Your Directors are pleased to present the Management Discussion and Analysis Report for
the year ended 31st March, 2023.
The Management Discussion and Analysis have been included in consonance with the Code
of Corporate Governance as approved by The Securities and Exchange Board of India (SEBI).
Investors are cautioned that these discussions contain certain forward looking statements
that involve risk and uncertainties including those risks which are inherent in the
Companys growth and strategy. The company undertakes no obligation to publicly update or
revise any of the opinions or forward looking statements expressed in this report
consequent to new information or developments, events or otherwise.
The management of the company is presenting herein the overview, opportunities and
threats, initiatives by the Company and overall strategy of the company and its outlook
for the future. This outlook is based on managements own assessment and it may vary due
to future economic and other future developments in the country. The operational
performance and future outlook of the business has been reviewed by the management based
on current resources and future development of the Company.
DISCUSSIONS ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
Your Companys main object is cornered in to dealers and manufacturing of
pharmaceutical products and services. Since last 11 years, your Company is in
non-operational mode and there was not production or distribution. The reason of occurring
loss during the year and previous year was mainly due to no business and to day to day and
administrative expenses. The management of the Company wants to revive the Company and
very optimistic regarding performance of the Company in future and taking steps and making
every effort to turn the Company in to profitable organization.
During the year under review there was marginal revenue generation in form of other
income, which was the commission income for referral. During the year under review Company
has tried to minimize its losses by controlling its expenses and overheads.
Particulars |
F.Y. 2022 2023 |
F.Y. 2021 2022 |
|
(Rs. In Lacs) |
(Rs. In Lacs) |
| Revenue from Operation |
- |
- |
| Revenue from other Income |
- |
9.66 |
Total Revenue |
- |
9.66 |
| Profit before Dep. & Int. |
- |
- |
| Depreciation |
- |
- |
| Interest |
- |
- |
| Profit after Depreciation & Interest |
(12.78) |
(20.74) |
| Provision for Taxation |
(0.07) |
- |
| Provision for Tax (deferred) |
- |
- |
| Provision for Taxation for earlier year |
- |
- |
| Profit/ Loss after Tax |
(12.85) |
(20.74) |
| EPS |
(0.24) |
(0.38) |
INDUSTRY STRUCTURE AND DEVELOPMENTS:
Pharmaceutical Sector Overview - Global
Indian pharmaceutical industry is known for its generic medicines and low-cost vaccines
globally. Transformed over the years as a vibrant sector, presently Indian Pharma ranks
third in pharmaceutical production by volume. In the last nine years, Indian Pharma sector
has grown steadily by CAGR of 9.43%. Pharma sector has been consistently earning trade
surplus. Major segments of Indian Pharmaceutical Industry include generic drugs, OTC
medicines, bulk drugs, vaccines, contract research & manufacturing, biosimilars and
biologics. Indian pharmaceutical industry also plays significant role globally. India has
the highest number of United States Food and Drug Administration (USFDA) compliant Pharma
plants outside of USA. There are 500 API manufacturers contributing about 8% in the global
API Industry. India is the largest supplier of generic medicines with 20% share in the
global supply by manufacturing 60000 different generic brands across 60 therapeutic
categories. India is one of the biggest suppliers of lowcost vaccines in the world.
Because of the low price and high quality, Indian medicines are preferred worldwide,
thereby rightly making the country the "pharmacy of the world".
Pharmaceutical is one of the top ten attractive sectors for foreign investment in
India. 100% foreign investment is allowed under automatic route in Medical Devices.
Foreign investments in pharmaceuticals in greenfield projects are allowed up to 100% under
the automatic route and for brownfield pharmaceutical projects, foreign investment beyond
74% to up to 100%, Government approval is required.
The global pharmaceutical market is now estimated to be over USD 1.6 trillion and
expected to grow at CAGR of about 6%.
Though the pharmaceutical industry is developing at rapid pace, the pharmaceutical
manufacturing companies are confronted with enormous challenges such as:
Indian pharma market is expected to grow to USD 130 Billion by 2030 thereby emerging as
the 6 largest pharmaceutical market globally by absolute size.
The growth of the pharmaceutical industry is globally driven by ageing population as
well as about 1% increase in the global population at the same time
Global Bulk Drugs Market
Three segments - Branded Prescription drugs, Over-the-Counter (OTC) drugs and Generic
Prescription drugs account for a majority of global bulk drug consumption
The total global bulk drug consumption is expected to reach USD 230 billion by 2024 at
a CAGR 6.5% during the forecast period out of which 80% is used for Branded Prescription
drugs, 10% for OTC drugs and 10% for Generic Prescription drugs.
Indian Bulk Drug Market
India is expected to be the 3 largest global markets for Bulk Drugs with a 7.5%
increase in market share. There are 1150 bulk drug units producing about 350 important
Bulk Drugs. The market analyst forecast the API markets in India to grow at a CAGR of 11%
over the period of 2021-2025.
SUBSIDIARY COMPANY:
As there are no subsidiaries of the Company, Investment made in Subsidiaries is NIL.
SEGMENT-WISE PERFORMANCE:
The Company is not in operation since last 12 years.
KEY FINANCIAL RATIOS:
In accordance with the amended SEBI (Listing Obligation and Disclosure Requirements)
Regulations, 2015, the Company is required to give details of significant changes (i.e.
change of 25% or more as compared to the immediately previous financial year) in key
financial ratios, along with detailed explanations thereof:
The Company has identified following ratios as key financial ratios:
Particulars |
Unit of Measurement |
2022-23 |
2021-22 |
Variation in % |
| Current Ratio |
In Multiple |
55.37 |
45.81 |
9.55 |
| Debt-Equity Ratio |
In Multiple |
- |
- |
- |
| Debt Service Coverage Ratio |
In Multiple |
- |
- |
- |
| Return on Equity Ratio |
In % |
-2.37% |
-3.82% |
1.45% |
| Inventory Turnover Ratio |
In Days |
- |
- |
- |
| Trade Receivables Turnover Ratio |
In Days |
- |
412.23 |
-412.23 |
| Trade Payables Turnover Ratio |
In Days |
- |
150.52 |
-150.52 |
| Net Capital Turnover Ratio |
In Days |
- |
261.71 |
-261.71 |
| Net Profit Ratio |
In % |
- |
-215% |
215.00% |
| Return on Capital Employed |
In % |
-2% |
-4% |
1.63% |
| Return on Investment(Assets) |
In % |
-4% |
-3% |
-0.55% |
PERFORMANCE OF THE BOARD AND COMMITTEES:
During the year under review, the performance of the Board & Committees and
Individual Director(s) based on the below parameters was satisfactory:
a) Most of the Directors attended the Board meetings; b) The remunerations paid to
executive Directors are strictly as per the company and industry policy. c) The
Independent Directors only received sitting fees. d) The Independent Directors contributed
in the Board and committee deliberation and business and operation of the company based on
their experience and knowledge and Independent views. e) Risk Management Policy was
implemented and monitored by the Auditors.
THREATS, RISKS AND CONCERNS:
The Companys future development would depend upon the commencement of its operational
activities.
Shamrock faces risks and uncertainties typical to that faced by global pharmaceuticals
industry players, which could have a material impact on earnings and the ability to
operate in the future. These are determined via robust assessment considering our risk
context by the Board of Directors with inputs from the executive management.
EXISTING THREATS AND RISKS FACED BY THE INDUSTRY
The US Trade Representatives (USTR) has questioned India for the countrys growing
spurious medicine problem. According to the USTR report, nearly 20% of all pharmaceutical
goods sold in the Indian market are counterfeit, which is a damning claim given Indias
growing pharmaceutical market and its decades long reputation as the " pharmacy of
the world"
The Indian pharmaceutical industry ranks third in the world in terms of volume,
supplying 20% of the global demand for generic drugs. With a strong network of 3,000 drug
companies and approximately 10,500 manufacturing units spread across the country, if
timely efforts are not taken now, India may lag behind due to a lack of quality pharma
products. Certain aspects as follows must be prioritize.
INTERNAL CONTROL SYSTEM & ADEQUACY:
The Company is following a proper and adequate system of internal controls in respect
of all its activities. Further all transaction entered into by the Company are fully
authorised, recorded and reported correctly.
HUMAN RESOURCE:
The Company has excellent combination of experienced and talented employees. The
Company also undertakes on regular basis various training programmers to keep its
employees updated on new technical developments and information which directly results in
optimum capacity utilization and cost effectiveness. The Companys relation with its
employees continues to be cordial. The Company always reciprocates commitment to its
employees in order to motivate them to perform the best.
CAUTIONARY STATEMENT:
Statements in foregoing paragraphs of this report describing the current industry
structure, outlook, opportunities, etc., may be construed as "forward looking
statements", based on certain assumptions of future events over which the Company
exercises no control. Therefore, there can be no guarantee as to their accuracy. These
statements involve a number of risks, uncertainties and other factors that could cause
actual results to differ materially from those that may be implied by these forward
looking statements.
FOR & ON BEHALF OF THE BOARD |
Sd/- |
Sd/- |
Jitesh Khokhani |
Kamlesh Khokhani |
(Whole Time Director) |
(Director) |
DIN: 00611815 |
(DIN: 00322223) |
Place: Mumbai |
|
Date: 10th August, 2023 |
|
Registered Office |
|
83 E, Hansraj Pragji Building,
Off: Dr. E. Moses Road, Worli, Mumbai 400018
Email id: shamrockfin@gmail.com : cs@shamrockindia.com
Website: www.shamrockindustrial.wordpress.com
Tel: 022-40778879 : Fax: 022-24983300
+91-9892691696
