Mar 31, 2010
The Directors have pleasure in presenting herewith the 25th ANNUAL
REPORT together with the Audited Statement of Accounts of the Company
for the year ended March 31, 2010.
FINANCIAL HIGHLIGHTS
The Financial Results for the year ended March
31, 2010 are as under:
Year ended Year ended
31.03.2010 31.03.2009
Sales 18394.31 14292.76
Other Income 6.13 233.73
Operating Profit 9563.70 7572.26
(Before Interest and
Depreciation)
Interest and pre-payment 2314.83 1740.85
Premium
Depreciation 3520.70 2623.27
Profit before Taxation 3728.17 3208.14
Provision for Taxation 633.79 363.48
MAT Credit Entitlement (633.79) (363.48)
Provision for Fringe
Benefit Tax - 8.57
Provision for Deferred Tax 413.94 380.56
Profit after Taxation 3314.23 2819.01
Appropriations:
General Reserve 750.00 750.00
Dividend 322.67 322.67
Dividend Tax 54.85 54.85
Surplus Carried to
Balance Sheet 12205.65 10250.79
During the year under review your company recorded growth in sales
in-spite of tough economic environment. The sale has risen by over
28.70% and the profit after taxation has gone up by 17.57% as compared
to the previous year. This was achieved in spite of a difficult
business environment in the last financial year.
The CompanyÃs long term strategy with focus on R&D and product
development has enabled it to withstand the pressures of the recession
and achieve growth in sales during the last financial year. The company
introduced a range of new products in the peptide business the
significant one being the launch of pseudoproline peptides which are
spurring the growth of the peptide synthesis industry.
Your Company is consistently working towards improving the yields in
its manufacturing processes. During the last year, the focus was also
directed towards improving the yields and process optimization for
manufacturing many of the existing products which have provided us
significant savings in our manufacturing costs.
Your companyÃs Research platform is directed towards process innovation
and development to arrive at cost effective processes for manufacture
of advanced organic intermediates/ penultimate intermediates and
generic APIs where cost is the major driving force. Within these
technology platforms the company has multi-process capabilities. With
its R&D focus your company is able to not only develop products quickly
but also able to bring down the costs significantly and remain
competitive.
One of the foremost challenges for the peptide industry is towards
Total Peptide Management program - a customized service platform is to
ensure customer satisfaction and help the pharmaceutical and life
sciences industries bring new and innovative drugs to market faster.
DIVIDEND
Your Directors have recommended dividend for the 10th year successfully
after achieving a good growth in profit during the year. A Dividend
@20% per Equity Share (Rs.2/- on the Paid-up Equity Share of Rs.10/-
each) for the financial year 2009Ã2010. The dividend payout will
aggregate to Rs.322.67 Lakhs and the dividend, if approved at the for
thcoming Annual General Meeting, will be paid to all eligible equity
shareholders.
TECHNOLOGY FOCUS OF THE COMPANY
At the R&D level the company is leveraging on its experience to
dedicate significant resources and technical expertise to support
research in solid and solution-phase technologies, unnatural amino
acids, validation of manufacturing process and analytical methods.
These capabilities allow us to supply generic peptides as well as
peptides and related products for therapeutic and diagnostic areas in
HIV, osteoporosis, diabetes, AlzheimerÃs, and many other human
diseases.
Your Company is focused at providing high cost effective standardized
peptides and peptide building blocks and also develops a peptide
Library which can support customers for their project.
The company is also expanding its business and technological focus on
non-peptide generic drug and intermediates based on organic and chiral
chemistry by adding products to its existing list.
The manufacturing operations in USA are being set up to focus on solid
phase peptide synthesis while the operations in Switzerland are
directed towards building capabilities on solution phase synthesis. The
manufacturing facilities in India will focus on manufacturing the
reagents and the building blocks. Manufacture of generic peptide and
nonÃpeptide APIs for the un- regulated market has commenced.
INTERNATIONAL MARKETING AND SALES EFFORTS
During the year the company participated in several trade shows to show
case its capabilities and products. The list of the shows participated
or mentioned in the table below. The company has participated in the
CPHI Japan show in Japan. This show gives the opportunity for your
company to explore one of the fastest growing markets in Pharmaceutical
Industry.
The company had also participated in various trade shows across the
globe and has received significant leads which can be converted into
prospective business in the near future.
Name of the Exhibition Date & Place
CPhi Japan 2009 Tokyo BIG SIGHT
Exhibition Centre,
Tokyo, Japan
April 21-23, 2009
BIO, 2009 Georgia World Congress
Centre, Atlanta, Georgia,
USA May 18-21, 2009
21st APS 2009 Indiana University
Bloomington, USA
June 7-12, 2009
CPhi World Wide Feira De Madrid
2009 Spain
October 13-15, 2009
46th Japanese Kitakyushu International
Peptide Conference Centre,
Symposium 2009 Kokura, Japan
November 4-6, 2009
The Peptide Cambridge
Conference 2010 United Kingdom
March 30-31, 2010
BIO 2010 McCormick Place, Chicago
IL, USA May 3-6, 2010
BUSINESS OUTLOOK FOR COMING YEAR
Your company has achieved significant growth, recognition and market
share in the Peptide Industry. As a part of its business policy and to
continue its growth path the company has further consolidated and
expanded its product range in non-peptide generics in the current year.
The company is continuing to add capacity and extend its product range
to meet the growing market demands. Your company proposes to manufact
ure a range of fast moving non-peptide generics ranging from proton
pump inhibitors, anti-allergy, anti-depressant, anti-AIDS segments,
and antibiotics. Your company has developed cost effective processes
for the products. Your company has added the products in the veterinary
API segment especially anti- helmentics.
Jupiter group has achieved remarkably during the last 25 years with
dedication, commitment and focus on the future of the company.
Company commenced operations with an expertise in conventional organic
chemistry and thereon moved ahead to build up a strong base in advanced
organic chemistry with a Philosophy of the company as follows:
- Process innovation
- Process development
- Process optimization
Visionary in the founder Sri. K.S. Sarma who has always thinking ahead
and initiated with Jupiter family support only of its kind considering
the Jupiter in the next 50 years in the year 1995.
This initiative based on the above three philosophies is the entry into
peptide chemistry. Three years effort of process innovation and
development between 1995 and 1998 has resulted in Jupiter on the radar
screen of multinational pharma companies globally discovery companies.
The company today achieved the positioning of only of its kind business
model based on technology in peptide pharmaceutical.
The company continued to focus on organic- chemistry to be in the Niche
market of the high- end intermediates for the generic and research
pharmaceutical market globally.
The companyÃs future R&D will be to augment capability high-end Peptide
Building Blocks, Speciality, Organic intermediates and Chiral
intermediates.
To achieve the above Jupiter will continue to collaborate with
Universities and Academic Institutions and Research Institutions and
Researchers.
In the field of the Peptide Chemistry the company continues to
associate with:
- Bangalore University
- And has entered into MOU with University of Massachusetts, USA under
the leadership of Dr.Louis Carpino who is considered father of Peptide
chemistry.
In the next 25 years in the field of Organic & Chiral Chemistry the
following will be plus:
Process development for single isomer through the following routes:
- Chiral pool
- Separation via diastereomeric salt crystallization
- Bio-resolution
Separation of racemic compounds
Expertise on resolution techniques and have developed the diasteromers
and then separated them by chromatography or crystallization.
Chiral Pool
Undertake chiral isomer development using carbohydrates, amino acids,
lipids, terpenes, and alkaloids. However our primary expertise is in
using chiral amino acids as the starting material.
Chemical Asymmetric Methods
Capabilities to use transition metals as catalysts for oxidation and
reduction reactions to develop chiral compounds
Biological Asymmetric Methods
Capabilities to use microbial enzymes for developing chiral compounds
Our capabilities on these platforms will enable us to develop chiral
molecules such as speciality amino acids, amino alcohols and diamines
through efficient synthetic routes
Carbohydrate chemistry
To Strengthen and Build-up expertise for the emerging Pharmaceutical
market the company is embarking on a programme to focus on Carbohydrate
chemistry.
This will bring the Jupiter on very high technology platform in the
global positioning.
As a first step the company will be focusing on Monosaccharide
Building Blocks.
CORPORATE SOCIAL RESPONSIBILITY
Jupiter Group actively participates in the welfare of the local
community. Our Company in India makes a difference through various
Corporate Social Responsibility (CSR) Schemes / efforts which will make
a positive difference to the people at large in the various walks of
life. During the year the Company contributed to the Society for its
well being in the following manner:
1. Donated a Borewell at Cheriyal village, where our manufacturing
unit is located;
2. Also Donated a School building at Cheriyal village; and
3. Contributed towards higher studies of poor students, who are bright
in studies and can not afford to pursue their higher studies.
STATEMENT PURSUANT TO LISTING AGREEMENT
The Equity Shares of the Company are listed with The Bombay Stock
Exchange Limited (BSE) and National Stock Exchange of India Limited
(NSE) (permitted). Your Company has paid the respective Annual Listing
Fees up-to-date. The Company has provided Corporate Governance Report
and Cash Flow Statement in this Annual Report and other required
details.
SAFETY AND ENVIRONMENT
PROTECTION
Your Company has been following strict environmental protection
standards and ensured that employeesà health and safety measures are
maintained and monitored throughout the plant.
CONSERVATION OF ENERGY,
TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The CompanyÃs operations do not involve high consumption of energy. But
the Company is taking all the necessary steps for the optimum
utilization of energy. The necessary particulars to be furnished under
217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988 are furnished in the annexure to this Report.
The particulars to be furnished with regard to Technology Absorption
and Research and Development are given in the Annexure-1 to this
Report.
FOREIGN EXCHANGE EARNINGS AND OUTGO
Your Company has earned Foreign Exchange of Rs.402.87 Lakhs on account
of direct exports during the year 2009-2010. The Company has expended
Rs.1376.70 Lakhs in Foreign Exchange on account of Investment in
Jupiter Bioscience Inc., U.S.A., imports of raw materials International
travel, and on expenses related to business development during the year
2009-10. The Management has made an extensive survey of foreign
markets for the CompanyÃs products and several orders are in pipeline
and there will be substantial earnings in Foreign Exchange in the
Current Year.
ACTIVITIES RELATING TO EXPORTS; INITIATIVES TAKEN TO INCREASE EXPORTS
ETC.,
The company has marketing offices in USA, Switzerland, Japan. The
Company has established representative offices and business development
offices in Germany, Singapore, Middle East, Denmark and Spain.
The company is planning to expand marketing and business development
operations during the next six months in the following countries viz.
Latin America, Central America, Malaysia, UK, France, Korea.
The above initiatives will definitely result in higher foreign exchange
earnings in the coming years.
The major initiative in the next 6 months will be, Jupiter will stock
many of its products in USA & Singapore and cater to the smaller volume
customers extensively.
The following markets are planned to be focused for different product
groups:
Peptide Building Blocks:
- US, Europe, Japan, Singapore, Canada, UK
Peptide APIs:
- South East Asia, Latin America, Middle East, India and Neighboring
Countries
Organic Intermediates:
- US, Europe, Japan, Singapore, Canada, UK, India, South East Asia
Organic APIs
- South East Asia, Latin America, Middle East, India and Neighboring
Countries Chiral Intermediates
- US, Europe, Japan, Singapore, Canada
New Initiative:
The company will be adding a team of executives in business development
in Europe, US and Japan during the next six months time.
Strategic Business:
The company is also currently discussing with a major contract
manufacturing companies in USA and Europe to discuss business
opportunities covering the entire expertise of Jupiter.
Contract Research:
The company has initiated business development effort of contract
research business.
DIRECTORS
Mr. Rudolf H Tanner retires by rotation in this Annual General Meeting
and is eligible for re- appointment. Your Directors recommend his
re- appointment.
AUDITORS
M/s. A.G.V. Reddy & Co., Chartered Accountants, the Statutory Auditors
of the Company retire at the ensuing Annual General Meeting and is
eligible for re-appointment. They have furnished a certificate pursuant
to Sec 224(1-B) of the Companies Act, 1956 regarding their eligibility
for re-appointment and your Directors recommended their re-appointment.
SUBSIDIARIES
A. Sven Genetech Limited
Subsidiary of your Company Sven Genetech Limited during the year made
rapid strides in synthesis of specialty peptides, launch of new
formulations and development of its capabilities in the diagnostics and
enzymes areas.
Sven proposes to enter new business segments in the coming years. These
include
- Formulations à Oncology
- Biopharmaceuticals
- Biosimilars
- Enzymes
- Neutraceutical APIs
During the year under review, the Company has approved to disinvest its
stake through offer of sale of shares as per the resolution passed in
the Extraordinary General Meeting held on 09th December, 2009, for
achieving a strategic advantage to both the companies, while the
Company would benefit out of the disinvestments, the subsidiary could
access the capital market for its long-term resources.
B. Jupiter Bioscience Inc. USA
The CompanyÃs 100% subsidiary in USA, Jupiter Bioscience Inc. is
gearing up for manufacture of custom peptides and generic peptide APIs
by the solid phase peptide synthesis.
The results of the Subsidiary Companies are attached to this Report
along with the statement pursuant to Section 212 of the Companies
Act, 1956.
RESEARCH & DEVELOPMENT (R&D)
The company incurred an expenditure of Rs.1009.83 Lakhs in 2009-10 on
R& D. This expenditure was incurred in developing the cost effective
route for synthesis of several new peptide building blocks and
development of non- peptide generic drug intermediates and APIs.
GDR ISSUE
The Company successfully completed its GDR issue which opened on 30th
June, 2010 and closed on 2nd July, 2010. Through the said GDR issue the
Company collected US $21.47 Million equivalent to Rs.100 Crores
approximately. The Company has allotted 1,13,00,000 equity shares of
Rs.10/- each against the 11,30,000 GDR issued.(i.e. 10 Equity shares of
Rs.10/- each against every 1 (One) GDR of the Company.
The company proposes to utilize the GDR issue proceeds for the
following purposes.
- Setting up/acquisition of new manufacturing facilities.
- Up-gradation / Modernisation of existing manufacturing facilities.
- Investment in subsidiaries
- Augmenting long term working capital needs
- Part retirement of high cost debt
- To meet the capital requirements of ongoing research and process
development.
- Any other use, as may be decided by the management for the purpose of
expanding its business and increasing the top line and bottom line by
introducing the new products.
FCCB /ADR / GDR/ CONVERTIBLE SECURITIES :
To meet with the long-term capital requirements of the Company for its
proposed expansion globally, it is proposed to issue various securities
to the Promoters and others, subject to the approval of the members
and the Statutory Authorities. The required details of the proposal
of augmenting the long-term capital requirements are provided in the
Notice convening the ensuing Annual General Meeting along with the
Explanatory Statement providing the required details, as per SEBI
( Issue of Capital and Disclosure Requirements) Regulations, 2009.
INDUSTRIAL RELATIONS
Your Directors are pleased to inform you that the relations with
employees including workmen at all levels continue to be warm and
cordial. The Directors place on record their appreciation of the
devoted services rendered by the employees.
PERSONNEL
The Board of Directors would like to place on record its deep
appreciation for rendering impeccable services to every constituent of
the Company by the employees at all levels. Industrial Relations
continued to be cordial throughout the year at all locations.
Particulars of employees required to be furnished u/s 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 are given in the annexure attached and forms part of the
report.
DEPOSITS
The Company has not accepted any deposits during the year within the
meaning under Section 58A of the Companies Act, 1956.
CORPORATE GOVERNANCE - Clause 49 of the Listing Agreement.
Your Company has complied with all the recommendations of the Corporate
governance code as provided in Clause 49 of the Listing Agreement. The
compliance report as recommended, is provided elsewhere in this Annual
Report along with a Certificate of Compliance from the Practicing
Company Secretary.
DIRECTORSÃ RESPONSIBILITY
STATEMENT AS PER SECTION 217(2AA) OF
THE COMPANIES ACT, 1956
In accordance with Section 217 (2AA) of the Companies Act, 1956 the
Directors of the Company hereby state that :
- That in the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanations
relating to material departures, if any;
- That the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so 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 of the
Company for that year;
- That Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the companies Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities; and
- That the Directors have prepared the accounts for the financial year
ended March 31, 2010 on a Ãgoing concernà basis.
ACKNOWLEDGEMENTS
Your Company wishes to place on record the strong support and interest
from all the Shareholders in both retail and the institutional segment.
Your Company wishes to place on record the appreciation of continued
co- operation support and patronage received from all other
stakeholders including government, bankers, suppliers and customers.
Your Directors also wish to place on record their appreciation of the
service rendered by all employees of the Company.
Cautionary note:
The statements forming part of the Directors report may contain certain
forward looking remarks within the meaning of applicable securities
laws and regulations. Many factors could cause the actual results,
performances or achievements of the Company to be materially different
from any future results, performances or achievements that may be
expressed or implied by such forward looking statements.
for JUPITER BIOSCIENCE LIMITED
Venkat R. Kalavakolanu
Chairman & Managing Director
Place: Secunderabad
Date : July 02, 2010
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