The Directors are pleased to present the 14th Annual Report of the
Company together with the Audited Accounts for the financial year ended
March 31, 2012.
(Amount Rupees in Crores)
Particulars 2011-12 2010-11
Total Income 49.80 45.91
Expenditure (before Finance Cost &
Depreciation) 43.14 41.30
Profit before Finance Cost & Depreciation 6.66 4.60
Finance Cost 1.29 0.56
Profit before Depreciation and Tax 5.38 4.05
Depreciation 0.92 0.81
Profit/Loss before tax 4.45 3.24
Provision for Tax
- Current Tax 0.96 0.65
- Deferred Tax 0.29 0.30
Profit after Tax 3.20 2.28
Income tax Prior period (0.36) 0.15
Profit after tax and prior period 2.84 2.43
Add: Balance brought forward from the Previous
Year 17.88 16.26
Provision for Proposed Dividend 0.49 0.49
Provision for Dividend Tax 0.08 0.08
Transfer to General Reserve 0.32 0.23
Balance carried to Balance Sheet 19.83 17.88
Review of the Business
During the year, your Company has achieved a total income of Rs.49.80
Crores as against Rs. 45.91 Crores in the previous year and earned a
net profit of Rs. 2.84 Crores (Previous Year Rs.2.43 Crores) after
providing Income Tax, Deferred Tax and prior period expenses of Rs.1.61
Crores (Previous Year Rs.0.81 Crores). Your Directors are confident of
achieving better results in the years to come. The Board of Directors
are of the opinion that the present and future market scenario of the
Pharma Sector is extremely good as discussed in detail in Management
Discussion and Analysis and accordingly proposes to expand its
Your Directors have recommended a dividend of Rs.0.50 per equity share
for the year ended 31st March, 2012 being 5% of the Paid-up Equity
Capital of the Company. The dividend, if approved at the ensuing 14th
Annual General Meeting will be paid to those members whose names appear
on the Company''s Register of Members on September 29, 2012. The total
amount of outgo on account of this will be Rs.0.49 Crores towards
dividend and Rs.0.08 Crores towards dividend tax. The dividend would be
tax free in the hands of the shareholders.
The equity shares are listed on BSE Limited. However, the scrip was
temporarily suspended from trading due to non submission of compliance
as per listing agreement (which are categorised as penal reasons by the
BSE Limited). Your Directors are making efforts to revoke the
suspension and it is in process.
Transfer to Reserves:
Your Company proposes to transfer Rs.0.32 Crores to the General Reserve
out of the amount available for appropriations.
The Company has only one class of shares viz., Equity share of face
value of Rs.10/- each. The total issued and subscribed capital of the
Company is Rs.10.25 Crores. The paid up capital of the Company is Rs.
Your Company is committed to maintain highest standards of Corporate
Governance. As required under Clause 49 of the Listing Agreement with
the Stock Exchange, a report on Corporate Governance as well as
Auditors Certificate on the Compliance of Corporate Governance are
annexed to this Report.
Management Discussion and Analysis:
A detailed Report on Management Discussion and Analysis is provided as
a separate section in the Annual Report.
Mr. Boosa Eshwar, has been appointed as an Additional Director of the
Company with effect from May 03, 2012. Approval of the Members for his
appointment is being sought and forms part of the Notice of this Annual
General Meeting of the Company.
Mr. G. Rama Raju and Mr. Harichandra Kantimahanti will retire at the
ensuing Annual General Meeting and being eligible, offers themselves
for re-appointment. Their re-appointment is being proposed and suitable
resolutions forms part of the Notice of the ensuing Annual General
The Present Statutory Auditors of the Company M/s. P.S.N. Ravishanker &
Associates, Chartered Accountants, Hyderabad retire at the ensuing
Annual General Meeting and have confirmed their eligibility and
willingness to accept office of Auditors and if reappointed, their
reappointment would be within the limits prescribed under Section
224(1B) of the Companies Act, 1956. The Board of Directors recommend
M/s P.S.N. Ravishanker & Associates, Chartered Accountants, Hyderabad
for reappointment as Statutory Auditors of the Company for the
financial year 2012-13.
Pursuant to Section 233B of the Companies Act, 1956, the Central
Government has prescribed Cost Audit of the Company''s bulk drugs
Based on the recommendations of the Audit Committee, and subject to the
approval of the Central Government, the Board of Directors had
appointed Mr. Sativada Venkat Rao as cost auditor of the Company for
the Financial Year 2012-13. The cost audit report would be filed with
the Central Government on or before the due date.
Research & Development:
The Company has incurred an expenditure of Rs.0.63 Crores on research
and development during the year.
The Company has not invited/accepted deposits from the public within
the meaning of Section 58A of the Companies Act, 1956.
Directors Responsibility Statement:
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956, the Board of Directors of the Company hereby state and
i. that in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
ii. 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 at the end of the financial year 2011-12 and
of the profit of the company for that period.
iii. that the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
iv. that the directors had prepared the annual accounts on a Going
Particulars of Employees:
The Company do not have any employees drawing remuneration within the
purview of Section 217 (2A) of the Companies Act, 1956 to be read with
the Companies (Particulars of Employees) Rules, 1975 as amended.
Particulars under section 217 (1) (e) of the Companies Act, 1956
Information regarding Energy Conservation, Technology Absorption and
Foreign Exchange Earnings and Outgo required to be disclosed 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 is enclosed as an Annexure.
Industrial relation has been cordial and your directors appreciate the
sincere and efficient services rendered by the employees at all levels
towards the successful working of the Company.
Your Directors wish to take this opportunity to thank the employees for
their dedicated service and contribution to the Company. We also thank
Bank of India, Government Agencies, Business Associates, Shareholders
and Investors at large for their continued support towards conduct of
efficient operations of the Company.
For and on behalf of the Board
G. Rama Raju
G. Ganesh Kumar
Chairman & Managing Director
Date : 30/05/2012