focus suites solutions services ltd Management discussions

MANAGEMENT DISCUSSION ANDANALYSIS REPORT

Industry Overview

The global annual revenue of the market research industry is estimated around 45 billion dollars. The MR industry is seeing a gradual and consistent growth. Meanwhile in India, the revenue grew from 602 Million USD (2008) to 1178 million USD (2018).

The industry overview services study reveals 2017 has seen a lot of technological advances in the field of MR work and the impact has been for good.

Currently Europe and US lead the industry overall, other countries like China , Brazil, Russia and India have seen an increased demand for services related to market research, And FSPL plans to leverage this new demand and ensure more business and increase bottom lines.

Company Overview

Your company is full qualitative fieldwork agency having headquarter in Mumbai. The Primary Services we offer includes Qualitative Fieldwork, Sensorial Fieldwork, Usability Fieldwork & Data Acquisition and Data Analysis.

Opportunities and Threats:

The country has retained its position as the third largest start-up base in the world as per a report by NASSCOM. Real GDP growth slowed to 7.1 % in FY16/17 from 8 % in FY15/16, and to 5.7 % in Q1 FY17/18. However, it is expected to bounce back to an annual rate of 7.0%.

Despite the domestic economic sluggishness, India so far has had a good international financial situation. The country’s export growth rate has been on an increase in FY 16/17. India’s Foreign Direct Investment (FDI) inflows reached US$ 208.99 billion till December 2017.

Segment wise performance:

We are doing significant amount of projects related to Data Acquisition, Data Analysis & Fieldwork and substantial investments in data resources / panel.

The current financial year has been quite fruitful for the company in terms of business and increased margins.

Internal Control Systems and their Adequacy:

For Internal Financial Control Systems efficient policies and procedures are adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Company’s policies, safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

Financial Performance with respect to Operational Performance:

During financial year 2017-2018, your company has earned Profit After Tax (PAT) of Rs 295.91 Lakhs as compared to Rs 129.40 Lakhs in previous Year.

	FY 2017-18	FY 2016-17
Revenue (In Lakhs)	2,696.53	1,541.56
EBITDA Margin (%)	22.06	18.17
Profit After Tax (%)	10.96	8.39
EPS O*	3.51	5.02
Book Value Per Share O*	20	18

*Computed after considertaion of Bonus Issue. Industrial Relations front:

During the Financial year 2017-18, your company maintained cordial and harmonious relations at all levels of the organization.

Material developments in Human Resources:

The company has always recognized its Human assets as a critical and therefore, considers high importance to human resource development for the growth of the company. It selectively handpicks candidates of positive qualities and flair aptitude. Apart from recruitments, the company also takes various initiatives to enhance and train the current assets to amplify their potential.

The key criterion that we have looked at adding people was sector specialists or vertical leaders. Adding these verticals via these personnel is what results in additional revenue stream. This is a key part of the organic strategy for MRSS.

Outlook of the Company

Your company, member of ESOMAR and CASRO is full qualitative fieldwork agency having headquarter in Mumbai. The Global Market Research Industry produces $45 billion in revenue each year. Although Europe and the United States lead the industry overall, other countries such as China, Brazil, Russia, and India are experiencing increasing demand for services related to market research and because of our continuous effort to ensure we provide the best level of service to our clients we see an increase in our repeat business, however we do not depend on this . FSPL commits to approaching and making new clients month on month We trust that,

we have created strong footprints by working with top most market research companies and with some big corporates.

Risks and Concerns:

Technology Risk: Technology is continuously changing and we need to ensure that we constantly incorporating same new and existing service offerings to compete effectively in market place. If we are not able to successfully complete the development and introduction of new services, including new managed services, in a timely manner, the business could be adversely affected. We rely on a combination of in-house development and third-party technology licensing and/or acquisition to bring the new services to market. In either case, it is important that we are able to obtain any necessary third party intellectual property rights on a cost effective basis.

If another person holds the technology that is necessary for us to provide our services, under a patent or other intellectual property right, a license for the use of that technology may have to be negotiated. The negotiations may not arrive at a price that is acceptable. The existence of such patents or other intellectual property rights, or the inability to negotiate a license at an acceptable cost, for any such technology, could effectively hinder our ability to provide services using that particular technology.

Operating Risks: We have making significant

investments and will continue to need investments for newer technologies & solutions and working capital for high value projects, which may stretch liquidity and create execution risks. Operations and profitability may be adversely affected if the funding required for the plans is relatively more expensive or delayed.