MANAGEMENT DISCUSSION & ANALYSIS REPORT: (A) INDUSTRY STRUCTURE DEVELOPMENT AND OUTLOOK : The Company operates in the single Business Segment of Manufacturing of Pharmaceutical formulations in the forms of Tablets, Capsules, Oral liquid and Injectable. Industry is expected to achieve average annual growth. (B) OPPORTUNITIES,THREATS, RISKS & CONCERNS : Very high competition from large and small and new comers in the Pharma field it is very difficult to stand in stable position. As Government introduced new DPCO and control the Prices of more than 450 products, many products our Company are unders. New DPCO so may be affect the working of the Company. The management has added some products in the products mix, Company has obtained WHOcGMP Certificate in General Section and started Registration of products for export in the country Myanmar, Nigeria and Philippines, etc hence management have confidence that in near future Company may achive export revenues in addition to domestic revenues. (C) INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY : The Company has a good system of internal controls in all spheres of its activity. The internal control system is supplemented by effective internal audit being carried out by an external firm of Chartered Accountants. The Audit committee regularly reviews the findings of the internal auditors and effective steps to implement the suggestion / observation of the Auditors are taken and monitored regularly. In the opinion of the Board, an effective internal control system adequate to the size of the Company exists. (D) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECTS TO OPERATIONAL PERFORMANCE : The management is very much hopeful for bright future of the company as the products of the company enjoys very good reputation in the market as well as with the doctors. The sales team of the company always updates the management and accordingly the management change the products mix as per trend of the market. Here, management would like to inform that due to heavy competition from the large phrama companies as well as new companies entry in the market, the sales and margin has been decreased substainally. (E) CAUTIONARY STATEMENT : Statements in the Management Discussion and analysis describing the Company's position and expectation may be "Forward Looking Statements" within the meaning of applicable securities laws & regulations. Actual results could differ materially from those exbrssed or implied Important factors that could make, among other, economic conditions affecting demand / supply and price conditions in the market in which the Company operates, in the Government regulations, Tax Laws and other statutes and incidental factors. On Behalf of Board of Directors of Zenith Healthcare Limited (Mahendra Raycha) Chairman & Managing Director PLACE:AHMEDABAD DATE : 29.05.2015 |