Palsoft Infosystems Ltd Management Discussions

1. OUTLOOK:

India continues to be the core for developing ‘Intelligent Solutions with enormous opportunities for digital engineering & connected solutions. Indias IT industry is expected to grow tremendously in coming years. The potential of growth in IT industry is also very high. The IT service industry is undergoing major secular changes driven by emerging technologies thus muting growth in legacy business while creating new digital opportunities. Organizations are rapidly adapting the changes and increasing their investments in new technologies to remain relevant in the competitive market.

2. INDUSTRY STRUCTUREAND DEVELOPMENTS:

The global market for software and services is estimated to be grown tremendously every year. On account of greater focus on automation, the IT industry is estimated to attain much more growth every year. The Government of India is also coming up with many ICT projects in schools, hospitals, offices etc. The internet is spreading its feathers so widely that general public is now considering IT sector as a blessing. The online applications had made work and all payments so convenient that it not only saves time but it is also a low cost solution. Digitization, automation and new business models have revolutionized IT industries. The digital platforms are growing across economies, reshaping the business models across industries ranging from retail, travel, manufacturing and distribution, healthcare, media, e-commerce and finance. The progression of global digital transformation is making Indias information technology (IT) industry stronger and the trend is expected to continue its growth momentum in the foreseeable future.

3. SEGMENT WISEAND PRODUCT WISE PERFORMANCE-

The Company has restarted its business activity from sale of software during the year. The management of the Company sees more opportunities to grow in near future. The Company also continues to strengthen its strategy to increase it sale in coming years.

4. OPPORTUNTIES & THREATS:

The Government having recognized the importance of IT in various sectors like schools, colleges, departments will lead to the development of global competitive economic and democratic society. The IT sector has shaped the lives of millions by introducing computer literacy to many.

Due to lack of high security systems there is always threat of loss of money, time, data, secrecy, which ultimately affects the efficient working of business activities.

5. RISKAND CONCERNS:

There is intense competition in IT services which affects cost advantage, wage increase, earnings, government policies, ability to attract and retain skilled professionals, client concentration, sales operations as well as local operations and above all general economic conditions affecting the industry.

6. INTERNAL CONTROL SYSTEMAND ITSADEQUACY:

Internal Control Process of the Company is aimed to provide a reasonable assurance that the Company achieves its objectives of reliability of financial reporting, effective and efficiency of operations and compliance with applicable laws and regulations. The internal audit is carried out by an independent internal auditor that covers all the areas of the Company. The audit findings are reported to the Audit Committee of the Board of Directors of the Company every quarter. The Audit Committee acts as a catalyst for efficient and transparent financial reporting and as a bridge between the Board, the InternalAuditors and the StatutoryAuditors.

7. DISCUSSION ON FINACIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: -

Presently, the Company is operating at a small level and has started its business activity of software business during the year under review.

However, the Management of the Company foresees the future opportunities in respect to the growth of the Company.

8. HUMAN RESOURCES:

The Company believes that the Human Resource Management is the central pillar of the Company. The Companys Human Resource activities follows core functions like staffing, development, compensation, safety and health, employee and labor relations etc. The Company conducts a wide variety of activities and strives to maintain and promote harmony and co-ordination among staff and members of the senior management.

9. TRADE RELATIONS:

The Company maintained healthy, cordial and harmonious industrial relations at all levels. Despite severe competition, the enthusiasm and efforts of the employees have enabled the Company for its existence.

10. DISCLOSURE OFACCOUNTING TREATMENT:

The Company has adopted Ind AS Accounting Standards w.e.f Financial year 2017-18. All disclosures and accounting policies adopted by the Company are disclosed in the Balance sheet which forms part of this Annual Report.

11. PAYMENT TO NON EXECUTIVE DIRECTORS:

In view of lack of financial resources, the non-executive Directors were not paid any remuneration by way of sitting fees and also any expenses incurred for attending the meeting of the Board or the Committee. The Non-executive Independent Directors do not have any material pecuniary relationship or transaction with the Company.

12. CAUTIONARY STATEMENT:

Under the Management Discussion and Analysis, the Companys objective estimates, projections and exception may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied depending upon economic conditions, demand/ supply, Government policies, tax laws, other statutes and other incidental factors.