Titan Biotech Ltd

Industry Structure & Development

Your company is in the Biotech Industry and it provides biological peptones, extractand dehydrated culture media as raw material to the health care and other industries. Allthese products are basically conducive to growth of micro organisms and their primary useis in the development and growth of micro organisms in clinical diagnosis, production ofvaccines, antibiotics etc and also for checking the bacterial contamination in foods andwater samples, department of microbiological botany in medical colleges and universitiesand tissue culture laboratories. Biotech industry is growing at a rapid pace. The growthprospects of your company are very bright. The Company also participate in manyexhibitions for business promotion.

Opportunity and Threats

The technology for production of biological products has been developed at small andcommercial scale. The data in respect of demand and supply position of the proposedproduct mix is based on the primary market survey done. Any variation in the estimates mayhave an impact on the profitability projections. The numbers of users of our products areincreasing and company's reliance on its own manufacturing capabilities will pay in thelong run.

Segment wise or Product wise performance

The Company has only one segment i.e chemicals.

Outlook

The Biotech industry is expected to grow steadily over the next few years as the focusof the government is also on health care and well being of the people. The people are alsobecoming more health conscious. The people are becoming more and more aware of new healthproducts in the market and they are taking maximum advantage from the same. We expect thatthe performance of the Company will improve over the next few years in terms of the saleand profitability. The growth in the Biotech industry will add further impetus to thegrowth of our industry. Your company has developed dehydrated culture media, Media Basisand special type of peptones and hydrolysates for vaccines production and other users.

Risk and Concern

The major risk is frequent increase in price of few raw materials which can increasethe cost of product and can make few products unprofitable unless the increase is passedon to the user which may at times be difficult due to stiff competition. Further, delay ingrant of approvals can result in delay in launching of key products in the market. Inaddition significant competition in key products could also affect market share andprofitability of the Company.

Internal control System and their adequacy

Titan Biotech Limited has well established internal control systems for operations ofthe company. All the department of the company including the accounts & FinanceDepartment has experienced and trained staff capable of implementing and monitoringinternal control systems. The internal control system of the company is adequate tosafeguard the company's assets and to ensure that the transactions are properly recorded.Further, the internal control system ensures that proper record are being kept and allstatutory and other laws, rules and regulations are being complied with.

Financial performance vis-a-vis operational performance

The performance of the company from operation was better as compared to previous yearturnover increasing from 1607 lacs to 1868 lacs. The profitability of the company alsoimproves with net profit increasing from 83 lacs to 102 lacs.

Material Development in Human Resources

There has not been any major development on the human resources front. The industrialrelation continues to be cordial during the year 2010-2011.

Acknowledgement

Your Director would like to express their grateful appreciation for the assistance andcontinued co-operation extended by the Bankers, Government Agencies, Shareholders,customers, and wish to place on record their deep sense of commitment shown by theemployees at all levels and acknowledge their contribution for the smooth operation of thecompany during the year under report.

Date: 03.09.2011

Place: Delhi