Netlink Solutions (India) Ltd Management Discussions.
1. Industrial Structure and Developments
In 2018-2019, the Indian Economy emerged as one of the large economies with an encouraging outlook. The factors contributing to this positive outlook were controlled inflation, rise in domestic demand, increase in investments, decline in oil prices and the boost to reforms among others. According to IMF, India is set to become the worlds fastest growing major economy ahead of China.
2. Outlook on Opportunities, Threats, Risk and Concerns Opportunities
Currently, the Company has two divisions, Software Division and Print Media Division. The software division has, off late, not performing to our expectations. However, the Print Media Division is doing well for the Company. We experienced that the Print Media is gradually edging past electronic media. The Company cut costs and were looking for right opportunity.
Netlink Solutions (India) Limited has, during the year, sold Exhibition business containing "Stationery & Write Show, Corporate Gift Show and Houseware and Kitchenware Show" to Messe Frankfurt Trade Fairs India Private Limited.
Threats, Risk and Concerns:
Being a software and print media company, Netlink is exposed to specific risks that are particular to its business and the environment within which it operates, including software obsoletion volatility, economic cycle, credit risk and market risk. The most important among them are credit risk, market risk and operational risk. The measurement, monitoring management of risk remains key focus areas for the Company.
3. Internal Control Systems and their Adequacy
The Company has a proper and adequate system of internal control in all spheres of its activities to ensure that all its assets are safeguarded and protected against loss from unauthorized use or disposition and that the transactions are authorized, recorded and reported diligently.The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines.
4. Financial Performance
The Companys total turnover for the financial year ended March 31, 2019 is Rs.171.31 (Previous Year Rs. 512.93 lacs). Net Loss before tax was Rs.35.61as compared to Previous Years Net Profit before tax Rs. 38.41 lacs. The Company is optimistic about its future business ventures.
5. Development of Human Resources
The Company has been proactive to build the requisite skill-sets in the organization for its new project initiatives. The relevant industry experience of the team coupled with commitment towards adherence to the operating processes adopted by the company is a unique feature demonstrated by the company. Employees are encouraged to upgrade their skills and knowledge through various training programs.
This report contains forward-looking statements based on beliefs of the companys management. The words anticipate, believe, estimate, forecast, expect, intend, plan, should and project are used to identify forward-looking statements. Such statements reflect the companys current views with respect to the future events and are subject to risks and uncertainties. Many factors could cause the actual result to be materially different, including amongst others, changes in the general economic and business conditions, changes in the currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services, and changes in business strategy. Actual results may vary materially from those projected here. The company does not intend to assume any obligation to update these forward-looking statements.