shreejal info hubs ltd share price Management discussions

Industry Structure and Development:

During the past several years, both the domestic and global economic situations have been very volatile and challenging. To survive in these times of uncertainty an organization has to adapt and adopt new ways to manage business. Company has been continuously striving to achieve success in operating IT enabled services. Globalization of economies supplemented by technological advances has led to the evolution of the outsourcing industry in India.

Financial and Operating performances:

During the year under review, Total income has increased 26 to 11. Lacs as compared to corresponding previous year of Rs. 17.44 Lacs as a result Net Profit after Tax was Rs.1.39 lacs as against Net Profit after Tax of Rs. 0.17 lacs for the corresponding previous year.

Internal Control System and Adequacy:

There is internal Control System in order to ensure efficient use of Company’s resources to improve the profit margin of the Company through the effective control on stock and debtors. The Company has adequate internal control procedure commensurable with its size and nature of the business. The prime objective is to test the adequacy and effectiveness of all internal controls and to suggest improvement therein.

Opportunities and Threats:

The Company is equipped with an extensive fleet of IT sector related equipment, including advanced mechanism in IT Sector, latest software to conduct operations smoothly. The Company has employed software and hardware experts to render services, to look after working mechanism of the Company and to assure that the process flow of the Company is not hindered by any outside factors or the factors related to software or hardware mechanism.

Threats

Attrition: One of the major challenges we face is high attrition.

Cost of people: The changes in human resource cost during the execution of the services may increase cost of services and alter profitability on contracts.

Global demand and economic conditions: As the Company is in the business of ITeS services hence face different challenges to serve. The demand for our services ITeS services is dependent on acceptance of our service offerings.

Regulatory environment: Our operations are exposed to uncertain political, legal and economic environment, government instability and complex legal systems and laws and regulations in India.

Competition: We operate in competitive business environment and may not be able to compete effectively.

Human Resources:

People are the most valued assets of the Company. They work individually and collectively contributing to the achievement of the objectives of the business. The relation between the employees and the Company remained cordial throughout the year. Your Companys corporate culture and the vision and values help unite the workforce and provide standards for how your Company conducts the business.

Risk Management:

Risk is an important element of corporate functioning and governance. Your Company has established the process of identifying, analyzing and treating risks, which could prevent the Company from effectively achieving its objectives. It ensures that all the risks are timely defined and mitigated in accordance with the well structured risk management process.

Future Outlook:

Your Company is currently focusing its resources to achieve success in operating IT enabled services. The Company is hopeful that in the coming years it will grow in leaps & bounds. The Company is also trying to venture into profitable activities during the year, so as to have maximized return of its capital.

Cautionary Statement:

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable laws or regulations. These statements are based on certain assumptions and reasonable expectation of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in the government regulations, tax laws, statues and other incidental factors.