Dear Members,
Your Directors are happy to present the 33rd Annual Report
together with the Standalone & Consolidated Audited Financial Statements of the
Company for the year ended 31st March 2023.
1. OUR COMPANY (State of the Company's affairs)
Vimta Labs Ltd., originally established in 1984 as a Partnership firm,
is India's most comprehensive contract research and testing organization, providing a wide
range of services to biopharmaceutical, food, consumer goods, electronic, electrical,
agrochemical, healthcare, medical device, power, cement, oil & gas, ores &
minerals, infrastructure and many other industries, government organizations as well as
other industry participants. Over the span of ~40 years, we have developed a track record
of consistent quality, delivery and continuous innovation that has enabled us to grow
faster than our underlying markets over the past four years and deliver strong financial
results. We believe our scientific expertise, along with our cutting-edge technologies and
knowledge of applicable regulatory requirements help our customers bring to market safe
and quality products and maximize returns on their outsourcing spends. Broadly, these
services include:
Drug discovery, development, and drug life cycle management
support services in the areas of preclinical research, clinical research, central lab, and
analytical services for biopharmaceutical companies;
Preclinical research and testing services for medical device
companies;
Contract research and testing for agrochemical and specialty
chemical companies;
Food testing and analytical development services to support
manufacturers, processors, farmers, retailers, traders, exporters, regulators (viz. FSSAI,
BIS, APEDA, EIC, etal);
- VIMTA's Life Sciences Food Lab is a National Reference Lab for
testing of Water, Alcoholic & Non-Alcoholic Beverages;
- VIMTA setup and operates the National Food Laboratory at Navi Mumbai,
under PPP model with FSSAI. The contract was awarded to VIMTA in 2021 with a term of 25
years;
Clinical diagnostics services to patients, clinicians,
hospitals;
Environmental regulatory services such as impact assessments and
post project monitoring, to various industries such as power, infrastructure, cement, oil
& gas, mining etc;
EMI/EMC testing for electronic and electrical products/
components.
1.1. OUR VISION
To be seen as an Indian organization with a global perspective that has
created an integrated, quality driven, customer sensitive Contract Research and Testing
service platform, that's the most comprehensive of its kind across the globe.
1.2. OUR CORE VALUES
Integrity of service through honesty, responsibility and an
uncompromising commitment to Quality and Customer service.
Respect for all our team members, partners, customers,
suppliers, and all other people our business interacts with.
1.3. OUR CREDO
The values, beliefs and principles that guide us in our decisions and
actions.
We believe our work impacts the wellbeing of millions of people across
the globe. Our responsibility is to the end consumers, patients, and all others who use
the products we help discover or develop and test for quality. In protecting the interests
for these key stakeholders, everything we do must be with integrity, honesty,
responsibility and of high quality.
We are strongly committed to provide value to our customers in terms of
scientific knowledge, time and cost. Regulatory and quality system compliance must be the
corner stone for our services. Customers' orders must be serviced as per promised
timelines and accurately.
Our partner vendors must have fair and transparent opportunities to
grow their business with us.
We are responsible to our employees to provide a safe, harmonious, and
unbiased work environment where we are committed to each person's individual learning and
development. Employees must feel valued and believe that each one of them contributes to
the success and growth of the organization, and that their work impacts the society
beneficially. We must respect them, recognize their merit, and encourage them to make
suggestions and complaints. We must support the health and well-being of our employees and
help them to fulfill the needs of their work-life balance. There must be equal opportunity
for employment, development, and advancement for those qualified. We must have highly
capable leaders and their actions must be just and ethical. Compensation must be fair and
working conditions safe, clean, and orderly.
We acknowledge our responsibility to the communities and environment in
which we live and work. We must be a good corporate citizen and contribute to the
development of weaker sections of society. We must be a good corporate citizen and abide
sincerely with all applicable laws and good governance practices. We must protect and even
try to enrich the environment we live in, and also consciously use the natural resources
that we are privileged to have.
Our final responsibility is to our shareholders. Our business must have
intrinsic potential to flourish and make a sound profit. We must plan well for growth and
sustainability and execute our plans well. We must pay close attention to the markets we
work in and continuously evaluate the opportunities and risks to act upon. We must
innovate our services to stay relevant to market needs and make investments with balance.
We have to build state-of-the- art facilities, maintain current and reliable technologies,
and use materials that befit the purpose of our activities. Capacities must be enhanced,
and expansions must be pursued. Reserves must be created to provide for adverse times.
When we operate according to these fundamental principles, the shareholders should realize
a fair return.
1.4. OUR SERVICES
I. Biopharmaceutical industry services
From product discovery/development to release and post
approval/marketing services, we offer the following integrated services to
biopharmaceutical and vaccines industry.
Preclinical/early development/studies
IND/505 (b)(2) enabling/studies
Invitro studies (IVPT, IVRT, IVBE studies)
Clinical research and development
Bioanalytical
Analytical
Central lab
The services are in accordance with Good Laboratory Practices (GLP),
Good Clinical Practices (GCP) and current Good Manufacturing Practices (cGMP)
requirements, as applicable.
Lab locations:
Hyderabad
Accreditations & Approvals
Drug Controller General (India) - DCGI
GLP by National GLP Compliance and Monitoring Authority (NGCMA)
AAALAC
Committee for Purpose of Control and Supervision of Experiments
on Animals (CPCSEA)
Accredited by National Accreditation Board for Testing and
Calibration Laboratories for ISO 17025 & ISO 15189
College of American Pathologists (CAP)
Pre-approved by WHO for Good Practices for Pharmaceutical
Quality Control Laboratories (GPPQCL)
State Drug Control Administration (DCA)
II. Food & Agri Testing
Extensive quality (purity and nutrition analysis) and safety testing
expertise in all categories of food, water, and beverages including specialty services
such as GMO testing, testing for Dioxins & Furans, Trace Heavy Metals, Label Claims,
Radioactive isotopes, Vitamins and Minerals, Packaging and shelf life.
Methods development and validation.
Lab locations:
Hyderabad, Bangalore, Pune, Ahmedabad, Mumbai, Noida, Visakhapatnam,
Nellore.
Accreditations & Approvals
ISO 17025 by National Accreditation Board for Testing and
Calibration Laboratories
Food Safety and Standard Authority of India (FSSAI)
Recognized as National Reference Laboratory (NRL) for Water and
Beverages testing
Bureau of Indian Standards (BIS)
Export Inspection Council (EIC)
Agriculture Products Exports and Development Authority (APEDA)
European Commission
AGMARK
Tea Board
III. Clinical Diagnostics
Patient care services through wide range of test panels in Hematology,
Serology, Cytogenetics, Microbiology, Molecular Biology, Histopathology/ Cytopathology,
Biochemistry.
Lab locations:
Hyderabad, Delhi, Kolkata, Varanasi, Bhubaneswar, Visakhapatnam,
Vijayawada, Tirupati, Chennai.
Accreditations & Approvals
ISO 15189 by National Accreditation Board for Testing and
Calibration Laboratories
College of American Pathologists (CAP)
IV. Environment testing
Environment essentially being a multi-disciplinary science, the range
of services offered are also comprehensive and cater to the varied needs of industry,
pollution control agencies and regulatory authorities, in a larger pursuit of a green
globe.
Lab locations and branch offices:
Hyderabad, Coimbatore (moved to Chennai in 2023), Chennai, Noida,
Kolkata.
Accreditations & Approvals
Recognized by Ministry of Environment, Forest & Climate
Change (MoEF & CC)
ISO-18001 certified and Accredited by NABET-QCI for carrying out
EIA and EMP studies
Laboratory is ISO 17025 accredited by NABL (National
Accreditation Board for Testing and Calibration Laboratories)
V. EMI/EMC testing
Regulatory compliance and due diligence require that electronic devices
undergo EMI/EMC testing. The most common applications for EMI/EMC testing are for defence/
aerospace devices & components, consumer goods, medical devices, industrial devices,
wireless and telecom products. EMI/EMC testing is a critical step in bringing a new
product into market.
Lab Locations:
Hyderabad.
Accreditations & Approvals
NABL (National Accreditation Board for Testing and Calibration
Laboratories) Accredited as per ISO 17025
TEC (Telecommunication Engineering Center, GOI) recognized.
1.5. SERVICES OF WHOLLY OWNED SUBSIDIARY - EMATC LABORATORIES PRIVATE
LIMITED
Emtac is a wholly owned subsidiary of Vimta offering the following
services, which complement the EMI/
EMC testing services at Vimta.
Product safety testing for IEC/EN, BIS, TEC, BEE standards
Product Environmental Testing
Physical Security Product testing as per BIS and EN standards
Product Certification Services
Lab Locations:
Hyderabad.
Accreditations & Approvals
NABL (National Accreditation Board for Testing and Calibration
Laboratories) Accredited as per ISO 17025
NABCB (The National Accreditation Board for Certification
Bodies) Accredited for Product Certification as per ISO/IEC 17065
BIS approved
TEC (Telecommunication Engineering Center, GOI) recognized
2. OUR COMPANY'S PERFORMANCE
For F.Y 2022-23, your company recorded a consolidated revenue of '
3,216.34 million as compared to ' 2,797.28 million in the previous year and standalone
revenue of ' 3185.84 million as compared to ' 2,774.34 million in the previous year, which
in terms of growth is 15% and 14.8 % at consolidated and standalone levels respectively,
over previous year.
The EBIDTA for FY 2022-23 is 30.6% and 30.5% for consolidated and
standalone levels respectively, which grew well when compared to 28.8% and 28.8%, of the
previous year.
The Financial performance of the Company for the year ended 31st
March 2023 is summarized below:
(' in Millions)
Particulars No. |
Year Ended March 31, 2023 |
Year Ended March 31, 2022 |
|
Standalone |
Consolidated |
Standalone |
Consolidated |
I Total Income |
3,185.84 |
3,216.34 |
2,774.34 |
2,797.28 |
i) Expenses other than Finance costs and Depreciation |
2,215.69 |
2,232.79 |
1,962.08 |
1,979.92 |
ii) Finance costs |
26.44 |
26.45 |
14.96 |
14.98 |
iii) Depreciation |
305.40 |
307.13 |
231.58 |
233.29 |
II Total Expenses (i+ii+iii) |
2,547.53 |
2,566.37 |
2,208.62 |
2,228.19 |
PBT Before Exceptional Items (I-II) |
638.31 |
649.97 |
565.72 |
569.09 |
Less: Exceptional Item |
- |
- |
(12.24) |
(12.24) |
III PBT- After Exceptional Item |
638.31 |
649.97 |
553.48 |
556.85 |
IV Tax Expense |
165.32 |
168.25 |
142.90 |
143.55 |
V Profit After Tax (III-IV) |
472.99 |
481.72 |
410.58 |
413.30 |
Other comprehensive (loss)/income |
(0.22) |
(0.26) |
(2.03) |
(2.03) |
VI Total Comprehensive income for the year (V+VI) |
472.77 |
481.46 |
408.55 |
411.27 |
3. MANAGEMENT DISCUSSION AND ANALYSIS
Macro Economy Global Economy
More than a year later, repercussions of Russia's intervention in
Ukraine and emergence of highly contagious variants of COVID-19 continue to have a bearing
on several economies. Additionally, the global economic recovery is being hindered by the
tightening of financial conditions worldwide. As a result, several economies are
anticipated to experience a slowdown in income growth, along with an increase in
unemployment in 2023. Despite the central banks' efforts to tackle inflation by raising
interest rates, achieving price stability may take longer than expected. In the long term,
the prospect for economic growth appears less encouraging than it has been for several
decades. Global demand remained dampened driven by various economic factors, however, the
gradual decline in commodity prices and China's reopening of its economy, normalized
shipping conditions are expected to slightly boost global demand.
Outlook - Global
The global growth outlook remained uncertain due to sticky high
inflation, weakened demand, and the ongoing war. The global economic growth is expected to
slow from 3.4% in 2022 to 2.8% in 2023, with advanced economies experiencing the highest
deceleration from 2.7% growth in 2022 to an expected 1.3% growth in 2023.
Indian Economy
In the fiscal year 2022, the Indian economy saw substantial growth due
to private consumption and investment, though slower than the year before. However, in the
fiscal year 2023, India's growth will be influenced by several factors, including the
worldwide economic slowdown, restricted monetary conditions, and high oil prices. Despite
these challenges, the government's conducive policies, decreased non-performing loans in
banks, and considerable corporate deleveraging will serve as a boost to the economy's
growth.
Private consumption is likely to grow due to improved labour market
conditions, consumer confidence, and increased capital expenditure by the government.
Services sector is expected to see a strong recovery whereas agricultural sector expected
to sustain the growth momentum in FY2023. Inflation is expected to further cool due to
base effects and slowing demand, although adverse weather and higher global oil prices
present downside risks.
Outlook - India
India's GDP growth rate was 6.4% during FY2023 due to a combination of
factors such as expected global economic slowdown, strict monetary policies, and high oil
prices. Despite these obstacles, India's growth rate remains higher than that of
comparable economies, primarily due to strong domestic consumption and lower dependence on
global demand.
Industry Overview
(Opportunities and Threats)
Testing, Inspection & Certification Market Global
According to the forecast, the global testing, inspection, and
certification (TIC) market is expected to experience growth from USD 223.9 billion in 2023
to USD 265.0 billion by 2028, with a projected compound annual growth rate (CAGR) of 3.4%
during the forecast period.
Several key factors are anticipated to contribute to the growth of the
TIC market, including stringent government regulations aimed at ensuring product safety
and environmental protection. Additionally, the deployment of Internet of Things (IoT)
technologies necessitates interoperability testing, while the increasing trade in
counterfeit and defective pharmaceutical products calls for robust TIC measures.
Furthermore, the growing emphasis on digitalization to enhance customer experience and the
escalating significance of food safety and hygiene are expected to drive the TIC market's
growth in the foreseeable future.
Testing, Inspection and Certification (TIC) Market Forecast to 2028
By adopting secure and effective testing and inspection practices,
companies can uphold optimal quality standards, enhance productivity, and maximize
efficiency. Leveraging TIC practices allows companies to tailor their supply chain
activities to their specific requirements, streamlining their business processes.
The growing transportation and logistics sector offers promising growth
prospects for the TIC industry, driven by increasing global trade and the adoption of
intelligent logistics systems. These systems enable the use of TIC solutions to ensure
timely product delivery, reducing operational expenses across the value chain. Reliable
TIC practices are crucial in optimizing supply chain operations and maximizing
profitability in a highly competitive market.
Moreover, regional governments' persistent endeavours to enhance
transportation facilities, such as increasing frequency and improving safety measures for
public vehicles, are driving the adoption of well-organized TIC practices. These efforts
contribute to the establishment of a robust TIC environment, promoting efficient and safe
transportation for people.
The COVID-19 pandemic has had a notable impact on the TIC market, with
disruptions in manufacturing and production activities in various regions due to lockdown
measures implemented by national governments. Despite these challenges, the healthcare
sector has witnessed increased TIC practices, driven by the growing demand for healthcare
services and related products, including medical supplies. Similarly, the consumer goods
industry has also embraced TIC practices during the pandemic, as there has been a
heightened demand for safe and high-quality food products to meet consumers' needs.
In 2022, the testing segment dominated the TIC market, representing the
highest revenue share of over 70%. This can be attributed to the widespread use of testing
practices across industries such as automotive, energy & utilities, oil & gas,
petroleum, and manufacturing. Implementing rigorous testing of products enables companies
to uphold stringent quality parameters and meet customer requirements. As a result,
companies in various sectors are increasing their operational expenditure on testing
equipment investments, thereby driving market growth. The emphasis on maintaining
high-quality standards and customer satisfaction is acting as a catalyst for the adoption
of testing practices in the TIC market.
(Source: MarketsandMarkets, Grand View Research, and EY) India
India is a dynamic market for testing and inspection in the
Asia-Pacific region, driven by its status as one of the fastest emerging economies in the
region with significant growth in the production sector and increasing export of goods.
The Indian TIC market is projected to grow at a CAGR of 8.03% and reach USD 14.93 billion
by 2027. Among the fastest-growing sectors in the region, TIC activities for the
healthcare sector are prominent. The competitive advantage of Indian pharmaceutical
companies is bolstered by low production costs and robust R&D efforts, leading to
increased exports. Furthermore, the Indian government's Pharma Vision 2020 initiative aims
to establish India as a global leader in drug manufacturing. The potential for product
recalls is also expected to drive the demand for TIC activities in the pharmaceutical
industry.
In the consumer electronics sector, the Indian government has permitted
100% foreign direct investment (FDI) in electronic hardware manufacturing through the
automatic route, which is expected to attract increased investment in the sector. The
National Electronics Policy is also anticipated to further stimulate investment in the
electronics industry. Additionally, the "Made in India" policy promotes domestic
manufacturing, encouraging companies to produce their products in India and comply with
Indian TIC standards.
The food industry in India is expected to drive significant growth in
testing and inspection practices, fuelled by increasing concerns about food safety and the
need to reduce food recalls. To improve transparency and accountability in food safety
inspection and sampling, the Food Safety and Standards Authority of India (FSSAI), the
country's food regulator, has established a nationwide online platform. The FSSAI has
urged states to adopt this system to eliminate discrepancies and ensure food safety
officers are held accountable. Additionally, the FSSAI has developed inspection checklists
to facilitate efficient inspections of Food Business Operators (FBOs) by food safety
officers. These checklists are used to assess compliance with regulatory requirements and
determine the level of adherence to each requirement. This emphasis on standardized
inspection processes by the FSSAI is expected to drive growth in testing and inspection
activities in the food industry in India. India's EV Testing, Inspection and Certification
Market is expected to grow at a significant rate on the back of growing EV adoption,
rising focus by the Government to impose stricter regulatory standards on the automotive
industry, increasing sales of EVs, among others. Statutory Indian bodies such as Bureau of
Energy Efficiency, Structural Energy Research Centre and others have been playing a
crucial role in enabling the EV sector by focusing on building standards, safety
provisions, tariff categories. These, along with the growing consumer awareness on product
quality and safety will drive the nation's EV-TIC market in the times to come.
Outsourcing has emerged as a lucrative option for companies that are
unable to invest in setting up their own testing laboratories. As the Asia-Pacific region,
including countries like India and China, transitions from developing to developed status
through rapid industrial growth, several TIC firms have emerged to meet the increasing
demand for testing services. This demand is expected to drive the growth of the TIC market
in the region. However, a key concern for clients in this area is the potential
infringement of proprietary technology while obtaining necessary permissions to establish
testing units.
(Source: Morder Intelligence Report, 6wresearch Report and EY)
Contract Research Organisation Market Global
The estimated value of the global CRO services market in revenue for
2023 is $76.6 billion, with a projected growth to reach $127.3 billion by 2028,
representing a compound annual growth rate (CAGR) of 10.7% from 2023 to 2028. This
growth is primarily attributed to factors such as the continuous
expansion of pharmaceutical, biopharmaceutical, and medical device R&D pipelines, as
well as technological advancements in the clinical trials process. Additionally, the
increasing demand for novel clinical trial designs to support cell and gene therapies is
expected to create growth opportunities for companies operating in this market.
In the past decade, the field of drug discovery and development has
witnessed consistent growth, with an increasing number of clinical studies being conducted
and novel drug molecules advancing through various phases of the drug development cycle.
According to the pharma R&D Annual Review 2022, the number of drugs in the R&D
pipeline grew from 17,737 in 2020 to 20,109 in 2022. Additionally, data from
clinicaltrials.gov shows that the number of registered studies increased from 32,517 in
2019 to 36,770 in 2022, at a CAGR of 4.2%. This growth in the R&D pipeline of novel
drugs has resulted in an increased outsourcing of the drug development process, as
companies seek to leverage external capabilities and access scientific and process
innovations to develop cost-effective and efficient drug molecules. This trend is expected
to drive the growth of the CRO services market.
(Source: MarketsandMarkets and EY)
India
The CRO market in India is projected to reach USD 979.8 million by
2030, with a CAGR of 7.5% during the period from 2022 to 2030.
The Indian CRO industry is driven by several factors, including the
favourable climatic testing conditions in the country and the adoption of international
norms and intellectual property rights. Regulatory agencies such as the Director
Controller General of India (DCGI), the Indian Council of Medical Research (ICMR), and the
Directorate General of Foreign Trade (DGFT) are actively working towards creating
conducive conditions for research in India, which is further bolstering the industry.
The Indian government has taken significant steps to streamline
regulations related to clinical trials to promote drug development and innovation. The
removal of restrictions on the number of clinical trials investigators can conduct has
facilitated the growth of the Contract Research Organizations (CROs) market in India.
Mandating trial sites to maintain emergency medical care and rescue arrangements has
further improved trial safety and led to the development of experienced investigators and
key opinion leaders who are driving the growth of CROs in India. These regulatory changes
have made India an attractive destination for clinical trials, resulting in increased
clinical research in the country. It is important to note that ethical conduct and
participant safety remain a priority, with strict adherence to good clinical practices
(GCP) and ethical guidelines. The government and regulatory authorities such as the
Central Drugs Standard Control Organization (CDSCO) continue to monitor and regulate
clinical trials to ensure compliance with established standards. Overall, these changes
have promoted clinical research, stimulated drug development, and fostered innovation in
India.
The COVID-19 pandemic has had a significant impact on the CRO market in
India. The global efforts towards developing a vaccine for the coronavirus have also
influenced the development of other vaccines and medicines. During the peak of the
pandemic, a substantial portion, accounting for 30% of all clinical trials in the US,
focused on vaccines and therapies for COVID-19.
The In-vitro Diagnostics (IVD) contract research organization market in
India is projected to grow at a CAGR of 9.0%, reaching US$ 314.92 million by 2028, up from
US$ 172.00 million in 2021. This growth is attributed to factors such as increased demand
for IVD diagnostics due to rising prevalence of autoimmune disorders, infectious diseases,
cancer, and other conditions. Additionally, heightened awareness among people, a surge in
clinical trials, high research and development expenditure in the region for IVD, and low
operational costs in India are expected to promote market growth. Furthermore, the
COVID-19 pandemic has further accelerated the need for clinical trials for the development
of IVD testing kits for COVID-19, contributing to the overall growth of the IVD contract
research organization market in India.
Clinical Diagnostics Industry Global
The global clinical diagnostics market reached a size of US$76.2
billion in 2022 and is expected to grow at a CAGR of 8.56% to reach US$124.7 billion by
2028.
Clinical diagnostics involve detecting, identifying, and monitoring
diseases through a patient's signs, symptoms, health history, and physical examination.
These diagnostics include developing, manufacturing, and selling automated test systems,
informatics systems, test kits, and specialized quality controls. They are widely used in
hospitals, diagnostic laboratories, and point-of-care testing worldwide to aid in disease
management, patient stratification, and predicting therapeutic efficacy to improve patient
outcomes.
The market growth is driven by rising chronic disease prevalence,
increasing adoption of automated platforms for disease management, growing awareness about
laboratory tests, and healthcare providers using clinical diagnostics to develop targeted
therapies. Furthermore, the market is positively influenced by the escalating demand for
personalized medicine among patients.
(Source: Globe Newswire and EY)
India
The diagnostics industry in India is volume-driven and highly
fragmented, with a few large, organized players and numerous small and regional players
dominating 80-85% of the market. Factors such as higher life expectancy, changes in
lifestyle, and a health-conscious population are expected to contribute to industry
growth.
The COVID-19 pandemic led to an increase in demand for testing
services, resulting in higher volumes and realizations for the industry. While the Indian
government has promised to increase healthcare spending, pricing pressure remains a
challenge for industry players, with stiff competition from small regional players.
Pathology and radiology are the two categories of the diagnostics
industry, with pathology accounting for 58% of revenue and radiology for 42%. The industry
offers potential for growth, especially in rural areas where there is a low penetration of
testing centres, and consolidation may occur with the introduction of government
healthcare policies. (Source: Groww and EY)
Environment Testing Industry
Global
The global environmental testing market was valued at USD 11.07 billion
in 2022 and is projected to grow at a CAGR of 7.8% from 2023 to 2030. The increasing
concern over environmental degradation due to industrial activities and pollution in many
economies is driving the growth of the industry. Governments are investing in high-tech
testing tools and services to maintain hygienic and environmental standards and safeguard
the environment, leading to the growth of the market.
The demand for wastewater management is also expected to increase due
to rising temperatures, depletion of freshwater resources, and the need to reduce carbon
footprints. In addition, the industry is being driven by the privatization of testing
services and the need for third-party testing. Service providers are adopting various
strategies to gain a higher market share and meet changing technical demands from end-use
industries. Finally, the COVID-19 pandemic has further emphasized the need for sustainable
development and increased attention to Environmental, Social, and Governance (ESG)
indices.
India
The Indian environmental testing market is projected to reach $391.3
million by 2026 due to increasing pollution levels in the country and the need to adhere
to government regulations. Customized testing services and demand from regulatory bodies
for regular testing are driving market growth, along with the need for specific testing
methods to provide efficient results.
The National Water Mission, launched in 2009, highlights the need for
conservation of water and equitable distribution across India, which has led to a greater
need for environmental testing services. However, the high initial investments required
for deploying environmental testing equipment, especially for high sensitivity sensors
used in analytical instruments, pose a challenge for the market.
(Source: Industry Arc and EY)
Food Testing Industry
Global
The Food Safety Testing Market has surpassed a value of USD 19.5
billion in 2022 and is expected to grow at a 7% CAGR from 2023 to 2032, driven by the
rising demand for food consumption globally. The market growth is fuelled by the
increasing population suffering from foodborne illnesses due to contamination from various
sources.
Rapid urbanization, surging consumer income, and changing dietary
habits are expected to support industry growth. Rising concerns about product quality and
recalls have led businesses to adopt food safety testing methods.
Meat, poultry, and seafood testing dominate the market share. The
increasing need for proper food handling and preparation procedures to reduce the
possibility of contamination will promote growth in the pathogens segment which is
expected to reach USD 1 billion by 2032.
The rapid technology segment is expected to observe a 7% CAGR through
2032. Rapid technologies produce results in less than 48 hours, lowering the likelihood of
contamination in products scheduled for testing and allows corrective actions to be
performed in advance.
The market share from the processed food segment is expected to exceed
USD 9.5 billion by 2032. Food safety is a critical concern for producers since
contaminants can appear at any stage of production or supply.
The COVID-19 pandemic has positively amplified market revenue as
technical solutions were adopted to safeguard food safety. The introduction of alternative
rapid technologies and solutions for food testing is expected to complement industry
development in the future.
(Source: GMI and EY)
India
The Indian food safety testing market is rapidly growing due to the
high prevalence of foodborne illnesses in the country, particularly among young children.
The market is expected to reach USD 923.4 million in 2027.
The Food Safety and Standards Authority of India (FSSAI) is a
government-regulated organization that focuses on enhancing food safety testing procedures
in the country. To this end, it has developed the "Food Safety on Wheels"
initiative to provide mobile units for food testing. This initiative has been expanding
and now has 60 mobile vans and 95 modified mobile vans operating in different states and
union territories of the country. Additionally, according to a study conducted by the
Ministry of Food Processing Industries, 585 of the total number of food products testing
laboratories in the country have been accredited to international standards, such as
ISO/IEC 17025/ NABL. Overall, the increasing demand for food safety testing services in
India presents a significant growth opportunity for both government-regulated
organizations and private players in the market.
(Source: Mordor Intelligence Report and EY)
Electrical and Electronics Testing Global
The worldwide market for testing, inspection, and certification (TIC)
services in the electrical and electronics sector has experienced consistent growth in
recent years. The key drivers behind this expansion include rising demand for household
appliance testing, growing emphasis on electrical equipment validation, and the increasing
trend of globalization and brand protection.
The market for Electromagnetic Compatibility (EMC) Testing is projected
to grow significantly and reach $3.87 billion by 2028. EMC testing ensures that electronic
and electrical devices do not emit excessive electromagnetic interference and continue to
function as required in the presence of several electromagnetic phenomena. EMC is crucial
for the installation of electrical equipment in various industries. As the number of
electrical and electronic devices increases, governments are investing heavily in EMC
testing. EMC testing services are in high demand by manufacturers to ensure compliance
with regulatory standards, improve product marketability, and reduce manufacturing costs
in pre-production phase. Consumer appliances and electronics are driving the growth of EMC
testing applications due to the proliferation of wireless technologies and the
interconnection of various systems and components in electronic devices.
India
India EMC testing market is expected to grow at a CAGR of 7.7% and
reach $231.5 Million by 2028.
The manufacturing industry in India has emerged as a rapidly growing
sector. The Indian government has introduced the "Make in India" program to
bolster the manufacturing sector and establish it as a prominent global manufacturing hub.
The objective of this initiative is to elevate the contribution of the manufacturing
sector to 25% of the country's GDP by the year 2022.
The electronics industry in the region is experiencing robust growth,
fuelled by the increasing demand for advanced technological solutions. The widespread
adoption of smartphones, smartwatches, and other electronic devices is a key driving force
behind the market's expansion in the country. The consumer appliances and electronics
segment of the electromagnetic compatibility (EMC) testing market is anticipated to reach
a value of US$ 55.8 million by 2028, with a projected compound annual growth rate (CAGR)
of 6.4% during the forecast period. Similarly, the automotive segment of the EMC testing
market is estimated to be valued at US$ 49.2 million by 2028, with an expected CAGR of
9.3% during the forecast period.
(Source: Asia-Pacific EMC Testing Market Report and EY)
3.1 COMPANY OUTLOOK
Your Company is positive about its growth prospects in the
biopharmaceutical, food, environmental, and electronics & electrical contract testing
and research markets all of which have a strong positive outlook despite the current
global economic uncertainties, large competition, and stricter regulatory compliance
requirements. The Company has a strong customer base, and promising pipelines which give
it good visibility of growth over the medium term. Over the long term, the Company expects
it would strategically look at acquisition opportunities or alliances or partnerships to
enhance its market reach, capabilities and service portfolio, to gain further market share
in various countries. Penetration into overseas markets would be an important lever of
growth going forward. Domestic market continues to hold immense potential led by economic
growth in the country. However, inflationary pressures in terms cost of manpower,
technology and material, and pricing pressures due to proliferation of laboratories in the
country will be the key risks to watch out for. VIMTA continues to maintain its dominance
in the domestic food testing and contract research services to biopharmaceuticals
industry. Its expansion into electronic and electrical products testing services should
contribute to the Company's growth. The Company's leading position in the domestic market
should help it sustain its growth.
3.2 OUR STRENGTHS & STRATEGIES
Your company believes it is well-positioned to serve the global
biopharmaceutical, agrochemical, specialty chemical and medical device industries through
its integrated product development services. VIMTA provides services to its customers
through processes and procedures that are oriented to deliver strong compliance to
regulatory requirements, thereby maintaining the integrity of data and the reports, and
minimizing risks to the customers. VIMTA has a track record of strong science and quality
over a 40-year history, earning it a reputation as a leading, sophisticated contract
research and testing organization. Over the years it has developed wide range of
capabilities and offers high-value, advanced testing services, including GMP lab services,
bioanalytical, bioassays, ultra trace analyses and central laboratory infrastructure to
support product research and development. VIMTA believes it is the leader in the domestic
market for GMP analytical services and GLP nonclinical services. The GMP, GLP and GCP
compliant facilities have been successfully audited more than 100 times during the year by
customers, regulatory agencies, accrediting and certifying bodies, and Company's track
record of quality has earned it a strong reputation in the market.
Similarly, in food testing business, VIMTA is recognized as the leader
not only in its testing expertise, technologies, and quality, but also in its scale. VIMTA
has the largest pan India network of laboratories positioning it to take more market share
within the industry and continue to grow. It is counted as a center of excellence for the
country by the government organizations as well.
In both food and above-mentioned product development services for
biopharmaceutical companies, the broad spectrum of services, cutting edge instrumentation
and facilities with large footprint allows VIMTA to offer a comprehensive set of
scientific laboratory services. Further, the scale of services enables us to continuously
develop and refine our expertise and enhance our ability to bend the cost and time curve
of services to our customers.
In Electronics and Electrical testing, VIMTA has invested over Rs.300
million in capital expenditure to set up a state-of-the-art EMI/EMC testing facility which
has capabilities to test electronics used for even military/ defense components. VIMTA
believes that this capability is a differentiated offering to the industries in the
domestic market. The safety and environment tests capabilities of Emtac Laboratories Pvt.
Ltd., the WOS of VIMTA, complement well the EMI/EMC services. In future years the breadth
of the menu offered by Emtac will be strengthened to widen the customer base, which will
benefit VIMTA as well in expanding its reach in the market.
The environmental services comprise of again a diverse range of
offerings. The experience of the company and its team in environmental services in second
to none in the domestic market. Geographic expansion of VIMTA's Environment offices into
more States has been undertaken to reach more customers. Company has long-standing
relationships with its customers as demonstrated by having provided services for decade or
more to several of its top customers. These relationships tend to have larger and
longer-term contracts, which provide stability and visibility to Company's revenues in
environmental services.
VIMTA's clinical diagnostics laboratory services are spread across 9
cities including central reference lab in Hyderabad, regional reference labs and satellite
labs. Company has a strong B2B reputation in the local markets. Despite the tough market
conditions in diagnostics industry, company has been able to retain its customers thanks
to its reputation as a high quality service provider. Company will focus on
B2B business to grow its reach in its local markets and in the future
should be able to grow through professional partnerships with hospitals and other
healthcare centers.
Across all its business units, the company believes that the technical
and scientific expertise of its dedicated employees provides it with a competitive
advantage. With a large pool of scientists holding advanced, masters or equivalent
degrees, including PhDs, VIMTA has an edge due to the varied-scientific talent pool. The
cross pollination of scientific domain expertise is leveraged often to create innovative
as well as comprehensive solutions for customers across industries.
VIMTA has strategically developed and oriented its contract research
and testing laboratory services towards the lucratively growing industries and their
outsourcing needs, to position itself to win high value-add business. The service model is
focused on providing to customers both standalone services as well as a mix of
full-service contracts. VIMTA leverages its experience in managing laboratory operations
for 40 years, to create efficient processes delivering quality outputs that helps in
maintaining long term stable customer relationships. Furthermore, company is focused on
continuous operational improvements and prudent cost management. Company believes that its
strong financial profile demonstrates the quality and robustness of the business model and
positions it for continued growth.
3.3 KEY FINANCIAL RATIOS
In accordance with SEBI (Listing Obligations and Disclosure
Requirements), Regulations as amended in 2018, following are the details of significant
changes (changes of 25% or more as compared to the immediately previous financial year) in
key sector specific financial ratio.
Key financial ratios:
Ratio |
Financial Year 2022-23 |
Financial Year 2021-22 |
Debtors Turnover Ratio (in days) |
90.03 |
98.66 |
Inventory Turnover Ratio (in days) |
22.94 |
20.99 |
Interest Coverage Ratio |
50.38 |
46.20 |
Current Ratio |
2.86 |
2.60 |
Debt Equity Ratio |
0.05 |
0.08 |
Operating Profit Margin* |
20.18% |
20.47% |
Net Profit Margin** |
15.14% |
14.85% |
Price Earning Ratio |
13.94 |
16.85 |
Return on Capital Employed |
21.95% |
24.72% |
Brief reasons for significant change in the ratios when compared to
previous year are as under:
Debt Equity Ratio: Debt-equity ratio improved due to debt repayments
and higher cash accruals.
Price Earning Ratio: Price Earning ratio declined with increase in
Earnings Per Share.
Return on Capital Employed: ROCE declined due to increase in total
equity.
*Operating Profit Margin: Operating EBTDA to Revenue from Operations.
**Net Profit Margin: Net Profit to Revenue from Operations.
3.4 MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS,
INCLUDING NUMBER OF PEOPLE EMPLOYED
With the growth in business, the company's human resource strength grew
by 16% and as on 31st March 2023, Company had 1368 employees. Company's focus
is on increasing productivity of manpower and engaging them well for achieving greater
connect to business goals and objectives. Company has increased reliance on technology to
drive these initiatives.
3.5 INFRASTRUCTURE
Vimta is one of India's largest Contract Research & Testing
Organisations, equipped with state of art Testing. Headquartered in Hyderabad, Vimta has a
network of 20 laboratories, including 03 Environment branches, 09 Clinical Diagnostics
branch/satellite lab, 08 Food branch labs in India. The total built up area of the labs is
~ 4,00,000 sq.ft.
3.6 INVESTMENTS
VIMTA has consistently been committed to adding and improving its
capabilities and service offerings. The broad range of industries that it serves and
likewise its wide spectrum of services, are leveraged to stay resilient and pursue long
term strategic objectives for growth. Company believes that the contract research and
testing industry is constantly evolving, giving rise to newer opportunities. VIMTA is
adept at evaluating opportunities in a disciplined manner that is both capital efficient
and growth oriented.
It firmly believes that it is on a strong growth path and has made the
right investments over the years. In order to sustain the growth momentum in coming years,
company requires more capacities and therefore has embarked on almost doubling
infrastructure capacities in its Life Sciences campus, Hyderabad. This significant
investment is a strong reflection of the company's confidence on the increasing demand for
its services.
3.7 RISKS & CONCERNS
Risks are inherent to any business. They are managed by the Company
through a risk management process of risk identification and risk mitigation, through risk
reduction strategies & plans and continuous monitoring of the effectiveness of the
risk mitigation measures to control them.
The Risk Management Committee duly constituted by the Board has
formulated a Risk Management Policy for dealing with different kinds of risks attributable
to the operations of the Company. Risk Management Policy of the Company outlines different
kinds of risks and risk mitigating measures and this is reviewed periodically by the Audit
Committee and the Board. The Company has adequate internal control systems and procedures
to combat risks.
Vimta continues to strive to stay ahead on the competition curve
through creation of new service opportunities, operational excellence and uncompromising
commitment to quality, regulatory compliance, and customer service. However, there may be
certain risk factors that could adversely impact business.
Quality related risks: Poor performance in regulatory audits and
accreditation body audits could adversely impact our business. Maintaining quality and
compliance is part of every activity in the organization. The management leads the quality
culture, understanding very well that this is critical for business success and survival.
However, unforeseen poor or inadequate performance by employees could lead to regulatory
risks. There are adequate built in controls and checks to mitigate this risk.
Nevertheless, these risks cannot be ruled out.
IT related risks: Our ability to serve customers effectively depends on
the reliability of our data & information management and communication systems. We
leverage computerized technologies and IT tools to perform many business critical
activities hence we depend on the efficient and uninterrupted operation of our data &
information management and communication systems, including systems we use in the
laboratory, data management systems, systems used to deliver services to our customers,
and failures in, breach of, or unauthorized access to or use of these systems or data
contained therein may materially limit our operations and result in significant harm to
our business. IT risk management is a part of our quality management system and thus the
security and operation of our data management systems and communication systems, including
data management systems and communication systems. Cyber-attacks could lead to disruption
in operations. These are addressed through adequate back-up mechanisms and Disaster
recovery process. A dedicated team is set up to constantly keep upgrading the IT Assets
and implement the latest technologies to keep the environment safe and secure. Despite the
extensive risk mitigation measures in place, the risk of disruption to our operations and
business cannot be completely ruled out.
Service failure related risks: We are a scientific services
organization and quality of service to the customers is critical for growth of our
business. Quality of service is related to our ability to deliver reports and projects
with scientifically reliable and accurate information; compliance to contractual
requirements, regulations, standards, guidelines as applicable; and service customers with
professional and ethical conduct. If we fail to perform our services per these
expectations, we could lose confidence of our customers who may choose not to award
further work to us, or make claims against us for breach of our contractual obligations.
Any such action could have a material adverse effect on our reputation, business, results
of operations, financial condition and/ or cash flows. Our mitigation strategy is directed
towards continuously strengthening our capabilities, and learning and implementing best
practices. Further, stringent review systems and suitable preventive actions are in place.
Financial risks: Vimta makes continuous investments in capacity
expansion, market reach and new business streams. These investments are based on good
business judgement through market study, backed by strong planning and risk mitigation
measures. However, time factors and market dynamics could delay results and/ or create
risks in obtaining returns on such investment. Other financial risks include bad debts
from customers for various reasons; and liquidity risks as a result of any poor cash flows
that could further lead to non-servicing of loans. Your company has dedicated groups for
customer relations management and credit control. There are adequate checks to identify
risky customer accounts and control business with them to minimize risks. Nevertheless,
these risks cannot be completely ruled out.
Data risks: As a third-party provider of services, we often get into
various service agreements, with customers including requirements on data confidentiality,
data security and IP protection. Given the large scale of human resources involved in our
organization, and the inherent vulnerability of IT solutions deployed, we may be at risk
as a result of unintentional violations of customer contracts and agreements, which could
further lead to significant legal risks for the business. This is mitigated through strong
physical security and electronic security systems; trainings to employees, business
continuity processes such as electronic data disaster recovery systems; confidentiality
oaths from employees; well-propagated whistle blower policies etc. Nevertheless, these
risks cannot be completely ruled out.
Growth and personnel related risks: Our business has been having
sustained growth over the past few years and growth if not managed well places a strain on
human, operational and financial resources. To manage our growth, we must continue to
attract and retain talented staff across the business operations. Management pays strong
attention to continuously building and improving operating and administrative systems to
enhance productivity of personnel and processes and also to have a stronger administrative
control on the businesses spread at various locations across the country. Given the
dependency of business on quality of personnel there are inherent risks associated with
personnel's abilities and ethical conduct, which may impact adversely customer
satisfaction. Thus, if we are unable to manage our growth effectively, we could lose
business from our customers. Further, if we are unable to recruit, retain and motivate key
personnel, our business could be adversely affected. Our success depends on the collective
performance, contribution and expertise of our senior management team and other key
personnel throughout our businesses, including qualified management, professional,
operational, scientific, technical, and business development personnel. There is
significant competition for qualified personnel in all the industries that we operate in,
particularly personnel with significant experience and expertise. The loss of any key
executive, or our inability to continue to recruit, retain and motivate key personnel in a
timely fashion, may adversely impact our ability to compete effectively and grow our
business and negatively affect our ability to meet our short and long-term business and
financial goals. Company takes several steps to maintain a motivated and engaged team.
Initiatives such as ESOPs to attract & retain talent, rewards and recognition
programs, personnel competency enlargement programs etc., are among the many best
practices followed by the company. Nevertheless, the risks related to growth and personnel
cannot be completely ruled out.
Other risks: A few more such risks and concerns are, change in
regulations and regulatory environment; downturn in economies that our business operates
in; steep drop-in service prices from competition; increase in prices of input material;
changes in laws such as tax laws etc. External risks also include foreign exchange risks;
interest rate risks; risks from terrorism etc. Further there are also risks of critical
equipment breakdowns, power breakouts, short supply of any input material or consumable,
fire, and other natural calamities. These are handled through a robust business continuity
plan where adequate backups are created and tested from time to time for their
effectiveness, nevertheless these risks cannot be completely ruled out.
It is possible that the above list of risks does not cover all risks
exhaustively. However, being an experienced organization, the mitigation measures are
in-built into the organization, its strategy and processes, which have so far helped the
organization go through, and grow through, various phases of business and the market
situations. It will be management's continuous endeavour to develop strategies that would
help the organization de-risk its business & grow with opportunities.
4. DIVIDEND
Your Directors have recommended a dividend of ' 2/- per equity share of
' 2/- each, for 2022-23 fiscal.
5. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION &
PROTECTION FUND (IEPF)
Members may please note that as per the provisions of Sections 124
& 125 of the Companies Act, 2013 read with Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, dividends that remain
unclaimed for a period of seven years from the date of transfer to the Unpaid Dividend
Account shall be transferred to the Investor Education & Protection Fund.
Details of unclaimed dividends and the due dates on which those are
liable to be transferred to the Investor Education & Protection Fund are given below:
Year of Dividend - Final |
No. of Shareholders who have not claimed |
Unclaimed Amount (?) |
Date of Declaration |
Date of transfer to unpaid account |
Last date of transfer to IEPF |
2015-16 |
821 |
426444.00 |
02.09.2016 |
08.10.2016 |
08.10.2023 |
2016-17 |
Dividend Not Declared |
|
|
|
|
2017-18 |
627 |
354280.00 |
25.08.2018 |
30.09.2018 |
29.09.2025 |
2018-19 |
506 |
325536.00 |
27.07.2019 |
01.09.2019 |
31.08.2026 |
2019-20 |
Dividend Not Declared |
|
|
|
|
2020-21 |
2316 |
618666.00 |
05.07.2021 |
10.08.2021 |
09.08.2028 |
2021-22 |
674 |
317981.00 |
25.06.2022 |
31.07.2022 |
30.07.2029 |
6. TRANSFER TO RESERVES
No amount is proposed to be transferred to reserves during the year.
7. CORPORATE GOVERNANCE REPORT
In compliance with the provisions of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, a separate report on corporate governance
along with a certificate from a practicing Company Secretary on its compliance and forms
an integral part of this Board's Report.
8. ANNUAL RETURN
Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of
the Companies (Management and Administration) Rules, 2014, (as amended), a copy of the
Annual Return of the Company will be uploaded on the website of the Company, which can be
accessed at https:// vimta.com/wp-content/uploads/Anuual-Returns-2022-23. pdf.
9. CORPORATE SOCIAL RESPONSIBILITY
The Company as part of its Corporate Social Responsibility (CSR)
initiative, undertook and supported many projects such as:
promoting health care; preventive health care;
eradicating hunger, poverty, and malnutrition;
promoting education especially among children and the differently abled
and livelihood enhancement projects, and;
animal welfare, wherein it rescues and rehabilitates sick and needy
animals.
During the year under review, the Company has spent a total sum of '
62,45,570/- on the CSR activities as approved by the CSR Committee. Disclosures as per
Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is enclosed as
Annexure I to this report.
10. MEETINGS OF THE BOARD
During the year under review, four Meetings of the Board were convened
and held, the details of which are given in the Corporate Governance Report, which forms
part of this report. The intervening gap between the Meetings was within the limits
prescribed under the Companies Act, 2013.
11. SHARE CAPITAL
As at the end of the year, the authorised Share Capital of the company
stood at ' 7,00,00,000 (Rupees Seven Crore only) divided into 3,50,00,000 Equity shares of
' 2/- each and Paid-up Capital stood at ' 4,42,57,978 (Rupees Four Crore Forty-Two Lakh
Fifty-Seven Thousand Nine Hundred and Seventy-Eight Only) divided in to 22,128,989 equity
shares of ' 2/- each. During the year under review, the company has allotted 21,179 equity
shares of ' 2/- each to the Employees upon exercise of Employee Stock Options under
"Vimta Labs Employee Stock Option Plan 2021". Disclosure under Section 67(3)(c)
of the Act in respect of voting rights not exercised directly by the employees of the
Company is not applicable.
12. ISSUE OF SHARES
During the year under review, the Company has not:
i) Issued any shares with differential voting rights pursuant to
provisions of Rule 4 of the Companies (Share Capital and Debenture) Rules, 2014;
ii) Issued any sweat equity shares to any of its employees, pursuant to
the provisions of Rule 8 of the Companies (Share Capital and Debenture) Rules, 2014.
13. FINANCING THE PURCHASE OF SHARES OF THE COMPANY
During the year under review, the company has not given, whether
directly or indirectly, and whether by means of a loan, guarantee, the provision of
security or otherwise, financial assistance for the purpose of, or in connection with, a
purchase or subscription made or to be made, by any person of or for any shares in the
company in violation of the provisions of Section 67 of the Companies Act, 2013.
14. EMPLOYEE STOCK OPTION PLAN
The members of the Company at their 31st Annual General
Meeting held on 5th July 2021, had granted approval for "Vimta Labs
Employee Stock Option Plan 2021" and grant of stock options to the Eligible Employees
of the Company under the scheme. The Company has obtained In-principle approval from Stock
Exchanges for Vimta Labs Employee Stock Option Plan 2021 for issue of 663,234 Options. Out
of which Nomination and Remuneration Committee at its meeting held on 19th
September 2021 granted 507,769 Options in Tranche I, on 11th May 2022 granted
17,961 Options in Tranche II, and on 26th October 2022 granted 35,702 Options
in Tranche III, out of the Total Grant of 663,234 Options. The details of "Vimta Labs
Employee Stock Option Plan 2021" form part of the Notes to Accounts of the Financial
Statements in this Annual Report.
Further, during the year under review, the company allotted 21,179
equity shares of ' 2/- each to the Employees upon exercise of Employee Stock Options under
"Vimta Labs Employee Stock Option Plan 2021."
The disclosures pursuant to Regulation 14 of the Securities and
Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 can be accessed
at https:// vimta.com/wp-content/uploads/Disclosures-pursuant-to-
Regulation-14-of-the-Securities-and-Exchange-Board-of-
India-Share-Based-Employee-Benefits-Regulations-2014. pdf and the same are enclosed as
Annexure II to this report together with a certificate obtained from the Secretarial
Auditors confirming compliance with the Companies Act, 2013 and the SEBI (SBEB)
Regulations, which is enclosed as Annexure III to this report.
15. CHANGES IN THE NATURE OF BUSINESS
There has been no change in the nature of business of the Company
during the year under review.
16. PARTICULARS OF DEPOSITS
During the year under review, the company has not accepted any deposit
pursuant to the provisions of Sections 73 and 76 of the Companies Act, 2013 read with the
Companies (Acceptance of Deposits) Rules, 2014. Thus, there is no non-compliance with the
requirements of Chapter V of the Companies Act.
17. SUBSIDIARIES
EMTAC laboratories Private Limited, established in 2014, became a
wholly owned subsidiary (WOS) of Vimta Labs Ltd in March 2020. Its principal business is
testing and certification. It provides safety/performance testing services for electrical,
electronic, and mechanical products and is also a physical security products, (bank
safes/lockers, ATMs, home use lockers, fire wall doors etc.) certification company.
Emtac is located at Hyderabad, India. Its laboratory division is
accredited to ISO 17025 by National Accreditation Board for Testing and Calibration
Laboratories (NABL) and the certification division is accredited to ISO 17065 by NABCB
(National Accreditation Board for Certification Bodies). It is also a Bureau of Indian
Standards (BIS) approved and Telecommunication Engineering Center (TEC) designated
laboratory. Its vision is to be one of the world's most respected product testing and
certification laboratory, recognized for its technical competence, quality, integrity and
customer partnership.
Emtac is India's First Laboratory to be awarded NABL accreditation for
Physical Security Products and also the first Laboratory in Telangana state to be
accredited by NABL for safety testing of IT Products (viz., mobile phones, CCTV cameras,
laptop components, cash registers, set top boxes, adapters etc.), UPS, LED lights,
Electric Fans, Power banks, etc. It is one of the very few labs recognized by BIS for
testing of table fans. It has a very strong technical team, which has made India's first
ATM testing standard.
Emtac was strategically acquired by Vimta to complement its entry into
electronic and electrical testing space. While Vimta offers EMI/EMC testing for consumer
durables, defence, avionics, automotive, IT, wireless, telecom, medical and other
industrial equipment and components, Emtac complements with safety and Environmental
testing along with certification services to offer comprehensively packaged testing and
certification services.
Emtac recorded revenues with a growth of 126% in the financial year
2022-23 at ' 58.38 million. Profit before tax for the financial year 2022-23 stands at '
11.64 million compared to ' 3.35 million in the previous year.
The statement containing the salient features of the financial
statements of the wholly owned subsidiary as per sub-section (3) of Section 129 of the
Companies Act, 2013 in Form AOC-1 is annexed as Annexure IV to this report.
During the year, no other company has become or ceased to be a
subsidiary or joint venture or associate company of this company.
18. PARTICULARS OF LOANS AND GUARANTEE GIVEN, SECURITY PROVIDED AND
INVESTMENT MADE
As required under Section 186(4) of the Act, your Directors report
includes Particulars of Loans, Guarantee given and security provided and investment made
details, are shown in Annexure V and Notes to the Financial Statements (Refer Note 42 of
Standalone Financial Statements).
19. PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in
Annexure VI to this Report.
If any Member is interested in obtaining information pursuant to Rule 5
(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014,
such Member may write to the Company Secretary at the Registered Office in this regard.
20. AUDITORS
a) Independent Auditor's Report
During the year under review, the Company's auditors have not made any
qualification, reservation or adverse remark or disclaimer in their Report on the
financial statements of the Company and there were no instances of frauds reported by the
auditors under section 143(12) of the Companies Act, 2013.
b) Statutory Auditors
Pursuant to the provisions of sections 139,142 and other applicable
provisions of the Act read with the rules made thereunder, M/s Gattamaneni & Co.,
Chartered Accountants (Firm Reg. No. 009303S) were appointed Statutory Auditors of the
Company for a term of five consecutive years from the conclusion of the 32nd
Annual General Meeting (AGM) held on 25th June 2022 on a remuneration mutually
agreed upon by the Board of Directors and the Auditors. They hold office until the
conclusion of the 37th Annual General Meeting to be held in the calendar year
2027. The auditors have confirmed that they hold valid certificate issued by the Peer
Review Board of the Institute of Chartered Accountants of India and eligible to continue
to hold the office for rest of their tenure.
c) Internal Auditors
Pursuant to the provisions of section 138 of the Act and based on the
recommendations of Audit Committee, the Board of Directors at their meeting held on 3rd
May 2023, have reappointed M/s Chaitanya V & Associates, Chartered Accountants as
Internal Auditors of the Company for the financial year 20232024. M/s Chaitanya V &
Associates, Chartered Accountants, have confirmed their willingness to be reappointed as
the Internal Auditors of the Company. Further, the Audit Committee in consultation with
Internal Auditors, formulated the scope, functioning periodicity and methodology for
conducting the Internal Audit.
d) Cost Auditors
Pursuant to the provisions of section 148 of the Act read with the
Companies (Audit and Auditors) Rules 2014, and based on the recommendations of Audit
Committee, Board of Directors at their meeting held on 3rd May 2023 reappointed
M/s Lavanya & Associates Cost Accountants (Firm Registration No. 101257) as Cost
Auditors of the Company for the financial year 2023-2024. A resolution seeking
ratification of remuneration payable to the Cost Auditors to conduct cost audit for the
financial year 2023- 24 has been included in the notice convening 33rd AGM of
the Company. The necessary consent letter and certificate of eligibility was received from
the cost auditors confirming their eligibility to be reappointed as the Cost Auditors of
the Company.
e) Maintenance of Cost Records
The Company has made and maintained the cost records as specified by
the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.
f) Secretarial Auditors
Pursuant to the provisions of section 204 of the Act, read with the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and based on
the recommendations of the Audit Committee, the Board of Directors at their meeting held
on 3rd May 2023 reappointed M/s D Hanumanta Raju & Co., Practicing Company Secretaries
as Secretarial Auditors for the financial year 202324. The consent letter and certificate
of eligibility was received from M/s D Hanumanta Raju & Co., confirming their
eligibility for the appointment.
The Secretarial Audit Report for the financial year 2022-23 in the
prescribed form MR-3 is enclosed with this Report as Annexure VII.
g) Annual Secretarial Compliance Report
Secretarial Compliance Report for the financial year ended March 31,
2023, on compliance of all applicable SEBI Regulations and circulars/ guidelines issued
thereunder, was obtained from M/s D Hanumanta Raju & Co., Practicing Company
Secretaries and submitted to both the stock exchanges.
21. AUDIT COMMITTEE
The Board has constituted the Audit Committee as per the provisions of
Section 177 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The composition, attendance, powers and role of the Audit
Committee are included in Corporate Governance Report. All the recommendations made by the
Audit Committee were accepted by the Board of Directors.
22. COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD MEETINGS AND ANNUAL
GENERAL MEETINGS
During the year under review, the Company has complied with the
Secretarial Standards issued by the Institute of Company Secretaries of India as
applicable to Board Meetings and Annual General Meetings.
23. POSTAL BALLOT
During the year under review, no postal ballot resolutions were passed.
24. DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to section 134(5) of the Act, based on the representations
received from the Operating Management, the Board of Directors, to the best of their
knowledge and belief state that:
i. In the preparation of the annual accounts, the applicable accounting
standards have been followed, along with proper explanation relating to material
departures, if any;
ii. They had selected such accounting policies as mentioned in the
notes to the financial statements 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 as at 31st March 2023 and of the profit and loss of
the Company for the year ended on that date;
iii. They had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act for
safeguarding the assets of the company and for preventing and detecting fraud and other
irregularities;
iv. They had prepared the annual accounts on a going concern basis;
v. They had laid down proper internal financial controls to be followed
by the Company and that such internal financial controls were adequate and were operating
effectively; and
vi. They had devised proper systems to ensure compliance with the
provisions of all applicable laws
and that such systems were adequate and operating effectively.
25. DIRECTORS AND KEY MANAGERIAL PERSONNEL
The Board of Directors of the Company has an optimum combination of
Executive, Non-Executive and Independent Directors.
a) Directors retiring by rotation
As per the provisions of the Companies Act and the Articles of
Association of the Company, Mr. Harriman Vungal (DIN: 00242621), Executive Director -
Operations, retires by rotation and being eligible, offered himself for re-appointment.
The proposal for the re-appointment of Mr. Harriman Vungal is being placed at the AGM
along with the necessary details. Subject to his reappointment as Director, Mr. Harriman
will continue to be the Executive Director - Operations for the balance of his tenure.
b) Changes in Directorship/Committee Position
During the year under review, Ms. Y Prameela Rani, Independent Director
of the Company was reappointed for a second/final term for five consecutive years with
effect from 1st December 2022 to 30th November 2027. The said
reappointment was passed at 32nd Annual General Meeting held on 25th June
2022.
Apart from the above, there was no change in the designation/ terms of
Directorship.
Currently, the Board has four committees: The Audit Committee,
Nomination and Remuneration Committee, Stakeholders' Relationship Committee and Corporate
Social Responsibility Committee. The composition of the committees is given below.
Audit Committee |
Position |
Mr. G Purnachandra Rao |
Chairman |
Ms. Y Prameela Rani |
Member |
Mr. Sanjay Dave |
Member |
Nomination and Remuneration Committee |
Position |
Mr. Sanjay Dave |
Chairman |
Mr. G Purnachandra Rao |
Member |
Ms. Y Prameela Rani |
Member |
Stakeholders Relationship Committee |
Position |
Ms. Y Prameela Rani |
Chairperson |
Mr. G Purnachandra Rao |
Member |
Mr. Sanjay Dave |
Member |
Corporate Social Responsibility Committee |
Position |
Ms. Harita Vasireddi |
Chairperson |
Mr. Harriman Vungal |
Member |
Mr. Sanjay Dave |
Member |
c) Disclosure by Directors
None of the Directors of your Company are disqualified as per the
provisions of Section 164(2) of the Companies Act, 2013. Your Directors have made
necessary disclosures to this effect as required under the Companies Act, 2013. Further,
the Company has obtained Certificate pursuant to Regulation 34(3) and Schedule of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 from M/s D Hanumanta
Raju & Co., Practicing Company Secretaries, Secretarial Auditors and attached the same
to this report.
d) Appointment of Dr. S P Vasireddi (DIN: 00242288) as Executive
Chairman of the Company.
Dr. S P Vasireddi's appointment as Non-Executive NonIndependent
Director & Chairman of the Company was last approved at the Annual General Meeting
held on 25th August 2018 and he has been continuing in the same position till
date.
Dr. S P Vasireddi has a rich experience of over 40 years in the
contract research and testing industry. He is the founder of VIMTA and under his
leadership and guidance the Company has not only prospered with good growth but also
earned a significantly remarkable reputation in the industry. Dr. Vasireddi is known as
the pioneer and visionary who built the contract research and testing industry in India.
The world class laboratory infrastructure and cutting- edge technologies he introduced
over the years put India on the global map as an outsourcing destination for quality,
testing and contract research services.
Dr. Vasireddi's vision, strategic insights, deep scientific and
technical knowledge, and quick study abilities have enabled him to play a pivotal role in
building numerous firsts and competitive edges for Vimta viz.,
1st GOI gazette notified EPA laboratory in the
country.
1st CRO in India's who's BA/BE study got approved by
USFDA.
1st ultra trace laboratory in country for testing
dioxins and furans.
1st Lab in Asia to be pre-qualified by WHO for GPQCL.
1st Lab in India to offer Leachables and Extractables
studies.
1st Lab in India to introduce Customer Specific
Contract Labs.
1st Lab in India to be approved by European
Commission for PCP trace analysis in Food exports to Europe.
1st Lab in India to set up a truly world class
contract research and testing laboratory facility.
Only Lab in India to have a PPP with UNIDO for Analytical
Laboratory Capacity Building in Developing/Underdeveloped Nations.
1st lab in India to setup a pan India network of
full- service food testing laboratories.
He brings critical expertise in laboratory business management and the
Board is of the opinion that Dr S P Vasireddi's rare expertise and closer guidance to
company's leadership as an Executive Chairman, will be of immense value to the Company at
this juncture of growth and expansion. Dr. Vasireddi is a Ph.D. in Chemistry from Nagpur
University.
Dr. Vasireddi's past and present associations include:
Member of Central Advisory Committee-Food Safety & Standards
Authority of India (FSSAI).
Member of the Governing Board of NABL.
Chairperson- ABL, Risk Management Committee.
Member of National Committee-CII National Committee on Drugs and
Pharmaceuticals.
Member of Research Council-National Physical Laboratories,
India.
Chairman of Calibration Committee-National Physical
Laboratories, India.
Founder of Association of Contract Research Organizations
(ACRO), India.
The Board based on the recommendations of the Nomination Remuneration
Committee, recommends him as Executive Chairman of the Company for a period of 3 years
w.e.f., 01.07.2023 for the approval of the shareholders. Dr. S P Vasireddi has consented
to accept the proposed appointment. Board looks forward to his contributions as the
company expands its scale and reach into new markets significantly.
He will attain the age of 75 years on 1st July 2023, and as
per the provisions of section 196(3)(a) of the Companies Act, 2013, appointing him as
Executive Chairman requires approval of members by way of a special resolution. Further,
as the proposed remuneration to the Executive Director together with the remuneration of
other whole time Directors who are promoters or members of the promoter group, in
aggregate, exceeds 5% of the net profits of the Company, approval of Members is sought by
way of a Special Resolution as required under Regulation
17(6)(e) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
Dr. S P Vasireddi, Non-Executive Chairman holds 3,598,525 equity shares
in the company. Except Dr. S P Vasireddi, Non-Executive Chairman and Mrs. Harita
Vasireddi, Managing Director being daughter of Dr. S P Vasireddi none of the other
Directors/Key Managerial Personnel are in anyway concerned or interested in his
appointment.
e) Changes in the Key Managerial Personnel
Ms. Harita Vasireddi, Managing Director, Mr. Harriman Vungal, Executive
Director - Operations, Mr. Satya Sreenivas Neerukonda, Executive Director, Mr. D.R.
Narahai Naidu, Chief Financial Officer and Ms. Sujani Vasireddi, Company Secretary are Key
Managerial Personnel of the Company within the meaning of Section(s) 2(51), and 203 of the
Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014. There has been no change in the Key Managerial Personnel during
the financial year under review.
f) Declaration by Independent Directors
As per the requirement of section 149(7) of the Act, all the
Independent Directors of the Company have submitted their respective declarations that
they fulfil the criteria of independence under Section 149 of the Act, read with
Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015.
g) During the year under review, no new Independent Director was
appointed.
26. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
Based on the recommendation of Nomination & Remuneration Committee,
the Board of Directors approved and adopted a Policy for selection, appointment and
remuneration of Directors, Key Managerial Personnel and other employees of the Company as
required under Section 178(3) of the Act.
The Nomination and Remuneration Policy and Board Diversity Policy is
set out as Annexure VIII, and the same can be accessed at
https://vimta.com/wp-content/uploads/ Nomination-Remuneration-Policy.pdf and
https://vimta. com/wp-content/uploads/Board-Diversity-Policy.pdf
27. HUMAN RESOURCES
Our success depends on the collective performance, contribution and
expertise of our senior management team and several key personnel throughout our
organization, including scientific, technical, administrative, and other business enabling
functions such as business development. With close to 1400 employee base, the company
leverages the diverse and abundant skills and domain expertise to build a scientifically
strong and quality driven organization. Vimta believes that its Human Resources is the key
to achieve business growth. Thus, to ensure employee satisfaction, the Company offers a
safe, conducive, and productive environment. Endeavours are continuous to attract new
talent and ensure the retention of existing employees. To establish a strong, connect with
employees, several employee engagement initiatives are undertaken. Training and skill
development programs are continuously delivered to promote a learning culture. Special
skill development and training programs are conducted for identified special talent pool.
Keeping pace with technological advancements, more and more HR processes are digitalised
with substantial investments. The employees are sufficiently empowered, and company
believes that such work environment propels the team to achieve higher levels of
performance. The unflinching commitment of its employees is the driving force behind the
Company's profitable growth. Your Company appreciates the spirit and the contributions of
its dedicated employees.
28. PARTICLUARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
All the contracts/ arrangements/ transactions entered by the Company
during the year under review with related parties were in the ordinary course of business
and at arm's length basis. The particulars of such contracts or arrangements with related
parties, pursuant to the provisions of section 134(3)(h) and Rule 8 of the Companies
(Accounts) Rules, 2014, in the prescribed form AOC-2 is enclosed as Annexure IX to this
report.
The policy on materiality of related party transactions and on dealing
with the related party transactions is uploaded on the website of the Company, which can
be accessed at https://vimta.com/wp-content/uploads/Related-Party- Transaction-Policy.pdf
All the related party transactions are placed before the Audit
Committee and also before the Board for their respective approval. Omnibus approval of the
Audit Committee is obtained as per SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 for the transactions which can be foreseen and are repetitive in nature.
The Company has developed a Policy on Related Party Transactions including the latest
amendments thereof for the purpose of identification and monitoring of such transactions.
29. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo as required under Section 134(3)(m) of the Companies
Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is enclosed as
Annexure X to this report.
30. RISK MANAGEMENT POLICY
Your Company continues to have an effective Risk Management policy in
place. The management and the Board oversees the risk management policy including
identification, impact assessment and mitigation plans. The details of risks perceived by
the Management are reported in the Management Discussion and Analysis Report.
31. ANNUAL EVALUATION OF BOARD PERFORMANCE AND PERFORMANCE OF ITS
COMMITTEES AND OF DIRECTORS
Pursuant to the provisions of the Companies Act, 2013 and Regulation 25
of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has
carried out the annual performance evaluation of its own, that of its committees and
individual directors.
A structured questionnaire was prepared after taking into consideration
inputs received from the Directors, covering various aspects of the Board's functioning
such as adequacy of the composition of the Board and its Committees, Board culture,
execution and performance of specific duties, obligations and governance aspects.
The exercise carried out to evaluate the performance of individual
Directors included parameters such as level of engagement and contribution, independence
of judgement, safeguarding the interest of the Company and its minority shareholders etc.
The performance evaluation of the Independent Directors was carried out by the entire
Board. The performance evaluation of the Chairman and the Non-Independent Directors was
carried out by the Independent Directors who also reviewed the performance of the
Secretarial Department. The Directors expressed their satisfaction with the evaluation
process.
32. CODE OF CONDUCT FOR BOARD OF DIRECTORS AND SENIOR MANAGEMENT
PERSONNEL
The Company has a comprehensive Code of Conduct (the Code) in place
pursuant to Regulation 17(5) of Listing Regulations, applicable to all the senior
management personnel and Directors including Independent Directors to such extent as may
be applicable to them depending on their roles and responsibilities. The Code covers
duties of Independent Directors and also gives guidance needed for ethical conduct of
business and compliance of law. Further, a policy on obligation of Directors and senior
management personnel for disclosure of committee positions and commercial transitions
pursuant to Regulation 26(2) (5) and (6) of Listing Regulation is in place. All the
Directors and senior management confirmed the compliance to the code of conduct.
Declaration on compliance with Code of Conduct is annexed as Annexure XI to the Corporate
Governance Report.
33. PREVENTION OF INSIDER TRADING
Pursuant to SEBI (Prohibition of Insider Trading) (Amendment)
Regulations, 2018, the Company has adopted the Code of Internal Procedures and Conduct for
Regulating, monitoring and reporting of trading by designated persons and their immediate
relatives along with Code of Fair Disclosures.
34. POLICY ON PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL
HARASSMENT OF WOMEN AT WORKPLACE
The Company has complied with provisions relating to the constitution
of Internal Complaints Committee under the Sexual Harassment of women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. The company formed a committee to
attend to to the complaints under the above Act. During the financial year ended 31st
March 2023, the Company has not received any complaint from any woman employee pertaining
to any sexual harassment.
35. VIGIL MECHANISM/ WHISTLE BLOWER POLICY
The Company has a Whistle Blower Policy in place, framed to deal with
instances of fraud and mismanagement, if any in the Company. The Policy provides for
adequate safeguards against victimization of employees who avail the mechanism and also
provides for direct access to the Chairman of the Audit Committee. The details of the
Policy are explained in the Corporate Governance Report and also posted on the website of
the Company, which can be accessed at https://vimta.com/wp-content/uploads/
Whistle-Blower-Policy.pdf
36. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
A robust internal control mechanism is a prerequisite to ensure that an
organisation functions ethically, complies with all legal and regulatory requirements and
observes the generally accepted principles of good governance.
Your Company has adequate internal control systems for business
processes, efficiency in its operations, and compliance with all the applicable laws and
regulations. Regular internal checks and audits ensure that the responsibilities are being
effectively executed. In-depth review of internal controls, accounting procedures and
policies of Company is conducted. Your Company has adopted adequate internal controls and
audit system commensurate with its size and nature of business. Internal financial control
with reference to financial statement is adhered.
Internal audit is carried on a quarterly basis. They report directly to
the Audit Committee of the Board, which ensures process independence. The Audit Committee
reviews the adequacy and efficacy of the internal controls, as well as the effectiveness
of the risk management process across the Company. After reviewing the findings and
suggestions, the Audit Committee directs the respective departments through Board to
implement the same.
37. CASH FLOW STATEMENT
In due compliance of the listing agreement and in accordance with the
requirements prescribed by SEBI, the cash flow statement is prepared and is appended to
this Annual Report.
38. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE
FINANCIAL STATEMENTS
The company has adequate internal financial controls with reference to
the financial statements in place and the same were operating effectively.
Based on the framework of internal financial controls and compliance
systems established and maintained by the Company, the work performed by the Internal,
Statutory and Secretarial Auditors and the reviews performed by the Management and the
relevant Board Committees, including the Audit Committee, the Board believes that the
Company's internal financial controls with reference to the financial statements were
adequate and effective during the year ended 31st March 2023.
39. During the year, the company has not made any applications under
the Insolvency and Bankruptcy Code, 2016, nor any proceeding is pending under the said
code.
40. During the year under review, the company has not approached its
Bankers/Financial Institutions for one time settlement in respect of its borrowings.
Accordingly, no valuation was done during the year under review.
41. Material changes and commitments if any, affecting the financial
position of the company which have occurred between the end of the financial year of the
company to which the financial statements relate and the date of the report
No material changes have occurred subsequent to the end of the
financial year of the Company to which the financial statements relate and till the date
of the report, that have an impact on the financial position of the Company.
42. PARTICULARS OF SIGNIFICANT/MATERIAL ORDERS PASSED, IF ANY
During the year under review, there were no significant and material
orders passed by any Regulator or Court or Tribunals which would impact the going concern
status of the Company's operations in future.
43. GREEN INITIATIVE IN CORPORATE GOVERNANCE
The Ministry of Corporate Affairs (MCA) has taken a green initiative in
Corporate Governance by allowing paperless compliances by the Companies and permitted the
service of Annual Reports and documents to the shareholders through electronic mode
subject to certain conditions. Members who have not yet registered their email addresses
are requested to register the same with their Depositories in case the shares are held by
them in electronic form and with Company's Registrars and Transfer Agents, CIL Securities
Limited, in case the shares are held by them in physical form.
44. ACKNOWLEDGEMENTS
The Directors record their deep appreciation for the contributions made
by the employees at all levels, for their sincerity, hard work, solidarity, and dedicated
support to the Company during the year. The Directors also wish to place on record their
gratitude to shareholders, customers, vendors, consultants, bankers, and all other
stakeholders for their continued support to the Company.
Date: 03rd May 2023 |
For and on behalf of the Board, Dr. Sivalinga Prasad
Vasireddi |
Place: Hyderabad |
Non-Executive Chairman |
|
(DIN: 00242288) |
|