Global Economic Scenario
The baseline forecast for World Economy is for growth to fall from 3.4
percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced
economies are expected to see an especially pronounced growth slowdown, from 2.7 percent
in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial
sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy
growth falling below 1 percent. Global headline inflation in the baseline is set to fall
from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but
underlying (core) inflation is likely to decline more slowly. Inflation?s return to
target is unlikely before 2025 in most cases.
The global economy has begun to improve, but the recovery will be weak,
according to the OECD?s latest Economic Outlook. Global real GDP is forecasted to
grow by 2.7 percent in 2023, down from 3.3 percent in 2022. We expect further slowing to
2.4 percent in 2024. Economic growth is moderating under the weight of still high
inflation and monetary policy tightening. Rather than a global recession, we expect a
relatively subdued economic outlook. Growth is generally strongest in emerging Asian
economies, and weakest in Europe and the US.
The 10-year economic outlook signals a prolonged period of disruptions
and uncertainties for businesses, but there are also opportunities.
Indian Economic overview
The Union Minister for Finance & Corporate Affairs Smt. Nirmala
Sitharaman tabled the Economic Survey 2022-23 in Parliament, which projects a baseline GDP
growth of 6.5 per cent in real terms in FY24. The projection is broadly comparable to the
estimates provided by multilateral agencies such as the World Bank, the IMF, and the ADB
and by RBI, domestically.
Despite the three shocks of COVID-19, Russian-Ukraine conflict and the
Central Banks across economies led by Federal Reserve responding with synchronized policy
rate hikes to curb inflation, leading to appreciation of US Dollar and the widening of the
Current Account Deficits (CAD) in net importing economies, agencies worldwide continue to
project India as the fastest- growing major economy at 6.5-7.0 per cent in FY23. Despite
the external shocks, India?s underlying economic fundamentals are strong and despite
the short-term turbulence, the impact on the long-term outlook will be marginal.
IMF estimates India to be one of the top two fast-growing significant
economies in 2022. Despite strong global headwinds and tighter domestic monetary policy,
if India is still expected to grow between 6.5 and 7.0 per cent, and that too without the
advantage of a base effect, it is a reflection of India?s underlying economic
resilience; of its ability to recoup, renew and re-energise the growth drivers of the
economy. India?s economic resilience can be seen in the domestic stimulus to growth
seamlessly replacing the external stimuli. The growth of exports may have moderated in the
second half of FY23. However, their surge in FY22 and the first half of FY23 induced a
shift in the gears of the production processes from mild acceleration to cruise mode.
INDUSTRY STRUCTURE & DEVELOPMENTS:
IT Industry is the most fast paced growing industry globally. People
are transmitting from traditional business models to digital and software-based business
models. In every industry Software and computing technology are transforming businesses
around the world in very profound and fundamental way. Digital and Software based business
models are preferred in every industry and that is why the IT industry is growing. Indian
ITs core competencies and strengths have attracted significant investments from major
countries.
The global information technology market is expected to grow from
$8179.48 billion in 2022 to $8852.41 billion in 2023 at a compound annual growth rate
(CAGR) of 8.2%. The Russia-Ukraine war disrupted the chances of Global economic recovery
from the COVID-19 pandemic, at least in the short term.The information technology market
is expected to grow to $11995.97 billion in 2027 at a CAGR of 7.9%.
Many companies are now choosing applications hosted in the cloud for
their day-to-day operations. For example, according to statistics provided by
hostingtribunal.com, 60% of computing workloads were running in the public cloud in 2019.
Similarly, 94% of enterprise workloads are expected to be processed by cloud data centers
in 2021. Companies are also opting for cloud-based data storage; thus boosting the demand
for IT services.
SWOT ANALYSIS: Strengths and opportunities:
The main aim of the Company is to provide quality, innovative and good
standard services to its customers. Your Company constantly focuses on its development,
providing efficient and quality services and accurate and timely services at the scale
that it operates. It always respects and encourage new ideals, innovative approaches and
try to incorporate them into its services. It looks forward to create a healthy market for
its customers to provide them Information and Technology services, digital services and
other IT services as per the new market opportunities.
Weaknesses and Threats:
In the normal course of business, the Company is exposed to certain key
risks like volatile global political and economic scenario, Restrictions on global
mobility, location strategies, business model changes, litigation risks, currency
volatility, breach of data privacy and protection, credit risks, risks associated with
competition, Non-compliance to complex and changing global regulations. In any business,
risks and prospects are inseparable. However as a responsible Management, the Company
takes necessary steps to minimize the risks and maximize returns to its stakeholders. The
risk Management policy of our Company also ensures mitigation of risks and smooth working
of the functions of the Company.
FUTURE OUTLOOK:
Economic headwinds seem to be gathering for business in general, and
for the technology industry specifically. But there are many regulatory incentives that
may spur innovation and growth in 2023 and beyond. To survive and thrive, technology
companies should rededicate their efforts to improving supply operations, modernizing
infrastructure, and leveraging growth opportunities.
Heading into 2023, there is little precedent for projecting the future.
The economy is showing some signs of stability, but there are lingering fears over
continued challenges or further surprises.The Information Technology (IT) sector is moving
at a rapid pace with innovations in technologies. Due to the Corona virus pandemic,
organizations have now started shifting to invest in digital platforms and technology
capacity to master future challenges. Until the pandemic hit, most onlookers expected that
there was broad-based strength in the IT outsourcing market and that it would continue for
the foreseeable future.
Cloud computing and artificial intelligence continue to dominate the
technology industry, edge computing is also making headlines. Your Company is planning to
create a strong partner network and is going to work with some other technology providers
to develop cloud transformation platform to provide cloud computing solutions and services
in future.
INTERNAL CONTROLS AND ITS ADEQUACY
The Company has a good Internal Control system which is commensurate
with its size and scale. It evaluates the adequacy of all internal controls and processes,
and ensure strict adherence to clearly laid down processes and procedures. The Audit
Committee of the Board of Directors regularly reviews the adequacy and effectiveness of
Internal Control System.
The Company makes sure that all the compliances are maintained properly
in written form and is well communicated to all the people working in our Company. Our
processes work in a transparent manner to avoid any type of frauds and errors within the
organization.
The Internal Control System of the Company takes care to provide
reliable and accurate data that is necessary for decision making and to run business
activity efficiently, safeguard the assets of the Company and ensures that rules and
regulations are to be followed by the Business personnel. The Control Systems provide a
reasonable assurance of recording the transactions of its operations in all material
aspects and of providing protection against misuse or loss of Company?s assets.
SHARE CAPITAL:
The Paid-up Share Capital of your Company is Rs.5,05,00,000 divided
into 50,50,000 Equity shares of Rs. 10/- each. During the year under review, there was no
further issue of shares.
SECURED LOANS:
Secured Loans of the Company are NIL.
FIXED ASSETS:
Fixed assets of the Company amount to Rs.392.56 Lacs.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS:
Manpower is the biggest strength of any organization. Your Company has
a meagre but skilled, highly motivated and well-trained set of human resources as the
Company believe that a motivated and empowered workforce is the key to sustained
competitive advantage. There are completely defined procedure when it comes to hiring of
employees based on projects in hand, so that the requirement exactly meets with the
qualification and skills of potential candidate. As information technology requirements
are very dynamic with the changing business environment, continuous and appropriate
training to the personnel are crucial so that their knowledge and skills never turn
obsolete.
Industrial relations have become one of the most delicate and complex
problems of modern industrial society. Industrial progress is impossible without
cooperation of employees and harmonious relationships. Therefore, it is in the interest of
all to create and maintain good relations between employees and employers (management).The
Company also has good relations with other companies in the similar stream of business
andit shall be useful in understanding the market behavior and phenomenon in depth and to
stay updated with competitors both in growth and adoption of new technologies for cost
effective operations.
Disclaimer:
The above Management Discussion and Analysis contains certain forward
looking statements within the meaning of applicable security laws and regulations. These
pertain to the Company?s future business prospects and business profitability, which
are subject to a number of risks and uncertainties and the actual results could materially
differ from those in such forward looking statements. The risks and uncertainties relating
to these statements include, but are not limited to, risks and uncertainties, regarding
fluctuations in earnings, our ability to manage growth, competition, economic growth in
India, ability to attract and retain highly skilled professionals, government policies and
actions with respect to investments, fiscal deficits, regulation, etc. The shareholders
and readers are cautioned that in the case of data and information external to the
Company, no representation is made on its accuracy or comprehensiveness though the same
are based on sources thought to be reliable. The Company does not undertake to make any
announcement in case any of these forward-looking statements become materially incorrect
in future or update any forward looking statements made from time to time on behalf of the
Company.
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