ORIENT ORGANICS LIMITED
Your Directors have pleasure in presenting the FOURTH Annual Report and
Audited Accounts for the period ended 31st March 1995.
1. FINANCIAL RESULTS: Commencement of commercial Production is expected in
October 1995. Though the Company has drawn Rs. 16.16 lakhs only out of the
Total Term Loan of Rs. 52 lakhs from SIPCOT, the remaining amount of Rs.
35.84 lakhs is to be drawn in the first week of September'95. There has
been cost overrun in the project, due to changes in the building plan to
accommodate more and similar products having the same extraction
Your Directors do not propose any dividend as the Commercial Production is
yet to commence.
3. STATUS OF THE PROJECT:
The Project implementation work for manufacturing Vincristine Sulphate and
Vinblastine Sulphate is in full swing. The project is expected to go on
stream in October 1995. We are aware that there has been some delay in the
commencement of commercial production. Your Directors would like to inform
you that the plant layout at Maraimalainagar had to undergo some basic
changes than the one planned earlier, as enquiries for additional
pharmaceutical products were received from buyers. Your Directors felt that
with some changes in the infrastructure and plant layout, your company can
manufacture additional products and also function efficiently. Your
Directors are sure that you will understand the delay in the light of the
above circumstances and with the need for the growth and prosperity of your
company. Your Directors are sure that with your continuous patronage and
support your Company will attain a formidable stature in the pharmaceutical
4. PARTICULARS OF EMPLOYEES UNDER SECTION 217 (2A) OF THE COMPANIES ACT,
During the year under review, no employee of the Company was in receipt of
remuneration which in the aggregate was Rs. 3,00,000/- or more nor was any
employee in receipt of remuneration for any part of the year at the rate of
Rs. 25,000/- per month.
The personnel for the project at Maraimalainagar have been selected, and
are presently undergoing training to commence the commercial production in
The term of office of the Company's Auditors M/s Karthikeyan and Prakash,
Chartered Accountants, 29/2-A, Musiri Subramania Salai (Oliver Road),
Madras 600 004. will expire at the conclusion of the ensuing Annual General
Meeting and being eligible, they offer themselves for re-appointment.
In accordance with the provisions of the Companies Act,1956 and Article 80
of the Articles of Association of the Company the following Directors,
1. Shri. R.J.Rathnakar
2. Shri. T.A.S. Rathnakumar
retire by rotation at the ensuing Annual General Meeting and being eligible
offer themselves for re-appointment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
The information required under Section 217 (1) (e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the Report of
the Board of Directors) Rules, 1988 is not required to be given as
Commercial Production is yet to commence.
Your Directors would like to thank all the investors and particularly the
shareholders for showing their confidence by investing in the Company, and
pledge that the Directors will strive to make this Company a successful
venture with the continued support from You.
Your Directors would like to thank National Chemcial Laboratories, Pune for
imparting the Technical Knowhow of the Project, and all its officials for
the excellent support and co-operation they had extended .
Your Directors would like to thank Dr P.K. Ramanathan, the Technical
Consultant of the Company for imparting his knowledge.
Your Directors would like to place on record their deep sense of gratitude
to the Government of India, the State Government, SIPCOT, and Canara Bank
(Overseas Branch), and all the other banks which participated in the
public issue for their continuing support and co-operation . Our thanks are
also due to all the suppliers, customers and finally to all the employees
of the Company for their untiring efforts and commitment to their duties.
For and on behalf of the Board
Chairman & Managing Director
Place : Madras
Dated : 1st September 1995.