MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY STRUCTURE AND DEVELOPMENT The Companyls engaged in the business of sale/ purchase of Optical Mark Readers, Image Scanners, Insight Scanners, Computers and other allied peripherals and equipments, designing, printing and supply of OMR Application/ Registration forms and Answer sheets, Answer booklets, confidential printing along with other necessary stationery. The company is also providing support services to its customers for the hardware sold by it and for that purpose sale of spare parts, indigenous as well as imported, is also affected. The company is also engaged in design and development of software for data capturing through Optical Mark Reading System/ Image Scanners/ Insight Scanners, Scanning of OMR Application forms/ Registration forms and Answer sheets and brparation of result for its customers. The comparison of the sales of the products of the Company over the brvious year is as under: The demand of the products being offered by the company is increasing during the financial year2012-13. The company has commenced manufacturing of OMR sheets and stationery which is the essential item for this business. With this backward integration now the company is more confident and hopeful for the better future in its business. OPPORTUNITY AND THREATS With increasing and continuous growth in the number of management, engineering, medical institutes in private sector, increased enrolment of student in professional courses and more vacancies being created by Governmental bodies, the business opportunities for Company are on increase. In near future the management perceives no major threat to the growth of business on this count. However, adverse change in Government's policies on education sector and recruitments may affect growth of business, The management do not perceive any major business threat from competitors except in usual course of business. The Company is able to maintain its leadership position in its business with its infrastructure, experienced staff, quality of service & products and cost effectiveness. However, increasing competition will have some impact on the profitability. FINANCIAL PERFORMANCE During the year under review the total revenue wasRs. 1481.67 Lac as againstRs.1526.32 Lac in F.Y. 201112. The net profits after tax for the year are Rs. 16.70 Lac as against ' 19.13 Lac in F.Y. 2011-12. The increasing financial costs, travelling and transportation costs, less realization of sales in terms of money are the main factors for the stagnancy in business. RISKS AND CONCERNS The customer base of the company is increasing, despite orders from some of the customers in government sector are not being repeated because the open tender system being followed by them for procurement of materials and services. The costs of imports are linked with the stability of Indian currency with respect to US Dollar. Due to continuous increase in the petroleum products, the costs of transportation, freight and fuel are increasing abnormally and disproportionately. On the contrary the number of players in the market are increasing, who are desperately struggling for business and in turn are causing stress on the product price. There has been phenomenal growth in the number of students in the technical sector and the volume in terms of quantity is going up. Despite this, the revenue in terms of rupee is going down because of the above factors, The only way of survival is cost reduction in the prices of products or rescheduling of product mix. The company is endeavoring on both the directions and is hopeful to get better results in the forthcoming year. As anticipated earlier, the Government has introduced unified system of examination for entrance in the Engineering Course. The examination of CAT is being conducted through online method. The medical examinations are also likely to follow the way of Engineering Examinations. Otherwise also offline method of entrance examination is loosing its charms as the institutions are switching over to online method of examinations. Even though the latter has its own limitations, yet it is causing losses to the business of the company. The sale of scanner is worst affected with the increase in the popularity of online examinations. So is the fate of OMR stationery requirement. The company is trying to balance its product mix by adding more items of printing in its business. With the timely review of brsent situation, company hopes to maintain its revenue level in the forthcoming year. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has established internal control systems, which provide reasonable assurance with regard to safeguarding of the Company's assets, promoting operational efficiency and ensuring compliance with various statutory provisions. The internal control systems are reviewed at a reasonable period of time by management and statutory auditors. The Report on the internal control systems is also placed before the Audit Committee regularly. The Statutory Auditors also review the findings with the Senior Management and Audit Committee. The Company is accredited with the ISO 9001-2008 & ISO 14001:2004 certification by JAS-ANZ-VEXIL(BPS MS). OUTLOOK FOR THE YEAR 2013-2014 In view of the increased competition, the Company is taking necessary steps to maintain its leadership position by maintaining / increasing its growth in all its business areas including that OMR Sheets, Scanners and Image Scanners. The company has envisaged a massive cost effective program to make its products more competitive while maintaining the quality. The company is ajso increasingly participating in the tender process for its business and new customers are pouring in. The business of the confidential printing is rather secured and remunerative. The company believes that in the forthcoming year its performance will be quite satisfactory. HUMAN RESOURCES DEVELOPMENT/ INDUSTRIAL RELATIONS The Company has a system for continuous development of its employees, whereby the performance and competencies of the individuals are measured. The requirements of the organization are matched with profile of the individuals. In case of any improvement areas, on the job training/ special programmes are being organized. This process has helped in career planning and growth of the employees. The Company has 37 numbers of employees as on 31/3/2013. The relationship of management with employees has been very cordial during the period under review. By the order of the Board of Directors Sd/-S.K. JAIN (Chairman and Managing Director) Place : Faridabad Dated : 12/08/2013 |