Today's Top Gainer
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As part of the directors report or as an addition thereto, a Management Discussion and Analysis report should form part of the Annual Report to the shareholders. This Management Discussion & Analysis should include discussion on the following matters within the limits set by the companys competitive position:
A. INDUSTRY STRUCTURE AND DEVELOPMENTS.
The Indian economy is considered one of the fastest growing economies globally with the projected GDP growth rate at 7% and above for the next few coming years. Further, Indias demographic dividend is expected to increase with the population growing from 1 billion in 2001 to 1.4 billion in 2026. 83% of that increase is estimated to be in the age group of 15-59 age groups. If this dividend is harnessed by 2025, India will not only have 25% of the worlds total workforce, but Indias per capita income will be $4100, which currently staggers round $1,000.This should with increased quality capacity encompassing institutions, infrastructure, processes and the available human resource eventually rise to $9802 in 2040 and $20,836 in 2050. (Source UNDP India, NSDC India).
Clearly the task ahead is to harness and develop the collective pool of knowledge and skill in the industry and to find ways and avenues of rightfully deploying the potential workforce in the years to come. This industry is marching ahead into advanced processes, innovation and product development that require a human resource with specialized skills especially computer related hardware and software skills for automation of business process. Converting people to be productive and industry ready necessitates radical reform in multiple aspects of the Indian ecosystem which majorly is been brought down by bureaucrats when it comes to IT enhanced growth with respect to inculcation of computer related skill involving process radiation . Moreover acquisition, retention and up-scaling of talent are equated to about 40% of a companys expenditure. In consideration of the above there is thus a strong rationale behind investment in human capital, that to, the one which is computer dexterous. It is believed that significant progress can be achieved in prioritizing and rolling out a reform road map to address the requirement across industry sectors for IT automization, which our company keeping in mind the industry trend and economy provides.
B. OPPORTUNITIES, THREATS RISKS AND CONCERNS.
The Credit for this excellent performance should go to all our employees who put in their best efforts to meet requirements. A distinguishing aspect of your Company for FY 2014-15 was our ability to quickly align to Being Local and become a popular name in the vicinity where we operate. We are also constantly innovating our delivery methods, making additions to students kits and ensuring that we have the best curriculum, which is in line with international standards. We continue to work hard to ensure that we are the Best-in-Classin the training sector in India. As a precursor to good future tidings and to thank our shareholders we promise higher standard in our workings. We are thankful for your support and guidance in taking the Company to new heights.
The education business has seen the entry of host of new vocational development institute. The Education Business is one of the high growth and happening industry with presence of mix of various professional academies, Private and Public institutes, private tutors, technology collages & schools etc., which forms part of the industry. Technological and regulatory changes have spawned new platforms of delivery. The Company operates in highly competitive environment that is subject to innovations, changes and varying levels of resources available to each player in each segment of business. This may be a matter of concern if the Company does not adapt to the changing face of the Industry. The Company has been keeping itself abreast of latest technological changes in the industry to implement the same in its operation to keep itself ahead of competition.
The Company does not involve with any long term commitments towards interest or borrowing and no interest rate exposure thereby. Since the decrease in prevailing Indian or international interest rates could invite new competition.
The Companys success to a large part depends on the abilities and continued services of its skilled personnel and senior management. The Companys senior management is particularly important to its business because of their experience and knowledge of the industry. The loss or non-availability to the Company of any of its senior management could have significant adverse affect. The Company will also be able to either retain its present personnel or attract additional qualified personnel as and when needed. To the extent the Company will be required to replace any of its senior management or other skilled personnel, there can be no assurance that the Company will be able to locate or employ similarly qualified persons on acceptable terms or at all. The Companys HR policy & compensation levels are in line with the industry levels to enable the Company to retain talent. Further, the management continuously reviews its talent pool for up gradation.
Indias vocational skill education sector is one of the largest in the world. During the last few years, several factors have propelled the growth of this sector significantly. The Government increased the budgetary allocation towards the sector and the most exemplary instance is the Pradhan Mantri Kaushal Vikas Yojana (PMKVY). Besides, rising urbanization, increasing awareness about skill education among the masses, booming investments from the private sector and others are likely to drive the sector forward. The skill education sector in India has two major segments "core" and "non-core". While the core sector comprises regular schools and colleges,
he supplementary vocational skill educational sector consists of vocational training and coaching classes. The concept of non-core skill development program is gaining immense popularity in recent times. This growth is driven by increasing awareness and up keeping with dynamic changes of information technology about the fact that the major part of our youth is computer illiterate especially the semi urban and rural area and there development cant be committed unless they themselves pace up and adopt the technology. The relevance of G-Tech lies here. It endeavors to provide quality education at affordable rates to the youth in India, thereby helping the growth of the nation. During the financial year 2013-14, despite an increasingly challenging economic environment, we continued to deliver strong growth-oriented performance. The management is investing in future inspite the low profitability today. We are trying to build further on our network of training institute across the country and improved on the long term performance. We delivered on our goals and strengthened based on our position in our sector. The outlook for next few years looks promising but challenging and your Company is focused on meeting its growth aspirations and make the ends meet.
D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY.
According to our inspection and scrutinization of various aspect of internal control on various benchmarks & parameters and further substantiated by auditor in his report. The internal control system adopted and followed by the company commensurate with its nature and size of business. And contribute majorly to streamline the processes laying platform for enhance growth and development.
E. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.
Company made a profit after tax of Rs 71085/- during the financial year 2014-15 in comparison to Rs 29921/- during the past year. The main fold reason for the same shall be the rise in operational income to an amount of Rs 1957000/- which is a tremendous increase of Rs. 1153440/- in operational revenue in comparison to last year. To boost higher sales the company had made arrangements which lead to rise in the expenses by Rs. 714880/- i.e. Rs 626839/- to Rs 1341719/-.
Further, the employee cost has gone up by Rs 373200/- from the past year which primarily is on account of revision of pay scale. The rise in other expenses is majorly due to escalation in listing fees and DEMAT charges and general rise in office expenses and allied office expenses.
Kindly note previous figure have been regrouped whenever necessary for proper presentation of financial statement.
F. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED.
Talent pool of the Company is comprised of talents from across industries. We hire the best across industries. While hiring, we look for people who have the love for the technology at heart, those who are excited about the technology and its latest development and love to share the knowledge. The Company also follows a well-structured campus hiring program to hire Management trainees from tier one institutes like IIT and other top engineering collage, etc.
Another important part of human resource is the retention of key employees and our company is able to hold its talent pool. Several initiatives have been taken to combat attrition of employees by investing in learning and development programs for employees, competitive compensation, creating a compelling work environment, empowering employees at all levels, as well as a well-structured reward and recognition mechanism
We compete in a dynamic environment and evolving industry in which values are defined at each turn by Companys most important asset: Human Capital. At G-Tech Limited we continuously track employees aspirations and their career goals. This process is integrated with the Companys performance management system. Through this process, the Company is able to envision and enable employees in achieving their desired career goals.
G. Cautionary Statement:
The statements in report of the Board of Directors and the Management Discussion & Analysis Report describing the Companys outlook, estimates or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied since the Companys operations are influenced by many external and internal factors beyond the control of the Company. The Company takes no responsibility for keeping the members updated on changes in these factors except as may be statutorily required from time to time.
|For G-Tech Info Training Limited|
|Place: Mumbai||Managing Director|
|Date: 5th September, 2015||DIN: 05235448|