Fourth Dimension Solutions Ltd Management Discussions.
Pursuant to Regulation 34 and Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis Report is as follows:
Forward looking statement
Statements made herein describing the Companys expectations or predictions are "forward looking statements". The actual results may differ from those expected or predicted. Prime factors that may make a difference to the Companys performance include market conditions, input costs, govt. regulations, economic development within/outside country etc.
The following discussions on our financial condition and result of operations should be read together with our audited consolidated financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company", "FDS" are to Fourth Dimension Solutions Ltd. and its subsidiaries and associates.
Global GDP growth is projected to increase, rising from just under 3% in 2016 - the slowest pace since 2009 - to 3.3% in 2017 and around 3.5% in 2018. Indias economy could expand by between 6.75% and 7.5% in 2017-18, a government survey said, signalling that growth could recover sooner than expected after a shock scrapping of high-value banknotes to fight "black money". The cash ban, however, will slow down growth for 2017 to below 7%, said the Economic Survey, which is an annual government report on the economy that also sets the tone for the general budget and floats new policy ideas. The survey said "demonetization" would bring long-term benefits to the economy.
It also said structural reforms and proposed Goods and Service Tax could boost growth rate to 8-10%. The GST will create a common Indian market, improve tax compliance and governance, and boost investment and growth; it is also a bold new experiment in the governance of Indias cooperative federalism. All businesses face the task of lowering down the cost of production and simultaneously maintain the satisfaction of the consumer. This is why manufacturing industry is a very competitive industry. Therefore the GST will lead to the reduction in cost of production because the GST reduces the tax increment. The GST program should have allowed uninterrupted tax credit by removing the old indirect tax rule of not getting any tax credit of the central taxes over state taxes and vice versa.
Indian electronics and hardware industry is expected to reach USD 112-130 billion by 2018 on the back of rising consumer demand, growing disposable income, declining electronics prices and various government initiatives like Digital India.
Moreover, the Government of India (Gol) has announced several programmes such as Digital India, Smart Cities, the cloud initiative, solar power, UIDAI projects and the National Knowledge Network initiative which will necessitate installation and up- gradation of installed devices and networks.
In the Union Budget 2017-18, the Government of India announced the following key proposals in addition to the previously announced Digital India Initiative which will provide a boost to the businesses of IT/ITES and ICT (Information & Communication Technology:
- The Government of India has allocated Rs 10,000 crore (US$ 1.5 billion) for BharatNet project under which it aims to provide high speed broadband to more than 150,000 gram panchayats by 2017-18.
- Prime Minister of India, Mr Narendra Modi, has launched the Bharat Interface for Money (BHIM) app, an Aadhaar-based mobile payment application that will allow users to make digital payments without having to use a credit or debit card. The app has already reached the mark of 10 million downloads.
(Source: OECD Outlook, World Bank report on "Global Economic Prospects, January 2017", Economic Survey 2017, Analyst Reports, Government Publications)
ABOUT Fourth Dimension Solutions Ltd. (FDS)
Fourth Dimension Solutions founded in 2011, is an India-based information technology (IT) and cable infrastructure Company which provides end-to-end IT / ITEs and telecom solutions combined with technical support and operations outsourcing. The Company partners with government and public sector institutions to provide sustainable IT strategies at competitive costs. It operates in three core verticals - Technology Solutions, IT Infrastructure Services, and Operations Outsourcing.
With over 2000 employees, FDS is a professionally driven global Company, catering over 100+ Indian & Global customers, including ranked 66 among THE Next 500 Indias Top Midsize Companies by Fortune India magazine and Raked 1st in the InfoTech Segment Companies. FDS is also amongst the best SME IT companies in India as per the recent surveys and reports.
SUBSIDIARY ASSOCIATES AND JOINT VENTURES Domestic Subsidiaries -
M/s. Thumbspeed Tech Solutions Private Limited (Previously known as Thumbspeed Software Solutions Private Limited) a wholly owned subsidiary of the company is engaged in IT and FMCG related business.
M/s. Enpocket IT Services (India) Private Limited (Previously known as Enpocket Services (India) Private Limited became wholly owned subsidiary of the company, during the year under review. Previously it was a subsidiary of M/s. Nokia Investments OY. M/s. Enpocket IT Services (India) Private Limited is engaged in IT App related business.
Overseas Subsidiaries -
M/s. Fourth Dimension Solutions Pte. Ltd. a subsidiary of Fourth Dimension Solutions Limited got incorporated on 18th November, 2016 at Singapore and is engaged in IT and ITes related business. During the year under review, no business or operation had commenced.
M/s. Fourth Dimension Solutions DMCC a wholly owned subsidiary of Fourth Dimension Solutions Limited got incorporated on 16th February, 2017 at Dubai, U.A.E. and is engaged in IT and ITes related business. During the year under review, no business or operation had commenced.
During the year under review, the total revenue of M/s. Thumbspeed Tech Solutions Private Limited has increased to Rs. 29,55,590/- from previous financial year Rs. 2,720,630/- and net profit after tax for the current financial year 2016-17 has decreased to Rs. 39,353/- from the previous financial year of Rs. 72,422/-.
During the year under review, the total revenue of M/s. Enpocket IT Services (India) Private Limited has decreased to Rs. 10,71,250/- from previous financial year Rs. 28,16,094/- and net profit after tax for the current financial year 2016-17 has decreased to Rs. 1,74,735/- from the previous financial year of Rs. 9,84,683/-.
A separate statement containing the salient features of Financial Statements of Subsidiary of your Company i.e., M/s. Thumbspeed Tech Solutions Private Limited and M/s. Enpocket IT Services (India) Private Limited forms a part of consolidated financial statement in terms of Section 129 of the Companies Act, 2013. The Financial Statements of Subsidiary Companies are kept open for inspection by the shareholders at the Registered Office of your Company during business hours on all days except Saturdays, Sundays and public holidays upto the date of the Annual General Meeting (AGM) as required under Section 136 of the Companies Act, 2013. Any member desirous of obtaining a copy of the said financial statements may write to the Company at its Registered Office.