CDR Health Care Ltd Management Discussions

CDR HEALTHCARE LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS Pursuant to Clause 49 of the Listing Agreement, a Management Analysis Report is given below: A. INDUSTRY BACKGROUND The Healthcare Industry is still dominated by private sector. The Government emphasis continues to be on the primary healthcare, allowing the corporate sector to provide latest super specialty healthcare services. B. INDUSTRY OUTLOOK In spite of the general recession in the market, the future for Health Care in India looks very promising. Added to the increased health awareness and health consumption by the individual and third party payers, the State Govt.s Aarogyasree has been a great contributor for the increased occupancy of the existing hospitals. Presently bed occupancy of the most of the hospitals are exceptionally high and demand for the new facilities will be very high. As on date there is more demand than the supply. C. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: The Company has adequate internal control systems that define roles and responsibilities of people across various levels of the organization. These systems facilitate effective checks and controls as well as tight monitoring on a continuous basis. D. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS: The company plans to out-source routine jobs to other experienced organizations and is in the process of recruiting some of the professionals it has trained in the past.