Dear
Shareholders,
It gives me great pleasure to inform you
that the Company has successfully concluded Financial Year 2005-06
by achieving turnover of over Rs.150 cr
and net profit of Rs.9.68 cr. It is rather unfortunate thatwe
are unable to meet personally and therefore
I would like to share some of the important achievements of the
Company in the recent past and the future
plans.At the Annual General Meeting I have briefed the Members
present about the developments which took
place in your Company during the last year. I would like to take
this opportunity to summarize the same
for you.
POST MERGER
After Amalgamation of your Company with
CareUnipac Pvt. Ltd., the accumulated losses of theCompany has
been wiped out and now the networth of
your Company is positive.
SYNERGY IN OPERATIONS
Your Company has reached an arrangement
withTwilight Mercantiles Ltd. Mumbai based Pharma Company for
joint marketing of each others' products
in each others' territories. Your Company will enjoy the benefits
of synergy since marketing efforts will
get a big boost with increase in the marketing strength Synergy
- Marketing staff of both Companies have
already started promoting each others' products in extended geographical
areas
The End Results would be:
Newer products and newer territories
Export potential in over 40 Countries.
600 StrongFieldForce and servicing
one lac Doctors.
Better distribution (1000 stockists
will ensure availability
Strong presence throughout India.
Strong financial resource base.
To take advantage of marketing infra-structure,
it was decided to change the name of the Company as TWILIGHT
LITAKA PHARMA LIMITED. The Members
have in the Extra Ordinary General Meeting held on 17th June,
2006 accorded their approval to the said
change. Subsequently, theRegistrar of Companies accorded their
approval and with effect from 4th July,
2006 the name of the Company has been changed from LiTaka Pharmaceuticals
Ltd., to TWILIGHT LITAKA PHARMA
LIMITED.
CHANGE IN SHARE CAPITAL
In pursuance of the Scheme of Amalgamation,
your Company was required to allot 11,72,32,500 Equity Shares
to the Shareholders of Care Unipac Pvt.
Ltd. Hence the authorized Share Capital was increased from Rs.20,00,00,000/-
to Rs.21,50,00,000/-. After the completion of all the relevant
formalities the Directors of your Company,
on 22nd June, 2006 allotted 11,72,32,500 Equity Shares to the
Shareholders of Care Unipac Pvt. Ltd. Subsequent
to this allotment, the Paid-up Share Capital has been increased
from Rs.9,54,87,850/- to Rs.21,28,12,850/-.
REDUCTION IN SHARE CAPITAL
The Members are also aware that in the
Extra Ordinary General Meeting held on 4 March, 2006, the Shareholders
have accorded their consent for reduction
of Share Capital by reducing the face value from Rs.10/- to Rs.5/-.
Your Company has already filedPetition
in the Hon'ble BombayHigh Court, for its approval to the said
Scheme of Reduction of Share Capital.
ThePetition is at a final stage and we expect that the Court will
approve the said Scheme shortly. After
the approval is received and the necessary listing formalities
are completed, the Company will give effect
to the capital reduction scheme and thereafter the paid-up equity
capital of your Company will stand reduced
to Rs.10,64,06,425 divided into 2,12,81,285 Equity Shares of Rs.5/-
each fully paid.
PERFORMANCE OF THE COMPANY
From the Annual Report for the Financial
Year 2005-06, you must have noticed that Company's overall performance
has improved. The turnover of your Company
increased to Rs.157 cr and the Company has earned Profit after
Tax of Rs.9.68 cr. Registration of products
in export markets in about 40 countries has started materializing
which has given a big boost to the export
turnover. The direct exports have increased from Rs.3 cr to Rs.8
cr in 05-06 and are expected to reach
Rs.18 cr in the current year. Your Company's arrangement of marketing
operations with Twilight Mercantiles Ltd.,
growth in Contract Manufacturing and sourcing of Export Orders
has reaped rich dividend. It is expected
that your Company will grow at over 40% in the current Financial
Year in all segments, namely, Contract
Manufacturing, Domestic and Exports.
ENHANCEMENT IN THE MANUFACTURING
CAPACITY
You are aware that at present your Company
is having threeWHO-GMPapproved manufacturing facilities in Maharashtra
with adequate capacities to achieve Rs.500 cr turnover. In addition
to this Twilight Group is setting up one
more manufacturing unit at Himachal Pradesh which will be dedicated
for the manufacturing operations of your Company.
Your Company will enjoy huge benefits due to excise exemptions
after the production commences at Baddi,
Himachal Pradesh.
FIRST QUARTER UNAUDITED FINANCIAL
RESULTS
First Quarter unaudited Financial Results
of the current fiscal has been very encouraging. The Company achieved
turnover of over Rs.42 cr and has earned
a net profit of Rs.2.89 cr. The Management is confident that the
Company will maintain the same pace of
growth throughout the year. Now your Company has wiped out all
accumulated losses and as such as per
the Company Law provisions, your Company is entitled to declare
dividend. Accordingly, your Company may
enter on the list of dividend paying companies after its financial
position is consolidated.
IMPROVED EARNING PER SHARE
As on 31.03.2006 on the basis of increased
paid up capital, the basic and diluted EPS, of Rs.10/- is Rs.4.49
as compared to Rs.0.79 as on 31.03.2005.
It is to be noted that after giving effect to the Scheme of Reduction
of Share Capital EPS will be Rs.10.01.
In conclusion I can assure you that the potential of your Company
is extremely good. Amalgamation and Reduction
of Share Capital have improved the net worth of the Company and
have wiped out the accumulated losses.
The marketing arrangement with Twilight Group will have long term
positive impact on the overall performance.Your
Company, after merger, is ranked in the top 100 in the Country's
pharmaceutical formulations market. I
am confident with continued excellence in performance, your company
will position itself amongst the first
50 pharma companies within next couple of years.
I express my sincere thanks to you for
the support extended to the Management, particularly when the
Company was passing through rough weather.
I am thankful to all of you for the patience you have shown and
for the belief in us. I am sure that this
will pay rich dividend in the future.
With warm regards,
GOPAL RAMOURTI
Chairman of theA.G.M.
held on 3 August, 2006 |
