MANAGEMENT DISCUSSION AND ANALYSIS REPORT Industry Structure & Development The Biotech Industry in India has been successfully able to position itself to capitalize on attracting talent with advanced skills. The biotechnology sector in India is highly innovative and is on a high growth trajectory. Indian biotech industry holds nearly 2% share of the Global Biotech Industry as per the India Brand Equity Fund. The Indian Biotechnology Sector is expected to grow from current USD 5-7 Billion to USD 100 Billion by 2025 as per the Association of Biology Led Enterprises(ABLE) as disclosed on the website of IBEF. Your Company has managed to remain stable in terms of sales and profitability despite stiff market competition during 2014-15 from domestic as well as overseas competitors. Opportunity and Threats The Global Biotech Market is open and the opportunity to tap the global market is immense. The Company has maintained its market share during 2014-15 and is regularly encashing on all opportunities. The market competition during 2014-15 from overseas and domestically has been stiff with respect to pricing, quality etc. Your Company has maintained its quality standards and always working towards improvements. New Technology Developments and New Product Developments do take place and updating in terms of technology and quality is the need of the hour. Though Company does not expect any major threats yet it is cautious in all its endeavours. Segment wise or product wise performance The Company has only one segment i.e. biological goods. Outlook The Biotechnology sector is among one of the sectors which have highlighted the profile of the country in the last decade. At the beginning of the decade itself, this industry began to take shape with the sprouting of dozens of start up companies as well as diversification of major pharma players by setting up biotech divisions to focus on this segment. According to Economist intelligence Unit (EIU) pharmaceutical industry is expected to increase by 6.9% outpacing the total healthcare spending rate of 5.2%. Risk and Concern The major risk is frequent increase in price of few raw materials which can increase cost of product and can make few products unprofitable unless the increase is passed on to the user which may at times be difficult due to stiff competition. Further, delay in grant of approvals can result in delay in launching of key products in the market. In addition significant competition in key products could also affect market share and profitability of the Company. Internal Control System and their Adequacy Titan Biotech Limited has well established internal control systems for operations of the Company. All the departments of the company including the accounts & finance department has experienced and trained staff capable of implementing and monitoring internal control systems. The internal control system of the Company is adequate to safeguard the Company's assets and to ensure that the transactions are properly recorded. Further, the internal control system ensures that proper record are being kept and all statutory and other laws, rules and regulations are being complied with. Financial performance vis-a-vis operational performance The performance of the Company from operation was better as compared to brvious year turnover increasing from Rs. 4085 lacs to Rs. 4241 Lacs. The profitability of the Company also improves with net profit increasing from Rs. 223 Lacs to Rs. 245 lacs. Material Development in Human Resources There has not been any major development on the human resources front. The industrial relation continues to be cordial during the year 2014-15. Acknowledgement Your Directors would like to exbrss their grateful apbrciation for the assistance and continued co-operation extended by the Bankers, Government Agencies, Shareholders, customers, and wish to place on record their deep sense of commitment shown by the employees at all levels and acknowledge their contribution for the smooth operation of the Company during the year under report. For Titan Biotech Limited Suresh Chand Singla Managing Director DIN 00027706 Naresh Kumar Singla Managing Director DIN 00027448 Date :27.08.2015 Place: Delhi |