HARSHITA ORGANICS LIMITED
Your Directors have pleasure in presenting their Report on the Audited
Accounts of your Company for the financial year ended on March 31, 1996.
Apart from manufacturing Ampicillin Trihydrate and Cloxacillin Sodium, for
which the commercial production in Phase I of the Project had commenced on
October 6, 1994, the Company also started commercial production of 6-APA,
Chloramphenicol and Amoxycilin Trihydrate during the year 1995-96. Phase -
ll of the Project was also launched on December 20, 1995 for increasing the
capacity of the plant manifold for the manufacture of antibiotics. During
the year 1995-96 your Company manufactured the following bulk drugs and
drug intermediates, out of which major production was achieved during the
last quarter of the year.
Ampicillin Trihydrate : 6.775
Cloxacillin Sodium : 2.340
Chloramphenicol : 7.000
Amoxycillin Trihydrate : 15.585
Drugs & drug intermediates : 33.872
Your Company is fully equipped with ultra-modern bulk drug manufacturing
plant, machinery and equipment with highly qualified and competent
technical staff for the manufacture of antibiotics which have a great
demand world over. The Company has also planned to manufacture Cephalexin
Monohydrate and Betaionone one along with other bulk drugs and their
intermediates for which Research and Development is in progress and
commercial production is likely to commence by December, 1996.
During the year 1995-96, your Company achieved over 1600% increase in
turnover over the last year, i.e. to the tune of Rs.18.56 crore which has
been achieved mainly through direct and indirect exports. Your Directors
are confident that during the current year the rising tempo of exports and
sales will be kept up and the Company will achieve a handsome turnover
yielding substantial profit during the year 1996-97.
Your Directors are happy to inform that your Company has been recognised as
an Export House. The Certificate of Recognition has been granted by the
Export Commissioner, Directorate General of Foreign Trade, Ministry of
Commerce, Government of India, New Delhi in accordance with the provisions
of Export - Import Policy and is valid for a period of three years, from
01-04-96 to 31-03-1999.
During the year, following changes occurred in the Board of Directors of
16.08.1995 Dr. Primal Gupta resigned as Director.
16.08.1995 Dr. Santosh Kumar Kar resigned as Director.
22.08.1995 Shri Harish Chandra Varma resigned as Whole-time Director and
On July 12, 1996, the Board of Directors of your Company appointed Shri
Mukesh Chand Sharma a Director as Whole-time Director designated as
Executive Director, for a period of five years commencing from July, 12,
1996 and ending on July 11, 2001. In accordance with the provisions of
Section 269 read with Schedule XIII to the Companies Act, 1956, his
appointment and his remuneration have to be approved by a resolution of the
shareholders in a general meeting to be held after the appointment.
Therefore, a resolution has been proposed for consideration and approval of
the shareholders at the 6th Annual General Meeting.
In accordance with Article 89 of the Articles of Association of the
Company, Shri J.P. Yadav retires as Director by rotation at the 6th AGM,
but being eligible, he has offered himself for re-appointment.
The Auditors of the Company, M/s. D. R. Mohnot & Co., Chartered
Accountants, Jaipur, retire at the 6th AGM. However, being eligible for
appointment, they have furnished to the Company a certificate under Proviso
to Sub-section (1) of Section 224 of the Companies Act, 1956, to the effect
that their appointment, if made, will be within the limit prescribed in
Sub-section (1 B) of the said Section.
6.Conservation of energy:
During the year the Company made every effort to use energy most
efficiently (Please See Annexure to this Report, Form "A" as prescribed
under Rule 2 of the Companies (Disclosure of Particulars in the Report of
Board of Directors Rules, 1988)
7. Technology absorption :
The technology used by your Company has been developed within the Company's
plant by its own technical personnel with the assistance of scientists and
technicians of international fame.
Your Directors are happy to report that relations between the Management
and the employees during the year were most cordial. Your Company has been
providing most congenial working environment and all other necessary
amenities to the employees both at Works and in offices.
Your Directors place on record their appreciation of the efficient and
dedicated services rendered by the employees at all levels.
ANNEXURE TO THE REPORT OF THE BOARD OF DIRECTORS OF THE COMPANY DATED JULY
Form for disclosure of particulars with respect to conservation of energy :
Previous Year Current Year
1. Power and fuel consumption. (1994-95) (1995-96)
Units 67755 2,77,728
Total Amount Rs. 1.66 lakhs 7.62 lakhs
Rate/Unit Rs. 2.45 2.74
b) Own generation
i) Through diesel generator Units 41687 88572
Units per Ltr. of diesel oil 3.63 3.63
Cost/Unit Rs. 1.95 1.98
ii) Through steam turbine/generator Not applicable
Units per Itr. of
2. Coal (specify quality and where used) Not applicable
3. Furnace oil
Quantity (K. Ltrs.)
4. Others/internal generation None
(Please give details)
B. Consumption per unit of production
Standards Previous Year Current Year.
(if any) (1994-95) (1995-96)
Products (with details)
unit bulk drug
(Ampicillin Trihydrate None 3,535 Kgs. 65572 Kgs.
Chloramphenicol, 6APA, PAA)
Electricity / Per.Kg. Rs. 46.96 Rs. 11.62
Furnace oil N/A N/A
Coal (specify quality) N/A N/A
Others (specify) Diesel/Per Kg. Rs. 22.97 Rs. 2.67
On behalf of the Board of Directors,
Harshita Organics Ltd.
Satish Chander Sharma
Chairman and Managing Director
Place : Rajasthan,
Dated : July 12th 1996.