Remedium Lifecare Ltd Management Discussions

With strong manufacturing momentum, urban spending outpacing rural demand and bolstered investments, India exhibited a promising growth trajectory, indicating a positive outlook for Indias GDP growth during 2024. Despite geopolitical factors and varying FDI trends, India, it is opined, remains an attractive proposition for global investors due to robust macroeconomic fundamentals, the factors that affect an economy at large, including statistics regarding unemployment, supply and demand, growth, and inflation, as also monetary & fiscal policy, international trade.

With a large and growing market, a youthful workforce, and a steadfast policy, with an emphasis on educational reforms, upskilling, manufacturing, tech-enabled governance, infrastructure development and enhanced regional connectivity, the country, in the opinion of observers, offers significant opportunities for both greenfield investors businesses for engaging in market expansion, mergers and acquisition, and supply chain diversification.

Observers see India as a convincing foreign investment hub set to overtake Chinas growth forecast of less than 5 % in 2024. Even by the IMFs conservative estimates, India will emerge as the worlds 3rd largest economy by 2030 surpassing Japan and Germany, with her GDP exceeding US$5 trillion.

Micro, Small and Medium enterprises (MSMEs) are expected to play a pivotal role in fostering jobs, income, capabilities, and ecosystems for sustained growth in consumption, manufacturing, healthcare and infrastructure investments, according to observers. According to them, Indias digital economy will continue to attract investors as technology-based solutions are sought to transform peoples lives, governance, and enterprise operations. Heading into 2024, Indias economy looks steady and on an upward trend. The relatively stable Indian rupee against the US dollar and other prominent currencies, and adequate foreign exchange reserves are said to add to this optimism on the growth outlook.

Indian Pharmaceutical Scenario

The pharmaceutical industry in India as against $65 Bn in 2024 is expected to reach $130 Bn by 2030.

India is a major exporter of Pharmaceuticals, with over 200+ countries served by Indian pharma exports. India supplies over 50% of Africas requirement for generics, 40% of generic demand in the US and 25% of all medicines in the UK. India also accounts for 60% of global vaccine demand, and is a leading supplier of DPT, BCG and Measles vaccines. 70% of WHOs vaccines (as per the essential Immunization schedule) are sourced from India. Eyeing the transformation of the Indian pharma and Medtech sector from a cost-based to a value and innovation-based industry, the goverrnment seeks to pit India as a high-volume, high-value player in the global pharma market and meet the quality, affordability and accessibility goals.

The government scheme envisages the development of affordable, accessible solutions for primary areas of health concern, the launch of commercially viable products that will speed up the pharma sectors growth and promote industry-academia linkages and collaboration between the private sector and state-run institutes.

Besides, a scheme with a capital outlay of Rs 5,000 crore was approved by the Government to give a boost to R&D in the pharma and medtech sector.

Under the government scheme, a Rs 700 crore plan has been prepared for setting up seven centres of excellence at the National Institute of Pharmaceutical Education & Research (NIPER). The centres will be set up in predetermined areas.

A budget of Rs 4,250 crore has been allocated to encourage research in six priority areas like new chemical entities, anti-microbial resistance and complex generics, including biosimilars, medical devices, stem cell therapy and orphan drugs.

The large entities, MSMEs, SMEs and startups working with government institutes will get financial assistance for both in-house and academic research.

Strengthening the R&D capability of Indias $50-billion pharma sector is vital for its value-led future growth. The countrys pharma industry is the third largest in the world by volume. The pharma industry can potentially grow to $120-130 billion over the next ten years on the back of innovation and discoveries

ABOUT REMEDIUM LIFECARE LIMITED:

Remedium Lifecare Limited is engaged in the business of trading in Advanced Pharmaceutical Intermediates, Active Pharmaceutical Ingredients (APIs) and other pharma products used viz. Iso propyl Alcohol (IPA) ,Cyclohexane, DI Iso Propyl Amine (DIPA), Ethyl Acetate, Hydrazine Hydrate, Iso propyl Alcohol (IPA), Methylene Di Chloride, Potassium Carbonate Powder, Sodium Bi-Carbonate, Potassium Hydroxide Flakes, Sodium Chloride (Common Salt), Sodium Carbonate (SODA ASH), Amino isophthalic Acid, Tellurium(IV) Oxide, Grignard Reagent, Iodine, Selenium Metal Powder, Trimethyl Sulfoxonium Iodide (TMSI).

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the financial year 2023-24, the Company achieved a turnover of Rs. 4,04,170.67 Lakh as compared to Rs.50983.66 Lakhs during the previous year. Thus the income from operations of the Company has been increased by 792.75% as compared to last years revenue from operations During the year 2023-24, the net profit of the company has been increased from Rs.542.61 lakhs to Rs.3273.02 lakhs higher by 403.47% as compared to previous year.

OUTLOOK:

The company is taking all efforts to improve the quality of its products to get more orders at competitive rates. Due to bulk orders and bargain power Company is able to quote better rates and maintain high quality & productivity of the products traded. Barring unforeseen circumstances the company is confident of achieving better results in the current year.

With a view to grow business operation and diversify geographically, your company is planning to open two new subsidiaries viz Singapore & Mauritius.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has strong and adequate internal control system suitable to its size and nature of business. We constantly upgrade our systems for incremental improvements.

The Audit Committee of the Board regularly reviews the Internal Control System. The system ensures protection of assets and proper recording of transactions.

Internal audit is carried out by an Internal Auditor appointed by the Company on a quarterly basis. The internal auditors reports are regularly received by the Audit Committee. It is a regular practice to review the issues raised by Internal Auditors and statutory auditors by the Audit Committee.

RISKS AND CONCERNS:

The impeding threats arising out of geopolitical tensions, stock market volatility, growing concerns about a rise in the commodity and energy prices, the inflationary impact, potential interest rate hikes to reduce liquidity are likely to pose threats going forward.

MATERIAL DEVELOPMENTS IN HUMAN RESOUNCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The primary role of the Human Resources Management (HRM) function has been to transaction the change management process and effectively collaborate with departments and stakeholders to drive organizational excellence. The HRM function has driven changes in the way human assets are managed and developed, striking balance between business needs and individual aspirations.

Human Resources Management (HRM) has now become a business partner and taking key decisions, not just with respect to Human Resources (HR) but also businesses as a whole. It focuses on way of life, work culture, building culture and values, conflict resolution and employee engagement, productivity, effectiveness and efficiency.

Your Company initialed multiple actions to keep the workforce engaged. The HR Department is continuously looking at expanding opportunities for growth. The broader the employees experience, education and background, the more diverse their opinions and insights, the deeper the Companys collective understanding grows. The result is a collaborative environment that respects individual needs and promotes ongoing development.

DETAILS OF SIGNIFICANT CHANGES OF KEY FINANCIAL RATIOS:

Details of significant changes in Key Financial Ratios and any changes in return on net worth of the Company including explanations thereof are given below:

S r No.	. Key Financial Ratio	Financial Year 2023-24	Financial Year 2024-25	% change in key Financial Ratios	Explanation
1	Debt Turnover Ratio	7.32%	4.31%	69.84%	Increase in Debt Turnover Ratio
2	Inventory Turnover Ratio	56.94%	10.81%	426.73%	Increase in Inventory Turnover Ratio
3	Interest Coverage Ratio	14.03	NA	NA	No interest in FY 2022-23
4	Current Ratio	1.02%	1.01%	1.34%	Current ratio almost same as previous year
5	Debt Equity Ratio	1.34%	NA	NA	Company did not had Debt in FY 2022-23
6	Net Profit Margin	0.81%	1.06%	-23.58	Decrease in net profit margin.
7	Return on Net worth	76.19	52.35	45.54%	Increase in return of net worth.

CHANGE IN RETURN ON NET WORTH:

The return of net worth for the financial year 2023-24 has increased by 414.48% on account of profit during the year.

CAUTIONARY STATEMENT :

Statement in the Management Discussion and Analysis may be "forward looking statements" and are based on the currently available information. The management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to certain future events and uncertainties, which could cause actual results to differ materially from those, which may be indicated in such statements.