genpharmasec ltd share price Management discussions

1. Forward Looking Statement:

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assump- tions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend modify or revise forward looking statements on the basis of any subsequent developments information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in govern- ment regulations tax laws economic developments within the country and such other factors globally.

The financial statements are prepared under historical cost convention on accrual basis of accounting and in ac- cordance with the provisions of the Companies Act 2013 (the Act) and comply with the Accounting Standards notified under Section 211{(3C) of the Act read with the Companies (Accounting Standards) Rules 2006. The man- agement of Genpharmasec Limited (Formerly Known as Generic Pharmasec Limited) has used estimates and judgments relating to the financial statements on a prudent and reasonable basis in order that the financial state- ments reflect in a true and fair manner the state of affairs and profitfor the year.

The following discussions on our financial condition and result of operations should be read together with our audited consolidated financial statements and the notes to these statements included in the annual report.

5. Overview:

The Company has obtained distribution rights from Abbott Point of Care, USA for distribution of their i-STAT Ana- lysers and its Cartridges all over India. The Directors of the Company are consistently making efforts to expand the business activities as depending exclusively one Company would result in stagnation of sales in the coming years. The Board of Directors from time to time has always considered the proposals for diversification into the areas which would be profitable for the Company. Besides these efforts, the Company has started directly im- porting Cartridges from Abbott POC, USA which has increased its profitability to a great extent.

The Company is looking for obtaining distribution rights of various pharma products and diagnostic equipment manufactured by other MNCs to improve its bottom-line.

6. Company Performance:

The Company has 2 segments namely:-

i) Distribution of Diagnostic Equipments and i) Investment and trading in Securities.

The Company doing quite well in Diagnostic Equipment segments The Company has shown much improved per- formance in this Segment and has earned profits of Rs. 195.80 lakhs in this Segment.

However, the Company has performed poorly in the Securities Segment as the investments made by the Company in the past few years have fared badly and therefore, the Company has incurred heavy losses which have affected overall performance of the Company adversely. The Company has not done any new investment in this segment in the present financial year.

7. Financial Performance:

The Revenue from operations for the FY 2022-23 marginally decreased to Rs. 2551.57 lacs as compared to the Revenue of Rs. 2,732.05 lacs in the previous year. The Profit Before Tax for the FY 2022-23 is Rs. 28.16 lacs as compared to Loss of Rs. 44.30 lacs in the previous year. The Profit After Tax for the FY 2022-23 is Rs. 112.48 lacs as compared to a Loss of Rs. 20.93 lacs in the previous year.

Particulars	31? March 2023	31% March 2022
Revenue from Operations	2551.57	2,732.05
Other Income	10.01	9.26
Total Revenue	2561.58	2,741.31
Total Expenses	2533.42	2785.61
Profit/{Loss) Before Tax	28.16	(44.30)
Profit/{Loss) After Tax	112.48	(20.93)
Other Comprehensive Income	(116.40)	(508.27)
Total Comprehensive Income for the Period	(3.92)	(529.20)

8. Opportunities And Threats:

The over reliance on one single Company namely, Abbott Point of Care, USA is not desirable. Therefore, the Com- pany is trying to rope in other companies in order to strengthen its bottom-line and also to diversify in other sectors of Pharma business.

9. Outlook:

The Company has gained lot of strength due to substitution of the Management and exploring opportunities in newer field of work thereby increasing its leverage and making it profitable venture. The expertise of the well experienced management will boost the Companys utilization of resources and is considered the greatest strength in making.

10.Key Risks And Concerns:

The Company is now into distribution of Diagnostic pharma Equipments. The Company holds rights for distribu- tion of such equipments namely, i-STAT Analyzers and its Cartridges manufactured by Abbott Point of Care, USA all over India. Similarly, the Company also holds distribution rights of Sphingotec Biomarkers and Joinstar System through Rivaara Labs Private Limited. The Company is taking efforts to obtain distribution rights from other es- tablished and well-known companies as well in order to mitigate risks which are usually associated with such line of businesses. The Company has formulated a policy and process for risk Management.

11.Internal Control System and their Adequacy:

For the purposes of effective internal financial control, the Company has adopted various policies and procedures for ensuring the orderly and efficient conduct of its business including adherence to companys policies the safe- guarding of its assets the prevention and detection of frauds and errors the accuracy and completeness of the accounting records and the timely preparation of reliable financial information.

There has not been any significant change in such control systems. The control systems are reviewed by the man- agement regularly. The same are also reviewed by the Statutory Auditors and Internal Auditors from time to time. The Company has also adopted various policies and procedures to safeguard the interest of the Company. These policies and procedures are reviewed from time to time. There has also been proper reporting mechanism im- plemented in the organization for reporting any deviation from the policies and procedures. Compliance audit is also conducted from time to time by external agencies on various areas of operations.

12.Human Resources Vis-A-Vis Industrial Relations:

The company recognizes the importance of human value and ensures that proper encouragement both moral and financial is extended to employees to motivate them. The human resources received commensurate atten- tion during the year considering the growth of the organization and the need arising there from.

13. Cautionary Statement:

The statements in the “Management Discussion and Analysis Report” section describe an optimistic approach of the management regarding the Companys visions strategies objectives projections estimates expectations and predictions. These may be “forward looking statements” within the meaning of legal framework. However, the annual performance can differ significantly from those expressed or implied depending upon the market condi- tions economic and climatic conditions Government policies and other incidental factors.