Computech International Ltd Share Price Management Discussions
COMPUTECH INTERNATIONAL LIMITED
ANNUAL REPORT 2008-2009
MANAGEMENT DISCUSSION AND ANALYSIS
FINANCIAL CONDITION AND RESULTS OF OPERATION:
The year under review concluded with your-Companys overall turnover at
Rs. 266.93 Million (Previous year Rs. 409.80 Million) and profit after tax
(Loss) of Rs. 967.98 Million (Previous year Loss Rs. 92.35 Million).
BUSINESS REVIEW
The IT sector in India is now taking a fast consistent and growth with the
Government support and encouragement. The development in the EOU sector is
calling for a standing support to the exporters in this field.
Your company has been taking the advantage of the EOU sector and has got
itself registered as a 100% EOU under. the Central Government and has been
consistently utilizing its capacities to the fullest with a constant
endeavour to grow further.
With an expert team of software technicians and the competitive &
professional mind set of the management, your company is making a head-way
to reap the best in this scenario.
However, As part of the expansion activity, keeping in view of the present
all round business Scenario, your Directors have launched for
diversification in Mining and Allied products for healthy performance of
the Company.
OPPORTUNITIES
With the comparative advantage of committed work force lower cost and long
existence in the field; your-company seems to perform better in time to
come. Further, as an unit registered as 100% EOU, your company is offered
with a range of government benefits ensuring further growth and vast
opportunities.
THREATS
Your company is currently facing normal competition from other established
I.T. Industry/sector. However your directors with comparative advantages
hope to achieve a better position in comparison to its competitors in a
short span of time.
OUTLOOK
The I.T. Industry is growing substantially world wide. The company with its
capabilities is expected to benefit significantly from these positive
trends.
RISK & CONCERNS
The Company expects the normal risk factors of business mix, customer
concentration, economic cycle, effects of changes in foreign currency,
exchange rates, credit spread, liquidity etc.
ADEQUACY OF INTERNAL CONTROLS
The Company has a proper and adequate system of internal controls to ensure
that all of its assets are safeguarded and protected against loss from
unauthorized use or disposition and transaction are authorized, recorded
and reported correctly. The management has implemented an integrated
computerized management information system encompassing all functional
areas. The job process and internal control are so designed to ensure
proper checks and balances for eradication of errors and faults. The
internal control system is supplemented by internal audits, review by
management documented policies and procedures. Further, the internal
control system is under a constant review by the internal-auditors and the
audit committee as required under the listing agreement.
HUMAN RESOURCES OF THE COMPANY
Your company believes that people constitute the strength of an
organization. The company is committed to the welfare of its people by
providing the best possible work environment. The company is also providing
continuous learning and personal development opportunities by arranging
regular training and all around exposure to its people, which in turn has
given your company a team of able and experienced professionals besides the
employees at all levels have actively participated in the efforts to
sustain and improve the performance even in the most difficult times.
There is no employees coming under the purview of Section 217(2A) of the
Companies Act, 1956.