Accord Synergy Ltd Management Discussions.
1. INDUSTRY STRUCTURE & DEVELOPMENTS:
We are offering support services to the high end telecom segments such as network planning & optimization, network planning & optimization, network rollout, managed services and manpower solutions through sub-contracting basis. We provide all services related to planning, installation & commissioning, operation, modification and maintenance of telecom networks and provide manpower solutions to our customers. We are offering a wide variety of services and solutions i.e. technical site surveys, radio surveys, network planning, radio and core equipment (BBS, RBS 2G, 3G and LTE) installation, installation supervision and commission/ integration services to a wide variety of equipments and vendors.
We undertake this activity through engineers and technical staff deputed on client sites/ offices. We believe that we have the strength and expertise to undertake multi-site projects pan India. We cater most of the telecom operators and telecom equipment manufacturers operating in India. We believe that we have fully equipped maintenance team which is responsible for regular maintenance of telecom networks.
Telecom Tower Maintenance Industry - Indian and Global:
Telecom towers form the backbone of wireless networks and provide last mile connectivity to subscribers. The telecom tower industry has rapidly grown in a short span of time. Accord Synergy Limited has played a pioneering role in shaping the industry, and is among the few telecom tower company in India to get listed on Indian Stock Exchange.
India is currently the worlds second-largest telecommunications market and has registered strong growth in the past decade and half. The Indian mobile economy is growing rapidly and will contribute substantially to Indias Gross Domestic Product (GDP), according to report prepared by GSM Association (GSMA) in collaboration with the Boston Consulting Group (BCG).
The liberal and reformist policies of the Government of India have been instrumental along with strong consumer demand in the rapid growth in the Indian telecom sector. The government has enabled easy market access to telecom equipment and a fair and proactive regulatory framework that has ensured availability of telecom services to consumer at affordable prices. The deregulation of Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and a top five employment opportunity generator in the country.
The Indian telecom sector is expected to generate four million direct and indirect jobs over the next five years according to estimates by Randstad India. The employment opportunities are expected to be created due to combination of governments efforts to increase penetration in rural areas and the rapid increase in smartphone sales and rising internet usage.
International Data Corporation (IDC) predicts India to overtake US as the second-largest smartphone market globally by 2017 and to maintain high growth rate over the next few years as people switch to smartphones and gradually upgrade to 4G.
Driven by strong adoption of data consumption on handheld devices, the total mobile services market revenue in India is expected to touch US$ 37 billion in 2017, registering a Compound Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.
India is expected to have over 180 million smartphones by 2019, contributing around 13.5 per cent to the global smartphone market, based on rising affordability and better availability of data services among other factors.
According to a report by leading research firm Market Research Store, the Indian telecommunication services market will likely grow by 10.3 per cent year-on-year to reach US$ 103.9 billion by 2020.
According to the Ericsson Mobility Report India, smartphone subscriptions in India is expected to increase four -fold to 810 million users by 2021, while the total smartphone traffic is expected to grow seventeen-fold to 4.2 Exabytes (EB) per month by 2021.
According to a study by GSMA, smartphones are expected to account for two out of every three mobile connections globally by 2020 making India the fourth largest smartphone market. Total number of Fourth-Generation (4G) enabled smartphone shipments in India stood at 13.9 million units in the quarter ending December 2015, which was more than 50 per cent of total shipments, thereby surpassing number of Third-Generation (3G) enabled smartphone shipments for the first time. Broadband services user-base in India is expected to grow to 250 million connections by 2017.
|2. SWOT Analysis|
|Qualified and experienced management team and employee base||Working capital intensive business|
|Dependent on few clients|
|Ability to offer end to end telecom solutions|
|Pan India reach|
|Established relationship with our clients|
|Timely completion of awarded work|
|High growth potential||Increased competition from local & big players|
| Change in Government Policy|
3. Risks and concerns:
In todays dynamic business environment Risk Management is an essential function to have sustainable and effective business model in place in India. Risk Management encompasses practices related to identification, analysis, evaluation, treatment mitigation and monitoring of the strategic, external and operational controls risks to achieving our key business objectives. Risk management seeks to minimise the adverse impact of these risks, thus enabling the Company to leverage market opportunities effectively and enhance its long term competitive advantage.
The management of the Company is cautious about the proper risk management across the Company. The focus of risk management is to access risks, monitor, evaluate and deploy mitigation measures to manage these risks within our risk appetite.
Also to add that the revenues from our existing business lines are all dependent on the sustainability of telecom sector, we believe that macro-economic factors including the growth of the Indian economy, interest rates, as well as the political and economic environment, have a significant direct impact on our business, results of operations and financial position.
4. Environment Health & Safety:
The Company is committed to health and safety of its employees, associates and contractors; and instills it as a value. And the Company has also formed H&S team to manage health and safety in its operations and to build safe culture across the Company. Also the Company has zero tolerance policy for any OHS/EHS violation.
Further, it has set in place documented procedures which ensure the Health, Safety and Wellbeing of its employees, Contractors, Assets and Customers property. The Company has set the HSE policy, objectives and shared the responsibility to continually improve the HSE performance. Further the Company is a OHSAS 14001: 2015 certified company for EHS and 18001:2007 for OHSMS.
5. Internal control system:
The Company has sound and adequate internal control systems commensurate with its size and nature of business. We constantly upgrade our systems for incremental improvements. The Audit Committee of the Board periodically reviews these systems. These systems ensure protection of assets and proper recording of transactions and timely reporting. Internal auditor will be conducted out by an independent professional firm on regular basis. The Audit Committee also regularly reviews the periodic reports of the Statutory Auditors and Accounts departments. The Company has trained the staff in order to upgrade with the recent changes in the taxation like GST. Audit Committee constantly tries to add value by evaluating existing systems.
6. Financial & operational performance:
The Company has performed very well instead of sluggish trend in the telecom sector in the year 2018-19. Your Company has made 333.95 lacs of Profit in the financial year 201819 which is commendable and shows efforts of management in the growth of the Company.
7. Material developments in Human resources/Industrial Relations front, including number of people Employed:
Human capital has always been the most important and valuable asset to the Company. Your Company continued its activities during the year in a cordial atmosphere with utmost co-operation amongst employees and the management. The management is committed to promote safety, occupational health and proper environment in designing, planning, training and completion of all tasks. Trainings are imparted to workmen in various new techniques and systems.
|For and on behalf of the Board|
|Date: 26th August, 2019|
|DIN - 0195438|