MANAGEMENT DISCUSSION AND ANALYSIS REPORT 1. INDUSTRY OVERVIEW: Generally the Pharmaceutical Industry is registering better performance inspite of severe competition from multinational companies. There are many opportunities in 3rd world countries for export of various formulations and drugs. The management is confident of improving the operations by focusing on manufacturing of Cosmetics and Oral Contraceptive Pills. 2 RISKS AND CONCERNS: The Company has been initiating various risk management programmes to combat strategic, operational and financial as well as compliance-related risks across various levels of the organization. It includes risk assessment and mitigation at the company level, business / functional unit level, relationship level and project level. The risk management process is continuously improved and adapted to the changing global risk scenario. The agility of the risk management process is monitored and reviewed for appropriateness with the changing risk landscape. The process of continuous evaluation of risks includes taking stock of the risk landscape on an event driven as well as quarterly basis. 3. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has in place adequate systems of internal control systems and procedures commensurate with the size and nature of its business. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with proper authorization and ensuring compliance of corporate policies. The management regularly reviews the internal control system and procedures. 4. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE. 5. OUTLOOK: The Company continues to explore the possibilities of expansion in its activities and will make the necessary investment when attractive opportunities arise. 6. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES The Company believes that the Human Resources are vital resource in giving the Company a competitive edge in the current business. The Company's innovative human resources management strategies supported its business growth in a challenging environment. The Company's HRD policy focuses on creating an environment where performance is rewarded, individuals are respected and associates get opportunities to realize their potential. As in the past, the Company enjoyed cordial relations with the employees at all levels. 7 .CAUTIONARY STATEMENT Certain statements made in the management discussion and analysis report relating to the Company's objectives, projections, outlook, expectations, estimates and others may constitute 'forward looking statements' within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether exbrss or implied. Several factors could make significant difference to the Company's operations. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control. By order of the Board Phaarmasia Limited sd/- Maneesh R. Sapte Managing Director DIN: 00020450 Place: Hyderabad Date: 14th August, 2015 |