Industry Structure and Development-Indian Economy
ANNEXURE-3
Healthcare is one of Indias largest and significant sectors, both in terms of Revenue
and Employment. The Indian healthcare sector is growing at an agile pace due to its
strengthening coverage, services and increasing expenditure by public as well private
players. Ayurveda is witnessing a resurgence in India because people have accepted this as
a way of life as opposed to the earlier notion of Ayurveda as an alternative area of
medicine.
COVID-19 has created the biggest seismic shift taking health and immunity to the centre
stage. Indian consumers have opened their wallets to fitness classes and activities,
consuming natural foods, health supplements, and following specialized diets.
Customers embracing digital platforms on health subjects is a new reality, opening a
range of opportunities for companies in the sector. As growth begins to stabilize in more
developed countries such as the US, attention is turning to emerging markets with a
fast-expanding middle class. Consumers have started to realize the benefits of spending
today for a healthiertomorrow. In India, with relatively suboptimal access to health
infrastructure, this could pave the way for a new balanced model of managing health.
OUTLOOK
COVID-19 has dramatically transformed the purchasing behaviour of consumers also. Some
of the many latent benefits that came in conjunction with the challenges of the pandemic
include a better and faster decision-making approach, increased focus on upskilling, and
individual and team productivity. With these learnings we have developed a more optimistic
future outlook, we believe that we are well-positioned to meet the challenges and generate
sustainable long term growth.
The Company is planning to invest more in R& Din order to improve the quality and
standards of services and existing products.
E-commerce has emerged as strong growth drivers and as the most preferred method of
purchase. This trend is only set to growing the coming years. Use of Digital
transformation to flare growth and innovation is not a new imperative for Source. But the
pandemic has made it urgent for us to enhance our agility, reach, and data-driven
decisions. Your company is riding high on the digital revolution by pursuing
aggressive-commerce and digital marketing strategy to tap the growing segment and market
size.
RISKSAND OPPORTUNITIES
Regulatory concerns, consumer perceptions, Competition, Environment & Climate
Change, Counterfeit Products are the main concerns for the Ayurveda Industry. Regulatory
Agencies all over the world are focussing on quality, efficiency, safety and
standardization of herbal medicines.
Business is subject to risks and uncertainties that could have both short-term and
long-term implications for the Company. The COVID-19 outbreak in 2020 and consequent
measures undertaken by various governments across the world to contain its spread
negatively impacted our business in the initial part of the 2020-21 financial year. Your
Company not only managed these risks successfully but also converted them into
opportunities.
Since the onset of Covid-19 pandemic, people are focusing on their diet, nutrition
intake, and how they can possibly boost their immunity and overall health. Your company
offer products to strengthen immunity for both adults and kids. From Ayurvedas
standpoint, commonly available natural herbs that are found in the kitchen can do wonders
for our immunity. We focus on the products based on that natural herb and they are doing
extremely well with the consumers.
These risks and concerns are mitigated through appropriate risk management systems
which have been an integral part of the business of the Company. The risk management
system of the Company enables to reassess critical risks in changing business environment
that need to be focussed on.
INTERNAL CONTROL SYSTEM AND ITS ADEQUACY
The Company has a well-established and comprehensive internal control system and
structure across the value chain to ensure that its assets are safeguarded, transactions
are authorized, recorded and reported correctly and operations are conducted in an
efficient and cost-effective manner. In order to ensure orderly and efficient conduct of
business the company has put in place systems which include policies and procedures, IT
systems, delegation of authority, segregation of duties, internal auditbyThird party and
review framework etc.
Further the Audit Committee comprises of the members from the Board so as to ensure
total transparency and consists of three Independent non-executive Directors. The
Committee performs the task of review of internal audit reports, internal control systems
from time to time and reviews the financial Statements every quarter before recommending
the same to the Board of Directors.
SHARE CAPITAL
During the year under review, there was no further issue of shares. The paid-up capital
of the Company is Rs.6, 43,69,310/-as on 31.03.2023.
SECURED LOANS
Secured loans of the Company as on 31.03.2022 were Rs. 4,15,716/-and as on 31.03.2023,
they are Rs.2,35,117/-.
FIXED ASSETS
New assets worth Rs. 1,65,000/- have been acquired during the Year and added to the
block of assets. Asa result, the net block of fixed assets stands at Rs. 4,58,25,054 for
the year ended 31.03.2023, after providing an accumulated depreciation ofRs.5,24,74,326/-.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
Source Natural has prioritised human capital development and reinforcement of expertise
across critical functions. The Company believes that a competent, motivated team and a
nurturing work culture are critical for achieving longterm success. In FY 2022-23,
notwithstanding the pandemic-led interruptions, the Company continued to have an employee
first strategy while synchronising HR processes to support the business. As a part of its
strategy to build a contemporary organisation, the Company undertook organisational
restructuring and delayering to create a flatter organisation.
The Company strives to ensure the health and well-being of its employees through an
array of initiatives. It took care of not only the physical well-being of the employees
but also their mental well-being.
The Company has been continuously working on retainingthe best talent in the industry,
but it is a constant challenge to retain the good talent. The Companys human resource
agenda focuses mainly on building a robust and diverse talent pipeline by hiring fresh
management graduates to cater to various businesses and functions, enhancing individual
and organisational capabilities for future readiness, driving greater employee engagement
and strengthening employee relations.
The number of permanent employees of the Company as on 3151 March, 2023 were
40 Nos
CAUTIONARY STATEMENT
Statements in this Integrated Annual Report, particularly those that relate to the
Management Discussion and Analysis, describing the Companys objectives, projections,
estimates and expectations, may constitute forward looking statements within the meaning
of applicable laws and regulations. Although the expectations are based on reasonable
assumptions, the actual results mightdiffer.
Place: Bangalore |
For and On Behalf of the Board |
Date: 11-08-2023 |
SD/- |
SD/- |
|
(Arvind Varchaswi N.) |
(Tejagna K Katpitia) |
|
Managing Director |
Whole-time Director |
|
DIN:00143713 |
DIN:00445283 |
+91-9892691696
