| Your Directors have pleasure in presenting herewith their Twelfth
Annual Report together with the Audited Statements of Accounts for the
year ended 31st March, 2002.
(Rs. in Lacs) (Rs. in Lacs)
1. FINANCIAL RESULTS
2001-02 2000-2001
Sales 45.56 4.23
Other income from operations and other income 5.46 5.06
Profit/Loss before making provisions for
Interest, Depreciation and Taxation (-) 22.31 (-) 109.35
Less:
1. Interest 7.38 7.79
2. Depreciation 12.25 16.20
3. Provision for Taxation - -
Profit/Loss for the year (-) 41.94 (-) 133.34
Add: Balance in P & L A/c (-) 305.42 (-) 172.08
Balance carried to Balance Sheet (-) 347.36 (-) 305.42
2. DIVIDEND
In view of losses suffered by the Company during the year under reivew,
Your Directors express their inability to recommend any Dividend.
3. PRESENT OPERATIONS & FUTURE PROSPECTS
The present operations of the Company had been effected due to non
availability of Raw Materials which was attributed due to the
insufficient working facilities. Your directors are exploring the
possibilities for manufacturing the drugs. The Company is in advance
stage negotiating for manufacturing of "ADDEGRA" a substitute of
VIAGRA. The results will be seen in the current year.
4. RESPONSIBILITY STATEMENT:
Directors Confirm ;
(a) That the preperation of the Annual Accounts, the applicable
standards have been followed and that no material departures have been
made for the same ;
(b) That they have selected such accounting policies and applied them
consistently and made judgements & estimates that are reasonable and
prudent so as it give true and fair view of the state of affairs of the
company at the end of the Financial year and of the profit or loss of
the company for that year;
c) That they taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
d) That they have prepared the annual accounts of the going concern
basis.
5. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS/OUTGO.
The information relating to Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo required under
section 217(1)(e) of the Companie Act, 1956. read with the Companies
(Disclousure of particulars in the Report of the Board of Directors)
Rules, 1988, is given in the Annexure to this Report.
6. PARTICULARS OF EMPLOYEES
Provisions of Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 are not applicable to
the Company, since none of the employees of the Company was in receipt
of total remuneration of Rs. 24,00,000/- p. a. or Rs. 2,00,000/- p. m.
during the financial year under review.
7. AUDITORS AND AUDITORS REPORT
The present auditors of the Company, M/s. B. K. Patel & Co., Chartered
Accountants, have expressed their unwillingness to be reappointed as
auditors on their retirement at the forthcoming Annual General Meeting.
The Company has received certificate from M/s. Harish V. Gandhi & Co.,
Chartered Accountants, signifying that their appointment if made shall
be within the limits specified under Section 224(1)(B) of the
Companies Act, 1956. The Board therefore recommends the appointment of
M/s. Harish V. Gandhi & Co., Chartered Accountants as auditors of the
Company from the conclusion of the forthcoming Annual General Meeting
until the conclusion of the next Annual General Meeting of the Company
on such remuneration as may be decided by M/s. Harish V. Gandhi & Co.
and the Board of Directors. Regarding the Auditors remark for
confirmation of debtors, creditors, loans and advances your Directors
have to report that the amount outstanding is not material however your
company has send the balance confirmation letters to the concerned
parties and shall receive the same witin the short time. With regard to
the payment of provident fund dues is concerned your Directors have to
state that the Company has no fund of its own, but it deposits in the
state run Provident Fund Scheme. The Company where the delay had been
caused, which was due to heavy liquidity crunch has deposited the dues
alongwith interest and penalty thereon.
The Company was compelled to sell of the assets which were idle and to
reduce the interest burden. The sale proceeds of the machinery used
for BOB/GSFC Loan Payments. The loss incurred on sale of the assets
will be compensated by saving the interest cost which the Company would
be required to shoulder. Your Directors are pleased to inform that
since last year your Company has implemented the practice of Internal
Audit through the internal semi qualified staff under the direct
supervision of Chairman & Managing Director. With this introduction the
wastages have been restrained and cost effective measures have been
possible.
8. PERSONNEL
Industrial relations continued to be cordial and harmonious during the
year under review. Directors wish to place on record their appreciation
for the co-operation received from the staff and workers at all levels.
9. LISTING
The Shares of the Company at present are listed at Ahmedabad, Mumbai
Stock Exchanges. The listing fees of Ahmedabad and Mumbai Stock
Exchanges has been duly paid.
10. ACKNOWLEDGEMENT
Your Directors place on record their sincere thanks for continuous
support of the Banks, Central and State Governments, Office of the
Industries Commissioner, valued Customers and devoted workers for their
continuous contribution to the growth and progress of the Company.
The Directors also express their gratitude to the shareholders for the
confidence reposed in the management.
ANNEXURE TO THE DIRECTORS REPORT
Disclosure Of particulars with respect to Conservation of Energy,
Technology Absorption and Foreign Exchange Earning and Outgo as
required Under Section 217(1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of Particulars in Directors Report) Rules, 1988
and forming part of the Directors Report for the Year ended 31st
March, 2002.
A. CONSERVATION OF ENERGY
1) Energy conversation measures taken:
The Company has formed a technical department headed by a senior
personnel to continuously monitor energy consumption and plan and
execute energy conservation schemes. Effective measures are being taken
for overall technological Upgradation of plant and machinery.
B. TECHNOLOGY ABSORPTION:
a) Research and Development:
(i) Specific areas in which R&D carried out by the Company: The
continuous Research & Development efforts of the Company are directed
towards quality control and improvement of inhouse expertise.
(ii) Benefits derived as a result of above R&D are primary by way of
improvement in product quality and cost effectiveness.
b) Technology Absorption and innovation:
i) Efforts in brief made towards technology absorption, adoption and
innovation. The Company has been putting emphasis to train its
technical personnel by way of providing training to them for the latest
technology available.
ii) Benefits derived as a result of the above efforts: It has resulted
in a better quality of product which has been brought to the
international Standard, besides improving the productivity and reducing
the wastages.
iii) Information regarding technology imported during the last five
years:
Not Applicable.
C. FOREIGN EXCHANGE EARNING & OUTGO
(Rupees in Lacs)
Particulars 2001-02 2000-01
Foreign Exchange Earned Export of Goods on FOB Basis Nil Nil
Foreign Exchange Used: Nil Nil
Foreign Travelling
Bank Charges
Membership & Subscription
Finished Goods Purchased
Telephone Expenses
For and On Behalf of the Board
VADODARA Dr. Bharat I. Patel
Chairman & Managing Director
Dated: 2nd September, 2002. |