Indrayani Biotech Ltd Management Discussions.

OVERVIEW GLOBAL ECONOMY

Global growth is projected to raise from an estimated 2.9 percent in 2019 to 3.3 percent in 2020 and 3.4 per cent for 2021 a downward revision of 0.1 percentage point for 2019 and 2020 and 0.2 for 2021. After slowing sharply in the last three quarters of 2018, the pace of global economic activity remains weak. Momentum in manufacturing activity, in particular, has weakened substantially, to levels not seen since the global financial crisis. Rising trade and geopolitical tensions have increased uncertainty about the future of the global trading system and international cooperation more generally, taking a toll on business confidence, investment decisions, and global trade

The COVID-19 pandemic is inflicting high and rising human costs worldwide, and the necessary protection measures are severely impacting economic activity. As a result of the pandemic, the global economy is projected to contract sharply by -3 percent in 2020, much worse than during the 2008-09 financial crises. In a baseline scenario-- which assumes that the pandemic fades in the second half of 2020 and containment efforts can be gradually unwound-the global economy is projected to grow by 5.8 per cent in 2021 as economic activity normalizes, helped by policy support. The risks for even more severe outcomes, however, are substantial. Effective policies are essential to forestall the possibility of worse outcomes, and the necessary measures to reduce contagion and protect lives are an important investment in long-term human and economic health. Because the economic fallout is acute in specific sectors, policymakers will need to implement substantial targeted fiscal, monetary, and financial market measures to support affected households and businesses domestically.

INDIAN ECONOMY

Global headwinds and challenges in the domestic financial sector moderated the growth of Indian economy in 2019-20. The real GDP growth moderated to 5.0 percent in 2019-20 as compared to 6.8 percent in 2018-19. Despite a temporary moderation in the Gross Domestic Product (GDP) growth in 2019-20, the fundamentals of Indian economy remain strong and GDP growth is expected to rebound

Thrust on policy initiatives continued. FY 2019-20 saw consolidation of Public Sector Banks, which should strengthen the banking sector. Non-performing loans in the banking sector have come down to 9.3% from >10% before FY 2019-20. Resolution under the Insolvency and Bankruptcy Code (IBC) is bringing procedural predictability with higher recovery rates (43% in 2019 vs 14% in 2017). With continued policy initiatives, India further continued its climb in the Ease of Doing Business rankings,

climbing up 14 places to reach the 63rd rank. India is the only major country to have moved up by 67 places in just 4 years. FY 2019-20 also saw corporate tax cut being announced, further easing business environment. Government also announced significant rebates for new Government also announced significant rebates for manufacturing units to attract global supply chains. Outbreak of COVID-19 would make growth environment challenging in first half of FY 2020-21 but liquidity measures announced by the government should help provide support including the athamanir- bar initiative (Self Reliant India) would help in boosting the industrial sectors.

COMPANY OVERVIEW

Indrayani Biotech Limited was incorporated on 09th March, 1992. Pursuant to public announcement dated 02nd January, 2018 and subsequently open offer made by Mr. Kasiraman Sayee Sundar, the shareholding of the erstwhile promoters has been transferred to Mr. Kasiraman Sayee Sundar, new promoter of the Company. The Company is in foray of business aggregation and accordingly two unlisted public companies viz . Helios Solutions Limited, a pioneer in power electronics and A diet express hospitality Limited, an expert in industrial catering & services are in the final stage of amalgamation with Indrayani Biotech Limited. The amalgamation would give an overall boost to the Companys financial performance and economies of operation. Indrayani is also planning to invest in Vadim Infrastructure Private Limited an organisation providing engineering, procurement ,construction , commissioning, maintenance & services. The Company has two mega projects in pipeline and would be part of Indrayani in future

Indrayani is also venturing into health care to establish a chain of hospitals in the peripheries of cities pan India for performing cataract surgeries & other eye care services at minimal cost to cater to all the sections of the society. The Company is also in the process of manufacturing AOP Disinfection chamber using German technology which after validation would be supplied to all hospitals and other establishments where there is a reasonable turnaround of people.

Performance Discussion for the financial year 2019-2020

Compared to zero turnover last year, the Company has made a turnover of Rs. 50.18 lakhs and is looking forward to increase the same in two fold in the coming years.

KEY STRENGTH & WEAKNESSS STRENGTHS

1. Experienced Management team

Our management team consist of experienced and professionally qualified team to support the mission & vision of the Company

2. Diversified businesses with synergies in operation

Synergies across diverse businesses provide ability to drive growth, optimize capital efficiency and maintain competitive advantage. The Company also derives operational efficiencies by centralizing and sharing certain key functions across businesses such as finance, legal, information technology, strategy, procurement and human resources.

3. Strong Research & Development Capabilities

The Companys emphasis on R&D has been critical to its success and a differentiating factor from competitors. Dedicated R&D is undertaken in existing products, primarily with a focus to improve yields and process efficiencies. The Company also focuses on R&D efforts in areas where there is a significant growth potential

WEAKNESS

1. Covid 19 impact:

If covid 19 impacts continue for long time, it can lead to issues relating to unavailability of labour and restrictions in movements which can adversely affect the operations of the business

2. Variation in business:

The financial performance may also impacted by other risks such as inability to manage diversified operations, and dependency of utilization of services of third parties for our operations.

Internal Controls and Adequacy

The Company has in place an adequate system of internal control commensurate with the size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the prescribed policies and procedures of the Company. The Audit Committee and the management have reviewed the adequacy of the internal control systems and suitable steps are taken to improve the same.

Human Resource Development and Industrial Relations

Your Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset. Hence, the success of the Company is closely aligned with the goals of the human resources of the Company. Taking into this account, your Company continued to Invest in developing its human capital and establishing its brand on the market to attract and retain the best talent. Employee relations during the period under review continued to be healthy, cordial and harmonious at all levels and your Company is committed to maintaining good relations with the employees.

Cautionary Statement

Statements in the Management Discussion and Analysis, describing the Companys objective, projections, estimates, expectations, may be forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Important factors that could make a difference to the Companys operations include economic and political conditions in India and other countries in which the Company operates volatility in interest rates, changes in government regulations and policies, tax laws, statutes, and other incidental factors. The Company does not undertake to update these statements.