colinz laboratories ltd Management discussions

This Report includes Management Discussion and Analysis as appropriate, so that duplication and overlap between Directors Report and Management Discussion and Analysis is avoided. The entire material is thus provided in a composite and comprehensive document.

1)CAUTIONARY STATEMENT

Some of the statement in this report may be forward looking and are stated as required by the applicable laws & regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Prime factors that may make a difference to the Companys performance include market conditions, input costs, interest costs, the price control measures, economic development within/outside the Country, and the vagaries of monsoon.

2)COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE

The Company follows fair, ethical and transparent governance practice by adopting high standard of professionalism, honesty, integrity and ethical behavior. The Company has a well-defined set of guidelines for its internal governance based on business ethics, Legal Compliance and professional conduct. The Company also has an adequate internal control system.

The Company has complied with the provisions of the Listing Regulations which deals with the compliance of Corporate Governance requirement.

A) THE PHARMACEUTICAL BUSINESS

Colinz Laboratories Ltd. is engaged in the manufacturing and marketing of pharmaceutical formulations particularly in gynaecological sector. The Indian pharmaceutical market is highly competitive and also still fragmented with over 20,000 players comprising of foreign multinationals, Indian multinationals, mid-size and small scale companies. Your Company falls under the MSME sector. However, the company has established reputation as a quality supplier of medicines in the domestic market, wherever the company has operation.

B) OPPORTUNITIES, THREATS AND CONCERNS

The Companys products are enjoying a good Brand image, particularly among gynaecologists. The Company has a potential to grow considering the fact that it is yet to open up its marketing operations in many states of the country, which is kept on hold due to general economic situation prevalent in the country. Your company, no doubt is focusing on those off patented products; but those products which will have extended shelf life in the market with innovations.

Supply of medicines at a rock bottom price by the Jan Aushadhi Stores and Ayushman Bharat introduced by the Government are also a great concern to all those who sell branded products like us.

The other threat and concerns of the Company is the issue of DPCO- Price Control on both scheduled and non-scheduled formulations.

C) OUT LOOK

Barring unforeseen deterrents and the issues outlined above, the Company does not foresee any major threats in its survival.

D) FINANCE:

The financial management and cash flow have been satisfactory, during the year under review. In fact, the company is becoming a debt free company slowly by timely repayment of interest free sales tax loan provided by the Maharashtra Government.

E) INTERNAL CONTROLS

The Company has proper and adequate internal control system, in respect of efficiency of operations, financial reporting and compliance with applicable laws and regulations etc. There are adequate controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal and that all transactions are authorized, recorded and reported correctly.

F) HUMAN RESOURCES

Human resources are highly valued asset for any industry particularly in pharmaceuticals. Therefore, the Company seeks to attract and retain expert technical and marketing staff. The Company also recognizes the importance of human capital and ensure that proper encouragement is extended to the employees to motivate them. The total number of permanent employees as on 31-03-2023 was 67. The Company enjoyed excellent relationship with its employees during the year under review.