MANAGEMENT DISCUSSION AND ANALYSIS 1. INDUSTRY STRUCTURE AND DEVELOPMENT The pharmaceutical industry in India is one of the fastest growing industry in India and is expected to grow at 20% CAGR over next 5 years. This growth is fastest in pharmaceuticals industry worldwide. The industry meets around 70 per cent of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals, and injectables. With the advantage of being a highly organized sector, a number of pharmaceutical companies are increasing their operations in India. 2. PERFORMANCE During the year under review, your Company has achieved a turnover of Rs. 85.21 Crores as compared to Rs. 85.26 Crores in the brvious year showing a steady turnover as compare to brvious year. The Company has earned a net profit after tax and debrciation of Rs. 9.47 Crores as compared to Rs. 7.23 Crores in the brvious year indicating a rise of 31% as compared to the brvious year. The increase in profits is attributed to interest income from fixed deposits earned during the year. 3. OUTLOOK Our manufacturing facility at Baddi had been running at 100% capacity for last 3 years, thereby the sales of company had been stagnant. We are happy to inform that new state of the art manufacturing facility complying to Regulated Markets, in Vadodra is almost complete and expected to commence commercial production by December 2015. We have also started expansion and upgradation of our current facility In Baddi, that will enhance production capacity of current facility to 1.5 times. We expect to complete this expansion by March 2016. With the expansion at Baddi Unit and commissioning of new state of the art facility at Vadodra Unit we expect substantial increase in sales and profit in coming years. 4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY To provide reasonable assurance that assets are safeguarded against loss or damage and that accounting records are reliable for brparing financial statements, the Company has a proper and adequate system of internal controls. The Company has in place well structured systems and procedures in line with the best of practices and well defined roles and responsibilities for people in all functions at various levels. The Company is certified as ISO 9001:2008 (Quality Management System Standard). Also, the Company has obtained GMP certifications from WHO (World Health Organisation). Management review meetings are held periodically to monitor and to control functions of the Company. 5. HUMAN RESOURCES The Company regards its employees as valuable asset and continuously reviews and evolves policies and procedures to attract and retain its pool of technical and managerial personnel through a conducive work environment. 6. CAUTIONARY STATEMENT The Management Discussion and Analysis Report may contain statements that might be considered forward looking. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those exbrssed in the statement as important factors could influence the company's operations such as Government policies, local, political and economic development, risk inherent to the Company's growth and such other factors. For and on Behalf of the Board For Brooks Laboratories Limited Sd/-Atul Ranchal Chairman (DIN: 01993861) Place: Mumbai Date: 03.09.2015 |
