INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is engaged in manufacturing, marketing and providing after sales service support on a diverse range of office automation products. After the sale of Copier Division Undertaking in August, 2011, the Company operates in the two segments i.e. Banking & Mailing products. The range of products under each of these segments, are constantly reviewed and changes pursued depending on market perception and needs. The growth rates in the various segments of operations vary. Due to various initiatives taken by Finance Ministry as also rapid technological strides in the area of IT & Communications, there is adequate potential for growth both the segments that the Company operates.
FUTURE OUTLOOK
To ease the shortage of coins, RBI has initiated various steps for promotion of Coin Vending Machines in currency chests and other prominent locations. Likewise, to counter the threat of counterfeit currency, most Banks are in the process of installing Sorter and Authentication machines. Thus, the demand for some of the Companys currency handling products is likely to be very encouraging in the coming years. Likewise, demand for Digital Franking Machines and Digital Duplicators are expected to be good, due to projected growth in the education sector.
THREATS
The major challenge the Company faces in its operations is Product obsolescence and falling operating margins due to intense competition. Further more, in recent past because of inflationary pressures, the operating costs are consistently on the increase. The Company hedges against technological and product obsolescence by offering reliable quality Products from reputed overseas vendors. The Company also faces the threat of cheap imports from China.
RISK MANAGEMENT
The Company is exposed to risks arising out of exchange parity and changes in import tariff.
INTERNAL CONTROL SYSTEM
The Management Information & Review System is an important tool of Companys Control Mechanism. Clearly defined rules, responsibilities and objectives are set out at the beginning of the year to all SBU Heads who are entrusted with the SBUs operational responsibilities. All operating parameters are monitored monthly and quarterly in depth and efforts are made to cover all the key areas of operation. The Company has already implemented an ERP solution covering its operations India-wide to further improve the MIS.
HUMAN RESOURCES/INDUSTRIAL RELATIONS
The Company has recognized that good human resource development is essential for the success, growth and improvement of the Company. The employees are provided need-based training both in-house and outside for this purpose. Your Company would like to record the whole-hearted support and dedication received from employees at all levels.
CAUTIONARY STATEMENT
Statements in the Management discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be forward looking statement within the meaning of applicable securities, laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions, change in the Government regulations, tax laws and other statutes and other incidental factors.
Other matters such as operational and financial performance etc., have been discussed under the respective heads in the Directors Report.
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