goplee infotech ltd Management discussions

GOPLEE INFOTECH LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure and Development: The domestic market presents a significant opportunity as IT spending in India is growing at a pace faster than in any other country in the Asia Pacific region. Increased IT adoption is not only by the large/mid-size companies, but also by the 35 million strong small and medium business (SMB) segment is expected to drive growth in the future. While the last year outlook for global technology related spending was affected by the recessionary environment, a rebound is expected from current year and onwards. Moving forward, the IT sector faces a transforming macro economic environment, rapidly changing customers need, evolving services and business models, and rising stakeholders (employees, investors) aspirations. These forces are expected to redefine the nature of demand and supply for the industry, and also redefine the strategic imperatives for businesses in future. We believe that there are opportunities as well as constraints and are exploring different processes to effectively meet expectations on cost effective business solutions. Despite the near-term uncertainties, Indias medium to long term economic outlook remains positive and supports forecasts of increasing technology penetration. The lessons from modern financial history are that recoveries from financial crisis are always slow and this has been an unusually synchronized global downturn, the upturn may be slower. Strategically, our focus is in providing IT solutions and related services, which is an evergreen requirement of any business segment. Opportunities and threats: The Companys business broadly consists of creating IT awareness and providing complete IT solution. The Company is placed with wide array of products to cater to the demand. Company believes that in future, Indian product companies will create greater market share in global software markets and is all set to capitalize on the upswing in the industry. The strength of a company is based on simple foundation of delivering quality services, reliable solutions, long term partnerships, and a price/value structure. Segment wise performance: The company is engaged in IT services and related activities. It has generated a considerable Income from the operations of IT services in the year 2009-10 and looking forward to enter new areas of IT industry in order to generate more revenues. Outlook: Company has a clear vision in the IT Sector and will develop it very fast, all present infrastructure plan and long term plan to generate more and more business, employment, awareness and reward to all related clients and people like Share holders, Management people and all Staff members, so as to have sincerity and integrity towards the fate of the company. The Company is making all efforts to accelerate growth of its business. It expects to improve its position in the market and become more profitable, increase efficiency and controlling cost. Risk and concerns: Your Company operates in an environment, which has risk particular to the Industry. The Company may encounter with many risk, some of which can be classified as Economy risk, Product risk, Industry risk, Competitive pressure, Customer Relationship Management risk, Legal & Statutory Compliances, Security & Business Continuity risk and Delivery disputes. Internal control system: The Company has an adequate system of internal controls to see that all the assets are safeguarded, there is efficiency in operations, optimum utilization of resources, effective monitoring thereof and compliance with applicable laws and regulations. Developments in human resources and industrial relations: The information required under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 is not required to be given as no employee falls under the purview of this section. The Company continued to maintain cordial industrial relations with all the employees throughout the year under review. Forward looking statement: This section of the Annual Report has been included in adherence to the spirit enunciated in the Code of Corporate Governance. Shareholders and Readers are cautioned that the opinions expressed by the management may be forward looking statements in the current scenario. Actual results, performances, achievements or sequence of events may be materially different from the view expressed in the statement.