MANAGEMENT DISCUSSION AND ANALYSIS REPORT The Management Discussion and Analysis Report are brpared in adherence to the spirit enunciated in the Code of Corporate Governance, approved by the Securities Exchange Board of India and in compliance with the provisions of the Listing Agreement. Industry Structure and Development The financial year 2014-15 marked resurgence in growth post the Financial crisis. Higher investment spending, especially in the emerging markets, is pushing growth in the global economy. As a result, several countries are gradually returning to normal macroeconomic policies. However, the economic health in parts of Europe and the fiscal trends in some other countries is cause for concern and continue to impact the world economy. The forecast for the Indian economy is positive with growth expected to touch 8.5 per cent in the current fiscal year. Yet, constant inflation in the country is taking its toll and rising global commodity prices is only compounding the problem. The pharmaceutical industry in India retains its position of strength as the pharmacy capital of the world. It supplies an estimated one-third of all global pharmaceutical produce in terms of volume. In the financial year 2013-14, the Indian pharmaceutical industry grew more than 14 per cent, according to ORG IMS, though this growth was mainly driven by the top 50 companies. A growing trend was that more Indian pharmaceutical companies focused on semi-urban and rural markets for incremental growth opportunities. During the year, the industry also witnessed Indian Pharma companies selling out to the multinationals. Outlook The current scenario defines that the market conditions will be favorable for the company and it is expected that the company will thrive in future only if it adapt the changes arising in the environment Taking into the account all the above it is expected that while the growth in profitability would be a challenge the concrete plans and strategies set up by the management will help the company to overcome the challenges. Dematerlalisations Dematerialization of Company's Shares facility is available with NSDL through our Share Transfer Agent M/s Ankit ConsultancyPvt. Limited. Internal Control The Company has put into place an Internal Control system to monitor the movement of parameters considered important for the business. The Company has an Internal Audit Department reporting directly to the management. This department is responsible for monitoring of the' above parameters with suitable internal control procedures. As the company did not carry out any operations in this financial year, the company was not required to put into place any formal internal control systems. Risk and Concern Emerging markets will be the growth engines for pharmacy but as opportunities will be high risk and threats will move side by side. The challenge for growth goes beyond cost and it includes flexibility, innovation and distribution. All the pharmacos use the same strategy to capture the emerging markets but difference lies in the quality of execution. The company to stay in market has to lower the cost of production and have to adapt the strategies as per the changing environment and policies to get strategic advantage. Human Resources Your Company believes in philosophy of communicating with the entire team in a two way process. Company also believes in the principal of proper delegation of authority which results in uplift of Commitment level, responsibility and accountability of entire team right from Managing Director to Lowest level of administration. Every effort is made to implement the suggestions received and to encourage staff for more suggestion. During the year 2014-15, the company has maintained cordial and harmonious relation with the employees. Cautionary Statement Actual performance may differ from projections made as the Company's operations are subject to various economic conditions, government regulations and other incidental factors. By order of the Board. FOR RAAJ MEDISAFE INDIA LIMITED Sd/- AJAY KASAT MANAGING DIRECTOR Sd/- ARPIT BANGUR CHAIRMAN DIN:05269584 DIN: 02600716 Place: Pithampur Date : August 12, 2015 |