norris medicines ltd Management discussions

(A) Industry Structure and Development:

The Company is engaged in the Health Care Industry and has two plants situated at GIDC, Ankleshwar, Gujarat. Both the plants of the Company are WHO CGMP approved. The Company is primarily engaged in carrying out contract manufacturing and Loan License Manufacturing for large Multinational and big Indian Pharma Companies. The Company has now renovated its sterile injectable plant and with this the plant is now as per international standards. The Company now expects the order flow from other major companies and the volumes would improve

(B) Opportunities, Threats, Risks, Concerns:

The Company is engaged in the ever expanding Health Care Sector but the threat faced by the Company include governmental controls on the pricing and the ever increasing cost of compliance, energy and manpower. The Company is, therefore, trying to spread its business across different countries and different market segments. The Company is also moving into Exports to other countries to mitigate the batch size issues and thus achieve economies of scale. Keeping in mind the aforesaid constraints the Company has worked out number of strategies including:

(1) Reduction in raw material cost through efficient procurement by regularly negotiating with its key raw materials suppliers for price revision and exercising economic bulk order quantity sourcing once the restructuring is in place.

(C) Segment wise performance:

The Company has been operating in single segment only

(D) Outlook:

The Company focuses on increase in volume, improve its efficiency by vigorously implementing cost reduction parameters viz. efficient procurement policy, applying various cost reduction methods, innovations, strengthening its quality parameters. The above steps would ultimately lead to production of quality products at competitive prices. In view of good business potentials, the Companys manufacturing infrastructure of WHO cGMP standards, strong product portfolio with growth brands present good outlook for the Companys business.

(E) Financial Performance:

The Gross Revenue of the Company was Rs. 837.26 Lakhs for the year as compared to Rs. 946.42 Lakhs for the previous year. The Company has made loss of Rs. 174.95 Lakhs as against a loss of Rs. 326.35 Lakhs in the previous year.

(F) Internal Control Systems and Adequacy:

The Company maintains a system of well-established policies and procedures for its internal control of operations and activities. The Company has appointed M/s. Dhiren Y Parikh & Co., Chartered Accountants, Vadodara, as the Internal Auditors to ensure proper system of Internal Control and its adequacy.

The Company has proper and adequate control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorized, recorded andreported correctly. These are viewed by Audit Committee and the suggestions made by them are implemented. The system of internal control also ensure that transactions are carried out based on authority and are recorded and reported in lines with generally accepted accounting principles. The Company also has a system of regular internal audit carried out by competent professional retained by the Company. The internal audit program is approved by the Audit Committee and findings of the internal audit are placed before the Audit Committee at regular intervals. The Companys use of “Pharmasuite” as its EPR platform helps in the exercise of timely control.

(G) Developments On Human Resources/Industrial Relations Front:

The Company continuously monitors its manpower requirement to ensure that it has adequate human skills commensurate with its needs. Industrial relations of the Company continue to be cordial. The Company has a programme of regular training and updating of knowledge of the human capital.

DETAILS AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014.

1. Ratio of the remuneration of each director to the median remuneration of the employees of the company for thefinancial year 2022-23:

Name of Director	Ratio to Median Remuneration
Mr. Vimal Dhirendra Shah	1:0.16
Mr. Shaik Amanullah Mohamed Azmathullah
Dr. Hiten Parikh
Mrs. Susmita Mahaptra

2. Percentage increase in remuneration of each director, Chief Financial Officer, Managing Director, CompanySecretary or Manager, if any, in the financial year 2022-23:

Name	Designation	% Increase
Mr. Vimal Dhirendra Shah	Managing Director	No Change
Mr. Iqubal Patel	Chief Financial Officer	No Change
Ms. CS. Prena Karwa	Company Secretary	No Change

3. There is No change in the median remuneration of employees in the financial year 2022-23 compared to 2021-22.

The number of Permanent Employees on Roll of the Company	As on 31.03.2023	As on 31.03.2022
	50	50

4. Variations in market capitalization of the Company, Price Earnings Ratio as at the closing date of current financialyear and previous financial year.

Variations in the market capitalization	Yes
Price Earnings Ratio as at the closing date of current financial year	-1.75
Price Earnings Ratio as at the closing date of previous financial year	-3.26
1. Percentage increase or decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer in case of listed companies and in case of unlisted companies, the variations in the net worth of the company as at the close of current financial year and previous financial year.		Not Applicable
2. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration.		Not Applicable

5. Comparison of the each remuneration of the Key Managerial Personnel against the performance of the company

Particulars	Vimal Shah	Iqubal Patel	CS. Ms. Prena Karwa
	Managing	Chief Financial	Company
	Director	Officer	Secretary
Remuneration in F.Y. 2022-23	600000	6,27,000	2,40,000
Revenue	83581868	83581868	83581868
Remuneration as % of revenue	0.72	0.75	0.01
Profit / (Loss) Before Tax	-11932778	-11932778	-11932778
Remuneration (as % of Profit Before Tax)	N.A	N.A	N.A

 

3. Key parameters for any variable component of remuneration availed by thedirectors	No such variable component of Remuneration availed by any Director of the Company.
4. Ratio of the remuneration of the highest paid director to that of the employeeswho are not directors but receive remuneration in excess of the highest paid director during the year	NA

The Board of Directors of the Company affirms that the remuneration is as per the remuneration policy of the Company.

INFORMATION REQUIRED UNDER SECTION 134(3)(M) OF THE COMPANIES ACT, 2013 READ WITH RULE 8(3) OF THE COMPANIES (ACCOUNTS) RULES, 2014 PERTAINING TO CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

A) Conservation of energy:

(i) Steps taken or impact on conservation of energy; 1. Saving of water and its reduction of treatment cost at ETP

2. Collection and re-use of steam-condensate at plants. (ii) Steps taken by the company for utilizing alternate sources of energy;

1. Rectification of utility machines to improve efficiency and save power.

2. Replacement of conventional tube-light by LED at various locations. (iii) Capital investment on energy conservation equipments;

The company has undertaken efforts to rectify the shortfalls in the existing facilities in order to reduce theenergy consumption by setting up efficient facilities.

(B) Technology absorption:
(i) Efforts made towards technology absorption	: N.A.
(ii) Benefits derived like product	: YES
Improvement, cost reduction, product
Development or import substitution
(iii) in case of imported technology (imported	: N.A.
during the last three years reckoned from the
beginning of the financial year)-
(a) the details of technology imported	: N.A.
(b) the year of import	: N.A.
(c) whether the technology been fully absorbed	: N.A.
(d) if not fully absorbed, areas where absorption has not
taken place, and the reasons thereof	: N.A.
(iv) the expenditure incurred on R&D	: N.A.

(C) Foreign exchange earnings and Outgo:

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo duringthe year in terms of actual outflows.

(Rs. In Lacs)

For the period ended on 31st March, 2023 Income	2022-23	2021-22
Export (FOB basis)	19.83	72.74
Expenditure
Raw Materials (CIF basis)	0	0
Capital Goods (CIF basis)	0	0
Foreign Travelling Expenses	0	0
Subscription, Publicity & Others	0	0