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-effective generic medicines to the developed world. India is likely to be among the top Pharmaceuticals by incremental growth.

b. Opportunities and Threats:

Your Company will be able to place itself in a strong position by expanding strategically, increasing its capacities and enhancing capacities across the organization. It is having vide spread business in trading of pharmaceutical products and related services and it is looking at different opportunities in untapped markets and also across a value chain. It has started providing Sanitizing solutions, CORONA safety combo packs, service of sanitizing various places which safely eliminates COVID-19 and other life-threatening viruses. Your Company is confident to have better performance.

The industry continues to be plagued by low quality, unorganized players who continue to sell their products without quality standards. Another challenge due to COVID 19 outbreak is the continuous increase in the raw material input costs which increases the pressure on the profitability of your Company. As a result, we are forced to increase price of our products although the price increase are not as high as the cost increase, resulting in greater pressures for process efficiency on your Company.

c. Segment wise Performance:

Your company is primarily carrying on pharmaceutical business along with Manufacturing of metal furniture and trading of building materials. 92.99% 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 the business. It has been making consistent efforts for executing job order work. Your Company is positive of increasing its market share through long-term growth opportunities in its existing products, acquisition of new customers and introduction of new products. The sector in which the Company has been operating is developing faster and provides ample growth opportunities.

e. Risks and Concerns:

Due to COVID 19 Domestic and international market conditions would be the only risk which may be faced by your Company apart from input costs which are causing adverse impact on your Companys 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 strengthens the governance framework to achieve key business objectives. Your Company perceives risks or concerns common to industry such as concerns related to the Global Economic fallout, Regulatory risks, Foreign Exchange volatilities, Higher Interest rates, and other commercial & business related risks.

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.

f. Ratios

Sr. Particulars

Ratios for F.Y.

No. 19-20 18-19
(in times) (in times)
1. Formula Debtors Turnover Debtors Turnover Ratio = Net Credit Sales/Average Account Receivable 5.78 4.24
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. Formula Definition Inventory Turnover Inventory Turnover= Sales/Inventory 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 2.84 2.97
3. Formula Definition Interest Coverage Ratio Interest Coverage Ratio= Interest Expense/ EBIT 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. 0.05 0.47
4. Formula Current Ratio Current Ratio=Current assets/ Current liability 1.37 1.38
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. Formula Definition Debt Equity Ratio Debt Equity Ratio = Debt/Total Equity 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. 0.06 0.00
6. Formula Definition Operating Profit Margin Operating profit margin = Operating income Total revenue 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. 0.02 0.00
7. Formula Definition Net Profit Margin Net Profit Margin = Net Profit / Sales 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. 0.03 0.00

g. Financial Performance with respect to Operational Performance:

The financial performance of your Company for the year 2019-20 will be described in the Directors Report.

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

Your Company has always acknowledged importance of its human capital and fundamental source of its success. Consequently, it has enabled it to acquire, develop, motivate and maintain its skilled human resource. The Company has continued to give special attention to Human Resources/Industrial Relations development. Industrial relations remained cordial throughout the year. Each year, the Company continues to invest in its people development with a tailored set of programmes. These activities will lead to a more informed and motivated sales team.

i. 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.

Date: 31st August, 2020 For and on behalf of the Board
(DIN: 02427779)