Chairman & Managing Director's Message - ( 2009 - 10 )
Chairman & Managing Director's Message :
Welcome to 4th Annual General Meeting of "Oriscon Biotech (I) Pvt Ltd." I would like to take this opportunity to briefly address you on the position of your company .
It has been a very eventful year for the company I say this confidently because:
Your Company has a robust financial position considering the fact that capital of the company has grown into five folds within a short span of four years( From INR 40 Lacs to INR 2.05 crores) ,which provides the means to deliver the strategy. Investment return for the year has been satisfactory as it is evident from the fact that your Company has already paid a return of 14% to all the Promoters / Members as per the respective agreements according to their share holdings.
In the year under review, our 4th consecutive record result , your company produced an increase in Profit after Tax attributable to Promoters/ shareholders. Capital revenue of the company increase from INR1.25 crore in the year 2009 to INR 2.05 crore. as on 31st March 2010.
While it is still early days of organisational development, despite that your company is making solid progress.
In the past your Company has reviewed many proposals forwarded by Promoters/ Members for early launching of our business in the Bihar & Jharkhand Market with our own Brand instead of giving emphasis of Generic Institutional Business . To date these opportunities of marketing in Bihar and Jharkhand have not been viable enough without creating an additional corpus fund of INR One Crore. Even though your company's Bihar & Jharkhand Marketing is yet to attribute any value at all to this strategy or the business we have built up to date, we remain very focused on the key priorities of Institutional Generic Business that will ultimately unlock shareholder's value.[ As it transpire with the facts that your Company's present value of equity share of INR 10 increases to INR 60 ]. It seems that another record profit was well received by all in a generally mixed year of economic wellbeing.
Your Company has a clear line of straight forwardness without any influence while making strategic decisions keeping in mind the above all benefits of the organisation . We all must keep in our mind that any person what so ever his position might be is not above than the organisation itself . In the light of above stated facts and circumstances your company has decided to delete the name of five Promoters from the Register of the Company after providing a lot of opportunity to all of them , who were unable to deposit the required agreement amount according to the number of shares subscribed by them. In the past your company has sent several reminder to all of them , but unfortunately they all had not responded positively and a decision was taken by the Board of Directors to impound the share allotted to them in the interest of the company.
I would like to thank all the loyal and dedicated people who put forwarded their faith and whole hearted effort for the development of the company since its inception . You always have to remember that any Professional Business Organisation may not progress in an environment of mistrust and criticism . As you know to err in decision making is the part and parcel of human nature, but frankly admitting it will pave the way of confidence & success .
I am please to say that despite the change in total Promoters setup ( Since by the order of BOARD OF DIRECTOR Five of them made to quit in the last financial year ) has not prevented your company from continuing to pursue the strategy nor altered the belief that company will ultimately be successful in the years to come. This is the last opportunity provided by the company to those Promoters/ Members to clear their called for money towards due amount in lieu of subscribed shares and investment bond by way of depositing it in the company's fund otherwise in future they may not be able to continue with this company . In keeping with company's re-structuring exercise of moving towards its quest of building a committed force of members for this company it is virtually impossible to carry those promoters forever who failed miserably in their monetary commitment as agreed upon by them.
Ministry of Corporate Affairs recently released recommendations for improvements in Corporate Governance for Indian companies . I should point out that no rules or regulations can prevent some incompetent people from inflicting damage to any company. Directors and company executives must be honest, diligent, committed and dedicated at all times in the exercise of their important duties of planning direction, control and the setting of a good example generally .I can say that your company has always taken Corporate Governance seriously thus producing significant benefits to members/promoters. We have always made sensible changes based on experience and good practice thus protecting the company from undue risk as a matter of course. This is why we strengthened our Internal Audit team during the year.
Our objectives, thoughts, plans, actions and directives remain to deliver maximum returns to the shareholders by rationalising elements of our activities, building on our existing competencies and improving the capabilities of staff at every level. Recently, we have again reviewed our Institutional Business activities and decided to upgrade this capacity. In the absence of expected revenue , the plan for starting marketing in BIHAR & JHARKHAND has been delayed only because of the non availability of free cash flow which is restricted only due to our commitments in the Institutional supply of GENERIC MEDICINE in a long term contract basis.
Certainly, the competition is intensifying in all activities as the generic medicine business of institutional supply progresses towards market dominated by big pharmaceutical players. Presently our activities are generally on institutional supply and hope that in next year the present annual figures should surpass those for current year.
Finally, may I express my gratitude to my fellow directors for their guidance, sincerity and application during the past year .Your company intend to keep it so in future also.
Thank you for your obvious interest indicated by your presence here today. I hope you approve of this year's Annual General Meeting 2010.
For and on behalf of the Board
Priya Ranjan Shrivastava ( Chairman & Managing Director)
E-mail : priyaranjan.shrivastava@gmail.com
priyaranjan2007@yahoo.co.in