INDUSTRY STRUCTURE AND DEVELOPMENTS

Gelatin is a colorless, flavorless, semi-transparent, and brittle collagen product. It is a protein food product

generallyderivedfromtheseveralanimalsources.Itisusedinseveralapplicationsasastabilizer,thickener,and

gellingagent.Gelatinisnormallygradedintocategoriesasperitsqualityandstrength,andtheunitisnamedas

'bloom.'Agreaterbloomnumbersignifiesahighqualityofgelatin.Thecolorofthegelatinproductisdependedon

therawmaterialtype.Thesuperiorqualityofgelatinarehighmolecularweightcompoundsandwithbettergel

strength.

TheglobalgelatinmarketisexpectedtogrowatasteadyrateandpostaCAGRofmorethan6%andisprojectedto

exceed480thousandmetrictonsby2022.Theincreasingdemandforgelatinfromcosmeticsandpersonalcare

applicationswilldrivethegrowthprospectsfortheglobalgelatinmarketuntiltheendof2021.Thecosmeticand

personalcare industry increasinglyusesgelatinasastabilizing,viscositycontrolling,andcleansingagent.The

presenceofproteincontentbooststhepreferencefortheadditionofgelatininvariouspersonalcareapplications

suchasfacecreams,shampoos,bodylotions,lipsticks,facemasks,andsunscreens.Duetothehighdisposable

incomeofthepeople,theconsumptionofcosmeticproductsishighinvariousdevelopedaswellasdeveloping

countriessuchastheUS,theUK,Australia,Canada,France,China,India,SaudiArabia,andGermany,whichwill

consequentlyfuelmarketgrowth.

Accordingtothemarketresearchandanalysis,Europewasthelargestrevenuecontributortothegelatinmarket

during2016.Thisismainlyduetothepresenceofdominantmanufacturersintheregion.Withtheincreasing

numberofapplicationsinfoodandbeverageproducts,thesalesofgelatinislikelytoincreaseinEuropeandthis

regionwillbethemajorrevenuecontributortothemarketinthecomingyearsaswell.

During2016,thepigskinsegmentdominatedthegelatinmarketandisexpectedtowitnesssignificantgrowth

duringtheestimatedperiodaswell.Duetofactorssuchasthesuperiorqualityofgelatin,theshortproduction

process,theneedforlessamountofwaterinpre-treatmentandextraction,thereductioninwaterwastageduring

processing,andaless-timeconsumingpre-treatmentprocess,thecomingyearswilwitnessasignificantincreasein

thedemandforgelatinderivedfrompigskin.

Gelatin

Gelatinisderivedfromcollagenwhichisobtainedfromvariousanimalsourcesincludingpigskin,bovinehides,

cattlebonesandfish.Thistypeofanimalcollagenhelpstoswallowtabletsandcapsuleseasily.Gelatinisaformof

proteinderivedfromanimalsources.Thisclearandtastelessproteinisobtainedfromthecollagenfoundinthe

bones,connectivetissue,andskinofpigs,cattleandotheranimals.Inoldtimes,gelatinwasusedasabiological

adhesive.Butwithadvancingtimes,theuseofgelatinhaschangedanddiversified.Apart fromadhesiveness,

gelatinpossessesmanyphysical,chemicalandfunctionalpropertieslikecrystallizationcontrol,waterbinding,film

forming, thickening and emulsifying properties. Thus, it has found a large area of application in the food,

pharmaceutical,neutraceutical,photographic,cosmeticandpackagingindustries.

MANAGEMENT DISCUSSION AND ANALYSIS

(Annexure-1 to the Director's Report )

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Besidesthese,gelatinhasalsoestablisheditsutilizationincombatingosteoporosisandarthritis.Thewidening

scopeofapplicationhasprovidedalucrativeplatformforaswiftgrowthoftheglobalgelatinmarketwhichis

expectedtoreachavalueofaroundUS$4.08billionby2024.Theincreasingapplicationoftheproductinfood&

beverageandpharmaceuticalapplicationsonaccountofexhibitingexcellentstabilizingcharacteristicsandgood

bindingfeaturesisexpectedtoremainafavorablefactorforgrowthovertheforecastperiod.

Theproductismajorlyusedasagellingagentinnumerousapplicationsincludingfood&beverage,nutraceuticals,

healthcare,personalcare,andphotography.Increasingdemandforconveniencefoodsinemergingeconomies

includingChina,India,andMiddleEastcountriesisexpectedtopromotetheusageoftheproductasafunctional

ingredientinconfectionaries.

Gelatinisalsousedintheproductionofabroadrangeofpharmaceuticalsincludingwounddressings,bloodvolume

substitutes,andhomeostaticsponges.DevelopmentofthepharmaceuticalindustryintheU.S.andCanadainlight

ofincreasingexpenditureforincorporationoflatesttechnologiesisexpectedtohaveasubstantialimpact.

Overthepastfewyears,polysaccharidesarebeingincreasinglyusedasanimportantconstituentinhealthcareand

food& beverage applications on account of providing excellent hydrolyzing enzymatic properties. Therefore,

industrypresenceofpolysaccharideisexpectedtoposeasubstitutionalthreattogelatinmarketoverthenexteight

years.

Increasingawarenesstowardsmicroencapsulationinthebroadrangeofapplicationsincludingfood&beverage

andhealthcareisexpectedtoopennewmarketsoverthenexteightyears.

Application Insights

Thefoodandbeveragesegmentdominatedthemarketduring2016andislikelytocontinueitsdominanceinthe

comingyearsaswell.Theincreasingdemandforfunctionalfoodandbeverageproductssuchasconfectionery,

marshmallows, desserts, bakery products, dairy products, pet foods,meat packaging, frosted cereals, cream

cheese, cupcakes, candies, pudding, juices, and beverages will be the major factor fueling market growth.

Additionally,theuseofgelatininpetfoodsandotherproductssuchascakes,cottagecheese,icecreams,whipped

creams,andcheesespreadwillalsopropelthegrowthofthemarketinthissegment.

Raw Material Insights

Bovinehide-basedproductsareprojectedtoforeseevolumegrowthat4.9%CAGRfrom2016to2024.Easywater

absorptionandsignificantproteincontentareexpectedtopromotetheusageoftheaforementionedrawmaterial

overtheprojectedperiod.The increasingpopularityofhalal foods infood&beverage industryofMiddleEast

countriesisexpectedtopromotetheusageofcattlebonesasrawmaterialstoproducegelatinovertheforecast

period.

Fishskin,horsehair,andsheepcoveringareotherrawmaterialswhichareusedfortheproductionofgelatin.

TechnologicaladvancementforthedevelopmentoffishgelatininChinaisexpectedtoopennewmarketsoverthe

nexteightyears.

Function Insights

Theincreasingimportanceofemulsifyingpropertyinfood&beverageindustryofmajormarketsofGermany,UK,

andFranceisexpectedtopromotetheusageofgelatinasagellingagentoverthenexteightyears.Themarketis

projectedtowitnessgrowthataCAGRof5.3%from2016to2024,intermsofrevenue.

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ApplicationgrowthofpharmaceuticalproductsincludingtabletsandcapsulesinemergingmarketsofChinaand

Indiaowingregulatorysupportintendedforpromotinginvestmentsinthehealthcaresectorisexpectedtoincrease

thedemandforstabilizingagent.Gelatinalsofindsuseasthickeningagentsinthephotographicindustry.

Regional Insights

Europerepresentsthelargestmarketworldwide,accountingfor41.2%oftheglobalrevenuein2015.Increasing

awarenesstowardsincorporationofnutritionalingredientsinfood&beverageindustry,particularlyindeveloped

economiesincludingGermany,UK,andFrance,isexpectedtohaveahighimpactonthemarket.Also,thepresence

ofarobustpharmaceuticalmanufacturingbaseinGermany,UKandBelgiumissupposedtoremainafavorable

factor.

AsiaPacificisforcasttospearheadfuturegrowthwiththefastestCAGRof5.0%ledbyfactorssuchasgrowing

population and robust food production where gelatin is used widely as gelling agent, growing spending on

appearancemaintenanceproductsamongtheexpandingbaseofaffluentmiddleclasspopulationandtheresulting

increase in theuseofgelatin incosmetic formulations,andraisingprevalenceofosteoarthritisandaparallel

increaseintheconsumptiongelatinsuppliments.

Competitive Insights

Key industry participants include PB Gelatin, Nikita AG, Rousselot, Capsugel Inc. and Sterling. New product

developmentandtheestablishmentofstrategicpartnershipswithbuyersareexpectedtoremaincriticalsuccess

factorsoverthenexteightyears.Globalpharmaceuticalmarketareinthemidstofmajordiscontinuities.While

growthindevelopedmarketswillslowdown,emergingmarketswillbecomeincreasinglyimportantinthecoming

decade.TheIndianPharmaceuticalmarket,alongwithmarketsofChina,BrazilandRussia,willspearheadgrowth

withinthesemarkets.

The Indianpharmaceuticalsmarkethascharacteristics thatmake itunique.First,brandedgenericsdominate,

makingupfor70to80percentoftheretailmarket.Second,localplayershaveenjoyedadominantpositiondriven

by formulationdevelopment capabilities andearly investments. Third, price levels are low,drivenby intense

competition.

TheIndianpharmaceuticalsmarketisthethirdlargestintermsofvolumeandthirteenthlargestintermsofvalue.

IndiaisthelargestproviderofgenericdrugsgloballywiththeIndiangenericsaccountingfor20percentofglobal

exportsintermsofvolume.Indiaenjoysanimportantpositionintheglobalpharmaceuticalssector.

TheIndianpharmaindustry,whichisexpectedtogrowover15percentperannumbetween2015and2020,will

outperformtheglobalpharmaindustry,whichissettogrowatanannualrateof5percentbetweenthesame

period. The market is expected to grow to US$ 55 billion by 2020, thereby emerging as the sixth largest

pharmaceutical market globally by absolute size. Branded generics dominate the pharmaceuticals market,

constitutingnearly80percentofthemarketshare(intermsofrevenues).

India'spharmaceuticalexportsstoodatUS$16.4billionin2016-17andareexpectedtogrowby30percentover

thenextthreeyearstoreachUS$20billionby2020.

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OPPORTUNITIES AND THREATS

l Opportunities:

Asthehydrolyzedformofgelatin,collagenisahighlypurifiedproteinthatcanbeeasilyabsorbedinthe

humanbody.Itisusedasaningredientfornutritionalsupplementssuchasproteinbarsanddrinks,weight

loss,beautyproducts,andoverallbodyhealth.Thisproductiseasilysolubleinhotandcoldliquids.Itisalso

perfectwhere traditionalgellingability isnot required.Ourgelatinproductshavenumerousandvaried

applicationsintheFood,HealthandNutritionalindustries.Gelatinisanaturalandfat-freeingredientthatis

bothhighinproteinandvirtuallycaloriefree.Itisinvaluableintheprocessingoftheseandmanyotherhealth

products.

ThechangeintheworldtopographyespeciallyintheEuropeancountriesleadingtoincreaseintheageing

populationisexpectedtoensureastablegrowthintheglobaldemandofgelatinoverthecomingyears.

FurthertheincreasinguseofgelatininPharmaceutical,Neutraceuticalandcosmeticproductswouldaddto

thisstablegrowthinglobaldemand.Thefoodandbeverageindustrycontinuoustorepresentsoneofthe

largestconsumerofgelatin.

Thegeneralgrowthinhealthconcernsandtheincreaseinthestandardoflivingofthepeopleleadingto

greaterdisposableincomehasincreasedtheuseofdietarysupplementandtherebyincreasestheusageof

gelatinbasedproducts.

Asregardsthealternativesthatmeetsomeofthegelatincharacteristics,noneisyetavailablethatmatchesall

thefunctionssuchasgelling,binding,thickening,stabilizing,filmforming,andaeratingproperties.Thus,no

comparablesubstitutehasbeendevelopedtilldate.

Thegelatinhasuniquecharacteristicsthatmakeitespeciallyusefulasafilm-formingagentforencapsulation

ofliquidsandpowders.Gelatincapsulesoffertheuniqueadvantagesofdosageaccuracy,easeofswallowing,

andappearance. Inadditiontohardandsoftcapsules,gelatin'suniquephysicalpropertiesallowforthe

coatingandbindingofthedrycomponentsintablets.Havingnotoxicity,andtheabilitytobeeasilyabsorbed

bythebody,gelatinisanidealsubstancetouseinmedicinalandnutritionalpreparations.Gelatinisthe

excipientofchoicetoprovideaneffectivedeliverysystem.

Asarichsourceofprotein,Gelatinfindsapplicationinnumerousend-usesectorsincludingpharmaceuticals,

foodandbeverage,photographic supplies, cosmetics,explosives,electroplating,dyes,papermakingand

printing,amongothers.Risingstandardsofliving,easieraccesstohealthcareservices,increaseindisposable

incomesandrapidlyagingworldpopulation representkey factorsdrivinggrowth indemand forgelatin.

Improving lifestyles in developing economies of India and China are also expected to promotemarket

expansion. Lack of availability of competitive substitutes in themarketmakes gelatin one of themost

indispensablefeedstockinvariousend-useindustries.

Consumption in thepharmaceutical industry remainshighdrivenbyrapidlyageingdemographics, rising

incidenceof chronicand lifestyle relateddiseases,andgrowinghealthconsciousness.Growing focuson

preventivehealthcareamidstmountinghealthcarecostsrepresentsanotherimportantgrowthdriver.Rising

popularity of nutraceuticals is also expected to benefit gelatin consumption in the near term. Gelatin

encapsulatedmedicinesandgelatin-baseddietaryandhealthsupplementsareexpectedtowitnessstrong

demandinthecomingyears.

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AsstatedbythenewmarketresearchreportonGelatin,Europerepresentsthelargestmarketworldwide,

followedbyAsia-Pacific.Asia-PacificisalsoforecasttospearheadgrowthwiththefastestCAGRof4.9%over

the analysis period. Growing GDP, rising standards of living, increasing disposable income, expanding

healthcareaccessandrobustgelatindemandfromend-useindustriesrepresentkeyfactorsdrivinggrowthin

theregion.

Demand is driven by theworld's aging population, increasing awareness of health issues, and end-use

industriesincludingpharmaceuticals,nutraceuticals,andfoodandbeverages.Demandinemergingmarkets

suchasIndiaandChinawillalsofuelexpansion,alongwithrisingstandardsoflivingandtheavailabilityof

vegetariangelatinoptions.Obstaclestoindustrygrowthincludeconsumerconcernsregardingthepotential

healththreatinusingproductsderivedfromanimalbodyparts.(GlobalIndustryAnalysts).

Whereasthepharmaindustrymeetsaround70%oftheCountry'sdemandforbulkdrugs,drugintermediates,

pharmaceuticalformulations,chemicals,tablets,capsules,orals&injectable.Thedomesticpharmaceutical

marketisexpectedtoregisterastrongdoubledigitgrowthof15%onthebackofincreasingsalesofgeneric

medicines,continuedgrowthinchronictherapiesandagreaterpenetrationinruralmarkets.

l Threats:

Despitethebrightoutlook,consumerconcernsrelatedtothesafetyandsocialaspectsofusingproducts

derivedfromanimalbodypartscontinuetohauntindustryprospects.Theindustry,overtheyears,hasborne

thebruntoftightenedregulationsandlegislativeridersgoverningtheuseofgelatininsupplements.

InspiteofOIEclearanceforIndiaas"Negligiblerisk"countryforBovineSpongiformEncephalopathy(BSE),

theUSFDArefusingtoacknowledgethisratingandplaceIndiainthe'Undetermined'categorywhichcould

affectexport.SalesandrealizationofDCPsufferedaminorsetback.

Environmentalregulationcontinuetobecomemorestricterandstrengthenonaccountofwhichtherewould

ariseaneedforlargercapitaloutlayforachievingrevisedstandardaswellashigheroperatingcostforthe

treatment.RawMaterialnamelycrushedbonesavailabilityhasbeenshortandtherebypricesareathistorical

highs.

CentralGovernmenthasalsoformeda14membercommitteetopursuevegetablegradecapsulesleadingto

uncertaintyforpharmagradegelatinmanufacturedfrombones.

PERFORMANCE

The Company is engaged into manufacturing of Gelatin from animal bones. Gelatin is primarily used in

pharmaceuticals industry formaking capsule caps and in food industry. Company has developedworld-class

technologyforgelatinbyestablishingstate-of-the-artfacilities.TheCompany'splantslocatedatKarakhadiand

Ootyemploythelatestinnovationsintechnologyfortheproductionofgelatin.

TheCompanyproducespharmaceuticalproductmeetingglobalquality standards, viz. Lovastatin (Cholesterol

lowering drug) and Oncology / Other Pharmaceutical products. Sterling, as of today, has highest Lovastatin

manufacturingcapacitywithrequiredregulatoryapprovals.ThefermentationfacilityofMasarplantisoneofthe

largestfermentationfacilitiesinIndia.

Thecompanyhas increased its focusonLovastatinandotherCholesterol loweringdrugsaswellasOncology

productswhichhaveaverybrightfutureinDomestic&InternationalMarkets.

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BriefoverviewofPharmaandOncologyproductsmanufacturedbytheCompanyisasunder:

Anticancer Products :

l DOXORubicinisananti-cancerchemotherapydrugandisclassifiedasananthracyclineantibiotic.

l IDARUBICINisananti-cancer(antineoplasticorcytotoxic)chemotherapydrug.Thismedicationisclassifiedas

ananthracylineantitumorantibiotic.

l Daunorubicinisusedtotreatacutelymphocyticandmyelocyticleukemias.

l IMATINIBisadrugusedtotreatcertaincancers.

l EPIRubicinisananthracyclinedrugusedforchemotherapy.

Other Products :

l Lovastatinisacholesterol-loweringagentthatbelongstotheclassofmedicationscalledstatins

l DACARBAZINEisusedtotreatHodgkindiseaseandmalignantmelanoma

l TemozolamideisanoralalkylatingagentusedforthetreatmentofGradeIVastrocytoma

l Simvastatinisalipidloweringdrugusedtodecreaseheartproblemsinthoseatahighrisk

OUTLOOK

AlongwithproductionofBonegelatin,thecompanycontinuestofocusitsattentiononPharmaceuticalproducts,

OncologyproductsandHydrolisedProteinsforitsfuturegrowth. TheResearchandDevelopmentactivityofthe

Companyintendstohavefocusedandcontinuousinnovationtosecureasoundfuture.Expansionoftheproduct

portfolioandcostcontrolthroughlongtermcontractswithsuppliersandtighteningofexpensescontinuesfor

improvedmargins.

AllrequiredcertificationsintermsofqualityobtainedbytheCompanygivesthecompanybetterpositioninthe

International&DomesticMarket.Withexpectedfuturegrowthinpharmasectorwiththeuseofgelatinasraw

materialformanufactureofcapsules,demandconstraintwillnotbetherefortheCompanyincomingyears.

RISKS AND CONCERNS

Statements in the Management's Discussion and Analysis describing the Company's projections, estimates,

expectationsorpredictionsmaybe"forwardlookingpredictions"withinthemeaningofapplicablesecuritieslaws

andregulations.Actualresultsmaydifferfromsuchestimates,projections,etc.,whetherexpressedorimplied.

FactorswhichwouldmakeasignificantdifferencetotheCompany'soperationsincludeachievementofbetter

qualityandgoodmarketpriceindomesticandoverseasmarket,changesinGovernmentregulationsandtaxlaws,

economicconditionsaffectingdemand/suppliesandotherenvironmentalfactorsoverwhichtheCompanydoes

nothaveanycontrol.Stringentregulation/normsrequiredtobefollowedbyslaughterhousesformeatexportsto

EUcountries,increaseincostofpower&fuelduetoincreaseinthepriceoffurnaceoil&increaseinotherfixed/

semivariablecostduetooverallinflationarypressurearealsothematterofconcerns.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Thecompanyhasadequateinternalcontrolsystemstoensurethatallassetsaresafeguardedandprotectedagainst

lossfromunauthorizeduseordispositionandthetransactionsareauthorized,recordedandreportedcorrectly.

Theinternalcontrolisdesignedtoensurethatthefinancialandotherrecordsarereliableforpreparingfinancial

statements.TheCompanyhasinplacedocumentedprocedurescoveringallfinancialandoperationalfunctions

commensuratewithitssizeandcomplexity.TheCompanyhasalsotakenrequiredmeasurestocounterthedemand

issueviz.improvementinmarketingsetup,tighteningofcreditcontrol,Diversificationofproducts&costcontrol

measures.

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RESEARCH & DEVELOPMENT

R&DfacilityattheplantisequippedwithallmodernanalyticalandprocessequipmentincludingHPLCs,GC,GCMS,

IR,Spectrophotometer,Autoclaveetc.andisunderstrictcontrols&restrictedentry

SterlingBiotechundertakesresearch&developmentactivitiesat its in-houseR&Dcenterswhichlookafterat

specificareasofimprovementofproductquality,processimprovements,costeffectivenessandeliminationof

wasteinthesystems.ThecompanyalsocarriesoutR&Dworkonfermentationproducts,APIandintermediates.

ThecompanyhasinvestedsignificantamountofresourcesonResearch&Developmentandhassetupastate-of-

the-artR&Dfacilityinthenameof"SterlingBiotechResearchCentre"atitsMasarplantinVadodara,whichis

engagedindevelopmentofcomplexandnichegenericactivesubstancesforleadinggenericplayersfromEurope

andotherregulatedmarket.Forcompany,theR&Disanintegralpartofprocessandproductdevelopment.

TheCompanyalsohasamicrobiologylaboratorywhichisequippedwithallfacilitytohandleculturemaintenance,

inoculumspreparationandpropagation,in-processbatchanalysis,shakeflasktrials.

QUALITY CERTIFICATIONS

Thecompanycontinuoustohavethefollowingqualitycertificationsinaccordancewithitspolicytoachieveand

maintainthehigheststandardsofquality-

Sr. No. Certification Purpose

1 EDQM Thiscertificationdenotesthattheproductisincompliance

(EuropeanDirectoratefor withtheEuropeanUnionpharmacopeia.

QualityofMedicine)

2 IFANCA/MUI This certification is required for Halal certification, which

certifiesthatthegelatinismanufacturedusingHalal-defined

processesandcanbeusedbytheMuslimpopulation.

3 KOSHER ThiscertifiesthattheJewishpopulationcanconsumeSterling's

gelatinandthattheinputsusedforgelatinproductionarein

accordance with the religious standards of the Jewish

community.

4 HACCP Thiscertifiesthemanufacturingprocesswiththehighestand

(HazardousAnalysisand mostconsistentqualityandsafetyofproduct.Alsoensuresthe

Critical-ControlPoint) availabilityoffallbackmeasuresincaseofunfortunateevents.

5 ISO9001 This certification denotes that the production process is in

accordance with standards laid down by the International

StandardsOrganizations.

6 ISO14001 Thiscertificationsignifiesthattheenvironmentmanagement

systemisincompliancewiththeEnvironmentalManagement

SystemStandard.

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STERLING BIOTECH LIMITED

OPERATING AND FINANCIAL PERFORMANCE

Thehighlightsoffinancialperformanceduringtheyear2016-17areasunder:

l Thecompanyachievedaturnover(includingotherincome)of̀ 40,417Lacs.

l EBIDTAfromoperationsis̀ 1,655Lacs.

l Thefinancecostis̀ 36,980LacsleadingtoLossbeforetaxof̀ 61,680Lacs.

l Afterreducingthedeferredtax,thelossaftertaxis̀ 41,245Lacs.

l Networthasat31stMarch2017standsat̀ 127,609Lacs.

DEVELOPMENT IN HUMAN RESOURSES MANAGEMENT

Sterling believes that Human Resources always pay a very key role in the future growth of the company. It

recognizesemployeesasthemostvaluedasset.Byprovidingonjobandoffjobtraining,continuousdevelopment

and learning initiativesfor improvement inprofessionalcompetencies,themanagementaimstoachievehigh

standardsofhumanresourcedevelopment.

TheCompanyhasstrengthof801EmployeesasonBalancesheetdate.

WAY FORWARD

Wayforwardthecompanylooksforwardtoimproveinmarketingset-uptoreachtowiderrangeofcustomers

world-wise,diversifyproductportfolioofpharmaproductsthroughin-houseresearchandtocapitalizeonthe

increasingdemand.TheCompanyalsolooksforwardtotakecorrectiveactionsontheeffluentdischargeissueand

tighteningofqualitynormstomeettheglobalstandards,puttinginplacethecostcontrolmeasureswiththehelpof

betternegotiationwiththematerialsuppliers,improvementinandtighteningupofcostcontrolsystemforvarious

semivariableexpenses,etc.VariousstepsaretakenbytheCompanytoreduceitsfinanceCostandlookforwardto

reduceitsbankloans/debts.Thecombinedeffectofallthesefactorsareexpectedto befavorableforoverall

operationsoftheCompanyinthenextfewyears.

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STERLING BIOTECH LIMITED

Nitin Sandesara ManagingDirector

(DIN:00255496)

Chetan SandesaraJt.ManagingDirector

(DIN:00255671)

ForandonbehalfoftheBoardofDirectors

Place :Mumbai

Date :May30,2017