Your Company constantly reviews its product market portfolio with the view to sustain its growth. The Company has driven fiscal growth by focusing on the following areas.
(a) Industry structure and developments:
The pharmaceutical market in the year 2015 grew at 1.1 % and India accounts for about 2.4% of the global pharmaceutical industry and is expected to expand at a rate of approx 15 % by 2020. The growth is primarily driven by US, China, UK and India.
(b) Opportunities and Threats:
The pharma business related with basic human needs and introduction of innovative and cost effective medicines enjoys maximum opportunities in a densely populated country like India.
Availability of sub-standards and substitute products in the market, fierce competition are major threats to the business stability for a small size Company like ours. However, the management is taking all necessary steps and continuously adopting the strategy not only to stand in the market but to perform impressively under the current scenario.
(c) Segment–wise or product-wise performance:
The Company operate in single segment i.e. pharmaceuticals. The results of the Company under review depict business growth during the period.
Your Company is fully aware of its capabilities and strengths and is going ahead with hand holding strategy with
Pharmaceutical majors. This strategy has paid well in the recent past. The Company is also finding new avenues by expanding its existing production capacity.
(e) Risks and concerns:
Risks, liabilities and losses are part and parcel of any industry and need to be tackled through well forecasted strategies and actions.
(f) Internal control systems and their adequacy:
The Company ensures the orderly and efficientconduct of its business, including adherence to company’s policies, the safeguarding 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, as required under the Act, 2013. The statutory auditors while conducting the statutory audit, review and evaluate the internal controls and their observations are discussed with the Audit committee of the Board. Other statutory requirements especially, in respect of pharmaceutical business are also vigorously followed in order to have better internal controls over the affairs of the Company.
(g) Discussion on financial performance with respect to operationalperformance:
The operational performance during the year under review was one of the best in recent past. The financial performance is getting improved due to better production output as well as reduction of interest. However, much needs to be done in this area as past losses burden is still impacting the financial performance of the Company.
(h) Material developments in Human Resources / Industrial Relations front, including number of people employed:
The core of the Human Resource philosophy at Gujarat Themis is empowering human resources towards achievement of company aspirations. Your Company has a diverse mix of youth and experience which nurtures the business. As on March 31, 2016 the total employee strength was 1126.
Your Directors have pleasure to place on record their sincere appreciation for the continued co-operation and support extended to the Company by Union Bank of India, all the Employees, Yuhan Corporation, Indian promoters, Dept. of Chemical & Petrochemical and various other Government authorities.
|For and on behalf of the Board of Directors
|Dr. Dinesh S Patel
|Place : Mumbai
|Date : 11/05/2016