ABL Bio-Technologies Ltd Management Discussions

ABL BIOTECHNOLOGIES LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS Industries Structure, Development and outlook Indian Pharmaceutical industry is the worlds second largest by volume and likely to lead the countrys manufacturing sector. Indias Bio - tech industry clocked a 17% growth in the fiscal 2009 -10. Association of Biotechnology-led Enterprises (ABLE) estimates the industry to grow to $ 5 billion in revenue in near future. Indian Bio-tech market is dominated by Bio-pharmaceuticals which registered a growth of 30% in 2009 - 10 and contributed 60% of the industrys growth. Out look of the industry is prospective but there are challenges to be faced by the industry. Your company being primarily a technology development company is in the process of re- structuring its business model to focus on converting technologies and marketing them to industry. Thus the years ahead will be focused at completing development of selected projects and working on out licensing them to industry. Financial performance As mentioned earlier in the report that the company as a strategy is currently not pursuing the formulation segment of the business. Hence there was no sale recorded during the year. Company incurred a loss of Rs. 17.92 lakh on account of fixed expenses during the year under review. Internal control system and adequacy The system of internal control has been established to provide reasonable assurance of safeguarding assets, maintenance of proper accounting records in compliance with applicable Laws and Regulations to ensure reliability of financial statements and reports. The Statutory Auditors and the Audit Committee review all financial statements and ensure adequacy of internal control systems. Risks Management Risk evaluation and management of risk is an ongoing process in the company. Human Resources Since your Company is in the Biotechnology Industry, the criticality of talented man-power and their retention needs no emphasis. Your company is in the process of working out a comprehensive plan to attract, motivate and retain highly skilled and technically competent man-power. Cautionary Statement Statements in the Management discussion and analysis describing the companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demand/supply and prices conditions in the domestic and overseas markets in which the company operates/ going to operate, changes in government regulations, tax laws and other statutes and other incidental factors.