EPIC Enzymes Pharma & Industrial Chemicals Ltd Share Price directors Report
EPIC ENZYMES PHARMACEUTICALS AND INDUSTRIAL CHEMICALS LIMITED
ANNUAL REPORT 2011-2012
DIRECTORS REPORT
To the Members:
Your Directors have pleasure in presenting 28th Annual Report of your
company together with the Audited Accounts for the year ended 31st March,
2012.
FINANCIAL RESULTS:
The financial results of the company for the year under review are
summarized below:
(Rs. in Lacs)
Year Ended Year Ended
31st March, 2012 31st March, 2011
Sales and Other Income 0.94 224.33
Gross Profit/(Loss) before
Depreciation and Interest (16.80) (941.43)
Less: Depreciation 5.99 5.99
Interest 0.05 455.41
Net Profit before Tax and
Extra Ordinary Items (22.8460) (1,402.83)
Prior period Adjustment - -
Provision for Tax
Add/(Less): Deferred Tax - -
Current Tax - -
Fringe Benefit Tax - -
Net Profit/(Loss) after Tax (22.8460) (1,402.83)
Net Profit and Loss A/c b/f (3,438.48) (2,035.65)
Balance carried forward to Balance Sheet (3,461.32) (3,438.48)
OPERATIONS
Performance under review was poor as plants at factory at Plot No. 32,
VRDIC, Vithoba Industrial Complex, Village Lohop, Post Mazgaon was not
operational.
Because of defaults in payments to State Bank of India, Overseas Branch
against working capital loan accounts were NPA and are in negotiation for
OTS.
FINANCE
During the year 2011-2012 the account with State Bank of India are
considered as NPA because of default in making the payment.
PERSONNEL & INDUSTRIAL RELATIONS
Relations with employees were in general cordial and congenial atmosphere
prevailed.
DIRECTORS
In accordance with the Articles of Association of the Company and
provisions of the Companies Act, 1956 Mrs. Indresh Bala is liable to retire
by rotation and being eligible, offer herself for re-appointment. Your
Directors recommend her re-appointment.
DIRECTORS RESPONSIBILITY STATEMENT AS REQUIRED UNDER SECTION 217(2AA) OF
THE COMPANIES ACT, 1956
The Directors state that:-
(i) in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
material departures;
(ii) the directors had selected such accounting policies and applied them
consistently and made judgment and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year covered under this Report and of
the loss of the Company for the year;
(iii) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
(iv) the directors had prepared the annual accounts on a going concern
basis.
CORPORATE GOVERNANCE
Your company and its Board of Directors have complied with Corporate
Governance to the extent set out inthe enclosed report pursuance to Clause
49 of the Listing Agreement. Management Discussion and Analysis forms pat
of this report. Auditors Certificate for compliance of the conditions of
Corporate Governance is also attached to the report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND
OUTGO:
a. CONSERVATION OF ENERGY
The Companys operations do not involve substantial consumption of power in
comparison to cost of production. However, regulatory measures are there to
ensure that the consumption of power within the norms.
b. TECHNOLOGY ABSORPTION
The company has fully absorbed the technical know-how received form
Germany.
c. FOREIGN EXCHANGE EARNING AND OUTGO.
Foreign exchange earnings of the company during the year 2011-12 were
Rs.NIL (Previous Year Rs. Nil) while outgoings were Rs. NIL (previous Year
Rs.NIL).
AUDITORS
M/s. Aniket Kulkarni & Associates, Chartered Accountants, Mumbai hold their
office until the conclusion of the ensuring Annual General Meeting and are
eligible for reappointment. The members are requested to re-appoint them as
Auditors of the Company till the conclusion of the next Annual General
Meeting.
FIXED DEPOSIT
During the financial year under consideration, the Company had not accepted
nor renewed any deposit form public within the meaning of Section 58-A of
the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
There is no employee in the company whose particulars are required to be
given under Section 217(2A) of the Companies Act, 1956 read with Companies
[Particulars of Employees} Rule, 1975.
ACKNOWLEDGEMENTS
Your Directors acknowledge the co-operation received from various
Government agencies, Bank, Customers, Suppliers and Employees during the
year.
By Order of the Board
For EPIC ENZYMES, PHARMACEUTICALS AND
INDUSTRIAL CHEMICALS LIMITED
Place: Mohali, P.K. MAHAJAN
Date : 29th June, 2012 Chairman & Managing Director
ANNEXURE TO DIRECTORS REPORT
CONSERVATION OF ENERGY:
The Company is continuously studying to identify various areas wherein
energy saving is possible as it accords high priority to energy
conservation.
Form A: Disclosure of particulars with respect of Conservation of Energy:
(1) Power and Fuel Consumption 2011-12 2010-11
(12 Months) (12 Months)
i. Electricity
Purchased Units (M.KWH) - 0.10
Total Amount (Rs. in Lakhs) - 0.50
Average Rate (Rs./Unit) - 5.00
ii. Oil Diesel:
Quantity (K.L) - -
Total Amount (Rs. in Lakhs) - -
Average Rate (Rs./Ltr.) - -
(2) Consumption per Unit of Production
Electricity per Unit of Production (KWH/MT) - -
Fuel Oil per Unit of Production (Ltr/MT) - -
Form B: Disclosure of particulars with respect of Technology Absorption:
Research & Development
(1) Specific areas in which R &D carried out by the Company:
Improvement in the quality and yield of existing products and improvement
in the raw material consumption.
(2) Benefits derived as a result of above R &D:
With the improved quality the products has been very well accepted in the
international Market, cost of manufacture has also been reduced.
(3) Future Plan of Action:
To introduce new products and process improvement to cut down production
cost.
(4) Technology Absorption, Adaptation and Innovation:
i. Efforts made towards technology absorption:
The Company, through its R & D efforts, is constantly endeavoring
adaptation, absorption and innovation of newer technologies.
ii. Benefits derived:
Products and process improvement and cost reduction.
iii. Information regarding imported technology during the last 5 years: Not
applicable.
Form C : Disclosure of particulars with respect to Foreign Exchange
Earnings and Outgo:
(1) Activities relating to exports, initiative taken to increase exports,
development of new market: The Company is working towards introducing new
products having export potentials.
(2) Total Foreign Exchange used and earned: (Rs. in Lacs)
2011-12 2010-11
(12 Months) (12 Months)
(A) Foreign Exchange used NIL NIL
(B) Foreign Exchange earned NIL NIL
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT:
The Company is part of the industry broadly known as agrochemical. The
agrochemical industry consists of various products in different segments
tike insecticides, fungicides, weedicides, herbicides, rodenticides. The
fortunes of agrochemical industries are directly linked to take off from
the farmers depending upon crop pattern under cultivation. Another factor,
which directly affects production and sale of agrochemicals, is monsoon and
distribution of rainfall throughout India. The other relevant factors
having bearing on the industry are environmental concern, government
agricultural policies, import and export restrictions for agriculture
produce.
During the last decade, the growth in the agriculture sector has been
consistently positive due to favorable monsoon and largely even
distribution of rainfall. The government has permitted private investment
in the agriculture sector in limited way and has also eased restrictions on
the marketing, transportation and exports of surplus food grains. The
aforesaid measures will have positive impact on the agrochemicals industry.
OPPORTUNITIES AND THREATS:
The per capital consumption of agrochemicals in India is very low in
comparison the developed countries. There is vast potential for higher
consumption of agrochemical and growth in the industry. However a slow and
sure revolution is taking place in agriculture sector like use of high
yield seeds, improved techniques of harvesting, and larger area under
irrigation coverage, research and development on GM and biotechnology
agricultural produce. The global demand for agrochemical will be a great
opportunity for Indian agrochemical industry to capitalize upon and to
capture export market.
The Major threat to the agrochemical industry is dumping of chemicals by
China. Similarly, the introduction of patented molecules by multinationals
will have adverse effects on Indian agrochemical industry. The delay in
implementation of labour reforms by the government and non-upgradation of
technology by Indian agrochemical industry also posses threat in the coming
years.
SEGMENT WISE PERFORMANCE:
Presently company is dealing in single segment of activity namely
agrochemical.
OUTLOOK:
The long-term outlook for the agrochemical industry is very encouraging as
country gears up to maintain its self sufficiency in food grains and
increasing cultivation of commercial crops.
The current year performance will depends upon the amicable Settlement with
State Bank of India.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
Considering the size and nature of the business, presently adequate
internal controls systems are in place.
However, as and when company achieves growths and higher level of
operations, company will review the internal control system to match with
changed requirement.
The company has proper and adequate systems of internal controls to ensure
that all assets are safeguarded and protected against unauthorized use or
disposition and those transactions are authorized and recorded correctly.
THE FINANCIAL AND OPERATIONAL PERFORMANCE:
The financial statements are in confirmation with the provisions of the
Companies Act, 1956 and applicable accounting standard recommended by the
institute of Chartered Accountants of India. The financial statement
reflects the genuine desire for the transparency and best judgment for the
estimate made on prudent and reasonable bases to correctly reflect the true
and fair affairs of the company.
The net loss during the year has been Rs.(17.61) Lacs in comparison to
Rs.(1402.83) Lacs loss in the previous year.
CAUTIONARY STATEMENT:
Statement in the Management Discussion and Analysis describing the
Companys objectives, projections, estimates, expectations or predictions
may be forward-looking statements within the meaning of applicable
securities laws and regulations. Actual results could differ materially
from those expressed or implied. Important factors that could make a
difference to the companys operations include settlement with State Bank
of India, cyclical demand and pricing in the Companys principal markets,
changes in Government regulations, tax regimes, economic developments
within India and the countries in which the Conducts business and other
incidental factors.