Dear Members,
The Directors have pleasure in presenting the 19th Annual Report of
your Company along with the audited statement of accounts for the
financial year ended March 31, 2011. The Report also includes the
consolidated financial statements and the Management''s Discussion and
Analysis Report in accordance with the guidelines on Corporate
Governance. The highlights of the financial results for 2010-2011 are
given below:
(Rs crore)
Particulars Year ended
31.03.2011 Year ended
31.03.2010
Sales & operating income 1663.34 1249.83
Other income 7.60 1016.58
Total expenditure 1252.92 1422.55
Gross profit 418.02 843.87
Interest & finance charges 115.76 241.23
Gross profit after interest but before
depreciation and taxation 302.26 602.64
Depreciation 128.45 151.10
Profit / (Loss) from ordinary activities
before exceptional items 173.81 451.53
Exceptional item - 8.52
Profit / (Loss) before tax 173.81 460.05
Provision for taxation
- Current & deferred tax 14.32 128.71
Profit / (Loss) after tax 159.48 331.34
Add: Surplus brought forward 58.59 28.32
Surplus available 218.08 359.66
Appropriations:
- Transfer to general reserve 150.00 200.00
- Excess provision of dividend for earlier
year written back (21.74) (2.47)
- Dividend 25.57 88.79
- Tax on distributed profits 4.15 14.75
Balance carried to balance sheet 60.09 58.59
Performance
During 2010-11, your Company achieved a turnover and operating income
of Rs 1663.34 crore compared to Rs 1249.83 crore in 2009-10. The gross
earnings before interest, depreciation and taxes stood at Rs 418.02
crore for the current financial year. The gross earnings for the
previous year included the profit on sale of undertaking and thus not
comparable. After providing for interest expense of Rs 115.76 crore (Rs
241.23 crore previous fiscal) and depreciation of Rs 128.45 crore (Rs
151.10 crore previous fiscal), the profit before tax of the Company was
Rs 173.81 crore.The net profit after tax stood at Rs 159.48 crore,
compared to the net profit after tax of Rs 331.34 crore in the previous
fiscal. However, figures for the previous year ended March 31, 2010 are
not comparable as they include the sale consideration received by the
Company on account of sale and transfer of its Injectable formulation
business to Hospira in March 2010.
Pharmaceuticals business
The key highlight of our performance was the change in our business
strategy where we moved away from a supply push approach to a demand
pull business model. This is reflected in growing number of long-term
contracts with large global pharmaceutical companies. These long term
business agreements provide clear revenue visibility and allowed for
improved business planning and management which strengthened business
profitability and liquidity.
Our API-supply arrangement performed significantly well, registering
higher than expected business volumes. Our newly acquired front-end
marketing Company, Karalex Pharma, LLC, in the US delivered heartening
results.
We expanded our contractual business with Hospira to supply API for
their Add Vantage vials (patented technology) which will generate
superior returns for your Company over the medium term. We settled five
Para IV products, out of which four are FTF applications, which will
allow us to market products in the US. These represent attractive
opportunities over the coming years.
Dividend
Your Directors recommend a 30% dividend (Rs 3/- per equity share of Rs
10/- each) for the year ended 31st March 2011, subject to the approval
of shareholders at the ensuing Annual General Meeting. Under the
Income Tax Act, 1961, the receipt of dividend is tax-free in the hands
of the shareholders.
Regulatory filings and approvals
In the generic formulations domain, Orchid''s cumulative ANDA filings
for the US market stood at 42. This includes 8 Para IV FTF
(First–To–File) filings. The break-up of the total ANDA filings is 13
in Cephalosporins segment and 29 in NPNC space. Few more ANDAs which
are in the later stages of development are expected to be filed in
ensuing quarters.
In the EU region the cumulative count of Marketing Authorisations (MA)
filings stood at 17. The break-up of the total MA filings is 9 in the
Cephalosporin segment and 8 in the NPNC segment. A few more dossiers
have been lined up for filing during 2011, based on the De-centralised
Procedure (DCP) slots allotted by the respective Reference Member
States (RMS) countries in the EU. This is likely to increase the
cumulative filing count in the coming quarters.
In the API domain, Orchid increased its cumulative filings of its US
DMF count to 81. The break-up of the total filings is 27 in the
Cephalosporin segment, 41 in NPNC segment, 2 in the Betalactam segment
and 11 in the Carbapenems segment. In the European market space the
cumulative filings of COS (Certificate of Suitability) count stood at
21 which includes 14 in Cephalosporin segment, 6 in NPNC segment and 1
in the Betalactam segment.
Awards
During the year, your Company was conferred with the following awards.
Greentech Gold award 2011 in Pharmaceutical sector for outstanding
achievement in safety management given by the Ministry of Health &
Family Welfare, Government of India and Greentech Foundation for
Orchid''s Alathur facility.
Good Green Governance (G3) award by the Ministry of Water Resources &
Minority Affairs, Government of India.
Outstanding Achievement in Environment Management in the Chemical
Sector was conferred by Greentech Foundation with a Silver Award 2010.
- Siemens Ecovatives - IBN Live Award 2010 conferred in recognition of
the Company''s commitment to the environment.
- Bureau of Energy Efficiency (BEE) Certificate of Merit on Energy
Efficiency was received by the Company''s Alathur API facility from the
Ministry of Power, Government of India, New Delhi.
- Excellent Energy Efficient Unit was conferred on the Company at the
9th Energy Efficiency Summit 2010 by the Confederation of Indian
Industries.
Southern Region excellence award from Confederation of Indian
Industries for meritorious achievement in Environment, Health & Safety
(EHS) for the year 2010.
Dr R J Rathi award for Environmental Pollution Control for the year
2010 in Industries in Maharashtra for Orchid''s Aurangabad facility
given by Mahratta Chamber of Commerce, Industries & Agriculture and Dr
Ramvilas Rathi Charity Trust, Pune.
Intellectual property
During the year, Orchid continued to accelerate the IPR work on a
number of products. The total number of patent applications filed by
Orchid in various national and international patent offices so far is
820 (including Process, Formulation, NCE, NDDS, Biotech and Generics).
As of March 31, 2011, 621 patent applications have been published while
153 patents have been granted.
Foreign Currency Convertible Bonds
Your Company had issued FCCBs during November 2005, which were listed
on the Luxembourg and London Stock Exchanges and during February 2007,
which are listed on the Singapore Stock Exchange. The FCCBs due in 2010
are termed 2010 Bonds and those due in 2012 are termed 2012 Bonds.
During the year under review, your Company redeemed the outstanding
FCCBs (2010 Bonds), including yield-to-maturity, aggregating to US$
25.69 million (Rs 114.10 crore), on the due date i.e. November 03,
2010.
The status of outstanding FCCBs (2012 Bonds) is as follows:
Description 2012 Bonds
FCCB Issue value US$ 175 million
Conversion into equity so far Nil
Redemption value (%) of the book value 142.77%
FCCBs bought back 57.578 million
FCCBs outstanding 117.422 million
Your company intends to raise long-term resources aggregating to an
amount not exceeding Rs 1,000 crore through a combination of
appropriate instruments to take care of the outstanding FCCBs coming up
for redemption in February 2012. The fund raising proposal was
approved by the board at its meeting held on May 18, 2011 and a
resolution seeking the members approval by way of postal ballot is
being sent.
Employees stock option plan
The details of options granted to employees under the ORCHID - ESOP
1999, ORCHID - ESOP 2005 and ORCHID - ESOP 2010 schemes and the status
of such options as on March 31, 2011 are given in Annexure IV to this
Report.
Your Company formulated a stock option plan viz., Orchid - ESOP 2010
Scheme for grant of 10,00,000 options to the employees of the Company
including whole-time Director(s) of the Company but excluding the
Promoter Directors. The said scheme was approved by the shareholders at
the Annual General Meeting held on July 21, 2010. Your Company granted
9,01,000 options during the year and as at March 31, 2011, the
outstanding options under the said scheme is 8,98,000.
Your Company has also formulated the following schemes which have been
approved by the Board of Directors at their meeting held on May 18,
2011 and the resolutions are placed before the members for approval in
the ensuing Annual General Meeting.
Orchid-ESOP Senior Management 2011 Scheme - grant of 10,00,000 options
to the employees in the grade of Senior Manager and above, out of which
7,50,000 options will be granted to the employees of Orchid and
2,50,000 options to the employees of various Subsidiary Companies of
Orchid, either in India or abroad.
- Orchid-ESOP Directors 2011 Scheme - grant of 5,00,000 options to the
directors of the Company including whole time directors but excluding
Promoter Director.
Listing of equity shares
Your Company''s equity shares are presently listed on the National Stock
Exchange of India Limited (NSE), Bombay Stock Exchange Limited (BSE)
and the Madras Stock Exchange Limited (MSE). The GDRs issued during
2005-06 are listed on the Luxembourg Stock Exchange and the London
Stock Exchange. The convertible bonds issued by the Company during
2006-07 are listed on the Singapore Exchange Limited.
Alliances / Acquisitions
Your Company acquired Karalex Pharma, LLC, a US based generic marketing
and sales services Company headquartered in New Jersey through your
Company''s step down subsidiary Orchid Pharma Inc. Karalex Pharma has
been a leading provider of generic pharmaceuticals focused exclusively
on the US healthcare market. Through this acquisition, your Company has
created its presence in the front end US market and will be able to
reach its generic products to the US customers directly.
Overseas joint ventures
NCPC Orchid Pharmaceuticals Company Limited, China
Your Company''s 50:50 joint venture in China, NCPC Orchid
Pharmaceuticals established for manufacture of sterile Cephalosporin
APIs continued to perform well. The joint venture is profitable with a
significant sales turnover of US$ 55.42 million during the year under
review.
Subsidiaries
Orchid Research Laboratories Limited, India (ORLL)
Your Company''s Indian subsidiary, ORLL is engaged in proprietary, novel
drug discovery research in the following therapeutic areas namely,
anti-infectives, anti-inflammatory, anti-cancer, metabolic disorders
and Central Nervous System (CNS). New drug discovery and development
activities are conducted in state-of-the art laboratories spanning
expertise in analytical research, bio-informatics, medicinal chemistry,
molecular biology, pharmacology, drug metabolism and Pharmacokinetics,
intellectual property management and quality assurance.
The subsidiary company has a robust pipeline of drug development
projects to address unmet medical needs. During the year under review,
regulatory documents were filed for four clinical candidates in India
and EU for initiation of clinical trials. ORLL has also designed and
synthesised a good number of New Chemical Entities (NCEs) in various
therapeutic areas and significant molecules are under various
biological profiling to strengthen the existing pipeline.
ORLL has built a successful partnership with Merck and Co., USA for
collaborative drug discovery in the anti-infectives area. Certain NCEs
were synthesised and tested in various in vitro and in vivo biological
assays and several promising compounds have been identified. A
significant number of patents have been filed in various therapeutic
areas to provide for protection of intellectual property generated by
ORLL.
Bexel Pharmaceuticals Inc., USA (Bexel)
During the year, Bexel conducted advanced basic studies on the lead
molecule BLX-1002 internally and has filed documents seeking consent to
conduct expanded phase 2 clinical trials with the regulatory
authorities. Though, the molecule has exhibited potential for multiple
indications, the envisaged clinical trial will test efficacy for a
select indication. Further, basic mechanistic studies in animal models
conducted at a leading research institute have presented insights to
understand the mechanism of this molecule. Additional advanced studies
in animals and later in select patients is being planned to generate
scientific data backed mechanistic rationale for the molecule. The
referred studies are being planned in the subsequent quarters, while
approval to conduct clinical trial is awaited.
Orchid Pharmaceuticals, Inc., USA
Orchid Pharmaceuticals, Inc., is a wholly owned Delaware based
subsidiary of your Company and also the holding company in the United
States, under which all the operational business subsidiaries have been
structured. The Company currently has two operating subsidiaries,
Orgenus Pharma, Inc., and Orchid Pharma, Inc., (formed during the year)
both located in Princeton, New Jersey, in the US.
Orgenus Pharma, Inc., is the entity that provides all business
development and operational services for the parent Company including
the initiation of marketing alliances with partner companies, filing of
your Company''s Drug Master Files (DMFs) and Abbreviated New Drug
Applications (ANDAs) as the
Importer of record for your Company with the FDA. It continues to
represent your Company for all matters relating to the review and
approval of such filings by the FDA, and handling of logistics and
product importation into the US as the Importer of Record for the US
Customs.
During the year under review, the Company formed a new subsidiary
namely Orchid Pharma, Inc., in the USA. Orchid Pharma, Inc., is the
commercial entity that started directly marketing and selling your
Company''s products in the US generics market place through the
acquisition of Karalex Pharma, LLC during the fiscal year 2010-11.
Orchid Pharma, Inc., has established a strong corporate image for your
Company in the US and will be launching all future (unpartnered)
generics products under the Orchid label. Equipped with a strong and
experienced US commercial team, this Subsidiary would be a key growth
driver for your Company, starting this year.
Diakron Pharmaceuticals Inc., USA
During the year, your Company increased its stake in Diakron
Pharmaceuticals Inc. and holds 64.55% in the Company. Orchid''s stake
in Diakron has been a part of the original transaction which includes
direct investment and Master Services Agreement (MSA). Your Company has
completed most of its MSA obligations to develop and supply clinical
quantities of API and extended release formulation. At present, phase 1
clinical studies in patients have commenced in Europe with the new
extended release formulation and the study is likely to be completed
during the year 2011. Subsequently, based on the phase 1 study results,
additional formulation studies will be needed and phase 2 clinical
studies in human subjects will be planned later.
Orchid Europe Limited, United Kingdom
Your Company''s subsidiary in Europe namely Orchid Europe Limited (OEL)
provides liaising support to the parent Company and its customers in
Regulatory, Pharmacovigilance, Testing & Release, Retention of samples,
Service Providers and Business Development in Europe. The Company has
chalked out a business plan for capturing a significant market share
for the products. With a rich product pipeline and the expanding
product portfolio, the Company''s business development is already in
discussions with major generic houses in EU for expanding the
co-operation and are simultaneously discussing with regional majors to
increase market share.
Orchid Pharmaceuticals (South Africa) Pty Ltd., South Africa
Your Company''s wholly owned subsidiary, Orchid Pharmaceuticals (South
Africa) Pty Ltd., was incorporated mainly to register and market your
Company''s products in South Africa. The Company is in the process of
submitting dossiers for obtaining marketing approval from the
regulatory authority, MCC for various oral products and the
applications are at various stages of the registration process.
Orchid Pharma Japan K K
The subsidiary Company in Japan has continued to make noteworthy
progress during the year. At the end of the fiscal year 2010-11, there
are 9 DMFs filed with Pharmaceutical and Medical Devices Agency (PMDA)
of Japan and additional DMFs will be filed in the current financial
year to meet the market needs.
A major achievement was to commence the supplies to one of the top 5
Japanese innovator Companies for their global business partners.
Business discussions are on with various Japanese Companies for supply
of new products and the Company is expected to make good progresses on
both business and Regulatory fronts during the current year.
Central Government Approval
Your Company has been making applications for an approval under Section
212(8) of the Companies Act, 1956 from the Ministry of Corporate
Affairs, seeking exemption from attaching the Annual Report of
subsidiary Companies with the Annual Report of Orchid. The Ministry of
Corporate Affairs, Government of India vide its circular dated February
8, 2011 has provided general exemption to companies from attaching the
balance sheets of their subsidiary Companies as required under Section
212(8) of the Companies Act 1956.
The exemption is available provided the Companies publish the audited
consolidated financial statements in the Annual Report. The
consolidated financial statements duly audited are presented along with
the accounts of your Company. The statement as required under Section
212 is given as part of the consolidated accounts in this report. The
annual accounts of subsidiary Companies are kept at the Company''s
registered office and also at the respective registered office of the
subsidiaries for inspection and shall be made available to the members
seeking such information.
Fixed deposit
The Company has not accepted any fixed deposits and as such, no amount
of principal or interest was outstanding as of the balance sheet date.
Directors'' Responsibility Statement
In accordance with the provisions of Section 217 (2AA) of the Companies
Act, 1956, your Directors confirm:
- That in the preparation of the annual accounts for 2010-11 the
applicable accounting standards were followed along with proper
explanation relating to material departures, if any.
- That the Directors selected such accounting policies and applied them
consistently and made judgments and estimates that were reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year (31st March 2011) and of
the profit or loss of the Company for that period (2010-11).
That the Directors took 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.
That the Directors prepared the annual accounts for 2010- 11 on a going
concern basis.
Corporate Social Responsibility
Your Company''s constant focus has been on the community development as
part of its corporate social responsibility. Various activities are
continuously being carried out and focused on Community Health
Development, Children Education, Women Empowerment, Youth Development,
Community Asset Creation and a Greener Environment.
Specialised children education programs through activities like summer
camp, special english coaching, leadership and motivation programs
during the year have reached a good number of 950 children. These
programs aim to achieve the development rights of the children as
stated by United Nations.
Various health programs benefitted 9713 people which included personal
surgical support and community based education programmes on health.
The women development programs reached around 1900 women directly
through 161 women self- help groups organised at the hamlet level. The
youth development programs helped around 2700 young boys and girls to
enhance their skills to be employed elsewhere and also to take up
self-employment program. An integrated development program aimed at
better living for tribal people benefitted about 200 tribes and their
families.
Environment
Environment management has been a prime focus area of your Company.
Your Company has employed a state of the art technology, zero liquid
trade effluent treatment plant and world class treatment facilities for
its liquid and gaseous pollutants generated from the production
processes. The zero discharge of liquid trade effluent treatment plant
comprising Membrane Bio Reactor, Nano Filtration, Reverse Osmosis,
Solvent Stripping Column, Thermal Evaporation & Crystallisation plant
treat the entire trade effluent and recycles it back into the utility
process.
Your Company was the first bulk drug manufacturing Company in the
country to get ISO - 14001 certification in the year 1999 by Dutch
Council and has retained the certification continuously for its
environment management system.
The Environment programs have also been carried out in the form of
planting saplings, dissemination of bio technologies to the communities
and installation of bio gas plants for a few houses as pilot projects.
Your Company also has plans laid out for sustainable development of
communities in the form of low cost sanitation, recycling of wastes
into articles etc.
Safety Excellence Journey
The year 2010 - 2011 saw an all-round improvement in various elements
of Safety in the Company. By focusing on repeat incidents and carrying
out necessary corrective and preventive actions, your Company was able
to achieve considerable reduction in incidents. The Central Safety
Committee continued to monitor safety, health and environment
performance and provide necessary direction for improvement through
regular monthly reviews.
In recognition of the various safety initiatives, your Company was
awarded OHSAS 18001 certification in February 2011 for its API facility
at Alathur, near Chennai.
The manufacturing sites at Alathur, Aurangabad and the Research &
Development unit at Shozhanganallur received International Safety Award
- Merit from British Safety Council, UK for the year 2010.
Conservation of energy
Your Company has always been striving hard in the field of energy
conservation. Several measures to conserve energy and to reduce
associated costs were taken during the fiscal under review as well. The
particulars in respect to conservation of energy as required under
Section 217 (1) (e) of the Companies Act, 1956, are given in Annexure I
to this report.
Technology absorption
The particulars in respect of R&D/Technology absorption as required
under Section 217 (1)(e) of the Companies Act, 1956, are given in
Annexure II to this report.
Foreign exchange earnings and outgo
The particulars in respect of Foreign Exchange Earnings and Outgo as
required under Section 217 (1)(e) of the Companies Act, 1956, are given
in Annexure III to this report.
Particulars of employees
Information as per Section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 forms part of this
Report. 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
members of the Company excluding the aforesaid information. Any member
interested in obtaining a copy of the particulars may write to the
Secretary at the registered office of the Company.
Corporate Governance
The spirit of good Corporate Governance remains integral to the
Company''s corporate philosophy. The Company follows the code of
Corporate Governance issued by the stock exchanges for listed
companies. For 2010-11 all information relating to Corporate Governance
is given in Annexure V to this Report. A compliance certificate from
the statutory auditors is appended to this report. General Shareholders
Information is given in Annexure VI.
Green Initiative
To augment the green initiative of the Ministry of Corporate Affairs
and to reduce carbon foot print, your Company proposes to send various
communication including the Annual Reports in electronic form, to the
members who have opted for the same. This would help in reducing the
number of physical copies to be printed, thereby contributing to a
greener environment. The full text of the current year''s (2010-11)
annual report will also be available in an easily navigable format on
our website, www.orchidpharma.com. As a member of the Company, you will
always be entitled to receive all such communication in physical form,
upon request.
Directors
Appointment of Chairman
Consequent to the resignation of Shri R Narayanan from the Board of
Orchid, the Board decided that Shri K Raghavendra Rao will be the
Chairman and Managing Director with effect from October 28, 2010. We
are pleased to inform that Shri K Raghavendra Rao was conferred the
prestigious ''Padma Shri'' award for the year 2011 by the Government of
India in the Trade and Industry category. The award was presented to
Shri K Raghavendra Rao by the Honourable President of India on April 1,
2011.
Appointment of Additional Directors
Shri R Sankaran was appointed as Additional Director on the Board on
January 19, 2011. Pursuant to the appointment, Shri Sankaran holds
office up to the date of the forthcoming Annual General Meeting. A
notice has been received from a member as per Section 257 of the
Companies Act, 1956 along with the prescribed fee. Shri R Sankaran has
also filed with the Company his consent to act as Director, if
appointed, as required under Section 264(1) of the Companies Act, 1956.
A resolution seeking his appointment as Director is being placed before
the members for approval.
Shri Bharat Dhirajlal Shah was appointed as Additional Director on the
Board on January 19, 2011. Pursuant to the appointment, Shri Bharat
Shah holds office up to the date of the forthcoming Annual General
Meeting. A notice has been received from a member as per Section 257 of
the Companies Act, 1956 along with the prescribed fee. Shri Bharat Shah
has also filed with the Company his consent to act as Director, if
appointed, as required under Section 264(1) of the Companies Act, 1956.
A resolution seeking his appointment as Director is being placed before
the members for approval.
Professor Bala V Balachandran was appointed as Additional Director on
the Board on May 18, 2011. Pursuant to the appointment, Shri Bala
Balachandran holds office up to the date of the forthcoming Annual
General Meeting. A notice has been received from a member as per
Section 257 of the Companies Act, 1956 along with the prescribed fee.
Shri Bala Balachandran has also filed with the Company his consent to
act as Director, if appointed, as required under Section 264(1) of the
Companies Act, 1956. A resolution seeking his appointment as Director
is being placed before the members for approval.
Resignation of Directors
Shri R Narayanan, who has been the Chairman and Director of Orchid
since inception, resigned from the Board with effect from October 28,
2010. The Board places on record its appreciation for the outstanding
contribution made by Shri R Narayanan during his long tenure as a
Director and Chairman on the Board of Orchid.
Shri Anil Thadani, who has been a Director of Orchid, resigned from the
Board with effect from September 28, 2010. Consequent to his
resignation, Shri Raj Rajkumar, Alternate Director to Shri Anil Thadani
also ceased to be director from the said date. The Board places on
record its appreciation for the contributions made by Shri Anil Thadani
and Shri Raj Rajkumar as Directors.
Retirement of Directors by rotation
In accordance with the provisions of the Companies Act, 1956, and the
Articles of Association of the Company, Dr M R Girinath and Dr I
Seetharam Naidu retire by rotation and are eligible for re-appointment.
However, Dr M R Girinath and Dr I Seetharam Naidu have opted not to get
re-elected at the ensuing AGM. A resolution pursuant to Section 256 of
the Companies Act, 1956 for not filling the vacancy, at present, caused
by Dr M R Girinath and Dr I Seetharam Naidu''s retirement has been
included in the Agenda of the Annual General Meeting (AGM).
Auditors
The existing Statutory Auditors, M/s SNB Associates, Chartered
Accountants retire at the forthcoming Annual General Meeting, and being
eligible, offer themselves for re-appointment.
Cost Audit
The Central Government has prescribed that an audit of the cost
accounts maintained by the Company in respect of bulk drugs and
formulations be conducted under Section 233B of the Companies Act,
1956. Consequently, your Company has appointed Shri V Kalyanaraman,
B.Sc, FICWA, as Cost Auditor for 2010-11 and 2011-12, with the consent
of the Central Government, for the audit of cost accounts maintained by
the Company in respect of both bulk drugs and formulations.
Acknowledgements
Your Directors are thankful to various public sector and private sector
banks and institutions for meeting the long term and working capital
needs of the Company''s expanding operations and also the holders of
FCCBs and GDRs for their support.
The Directors are grateful to the Central and State Governments and the
Central DCGI and State FDAs for their continued support to the
Company''s expansion plans. Your Board places on record its appreciation
of the support provided by the customers, suppliers and equipment
vendors to the Company. Your Directors are also thankful to the
vendors, distributors and agents for their continued support.
Your Directors are thankful to the esteemed shareholders for their
support and encouragement. The Directors acknowledge the commitment and
contribution of all employees to the growth of the Company.
For and on behalf of the Board
K Raghavendra Rao
Chairman & Managing Director
Place: Chennai
Date: May 18, 2011 |