ang lifesciences india ltd Management discussions

INDUSTRY STRUCTURE & DEVELOPMENTS

Global Pharmaceutical Market

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:

Cost & Pricing, New Medicines & Therapy dosages, changing regulatory landscape & growing digitization.

Indian pharma market is expected to grow to USD 130 Billion by 2030 thereby emerging as the 6th largest pharmaceutical market globally by absolute size.

The growth of the pharmaceutical industry is globally driven by ageing population as well as about 1P? increase in the global population at the same time. The growth of the pharmaceutical industry is globally driven by ageing population as well as about 19? 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 80X? is used for Branded Prescription drugs, 10X? for OTC drugs and 10X? for Generic Prescription drugs.

Indian Bulk Drug Market

India is expected to be the 3rd 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 11X? over the period of 2021-2025.

OPPORTUNITIES, THREATS AND OUTLOOK

The Company will be able to place itself in a strong position by expanding strategically, increasing its manufacturing capacities and enhancing capacities across the organization. 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 global 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 through the quality of products. As the consolidation of this industry gains momentum, the need to develop a dedicated team of skilled manpower assumes urgency and importance. We will continue to focus on training and motivation of manpower so as to develop teams of qualified and skilled personnel to effect?veIy discharge their responsibilities in a number of projects and activities. It is, in this context, which we have been working towards promoting the skills and professionalism of our employees to cope with and focus on the challenges of change and growth.

1. Opportunities

1. Support state sponsored Health Programmes and focus on chronic healthcare leading to universal drug access.
2. Indian pharmaceutical industry must pursue opportunities in new product classes such as bio -similars, gene therapy and specialty drugs for achieving accelerated growth.
3. Strategically speaking Indian pharmaceutical industry should focus to capitalize on rich demographic dividends i.e . large skilled, yet cost effective workforce.
4. Indian pharmaceutical industry must concentrate on increasing its footprints in underpenetrated international markets like Japan, China, Africa, Indonesia and Latin America to increase exports.
5. Leverage Indias strengths in IT and ITES by optimizing new avenues such as OTC policy or consumerization which is a big opportunity for the domestic market as it can help maximize scale and reach. It has the potential to overcome the shortage of doctors in India by enabling and empowering patients and chemists to take care of commonly occurring ailments.

1. Challenges
1. Indian pharmaceutical industry is faced with a lack of a stable pricing and policy environment for long term investment decisions.
2. Lack of capabilities in the innovation space since Indian pharmaceutical companies have been slow to grow in the innovation space (e.g., new molecular entities, complex generics), with a limited government-supported research ecosystem. There is also a gap between the college curriculum and industrys requirements. There is scope to improve collaboration between Government institutes and industry on innovation-focused research initiatives. Clinical trial approvals in India are subject to stringent regulatory norms. Similarly, bio-similars that are emerging as significant opportunity face cumbersome regulations.
3. Dependence on external markets for intermediates and APIs since around 80 percent of Indias requirements for Active Pharmaceutical Ingredients, by volume, are fulfilled by China. India has been unable to seize the API opportunity due to various factors.
4. Indian pharmas eroding competitive advantage in the US generics market due to the fact that growth in the US market is moderating and there is increase in competition in generics space.
5. Increased scrutiny in quality compliance when supplying to international markets as concerns on the quality of imported drugs is increasing globally. The industry will need to continuously invest in upgra ding quality standards to keep its promise of a high quality reliable supplier of medicines to the world.

Long Term Strategy:

India is poised to become the 2nd largest producers of API in the world. Our Company is still dependent on Intermediates mainly from China and other countries we will definitely look forward for backward integration in long term. We also need to improve the manufacturing processes to reduce the solvent load and formation of other by-products. This will also help us in reducing the pollution load and ultimately reducing the final product cost.

The pharmaceutical industry is developing at an unusually rapid pace. Manufacturing companies are confronted with enormous challenges due to high market growth, new medicines and therapy forms, changing regulations and progressing digitization. This article casts a glance at some important areas of growth and describes the changes drug producers as well as processing and packaging specialists are facing.

The global population is increasing by 1.24 percent per year until 2030 and ageing at the same time. All in all, the proportion of people aged 65 to 80 will rise to 28 percent, compared to 22 percent in 2000. Increasing urbanization and a growing middle cl ass are making drugs available and affordable for more people and also lead to a higher demand for medication.

Internal control systems and their adequacy

The Companys has proper and adequate internal control system to ensure compliance with various policies, practices and statutes in keeping with the organizations pace of growth and increasing complexity of operations. Management continuously reviews the internal control systems and procedures to ensure the efficient conduct of business. Regular internal audits and checLs are carried out to ensure that the responsibilities are executed effectively.

Financial Performance

The revenue from operations forlhe year ended March 31, 2023 amounted to Rs. 20700.55 Lacs as against the 34866.94 Lacs for the previous year. During the FY 2022-23, profit before tax is Rs. 206.92 Lacs and incurred the loss after tax of Rs. 66.22 Lacs.

The main reason of handsome turnover and profit in 2021-22 is in cause of manufacture a product namely AMPOTHERICIN for using the curement of fungus disease and from this single product, the Company has made a turnover of Rs. 50.00 crores approximately in the first quaner of FY 2021-22. Funher the company had pending work order in FY 2022-23 of Government institution, which were tendered in FY 2O20-21. However at the time of tender, the Raw material were not as high as it was at

the time of supply in 2022-23. The required Raw material was overpriced from our Bidding. Though the company has taken the precautionary step to cease the Liquidity Damage which was majorly reflecting in our profit & loss statement for 2022-23.

The details of changes in key financial ratios are explained in the table below:-

SN	Particulars	31 March 2023	31 March 2022	Change in 96
i.	Current Ratio (A/B)	1.15	1.18	-2.57K
	Current assets (A)	16,821.13	18,156.55
	Current liabilities (B)	14,635.81	15,391.65
ii.	Debt-equity ratio (A/B)	0.62	0.73	-15.5996
	Total Debt (A)	5,274.94	6,099.36
	Total equity (B)	8,553.52	8,348.11
	Debt-service coverage ratio (A/B)	0.36	0.87	-58.699?
	Earning available for debt services (i.e earning before interest and depreciation & amortisation) (A)	1,889.47	5,289.27
	Borrowings including finance cost (B)	5,274.94	6,099.36
iv.	Return on equity ratio (A/B)	o.00	0.48	-99.8796
	Net profit for the year (A)	5.41	3,992.24
	Total equity (B)	8,553.52	8,348.11
v.	Inventory turnover ratio (A/B)	4.41	9.50	-53.5396
	Cost of goods said (A)	14,690.26	23,001.08
	Average inventory (B)	3,327.76	2,421.23
vi.	Trade receivables turnover ratio (A/B)	2.34	4.42	-47.11%
	Credit Sales (A)	20,700.55	34,866.g4
	Average trade receivables (B)	8,855.03	7,888.60
Vii.	Trade payables turnover ratio (A/B)	5.94	4.94	2516582401
	Credit purchases (A)	18,388.71	27,51s.es
	Average trade payables (B)	3,097.45	5,575.33
viii	Net capital turnover ratio (A/B)	2.42	4.18	-42.0696
	Revenue from operations	20,700.55	34,866.94
	Capital employed or net assets (B)	8,553.52	8,348.11
ix.	Net profit ratio (A/B)	-0.00	0.11	-102.8196
	Net profit after tax	-66.22	3,971.30
	Revenue from operations	20,700.55	34,866.g4
x.	Return on capital employed (A/B)	0.11	0.57	-80.1796
	Earnings before interest but after taxes (A)	966.21	4,756.29
	Capital employed or net assets (B)	8,553.52	8,348.11

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xi.	Return on Investment	0.00	0.48	2516582401
	Net profit after tax (A)	5.41	3,992.24
	Capital employed or net assets (B)	8,553.52	8,348.11

Development in Human Resources and Industrial Relationship

The Human Resources function contributes to ANGs growth story by working as a strategic partner to the business. The technical and quality demands of pharma combined with our own vision to grow significantly over the next few years are driving the need for us to build an alert, engaged, and energized work force.

Cautionary Statement

This report may contain certain statements that the Company believes are or may be considered to be ‘forward looking statements‘ which are subject to certain risks and uncertainties. These estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the statements reflect, in a true and fair manner, the state of affairs and profits for the year. Actual results may differ materially from those expressed or implied. Significant factors that could influence the Companys operations include government regulations, tax regimes, market access related regulatory compliances, patent laws and domestic and international fiscal policies. Company undertakes no obligation to publicly revise any forward-looking statements to reflect future/likely events on circumstances.

For ANG Lifesciences India Limited

Date: 05.09.2023

Place: Amritsar

Sd/-

Rajesh Gupta

Managing Director

5d/-

Saruchi Gupta

Whole time Director