Biopac India Corporation Ltd Management Discussions

Industry Structure and Development

Our business of Disposable it under threat of elimination as most of the state governments have banned the sale of these products and hence. Unfortunately, this business is under severe threat of elimination

Opportunities and Threats

There are opportunities to grow in the food storage container business but disposable business is under severe threat of extinction in India

Financial Performance & Analysis

The total revenue of the Company during the quarter ended 30^th June, 2019-20 was Rs.246.69 Lacs as compared to Rs.292.27 Lacs for previous quarter. The Cash Profit during the quarter was Rs.178.36Lacs as compared to Cash Loss of Rs204.79Lacs during the previous quarter. The net loss after tax during the current quarter was Rs.319.64Lacs as compared to Rs 330.66Lacs during the previous quarter.

Internal Control System and their adequacy

The Company is using SAP – ERP System that enables the Company to adopt the best processes and practices of international standards. Your Company maintains adequate system of internal control to provide reasonable assurance that assets are safeguarded and protected from unauthorized use or disposition.

Business Environment

The business environment is under sever threat of extinction due to the extensive ban of the products in India. Also, the country is also showing negative growth as overall business sentiment in the country is very pessimistic.

Risk and Concern

The building, plant and machinery, vehicle and stocks of the Company are adequately insured. The company has installed perpetual inventory management system, which is operated by its internal staff as well as external audit team. The main cause of concern is major increase in raw material pricing and also threat to the companys main business posed from "plastics Ban imposed by some states in India.

Human Resources\ Industrial Relations

Industrial Relations were cordial throughout the year under review. There is no significant material change in Human resource during the year.

Outlook

The company is being forced to exit the business of disposable food service products due to the Governmental regulations to ban the sale of its products.

The prospects for Food storage and Packaging containers are very healthy and good growth is expected all over India as the product is readily accepted as highest quality products of international standards.

Cautionary Statement

Statements in this report on Management Discussion and Analysis may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however, differ materially, from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand supply conditions, finished goods prices, raw material costs and availability and changes in government regulations and tax structure, economic development within India and the countries with which the Company has business contacts and other factors such as litigation and industrial relations.

Key Financial Ratios:

In accordance with the amended SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof:

The Company has identified following ratios as key financial ratios:

Accounting Treatment

All Accounting Standards mandatorily required have been followed in preparation of financial statements and no deviation has been made in following the same