dr habeebullah life sciences ltd Management discussions

OVERVIEW:

The Company has decided to put more fucus towards bio-pharma related business than the previous Healthcare related Stem cell Hospitals and Diagnostics. Due to Covid and delay in fund raising and other reasons, we are restructuring our business model and bend towards Bio-pharma. Since the company through its associate company Krisani Bio Sciences Private Limited proven its strength in new drug discovery by obtainimg total 12 international granted patents. The company will continue research in pharma. The Company is planning to tie-up with R&D companies in US and India to take these molecules into commercial stage.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Samsrita Labs Limited (Formerly known as DR Habeebullah Life Sciences Ltd) initially focused on three different verticals called, Stem cell related Hospitals, Molecular Diagnostics and R&D in New Drug Discovery but due to COVID and other reasons, aimed to shifting into Bio-pharma activities like Trading, Exports & Imports, manufacturing of Bulk drugs, APIs, Specialty drugs, R&D etc through joint ventures or associations or mergers or by its own. We are under discussions with existing pharma companies in these lines and shall inform to shareholders any developments in these exercises at an appropriate time.

INDIAN PHARMACEUTICAL INDUSTRY:

The Indian pharmaceutical industry is the worlds third largest in terms of volume and ranks 11th in terms of value. It is among the faster-growing markets and the largest exporter of generic drugs by volume. Outside of the USA, India has the largest number of USFDA-approved pharmaceutical manufacturing facilities. Going forward, India is likely to maintain a leadership position in the manufacture and supply of High-quality generic medicines as well as a major manufacture of Covid-19 vaccines. The Indian Pharmaceutical market recorded ~9.5% CAGR between 2016-20 to reach US$ 21 Billion. It is expected to grow at 7.5%-10.5% CAGR to US$ 28-32 Billion by 2025.

OUTLOOK:

SLL (FORMERLY KNOWN AS DRHLSL) wish to restrict its business as Biopharma Company and to out from Hospitals and diagnostics business. The Indian pharmaceutical industry is the worlds third largest in terms of volume and ranks 11th in terms of value. It is among the faster-growing markets and the largest exporter of generic drugs by volume. Outside of the USA, India has the largest number of USFDA-approved pharmaceutical manufacturing facilities. Going forward, India is likely to maintain a leadership position in the manufacture and supply of high-quality generic medicines as well as a major manufacture of Covid-19 vaccines.

The Indian Pharmaceutical market recorded ~9.5% CAGR between 2016-20 to reach US$ 21 Billion. It is expected to grow at 7.5%-10.5% CAGR tp US$ 28-32 Billion by 2025. The outlook of Indian pharma industry is expected to be good for the next one decade; SLL expands its R&D division into manufacturing and trading of bio- pharma products.

RISKS AND CONCERNS:

The Company is committed to conducting business in accordance with all applicable statutory laws and regulations, and pursuing its core organizational values. The Companys business model is a bilateral approach. It focuses on striking a balance between the high value creation divisions like Stem cell therapy, new drug discovery on one hand and daily revenue generating divisions likes Molecular Diagnostics on the other. This is aimed at minimizing the risk and maximizing the shareholder wealth.

SLL (FORMERLY KNOWN AS DRHLSL) acknowledges that its research and development, manufacture and sale of products and services may face several challenges such as human capital risk, risk of failure or delay of R&D products in a timely manner, risk arising out of strategic co-development arrangements with a partner, changing global and national political and regulatory landscape amongst others. Although the comprehensive eradication of risks associated with the business of the Company is unfeasible, constant efforts are made to analyze their potential impact, assess the changes to risk environment and define actions to mitigate their adverse impact.

INTERNAL CONTROLSYSTEMS AND THEIR ADEQUACY:

SLL (FORMERLY KNOWN AS DRHLSL) strongly believes that a robust internal control mechanism is a prerequisite to ensure that an organization functions ethically, complies with all legal and regulatory requirements and observes the generally accepted principles of good corporate governance. To enable this, the Company has established a strong internal control system for the Company, which is comprised of policies, guidelines and procedures to ensure the orderly and efficient financial and business conduct.

SLL (FORMERLY KNOWN AS DRHLSL) has adopted strong internal control systems backed by constant reviews and up-gradation. Internal Audit, Statutory Audit by external agencies and the Audit Committee, look into the internal control aspects and further advice on the corrective measures as and when required.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The management discussion and Analysis given below relates to the Audited Financial Statements of Samsrita Labs Limited (Formerly known as Dr. Habeebullah Life Sciences Limited). The discussion should be read in conjunction with the financial statements and related notes for the year ended 31st March 2023.

SUMMARY:

The revenue from the core segment of the business, aggregated to INR 2.16 Lakhs in FY 22-23. Combined with a non-operating income of INR 28.52 Lakhs, the Revenue for the year ended 31st March 2023, totaled to INR 30.69 Lakhs.

The Company has generated revenue (operating income) from trading of drugs and medicines during FY 22-23.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

SLLs employees are the backbone of the Company. It is their knowledge, scientific skills and innovative capabilities that enable DRHLSL to harness the power of science and serve its clients. SLL (FORMERLY KNOWN AS DRHLSL) recognizes that an inclusive culture which promotes diversity, ethics and integrity is crucial. Through a range of HR- led initiatives, we offer customized training programs to enhance the staffs scientific and leadership skills with special attention to collaborative learning amongst the several teams.

FINANCIAL RATIOS:

Particula rs	2022-23	2021-22	Remarks
Debtors turnover rati o	0.01	0.01	--
Inventory turnover ratio	-	0.35	Decrease was on account of decrease in inventory and Decrease in revenue
Interest coverage rati o	N/A	N/A	--
Current rat io	1.86	1.84	Increase in current assets on account of writing off the liability during the year
Debt equity rat io	0.16	0.21	--
Operating profit margin (%)	-3243%	6649%	Decrease i n Operating Profit margin on account of writing off the Debtors d uring the year
Net profit margin (%)	-3260%	6673%	Decrease i n Net Profit margin on account of writing off the Debtors d uring the year
Return on Net worth	-4.77%	10.12%	Decrease i n Net Profit on account of Sundry Debtors Written off

RETURN ON NET WORTH:

There is a change in the Return on Net Worth which is at -4.77% for the Financial Year 2022-23 as compared to immediately previous year 2021-22 which was at 10.12%. Reasons for increase/decrease in Net Profit on account of Sundry creditors Written off.

DISCLOSURE OF ACCOUNTING TREATMENT:

Financial Statements are prepared as per Ind AS duly following the principles laid in the Ind AS. Management has not adopted any other standards other than the prescribed Accounting Standards in preparing the financial statements.

CAUTIONARYSTATEMENT/ DISCLAIMER CLAUSE:

Certain statements in the Management Discussion and Analysis describing the Companys objectives, predictions may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India, new regulations and Government policies that may impact the Companys business as well as its ability to implement the strategy. The Company does not undertake to update this statement.

	For and on behalf of the Board of Samsrita Labs Limited
	(Formerly known as Dr Habeebullah Life Sciences Limited)
	Sd/- K. Krishnam Raju
Place: Hyderabad	Executive Chairman & Whole-time Director
Date: 02.09.2023	(DIN:00874650)