MANAGEMENT DISCUSSION AND ANALYSIS REPORT Industrial Structure and development BIBCOL was established for supply of Oral Polio Vaccine for meeting national Immunization Programme of Government of India. Commercial production was started in the year 1996 and since then contributed significantly to the National Immunizations Programme. In the year 2006, the facility was up graded to meet the WHO cGMP & revised schedule M of Drugs & Cosmetics Act. In addition to OPV (tOPV & bOPV) in vaccine segment, BIBCOL has been manufacturing & marketing dispersible Zinc Tablet and Diarrhea Treatment Kit in Pharmaceutical segment. To add in product line, company is aiming to get the licence for manufacturing of Ready to Use Therpheutic Food and to get order for same during the year. Segment-wise or product-wise performance Company has main revenue generation in vaccine (OPV) segment and has net sale of Rs. 14,622.07 lakhs during the year. By this the company is about to wipe out its accumulated losses and will able to execute new product project in coming years. Outlook-opportunities, threats, risk and concerns Opportunities: Gaining importance of Infant health among public, provide an opportunity for new health care products. BIBCOL is targeting the segment of malnourished children and has planned for development of products. Threats: Growth of private manufacturers, non availability of bulk in India, frequent change in foreign exchange rates, reluctance of the Ministry of Health & Family Welfare to award supply order to a PSU on nomination that was established to support government polio eradication programme, abolishment of price brference to PSUs are perceived to be threats. Risks: End of product cycle of OPV and single buyer. Concerns: Perpetual import of bulk vaccine of OPV, depending on single product & low market for zinc as relatively new product in diarrhea management. Internal control systems and their adequacy The Company has established systems providing adequate internal controls, commensurate with its size and nature of the business. Such systems have been appropriately documented. Financial performance with respect to operation performance Effective cost controlling process had been adopted to reduce Sundry Expenses as could be apbrciated from the Profit & Loss Account. Human Resources The Company regards its human resources amongst its most valuable assets. It proactively reviews and evolves policies and process to attract and retain its substantial pool of Scientific, technical and managerial resources and work force through a work environment that encourages initiative, provides challenges and opportunities. However, all employees need to be updated for recent developments and quality standards through training to improve their competence. Regular training programmes were introduced for the employees. M/s Bharat Immunologicals and Biologicals Corporation Limited have sought help of Department of Biotechnology (DBT), Government of India to strengthen Human Resource Development |