REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS

Industry structure and developments-

The Company is engaged in manufacturing and marketing of different types of Pacemakers. There has been growing demand of the products manufactured by your Company. Opportunities and Threats-

With the growing awareness about the healthcare in the country, there are vast opportunities for the products of the Company. Global economic trends, global competitors, uncertainties about the development of national healthcare system rebrsents threats for the Company. Opportunities-

Your Company relies on a combination of proprietary technology and inhouse know-how to design and sell unique medical devices in global markets. The technical leadership and unique features contained in your Company's products allow it to significantly differentiate the products from competitors. Threats- Complications from having surgery to implant your pacemaker are uncommon, but could include:

¦Infection where the pacemaker was implanted

¦Allergic reaction to the dye or anaesthesia used during your procedure

¦Swelling, bruising or bleeding at the generator site, especially if you are taking blood thinners

¦Damage to your blood vessels or nerves near the pacemaker

¦Collapsed lung

¦Puncture of your heart muscle, which can lead to bleeding into the lining (pericardium) of your heart and may require emergency medical care

¦Life-threatening complications of pacemaker implantation are rare. Segment - wise or product - wise performance-

The Company is engaged in pacemakers manufacturing only and there is no separate repeatable segments. Outlook-

The company is embarking on diversification of cochlear implants, first time to be produced in India and Fourth company to produce in world. The animal trials had been successful and now human trials are to be conducted. The company also has developed a new high tech Pacemaker which is MRI compatible. The clinical trials are under process. Launch if all is well should be by January 2016.

Cardiac Pacemaker Market Outlook to 2019 - Rise in Cardiac Disorders and Growing Awareness among People to Drive the Demand' provides a combrhensive analysis of cardiac pacemaker market in Asia. The report covers various aspects such as market size of cardiac pacemaker market, segmentation on the basis of therapeutic specification, implantability, number of chambers, and volume of exports and imports for cardiac pacemakers. The report is useful for pharmaceuticals companies, retail chains, consultants, healthcare professionals and new players venturing in the market. The market is dominated by few global players including Medtronic, Biotronik, Boston scientific and others. Risks and concerns-

Risks associated with pacemaker system implant include, but are not limited to, infection at the surgical site and/or sensitivity to the device material, failure to deliver therapy when it is needed, or receiving extra therapy when it is not needed.

After receiving an implantable pacemaker system, you will have limitations with respect to magnetic and electromagnetic fields, electric or gas-powered appliances, and tools with which you are allowed to be in contact.

Internal control systems and their adequacy-

The Company has proper internal control system which provides adequate safeguards and effective monitoring of the transactions.

Discussion on financial performance with respect to operational performance-

Share Capital and reserve and surplus - The total paid up share capital during the year was Rs. 3,59,94,000 consisting of 3599400 shares of Rs. 10 each. During the year the company has Suffered a loss of Rs. 3.65 Lacs as compared to Profit of Rs. 21.93 Lacs brvious year.

Secured Loans - As on 31st March 2015 the Company has a secured loan of Rs 224.63 Lacs out of which Rs.10.23 Lacs are current liabilities.

Fixed assets -The total gross block of Land, Building, Plant and Machinery and other fixed assets was Rs. 798.83 Lacs

Net Current assets - Net Current assets comprised primarily of Accrued Interest on Fixed Deposit with Banks. The net current assets amounting to Rs. 527.17

Turnover - The total turnover registered for the fiscal year 2014-15 was Rs. 626.91 as compared to Rs. 684.22 of fiscal year 2013-14.