advent computer services ltd Management discussions

The company needs to build execution capability in current IT/Telecom platforms and technologies in order to generate profitable revenues from projects.

The optimal way to achieve this is to acquire existing companies that have both business as well as proven execution teams with the requisite skills required to execute such projects.

Accordingly, the company is actively in the process of qualifying one or more such target companies for acquisition.

This strategy has the potential to deliver both revenues and profits to the company in the short term.

The company has identified investors who are willing to fund such acquisitions.

The company has been working on becoming the execution partner for an international company that is in the process of launching a secure mobile financial transaction platform for banks in India.

Given the current pandemic the company is very mindful of the economic challenges ahead and is keeping costs at a manageable level.

OPPORTUNITIES

The long term opportunity for the company is to leverage its mobile banking/payment platform technology. The short term opportunity is to undertake any IT project that will deliver revenues/profits for the company.

The company is also seeing a significant opportunity in rolling out remote health monitoring services. THREATS

The ability to raise capital to support the acquisition strategy of the company remains the main challenge. OVERALL OUTLOOK OF THE COMPANY

The company sees a good future from its acquisition strategy. This approach reduces the business and marketing risks since the acquisitions will come with a strong order pipeline and good execution skills, infrastructure and resources.

INTERNAL CONTROL SYSTEM

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board & to the Chairman & Managing Director. The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and recommendations along with corrective actions thereon are presented to the Audit Committee of the Board.

FINANCIAL PERFORMANCE

1. Financial Statements

The financial statement for the year ended 31^st March, 2020 have been prepared in compliance with the requirements of the Companies Act,2013 and generally accepted accounting principles in India.

2. Fixed Assets

During the year, the company has incurred nil expenditure on Fixed Assets of the Company.

3. Inventories Not Applicable

4. Sundry Debtors

The sundry debtors as on 31^st March, 2020 were Rs.82.15 lakhs.

5. Financial Performance

The net loss for the year was Rs. 19.16 lakhs as compared to net loss of Rs. 43.72 lakhs in the previous year.

6. Risks and concern

As it is well known, the business of software is associated with various risks and competition. The fast obsolescence of technologies and the availability of advanced technologies at reasonable costs are also areas of concern. However, the management would endeavor to overcome these risks and concerns with suitable steps at appropriate time.

7. Human Resources

The company is outsourcing required manpower and hence the employees strength is very less. The company is not facing any human relationship problem.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates or expectations may be "forward looking" within the meaning of the applicable securities, laws and regulations. Actual results could differ substantially or materially from those expressed or implied. Important factors that would make a difference to the Companys operations include a downtrend in the global markets, changes in government policies and regulations, tax regimes, litigation and significant changes in the political and economic environment and such other factors.