Gland Pharma Ltd Management Discussions.

Global Economy

The health crisis which started in the beginning of 2020, soon turned into an unprecedented economic and social crisis. Most of the economies around the globe contracted, with the global economy contracting by 3.4% in 2020. The global prospects started improving in the latter half of 2020, with fiscal supports offered by the countries starting to make an impact. Further, the announcement of additional fiscal supports in few countries and expectation of vaccines being available soon boosted the economic activity, especially in large emerging markets. China, India, and Turkey saw economic activity moving to pre-pandemic levels on the back of strong initiatives and a robust recovery in some sectors. Among the developed economies, Europe and UK have taken the major hit with large part of the economies having to be closed again in the end of 2020 due to rising cases. Although in USA, economic activities got a boost due to strong fiscal measures taken to tackle the meltdown. The prospect for recovery has improved with most countries bouncing back better than expected by the end of the year.


The successful and gradual deployment of vaccination and better than expected turnaround in latter half of 2020, is encouraging and as per Organisation for Economic Co-operation and Development (OECD) estimates the global economy is projected to grow at 5.6% in 2021. Despite certain uncertainties such as effectiveness of vaccination and its timely distribution, potential mutations of the virus, possible rise in inflation and tightening of policy support, the world has certainly improved and seem to be on a good trajectory. Key indicators such as oil prices and US long-term bond yields returning to their levels prior to the pandemic reflects the expected strong recovery. In the United States, faster vaccine rollout, increased demand substantially is expected to lead to a stronger recovery. With the revival in growth in one of the most developed economies, it is expected to create positive spill overs in other economies, especially key trading partners.

Indian Economy

Indian economy, along with other economies across the globe, witnessed the worst GDP contraction of 7.3%1 owing to the disruptions caused by the COVID-19 outbreak. To control spread of COVID-19 infections, strict lockdowns were imposed across the country during April and May 2020, bringing economic activities to a near standstill. As a result, Indias GDP contracted by 23.9% in the first quarter of FY 2020-212. The gradual ease of restrictions from June 2020, helped the economy witnessed a strong V-shaped recovery due to pent up demand across several sectors. While agriculture emerged as a silver lining, contract-based services, manufacturing and construction were hit the hardest, and continue to recover steadily. The increased government consumption-based reforms and aggregate net exports helped stage recovery in economic growth in the last two quarters of the fiscal.

The global Pharma market which was estimated at US$ 966 billion in 2016 has grown at a CAGR of approximately 3.2% to reach US$ 1,132 billion in 2021.

India is expected to strongly bounce back in FY2022, backed by rise in public and private investment, steady vaccination drives and an uptick in domestic demand.3 The growth will be supported by government stimulus packages and a prudent allocation in capital expenditure across core sectors. Further, the governments enhanced focus on reviving the manufacturing sector through production-linked incentive (PLI) scheme and various other initiatives such as ‘Make in India and ‘Aatmanirbhar Bharat is anticipated to contribute to sustain economic growth in the near long-term.

The Indian government in the Budget 2021-22 has shifted its approach for the healthcare industry with a focus on a more holistic growth focusing preventive, curative care and wellbeing.

BUDGET 2021-22

• Rs.2,23,846 crore allocated to healthcare, a 137% increase over previous year4

• A new central scheme PM AtmaNirbhar Swasth Bharat Yojana to be launched with an outlay of Rs 64,180 crore over six years to be run along with National Health Mission.

• Rs.35,000 crore will be spent on COVID-19 vaccines

• Pneumococcal Conjugate Vaccine to be rolled across the country

• 17,000 rural and 11,000 urban health and wellness centres to be set up

Industry Overview

Global Pharmaceutical Market

Global pharmaceutical industry is undergoing a major revamp. Cross-country and cross-enterprise collaboration in areas such as research and development, flexible production, focus on precision medicine, attention on supply-chain management, and technology innovation with emphasis on digitisation were some of the major trends seen in 2020. The global Pharma market which was estimated at US$ 966 billion in 2016 has grown at a CAGR of approximately 3.2% to reach US$ 1,132 billion in 2021.5

Source: IQVIA Midas Global Pharma Data MAT March.2021

At present the developed markets of North America and Europe dominate the pharmaceutical market with over 70% market share. With growth picking up at a faster pace in the ‘pharmerging markets like China and India the market share of these countries are expected to increase steadily. The market is currently mostly innovator based, but the share of generic (medicine that has gone off-patent) is expected to rise from 35% as of 2020 to 37% by 2025, growing at a CAGR of ~5.3% to reach ~ US$ 509 billion.

In terms of product type the market share are made of generics and innovator molecules with Generics have shown a growth at a CAGR of ~1.7% while innovators have grown at a CAGR of ~4.1%, during the period of 2016-21.

North America, is the largest market for generics and is expected to remain so, though the growth is expected to slow down due to price erosion resulting from increased competition in the region. While, India and RoW is expected to grow at a comparatively very fast rate driven mainly by volumes.

While, in terms of method of delivery, the market is made majorly of oral solids and injectables. The global Oral solid market was estimated to be US$ 501 billion in 2021, which is also the largest form of delivery, and has grown at approximately 1% CAGR during 2016-21. Injectables with around 41% share are a close second and is the fastest growing form of delivery growing at CAGR of ~7.7% over 2016-2021, estimated at US$ 467 billion in 2021.


Injectables are the second largest form of drug delivery systems and account for over 41% of the global market share, on back of increasing volume and marginal increase in prices. North America the biggest market has been capturing more market share as the usage increases in the region. While, Japan, Russia, Korea, Australia and Saudi Arabia are some of the other key markets contributing to more than two-third of overall RoW injectables market.

Global Injectable Market – Geographical Distribution (Values in US$ billion, 2016-21)

While within the injectable market, generics-injectable valued at US$ 133 billion is in 2021. It represents 28% of overall injectables by value. Generic Injectable penetration has mostly increased across the geographies during the last few years both in terms of volume and value.

Global generic Injectable market - Geographic distribution (Values in US$ billion, 2016-21)

Injectables have numerous advantages over other traditional dosage forms:

• The parenteral route of administration is preferred over the oral route for treatment of many chronic and life-threatening diseases due to better patient compliance.

• Long acting Injectables/depot delivery systems enhance product quality by decreasing dosing frequency, simplifying the drug regimen. Parenteral depots reduce the relapse rate of disease and the maintenance phase of therapy, hence improving efficacy and treatment adherence.

• Injectables have almost 100% bioavailability as they avoid the 1st pass metabolism. They have an immediate onset of action which is better than other dosage forms.

• Injectables allow patients who cannot intake other dosage forms due to difficulties in orally consuming the medication to adhere to their medication regimen.

• The development of self-injection devices like pen-injectors and auto-injectors has made administering drugs much more convenient and relatively easy for patients.

• There is an increase in the number of new drug formulations that are not very water soluble and/or have very low permeability to allow for their adequate absorption from the gastrointestinal tract following oral administration6. Hence the only way to make such drugs bioavailable in the body is through an intravenous administration

Key Markets Highlights

Biggest Pharmaceutical Market- USA

Within the $534 billion (in 2021) United States pharmaceutical market is expected to grow with the rise in ageing population. of 65+ years. Multinational companies form the core of the business and operate across the world in both developed and emerging markets. Despite of a strong research and development capabilities and innovations, the USA market has been widely open to generics. USA has the highest generic sales in the world, with ~28% share in 2020.

Injectables constitute the largest form of drug delivery with a 48% market share in 2021, while the US injectable market was estimated to be at ~US$ 259 billion (in 2021) and has grown at ~11% CAGR during 2016-21.

Key Drivers

Ease of Administration

Innovation in the field of New Drug Delivery Systems (NDDS) has led to a rising demand for self-administered medications. The invention of new injectable delivery devices like auto injectors, pen injectors, pre-filled syringes (PFS) and needle-free injectors has made self-administration of drugs more convenient and easier for patients.

Treatment of Chronic Diseases

Chronic diseases like cancer (chemotherapy drugs) and diabetes (insulin) which are treated primarily through injectables is witnessing an increased demand. Diabetes prevalence has doubled since 1980 and is expected to continue rising, with increase in obesity, sedentary lifestyle, poor eating habits, and ageing population. The number of cancer patients is expected to increase from 18 million in 2018 to 23 million plus by 2030.

Novel markets

Pharmaceutical companies are developing and investing heavily in the development of new complex molecules to find new cure for diseases such as rheumatoid arthritis, multiple sclerosis, cancers and auto-immune disorders. These treatments are now being administered through injectables, especially prefilled syringes, is becoming the preferred drug delivery systems due to their ease of handling, less chance of overfills and increased safety to patients. There is also an increase in the number of new drug formulations which can only be administered intravenously.

Growth of Biologics

Biologics are gaining popularity in the pharmaceutical industry. In the coming few years, many biologic drugs will witness loss of patent exclusivity thereby resulting in a surge in their biosimilar products. This will lead to increased demand for the injectable drug delivery devices for these formulations.

Competitive advantage

India is one of the leading manufacturing hubs for generics and the biggest exporter, with a competitive advantage in cost and availability of skilled manpower. Indian pharmaceutical companies are continuously investing in research and development activities to expand their presence. They have also been partnering with various multi-national companies to improve their reach and product portfolio.

Market Entry Barriers

High capital investments, operational cost, manufacturing complexities, stricter compliance requirement due to the sterile nature of products and high-quality standards lead to natural entry barrier in the industry. The inherent complex nature of injectables leads to a concentrated market as compared to other segments.

Growing Demand in Domestic Market

Government policies such as Ayushman Bharat are expected to improve the diagnosis and treatment rates in India. Growing insurance, improving affordability and increasing incidence of chronic diseases due to changing lifestyle will lead to increased demand of pharmaceuticals drugs in the country.

The government recently approved a Production Linked Incentive (PLI) scheme over a period of FY 2020-21 to FY 2028-29, with an outlay of RS.15,000 crore to provide a further boost to the pharmaceutical sector. The scheme intents to increase self-reliance by increasing drug security, support the domestic production capability in Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs). It is also expected to generate employment for both skilled and un-skilled personnel

Challenges Regulated Prices

Pharmaceutical prices in most countries are regulated. Imposition of limits on the trade mark-ups or overall price limit the scope of growth in terms of value.

Strict Quality Compliance

Quality Requirements for injectables drugs are comparatively more stringent due to its inherent nature of application. In the last few years, regulatory scrutiny has increased with multiple USFDA audits and other regulatory audits being conducted at regular intervals.

Differentiated Product Portfolio

Given the competitive landscape of the industry, pharmaceutical industry players constantly need to upgrade their product offering in line with changing demand and expectation of the consumers. The companies inability to meet or offer the correct product at the right time might have adverse impact on its operations.

COVID-19 impact on pharmaceutical industry

COVID-19 pandemic has had a multifaceted and unequal impact on the pharmaceutical industry. Products used primarily in managing infection control, treatments associated with respiratory infections, have seen an increased demand. The total cumulative spending on COVID-19 vaccines througRs.2025 is projected to be $157 billion, largely focused on the initial wave of vaccinations to be completed 2022. In later years, booster shots are expected to be required on a biennial basis as the durability of immunity and the continued emergence of viral variants make an endemic virus the most likely outcome.

The pandemic has made government of many countries including India, cautious about their over-dependency on imports to support domestic demand for medicines. This is expected to bring some changes in policies to increase long term self-reliance by encouraging increase in indigenous capacities and to curtail future shortages by diversifying pre-qualified import base. Pharmaceutical companies will need to reassess their manufacturing base and distribution channels, and prepare for such shifts over the medium to long term.

Company Overview

Incorporated in 1978, Gland Pharma is today one of the fastest growing generic injectables-focused companies. The Company offers services that cover the entire injectables value-chain, including contract development, own development, dossier preparation and filing, technology transfer and manufacturing across a range of delivery systems. Over the last four decades, the Company has proven its excellence in evolving into a renowned complex injectables development & manufacturing Company.

The Companys portfolio of injectables products spans across multiple therapeutic areas and delivery systems. We are present in sterile injectables, oncology and ophthalmics, and focus on complex injectables, NCE-1s, First-to-File products and 505(b) (2) filings. The delivery systems include liquid vials, lyophilized vials, pre-filled syringes, ampoules, bags and drops. With a strong R&D team and growing manufacturing capacities, the Company is widening its offerings into complex injectables.

Over the years, the Company has made substantial investments in its manufacturing infrastructure, with eight manufacturing facilities in Southern India, comprising of four finished formulations facilities with a total of 23 production lines and four API facilities. The manufacturing facilities consists of two sterile injectables facilities, one dedicated Penems facility and one oncology facility with finished formulations facility with a capacity of 767 million units per annum. The Company sells its products primarily under a business to business ("B2B") model in over 60 countries with its core markets being United States, Europe, Canada, Australia and India.

Core Strengths

The Company has demonstrated ability to advance a product from the R&D stage to commercialisation. Some of the key strengths include:

Diversified Portfolio & Strong R&D

The Company has a vast product portfolio with expertise in synthesis of complex drug molecules. It has established a portfolio of injectable products across various therapeutic areas and delivery systems. The Company is expanding its product development and manufacturing capabilities in complex injectables and new delivery systems underpinned by the internal R&D expertise. The R&D laboratories are engaged in the development of key processes such as formulation development, analytical method development, API process development and stability studies.

Regulatory Capabilities

The Companys product capabilities are further reinforced by its ability to facilitate registration of injectables across product lifecycles and markets. Its regulatory team has extensive experience in the regulatory requirements of key markets to facilitate new product registrations. The team is constantly engaged with regulators including the USFDA, and plays an active role in achieving operational efficiencies by undertaking CBE-30 filings for site and line changes as well as filing for change of APIs when cheaper sources are available. The Company along with its partners has 284 ANDA filings in the United States, of whicRs.234 were approved and 50 were pending approval.

Quality Control & Certifications

The Company has established a consistent record of regulatory compliance. The Company has a strong internal control system and team to assist in adhering to the multiple norms. The Company is certified as GMP compliant at all the manufacturing facilities by the USFDA, with certain facilities also having certification by the MHRA (UK), ANVISA (Brazil), AGES (Austria), TGA (Australia) and BGV Hamburg (Germany). It has also received WHO GMP certifications for its facilities from the Drugs Control Administration (Governments of Telangana and Andhra Pradesh, India) (DCA) and has three ISO certifications for quality management, environment management and occupational health and safety management systems.

Backward Integration

The Company is vertically integrated and has four API facilities with a production capacity of 11,000 kg per year. The facilities provide in-house manufacturing capabilities for critical APIs, 32 ANDAs supporting the Companys key products. As on March.31, 2021, the Company has filed 45 DMFs in the United States.

B2B model complemented by B2C

The Companys business model is primarily B2B covering IP-led, technology transfer, own filing and contract manufacturing models, complemented by a B2C model solely for its domestic market - India.

Experienced Management

Further, the Company is managed by a professional and experienced team with significant expertise in the pharmaceutical industry.

Performance during FY 2020-21

Business performance

Particulars FY21 FY20 YoY growth
USA, Europe, Canada and Australia (Core Markets) 23,610 19,344 22%
India 5,564 4,672 19%
Rest of the world 5,455 2,316 136%
Total 34,629 26,332 32%

Key business updates for Financial Year 2021

• Key markets of US, Canada, Europe and Australia accounted for 68% of our revenue and witnessed 22% Y-O-Y growth in revenues. The growth was on account of launch of new products and volume growth in existing products with ramping up of capacities. The Company launched 47 product SKUs during the year. Some of the new products launched in these markets during the year are Micafungin, Bivalirudin in RTU format, Ziprasidone.

• Rest of the World business has accounted for 16% of our FY21 revenue and witnessed 136% growth in revenues. Rest of the world markets sales has been driven by new partnerships and increased penetration geographically.

The Company entered new markets like Singapore; Israel; Saudi Arabia, and CIS Countries.

• Domestic market of India accounts for 16% of our FY21 revenue and witnessed 19% growth in revenues. Along with volume growth in the core portfolio of products ramping up of Remdesivir supply has enabled the Company to achieve the growth. The Company launched 10 product SKUs during FY21.

• During the financial year 2021, the Company has filed 21 ANDAs, 5 DMFs and received 32 ANDA approvals.

• As at March.31, 2021, the Company has filed total 284 ANDAs, out of whicRs.234 were approved and 50 are pending approval. It also has 1,501 product registrations globally.

• The total R&D expense for the financial year 2021 was RS.1,220 million as compared to RS.922 in the previous financial year, which is at 3.5% of the Revenue and an increase of 32% over the last year.

• On the quality and regulatory side, all the plants of the Company continue to remain approved by US FDA.

• During the year, The Company entered into an agreement to supply upto 252 million doses of RDIFs Sputnik V COVID-19 vaccine

• Total Capex incurred during the financial year ended March.31, 2021 was RS.2,288 million compared to RS.1,947 million for the previous financial year. The Company is expanding its sterile injectable facility located in Hyderabad. It is also enhancing its production capacity for APIs in Vizag and adding capacity in its oncology facility to take care of the planned launches in forthcoming years.

• The Company has entered into an agreement for the purchase of R&D and manufacturing facility of Vitane Biologics, a bio-pharmaceutical company located in Hyderabad.

Financial performance
(Rs in million)
Particulars FY21 FY20 YoY growth
Revenue from operations 34,629 26,332 32%
Total Income 35,977 27,724 30%
EBITDA 14,370 10,946 31%
EBITDA Margin (%) 40% 39%
PBT 13,348 9,929 34%
PBT Margin (%) 37% 36%
PAT 9,970 7,729 29%
PAT Margin (%) 28% 28%

The Company has reported revenues of RS.34,629 million in 2020-21, registering growth of 32% compared to RS.26,332 million in the previous year due to new launches and volume growth in existing portfolio supported by the increased capacity. As a result, the Companys EBITDA stood at RS.14,370 million in 2020-21, a 31% increase compared to RS.10,946 million in the previous year. The Company reported a post-tax profit of RS.9,970 million in 2020-21, compared to RS.7,729 million in FY2019-20, an increase of 29%.

During the year ended March.31, 2021, the EBITDA margin improved from 39% in FY2019-20 to 40% in FY 2020-21. During the same period, the net profit margin is at par with previous year of 28%.

The Company continues to expand its presence on the foundation of research and development and its ability to deliver solutions in complex therapeutic areas. Going forward, the Company will continue in its pursuit to create value for end-patients and its customers, building a sustainable entity in the years to come.

Key financial ratios

Particulars FY21 FY20 Variance
Debtors turnover 5.16 4.38 18%
Inventory turnover 1.58 2.10 (25%)
Current ratio 4.13 4.24 (2%)
EBITDA margin 40% 39% -
Net profit margin 28% 28% -
Return on net worth 17% 21% (19%)

• Debtors Turnover = Revenue from Operation / Trade Receivable

• Inventory Turnover = Cost of Goods Sold / Inventory

• Current Ratio = Current Asset (excluding cash and bank balances) / Current Liabilities

• Return on Net worth = Profit after Tax / Net Worth

Return on Net Worth - During the financial year 2020-21, the Company completed its Initial Public Offer and it raised RS.12,500 million by issuing fresh shares to fund incremental working capital, future capital expenditure and for general corporate purpose. Pursuant to this, Net Worth of the Company increased from RS.36,462 million as on March.31,2020 to RS.59,032 million as on March.31, 2021. While Profit After Tax increased by 29% in FY 2020-21 over previous year, the increased Net Worth of the Company resulted in reduction in Return on Net Worth.

Inventory Turnover ratio - During the financial year 2020 due to supply chain disruption because of COVID, Inventory level came down as on March.31, 2020. The Company started restocking of raw material since March.20 in line with the business requirements and hence the Inventory Turnover ratio declined.

Geographical performance

Revenue by geography (absolute terms)

(Rs in million)

Region 3-year CAGR y-o-y growth FY21 FY20 FY19
Australia 13% 23% 161 131 88
Canada 56% 41% 659 469 230
Europe 40% 29% 1,508 1,169 1,100
India 23% 19% 5,564 4,672 3,878
USA 23% 21% 21,282 17,575 12,777
RoW 87% 136% 5,455 2,316 2,369
Total 34,629 26,332 20,442
Particulars FY21 FY20 FY19
Australia 1% 0% 0%
Canada 2% 2% 1%
Europe 4% 4% 5%
India 16% 18% 19%
USA 61% 67% 63%
RoW 16% 9% 12%
Total 100% 100% 100%

Future Strategy

The Company is aggressively looking to expand its product portfolio and capacity both organically and inorganically. The Companys primary focus will continue to be on maintaining high-quality standards across products, processes and facilities and deliver value to all its stakeholders.

New Product Development

The Company has always maintained a focus on achieving a diverse product mix offering with a robust product pipeline. The Company will continue to focus on high value generic injectables including complex molecules, First to File products, 505 (b) (2) products.

The Company will leverage its strengths in injectable manufacturing to enter vaccine manufacturing for Sputnik-V. Learnings and infrastructure support from vaccine business will accelerate our long term strategy of entering into bio-similar CMO/CDMO space. At the same time the Company is expanding in high technology products such as peptides, long acting injectables, hormones, suspensions. We are also exploring building niche capabilities for manufacturing pens, cartridges and inhalation products.


To cater to the growing demand, the Company aims to continue investing in R&D and manufacturing capabilities. The Company will continue to invest in new technologies to maintain competitive strengths in both product development and manufacturing capabilities for complex injectables. In its endeavour to integrate its operations, the Company will further strengthen its API manufacturing capabilities for injectables.

Consistent regulatory track record

The strong R&D capabilities at the Company aid further to its growing portfolio of filings. As on March.31, 2021, the Company has 284 ANDA filings in the US, witRs.234 approvals and 50 pending. Out of these, 115 are owned by the Company witRs.85 approvals and 30 pending for approval. The Company shall continue with its pursuit of filings and increasing approvals for product registrations in the coming years as well.

Geographic Footprint

The Company continues to maintain its strategic focus in markets of the United States, Europe, Canada and Australia, with an eye on the "pharmerging" markets of China, India and Brazil. In its core markets the Company will continue to focus on establishing effective relationships with existing and new marketing partners to commercialise the product portfolio, while maintaining a prudent product mix. The Company intends to leverage presence of its parent company, Fosun Pharma, in China and to further widen. further widen its presence in new countries.

Acquisitions and partnerships

In addition to organic capacity expansion and product development, the Company continues to explore M&A opportunities that meet the internal return on capital benchmarks. The Company continues to explore possible acquisitions across local manufacturers as well as API suppliers, that complements the Companys overall long-term strategy.

This includes acquisition in the field of fermentation technology, corticosteroid APIs and hormonal APIs. We are evaluating investments in to assets that help strengthen backward integration, in areas like fermentation technology, corticosteroid APIs and hormonal APIs.

Product Lifecycle Management

The Company shall strengthen its value-proposition by focusing on lifecycle management of products across multiple processes. Vertical integration across critical APIs ensures cost efficiencies. The Companys efficient supply chain also helps curtail costs resulting in optimal inventory levels and timely filing of applications.

Human Resources

The Companys approach to people encompasses multiple aspects to ensure overall empowerment and growth of its employees. Right from safe working environment to developing career goals, the Company strives to build a cohesive, value-based approach towards work culture.

In FY 2020-21, as part of ongoing journey to build a sustainable and diverse workforce, it focused on capability building. The Company continued to develop and increasingly engaged, diverse and capable workforce. In addition, health and safety underpinned the values to create a safe workplace to deliver sustainable performance. The Company has a robust health and safety framework, backed by an efficient due diligence system in place. As on March.31, 2021, the Company had 3,961 employees on its payroll.

Responding to COVID-19

From the very early onset of this unprecedented crisis, Gland Pharma has put in adequate safeguards to ensure health and safety of its employees. The measures taken at the Companys facilities for safety of its employees ensured un-interrupted supply and distribution channel. Social distancing measures were strictly followed at all times, workplace fumigation and sanitisation of common areas, surfaces etc., and were done at regular intervals. Temperature Screening / Thermal Scanning stations at the entry gate were installed, while Video awareness stations too helped sensitize employees on precautions to be taken.

The Company arranged bus pick-ups from various districts in Telangana for the stranded employees during lockdown. Gland Pharma caters to various critical lifesaving drugs and is a leader in supplying Enoxaparin, Rocuronium, Cisatracurium etc. As various companies had to shut down their manufacturing plants across the globe there was a huge supply gap for these essential medicines. During such times, to cater to the unanticipated demand it required a massive team effort to deliver the orders.

The team focused on accelerating the replenishment of raw materials. The Company leveraged its customer relationships to request supplier for accelerated deliveries for it to resume production operations. The production schedules were planned in a way to minimize loss of capacity utilisation on account of delay of materials. In terms of logistics preparedness, the Company optimized the dispatch schedules to efficiently utilize the space and made advance booking of containers to confirm the space requirements.

Adherence to accounting standards

The Company continues adhering to standard accounting policies under the Indian Accounting Standards (Ind AS), applicable since 1st April, 2016. These policies are to be read along with the relevant applicable rules and accounting principles. Changes in policies, if any, are approved by the Audit Committee

Risk Management

Risk management is an inherent part of the Companys business and management is proactive in terms of managing risks in an organised manner. By virtue of the nature of its business, the Company is susceptible to various risks that might arise due to economic, political, legal, environment, people, operational, currency fluctuation etc. The Companys risk management strategy is governed and monitored by the Risk Management Committee. Executive Management Team regularly reviews the key risks and monitors the mitigating measures adopted by the Company. The Risk Management Committee is evaluating initiatives to further strengthen risk management framework of the Company considering our growth strategy and the dynamic business environment in which we operate.

Internal Controls

The Company has strict procedures for internal controls. The Board of Directors and Executive Committee have established a comprehensive internal control system in place. Over the years, it has invested in enhancing its internal control framework and process, alongside the existing embedded controls, standards and monitoring controls.