sam leaseco ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Nutraceuticals are the products that offer health as well as medicinal benefits, consisting of prevention and treatment of disease. The word ‘NUTRACEUTICALS is a combination of two words-nutrient and pharmaceuticals. Awareness about health care among Indians is growing day by day and pharmaceutical companies are betting big on Nutraceuticals business. Several pharma companies are introducing products in this category and predict a significant increase in their profits from this segment.

BUSINESS OVERVIEW:

Higher purchasing power has prompted Indians to be more health conscious and adopt a healthy diet routine completed with consumption of nutritional supplements. Huge customer base, increasing co-prescription with regular drugs, focus on preventive healthcare, rapid retail growth and e-commerce are some of the major drivers for the growth of the sector.

Indian nutraceuticals market is set to grow over two-fold by 2020 as consumers become more conscious towards health and fitness. The high growth rate of nutraceuticals-products that offer health as well as medicinal benefits.

FINANCIAL AND OPERATING PERFORMANCE:

The total income of the Company for the financial year 2017-18 was at Rs.518.45 Lakhs compared to Rs. 630.43 Lakhs during the previous year. The Company has net profit during the year of Rs.7.42 Lakhs as compared to Profit of Rs.8.15 Lakhs during the previous year. The Company expects to earn increased revenues in the near future.

SEGMENT WISE PERFORMANCE:

The Companys business is of dealing in nutraceuticals products only and not required to furnish segment wise performance.

HUMAN RESOURCES:

Human Resources are important asset of any business. The timely availability of professional team is one of the key challenges. The Company maintains healthy and motivating work environment through various measures. This will help the Company to retain and recruit professional work force. Initiatives are taken to upgrade the knowledge of the employees and to strengthen their managerial capabilities.

RISKS, INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal risk is monitored by adopting effective internal control systems and procedures. The Company has adequate internal control procedure commensurate with its size and nature of the business. The internal control system is supplemented by extensive internal audits, regular reviews by management and well-documented policies and guidelines to ensure reliability of financial and all other records to prepare financial statements. The Company continuously upgrades these systems in line with best accounting practices.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward looking statements" within the meaning of applicable securities, laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments within the country, demand and supply conditions in the industry, changes in Government regulations, tax laws and other factors such as litigation and industrial relations.