Evoq Remedies Ltd Management Discussions

The Indian economy is one of the largest and most rapidly growing in the world, marked byA. Overview of the Indian Economy: economic structure with significant contributions from various sectors. The services sectora nominal GDP of approximately USD 3.5 trillion as of 2024. It is characterized by a diverse industriesleads the sucheconomy,as informationaccountingtechnology,for a substantialfinance, andportiontelecommunications.of GDP and encompassingMeanwhile, theeconomicindustrialdevelopment,sector, includingand agriculturemanufacturingremainsanda vitalconstruction,component,playssupportinga crucial arolelargein segment of the population. In recent years, India has implemented a series of economic reforms aimed at enhancinggrowth and competitiveness. Initiatives like Make in India and Digital India, along with economicimprovements in infrastructure, deregulation, and investment in technology, have spurredactivity and attracted foreign investment. The countrys young and expanding consumer-drivenworkforce, combinedgrowth.with Despitea burgeoningthese middlepositiveclass,developments,provides a Indiastrongfacesfoundationchallengesfor addressed to sustain long-term growth.including income inequality, unemployment, and infrastructural deficits that need to be The Indian economys future prospects are bolstered by its large domestic market, ongoing economicHowever, itreforms,must navigateand increasingglobal economicfocus onuncertaintiesinnovation andand domesticdigital transformation.issues such as development,inflation and alongsidefiscal deficits.its commitmentThe governmentsto enhancingcontinuedthe emphasisbusiness environment,on reform andis influential economic force with significant potential for future growth and development.expected to drive continued economic progress. Overall, India remains a dynamic and B. TheIndustry structure Indian pharmaceuticaland development:sector is a major contributor to the countrys economy, Valuedrecognized globally for its extensive production capabilities and robust market presence.at approximately USD 45-50 billion as of 2024, it is one of the largest of generic drugs, which India supplies extensively to international markets, including thepharmaceutical markets worldwide. The sector is predominantly driven by the production Pharmaceutical Ingredients (APIs), essential for both domestic and global pharmaceuticalUnited States, Europe, Africa, and Asia. Additionally, India is a leading producer of Active needs. investment in research and development, and a strategic shift towards biopharmaceuticalsIn recent years, the sector has experienced significant growth, bolstered by increased pharmaceuticalfavorable regulations, tax incentives, and initiatives aimed at boosting innovation. Indiancompanies are also forging international collaborations and adhering to reach.global regulatory standards, enhancing their competitive edge and expanding their market Despite its successes, the sector faces challenges such as intense pricing pressures, marginsregulatory hurdles, and issues related to counterfeit drugs. These challenges impact profitand regulatory compliance but are being addressed through stricter quality controls and technological advancements. Looking ahead, the Indian pharmaceutical ^{industry is well-positioned for continued growth, supported by its strong domestic market,}the sector remains a vital and influential component of Indias economic landscape.rising healthcare needs, and ongoing investments in innovation and technology. Overall,

C. Opportunities and Threats: Opportunities: by

? Domestic rising income levels, and a higher prevalence of chronic diseases. Market Growth: Increasing demand driven a growing population, ? market penetration Global Expansion: Strong presence in generics providesand international partnerships. opportunities for further ? potential for innovation and new product development.Biopharmaceuticals: Growing focus on biosimilars and advanced therapies offers ? Research can lead to breakthroughs in drug discovery and faster time-to-market.and Development: Investment in R&D and digital health technologies ? Manufacturing and Exports: Robust manufacturing capabilities and favorable government policies support increased production and global export opportunities.

Threats:

? Regulatory Challenges: Navigating complex and evolving global regulatory requirements can be difficult and costly.

? Pricing generics market, can erode profit margins. Pressure: Intense competition and pricing pressures, particularly in the ? Counterfeit risks to public health and damages industry reputation.Drugs: The prevalence of counterfeit and substandard drugs poses

? Intellectual can hinder innovation and market access. Property Issues: Patent disputes and intellectual property challenges ? Economic and Political Instability: Fluctuations in economic conditions and political instability can impact market stability and investment.

D. Segment-wise or Product-wise performance:

The Company is primarily engaged in single segment i.e., Pharmaceutical Trading.The Turnover of the Company for the Financial Year 2023-24 is mentioned in the Board Report. InE. Future 2024-25,Outlook:Evoq Remedies Limited is poised for growth due to rising demand in regulatorypharmaceuticalscompliance,and biotechnology.and navigatingSuccessmarketwillcompetition.hinge on Economiceffective R&Dfluctuationsinvestments,are a ^{consideration, but strategic management can drive continued expansion.} Being a pharma company and ISO Certified the process parameters are fully documentedF. Internal control systems and their adequacy: functional level. There is continuous flow of information at all level and effective internaland are in place. The role and responsibilities of various people are fully defined in all the efficiency. audit and internal checks are done at regular interval to ensure their adequacy and Additionally, the following measures are taken to ensure proper control: Budgets are prepared for all the operational levels.

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? Any material variance from budget has to be approved by the Commercial director.Any major policy change is approved by the managing director.

? Any deficiency in not achieving target is reviewed at management meetings. ? G. The financial performance of the Company for Discussion on financial performance with the Financial Yearrespect to operational performance: 2023-24 is described in theDirectors Report of the Company.

H. Material developments in Human Resources / Industrial Relations front including number The cordialof people employeremployed: - employee relationship also continued during the year under the review.The C ompany has continued to give special attention to human resources.

Statements made in the Management Discussion and Analysis describing the various partsI. Caution Statement: regulations.may be "forward looking statement" within the meaning of applicable securities laws andThe actual results may differ from those expectations depending upon the internal and external factors.economic conditions, changes in Govt. Regulations and amendments in tax laws and other