Capricorn Systems Global Solutions Ltd Management Discussions.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The company is engaged in the business of software development, providing Business Process Out sourcing, consultancy services in the fields of software and allied services.

REVIEW OF OPERATIONS:

The operations of the company during the year has been consistent with the performance in the immediately preceding years

FINANCIAL REVIEW:

The Company has achieved a total turnover of INR. 371.00 Lakhs. The Gross Profit (earnings before interest, depreciation and taxes) was INR. 9.41 Lakhs. The paid-up share capital as at 31st March 2019 amounts to Rs.399.60 Lakhs.

OPPORTUNITIES:

The primary market for the services rendered by the company is United States of America. There has not been significant growth in the sector over the past one year and a moderate grouwn is expected in the ensuring year too.. The company with its long standing relations with the customers which are under review in the current year and some of the same may have to be renegotiated. With a proven track record of delivering services as per the terms agreed with the customers, is confident of identifying the new areas of business with the existing customers and also in new markets.

CHALLENGES:

Capricorn Systems Global Solutions Limited (CSGSL) encounters normal market competition from other similar companies. One of the major challenges being faced by the company is attracting and retaining the competent personnel for the operations of the company in the face of the increased demand for the trained personnel in the software market in general. Further one of the main challenges would be to optimize the cost of operations in the face of the pressure on the margin in the highly matured markets the company operates.

OUTLOOK:

With improved spend of the companies on the software services and with the industry expected growth at a moderate rate and CSGSL is targeting a growth rate of around 10% for the current year.

RISKS AND CONCERNS:

The domestic and international economic environment directly influences the spending patterns of the industry on the Information Technology. And also the margins of the companies are affected by any changes in the government regulations like taxation and also the increased competition from other countries. The management was not identified any risk which threaten the existence or going concern nature of the company.

ADEQUACY OF INTERNAL CONTROLS:

CSGSL has a proper and adequate system of internal control to ensure that all the assets are safeguarded and protected against loss or misuse or disposition and the transactions are authorized, recorded and reported correctly. The internal control systems are supplemented by management review. The internal control system is designed to ensure that the financial and other records are reliable and also maintaining accountability of assets.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS:

CSGSL has 40 employees. CSGSL recognizes the contributions of its people in creating a company, which ranks as one of the best facilities with highly skilled people.

CGSGL provides continuous learning and personal development programs by conducting training and evaluation of its personnel. Industrial relations have been very cordial in the organization during the year.