Strides Pharma Science Ltd.
|BSE: 532531||Sector: Health care|
|NSE: STAR||ISIN Code: INE939A01011|
|BSE 00:00 | 25 Sep||660.20||
|NSE 00:00 | 25 Sep||661.45||
|Mkt Cap.(Rs cr)||5,917|
|Mkt Cap.(Rs cr)||5917.37|
Strides Pharma Science Ltd. (STAR) - Director Report
Company director report
Your Directors have pleasure in presenting the 29th (Twenty-Ninth) Board's Report along with the Audited Financial Statements for the financial year ended March 31 2020.
1. Financial Summary
The financial performance of the Company on consolidated and standalone basis for the Financial Year ended March 31 2020 as compared to previous year is summarised below:
* 1 US$ = '75.34 (Exchange Rate as on March 31 2020)
** 1 US$ = '69.19 (Exchange Rate as on March 31 2019)
Previous year figures have been regrouped/ restated whereever necessary to make them comparable with those of the current year.
2. Company's Performance
FY 2019-20 was a stellar year of performance for the Company as it achieved significant milestones with its contrarian strategies and perspectives on the business.
The Company showcased a strong performance by executing all strategic and financial targets. This was in spite of the turbulence in operations which came on the last day of the financial year in the form of a US FDA notification directing all manufacturers of `Ranitidine' to withdraw their products from the market an event beyond anyone's control.
During the year we laid a strong foundation for sustainable margins in future led by regulated markets. Profitability Efficiency and Growth (PEG) continued to be our focus area and we have consistently demonstrated this across all parameters.
In FY 2019-20 on a consolidated basis your Company reported a revenue of '27637 Million ('29127 Million*) as compared to '21936 Million in FY 2018-19 registering a growth of 26% (33%*) on year- on-year basis. EBITDA for the year stood at '5276 Million ('6514 Million*) as against '2575 Million in the previous year an increase of 105% (153%*) leading to a stable EBITDA margin expansion of 19.1% (22.4%*) which is a new milestone for Strides.
On the business front the regulated markets vertical comprising our businesses in the US and other regulated markets including the UK the EU Canada Australia and South Africa witnessed an encouraging growth while achieving a critical scale.
The US business contributed '15422 Million (16912 Million*) to the total revenues pie of FY 2019-20 registering a growth of 47% (61%*) over the last year. Performance was primarily driven by niche product selections improved market share in the base portfolios consistent product launches and a stable price environment across several products in the Company's portfolio. Strides' growth model for the US business focuses on delivering low-volume low- competition high-technology barrier products built around modified releases soft-gel capsules (SGCs) topicals and liquids. The Company integrates its high-volume products with APIs driving cost leadership to achieve significant market share.
During the year the Company acquired the US FDA approved sGc production unit in Florida and intends to expand additional dosage format suites at the site for helping tap the opportunities under various federal government procurement programmes.
Other regulated markets
The other regulated markets business continued to scale up sequentially to become the fastest growing market for the Company registering a growth of 47% year-on-year. It contributed '8361 Million to FY 2019-20 revenues with growth attributed to increased market shares product launches and optimisation of portfolio. During FY 2019-20 front- end driven markets like the UK the EU and South Africa demonstrated a sustained performance.
In Europe the pharma market is extremely diverse and provides region-specific opportunities. UK is the Company's anchor market for continental Europe and represents an opportunity worth US$11 Billion in generics. Company is strengthening its presence in the Nordics and Western Europe with IP-led partnerships and B2B focused strategy around niche molecules with limited competition. During the year we acquired 70% stake in Fairmed Healthcare AG a Switzerland based generic pharma company to deepen footprint in the DACH region (Austria Germany and Switzerland). Additionally we are now gearing up to expand presence in Central and Eastern Europe (CEE) and the Mediterranean countries through partnerships.
Company has also scaled up its supplies to Australia. Growth momentum for this market is expected to continue in the coming years gaining from operating leverage and a large pipeline of approved products with market fungibility.
In South Africa the Company is building a strong base with portfolio maximisation to improve its IP landscape. We are leveraging the distribution of products through pharmacy chains and mail order systems and participating in the local antiretroviral (ARV) and non-ARV opportunities through a steady growth in regional footprint.
Canada's pharma market represents an opportunity of US$7 Billion. For Strides it serves as an organic growth lever as the Company is building a greenfield business in the country across generics private- label OTCs and the branded OTC extension from its portfolios in other markets.
Emerging Markets and Institutional Business
On the other end of spectrum the Company continues to operate with a cautious and calibrated approach in the Emerging Markets and Institutional Business. Our Emerging Market business includes our Africa operations except South Africa and institutional business.
Emerging Markets and Institutional business had its year of reset resulting in a tepid performance. Though the business has picked up sequentially in Q4 FY 2019-20 year-on-year basis the business reported a 33% decline in revenues. Emerging Markets and Institutional Business contributed '3853 Million to the total revenues of FY 2019-20.
This vertical aims to attain a leadership position in key African markets building a robust branded generics portfolio for the treatment of chronic therapies including Women's Health Central Nervous System (CNS) Cardiovascular Diabetes Dermatology and Probiotics.
While the Company is well poised to achieve planned outcomes on the antiretroviral (ARV) and malarial business it does see that the macro factors including the outbreak of COVID-19 could result in a reduced focus/donor pool for ARV Malaria and other infectious diseases.
Several antiviral drugs may be repurposed for COVID-19 in FY21 which could result in opportunities for the business. It is therefore important to monitor events in this vertical which could compliment growth of branded generics along with new launches in the Institutional Business.
FY 2019-20 highlights
Aligned with the growth strategy during the year the Company executed several corporate actions including the acquisition of a US FDA-approved soft gel manufacturing facility in the US acquisition of controlling stake in Fairmed Healthcare AG a joint venture with Sihuan Pharmaceuticals for the China market and divestment of the Australia business amongst others. During the year the Company re-entered the sterile injectables segment with an incremental investment upto a maximum of ~US$ 40 Million in Stelis Biopharma.
On the compliance front the Company's manufacturing facility at Alathur successfully completed US FDA inspection with zero 483s the second consecutive inspection with such an encouraging outcome. Puducherry remediation activity remains on track awaiting indication from the US FDA on inspection timelines. Besides the Company also successfully completed US FDA inspection at its newly acquired manufacturing site in Florida USA.
On the R&D front during FY 2019-20 the Company primarily focused on new formulations and portfolio maximisation wherein it evaluated its existing product basket for extension to other geographies with minimum efforts.
Strides received approval for seven ANDAs and filed for four more in the US. It has 20 new product filings for other regulated markets. The Company's R&D spend during the year stood at '939 Million. Going forward it is targeting 30-35 filings annually across different geographies. This will be facilitated by its linear structure and belief in churning out more filings with less resources.
Company is progressing steadily with the outcomes from the reset strategy across each of the business verticals both in terms of course correction and execution. Company has entered the next financial
year with a clearer conviction that its Reset and Resurgent strategy is in play and will continue to be its pillars of success. In FY21 its focus areas shall broadly be on growth strengthen profitability cash flows and sustainability.
A detailed analysis of each of the businesses of the Company is provided in the Management Discussion and Analysis Report.
3. Corporate Updates
During the year under review your Company has undertaken the following key corporate actions:
Joint Ventures and Acquisitions
a) Joint Venture with Sihuan Pharmaceuticals
In July 2019 Strides Pharma Global Pte. Limited (SPG) a step down subsidiary of the Company in Singapore entered into a joint venture arrangement with Sun Moral International (HK) Limited Hong Kong (Sun Moral) to fast track its entry into China the second largest pharmaceuticals market in the world.
Sun Moral is a wholly owned subsidiary of Sihuan Pharmaceutical Holdings Group Ltd. one of China's leading pharmaceutical companies.
As part of transaction Sihuan Strides (HK) Ltd the JV Company is formed wherein SPG holds 49% stake and the balance stake is held by Sun Moral.
SPG has licensed four products to the JV with an option to expand the portfolio subsequently.
Sihuan shall leverage its strong salesforce and distribution across mainland China to market the products.
b) Acquisition of US FDA approved soft gel manufacturing facility in the US
In August 2019 Strides Pharma Inc (SPI) a step-down subsidiary of the Company in the US acquired a US FDA approved soft gel manufacturing facility in Florida USA from Micelle BioPharma Inc. The facility is one of the very few manufacturing facilities in the US with a soft-gel capsule manufacturing suite for formulations with containment needs.
The facility has received Establishment Inspection Report (EIR) from the US FDA in January 2020.
SPI plans to expand additional dosage format suites for select large volume products at the Florida facility. The facility is also expected to help tap opportunities under various federal government procurement programs including procurements administered by the Department of Veterans Affairs (VA).
c) Acquisition of 70% equity stake in Fairmed Healthcare AG Switzerland
In September 2019 Strides Pharma Global Pte. Limited (SPG) a step-down subsidiary of the Company in Singapore acquired 70% equity stake in Fairmed Healthcare AG (Fairmed) a Switzerland based generic pharma company.
The acquisition enabled Strides to further strengthen its Other Regulated Markets Business by providing strong foothold in continental Europe with a direct presence in the DACH region (Austria Germany and Switzerland).
Strides' vast international product portfolio and Fairmed's market access in the DACH region is a highly complementary combination to pivot an extensive growth in the coming years.
Scheme of Amalgamations
During the year the Board initiated two Scheme of Amalgamations to facilitate consolidation of operations and to optimise group structure. Gist of the said schemes and status is as under:
a) Merger of Arrow Remedies Fagris Medica and Strides Emerging Markets into the Company
In July 2019 Board of Directors of the Company approved the Scheme of Amalgamation for merger of its direct/ indirect wholly owned subsidiaries viz. Arrow Remedies Private Limited (Arrow) Fagris Medica Private Limited (Fagris) and Strides Emerging Markets Limited (SEML) (collectively `Transferor Companies') into Strides Pharma Science Limited (the `Company') pursuant to the provisions of Section 230 to 232 of the Companies Act 2013 (`Scheme').
Appointed Date for the said amalgamation is April 1 2019 or such other date as the National Company Law Tribunal (NCLT) or such other competent authority may direct in relation to the amalgamation of Transferor Companies into the Company.
As the Registered Office of SEML is situated in Bengaluru and Registered Office of Arrow Fagris and the Company is situated in Mumbai two separate applications for approval of the Scheme were filed before the Bengaluru and Mumbai Benches of the National Company Law Tribunal ('NCLT').
Pursuant to the above Hon'ble NCLT Benches of Bengaluru and Mumbai dispensed with the meeting of equity shareholders and unsecured creditors of the Transferor Companies. Further in relation to the Company the Hon'ble NCLT Mumbai Bench inter-alia directed to (i) convene the meeting of equity shareholders for seeking approval of the Scheme; and (ii) issue notice of the said meeting to the secured creditors.
The meeting of the unsecured creditors of the Company was dispensed by the Hon'ble NCLT Mumbai bench.
Accordingly General Meeting of the Company was convened under the direction of the Hon'ble National Company Law Tribunal Mumbai Bench on February 20 2020 wherein the Scheme of Amalgamation was approved by Members of the Company.
The Scheme is awaiting final approval from the Hon'ble NCLT Bengaluru and Mumbai Bench.
Upon the Scheme becoming effective:
2) Since the Company is the ultimate holding company of the Transferor Companies there shall not be any issue of shares as consideration to the shareholders of the Transferor Companies.
3) The investments in the share capital of the Transferor Companies appearing in the books of account of the Company and its indirect wholly-owned subsidiary shall stand cancelled.
The amalgamation will enable the Company to consolidate and effectively manage the Transferor Companies and the Company in a single entity eliminate duplication of operating and administrative expenses simplify the group structure and enable the efficient use of infrastructure facilities and optimum utilisation of the available resources.
b) Scheme of Amalgamation of Vivimed Life Sciences into the Company In January 2020 Board of Directors of the Company approved the Scheme of Amalgamation for merger of its wholly owned subsidiary Vivimed Life Sciences Private Limited (Vivimed) into the Company pursuant to the provisions of Section 230 to 232 of the Companies Act 2013 (Scheme).
Appointed Date for the said amalgamation is October 1 2020 or such other date as the National Company Law Tribunal (NCLT) or such other competent authority may direct in relation to the amalgamation of Vivimed with Strides.
The Scheme is subject to approval of the shareholders and creditors of respective companies and approval of the Hon'ble NCLT
and other statutory/ regulatory approvals as may be required.
The Company is in the process of making necessary applications with the appropriate authorities in this matter.
Update on the divestment of Australian business
During FY 2018-19 the Company had received Member's approval for divestment of its Australia business. The transaction was pending for completion of other closing conditions including the merger of Arrow Pharmaceuticals Australia and Apotex Australia and closure of 10 year preferred supply contract.
In July 2019 post receipt of requisite approval Strides Pharma Global Pte. Limited (SPG) a step down subsidiary of the Company in Singapore entered into definitive agreements for divestment of the Australia business.
Effective July 10 2019 SPG has divested its entire shareholding in its subsidiaries viz. `Strides Arcolab (Australia) Pty Ltd. Australia' and `Generic Partners Holding Co Pty Ltd. Australia' to Arrotex Australia (Arrotex).
Aggregate consideration for the transaction was AUD 406 Million (including a deferred consideration of AUD 106 Million) reduced by bank debt settlement of AUD 22.47 Million. Proceeds net of transaction cost was used to pare down debts.
As part of the transaction SPG has retained access to IPs of over 140+ products and has concurrently entered into a preferred supplier agreement with Arrotex.
The said transaction has enabled the Company to strengthen its balance sheet and has been EPS accretive.
Incremental Investment in Stelis Biopharma Private Limited (Stelis)
The Board of Directors of the Company at their meeting held in September 2019 approved an additional investment upto ~US$40 Million into Stelis over a period of 24 months for a controlling stake.
This investment shall enable Stelis to achieve its objective of becoming a compelling global player in the biopharmaceutical space and to accelerate Strides' re-entry into the sterile injectable business.
As at March 31 2020 the Company holds ~47.81% stake in Stelis on a fully diluted basis.
4. Board of Directors and Key Managerial Personnel of the Company
Board of Directors and Key Mangerial Personnel (KMP) of the Company as at the date of this Report
The Board of the Company comprises of Eight Directors - Two Executive Directors and Six NonExecutive Directors of whom Four are Independent Directors details of which is provided below:
Details relating to changes in the Board of Directors and KMP are provided in the Corporate Governance Report which forms part of this Report.
Appointment Re-appointment & Retirement by Rotation of Directors
Proposal for appointment and re-appointment of the following personnel as Director shall be placed before Members of the Company at the ensuing Annual General Meeting (AGM):
1) Re-appointment of Mr Arun Kumar retiring director as Non-Executive Director of the Company.
2) Appointment of Dr. Kausalya Santhanam as an Independent Director of the Company for a period of 5 years effective from December 11 2019.
3) Appointment of Dr. R Ananthanarayanan as the Managing Director & CEO of the Company for a period of 5 years effective January 9 2020.
4) Re-appointment of Mr. Badree Komandur as the Executive Director - Finance & Group CFO of the Company for a further period of 3 years effective May 18 2020.
Your Directors recommend their appointment/ reappointment on the Board of the Company.
Disclosures pertaining to Directors being appointed/ re-appointed as required under the Companies Act 2013 and the SEBI Listing Regulations is provided in the explanatory statement to the Notice convening the 29th AGM of the Company for reference of the Members.
Meetings of the Board and Board Committees
Details of meetings of the Board and Board Committees and their respective composition are provided in the Corporate Governance Report which forms part of this Annual Report.
5. Share Capital
As at March 31 2020 the Authorised Share Capital of the Company stood at '1767500000/- divided into 176750000 equity shares of '10/- each.
Issued Subscribed and Paid-up Equity Share Capital of the Company as at March 31 2020 stood at '895654640/- divided into 89565464 equity shares of '10/- each.
There has been an increase in the paid-up equity share capital of the Company during the financial year under review on account of allotment of 15988 equity shares consequent to exercise of stock options by employees.
Interim Dividend for FY 2019-20
The Board of Directors of the Company paid an interim dividend of '12/- per equity share (i.e. 120%) of face value of '10/- each consequent to divestment of Company's Australia Business.
Final Dividend for FY 2019-20
Based on the Company's performance the Directors are pleased to recommend for approval of the Members a final dividend of '2/- per equity share (i.e. 20%) of face value of '10/- each for the financial year ended March 31 2020.
The total dividend for the financial year ended March 31 2020 (including the proposed final dividend) amounts to '14/- per equity share.
Dividend payout has been determined in accordance with the Dividend Distribution Policy of the Company.
Details of book closure date and record date for the purpose final dividend is provided under the head
`General Shareholders Information' in the Corporate Governance Report.
In terms of Regulation 43(A) of the SEBI Listing Regulations the Dividend Distribution Policy is available on the Company's website and can be accessed at http ://www.strides. com/investor-
7. Transfer to Reserves
Appropriations to general reserve for the Financial Year ended March 31 2020 as per Consolidated and Standalone Financial Statements are as follows:
(Rs in Million)
cnu ui Lite year
Note-excluding non-controlling interest
For complete details on movement in Reserves and Surplus during the Financial Year ended March 31 2020 please refer to the Statement of Changes in Equity included in the Consolidated and Standalone Financial Statements.
8. Subsidiary Joint Ventures and Associate Companies
Details of Subsidiaries Joint Ventures and Associate entities as at March 31 2020 are provided herein below:
List of Subsidiaries Joint Ventures and Associate entities which have become or ceased to be part of the Group forms part of Form AOC 1 enclosed as Annexure 1 to this Report.
Accounts of Subsidiaries
In accordance with Section 129 (3) of the Companies Act 2013 the Company has prepared a consolidated financial statement.
A statement containing salient features of the financial statements of the Company's subsidiaries joint ventures and associate companies as required in Form AOC 1 is enclosed as Annexure 1 to this Report.
9. Corporate Governance and Management Discussion and Analysis
As per SEBI Listing Regulations Corporate Governance Report along with the Auditor's Certificate thereon and the Management Discussion and Analysis Report forms part of this report.
Draft Auditors Report had qualification with respect to delay in appointment of woman independent director.
Management wishes to state that the Company had commenced efforts to fill up the vacancy immediately on its occurrence.
However given the qualification expertise and industry specific knowledge required for the position the process took more time than expected. Appointment of Woman Independent Director was formalised effective December 11 2019.
We confirm that currently Company's Board composition is in compliance with the requirements under Companies Act 2013 and the SEBI Listing Regulations.
10. Employee Stock Option Scheme
During the year under review Company had 2 Employee's Stock Option Plans viz. Strides Arcolab Employee's Stock Option Plan 2015 and Strides Employee's Stock Option Plan 2016.
Statement giving detailed information on stock options granted to Employees under the Company's Employee Stock Option Plans as required under Section 62 of the Companies Act 2013 read with Rule 12 of Companies (Share Capital and Debentures) Rules 2014 and Regulation 14 of SEBI (Share Based Employee Benefits) Regulations 2014 is enclosed as Annexure 2 to this Report and is also available at http://www.strides.com/investor-financial.html
11. Particulars of Employees
The statement containing particulars in terms of Section 197 (12) of the Companies Act 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 forms part of this report and is appended herewith as Annexure 3 to this report.
The statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 forms part of this Report.
Considering the first proviso to Section 136(1) of the Companies Act 2013 the Annual Report excluding the aforesaid information is being sent to the Members of the Company and others entitled thereto. The said information is available for inspection at the registered office of the Company during business hours on working days of the Company up to the date of the ensuing AGM. Any Member interested in obtaining a copy thereof may write to the Company Secretary in this regard.
12. Corporate Social Responsibility (CSR)
Strides' community interventions primarily focuses on Health & Hygiene Education Employability & Livelihood which are projects in accordance with Schedule VII of the Companies Act 2013.
CSR Policy of the Company is available on its website and can be accessed at http://www.strides. com/investor-committeboard.html
A detailed report on the CSR activities undertaken during the FY 2019-20 is enclosed as Annexure 4 to this Report.
13. Loans Guarantees or Investments
Details of Loans granted Guarantees given and Investments made during the year under review covered under the provisions of Section 186 of the Companies Act 2013 are given in the Note no. 39 to the standalone financial statements in the Annual Report.
14. Contracts or Arrangements with Related Parties
All the transactions with related parties are in the ordinary course of business and at arm's length basis. Further there are no materially significant related party transactions made by the Company which may have potential conflict with the interests of the Company.
The information on transactions with related parties pursuant to section 134(3)(h) of the Companies Act 2013 read with Rule 8(2) of the Companies (Accounts) Rules 2014 is attached as Annexure 5 to this Report.
All the transactions with related parties are disclosed in Note no. 44 to the standalone financial statements in the Annual Report.
Policy for Governance of Related Party Transactions is available on the Company's website at http:// www.strides.com/investor-committeboard.html
15. Auditors and Audit Reports Secretarial Audit Report
M/s. Gopalkrishnaraj H H & Associates a firm of Company Secretaries in Practice (Certificate of Practice No: 4152) is the Secretarial Auditor for the Company.
The Secretarial Audit for the FY 2019-20 inter-alia included audit of compliance with the Companies Act 2013 (Act) and the Rules made under the Act SEBI Listing Regulations and applicable Regulations prescribed by SEBI amongst others.
The Secretarial Audit Report is enclosed as Annexure 6 to this report and has an observation regarding delay in appointment of Woman Independent Director within October 31 2019.
Management wishes to state that the Company had commenced efforts to fill up the vacancy immediately on its occurrence. However given the qualification expertise and industry specific knowledge required for the position the process took more time than expected. Appointment of Woman Independent Director was formalised effective December 11 2019.
We confirm that currently Company's Board composition is in compliance with the requirements under Companies Act 2013 and the SEBI Listing Regulations.
M/s. B S R & Co. LLP Chartered Accountants (Firm Registration no. 101248W/ W-100022) were appointed as Statutory Auditors of the Company for a period of 5 years at the 26th AGM of the Company to hold office till the conclusion of the 31st AGM of the Company.
The Auditors Report for the financial year ended March 31 2020 is enclosed along with the financial statements in the Annual Report. The Auditors Report for the year ended March 31 2020 does not contain any qualifications observations or adverse remarks.
M/s. Grant Thornton India LLP are the Internal Auditors of the Company.
During the year under review Internal Auditors were satisfied with the management response on the observations and recommendations made by them during the course of their audit.
Pursuant to Section 148(1) of the Companies Act 2013 Company is required to maintain cost records and accordingly such accounts and records are made and maintained.
Pursuant to Section 148(3) and the Companies (Cost Records and Audit) Rules 2014 M/s. Rao Murthy & Associates Cost Accountants (Firm Registration No.: 000065) were appointed as the Cost Auditors of the Company for the Financial Year 2019-20.
16. Internal Financial Controls
The Company has in place adequate framework for Internal Financial Controls as required under Section 134 (5)(e) of the Companies Act 2013.
During the year under review such controls were tested and no material weaknesses in their design or operations were observed.
17. Risk Management
The Company has a risk management framework for the identification and management of risks.
In line with the requirement under the SEBI Listing Regulations the Company has constituted a Risk Management Committee (RMC) effective April 1 2019 comprising of members of the Board and Senior Management personnel. Composition of RMC is provided in the Corporate Governance Report which forms part of this Report.
RMC is entrusted with the responsibility of overseeing strategic operational and financial risks that the organisation faces along with the adequacy of mitigation plans to address such risks.
Additional details relating to Risk Management are provided in the Management Discussion and Analysis report forming part of this Report.
18. Other Disclosures
Nature of Business of the Company
There has been no change in the nature of business of the Company during the year under review.
The Company has not accepted any deposits covered under chapter V of the Companies Act 2013. Accordingly no disclosure or reporting is required in respect of details relating to deposits.
Whistle Blower Policy
Pursuant to provisions of section 177(9) of the Companies Act 2013 and SEBI Listing Regulations the Company has a Whistle Blower Policy in place.
The said Policy provides appropriate avenues to the directors employees and stakeholders of the Company to make protected disclosures in relations to the matters concerning the Company. The said Policy also establishes adequate mechanism to enable employees to report instances of leak or suspected leak of unpublished price sensitive information.
Audit Committee of the Company oversees implementation of the Whistle Blower Policy. During the year Company has not received any protected disclosure.
Strides' Whistle Blower Policy is available on the Company's website and can be accessed at http:// www.strides.com/investor-committeboard.html
Policy on Directors Appointment and Remuneration (Strides Nomination and Remuneration Policy)
The policy of the Company on Directors' appointment and remuneration including the criteria for determining qualifications positive attributes independence of a director and other matters as required under Section 178 of the Companies Act 2013 is available on the its website and can be accessed at http://www.strides.com/ investor-committeboard.html
Disclosure on compliance with Secretarial Standards
The Company complies with all applicable mandatory secretarial standards issued by the Institute of Company Secretaries of India.
The assets/ properties of the Company are adequately insured against loss due to fire riots earthquake terrorism amongst others and against other perils that are considered necessary by the management.
Reporting of Fraud
No frauds were reported by the Auditors as specified under Section 143 of the Companies Act 2013 for the Financial Year ended March 31 2020.
Significant and material orders passed by the Regulators or Courts
There were no significant and material orders passed by the Regulators/ Courts that would impact the going concern status of the Company and its future operations.
Extract of Annual Return
Extract of Annual Return in Form MGT - 9 is enclosed as Annexure 7 to this Report and is available at http://www.strides.com/investor-financial.html
Conservation of Energy R&D Technology Absorption and Foreign Exchange Earnings/
Details of Energy Conversation R&D Technology Absorption and Foreign Exchange Earnings/ Outgo are enclosed as Annexure 8 to this Report.
Policy on prevention of Sexual Harassment at workplace
Your Company has in place a Policy on Prevention of Sexual Harassment in line with the requirements of The Sexual Harassment of Women at the work place (Prevention Prohibition & Redressal) Act 2013 (PoSH Act). Strides has adopted a gender- neutral policy.
In terms of the PoSH Act your Company has also constituted Internal Complaints Committee (ICC). Adequate workshops and awareness programmes against sexual harassment are conducted across the organisation.
A disclosure relating to PoSH is provided in the Corporate Governance Report which forms part of this Report.
19. Declaration by Independent Directors
In accordance with Section 149(7) of the Companies Act 2013 and Regulation 25(8) of the SEBI Listing Regulations each independent director has confirmed to the Company that he or she meets the criteria of independence as laid down in Section 149 (6) of the Companies Act 2013 and Regulation 16(1) (b) of the SEBI Listing Regulations.
20. Board Evaluation
Evaluation of all the Directors Committees Chairperson of the Board and the Board as a whole was conducted for the year. Evaluation parameters and the process have been explained in the Corporate Governance Report which is part of this report.
21. Material changes and commitments if any
There were no material changes and commitments affecting the financial position of the Company which occurred between the end of the Financial Year to which this financial statement relates and the date of this report.
22. Directors' Responsibility Statement
Pursuant to the requirement under section 134 (3) (c) of the Companies Act 2013 with respect to the Directors' Responsibility Statement Board of Directors of your Company state that:
(a) in the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanation relating to material departures;
(b) 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;
(c) 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;
(d) directors have prepared annual accounts of the Company on a going concern basis;
(e) the directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively;
(f) directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
Your Directors take this opportunity to thank all its stakeholders employees medical professionals business partners government & other statutory bodies banks financial institutions analysts and members for their continued support and valuable cooperation.