maximaa systems ltd share price Management discussions

INDUSTRY STRUCTURE DEVELOPMENTS AND OUTLOOK:

The Indian Storage and Pharma Industry is one of the leading Pharma industries in the world. Indian Storage and Pharma Industry largely depend upon the manufacturing and export. Storage and Pharma Industry has made a major contribution to the national economy in terms of direct and indirect employment generation and net foreign exchange earnings.

The Members are aware about the Company entered into Pharmaceutical Sector and with its excellent Manufacturing Unit have tremendously increased the production and distribution and selling of

PROYURVEDA range of products. PLPL was incorporated to promote and sell the Companys premium and patended "Proyurveda" range of products through OTC (Over the Counter) Marketing Route. OTC Market contributes more than 20 % of the total pharmaceutical revenue of the Country. The Company has ambitious plans and within two years will sell the products all across the country.

Demand (both domestic as well as international) for Pharma and Storage Systems remains satisfactory. The Company is optimistic and very confident about the future prospects. And further the company has a clear objective to enhance the sales volumes in the domestic as well as international market.

STRENGTHS & OUTLOOK ON OPPORTUNITIES:

Since the Company is now investing in Pharma Segment and having cutting edge technology of Probiotic which is protected by way of patents worldwide, Company will have a strong presence and favourable position in all around the world. (National & Global Market).

PERFORMANCE AND BUSINESS REVIEW:

A. Financial Performance:

During the year, Companys sales continued to decline and it made losses. The Company witnessed lower level of operations due to working capital constraints. The revenue from operations has been decreased by approximately 20% in this year. The Company is looking forward to increase consumer confidence and grow market consumption along with other cost cutting measures including better finance control, working capital management, etc.

B. Overall Performance:

The overall performance during the year 2019-20 was not satisfactory due to sluggish demand and increase in cost. The details of entire financial performance is given in Boards Report.

C. Business Review:

As compared to the earlier years, our company is setting for the negative growth. Despite competition at global level, there are positive signs for efficient and innovative companies and your companies is set to and your company is set to follow the best practices to perform well.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

Segment wise performance together with discussion on financial performance with reference to operational performance has been dealt with in the Directors Report which should be treated as forming part of this Management Discussion and Analysis.

RISK MANAGEMENT:

The Company has national as well global business interests and is exposed to business risks which may be internal as well as external. The Company has a comprehensive risk management system in place, which enables it to recognize and analyze risks early and to take the appropriate action.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Company has in place a well-defined organizational structure and adequate internal controls for efficient operations. The team has in place internal policies, and is aware of applicable laws and regulations, particularly those related to protection of intellectual property, resources and assets, and the accurate reporting of financial transactions.

The Company has a proper and adequate system of internal control in all spheres of its activities to ensure that all its assets are safeguarded and protected against loss from unauthorized use or disposition and that the transactions are authorized, recorded and reported diligently. The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines.

KEY FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018)(Amendment) Regulations, 2018, the company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios.

Particulars	F.Y. 2019-20	F.Y. 2018-19
Debtors Turnover Ratio	0.95	1.72
Inventory Turnover Ratio	1.90	044
Interest Coverge Ratio	-29	-29.07
Net Profit Margin	-517	-2.5
Current Ratio	0.57	1.3
Return on Capital Employed	-4	0.03
Return on Networth	-1.54	1.1

HUMAN RESOURCE DEVELOPMENT:

Your Company gives utmost importance to Human Resource. It considers Human Resource as Human Capital and believes in development of Human Resource. Over the years, your Company has developed an environment, which fosters excellence in performance by empowering its people, who are always on continuous improvement path with an ultimate aim to add value to their intellectual and knowledge resources. The key focus is to attract, retain and develop talent as a resource through rewards mechanism, performance evaluation and harmonious & constructive working climate.

The Management recognizes that HR is the core of the Company, influencing change, building culture and capabilities. The HR processes are continuously evolving and aligning with the changing business requirements. The Company provides congenial work environment, performance oriented work culture, knowledge acquisition/dissemination, creativity and responsibility. The Company enjoys cordial relations with the employees at all levels.

EMPLOYEE RELATIONS:

Peaceful and cordial relations continue with the employees of the Company. The Management wishes to place on record its acknowledgement and appreciation for the support extended by all the employees of the Company.

CAUTIONARY STATEMENT:

The Statements in this Management Discussion and Analysis Report could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts its business and other incidental factors.

RESPONSIBILITY FOR THE MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

The Board of Directors have reviewed the Management Discussion and Analysis Report prepared by the Management, and the Independent Auditors have noted its contents. Statement in this report of the Companys objective, projections, estimates, exceptions, and predictions are forward looking statements subject to the applicable laws and regulations. The statements may be subjected to certain risks and uncertainties. Companys operations are affected by many external and internal factors which are beyond the control of the management. Thus the actual situation may differ from those expressed or implied. The Company assumes no responsibility in respect of forward looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.

By Order of the Board

For MAXIMAA SYSTEMS LIMITED

Sd / -

Mr. Manoj Shah

Chairman and Managing Director

DIN: 00017594

Date: 31/07/2020