Mar 31, 2018
The Directors have pleasure in presenting herewith the 37th Annual Report together with the Audited Accounts of the Company for the Financial Year ended 31st March, 2018.
1. FINANCIAL STATEMENTS & RESULTS:
a. FINANCIAL RESULTS:
The Company''s performance during the year ended 31st March, 2018 as compared to the previous financial year, is summarized below:
(Rs. in Lakhs)
Particular |
For the financial year ended 31st March, 2018 |
For the financial year ended 31st March, 2017 |
Income |
3,896.50 |
3,605.63 |
Less: Expenses |
3,412.68 |
3,117.14 |
Profit/ (Loss) before tax |
483.82 |
488.49 |
Current Tax |
102.99 |
45.44 |
Deferred tax |
-5.89 |
5.30 |
Profit after Tax |
386.72 |
437.75 |
b. OPERATIONS:
Your Company''s performance during the year in terms of Turnover was better than the previous year, as the Company is doing Job Work for other Pharma Company with fixed contracted price. However, the Net Profit after Tax reduced by 11.66% compared to previous year. The production capacity was utilized to the maximum level during both the years. Your Company has generated profit during the year under review as well as in the previous year.
Your Company''s major operations were from Job Work. During the period conversion charges recorded at Rs. 3680.85 Lacs (previous year Rs. 3442.3.9 Lacs). The operating Profit for the year is Rs. 623.93 Lacs as compared to operating Profit of Rs. 604.82 Lacs for the previous year. The Net Profit recorded by the Company for the year is Rs. 389.93 Lacs as compared to net profit of Rs. 437.24 Lacs in the previous year.
There are no material changes and commitments affecting the financial position of the Company between the end of the financial year and as on the date of the report which affect the Balance Sheet.
c. BIFR
In view of Company''s net worth turning positive during the financial year 2015-16, the Company had filed a miscellaneous application before the Honorable Board for Industrial and Financial Reconstruction (BIFR) on February 5, 2016 for deregistration of the Company from BIFR under Sick Industrial Companies Act, 1985 (SICA). The Company has been legally advised that the requirement of deregistration was under SICA and since SICA has been repealed, the application technically becomes infructuous and the very fact that Company''s net worth has become positive, no further action is required to be taken.
Your Company''s performance for the year was far exceeding the Scheme approved by the BIFR order dated 12th January, 2012.
d. SUBSIDIARIES
The Company does not have any subsidiary.
e. ASSOCIATES
The Company has no associate Company.
f. DIVIDEND:
With a view to conserve the resources, your Directors have not recommended any dividend for the financial year under consideration.
g. TRANSFER TO RESERVES:
Your Board has not recommended transfer of any amount of profit to reserves during the year under review.
h. REVISION OF FINANCIAL STATEMENT:
There was no revision of the financial statements for the year under review.
i. FIXED DEPOSITS:
Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 (the Act) and the Companies (Acceptance of Deposits) Rules, 2014.
2. DISCLOSURES UNDER SECTION 134(3)(l) OF THE COMPANIES ACT, 2013:
Except as disclosed elsewhere in this report, no material changes and commitments which could affect the Company''s financial position have occurred between the end of the financial year of the Company and date of this report.
3. STATEMENT ON DECLARATION UNDER SECTION 149(6) OF THE COMPANIES ACT, 2013:
The Board has received declaration from the Independent Directors under section 149(6) of the Companies Act, 2013 that they are not otherwise disqualified to be Independent Directors. The Board further States that all the Independent Directors are persons of integrity and possesses relevant expertise and experience to discharge their duties and roles as Independent Directors of the Company.
4. STATEMENT UNDER SECTION 178
Your Company has Constituted Nomination and Remuneration Committee as well as Stakeholders Relationship Committee as contemplated under section 178(1) of the Companies Act, 2013. The Nomination and Remuneration Committee consider that the Qualifications, Experience and positive attributes of the Directors on the Board of the Company are sufficient enough to discharge their duties as such.
During the financial year 2017-18, the Company has paid sitting fees only to the Independent Directors for attending Board and Audit Committee meetings.
Nomination and Remuneration Policy as formulated under Section 178(3) of the Companies Act, 2013 is annexed as "Annexure I" and forms part of this Report.
5. BOARDâS EXPLANATION ON AUDITORSâ REPORTS:
I. Explanation On Statutory Auditorsâ Report
Observations of Statutory Auditors on Accounts for the year ended 31st March, 2018: There are following qualifications made by the Statutory Auditors in respect of financial statement as on and for the year ended 31st March, 2018.
Point No. 1: Regarding confirmation of balances
The Company does not foresee any major impact on the accounts of the Company due to non receipt of balance confirmation from the parties as stated in the auditor''s report
Point No. 2: Determination and identification of significant components of fixed assets
The Company is in the process of determining and identifying significant components of fixed assets as prescribed under the provisions of para 4(a) under the heading Notes after Part C in Schedule II of the Companies Act, 2013. The management expects that this would not have a material impact on depreciation for the quarter and year ended March 31, 2018.
II. Explanation On Secretarial Auditorsâ Report
Provisions of Section 204 read with Section 134(3) of the Companies Act, 2013, mandates the Company to obtain Secretarial Audit Report from Practicing Company Secretary. M/s. KRS & Co., Practicing Company Secretaries were appointed to conduct Secretarial Audit and issue Report for the financial year 2017-18.
Secretarial Audit Report issued by M/s. KRS & Co., Practicing Company Secretaries in Form MR-3 for the financial year 2017-18 forms part of this report. The report of the secretarial Auditor is annexed to this report as Annexure II. The report does not contain any qualification.
6. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The Company has not granted any loans or given guarantees covered under the provisions of section 186 of the Companies Act, 2013.
The details of the investments made by company are given in the notes to the financial statements.
7. PARTICULAR OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES
The Company in the ordinary course of its business, enters into transactions for purchase and sale of goods, materials & services, other obligations from ''Related Parties'' within the meaning of Section 2(76) of the Act and Regulation 23 of the SEBI (LODR), Regulations, 2015.
Contracts/arrangements/transactions entered by the Company during the financial year with related parties were on an arm''s length basis and in the ordinary course of business. All related party transactions were placed for the approval before the Audit Committee / Board / Shareholders wherever necessary in compliance with the provisions of the Act and Listing Regulations. The disclosure of particulars of contracts/arrangements entered into by the company with related parties for the financial year 2017-18 in Form No. AOC-2 is given as Annexure III.
The details of the transactions with related parties are also provided in the accompanying financial statements.
The Company has formulated a policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions.
The policy on materiality of related party transactions and dealing with related party transactions as approved by the Board has been adopted by the Company and uploaded on the Company''s website at the link: http://www.gtbl.in/wp-content/uploads/2015/08/Related-Party-Policy.pdf
8. DISCLOSURE OF INTERNAL FINANCIAL CONTROLS
The Internal Financial Controls with reference to financial statements as designed and implemented by the Company are adequate. During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.
9. DISCLOSURE OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNAL
During the financial year 2017-18 no orders have been passed by any Regulator or Court or Tribunal which can have impact on the going concern status and the Company''s operations in future.
10. DISCLOSURE UNDER SECTION 43(a)(ii) OF THE COMPANIES ACT, 2013:
The Company has not issued any shares with differential rights and hence no information is provided as per provisions of Section 43(a) (ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014.
11. DISCLOSURE UNDER SECTION 54(1)(d) OF THE COMPANIES ACT, 2013
The Company has not issued any sweat equity shares during the year under review and hence no information as per provisions of Section 54(1) (d) of the Act read with Rule 8(13) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
12. DISCLOSURE UNDER SECTION 62(1)(b) OF THE COMPANIES ACT, 2013:
The Company has not issued any equity shares under Employees Stock Option Scheme during the year under review and hence no information is provided as per provisions of Section 62(1 )(b) of the Act read with Rule 12(9) of the Companies (Share Capital and Debenture) Rules, 2014.
13. DISCLOSURE UNDER SECTION 67(3) OF THE COMPANIES ACT, 2013:
The provisions of Section 67(3) as well as discloser under Rule 16(4) of Companies (Share Capital and Debentures) Rules, 2014 are not applicable.
14. MATTERS RELATED TO DIRECTORS AND KEY MANAGERIAL PERSONNEL BOARD OF DIRECTORS
During the year under review, following changes took place in the Board Composition:
Mr. Vikas P. Tarekar, Company Secretary & Compliance Officer ceased to be associated with the Company on account of his resignation with effect from close of office hours on 12th June, 2017.
Mr. Abhishek D. Buddhadev was appointed as the Company Secretary & Compliance Officer of the Company w.e.f 8th August, 2017. Upon such appointment, Mr. Abhishek D. Buddhadev is the Key Managerial Personnel pursuant to the provisions of Section 203 of the Companies Act, 2013 and also the Compliance Officer of the Company under Regulation 6(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Abhishek D. Buddhadev, is Qualified Company Secretary with experience of 5 years in Company Secretarial functions.
Mr. Tapas B. Guhathakurata resigned as Chief Executive Officer (CEO) of the Company with effect from 12th December, 2017.
Mr. Jagdish G. Kaujalgi was appointed as Chief Executive Officer of the Company w.e.f 9th May, 2018. Upon such appointment, Mr. Jagdish G. Kaujalgi is the Key Managerial Personnel pursuant to the provisions of Section 203 of the Companies Act, 2013. Mr Jagadisn G. Kaujalgi is a Diploma Mechanical Engineer & having an experience of more than two and half decade in Equipment maintenance and Project in Chemical plant.
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. S S Lee, (DIN: 01933988), Director of the Company, retires by rotation at the ensuing Annual General Meeting (AGM) and being eligible offers himself for re-appointment. The Board recommends to the members the re-appointment of Mr. S S Lee, (DIN: 01933988) as Director in the ensuing Annual General Meeting of the Company.
Necessary resolution for the appointment/reappointment of the aforesaid Directors is included in the Notice convening the ensuing AGM.
BOARD MEETINGS:
The Board of Directors met Five (5) times during the financial year ended 31st March, 2018 in accordance with the provisions of the Companies Act, 2013 and rules made there under.
The Meetings of the Board of Directors are held at regular intervals of not more than four months in Mumbai or at other places in India as per the convenience of the Directors. These are generally scheduled well in advance. The Board meets at least once a Quarter to review the Performance and Financial Results of the Company. All the major decisions are taken at the Board meeting wherein directors are provided with all material information. The Senior Executives of the Company are invited to attend the Board meeting and provide clarifications as and when required.
DIRECTORâS RESPONSIBILITY STATEMENT:
In terms of Section 134(5) of the Companies Act, 2013, in relation to the audited financial statements of the Company for the year ended 31st March, 2018, the Board of Directors hereby confirms that:
i) in the preparation of the annual accounts, the applicable accounting standards had been followed and there is no material departures according to the accounting standards;
ii) such accounting policies have been selected and applied consistently and the Directors 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 at 31st March, 2018 and of the profit of the Company for that year;
iii) proper and sufficient care was taken 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) the annual accounts of the Company have been prepared on a going concern basis;
v) internal financial controls have been laid down to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
vi) proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
COMMITTEES OF THE BOARD OF DIRECTORS
In compliance with the requirement of applicable laws and as part of best governance practices, the Company has following Committees of the Board as on 31st March, 2018:
i. Audit Committee
ii. Stakeholders Relationship Committee
iii. Nomination and Remuneration Committee
The details with respect to the aforesaid Committees forms part of the Corporate Governance Report.
VIGIL MECHANISM POLICY FOR THE DIRECTORS AND EMPLOYEES:
The Board of Directors of the Company has, pursuant to the provisions of Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014, framed "Vigil Mechanism Policy" for Directors and employees of the Company to provide a mechanism which ensures adequate safeguards to employees and Directors from any victimization on raising of concerns of any violations of legal or regulatory requirements, incorrect or misrepresentation of any, financial statements and reports, etc.
The employees of the Company have the right/option to report their concern/grievance to the Chairman of the Audit Committee.
The said Policy is available on the website of the Company at http://www.gtbl.in/wp-content/uploads/2015/08/Vigil-Mechanism.pdf
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations.
RISK MANAGEMENT:
We have an integrated approach to managing risks inherent in various aspect of our business.
CORPORATE SOCIAL RESPONSIBILITY POLICY:
As per the provisions of Section 135 of the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors has not constituted the Corporate Social Responsibility (CSR) Committee as the Company is not crossing thresh hold limit for CSR spending.
ANNUAL EVALUATION OF DIRECTORS, COMMITTEE AND BOARD:
Provision of the Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, mandates that the Board shall monitor and review the Board evaluation framework. The Schedule IV of the Companies Act, 2013 states that the performance evaluation of the Independent Directors shall be done by the entire Board of Directors, excluding the director being evaluated.
The Board at its meeting held on 5th February, 2018 has carried out an annual evaluation of its own performance, Committees and Individual Directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed by Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015 ("SEBI Listing Regulations").
The performance of the Board and Committees was evaluated by the Board with the help of inputs received from all the Directors and the Committee members on the basis of the criteria such as the Board composition and structure, effectiveness of Board processes, information and functioning, etc.
The Board and the Nomination and Remuneration Committee reviewed the performance of the Individual Directors on the basis of the criteria such as the contribution of the individual director to the Board and Committee meetings like ability to contribute and monitor our corporate governance practices, meaningful and constructive contribution in the issues discussed in meetings, etc. In addition, the Chairman was also evaluated on the key aspects of his role.
In a separate meeting of Independent Directors, performance of Non-Independent Directors, performance of the Board as a whole and performance of the Chairman was evaluated, taking into account the views other Non-Executive Directors. The same was discussed in the Board meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its committees and individual directors was also discussed. Performance evaluation of Independent Directors was done by the entire board, excluding the independent director being evaluated.
The Board was overall of the opinion that the Independent Directors have contributed through the process of Board and Committee meeting of which they are members in effective manner as per their expertise in their field and needs of the organization. The suggestions and contributions of the Independent Directors in the working of the Board/Committee were satisfactory and the value addition made by such Independent Directors individually and as a team is commendable.
DISCLOSURE UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 AND OTHER DISCLOSURES AS PER RULE 5 OF COMPANIES (APPOINTMENT & REMUNERATION) RULES, 2014:
The Company has not paid any remuneration to the Directors during the financial year 2017-18 and hence disclosure under this section is not applicable.
However, in respect of Key Managerial Personnel the disclosure is attached as Annexure IV.
15. APPOINTMENT OF AUDITORS:
STATUTORY AUDITORS
M/s. GMJ & Co., Chartered Accountants (Firm Registration No.103429W), the Statutory Auditors of the Company, were appointed by the members at the 36th Annual General Meeting (AGM) to hold such office till conclusion of the 41st AGM subject to ratification of their appointment by the members at every intervening AGM held after 36th AGM.
The Ministry of Corporate Affairs (MCA), vide its commencement Notification No. SO 1833(E) dated 7th May, 2018, has notified and amended the relevant provision of the Companies Act, 2013 relating the requirement of placing the matter relating to ratification of appointment of Statutory Auditors by members at every Annual General Meeting. The said amendment has done away with the requirement of ratification of appointment of the Statutory Auditors. Therefore, M/s. GMJ & Co., Chartered Accountants will continue to hold office till conclusion of the 41st AGM and their appointment will not be subject to ratification by the members at every intervening AGM held after 36th AGM.
COST AUDITORS
As the Company is carrying on Job Work activity, as per the opinion taken on the provisions of Section 148 of the Companies Act, 2013, Cost Audit does not apply to the Company.
16. OTHER DISCLOSURES:
Other disclosures as per provisions of Section 134 of the Act read with Companies (Accounts) Rules, 2014 are furnished as under:
a. EXTRACT OF ANNUAL RETURN:
Pursuant to the provisions of Section 134(3) (a) of the Companies Act, 2013, Extract of the Annual Return for the financial year ended 31st March 2018 made under the provisions of Section 92(3) of the Act is attached as Annexure V which forms part of this Report.
b. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 in respect of conservation of energy, technology absorption, foreign exchange earnings and outgo etc. are furnished in Annexure VI which forms part of this Report.
c. CORPORATE GOVERNANCE
Report on Corporate Governance and Certificate of Auditors of your Company regarding compliance of the Conditions of Corporate Governance as stipulated in regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with the Stock Exchanges, are enclosed as a separate section and a part of this report in Annexure VII.
d. PREVENTION OF SEXUAL HARASSMENT:
During the financial year ended 31st March, 2018 your Company has not received any complaint related to sexual harassment.
17. MANAGEMENT DISCUSSION & ANALYSIS:
Operational Overview:
Your Company constantly reviews its product market portfolio with the view to sustain its growth. The Company has driven fiscal growth by focusing on the following areas.
(a) Industry structure and developments:
During the year under review, the pharmaceutical industry in India which was experiencing double digit growth was impacted to some extent due to demonetisation and implementation of Goods and Services (GST) Tax Act.
However, it is expected that the Industry will continue to grow going forward.
In line with the National Health Policy, the Government of India has issued a draft Pharmaceutical Policy and sought opinions from various stakeholders. The draft policy aims to streamline the systems of manufacturing and marketing of pharmaceuticals/medicines to achieve the primary goals of the Health Policy to provide affordable health care to all. The Industry continued to face challenges due to imposition of price controls and bringing many products under the ambit of National List of Essential Medicines.
The Industry consisting of Indian and foreign players is witnessing increased spends on R&D initiatives focusing on expanding traditional generic portfolios.
(b) Opportunities and Threats:
The pharma business related with basic human needs and introduction of innovative and cost effective medicines enjoys maximum opportunities in a densely populated country like India.
Availability of sub-standards and substitute products in the market, fierce competition are major threats to the business stability for a small size Company like ours. However, the management is taking all necessary steps and continuously adopting the strategy not only to stand in the market but to perform impressively under the current scenario.
Indian pharma companies will face competition from big pharma companies, backed by huge financial muscle. Generic drugs offer a cost effective alternative to drugs innovators and significant savings to customers.
(c) Segment-wise or product-wise performance:
The Company operate in single segment i.e. pharmaceuticals. The results of the Company under review depict business growth during the period.
(d) Outlook:
Your Company is fully aware of its capabilities and strengths and is going ahead with hand holding strategy with Pharmaceutical majors. This strategy has paid well in the recent past. The Company is also finding new avenues by expanding its existing production capacity.
(e) Risks and concerns:
The business of your Company is also exposed to few risks. Your Company is subject to various laws including drug pricing and other laws impacting the operations of the Company.
Risks, liabilities and losses are part and parcel of any industry and need to be tackled through well forecasted strategies and actions.
(f) Internal control systems and their adequacy:
The Company ensures the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. The statutory auditors while conducting the statutory audit, review and evaluate the internal controls and their observations are discussed with the Audit committee of the Board. Other statutory requirements especially, in respect of pharmaceutical business are also vigorously followed in order to have better internal controls over the affairs of the Company.
(g) Discussion on financial performance with respect to operational performance:
Your Company''s performance during the year in terms of Turnover was better than the previous year. The Operating profit during the year was marginally better than previous year. However, Net Profit After Tax during the year under review was reduced by 11.66%. The financial performance is expected due to better margins, control over the cost.
(h) Material developments in Human Resources/Industrial Relations front, including number of people employed:
The core of the Human Resource philosophy at Gujarat Themis is empowering human resources towards achievement of company aspirations. Your Company has a diverse mix of youth and experience which nurtures the business. As on March 31, 2018 the total employee strength was 95.
18. ACKNOWLEDGMENT
Your Directors have pleasure to place on record their sincere appreciation for the continued co-operation and support extended to the Company by Union Bank of India, all the Employees, Yuhan Corporation, Indian promoters, Dept. of Chemical & Petrochemical and various other Government authorities.
For and on behalf of the Board of Directors
Sd/-
Place : Mumbai Dr. Dinesh S Patel
Date : 9th May, 2018 Chairman
DIN:00033273
Mar 31, 2016
The Members,
Gujarat Themis Biosyn Limited
The Directors have pleasure in presenting herewith the 35th Annual Report together with the Audited Accounts of the Company for the Financial Year ended 31st March, 2016.
1. FINANCIAL STATEMENTS & RESULTS:
a. FINANCIAL RESULTS:
The Company''s performance during the year ended 31st March, 2016 as compared to the previous financial year, is summarized below:
('' in Lakhs)
PARTICULARS |
Year ended 31.03.2016 |
Year ended 31.03.2015 |
Revenue from Operation |
3262.47 |
3144.02 |
Operating Profit / (Loss) |
605.45 |
629.14 |
Other Income |
17.00 |
8.88 |
Finance Cost |
(37.75) |
(38.72) |
Profit / (Loss) before depreciation, prior period adjustments & tax |
584.70 |
599.29 |
Depreciation and amortization expenses |
(119.87) |
(137.54) |
Prior period adjustment |
(1.90) |
(2.35) |
Profit after depreciation, exceptional item and prior period adjustments |
462.93 |
459.41 |
Net Profit after tax |
462.93 |
459.41 |
Impact on depreciation pursuant to transitional provision in Schedule II |
- |
(3.95) |
Surplus/(Deficit) brought forward |
(1037.05) |
(1492.51) |
Surplus / (Deficit) carried forward to Balance Sheet |
(574.12) |
(1037.05) |
b. OPERATIONS:
Your Company''s performance during the year was marginally better than the previous year, as the Company is doing Job Work for other Pharma Company with fixed contracted price. The production capacity was utilized to the maximum level during both the years. Your Company has generated profit during the year under review as well as in the previous year.
Your Company''s major operations were from Job Work. During the period conversion charges recorded at Rs, 3262.47 Lacs (previous year Rs, 3144.02 Lacs). The operating Profit for the year is Rs, 605.45 Lacs as compared to operating Profit of Rs, 629.14 Lacs for the previous year. The Net Profit recorded by the Company for the year is Rs, 462.93 Lacs as compared to net profit of Rs, 459.41 Lacs in the previous year.
The Company proposes to carry the profit after tax of Rs, 462.93 Lacs for adjustment against brought forward loses.
There are no material changes and commitments affecting the financial position of the Company between the end of the financial year and as on the date of the report which affect the Balance Sheet.
c. BIFR
During the year Company''s net worth turned positive and the Company has filed a petition to the Hon''ble BIFR for de-registration of the Company under Sick Industrial Companies (Special Provisions) Act, 1985.
Your Company performance for the year was far exceeding the Scheme approved by the BIFR order dated 12th January, 2012.
d. SUBSIDIARIES
The Company does not have any subsidiary.
e. ASSOCIATES
The Company has no associate Company.
f. DIVIDEND:
In view of carried forward losses, your Directors do not recommend any dividend for the year under consideration.
g. TRANSFER TO RESERVES:
Due to Carry forward losses, your Board has not recommended transfer of any amount of profit to reserves during the year under review.
h. REVISION OF FINANCIAL STATEMENT:
There was no revision of the financial statements for the year under review.
i. FIXED DEPOSITS:
Your Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013 (the Act) and the Companies (Acceptance of Deposits) Rules, 2014.
2. DISCLOSURES UNDER SECTION 134(3)(l) OF THE COMPANIES ACT, 2013:
Except as disclosed elsewhere in this report, no material changes and commitments which could affect the Company''s financial position have occurred between the end of the financial year of the Company and date of this report.
3. STATEMENT ON DECLARATION UNDER SECTION 149(6) OF THE COMPANIES ACT, 2013:
The Board has received declaration from the Independent Directors under section 149(6) of the Companies Act, 2013 that they are not otherwise disqualified to be Independent Directors. The Board further States that all the Independent Directors are persons of integrity and possesses relevant expertise and experience to discharge their duties and roles as Independent Directors of the Company.
4. STATEMENT UNDER SECTION 178
Your Company had Constituted Nomination and Remuneration Committee as well as Stakeholder Relation Committee as contemplated under section 178(1) of the Companies Act, 2013. The Nomination and Remuneration Committee consider that the Qualifications, Experience and positive attributes of the Directors on the Board of the Company are sufficient enough to discharge their duties as such.
During the financial year 2015-16, the Company has paid sitting fees to the Independent Directors only for attending Board and Audit Committee meetings.
5. BOARDâS EXPLANATION ON AUDITORSâ REPORTS:
I. Explanation on Statutory Auditorsâ Report
Observations of Statutory Auditors on Accounts for the year ended 31st March, 2016: There are following qualifications made by the Statutory Auditors in respect of financial statement as on and for the year ended 31st March, 2016.
Point No. 1: Determination and identification of significant components of fixed assets
The Company is in the process of determining and identifying significant components of fixed assets as prescribed under the provisions of para 4(a) under the heading Notes after Part C in Schedule II of the Companies Act, 2013. The management expects that this would not have a material impact on depreciation for the quarter and year ended March 31, 2016.
Point No. 2: Regarding confirmation of balances
The Company does not foresee any major impact on the accounts of the Company due to non receipt of balance confirmation from the parties as stated in the auditor''s report
II. Explanation on Secretarial Auditorsâ Report
Provisions of Section 204 read with Section 134(3) of the Companies Act, 2013, mandates to obtain Secretarial Audit Report from Practicing Company Secretary. M/s. H. V. Gor & Co, Company Secretaries had been appointed to conduct Secretarial Audit and issue Report for the financial year 2015-16.
Secretarial Audit Report issued by M/s. H. V. Gor & Co, Company Secretaries in Form MR-3 for the financial year 2015-16 forms part to this report.
In respect of the observations made by in the Secretarial Audit report. Following are the explanations and comments offered by the Board.
1. As per the Factories Act, 1948 and the Rules made there under, though Safety Audit was carried out at the Company''s Vapi Plant, necessary corrective measures were not taken up.
- The concerns about sufficient safety measure as per the report are under implementation in respect of Vapi factory.
2. The Company''s Vapi Unit engages Contract Labour, however as informed to me the necessary annual compliances will be done during the current year.
- The above observation is self explanatory.
3. Redressal Mechanism under The Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013 is not set up at the Company''s Vapi Unit.
- The Company is taking corrective action in respect of implementation of the redressal mechanism.
6. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The Company has not granted any loans or given guarantees covered under the provisions of section 186 of the Companies Act, 2013.
The details of the investments made by company are given in the notes to the financial statements.
7. PARTICULAR OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES
The details of transactions/contracts/arrangements entered by the Company with related parties as defined under the provisions of Section 2(76) of the Companies Act, 2013, during the financial year under review, are furnished in annual report.
All Related Party Transactions that were entered into during the financial year were at arm''s length and were in the ordinary course of business. All Related Party Transactions were placed before the Audit Committee and the Board of Directors for their approval. The Audit Committee has granted omnibus approval for Related Party Transactions as per the provisions and restrictions contained in the Listing Agreement.
The Company has formulated a policy on materiality of Related Party Transactions and also on dealing with Related Party Transactions.
The Company in the ordinary course of its business, enters into transactions for purchase and sale of goods, materials & services, other obligations from ''Related Parties'' within the meaning of Section 2(76) of the Act and Regulation 23 of the SEBI (LODR), Regulations, 2015.
Thus, in terms of Regulation 23(4) of the SEBI (LODR), Regulations, 2015, these transactions do not require approval of the members by way of an Ordinary Resolution. The policy on materiality of related party transactions and dealing with related party transactions as approved by the Board has been adopted by the Company and uploaded on the Company''s website at the link: http://www.gtbl.in/investors/policyonRelatedPartyTransactions . The details of the transactions with related parties are provided in the accompanying financial statements.
The disclosure of particulars of contracts/arrangements entered into by the company with related parties for the financial year 2015-16 is given as Annexure II in Form No. AOC-2.
8. DISCLOSURE OF INTERNAL FINANCIAL CONTROLS
The Internal Financial Controls with reference to financial statements as designed and implemented by the Company are adequate. During the year under review, no material or serious observation has been received from the Internal Auditors of the Company for inefficiency or inadequacy of such controls.
9. DISCLOSURE OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNAL
During the financial year 2015-16 no orders have been passed by any Regulator or Court or Tribunal which can have impact on the going concern status and the Company''s operations in future.
10. DISCLOSURE UNDER SECTION 43(a)(ii) OF THE COMPANIES ACT, 2013:
The Company has not issued any shares with differential rights and hence no information is provided as per provisions of Section 43(a)(ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014.
11. DISCLOSURE UNDER SECTION 54(1)(d) OF THE COMPANIES ACT, 2013
The Company has not issued any sweat equity shares during the year under review and hence no information as per provisions of Section 54(1)(d) of the Act read with Rule 8(13) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.
12. DISCLOSURE UNDER SECTION 62(1)(b) OF THE COMPANIES ACT, 2013:
The Company has not issued any equity shares under Employees Stock Option Scheme during the year under review and hence no information is provided as per provisions of Section 62(1)(b) of the Act read with Rule 12(9) of the Companies (Share Capital and Debenture) Rules, 2014.
13. DISCLOSURE UNDER SECTION 67(3) OF THE COMPANIES ACT, 2013:
During the year under review, there were no instances of non-exercising of voting rights in respect of shares purchased directly by employees under a scheme pursuant to Section 67(3) of the Act read with Rule 16(4) of Companies (Share Capital and Debentures) Rules, 2014 is furnished.
14. MATTERS RELATED TO DIRECTORS AND KEY MANAGERIAL PERSONNEL BOARD OF DIRECTORS
In accordance with the provisions of the Companies Act, 2013 and Articles of Association of the Company, Dr. Sachin D. Patel (DIN: 00033353) & Mr. J.H. Choi (DIN: 01933775) Directors of the Company will retire by rotation at the forthcoming Annual General Meeting who being eligible, offer themselves for re-appointment. The Board recommends to the members the re-appointment of Dr. Sachin D. Patel & Mr. J.H. Choi as Director liable to retirement by rotation.
BOARD MEETINGS:
The Board of Directors met Six times during the financial year ended 31st March 2016 in accordance with the provisions of the Companies Act, 2013 and rules made there under.
The Meetings of the Board of Directors are held at regular intervals of not more than 120 days in Mumbai or at other places in India as per the convenience of the Directors. These are generally scheduled well in advance. The Board meets at least once a Quarter to review the Performance and Financial Results of the Company. All the major decisions are taken at the Board meeting wherein directors are provided with all material information. The Senior Executives of the Company are invited to attend the Board meeting and provide clarifications as and when required.
Details of Directors seeking appointment / re-appointment in the 35th Annual General Meeting, in pursuant to Regulation 36(3) of SEBI (Listing Obligations and Disclosure Requirements) 2015.
Name of the Director |
Dr. Sachin D. Patel |
Mr. Jae Hyok Choi |
Date of Birth |
18/01/1975 |
18/04/1958 |
Date of appointment |
25/10/2008 |
10/06/2003 |
Expertise in specific functional areas |
Business Development |
Planning & Co-ordination, Overseas Business |
Qualifications |
PH.D. CChem., University of Cambridge. (U.K.) |
M.B.A |
Shareholding of non-executive directors |
7100 |
NA |
DIRECTORâS RESPONSIBILITY STATEMENT:
In terms of Section 134(5) of the Companies Act, 2013, in relation to the audited financial statements of the Company for
the year ended 31st March, 2016, the Board of Directors hereby confirms that:
i) in the preparation of the annual accounts, the applicable accounting standards had been followed and there is no material departures according to the accounting standards;
ii) such accounting policies have been selected and applied consistently and the Directors 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 at 31st March, 2016 and of the profit of the Company for that year;
iii) proper and sufficient care was taken 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) the annual accounts of the Company have been prepared on a going concern basis;
v) internal financial controls have been laid down to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
vi) proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively;
NOMINATION AND REMUNERATION COMMITTEE:
The Nomination and Remuneration Committee of Directors is constituted by the Board of Directors of the Company in accordance with the requirements of Section 178 of the Act.
The Nomination and Remuneration Committee consists of Mr. Vijay Agarwal Chairman, Ms. Dharmishta N. Raval and Dr. Sachin D. Patel as the Members of the Committee.
The Board has in accordance with the provisions of sub-section (3) of Section 178 of the Companies Act, 2013, formulated the policy setting out the criteria for determining qualifications, positive attributes, independence of a Director and policy relating to remuneration for Directors, Key Managerial Personnel and other employees.
Major criteria defined in the policy framed for appointment and payment of remuneration to the Directors of the Company are of Minimum Qualification, Positive Attributes, Independence & Experience.
AUDIT COMMITTEE:
The Audit Committee of Directors was constituted pursuant to the provisions of Section 177 of the Companies Act, 2013. The composition of the Audit Committee is in conformity with the provisions of the said section. The Audit Committee comprises of four directors and majority of the committee members are Independent directors.
Mr. Vijay Agarwal - Chairman
Ms. Dharmishta N Raval - Member
Mr. Siddharth Y. Kusumgar - Member
Dr. Sachin D. Patel - Member
The scope and terms of reference of the Audit Committee is in accordance with the Act and the Listing Agreement entered into with the Stock Exchange.
During the year under review, the Board of Directors of the Company had accepted all the recommendations of the Committee.
STAKEHOLDERS RELATIONSHIP COMMITTEE:
The Company has constituted Stakeholders Relationship Committee under the provisions of Section 178 of the Companies Act, 2013. The Stakeholders Relationship Committee comprises of Dr. Sachin D. Patel, Dr. Dinesh S. Patel and Mr. Vijay Agarwal.
Dr. Sachin D Patel is the Chairman of the Stakeholders'' Relationship Committee. The Company Secretary acts as the Secretary of the Stakeholders'' Relationship Committee.
VIGIL MECHANISM POLICY FOR THE DIRECTORS AND EMPLOYEES:
The Board of Directors of the Company has, pursuant to the provisions of Section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014, framed âVigil Mechanism Policyâ for Directors and employees of the Company to provide a mechanism which ensures adequate safeguards to employees and Directors from any victimization on raising of concerns of any violations of legal or regulatory requirements, incorrect or misrepresentation of any, financial statements and reports, etc.
The employees of the Company have the right/option to report their concern/grievance to the Chairman of the Audit Committee.
The said Policy is available on the website of the Company at http://www.gtbl.in.
The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations.
RISK MANAGEMENT POLICY:
We have an integrated approach to managing risks inherent in various aspect of our business.
CORPORATE SOCIAL RESPONSIBILITY POLICY:
As per the provisions of Section 135 of the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors has not constituted the Corporate Social Responsibility (CSR) Committee as the Company is not crossing thresh hold limit for CSR spending.
ANNUAL EVALUATION OF DIRECTORS, COMMITTEE AND BOARD:
Provision of the Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, mandates that the Board shall monitor and review the Board evaluation framework. The Schedule IV of the Companies Act, 2013 states that the performance evaluation of the Independent Directors shall be done by the entire Board of Directors, excluding the director being evaluated.
The Board at its meeting held on 10th February, 2016 has carried out an annual evaluation of its own performance, Committees and Individual Directors pursuant to the provisions of the Act and the corporate governance requirements as prescribed under SEBI (LODR), Regulations 2015.
The performance of the Board and Committees was evaluated by the Board with the help of inputs received from all the Directors and the Committee members on the basis of the criteria such as the Board composition and structure, effectiveness of Board processes, information and functioning, etc.
The Board and the Nomination and Remuneration Committee reviewed the performance of the Individual Directors on the basis of the criteria such as the contribution of the individual director to the Board and Committee meetings like ability to contribute and monitor our corporate governance practices, meaningful and constructive contribution in the issues discussed in meetings, etc. In addition, the Chairman was also evaluated on the key aspects of his role.
In a separate meeting of Independent Directors, performance of non-independent directors, performance of the Board as a whole and performance of the Chairman was evaluated, taking into account the views other non-executive directors. The same was discussed in the Board meeting that followed the meeting of the Independent Directors, at which the performance of the Board, its committees and individual directors was also discussed. Performance evaluation of independent directors was done by the entire board, excluding the independent director being evaluated.
The Board was overall of the opinion that the Independent Directors have contributed through the process of Board and Committee meeting of which they are members in effective manner as per as their expertise in their field and needs of the organization. The suggestions and contributions of the independent directors in the working of the Board\Committee were satisfactory and the value addition made by such independent directors individually and as a team is commendable.
DISCLOSURE UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 AND OTHER DISCLOSURES AS PER RULE 5 OF COMPANIES (APPOINTMENT & REMUNERATION) RULES, 2014:
The Company has not paid any remuneration to the Directors during the financial year 2015-16 and hence disclosure under this section is not applicable.
However, in respect of Key Managerial Personnel the disclosure is attached as Annexure III.
PAYMENT OF REMUNERATION / COMMISSION TO DIRECTORS FROM HOLDING OR SUBSIDIARY COMPANIES:
The Company does not have any holding / subsidiary company nor any remuneration / commission paid to the Directors.
15. APPOINTMENT OF AUDITORS: STATUTORY AUDITORS
Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014, Khandelwal Jain & Co., Chartered Accountants, the Statutory Auditors of the Company, hold office up to the conclusion of the ensuing Annual General Meeting. The consent of the Auditors along with certificate under Section 139 of the Act has been obtained from the Auditors to the effect that their appointment, if made, shall be in accordance with the prescribed conditions and that they are eligible to hold the office of Auditors of the Company. The Board recommends the appointment of Khandelwal Jain & Co., Chartered Accountants as the Statutory Auditors of the Company.
Necessary resolution for reappointment of the said Auditors is included in the Notice of AGM for seeking approval of members.
COST AUDITORS
As the Company is carrying on Job Work activity, as per the opinion taken on the provisions of Section 148 of the Companies Act, 2013, Cost Audit does not apply to the Company.
16. OTHER DISCLOSURES
Other disclosures as per provisions of Section 134 of the Act read with Companies (Accounts) Rules, 2014 are furnished as under:
a. EXTRACT OF ANNUAL RETURN:
Pursuant to the provisions of Section 134(3)(a) of the Companies Act, 2013, Extract of the Annual Return for the financial year ended 31st March 2016 made under the provisions of Section 92(3) of the Act is attached as Annexure IV which forms part of this Report.
b. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The particulars as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 in respect of conservation of energy, technology absorption, foreign exchange earnings and outgo etc. are furnished in Annexure V which forms part of this Report.
c. CORPORATE GOVERNANCE
Report on Corporate Governance and Certificate of Auditors of your Company regarding compliance of the Conditions of Corporate Governance as stipulated in regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 of SEBI (LODR) Regulations, 2015, are enclosed as a separate section and a part of this report in Annexure VI.
d. PREVENTION OF SEXUAL HARASSMENT:
During the financial year ended 31st March, 2016 your Company has not received any complaint related to sexual harassment.
17. MANAGEMENT DISCUSSION & ANALYSIS:
Operational Overview:
Your Company constantly reviews its product market portfolio with the view to sustain its growth. The Company has driven fiscal growth by focusing on the following areas.
(a) Industry structure and developments:
The pharmaceutical market in the year 2015 grew at 1.1 % and India accounts for about 2.4% of the global pharmaceutical industry and is expected to expand at a rate of approx 15 % by 2020. The growth is primarily driven by US, China, UK and India.
(b) Opportunities and Threats:
The pharma business related with basic human needs and introduction of innovative and cost effective medicines enjoys maximum opportunities in a densely populated country like India.
Availability of sub-standards and substitute products in the market, fierce competition are major threats to the business stability for a small size Company like ours. However, the management is taking all necessary steps and continuously adopting the strategy not only to stand in the market but to perform impressively under the current scenario.
(c) Segment-wise or product-wise performance:
The Company operate in single segment i.e. pharmaceuticals. The results of the Company under review depict business growth during the period.
(d) Outlook:
Your Company is fully aware of its capabilities and strengths and is going ahead with hand holding strategy with Pharmaceutical majors. This strategy has paid well in the recent past. The Company is also finding new avenues by expanding its existing production capacity.
(e) Risks and concerns:
Risks, liabilities and losses are part and parcel of any industry and need to be tackled through well forecasted strategies and actions.
(f) Internal control systems and their adequacy:
The Company ensures the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. The statutory auditors while conducting the statutory audit, review and evaluate the internal controls and their observations are discussed with the Audit committee of the Board. Other statutory requirements especially, in respect of pharmaceutical business are also vigorously followed in order to have better internal controls over the affairs of the Company.
(g) Discussion on financial performance with respect to operational performance:
The operational performance during the year under review was one of the best in recent past. The financial performance is getting improved due to better production output as well as reduction of interest. However, much needs to be done in this area as past losses burden is still impacting the financial performance of the Company.
(h) Material developments in Human Resources / Industrial Relations front, including number of people employed:
The core of the Human Resource philosophy at Gujarat Themis is empowering human resources towards achievement of company aspirations. Your Company has a diverse mix of youth and experience which nurtures the business. As on March 31, 2016 the total employee strength was 1126.
18. ACKNOWLEDGMENT
Your Directors have pleasure to place on record their sincere appreciation for the continued co-operation and support extended to the Company by Union Bank of India, all the Employees, Yuhan Corporation, Indian promoters, Dept. of Chemical & Petrochemical and various other Government authorities.
For and on behalf of the Board of Directors
SD/-
Place : Mumbai Dr. Dinesh S Patel
Date : 11/05/2016 Chairman
DIN: 00033273
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting herewith the 34th Annual
Report together with the Audited Accounts of the Company for the
Financial Year ended 31st March, 2015.
FINANCIAL RESULTS:
The Company's performance during the year ended 31st March, 2015 as
compared to the previous financial year, is summarized below:
(Rs. in Lakhs)
PARTICULARS Year ended Year ended
31.03.2015 31.03.2014
Revenue from Operation 3144.02 3023.03
Operating Profit / (Loss) 629.14 652.27
Other Income 8.88 16.01
Finance Cost (38.72) (71.48)
Profit / (Loss) before depreciation,
prior period adjustments & tax 599.29 596.80
Depreciation and amortization expenses (137.54) (146.25)
Prior period adjustment (2.35) 2.04
Profit after depreciation, exceptional item
and prior period adjustments 459.41 452.59
Net Profit after tax 459.41 452.59
Impact on depreciation pursuant to
transitional provision in Schedule II (3.95) -
Surplus/(Deficit) brought forward (1492.51) (1945.11)
Surplus / (Deficit) carried forward to
Balance Sheet (1037.05) (1492.51
OPERATIONS:
Your Company's performance during the year was marginally better than
the previous year, as the Company is doing Job Work for other Pharma
Company with fixed contracted price. The production capacity was
utilized to the maximum level during the both years. Your Company has
generated cash profit during the year under review as well as in the
previous year.
Your Company's major operations were from Job Work. During the period
conversion charges recorded at Rs.3144.02 Lacs (previous year
Rs.3023.03 Lacs). The operating Profit for the year is Rs.629.14 Lacs
as compared to operating Profit of Rs. 652.27 Lacs for the previous
year. The Net Profit recorded by the Company for the year is Rs.459.41
Lacs as compared to net profit of Rs. 452.59 Lacs in the previous year.
The Company proposes to carry the profit after tax of Rs. 459.41 Lacs
for adjustment brought forward loses.
There are no material changes and commitments affecting the financial
position of the Company between the end of the financial year and as on
the date of the report which affect the Balance Sheet.
BIFR
Your Company was referred to BIFR under Sick Industrial Companies
(Special Provisions) Act, 1985 on 2nd June, 2008 and Registered under
Case No. 67/2007. The Scheme of Rehabilitation was approved by BIFR on
12th January, 2012.
During the year, one of the promoters Pharmaceutical Business Group
(India) Ltd. has offloaded 1423000 equity shares (9.79%) of Rs.5/- each
fully paid up to public on 7th August, 2014 by way of offer for sale
through Stock Exchange Mechanism. As a result, the Company has achieved
minimum public shareholding of 25% in compliance with BIFR and SEBI
orders.
Your Company has complied with all the requirements as per BIFR order
and the performance of the Company is in line with the Scheme approved
by the BIFR order dated 12th January, 2012.
Barring unforeseen circumstances, your Company expects positive net
worth of the Company during the Financial year 2015-16 much before the
period envisaged for positive net worth under Scheme approved by the
BIFR.
SUBSIDIARIES
The Company does not have any subsidiary.
ASSOCIATES
The Company has two Associate Companies namely Themis Medicare Ltd., &
Pharmaceutical Business Group (India) Ltd. The details of Associate
Companies are given in Annexure I.
DIVIDEND:
In view of carry forward losses, your Directors do not recommend any
dividend for the year under consideration.
TRANSFER TO RESERVES:
Due to Carry forward losses, your Board has not recommended transfer of
any amount of profit to reserves during the year under review.
REVISION OF FINANCIAL STATEMENT:
There was no revision of the financial statements for the year under
review.
FIXED DEPOSITS:
Your Company has not accepted any deposits within the meaning of
Section 73 of the Companies Act, 2013 (the Act) and the Companies
(Acceptance of Deposits) Rules, 2014.
DISCLOSURES UNDER SECTION 134(3)(l) OF THE COMPANIES ACT, 2013:
Except as disclosed elsewhere in this report, no material changes and
commitments which could affect the Company's financial position have
occurred between the end of the financial year of the Company and date
of this report.
STATEMENT ON DECLARATION UNDER SECTION 149(6) OF THE COMPANIES ACT,
2013:
The Board has received declaration from the Independent Directors under
section 149(6) of the Companies Act, 2013 that they are not otherwise
disqualified to be Independent Directors. The Board further States that
all the Independent Directors are persons of integrity and possesses
relevant expertise and experience to discharge their duties and roles
as Independent Directors of the Company.
STATEMENT UNDER SECTION 178
Your Company had Constituted Nomination and Remuneration Committee as
well as Stakeholder Relation Committee as contemplated under section
178(1) of the Companies Act, 2013. The Nomination and Remuneration
Committee consider that the Qualifications, Experience and positive
attributes of the Directors on the Board of the Company are sufficient
enough to discharge their duties as such.
During the financial year 2014-15, the Company has neither paid sitting
fees nor paid any remuneration & commission to Board Members.
BOARD'S EXPLANATION ON AUDITORS' REPORTS:
I. Explanation On Statutory Auditors' Report
Observations of Statutory Auditors on Accounts for the year ended 31st
March 2015: There are following qualifications, reservations or adverse
remark or disclaimer made by the Statutory Auditors in respect of
financial statement as on and for the year ended 31st March, 2015.
Following are the explanations for the Statutory Auditor's remarks in
the Audit report.
Point No.1 Regarding preparation of financial statement on going
concern basis
The Company has made profit in the current and previous financial
years. In the opinion of the Board there is no doubt about the
Company's ability to continue as a going concern, hence these accounts
are prepared on a going concern basis.
Point No.2 Regarding confirmation of balances
The Company does not foresee any major impact on the accounts of the
Company due to non receipt of balance confirmation from the parties as
stated in the auditor's report.
II. Explanation On Secretarial Auditors' Report
Provisions of Section 204 read with Section 134(3) of the Companies
Act, 2013, mandates to obtain Secretarial Audit Report from Practicing
Company Secretary. The Secretarial Audit Report for the financial year
2014-15 is given in Annexure II.
In respect of the observations made in the Secretarial Audit Report.
Following are the explanations and comments offered by the Board.
Point No.1 Regarding non filing of certain forms with Registrar of
Companies in respect of appointment of CS/CEO and Resignation of CEO.
The non filings of the certain forms were mainly due to ambiguity and
uncertainty of the applicability of the same for the relevant period.
However, the Company would ensure in future that all the provisions are
complied with the fullest extent.
Point No.2 Regarding delay in appointing CFO & Independent Director.
The Company was searching-out the right candidates for the above and
has already made such appointments after locating the right candidates.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The Company has not given any loans or guarantees covered under the
provisions of section 186 of the Companies Act, 2013.
The details of the investments made by company are given in the notes
to the financial statements.
PARTICULAR OF CONTRACTS OR ARRANGEMENT WITH RELATED PARTIES
The details of transactions/contracts/arrangements entered by the
Company with related parties as defined under the provisions of Section
2(76) of the Companies Act, 2013, during the financial year under
review, are furnished in annual report.
All Related Party Transactions that were entered into during the
financial year were at arm's length and were in the ordinary course of
business. All Related Party Transactions were placed before the Audit
Committee and the Board of Directors for their approval. The Audit
Committee has granted omnibus approval for Related Party Transactions
as per the provisions and restrictions contained in the Listing
Agreement.
The Company has formulated a policy on materiality of Related Party
Transactions and also on dealing with Related Party Transactions.
The Company in the ordinary course of its business, enters into
transactions for purchase and sale of goods, materials & services,
other obligations from 'Related Parties' within the meaning Section
2(76) of the Act and Clause 49(VII) of the Listing Agreement.
The current and the future transactions are/will not be deemed to be
'material' in nature as defined in the Act & Clause 49(VII) of the
Listing Agreement as they do not exceed 10 per cent of the annual
turnover of the Company based on future business projections.
Thus, in terms of Clause 49(VII)(E) of the Listing Agreement, these
transactions do not require approval of the members by way of a Special
Resolution. The policy on materiality of related party transactions and
dealing with related party transactions as approved by the Board has
been adopted by the Company and uploaded on the Company's website at
the link: http://www.gtbl.in/investors/ policy on Related Party
Transactions. The details of the transactions with related parties are
provided in the accompanying financial statements.
The disclosure of particulars of contracts/arrangements entered into by
the company with related parties for the financial year 2014- l5 is
given as Annexure III in Form No. AOC 2.
DISCLOSURE OF INTERNAL FINANCIAL CONTROLS
The Internal Financial Controls with reference to financial statements
as designed and implemented by the Company are adequate. During the
year under review, no material or serious observation has been received
from the Internal Auditors of the Company for inefficiency or
inadequacy of such controls.
DISCLOSURE OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNAL
During the financial year 2014-15 no orders have been passed by any
Regulator or Court or Tribunal which can have impact on the going
concern status and the Company's operations in future.
DISCLOSURE UNDER SECTION 43(A)(II) OF THE COMPANIES ACT, 2013:
The Company has not issued any shares with differential rights and
hence no information is provided as per provisions of Section 43(a)(ii)
of the Act read with Rule 4(4) of the Companies (Share Capital and
Debenture) Rules, 2014.
DISCLOSURE UNDER SECTION 54(1)(D) OF THE COMPANIES ACT, 2013
The Company has not issued any sweat equity shares during the year
under review and hence no information as per provisions of Section
54(1)(d) of the Act read with Rule 8(13) of the Companies (Share
Capital and Debenture) Rules, 2014 is furnished.
DISCLOSURE UNDER SECTION 62(1)(B) OF THE COMPANIES ACT, 2013:
The Company has not issued any equity shares under Employees Stock
Option Scheme during the year under review and hence no information is
provided as per provisions of Section 62(1)(b) of the Act read with
Rule 12(9) of the Companies (Share Capital and Debenture) Rules, 2014.
DISCLOSURE UNDER SECTION 67(3) OF THE COMPANIES ACT, 2013:
During the year under review, there were no instances of non-exercising
of voting rights in respect of shares purchased directly by employees
under a scheme pursuant to Section 67(3) of the Act read with Rule
16(4) of Companies (Share Capital and Debentures) Rules, 2014 is
furnished.
MATTERS RELATED TO DIRECTORS AND KEY MANAGERIAL PERSONNEL BOARD OF
DIRECTORS
a) In accordance with the provisions of the Companies Act, 2013 and
Articles of Association of the Company, Dr. Dinesh S Patel (DIN:
00033273) & Mr. S.S. Lee (DIN: 01933988) Directors of the Company will
retire by rotation at the forthcoming Annual General Meeting who being
eligible, offers themselves for re-appointment. The Board recommends to
the members the re-appointment of Dr. Dinesh S Patel and Mr. S.S. Lee
as a Director liable to retirement by rotation.
b) Ms. Dharmishta N Raval (DIN: 02792246) is a Independent Director of
the Company from 30th October, 2009, whose tenure of office was liable
to be determined by retirement of directors by rotation under the
erstwhile applicable provisions of the Companies Act, 1956. However, as
per requirements of provisions of the Companies Act, 2013 and rules
made there under, the Independent Directors are not liable to retire by
rotation and are required to be appointed by Shareholders. Therefore it
is proposed to appoint Ms. Dharmishta N Raval as an Independent
Director for a term of five consecutive years from the conclusion of
this AGM dated 21st September, 2015. The Board recommends to the
members appointment of Ms. Dharmishta N Raval as Independent Director.
c) Dr. Vikram D. Sanghvi (DIN 06858267) and Mr. Siddharth Yogesh
Kusumgar (DIN 01676799) were appointed as additional Directors (being
Non-Executive Independent Directors) of the Company on 25th March, 2015
& 28th May, 2015 respectively to hold office upto the date of ensuing
Annual General Meeting. The Company has received notices from
shareholders along with requisite deposits proposing the candidature of
Dr. Vikram D Sanghvi and Mr. Siddharth Yogesh Kusumgar for appointment
as Independent Directors at the ensuing Annual General Meeting.
d) Mr. Hinesh Doshi (DIN: 00322805) was appointed as Alternate Director
to Mr. J.H Choi from 25th March, 2015. Prior to this, Mr. Hinesh Doshi
was Alternate Director to Mr. S.S. Lee.
KEY MANAGERIAL PERSONNEL
1. Mr. Bhudebendranath Tapas Guhathakurata was appointed as Chief
Executive Officer of the Company on 07th August, 2014.
2. Mr. Bharat A Desai was appointed as Chief Financial Officer of the
Company on 17th March, 2015
3. Mr. Vikas Tarekar was appointed as Company Secretary on 02nd July,
2014
DISCLOSURES RELATED TO BOARD, COMMITTEES AND POLICIES BOARD MEETINGS:
The Board of Directors met Six times during the financial year ended
31st March 2015 in accordance with the provisions of the Companies Act,
2013 and rules made there under.
The Meetings of the Board of Directors are held at regular intervals of
not more than four months in Mumbai or at other places in India as per
the convenience of the Directors. These are generally scheduled well in
advance. The Board meets at least once a Quarter to review the
Performance and Financial Results of the Company. All the major
decisions are taken at the Board meeting wherein directors are provided
with all material information. The Senior Executives of the Company are
invited to attend the Board meeting and provide clarifications as and
when required.
DIRECTOR'S RESPONSIBILITY STATEMENT:
In terms of Section 134(5) of the Companies Act, 2013, in relation to
the audited financial statements of the Company for the year ended 31st
March, 2015, the Board of Directors hereby confirms that:
i) in the preparation of the annual accounts, the applicable accounting
standards had been followed and there is no material departures
according to the accounting standards;
ii) such accounting policies have been selected and applied
consistently and the Directors 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 at 31st March, 2015 and of the profit of
the Company for that year;
iii) proper and sufficient care was taken 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) the annual accounts of the Company have been prepared on a going
concern basis;
v) internal financial controls have been laid down to be followed by
the Company and that such internal financial controls are adequate and
were operating effectively;
vi) proper systems have been devised to ensure compliance with the
provisions of all applicable laws and that such systems were adequate
and operating effectively;
NOMINATION AND REMUNERATION COMMITTEE:
The Nomination and Remuneration Committee of Directors as constituted
by the Board of Directors of the Company in accordance with the
requirements of Section 178 of the Act.
The Nomination and Remuneration Committee consists of Mr. Vijay Agarwal
Chairman, Ms. Dharmishta N. Raval and Dr. Sachin D. Patel as the
Members of the Committee.
The Board has in accordance with the provisions of sub-section (3) of
Section 178 of the Companies Act, 2013, formulated the policy setting
out the criteria for determining qualifications, positive attributes,
independence of a Director and policy relating to remuneration for
Directors, Key Managerial Personnel and other employees.
Major criteria defined in the policy framed for appointment and payment
of remuneration to the Directors of the Company are of Minimum
Qualification, Positive Attributes, Independence & Experience.
AUDIT COMMITTEE:
The Audit Committee of Directors was constituted pursuant to the
provisions of Section 177 of the Companies Act, 2013. The composition
of the Audit Committee is in conformity with the provisions of the said
section. The Audit Committee comprises of four directors and majority
of the committee members are Independent directors.
1. Mr. Vijay Agarwal - Chairman
2. Ms. Dharmishta N Raval - Member
3. Mr. Siddharth Yogesh Kusumgar - Member
4. Dr. Sachin D Patel - Member
The scope and terms of reference of the Audit Committee is in
accordance with the Act and the Listing Agreement entered into with the
Stock Exchange.
During the year under review, the Board of Directors of the Company had
accepted all the recommendations of the Committee.
STAKEHOLDERS RELATIONSHIP COMMITTEE:
During the year under review, pursuant to Section 178 of the Companies
Act, 2013, the Board of Directors of the Company has constituted the
Stakeholder's Relationship Committee, comprising of Dr. Sachin D.
Patel, Dr. Dinesh S. Patel and Mr. Vijay Agarwal.
Dr. Sachin D. Patel has been appointed as Chairman of the Stakeholders'
Relationship Committee. The Company Secretary acts as the Secretary of
the Stakeholders' Relationship Committee.
VIGIL MECHANISM POLICY FOR THE DIRECTORS AND EMPLOYEES:
The Board of Directors of the Company has, pursuant to the provisions
of Section 177(9) of the Companies Act, 2013 read with Rule 7 of the
Companies (Meetings of Board and its Powers) Rules, 2014, framed "Vigil
Mechanism Policy" for Directors and employees of the Company to provide
a mechanism which ensures adequate safeguards to employees and
Directors from any victimization on raising of concerns of any
violations of legal or regulatory requirements, incorrect or
misrepresentation of any, financial statements and reports, etc.
The employees of the Company have the right/option to report their
concern/grievance to the Chairman of the Audit Committee.
The said Policy is available on the website of the Company www.gtbl.in
The Company is committed to adhere to the highest standards of ethical,
moral and legal conduct of business operations.
RISK MANAGEMENT POLICY:
We have an integrated approach to managing risks inherent in various
aspect of our business.
CORPORATE SOCIAL RESPONSIBILITY POLICY:
As per the provisions of Section 135 of the Act read with Companies
(Corporate Social Responsibility Policy) Rules, 2014, the Board of
Directors has not constituted the Corporate Social Responsibility (CSR)
Committee as the Company is not crossing thresh hold limit for CSR
spending.
ANNUAL EVALUATION OF DIRECTORS, COMMITTEE AND BOARD:
Clause 49 of the Listing Agreement mandates that the Board shall
monitor and review the Board evaluation framework. The Schedule IV of
the Companies Act, 2013 states that the performance evaluation of the
Independent Directors shall be done by the entire Board of Directors,
excluding the director being evaluated. A statement indicating the
manner for evaluation of performance of the Board and its committee,
individual Directors is attached with the Board Report as Annexure IV
and forms part of this Report.
DISCLOSURE UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 AND OTHER
DISCLOSURES AS PER RULE 5 OF COMPANIES (APPOINTMENT & REMUNERATION)
RULES, 2014:
The Company has not paid any remuneration to the Directors during the
financial year 2014-15 and hence disclosure under this section is not
applicable.
tHowever, in respect of Key Managerial Personnel the disclosure is
attached as Annexure V.
PAYMENT OF REMUNERATION / COMMISSION TO DIRECTORS FROM HOLDING OR
SUBSIDIARY COMPANIES:
The Company does not have any holding / subsidiary company nor any
remuneration / commission paid to the Directors.
APPOINTMENT OF AUDITORS:
STATUTORY AUDITORS
Pursuant to the provisions of Section 139 of the Companies Act, 2013
and the Companies (Audit and Auditors) Rules, 2014, Khandelwal Jain &
Co., Chartered Accountants, the Statutory Auditors of the Company, hold
office upto the conclusion of the ensuing Annual General Meeting. The
consent of the Auditors along with certificate under Section 139 of the
Act has been obtained from the Auditors to the effect that their
appointment, if made, shall be in accordance with the prescribed
conditions and that they are eligible to hold the office of Auditors of
the Company. The Board recommends the appointment of Khandelwal Jain &
Co., Chartered Accountants as the Statutory Auditors of the Company.
Necessary resolution for reappointment of the said Auditors is included
in the Notice of AGM for seeking approval of members. COST AUDITORS
As the Company is carrying on Job Work activity, as per the opinion
taken on the provisions of Section 148 of the Companies Act, 2013, Cost
Audit does not apply to the Company.
OTHER DISCLOSURES
Other disclosures as per provisions of Section 134 of the Act read with
Companies (Accounts) Rules, 2014 are furnished as under:
a. EXTRACT OF ANNUAL RETURN:
Pursuant to the provisions of Section 134(3)(a) of the Companies Act,
2013, Extract of the Annual Return for the financial year ended 31st
March 2015 made under the provisions of Section 92(3) of the Act is
attached as Annexure VI which forms part of this Report.
b. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The particulars as required under the provisions of Section 134(3) (m)
of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts)
Rules, 2014 in respect of conservation of energy, technology
absorption, foreign exchange earnings and outgo etc. are furnished in
Annexure VII which forms part of this Report.
c. CORPORATE GOVERNANCE
Report on Corporate Governance and Certificate of Auditors of your
Company regarding compliance of the Conditions of Corporate Governance
as stipulated in Clause 49 of the Listing Agreement with the Stock
Exchanges, are enclosed as Annexure VIII and form part of this report.
d. Prevention of Sexual Harassment:
During the financial year ended 31st March, 2015 your Company has not
received any complaint related to sexual harassment. MANAGEMENT
DISCUSSION & ANALYSIS:
Operational Overview:
Gujarat Themis constantly reviews its product market portfolio with the
view to sustain its growth. The Company has driven fiscal growth by
focusing on the following areas.
* Development of innovative - first-of-a-kind products to establish
itself in India and Globally.
* Establish sound long-term partnerships with Indian and International
companies to expand business
* Development of a stronger manufacturing infrastructure.
* Creation of a superior Management Information System.
* Up-gradation, Expansion, Modernization of existing manufacturing
facilities.
* Obtaining of international approvals for its plants.
* Establishment of Marketing Divisions as per therapeutic segments.
* During the year under review, relations with labour remained as it
were last year.
ACKNOWLEDGMENT
Your Directors have pleasure to place on record their sincere
appreciation for the continued co-operation and support extended to the
Company by Union Bank of India, all the Employees, Yuhan Corporation,
Indian promoters, Dept. of Chemical & Petrochemical and various other
Government authorities.
For and on behalf of the Board of Directors
Sd/-
Place : Mumbai Dr. Dinesh S Patel
Date : 28 May, 2015 Chairman
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting herewith the 33rd Annual
Report together with the Audited Accounts of the Company for the
Financial Year ended 31st March, 2014.
This report has been prepared on the basis of the legal requirements
under the Companies Act, 1956. As per General Circular No.08/2014
issued by the Ministry of Corporate Affairs (MCA) dated 04/04/2014, the
provisions of the Companies Act, 2013 will become applicable for all
disclosures required under the Act for the year 2014-15 and subsequent
years.
FINANCIAL RESULTS:
The results for the year ended 31st March, 2014 are summarized below:
(Rs. in Lakhs)
PARTICULARS Year ended Year ended
31.03.2014 31.03.2013
Total Income 3039.05 2862.85
Operating Profit / (Loss) 668.29 396.03
Finance Cost (71.48) (77.85)
Profit / (Loss) before depreciation,
prior period adjustments & tax 596.81 318.18
Depreciation and amortization expenses (146.25) (205.15)
Prior period adjustment 2.04 (6.05)
Profit after depreciation, exceptional
item and prior period adjustments 452.60 106.98
Net Profit after tax 452.60 106.98
Surplus/(Deficit) brought forward (1945.11) (2632.09)
Adjustment against Equity Share
Capital Reduction - 580.00
Surplus / (Deficit) carried forward
to Balance Sheet (1492.51) (1945.11)
OPERATIONS:
Your Company''s performance during the year was much better than the
previous year resulting in four fold increase in the Net Profit of the
Company. The production capacity was utilized to the maximum level.
Your Company has generated cash profit during the year under review as
well as in the previous year.
Your Company''s major operations were from Job Work. Conversion charges
recorded at Rs. 3022.99 Lacs (previous year Rs. 2475.09 Lacs). The
operating Profit for the year is Rs. 668.29 Lacs as compared to
operating Profit of Rs. 396.03 Lacs for the previous year. The Net
Profit recorded by the Company for the year is Rs. 452.60 Lacs as
compared to net profit of Rs. 106.98 Lacs in the previous year.
The Company proposes to carry the profit after tax of Rs. 452.60 Lacs
for adjustment brought forward loses.
In view of carry forward losses no dividend is recommended for payment
by the directors.
There are no material changes and commitments affecting the financial
position of the Company between the end of the financial year and as on
the date of the report which affect the Balance Sheet.
BIFR
Your Company was referred to BIFR under Sick Industrial Companies
(Special Provisions) Act, 1985 on 2nd June, 2008 and Registered under
Case No. 67/2007. The Scheme of Rehabilitation was approved by BIFR on
12th January, 2012.
In compliance with the SEBI requirement for Minimum Public Shareholding
(MPS) of 25% in the Company as well as orders passed by BIFR / SEBI,
one of the promoters of the Company M/s.Pharmaceutical Business Group
(India) Ltd. has agreed to offer for sale (OFS) 14,23,000 equity shares
(9.79%) of Rs. 5/- each fully paid up to Public through Stock Exchange
Mechanism on 7th August, 2014. On completion of this process, MPS
requirement shall stands complied with.
In compliance with BIFR order dated 12th January, 2012 Company has paid
Rs. 31.00 Lacs (Rupees Thirty One Lakhs) to Gujarat Industrial
Investment Corporation Ltd. (GIIC Ltd.) comprising of Rs. 26.00 Lacs
towards repayment of unsecured loan as well as Rs. 5.00 Lacs paid as
compensation.
Except for MPS requirement as stated above, all other requirements as
per BIFR order dated 12th January, 2012 stands complied with.
DIRECTORS
In accordance with the provisions of the Companies Act, 2013 and
Articles of Association of the Company, Dr. Sachin D. Patel, director
of the Company will retire by rotation at the forthcoming Annual
General Meeting who being eligible, offers himself for re-appointment.
The Board recommends to the members the re-appointment of Dr. Sachin D.
Patel as a Director liable to retirement by rotation.
Mr. Vijay Agarwal is a Non-Executive Independent Director of the
Company from March, 2006, whose tenure of office was liable to be
determined by retirement of directors by rotation under the erstwhile
applicable provisions of the Companies Act, 1956. However, as per
requirements of provisions of the Companies Act, 2013 and rules made
thereunder, the Independent Directors are not liable to retire by
rotation and are required to be appointed by Shareholders. Therefore it
is proposed to appoint Mr. Vijay Agarwal as an Independent Director for
a term of five consecutive years from the conclusion of this AGM dated
29th September, 2014.
The Board recommends to the members appointment of Mr. Vijay Agarwal as
Independent Director.
In line with the BIFR order dated 12th January, 2012, the constitution
of the Board was realigned. Consequently Mr. S.C Kim and Mr. J.K Cha
representatives of Yuhan Corporation on the Company''s Board, resigned
as Directors w.e.f 12-08-2013. The Board places on record its
appreciation for the services rendered by them during their tenure as
Directors of the Company.
In view of the settlement of GIIC Ltd''s Unsecured Loan by the Company,
Mr. A. B. Shah, Nominee Director of Gujarat Industrial Investment
Corporation Ltd. (GIIC Ltd.) resigned from the Board. His resignation
was accepted by the Board on 6th August, 2014. The Board places on
record its appreciation for the services rendered by Mr. A.B. Shah
during his tenure as a Director of the Company.
DIVIDEND:
Due to inadequacy of profits earned as well as carry forward losses,
your Directors do not recommend any dividend for the year under
consideration.
INDUSTRIAL RELATIONS
Relations between the Management and the workers generally remained
cordial and peaceful.
AUDITORS
M/s. Khandelwal Jain & Co., Chartered Accountants, Statutory Auditors
of the Company retires at the conclusion of the forthcoming Annual
General Meeting and being eligible, offers themselves for
re-appointment.
The Auditors have furnished to the Company the requisite Certificate
under Section 224 (1B) of the Companies Act, 1956.
STOCK EXCHANGE
The Company''s shares are listed on BSE Limited. The shares were also
listed on Ahmedabad Stock Exchange Ltd. However, as per the approval
given by the members on 27th September, 2013, the Company had
voluntarily delisted its equity shares from Ahmedabad Stock Exchange
Ltd. w.e.f 22nd January, 2014.
BOARD''S EXPLANATION ON STATUTORY AUDITOR''S OBSERVATIONS
Following are the explanations for the Statutory Auditor''s remarks in
the Audit report.
Point No.1 Regarding preparation of financial statement on going
concern basis
The Board for Industrial and Financial Reconstruction (BIFR) in the
hearing held on 12th January, 2012 had approved the Rehabilitation
Scheme considering the viability of the Unit. The Company at present is
utilizing its production capacity to the maximum level. The Company has
made profit in the current and previous financial years. In the opinion
of the Board there is no doubt about the Company''s ability to continue
as a going concern, hence these accounts are prepared on a going
concern basis.
Point No.2 Regarding confirmation of balances
The Company does not foresee any major impact on the accounts of the
Company due to non receipt of balance confirmation from the parties as
stated in the auditor''s report.
Point No.3 Regarding maintaining of fixed assets records
In view of the production unit is in running condition, the physical
existences of availability and running of fixed assets is established
beyond doubt. The Board does not expect any material discrepancy
between fixed assets as per books and its physical availability.
However the physical verification exercise will be carried-out shortly.
INTERNAL AUDITOR
The Company has appointed M/s. R.P Sardar & Co. Chartered Accountants
as Internal Auditors of the Company for the financial year 2014-15.
COST AUDITORS
As the Company is carrying on Job Work activity, as per the opinion
obtained the provisions of Section 233B of the Companies Act, 1956 for
conducting Cost Audit does not apply to the Company.
PARTICULARS OF EMPLOYEES
No employees of the Company are drawing salary in excess of the limits
specified under section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information on conservation of energy and technology absorption etc. as
required to be disclosed in terms of Section 217(1) (e) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of the Directors) Rules, 1988, are given in Annexure "A"
to the Director''s Report.
CORPORATE GOVERNANCE
Report of Directors on compliance of conditions on Corporate Governance
as specified in Clause 49 of the Listing Agreement together with
certificate issued by the Practicing Company Secretary thereon attached
to this Report.
DIRECTORS'' RESPONSIBILITY
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors
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 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 and of the profit or
loss of the Company for the financial year under consideration.
iii) The Directors have taken proper and sufficient care of the
maintenance of adequate accounting records in accordance with the
provision of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv) The Directors have prepared the annual accounts on a going concern
basis.
ACKNOWLEDGMENT
Your Directors have pleasure to place on record their sincere
appreciation for the continued co-operation and support extended to the
Company by Financial Institutions, Union Bank of India, all the
Employees, Yuhan Corporation, GIIC Ltd., the State Government of
Gujarat, Dept. of Chemical & Petrochemical and various other Government
authorities.
For and on behalf of the Board of Directors
Place : Mumbai Dr. Dinesh S. Patel
Date : 06-08-2014 Chairman
Mar 31, 2012
The Directors have pleasure in presenting herewith the 31st Annual
Report together with the Audited Accounts of the Company for the
Financial Year ended 31st March, 2012
FINANCIAL RESULTS
(Rs. in Lakhs)
Year ended Year ended
31.03.2012 31.03.2011
Total Income 914.05 1,369.60
Operating Proft / (Loss) (185.48) (89.62)
Finance Cost (113.07) (125.54)
Proft / (Loss) before depreciation, prior
period adjustments & tax (298.56) (215.17)
Depreciation and amortization expenses (110.29) (107.00)
Exceptional item 568.36 -
Prior period adjustment (0.83) (4.36)
Proft / (Loss) after depreciation,
exceptional item and prior period adjustments 158.68 (326.53)
Income tax for earlier year - 1.15
Net Proft/(Loss) after tax 158.68 (327.68)
Surplus/(Defcit) brought forward (2790.77) (2463.09)
Surplus / (Defcit) carried forward to
Balance Sheet (2632.09) (2790.77)
OPERATIONS
Your Company's operations during the year under review have declined
due to reduction in job work activity done for fermentation activity.
However, Company has entered in to contract for supply of Rifa which
has replaced the reduction in job work activity. The positive impact of
the same will be seen in the next fnancial year.
Your Company's sales for the year ending 31st March, 2012 is Rs.731.76
Lacs (previous year Rs.0.40 lacs) and conversion charges for job work
is Rs.188.96 lacs (previous year Rs.1337.81 Lacs). The operating loss
for the year is Rs.185.48 lacs as compared to operating loss of
Rs.89.62 lacs for the previous year. The net proft recorded by the
Company for the year is Rs.158.68 lacs as compared to net loss of
Rs.327.68 lacs in the previous year.
The Company proposes to carry the proft after tax of Rs.158.68 Lacs for
adjustment against Reserves & Surplus.
In view of carry forward losses, no dividend is recommended for payment
by the directors.
There are no material changes and commitments affecting the fnancial
position of the Company between the end of the fnancial year and as on
the date of the report which affect the Balance Sheet.
BIFR
Your Company was referred to the Board for Industrial and Financial
Reconstruction (BIFR) under Sick Industrial Companies (Special
Provisions) Act, 1985 on 2nd June, 2008 based on the negative net worth
of the Company as at 31st March, 2007 and Registered under Case No.
67/2007.
The Board for Industrial and Financial Reconstruction (BIFR) has seen
the viability of the Company based on the Rehabilitation Scheme
submitted to them. The Scheme of Rehabilitation of the Company was
approved by BIFR on 12th January, 2012. The main features of the
Rehabilitation Scheme approved by BIFR are given below:
1. The Authorized and Paid up value of each share of the Company has
been reduced from Rs.10/- per equity share to Rs. 5/- per equity share.
2. The reduction in the value of equity shares is to be utilized for
writing off the accumulated losses of the Company.
3. The Authorized share capital is kept same with number of shares
under equity shares and Unclassifed shares increased from 1,36,00,000 &
1,11,00,000 to 2,72,00,000 & 2,22,00,000 respectively. Preference
shares remaining the same as 30,000.
4. Themis Medicare Ltd. has been inducted as co-promoter of the
Company and issued 2928702 Equity shares of Rs.5/- each fully paid-up
at a premium of Rs.5/- each against cash / cash equivalent subject to
lock-in period of 3 years.
5. Public shareholding to be brought to the minimum level of 25% in
the fnancial year 2014.
6. Post increase in public share holding (F.Y. 2014) the holding of
Yuhan Corporation will be maintained at 26% by acquiring shares from
the existing promoters at a price to be determined in accordance with
the then applicable laws.
7. Gujarat Industrial Investment Corporation (GIIC) to accept their
unsecured loan amount of Rs.26 Lacs in 3 equal yearly instalments or
alternatively the entire amount as would be decreed by the court will
be payable by the Company before the end of the scheme in 2018.
8. The net worth of the Company to become positive by 2018.
Concession / Relief
As per the scheme sanctioned by BIFR on 12th January, 2012 certain
reliefs and concessions were allowed by Bank, Income Tax Department,
SEBI, Stock Exchange, Department of Company Affairs etc. as contained
in the approved scheme.
Union Bank of India
Union Bank of India has sacrifced by giving refund of Rs.133.75 Lacs
towards the concessional interest. The Bank has agreed to charge
interest at concessional rate till the Net Worth become positive.
Further the repayment of WCTL outstanding amount has been rescheduled
for the further period of 84 equal monthly instalments from 1st
November, 2011.
Promoters sacrifce
a) M/s. Yuhan Corporation forego their claim of Rs.395.10 Lacs
b) Shareholders have foregone Rs.5/- paid on equity shares thereby
reducing the face value of the share to Rs. 5/- each from Rs. 10/-
each.
c) Themis Medicare Ltd. the new promoters to take shares of Rs. 5/-
each at a premium of Rs.5/- per share.
d) The new promoters Themis Medicare Ltd. funded unsecured loan
amounting of Rs. 350 Lacs
e) In case of any short fall, the promoters / co-promoters under take
to bring the funds in the form of equity / unsecured interest free
loan.
DIRECTORS
In terms of Article of Association of the Company as well as the
requirement of the Companies Act, 1956, Mr. Hinesh Doshi, Mr. S.C Kim &
Dr. Dinesh S. Patel retires by rotation at the ensuing Annual General
Meeting and being eligible, offer themselves for reappointment.
Mr. Rajneesh Anand resigned as Managing Director w.e.f 2nd March, 2012.
The board places on record their appreciation for the services rendered
by him during his tenure as Managing Director of the Company.
Subsequently, Mr. Rajneesh Anand is appointed as President & CEO of the
Company.
INDUSTRIAL RELATIONS
Relations between the Management and the workers generally remained
cordial and peaceful.
AUDITORS
Messrs Khandelwal Jain & Co., Chartered Accountants, Statutory Auditors
of the Company retires at the conclusion of the forthcoming Annual
General Meeting and being eligible, offers themselves for
re-appointment.
The Auditors have furnished to the Company the requisite Certifcate
under Section 224 (1B) of the Companies Act, 1956.
BOARD'S EXPLANATION ON STATUTORY AUDITOR'S OBSERVATIONS.
Point No. 2 (f) regarding maintaining of fxed assets records
The management expects to carry out physical verifcation of fxed assets
during the F.Y 2012-13. Considering that the production unit is in
running condition, the physical existences of availability and running
of fxed assets is established beyond doubt. The board does not expect
any material discrepancy between fxed assets as per books and its
physical availability.
Point no. 2 g(i) regarding preparation of fnancial statements on going
concern basis.
After considering the viability of unit, BIFR has passed order for
Rehabilitation Scheme. This shows that the operations of the Company
are viable in short and long run. As regards brought forward losses and
negative net worth, after giving effect of BIFR directives, the same
will considerably reduce. As regards working capital defciency, the
Company has entered in to a contract with a party for supply of
material for which raw materials will be supplied by them. This will
considerably reduce working capital burden of the Company and monthly
billing is taking care of overhead funding. With this arrangement, the
Company do not foresee any problem of working capital requirements. In
the opinion of the board there is no doubt about the Company ability to
continue as a going concern.
Point no. 2 g(ii) regarding confrmation of balances
The Company do not foresee any material variation in the balances of
trade receivable, deposits, loans and advances, long term borrowings,
liability for expenses, trade payables as per the balance as on
31-3-2012. Hence there will not be any material impact on the fnancial
statements of the Company.
Regarding default / repayment of loans & interest from bank
In view of the value of sacrifces on account of interest on CC Limit,
WCTL, Penal Interest amounting to Rs.133.75 Lacs as contained in the
approved Rehabilitation Scheme which was agreed to by Union Bank of
India who submitted the Rehabilitation Scheme to BIFR as Operating
Agency. Had this refund of interest as agreed by the Bank credited
timely to the Company's account, there would not have been default /
delay in repayment of principal Term Loan & Interest to that extent.
As regards other remarks in the Auditors' Report, the notes wherever
referred to, are self-explanatory.
INTERNAL AUDITOR
The Company has appointed M/s Gopalkrishnan Aiyer & Co., Chartered
Accountants as Internal Auditors of the Company.
COST AUDITORS
Pursuant to the directives of the Central Government under the
provisions of Section 233B of the Companies Act, 1956, qualifed Cost
Auditors appointed by the Company to conduct cost audit relating to
Company's bulk drug division for the fnancial year ended 31st March,
2012.
PARTICULARS OF EMPLOYEES
No employees of the Company are drawing salary in excess of the limits
specifed under section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information on conservation of energy and technology absorption etc. as
required to be disclosed in terms of Section 217(1) (e) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of the Directors) Rules, 1988, are given in Annexure "A"
to the Director's Report.
CORPORATE GOVERNANCE
Report of Directors on compliance of conditions on Corporate Governance
as specifed in Clause 49 of the Listing Agreement together with
certifcate issued by the Practicing Company Secretary thereon is
attached to this Report.
DIRECTORS' RESPONSIBILITY
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors
confrm 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 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 fnancial year and of the proft of the
Company for the fnancial year under consideration.
iii) The Directors have taken proper and suffcient care of the
maintenance of adequate accounting records in accordance with the
provision of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv) The Directors have prepared the annual accounts on a going concern
basis.
ACKNOWLEDGMENT
Your Directors have pleasure to place on record their sincere
appreciation for the continued co-operation support extended to the
Company by Financial Institutions, Union Bank of India, all the
Employees, Yuhan Corporation, the State Government of Gujarat, Dept. of
Chemical & Petrochemical and various other Government authorities.
For and on behalf of the Board of Directors
Place : Mumbai Dr. Dinesh S Patel Dr. Sachin
D. Patel Subhash C. Kaushik
Date : 14th
August, 2012 Chairman Director Director
Mar 31, 2010
The Directors have pleasure in presenting herewith the 29th Annual
Report together with the Audited Accounts of the Company for the
Financial Year ended March 31, 2010
FINANCIAL RESULTS
(Rs. in Lakhs)
Year ended Year ended
31.03.2010 31.03.2009
Total Income 1563.59 1275.95
Operating Profit / (Loss) 142.54 (78.96)
Interest and Finance charge 159.80 180.93
Profit / (Loss) before depreciation,
prior period adjustments & tax (17.26) (259.88)
Profit./ (loss) after
depreciation and tax (103.06) (357.57)
Income tax for earlier year 4.74 4.35
Fringe Benefit Tax for earlier year 0.55 -
Fringe Benefit Tax - 1.60
Net Profit/(Loss) after tax (108.35) (363.52)
Surplus/(Deficit) brought forward (2354.74) (1991.22)
Surplus / (Deficit) carried
forward to Balance Sheet (2463.09) (2354.74)
OPERATIONS
Your Companys operations during the year under review have improved.
The Companys sales for the year ending 31st March 2010 is Rs.2.28 lacs
and conversion charges for job work is Rs. 1545.70 lacs as compared to
Rs.4.59 lacs sale and conversion charges for job work Rs 1250.72 during
the previous year. The operating Profit for the year is Rs. 142.54 lacs
as compared to Rs. 78.96 lacs Loss for the previous year. The net loss
recorded by the Company for the year is Rs. 108.35 lacs as compared to
loss of Rs. 363.52 lacs in the previous year.
BIFR
Your Company became "Sick Company" as defined under Sec 3 (1) (o) of
the Sick Industrial Companies (Special provision) Act 1985, and in
accordance with the provisions of section 15 (I) of the said Act and
registered with BIFR on 5/11/2007 under reference No.67/2007.
The Draft Rehabilitation Scheme is under finalization by Union Bank of
India (Operating Agency) in consultation with the promoters and other
involved agencies and the same will be furnished to BIFR for their
consideration.
DIRECTORS
In terms of Article of Association of the Company as well as the
requirement of the Companies Act, 1956, Dr. Dinesh S. Patel, Mr. S.S.
Lee, Mr. J.H. Choi retires by rotation at the ensuing Annual General
Meeting and being eligible, offer themselves for reappointment.
Further Mr. AnantThakore, Mr. N.I. Gandhi and Mr. Surendra Somani have
resigned from the Board of Directors of the Company on 22nd September,
2009. The Board placed on record its appreciations of the valuable
support extended by Mr.Anant Thakore, Mr. N.I. Gandhi and Mr. Surendra
Somani during their tenure as Director of the Company.
Your Directors have appointed Ms. Dharmishta N. Raval and Mr. Subhash
C. Kaushik as Additional Directors u/s 260 of the Companies Act, 1956
w.e.f 30th October, 2009 & 21st May, 2010 respectively. A resolution
for their appointment as regular Director is proposed to be passed at
the ensuing Annual General Meeting of the Company.
INDUSTRIAL RELATIONS
Relations between the Management and the workers generally remained
cordial and peaceful.
AUDITORS
Messrs Khandelwal Jain & Co., Chartered Accountants, Statutory Auditors
of the Company retires at the conclusion of the forthcoming Annual
General Meeting and being eligible, offers themselves for
re-appointment. As regards remarks in the Auditors Report, the Notes
wherever referred to, are self-explanatory.
The Auditors have furnished to the Company the requisite Certificate
under Section 224 (1B) of the Companies Act, 1956.
INTERNAL AUDITOR
During the year 2009-10, the Company has appointed M/s Gopalkrishnan
Aiyer & Co., Chartered Accountants as Internal Auditors of the Company.
COST AUDITORS
The Company being Sick Unit and Registered with BIFR and presently the
Company is engaged in manufacturing activities on Job Work basis.
Based on said reason, the company is making an application to Central
Government for exemption from Cost Audit of the Record of the Company
for the financial year 2009-10 u/s 233 of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
No employees of the Company are drawing salary in excess of the limits
specified under section 217(2A) of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information on conservation of energy and technology absorption etc. as
required to be disclosed in terms of Section 217(1) (e) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of the Directors) Rules, 1988, are given in Annexure "A"
to the Directors Report.
CORPORATE GOVERNANCE
Report of Directors on compliance of conditions on Corporate Governance
as specified in Clause 49 of the Listing Agreement together with
certificate issued by the Practicing Company Secretary thereon attached
to this Report.
DIRECTORS RESPONSIBILITY
Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors
confirm that:
i) In the preparation of the Annual Accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures.
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 at the end of the financial year and of the profit or
loss of the Company for that period.
iii) The Directors have taken proper and sufficient care of the
maintenance of adequate accounting records in accordance with the
provision of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv) The Directors have prepared the annual accounts on a going concern
basis.
AUDITORS OBSERVATIONS & COMMENTS
Observations & Comments
1. Some of the balances of sundry debtors, deposits, loans & advances
and sundry creditors are subject to confirmation and adjustments
necessary upon reconciliation if any, consequential impact thereof in
the financial statements is not ascertainable. The Management does not
expect any material variation in the financial statements.
2. Preparation of accounts on the basis of a going concern inspite of
negative net worth and working capital deficiency. The company has
initiated efforts including development of new products and has also
ventured into manufacture of goods on job work basis so as to reduce
the losses. Accordingly, these accounts have been prepared on a going
concern basis.
3. Regarding non-maintenance of the proper records showing the full
particulars including quantitative details and situation of fixed
Assets and in the absence of physical verification during the year
discrepancies between book records and physical availability could not
be ascertained. The management is of the view that there will be no
material discrepancies between Fixed Assets records as per books and
its physical availability.
4. Regarding write back of sundry credit balance of Rs.35,18,539/-
based on a review undertaken of old outstanding balances of Sundry
Creditors & Provisions.
5. The net worth of the Company has been eroded during the financial
year 2006-07 and based on its financial position as on 31-03-2007, the
Company became Sick Unit and Registered with BIFR. As per the order
passed by the BIFR, Union Bank of India has been appointed as Operating
Agency.
ACKNOWLEDGMENT
Your Directors have pleasure to place on record their sincere
appreciation for the continued co-operation support extended to the
Company by Financial Institutions, Union Bank of India, all the
Employees, Yuhan Corporation, the State Government of Gujarat, Dept. of
Chemical & Petrochemical and various other Government authorities.
For and on behalf of the Board of Directors
RAJNEESH ANAND DR. DINESH S. PATEL DR. SACHIN D. PATEL
Managing Director Director Director
Place : Mumbai
Date : 21st May, 2010