Advanced Micronic Devices Ltd Management Discussions

Overview

a. Industry structure and developments, opportunities and threats, segment-wise, Product-wise Performance, Outlook, Risks and Concerns:

The company has one business segment namely Health Care Management System (HCMS).

Health Care Management and Services Division: (HCMS)

India is being one of the top 20 markets for Medical devices, Accessories and consumables in the world and is growing at a fast pace of around 20%. This fast growing market offers a lot of opportunities for the company in this sector. The growing awareness amongst consumers about Health & Wellness, the rise in penetration of Medical Insurance and the government initiatives to build better healthcare infrastructure in the smaller cities. shall drive the momentum in this industry. The company is looking forward to maintain offer products solution and services and flexible enough to extend the reach to meet the newer market requirements.

Risks and Concerns:

The Indian Medical Device Market is largely import dependent and price sensitive with many low cost devices & consumables coming from FAR EAST countries. Cost factor remains a concern for smaller setups in Tier II & Tier III cities. In addition, there is a challenging competition from large MNCs established in the Indian market. The company leverage on its known customer base and selectively reaching new customers by adopting INSTITUTIONAL CUSTOMERS DIRECT in our cities of Operation and DIRECT and INDIRECT in cities of our operation and outside.

b. Internal Control Systems & their Adequacy:

Your Company has adequate internal control systems and procedures in all the areas of activities. The activities are also subject to internal and external audit. The finance department is well managed with experienced and qualified personnel who play an important role in implementing and monitoring internal control environment. The internal control and procedures are commensurate and adequate with the size and nature of the business of the Company.

c. Discussion on Financial Performance with respect to operational performance:

The financial statements have been prepared in compliance with Indian Accounting Standards ("lndAS ") as prescribed under section 133 of the Companies Act, read with the Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1,2016. Financial statements for the year ended and as at March 31,2016 have been restated to conform to Ind AS.

The total income for your company for the financial year ending March 2017 was Rs.301.93 lakhs, against Rs.665.20 Lakhs for the year ending March 2016 and decrease of 54.65 % over the previous year, due to right sizing of the ICTD and SED business

d. Material developments in Human Resources/ Industrial Relations front, including number of people employed.

The Company considers its employees as valuable assets and has adopted various HR measures including proper appraisal of employees, placements, recognition, career growth and improvement of managerial and inter-personal skills through various training programs and so on. The Company has 9 employees as of 31st March 2017.

Cautionary Statement

The statements made in this report and those appearing elsewhere. may be "forward looking statements" that set forth anticipated results based on management plans and assumptions. These statements are likely to address the companys growth strategy and financial results and are subject to risks, uncertainties and inaccurate assumptons. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected.

On behalf of the Board of Directors

Vivek Kumar Malhotra Somadas GC

Whole time Director Director

Place : Bangalore, DIN : 07065198

DIN : 00678824

Date : August 01,2017