Adeshwar Meditex Ltd Management Discussions

Indian Economy:

Description: Global growth is expected to moderate from 5.9 in 2021 to 4.4 per cent in 2022-half a percentage point lower for 2022 than in the October World Economic Outlook (WEO), largely reflecting forecast markdowns in the two largest economies. A revised assumption removing the Build Back Better fiscal policy package from the baseline, earlier withdrawal of monetary accommodation, and continued supply shortages produced a downward 1.2 percentage-points revision for the United States. In China, pandemic-induced disruptions related to the zero-tolerance COVID-19 policy and protracted financial stress among property developers have induced a 0.8 percentage- point downgrade. Global growth is expected to slow to 3.8 per cent in 2023.

The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation. Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest. Global growth is projected to slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January. Beyond 2023, global growth is forecast to decline to about 3.3 per cent over the medium term. War- induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 per cent in advanced economies and 8.7 per cent in emerging market and developing economies-1.8 and 2.8 percentage points higher than projected last January. Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential.

Wound Dressing Market:

The global wound dressing markets ize was valued at USD 13.66 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 4.14% from 2023 to 2030. Rising incidence rate of various wounds such as pressure ulcers, and surgical site wounds, along with rise in number of geriatric population, and increase in traumatic accidents worldwide is expected to impel the wound dressing market.

Furthermore, there has been increase in number of global traumatic accidents. For instance, according to statistics by WHO, every year around 1.2 million people die due to road crashes, whereas, 20 to 50 million people sustain non-fatal injuries. Similarly, as per Economic Times, India witnessed 5,54,796 road accident cases in the year 2020. Such accidents frequently result in significant blood loss and other injuries, necessitating prompt medical response, sometimes requiring surgical procedures to offer patient with instant relief. Thus, rising number of accidents is likely to boost the demand for wound dressing products which is anticipated to lead substantial growth of wound dressing market over forecast duration.

Introduction:

Our vision is to be global leaders in the field of sterile surgical wounddressings guided by an unwavering commitment to significantly improve ourproduct offerings through innovation. We will continuously strive to offerdifferentiated products of high-quality, focused on patient needs.Our vision to grow will be through our efforts to explore business developmentin the local and export markets diligently following our laid down principles ofmaintaining international standards of good manufacturing practices, quality, R & D, timelydelivery and competitive prices.

Opportunities:

The Medicare/ Pharma industry is in the growing stage and it can still go long way of development. These industries are usually favored by the governments and attract great support from various other institutes and industries.The pharmaceutical industry develops new and effective medication. If one company creates it, it can patent that product themselves and earn a handsome amount of profit. This gives the industry a chance to grow in the global market. These industries have promising future in the global market at least during this period of pandemic.

Threats:

There are various threats that are attracted by the pharma industries. Some of the major treats that are usually faced by these industries are with respect to competitive markets, manpower supply, power failures, quality checks etc.

CHANGES IN KEY FINANCIAL RATIOS:

Pursuant to provisions of Regulation34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:

S. NO.	Key Financial Ratio	FY 2022-23	FY 2021-22
1.	Debtors Turnover Ratio	2.72	2.14
2.	Inventory Turnover Ratio	2.67	1.94
3.	Interest Coverage Ratio	2.52	1.62
4.	Current Ratio	1.85	1.74
5.	Debt Equity Ratio	1.04	1.34
6.	Operation Profit Margin	0.059	0.048
7.	Net Profit Margin	0.025	0.012
8.	Change in Return on Net Worth	0.14	0.09

*Previous years Figures have been regrouped / rearranged wherever necessary

Risks and concerns:

The nature and the magnitude of the risks associated with the Company are reviewed and placed before the Board periodically. Various measures for modernization have been introduced to reduce the dependency of labour, which also ensures optimum capacity utilization & quality outputs.

Health, safety and Security Environment:

Our Company has always been adopting all possible safety measures concerning the health and safety of the Workers and staffs at all levels. This has improved the morale among the workers and staffs and also the working environment at large.We believe in maintaining the highest ethical standards to strive towards better health forpatients worldwide through leading innovation in sterile surgical wound dressings andmedical disposables.

Human Resources/Industrial Relations:

Employer-Employee relations continued to remain cordial during the year at all the units of the Company. Necessary measures are being adopted to improve the life, work culture, productivity, efficiency and effectiveness of the workers and staff at all levels. Even under the situation of Non availability of skilled manpower, the costs of recruiting, training and deploying trained labour still remains a major constraint to the Company.

Financial Performance with respect to operational performance:

The Financial performance of the Company for the year 2020-21 is described in the Directors Report under the head operations.

Cautionary Statement:

Statement in this Management Discussion and Analysis Report, Describing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.