| Your Directors have pleasure in presenting before you the Second
Annual Report together with Audited Accounts of the Company for the
year ended on 31st March, 1996.
PROJECT
You are aware that the company is setting up a project costing Rs. 610
lacs to manufacture bulk drugs such as Amoxycillin tri hydrate,
Ampicillin tri hydrate, Cephalexin mono hydrate and Nalidixic acid at
Hadamtala, Taluka-Kotda Sangani, Dist-Rajkot. For the said project
the company is setting up an anti-biotic plant with an installed
capacity of 48 Metric Tonnes per annum and a non-anti-biotic plant
with an installed capacity of 48 Metric Tonnes per annum. The
anti-biotic plant has already been completed and the company has also
started the trial run. The company proposes to start the commercial
production by the third week of July, 1996. As far as the
non-anti-biotic plant is concerned, the same is being implemented
expeditiously and the company envisage to complete the same by the end
of the September, 1996 and the company proposes to start the
commercial production by the end of October, 1996. The common civil
work for both the above plants is proposed to be completed by the end
of August, 1996. It is noteworthy that due to the cost saving at every
stage and vigilant personal attention of the Directors during the
implementation of the project, though it is delayed, no cost over-run
has been incurred by the Company
Till 31st March, 1996 the company has incurred the following
expenditures towards its project under implementation
PARTICULARS
RS. IN LACS
Land & Site development 10.62
Building and Civil work 65.60
Plant & Machinery - Indigenous 139.64
Electrical Installation and other assets 22.92
Preliminary, Pre-operative & Public
issue expenses 50.22
Margin money for working capital 148.53
For meeting the part of total cost of the project the company has
successfully entered into capital market with a maiden public issue of
30,00,000 Equity Shares of Rs. 10/- each aggregating to Rs. 3 Crores.
The issue had received a good response from public and it was
oversubscribed by 1.26 times. The company allotted the Equity Shares
pursuant to the said public issue on 8th January, 1996. The shares of
the company have been listed with Ahmedabad, Rajkot and Mumbai Stock
Exchanges. Further for financing the part of the Capital Cost of the
Project, GSFC has already sanctioned a term loan of Rs. 100 lacs and
till 31-3-1996 the company has availed disbursement of Rs. 48.18 lacs
from GSFC.
The company has approached various banks for financing the working
capital requirements of the project and finally the company has filed
an application with Corporation Bank for financing the working capital
requirements of the company, which is under active consideration of
the bank.
FINANCIAL RESULTS
During the year under review the project of the Company was under
implementation stage. The Company has incurred preliminary expenditure
to the tune of Rs.2,30,000/-, preoperative expenditure to the tune of
Rs.28,99,000/- and public issue expenditure to the tune of Rs.
18,93,000/- during the year under review. Since the Company has not
started its commercial production, the Profit and Loss Account for the
year ended on 31st March, 1996 is not prepared. The preliminary and
public issue expenses incurred so far will be adjusted against profits
in the future years. The expenditure incurred under the head
"Pre-Operative Expenses" will be capitalised by allocation to fixed
assets on appropriate basis on completion of the Project.
DIRECTORS
Pursuant to Article No. 153 and 154 of the Articles of Association of
the Company read with Section 258 of the Companies Act, 1956 Shri
Prabhudas D. Hansalpara is due to retire at the ensuing Annual General
Meeting and being eligible offers himself for reappointment.
Shri Mansukh B. Thummar resigned as Director of the Company with
effect from 01-04-1996 and his resignation was accepted by the Board
of Directors at its meeting held on 01-04-1996 after appreciating his
valuable support extended to the company during his tenure as Director
of Company.
Shri Dhirajlal R Kavathia resigned as Director of the Company with
effect from 01-04-1996 and his resignation was accepted by the Board
of Directors at its meeting held on 01-04-1996 after appreciating his
valuable support extended to the company during his tenure as Director
of Company.
FIXED DEPOSITS FROM PUBLIC
The Company has not accepted any fixed deposit during the year under
review, which is covered under Section 58A of the Companies Act, 1956.
AUDITORS
The existing Auditors of your Company, M/s. H. B. Kalaria &
Associates, Chartered Accountants will retire at the ensuing Annual
General Meeting. The retiring Auditors have expressed their intention
not to seek reappointment. It is now proposed to appoint M/s. Gadhia
Karachiwala & Co., Chartered Accountants, Rajkot as the Auditors of
the Company from the conclusion of the ensuing Annual General Meeting.
M/s. H. B. Kalaria & Associates have also supported the proposal of
the Company. M/s. Gadhia Karachiwala & Co. have also confirmed to the
Company that if appointed, their appointment will be in accordance
with the provisions of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
Information pursuant to Section 217 (1-A) of the Companies Act, 1956
read togetherwith the Companies (Particulars of Employees) Rules, 1975
has not been given since there is no employee drawing remuneration in
excess of the limit prescribed thereunder.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS
AND OUTGO
Additional information on conservation of Energy, Technology
Absorption & Foreign Exchange Earning and Outgo as required to be
disclosed in terms of
Section 217(1)(e) of the Companies Act, 1956 read together with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules 1988, has not been given as the company has not
started any manufacturing activity.
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