MANAGEMENT DISCUSSION AND ANALYSIS:
OVERVIEW:
The Financial Statements have been prepared in compliance with the requirements of theCompanies Act, 1956, guidelines issued by the Securities and Exchange Board of India(SEBI) and the Generally Accepted Accounting Principles (GAAP) in India. Our Managementaccepts responsibility for the integrity and objectivity of these financial statements, aswell as for the various estimates and judgments used therein. The estimates and judgmentsrelating to the financial statements reflect in a true and fair manner the form andsubstance of transactions, and reasonably present our state of affairs, profits and cashflows for the year.
BUSINESS ANALYSIS:
CTIL Limited is a leading global business and information technology services companythat leverages deep industry and functional expertise, leading technology practices, andan advanced, global delivery model to help clients transform their highest-value businessprocesses and improve their business performance.
The Company's professionals excel in enterprise solutions, supply chain management,client relationship management, business intelligence, business process quality,engineering and product lifecycle management, and infrastructure services, among other keycapabilities. The Group of subsidiary spans Infrastructure, BPO Services, e-governance,Information technology and the Company development and delivery centers in the Hong Kong,Dubai and Singapore serve numerous clients.
BUSINESS OUTLOOK AND PROSPECTS:
• The company is confident of sustainable growth
• The global technology related spending is expected to grow, led by adoption ofoutsourcing which will benefit the company
• Greater focus on cost and operational efficiencies in the global environment isexpected to enhance global sourcing
• The company will continue to focus on tactical measures in order to improvemargins. Such measures may include price increases, more value added services, costsavings through fresh hiring, higher efficiency and productivity.
DIVERSIFICATION PLAN:
Having achieved the growth in software sector and with business exposure gained overthe years, the company envisages diversification plans to foray into e-learning space.
FUTURE OUTLOOK:
The company continued the growth momentum with a rise of 9.23% in revenues and 31.55%in profits over the previous years on consolidated basis. Future of the company is verypromising and bright in view of its growth plans by itself and through its subsidiaries.During the last two years, the company has identified e- learning as a thrust area forfuture growth and has undertaken considerable Research and Development in the e-learningspace.
Online education at CTIL is created around the principle of using advanced technologyand enhanced delivery methods to make classes accessible and easy to use. Students cannavigate lessons and explore various modules with the click of a mouse, and communicatewith fellow students and faculty via email and message boards. User-friendly onlineclassroom environment makes learning interactive and enjoyable. Classes, academicresources, and support services are all easily accessible. CTIL offers a full range ofsupport services, including technical support available by phone, email, and live chat.Students will find is a commitment to providing them with opportunities to succeed.
The Company was entered Memorandum of Understanding with US based company i.e. ECGTechnology, LLC, a company organized and existing under the laws of the State of Delawarewith its office at 2 Greenwich Office Park, Suite 300, Greenwich, CT 06831, USA ("ECG").CTIL intends to acquire ECG after obtaining necessary internal approvals to do so andsubject to due diligence.
ECG is an engineering technical and design consulting company with a significant U.S.presence and is currently assisting in the development of a paper Minimill in the UnitedStates. ECG has the objective of assisting in the development of a Greenfield Minimillpaper project in the U.S Post Acquisition ECG will become a 100% owned subsidiary of CTILand CTIL will be responsible for all expenses of ECG and all revenues and profit from ECGwill be rolled up into CTIL.
OPPORTUNITIES AND THREATS:
Presented below is management's assessment of some key potential opportunities andthreats associated with its business. The management intends to leverage suchopportunities in an effective manner to optimize business advantages and is also focusedto create effective mitigation strategies for all potential threats that could impact thebusiness operations. A more detailed Risk Management Report is available elsewhere in theannual report.
Opportunities:
The company, on a continuous basis, scans the market for scalable opportunities and hasover the past twelve months identified some key areas of growth opportunities. Theseopportunities are in the areas of Health Care and Insurance BPO Services, e-governance,e-learning. The company is making concerted efforts and investments to move up the valuechain in its chosen markets and acquiring new competencies and services. It includesstrengthening of domain knowledge, hiring highly talented sales and marketing managers,restructuring of businesses, project management and investments in new geographies. Thecompany is experiencing significant traction from its existing customers and is receivingseveral enquiries from potential customers in its chosen markets. The company continues tostrengthen and build relationships with its current and prospective customers as well asits global delivery model to ensure a low total cost of ownership for the customer.
Threats:
Following are some of the major risks, which the management believes form a part of thecompany's business and the company seriously engaged itself to mitigate them.
• Financial Risks - foreign currency rate fluctuations
• Business Portfolio Risks - includes vertical domain concentration, serviceconcentration, client concentrations and geographical concentration.
• Legal and Statutory Risks -includes contractual liabilities & statutorycompliances
• Competition Risks - New competitors may enter the markets in which the companyoperates
• A more detailed analysis of the above appears in the Risk Management report inthe Annual Report.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
Your company has in place adequate system of internal control commensurate with itssize and nature of its operations to ensure that all assets are safeguarded and protectedagainst loss from un-authorised use or disposition and that transactions are authorized,recorded and reported correctly, Management continuously reviews the Internal Controlsystems and procedures to ensure orderly and efficient conduct of business.
HUMAN RESOURCES DEVELOPMENT:
The company continues to benchmark and build its HR practices to help attract, retainand develop requisite talent to support its growth. HR's ability to support businessstrategy with its human capital strategy is an important determinant to the company'sfuture business performance. The company has put in place robust recruitment processes andhelped scale critical engagements in a very short span of time. The principle feature ofthe company's HR strength is its multipronged talent acquisition and retention strategy.These include talent acquisition and building the verticals with varied domainspecialists, leadership development initiatives and successful implementation ofcomprehensive employee engagement plan which engages the body, mind and soul of theemployees. HR plays a key strategic role to support the organization and its variousecosystems in achieving various goals and targets set by deploying best practices andmeasures.
CAUTIONARY STATEMENT
Certain statements made in the Management Discussion and Analysis Report relating tothe company's objectives, projections, outlook, expectations, estimates and others mayconstitute forward-looking statements within the meaning of applicable laws andregulations. Actual results may differ from such expectations, projections and so onwhether express or implied. Several factors could make a significant difference to thecompany's operations. These include climatic conditions and economic conditions affectingdemand and supply, government regulations and taxation, natural calamities and so on overwhich the company does not have any direct control. Readers are cautioned not to placeundue reliance on this forward-looking statement. The following discussion and analysisshould be read in conjunction with our financial statements included herein and the notesthereto.
3. CODE OF CONDUCT AND ETHICS FOR DIRECTORS AND SENIOR MANAGEMENT:
The Company has laid down a code of conduct for all Board members and senior managementpersonnel of the company. The code has been circulated to all the members of the Board andSenior Management and the compliance of the same has been affirmed by them.