Annual Report 2006-07
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Annual Report 2006-07 Board of Directors (As on 24th July, 2007) R & D Centers Promter-Directors • Ambala-Chandigarh Highway Mr. Soshil Kumar Jain Chairman Lalru – 140 501, Punjab, India Mr. Ravinder Jain Managing Director Mr. Rajesh Jain Joint Managing Director • B-1/E-12, Mohan Co-operative Indl. Estate Mr. Sandeep Jain Joint Managing Director Mathura Road, New Delhi – 110 044, India Mr. Sumit Jain Director - Operations & Projects • A-224, Okhla Indl. Area, Phase – I Non-Executive Directors New Delhi – 110 020, India Mr. R.L. Narasimhan Director Mr. N.N. Khamitkar Director • Plot No.E-4, Phase II, Indl. Area Mr. Sunil Kapoor Director Mohali – 160 055, Punjab, India Mr. M.L. Kalra Director Mr. Gurmeet Singh Director • Plot No.Gen/73/3, T.T.C. Indl. Mr. K.M. Lal Director Estate, Mahape, Navi Mumbai – 400 710, India Dr. A.N. Saksena Director Statutory Auditors Company Secretary M/s. S.R. Batliboi & Co. Mr. Vinod Goel Chartered Accountants, New Delhi Registered Office Cost Auditors • Ambala-Chandigarh Highway M/s. J.P. Gupta & Associates Lalru – 140 501, Punjab, India Cost Accountants, New Delhi Corporate, Administrative & Registrar & Transfer Agents Secretarial Office M/s. Skyline Financial Services Pvt. Ltd. • B-1 Extn./G-3, Mohan Co-operative Indl. Estate 246, Sant Nagar, 1st Floor, Main ISKCON Temple Road, Mathura Road, New Delhi – 110 044, India East of Kailash, New Delhi – 110 065 Mumbai Office Banks • 201, `Samarpan’, New Link Road, Chakala Industrial Development Bank of India Ltd. Andheri (East), Mumbai – 400 099, India Indian Overseas Bank State Bank of India Works State Bank of Mysore • Ambala-Chandigarh Highway State Bank of Travancore Lalru – 140 501, Punjab, India Union Bank of India UTI Bank Ltd. • B-1/E-12, Mohan Co-operative Indl. Estate Mathura Road, New Delhi – 110 044, India • A-241/242, Okhla Indl. Area, Phase – I New Delhi – 110 020, India • Malpur, Baddi, Tehsil Nalagarh, Dist. Solan Himachal Pradesh – 173 205, India Chairman’s Message I look back at the last three years with a sense of I am pleased with the commitment that satisfaction and pride during which we have built a Panacea Biotec has shown in all aspects of operations, strong foundation to base our future direction. financial performance and corporate governance. It is expected to maintain the highest standards of This year has been full of significant achievements for integrity, discipline and governance while providing your Company, a 3rd successive year of record earnings superior returns to shareholders. & profitability. The performance has been in line with our strategy, where we have made significant progress To achieve our highest potential and to gear ourselves in meeting our long-term objectives. for the changing scenario, we have changed our corporate identity. This exercise has helped us As we now enter into one of the most exciting rearticulate our potential and goals. The new corporate and promising phases of our growth, cognizant identity will instill a high level of aspiration for us to of changes in the global market place and the emerge as a global health management company. Our opportunities it offers, we are confident that we have core values- Innovation, Pioneer, Integrity and Humane the resources and the determination to successfully would always guide us in taking the right decisions convert our internal capabilities into business and and lead us to our Goals. A new chapter is unfolding in operational achievements. Panacea Biotec. We will continue to focus on driving productivity and Your constant support has always been a great performance across all our business segments. As we motivating factor for us. Your confidence in us enter into global markets, meeting economic, technical will augment our efforts in finding better ways to and IPR challenges, we will endeavour to increase the do things, innovate and effectively leverage our magnitude of our business and scale new heights year knowledge and expertise in healthcare management. after year. I am glad that our methodology of steering business has received positive recognition and support I wish you all a very happy, fruitful and prosperous from our customers, staff and stakeholders. year ahead. Soshil Kumar Jain Managing Director’s Message Throughout its inception, Panacea Biotec has unwavering focus on our customers’ needs, ethical indeed come of age in a great way. We have behaviour at all levels and recognition in the witnessed an inflexion point in growth in net healthcare sector as a market leader. My confidence profit and cash earnings. It is indeed a matter of is based on our people and their adherence to a great pride to watch a continuous, sustained & methodology, a culture and a work ethic that well creditable performance. serves the interest of all our stakeholders. We have earned our reputation as innovators in We are indeed passionate about healthcare and Research & Development and marketing strategies compassionate about people. for developing high quality preventive and treatment therapies for health management. Our efforts would Having attained leadership in the domestic markets, always be to bring Panacea Biotec beyond the highest we now aspire to move fast into the global markets. quality of healthcare management. Our energetic and Our new Corporate Identity would augment our talented employees would constantly endeavour to strategic move to enter the global markets, through do that. collaborations, joint ventures and acquisitions in years to come. We have always believed in collaborative approach and our collaborations are based on a firm platform of Before concluding, I would like to express my trust, transparency and mutual benefits. admiration, appreciation & affection to all and thank all my fellow directors and the company’s staff for their I would like to accentuate the Company’s goal of dedication and relentless efforts over the year. I would providing sustainable and satisfactory shareholders’ also like to acknowledge the continued support of all returns which can only be achieved through an our customers, partners and stakeholders. Ravinder Jain Performance Highlights & Growth Gross Turnover Growth in Profitability (Rs. in million) (Rs. in million) 8,398 2,299 2,091 1,468 2,833 547 406 917 249 123 92 81 1996-97 2001-02 2006-07 1996-97 2001-02 2006-07 PAT PBT EBIDTA Growing Asset Base Growth in Net Worth (Rs. in million) (Rs. in million) 5,384 5,064 1,118 840 302 184 1996-97 2001-02 2006-07 1996-97 2001-02 2006-07 Growing Investment in R & D Growth in Shareholders’ Value (Rs. in million) (Rs. / share) 1,072 81.9 567 505 29.5 23.7 14.7 88 70 68 5.4 5.3 4.2 45 25 1.8 20 1.4 1996-97 2001-02 2006-07 1996-97 2001-02 2006-07 Revenue R & D Exp. Capital R & D Exp. Total R & D Exp. EPS Cash EPS Book Value Contents Setting the Scene 2 Auditors’ Report 70 • Financial Highlights • Glowing Highlights of the year Financial Statements 72 • Our New Corporate Identity • Balance Sheet • Profit & Loss Account Management Discussion & 8 • Schedules to Balance Sheet and Analysis Report Profit & Loss Account • Industry Structure and Developments • Cash Flow Statement • Enter the great Enterprise – Panacea Biotec • Statement u/s 212 in respect of Subsidiary Companies • Business Segments • Pharmaceutical Formulations Consolidated Financial Statements 102 • Vaccines • Auditors’ Report on Consolidated • Manufacturing Facilities Financial Statements • Research & Development • Consolidated Balance Sheet • Joint Ventures, Subsidiaries, Collaborations • Consolidated Profit & Loss Account and Tie-ups • Schedules to Consolidated Balance Sheet and • Financial Performance Profit & Loss Account • Opportunities & Outlook • Consolidated Cash Flow Statement • Future Growth Drivers • Risks, Challenges & Threats Annual Report of 126 Subsidiary Companies • Corporate Social Responsibility • Radicura & Co. Limited • Best On Health Limited Directors’ Report 44 Corporate Governance Report 56 Panacea Biotec • Annual Report 2006-07 1 Setting the Scene • Panacea Biotec is the 2nd Largest Vaccine • Company’s Brands reach more than producer in India 35 countries globally • 3rd Largest Biotechnology Company in India • Played a key role in eradicating polio cases by (ABLE Survey 2006) supplying more than 4 billion doses of Oral Polio Vaccine to Govt. of India & UNICEF • One of the six companies in the World, pre-qualified by WHO for Oral Polio Vaccine • Millions of patients enjoying happy & healthy life through our well established brands in niche • One of the nine companies in the World, therapeutic areas like pain management, diabetes pre-qualified by WHO for Hepatitis B Vaccine management, organ transplant • First Indian company to develop and launch • Stupendous contribution to Shareholders’ value innovative combination vaccines viz. Ecovac4 (Hep. B + DTP), Easyfour (Hib + DTP) and Easyfive • Over 250 Scientists working in 4 state-of-the (Hep. B + DTP + Hib) in India. art R&D Centers recognised by DSIR, Ministry of Science & Technology. • Among top 50 Pharmaceutical Companies in India – ranked 47th as per ORG IMS June’07 • Production facilities complying with International Standards • 19 product patents valid in more than 60 countries world wide • A family of around 2,800 people working relentlessly in improving quality of life of billions of • 630 patent applications filed, 211 granted globally people across the globe as on 31.03.2007 • Patient education & Public awareness focused portal www.bestonhealth.com 2 Panacea Biotec • Annual Report 2006-07 Financial Highlights (Rs. in million)