Computech International Ltd 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.