The Directors have pleasure in presenting the Thirty Fourth Annual
Report and Audited Accounts for the year ended March 31, 2012.
(Rs. in million)
Year ended Year ended
2012 March 31,
Income from Operations 26,176 21,904
Other Operating Income 234 181
Total Income from 26,410 22,085
Total Expenditure 22,294 17,625
Operating Profit 4,116 4,460
Other Income 89 51
EBITDA (including Other 4,205 4,511
Depreciation 1,320 999
Finance Costs 1,544 467
Profit after Interest but 1,341 3,045
before Exceptional Items
Exceptional Item - Gain/ (1,800) (46)
Tax Expenses 350 203
Reported Net Profit / (809) 2,796
(Loss) after Tax
Profit brought forward from 9,228 8,819
Adjustment on - 1,017
implementation of Scheme of Amalgamation
PROFIT AVAILABLE FOR 8,419 10,598
Which the Directors have
appropriated as follows:
- Proposed Dividend on 478 318
- Tax on Dividend on 77 52
- Transfer to General - 1,000
Balance to be carried 7,864 9,228
Standalone Financials Income from Operations
In FY2012, the Company recorded income from operations of Rs. 26,410
million, which grew by 20% over last year.
International business contributed 53% to the net revenue from
operations at Rs. 13,982 million.
For the year ended March 31, 2012, EBITDA stood at Rs. 4205 million with
EBITDA margins at 16%.
Reported Profit/(Loss) After Tax and EPS
Reported Loss After Tax was Rs. 809 million in FY2012. Basic EPS stood at
Rs. (5.08). However, Normalised Profit After Tax stood at Rs. 991 million
after adjusting for exceptional items of Rs. 1800 million, mainly on
account of unrealised exchange losses. Normalised EPS stood at Rs. 6.22
for the FY2012.
Consolidated Financials Income from Operations
In FY2012, income from operations was Rs. 43,031 million, which grew by
25% over last year.
International business contributed 71% to the Revenue at Rs. 30,360
million. Sales from regulated markets at Rs. 24,853 million were 58%
compared to 52% in previous year.
This comprises revenue lines of APIs, Generics, Speciality Pharma, CMO,
DDDS and Healthcare. In FY2012, Income from operations of this business
was Rs. 21,753 million contributing 51% to the total revenue and recorded
a growth of 41%. EBITDA stood at Rs. 5801 million, up from Rs. 1674 million
in previous year, reporting growth of 247%. EBITDA margins stood at
26.7% in FY2012.
Life Sciences Ingredients Business
This business comprises Proprietary Products and Exclusive Synthesis,
Nutrition Ingredients and Life Science Chemicals. In FY2012, Income
from operations at Rs. 21,029 million recorded an increase of 11% over
last year same period. EBITDA stood at Rs. 3542 million with 16.8%
margins for the year compared to Rs. 4680 million and 24.6% margins in
previous year. The margin reduction is mainly on account of competitive
pricing to enhance market share and higher input material costs. The
situation is expected to be corrected during FY2013 due to cost
rationalization and operating leverage.
For the year ended March 31, 2012, EBITDA stood at Rs. 8930 million with
EBITDA margins at 20.9%.
Reported and Normalised Profit After Tax and EPS
Reported Profit After Tax was Rs. 146 million in FY2012. Basic EPS
stood at Rs. 0.91. However, Normalised Profit After Tax stood at Rs.
3632 million after adjusting for exceptional items of Rs. 3487 million,
mainly on account of impairment of goodwill in US clinical research
business and unrealised exchange losses. Normalised EPS stood at Rs.
22.80 for the FY2012.
Your Directors recommend a dividend of 300% i.e. Rs. 3 per fully paid up
equity share of Rs. 1 for the year ended March 31, 2012.
This will absorb Rs. 555 million (inclusive of tax) based on existing
capital. The payment of dividend is subject to the approval of the
shareholders at the forthcoming Annual General Meeting (AGM) of the
(A) Foreign Currency Convertible Bonds (FCCBs)
During the year, the outstanding balance of FCCBs amounting to USD
142.10 million was redeemed. There are no further FCCBs outstanding.
(B) Employees Stock Options (ESOPs)
During the year, no Stock Options were granted under Jubilant Employees
Stock Option Plan 2005.
As on March 31, 2012, 1,64,562 Stock Options were outstanding. Each
Option entitles the holder to acquire five equity shares of Rs.1 each at
the exercise price fixed at the time of grant being market value as per
the SEBI (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 (SEBI Guidelines). A maximum of 8,22,810
shares will be allotted by the Company / transferred from Jubilant
Employees Welfare Trust upon exercise of these Options.
Further, during the year, your Company instituted JLL Employees Stock
Option Plan, 2011, in terms of approval of shareholders accorded at the
AGM held on August 23, 2011 and in accordance with SEBI Guidelines.
Under this Plan, 8,91,383 Stock Options were granted during the year
and as on March 31, 2012, 8,60,580 Stock Options were outstanding. Each
Option entitles the holder to acquire one equity share of Rs. 1 at the
exercise price fixed at the time of grant being market value as per the
No dilution of capital is expected due to ESOPs as it is envisaged to
transfer the shares held by Jubilant Employees Welfare Trust to
employees on exercise.
The disclosures required under Regulation 12 of the SEBI Guidelines are
given in Annexure A and form part of this Report.
(C) Paid-up Capital
The Paid-up Capital as at March 31, 2012 stands at Rs. 159,281,139
comprising of 159,281,139 equity shares of Rs. 1 each, same as in
Brief particulars of principal subsidiaries are given below: Jubilant
This subsidiary is based in Spokane, State of Washington, USA. It is a
wholly owned subsidiary of HSL Holdings Inc. It is a recognized
contract manufacturer of sterile injectables (vials and ampoules),
lyophilized products, liquid fills, Biologics, Suspensions,
WFI/Diluents and provides a complete range of services to support the
pharmaceutical and biopharmaceutical industries. Additionally, it is a
manufacturer of allergenic extracts, targeted primarily at treating
allergies and asthma.
Its contract manufacturing capabilities include aseptic liquid fill /
finishing and lyophilization in three distinct cGMP areas designated as
Small Volume Parenteral (SVP), Small Lot Manufacturing (SLM) and
Clinical Trial Manufacturing (CTM). Its capabilities can be applied to
a variety of projects from pre- clinical through commercial scale
across a multitude of dosage forms including microspheres, suspensions,
WFI/diluents, biologics (proteins), lyophilized products and liposomes.
Jubilant HollisterStier maintains an outstanding regulatory record with
the FDA (CBER and CDER), EMA and Japan''s and Brazil''s regulatory
agencies. Its contract manufacturing business serves customers
including innovators ranging from small biotechnology to large
Jubilant DraxImage Inc. - This company is a wholly owned subsidiary of
your Company through Jubilant Pharma Pte. Limited. It deals in
radiopharmaceuticals which is a niche, high entry barrier business.
DraxImage develops, manufactures and markets innovative diagnostic
imaging radiopharmaceuticals solutions and therapeutic
radiopharmaceutical products for the global market. The application of
these products extends to cardiology, thyroid uptake and scan, lung
scan, kidney imaging, bone scan etc.
This company is the major supplier of lyophilised radiopharmaceutical
kits for use with Technetium - 99m including DRAXIMAGE MAA, MDP, DTPA,
Glucoheptonte and Sestamibi. Its I-131 products are the market leaders
in the US with more than 70% market share. These 131 products are
currently the major revenue drivers. Radiopharmaceuticals are used for
both therapeutic and diagnostic molecular imaging applications to
customers comprising hospitals, imaging centres and cardiology /
DraxImage also markets non-radioactive products, which are solid in
This company operates a US FDA and Health Canada approved manufacturing
facility at Montreal in Canada. It is recognised globally for its
quality and execution capabilities, strong regulatory track record and
has an established customer base comprising large innovator and
specialty pharmaceutical companies.
Jubilant Biosys Limited - This company is a subsidiary of your Company
through Jubilant Biosys (Singapore) Pte. Limited, wholly owned
subsidiary of your Company, which holds 66.98% of the equity of this
This company provides Drug Discovery Services to global Pharmaceutical
and Biotech companies in:
- Stand alone Service Model
- Functional services in area of Discovery Informatics, Structural
Biology and In Vivo & Invitro Biology on FTE or Fee based model.
- Collaborative / Partnership Model
- Integrated discovery program across a single or a portfolio of
- Risk / Reward sharing option
- Research Funding
- Payments for scientific milestones including bonus achieved through
Discovery and Development phase
- Royalties on successful commercialization of drug.
During 2011-12, this company has:
- consolidated its position in the Drug Discovery Services by
providing services in integrated drug discovery programmes, functional
service in structural biology, High thru put screening, Insilco
modeling and In Vivo Biology and Invitro Biology;
- signed integrated programs deal with another major Pharma Janssen
Pharmaceutical NV and Biotech companies Mnemosyne Pharmaceutical Inc
and Norgine BV, Netherlands;
- successfully delivered a number of scientific milestones including
a drug candidate in the Oncology Therapeutic Area.
Jubilant Discovery Services Inc. - This Delaware based USA corporation,
is a wholly owned subsidiary of Jubilant Biosys Limited. Until June
2011 this company was primarily providing sales, marketing and liaising
services to Jubilant Biosys Limited for its US based customers. During
the year, this company has entered into research collaboration
agreement with Jansen Pharmaceutical NV, and is also supporting
electrophysiology services to Mnemosyne.
Jubilant Discovery Services Inc. has completed an important step in the
realization of a long term strategy to extend capabilities in
prosecuting ion channel targets and expanding the capabilities in other
targets including GPCRS and Kinases. As part of company''s strategy
to extend its capabilities, company started the ''state of the art
Discovery Center'' in North America for ion Channel targets. This
center is enabled with comprehensive discovery biology capabilities
with a focus in Voltage gated and ligand gated ion channels, GPCRs and
Jubilant Chemsys Limited - This company is a subsidiary of your Company
through Jubilant Drug Development Pte. Limited, wholly owned
subsidiary of your Company, which holds entire equity of this company.
This company offers following services to drug discovery companies
based out of US, Europe and Japan on Full Time Equivalent and molecule
- Discovery Chemistry Functions
- Hit to Lead and Lead Optimization
- Medicinal Chemistry Services
- Scaling up from mg to kg in kilo lab and pilot plant
It also works closely with Jubilant Biosys Limited in collaborative
drug discovery research services arena.
Jubilant Clinsys Limited - This company is a subsidiary of your Company
through Jubilant Drug Development Pte. Limited, wholly owned subsidiary
of your Company, which holds entire equity of this company. This
company offers following services to pharmaceutical, biotechnology and
medical device companies:
- Bio-analytical, Bio equivalence & Pharmacokinetics studies with 80
bed facility at Noida
- Clinical Trials from Phase I-IV
- Clinical Data Management studies
During 2011-12, this company has been able to sign major Clinical Trial
(CT) contracts with Otsuka Pharma Development and Commercialization
Inc., US, as part of its endeavor to enhance CT business.
Jubilant Clinsys Inc. - This New Jersey based USA corporation, is a
wholly owned subsidiary of Jubilant Life Sciences Holdings Inc. and is
a therapeutically focused full service clinical research organization.
This company has expertise in a wide range of highly specialized
therapeutic areas including oncology, cardiovascular, central nervous
system, respiratory, dermatology and allergy/ immunology. It offers
broad range of clinical research services to pharmaceutical,
biotechnology and medical device companies in support of Phase II-IV
drug and device development including project management, clinical
monitoring, scientific and medical support, patient and investigator
recruitment, site management, biostatistics, data management, drug
safety, quality assurance, regulatory affairs and medical writing. This
company has operations in Bedminster, New Jersey, Raleigh, North
Carolina, Ottawa, Ontario and Dusseldorf.
Jubilant Infrastructure Limited - This wholly owned subsidiary of your
Company had entered into a Memorandum of Understanding (MOU) with the
Government of Gujarat during the ''Vibrant Gujarat'' conference in
2007 for development of sector specific Special Economic Zone (SEZ) for
Chemicals in Gujarat. About 107 hectares land was taken on lease from
GIDC in Bharuch District, Gujarat.
During the year, this SEZ became operational and your Company commenced
commercial production of Unit-1. The finished products from this
facility would be fully backward integrated and based on in-house
developed innovative technologies, making it a hub for world class
quality offering value to all stakeholders.
The global scale plants of Vitamin B3 and 3-Cyanopyridine, at SEZ make
your Company the largest producer of Vitamin B3 in India and second
Your Company is also setting up Unit-2, a manufacturing plant for
Symtet, a crop science ingredient for one of the world''s largest and
safest low cost insecticide through an environment friendly process.
This will make your Company the world''s largest producer of the crop
science ingredient for the insecticide through green route.
Jubilant First Trust Healthcare Limited - This company is in the
business of healthcare and is involved in setting up an integrated
hub-and-spoke network. The company owns two hospitals in West Bengal
and a modern dialysis unit. Consequent upon acquisition of entire
shareholding of First Trust Medicare Private Limited by your Company,
this Company has become wholly owned subsidiary of your Company, 95.8%
of its capital being held directly by your Company and 4.2% through
First Trust Medicare Private Limited.
Asia Healthcare Development Limited - This company is a subsidiary of
your Company through Jubilant First Trust Healthcare Limited, which
holds 100% of its capital. This company runs a hospital in Behrampur,
on a Public-Private- Partnership with Government of West Bengal.
Cadista Holdings Inc. and Jubilant Cadista Pharmaceuticals Inc.
i) Cadista Holdings Inc., a Delaware based subsidiary of your Company,
got registered with the Securities and Exchange Commission (SEC) during
the year. The registration was obtained pursuant to mandatory
requirements under the Securities and Exchange Act of 1934 according to
which, where the total number of shareholders exceeds 500, a company
has to get registered with SEC. However, such registration did not
constitute an offering of securities by this company and no fresh money
was raised pursuant to such registration. Your Company, through its
subsidiary, Generic Pharmaceuticals Holdings Inc., holds 82.38% of
common stock of this company.
ii) Jubilant Cadista Pharmaceuticals Inc., a corporation incorporated
in Delaware, is a wholly owned subsidiary of Cadista Holdings Inc. This
company is in the business of manufacturing solid dosage forms of
generic pharmaceuticals, and has a US FDA approved manufacturing
facility in the USA. Its customer base includes all large wholesalers,
retail and grocery chains. Besides manufacturing its own label
products, it also provides Product development and Contract
manufacturing services. Over 10 products are commercialized in the US
and Europe with focus in the therapeutic areas of CVS, CNS, Anti
Allergic, Steroids etc. The company is the US market leader in 2
products and ranked among top 3 in 4 products and has a strong pipeline
of product filings for future growth.
Jubilant Life Sciences (USA) Inc. - This Delaware based USA
corporation, is a wholly owned subsidiary of your Company. It
undertakes sales and distribution of advance intermediates, nutrition
ingredients, fine chemicals and APIs in the USA.
Jubilant Life Sciences (Shanghai) Limited - This wholly owned
subsidiary of your Company is held through Jubilant Pharma Pte. Limited
It undertakes sales and distribution of products in China. It is into
trading of advance intermediates - Pyridine & its derivatives,
vitamins, fine chemicals and crop protection chemicals. It is catering
to pharmaceutical, animal feed and agrochemical industries in China.
This subsidiary is also a sourcing hub of raw materials for your
Jubilant Pharmaceuticals NV - This is a wholly owned subsidiary of your
Company through Jubilant Pharma NV, Belgium, which holds 99.8% of its
shares and Jubilant Pharma Pte. Limited, Singapore which holds the
balance shares, both of which are wholly owned subsidiaries of your
Company. This company is engaged in the business of licensing of
generic dosage forms and offers regulatory affairs services to generic
pharmaceutical companies for the diverse European market. During the
year, this company has started its operations of distribution of life
science chemicals to European customers.
PSI Supply NV - This is a wholly owned subsidiary of your Company.
99.5% shares of this company are held by Jubilant Pharma NV and balance
by Jubilant Pharma Pte. Limited. This company is engaged in the supply
of generic dosage forms to European markets.
Jubilant DraxImage Limited -This is a wholly owned subsidiary of your
Company through Draximage Limited, Cyprus. This company is engaged in
marketing of innovative diagnostic imaging radiopharmaceutical solution
and therapeutic products. It is providing wide range of radioisotopes
which include Tc- 99m Generator, Thallium-201 and Iodine-131 capsules,
and solution for the diagnosis and treatment of Thyroid and its related
disease. It has also launched the Lyophilized kits MDP, MAA and
Sestamibi and would soon be launching DTPA.
Vanthys Pharmaceutical Development Private Limited-
This Joint Venture between Eli Lilly and your Company was terminated
during the year. Consequently, this company became subsidiary of your
Company through Jubilant Innovation Pte. Limited.
Other subsidiaries as at the year end are as follows:
First Trust Medicare Private Limited*
Jubilant Innovation (India) Limited
Jubilant Innovation Pte. Limited
Jubilant Biosys (Singapore) Pte. Limited
Jubilant Drug Development Pte. Limited
Jubilant Pharma Pte. Limited
Jubilant Life Sciences International Pte. Limited
Jubilant Innovation (BVI) Limited
Jubilant Life Sciences (BVI) Limited
Jubilant Biosys (BVI) Limited
Jubilant Innovation (USA) Inc.
Generic Pharmaceuticals Holdings, Inc.
Jubilant Life Sciences Holdings Inc.
HSL Holdings Inc.
Jubilant DraxImage (USA) Inc.
Deprenyl Inc., USA
Draxis Pharma LLC
Jubilant HollisterStier Inc. ((formerly Draxis Pharma Inc.)
Draximage Limited, Cyprus
Draximage Limited, Ireland
Jubilant Pharma NV
6963196 Canada Inc.
6981364 Canada Inc.
Jubilant Drug Discovery & Development Services Inc.*
DAHI Animal Health (UK) Limited
Draximage (UK) Limited
Jubilant Life Sciences (Switzerland) AG
* became subsidiary during the year
Jubilant HollisterStier General Partnership (formerly known as Draxis
Pharma General Partnership)
It is a Canada based partnership among two subsidiaries of your Company
- Jubilant HollisterStier Inc. (formerly Draxis Pharma Inc.) and Draxis
Pharma LLC. This partnership is a recognized contract manufacturer of
Non-Sterile products in semi-solid and solid dosage forms. Semi -solid
dosage forms offerings are Dermatological creams, Antibiotic Ointments,
Syrups, Suspensions and gels. Solid dosage forms offerings are
Capsules, Tablets and Powder blends.
Draximage General Partnership - It is a Canada based partnership among
two subsidiaries of your Company - Jubilant DraxImage Inc. and 6981364
Consolidated Financial Statements
The Consolidated Financial Statements, in terms of Clause 32 of the
Listing Agreement and prepared in accordance with AS- 21 as specified
in Companies (Accounting Standards) Rules, 2006 form part of the Annual
Particulars required as per Section 212 of the Companies Act, 1956
In terms of the general exemption granted by the Government of India
vide its general circular no. 2/2011 dated February 08, 2011, from
attaching the Directors'' Reports, Balance Sheets, Profit & Loss
Accounts and other particulars of the subsidiaries, the same have not
been attached to this Report. The Company will make available the
Annual Accounts of the subsidiary companies and the related detailed
information upon request by any member of the Company or its subsidiary
companies. The Annual Accounts of the subsidiary companies will also
be kept open for inspection by any member at the registered office of
the Company and the subsidiary companies during business hours.
No fresh deposits have been accepted by your Company during the year
from the public. As on March 31, 2012, your Company had no outstanding
Fixed Deposits. There were no overdue deposits. There were, however, 17
unclaimed deposits amounting to Rs. 0.24 million.
M/s. K. N. Gutgutia & Co., Chartered Accountants, [ICAI Registration
Number - 304153E] Auditors of the Company, retire at the ensuing Annual
General Meeting and offer themselves for re-appointment. They have
confirmed that their re-appointment, if made, shall be within the
limits laid down in Section 224 (1B) of the Companies Act, 1956.
Pursuant to Section 233B of the Companies Act, 1956, the Central
Government has prescribed audit of cost records for certain products.
Based on the recommendations of the Audit Committee, and with the
approval of the Central Government, the Board of Directors had
appointed M/s. J. K. Kabra & Co., Cost Accountants, [Firm Registration
Number - 9] as Cost Auditors of the Company, for the financial year
The relevant cost audit reports for the financial year 2010-11 for
Industrial Alcohol and Bulk Drugs & Formulations were filed on
September 20, 2011, against the due date of September 27, 2011.
Dr. Jag Mohan Khanna, Executive Director, retired from the services of
the Company w.e.f. July 5, 2011. Unfortunately, the very next day, he
suffered a stroke and despite best treatment, breathed his last on
September 1, 2011. The Board places on record its deep sense of
appreciation for Dr. Khanna''s valuable contribution towards the
growth of the Company during his tenure as a Board member.
In accordance with the provisions of the Act and the Articles of
Association of the Company, Dr. Inder Mohan Verma, Mr. Abhay Havaldar
and Mr. H.K. Khan retire by rotation at the forthcoming Annual General
Meeting and being eligible, offer themselves for re-appointment.
The Board of Directors in their meeting held on February 6, 2012 have
re-appointed Mr. Shyam S. Bhartia as Chairman and Managing Director,
and Mr. Hari S. Bhartia as Co-Chairman and Managing Director, for a
further period of 5 years effective April 1, 2012. These
re-appointments are subject to shareholders'' approval.
Directors'' Responsibility Statement
In compliance of Section 217 (2AA) of the Companies Act, 1956, the
Directors of your Company, based on the representation received from
the management, confirm:
- that in the preparation of annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
- that the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as on March 31, 2012 and of the profit or
loss of the Company for the year ended March 31, 2012;
- that the Directors had 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
- that the Directors had prepared the annual accounts on a going
Conservation Of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
Information relating to Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo, required to be made pursuant
to Section 217(1)(e) of the Companies Act, 1956, read with Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988, is given in Annexure B and forms part of this Report.
The particulars of employees, as required under Section 217(2A) of the
Companies Act 1956, read with the Companies (Particulars of Employees)
Rules, 1975, are given in Annexure C and form part of this Report.
As a responsible corporate citizen, your Company is committed to
maintain the highest standards of Corporate Governance and believes in
adhering to the best corporate practices prevalent globally.
A detailed Report on Corporate Governance (Annexure D) and a
certificate from the Auditors of the Company (Annexure
E) confirming compliance of the conditions of Corporate Governance, as
stipulated in Clause 49 of the Listing Agreement with the Stock
Exchanges, have been given separately and form part of this Report.
A Certificate from the Chairman & Managing Director (Annexure
F) confirming that all the Board Members and Senior Management
Personnel have affirmed compliance with the Code of Conduct for the
year ended March 31, 2012 is attached to the Corporate Governance
Report and forms part of this Report.
A Certificate from CEO/CFO (Annexure G) inter alia certifying the
accuracy of financial statements and the adequacy of the internal
controls for financial reporting purposes, as stipulated in Clause
49(V) of the Listing Agreement with the Stock Exchanges, is also
attached and forms part of this report.
Secretarial Audit Report
As a measure of good corporate governance practice, the Company had
appointed M/s. Sanjay Grover & Associates, Company Secretaries, to
conduct Secretarial Audit of compliances and records of the Company for
the financial year ended March 31, 2012. They have submitted their
Report confirming the compliance of the applicable corporate laws. A
copy of the Report is attached as Annexure H.
Management Discussion & Analysis Report
The Management Discussion & Analysis Report on the operations of the
Company, as required under the Listing Agreement with the Stock
Exchanges has been given separately and forms part of this Report.
Risk-taking is an inherent trait of any enterprise. However, if risks
are not properly managed and controlled, they can affect the
Company''s ability to attain its objectives. Risk management and
internal control systems play a key role in directing and guiding the
Company''s various activities by continually preventing and managing
risks. The senior management team sets the overall tone and risk
culture of the organization through defined and communicated corporate
values, clearly assigned risk responsibilities, appropriately delegated
authority, and a set of processes and guidelines. The Company has laid
down procedures to inform Board members about the risk assessment and
risk minimization procedures. The Company promotes strong ethical
values and high levels of integrity in all our activities, which in
itself is a significant risk mitigator.
With the growth strategy in place, risk management holds a key to the
success of the Company''s journey of continued competitive
sustainability in attaining its desired business objectives.
A detailed note on Risk Management is given as part of Management
Discussion & Analysis.
Your Company follows several externally developed initiatives in the
economic, environmental and social areas. Facilities of the Company at
Gajraula, Nira, Savli, Nanjangud and Ambernath are ISO 9001:2008
certified for Quality Management System. These manufacturing facilities
are also ISO 14001:2004 certified for Environmental Management System.
For Occupational Health and Safety at work place, these manufacturing
facilities are also certified to OHSAS 18001:2007. The locations of
Gajraula, Nira and Savli are certified for Integrated Management System
(IMS). Facilities at Savli are certified for FAMI- QS Version - 5
Quality in Feed Safety Management System. Gajraula Quality Control
Laboratory has also been certified for chemical testing by NABL
(National Accreditation Board for Testing and Calibration Laboratories)
in accordance with the ISO / IEC 17025:2005. In addition to this,
Gajraula Carbon Dioxide manufacturing facility has been certified for
FSSC 22000:2012-Food Safety System Certification for production of food
grade Carbon Dioxide. Ethyl Acetate & Acetic Anyhydride manufacturing
facility has been approved for KOSHER certification.
Dosage Forms facility at Roorkee follows Good Manufacturing Practices
(GMP) as per World Health Organisation (WHO) specifications in
manufacturing and testing of pharmaceutical products and hence, has
been granted WHO GMP certificate by the Drug Licensing and Controlling
Authority, Uttarakhand. The facility is also approved by UK-MHRA (UK-
Medicines and Healthcare Products Regulatory Agency) to export drugs to
European Market. The other approvals for the facility are Jordan FDA,
US FDA, Anvisa (Brazil), Japan PMDA and Kenyan Health Authorities.
Nanjangud plant has got US FDA (United States Food & Drug
Administration) approval for exporting certain products to the US
market. AFSSAPS (Agence Francaise de Securite Sanitaire des Produits de
Sante -The French Health Products Safety Agency), GMP approval for
certain products, PMDA approval (Pharmaceuticals and Medical Devices
Agency, Japan) for exporting Risperidone HCl to the Japanese market,
KFDA (Korea Food and Drug Administration) for exporting Valsartan and
Losartan to Korean market, COFEPRIS approval for exporting Pinaverium
Bromide to Mexican market, ANVISA, Brazil approval for exporting
Carbamazepine to Brazil market and TGA, Australia approval for
exporting certain products to Australia.
Plants producing Olanzapine and Losartan were audited and certified by
the United States Pharmacopeia for the use of USP logo.
Human Resource Management
We believe in an open, fair and transparent culture and stand by our
promise of Caring, Sharing, Growing and make efforts to make Jubilant
one of the best places to work for. In this direction, we have been
conducting the Gallup employee engagement survey to gauge the
organization''s health. This allows us to track the proportion of
engaged to actively disengaged employees so that mid-course corrections
or interventions can be implemented.
We strive towards technology driven HR systems and processes and have
implemented world renowned PeopleSoft based human resource management
system ''Synergy HRIS''. Its key features include employee personal
and job database, self service features like reimbursements, pay slips,
leaves, income tax declarations & computations, loans and exit process
We have signed a policy on CII Code of Conduct on Affirmative Action
that reconfirms our commitment that equal opportunity in employment for
all sections of society is a component of our growth and
As on March 31, 2012, 658 of our employees at our manufacturing plants
at Samlaya, Nira, Gajraula and Nanjangud, were members of unions or had
collective bargaining capability. We enjoy cordial relations with our
employees and there have been no instances of major strikes, lockouts
or other disruptive labour disputes.
A detailed note on Human Resource Management is given in the
Management Discussion & Analysis.
Your Company values its investors immensely. With a view to keeping its
investors well informed of its activities, your Company has taken
- E-mailing to the shareholders, quarterly results, press releases
and other similar communications soon after they are sent to the stock
- User friendly Investor Section on the website of the Company
- A dedicated e-mail ID viz. email@example.com for sending
communications to the Company Secretary / Compliance Officer. Members
may lodge their complaints or suggestions on this e-mail ID as well.
- Mailing feedback forms to investors on annual basis so as to obtain
valuable feedback and suggestions for improvement. The Company has
also placed an online Investor Feedback Form on its website
www.jubl.com under the Investor Section to facilitate electronic
submission of the Form.
Awards and Accolades
During the year, various awards and accolades were received. These
Received by the Company
- ''Golden Peacock National Quality Award - 2011'' in
Pharmaceutical Sector under Large Enterprises category, presented
during the 22nd World Congress on Total Quality, organized in
association with ET Now to Gajraula Plant, India;
- ''Certificate of Appreciation - Safety Awards 2010'' - from
National Safety Council of India, for Gajraula Plant, India;
- 2nd Prize in ''National Energy Conservation Awards - 2011'', in
the chemicals sector, for Gajraula Plant, India;
- ''The Economic Times - Frost & Sullivan India Manufacturing
Excellence Gold Award - Process Sector, Medium Business'' for the
Pyridine & Picoline Plant at Gajraula, India;
- ''Certificate of Appreciation - Safety Awards 2010'' from
National Safety Council of India for Gajraula Plant, India;
- ''Indian Chemical Council Award for Social Responsibility'' for
the year 2010;
- ''Information Week EDGE Award 2011'' (Enterprise Driving Growth &
Excellence - through IT) from UBM (United Business Media Group);
- ''DHL - CNBC TV 18 International Trade Awards'' 2010-11, powered
- ''Level 4 rating by The Karmayog Corporate Social Responsibility
(CSR) Study on CSR Ratings of India''s Largest 500 companies:
- ''International Quality & Productivity Centre (IQPC) Award
(2011)'' for the Best Innovative Continuous Improvement Project -
Process Re-engineering implemented in North American Subsidiaries.
Received by Executives
- Jubilant''s Group CFO-Mr. R. Sankaraiah, chosen as the ''Best CFO
in the Pharma and Healthcare Space'' in 2011 in All Asia Executive
Team Survey by Institutional Investor;
- Jubilant''s CIO, India - Mr. Umesh Mehta, awarded CIO 100 by IDG
India''s CIO magazine for highest level of operational and strategic
excellence in Information Technology.
Received by Subsidiary
- ''Frost & Sullivan Award- Indian Contract Research Organization''
of the Year - 2011 to Jubilant Biosys Limited.
Your Company being committed to policy of sustainable development, has
taken several green initiatives in its operations which include:
- Conducting Paperless Board Meetings;
- Publishing and circulating Corporate Sustainability Report on CD;
- E-mailing annual reports to shareholders who have opted for the
Corporate Sustainability Report
Corporate Social Responsibility at Jubilant is the commitment of
business towards Inclusive Growth. Your Company remains focused on its
policy of sustainable development by ensuring equal opportunities for
all, Climate Change Mitigation, Environment, Health and Safety and
Green Supply Management. Corporate Sustainability Report on the
various social initiatives undertaken by the Company is duly audited by
Ernst & Young, and conforms to the Global Reporting Initiative G3.1
Reporting Guidelines launched on March 23, 2011 by Global Reporting
Initiative. As a part of our Sustainability Policy with the aim of
mitigating impact on environment, like last year, this year too we are
sending Corporate Sustainability Report in CD alongwith the Annual
Report to our shareholders. The same is also available on your
Company''s website www.jubl.com.
Corporate Social Responsibility initiatives of your Company are
conceptualized and implemented through Jubilant Bhartia Foundation
(JBF), the social wing of Jubilant Bhartia Group established in 2007,
as a not for profit organisation. JBF initiatives focus on primary
education, basic healthcare and skill development for employability and
self-sustenance. A summary of the activities of JBF is provided on its
Your Directors acknowledge with gratitude the co-operation and
assistance received from the Central and State Government Authorities.
Your Directors thank the Shareholders, Private Equity Investors,
Financial Institutions, Banks/other lenders, Customers, Vendors and
other business associates for their confidence in the Company and its
management and look forward to their continued support. The Board
wishes to place on record its appreciation for the dedication and
commitment of your Company''s employees at all levels, which has
continued to be our major strength.
For and on behalf of the Board
Noida Shyam S. Bhartia
May 7, 2012 Chairman & Managing Director