Management Discussion And Analysis
The financial statements have been prepared as per the requirements of the CompaniesAct, 1956. There are no material departures from the prescribed accounting standards inthe adoption of the accounting standards. The management of the company acceptsresponsibility for the integrity and objectivity of these financial statements, as well asfor various estimates and judgments used therein. The estimates and judgments relating tothe financial statements have been made on a prudent and reasonable basis, in order thatthe financial statements reflects in a true and fair manner, the form and substance oftransactions, and reasonably present the Company's state of affairs and profits for theyear
2. Industry Structure and Developments
a. Overview of Mobile VAS business and ProZeal:
In continuation to the commitment in Mobile VAS business, company has developed SMSsubscription packs of superior quality which have been approved by the telecom operators.Company sees a bright future in the niche area of being a leading VAS promotion agency aswell as content provider. At the same time it is adding other reputed content providers aspartners, as well as expanding to other telecom operators.
b. Company's core banking solution "KeenBank", which is built on a flexiblearchitecture, affordable by the Urban Cooperative Banks has now gained popularity in thissegment. It expects to gain a sizeable market share, since UCB's are clamoring foraffordable solution for quick compliance to RBI regulations.
c. Payment gateway business
Company has entered into agreements with leading Internet Payment Gateways formarketing its IVR solution as partners. It has applied for patent for its I2FA productwhich will completely eliminate the problems arising out of Second factor authenticationimposed on IVR transactions. It has added several merchants for its payment gatewayindustry within the first year of launching operations.
3. Further activity on SEZ development
Government's plans on PCPIR investments in the area where your company has a sizeableestate are now getting more crystallized. As a result management is viewing at taking adecision on the appropriate time for further steps on this matter during this year.
4. Opportunities and Threats
Your company's product line in VAS promotion business will be a big asset in theopportunities opening up due to operators' objective to earn substantial earnings from VASbusiness. Your company's technology alliances with several major payment gateways willgive it a solid footing in this industry.
Like all other IT and related industries, there is a constant threat of employeeattrition. Company has put in place various measures including proposal to offer ESOPsamongst others.
5. Segment-wise Performance
The company' has successfully focused its thrust on Information Technology and telecomrelated activities and hence most of the activity is in this line.
VAS promotion business as well as direct VAS business along with Payment Gatewaybusiness are expected grow and your company will utilize its distinct advantages in theform of manpower and technology for quick penetration and consolidation.
7. Risks and concerns
The management does not perceive any significant risk in these lines of business.
8. Internal Control system and their adequacys
Your Company has adequate internal control system using internal resources for thenature and scale of operations .As such it is continuously striving to improve thesesystems and appoint external agencies if necessary, as and when the operations grow to thedesired level.
9. Discussions on financial performance with respect to operational performances
Due to the heavy response from the user groups, there is significant growth in therevenues of the main division of the company with a major jump in the bottom line. Due tocompany's policy of adding value to the product by adding more modules the yields areexpected to increase in the existing product lines.
10. Disclosures on transactions
The company has no adverse transactions with any of its directors or members of theboard and/or the company. The transactions with related Appear in the notes to theaccounts.