Choksi Imaging Ltd Management Discussions.

Industry Structure and Developments

Your Company is in the business of manufacturing & trading of Healthcare products, mainly Medical X-Ray Films and supply of other products to the Healthcare Industry. The other products of the Company include medical consumables and equipments. Your Companys growth is directly linked to the growth of the Healthcare Services Delivery business in India.

Healthcare has become one of Indias largest sector, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing,telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players.

Indian healthcare delivery system is categorised into two major components - public and private. The Government, i.e. public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of primary healthcare centres (PHCs) in rural areas. The private sector provides majority of secondary, tertiary, and quaternary care institutions with major concentrationin metros and tier I and tier II cities.

Year at a Glance:

The turnover of the company for the year under review has decreased to Rs.1600.04 lac from Rs. 1733.16 lac. This was primarily due to low margin products.

The Company has booked loss of Rs.55.56 lac for the year 2019-2020 as compared to profit of Rs.85.57 lac for the 2018-2019.

Product Wise Performance:

The products of your company can be divided into two broad classes Manufacturing and Trading. The manufacturing products mainly consist of Medical X-Ray films. The trading products consist of other consumables and equipments for the Healthcare Industry. During the year manufacturing goods turnover decreased from Rs.1396.55 to Rs. 1305.75 lac (Gross) and the trading goods turnover has decreased from Rs.323.97 lac to Rs.281.12 lac (Gross).


The healthcare market can increase three-fold to Rs 8.6 trillion (US$ 133.44 billion) by 2022. Indian medical tourism market is growing at 18 per cent and is expected to reach US$ 9 billion by 2020. There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. The Governments expenditure on healthcare sector has grown to 1.6 per cent of the GDP.

The middle class population of large Indian cities demands for better healthcare services which is fuelling the growth of private healthcare services. The demand of good healthcare service has also rises among low income group and poor population due to large Central and State Government programs in the primary and secondary healthcare sector and public health domain.


India competitive advantage lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe. India ranks 145 among 195 countries in terms of quality and accessibility of healthcare.

India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep.

Indian healthcare sector is much diversified and is full of opportunities in every segment, which includes providers, payers, and medical technology. With the increase in the competition, businesses are looking to explore for the latest dynamics and trends which will have positive impact on their business.

The Government of India is planning to increase public health spending to 2.5 per cent of the country & GDP by 2025. India competitive advantage also lies in the increased success rate of Indian companies in getting Abbreviated New Drug Application (ANDA) approvals. India also offers vast opportunities in as well as medical tourism. To sum up, there are vast opportunities for investment in healthcare infrastructure in both urban and rural India.

Risks, Concerns and threats:

Healthcare companies in India have to walk a tightrope. They are facing pressure from several stakeholders: from government to bring in transparency and rationale in billing; from patients for accessibility and affordability of best product and services; and from shareholders and PE investors to deliver profitable growth and ensure commensurate returns.

The competitive intensity from unorganized as well as organized players continues to remain high. Given the growing demand, the emergence of private players and huge investment needs in the health care sector in recent years, there has been interest among foreign players and NRIs to enter the Indian health care market. There is a growing interest among domestic and international financial institutions and consortiums to explore investment opportunities across a wide range of health care segments.

The margin of product manufactured and traded has decreased considerably due to competition which further leads to increase in operating cost and result in an undesirable impact on the Companys results of operations and financial condition.

Internal Control Systems and their adequacy:

The Company has instituted internal control systems to commensurate with nature of its business. An Internal Audit is conducted at all the branches of your Company as well as the factory at Silvassa by an independent qualified Chartered Accountant. Your company also has an Audit Committee having Independent Directors as its members in place. The Internal Audit Reports are placed before the audit committee at every meeting of such committee which are reviewed and scrutinized by the committee.

Human Resources:

Total number of employees as on March 31, 2020 stood at 44, who form the experienced, educated and hardworking pool of Human resources. Your Companys industrial relations continued to be cordial during the year under review. Your Company conducts regular in-house training programs for employees at various levels.

Your Company has constituted Vigil Mechanism policy for Director and employees to report genuine concerns.

On behalf of the Board of Directors

Sd/- Sd/-
Anil Choksi Gaurav Choksi
Director Director
Date: June 17, 2020
Place: Mumbai