According to details laid down in its latest annual report, Cipla says that the resolution will "enable the directors to buy back the shares of the company, if so required, and reissue them if so permitted under the law, subject to such terms and conditions as may be stipulated under the Act or rules and regulations made thereunder."

In anticipation of an amendment to the Companies Act, 1956, allowing buyback or re-enactment thereof, the company proposes to introduce a new article in its Articles of Association. Article 64 of the Articles of Association currently prohibits the company from buying its own shares and applying any of its funds for the purchase of any shares of the company.

Meanwhile, the company says thatit is gearing up to take on the challenges of the future by "consolidating and rationalising its activities". Cipla is banking on its technical strengths, its skilled workforce, strong research and development (R&D) base and strategic alliances to maintain a steady and structured growth.

The company's bulk drugs division has developed sophisticated new processes for commercial manufacture of a range of new products including anti-depressant moclobemide, anti-ulcerant pantoprazole sodium sesquihydrate, and anti-asthmatic formoterol fumarate.

The company has introduced over 18 hi-tech products during 1997-98, including a therapeutic advancement in hypertension management, a formulation for protection of obese diabetics, a breakthrough in osteoporosis treatment and a novel rehydration effervescent tablet.