Veerhealth Care Ltd Management Discussions

Industry Structure and Outlook

Ayurveda has a long tradition behind it, having originated in India perhaps as much as 3,000 years ago. The first recorded forms of Ayurveda as medical texts evolved from the Vedas. Ayurveda developed significantly during the Vedic period and later some of the non-Vedic systems such as Buddhism and Jainism also developed medical concepts and practices that appear in the classical Ayurveda texts.

Shifting towards more natural and herbal healthcare treatments is a notable market driver for the India Ayurvedic Products Market. Trust in Ayurveda has strengthened due to its traditional heritage coupled with modern science validating its benefits. Important element influencing the market is the concern nurtured by the Indian government through policies, measures, and budgetary provisions promoting Ayurveda. An example is the establishment of a separate Ministry for AYUSH which sponsors research and promotes standardization and international marketing of Ayurvedic products. Improved regulations as well as quality certifications have strengthened trust amongst consumers with Ayurvedic products resulting in better penetration to the market. The developing confidence in Ayurvedic medicines is now heavily impacting spending behaviors across urban and rural regions of India.

SWOT Analysis Strengths

The Company has a strong manufacturing base with established infrastructure and capabilities across its product categories. The Company has a diversified portfolio covering Ayurvedic, healthcare, personal care and wellness products . The Company focuses on research, product development and innovation to meet evolving market and consumer requirements. Ayuveer, the Companys growing consumer brand, is expanding its product portfolio and market presence, supporting the Companys growth strategy. Increasing consumer preference for natural, herbal and wellness-oriented products complements the Companys product offerings. Government support for Make in India, domestic manufacturing and Ayurveda provides a favorable environment for the Companys growth.

Weaknesses

Building and strengthening brands requires significant investment in marketing, distribution and promotion, along with considerable time to establish consumer recognition. Dependence on natural and specialty raw materials may expose the Company to supply disruptions and price fluctuations .

The Company operates in a highly competitive market with established as well as emerging players. Consumer awareness and acceptance of certain Ayurvedic products continue to vary across markets.

Opportunities

Growing demand for Ayurvedic, herbal, personal care and wellness products provides significant opportunities for business expansion. The Company has opportunities to expand its presence in domestic as well as international markets . Expansion of Ayuveers product portfolio and distribution network provides additional growth opportunities for the Company. Growth of e-commerce, quick commerce and modern retail channels offers opportunities to reach a wider consumer base. Changing lifestyles and increasing focus on health, hygiene, self-care and wellness provide opportunities for new product development and innovation.

Threats

Rising raw material, packaging, logistics and other operating costs may impact margins. Increasing competition from FMCG, pharmaceutical, Ayurvedic and emerging consumer brands may affect market share. Rapid changes in consumer preferences require continuous innovation and product development . Changes in regulatory requirements, quality standards and compliance obligations may increase operational costs.

Risks

The Company broadly classifies its risks into External Risks and Internal Risks. External risks include market competition, economic conditions, regulatory changes, fluctuations in raw material prices, supply-chain disruptions and changing consumer preferences. As the Company expands its operations and strengthens brands such as Ayuveer , it may also face risks relating to brand development, distribution expansion, consumer acceptance and marketing expenditure.

The identified risks and opportunities are periodically reviewed by the management and the Board and are incorporated into the Companys business plans along with appropriate mitigation measures. Internal risks relating to operations, quality, finance, compliance, human resources and internal controls are continuously monitored and systematically addressed across the Companys operations.

Internal Control Systems and Their Adequacy The Company has established an adequate system of internal controls, governance and compliance processes commensurate with the nature and scale of its operations. These systems are designed to safeguard the Companys assets, prevent and detect errors and irregularities, and ensure that transactions are properly authorised, recorded and reported.

The Company conducts regular internal audits to review the effectiveness of internal controls and compliance with applicable statutory and regulatory requirements. Audit observations and recommendations are reviewed by the management and appropriate corrective actions are undertaken wherever required. Significant findings are reported to the senior management and summary reports are placed before the Audit Committee of the Board for its review.

Considering the nature of the industries in which the Company operates, due emphasis is placed on compliance with applicable health, safety, environmental, quality and regulatory requirements , while maintaining operational efficiency and integrity.

Financial Performance

Veerhealth Care Limited continues to focus on sustainable growth and long-term value creation for all its stakeholders. During the year, the Company continued to strengthen its manufacturing capabilities, product portfolio and business operations, while pursuing opportunities for future growth. Detailed information regarding the Companys financial performance for the year under review is provided in the Financial Statements and relevant sections of the Annual Report . Human Resources

The Company believes that its employees are an integral part of its growth and success. It strives to provide a positive, inclusive and motivating work environment that encourages innovation, professional development and continuous learning.

The Company continues to focus on developing and nurturing talent, enhancing employee capabilities and creating opportunities for growth. Its diverse and multi-generational workforce contributes to strengthening the Companys operational capabilities and supports its long-term business objectives.

Key Financial Ratios

Details of the key financial ratios, along with the relevant explanations wherever applicable, are disclosed in Note No. 41 to the Financial Statements . Cautionary Statement

Statements made in this report describing the Companys objectives, projections, estimates, expectations, strategies or outlook may constitute forward-looking statements within the meaning of applicable laws and regulations.

Actual results and performance may differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in economic conditions, market dynamics, regulatory developments, input costs, consumer preferences, competitive conditions and other factors affecting the Companys business and operations.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events, except as may be required under applicable laws and regulations.

(iv) During the 5 years immediately preceeding March 31, 2025, there are no shares allotted as fully paid up pursuant to contract(s) without payment being received in cash. Also, there are 99,99,238 shares allotted on 25/09/2023 as fully paid up by way of bonus shares during the year.