PCS Technology Ltd Management Discussions

Business Background

The business operation of the Company in the past periods included domestic IT services by providing maintenance of desk top computers and peripherals like printers, networking equipment, etc. and to some extent has provided IT related facility management services.

The rapid technological changes in the IT hardware equipment and extended after sales warranty offered by original equipment suppliers had trimmed the opportunities in the companys line of computer hardware maintenance business. In the situation, the Management after careful evaluation had to discontinue the line of business.

Performance & Review of existing business IT and FMS Services

Looking at the prevailing situation, the company did not solicit business. The Company only preferred to preserve its financial position and with this view, had placed funds with the Banks in Term Deposits to derive income. The Company, in the current year earned overall revenue amounting to Rs 407.18 lacs (Previous year Rs 334.39 Lacs) and Profit before Exceptional Items amounting to Rs 182.93 Lacs (Previous year Rs 133.10 Lacs). The Company has maintained positive level of profitability by cutting down various costs and proper utilization of funds.

Opportunities. Threats & Risks

The Company at an opportune time will review plans, till then the present scenario may not see changes.

Future Outlook

The Management will put in efforts to look for new opportunities which can add into its Financials. Till the Management arrives at a conclusion, the Company proposes to continue to generate income by investing its surplus funds in safer manner to serve its stake holders. Your Company is taking all measures to remain financially stable and cost efficient.

Indian Subsidiary

PCS Positioning Systems (India) Limited

The subsidiary did not involve in business.

PCS Infotech Limited

The subsidiary did not involve in business.

The management is evaluating various options to restructure the base in the best interest of the Company.

Internal Control and Adequacy

The Company has an appropriate internal control system commensurate to the size of business process and operations, financial reporting and compliance with applicable regulations and laws and to ensure that all the assets are safeguarded, protected against loss from unauthorised use or disposition and those transactions are authorised, recorded and reported correctly.

The internal audit & financial reports are reviewed for corrective actions wherever required. The views of statutory auditors are also considered to ascertain the adequacy of the internal control system in the Company.

Human Resources

The Company has retained requisite resources to safeguard companys assets and to adhere legal compliances as per requirement. Your Directors acknowledge and thank employees for their continued contribution.

Cautionary Statement: In this Management Discussions and Analysis describing companys objective and predictions may be "forward looking statement" within the meaning of applicable laws and regulations. Actual results may differ from those expressed herein. Important factors that could make difference to the operations include Government regulations, tax structures, and countrys economic development, availability of input and their prices and other incidental factors.