odyssey video communications ltd Management discussions

ODYSSEY VIDEO COMMUNICATIONS LIMITED ANNUAL REPORT 2004-2005 MANAGEMENT DISCUSSION AND ANALYSIS a. Industry structure and developments. The Company operates in the areas of media and marketing communications. It is projected that the ad industry will grow at an annual rate of 7% to 8%. Due to privatisation and globalisation and shackles being opened for FDI to come into the country in a big way, there is a potential for this industry. Many MNCs operating in the ad industry have come in with their own wholly owned subsidiaries and have got referral business Your Company has built a reputation over the years amongst its customers for quality work b. Opportunities and Threats. Entry of new businesses into the country due to liberalisation in FDI policy Retail being asked to come into the country in a big way. The Company can utilize its skills in the industry due to its domain expertise and past experience in working with international brands c. Segment-wise or product wise performance. The Company operates only in one pre dominant segment i.e, the advertising & Print Production industry. d. Outlook Despite working capital shortage and financial crunch, your Directors have endeavored and prioritized vigorous improvement in productivity of its employees and have been successful in keeping its clients happy on the delivery front. The Company is also negotiating with the secured lenders for relief and concessions. The Management looks to the future with optimism. e. Risks and concerns High attrition rate in ad professionals and high salary costs are the major risks the industry is facing Shortage of funds for the Company is a cause of concern for the short term. The Company having created a niche its services and by remaining competitive would be able to meet any situation arising out of the risks stated hereinabove. f. Internal control systems and their adequacy. The Companys internal control systems are in place and the management is of the opinion that they are adequate keeping in view the current level of operations of the Company g. Discussion on financial performance with respect to operational performance. The Companys operations have not been upto the mark in for the financial year under review. The Company is looking at ways and means of getting into new lines of work to enable the company to increase its bottom line. h. Material developments in Human Resources / Industrial Relations front, including number of people employed. The Company has professionals drawn from the filed of advertising and print production. The employees have been recruited keeping in view the current level of operations and the liquidity problems being faced by the Company.