Venmax Drugs & Pharmaceuticals Ltd Management Discussions.

Managements Discussion and Analysis Report on the Business of the Company as applicable and to the extent relevant is given below:

Overview & Operations of the Company

Venmax Drugs and Pharmaceuticals Limited is in the business of trading of Bulk Drugs, Intermediates and Biotech Products. The Company is having a professionally managed team at every stage of its operations.

Strengths - The Management depth and ability to manage client relationships.

- Enhanced presence in the international market.

Opportunities & Threats

Large number of Pharmaceutical companies losing their drug patents, thereby increasing the scope of outsourcing to countries that offer a low cost manufacturing base.

The Pharma sector is expected to witness further consolidation by way of mergers and acquisitions this augurs for growth of the Industry. This would result in better price realization and growth.

The Indian Pharma Industry will have to meet the following challenges:

i. Multinational Companies are setting up large plants in India.

ii. Competition in the global market that offer low manufacturing base.

iii. Uncertainties on account of global socio economic environment.

Outlook for the Company

Your Company is on the verge of completion of the expansion plans undertaken. Your Company has planned its business strategy taking the ground realities into account. The Company has introduced new products which are very competitive and beneficial to the Company.

Risks and concerns

Any Government policy intervention or any change in the Pharma sector benefits and unforeseen adverse market conditions are issues of concern and may put pressure on the performance of the Company.

Internal control system and their adequacy

The Company has Internal Control System which is adequate and commensurate with the size of the Company.

Discussion on financial performance with respect to operational performance

A. Financial Conditions:

1. Capital Structure:

The Authorized Share Capital of the Company as at 31st March, 2018 is Rs. 800 Lakhs divided into 80 Lakhs Equity Shares of face value of Rs. 10/- each. The Share Capital of the Company consists of only Equity Shares. The Paid-up Capital of the Company as on 31st March, 2018 is at Rs.523.893Lakhs comprising of 52,38,930 Equity Shares of Rs. 10/- each fully paid-up.

2. Reserves and surplus:

The Reserves and Surplus of the Company as on 31st March, 2018 stands at Rs. -735.18 Lakhs

3. Secured Loans:

There are no secured loan as on 31st March, 2018

4. Unsecured Loans:

The Company has taken unsecured loan from its Director amounting Rs.184.85 Lakhs.

5. Fixed Assets:

The Company has no fixed assets during the financial year 2017-18.

6. Revenue:

During the year, the Company has not generated revenue compared to Rs.25.92 Lakhs in the previous year ended 31st March 2018.

Environment and Safety

The company is complying and maintains environmental safety.

Human Resources

The company believes that the quality of its employees is the key to its success.

Cautionary Statement

Statement in this "Management Analysis Report" be considered to be forward looking statements within the meaning of applicable securities laws or regulations. Actual result could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, increased installed capacity, price bulk drugs and its availability, cyclical demands and pricing in the Companys market, changes in Government regulations, tax regimes, besides other factors such as litigations and labour negotiations.

Annexure IV

Details of Conversation of Energy

(A) Conservation of energy- The Company being not a power intensive unit the scope for energy conservation efforts is limited

(i) the steps taken or impact on conservation of energy;

(ii) the steps taken by the company for utilizing alternate sources of energy;

(iii) the capital investment on energy conservation equipments;

(B) Technology absorption- Nil

(i) The efforts made towards technology absorption;

(ii) The benefits derived like product improvement, cost reduction, product development or import substitution;

(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year)- Not applicable

(a) The details of technology imported;

(b) The year of import;

(c) Whether the technology been fully absorbed;

(d) If not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and

(iv) The expenditure incurred on Research and Development. Nil

(C) Foreign exchange earnings and outgo-

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflows. NIL