Page 68 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

Risk Mitigation

Competition risk The Company largely operates in the regulated markets which have high entry barriers.
Increased competition could Moreover, its products are competitively priced because of its ability to effectively
dent profitability. optimise costs, resulting in the creation of a protective moat.

Innovation risk Over the years, the Company has been prudently investing in a state-of-the-art R&D
The products may lose centre, enabling it to provide a strong and relevant pipeline for scheduled launches.
relevance in the market.

Foreign exchange fluctuation Since around 80% of the revenues are earned in foreign currency and a majority of the
risk debt for pharmaceutical business is in foreign currency, the Company enjoys a natural
Currency volatility could hedge to a large extent.
significantly impact the
profitability of the Company.

Environment risk The Company continuously monitors regulatory changes to ensure compliance with all
The risk of causing harm to applicable regulations. Further, the Company plans to proactively upgrade technology
the environment and not and equipment, continue conducting training programs on environment-related subjects
being in compliance with the and keep providing preliminary education on operations with high environmental
environmental norms. impacts, such as the management of waste materials and the handling of chemical
substances.

Human resources Internal control systems and their Cautionary statement
adequacy
Fermenta believes that its competitive The internal control and risk management This statement made in this section
advantage lies within its people and system is structured and applied in describes the Company’s objectives,
the human capital is the Company’s accordance with the principles and projections, expectation and estimations
biggest asset. The Company’s people criteria established in the corporate which may be ‘forward looking statements’
bring to the stage a multi-sectoral governance code of the organisation. within the meaning of applicable
experience, technological experience and It is an integral part of the general securities laws and regulations. Forward–
domain knowledge. The Company’s HR organisational structure of the Company looking statements are based on certain
culture is rooted in its ability to subvert and involves a range of personnel who act assumptions and expectations of future
age-old norms in a bid to enhance in a coordinated manner while executing events. The Company cannot guarantee
competitiveness. The Company always their respective responsibilities. The that these assumptions and expectations
takes decisions which are in alignment Board of Directors offers its guidance and are accurate or will be realised by the
with the professional and personal goals strategic supervision to the Executive Company. Actual result could differ
of employees, thereby achieving an ideal Directors and management, monitoring materially from those expressed in the
work-life balance and enhancing pride and support committees. The control and statement or implied due to the influence
association. The employee count stood at risk committee and the head of the audit of external factors which are beyond the
524 as on March 31, 2020. department work under the supervision of control of the Company. The Company
the Board-appointed Statutory Auditors. assumes no responsibility to publicly
The system is under constant review by amend, modify or revise any forward-
the Chairman, Managing Director, COO, looking statements on the basis of any
CFO and a few others, which ensures any subsequent developments.
discrepancies are immediately noted and
suitable action can be taken in case of any
lapses.

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