Credence Sound & Vision Ltd Management Discussions

CREDENCE SOUND AND VISION LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS OVERVIEW: The year under review was one of the difficult years of the company. The company is looking for profitable ventures, as its main area of functioning entertainment multi-media is no more viable keeping in view the scale of operation, which the company can possibly take up. Hopefully, the company should come out with concrete plans in the ensuing year. FINANCIAL HIGHLIGHTS: CURRENT YEAR PREVIOUS YEAR 31.03.2009 31.03.2008 PAT 1332308 2749281 EBID 2027645 3465942 PROFIT/LOSS AFTER 1332308 2749281 DEPRECIATION EPS 0.03 0.61 DEBT 10566670 11994131 INDUSTRY STRUCTURE AND DEVELOPMENT: Ever since 1996, the economy is passing through a recessionary phase. Enquiries for new project assignments dropped drastically. The whole industry suffered and number of companies reported huge losses. This is mainly because of changes in technology, which has rendered old equipments out of market. The company has made an attempt to rent out little equipment and has made a modest income. Your directors are working on a plan to add new and latest equipments to successfully compete in the market. OPPORTUNITIES: * Vast market * Diversification plans * Liason activities * Backward and Forward integration THREATS: * Large overhead * Competition from global firms * Recovery of Outstanding. * Branding * Obsolescence FUTURE BUSINESS OUTLOOK: In this information age the knowledge is power. Timely and accurate information is sought by a number of companies. A large number of companies are looking for diversification plans as their existing activities are no more profitable. The company also plans to venture into such activities. INTERNAL CONTROL SYSTEMS: The level of activities of the company at present is quite low. Keeping in view the scale of operation, size of the company, and cost aspect, the company has reasonably good internal control system to ensure that all its assets are safeguarded and protected against loss from unauthorised use or disposition and transaction are authorised, recorded and reported correctly. The internal control systems are also designed to ensure that the financial and other records are reliable, for preparing financial statements and other data. The audit committee, which have been formed during the year, will also play an important role in times to come. A provision for impairment of loss has been duly recorded. RISKS AND CONCERNS: The business of the company largely depends on the improvement of investment climate, growth of medium scale sector and pooling of resources by the company. The company will endeavour its best to capitalise on its strengths and improve upon its weak areas. HUMAN RESOURCES DEVELOPMENT: Rather than recruiting permanent employees, the company will prefer to out source various services based on assignments in hands. This will minimise the risk and keep the overheads at reasonable level. FOR AND ON BEHALF OF THE BOARD Sd/- CHAIRMAN Place: Mumbai Date : 30.06.2009