MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT Management's Discussion and Analysis Report on the Business of the Company as applicable and to the extent relevant is given below: Overview & Operations of the Company Venmax Drugs and Pharmaceuticals Limited is in the business of trading of Bulk Drugs, Intermediates and Biotech Products. The Company is having a professionally managed team at every stage of its operations. Strengths - The Management depth and ability to manage client relationships. - Enhanced brsence in the international market. Opportunities & Threats Large number of Pharmaceutical companies losing their drug patents, thereby increasing the scope of outsourcing to countries that offer a low cost manufacturing base. The Pharma sector is expected to witness further consolidation by way of mergers and acquisitions this augurs for growth of the Industry. This would result in better price realization and growth. The Indian Pharma Industry will have to meet the following challenges: i. Multinational Companies are setting up large plants in India. ii. Competition in the global market that offer low manufacturing base. iii. Uncertainties on account of global socio economic environment. Outlook for the Company Your Company is on the verge of completion of the expansion plans undertaken. Your Company has planned its business strategy taking the ground realities into account. The Company has introduced new products which are very competitive and beneficial to the Company. Risks and concerns Any Government policy intervention or any change in the Pharma sector benefits and unforeseen adverse market conditions are issues of concern and may put brssure on the performance of the Company. Internal control system and their adequacy The Company has Internal Control System which is adequate and commensurate with the size of the Company. Cautionary Statement Statement in this "Management Analysis Report" be considered to be forward looking statements within the meaning of applicable securities laws or regulations. Actual result could differ materially from those exbrssed or implied. Important factors that could make a difference to the Company's operations include global and Indian demand supply conditions, increased installed capacity, price bulk drugs and its availability, cyclical demands and pricing in the Company's market, changes in Government regulations, tax regimes, besides other factors such as litigations and labour negotiations. |