AFFLUENCE

Company’s Affairs  During the year under review, your company has shown a good performance across all the business areas. •        The Contract Research Development and Manufacturing Organization (CRDMO) division has achieved a turnover of Rs 31,206.02 million as against Rs 35,166.22 million in 2021-22. •        The Active Pharmaceuticals Ingredient (API) division has achieved a turnover of Rs 2,222.74 million as against Rs 1,360.88 million the previous year. •        The marketing division has contributed a turnover of Rs 7,549.27 million, compared with Rs 9,029.50 million during the previous year.

Conservation of Energy Energy conservation measures taken are as under: Optimum energy conservation steps are being taken to reduce per unit cost. Power load factor is being monitored continuously as an energy conservation measure. Maintenance of proper voltage supply, proper load distribution and replacement of traditional tube lights with LEDs lead to regular saving of energy. Installed variable speed-based controller on the air compressor for minimizing the losses during unloading. An ON/OFF-based controller was installed in the cooling tower and the switching-based controller was monitored in the cooling tower fans, for reducing the specific power consumption. No waste is generated in the company which can be converted into any source of energy. No other alternative source of energy is feasible. Adequate additional investment is being made on energy conservation. The average performance in terms of production units is under control. However, electricity tariffs are beyond the control of the company. Particulars 2022-23 2021-22   Units of Electricity Purchased (Lakh Kwh) 369.78 327.87 Total Amount of Electricity Purchased (Lakh ?) 2,643.49 2,199.03 Rate of Electricity Per Unit (?) 7.15 6.71 Units (Lakh Kwh) Own Generation (DG. Set) 11.21 10.41 Consumption of Diesel Oil in DG (Lakh Lts.) 3.12 2.92 Units generated Per Litre of Diesel Oil 3.59 3.56 Total amount of Diesel consumed (Lakh ?) 290.70 223.92 Cost Per Unit (?) 25.92 21.52    

Technology absorption   Efforts are continuously being made for technology absorption. 1.      Akums has implemented a compliance tool called ‘Complinity’ for management of compliances applicable on the company. 2.      The company has also adopted software/ tools for the business development team. 3.      For the purpose of accounting records, the company has adopted the SAP system. 4.      The company has been engaged in product development, product improvement and cost reduction. 5.      The company has its own research and development centre approved by the Department of Scientific and Industrial Research (DSIR). 6.      During the financial year 2022-23, expenditure on research and development was Rs 247.08 million, as against Rs 223.64 million during the previous year. 

Foreign Exchange Earnings and Outgo: During the financial year 2022-23, trade receivables and trade and other payables in foreign currencies amounted to Rs 35.34 million and Rs 2.03 million, respectively.

Pursuant to the provisions of Section 134(3) read with Section 134(5) of Companies Act, 2013, the directors confirm that: •        In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. •        The directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period. •        The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities. •        The directors have prepared the annual accounts on a going concern basis. •        The company is not listed, yet the directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively. These controls are critical for ensuring the orderly and efficient conduct of business, including an adherence to the company’s policies, the safeguarding of its assets, prevention and detention of frauds and errors, the accuracy and completeness of accounting records, and the timely preparation of reliable financial information. •        The directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively. •        The directors have devised proper systems to ensure compliance with the provisions of all applicable secretarial standards and that such systems are adequate and operating effectively.