Maitri Enterprises Ltd Management Discussions.

a. Industry Structure and Developments:

The global pharmaceutical industry is one of the largest industries in the world. Further Indian Pharmaceutical Industry is the largest provider of cost-e_ective generic drugs globally. India is likely to be among the top Pharmaceuticals by incremental growth. The domestic pharmaceutical industry includes a large network of drug companies and manufacturing units and enjoys an important position in the global pharmaceuticals sector. According to the Indian Economic Survey 2021, the domestic market is expected to grow 3 times in the next decade.

b. Opportunities and Threats:

Your Company will be able to grow with rapidly expanding domestic market. It is estimated that our products will retain a reasonable market share and premium pricing in coming years with different opportunities in untapped markets. It has succeeded in helping society and providing various Sanitizing solutions, CORONA safety combo packs, service of sanitizing various places which safely eliminates COVID-19 and other life-threatening viruses.

To maintain our strong position as supplier of high quality, affordable and accessible medicines has become challenging due to unorganized players, continuous increase in the raw material input costs, recent compliance, increased competition However, we believe that owing to our strong fundamentals, new age technology and capabilities, achieving selffireliance we can embrace and overcome these challenges and build new capabilities

c. Segment wise Performance:

Your company is primarily carrying on pharmaceutical business along with Manufacturing of metal furniture and trading of building materials. 98.11% turnover of the Company is from Pharmaceutical business and hence, there is no need of reporting segment wise performance.

d. Recent Trend and Future Outlook:

Your Company is continuously working on strengthening its capabilities and fundamentals and driving_out potential ine_ciencies. It has made consistent efforts for executing job order work. We are also planning to use E-commerce which will create new footprints. Major innovations and technological advancements will also aid to increase the magnitude and growth of our company. The pharma industry is predicted to grow substantially in the decades ahead.

e. Risks and Concerns:

Due to prevailing market conditions and competition, input costs adverse impact in noticed on your Company’s profitability. Your management is aware about the risk related to the business activity of your Company and has taken proper steps for identification, monitoring the risk and strengthening the governance framework to achieve key business objectives.

F. Internal Control Systems and their Adequacy:

Your 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.

Sr. No. Particulars Ratios for F.Y.
20-21 (in times) 19-20 (in times)
1. Debtors Turnover 2.90 5.78
Formula Debtors Turnover Ratio = Net Credit Sales/Average Account Receivable
Definition The Debtors Turnover Ratio also called as Receivables Turnover Ratio shows how quickly the credit sales are converted into the cash. This ratio measures the efficiency of a firm in managing and collecting the credit issued to the customers
2. Inventory Turnover 1.40 2.84
Formula Inventory Turnover= Sales/Inventory
Definition Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period. A company can then divide the days in the period by the inventory turnover formula to calculate the days it takes to sell the inventory on hand
3. Interest Coverage Ratio 0.16 0.05
Formula Interest Coverage Ratio= Interest Expense/ EBIT
Definition The interest coverage ratio measures how many times a company can cover its current interest payment with its available earnings. The ratio is calculated by dividing a companys earnings before interest and taxes (EBIT) by the companys interest expenses for the same period.
4. Current Ratio 1.31 1.37
Formula Current Ratio=Current assets/ Current liability
Definition The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It compares a firms current assets to its current liabilities, and is expressed as follows: The current ratio is an indication of a firms liquidity.
5. Debt Equity Ratio 0.20 0.06
Formula Debt Equity Ratio = Debt/Total Equity
Definition The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders equity and debt used to finance a companys assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage.
6. Operating Profit Margin 0.02 0.02
Formula Operating profit margin = Operating income Total revenue
Definition In business, operating margin—also known as operating income margin, operating profit margin, EBIT margin and return on sales —is the ratio of operating income to net sales, usually presented in percent. Net profit measures the profitability of ventures after accounting for all costs.
7. Net Profit Margin 0.02 0.03
Formula Net Profit Margin = Net Profit / Sales
Definition The net profit percentage is the ratio of after-tax profits to net sales. It reveals the remaining profit after all costs of production, administration, and financing have been deducted from sales, and income taxes recognized.

g. Financial Performance with respect to Operational Performance:

The financial performance of your Company for the year 2020-21 will be described in the Directors’ Report.

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

Your company is successful in maintaining and retaining a workforce characterized by good physical, psychological, and mental health. It also addresses the efficacy of various intervention strategies in reducing employee stress, and their implications for organizational practices and human resource policies.

i. Cautionary Statement:

Statement in this Management Discussion and Analysis Report, describing the Company’s 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.

By order of Board of Directors
Dated: 13th August, 2021 CHAIRMAN
DIN: 02427779