Melstar Information Technologies Ltd Management Discussions

Introduction

The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is the leading sourcing destination across the world, accounting for approximately 55 per cent market share of the US$ 185-190 billion global services sourcing business in 2018-19. Indian IT & ITeS companies have set up over 1,000 global delivery centers in about 80 countries across the world. India has become the digital capabilities hub of the world with around 75 per cent of global digital talent present in the country.

Market Size

Indias IT & ITeS industry grew to US$ 181 billion in 2018-19. Exports from the industry increased to US$ 137 billion in FY20 while domestic revenues (including hardware) advanced to US$ 44 billion. Spending on Information Technology in India is expected to grow over 9 per cent to reach US$ 87.1 billion in 2018. Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$ 350 billion industry revenue by 2025.

Discussion On Financial Performance With Respect To Operational Performance:

The financial statements have been prepared in accordance with the requirements of the Companies Act, 2013 and the applicable Accounting Standards as well as the Generally Accepted Accounting Principles (GAAP) in India. The salient aspects of the financial performance of the Company have been dealt with at some length in the Directors Report. The Statements of Accounts of the Company duly audited are appended elsewhere in the Annual Report: An Analysis of financial performance for the year ended 31st March, 2020 is given hereinafter:

Opportunities, Threats, Risks and Concerns:

We have been focusing on achieving task and are in process to develop and implement growth opportunities within and between organizations to expand IT business and wants to cover all over India for providing various services like IT and ITeS and other related activities. Strategy of the Company is to get higher profitability and stable cash flow generations in these markets. Satisfaction for providing services is very big challenge for us.

Internal Controls and Their Adequacies:

The internal control system is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control. They have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transaction with proper authorization and ensuring compliance of corporate policies. Human Resources/ Industrial Relations: The Company believes and recognizes that its employees are a vital resource in its growth and to give competitive edge in the present business scenario. The company have been consistently investing in employees across all levels, in various ways. The Company takes pride in the commitment, competence and dedication shown by its employees in all areas.

Cautionary Statement:

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.