Management Discussion & Analysis:

Industry Structure and Development

The Pharmaceutical industry in India is the world's third-largest in terms of volume and stands 14th in terms of value. Pharmaceuticals sales are growing at a fast rate in India, China, Malaysia, South Korea and Indonesia due to the rising disposable income, several health insurance schemes (that ensures the sales of branded drugs), and intense competition am

Long top pharmaceutical companies in the region (that has boosted the availability of low cost drugs). China's pharmaceutical market will continue to grow at more than 20% annually, and will contribute 21% of overall global growth through 2014. India - 3rd Largest Producer of Pharmaceuticals across the World- is already a USS 82 Billion pharmaceutical market. The Indian pharmaceutical industry is further expected to grow by 10% in the year 2014.

S.W.O.T (Strenghts Weakness Opportunities Threats)

ANALYSIS OF PHARMACEUTICAL

Financial and Operating performances:

After the sale of Poanta Sahib plant this is the first year of performance.Considering the non compete clause and restriction on countries wherein our company can exort ,with the reorientation and concentration of business in West African countries management feels we have performed decently In years to come the performance will speak the growth story.

Internal Control System and Adequacy:

The company has adequate internal control system.

Opportunities and Threats:

(i) Opportunities:

1. Management perceives increasing export opportunities to West African Fracophone countries.

2. Globalize the newly launched products to expand the customer base

3. Improving R & D section

(ii) Threats:

1. Inflation and high cost of raw materials due to debrciating currency may lead to negative output..

2. Major competition from big players in the markets.

Human Resources:

The year has been quite significant in our efforts in human resource development where in several initiatives were rolled out. The main focus area in Human Resource was towards recruitment of highly skilled and qualified professionals for the respective functions. The Human Resource development is aimed at overall growth and development of employees which in turn helps in the overall growth and development of the company.

Risk Management:

1. Company is engaged in pharmaceutical business wherein there is a threat of product liability and third party suits in case of product failure. Till date our products have been well received by patients in Indai and abroad due to our stringent quality standards and regulatory compliance.

2. Due to uncertain political conditions in West African countries the is an inherent risk of delayed receipts and realization of debtors.

Future Outlook:

The Company aims at "Making India proud through innovative quality medicines". Considering this aim the company's future vision is to add more innovative products to our product list facilitating domestic as well as international growth of the business of the company and which assists in making human and animal life healthier.

Continuous expansion of Exports remains one of the major vision of the company. Striving to become the No. 1 exporter to French West African countries, the Senior management is on the task of penetrating and expanding the business in all Francophone countries and West African countries as the same holds great potential et for the business.

In line with the steps taken to focus and expand exports, Company's export business is expected to pick up substantially.

Cautionary Statement:

Statement in Management discussion and analysis describing the Company's objective and expectations or brdictions may be forward looking within the meaning of applicable laws and regulations. Actual result may differ materially from those exbrssed in the statement.