This Management Discussion and Analysis Report addresses the
expectations and Projections of the company for its future, about its Product Development,
Market Position, Market Development and Penetration, Expenditure, Financial Results, Risks
and Concerns etc. However, the expectations shared herein are not limited to the
Companys Growth. The Companys actual results, performance or achievements
could differ from those shared herein.
As India continues to look towards a more advanced and globally
renowned pharmaceutical industry, there is no doubt that government policies and actions
will play a crucial role in the growth agenda of the sector. As a major global player and
exporter of generic drugs and vaccines to the US, Europe, and the rest of the world,
Indias pharma industry is a big revenue earner and a major source of needed foreign
exchange. Hence, a policy to do even much more is a welcome development. Only with such
sustained actions can the Make In India programme and the dream to make the nation the
Atma Nirbhar of the world become a reality.
On the other hand, our Management declares that, the financial
statements have been prepared incompliance with the requirements of the Companies Act,
2013 guidelines issued by the Securities Exchange Board of India (SEBI) and the Generally
Accepted Accounting Principles (GAAP) in India.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
The Fast-moving Consumer Goods (FMCG) sector is the 4th largest sector
of the Indian economy. During FY 2019-20, the sector witnessed growth of 7.2%, which is
almost half of the 14% growth reported in FY 2018-19.
The FMCG sector saw a sharp slowdown during the year on account of
moderation in economic activity, low farm incomes and weak rural wage growth, liquidity
crunch in the system, high unemployment levels and downtrading across categories. By March
2020, the sectoral growth also dropped. The Corona virus pandemic has further impacted the
sector since March 2020 due to restrictions on movement of goods, supply side bottlenecks
and impact on consumption. Consumers have been stocking up essential products such as
packaged foods, staples, tea, coffee, milk, detergents, and other products of daily usage.
During this phase, demand has also surged for health and hygiene products as these aspects
came into sharp focus. There was a surge in demand for hygiene products like sanitizers
and disinfectants in addition to immunity building OTC and healthcare products. However,
discretionary and nonessential items have seen weak demand as the focus during the
lockdown has been on food and hygiene.
OUTLOOK:
The COVID-19 pandemic is likely to have a major negative impact across
the world. It has led to quarantines, regional lockdowns and social distancing—which
are essential to contain the virus —with particularly acute effects on sectors that
rely on social interactions such as travel, hospitality, entertainment, and tourism.
Workplace closures are disrupting supply chains and reducing productivity. Layoffs, lower
incomes, fear of contagion, and heightened uncertainty make people spend less, leading to
consumption squeeze and triggering further business closures and job losses. Health care
expenditure, support to vulnerable sections of society and reduced tax revenue is likely
to put severe pressure on fiscal balances of the government.
The FMCG landscape is undergoing a sea change with the emergence of
COVID-19, which is also impacting consumer behavior across markets and geographies. The
Food sector, which contributes to 57% of the overall FMCG market, comprises broad
categories like packaged Atta, rice, edible oil, dairy products, beverages, baby food etc.
During the year, this category witnessed growth of 8-9%. While the Food sector, riding on
demand for consumer staples, has been growing at a good pace.
The Union Cabinet has given its approval to amend the existing FDI
policy in the pharmaceutical sector in order to cover medical devices. The Cabinet has
allowed FDI up to 100 per cent under the automatic route for manufacturing of medical
devices subject to specified conditions. The Indian pharma market size is expected to grow
to US$ 85 billion by 2020. The growth in Indian domestic market will be on back of
increasing consumer spending, rapid urbanization, and raising healthcare insurance and so
on.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT,
INCLUDING NUMBER OF PEOPLE EMPLOYED:
The Company recognizes that its people have played a big role in making
what the Company is today and therefore it accords top priority to attract and retain
talent. The Company puts great emphasis on training and development of its employees to
enhance efficiency. The Company believes in providing a fair compensation in line with
industry norms and rewards them for good performance. The Company has 7 permanent
employees as on 31.03.2023.
RISK AND CONCERNS:
An effective risk management framework enhances the organizations
ability to proactively address its risks and opportunities by determining a risk
mitigation strategy and monitoring its progress on continuous basis.
Our risk management framework is intended to ensure that risks are
identified in a timely manner. We have implemented an integrated risk management framework
to identify, assess, prioritize, manage/mitigate, monitor and communicate the risk across
the county.
Senior management personnel meet at regular intervals to identify
various risks, assess, and prioritize the risks. After due deliberations, appropriate
strategies are made for managing/mitigating the risks. The company takes the help of
independent professional firms to review the risk management structure and implementation
of risk management policies. Audit Committee on a quarterly basis, review the adequacy and
effectiveness of the risk management strategies, implementation of risk
management/mitigation policies, It advises the board on matters of significant concerns
for redressal.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The system of internal control has been established to provide
reasonable assurance of safeguarding assets and maintenance of proper Accounting Records
and its accuracy. The business risks and its control procedures are reviewed frequently.
Systems audit is also conducted regularly to review the systems with respect to Security
and its Adequacy. Reports are prepared and circulated to Senior Management and action
taken to strengthen controls where necessary.
OPPORTUNITIES AND THREATS:
Continued changes in the federal tax structure influence the
fundamentals of the business. The Regulatory environment in the Consumer Goods industry
continues to evolve with newer Health & Safety norms in the works. While some
regulatory changes create new business opportunities, others come with significant costs
and business restrictions.
SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE:
Segment wise reporting is explained under note 2.24 & 2.28 of the
standalone and consolidated financial statements of the Company respectively.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
PERFORMANCE:
The macro-economic environment for the year under review was
particularly challenging, marked by deceleration in economic activity accentuated by a
sharp decline in consumption. Operations of all businesses were impacted towards the close
of the year as the pandemic gained momentum.
During fiscal 2022-23, the company recorded Revenue from Operations of
Rs. 140.46 Lakhs compared to Rs. 84.32 in fiscal 2021-22
DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED
TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS ALONG WITH DETAILED
EXPLANATIONS THEREOF:
Debtors Turnover: 6.14% Inventory Turnover: 3.70% Interest Coverage
Ratio: N.A. Current Ratio: 87.88% Debt Equity Ratio: NA
Operating Profit Margin (%):39%
Net Profit Margin (%): 97.83%
Sector-specific equivalent ratios, as applicable: N.A.
Details of any change in return on net worth as compared to the
immediately previous financial year along with a detailed explanation there of : 96.82%
Disclosure of Accounting Treatment:
The Company has not carried out any treatment different from that
prescribed in Accounting Standards.
Note: Turnover was reduced because the food business was shifted to
Subsidiary Company.
CAUTIONARY STATEMENT:
Statements in this Management Discussion and Analysis Report may be
"forward looking statements: within the meaning of applicable securities laws and
regulations. These statements are based on certain assumption and expectations of future
events. Actual results could differ materially from those expressed or implied. Important
facts that could make a difference at the Companys operations include economic conditions
affecting domestic demand and supply conditions, finished goods prices, changes in
government regulations and tax regime etc. The Company assumes no responsibility to
publicly amend, modify or revise any forward looking statements on the basis of subsequent
developments, information or events.
STATEMENT SHOWING THE NAMES OF TOP TEN EMPLOYEES PURSUANT TO SEC. 197
READ WITH RULE 5 (1) (2) and (3) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF
MANAGERIAL PERSONNEL) RULES, 2014
1. The ratio of remuneration to each director to the remuneration of
the employees of the company for the financial year.
Director |
Total Remuneration |
Ratio to median remuneration |
| Arun kumar Bhangadia |
15,00,000.00 |
1.63 |
2. The percentage increase in remuneration of each director,
Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in
the financial year
Name |
Designation |
Remuneration |
Increase/ (Decrease) |
|
|
FY 2022-23 |
FY 2021-22 |
% |
| Vani Manda |
CFO |
5,20,167.00 |
4,55,000.00 |
14.32% |
| Nishita Kalantri |
Company Secretary |
1,80,000.00 |
4,80,000.00 |
(62.5) % |
3. The percentage increase in the remuneration of employees in
the financial year
Particulars |
Remuneration |
Increase/ (Decrease) |
|
FY 2022-23 |
FY 2021-22 |
% |
| Remuneration of all the employees per annum* |
9,17,750.00 |
4,75,470.00 |
93.020% |
*Employees who have served for whole of the respective financial years
have been considered.
4.
Particulars |
Number |
| The number of employees on the rolls of the
company as |
10 |
| on March 31, 2023 |
|
5. Average percentile increase already made in the salaries of
employees other than the managerial personnel in the last financial year and its
comparison with the percentile increase in the managerial remuneration and justification
thereof and details if there are any exceptional circumstances for increase in the
managerial remuneration
Particulars |
Increase/ (Decrease) |
|
% |
Average percentage increase in the
remuneration of all Employees* |
NIL |
(Other than Key Managerial Personnel) |
|
Average Percentage increase in the
Remuneration of Key Managerial Personnel |
NIL |
* Employees who have served for whole of the respective financial years
have been considered.
6. Affirmation that the remuneration is as per the remuneration
policy of the company.
The Company is in compliance with its remuneration policy.
List of Top 10 Employees:
In terms of Remuneration drawn as per Rule 5(3) of the Companies
(Appointment and Remuneration of Management personnel) Rules 2014:
S.no Name of the Employee |
Remuneration received |
Designation of the employee |
Nature of employment whether
contractual or otherwise |
Qualification and experience
of the employee |
Date of the commencement of
employment |
The age of Employee |
The last employment held by
such employee before joining the Company |
The percentage of equity
shares held by the employee in the Company within the meaning of clause (iii) of sub rule
(2) of Rule 5of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 |
Whether any such employee is
a relative of any director or manager of the Company and if so name of such director or
manager |
1 Sanskriti |
1,44,000 |
Marketing Head |
Contractual |
M.Com |
01-05-2021 |
36 |
- |
- |
- |
2 Pramod Sing |
62,000 |
Sales Executive |
Contractual |
M.Com |
01-09-2021 |
46 |
- |
- |
- |
3 Latha. P |
15,000 |
Helper |
Contractual |
- |
01-09-2021 |
41 |
- |
- |
- |
4 Srikanth |
1,98,000 |
Computer operator |
Contractual |
B.Com |
01-08-2019 |
39 |
- |
- |
- |
| 5 Ram Mohan Rao |
2,40,000 |
|
|
|
|
|
|
|
|
| 6 Mohan Rao |
1,80,000 |
|
|
|
|
|
|
|
|
| 7 Mani Kumar |
78,750 |
|
|
|
|
|
|
|
|
8 Arun Kumar Bhangadia |
15,00,00 0 |
Managing Director |
Contractual |
B.Com |
01-10-2015 |
43 |
- |
15,42,200 Equity shares |
- |
9 Nishita Kalantri |
1,80,000 |
Company Secretary |
Contractual |
CS |
01-04-2019 |
31 |
Shalimar agency limited |
- |
- |
10 Vani Manda |
5,20,167 |
CFO |
Contractual |
M.Com |
01-02-2014 |
38 |
Agarwal distributors |
- |
- |
DECLARATION ON CODE OF CONDUCT AS REQUIRED BY SCHEDULE V OF SECURITIES
AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS,
2015
I, Ravi Bhangadia, Chairman and Whole time Director of Trimurthi
Limited ("the Company") hereby state and affirm Schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulation 2015 the members of board of directors
and senior management personnel have affirmed compliance with the code of conduct of board
of directors and senior management of the company during Financial Year 2022-2023.
For and on behalf of the Board Trimurthi Limited
Sd/-Ravi Bhangadia
Place: Hyderabad Chairman and Whole time Director Date: 09.08.2023
(DIN: 03434400)
+91-9892691696
