| The Directors have pleasure in presenting the 10th Annual Report together with Audited Statement of Accounts of the Company for the year
ended 31st March, 1997.
FINANCIAL RESULTS
(Rs. in Lacs)
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PARTICULARS CURRENT PREVIOUS
YEAR 31.03.1997 YEAR 31.03.1996
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SALES & OTHER INCOME 6113.34 5640.73
PROFIT BEFORE TAXATION 974.47 1006.56
PROFIT AFTER TAX 974.47 906.56
BALANCE B/F (NET ADJUSTMENTS) 270.49 79.76
AMOUNT AVAILABLE FOR APPROPRIATION 1244.96 986.32
APPROPRIATIONS
TRANSFER TO :
DEBENTURE REDEMPTION RESERVE 215.83 215.83
GENERAL RESERVE 500.00 500.00
BALANCE C/F 529.13 270.49
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DIVIDEND
In order to conserve resources, the Board of Directors of the Company are of opinion that no dividend for the year, 1996-97 be recommended & resources be utilized for strengthening the existing operations of the Company.
FUTURE OUTLOOK
In our pursuit to continue our business with European Companies, we have now taken over a project with them for eradication of Leprosy from the developing countries under Anti-Leprosy Project funded by Japanese Government. A total amount of USD 30 million per annum to be continued till year 2002 has been allocated for this project. About Rs. 60 lacs have already been invested for installation of a specialised Blister Packaging machine and while all the preparation has been completed. We
are expecting to get the order by mid February, 1998 estimated over 10 million dollars (approx 40 crores).
OPERATIONS
During the year under review, sales of the Company increased over the previous year. The Company recorded a turnover of Re. 6113.34 Lacs as against Rs. 5640.73 Lace in the previous year registering a growth of 8% (approx.) over the previous year. The profit after tax was Rs. 974.47 Lacs against Rs. 906.56 lacs in the previous year resulting a growth of 7% (approx.)
MARKETING
With the changing environment in the Pharmaceutical Industry in India, Mesco Pharmaceuticals Ltd has taken constant decision to now continue with the marketing on specialised items only and discourage any further
involvements with Me-2 products.
As a result full thrust has now been given to create further marketing in India for specialised products like Hepa Merz and Viru Merz for the treatment of Cirrhosis and Hepatitis under agreement with Merz & Company, Germany & special emphasis on exports of Pharmaceutical products.
DEPOSITS
The Company has invited Fixed deposits from Public during the financial year as per section 58A of the Companies Act., 1956 & provisions of the the Companies (Acceptance of Deposits) Rules, 1975. The position of the
Fixed Deposits as on 31st March, 1997 are as follows:
1. Amount of overdue deposits : Rs. 4.21 lakhs
INDUSTRIAL RELATIONS
The Directors wish to sincerely thank all the employees for the cordial relations and excellent and valuable services rendered by them to the Company. The Management recognises that the Company's human resources represent a vital contribution to its success, both past and future, and will continue its progressive policies to encourage excellence in professionalism both individually and team spirit.
DIRECTORS
During the year under review, Mr D.K. Singh and Mr S.P. Gugnani, Directors, retires by rotation at the conclusion of the ensuing Annual General Meeting and, being eligible have offered themselves for re-appointment. The Directors recommend their appointment to the Board in the ensuing Annual General Meeting.
AUDITORS
M/s A.R & Associates, Chartered Accountants, Delhi who are the Statutory Auditors of the Company. retire at the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment.
NOTES ON ACCOUNT
The observation of the Auditors and Notes on Accounts are self explanatory and have been suitably dealt within the Schedules and Notes.
PARTICULARS REGARDING EMPLOYEES
INFORMATION AS PER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ
WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975,
Particulars of employees in terms of Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are set out in the Annexure II and forms part of this report.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNING AND OUTGO
As required under Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 a statement showing the information relating to the conservation of the energy, technology absorption and foreign exchange earnings and outgo is enclosed as Annexure-I and forms
part of this report.
ACKNOWLEDGMENTS
The Directors wish to thank the Financial Institutions, Company's Bankers and various authorities for all the help and encouragement extended towards the Company. The Directors deeply acknowledge the continued trust and confidence you have placed in the Company. The Directors also wish to place on record their deep appreciation for the
services rendered by the officers, staff and workers of the Company at
all levels and for their dedication and loyalty.
ANNEXURE I
INFORMATION AS PER SECTION 217(1) (E) READ WITH COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 AND FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED MARCH 31, 1997.
FORM - B
RESEARCH AND DEVELOPMENT (R & D)
1. Specific Areas in which R & D was carried
out by the Company NIL
2. Benefits derived as a result of the above R & D N.A
3. Future Plan of action The Company is in
the process of
establishing
extensive facilities
for Research and
Development for Bulk
Drugs as well a
Formulations.
However, for the year
under review, no
facility existed for
the same.
4. Expenditure on R & D : N.A.
a) Capital
b) Recurring
c) Total
d) Total R & D expenditure as a percentage
of total Turnover.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
1. Efforts, in brief, made towards technology The Company has tied
absorption adaptation and innovation. up with Chementecno
Gmbh, Austria which
is a world renowned
company for research
activities in the
field of Drugs and
Pharmaceuticals to
constantly upgrade
its manufacturing
technology to
improve Plant
Capacity, technical
efficiencies and
manufacture of new
products through
in-house technical
development.
2. Benefits derived as a result of the above The benefits of the
efforts. above tie-up are
anticipated from
the year 1998-99.
3. In case of imported technology (imported The Company has
during the last 5 years reckoned from the entered into a
beginning of the Financial Year) following Technical
information may be furnished. Collaboration
Agreement with Merz
& Co.
a) Technology Imported Gmbh, Germany and
b) Year of Import with Guilin
c) Has technology been fully absorbed Pharmaceuticals
d) If not fully absorbed, areas where this has Works, China and the
not taken place, reasons therefore and respective technology
future plans of action. imported there under
is being absorbed
presently.
FOREIGN EXCHANGE
The Company has incurred an expenditure of Rs. 7.78 lakhs towards foreign travelling during the year.
The Company has earned an export income of Rs. 125.41 lace during the year.
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