ashco niulab industries ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS

FORWARD LOOKING STATEMENTS

This report contains forward looking statement which may be identified by their use of words like " plans", "expects", "wills", anticipate, believes, intends, projects estimates or other words of similar meaning. All the statements that address expectation or projections about future, including but not limited to statements about companys strategy for growth, product development, market position, expenditures and financial results are forward looking statements. The forward looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The companys actual results , performance or achievements could thus differ materially from those projected in any such forward looking statements on the basis of any subsequent developments , information or events.

Industry Overview

ASHCO NIULAB is engaged in Contract Research and Analytical Testing activities. Like in the previous year, during the year under review, Indian CRO Industry has experienced many more delays in receiving regulatory approvals for contract research projects.

Potential and Outlook

Preclinical, Clinical and Analytical Contract research and testing activity demand is growing due to growth in Biologics and drug discovery projects. Companys benefit however is dependent upon in time approvals from various regulatory bodies. Government of India has issued regulatory guidelines on Bio-similars recently.

Threats

Competition is an inherent threat for any business. More and more players have entered the business verticals Ashco Niulab is engaged in Multinational Contract Testing and Research Organizations are anchoring in India to reduce their service costs. To mitigate the threats Ashco Niulab is always looking for continuous innovation of new portfolios thus giving itself a clear lead of 2 - 3 years.

Risks and Concerns

The increasing demand for Ashco Niulabs services has increased the pressure on human resources. Due to high demand and less availability of talented human resources, employee turnover has become a challenge and may continue in the near future. Your Company is doing its best to employ qualified people and impart on the job training to cope with the increasing workloads. Further, steep increase in the input costs due to high inflation and increased manpower cost are major concerns. Ashco Niulab is making all efforts to reduce expenditure to offset the effect of this inflation.

Safety, Health and Environment

As a part of Ashco Niulabs commitment towards the principles of sustainable development, safety, health and environment continue to be the priority areas of the Company. Some of the major activities in these areas have been recycling of waste water, training of staff at all levels to the required standards of safety, health and environment.

SEGMENT-WISE PERFORMANCE

During the previous year the Company operated in single segment viz. Analytical Instruments, its accessories and services.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has adequate internal control procedures commensurate with the size of the company and nature of its business. These business control procedure ensures efficient use and protection of the resources and compliance with the policies, procedures and statutes. The internal control system provides well-documented policies, guidelines, authorizations and approval procedures. The prime objective of the internal control procedure is to test the adequacy and effectiveness of all internal controls laid down by the management and to suggest improvements.

FINANCIAL PERFORMANCE

The Sales and Other Income of the company for the financial year and six months ended 31st March, 2012 is (Rs. 2155.38) Lacs. The Company posted cash loss of (Rs. 400.96) Lacs and net loss of (Rs. 699.40) Lacs was arrived at after adding Depreciation from the Cash Loss before Depreciation.

STATUTORY COMPLIANCE :

On obtaining confirmation from various departments & branches of the company of having complied with all the statutory requirements, a declaration regarding compliance with the provisions of the various statutes is made by Managing Director at each Board Meeting. The company secretary as compliance officer ensures compliance with the SEBI regulations & provisions of the listing agreement. The Company secretary as compliance officer for prevention of Insider Trading Regulations ensures compliance with the Ashco guidelines on Insider Trading.

CONTINGENT LIABILITIES :

The details of contingent liabilities are given in Note No. 28 of the notes of Balance Sheet & Statement of Profit & Loss.

INDUSTRIAL RELATION / HUMAN RESOURCE

MANAGEMENT :

Industrial relations remain normal at all locations. The development of human resources is key strategic challenge in order to prepare people for future responsibilities in terms of professional skills as well as business skills. The company is investing in modernization & training of manpower for upgrading the skills. It has been companys constant endeavor to train & develop human resources to meet the challenges the company faces. The company continues to induct competent professionals for its present & future needs. The company provides excellent & challenging atmosphere through various systems & process in place like induction, training, performance management, etc to enable the employees to give the best. Training imparted is comprehensive, covering knowledge, skill and attitude apart from mandatory courses in safety and environment process.

	For and on behalf of the board
Place : Mumbai	ASHOAK KOTWAANI
Date: 5th January, 2013	CHAIRMAN & MANAGING DIRECTOR