MANAGEMENT DISCUSSION AND ANALYSIS REPORT The following points have been covered in Board's Report itself. 1. Segmentwise or Productwise performance 2. Risk and Concerns 3. Internal Control Systems and their adequacy 4. Discussion on financial performance with respect to operational performance 5. Material Developments in Industrial Relations front In addition to the above, the following points have been furnished below. Industry Structure and Development, Strengths, Weakness, Opportunities and Threats, Major initiatives undertaken and planned to ensure sustained performance and growth; The Indian Economy has seen a reversal from brvious years and has started picking up to become one of the few economies in the world with economic growth potential. As the Economy Survey 2014-15 brings out, the real Gross Domestic Product (GDP), as exbrssed through the recently revised methodology for estimating national income by the Central Statistics Office ( CSO), is expected to grow by between 8.1 and 8.5% in 201516, as against 7.4% in the brceding year. The improvement in the GDP figure also coincides with a decline in international commodity prices (particularly of crude oil). This has had a helpful impact on inflation and the fiscal deficit, the later being projected to decline to 3.9% of GDP in 2015-16 from 4.1% in the brvious year. On India's external front, there has also been several imbrssive improvements as witnessed in the surge in the country's foreign exchange reserves, stability in the rupee-dollar exchange rate, and a sharp narrowing of the Current Account Deficit (CAD) which had deteriorated to a 'worryingly high' level no so long ago, causing panic among investors and an outflow of foreign exchange. There has been lot of emphasis on human resources skill development, special universities to catering to the Electronics and Renewable Energy industry. This will have a positive impact on the Company, as it gives lot of emphasis on the indigenous development of products. MRO-TEK has always tried to do indigenization of design and manufacture to reduce the cost of the equipments and less dependency on the foreign vendors for spares and other maintenance activities. In the networking sector, though, there is nothing much happening on indigenous lines. All the products those are in use in data and communication networks in India are designed/developed/manufactured/tested outside the country. We have networking and communication equipments from every fathomable part of the world right from USA in the West to the far eastern countries like Taiwan, but hardly any from India. MRO-TEK is a Public Limited Company that is doing its bit to help hold up the Indigenous flag in the networking space for India. Since its inception in 1984, The Company has been, is and will be an Indigenous player in the true sense of the word. The entire process involved right from the conception of a new idea and the eventual evolution of this idea into a real world product through the R&D and Manufacturing is done indigenously. We also take great pride in the fact that with the added activities of R&D and Manufacturing, we are still a Green ISO 14001 certified company. Our complete manufacturing process is certified "GREEN". SWOT ANALYSIS MRO-TEK'S Strength We have new component supply agreements at optimum cost and with world class manufacturing unit at Electronic City we address different market segments, our area of operations have gone up in view of this. Since our core strength is Quality, Solution Design, On time delivery and effective 24/7 after sales support across India and hence we are recognized for our brand "MRO-TEK" MRO-TEK has its own R&D center (recognized By Department of Science and technology, Government of India) in Bangalore. Every stage of Research and Development, right from board level design to Firmware and Mechanical design is done from this facility. Cutting-edge technology, high-performing equipments, a respected brand name, excellent on time delivery and support system are just a few strengths that boost the resource capabilities. MRO-TEK'S Weaknesses Continuous obsolescence of technology, variation in business dynamics of service providers due to their ownvelocity of business. The above may increase non-moving inventory situations creating funds crisis Also new entrants of competition may enjoy new technology which has just changed Whereas we may take some time to adjust to the same. MRO-TEK'S Opportunities New technologies, increasing consumer base of service providers will force them to increase the capex which will give us an opportunity to increase our business in 4G roll out, as all our products are internet connectivity oriented, this will serve as excellent growth curve and rapidly benefit us in our revenue. MRO-TEK'S Threats A sluggish economy, increasing competition and increased government regulations are just a few external threats that can limit a company's future success. Threats are outside events or influences that create future hurdles for a company. Material Developments in Human Resources The Company to retain the skilled employees made an effort to evaluate the performance and increased the remuneration by 3.4 % during the year. The company made an effort to reduce the manpower count from 225 at the beginning of the financial year to 197 at the end of the financial year. |