The Directors have pleasure in presenting the Fifteenth Annual Report
of the Company alongwith the Audited Accounts for the year ended 31st
The financial results for the year ended 31st March, 2000 are
summarised below :
Rs. in Lacs
Sales and Income from Operations 9429.52
Loss before Depreciation (861.49)
Less : Depreciation for the year 286.90
Loss for the year (1148.39)
During the year under review, the business had incurred loss due to
high interest cost and lower capacity utilisations and further due to
change in the valuation of inventories as per Accounting Standards - 2.
Further during the year, the Bulk Drug Division has been hived off, as
this division could not take off as expected due to industry recessions
and other factors and the relevant proceeds of the same were used for
repayment of high cost debts.
During the year, Dr Reddy's Laboratories Limited, (DRL) Hyderabad has
acquired the entire stake of the promoters and made further
acquisitions, through Open offers. It is expected that this
acquisition by Dr Reddy's Group will benefit the company in the long
In the light of operating loss for the year, the Directors have not
recommended any dividend for the year.
The Deposits from the Public and Share holders as on 31.03.2000 amount
to Rs. 29.43 lacs. Deposits maturing during the year were paid on
respective due dates. There were no unpaid matured deposits.
CONSERVATION OF ENERGY/TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
Information as per section 217 (1) (e) of the Companies Act, 1956 read
with rule 2 of the Companies (Disclosure of particulars in the report
of Board of Directors) Rules 1988, is set out in the annexure-1 which
forms part of this report.
During the year Mr. R. K. Ramanathan, Mr. G. K. Ramani & Mr. V. S.
Raaman resigned from the Board with effect from 25.02.2000. The Board
places on record grateful appreciation of the valuable services
rendered by Mr. R. K. Ramanathan, Mr. G. K. Ramani & Mr. V. S. Raaman
during their tenure of office as Directors.
Mr. Satish Reddy, Mr. G. V. Prasad and Mr. V. S. Vasudevan, who were
appointed as Directors of the Company with effect from 25.02.2000.
The statutory Auditor of the Company M/s. Karra & Co., Chartered
Accountants, Chennai retire at the ensuing Annual General Meeting and
being eligible, offers themselves for reappointment.
The Directors would like to express their appreciation of the
co-operation and support received from all the Banks and the Financial
Institutions, Also the Directors would like to inform you that all
loans borrowed from Banks and Financial Institutions were substituted
with low cost borrowings.
PARTICULARS OF EMPLOYEES
As required by the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 as
amended, the names and other particulars of the employees are set out
in the Annexure - 2 to the Report of Directors'. However, as per the
provisions of section 219 (1) (b) (iv) of the Companies Act, 1956, the
Report and Accounts are being sent to all the share holders of the
company excluding the aforementioned information. Any shareholder
interested in obtaining such particulars may write to the Corporate
Office of the Company.
DEMATERIALISATION OF SHARES
We are glad to inform you that the Company had entered into an
agreement with National Securities Depository Limited (NSDL) to
facilitate the holding and trading of the Company's shares in
The company has successfully rolled over its IT and other Business
systems post millennium and no advance impact was encountered during
the changeover period.
II. CONSUMPTION PER UNIT OF PRODUCTION
The consumption per unit depends on the product mix since it consists
of different types of products and variable batch sizes. Hence there
is no specific standard.
III. TECHNOLOGY ABSORPTION / RESEARCH & DEVELOPMENT
Information under section 217 (1) (e) of the Companies Act, 1956 read
with companies (disclosure in the report of Board of Directors) Rules,
1988 and forming part of Report of Directors.
In the formulation R&D Centre at Ambattur, the following new products
have been developed successfully during the year.
1. Cetrizine and Ambroxol Tablets and Syrup
2. Mouth dissolving Nimesulide Tablets
3. Revised composition for Optisulin Capsules
4. High concentration of Antioxidant in soft gelatin capsules
5. Nimesulide in soft gelatin capsules
6. Nimesulide and Paracetamol in soft gelatin capsules
7. Griseofulvin topical preparations
8. Haematinic capsules (for export)
9. Chewable Vitamin tablet preparation.
10. Anti diabetic Ayurvedic preparations.
BENEFITS DERIVED AS A RESULT OF ABOVE R & D
a. Following formulation brands have been launched during the financial
1. Relent Tablet and Syrup
2. Haematinic Capsules (for Export)
3. Antoxid HC Capsules
b. Branded formulations were exported to African countries, after their
IV. FOREIGN EXCHANGE EARNINGS AND OUTGO
Information under Section 217 (1) (e) of the Companies Act, 1956 read
with Companies Act (Disclosure of Particulars in the Report of
Directors' Rules, 1988) and forming part of Report of Directors.
S.No. Current Year Previous Year
1. Earnings in foreign Exchange
during the year F.O.B. value of
Export 7,60,72,192 5,52,81,743
2. CIF Value of Import (on cash
basis) Raw materials, capital
goods, spare parts, components
& consumables 4,85,07,918 2,63,07,346
3. Expenditure in Foreign currency
during the year (on cash basis)
Travelling Expenses 9,67,105 7,60,857
Interest and Know-how fees 10,18,094 20,37,899
Others 36,43,846 27,73,913
4. Total Foreign Exchange used (2+3) 5,41,36,963 3,18,80,015