qpro infotech ltd Management discussions

QPRO INFOTECH LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSYS The management of QPRO INFOTECH LIMITED presents below its analyses and performance of the Company for the year 2010-11 and an outlook for the future. The report conveys expectations on future performance based on an assessment of the current business environment. These could vary based on future developments. Industrys Structure and Development: Qpro Infotech Limited electronic Typesetting and publishing services company Going by tradition, the older generation specifically, is more accustomed to turning the pages of a book. However, the newer generations, with increased access to sources of digital information and natural acclimatization to its use will be more open to embrace digital content. Although scale of usage and revenue generated by the ePublishing industry is still way below its print counterpart, the scope has evolved over the years, especially with the emergence of digital and online media. The ePublishing models can be broadly classified as Online publishing, comprising of internet, intranet and extranet for content delivery and Offline publishing such as, CD Roms, DVDs and Memory cards. Apart from this, a very vital channel which can catapult the industry into a higher trajectory is the development and adoption of eBook readers. Though existing eBook reader such as Amazons Kindle has failed to live up to the expectation of ease of reading and access to seemingly unending content, partly because of publishers lack of willingness to share content and concern for Copyright and Digital Rights Management issues, which is a global phenomenon, newer gadgets to enter the market such as Apples iPad, touted for its low price tag and ease of use, has already shaken up the Japanese print industry. India too now has its own eBook reader launched by Infibeam, called Pi. Infibeam is an online bookstore with more than 4 million books and over 100,000 eBooks. India by virtue of its size, population and diversity, is one of the major book publishing country in the world. With young English speaking skilled population base and with more than 17,000 publishing houses generating content in more than 29 regional languages, the opportunities for the publishing industry, especially ePublishing is huge. Optimism stems from the fact that the Government of India has accorded top most priority status to education in its 11th five year plan. This initiative will have a cascading effect in terms of manifold increase in the number of academic institutions both domestic and foreign with many offering e-learning courses, increased student base and a host of activities related to content publishing. According to CLSA Asia-Pacific Markets education sector report, the size of Indias e-learning market is US $27 million and is likely to grow to US $280 million by 2012. Regulatory and Legal Risks Qpro is exposed to regulatory and legal risks in carrying out its business. These include legal proceedings on properties, customer complaints, noncompliance of regulations including environmental regulations and those pertaining to the hospitality sector. The company has systems and controls in place to mitigate these risks and minimize instances of non- compliance. Risk Management Systems The Companys risk management strategy is based on a clear understanding of various risks, disciplined risk assessment and measurement procedures and continuous monitoring. The policies and procedures established for this purpose are continuously benchmarked with best practices. Internal Control System The Company has adequate internal control procedures commensurate with its size and nature of the business. These business control procedures ensures efficient use and protection of the resources and compliances with the policies, procedures and status. The internal control system provides for well-documented policies, guidelines, authorizations and approval procedures. Discussion on Financial performance with respect to operational performance: Your Company has made a turnover of Rs.1,69,232.00/- as compared Rs1,70,97,261/- of previous year and has made a Loss after Tax of Rs.8,470.00/-as compared to Rs.-6,63,245.00/- in the previous year. Material developments in Human Resources /Industrial Relations front, including number of people employed. There have been no material changes / developments in Human relations front. For and Behalf of the Board of Directors For QPRO INFOTECH LIMITED Sd/- S.Sundaram Chairman Chennai, the 26th day of August 2011