Sang Froid Labs (India) Ltd Management Discussions.

a) Industry Structure and Developments

The Economic Survey 2015-16 had predicted the Indian economy to register the GDP growth rate in the range of 7 to 7.75 per cent in the year 2016-17. The economy was indeed treading along that path and clocked 7.2 per cent in the first half of the current financial year, as per the estimates released by the Central Statistics Office (CSO). However, consequent upon the radical measures initiated in November 2016 in the form of demonetization of Rs. 1000 and Rs. 500 currency notes, the Indian economy experienced a slowdown in the growth rate that could be lower than the first advance estimates of CSO. The first advance estimates released in early January 2017 were arrived at mainly based on data prior to demonetisation and largely reflect the economic situation prevailing in the first seven to eight months of the financial year. Even the likely reduction in the rate of real GDP growth of 1/4 percentage points to A percentage points relative to the baseline of about 7 per cent still makes India’s growth noteworthy given the weak and unsettled global economy which posted a growth rate of a little over 3 per cent in 2016.

Your Company has recently increased its business activities by providing trading, consultancies and marketing services for health care products. The Company will continue to explore the business opportunities in business sector for its future growth and development. As pharma industry is very vast it has many opportunities to be explored.

b) Opportunities and Threat

Looking to present optimistic environment in view of growth oriented Government policies related to trade, commerce and business, the future of your company is bright and hopeful. However, the Company continue to face competitive environment from the large investor company as well as price erosion and local unbranded generics producers are the major threats of the business

c) Segment wise Performance

The business of the company falls under a single segment.

d) Future Outlook

The management is confident of improvement in the demand of pharmaceutical in the near future with increase in the performance of pharmaceutical by general public and more trust put by the corporate in the publishing advertisements in the news paper as well as Television and by the way of internet.

e) Risks and Concerns

Our industry is mainly dependent on economic growth of country. The industrial growth is very sensitive which is dependent on many factors which may be social, financial, economic or political and also natural climatic conditions in the country.

f) Internal financial control and their adequacy

The Company has adequate systems of internal control 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 informations.

g) Financial Performance with respect to Operational Performance

The Company is presently non-operating. Further, the financial performance of the Company for the year 2016-17 is elsewhere in this report.

h) Material Developments in Human Resources and Industrial Relations Front

Your Company has undertaken employee’s development initiatives, which have very positive impact on the morale and team spirit of the employees. The company has continued to give special attentions to human resources and overall development

For and on behalf of Sang Froid Labs (India) Limited
Date: 28/08/2017 Mr. Rajeshbhai P Savaliya, Mr. Jitendra H Gohel
Place: Ahmedabad Director Director
(DIN : 07746573) (DIN : 03441639)