Annual Report 10-11 - Elder Pharmaceuticals Ltd.

28 th Annual Report2010 - 11Company OverviewStrategic ReviewBOARD AND MANAGEMENT REPORTSFinancial StatementsEuropean as well as CIS countries. The manufacturing unitin Bulgaria is propose manufacturing products for the Eastern European, CIS andother markets. The distribution business in Bulgaria has started countries which hitherto were distributed within Bulgaria.The Dubai WOS has also entered into a 50 : 50 joint venture inSyncro Health Limited, Guernsey, which is engaged in webmarketing of certain neutraceutical products. Guernsey offersby Syncro Health Limited competitive as compared to buyingwill do well in the years to come..The Company continues to hold it’s investment in the Nepal JointVenture. During the recent past there have been certain issues ondecisions taken by the Nepalese partner whereby the Company’sstake in terms of percentage to total capital was reduced from the action taken by the partner and has written to the Ministryof Industry, Government of Nepal, seeking an amicable solutionin the matter. The discussions are going on with the Nepalesepartner as directed by the Director of Industry, Government ofNepal, for arriving at an acceptable solution.The Company had incorporated a wholly owned subsidiary inCyprus by the name ‘Somerta Holdings Co. Limited’. Sinceinception no activity was carried out in the said subsidiary.Application was made for striking the name of the company offthe Register under the applicable Companies Law in Cyprus andthe company was closed on 28 th April 2010.BANKERS AND FINANCIAL INSTITUTIONS:The Directors wish to put on record their sincere gratitude tothe consortium of Banks for working capital comprising State Development Credit Bank Ltd., DBS Bank Ltd. and Bank ofBaroda for their continued and timely support to the Company.The Directors also wish to put on record their sincere gratitude tothe various term lenders for their continued and timely supportto the Company.EXPORT HOUSE STATUS: Vietnam, Nigeria, Georgia, France, Switzerland, Cambodia,Kosovo, Thailand etc. The registration procedures are presentlygoing on in a number of countries such as Kenya, Netherlands,Ukraine, Ethiopia, Ghana, Botswana etc. and once theirto increase.COMMERCIAL PAPER PROGRAMME:The Company continues to enjoy the highest rating of “PR1+”assigned to its Commercial Paper programme by Credit Analysisand Research Limited (CARE) for an amount of ` 105.00 croresfor working capital to be carved out of Working Capital Facilitiesfrom banks. As at 31 st March 2011 the Company had issued such` 85.00 crores and placedthem with investors at the most competitive rates of interest. Thesubscription amount of the Commercial Papers is utilized forearmarking working capital limits.During the accounting year under review standalone CommercialPaper programme of a value of ` 75.00 crores was rated by CAREassigning to it the highest “PR1+” rating. These CommercialPapers are being placed by the Company at the most competitiverates of interest. As at 31 st March 2011 the Company had placed ` 75.00 crores. TheCommercial Paper programme of the Company has helped it inreducing the interest cost.ISO / WHO GMP ACCREDITATION: conforming to ISO 9001 : 2000 as along with the manufactureunits at Pawane, Nerul and Patalganga for development,manufacturing and marketing of pharmaceutical products. TheCompany’s bulk drug manufacturing plant at Patalganga wasupgraded according to ICH Q7A guidelines for manufacturingproducts for the US and UK markets. While the Sela Quiformulations plant of the Company has been accredited for WHOGMP, the said plant is being upgraded for UK MHRA accreditation.The formulations plants at Nerul and Paonta Sahib have alsoreceived WHO GMP accreditation. The upcoming formulationsplant at Langha Road near Dehradun is designed as per US FDAcompliance requirements.DIRECTORS’ RESPONSIBILITY STATEMENT:Pursuant to Section 217(2AA) of the Companies Act, 1956 the and subject to disclosures in annual accounts as on 31 st March2011 and on the basis of discussions with the Statutory Auditorsa) that in preparation of the annual accounts, the applicableaccounting standards have been followed along with properb) that the Directors had selected such accounting policiesand applied them consistently and made judgments andestimates that are reasonable and prudent so as to give atrue and fair view of the state of affairs of the Company at st March 2011 andmaintenance of adequate accounting records for the yearended 31 st March 2011 in accordance with the provisionsof the Companies Act, 1956 for safeguarding the assets ofthe Company and for prevention and detection of fraud and33