Socrus Bio Sciences Ltd Management Discussions

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31^st March, 2013.

The management discussion and analysis have included in consonance with the code of Corporate governance as approved by the securities Board of India (SEBI). Investors are cautioned that these discussions contain certain forward looking statements that involve Risk and uncertainties including those risks which are inherent in the companys growth and Strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this report consequent to new information or developments, events or otherwise.

The Management of the company is presenting herein the overview, opportunities and threats, initiatives by the company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.

OVERVIEW

The operations of the company are centered on pharma business, finance & investments and media activities The company deals in trading of major items like caustic soda, penta, Amino Compound and Thelic Anhydride and also software products like software for Accounting in Health insurance, software for gymnasium for bodybuilding, software for programme for Beauty and skin care, etc. the company is also involved in TV channel viz CARE TV.

INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian Media industry is a subject of national pride, interest and media hype. There has been tremendous growth in the media industry of late which can be attributable primarily by an increase in television viewer ship and improved realizations form television subscriptions and film exhibition. Due to some inherent problems the company presently not in comfort with actual media business. The company deals in sale of software, which are procured from outside Agencies which are used by consumers.

There has been tremendous growth in pharma industries also in India for the past few decades. It has a major share in the Indian economy as played by the Indian pharmaceutical industries. Under the pharmaceuticals division, the company deals in wholesale trading of chemicals, which are meant for industrial usage. Laboratories use mainly these chemicals.

Coming to the finance industry where the company is also involved, major developments have taken place for the past few decades in view of the fact that plethora of finance companies have come into existence with various finance products.

And there has been tremendous finance growth due to foreign collaboration, foreign equity participation etc. under finance division, trading in equity shares and stock is the main activity of the company as well as other financing activities.

OPPORTUNITIES AND THREATS:

1. There is a scope to become part of a larger group of larger group of satellite television channels due to diversification in media division

2. Several model of revenue can be improvised by expanding the business activities of the company.

3. Strong bonding with health industries.

4. One of the main businesses being in the finance related areas the company is exposed to credit risks which are inherent to type of business.

5. The company since involved in trading in software business for a very long time there are good prospects for expanding the further activities in this direction.

6. The company is also facing severe competition from other financial companies and software companies

INITIATIVES BY THE COMPANY

The company has taken following initiatives:

1. The efforts are on to reduce the transportation cost on purchasing activities.

2. Every effort is being made to locate new client base to boost software sales.

3. The company is endeavoring to penetrate into newer financial activities.

OUTLOOK

The company is mainly engaged in finance and business and software business. The company is planning to expand and diversify the activities in the line and E-Cinema to top higher revenues.

Further, the company is also contemplating to usher in new areas of development in financial activities.

The Board of Directors of the company envisaging to augment the investment base of the company through participation in various equity debt, bond market and mutual funds with a view to earn good returns to the company

RISK AND CONCERNS

Due to stiff competitions in the software/finance field where the companies activities are centered on, the overall margins are under pressure.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has a strong Management audit framework. The Audit committee of Promoters directors & Independent Directors. The Audit committee meets every quarter to review compliances which are as under:

Compliance of the company with applicable statutes, policies - procedures, listing requirements and management guidelines.

All transactions are being accurately recorded and verified.

Adherence to applicable accounting standards and policies.

HUMAN RESOURCES/INDUSTRY RELATIONS

The company provides excellent working environment so that the individual staff can reach his/her full potential.

The company is poised to take on the challenges and March towards accomplishing its mission with success.

CAUTIONARY STATEMENT

Statement in the Management Discussion and analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statement. Several factors could make significant difference to the companys operation. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities etc. over which the company does not have any control.