MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Industry is showing some improvement & your Directors are expecting better Industrial Development in the coming years.

SEGMENTWISE PERFORMANCE:

The Company is Engage in Manufacture of Pharmaceuticals, Medicinal products and this may be considered as the only segment. Therefore the requirement of segment wise reporting is not applicable.

OPP ORTUNITIES / OUTLOOK:

The company is taking maximum s.efforts to capitalize on business opportunities & further expect a better outlook in the coming year

THREATS:

The major threats for the company are competition from the Govt. Policies.

RISKS AND CONCERNS:

Your company is taking adequate measures to safeguard against Risks & Concerns.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Your Company has been maintaining an adequate internal control system commensurate with the size & nature of its business.

HUMAN RESOURCES POLICIES:

Your company considers its human resources as its most valuable assets, among all other assets of the Company. It has been the policy of the company to actuate the talent by providing opportunities to develop themselves within the organization. The company continued to have maintained very cordial & harmonious relations with its employees.

CAUTIONARY STATEMENT:

Due to unfavorable market conditions your company is facing profitability problems however, your management is making optimum efforts to minimize the overheads & cost reduction.

FOR PARNAX LAB LIMITED

Sd/- Prakash Mahasukhlal Shah

Director cum CEO

Date: 14th August 2015

Place: Mumbai.