The service income comes from marketing services and clinical testing carried out for other parties. The company, which holds its 48th annual general meeting on Monday in Mumbai, says it retained the 5th position in the Indian pharma industry, according to independent sales audit data compiled by ORG. Six Pfizer products are ranked in the list of top 250, with Terramycin and Protinex being market leaders in their segments. Pfizer posted a service income of Rs 30.36 crore in the year to November 30, 1998, against Rs 23.22 crore in the previous financial period, which was of eight months to November 30, 1997.

In 1998, gross profit wasRs 18.87 crore, against Rs 20.59 crore for the eight months to November 30, 1997.

Interest and miscellaneous income dipped, adding up to Rs 7.07 crore, against Rs 4.85 crore for the eight months to November 30, 1997 (Rs 7.31 crore annualised).

Pfizer's contingent liability list includes guarantees of Rs 2 crore given to banks on behalf of third parties, Rs 8.88 crore in respect of excise and customs related matters and Rs 6.53 lakh in respect of an income-tax appeal.

Though sales from operations increased by over 9.9 per cent on the previous year, gross profit dipped by 39 per cent in 1998 compared with the annualised 1997 figure.

The directors' report notes that, against the earlier held belief that pharmaceuticals were a recession-proof industry, the continued slowdown has affected the growth of the industry. Pfizer's sales from operations increased to Rs 233.43 crore in the year to November 30, 1998, from Rs 141.60 crore (Rs 212.4 crore annualised) in the previous fiscal.

However, gross profitdipped to Rs 18.87 crore from Rs 20.59 crore (Rs 30.89 crore annualised) in the previous year. Pfizer earned an interest income of Rs 2.79 crore of which its fully-owned subsidiary Duchem Laboratories Ltd paid Rs 2.41 crore. The pharma major is fast moving towards being a debt-free company, by slashing its unsecured loan component.

Interest pay-out came down to Rs 2.10 crore from Rs 1.60 crore (Rs 2.41 crore annualised) in the previous fiscal. This is mainly on account of insignificant unsecured loan component of Rs 1.26 lakh to November 30, 1998, against Rs 20.02 crore in the previous accounting period.

The company had to make Rs 2.38 crore provision towards doubtful sundry debts during 1998. Also another Rs 1.53 crore provisioning was made towards doubtful loans. Pfizer's auditors, AF Ferguson, have pointed out that the company provided Rs 1.19 crore advance to a supplier for the purchase of raw materials. As the party is yet to repay the advance, the company has initiated legal proceedings and thebalance of Rs 1.19 crore has been fully provided for.