Coral Laboratories Ltd Management Discussions.

A. Industry structure and developments

The Companys business is divided into single segment i. e Pharmaceutical Formulations. Given the strain on the economic scenario and slow down market condition, company have not achieved well as compare to previous years figures. Your Directors are trying their best to maximize the profits of the Company and the stakeholders as a whole.

B. Segment wise or product-wise performance:

The Company has recorded exports of Rs. 4670.68 lacs compared to the previous year Rs. 6553.92 Lacs.

C. Opportunities, Threats, Risk & Concerns:

The Company is in the process of looking forward to enhance its exports in order to increase the valuation of the company as a whole. The competition to your company has continued to be significant factor which is to be taken care of while formulating the growth plan & strategies. Given its strong technological base, wide market range of products, we are equipped to meet the challenges.

D. Outlook:

Given the strain on the economic scenario, your Directors are trying their best to maximize the profits of the Company and the stakeholders as a whole.

E. Internal control systems and their adequacy:

The Companys defined organizational structure, documented policy guidelines and adequate internal controls ensure efficiency of operations, compliance with internal policies, applicable laws and regulations, protection of resources and assets and accurate reporting of financial transactions. The Company continuously upgrades these systems in line with best available practices.

F. Discussion on financial performance with respect to operational performance:

(Rs. in lacs)

Particulars 2019-2020 2018-2019
Income 7647.12 9623.62
Expenditure 6735.42 8072.97
Earnings before Tax 911.70 1550.65
Provision for Tax 250 500.00
Provision for Deferred Tax (51.33) 28.99
Less: Income Tax Adjustments of earlier years - -
Earnings after Tax 713.03 1021.66
Other Comprehensive Income (net of tax) (436.77) (1192.29)
Total Comprehensive Income 276.26 (170.63)
Add: IND-AS Adjustment - -
Add: Balance Brought forward 10599.18 10855.81
Less: Dividend Paid (including Dividend Distribution tax) (86.14) (86.00)
Deferred tax liability - -
Balance carried forward to Balance Sheet 10789.31 10599.18

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

Human resources continue to be one of the critical assets of the organization. Attracting relevant talent remains the Companys key focus. It pays special attention to training, welfare and safety of its people, strengthening human capabilities.

Ratios where there has been significant change (i.e. change of 25% or more as compared to the immediately previous financial year)

Inventory Turnover Ratio

2019-20 2018-19 Reduction
2.18 2.92 25.30%

Interest Coverage Ratio

2019-2020 2018-19 Reduction
157.85 times 674.16 times 76.59%

Current Ratio:

2019-2020 2018-19 Reduction
3.82 4.64 17.67%

Return on Networth

2019-2020 2018-19 Reduction
6.22 8.98 30.79%

There has been a reduction in Return in Net Worth of 30.79% in F.Y. 2019-20 as compared to F.Y. 2018-19. This is on account of decrease in Revenue of 22.51% and corresponding decrease in Net Profit of 30.21% in F.Y. 2019-20 as compared to last financial year.

By Order of the Board
For Coral Laboratories Limited
Sd/- Sd/-
Girish Dhameja Sushma Kadkade
Whole-Time Director Director& CFO
(DIN: 07798455) (DIN: 07791735)
Place: Mumbai
Date: 23/07/2020