MANAGEMENT DISCUSSION AND ANALYSIS
The financial statements of the company have been prepared in compliance with the
requirements of the Companies Act, 1956 and Generally Accepted Accounting Principles
(GAAP) in India. There are no material departures from prescribed accounting standards in
the adoption of accounting standards. The management of the company accepts responsibility
for the integrity and objectivity of these financial statements, as well as for various
estimates and judgments used therein. The estimates and judgments relating to the
financial statements have been made on a prudent and reasonable basis, in order that the
financial statements reflect in a true and fair manner, the form and substance of
transactions and reasonably present the company's state of affairs and profits for the
INDUSTRY STRUCTURE AND DEVELOPMENTS:
OPPORTUNITIES.THREATS.RISKS AND CONCERNS: SWOT ANALYSIS OF THE COMPANY:
The freeze - drying technology is the world best technology & in India there are
very few plants based on this technology. The company has ultramodern plant having
capacity to satisfy the needs of any herbal, pharmaceutical or 100% herbal food products.
The pharmaceutical companies &ISO certified companies are approaching & testing
the company's capabilities to provide high quality process/products. The satisfied
customers are repeating orders due to Company's specialisation in the field & name and
fame earned through quality product/process/services rendered to customers.
The high cost of the products attracts only quality conscious customers hence its
difficult to complete with low quality products or process.
The awareness of herbal products in India and abroad offers growth potential and better
The international market is very cost conscious & hence even slight variation in
costing may turn into loss of business.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUANCY:
The Company has an effective system in place towards achieving efficiency in
operations, optimum and effective utilization of resources monitoring thereof and
compliance with applicable laws. This is continually reviewed for effectiveness and is
augmented by written policies and guidelines, the careful selection of qualified
RISKS & MANAGEMENT PERCEPTION:
Risk is inherent aspect of business. Risk taking is essential for growth. The negative
fallouts of such an ingredient, however, need to be managed through effective risk
mitigation-both at the strategic as well as at the transaction level.
The operations of the Company are subject to general business risks and competition in
INDUSTRIAL RELATIONS & HUMAN RESOURCE MANAGEMENT:
The Company has always recognized the manpower as its asset and that the people had
been the driving force for the growth and the expansion of the company. The company has
always laid special emphasis on the training and development of its people during the
year. Industrial relations during the year were cordial and peaceful.
The Company has taken a number of new initiatives, to improve efficiencies and Welfare
of it's employees.
As India progressively moves to a free market environment, international producers will
have increased access to the Indian market either through the establishment of
manufacturing bases in India or from overseas. Indian manufacturers therefore would
urgently need to re-engineer themselves, wherever possible, to complete in this
environment in terms of costs, quality and product innovation. The Company continued its
emphasis as technology up - graduation and efficiency in operation. The Company's
initiatives for the past few years to modernize its facilities, focus on high-end
products, substantially increase it's efficiency and to face the global challenges ahead,
both within India and overseas markets.
Statements in the Management Discussion and Analysis describing the Company's
objectives, projections, estimates and expectations may be "forward'looking
statements" within the applicable laws and regulations. Actual results may differ
materially from those expressed or implied. Important factors that could make a difference
to the Company's operations include economic conditions affecting demand/supply and price
conditions in the domestic markets in which the Company operates, changes in the
Government regulations, tax laws and other statutes and other incidental factors.