Hemant Surgical Industries Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEW OF BUSINESS:

We manufacture, import, assemble and market a comprehensive portfolio of medical equipments and disposables. Our product offerings cover a wide spectrum of equipments and disposables required for (i) Renal Care, (ii) cardiovascular disease (iii) respiratory disease, (iv) Critical Care and Radiology and (v) Surgical disposables. Our wide range of products include some of the indigenously manufactured products along with some other products that are imported from countries like: Japan, China France and Australia and are further processed in our assembly units. In addition, we are also providing services for maintenance and running of dialysis centres.

Our company started its operations with importing and marketing of medical disposables like: meditapes, all over India from JMS Co Ltd. Japan. Later in the year 1999 our company started its manufacturing operations with one Manufacturing unit and over the years expanded its manufacturing and assembly operations to two more additional units as under:

1) Manufacturing Unit I situated at Achad Industrial Estate - where we first started our operations in 1999 and are currently manufacturing products like: Dialysis solution (liquid and Powder) used in dialysis, Hot and Cold Sterilant used for cleaning dialyzer, Purified water used in rinsing and cleaning of dialysis machines and sanitizer.

2) Assembly Unit II situated at Atgaon - for assembly of various medical devices like: Nebulizers, Oxygen Concentrator, Air Mattress, Digital Thermometer, Pulse Oximeters, ECG Electrodes, Dialyzer which are sold under the Brand Name "Aero Plus". Silicon Foley catheters imported from China which are further processed and sold under the Brand name "Safecath" and for assembly of new and refurbished dialysis machines imported from China, France and Australia, Meditapes imported from JMS Co. Ltd., Japan.

3) Assembly Unit III situated at Bhiwandi - for assembly of products like: Intravenous infusion set, ECG Machines, Ultrasound Machines, Paramonitor, Ventilator etc.

OVERVIEW OF THE INDUSTRY:

The Indian market for medical equipment is predicted to increase to US$ 50 billion by 2025. India is the 4^th largest Asian medical devices market after Japan, China, and South Korea, and among the top 20 medical devices markets globally.

The Indian healthcare sector is expected to record a three-fold rise, growing at a CAGR of 22% between 2016- 22 to reach US$ 372 billion in 2022 from US$ 110 billion in 2016. As of August 23, 2022, more than 210.31 crore COVID-19 vaccine doses have been administered across the country. The e-health market size is estimated to reach US$ 10.6 billion by 2025.

OPERATING RESULTS OF THE COMPANY

The revenue from operations of your Company for the year ended March 31, 2023 stood at Rs. 10,914.82 lakhs as against Rs. 10,357.00 lakhs for the year ended March 31,2022. The Company has incurred a profit of Rs.763.73 lakhs for the Year ended March 31,2023 as compared to Rs. 271.68 lakhs for the year ended March 31,2022.

STRENGTH

• We offer a diversified range of products.

• Existing well-established reputation and customer relationships

• Quality Assurance

• Stable financial performance with improved margins

• Experienced management team with industry expertise and successful track record.

COMPETITION:

We face competition from organized and unorganized players in the healthcare industry which have a presence across multiple regions in India. There are various companies offering products and services similar to us. We believe the principal elements of competition in our industry are price, durability, product quality, timely delivery and reliability and most importantly our pace in keeping up with the changing technology in the industry.

To stay competitive, we regularly update our existing facilities/technology and adopt new technology for our manufacturing facilities. We aim to keep our costs of production low to maintain our competitive advantage and our profit margins. We continuously seek new product registrations, marketing 112 authorizations to increase our product offerings.

PROSPECT & OUTLOOK

The management is of the view that the future prospects of your Company are bright and the performance in the current year is expected to be very well. The committed customers of the Company are expected to place more orders, which ultimately affect the top line of the Company, positively.

RISKS AND CONCERNS

The Company has taken adequate preventive and precautionary measures to overcome all negative factors responsible for low trend to ensure steady growth.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

There are well-established procedures for Internal Controls for operations of the Company. The finance & audit functions are well equipped with professionally experienced qualified personnel & play important roles in implementing the statutory obligations. The Company has constituted Audit Committee for guidance and proper control of affairs of the Company.

HUMAN RESOURCES

Human Resources Development, in all its aspects like training in safety and social values is under constant focus of the management. Relations between the management & the employees at all levels remained healthy & cordial throughout the year. The Management and the employees are dedicated to achieve the corporate objectives and the targets set before the company.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations, predictions and assumptions may be "FORWARD LOOKING" within the meaning of applicable Laws and Regulations. Actual results may differ materially from those expressed herein, important factors that could influence the Companys operations include domestic economic Conditions affecting demand, supply, price conditions, and change in Governments regulations, tax regimes, other statutes and other factors such as industrial relations.

For and on behalf of the Board of Directors of
Hemant Surgical Industries Limited
Sd/-	Sd/-
Hanskumar shamji Shah	Kaushik Hanskumar Shah
(Managing Director)	(Whole-time Director)
DIN: 00215972	DIN: 01483743
Registered Office:
502, 5th Floor, Ecstasy Business Park Co-Op Society Limited,
J.S.D. Road, Mulund
West Mumbai -400080
Place: Mumbai
Dated: August 29, 2023