Pochiraju Industries Ltd Management Discussions

Managements Discussion and Analysis of Financial Condition and Results of Operation.

Your company is engaged in three core businesses viz. Agriculture, Pharmaceuticals and Bio Pharma.

The company has no operations presently due to the SARFEASI action by its bankers PNB. As informed the company was ready with about 10 molecules for commercial production. To commercialize all the products and for a viable commercial scale operations, the company has to complete the phase II of the bio-pharma division. But due to the denial of the additional term loan request by the bankers Phase II could not be completed resulting in present crisis.

Internal Control Systems and their Adequacy

The company has an adequate internal control system commensurate with the size and complexity of the organization. The company has undertaken a comprehensive review of all internal control systems to take care of the needs of the expanding size of the company. The Audit Committee periodically reviews the adequacy of the internal audit functions.

We have been continuously upgrading our production technologies for improving efficiency.

Discussions of financial performance with respect to operational performance

1. Shareholders Fund:

The company has an authorized capital of Rs.25 Crores comprising of 250 lakhs equity shares of Rs. 10/- each. The company has a paid-up capital of Rs.18.90 Crores.

2. Secured Loan:

The company has an outstanding term loan liability including interest of Rs.4851.06 lakhs with Punjab National Bank as on 31^st March 2015 the date of NPA.

3. Revenue:

The company has generated net revenues of Rs NIL lakhs with a PAT of Rs (4742.3)

I. Material development in Human Resources / Industrial Relations front including number of people employed:

The industrial relations have been cordial. The company constantly reviews the man power requirements and has a properly equipped department to take care of the requirements. The total number of people employed by the company presently in all its divisions on an average 3 .

Cautionary Statement:

Statement in the Management Discussion and Analysis describing the companys objectives, projections estimates and expectation may be forward looking statements within the meaning applicable securities laws and regulations. Further the discussion on risks, concerns, opportunities etc are valid only at the time of making statements. A variety of factors known/unknown expected or otherwise may influence the financial results. These statements are not expected to be updated or revised to take care of any changes in the underlying presumptions.