sibar software services india ltd share price Management discussions

Annexure-III

Management Discussion and Analysis Report on the business of the Company as applicable and to the extent relevant is given below:

Industry Structure and Development

Changing economic and business conditions and rapid technological innovation are creating an increasingly competitive market environment that is driving corporations to transform their operations. Consumers of products and services are increasingly demanding accelerated delivery times and lower prices. Companies are focusing on their core competencies and are using outsourced technology service providers to adequately address these needs. The role of technology has evolved from supporting corporations to transforming them. There is an increasing need for highly skilled technology professionals in the markets in which we operate. At the same time, corporations are reluctant to expand their internal IT departments and increase costs. Corporations are increasingly turning to offshore service providers for higher quality, cost competitive technology solutions.

Opportunities and threats

These are challenging times for the Indian IT Industry given the current global financial crisis. All companies are under threat given the uncertainties in the market today. India is no longer decoupled from the global economy and all sectors, whether it is TT or BPO which are directly linked to rite fortunes of global business or retail, manufacturing and real estate which depend on the prosperity of the citizens to succeed will need to prepare themselves for a period of uncertainty and start building strategies and new capabilities for success in the future.

Companies in the knowledge services business will need to be watchful and avoid excessive cost or capacity build up at a time when demand will be weak at least for the next few quarters. Product and IP creating films can identify niche areas that emerge through the periods of instability and education and training firms can address the task of re-skilling both the existing workforce and job seekers to make them more suitable for the new challenges.

The economic environment, pricing pressure and decreased employee utilization rates could negatively impact our revenues and operating results.

Your Company has a Risk Assessment and minimization process, which is monitored on a periodic basis. We have a well-defined business contingency plan and disaster recovery plan to address these unforeseen events and minimize the impact on services delivered from our development centre Future Outlook

As we are entering in to rite domestic business, we expect to achieve higher growth rates in income and profits during the coming year.

Internal Control Systems and their Adequacy

The Company has an adequate Internal Control System to commensurate with the size of operations of the company. Further, the Audit Committee reviews the procedures of periodically. Discussion on financial performance with respect to operational performance A. Financial Conditions:

1. Capital Structure:-

The Authorized Share Capital of the Company as at 31st March, 2016 is Rs. 16,50 Lakhs divided into 165Lakhs Equity Shares of face value of Rs. 10/- each. The Share Capital of the Company consists of only Equity Shares. The Paid-up Capital of the Company as on 31st March, 2016 is at Rs. 1600.63 Lakhs comprising of 160.063 Equity Shares of Rs. 10/- each filly paid-up,

2. Reserves and surplus:

The Reserves and Surplus of the Company as on 31st March, 2016 stands at Rs. -8498261.49

3. Secured Loans:

The Working Capital Advances as at 31st March, 2016 stand at Nil

4. Unsecured Loans:

The Deferred Sales Tax amount as at 31st March 2016 stand at Rs. 32.06 Lakhs.

5. Fixed Assets:

The Gross Block stood at Rs. 393.69 Lakhs and the net block stood at Rs. Nil as at 31st March, 2016 compared to Rs. 393.68 Lakhs and Nil Lakhs as at 31st March, 2015 respectively. The decrease in the value of the Fixed Assets is on account of depreciation of plant and Machinery.

6. Revenue:

During the year, the Company achieved sales Rs.6.37 Lakhs compared to Rs. 7.68 Lakhs in the previous year ended 31st March 2015.

Environment and Safety

The company maintains and effects continual improvement in environmental standards and complies with the safety requirements. The company cares for the safety of its employees and safety training is imparted to the employees in the factory. Personal protective equipment is provided to the employees in conformity with statutory requirement Human Resources

The company believes that the quality of its employees is the key to its success in the long run and is committed to provide necessary human resource development and training opportunity to quip them with skills, which would enable them to adapt contemporary technological advances.

Cautionary Statement

Statement in this "Management Discussion & Analysis" may be considered to be "forward looking statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied Important factors that could make a difference to the Company’s operations include global and Indian demand-supply conditions, increased installed capacity, finished goods prices, raw materials availability and prices, cyclical demand and pricing in the Company’s markets, changes in Government regulations, tax regimes, besides other factors.