Board of Directors - Opto Circuits

COMPANY PERFORMANCE
Your company has recorded yet another year of good performance
during the year under review. The total revenue at Rs.1184.48
million for the year ended March 2006 as against Rs.783.75 million
for the same period during the previous year higher by 51% and profit
at Rs.350.62 million as of March 2006 as against Rs.190.43 million
for the same period during the previous year million represents as
increase of 84% over the previous year.
DIVIDEND
Considering the performance of the Company, your Directors' are
pleased to recommend an Dividend at the rate of 40% for the year
ended 31st March 2006 on the equity share capital, which amounts
Rs.4.00 per share.
MANAGEMENT DISCUSSION AND ANALYSIS
Executive Summary
Your Company is engaged in the Design, Development,
Manufacturing, Marketing and Distribution of Medical Electronic
Devices and Medical monitoring products employing Sensing and
Detection techniques. In the past fourteen years the company has
established itself as a leading supplier of noninvasive OEM Optical
sensors in the field of Patient monitoring systems.
The company has received US FDA approval for its SpO2 products. It
has also added two new products to its patient monitoring range.
32
DIRECTORS REPORT
st
Your Directors have pleasure in presenting their report on the business and operations of the company for the year ended 31 March 2006
Financial Results Year Ended
(Rs.in millions)
Year Ended
31.03.06 31.03.05
Total Revenue 1184.48 783.75
Profit before Depreciation 363.94 207.02
Depreciation 12.35 12.88
Profit before Tax 351.59 194.14
Provision for taxation 1.32 2.50
Prior year adjustments 0.34 (1.20)
Profit for the year 350.62 190.43
APPROPRIATION
Proposed Dividend 123.23 62.55
Tax on Dividend 17. 28 8.17
Surplus carried to Balance Sheet 210.11 119.71
The company is also expanding into new geographical territory with
offices established in Dubai and Germany. Our world wide
distribution network helps market our products globally.
COMPANY OVERVIEW
The group comprises Opto Circuits India Ltd, a public listed
company and Advanced Micronic Devices Limited, also a listed
company and Medi Aid Inc, USA. Opto Circuits India Ltd has been
steadily growing at an annual rate of approximately 36% and is a
leader in Medical Non-Invasive sensors. The combined revenues of
Opto and Advanced Micronic Devices Ltd, is Rs.1454.49 million (US
$ 32.40) million.
During the year your company also has acquired Eurocor Gmbh,
which is in the business of manufacturing Cardiac and Peripheral
stents with a market size of 10 Billion USD which is growing at the
rate of 15% annually.
After the acquisition Eurocor received the CE approval for its Taxcor
Drug Eluting Stents. The company has also acquired a 100% stake in
Altron Industries during 2004-05 which is engaged in providing
Electronic manufacturing services at its state of art manufacturing
facility at Electronic City, Bangalore.
During the current year, your company also had a very successful
follow on Public offering of 4 million shares at a price of Rs.270 per