mcs ltd Management discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The year 2014-2015 was turbulent in many ways with economic slowdown in many developed countries having its impact on the Indian Stock market which recorded its lowest index in many years. The foreign capital inflow having slowed down, stock market quoting at lowest levels, many of the corporate has shelved/differed their expansion plans and approach to capital market for funds.

In the scenario, your company because of its track record could retain its clientele and operating at very thin margin to stay in the business with the expectation of a turn around and better times with the installation of new government with comfortable majority promising stability and rapid economic reforms.

OPPORTUNITIES AND THREATS:

Your company, being rated among the leading Registrar and Transfer Agent, continues its pursuit to render better services to its clients and looks forward to add to its client list by utilizing the contacts. However the threats come in the form of limited public issues and presence of large number of players chasing small volume of jobs forcing to operate at thin margins for survival.

FINANCIAL PERFORMANCE

The turnover achieved during the year was Rs. 474.45 lacks as decreases by 39.5 lacks as compare to previous year. In the situation, considering the needs for working capital your directors do not recommend any dividend for the year.

RISKS & CONCERNS:

The major risk faced by your company is from competition from other players and fewer opportunities for work. Your directors are considering diversification into other lines, exploring the possibility of Joint Venture into other business through subsidiary companies in foreign countries. To meet the challenges posed by low margin, various costs saving measure have been put in place to balance the costs.

INTERNAL CONTROL SYSTEMS:

The company has put in place suitable internal control systems which provides for reasonable assurance with regard to safeguarding of assets, promoting operational efficiency and compliance with legal and statutory provisions. The Board of Directors periodically reviews the systems and directs actions wherever necessary to strengthen the system.

	For and on behalf of the Board
PRIYA DARSHAN WAILA		For MCS LIMITED
Director	PARSHURAM V BHUWAD	MADHUKAR M PARASE
PLACE: MUMBAI	Whole time Director	Director
DATE: 30th May, 2015