a. Industry Structure and Developments:
Global Pharmaceuticals industries:
The global pharmaceutical industry has risen to the challenge of the
COVID-19 pandemic by developing effective vaccines and therapeutics and overcoming
unprecedented supply chain disruptions. This is a true testament to the industrys
adaptability and resilience in the face of a global health crisis. While the industry is
expected to return to pre-pandemic growth rates by 2024, uncertainties related to viral
variants, vaccine distribution, economic and geopolitical factors may impact future
growth.
Major technological shifts have encouraged the rapid adoption of
advanced analytics in the pharmaceutical industry. Advanced analytics provide insights
into customer behaviour, help in clinical trial design, and Optimise the supply chain,
driving growth and productivity across the pharma value chain. The use of digital
technologies such as telemedicine and artificial intelligence (AI) enables remote
diagnosis, personalized medicine, and drug discovery. These digital technologies and
advanced analytics are expected to play a significant role in increasing the adoption of
modern medicine.
Growth in the pharmaceutical industry in developed markets is expected
to be led by the introduction of new drugs. Specialty medicines are forecast to account
for a significant portion, exceeding 55% of total spending in developed markets in 2027.
However, pharmaceuticals in developed markets face challenges such as biosimilar
competition and increasing number of patent expires. Despite these challenges, the
increasing adoption of specialty medicines is expected to persist, particularly in
oncology and immunology.
Real Estate Sector:
The post-pandemic picture for real estate sector is a paradigm shift
from before. The pandemic has reinstated the importance of home ownership and the attitude
of customers towards residential properties has seen a substantial shift. Preference for
larger sized apartments, inclination towards reputed developers and a rising demand for
townships projects are just some of the emerging trends.
Fiscal 2023 was a milestone year for the Indian Real estate sector with
all-time high sales. The sector showed healthy growth on the back of a high base achieved
in fiscal 2022. The demand pick-up seen in the second half of fiscal 2021 has continued
into fiscal 2023 and is expected to continue in fiscal 2024. The number of launches are
also increasing and touched a decadal high last year, inventory is continuing to show a
decline or stability across Tier-1 cities, indicating a healthy demand momentum.
While the residential segment witnessed strong performance, commercial
office sector continues to remain sluggish with demand not yet reaching the pre-pandemic
levels. The challenges to office space demand has been the work from home trend and
slowdown in global economic growth. The global slowdown directly impacts sectors like
IT/ITeS which is the major occupier of office space in India. Retail real estate sector
though, is back to full swing with consumption recovering beyond pre-pandemic levels and
should continue the momentum.
b. Opportunities and Threats:
Your Company is engaged in trading of pharmaceuticals products mainly
medicine in the territory of Gujarat. The major distribution network of the Company is in
Ahmedabad region.
Company will be able to place itself in a strong position by expanding
strategically, increasing its trading & Distribute capacities and enhancing capacities
across the organization.
The highly fragmented Indian real estate sector has been in a prolonged
consolidation phase from the past few years and the pandemic has been one important factor
pushing weaker players out of business. The disruptions in the real estate sector have
ensured that no new player has an easy entry into the sector. As the sector moves towards
fewer big players in each region, the consolidation presents a lucrative opportunity for
the existing real estate developers to cater to the rising housing demand.
The Company has one wholly owned subsidiary company and that subsidiary
company is engaged in business of trading of pharmaceuticals products including generic
and non-generic medicine and holds distribution rights of 4 companies for various products
namely Alkem Laboratories Ltd, Nectar Biopharma Pvt Ltd, Gloria INC and Celebrity
Biopharma Pvt. Ltd. for the territory of Gujarat State.
Our Company will be able to grow with rapidly expanding domestic
market. The Company is looking at different opportunities in untapped markets and also
across a value chain. It plans for alliances with business associates in the market,
giving a huge boost to the selective products that it already deals in.
We are fully conscious of our responsibility toward our customers. Our
efforts are directed toward the fulfilment of customer satisfaction of products. As the
consolidation of this industry gains momentum, the need to develop a dedicated team of
trading & distribute skill assumes urgency and importance.
Favourable macro-economic parameters for India and emerging markets are
likely to ensure reasonable volume growth for pharmaceutical products across these markets
in the long term.
The Company is gaining experience in distribution of pharmaceutical
products and strengthening its network and that will create a good business opportunity in
coming years. Further, the trading and distribution of pharmaceutical products are getting
competitive due to new players, online pharma companies, established pharma manufacturing
companies are also entering into big city markets directly through their own network and
that makes the pressure on margin. Your Company is trying to create its own strong space
so that they can meet with any emerging competition in the sector.
• The Government of India is encouraging use of generic products
through various initiatives. This may have impact on future business strategies of the
Company.
The pharmaceutical industry develops new and effective medication. If
one company creates it, it can patent that product themselves and earn a handsome amount
of profit. This gives the industry a chance to grow.
• This industry is still in its growing phase, according to the
Life Cycle of an Industry. So,it can still go a long way and spread its wings further
apart. So, it can still take control over the market, given the right marketing and
advertising.
• The pharmaceutical industry requires a huge amount of power.
However, to supply this power on a large scale is a problem. As a result, many companies
of the industry dont get enough power to carry out their necessary routines.
• Since globalisation, the rivalling industries are increasing.
Many people are interested in the Ayurvedic industry, homeopathic industry and many others
instead of medicines. This poses a great threat to the pharmaceutical industry.
c. Segment wise Performance:
Your company is primarily carrying on pharmaceutical business along
with Manufacturing of metal furniture and trading of building materials and construction
activities. 99.77% turnover of the Company is from Pharmaceutical business and hence,
there is no need of reporting segment wise performance.
d. Recent Trend and Future Outlook:
Your Company is continuously working on strengthening its capabilities
and fundamentals and driving-out potential inefficiencies. It has made consistent efforts
for executing job order work. We are also planning to use E-commerce which will create new
footprints. Major innovations and technological advancements will also aid to increase the
magnitude and growth of our company. The pharma industry is predicted to grow
substantially in the decades ahead.
Post-pandemic, developers have moved away from the traditional way of
doing business and rightly focused on end-user customer demand with a strong focus on
innovation and digital transformation. We believe FY 2023- 24 will continue the healthy
sales momentum backed by solid structural foundation, sustained demand and relatively
affordable albeit somewhat higher housing loan rates. Financially strong and reputed
developers with superior execution capabilities stand to benefit disproportionately from
the ongoing cyclical upturn. We look forward to adding a large number of projects to our
portfolio in FY 2023-24, which is amongst our top priorities and which will enable us to
grow rapidly going ahead.
e. Risks and Concerns:
Due to prevailing market conditions and competition, input costs
adverse impact in noticed on your Companys profitability. Your management is aware about
the risk related to the business activity of your Company and has taken proper steps for
identification, monitoring the risk and strengthening the governance framework to achieve
key business objectives. A nascent economic recovery along with rising interest rates
could impact the real estate sector in the near term as cost of housing loans shoots up
and rise in the cost of funding for the developers, who are already facing margin pressure
due to commodity cost inflation.
F. Internal Control Systems and their Adequacy:
Your Company has adequate systems of Internal Controls commensurate
with its size and operations to ensure orderly and efficient conduct of business. These
includes controls over financial reporting, which ensures the integrity of financial
statements of the company and safeguarding of assets, reduction and detection of fraud and
error, adequacy and completeness of the accounting records and timely preparation of
reliable financial information.
F. CHANGES IN SIGNIFICANT RATIO
There is a slight significant change in the key financial ratios for
the year 2023-24 which are as below:
KEY RATIOS:
Ratios |
2022-23 |
2021-22 |
% Change |
Reason of Change |
Debtors Turnover |
2.04 |
2.88 |
-29.17 |
AVAILMENT OF HIGHER CREDIT |
Inventory Turnover |
1.94 |
3.34 |
(41.92) |
INCREASE IN EFFICIENCY IN
INVENTORY MANAGEMENT |
Current Ratio |
1.50 |
1.43 |
4.90 |
- |
Debt-Equity Ratio |
0.45 |
0.36 |
25.00 |
INCREASE IN BORROWINGS ON
ACCOUNT OF INCREASED ACTIVITY |
Operating Profit Margin (%) |
5.29 |
2.90 |
2.39 |
INCREASE IN PROFIT MARGIN DUE
TO REALISATION OF STOCK WITH GOOD MARGIN |
Net Profit Margin (%) |
0.03 |
0.02 |
50 |
THERE IS DELCINE IN PROFIT
DUE TO DECREASE IN TURNOVER |
RETURN ON CAPITAL EMPLOYED |
0.07 |
0.06 |
16.67 |
-THIS IS DUE TO DECREASE IN
TURNOVER AND REDUCUTION OF PROFIT MARGIN |
g. Financial Performance with respect to Operational Performance:
The financial performance of your Company for the year 2022-23 will be
described in the Directors Report.
h. Material Developments in Human Resources and Industrial Relations
Front:
Your company is successful in maintaining and retaining a workforce
characterized by good physical, psychological, and mental health. It also addresses the
efficacy of various intervention strategies in reducing employee stress, and their
implications for organizational practices and human resource policies.
i. Cautionary Statement:
Statement made in this report describing the Companys objectives,
projection, estimates and expectations may be "forward looking statements"
within the meaning of applicable laws and regulations. Actual results may differ
materially from those expressed or implied. Important factors that could make a difference
to the Companys operations include economic conditions affecting the Markets in which
company operates; changes in the Government regulations; tax laws and other statutes and
incidental factors.
Registered office:
"Gayatri House", Ashok Vihar,
Near Maitri Avenue Society,
Opposite Government Engineering College, Motera, Sabarmati,
Ahmedabad-380005, Gujarat
Place: Ahmedabad Date: August 12, 2023
By order of Board of Directors MAITRI ENTERPRISES LIMITED
Sd/-
RAMESHLAL B. AMBWANI CHAIRMAN AND DIRECTOR DIN:02427779
Sd/-
JAIKISHAN R. AMBWANI MANAGING DIRECTOR DIN:03592680
DISCLOSURES REGARDING REMUNERATION REQUIRED UNDER SECTION 197(12) OF
THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION
OF MANAGERIAL PERSONNEL) RULES, 2014
Sr. No. Requirements |
Disclosure |
1. The
ratio of remuneration to each director to the median remuneration of the employees for the
financial year |
M.D. |
9.20 |
| Non-Executive Director |
- |
2. The
percentage increase in remuneration of each director, Chief Financial Officer, Chief
Executive Officer, Company Secretary in the financial year |
MD |
- |
| WTD |
- |
| CFO |
- |
| CS |
- |
3. The percentage
increase in the median remuneration of employees in the financial year |
- |
4. The number of
permanent employees on the rolls of the Company as on March 31, 2023. |
33 |
5. Average percentile
increase already made in the salaries of employees other than the managerial personnel in
the last financial year and its managerial remuneration and justification thereof and
point out if there are any exceptional circumstances for increase in the managerial
remuneration |
Nil |
6. Affirmation that
the remuneration is as per the remuneration policy of the Company |
Yes, it is
confirmed |
Registered office:
"Gayatri House", Ashok Vihar,
Near Maitri Avenue Society,
Opposite Government Engineering College, Motera, Sabarmati,
Ahmedabad-380005, Gujarat
Place: Ahmedabad Date: August 12, 2023
By order of Board of Directors MAITRI ENTERPRISES LIMITED
Sd/-
RAMESHLAL B. AMBWANI CHAIRMAN AND DIRECTOR DIN:02427779
Sd/-
JAIKISHAN R. AMBWANI MANAGING DIRECTOR DIN:03592680
+91-9892691696
