oriental remedies herbals ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

A. BUSINESS ENVIRONMENT AND OUTLOOK

I n the year under review, the global economy continued on its path of recovery from the recession of 2008. However this recovery has taken two track approach with developed economies grappling longer with the wounds of the financial crisis while developing countries have recovered much faster. High crude prices, inflation and monsoon remain as the key risks.

B. OVERALL REVIEW -AYURVEDA INDUSTRY

n I view of western and developed countries preference for natural and herbal healthcare products, the ayurvedic science, practice and industry Jiave great scope. Ayurveda, the science of life, is an established, time tested and practiced science. India having strong agricultural base and scientific expertise, can deliver high quality ayurvedic products to meet global needs. According to industry analysis, annual turnover of Indian Ayurvedic industry is estimated at Rs. 4200 crores. The Indian market is growing. World herbal product market is worth $50 billion and is expected to grow to reach $5 trillion by 2050. Indian export figures are dismal and are estimated to grow to Rs. 7000 crores by 2020. For Indian herbal industry, this a huge export opportunity.

C. ENVIRONMENTAL PROTECTION

Your company has complied with all the applicable environmental laws. The company has been complying with the relevant laws and has been taking all necessary measures to protect the environment.

D. OPPORTUNITIES

There is a revival and renewal of global interest in traditional medicine. World demand for herbal products are increasing. For Ayurveda Industry this is huge export opportunity. However, these are full of challenges of meeting global requirements of Quality, Efficacy, Safety and Standardization.

E. CHALLENGES

Major challenges for the Ayurveda industry are Regulatory concerns, Consumer perceptions and competition. The regulatory agencies, world over, are focusing on Quality, Efficacy, Safety and standardization of herbal medicines.

F. FUTURE OUTLOOK

At present the focus is on carrying out research on Ayurveda ingredients and formulations in a scientific manner, mainly to identify new proprietary formulation to demonstrate the efficacy of Ayurvedic medicines.

G. HUMAN RESOURCES

The Company firmly believes that Human Resources and knowledge capital is vital for business success and creating values for share holders. The Companys endeavor is to create competency based skill enhancement and development.

H. INTERNAL CONTROLSYSTEM

The company has well defined control systems and procedures to ensure optimal use of Companys resources and protection thereof, facilitate accurate and speedy compilation of accounts and management information reports and compliance with laws and regulations. The Company has a well defined organization structure and authority levels and internal guidelines and rules for conducting business transactions.

I. CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis report describing the Companys objectives, expectations or projections may be treated as forward looking statements within the meaning of applicable securities, law and regulations.

Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include global and Indian demand supply conditions, finalized prices, changes in Government regulations tax regimes, economic development within India.

CEO & CFO CERTIFICATION

Financial Statements for the year 2011-2012 - Certification

We, Shyarn Shreshtha, Chairman and Dr. Dinesh C. Gupta, Director, on the basis of the review of the financial statements and the cash flow statements for the Financial year ended 31st March 2012 and to the best of our knowledge and belief, thereby certify that:-

1. These statements do not contain any materially untrue statements or omit any material fact or contains statements that might be misleading.

2. These statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

3. There are to the best of our knowledge and belief, no transaction entered into by the company during the year ended 31st March 2012 which are fraudulent, illegal or violative of the Companys code of conduct.

4. We accept responsibility for establishing and maintaining internal controls for financial reporting, we have evaluated the effectiveness of the internal control systems of the Company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee those deficiencies, of which we are aware, in the design or operation of the internal control systems and that we have taken the required steps to rectify these deficiencies.

5. We further certify that:

(a) There have been no significant changes in the internal control over financial reporting during this year.

(b) There have been no significant changes in accounting policies during this year and that the same have been disclosed in the noted to the financial statements.

(c) There have been no instances of significant fraud of which we have become aware and the involvement therein, of management or an employee having significant role in the Companys internal control systems over financial reporting

	For and on behalf on the board,
	Oriental Remedies & Herbals Ltd.
Dr Dinesh C Gupta	Shyam shreshtha
Director	Director
Place: KOLKATA
Date: 01.09.2012