mesco pharmaceuticals ltd share price Management discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Pharmaceutical Market

The year has been marked by uncertainty across the world because of socio economic effect of COVID 19. In addition to this, mutations of the virus have added to the existing threat of COVID-19, making an already difficult situation even more tenuous. The global pharmaceuticals market is expected to grow from $1228.45 billion in 2020 to $1250.24 billion in 2021 at a compound annual growth rate (CAGR) of 1.8%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.

India is expected to grow at a rate of 12.5% in FY 2020-21 per the projections made by the IMF. Indias domestic pharmaceutical market is estimated at US$ 42 billion in 2021 and likely to reach US$ 65 billion by 2024 and further expand to reach US$ 120-130 billion by 2030. The estimated growth rate for the country is higher than the estimations for many advanced economies. This is due to the countrys strong recovery in late 2020 and early 2021 as restrictions eased and the economy started to open up.

B. THREATS & CONCERNS

The Company was being hit by financial crisis is unable to carry on any business activity during the year under review. Any slowdown in the growth of Indian economy or any volatility in global market, could also adversely affect the business. The Company is also prone to risks pertaining to change in government regulations, tax regimes, and other statutes.

C. SEGMENT WISE OR PRODUCT WISE PERFORMANCE

Business activity of the company was closed since many years; and therefore, no product was sold during the year.

D. REVIEW OF OPERATIONS AND FUTURE PROSPECT

Company at present is not carrying any activity/business.

E. OUTLOOK

The management continues to be positive on the revival of the Company and is trying their level best for the same. The Company was under immense pressure and still trying to come out of the same and is positive on the revival of the Company.

F. MANAGING RISK AND TRANSFORMATION INTERNAL CONTROL

While the economic outlook still looks uncertain, some signs of revival are visible. With most market participant expecting the coming of decade to represent after subbed environment for both, financial return and transaction activity, the industrial growth is positive on years of double digit returns/ volume.

G. SYSTEMS AND ADEQUACY

The Company has established internal control systems for ensuring optimum use of resources and safeguarding the assets. The Internal Control Systems and procedure are adequate and commensurate with the size of the Company. These are routinely tested and certified and which covered all offices, and key business areas. The Internal audit team reviews the quality of planning and execution of all ongoing projects and activities involving significant expenditure to ensure that management controls are adequate to yield "value for money".

H. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Company at present is not carrying any activity at present.

I. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.

Your Company has cordial relations with its employees. The company commends the commitment, dedication and competence shown by its employees in all aspects of business. The management has always remained conscious of these inter-related factors and maintained a favourable climate during the year to suit the growth and excellence in the Company. The management has always strived to maintain cordial relationship between the staff, workers and management.

J. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO, ALONGWITH DETAILED EXPLANATIONS THEREOF, INCLUDING:

I. Debtors Turnover Ratio	: 0
II. Inventory Turnover	: 0
III. Interest Coverage Ratio	: 0
IV. Current Ratio	: 2.69/1.73
V. Debt Equity Ratio	: 1.01/-1.02
VI. Operating Profit Margins	: 0
VII. Net Profit Margins	: 0

VIII. Details Of Any Change In Return On Net Worth As Compared To The Immediately Previous Financial Year With A Detailed Explanation Thereof: There were no operations carried out by the Company and company is bearing Losses only.

K. CAUTIONARY STATEMENT

This Management Discussion and Analysis statements of Annual Report has been included in adherence to the spirit enunciated in the code of corporate Governance approved by the Securities and Exchange Board of India, Statement in the Management Discussion and Analysis describing the Companys objectives, projections estimates expectation may be "Forward-Looking Statement" within the meaning of applicable securities laws and regulation. These statements are subject to certain risks and uncertainties. Actual result could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/ supply and price conditions in the Government policies, economic development, political factors and such other factors beyond the control of the Company.