Industry Structure and Developments: International rating agency Standard &Poors has sharply revised Indias growth forecast upwards to 7.9% for 2015-16,crediting the move to rising investment and fall in oil prices as it singled out thecountry in the region. Further, improvements in the fiscal and current account deficitsand some forward movement on resolving structural bottlenecks have helped improve thebusiness climate and make India attractive again to both domestic and foreign investors.Indias economic prospects look promising but there are still many challenges. Theindustry and service sectors both expanded, inflation declined, and efforts to reducebottlenecks in infrastructure investment buoyed sentiment and increased the countrysattractiveness to foreign capital flows. Net portfolio investment inflow recoveredstrongly to more than $35 billion.
The strong growth outlook is contingent on further acceleration in investment activity.Recent measures include accelerating environment clearances for infrastructure projects,easing the process of land acquisition for infrastructure and industrial corridors,allowing auction of coal mines to the private sector, and easing the compliance burden oflabor laws on small and medium-sized industries.
The new monetary policy framework, under which the primary objective is to maintainprice stability while remaining mindful of growth, would help in restraining inflation andimprove the coordination between monetary and fiscal policy. The impetus given to capitalexpenditure in the recent budget will improve the expenditure mix significantly and bodeswell for growth prospects. The governments Make in India campaign isexpected to further boost manufacturing industries and urbanization.
One of Indias most pressing policy challenges is to promote cities as engines ofeconomic growth and jobs. Ib fully reap the benefits of urbanization, the government mustmake further efforts to coordinate urban and industry planning to attract industries intocities, and provide the necessary supporting infrastructure.
Opportunities & Challenges: While economic sentiment is buoyant, availabilityand access to quality talent continues to be a serious impediment facing organizations.Your company is of the view that paucity of talent would continue to pose a problem overthe next 5 years. India is betting big on manufacturing through the Make inIndia initiative. However, the problem of attracting and retaining quality talentalso remains a key challenge for the manufacturing sector. In this context, your companyis addressing three 3 key segments: 1) Corporate Training Segment which is our keybusiness 2) Education segment where we have made some initial inroads to develop facultyand students so that they are made employable 3) CSR segment where we build capacities ofcorporate foundations and Not for Profits organizations who are working towards enhancinglivelihoods for communities through skill development.
Trainer Quality & Development: As the India growth story gains momentum. Themissing factor that could derail the skills initiative is the development of qualitytrainers who not only have to ensure quality of training but also build true market placecompetencies for life- long learning. In this emerging paradigm trainers should have a)Technical skills b) Soft Skills c) Pedagogy Skills d) Entrepreneurship development skills.In order to address this your company believes that trainers should be provided with aholistic blend of technical and soft skills training. Trainers form a critical part in thewhole institutional delivery mechanism of skill development. Thus enhancing the knowledgeand skills of trainers is imperative.
A need for succession planning: Rapidly growing industries, such as those driven bythe rise of digital media, often rely on relatively young and inexperienced managers totake on senior positions. By and large, these individuals have not yet developed aleaders perspective. The growth of that talent pool has not kept pace with those ofthe brands. The ultimate result of this lack of qualified successors senior leaders arepostponing retirement. Instead of developing and executing a clear succession plan,executives have been extending their tenure, lacking confidence that the next level ofmanagement is up to the task of leading.
Looking for Leaders : Companies have been so focused on growth that they have notinvested in developing the next generation of executives. In a study by Harvard BusinessPublishing, an overwhelming 88 percent of top Indian companies cited gaps in theirleadership practice as their top challenge in coming years. 15 to 18 percent ofleadership positions in these companies will be unfilled-or will be filled by peopleunderprepared for the jobs. The demand for preparing talent to be ready for leadershiproles is increasing and presents an exciting opportunity for your company.
Limited variety of experience at the top: Without a strong leadership pipeline inplace, star functional specialists are typically promoted to top roles. These individualsmay have a background focused within one domain, and may not have had the opportunity todevelop a broader perspective or set of skills. Some companies are now focusing towardstargeted on-the-job experiences and in-depth training. But most companies have investedlittle in this type of executive development. Thus, when functional specialists arepromoted into general management positions, few are well prepared and motivated to handletheir new roles.
Skilling Mid Level Managers: Traditionally, Indian companies operated in a markedlytop-down manner-the person with the corner office made the final decisions, and seniormanagers oversaw their specific silos. Now it is giving way to a more participativeapproach, more resonant with the younger generation and more effective for companies thatare too big to micromanage. But this new operating model can be effective only if skilledmanagers are available to fill the ranks. Young talent needs development and supervision,the lack of managers capable of providing this guidance has become more acutely felt.
Workplace Readiness: India lacks the educational institutions it needs, from theearliest years to the post-college level. Thousands of Indian university graduatesentering the workforce every year, are often not industry ready or equipped inthe skills of global business. This has contributed to a dearth of topnotch candidates anda growing talent war for those few with desirable skill sets.
Insufficient training for new recruits: Many Indian companies struggle withnew-hire on boarding programs. Often, the incoming class of MBA recruits isnot sufficiently integrated into the broader workforce, and companies put too much hopetoo early on these new hires shoulders.
The Next Generation: Many Indian executives recognize the above challenges, but areunsure what steps to take to overcome them. Your company has the experience in replicatingand implementing specific solutions that have been successful at Global companies andIndian companies instead of generic activities. Your company supports organizations inmaking talent management and development a key component of an enterprise buildingactivity.
CSR: Given the enormous shift towards CSR, the question for corporates is notwhether to engage in CSR, but to find the best possible way forward. Many of theprofessionals who are practicing CSR lack the skills required to craft and implement CSRprograms. Further, CSR has become an opportunity to enhance employee engagement thatreinforces employees belief in the companys vision and business values. DaleCarnegies research with NHRDN shows that highly engaged employees are moreproductive and have a positive impact on market capitalization of companies.
Outlook, Risks & Control: Using new data sources and a revised base year, thegovernment announced new GDP estimates in January, which suggest that the Indian economyis much stronger than was previously believed, and that growth may be closer to that ofChina. The Union Budget for 2015-16, which provided a balanced policy framework aimed atsupporting all sections of the economy. The business outlook for your company isoptimistic as the macro- economic environment is expected to improve thereby enhancingindustry investment. In this scenario a stable growth in business is expected.
Cautionary Statement: Your Company endeavors to perform and attempt to deliver thebest at all times. However, the statements made in this report describing theCompanys objectives, expectations or predictions shall be read in conjunction withthe government policies as issued and amended from time to time, the micro as well asmacroeconomic scenario prevailing at that time, global developments and such otherincidental factors that may extend beyond the control of the Company and Management.Keeping this in view, the actual results may materially vary from those expressed in thestatement.
Internal Control Systems and their Adequacy : Your Company ensures that appropriaterisk management limits, control mechanisms and mitigation strategies are in place throughits efficient and effective Internal Control System and the same completely corresponds toits size, scale and complexity of operations. The Company strives to put several checksand balances in place to ensure that confidentiality is maintained. Effective proceduresand mechanisms are rolled out by a full-fledge Internal Audit System to ensure that theinterest of the Company is safeguarded at all times. In addition to this, the RiskAssessment policy of the organization is reviewed on a quarterly basis by the AuditCommittee / Board of Directors of your Company.
Financial Performance: Total income achieved during the year under review is INR1911.30 lakhs as against INR 1651.65 lakhs in the previous year. Income from operations ofthe Company has been INR 1805.43 lakhs against INR 1525.82 lakhs in the previous year,showing an increase of 18.32%. After providing for taxation of INR 55.06 lakhs and bycreating deferred tax asset of INR 9.04 lakhs, the net profit of the Company is INR 116.02lakhs as against the profit after tax of INR 45.06 lakhs in the previous year. OperatingProfit (Income from operations less direct expenses) of the Company for the current yearis INR 403.84 lakhs as compared to INR 295.53 lakhs in the previous year, and hence hasincreased by 37% compared to the previous year, largely on account of increase inrevenues.
Human Resources: While growth and success are the prime motto of your Company, atthe same time it also realizes the importance of its intellectual capital. Continuousefforts are made to enhance manpower productivity through its comprehensive compensationand benefit plans for all its employees. In order to develop a healthy environment withinthe organization, we have a strong Performance Management System which ensures fairnessand growth of all individuals. A comprehensive code of conduct has been developed for allemployees which reinforces our work ethics. An average eight days of training per year foreach employee is directed at enriching leadership, behavioral, functional and technicalskills as well as bringing about a change in the attitude, knowledge and skill ofemployees. Thus, through this process of learning and concurrent rewarding, your Companyaims to equip its employees with essential skills and competencies that would enable themto step the ladder of success.
Pallavi Sanjay Jha , Chairperson & Managing Direct
M N Bhagwat , Director
Sanjay Jha , Whole-time Director
V K Verma , Director
Company Head Office / Quarters:
1 Construction House,
5 Walchand Hirachand Marg,
Phone : Maharashtra-91-22-67818181 / Maharashtra-
Fax : Maharashtra-91-22-22610574 / Maharashtra-
E-mail : email@example.com
Web : http://www.walchandpeoplefirst.com
Computech Sharecap Ltd
147 M G Road 3rd Flo,3rd Flr Opp Jehanagi,Art Gallery Fort,Mumbai-400023