MANAGEMENT DISCUSSION AND ANALYSIS REPORT Management discussion and analysis report regarding the Pharma Industry and in particular EOL As you, all, are well aware that pharmaceutical industry is and has been and would be an evergreen industry. However finished dosage pharma is progressing at a faster pace than the bulk drug industry (API Industry) which has low profit margins. However with the new initiatives from the new governments at centre along with the state, the bulk drug (API) industry along with advanced chemical intermediate industry is likely to grow at about 12 - 15 % year on year basis, with the new adversities from the pollution aspects in china. As far as EOL is concerned, Everest will have an annual growth rate of 15% from the brvious year and is expected to improve the profit margins to above 3%. However as you are well aware that EOL plant had been given closure order to stop production since 13th May 2015, The management has been approved by the board of directors to improve the capital investment to the tune of 5 Crores in order to meet the growing stringency of TSPCB. The Management is confident of getting the revocation order before the end of September 2015. You are also hereby informed that there was a fire accident involving Production Block - 2 extension (Pilot Plant) where in fixed assets to the tune of about 2.5Crores and current assets to the tune of 1.6 crores has been damaged on 17th July 2015. You are hereby informed that there is adequate insurance coverage for both fixed assets and current assets. Your management is confident of getting the claim settled by New India Assurance company on or before 31st September 2015. Threats to EOL's progress are mainly, on the issue of safety and pollution treatment, Management is intensifying its efforts to improve the safety aspects both in terms of Man Power and Machines by investing further on training of the people and installing automation wherever possible. HUMAN RESOURCE DEVELOPMENT AND INDUSTRY RELATIONS: Intelligence, self confidence, brsence, the ability to communicate and having a vision are important. Highly intelligent person need not necessarily be having the knack of making good business judgments, know how is what separates leaders who perform who deliver results from those who don't know how improves with appetite to learn. The managers have to contend with changing scenario but the pace and abruptness of change has to be dealt with. The changes detected earlier give more time to generate and test hypotheses, mobilize resources and reposition the business to achieve the money making targets. One must have the contingent plans to deal with unforeseen circumstances. The important things envisaged by our board are: • Removal of the road blocks to growth. • Improved planning for better revenue generation. • Tapping intellectual horse power. • Securing commitment for execution. • Pooling observations. • Adjusting attitudes. • Providing prompt feedback and training. • Anticipate and resolve conflicts. • Solving incompatibility, not incompetence. • Right people in right place at the right time. • Dealing mismatches in a constructive way. • Detecting patterns. • Managing social system. • Setting priorities. • Dealing with external parties. • Transparency. The company understands the significance of the above for the growth and is committed to improve the Human resource Team, which is already in a good shape. We aspire and strive harder for better shape. |