MANAGEMENT DISCUSSION &ANALYSIS REPORT

1. Industry Structure and Development:

India has emerged as emerged as one of the five countries in the world in terms of the number of people undergoing surgical and non surgical proce­dures. India is viewed as one of the most progres­sive countries for cosmetic surgical procedures and this trend is expected to continue in the future. Cos­metic surgery in India has evolved from being con­sidered a risky or impractical procedure that was demanded by overly beauty conscious women to a highly specialized and advanced niche of plastic surgery that helps people attain happiness with fewer risks and greater affordability.

This change in the mindset of people is a result of several factors. Firstly, the media has become much more widesbrad, disseminating honest and more detailed information regarding the safety of cosmetic surgical procedures. People are increasingly rec­ognizing the fact that a plastic surgery is at par with adopting a new diet or exercise regimen since all such activities are aimed at the same objective, i.e. to improve one's appearance. Nevertheless, plastic cosmetic surgery offers an incomparable advantage to any other approach, i.e. the results are immedi­ately visible and it can be customized with great br­cision.

According to industry experts, the cosmetic surgery market has been growing well in India as a result of increased awareness due to the easy availability of information and the rising exposure consumers have received through the internet as well as other forms of media. In India, the media has played a crucial role in changing the dressing sense as well as the outlook of consumers to matters such as cosmetic surgery. A procedure that was once looked at with suspicion has currently turned into a massive indus­try in itself.

2. Opportunities & Threats:

Cosmetic surgeries were associated with celebrities and people of the affluent class at a point of time, but today these surgeries are increasingly being taken by the burgeoning middle class whose de­mand for them is based on their needs. At brsent, more and more men and women from the upper middle class group are opting for cosmetic proce­dures to get attractive looks in order to grab lucra­tive jobs, best possible marriage partner and mainly get rid of any deformity that they feel impacts their self-confidence and self-esteem. Two of the major growth drivers of the Indian cosmetic industry among others are its affordability, which comes from the growing disposable income, and the consumer awareness resulting from the active efforts of the

media - especially the print media. Notwithstanding the apparent growth of the cosmetic industry during the past four decades, there are currently more than 700 growing cosmetic companies competing in the market. Additionally, there are also market leaders that dominate the cosmetic industry. Consequently, it creates stiff and intensifying competition especially to those smaller companies as market leaders are putting brssure on these smaller cosmetic compa­nies.

3. Segment wise performance:

Company operates only in one segment viz. Cos­metic & Non Cosmetic Treatments.

4. Outlook:

The changing lifestyle and urbanization, growing awareness of cosmetic surgery procedures, avail­ability of better infrastructure and the rising economic capacity are all driving the cosmetic surgeries mar­ket in India. India is bound to become favorite medi­cal tourism space in the world.

5. Risks & Concerns:

Cosmetic surgery involves having a surgical proce­dure carried out by a plastic/cosmetic surgeon to im­prove the 'look' of a particular part of your body. Cos­metic surgery can not only improve physical appear­ance but it can also have emotional and psychologi­cal effects.

All forms of surgery are risky and cosmetic surgery is no exception. The first is the risk of the surgical procedure itself and the second is that of anesthe­sia.

The risks of plastic surgery vary with person to per­son and the procedure of plastic surgery patient and surgeons opt for. Again, the aspects and history re­lated to the patient's health carry immense impor­tance. For example patients suffering from certain diseases like diabetics or heavy smokers are prone to the dangers of plastic surgery in aftermath situa­tion.

Possible complications for any surgical procedure include:

Infection at the incision site, which may worsen scarring and require additional surgery

Fluid buildup under the skin

Mild bleeding, which may require another surgi­cal procedure, or bleeding significant enough to require a transfusion

Obvious scarring or skin breakdown, which oc­curs when healing skin separates from healthy skin and must be removed surgically

Numbness and tingling from nerve damage, which may be permanent

Altering human physical appearance is as old as re­corded history. Evolutionary biologists have linked our desire for altering the body to innate biological drives for partner selection and reproduction. We currently stand at a unique point in the history of such practices. Our unbrcedented ability to alter human appearance raises new questions about the nature of non-therapeutic, cos­metic surgery, and the justification for altering the body for purposes other than to cure diseases. Science and technology offer us genetic engineering and gene therapy, prosthetic limbs and brain computer interfaces that change what we mean by human enhancement.

People have often questioned the justification for under­going surgery to alter appearance rather than to cure infirmity. Many studies have failed to demonstrate the safety and long-term efficacy of certain cosmetic sur­gery procedures. There are additional risks in surgeries of long duration and in multiple surgeries. There is little work in this field on issues such as surgical experimen­tation and innovation; nor has it drawn up accepted guide­lines of practice Such issues are important because im­plicit in the practice of cosmetic surgery is the notion that physical beauty as defined by certain social norms is not only a goal to strive for, but also a goal for which one might undergo a potentially risky procedure. There is also the question of whether cosmetic surgery should resist or cater to a patient's desires.

6. Internal Control System & their Adequacy:

Your Company has adequate internal control pro­cedures to commensurate with the nature and size of its business. Procedures ensure efficient and cost effective use of company's resources. Company has developed proper procedures to safeguard company's valuable assets against losses, to en­sure timely and accurate brparation of accounts and compliance's of various rules and regulations.

7. Financial Performance: Share Capital:

The Paid up Share Capital of the Company as on 31s' March, 2015 stands at Rs. 6, 00, 00,000/- di­vided into 60, 00,000 equity shares of Rs. 10/-each fully paid up.

Reserves and Surplus:

The Reserves and Surplus is Rs. 84,402,333/- as on the end of the Current year.

Total Income:

During the year under consideration, total income is Rs.31, 035,409/-.

8. Employee Relations:

Company has smooth relations with its employees during the year under review.

9. Our Strategy;

Company has 4 operational Branches Bandra, Andheri, Goa (Calungut Beach & Panji). Due to weak economic outlook and inflationary brssures, Com­pany has restricted its branch expansion and is tak­ing all brcautions towards the same. Company is changing its branch expansion policy from shifting from its earlier policy of opening own company oper­ated branches to opening franchisee based branches & following franchisee based expansion model. Fur­ther once the economy starts moving & new expan­sion strategy is properly implemented, Company is highly upbeat about the business prospects of the Company. Considering the demand in the market the Company provides services like cosmetic and plas­tic surgeries, weight loss & hair gain treatment, den­tal surgeries and other dental treatments etc.

By Order of the Board

For Looks Health Services Limited

Sd/- Pritesh Doshi

Director

DIN:05155318

Date 04.09.2015

Place : Mumbai