the USFDA approval the market growth of your
company's product to U..A. would be remarkable.
During the year under review. the Company has not invited and received any
deposits from the Public for Which the provisions of Section 58A of the
Companies Act. 1956 apply.
Sri C. Prasanna and Sri Krishna R. Kakarlapudi retire by rotation at this
Annual General Meeting . The Directors being eligible, offer themselves
M/s. P.S.N .Ravi Shanker & Associates, Chartered Accountants, Auditors of
the Company, will retire at the Annual General Meeting and are eligible for
The Company is taking effective steps to be Y2K complaint by the end of
October. 1999. The estimated cost would be about Rs.5 lacs.
TECHNOLOGY ABSORPTION & ENERGY CONSERVATION
Information on conservation of energy, technology absorption foreign
exchange earnings and outgo required to be disclosed under section
217(I)(e) of the Companies Act, 1956 is given in the Annexure
FORElGN EXCHANGE EARNINGS AND OUTGO
Foreign Exchange Earned 1555.00
Foreign Exchange Outgo 718.47
The company do not have any employees coming under the provision of Section
21 7(2A) of the Companies Act. 1956.
Your Directors take this opportunity to express their sincere thanks to the
ICICI Ltd., State Bank of India and State Bank of Travancore and various
departments of the Central and State Governments for their continued
support and co-operation. Your Directors place on record their-
appreciation of the services of all the employees for their sincere efforts
put in by them for the smooth functioning of the affairs of the company.
(Dr. S.K.SRIHARI RAJU)
Chairman & Managing Director
DIRECTOR'S REPORT - ANNEXURE
FORM FOR DISCLOSURE OF PARTlCULARS WITH RESPECT OF ABSORPTION
Research and Development (R&D)
1. Specific areas in which R&D carried out by the Company :-
Process validation and improvement and simplification and practicability.
2. Benefits derived as a result of the above R&D :-
Cost of Production has been reduced to certain extent. Ease of operation of
the new molecules.
3. Expenditure on R&D
(a) Capital : Rs. 7,07,999/-
(b) Recurring : Rs. 5,45,473/-
(c) Total : Rs. 12,53,472
(d) Total R&D expenditure as a : 0.44%
percentage of total turnover.
TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION
1 . Efforts, in brief, made towards technology absorption. adaptation and
Efforts are made to absorb the technology from the Consultants. The company
could adopt the new technology. Innovation in the process is an on going
2. Benefits derived as a result of the above efforts., e.g. product
improvement, cost reduction product development, import substitution. etc.,
a) Cost reduction and development of Enrofloxacin process in-house.
b) In House technology in Manufacturing of intermediates is completed and
commercialised. Established the process to recycle and refuse piperzine
from the effluent.
3.In case of Imported technology (imported during the last 5 years reckoned
from the beginning of the financial year) following information may be
(a) Technology imported
(b) Year of Import
(c) Has technology been fully : N.A.
(d) If not fully absorbed, areas
where this has not taken place,
reasons therefore and future
plans of action.