Godavari Drugs Ltd Management Discussions.

Forward-Looking Statements

We have in this report, discussed certain forward looking statements to enable shareholders and investors to understand our prospects so as to enable everyone to take informed investment decisions.

Certain statements forward looking statements

Industry Structure and Developments

Due to the advent of COVID 19, global economy has suffered a massive blow. Escalating trade tensions, tightening financial conditions and deteriorating risk sentiment have resulted in a weak economic growth globally. The Global Pharmaceutical Industry is expected to be valued at USD 1.57 trillion by 2023. Despite all the hurdles, market is looking to grow in major regions.

India is the largest pharmaceutical market in Asia and is also one of the major generic drug provider to the world. Aging, life style diseases, rising income of individuals, improving health insurance coverage, increasing population, is acting as a propellant to the growth of the industry.

Opportunities and Risks

The company is working towards further increasing its customer base in the Quinolones segment. The company is looking to add products in the anti-inflammatory, neurology and diabetology segments in particular. Efforts are being made by the Business development and Research and Development team to achieve these targets.

The statements in the Management discussion and analysis describing the companys goals are estimates regarding future performance are forward looking statements. However, these statements are subject to certain uncertainties and future events. The company remains cautiously optimistic about its prospects and pipeline while it gauges the impact that COVID 19 and related uncertainties would have on the market.

The financial highlights are as under: - (Rs. in Rupees)
Sales for the year 2020-2021 1230802822
Profit after tax 41280731
Paid up equity share capital as on 31st Mar2021 75305000
Finance costs 33080135
Depreciation / Amortisation 12226671
Employee Benefit Expenses 39431690

Risks and Outlook

The company has an integrated risk management approach through which we assess risks on a regular basis to ensure that a robust system on risks controls and mitigation is in place management review on the above is done on periodic basis to keep an update and address emerging challenges

Internal control systems

Adequate internal control system in line with the nature of the companys business and of its since of its operations are in place and have been operating satisfaction. Internal control systems are designed to ensure reliability of financial reporting, timely feedback an achievement of operational and strategic foals, compliance with policies, procedure, applicable laws and regulation.

There are no instances of significant fraud of which we have become aware of and involvement therein of the management or an employee having a significant role in the companys internal control system over financial reporting We accept the responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to address these deficiencies

Human Resources

Human recourse development continues to remain a focus area for the Company. It has a structured process to identify recruit, train and retain young talent. Nurturing young talents to take on senior and responsible positions by mentoring and coaching them through various programmes has been our continuous effort.

Company believes that employees are the key to achieve its objectives and move on the growth path. There were cordial and harmonious industrial relations during the year.