Sunil Healthcare Ltd Management Discussions

The drugs and pharmaceutical exports from the country have seen a growth of 2.13% per cent year on year at $31.12 billion during the year 2025-26, as compared to $30.47 billion previous fiscal year. Pharmaceutical exports include bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products, surgical and Vaccines.

India accounts for 60% of global vaccine production, contributing up to 70% of the WHO demand for Diphtheria, Tetanus and Pertussis (DPT) and Bacillus Calmette-Guerin (BCG) vaccines, and 90% of the WHO demand for the measles vaccine. India supplies over 50% of Africas requirement for generics, ~40% of generic demand in the US and ~25% of all medicine in the UK.

The Indian nation is the largest provider of generic medicines globally, occupying a 20% share in global supply by volume, and is the leading vaccine manufacturer globally. India is known as the "pharmacy of the world" due to the low cost and high quality of its medicines.

It was no surprise that the Indian companies dominating the ANDA approvals, with near about 50 percent of total ANDA approvals. India was followed by the US, China, Europe, and Israel, in that order, in the number of ANDA approvals.

India is the largest provider of generic drugs globally. India exports Pharmaceuticals to over 200 countries. Over 50% of Africas requirement for generics, nearly 40% of generic demand in the US and approximately 25% of all medicine in the UK is supplied by India.

Indias biotechnology industry comprises biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics. Indias biotechnology sector is witnessing remarkable growth, with the countrys bioeconomy now valued at USD 195 billion but there is still significant untapped potential in innovation and product development, which could further elevate Indias global standing in the sector. The growth of the industry would be driven by the increasing demand for vaccines and biopharmaceuticals in the domestic and international markets. The industry is expecting to reach a market value of USD 300 billion by 2030.

With a highly skilled workforce, technological advancements and Sales affected by the pandemic normalizing, Indian pharma industry is expected to grow at CAGR 10.70% in the forecast period of 2024-2029.

Globally as well as in India, the pharmaceutical industry is rapidly undergoing changes. The Indian pharmaceuticals market is the third largest in terms of volume and fourteenth largest in terms of value. India has the largest number of USFDA-compliant pharmaceutical plants outside the US and over 2000 WHO-GMP approved facilities, serving demand from 150+ counties worldwide, with 10500+ manufacturing facilities. India enjoys an important position in the global pharmaceuticals sector.

Installed capacity of Empty Hard Gelatin Capsule in India is around 100 billion capsule p.a.

The global empty capsules market size was valued at USD 3.67 billion in 2025. The market is projected to grow from USD 3.91 billion in 2026 to USD 6.58 billion by 2034, exhibiting a CAGR of 6.74% during the forecast period. North America dominated the empty capsules market with a market share of 33.66% in 2025. India has been traditionally quite resourceful in the pharma sector, with a low cost of manufacturing (30-35% lower than in the US and Europe), cost-efficient R&D (about 87% less than in developed markets), and efficient and cost effective skilled labor.

The advantage to Indian Pharmaceutical Industry is shown as per the Objectives, vision and roadmap of Indian Pharma Vision 2030 and 2047 and with the help of chart as mentioned below:

• Emerge as an innovation leader to build a globally recognized position for India:

• Become the worlds largest and most reliable drug supplier and reach USD ~120-130 billion by 2030:

• Contribute significantly to the growth of the Indian economy

• Vishwaguruin innovation & Research for delivering health care products to future generations in a sustainable manner, introducing natural products

• Ensure accessibility & affordability of patient-centric products for better healthcare outcomes for universal health coverage, by building upon partnerships across industry, science and governments

• Contribute to Health System to attain union of equity, efficacy, and efficiency towards developing holistic products profile, with focus on NCDs, AMR, and rare & neglected diseases

• Create equilibrium between social, economic, & governance aspects through facilitative, balanced & progressive policy and regulatory framework

• Reduce Indias carbon footprint in Pharma-MedTech to align with Honble PMs vision of "Panchamrita"

• Identifying critical suppliers, de-risking & decarbonising the supply chain, and promoting local sourcing

• Medical Devices to be an integral part of global supply chains for raw material, components, spare parts, assemblies/subassemblies etc

• Digitization and technology upgradation in delivery of services & products under Jan Aushadhi Pariyojana.

The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level. Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

The UN-backed Medicines Patent Pool (MPP) exists to help people in low- and middle-income countries (LMICs) live longer and healthier lives. This being done by driving down the costs of vital medicines and technology through licensing and technology transfer, and working closely with others in public health to ensure better access to the products and technologies that people in LMICs need. As per the MPP strategy for 2023-25, expecting 30 Million people have the access of MPP-licensed products each year up from 15 million annually by 2025. MPP will continue to target its historic set of diseases - HIV, viral Hepatitis and TB. Based on recent announcements in early 2026, the Medicines Patent PooL is launching its 2026-2030 strategy to focus on expanding access to essential medicines and health technologies, heavily prioritizing sustainability and regional manufacturing capabilities

Market Size

India is one of the biggest global suppliers of low-cost vaccines. 60 % of global vaccines are produced in India. India is a global leader in supply of DPT, BCG and Measles vaccines. We contribute up to 70 % of the WHO demand for Diphtheria, Tetanus and Pertussis (DPT) and Bacillus Calmette-Guerin (BCG) vaccines, and 90% of WHO demand for the measles vaccine.

India is also the largest provider of generic medicines globally, occupying a 20% share in global supply by volume. The industry manufactures about 60,000 different generic brands across 60 therapeutic categories.

India exports Pharmaceuticals to over 200 countries. Over 50% of Africas requirement for generics, nearly 40% of generic demand in the US and approximately 25% of all medicine in the UK is supplied by India.

Additionally, India has the highest number of US-FDA compliant Pharma plants outside of USA. India is home to more than 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities as well as a highly skilled resource pool.

Indias domestic pharmaceutical market was at US$ 42 billion in 2021, currently estimated value at US$ 60 billion. The total market size of the Indian pharma industry is expected to reach US$ 130 billion by 2030 and US$ 450 billion market by 2047.

Indias biotechnology industry comprises biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics. The Indian biotechnology industry is currently valued at US$ 195 billion and has the potential to reach US$ 300 billion by the year 2030. By 2025, the contribution of the Indian biotechnology industry to the global biotechnology market is expected to grow to 19%.

The drugs and pharmaceutical exports from the country have seen a growth of 2.13% per cent year on year at $31.12 billion during the year 2025-26, as compared to $30.47 billion previous fiscal year.

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with the potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.

FDI in Pharmaceuticals

Pharmaceutical is one of the top ten attractive sectors for foreign investment In India. 100% foreign investment is allowed under automatic route in Medical Devices. Foreign investments in pharmaceutical greenfield projects are allowed upto 100% under the automatic route and for brownfield pharmaceutical projects, foreign investment beyond 74% to upto 100% Government approval is required.

The Foreign Direct Investment (FDI) equity inflow into the drugs and pharmaceuticals sector in the country has reported a 74% growth during the first nine months of the fiscal year 2025-26, as compared to the same period of last year. The nine months from April to December, 2025, witnessed the FDI equity inflow into the sector at around $1.39 billion as compared to $800 million registered in the same period of FY25, according to official data. The cumulative FDI equity inflow into the sector from April, 2000 to December, 2025 stood at $24.81 billion, which is Rs. 1,54,389 crore in terms of Indian currency. In rupee terms, the growth during the first nine months ended December, 2025 was around 79%, at Rs. 12,008 crore, as compared to Rs. 6,705 crore reported in the same period of last year, according to the quarterly data on FDI inflow from the ministry of commerce and industry.

The growth for the sector during the nine months of FY26 comes when the overall FDI equity inflow during the period registered an 18% growth at $47.87 billion as compared to $40.67 billion registered in the same period of last year.

Government Initiatives

Some of the initiatives taken by the Government to promote the pharmaceutical sector in India are as follows:

(i) Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP)

INR700 Crore) Component B: Funding which is to be paid back later as royalty percentage on net sales after commercialization.

Some of the recent developments/investments in the Indian pharmaceutical sector are as follows:

> The Union Budget 2025-26 proposed to allocate Rs. 5,268.72 crore (US$ 602.90 million) for the Department of Pharmaceuticals (DoP), around 28.8% higher than the Rs. 4,089.95 crore (US$ 468.01 million) Budget Estimates (BE) for the FY25.

> In the interim budget 2024-25, the Government earmarked Rs. 1,000 crores (US$120 million) for the promotion of bulk dug parks for FY 25, as significant increase from the previous year. In this regard the sector has seen a lot of investments and developments in the recent past.

> According to an official statement, the governments production Linked Incentive (PLI) Scheme has turned out to be a transformative initiative for boosting domestic manufacturing, attracting investments, reducing reliance on imports and increasing exports. One of the significant achievements under the PLI Scheme has been the surpassing of target investments.

> The Investment under the PLI Scheme for Pharmaceuticals stands at Rs. 40,890 crore against a target of Rs. 17,274.96 crore as of September 2025.

Since its inception in 2021:

• Total sales have reached Rs. 3,16,797 crore up to September 2025.

• Exports account for Rs. 2,03,730 crore within these total sales.

• Approximately 97,000 persons, including contractual and apprentice workers, have been employed under the scheme as of September 2025.

> Under the PLI Scheme for Bulk Drugs (APIs/KSMs/DIs)

As of September 2025:

• Total manufacturing capacity of 55,100 metric tonnes per year has been established for 26 critical APIs/KSMs

• Cumulative sales since inception (2022) have reached Rs. 2,313.16 crore, including exports of Rs. 508.12 crore.

• Investments mobilised under the scheme stand at Rs. 4,763.34 crore against a target of Rs. 4,329.95crore.

• Employment for 4,929 persons has been generated under the scheme.

> Under the Scheme for Promotion of Bulk Drug Parks, as of February 2026, the total project cost of these parks is over Rs.6,306.68 crore, with Central assistance to the tune of Rs.1,000 crore each for creation of common infrastructure facilities (budgetary outlay of Rs.3,000 crore).

> Under the Scheme for Promotion of Research and Innovation in Pharma MedTech (PRIP): Under Component A, 7 Centres of Excellence have been established, one at each National Institute of Pharmaceutical Education and Research, with an overall outlay of Rs. 700 crore. As of November 2025, 111 research projects have been approved, 46 research papers have been published, and 6 patents have been filed under the Centres of Excellence. Under Component B, financial assistance is provided to industries, MSMEs, and start-ups for research in identified priority areas in the Pharma MedTech sector.

> Under the The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) scheme, as of March

2026, over 18,646 Jan Aushadhi Kendras (JAKs) as of 28.02.2026 are operational. The product basket comprises 2,110 medicines, 315 medical devices, and consumables covering 29 therapeutic groups. Jan Aushadhi Suvidha Sanitary Napkins are available at Rs. 1 per pad, with over 100 crore pads sold till 31.01.2026. Out of this, over 22.50 crore Jan Aushadhi Suvidha Sanitary Pads have been sold in the FY 2025-26 till 31.01.2026. In 2024-25, sales of Rs. 2,022.47 crore resulted in estimated savings of about Rs. 8,000 crore for citizens. In 2025-26, up to 30 November 2025, sales of Rs. 1,409.32 crore have led to savings of approximately Rs. 5,637 crore for citizens.

Road Ahead

The pharmaceutical industry in India is a significant part of the nations foreign trade and offers lucrative potential for investors. Millions of people around the world receive affordable and inexpensive generic medicines from India, which also runs a sizable number of plants that adhere to food Manufacturing practices standards set by the WHO and USFDA. Among nations that produce pharmaceuticals, India has long held the top post.

Medicine spending in India is growing at the rate of 9-12 per cent per annum, leading India to become one of the top 10 countries in terms of medicine spending.

Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, antidepressants and anti-cancers that are on the rise.

Indian Government has taken many steps to reduce costs and bring down healthcare expenses.

The National Health Protection Scheme which aims to offer universal healthcare, the ageing population, the rise in chronic diseases and other government programmes, including the opening of pharmacies that offer generic medications, should all contribute to boost the Indian pharmaceutical industry.

Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian Pharmaceutical companies. In addition, the thrust on rural heath programmes, life saving drugs and preventive vaccines also augurs well for the pharmaceutical companies.

Indias domestic pharmaceutical market was at US$ 42 billion in 2021, currently estimated value at US$ 60 billion. The total market size of the Indian pharma industry is expected to reach US$ 130 billion by 2030 and US$ 450 billion market by 2047.

Formulation exports typically contribute about half of the total revenue of domestic pharmaceutical players, with sales to the US and rest of world contributing almost equally having lot of potential to grow as per the above-said future projection of Indian pharmaceutical market.

The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programs, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.

3. OPPORTUNITIES:

In meeting the global health challenge, the role of the pharmaceutical industry is of prime importance. With the current state of affairs, its a harsh reminder of whats at stake and its responsibility.

Domestic pharmaceutical companies which were largely recognized for their affordable manufacturing of generic medicines are now being recognized for its high-quality research and development ecosystem post Covid-19, a remarkable perception shift from being a volume manufacturer to value creator. India is ranked third worldwide for production by volume, accounting for 20% of the global volume supply.

According to EY FICCI report, as there has been a growing consensus over providing new innovative therapies to patients, Indian pharmaceutical market is estimated to touch $130 billion in value by the end of 2030. The total market size of the Indian pharma industry is expected to reach US$ 450 billion market by 2047 to become the leading provider of medicines to the world.

The global pharmaceutical market has experienced significant growth in recent years. The pharmaceutical market has witnessed significant growth, reaching a valuation of over USD 1.7 trillion in 2024, with a steady CAGR of 5.79%. The global pharmaceutical market size was estimated at USD 1,737.97 billion in 2025 and is projected to reach USD 2,776.74 billion by 2033, growing at a CAGR of 6.08% from 2026 to 2033. The increasing prevalence of chronic and infectious diseases is a primary factor accelerating the market expansion.

As India steps into 2026, the Indian pharmaceutical industry stands on a solid footing, marked by resilience, strategic clarity, and sustained momentum. The sector has continued to demonstrate its strength as a reliable and competitive partner in global healthcare, reinforcing confidence across domestic and international markets.

Looking ahead to 2026, Indian pharma is well-positioned to sustain growth, driven by robust domestic demand, stable export performance, and a steady transition towards complex generics, biosimilars, and specialty products. More importantly, 2025 marked a structural reset in the industrys growth narrative. While cost competitiveness and leadership in generics remain foundational strengths, the sector is increasingly being shaped by quality upgradation, innovation-led value creation, and closer alignment with global regulatory standards. This transition is laying the groundwork for a more durable and differentiated growth path as Indian pharma enters the next phase of its evolution.

Indian Pharmaceutical Alliance, several initiatives and forward-looking policies were introduced to streamline processes, allowing the pharmaceutical sector to leapfrog to a stronger growth trajectory. "Despite geopolitical issues, India continued to supply medicines to over 200 countries, living up to its reputation as the pharmacy of the world. The sector also faced challenges this year, however, as the industry expands its footprint around the world, it will need to continuously invest in upgrading manufacturing standards to keep its promise of being a high-quality, reliable supplier of medicines to the world,"

In the 2020-2030 period, it is expected that Indian pharma industry to grow at a compounded annual growth rate (CAGR) of ~12% to reach at US$130 bn by 2030 from US$41.7 bn in 2020. Though the pharmaceutical industry has grown at a CAGR of approx. 13% over the two decades, on the domestic front, the ambition translates into a growth rate of 10-11% over the coming decade.

The main reason for growth are i) India has most US-FDA compliant plant outside US. ii) Government support in Innovation and R&D iii) strong drugs manufacturing experts at lower cost of manufacturing in India i.e. about 33% lower than US and iv) Lauch of National Health Programme Ayushman Bharat has potential to grow Indian Pharma Sector etc.

In recent years, India has seen increasing competition from China, which it has been able to leverage due to its inherent cost advantage, manufacturing intermediates and APIs at a cost much lower than those in India.

Prime Minister for promoting make in India movement announced to the people become to vocal for local products. In response to the COVID-19 crisis, Indias Union Cabinet approved investment package to boost the countrys Pharma and API production and cut dependence on China. This was a major step in the creation of a self-sufficient healthcare ecosystem in the country.

It is expected that due to patent off of many companies, the export from India will grow, new affordable pharmaceutical product will be invented for sustainable growth of Indian Pharmaceutical industry. It is also expected Indias formulation exports to increase at 13-14% CAGR.

"The key to success, going forward, will depend on regulatory simplification, increased industry-academia collaboration, and strengthening innovation mindset. This will pave the way for the industry to transition from "Volume" to "Value" leadership in the years to come,".

4. CHALLENGES:

Competition in the global market is a common phenomenon for any industry. The company is also facing the same but is quite competent to handle the competition successfully. In the domestic the numbers of players are increasing and the capacity is also increasing, but market demand is also gradually increasing. The main challenges is to cope up with price war situation and the policies decision of Importing Countries from India, especially the imposition of Tariff by US, recent geopolitical tension of West Asia war on India and other Countries, Continuous Russia-Ukraine war. Further, Regulatory framework w.r.t. import restriction from China, on which Indian Pharmaceutical Sector majorly dependent on it is one of the great challenges, and combating with the same your Company is already in process of developing supplier of its Raw material from other Countries and also at domestic level.

5. COMPANY OUTLOOK:

Your company is the one of the leading Hard shell capsule manufacturer in India and Pioneer in double lock and triple lock technology for capsules in India. The Company had started production of HPMC Capsule in August 2018 and in short span of time the sales brought in from HPMC have led to better performance. The Company has also started production of Pullulan Capsules.

Your Company is a Certified Empty Hard Gelatin capsules shell and HPMC Capsules shell Manufacturer in

India providing the premium quality capsules to the clients. Your Company was WHO-GMP, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 22000:2018, Halal, and Kosher & USFDA for our quality standards. We manufacture the capsules at our state-of-the-art manufacturing unit under the observation of the scientific experts. The materials that we employ in the production obtained from the authorized vendors of the industry. Our capsules are 100% natural and safe as we have tested them on the predefined industrial international norms. Our quality experts ensure the best locking attributes which make the capsules perfect for any use.

The company is WHO-GMP certified Company and recognized Star Export House. With four decades of experience, and a strong brand equity "Sunloc" the company is a preferred vendor for large pharmaceutical companies. The company was the pioneer of double lock and Triple lock technology in India. With a strong focus on R &D, the company is constantly innovating its product line to cater to the industry requirements. The management is optimistic about the future outlook of the company in short, medium and long-term. The Company deals in Business segment of Manufacturing Empty Hard Capsule Shells and in nine sizes, which are 00, 0SEL, 0EL, 0,1,2,3, 4, 5. In this segment the company has reached to installed capacity of 15 billion capsules p.a. at the existing facility. The company enjoys immense credibility in various Global Market. The management of the company Continued focus on achieving cost optimization and yield improvements through Economies of Scale. The management of the Company alongwith its team is focusing aggressively and taking necessary steps to explore and to acquire more share in the domestic as well as in the International market so as to increase the revenue from operation to achieve the Economies of Scale and thereby the profitability. The company also renewed interest in the business with an aim to become the one of the leading Hard Shell Capsule manufacturer in the domestic as well as in the International market.

6. RISK CONCERNS:

The Board of Directors of the Company and the Audit Committee shall periodically review and evaluate the risk management system of the Company so that the management controls the risks through properly defined network. Head of Departments shall be responsible for implementation of the risk management system as may be applicable to their respective areas of functioning and report to the Board and Audit Committee. Detailed report on Risk Analysis is a part of this Annual Report. The details of the Risk management policy are available on the website of the company i.e. www.sunilhealthcare.com and can be accessed at weblink, https://www. sunilhealthcare.com/uploads/filemanager/6741q-5.pdf.

7. INTERNAL CONTROL SYSTEM AND ADEQUACY:

The Company maintains adequate internal control system and procedures commensurate with its size and nature of operations. The internal control systems are designed to provide a reasonable assurance over reliability

in financial reporting, ensure appropriate authorization of transactions, safeguarding the assets of the Company and prevent misuse/ losses and legal compliances.

The internal control system includes a well-defined delegation of authority and a comprehensive Management Information System coupled with quarterly reviews of operational and financial performance, a well-structured budgeting process with regular monitoring of expenses and Internal audit. The Internal Audit reports are periodically reviewed by the management and the Audit Committee and necessary improvements are undertaken, if required.

8. FINANCIAL PERFORMANCE:

Sunil Healthcare reported Revenues from operation of Rs. 8771.92 lakhs, EBITDA (before the exceptional item) of Rs. 1510.31 lakhs, Profit before Tax (before exceptional item) of Rs. 250.44 Lacs, Loss before Tax (after exceptional item) of Rs. 707.81 Lacs, Loss after Tax of Rs. 530.21 Lakhs and Other Comprehensive Loss of Rs. 51.73 Lakhs Lakh in the FY 2025-26.

The comparative financial analysis with previous financial year are as under:

S Sales: - The revenue from operation in the current year increased by 5.15 %.

S Earning Before Interest, Depreciation and Tax (before the exceptional item): - EBIDT increased by 14.33 % as compared to previous financial year.

S Finance Cost: - Finance cost decreased by 4.61 % as compared to previous financial year.

S Other comprehensive Income (OCI): During FY 2025-26 OCI is of Rs. (51.73) Lakhs as against OCI of Rs. (59.35) Lakhs in previous F.Y. 2024-25.

9. HUMAN RESOURCES:

The well-disciplined workforce which has served the company for 52 years lies at the very foundation of the companys major achievements and shall well continue for the years to come. The management has always carried out systematic appraisal of performance and imparted training at periodic intervals. The company has always recognized talent and has judiciously followed the principle of rewarding performance. The Company maintained healthy, cordial and harmonious industrial relations at all levels. Despite severe competition, the enthusiasm and unstinting efforts of the employee have enabled the Company to remain at the forefront of the industry.

In todays comparative world where creativity and innovation are increasingly becoming important, development of Human Resource is the call of the day. The Company is taking various steps to develop the skills and enhance the knowledge of the human resource which include the following:

a. Comprehensive and user friendly Performance Management System has been implemented to create a result oriented culture.

b. Development needs have been identified through Performance Management System.

These needs are being fulfilled through various training programs and lectures by internal as well as external faculty.

c. Regular Training programs are conducted comprising behavioral and technical programme.

Total 158 numbers of Employees are on roll of the company as on March 31, 2026.

11. QUALITY INITIATIVE A) Our Quality policy is:

"We shall produce capsules for customers delight by continual focused improvement plans"

We maintain a consistent quality of our product as per the norms of WHO-GMP. To maintain the stringent quality norms, we have modern quality Control Laboratory equipped with latest equipments and qualified persons to operate them. Our Quality Assurance works hand in hand with our production to ensure products of customers requirement.

The Company is registered with US FDA, which reflects standard of its quality. The Company has received the following certification in quality, which shows further, its quality standards:

B) QUALITY FOCUS: Your Company had adopted below quality control measures at its plant in overall production process till final disposal for making its capsules defect free:

• Internationally accepted measures;

• TPAM, 5 S, Jishu Hozen across production line;

• Six sigma for process control;

• Stringent in process quality checks;

• Statistical sampling and testing;

• Hourly Checks.

• Stringent In-house specifications to comply pharmacopoeia standards

• KYC (Know Your Customer) program to comply with Customers requirement

• Stringent quality Compliance measures adopted for zero defect capsules;

• Process R&D: Industry Leader for efficient utilization of primary Raw materials;

• Automatic Inspection Machines for automated visual Inspection.

12. INFORMATION TECHNOLOGY

We are using modern technology available for improvement of Business processes across the functions by automating the routine administration tasks and creating various knowledge management databases. The Company also has its web site www.sunilhealthcare.com to provide all the details about the Company and its product. The Company has successfully migrated its operations on the SAP. Through strict vigilance aided by controls and alerts, the Company aims to further improve its operations, bring in greater efficiencies, and further tighten internal controls and systems

13. CAUTIONARY STATEMENT:

Statement in this Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statement" within the meaning of applicable laws and regulations. Actual results might differ materially from those either.