A. Industry overview and Developments
After responding to the Covid 19 pandemic for the past two years, the global
pharmaceuticals industry is now facing a “new normal” in 2023 that will require
changes in commercial strategy and execution. Growth prospects are being impacted by
several key issues.
The Pharmaceuticals industry is a vital component of the healthcare sector, dedicated
to developing, producing, and marketing drugs for the prevention, treatment, and cure of
diseases. The industry has experienced significant growth and development over the past
few decades, due to several factors including advancements in technology, increased demand
for healthcare services, and growing awareness and diagnosis of diseases.
The prominent pharma industry trends include Increasing focus on research and
development (R&D) to create new and innovative drugs, Amalgamation of Artificial
Intelligence in developing automated algorithms which will help in producing seedier, more
precise, and reproducible results.
The industry is also facing challenges from emerging competitors, particularly in the
form of generic drug manufacturers. Despite these challenges, the pharmaceuticals industry
is projected to continue growing in the coming years, driven by increasing demand for
healthcare services, the emergence of new markets in developing countries, and ongoing
R&D efforts to develop new and more effective drugs.
B. Opportunities and Challenges
Growing demand for health care services has transformed the industry with increasing
digitization, and traction of e-pharmacy and pharmacy chains. Increased healthcare
coverage and better policy support are likely to boost growth whereas adverse regulation
could impact in a negative way. With aging populations and increasing in the disease, the
demand for health care services, including pharmaceuticals is expected to grow. As the
pharmaceuticals industry is heavily reliant on the R&D to create new and innovative
drugs, by investing in R&D, our company can create a pipeline of new products that can
meet the evolving needs of the patients and health care providers.
Over the past couple of years, there have been many challenges faces by the
pharmaceutical industry. The pharmaceutical industry has emerged from the pandemic
stronger in large due part to its role in researching, producing, and distributing
Covid-related therapies and vaccines but also due to the nature of the industry. However,
the industry is now facing a crossroads of upcoming challenges, including financial
pressure from the impending patent cliff.
C. Global Pharma Market Performance
The global pharmaceuticals market has been performing well in recent years, with steady
growth and increasing demand for healthcare products.
The market is driven by several factors, including the increasing prevalence of chronic
diseases such as cancer, diabetes, and cardiovascular diseases, as well as the growing
aging population. Advances in technology and innovation are also contributing to the
growth of the market, with new drugs and therapies being developed to treat previously
untreatable conditions.
Despite the positive outlook for the pharmaceuticals market, the industry also faces
challenges such as increasing regulatory scrutiny and pricing pressures, as well as the
need to demonstrate the value and cost- effectiveness of their products. Nevertheless,
pharmaceuticals companies continue to invest in research and development to drive
innovation and develop new products to meet the evolving needs of their customers.
D. Pharma Outlook: Positive Factors
The New Financial Year comes with a new set of challenges. As a pharmaceuticals
company, we are optimistic about the industry outlook in the coming years. The global
pharmaceuticals market is expected to continue to grow, driven by an aging population,
rising chronic diseases, and increased healthcare spending. We are committed to investing
in innovation and R&D to develop new products and maintain our competitive edge in the
industry. We see significant growth opportunities in emerging markets, where there is a
large and growing population, rising incomes, and increasing healthcare spending.
In addition, we recognize the increasing importance of digital health technologies in
the industry. We are actively exploring ways to incorporate these technologies into our
business to improve our strategic goal to achieve our desired results.
E. Policy Support
Governments recognize the critical role that the pharmaceuticals industry plays in
providing essential healthcare products and in driving economic growth, and as such, are
implementing policies and initiatives to support its development.
At the national level, governments are streamlining regulatory processes and creating a
favourable business environment for pharmaceutical companies through measures such as tax
incentives, funding for research and development, and investments in healthcare
infrastructure. These initiatives are creating opportunities for us to invest in
innovation and expand our operations.
F. Review of Operations
The company has consistently grown above market in the last several years by keeping a
clear focus on providing scientific, trusted products, backed by expert clinical support.
The companys position has been enhanced through consistent scientific engagement with
doctors, increasing geographic penetration.
G. Increasing Investment
Increasing Investments in R&D and Acquisitions are driving the Sectors growth.
H. Risks and Concerns
As a pharmaceuticals company, it is important to acknowledge the risks and concerns
facing in our industry. These include regulatory changes, patent expirations, pricing
pressures, competition from generics, and increased scrutiny on drug pricing and marketing
practices. Additionally, the ongoing COVID-19 pandemic has disrupted global supply chains
and created uncertainty in the market. It is essential that we continue to monitor these
risks and adapt our strategies to address them, while maintaining our commitment to
providing
innovative and effective healthcare solutions. Our goal is to mitigate these risks and
navigate the challenges facing our industry with transparency and resilience.
Another concern is the potential for legal and regulatory challenges. The
pharmaceuticals industry is heavily regulated, and companies must adhere to strict
guidelines and regulations related to drug development, manufacturing, and marketing.
Non-compliance with these regulations can result in significant fines and penalties, as
well as damage to the companys reputation. Furthermore, lawsuits related to drug
efficacy, safety, and potential side effects can result in significant legal costs and
settlements.
We also closely monitor policy changes and developments in the industry to stay ahead
of potential challenges. Overall, we remain committed to navigating the risks and
challenges of the pharmaceuticals industry while maintaining a strong focus on innovation
and quality outcomes.
I. Company Overview
As a pharmaceuticals company, we understand the importance of conducting regular and
thorough reviews of our operations to ensure we are meeting our commitments to our
stakeholders, including customers, employees, and investors. Our overviews include
evaluating our performance against industry benchmarks, identifying areas for improvement,
and implementing measures to enhance our business practices and maintain our position in
the healthcare industry. We are committed to ongoing improvement and remain vigilant in
our efforts to ensure the safety, efficacy, and quality of our products and services.
J. Performance and Operations Review
Operating Results
The Companys Revenues stood at Nil during the year under review, PAT at Rs. -755.56
Lakhs as against the corresponding Previous Year, there was revenue of Rs.393.93 Lakhs and
the PAT was Rs.14.52 Lakhs. Your directors are giving their best efforts for exploring
more business opportunities so as to increase the growth and profitability of the Company,
in the years to come.
K. Internal Control Systems and Adequacy
The Company has established comprehensive Internal Control Systems with well-defined
compliance guidelines, enabling smooth operations with a reasonable level of assurance.
These internal controls serve to protect the Companys assets, monitor cost structures,
ensure sound financial and accounting controls, and adhere to accounting standards.
The system incorporates continuous monitoring, routine reporting, checks and balances,
purchase policies, authorization and delegation procedures, and regular audits. To support
these internal controls, the Company maintains an Internal Audit Team and conducts
periodic reviews under the managements supervision. The Audit Committee convenes
regularly to assess the adequacy and scope of the internal audit function, discuss
significant findings, and address any abnormal occurrences. The system undergoes
continuous improvement and modification to align with changes in business conditions,
statutory requirements, and accounting standards.
L. Material Development in Human Resources / Industrial Relations Front
The Number of Employees as on 31st March 2023 was 9 (Nine).
The Companys growth is predominantly attributed to the competence and quality of its
human resources. Our work environment fosters a challenging and performance-oriented
atmosphere, acknowledging employees potential by offering ample opportunities. We have
diligently refined our hiring process to ensure discipline and effectiveness. Prioritizing
the acquisition and retention of talent aligned with the Companys goals remains a key
focus area.
M. Details of Significant change in the Key Financial Ratios:
Ratios |
Current Period
2022-23 |
Previous Period
2021-22 |
% Variance |
Reason for Variance |
Debtors Turnover Ratio (in times) |
0.00 |
2.08 |
(100.00) |
The Debtors Turnover ratio has been reduced from 2.08 to 0.00 as no
sales were made during FY 2022-23 |
Return on Equity Ratio (In %) |
- 0.34 |
0.02 |
(100.00) |
Return on Equity is -0.34 because the company has incurred losses in FY
2022-23 |
Inventory Turnover (in times) |
0.00 |
5.10 |
(100.00) |
The Inventory Turnover ratio has been reduced from 5.10 to 0 as no sales
were made during FY 2022-23 |
Current Ratio (in times) |
8.22 |
1.09 |
651.72 |
The Significant Change in Current ratio is due to excess increase in
Current Assets of the Company, whereas the Current Liabilities have been reduced when
compared to Previous Year |
Debit Equity Ratio (in times) |
0.00 |
0.00 |
- |
The Debt equity ratio in both Financial Years remains Nil as there are
no Long Term Debts of the company |
Net profit Ratio |
0.00 |
0.04 |
(100.00) |
The Net Profit ratio is 0 as the company has incurred Losses in the
Current year and also no sales were made during FY 2022-23 |
Operating Ratio |
0.00 |
1.04 |
(100.00) |
The Operating ratio has been reduced from 1.04 to 0 as no sales and
Purchases were made during FY 2022-23 |
Return on Net worth Ratio (In Times) |
-0.31 |
0.38 |
(100.00) |
Return on Net worth Ratio is -0.31 because the company has incurred
losses in FY 2022-23 |
|
By order of the Board of Directors |
| Sd/- |
Sd/- |
| Venu Madhava Kaparthy |
Sadhanala Venkata Rao |
| Whole Time Director |
Director |
| (DIN: 00021699) |
(DIN: 02906370) |
| Date: 29.08.2023 |
|
| Place: Bangalore |
|
+91-9892691696
