fabino life sciences ltd share price Management discussions


1. GLOBAL ECONOMY REVIEW:

A tentative recovery in 2022 has been followed by increasingly gloomy developments in 2023 as risks began to materialize. Global output contracted in the second quarter of this year, owing to downturns in China and Russia, while US consumer spending undershot expectations. Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide especially in the United States and major European economies triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting COVID- 19 outbreaks and lockdowns; and further negative spillovers from the war in Ukraine.

The baseline forecast is for growth to slow from 6.1 percent last year to 3.2 percent in 2022, 0.4 percentage point lower than in the April 2022 World Economic Outlook. Lower growth earlier this year, reduced household purchasing power, and tighter monetary policy drove a downward revision of 1.4 percentage points in the United States. In China, further lockdowns and the deepening real estate crisis have led growth to be reviseddown by 1.1 percentage points, with major global spillovers. And in Europe, significant downgrades reflect spillovers from the war in Ukraine and tighter monetary policy. Global inflation has been revised up due to food and energy prices as well as lingering supply-demand imbalances, and is anticipated to reach 6.6 percent in advanced economies and 9.5 percent in emerging market and developing economies this year upward revisions of 0.9 and 0.8 percentage point, respectively. In 2023, disinflationary monetary policy is expected to bite, with global output growing by just 2.9 percent.

The risks to the outlook are overwhelmingly tilted to the downside. The war in Ukraine could lead to a sudden stop of European gas imports from Russia; inflation could be harder to bring down than anticipated either if labor markets are tighter than expected or inflation expectations unanchored, tighter global financial conditions could induce debt distress in emerging market and developing economies; renewed COVID-19 outbreaks and lockdowns as well as a further escalation of the property sector crisis might further suppress Chinese growth; and geopolitical fragmentation could impede global trade and cooperation. A plausible alternative scenario in which risks materialize, inflation rises further, and global growth declines to about 2.6 percent and 2.0 percent in 2022 and 2023, respectively, would put growth in the bottom 10 percent of outcomes since 1970.

With increasing prices continuing to squeeze living standards worldwide, taming inflation should be the first priority for policymakers. Tighter monetary policy will inevitably have real economic costs, but delay will only exacerbate them. Targeted fiscal support can help cushion the impact on the most vulnerable, but with government budgets stretched by the pandemic and the need for a disinflationary overall macroeconomic policy stance; such policies will need to be offset by increased taxes or lower government spending. Tighter monetary conditions will also affect financial stability, requiring judicious use of macro prudential tools and making reforms to debt resolution frameworks all the more necessary. Policies to address specific impacts on energy and food prices should focus on those most affected without distorting prices. And as the pandemic continues, vaccination rates must rise to guard against future variants. Finally, mitigating climate change continues to require urgent multilateral action to limit emissions and raise investments to hasten the green transition.

2. INDIA“S ECONOMIC REVIEW:

After recording the strongest GDP rebound in the G20 in 2021, the Indian economy is progressively losing momentum as inflationary expectations remain elevated due to rising global energy and food prices, monetary policy normalizes and global conditions deteriorate. Real GDP is projected to grow by 6.9% in fiscal year (FY) 2022-23 and6.2% in FY 2023-24, despite a pick-up of corporate investment facilitated by the Production-Linked Incentive (PLI)

Scheme. While inflation will gradually decline, the current account deficit will widen due to the surge in energy import costs.

The Reserve Bank of India (RBI) began monetary policy tightening in May, intending to anchor inflation expectations and limit second-round effects. Given the financial and social costs of high inflation, the RBI should gradually move towards a more neutral monetary stance. The government should counter signs of a rapid deterioration in living standards with income support for vulnerable households. Risks include the appearance of a new COVID variant, failure to tame inflation, a reversal of capital flows to emerging markets, and a significant widening of the current account deficit.

The waning scale of the COVID- 19 shock, the elimination of

containment measures, and the ability of exporters to take advantage offavourable external conditions, and government support. tovulnerable households combinedto produce remarkably high GDP growth in FY 2021-22. Merchandise exports rose to a record level, exceeding official government targets and validating Indias strategy of managed liberalisation through preferential trade agreements with major partners. However,

COE EN Wu LAD BIUWLL, WILL 3AIUS UL LWUS WILIVLIVES taluug wa 1v-yval minimum, subdued private sector credit growth, and contracting employment, although companies report difficulties in filling vacancies. Consumer price inflation for energy-related items and edible oils started trending up even before the Ukraine war and has accelerated afterwards. Inflation has also risen and become wide-ranging: almost 75% of the CPI sub-components exceed the 4% inflation target. Despite uncertainty, reflected in the higher yield on 10-year government bonds, equitymarkets have been boosted by the initial public offer (IPO) of state-owned Life Insurance Corp., India‘s largest ever [PO. Meanwhile, the import coverage of foreign exchange reserves, which exceeded 18 months in March 2021, declined to 12 months in March 2022.

3. OVERVIEW OF COMPANY

We are a growing pharmaceutical and other wellness focused consumer Products Company operating from Delhi and Haryana. Our company emphasizes developing high-quality and affordable products for all sections of society by harnessing the skills of our competent manpower and other resources. We aim at providing the best quality products at affordable rates for good health and well-being for all.

Fabino Life sciences Ltd is engaged in manufacturing, marketing, trading and Packing of pharmaceutical and other wellness focused consumer products, Our core business is marketing of Pharmaceutical formulation & products in Domestic market through own distribution network and Sales force under own brand name, Getting our Ayurvedic formulations manufactured through Loan Licensing facilities, Packing, Labeling etc. We export wellness and FMCG products like Coffee, Malt powder, Protein powder, Hair shampoo which are marketed by our company.

Our Ayurvedic/Herbal business operations are supported by loan licensing facilities which are approved by relevant authorities. We typically enter into Loan License Agreement for periods ranging from one to five years. We have been awarded a G.M.P Certification for following Good Manufacturing Practices of Ayurveda/Siddha/Unnani drugs under -Schedule TI of Drugs & Cosmetics Rules, 1945 in respect of various categories of Tablets, capsule, Oils, Syrups and Powder. We value our customers and aim to exceed the expectations of our customers by offering diverse products and fulfilling valuable commitments. We currently have over 70 launchedand active products o [multiple categories available in markets as entailed elow:

4. INDUSTRY STRUCTURE AND DEVELOPMENTS

“+ Overview of Global Industry:

The global pharmaceutical manufacturing market size was valued at USD 405.52 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.34% from 2021 to 2028. The pharmaceutical landscape has undergone a massive transformation with the emergence of new technologies, cost-effective, and more efficient manufacturing approaches. In addition, increasing investment flow in this space has impacted the market growth positively. Manufacturing floor downtime and the production of product waste are reduced by the implementation of robotic technology and Artificial Intelligence (Al). In addition, single-use disposable solutions have gained momentum in this industry and have replaced conventional open transfer manufacturing techniques. Furthermore, the paradigm shift towards integrated, smart, and data-rich paperless operations has resulted in error-free and precise production. Such ongoing developments have propelled drug manufacturing. Precision medicine comes from the ideaof treating each patient as a unique individual. Advancements in omic and data analysis are providing new insights into how the human body responds to drugs. This knowledge, along with advanced manufacturing methods such as additive manufacturing, is making personalized medicine a reality. Drug exposure models determine the pharmacokinetic and pharmacodynamic properties of drugs for arriving at the right dosage for drugs based on age, sex, comorbidities, and other clinical parameters.

* Overview & Developments of the Indian pharmaceutical Industry

Indian pharmaceutical sector supplies over 50% of the global demand for various vaccines, 40% of the generic demand for US and 25% of all medicines for UK. According to the Indian Economic Survey 2021, the domestic market is expected to grow 3x in the next decade. India‘s domestic pharmaceutical market stood at US$ 42 billion in 2021 and is likely to reach US$ 65 billion by 2024 and further expand to reach US$ 120-130 billion by 2030. In terms of overall revenue, the Indian pharmaceutical market increased by 13.9% in January 2022. India is the largest producer of vaccines worldwide, accounting for ~60% of the total vaccines, as of 2021. As of August 2021, CARE Ratings expect Indias pharmaceutical business to develop at an annual rate of 11% over the next two years, to reach more than US$ 60 billion in value. e Rs. 3,201 crore (US$ 419.2 million) has been set aside for research and Rs. 83,000 crore (US$ 10.86 billion) has been allocated for the Ministry of Health and Family Welfare. e Rs. 37,000 crore (US$ 4.83 billion) has been allocated to the "National Health MissionR.

The Ministry of AYUSH has been allocated Rs. 3,050 crore (US$ 399.4 million), up from Rs. 2,970 crore (US$ 389 million).

Indian healthcare sector, one of the fastest growing sectors, is expected to cross US$ 372 billion by 2022.

India‘s medical devices market stood at US$ 10.36 billion in FY20. The market is expected to increase at a CAGR of 37% from 2020 to 2025 to reach US$ 50 billion.

The Contract Research and Manufacturing Services industry (CRAMS) is expected to reach US$ 20 billion by 2024 and is expected to grow at a CAGR of 12%.

In March 2022, under the Strengthening of Pharmaceutical Industry (SPI) Scheme, a total financial outlay of Rs. 500 crore (US$ 665.5 million) for the period FY 2021-22 to FY 2025-26 were announced.

In November 2021, PM Mr. Narendra Modi inaugurated the first Global Innovation Summit of the pharmaceuticals sector. The summit will have 12 sessions and over 40 national and international speakers deliberating on a range of subjects including regulatory environment, funding for innovation, industry-academia collaboration and innovation infrastructure.

To achieve self-reliance and minimize import dependency in the countrys essential bulk drugs, the Department of Pharmaceuticals initiated a PLI scheme to promote domestic manufacturing by setting up greenfield plants with minimum domestic value addition in four separate _Target SegmentsR with a cumulative outlay of Rs. 6,940 crore (US$ 951.27 million) from FY21 to FY30.

In Budget Speech, Finance Minister Ms. Nirmala Sitharaman announced an additional outlay of Rs. 197,000 crore (US $26,578.3 million) that will be utilized over the next five years for the pharmaceutical PLI scheme in 13 key sectors such as active pharmaceutical ingredients, drug intermediaries and key starting materials. India being the 3rd largest pharmaceuticals industry in the world by volume offers a positive growth trajectory in the coming years.

Over the next five years, Indias medical spending is expected to increase by 9 -12% placing it among the top 10 nations worldwide. The ability of companies to orient their product portfolio towards chronic therapies for diseases like cardiovascular, anti-diabetes, anti-depressants, and anti-cancers, which are on the rise, will also play a role in future domestic sales growth. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies.

5. OPPORTUNITIES AND THREATS

# Opportunities

The COVID-19 pandemic has transformed the industry with increasing digitization, and traction of e-pharmacy and pharmacy chains. Increased healthcare coverage and better policy support are likely to boost growth whereas adverse regulation could impact in a negative way. Factors which impact Industry and Company include:

* E-pharmacy and Pharmacy Chains: New-age channels are gaining increasing salience and have emerged as an additional access point for consumers along with brick-and-mortar retailers. The rapid growth of the sector further driven by COVID-19 tailwinds has led to the entry of conglomerates and e-commerce players like Reliance, TATA and Flipkart. Propelled by the impact of the pandemic and its impact on consumer behavior, the online pharmacy channel is expected to continue growing and it is estimated to reach 70 Million households by 2025.

* Ayushman Bharat: The central governments health insurance scheme, Ayushman Bharat Pradhan Mantri Jan ArogyaYojana (AB-PMJAY), is expected to drive up public health insurance coverage. 107.4 Million

Underprivileged and vulnerable families equivalent to around 500 Million people or 40% of India‘s population are covered under the scheme, with the provision of hospital care to an annual value of *5,00,000 per family. By February, 2022, more than 174 Million e-cards had been distributed to PMJAY affiliates, covering over 26Million hospital admissions across 25,000 participating public and private hospitals. While coverage under the scheme itself is limited to hospital inpatient care, it will allow a growing number of patients to gain access to healthcare, increasing rates of diagnosis and raising disease awareness. This will further benefit private clinics and the retail pharmacy sector.

GST: The Indian Government is looking at rationalizing GST rates. Currently, majority of drugs are in 12% category. If drugs are put in higher category and if it is not implemented rationally, it may impact the industry

OTC Drug Regulations: The OTC sector in India has been growing at a healthy rate driven by growing access to information for patients and willingness to self medicate. The Ministry of Health (MOH) has published a draft notification which proposes to allow 16 OTC drugs used for treatment of common ailments to be sold without doctors prescription. The MOH also plans to formulate an OTC regulation to promote responsible self- medication for treatment of common ailments, which will also enhance access to healthcare services. Any policy mandate is likely to benefit the Company given its dedicated OTC vertical.

Uniform Code of Pharmaceutical Marketing Practices (UCPMP): UCPMP, while currently voluntary, could become mandatory in future. A mandatory code would require ethical marketing practices to be followed by all companies. Given that the Company has robust compliance processes in place, it would be well positioned under a strict enforcement of UCPMP.

NMC Regulations: The National Medical Council has published draft Registered Medical Practitioner (Professional Conduct) Regulations, 2022, which has proposed several restrictions on RMP‘s engagements with the pharmaceutical industry and proposed changes in prescription guidelines. The draft once notified will replace the existing MCI regulations.

Digital Engagement: Field force activity witnessed major disruption during the pandemic prompting companies to utilize digital means for engagement with Healthcare Professionals (HCPs). The trend is expected to continue with HCPs looking for high quality, scientific promotional material that is available at their convenience.

Threats

Uncertainty in the global markets, owing to the increased strain in the advanced economies and emerging economies due to the COVID-19 & Ukraine War impact can result in volatile capital inflows and currency fluctuations. Increased restrictions on migration and global trade could hurt productivity and incomes and take an immediate toll on market sentiment.

Technological disruptions- With rapid changes in technology and innovations, companies need to increase its attention towards innovation objectives alongside business growth objectives. With increasing performance expectations related to quality, timings and cost, technological upkeep is very important to keep in line with competitors, especially new competitors that are born digitall and with a low-cost base for their operations. The risk of disruptive innovations enabled by new and emerging technologies is always present.

Any stringent regulatory changes or unfavorable policy changes can pose a threat to the Company in the short run.

Short term economic slowdown impacting investor sentiments and business activities

Use of generic drugs which affects the domestic industry on a large scale which in turn reduces the quality of its effectiveness.

B ECONOMIC OUTLOOK

The risks to the outlook are overwhelmingly tilted to the downside. The war in Ukraine could lead to a sudden stop of European gas imports from Russia; inflation could be harder to bring down than anticipated either if labor markets are tighter than expected or inflation expectations unanchored; tighter global financial conditions could induce debt distress in emerging market and developing economies; renewed COVID-19 outbreaks and lockdowns as well as a further escalation of the property sector crisis might further suppress Chinese growth; and geopolitical fragmentation could impede global trade and cooperation. A plausible alternative scenario in which risks materialize, inflation rises further, and global growth declines to about 2.6 percent and 2.0 percent in 2022 and 2023, respectively, would put growth in the bottom 10 percent of outcomes since 1970.

With increasing prices continuing to squeeze living standards worldwide, taming inflation should be the first priority for policymakers. Tighter monetary policy will inevitably have real economic costs, but delay will only exacerbate them. Targeted fiscal support can help cushionH the impact: on the most vulnerable, but with government budgets stretched by the pandemic and the need for a disinflationary overall macroeconomic policy stance; such policies will need to be offset by increased taxes or lower government spending. Tighter monetary conditions will also affect financial stal lity, requinng judicious use of macro prudential tools and making: reforms to debt resolution : frameworks all the more necessary. Policiesbi to address specific: impacts: on energy and food prices should focus on those most affected without distorting prices. And as the pandemic continues, vaccination rates must rise to guard against future variants. Finally, mitigating climate change continues to require urgent multilateral action to limit emissions and raise investments to

6. RISKS AND CONCERN

Fabino Life Sciences Limited is exposed to specific risks that are particular to its businesses and the environment within which it operates, including credit risk, operational risk, competition risk, regulatory risk, human resource risk, execution risk, information security risks and macro-economic risks.

Our risk management practices have been designed and implemented taking into consideration the varying needs of our organization, operating structure, business operations and regulatory requirements. We have facilities for approach to risk management and the roles and responsibilities of all stakeholders. The Audit Committee is responsible for overseeing the risk management framework, reviewing the key risks and mitigation strategies, and ensuring the effectiveness of risk management policies and procedures. The Management is also responsible for ensuring that the risk management framework is effectively implemented within all areas of their respective functions.

Our business depends on consumer confidence in the overall economy, economic growth rates, household saving rates and consumer attitudes towards financial savings, in particular, within India. Any adverse market rate fluctuations and/or adverse economic conditions could affect our business in many ways, causing a decline in our revenue

Risk is an integral part of the business and we aim at delivering superior shareholder value by achieving an appropriate balance between risks and returns. The financial services industry is subject to continuously evolving legislative and regulatory environment due to increasing globalization, integration of world markets, newer and more complex products & transactions and an increasingly stringent regulatory framework.

Our senior management identifies and monitors the risks on an ongoing basis and evolves processes/systems to monitor and control the same to contain the risks to minimum levels. Periodic monitoring by our officials helps in identifying risks in early stage. If required, a risk event update report is periodically placed before the Board of Directors of the Company.

If our investment strategies perform poorly, our existing customers may reduce or withdraw their investments. Underperformance to benchmark could lead to a shift to low cost passive funds. We are exposed to credit risks, liquidity risks and market risks such as interest rate risks and price risks. We are also exposed to operational risks andlegal risks. The effectiveness of our risk management is limited by the quality and availability of data. Our schemes and other investment products carry their own risks.

We depend on the skills and expertise of our employees and our success depends on our ability to retain key members of our teams. If we are not able to retain existing employees or attract new talent, it could affect our operations resulting in decline in performance of our business.

Regulatory framework, focused on maintaining controls on domestic businesses but even inadvertently creating more favorable regulatory environment for global entities operating in India is a matter of concern. We actively participate in dialogue in industry bodies and with regulators to point these out and to recommend appropriate changes. While we ensure that we are in compliance with all applicable laws, however any failure in detecting errors in our statutory records or errors or omissions in our business operations could expose us to potential losses and regulatory fines amongst others.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an internal control mechanism commensurate with its size and nature of business. These systems provide a reasonable assurance on achievement of its operational, compliance and reporting objectives, including safeguarding the Companys assets, prevention and detection of frauds, accuracy and completeness of accounting records and ensuring compliance with corporate policies. This mechanism is sound in design and the framework is continuously evaluated for effectiveness and adequacy. The mechanism operates through well-documented standard operating procedures, policies and process guidelines and segregation of duties. Periodic analysis and reviews are conducted by the senior management to assess its efficiency. Also, the same is discussed with auditors on a regular basis. Change in control structure is carried out to meet business needs along with control effectiveness. The Internal audit plan is finalized based on current perception of internal control risk and compliance requirement in consultation with the operating divisions. The Internal Auditors, as a part of their audits, review the design of key processes to assess the adequacy of controls and also propose remedial measures, wherever required. The Internal Audit Reports issued by the Internal Auditors are discussed with the Senior Management and presented to the Audit Committee on aquarterly basis. An independent and empowered Audit Committee reviews the significant observations and assesses the adequacy of the actions proposed while monitoring their implementation. The Internal Auditors conduct a quarterly follow up for implementation/ remediation of all audit recommendations and the status report is presentedto the Audit Committee on a regular basis. The Company has implemented both preventive and detection controls. Appropriate corrective actions taken to reduce the risks include the following:

* The Fabino Code of Business Conduct requires annual certification by all employees; * The Compliance Committee is formed with representatives from all the operating groups; * Senior Management has oversight of the compliance programs;

> The Business Compliance Cell is assigned the responsibility of training, monitoring and ensuring employees compliance with the Company‘s policies and procedures

Y Internal Investigation reports are presented before the Audit Committee on a quarterly basis;

* Business divisions have periodic meetings with the Director - Office of Ethics and Compliance, to monitor and discuss compliance with various business processes. The Management has assessed the adequacy and effectiveness of internal controls over financial reporting for the year ended March 31, 2023 and basis the assessment, believes that the processes are working efficiently and effectively. The Statutory Auditors have issued unmodified audit report on the adequacy of the internal controls over financial reporting and its operating effectiveness.

The Audit Committee of the Board of Directors reviews the existing audit procedures and internal systems of control on an ongoing basis keeping in mind the organization‘s requirements, growth prospects and ever evolving business environment. They also review the internal audit findings and recommendations and ensure that corrective measures are implemented. The Audit Committee is responsible for overseeing the risk management framework, reviewing the key risks and mitigation strategies, and ensuring the effectiveness of risk management policies and procedures. The Management is also responsible for ensuring that the risk management framework is effectively implemented within all areas of their respective functions.

Our Company has received consent from the Statutory Auditor namely, D G M S & Co. Chartered Accountants about the adequacy of the internal control mechanism as mandated the listing obligation and disclosure requirements and other regulatory prescription for the time being in force.

8. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE KEY FINANCIAL RATIOS:

(Disclosure of the following ratio changed 25% or more as compared to the previous year)

Ratio
No. b Ratio Analysis 31-Mar-23 31-Mar-22 Difference Reasons for Differences, if Difference is More than 25%.
1 Net Profit Ratio 0.00 0.01 -71.40% Decreased due to decrease in revenue from operation
2 Return on Capital employed 0.00 0.02 -84.67% Due to es in capital
3 Return on Investment - - 0.00% -
4 Current Ratio 10.72 10.64 0.81% -
5 Debt Equity Ratio 0.10 0.01 770.98% Increase due to repayment of debts
6 Inventory Turnover 1.32 3.28 -59.91% Due to High Inventories

Reasons for Differences, if Difference is More than 25% - The company shall provide a commentary explaining any change (whether positive or negative) in the ratio by more than 25% compared to the ratio of preceding year.

Operation of the company:

Our teams are engaged in manufacturing, marketing, trading and Packing of pharmaceutical and other wellness focused consumer products, Our core business is marketing of Pharmaceutical formulation & products in Domestic market through own distribution network and Sales force under own brand name, Getting our Ayurvedic formulations manufactured through Loan Licensing facilities, Packing, Labeling etc. We export wellness and FMCG products like Coffee, Malt powder, Protein powder, Hair shampoo which are marketed by our company.

We aim at tapping strong distribution network in medical or pharmaceutical field in the future. Further, Our Promoter has obtained registrations and patents for various products. Some of these products are manufactured by us in house at our processing centre in Sonipat Haryana, some of our products are manufactured at our contract manufacturing facility in Haryana and other product range is manufactured by third party manufacturers on made to order basis as per our instructions.

* Review Of Financial Performance

The Total Income of the Company stood at Rs. 338.26 lakhs for the year ended March 31, 2023 as against Rs. 421.28 lakhs in the previous year. The Company made a net profit (after tax) of Rs. 1.64 lakhs for the year ended March 31, 2023 as compared to the Rs. 4.70 lakhs in the previous year.

9. HUMAN RESOURCES

Fabino Life Sciences Limited is part of a dynamic and progressive group that actively fosters a challenging work environment and encourages Entrepreneurship. With trust being the critical part of our business belief, we lay a strong emphasis on integrity, teamwork, innovation, performance and partnership. Our professional staff with diverse backgrounds brings varied talent, knowledge and experience to the Group, helping our businesses to remain competitive, achieve greater success and newer milestones.

Our management team and board of directors are resolved to do what, we believe, is best for our shareholders, clients and associates. We are the team of 10 people.

At Fabino Life Sciences Limited we understand that internal selection and succession is very critical for the long- term sustenance of the business as it ensures business continuity, preserves corporate culture, enhances knowledge capital and fuels the ambitions of the Companys talent force leading to better retention. We ensure that our internal talent is groomed for the next level. In order to create value for our stakeholders we continue to invest in technology and adopt fair HR practices to empower our people creating a supportive environment. We continue to uphold high standards of governance with respect to all statutory compliance and regulatory requirements.

10. OUTLOOK OF THE COMPANY

We believe we are well-poised to capitalise on the healthy prospects of the industry and further solidify our position in the market. Our strong brand equity, disciplined investment philosophy and robust process, customer-centric approach, expansive reach, and healthy financials should facilitate our future growth.

Our strategic priorities include:

* Increase in Order-taking Appetite by augmenting our working capital base

Our business operations are working capital intensive. In order to effectively expand our products portfolio, Business arenas and also increase in the number of verticals and explore various geographical locations, along with the existing facilities we need to have access to a larger amount of liquid funds and sufficient working capital.

* Geographical Diversification

We cater to both, the domestic as well as international markets. We aim to further develop our domestic sales networks in two ways: firstly nurturing existing relationships with clients and secondly by creating new distribution channels in non-penetrated geographies considering various cities. We currently supply in the Haryana, Delhi, parts of Punjab, Himachal Pradesh, Eastern Uttar Pradesh, Orissa, and Jharkhand, parts of West Bengal, Andhra Pradesh and Nepal.

* Digital Marketing

We actively use social media and e-commerce for customer engagement, service provision and interaction with our vendors.

11. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The company is operating in only one segment. Therefore there is no requirement of Segment-wise Reporting.

12. SAFE HARBOUR

This report describing our activities, projections and expectations for the future, may contain certain _forward looking statements‘ within the meaning of applicable laws and regulations. The actual results of business may differ materially from those expressed or implied due to various risk factors and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company assumes no responsibility to publicly amend, modify or revise forward-looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include determination of tariff and such other charges and levies by the regulatory authority, changes in government regulations, tax laws, economic developments within the country and such other factors globally.

The financial statement are prepared under historical cost convention, on accrual basis of accounting, and inaccordance with the provisions of the Companies Act, 2013 (the Actl) and comply with the Accounting Standards notified under Section 133 of the Act. The management of Fabino Life Sciences Limited has used estimates and judgements relating to the financial statement on a prudent and reasonable basis, in order that the financial statement reflects in a true and fair manner, the profit for the year.