Poly Medicure

The Directors are pleased to present the 13th Annual Report along with
 Audited Accounts for the Financial Year ended March 31st, 2008.
 
 Financial Highlights:
 
 The standalone financial results of the Company for the financial year
 ended 31st March 2008 are as follows:
 
                                                 (Rs. in Lac) 
 
 Particulars                               F.Yr.              F.Yr.
                                          2007-08           2006- 07
 
 Net Sales                                8838.17           8489.69
 
 Add: Other Income                         607.40             28.33
 
 Total Revenue                            9445.57           8518.02
 
 Profit    before    Interest,            1771.04           1650.73
 
 Depreciation and Taxes
 
 Profit before Tax                         832.26           1030.12
 
 Profit after Tax                          791.52            827.06
 
 Profit   brought   forward                401.67            232.54
 from the pervious year
 
 Profit  available   for                  1193.19           1059.06
 appropriation
 
 Appropriations:
 
 -Transfer  to   General                   500.00            500.00
 
 Reserve                                   161.05            157.94
 
 -Proposed Dividend
 and Dividend Distribution
 
 Tax
 
 Surplus carried to the                    532.14            401.66
 Balance Sheet
 
 Operations:
 
 During the year under review, the total revenue of your Company has
 reached a level of Rs. 94.45 Crores as compared to Rs. 85.18 Crores in
 the previous financial year, an increase of 10.89%. The increase in the
 topline has not been as encouraging as we planned for which is due to
 the appreciation in the value of Indian rupee against the US dollar
 leading to reduced sales realisation despite appreciable growth in
 volume. The rupee appreciation assumes greater relevance since 77% of
 the sales are export sales which has affected the growth in profit of
 your company. The Profit before Interest, Depreciation and Taxes is Rs.
 17.71 crore as against Rs. 16.51 crore in the previous year.
 
 Expansion Programme:
 
 You will be happy to know that the expansion programmes of your Company
 are moving ahead with multidimensional approach covering factors like
 backward and forward integration of manufacturing facilities, organic
 expansion of production capacity, and the diversification of the
 product portfolio. This year saw another achievement in the
 commissioning of our Plant in Haridwar (Uttarakhand).
 
 Subsidiaries and JV
 
 The year under review has witnessed formation of the first subsidiary
 of your Company with effect from 04th June 2007 viz. US Safety Syringes
 Co., LLC. The Company based in USA has 2 FDA approvals and 8 patents in
 Safety Medical Devices which will give the company increased access to
 US markets.
 
 Your Companys project of setting up manufacturing facility in Laiyang,
 in Shandong province of China, with an planned investment of US$ 1.1
 million has entered into the production phase commencing commercial
 production in July 2008. The said project is proposed to become a 100%
 subsidiary of your company.
 
 Companys Joint-Venture in Egypt recognised as Ultra For Medical
 Products Company (Ultra Med), an Egyptian Joint Stock Company, is doing
 well and is in operation from about 4 years. For the year ended 31st
 December, 2007, UltraMed has achieved a Net Profit of 2.28 million
 Egyptian Pounds, a 38% growth as compared to previous year profits of
 1.65 million Egyptian Pounds. Ultra Med has also issued a bonus to your
 Company in the ratio 7:10. The Companys holding in the JV now stands
 at 19550 shares.  Finance Raising Mechanism:
 
 Your Company is one of the fast growing Companies in its segment
 amongst other companies of its size. We have already established our
 presence in India, Egypt, China and USA. We are determined to enter
 other international markets with new products having unique features.
 The company is moving with a ready road map for its future expansion.
 For all these past and future continuous initiatives of expansion,
 product diversification and better global presence, company certainly
 need more capital resources. We are exploiting both debt and equity
 options for the purpose.  In addition to the debt funding, your Company
 has issued 4,25,000 convertible warrants to the Promoters of the
 Company on preferential basis in March, 2007 in accordance with Chapter
 XIII of SEBI (Disclosure and Investor Protection) Guidelines, 2000 and
 as per shareholders special resolution approving the same passed on
 5th September, 2006.
 
 In the Year 2007-08 the promoters have exercised the conversion option
 on 1,06,250 convertible warrants issued to them on preferential basis
 and have subscribed for Equity Shares of the the Company of face value
 of Rs. 10/- each at the price of Rs.106/- per share. Therefore the paid
 up capital of the Company as on 31st March, 2008 stands increased to
 Rs. 5,50,62,500/-
 
 Further, the prometers have the option to covert the remaining 3,18,750
 convertible warrants issued on preferntial basis by 16th September,
 2008.
 
 Public Deposits:
 
 The Company has not accepted any deposit in the year under review.
 
 Enterprises Resource Planning (ERP):
 
 Enterprises Resource Planning is the mechanism for optimum utilisation
 of available resources, real time reporting, better internal control
 and decision making.  Considering the Companys future prospects,
 global dimension and operations, it was strongly felt to electronically
 integrate all the plants and departments of the Company in order to
 have better control over the available resources of the Company. Our
 ERP is in advanced stage of implementation and as a result the
 information flow has become smooth and management is now better
 equipped for decision making.
 
 Future Outlook:
 
 The expansion and backward integration plans undertaken by the Company
 during the year under review are obviously expected to yield positive
 results in the financial year 2008-09. With the increased production
 capacity, increase in domestic sales and export orders, the future
 outlook looks positive leading to expanded top line. The profitability
 however, will have to reckon with several factors such as exchange rate
 fluctuations, prices of crude oil which is directly responsible to
 prices of plastic raw materials, overall global economic developments
 within and outside the country, besides intensifying competition in
 both domestic & export markets.
 
 Dividend:
 
 Maintaining the trend of dividend distribution, your Directors are
 pleased to recommend a dividend of 25%
 
 (Rs.2.50 per Equity Share of Rs.10/- each) for the Financial Year ended
 31st March, 2008 which, if approved at the forthcoming Annual General
 Meeting, will be paid to all those Equity Shareholders whose name
 appear on the Register of Members as on 2nd September, 2008 and to
 those whose name as beneficial owners are furnished by National
 Securities Depository Services Limited and Central Depository Services
 (India) Limited as at the closing hours of 25 August, 2008.
 
 Directors Responsibility Statement:
 
 Pursuant to the provisions of Section 217(2AA) of the Companies Act,
 1956, your Directors to the best of their knowledge and belief confirm
 that:
 
 (i) In the preparation of the annual accounts, the applicable
 accounting standards have been followed;
 
 (ii) The Directors have selected such accounting policies and applied
 them consistently and made judgements 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 at 31st March 2008 and of the Profit of the Company
 for the year ended on that date;
 
 (iii) The Directors have 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;
 
 (iv) The Directors have prepared the annual accounts of the Company on
 a going concern basis.
 
 Directors:
 
 Shri J. K. Baid, Non Executive Director and Shri D. R.  Mehta, Chairman
 and Non-Executive Independent Director are liable to retire by rotation
 at the forthcoming Annual General Meeting and being eligible offer
 themselves for re-appointment.
 
 Brief resume of the above mentioned Directors are given in the
 Corporate Governance Report.
 
 Auditors Report:
 
 The observations of the auditors are self-explanatory and therefore do
 not call for any further comments.
 
 Auditors:
 
 M/s. Chaturvedi and Co., Chartered Accountants, the Statutory Auditors
 of the Company hold office until the conclusion of the ensuing Annual
 General Meeting. The Company has received a certificate from them as
 required by the proviso to Sub- Section (1) of Section 224 of the
 Companies Act, 1956, certifying that their reappointment, if made, will
 be within the limits as specified in Section 224(1-B).
 
 Corporate Governance:
 
 Management Discussion and Analysis Report as required by Clause 49 of
 the Listing Agreement with Stock Exchanges is given in Annexure-I
 forming part of this report. A certificate regarding compliance of
 conditions of Corporate Governance is annexed thereto. A separate
 section on Corporate Governance is given in the Annual Report.
 
 Research and Development, Conservation of Energy, Technology
 Absorption, Foreign Exchange Earnings and Outgo:
 
 The particulars as prescribed under Section 217(1)(e) of the Companies
 Act, 1956, read with Companies (Disclosure of Particulars in the Report
 of Board of Directors) Rules, 1988 are given Annexure-ll forming part
 of this Report.
 
 Particulars of Employees :
 
 The statement as required under Section 217(2A) of the Companies Act,
 1956, read with Companies (Particulars of Employees) Rules, 1975, as
 amended, the name and other particulars of the employees are set out in
 the Annexure III forming part of this Report.
 
 Acknowledgement:
 
 Your Directors would like to express their sincere thanks to the
 Financial Institutions, Banks, Government Authorities, Vendors,
 Shareholders and Members of the Medical Profession for the assistance,
 co- operation and valuable support to the Company in its efforts to
 provide high quality Medical Disposables within India and worldwide.
 Your Directors wish in particular to place on record their sincere
 appreciation for the valuable services of the Executives, Staff and
 Workers of the Company, who have made the operations of the company
 successful.
 
 
                              For and on behalf of the Board
 
 New Delhi                   D. R. Mehta       Himanshu Baid
 29th July, 2008             Chairman          Managing Director