pan drugs ltd share price Directors report

ANNUAL REPORT 1998-99 PAN DRUGS LIMITED DIRECTORS REPORT The Members, Your Directors have pleasure in presenting herewith Sixth Annual report for the year ended 31.03.1999 of your Company. The following figures summarise the working results for the year: YEAR IN RETROSPECT During the year under review, your Company continued to pursuit excellence in the performance by fetching the Gross Income of Rs.2211.78 lacs against Rs.1657.39 lacs of previous year. registering growth by 33.44%, by earning Gross Profit before Interest, Depreciation and Tax of Rs.205.08 lacs against Rs.133.08 lacs of previous year, registering growth of 54.10% and by earning Net Profit of Rs.54.55 lacs against Rs.25.41 lacs of previous year, showing the rise of 114.68%. Your company could show better performance on account of optimum utilisation of Expanded capacity from 100 tons to 150 tons of Paracetamol per month with newer technology, stabilizing the optimum yield in Erythromycin Salts, minimising unproductive and wasteful operating costs and inputs and better management of Inventory and Working Capital. However delayed and non realisation of sale proceeds and stiff competition in market coupled with financial crunch prevailing in present sluggish and recessionary trend of Economy and Industries in general, have largely and adversely affected tie performance of the Company. mainly by increasing the cost of borrowing / fund for upward growth of the Company. Your Company continues to operate to its optimum capacities inspite of many odds and difficulties, However to conserve its cash resources, the Board does not recommend payment of Dividend to the Shareholders. Your Company focuses on generation of higher volume of sales with minimum operating costs. with its systematic and determined efforts and in view of ever increasing and growing demand of your Company s products and with conceiving the diversification into the same Industry, requiring newer technology and plant & Machineries to manufacture widely accepted Vitamin C by utilising the existing and in built other manufacturing and its allied facilities, the Company intends to project better future in coming years. Moreover, there are plans a foot to explore all the possibilities of expanding the existing 150 MTs pm. capacity of Paracetamol to 200 MTs pm subject to the suitable term lending tie-overs with the existing and/or new Banking/Financial Institutions. DIRECTORATE Shri Pankaj Pandya resigned as a Director f rom the Board of Directors of the Company in view of his other occupation. The Board places on record its sincere appreciations for the contributions received by the Company during his tenure as a Director with the Company Shri S.S. Reddy has been appointed as a Director on the Board of Directors of the Company in the caSual vacancy caused by the resignation of Shri Yatin Shah. Shri S.S.Reddy retires by rotation and being eligible offers himself for reappointment. ENERGY.TECHNOLOGY & FOREIGN EXCHANGE Information in accordance with the provisions of Section 217(1)(e) of the Companies Act,1956, read with Companies (Disclosures of particulars in the report of Board of Directors) Rules,1988 regarding conservation of Energy. Technology Absorption and Foreign Exchange Earnings and Outgoing. is given in the Annexure forming part of this report. PARTICULARS OF EMPLOYEES As required under the provisions of Section 217 (2A) of the Companies Act,1956 read with the Companies (Particulars of Employees) Rules,1975. information is not furnished as no employees are covered thereunder. Y2K COMPLIANCE Software and Hardware of Information Technology of the Company are being made Y2K Compliant by necessary upqradation and updation and the same is expected to be completed by November 1999. EXTENTION FOR CONVENING ANNUAL GENERAL MEETING At the request of the Company, the Registrar of Companies. Gujarat has granted approval for convening Annual General Meeting by 15th December,1999 vide his letter No. STA/(RO)/EXTN/CO No.20671 dated 08.08.1999. AUDITORS The Auditors M/s.S.G.Bhagwat & Co.. retire at the conclusion of the ensuing Annual General Meeting and offer themselves for reappointment. Members are requested to appoint and fix their remuneration INSURANCE All the properties and assets of the Company are adequately insured, risks arising out of non insurance are minimal. PUBLIC DEPOSITS During the year, the Company has not accepted any Fixed Deposits under Section 58A of the Companies Act. 1956. ACKNOWLEDGMENT The Board places on record its deep sense of appreciation for the continued support received from Banks all the staff members and workmen for furthering interest of the Company. For and on behalf of the Board Date :24.09.1999 Kamal Pandya Place :Baroda Chairman & Managing Director ANNEXURE TO THE DIRECTORS REPORT (Information under Section 217(1) (e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules,1988 and forming part of the Directors Report for the year ended 31 st March,1999. A CONSERVATION OF ENERGY: (a) Energy Conservation measures taken Optimum batch Size. Elimination of idle running time. Inventory planning & control. b) Aditional Investment and proposals being implemented for reduction in consumptin of energy. The Company has ongoing study and survey of actual energy consumption of equipments and less efficient equipments are replaced by more efficient equipment. (c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods. The measures taken have resulted in saving in the cost of production. (d) Details of Energy Consumption for production: As per Form-A B. TECHNOLOGY ABSORPTION: Research & Development and Technology Absorption: Considering the size of the unit and nature of products, the avenues for R & D are very limited and therefore not applicable. C FOREIGN EXCHANGE, EARNING & OUTGO: 1) Total Foreign Exchange used and earned: i) Foreign Exchange used Rs 3,37,254/- ii) Foreign Exchange earned Rs 224,04,477/-