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.

Company classifies the risks broadly into two categories, viz., External Risks and Internal Risks. The external risks mainly comprise of business risks on various fronts. The identified business risks and opportunities are deliberated in detail and thereafter considered in the business plan of the Company along with the mitigation plan. The internal risks identified by the Board are systematically addressed on a continuous basis across the locations.

Our governance and compliance processes, which include the review of internal control over financial reporting ensure that all the assets of the Company are safeguarded and protected against any loss and that all the transactions are properly authorized, recorded and reported. It also conducts regular internal audits to test compliance with the statutory requirements. Audits are led by professional audit managers and supported by experienced personnel drawn from across the organization. Audit results are used by management to create detailed action plans where the businesses have not yet achieved full compliance with the requirements. Key findings are reported to senior management and summary reports are considered by the Audit Committee of the Board. The nature of the industries in which the company operates means that many of its activities are highly regulated by health, safety and environmental norms while maintaining operational integrity.

Veerhealth Care has been a consistent value creator for all its stakeholders. Detail regarding financial performance is published in the Annual Report.

The positive and motivating work environment of the company advances innovation, encourages growth and inculcates a positive spirit among the workforce. Employees are nurtured within the company, which increases their potential and growth in various matters. Working in the company has always made it an enriching experience for the multi-generational, diversified and mobile workforce.

Details regarding key financial ratios are disclosed at note no. 41 to the financial statement.

The statements made above may be construed as forward looking statements within the meaning of the applicable laws and regulations. Actual performance of the Company may vary substantially depending upon the business structure and model from time to time.