dot com global ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS

Company is mainly operating into the business of developing software and IT services Company. The key issues of the Management Discussion and Analysis are given below.

(a) Industry Structure and Developments

Over the past years the role of IT is evolved from a supporting function strategic necessity into business. As it assumes the central role of to respond to the changing market trends, drive productivity across the value chain and increase competitiveness IT decision will increasingly be looked upon as a means to achieve business objectives.

However based on the current economic uncertainity, IT budgets are expected to be carefully scrutinized and customers are seeking ways to reduce costs and/or supplement their IT staff, which may result in opportunities in outsourcing.

(b) Strength

Highly qualified professionals under an efficient Board of directors gives the company an edge over the competitors and a team of executives is the major strength of the Company.

Company is known from its reputation which the company has earned due to its quality business and cordial relation with its clients and presently the company is trying to expand its business into other trans-european nations.

(c) Comment on Current years performance

Receipts	: The current financial year turnover is only Rs. 35.25 Lakhs
Operating Expenses	: The operating Expenses are well under control.
Operating Profits	: Earned Operating loss of Rs.(0.01) Lacs for the current year.
Indirect Expenses	: The Indirect Expenses are under control.
Depreciation	: Rs.0.28 Lacs is provided as depreciation.
Profit before tax	: company incurred net loss during the year.
Taxation	: Rs.0.00 Lacs is Provided for taxation.
Debtor/Sales	: Debtors are reasonable and realization period has decreased due to the policy of the Company.

d) Opportunities and Threats

We operate in a market characterized by swift changes and convergence. We face formidable competition in every aspect of our business; particularly from companies that seek to connect people across geographies over IP based communication and collaboration on multiple platforms. We do face competition from other providers, including start-ups as well as developed companies that are enhancing or developing mobile applications and technologies.

Your company however, has a well-integrated platform that will ensure we stay ahead of the curve. We are augmenting features and products to our existing products and own the complete value chain of products and services we address.

(e) Segment wise performance

The business of the Company falls under a single segment i.e. Software Development and IT Services for the purpose of Accounting Standard AS-17.

(f) Outlook

The Company is making all efforts to accelerate growth of its business. It expects to improve its position in the market by focusing on technologically advanced and more profitable products/market segments and working aggressively in the areas of productivity, efficiency and cost reductions.

(g) Risk and concerns

The market penetration by new entrants in the Companys business area and the strong hold of existing Big players in the market places hurdles in the growth path of the Company. However the company is aggressively using well talented employees and personal to establish new business areas and to develop existing market.

(h) Internal control system

Internal audit and other controls have been found to be adequate. These are reviewed periodically by the Audit Committee and found the performance satisfactory.

Mandatory Requirements

a) Chairman of the Board

The Companys Managing Director shall act as the Chairman for all the Board Meetings

b) Shareholder Rights

As the Companys financial results are published in major newspapers (including regional language newspaper) having wide circulation and the same are posted on the Companys website. It is not considered necessary at this stage to send the same to the shareholders.

c) Postal Ballot

The provisions regarding postal Ballot have been introduced recently by the Companies (Amendment) Act, 2000 and hence, the company had no occasion to make use of the same