Phaarmasia Ltd Management Discussions.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS.

The Government of India has announced measures to create a progressive environment for the Indian pharmaceutical industry. The Government of India is committed to setting up robust healthcare and delivery mechanisms. The management is confident of improving the operations by focusing on manufacturing of Cosmetics and Oral Contraceptive Pills.

2 RISKS AND CONCERNS:

The Company ensures compliance of all applicable laws globally, including those relating to employment, taxation, trades, health, safety & environment company laws, establishment, SEBI Regulations and others applicable Laws and Rules. The Company undertakes risk management programmes to tackle strategic, regulatory, operational and financial as well as compliance-related risks across the organization. It includes risk assessment and mitigation at the company level, business / functional unit level, relationship level and project level.The agility of the risk management process is monitored and reviewed for appropriateness with the changing risk factors. The process of continuous evaluation of risks includes taking stock of the risk factors on an event driven as well as quarterly basis. The risk management process is continuously improved and adapted to the changing global risk scenario.

3. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate Internal Financial Controls consistent with the nature of business and size of the operations, to effectively provide for safety of its assets, reliability of financial transactions with adequate checks and balances, adherence to applicable statues, accounting policies, approval procedures and to ensure optimum use of available resources. It has a comprehensive budgetary control system to monitor revenue and expenditure against approved budget on an ongoing basis.These systems are reviewed and improved on a regular basis.

4. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

Rs. in Lakhs

S.No: Particulars 2019-20 2018-19
1 Revenues: 2503.13 2625.90
2 Expenditure: 2245.19 2365.63
3 Finance Costs: 3.68 3.68
4 Personnel Costs: 158.18 173.48
5 Profit Before Tax 96.06 83.11
6 Fixed Assets 1339.83 1405.80

5. OUTLOOK:

The Company will be focusing its strengths its Domestic Marketthrough expansion of its activities and will make the necessary investment when attractive opportunities arise.

6. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The Company believes that the Human Resources are vital resource in giving the Company a competitive edge in the current business. The Companys innovative human resources management strategies supported its business growth in a challenging environment. The Companys HRD policy focuses on creating an environment where performance is rewarded, individuals are respected and associates get opportunities to realize their potential. As in the past, the Company enjoyed cordial relations with the employees at all levels.

7. DISCLOSURE OF ACCOUNTING TREATMENT.

The Company in the preparation of the financial statements has followed the Accounting Standards notified pursuant the relevant provision of the Companies Act, 2013 read with applicable Accounting Standards, issued by the Ministry of Corporate Affairs. Indian Accounting Standards shall get applicable to the Company from FY 2017-18. The significant accounting policies which are consistently applied have been set out in the Notes to the Financial Statements.

8. OPPORTUNITIES AND THREATS

The pace at which the pharmaceutical sector in India is growing has increased the Opportunities for the company which can lead to healthy growth of the Company. The pharmaceutical sector is also exposed to various kinds of risks related to change in government policies, pricing of products, intense competition due to growth etc. The Company is well equipped to tackle the risks related to the business of the Company.

9.CAUTIONARY STATEMENT

Certain statements made in the management discussion and analysis report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors could make significant difference to the Companys operations. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control.