BHARAT IMMUNOLOGICALS AND BIOLOGICALS CORPORATION LIMITED
ANNUAL REPORT 2011-2012
Your Directors have pleasure in presenting 23rd Annual Report together with
Audited Statements of Accountants of the Company for the year ended March
The company has turnover of Rs. 4634.19 lakhs during the year 2011-12. The
other income was of Rs. 89.81 lakhs. The other income includes the interest
on short term deposits with scheduled banks and forex gain. There was
expenditure of Rs 4238.48 lakhs against the total income of Rs. 4724
lakhs, Exceptional Items of Rs. 110.44 Lakhs and Deferred Tax of Rs. 660.42
Lakhs during the year resulting into net profit of Rs 1256.39 Lakhs as
compared to the previous year loss of Rs.417.94 Lakhs.
In view of the accumulated losses, your Directors have not recommended any
dividend for the current year.
BIBCOL has established R&D facility for trial batch production of Iron
Folic Acid Tablets and Mineral Vitamin Mix. Further the company has added
Diarrhea Management Kit (Zinc Tablet + ORS) for management of diarrhea
among young children. Additionally BIBCOL has started dialogue with few
NGO`s for supply of Diarrhea Management Kit which consists of Zinc Tablets
and ORS. The Company has also planned to establish facility for Tetanus
Toxoid Vaccine product ion in coming years.
Your company has not accepted/ invited any Deposits from public pursuant to
Section 58A of the Companies Act, 1956 till the end of the year under
There is variation in the composition of Board of Directors during the year
as follows:- Ms. Sheila Sangwan was relieved from the office of Additional
Secretary & Financial Advisor, Government of India, hence office of
Director in BIBCOL vacated.
LISTING OF SECURITIES
The shares of the company are listed with below mentioned Stock Exchanges:
(a) The Bombay Stock Exchange, Mumbai
(b) The U. P. Stock Exchange Association Limited, K anpur.
(c) The Delhi Stock Exchange Limited, New Delhi.
The company has paid annual listing fee to the above Stock Exchanges for
the year 2011-2012.
M/s. Rasool Singhal & Associates, Chartered Accountants have been appointed
as Statutory Auditors of the Company by Comptroller and Auditor General of
India for the period under review. Comments on the observation of the
Auditors`/CAG are given as addendum to Director`s Report and are self-
explanatory and/or suitably explained in various Notes on the Accounts.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
In accordance with the provisions of Sec. 217 (i) (e) of the Companies Act,
1956 and the Companies (Disclosure of particulars in the report of Board of
Directors) Rules, 1988 the required information relating to conservation of
energy, technology absorption and foreign exchange outgo is available at
Annexure and forms an integral part of this report.
PERSONNEL AND INDUSTRIAL RELATIONS:
Industrial and personal relations were more or less satisfactory at all
levels during the year.
PARTICULARS OF THE EMPLOYEES:
None of the employees is drawing remuneration beyond the monetary ceiling
prescribed under section 217 (2A) of the Companies Act, 1956 read with
Companies (Particular of Employees) Rules, 1975 as amended.
DIRECTORS` RESPONSIBILITY STATEMENT:
As required under Section 217 (2AA) of the Companies Act, 1956, the
1. That in the preparation of the annual accounts, the applicable
accounting standards have been followed
2. That the accounting policies selected and applied are consistent and the
judgments and estimate made are reasonable and prudent so as to give true
and fair view of thestate of affairs of the company at the end of
thefinancial year and of the profit of the company for that period.
3. That proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities.
4. That the annual accounts have been prepared on a going concern basis.
Pursuant to Clause 49 of the Listing Agreement, (a) Report of the Directors
on the practice prevalent on Corporate Governance in the company and (b)
Practicing company secretary`s Certificate on compliance of mandatory
requirements of Corporate Governance are given in the annexure to this
Your Directors wish to place on record their sincere appreciation and
gratitude to the Company`s Principal, Investors, bankers and all business
associates for their unstinted support and valuable guidance and record
devoted services rendered by all categories of employees during the year.
Place: Bulandshahr For and on behalf of Board of Director
Date : 31.10.2012
ANNEXURE TO DIRECTOR`S REPORT
Information as required under section 217 (1) (e) read with the Companies
(Disclosure of Particulars in respect of Board of Directors ) Rules , 1988.
(A) CONSERVATION OF ENERGY:
Form of Disclosure
Power and Fuel Consumption
1. Electricity Particulars:
Particulars 2011-12 2010-11
(a) Units Purchased 1355040 9,51,883
Total Amount (Rs. In Lacs) 10677934 63,71,935
Rate/Unit(in Rs.) 7.80 6.69/-
(b) Unit Generation-Own
diesel generator 46080 46150
HSD Used (Unit & Rs. In lacs)
18000 Lts. 7.73 3.13
Unit per liter of diesel 2.56 5.81
Oil/Cost/Unit (in Rs.) 16.77 6.79
2. Light Diesel Oil /HSD
(Used for stream Production):
Particulars 2011-12 2010-11
Quantity (K Lts.) (Used in Boilers) 65.99 3.94
Total Amount (Rs. In Lacs) 30.77 1.41
Average Rate (Rs./K/Ltr.) 46625 35730
3. Consumption (Per one Lac Doses of Oral Polio Vaccine)
Source of Standard Current Year Previous Year
Energy (If any) 2011-12 2010-11
OPV ZINC OPV ZINC
Electricity 4655 Units 1196597 158453 No 223642
Light Diesel Oil 520 Lt. 22520 0 No 0
Others None 0 0 No 0
PARTICULARS CURRENT YEAR PREVIOUS YEAR
(A) Technology Absorption NIL NIL
(B) Foreign Exchange
Earning 46.41 NIL
(C) Foreign Exchange
Outgo (Rs. in lakhs) 4965.20 5.50
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Industrial Structure and development
BIBCOL was established for supply of Oral Polio Vaccine for meeting
National Immunization Programme of Government of India. Commercial
production was started in the year 1996 and since then contributed
significantly to the National Immunization Programe. In the year 2006, the
facility was up graded to meet the WHO cGMP & revised schedule M of Drugs &
To meet the current requirement of Oral Polio Bio-valent Vaccine BIBCOL has
geared up and has obtained permission for trial batch production of bOPV
and shall obtain the manufacturing license in due course of time. For
future growth of BIBCOL, two more products have been added viz, Zinc
dispersible tablet and Diarrhea Management Kit.
Segment-wise or product-wise performance
To strengthen the R&D, BIBCOL has taken up two more projects of Iron Folic
Acid and Mineral Vitamin Mix and the work is under progress.
Outlook-opportunities, threats, risk and concerns
Opportunities: Gaining importance of Infant health among public, provide an
opportunity for new health care products. BIBCOL is targeting the segment
of malnourished children and has planned for development of products.
Threats: Growth of private manufacturers, dependency on foreign body for
bulk of OPV, frequent change in foreign exchange rates, reluctance of the
Ministry of Health & Family Welfare to award preferential supply order to a
PSU that was established to support government polio eradication programme,
abolishment of purchase preference to PSUs are perceived to be treats.
Risks: End of product cycle of OPV and low market for zinc as relatively
new product in diarrhea management.
Concerns: Perpetual import of bulk vaccine of OPV, non- availability of
technology for new products like Injectable Polio Vaccine.
Internal control systems and their adequacy
The Company has established systems providing adequate internal controls,
commensurate with its size and nature of the business. Such systems have
been appropriately documented.
Financial performance with respect to operation performance
Effective cost controlling process had been adopted to reduce Sundry
Expenses as could be appreciated from the Profit & Loss Account.
The Company regards its human resources amongst its most valuable assets.
It proactively reviews and evolves policies and process to attract and
retain its substantial pool of scientific, technical and managerial
resources and work force through a work environment that encourages
initiative, provides challenges and opportunities. However, all employees
need to be updated for recent developments and quality standards through
training to improve their competence. Regular training programmes were
introduced for the employees. M/s Bharat Immunologicals and Biologicals
Corporation Limited has sought help of Department of Biotechnology (DBT),
Government of India to strengthen Human Resource Development.