Today's Top Gainer
Note:Top Gainer - Nifty 50 More
The contents stated within this report may be futuristic in nature and may draw the attention of risks and uncertainties. The company would not have full control on risks associated with the new products, services and competitors positioning. The following discussion and analysis should be interpreted in line with our other statements included herein and the notes thereto.
CURRENT INDUSTRY TRENDS:
Global economic meltdown has taken a toll on technology spending worldwide. Corporations have adopted multiple ways to reduce costs and stay afloat. The receding recessionary trends in the last one year have given some organization headroom to relook at technology adoption to build processes that not only identify risks but also mitigate them. Similarly, increasing compliance requirements for public corporations has started to put pressure on corporations to build and make the processes transparent. We would also see some operating policies, procedures and processes mandated to create transparency to all stake holders. We are also seeing an increase in number of operational processes being automated which is increasing the robustness of the product. Compliance and risks are specific to geographies and therefore products in the market place are also turning from being generic to a combination of vertical and geography specific. While spending on technology is on the rise, corporations are judicious in selecting products which brings a hope with a caution. Industry has been dominated with small players till the recent past and consolidation started to take place. Large IT players have acquired small GRC companies and are looking to deploy resources to enhance the product and build the presence in the space. This indicates that the market is gearing up for larger and specialized deployments and competitions would strengthen in the short to medium term. Various government and industry and forums are evolving promoting the importance of risk and compliance and are working closely with all the industry stakeholders to evolve standards in assessment and mitigation. While the industry preparing itself for the next big leap in the next couple of years, is also cautioning on being judicious in planning and developing products that address the immediate needs of the customers.
During the year 2017-18 due to sale of properties by the bankers, the business had got affected. However taking industry trends in consideration and assessing the internal strengths of the company we have set out an agenda for the current financial year to focus on the following:
a) Enhancing the product features and drawing up a product road map for the medium term;
b) Increasing the management bandwidth by building leadership layers to build a long term sustainable growth plan;
c) Strengthening domain expertise to widen our offering to multiple industries;
d) Internal organization to create flexibilities in addressing the customer needs faster and better;
e) Constantly looking for opportunities to strengthen our position in the market place;
f) While we focus on enhancing our customer base we also focus on the existing customer base for opportunities to broaden our offering and maintain continuity in serving them;
g) Since the acquisition atmosphere is settled we also plan to strengthen the company operationally and financially.
OPPORTUNITIES AND OUTLOOK:
Cost effective base and skilled work force provide excellent opportunities for Indian Companies in general and for CURA in particular. The opportunity is being capitalized by growing outsourcing and number of products going off parent. Over the years, CURA institutionalized competencies that make it a preferred partner for a number of companies. This could lead to enhanced value creating opportunities in software world through a better leverage of existing relationships and research capabilities.
RISK AND CONCERNS:
Some of the risks and concerns inherent to technology business which CURA may face are as follows:
a) Prolonged financial crisis, that can prolong shyness in Technology expenditure
b) Cost cutting measures on corporate scale
c) Cheaper alternative to achieve efficiencies
d) Inherent lateral integration and subsequent competitive environment
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
We have adequate control procedures in place. The controls ensure optimum use and protection of data, resources and comply with policies, procedures and statutes. The internal audit is conducted to examine and evaluate the adequacy and effectiveness of the internal control systems, appraises periodically about activities and audit findings to the audit committee, statutory auditors and top management.
The necessary details are given as part of the notes to the financial statements.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS:
The strength of a company lies in its Human Resources and your company is no exception to this universal rule. During the year most of the employees left the organization, but your company continuously focuses on recruiting the best talent and also retaining and motivating the talent with them. Further improvements in the work environment and other related areas would be made through a process and metric-oriented approach. Industrial relations of the company remained cordial and peaceful through the year.