Oxygenta Pharma Management Discussions


MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY REVIEW:

The Indian pharmaceutical market is the third largest in terms of volume and thirteenth largest in terms of value. The pharmaceutical industry in India produces a range of bulk drugs, which are the key acting ingredients with medicinal properties that form the basic raw materials for formulations. Bulk drugs account for roughly one-fifth of the industry output while formulations account for the rest. India also has the expertise for active pharmaceutical ingredients (APIs) and sees significant opportunities for value-creation. Indias generic drug producers hold a strong position in the global supply chain and play an integral role in developing the pharmaceutical industry.

RISKS AND CONCERNS:

The company is no exception to the competition from the market, new technologies and stringent patent laws. The Company has already identified such risks and trying to counter them over a period of time.

OPPORTUNITIES AND THREATS:

There are opportunities in the pharmaceutical Industry to develop new products through proper research and development and there is no doubt that the industry will thrive. Your Company also has good opportunities in the export markets. Your Company has been making concerted efforts to reach out to the export markets through active participation in Exports Industry Trade Shows. The results of these efforts are and we expect success in the coming years.

Another challenge is the continuous increase in the raw material input costs which increases the pressure on the profitability of your Company.

SEGMENT WISE PERFORMANCE:

Segment wise analysis of performance is not applicable to your Company under Accounting Standards 17 because there is only one segment i.e. Pharmaceutical.

OUTLOOK:

The outlook for the industry and consequently for your Company during the current financial year is reasonably good subject however to the effects of government policies, inflationary pressure and general global slowdown which is bound to affect your company.

INTERNAL CONTROL SYSTEMS & ADEQUACY:

The Company has proper and adequate internal control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal. All the transactions are authorized, recorded and reported correctly. The internal control system provides for well documented policies, guidelines, authorizations approvals and procedures. The observations arising out of audit are subject to periodic review, compliance and monitoring. The significant observations, made in internal audit reports, along with the status of action thereon are reviewed by the Audit Committee of the Board of Directors on a regular basis for future appropriate action, if deemed necessary.

FINANCIAL PERFORMANCE:

Since the Company has started its commercial production in the month of July 2015 after fire accident, it is in the process of stabilizing the manufacturing and marketing. Revenue from operations and operating income is less when compared to the amount of expenditure which is due to fire accident on 07.01.2015. But the Company is making serious efforts to strengthen its revenues against the expenditure but also to generate good profits in the near future.

Performance Review:

Discussion on Financial Performance with respect to Operational Performance:

1. Total Income:

During the year under review Oxygenta Pharmaceutical Limited (formerly known as S.S. Organics Limited) has achieved a gross total income of Rs.30,98,74,509/- for the Year 2022-23 against Rs.60,52,93,562/- for the year 2021-22.

2. Share Capital:

The paid up share capital as on 31st March, 2023 is 142013000/- divided into 14201300 fully paid-up equity shares of Rs.10/- each.

3. Net Profit / (Loss):

The Companys net loss is Rs. (11,57,09,800)/-

4. Earnings Per Share (EPS):

The Earning Per Share for the Financial Year 2022-23 is Rs. (8.15)/- per share (Face Value: Rs.10/- each).

Your directors are putting continuous efforts to increase the performance of Company and are hopeful that the performance in coming year will improve in faster way.

MATERIAL DEVELOPMENT IN HUMAN RESOURCE / INDUSTRIAL RELATIONS:

Your Company is constantly endeavoring to introduce Human Resource Development activities for overall improvement of its team and induction of professional manpower. Your Company has good industrial relations. Your Company has continued to maintain good relationship with all employees at all the levels which also resulted to in achieving higher production and sales Material Financial and Commercial Transaction.

DETAIL OF SIGNIFICANT CHANGES (i.e CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS)

Financial Ratios Formula For the Fin ncial year Deviation (%) Reason for Change
2022-23 2021-22
Debtors Turnover Ratio (times) [Revenue from operations/Average Trade receivables] 73.62 11.38 547% Due to decrease in Operational Revenue & Market conditions
Inventories Turnover Ratio (times) [COGS/Average

Inventories]

3.26 6.24 -48% Due to decrease in Operational Revenue
Interest Coverage Ratio (times) [EBIT/Finance Cost] 6.15 0.12 5025% Due to decrease in Operational Revenue
Current Ratio (times) [Current Asset/Current Liability] 0.84 1.19 -29% Decrease was due to increase in CL
Debt Equity Ratio (times) [Debt/Shareholders

Equity]

(1.47) (1.51) -2%
Operating Profit Margin Ratio (%) [EBIT/Revenue from Operations] -29.5% -0.18% -16288% Due to decrease in Operational Revenue
Net Profit Margin Ratio (%) [Profit After Tax#/ Revenue from Operations] -37.3% -1% -3630% Due to decrease in Operational Revenue
Return on Net Worth (%) [Profit for the year (beforeexceptional items and after tax)/ Net Worth] 23.46% 3.34% -602% The companys Networth is negative and has incurred losses during the current FY The decrease in ratio was due significant decrease in Operational Revenue

DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has prepared financial statements which comply with Ind-AS applicable for periods ending on March 31,2023, together with the comparative period data as at and for the year ended March 31, 2022, as described in the summary of significant accounting policies. Primarily, a treatment different from that prescribed in an Accounting Standard has not been followed in the preparation of financial statements. However, as regards amendments to certain accounting standards, the applicability / effect on the financial statement has been evaluated and been treated accordingly as explained in Notes to the standalone Financial Statements.

For and on behalf of the Board
Oxygenta Pharmaceutical Limited
(Formerly known as S.S. Organics Ltd.)
Sd/-
Dr. Sai Sudhakar Vankineni
Place: Hyderabad Chairman and Managing Director
Date: 04th September, 2023 (DIN: 00733001)

Practicing company secretaries certificate on corporate governance

To

The Members

Oxygenta Pharmaceutical Limited (Formerly known as S.S. ORGANICS LTD.)

Survey No.252/1, Aroor village, sadasivapet mandal,

Medak District, Medak Hyderabad.

Wte have examined the compliance of the conditions of Corporate Governance by Oxygenta Pharmaceutical Limited (hereinafter referred to as "the Company") for the year ended March 31,2023, as stipulated in Chapter IV of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 (Listing Regulations).

The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company

We conducted our examination of the Corporate Governance Report in accordance with the established systems and procedures selected by us depending on our judgement, including assessment of the risks associated in compliance of the Corporate Governance Report with the applicable criteria. The procedures include, but are not limited to, verification of secretarial records and other information of the Company, as we deem necessary to arrive at an opinion.

Based on the procedures performed by us as mentioned above and according to the information and explanations provided to us, we are of the opinion that the Company has complied with the conditions of Corporate Governance as stipulated in the Listing Regulations as applicable for the year ended March 31,2023.

We further state that such compliance is neither an assurance as to the financial viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company

Vanitha Nagulavari
Practicing Company Secretary
Sd/-
N Vanitha
Place: Hyderabad C.P. No.: 10573
Date: 04th September, 2023 UDIN:A026859E000925702