Cistro Telelink Ltd Management Discussions

A) INDUSTRY STRUCTURE AND DEVELOPMENT:

In India, there are various kinds of telecom services licenses, including access licenses i.e. basic/fixed service, cellular, Unified Access (basic + cellular) service, carrier licenses i.e. national long distance and international long distance, licenses for internet services, VSAT licenses, IP-1 registration for passive infrastructure (towers, ducts, fibre) and IP2 licenses for bandwidth. The Indian Telecom Services Sector has witnessed tremendous growth in the recent past, primarily driven by intense competition, fallings tariffs and reforms in the regulatory set-up. Major Indian business houses have invested substantially in this sector. The Company is also at present in the business of trading of goods and textile business.

As on date of this report, the Company has no segment, hence not applicable to the Company.

The Company is taking maximum efforts to capitalize on business opportunities & further expect a better outlook/ better profits in the coming years.

The threat for the Company is the unrestricted competition which is allowed in all the categories under the telecom services.

Your Company has been maintaining an adequate internal control system commensurate with the size & nature of its business. The Internal control system is improved and modified continuously to meet the changes in business conditions, statutory and accounting requirements.

Your company considers its human resources as its most valuable assets, among all other assets of the Company. The Company has formulated sound policies for employee motivations and retentions. Also required training was given to the employees.

Due to unfavourable market conditions, your Company is facing profitability problems. However, your management is making optimum efforts to minimize the overheads & cost reduction.

Your Company will take adequate majors to safeguard against Risks & Concerns as and when business will commence.