vaishali pharma ltd Management discussions

[Pursuant to Regulation 34 (2) (e) of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015]

1. INDUSTRY STRUCTURE & DEVELOPMENTS

Vaishali Pharma is a dynamic player in the pharmaceutical sector, specializing in Active Pharmaceutical Ingredients, pharmaceutical formulations, surgical products, Herbal & Nutraceutical Products, and veterinary supplements, catering to both domestic and international markets.

Our companys growth trajectory is intertwined with our ability to introduce cutting-edge pharmaceutical solutions not only in India but also across global markets.

2. EMERGING PROSPECTS AND CHALLENGES

The sophisticated technology underpinning our offerings acts as a formidable entry barrier, reducing the likelihood of intense rivalry. Nevertheless, the constraint of a relatively smaller market size warrants consideration.

Our distinct market advantage stems from our steadfast commitment to delivering products of superior quality within stipulated timelines. Over the years, we have fostered enduring partnerships with clients and suppliers, reinforcing our market standing. Our true strength lies in our dedicated workforce, a priceless asset that propels our success.

3. SEGMENT WISE OR PRODUCT-WISE PERFORMANCE

The business of the company is trading (including exports) of pharmaceuticals products. During the financial year 2022-23, revenue from operation is Rs. 6,966.28 Lakhs

4. OUTLOOK

Looking ahead, our focus is on building a sustainable future for our company, our stakeholders, and the planet. We believe that sustainability is the key to long-term success and we are committed to integrating it into every aspect of our operations.

We understand the importance of good governance and we will continue to uphold the highest standards of ethical conduct, transparency, and accountability in all our dealings.

We are confident that with strong focus on sustainability, innovation, and good governance, Vaishali Pharma Limited is well-positioned to achieve sustainable growth and create long-term value for all our stakeholders.

The Company is continuously working on strengthening the business. The Company has been successfully executing major orders from various customers and it has been enjoying the confidence of all customers with repeat orders. The Company has been making consistent efforts for improving margins in majority products by reducing the various costs. The results of these initiatives are expected to improve the overall profitability of the Company further during the coming years.

5. MITIGATING RISKS AND ADDRESSING CONCERNS

Risk, whether realized or potential, has the power to disrupt our strategic course or objectives. In the global pharmaceutical landscape, characterized by its inherent complexities, threats such as product integrity issues, intellectual property entanglements, regulatory non-compliance, exchange rate volatility, and unscrupulous marketing practices loom large. Such challenges can result in penalties, brand erosion, revenue setbacks, and product recalls.

While achieving complete risk elimination is an unrealistic aspiration, our unwavering commitment is to meticulously evaluate their possible impact, adapt to changing risk dynamics, and devise proactive measures to alleviate their adverse repercussions.

As we forge ahead, we remain steadfast in our mission to navigate the pharmaceutical landscape with resilience and innovation, while embracing the responsibilities of risk management and strategic adaptation.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has strong and adequate internal control system suitable to its size and nature of business. The internal audit is done by an independent firm of Chartered Accountants. Internal audits are regularly carried out to review the internal control systems. The systems ensure protection of assets and proper recording of transactions. The internal audit reports along with recommendations contained therein are reviewed by the Audit Committee of the Board. It is a regular practice to review the same by the Audit Committee.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, the operating revenue including other income of the Company is Rs. 7189.15 Lakhs for current year as compared to Rs. 7760.89 Lakhs in previous year. Your Directors are hopeful to improve the growth rate in turnover. The Company generated funds of Rs. 884.53 Lakhs as compared to Rs. 572.84 Lakhs in previous year.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONTS, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company had cordial relations with its employees and all problems were solved across the table in a very congenial atmosphere. Your Directors wish to place on record their appreciation to all its employees for their sustained efforts and valuable contribution.

9. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREOF (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR)

1. Debtors Turnover	: 1.24
2. Inventory Turnover	: 29.72
3. Interest Coverage Ratio	: 5.4
4. Current Ratio	: 2.27
5. Debt Equity Ratio	: 0.34
6. Operating Profit Margin	: 0.15
7. Net Profit Margin or sector-specific equivalent ratios, as applicable	: 0.092

Nil impact of Bad Debts written off

The following significant changes in key financial ratios was recorded:

The Debtors Turnover Ratio significantly increase to 1.24; The Inventory Turnover Ratio significantly decrease to 29.72; The Interest Coverage Ratio significantly increase to 5.40; The Current Ratio significantly decrease to 2.27; The Debt Equity Ratio significantly decrease to 0.34;

The Net Profit Margin or Sector Specific equivalent ratios increased to 0.092

Apart from above there is no changes in other Key Financial Ratios

10. VARIATION IN NET WORTH

The Return on Net Worth in current year is 0.63 and in the previous year was 0.38. During the period under review, the Return on Net Worth significantly increased to 0.63, Due to profit the Companies Net Worth has increased to 0.63.

11. CAUTIONARY STATEMENT

Statements in the management discussion analysis describing the Companys objectives, projections, estimates, expectations are forward looking within the meaning of applicable security-laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. Actual results may differ materially from these expressed in the statement. Important factors that could make difference to Companys operations include economic conditions, changes in the Government priorities/policies/ regulations, tax laws and other statutes and other incidental factors affecting the business environment. The Company assumes no responsibility to publicly amend, modify or revise forward-looking statements on the basis of any subsequent developments, information or events.

Date: September 05, 2023	For Vaishali Pharma Limited
Place: Mumbai
	Sd/-	Sd/-
	Atul Vasani	Jagruti Vasani
	Chairman &	Whole Time
	Managing Director	Director
	DIN:- 02107085	DIN:-02107094