INDUSTRY STRUCTURE AND DEVELOPMENT:
The pharmaceutical industry in India was valued at an estimated US$42 billion in 2021. India is the worlds largest provider of generic medicines by volume, with a 20% share of total global pharmaceutical exports. It is also the largest vaccine supplier in the world by volume, accounting for more than 50% of all vaccines manufactured in the world. Indian pharmaceutical products are exported to various regulated markets including the US, UK, European Union and Canada.
According to Economic Survey 2023, the turnover in the domestic pharmaceutical market was estimated to be $41 billion. Indias pharmaceutical exports revenue was $25.3 billion in fiscal year 2022 23, according to the data released by Pharmexcil. India ranked third globally in terms of dollar value of drugs and medicines exports. Major pharmaceutical hubs in India are: Vadodara, Ahmedabad, Ankleshwar, Vapi, Baddi, Sikkim, Kolkata, Visakhapatnam, Hyderabad, Bangalore, Chennai, Margao, Navi Mumbai, Mumbai, Pune, Aurangabad and Pithampur.
The Company is well focused to Iodine chemistry & this is the only core area of ours. Companys domain is very restricted to Iodine chemistry & it revolves around Iodine derivatives or Iodination. Company manufacture & supply wide range of superior quality Iodine Derivatives & API Since 2003. Active Pharmaceutical Ingredient (API) is the biologically active component of a drug product (tablet, capsule, cream, injectable) that produces the intended effects. APIs find application in high quality drugs that treat diseases pertaining to oncology, cardiology, CNS and neurology, orthopaedic, pulmonology, gastroenterology, nephrology, ophthalmology, and endocrinology. APIs can potentially create a more sustainable healthcare system by introducing more innovative products.
FINANCIAL PERFORMANCE:
The companys overall operational performance during the financial year 2022-23; Total turnover for the financial year ended has Rs.10,13,062.15 Thousand. The Company has incurred the Profit before Tax of Rs.1,22,648.53 Thousand. On the other hand, the companys overall operational performance during the financial year 2021-22; Total turnover for the financial year ended has Rs.740377.23 Thousand. The Company has incurred the Profit before Tax of Rs.74,054.10 Thousand.
OPPORTUNITIES, THREATS, RISKS AND CONCERNS:
As is normal and prevalent for any business, the Company is likely to face competition from large scale imports. There can be risks inherent in meeting unforeseen situation, not uncommon in the industry. Changes in technology may render our current technologies obsolete or require us to make substantial capital investments. Company is fully aware of these challenges and is geared to meet them. Company also recognizes the risks associated with business and would take adequate measures to address the associated risks and concerns. Some of these factors include competition from multinational Companies, duty free imports by customers against export obligations.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
Management has put in place effective Internal Control Systems to provide reasonable assurance for: Safeguarding Assets and their usage. Maintenance of Proper Accounting Records and
Adequacy and Reliability of the information used for carrying on Business Operations. Key elements of the Internal Control Systems are as follows: I. Existence of Authority Manuals and periodical updating of the same for all Functions. II. Existence of clearly defined organizational structure and authority.
III. Existence of corporate policies for Financial Reporting and Accounting.
IV. Existence of Management information system updated from time to time as may be required. V. Existence of Annual Budgets and Long Term Business Plans.
VI. Existence of Internal Audit System.
VII. Periodical review of opportunities and risk factors depending on the Global / Domestic Scenario and to undertake measures as may be necessary.
Internal Audit Reports are regularly circulated for perusal of Senior Management for appropriate action as required.
HUMAN RESOURCE/INDUSTRIAL RELATIONS:
Human Resources Development, in all its aspects like training in safety and social values is under constant focus of the management. Relations between the management & the employees at all levels remained healthy & cordial throughout the year. The Management and the employees are dedicated to achieve the corporate objectives and the targets set before the company.
BUSINESS OUTLOOK:
Over the past year, the pharma industry has witnessed greater collaboration, adapted quickly, and adopted innovative approach to deliver high quality medicines continuously during the pandemic and beyond. The industry has shown unwavering commitment to support the countrys healthcare needs as well as enhance its footprint across the world. A bright future stands ahead for Indias pharmaceutical business in 2023, with a greater emphasis on quality manufacturing, medicine affordability, and the use of innovation and technology. However, to combat certain challenges like low R&D spending, scarcity of skilled labor, intellectual property (IP) regulations and rights, and potential export contraction, a high level of agility and resilience is required.
Active ingredients are the substances in drugs that are responsible for the beneficial health effects experienced by consumers. The active ingredient in a pharmaceutical drug is called an active pharmaceutical ingredient (API). An example of an API is the acetaminophen contained in a pain relief tablet. The quality of active ingredients in a drug has a direct effect on the safety and efficacy of that drug. Poorly manufactured and contaminated active ingredients have been associated with negative health outcomes, including death, in a number of incidents over the past decades. The primary role of an API is to provide the therapeutic effect of a drug. Therefore, the quality and potency of the raw material API directly influence the effectiveness of the final pharmaceutical product.
In conclusion, the raw material API plays a vital role in pharmaceutical manufacturing, influencing the therapeutic effect, quality control, regulatory compliance, cost management, and supply chain management. As the pharmaceutical industry continues to evolve, the importance of raw material API in pharmaceutical manufacturing is set to remain paramount.
CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.
Place: Vallabhvidhya Nagar For and on behalf of the Board Date: 02/08/2023
Sanjaykumar Viththalbhai Patel DIN- 00370715 Managing Director
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