kamron laboratories ltd Management discussions

a. Industry Structure and Developments:

The pharmaceutical industry is growing. The companies having chronic therapy products have registered growth. In case of our company we have got acute therapy products. So we are watching the developments. When the economics improves, we are hopeful of improvement.

b. Opportunities and Threats:

The opportunities in healthcare industry are many. Even today, only less than 50% of the Countrys population has access to proper medical facilities. With the development of hospitals, the growth opportunities of pharmaceutical industry are large. However due to Pandemic and Lockdown result into sales degrowth & are a threat for sales growth.

c. Segment wise Performance:

The Company is operating in two segments, The Companys product portfolio comprises of pharmaceutical formulations and Nutraceuticals and Dietary.

d. Recent Trend and Future Outlook:

With the increase in availability of healthcare facilities, there will be an increase in demand for medicines and thus, the future looks promising.

e. Risks and Concerns:

The increase in market size may lead to increase in number of companies/competitors leading to increase in the competition.

f. Internal Control Systems and their Adequacy:

The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information.

g. Financial Performance with respect to Operational Performance:

The financial performance of the Company for the year 2021-22 is described in the Directors Report.

h. Material Developments in Human Resources and Industrial Relations Front:

Your Company has undertaken certain employees development initiatives, which have very positive impact on the morale and team spirit of the employees. The Company has continued to give special attention to Human Resources/Industrial Relations development. Industrial relations remained cordial throughout the year.

i. Key Financial Ratios:

Key Ratios	FY 2021-22	FY 2020-21	Change % if required	Explanation,
Debtors Turnover	0.89	4.20	78.81
Inventory Turnover	2.84	4.09	30.56	The company has substantially scaled down its business operations during the financial year under review which has been major cause for the variation in the ratios.
Interest Coverage Ratio	NA	NA	NA
Current Ratio	0.22	0.60	63.33
Debt Equity Ratio	NA	1.30
Operating Profit Margin (%)	NA	NA	NA
Net Profit Margin (%)	0.97	NA	NA
Return on Networth	0.28	3.28	(91.46)

j. Cautionary Statement:

Statement in this Management Discussion and Analysis Report, describing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.