mahaveer infoway ltd share price Management discussions

Mahaveer Infoway Limited (MIL) has its business operations in the field of Software Development, IT Consulting, Networking Solutions, Distribution of Telecom Products, and Offshore Staffing. Mahaveer Infoway Limited. (MIL) is a provider of Technology oriented solutions. Each Business vertical is headed by able, experienced and proven professionals to take the company to the next level of growth. The company is looking at diversification in telecom sector in a big way and in this direction have plans of acquiring telecom companies to achieve rapid inorganic growth in the coming years. The Company also offers consulting and information technology (IT) services. It provides a range of services, including software development, Cloud Services in partnership with Amazon, Product and Application testing, packaged software integration, system maintenance, and engineering design services which creates the many opportunities in the Local and Global Market.

Management and our Professional teams are taking efforts to learn and apply new skills in the market for more development in the Businesses of the Company.

COMPANY STRENGTHS: -Telecom

• Young, Dynamic & Experience Management team from diverse backgrounds and geographies.

• Existing Distributor Network in South India.

• Exclusive agreement with Mediatek, Taiwan for Hardware Testing with MSAI (Mobile testing

Standards Association of India) for IMEI number allocation and product testing.

IT Services

• Senior Management from various big IT Organizations.

• Presence in Hubli and head quartered in Hyderabad.

• MIL partners with Amazon, HP software, Cenzic, IBM and Microsoft, hence improving credibility in the market.

COMPANY OPPORTUNITIES AND THREATS: -Telecom Opportunities:-

• Building own Retail formats to cater to the growing telecom market. Threats:-

• Strong lobbying by Class ‘A Players against the emerging manufacturers

• Government Policies against imported assembled Handsets.

IT Services Opportunities:-

• In pursuit of appointing Country Managers in both US and SAARC Countries for Managed services.

• Exploring untapped markets like tier 2 cities in India and SAARC Countries markets abroad.

Threats:-

• Mass Hiring by Larger Organizations, leaving SMEs with not much quality consultants.

• Anti-outsourcing policies from the hugely profitable US and European IT Markets.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE: - OUTLOOK:-Service Offering Include

• Providing web (.net/sharepoint/java/php) and mobile based (android/iphone) business applications and solutions for various domains.

• Staff augmentation by maintain bench resources of bright and outstanding performers on various technologies and Amazon Web Services.

• Functional Manual testing, Functional Automation Testing-QTP, Silk Test, Sekenium, Performance

Testing and Re-engineering-Silk Performer, Load Runner, Jmeter and building Automation

Frameworks, API Testing, Scalability Testing etc.

RISK AND CONCERNS: -Telecom:

• Price Fluctuation, Dollar inflation & sensitive Telecom markets.

• Low management bandwidth.

• Lower Exposure to overseas Telecom markets

IT Services

• Attrition in Human resources in middle and lower management.

• Low management bandwidth.

• Lower Exposure to overseas IT markets.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: -

The internal control system of our Company is effective and adequate. The system of internal control has been established to provide reasonable assurance of safeguarding assets and maintenance of proper Accounting Records and its accuracy. The business risks and its control procedures are reviewed frequently. Internal Control Systems audit is also conducted regularly to review the systems with respect to Security and its Adequacy. Chief Financial Officer and Senior Management are taking action to strengthen controls where necessary.

Disclosure of Accounting Treatment:

Where in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements, together with the managements explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: -Operational Review:

In Financial Year 2018-19 things started slowing down. We expanded our distribution network of petroleum product and also focusing on the market strategy of the company.

Financial Review:

During the financial year 2018-19, company registered a turnover of Rs. 2,10,52,542/- against Rs. 2,45,17,402 in financial year 2017-18. The sales of the company remained flat in the year. Net loss of the company increased from Rs. 56,59,473 Lakhs last year to Rs. 64,77,871/- in this year.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED: -

Your Company recognizes the value addition of its employees and their contribution to the growth and development of the Company. In turn, the Company is committed to train and develop its people and motivate them. Industrial relations have been cordial and mutually beneficial. We have an effective strategy to nurture and grow our people so much so that employee turnaround has been much lower.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" 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 affecting demand/supply and price conditions in the domestic and international markets in which the Company operates, changes in the Government regulations, tax laws and other statues and other incidental factors.

CERTIFICATE PURSUANT TO REGULATION 17(8) OF THE LISTING REGULATIONS

I, Joseph Varghese, Chief Financial Officer, hereby certify for the financial year ended 31st March 2019 that: -A. I have reviewed IND AS financial statements and the cash flow statement for the year and that to the best of our knowledge and belief: (i) These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; (ii) These statements together present a true and fair view of the Companys affairs and are in compliance with IND AS, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violate of the Companys code of conduct. C. I accept responsibility for establishing and maintaining internal controls for financial reporting and that i have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and I have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which i am aware and the steps I have taken or propose to take to rectify these deficiencies.

D. I have indicated to the auditors and the Audit committee:

• That there are no significant changes in internal control over financial reporting during the year;

• That there are no significant changes in accounting policies during the year; and

• That there are no instances of significant fraud of which we have become aware.

	For Mahaveer Infoway Limited
	Sd/-
Place: Hyderabad	Joseph Varghese
Date: 14.08.2019	Chief Financial Officer

AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE

To The Members of Mahaveer Infoway Limited

I have examined the compliance of conditions of corporate governance by MAHAVEER INFOWAY LIMITED (‘the Company) for the year ended 31 March, 2019, as stipulated in regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of regulation 46 and paragraph C, D and E of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") with BSE Limited.

The compliance of conditions of Corporate Governance is the responsibility of the Companys management. My examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In my opinion and to the best of my information and according to the explanations given to me, i certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing regulations.

I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

	For Raja Sekhar S & Associates
	Chartered Accountant
	CA Rajasekhar. S
	Proprietor
	Membership No.205013
Place : Hyderabad
Date : 30.05.2019