N G Industries Ltd Management Discussions

MANAGEMENT DISCUSSION & ANALYSIS

Our discussion & analysis may be perceived as repetitive over the years but constitutes the essence of wisdom about our field of operations as assimilated by us over two decades of experience.

A) INDUSTRY STRUCTURE & DEVELOPMENT:

Rising incomes in the hands of our citizens, increase in health awareness in society at large, increasing population of older citizens, new technologies in the sector, longer life expectancy, health insurance penetration and medical tourism are contributing to the growth in healthcare sector. The new health Insurance scheme announced by the union government, when fully implemented, will further increase penetration of insured healthcare in the country.

Covid-19 is an unprecedented, new, unknown, disruptive development which has hit globally as a whole including all countries, economies, sectors, companies and has affected in more ways than one can imagine and is still unfolding. The Company has released separate disclosure regarding impact of the pandemic and the challenges it has posed and same is available on our website under "Information & Circulars for Shareholders"

B) OPPORTUNITIES, THREATS, RISKS AND CONCERNS:

Opportunity for the Company are inherent in the sectors we operate in and are already covered in above paragraph (A).

Slowdown in economy, especially if, in the services or retail sector affects most businesses including healthcare. The healthcare business runs the risk of unfavorable publicity in case of unsuccessful treatment, translating into reduction of patient flow, risk of good professionals leaving the Company and it stands to lose years of, on job training and risk of independent Doctors beginning to refer patients elsewhere.

Healthcare establishments have faced mob violence and damage to property, increased litigation for award of compensation on sometimes frivolous grounds, doctors have been taken to Medical council for action on grounds of negligence etc. This challenge will have to be met by all, with more transparent and diligent services. The recent pandemic has also added to the major challenges in terms of employee attrition as well as professional changes being adopted by doctors as well as paramedical professionals. It is however too early to assess these challenges at the moment and the company however recognizes these issues as concerns.

The Company mitigates these risks, through adopting ethical practices, transparent dealings with patients and explaining to them, in plain layman language, the pros and cons of the treatment with realistic assessments of recovery. Quality surveillance and adherence to strict protocols also mitigates risks. The Company provides its professionals, a very good and challenging environment with continuous growth and also looks out to induct new and good professionals to keep strengthening its team. The Company has also adopted external quality audits as well as accreditations. To face competition, the Company keeps close interaction with Doctors and strives to keep services at levels meeting their standards. The Company is also continuously investing in newer technologies and equipment to stay ahead, in offering value added and superior quality of tests at affordable tariffs.

Short term adverse impact of Covid-19 has already been dealt with, in our disclosures available on our website under "Information & Circulars for Shareholders"

C) OUTLOOK:

Although the Company operates in an industry that is increasingly getting more competitive, the long-term outlook of your Company looks good on account of our adherence to quality of services, affordable tariffs and trust earned through over two decades of diligent service to citizens. The Company is facing challenges, to its image and credibility through consistent credible and transparent dealings and greater communication with patient families on all aspects of treatment. Covid-19 impact has been indicated in the Company Disclosures released separately and our experience during the current year will help us reorient our strategies and adapt ourselves to post Covid-19 ecosystem. Our, over two decades of trust and goodwill will help us move ahead and get the Companys operations back on track soon. Details with regard to Covid- 19 have already been dealt with in our disclosures available on our website under "Information & Circulars for Shareholders"

D) INTERNAL CONTROL:

Your Company has adequate internal control systems, which commensurate with its size of operations. Please see paragraph with heading ‘internal control systems and their adequacy in this report.

E) HUMAN RESOURCES/INDUSTRIAL RELATIONS:

Your Company has during the previous year continued to have cordial industrial relations with its employees. The number of employees of the Company at the end of the year was 77.

F) FINANCIAL AND OPERATIONAL PERFORMANCE:

Has been detailed already in this report.