prabhat telecoms india ltd Management discussions

OVERVIEW:

India ranks second in terms of number of telecommunication subscriptions, internet subscribers and app downloads globally. With 70 % percent of the population staying in the rural areas, the rural market would be a key growth driver in the coming years. India has a witnessed a 165% growth in app downloads in the past two years. The government has fast-tracked reforms in the telecom sector and continues to be proactive in providing room for growth for telecom companies. The Department of Information Technology intends to set up over 1 million internet-enabled common service centers across India as per the National e-Governance Plan.

FDI cap in the telecom sector has been increased to 100 per cent from 74 per cent; out of 100 per cent, 49 per cent will be done through automatic route and the rest will be done through the FIPB approval route.

The Government of India has introduced Digital India Programme under which all the sectors such as healthcare, retail, etc. will be connected through internet

COMPANY OUTLOOK:

Prabhat was established in 1997 as a telecom technical support company by the name Prabhat Enterprises. In 2004, Prabhat ventured in Sales and Distribution and further extended its arms into manufacture and assembly of the brand "Xccess & V3 Mobiles".

Every Prabhat Group company operates independently. Each of these companies has its own directors and shareholders, to whom it is answerable. The major Prabhat companies are Prabhat Technologies (India) Ltd. & Vee Three Informatics Limited.

Prabhat Technologies (India) Ltd., a Company engaged into design, assemble, and customize import and distribution of mobile handsets, wireless dongles / data-cards, data products and mobile / telecom accessories. We sell mobiles and internet data cards & smart phones / tablets, fixed wireless terminal and high-end telecom devices under brand name "Xccess". We sell our product to chain of distributors PAN India through distribution channel tie-ups with the operator.

The company has started to design, assemble and manufacture the telecom product under its own in-house brand in 2011. The company started to design and assemble the telecom devices like CDMA Mobile Handsets, CDMA Data Cards, FWT, Wi-Fi Routers, accessories etc under its own brand. The GSM feature handsets are designed, assembled and distributed under the brand name "Xccess". Similarly, the data product and smart phone Fixed, wireless Terminal, Tablet and other high end telecom devices are designed, assembled and distributed under the brand "Xccess". The company has recently launched its brand "Xccess" in online E-Commerce platforms which deal with Cosmetics, Books & Stationeries, Computer Accessories, Fashion Accessories, Gift items, Home D?cor, House Hold products, Toys, Garments, Clothes, Car Accessories, Electrical Goods, Home Appliances and Travel Accessories.

This entire set of activities, completes the value chain by providing the synergy of backward as well as forward integration.

Our Company comprises of various divisions, each handling independently into Research & Development, Sales & Distribution and Multi-Branded Retail. The company is now dealing in a variety of telecom products and gadgets like mobile handsets, mobile accessories for hi-end phones, tabs, etc. The total revenue of Prabhat Group, taken together, was around Rs. 198.97 Lacs in 2020-21.

We steadily strive to remain at the forefront in terms of both design and technological advancement. Our Company is dedicated to deliver the latest in breath taking technologies to customers in the quickest and extreme forms.

RISKS AND CONCERNS:

The Company have identified various elements of risks which in its opinion may threaten the existence of the Company and have formulated measures to contain and mitigate risks. The Company has adequate internal control systems and procedures to combat identified risks. The audit committee periodically reviews the risks which may potentially affect the companys operations or performance.

HUMAN RESOURCE:

The Industrial Relations scenario continued to be cordial. The Company regards its employees as a great asset and accords high priority to training and development of its employees. The Company recognizes that its human resource is its strength in realizing its goals and objectives.

INTERNAL FINANCIAL CONTROL SYSTEM AND ITS ADEQUACY:

The Company has a well-placed, proper and adequate internal financial control system which ensures that all assets are safeguarded and protected and that the transactions are authorized recorded and reported correctly. The Companys internal financial control system also comprises due compliances with Companys policies and Standard Operating Procedures (SOPs) and audit and compliance by in-house Internal Audit Division, supplemented by internal audit checks from Independent Internal Auditors of the Company.