MANAGEMENT DISCUSSION AND ANALYSIS
1. COMPANY PROFILE:
The Company, 'Computer Point Ltd.'(CPL) is a pioneer and well known Institution in ITenabled services. The spate of growth of Indian Industries over the recent past waspossible by the extension of knowledge education and training in IT enabled services. Inthis arena CPL has so far contributed equally along with other prominent Institutions inthe country. Computer operations and knowledge has been become essential in the day-todayoperations of Industries and government departments. The government is spending a hugeamount extension of Computer Education right from the school and college levels. CPL cannot be silent on-looks. It has developed a huge net-work spread over the country,especially in the eastern part of the Country. In the process the Company has entered intocollaborations with state education departments and various universities for extendingComputer and Management Education and training from the basic school level upto Universitydegrees in respective fields. The company is conducting degree courses in businessmanagement in collaborations and' license from the Punjab Technical University.
2. INDUSTRY STRUCTURE AND DEVELOPMENT:
India economy has recorded a rapid growth over the last few years, followed by a largenumber of Indian companies extending their operations globally and competing with otherforeign multinationals in equal footing and even acquiring control over a number of them.Such rapid growth of Indian Economy was made possible by the meteoric growth of servicesector like Information Technology (IT and IT enabled services) industry which is expectedto continue its growth process by about 25% during the year to come. This growth processof IT enabled services is appropriately complemented by the necessary development andextension of Education and Training imparted by a host of Management and computerEducation Institutions. In this background 'Computer Point1 (CPL) which has alreadyestablished its presence with a brand equity in Computer & Management Training andEducation stands to have extensive opportunities ahead.
3. OPPOUTUNITY AND THREAT:
Your company has a huge network of franchisee spread all over the country especially inthe rural areas through which it carries out its educational business. Your Company'sproducts enjoy wide acceptance in various users Industries including widely dispersedEducational institutions and universities. Yet in the ever changing corporate andtechnology scenario, it is always necessary to keep regular vigilance and to maintain aconstant pace with Technology developments and to update one's system of operations. Thedynamic and energetic infusion in company's management team is capable of utilizing forthe Company's benefit.
The funds which is raised in the preferential allotment was utilized in liquidating thesecured terms loan to boost up the liquidating position and that too is expected to besupplemented by setting up green field projects for specially design IT courses asproposed. For this company has entered in an agreement with the Punjab TechnicalUniversity for imparting their professional courses like MBA, MCA, BBA, etc.in the easternRegion of the country.
Barring a few unforeseen, the Company is confident to maintain its growth rate and onceits liquidity problem is solved, it is definite to accelerate with higher and higherquality services to its customers and students.
5. RISK AND CONCERNS
The Education sector in India is highly fragmented the sector is mainly dominated bythe small regional players having presence in their own region like city or state. Thereare a very few companies in India having a brand name and nation wide presence. ComputerPoint is one of the Companies having a nation wide presence especially in Eastern Indiaregion. Since there are a few players more and bigger players are eyeing this sector as anice segment for the business. Thus many new big players are entering in the market withbig capital expenditure plans. Again the sector is highly dependent on the Govt. budgetarysupport for imparting education in the country. Due to rising fiscal deficit Govt. mayreduce the budgetary support which may have an impact on the performance of the Company.
6. INTERNAL CONTROL SYSTEM:
The Company has proper and adequate system of internal controls to ensure that allassets are safeguarded; transactions are authorised, recorded and reported correctly. Thecontrols also ensure compliances with policies and statutes. The operational managementdrives its control over business processes through operational systems, procedure manualsand financial limits of authority manual, which are being reviewed and updated on an ongoing basis with an objective to improve systems and efficiency of operations.
The scope of the audit activity is mainly guided by the annual audit programmedeveloped by the internal audit team of the company in consultation with the statutoryauditors, which is first reviewed by the management committee of the Board of Directors.The Internal audit programme is aligned o t the existing system and procedures, financiallimits of authority and also the key risk areas.
Internal audit department carries out audit throughout the year covering almost allareas of operations including the follow up action. The Audit Committee of the Board ofDirectors reviews the internal audit report alongwith the direction/action planrecommended by the management committee and the implementation of corrective actions.
7. HUMAN RESOURCES DEVELOPMENT & INDUSTRIAL RELATION
The company believes that the quality of its employees is the key to its success in thelong run and is committed to provide the necessary human resource development and trainingopportunities to equip them with the skills, which would enable them to adapt tocontemporary technological advancements.
Industrial relations during the year continues to be cordial and the Company iscommitted to maintain good industrial relations through negotiations, meetings etc.
| ||For and on Behalf of the Board |
| ||S. Jain Managing Director |
|Date: 10th July 2009 ||R. Gupta Director |
|Place: Delhi || |