INTRODUCTION
India is the largest provider of generic drugs globally. Indian pharmaceutical sector
supplies over 50% of global demand for various vaccines, 40% of generic demand in the US
and 25% of all medicine in the UK. Globally, India ranks 3rd in terms of pharmaceutical
production by volume a nd 1 4 th by value. The domestic pharmaceutical industry includes a
network of 3,000 drug companies and ~10,500 manufacturing units. India enjoys a n
important position in the global pharmaceuticals sector. The country also has a large pool
of scientists and engineers with a potential to steer the industry ahead to greater
heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS
(Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
COMPANY PERSPECTIVE
Phaarmasia is committed to creating a better tomorrow. Phaarmasia believes in
innovation. It provides state-of-the art prepositions to advance the companys relevance
and foster a spirit of experimentation. Phaarmasia takes measurable risks in exploring new
avenues of approach to business, applications and customer needs. During past a few
decades, Phaarmasia has mastered and manufactured wide range of Pharmaceutical
Formulations at a WHO-GMP certified and ISO 9001-certified manufacturing facility.
Pharmaceutical products of Phaarmasia are consistent in term of quality and reliability.
Phaarmasia is committed to creating a better tomorrow. Maintaining a core competency in
Hormonal and steroidal products, allows us to maintain the right quality. We strive to
manage this business in an ethical and transparent manner. In the never-ending quest for
quality and better healthcare, we dedicate ourselves to exceed expectations of our
customer and all our stakeholders as it provides us with the Competitive Edge. Our motto
is to deliver to Our Customers with best quality products. “QUALITY” is the
hallmark of Phaarmasia. We commit ourselves as a Company and as Individuals to ‘DO IT
RIGHT FIRST TIME, EVERY TIME and to achieve this we have an environment that encourages
our people, since ‘People makes the Difference. Maintaining a high level of respect
within the industry and amongst professionals is important to us as this helps us in
giving high quality products and services back to the society. The growth of Phaarmasia a
s a n organization is the cumulative product of individual growth of our employees. Its
the constant effort of all our employees working a s a wonderful team a s well a s
motivated individuals that drives Phaarmasia to achieve bigger & better goals. Our
intention is to aim at the development of innovative formulations and products. With the
help of our dedicated team of researchers, we have produced various new innovative
products with unmatched quality and are religious to continue our quest for the
development of innovative dosage formulation. M/s Phaarmasia Limited (unit-I) is the part
of the Maneesh Pharmaceutical limited, with its headquarters and marketing office in
Mumbai. M/s Phaarmasia Limited Unit-II was established in 1993-94. Phaarmasia Limited is
engaged in manufacturing and marketing of Oral contraceptive tablets" with various
therapeutic dosage combinations along with iron tablets for Ministry of Health &
Family Welfare and for Exports. The plant is situated in a hygienic environment; free from
dust, smoke, chemical & biological emission. Phaarmasia Ltd. Is a n independent
State-of-the-art-manufacturing unit having manufacturing facility of international
standards with manufacturing capacity of more than 30 million units per annum.
ROAD AHEAD
Medicine spending in India is projected to grow 9-12% over the next five years, leading
India to become one of the top 10 countries in terms of medicine spending. Going forward,
better growth in domestic sales would also depend on the ability of companies to align
their product portfolio towards chronic therapies for diseases such as such as
cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the rise.
The Indian Government has taken many steps to reduce costs and bring down healthcare
expenses. Speedy introduction of generic drugs into the market has remained in focus and
is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on
rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the
pharmaceutical companies. Phaarmasia is trying its best to move ahead in planned manner to
achieve the higher growth.
FINANCIAL PERFORMANCE: Revenues
Company has recorded the revenue of Rs. 2,748.95 Lakhs during 2022-23 as compared to
Rs. 1,721.58 Lakhs in 2021-22.
Other Incomes
The Other incomes for 2022-23 of Rs.51.61 Lakhs has decreased, compared to Rs. 46.97
Lakhs in 2021-22.
Expenditure
The expenses for 2022-23 of Rs. 2,943.77 Lakhs has reduced, compared to Rs. 1,924.76
Lakhs in 2021-22.
Profit before Tax
There is Loss before Tax for 2022-23 of Rs.143.20 Lakhs compared to Profit before Tax
of Rs. 156.22 Lakhs in 2021-22.
Profits after Tax
The Loss After Tax for 2022-23 of Rs. 125.92 Lakhs as against Profit After Tax of Rs.
154.72 Lakhs in the previous year 2021-22.
Earnings per Share
The EPS for 2022-23 decreased to Rs.(1.84) as compared to Rs. (2.27) in Previous Year.
RISK MANAGEMENT
Risks are inherent to our business as our operating environment is complex, highly
regulated, and dynamic. To attain our strategic growth objectives, protect the interests
of all our stakeholders and meeting legal requirements we have an established process of
identifying, analyzing, and responding appropriately to all business risks. We have a
well-embedded Risk Management Framework to ensure that we are well-placed to manage any
adverse effect posed by financial, operational, strategic or regulatory related risks. Our
framework adopts appropriate risk mitigation measures for identified risks across
functions. The process ensures that new risks, which might arise, or the impact of
existing risks which might have increased, are identified and a strategy is put in place
for mitigating such risks. The major risks identified by the management are regulatory,
competition, supply chain disruption, cyber and data security.
INTERNAL CONTROLS AND ADEQUACY
Your Company has a robust and reliable system of internal controls commensurate with
the nature of the business, and the scale and complexity of operations. The Company has
adopted policies and procedures covering all financial, operating and compliance
functions. These controls have been designed to provide a reasonable assurance over: 1.
Effectiveness and efficiency of operations 2. Safeguarding of assets from unauthorised use
or losses 3. Compliance with applicable laws and regulations 4. Prevention and detection
of frauds and errors
5. Accuracy and completeness of the accounting records 6. Timely preparation of
reliable financial information.
The current system of Internal Financial Controls (IFC) is aligned with the requirement
of the Companies Act 2013, The Internal Audit (IA) function of the Company functionally
reports to the Chairperson of the Audit Committee, thereby maintaining its objectivity.
FORWARD-LOOKING STATEMENTS
Your Directors is focusing to strengths its Domestic Market through expansion of its
activities and will make the necessary investment when attractive opportunities arise.
OPPORTUNITIES & 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.
OUTLOOK:
Your company has been following the philosophy of providing the highest quality
products and services at the lowest possible prices. Your Companys philosophy to provide
high class quality products i.e. full value for money, to consumers would greatly benefit
in the long run. Your company will continue to follow this philosophy in the new
operations that it is likely to undertake.
HUMAN RESOURCES:
Phaarmasia Limited believes in creating an environment, wherein human resources derive
a sense of purpose, passion and personal growth at work, leading to organizational
performance. Towards realizing this, the company relies on the four pillars, namely,
performance management, talent engagement, Capability development and maintaining cordial
industrial relations. It also believes in review of its HR processes and systems on an
ongoing basis to optimize costs, time and labour.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Companys
objective, projections, estimates, expectations may be forward-looking statements. Actual
results may differ materially from those expressed or implied due to various risks and
uncertainties. Important factors that could make a difference to the Companys operations
include global a nd Indian demand-supply conditions, finished goods prices, changes in
government regulations and policies, tax regimes, economic conditions within India and the
countries within which the Company conducts business and other such factors. The Company
does not undertake to update these statements.
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