Omkar Pharmachem Ltd Management Discussions.
The Company has not done any commercial activity during the year. The Board regularly reviews the market situation and opportunities to restart commercial activities. The Audit Committee of the Company has regularly reviewed internal Control System of the company.
Industry structure and development
The global Pharma industry has fared well amidst the past economic downturns. In light of todays volatile marketplace, which is faced with economic, political and social challenges, this industry is faced with reform-driven pricing pressures and increased demand for value in innovation. Significant global unmet needs, aided by favourable demographic trends, make it likely that this industry would enjoy long term growth. Driven by the recent wave of innovative therapies approved by regulators, reports suggest that the global drug spending could be in trillions by 2022.
Globally, spending on healthcare correlates well with general economic strength of a country. Given the high contribution of the USA, Russia, Brazil and China in global growth of healthcare spending, coupled with pricing pressures in the United States and the unstable economic conditions in large emerging markets have led to a slowdown in the global marketplace. Strict measures taken by the governments with regards to health care budgets and/ or reductions in out- of-pocket expenditures in these countries have impacted the spending. Aging populations, rise of chronic diseases and the introduction of innovative and frequently expensive treatments (e.g., for cancer and Hepatitis C) are some of the main factors, which would continue to drive growth in health care spending.
However, many countries have taken steps to contain health care costs that includes price control, value-based pricing and reimbursement along with pro-generic and pro-biosimilar policies. Companies are responding to the current changing market dynamics and are trying to position themselves for continued growth through portfolio transformation, mergers and acquisitions (M&A), cost-cutting, sharpened focus on high-performing therapeutic areas (TAs) and on key geographic markets.
Overall Review, Opportunities and challenges
During the year the company has not done any manufacturing or other business activity. Due to current tough market situation, the company has decided not to proceed further for starting commercial activity and to wait till appropriate environment is established.
The Indian Economy is expected to register GDP growth rates of 7% to 10% per annum over the next several years. It is also expected that the economy of the world as overall will also come out of the recession. The Company is likely to benefit substantially from this economic growth by way of starting its activities.
Adequacy of Internal Controls
The Company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition, and that transaction are authorized, recorded and reported correctly. The internal control system is designed to ensure that the financial and other records are reliable, for preparing financial statements and other data, and for maintaining accountability of assets.
Segment wise Reporting
As there is neither segments nor has different products, requirement of presentation of segment wise performance is not applicable to the company.
Human Resource Development
The company intends to give required training to its personnel to have personnel development of the employees contributing to the growth and development of the company, as and when required.
Details of significant changes in key financial ratios alongwith explanation
In compliance with the requirement of the Listing Regulations, the key financial ratios of the Company alongwith explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year will be termed as significant changes), has been provided hereunder:
|3||Interest Coverage Ratio||-18.262||-10.4304||42.88%||In the Financial year 2017-18 interest was paid for the part of the year, as a result the denomi- nator in the formula of interest coverage Ratio was small and as a result loss related to per rupee of interest was high whereas in current year interest was paid for entire year and there- fore loss related to per rupee of interest is less and hence there is increase in Interest Coverage ratio.|
|4||Current Ratio||0.336||0.033||90.30%||1. Sundry Debtors of Rs.745614/- which was outstanding since many years and which was bad and doubtful written off during year and so current asset is reduced by that amount as compared to earlier year which amounts to 79% change in current assets.|
|2. Similarly there is increase in current borrow- ing by an amount of Rs. 3354695/- contribut- ing to 138.72% change in current liabilities. Others are minor changes|
|3. The change in ratio is only of 0.30. But total current assets and total current liabilities be- ing low in terms of rupees, minor changes in rupee terms shows higher change in per- centage.|
|5||Debt Equity Ratio||0.03093||.071598||56.79%||1. There is increase in current borrowing by an amount of Rs. 3354695/- contributing to 138.72% change in total liabilities.|
|2. The change in ratio is only of 0.04. But total liabilities being very low in terms of rupees, minor changes in rupee terms shows higher change in percentage.|
|6||Operating Profit Margin (%)||0.00||0.00||0.00%||NA|
|7||Net profit Margin (%)||0.00||0.00||0.00%||NA|
|8||Return on Net worth||0.00||0.00||0.00%||NA|
|For and on behalf of the Board of Directors|
|For Omkar Pharmachem Limited|
|501, Mahakant Building,||(Anurag Sharma)||(Parminder Sharma)|
|Opp.: V. S. Hospital, Ashram Road,||Managing Director||Director|
|Ellisbridge, Ahmedabad 380006||DIN-02289261||DIN- 00176300|
|A-727, Sarita Vihar,||House No. 65, I Block,|
|New Delhi-110076||Near Gurudwara|
|Kutia Sahib, B.R.S. Nagar|
|Date : 31st August, 2019|
|Place : Ahemadabad|