Ishita Drugs & Industries Ltd Management Discussions.

GENERAL INFORMATION ABOUT THE COMPANY

The company is engaged in the business of manufacturing of various APIs (Active Pharma Ingredients) and drug intermediates. It has built up a reputation as a manufacturer of "high quality" products and is known for its ethical dealings in business. The company supplies its products to leading pharmaceutical companies of India. The products are also being exported to various countries across the world.

NATURE OF THE INDUSTRY

The Indian API industry has been facing a challenging business environment for last few years. With opening up of the Indian markets and signing of the WTO arrangement, the imported APIs and Intermediates became available at a very competitive price. This impacted the indigenous API and Intermediates manufacturers, who could not compete with the imported pricing. The Indian API industry has also been affected by stringent pollution control norms. Presently, almost 60-70% of total APIs consumed in India are imported. Over a period of time, the manufacturing capabilities & capacities for APIs in India has gone down. However, the present Govt. has recognized this fact and has af rmed its commitment to encourage domestic API industry by introducing special measures for its development.

OPPORTUNITY AND THREAT:

The biggest threat for the API industry is from imports. Other threats include requirement of resources for continuous up gradation of the facility as per the GMP standards. This is especially more important for small scale industries like your Company. However, with the Govt. focusing on the API industry, it is likely to come out with some measures to encourage the domestic API industry. Your company, with its built up reserves and debt free status, is in a good position to take advantage of any such measures declared by the Govt.

FUTURE OUTLOOK:

The managements opinion on the future outlook for the Company is given under the Directors Report forming part of the Annual Report of the company.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has adequate and effective internal controls to provide reasonable assurance on achievement of its operational, compliance and reporting objectives.

The Company has deployed controls through its policies and procedures. It helps the Management to accomplish its objectives by bringing a systematic and disciplined approach to improve the effectiveness of risk management towards good corporate governance. The Directors handle most of the day_to_day functions. The Directors are regularly looking after all the key areas of the operations.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The managements view on the business operations and nancial performance of the company, including export performance and earnings, is given under the Directors Report forming part of the Annual Report of the company.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Companys operations are managed by technically and educationally quali ed staff at all levels, who in turn are guided and supervised by the Directors of the Company. During the year under review, the company has increased the number of employees to better look after the various operations and to prepare for a better growth in the future.

26 ANNUAL REPORT 2018-19

CAUTIONARY STATEMENT:

Statement in the Management Discussion and Analysis, describing the Companys objective, projections and estimates are forward looking statements and progressive within the meaning of applicable security Laws and Regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors.

DECLARATION OF COMPLIANCE WITH THE CODE OF

CONDUCT

I hereby con rm that the company has obtained from all the members of the Board and employees at senior management level, af rmation that they have complied with the code of conduct for Board of Directors and senior management level employees.

For and on behalf of the Board
Sd/-
Place: Ahmedabad Jagdish Agrawal
th
Dated: 29 May, 2019 Managing Director