Parmax Pharma Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS:

Economic Scenario:

Anticipating a Global Reboot of the Economy

As per the International Monetary Fund (IMF), the global economy is estimated to grow by 5.5% in 2021 and 4.2% in 2022. The projection comes on the back of vaccine approvals, which is expected to spur the economy later this year. However, the effectiveness of policy support and access to medical interventions will determine the extent of recovery in different countries. This years estimated growth follows a severe economic collapse in 2020 that has adversely impacted people globally. Based on the World Economic Outlook Update1 , the global growth contraction for 2020, estimated at -3.5%, was 0.9 percentage point higher than the growth estimated in the previous forecast, driven by a stronger than expected reboot in the second half of 2020. We believe strong multilateral cooperation will form the basis of bringing the pandemic under control everywhere. Increasing funding for equitable access to COVID-19 vaccines for all countries, ensuring global distribution, and facilitating the therapeutics at affordable rates are essential measures to rein in COVID-19. Several countries, mainly the low-income developing economies, set foot into the crisis with a huge debt, which is expected to rise even further due to the pandemic. Therefore, there is a need for the global community to work collaboratively and ensure adequate access to international liquidity to help these countries.

Trends Impacting the Global Pharmaceutical Sector COVID-19 has impacted health and disease patterns and brought changes to several aspects of the pharmaceutical industry. Some of the emerging trends are highlighted below:

1. Demand for digital transformation

2. Advancements in technology and increasing R&D spends

3. Need for a new understanding of diseases

4. Affordable pricing and improved market access

5. Building a cohesive regulatory framework Demand for Digital Transformation

Since the onset of artificial intelligence (AI) and the data science revolution a few years ago, healthcare has consistently lagged in adoption, compared to other sectors, in leveraging these technologies. Noticeable trends that underscore the need for digital healthcare are evident, with COVID-19 further proving that health consultations can be

This Management Discussion and Analysis statement of the Annual Report has been included in adherence to the spirit enunciated in the code of corporate governance approved by the Securities and Exchange Board of India. Statement in the Management Discussion and Analysis describing Companys objectives, projections, estimates, expectation may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual result could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include economic conditions affecting demand/supply and price conditions in the Government regulations, tax laws and other status and other incidental factors. Further, the discussion following herein reflects the perceptions on major issues as on date and the opinion expressed here are subject to change without notice. The Company undertakes no obligations to publicly update or revise any of the opinions of forward looking statements expressed in this report, consequent to new information future events, or otherwise.

Readers are hence cautioned not to place undue reliance on these statements and are advised to conduct their own investigation and analysis of the information contained or referred to this statement before taking any action with regard to specific objectives.

RISK MANAGEMENT:

A. Risk Management Committee

The Company has not constituted any risk management committee. However the Board as and when required reviews the Risk Management Policy.

B. Major risks affecting the existence of the company Business Risk

• Operating Environment

• Ownership Structure

• Competitive position

• Management, Systems and Strategy, governance structure

Financial Risk

• Asset Quality

• Liquidity

• Profitability

• Capital Adequacy

C. Steps taken to mitigate the risks:

Company has framed formal risk management policy. However Board of directors are constantly trying to avoid the risks by way of planning, developing strategies to remain in the market, reviewing government policies and procedures, and doing marketing activities to remain in the market.