pfimex pharmaceuticals ltd Directors report

1995 PFIMEX PHARMACEUTICALS LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting the Audited Accounts of your Company for the 9th Financial Year ended 31st December, 1995. CORPORATE RESULTS During the year under review sales for the Company is aggregated to Rs. 2841.08 which was higher by Rs. 367.66 lacs. There has been a fall in the profit due to no return on investment made in subsidiary Company, non availability of sufficient working capital limits and high interest burden on the borrowings. REVIEW OF OPERATIONS On Domestic front, your Company has achieved a sale of Rs. 2343.39 lacs as compared to last year sale of Rs. 2027.65 lacs. During the year your Company has opened one new depot at Indore to stock goods and distribute the Companys products. AYURVEDIC DIVISION During the year an Ayurvedic OTC Product "Madhu Vilas", energiser has been successfully launched in the States of Gujarat, Andhra Pradesh and Orissa and there is good initial response to the product. Your Company is launching Ayurvedic product, for Arthritis - "Suchal-ortho" Capsules in the first week of May in four States. It will be sold through ethical promotion i.e. by promoting to doctors. "Suderm" will be launched during June, 1996 for Psoriasis (skin diseases). Your Company also proposes to manufacture products in the Herbal Section for remedying acidity problems, gynaec problems, sexual disorders, haemetinics, anti inflammatory, anti-diarrhoeal etc. HORMONE SECTION During the year under review, your Company has produced Mala N and Mala D for Ministry of Health and Family Welfare, Government of India. Your Company is hopeful of procuring further orders to produce and supply Oral Contraceptive Pills (OCP) viz., "Choice" to Ministry of Health and Family Welfare, Government of India. PFIMEX ORGANICS LIMITED Your Company could ensure completion of the bulk drug project of its subsidiary Company viz., Pfimex Organics Limited. Four products viz. DOT Ciprofloxacin, Nitrovin and Nalidixic Acid have been launched. EXPORTS The Company has exported worth Rs. 497.69 lacs during the year 1995 to Vietnam, Cambodia, East Africa and Nepal and has orders on hand for export to these countries. Your Company has registered its pharmaceutical formulations in Vietnam, Sri Lanka and Bruma. Steps are being taken to register pharmaceutical formulations in Russia, Mangolia etc. The Company has also been receiving enquiries from Latin American Countries. Your Company is confident of achieving export turnover of about of Rs. 6 crores during the current year. SUBSIDIARY The statement relating to Pfimex Organic Limited, the subsidiary Company pursuant to section 212 of the Companies Act, 1956 together with its balance sheet as at 30.09.1995 is annexed hereto. DIRECTORS Mr. H.P. Nag Chowdhury, Mr. V.H. Patil and Mr. M.K. Kumbhat retire by rotation and being eligible offer themselves for re-appointment as Directors. Gujarat Industrial Investment Corporation Limited vide their letter No. GIIC/SEC/7455 dated 28.02.1996 has appointed Dr. V.V. Rama Subba Rao, IAS, Additional Chief Secretary, Finance Department, GUjarat as Nominee Director in place of Mr. G. Subba Rao, IAS. Your Directors place on record their appreciation of the valuable services rendered by Mr. G. Subba Rao as Director of the Company. FIXED DEPOSITS As on 31.12.1995 the Company has no overdue/unclaimed deposits. AUDITORS M/s. V. Amarnath & Associates, Chartered Accountants, the Auditors of the Company and M/s. S. Madanmal Mehta and Company, Chartered Accountants, Branch Auditors of the Company retire at the conclusion of this Annual General Meeting and are eligible for re-appointment. The Company has received certificate from Auditors and Branch Audit to the effect that their appointment, if made, would be within the prescribed limits under Section 224 (1) of the Companies Act, 1956. FOREIGN EXCHANGE OUTGO AND EARNINGS The Company has incurred Rs. 158.39 lacs by way of expenditure in foreign currency towards import of raw materials, subscriptions to periodicals and on account of travel. The Company has earned Rs. 497.69 lacs by way foreign exchange received on account of export sales. The Company is net foreign exchange earner to the nation. During the last year the Company has earned net foreign exchange of Rs. 339.30 lacs which is 12% of t Companys total sales. INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956. 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 given in annexures 1 and 2 and forms part of this report. Information required under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975 are given in the annexed statement and forms part of this Report. SAFETY MEASURES & INSURANCE The units of your Company situated at Jeedimetla in Andhra Pradesh and Sarigam in Gujarat conform to WHO GMP Norms. Your Company strictly follows the safety measures and the assets of your Company are properly insured. EMPLOYEE RELATIONS Employee Relations at all levels remained cordial during the year. ACKNOWLEDGEMENTS Your Directors wish to thank State Bank of Hyderabad, Vijaya Bank, Bank of Rajasthan Limited, Industrial Finance Corporation of India Limited and The Gujarat Industrial Investment Corporation Limited for their timely support, co-operation and valuable guidance. The Directors also appreciate continued support and co-operation extended by the Workers, Staff and Executives of the Company. ANNEXURE - 1 FORM A (See Rule 2) Form for disclosure of particulars with respect to conservation of energy. A. POWER AND FUEL CONSUMPTION 1995 1994 1. Electricity a) Purchased: Unit 5,82,465 4,54,466 Total Amount 18,46,414 12,90,685 Rate/Unit 3.17 2.84 b) Own generation: i) Through diesel generator: Total Amount 5,76,605 3,70,761 Units per litre of diesel oil cost/unit Rs.7.90/unit Rs.7.84/unit ii) Through steam turbine/generator Units Units per litre of fuel oil/gas cost/unit NIL NIL 2. Coal (specify quality & where used) Quantity (tonnes) Total Cost Average Rate Not applicable 3. Furnace Oil Quantity (K. Litres) Total Amount Average rate Not applicable 4. Others/internal generation (Please give details) Not applicable Quantity Total Cost Rate/Unit B. CONSUMPTION PER UNIT OF PRODUCTION Standards Current year Previous year (if any) Products (with details) Unit Since there are number of products that Electricity are being produced simultaneously it is Furnace Oil not practicable to ascertain product Coal (Specify Quality) wise consumption. Other (Specify) ANNEXURE - 2 FORM B (See Rule 2) Form for disclosure of particulars with respect to absorption Research and Development (R&D) 1. Specific areas in which R&D : R&D is carried out in Chemical and carried out by the Company Pharmaceutical development areas. 2. Benefits derived as : Product improvements, Process a result of the above R&D development, Import substitution, standardisation of quality control of formulations. 3. Future plan of action : i) Development of new dosage formulations. ii) Import substitution. iii) Studying the feasibility of using new manufacturing technology. 4. Expenditure on R&D 1995 1994 i) Capital -- -- ii) Recurring 3,07,986 4,64,676 iii) Total 3,07,986 4,64,676 iv) Total R&D Expenditure 0.11 0.18 as a percentage of total turnover Technology absorption, adaptation and innovation 1. Efforts in brief, made : No technology has been imported by towards technology the Company in the last 6 years. absorption, adaptation The Company raises all assistance & and innovation. Technological guidance in respect of products which are presently licenced and allowed to be manufactured by the Company. The Company deputes free of charge their technical personnel whenever required to guide the Companys operations including maintenance of quality and safety. 2. Benefits derived as a result : Not applicable of the above efforts e.g. cost reduction, product development, import substitution 3. In case of imported : Not applicable technology (imported during the last 5 years reckoned from the beginning of the financial year). Following information may be furnished. a) Technology imported : b) Year of import : c) Has technology been fully absorbed : d) If not fully absorbed : areas where this has not taken place, reasons thereof and future plans of actions. For & on behalf of the Board of Directors VINAY KUMAR BHANDARI Chairman and Managing Director Place : Hyderabad Date : 30th April, 1996.