MANAGEMENT DISCUSSION AND ANALYSIS REPORT A. INDUSTRY STRUCTURE AND DEVELOPMENTS The Company is in business of information technology activity, News Paper printing & publishing, Business process outsourcing and knowledge process outsourcing. During the year Company earned its revenue from information technology and News Paper printing & Publishing activities. Due increased scope in information technology activity, outsourcing activity, printing and publication the company expects its businesses to sbrad all over in India. Despite improved global financial conditions and reduced short term risks, the world economy continues to expand at a subdued pace. The roots of outsourcing in India can be traced back to the 1980s, when India became an IT support center. Companies based in developed countries outsourced some of their elementary processing, administrative, and support functions to Indian firms. India, with its enormous pool of talented professionals, has been consistently rated as one of the top destinations for the BPO/KPO industry. The Indian KPO sector accounts for about 70% of the global KPO industry and is expected to grow at a CAGR of 30% to reach $30Bn in 2015, with financial services being the largest contributor. The industry has also finally come of age, with the sector now providing a variety of services such as legal processing, clinical trial management, along with advanced research & analytics. Software and computer technology are transforming business in every industry around the world. The last decade of 20th century has witnessed information technology to have revolutionary effect on the lives of people. Developed countries like USA, Germany and Japan have shown keen interest, in hiring Indian software professionals in their information technology sector. On the domestic front also, information technology industry has shown highest growth rates consistently over the last many years as compared to any other industry. The printing industry is highly fragmented. The newspapers and magazine publishing section has the large printers mainly apart from a few in package, label and commercial printing. The segments of graphic design, print quality and capability have achieved global standard. B. OPPORTUNITIES AND THREATS. Many companies and organizations have come to realize that by outsourcing non core activities, not only cost are minimized and efficiencies improved but the total business improves because the focus shifts to the key growth areas of the business activity. Therefore it provides large opportunities for companies engaged in service BPO/KPO. There is an ample opportunity for the printing sector in India because of the following factors : Increase in literacy rate, Use of ink in packaging, Rise in outsourcing of jobs to India, Large English knowing young population, Increase in life span (older people read more), Increased urbanization. A large number of factors have facilitated the fastest growth and development of information technology industry in India is: Relatively low cost of technical labour, Creation of global household brands, Government support and policies, Reasonable technical innovations, Contribution of IITs and other leading engineering colleges in India. There is various opportunity in Information technology sector: High quality IT education market, Increasing number of working age people, India 's well developed soft infrastructure. Our strength is our determination and team work, opportunities are multiples and threats are the vibrations in the economy and government policies. C. RISKS AND CONCERNS. Software development and IT Education is a risky business but the company is doing business diligently and does not expect any losses in the future. BPO/KPO sector is restricted by low employability despite high graduate turnout, and competing demand from other sectors as jobs grow faster than the workforce. A possible talent crunch and increasing competition from other countries such as China and the Philippines are the major challenges currently faced by the industry. D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY. The directors has laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the brparation and brsentation of financial statements. E. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE- Company is doing business diligently and does not expect any losses in the future. During the year the company has made a Profit of Rs. 1.39 lacs. F. HUMAN RESOURCES The company firmly believes that Human Resources and knowledge capital are vital for business success and creating value for stakeholders. The Company recognizes the fact that people drive business success, cordial with total dedicated efforts from employees. The number of employees on 31.03.2015 was 6. For & on Behalf of Board of Directors Sylph Technologies Limited CIN-L36100MP1992PLC007102 Jayshri Jain Director DIN-01824937 Rajesh Jain Director DIN-01704145 Place : Indore Date : 29-08-2015 Registered Office: St-4 Press House, 22 Press Complex, A.B. Road, Indore-452008 (MP) |