MANAGEMENT DISCUSSION & ANALYSIS 1. Business overview The company has ceased its printing operations two years ago due to commercial unviability and as such the Company has no business operations during the year. The Company is evaluating on various options including starting a new line of business. 2. Discussion on financial performance Revenue: Since the Company has ceased its printing operations, hence there is no revenue from printing business during the year. However, there has been revenue from sale of scrap amounting to Rs. 40.28 lakhs and other income amounting to Rs. 33.63 lakhs. The Company had negligible revenue from sale of scrap of Rs. 3.71 lakhs during the brvious year. Expenditure: Since the company has ceased its operations two years ago, there are no manufacturing expenses during the year. Other expenses of Rs. 1.13 crore during the year, mainly consist of legal and professional charges of Rs. 21.23 lakhs including audit fee, and facility costs of Rs. 91.87 lakhs which mainly includes rent, electricity, rates and taxes, housekeeping and security charges, as compared to Rs.2.4 crore during the brvious year. The employee costs were reduced to Rs. 3.82 lakhs as compared to Rs. 81.43 lakhs for the brvious year as the Company reached settlement with its remaining employees through a voluntary retirement scheme during the brvious year. Now the Company has only one employee on its payroll. The Company had reached a compensation settlement with all its permanent employees through a Voluntary Retirement Scheme resulting in expenditure amounting to Rs. 8.19 crore during the brvious year. The compensation paid had been charged to profit and loss for the respective financial years. 3. Risk and concerns The printing operations of the Company have been discontinued post the majority of the employees having availed the benefits of the Voluntary Retirement Scheme. The management is evaluating various options, including starting a new line of business, and shall brsent them, with a recommended approach, to the Board. The Business decision taken by the Board will determine the risk and concerns. However general risk and concerns as applicable to all the industries would be applicable to the Company. a. Global economic environment: The global economic environment even though coming out of the difficult times, is still faced with the crisis in certain European countries and the uncertainty continues to remain. The credit risk across corporate and customers have to be carefully examined while doing business. We will need to engage & focus on developing and diversifying our business model to extend our reach to other products & markets in various geographical locations. We will need to offer value proposition to the new customers to develop and grow business further. b. Regulatory Risk: Management believes that in the event the Company decided to enter into a new line of business, there may be regulatory risk in regard to the operation and management of the Company as may be applicable to new line of business. c. Asset Risk: The Building constructed on the leasehold land situated at Nerul is quite old. In the event the Company decides to enter into a new line of business, it may have to alter or reconstruct the said building to suit the new line of business. 4. Internal Control Systems The Company has a well laid out internal control system for the various activities. The Internal control systems are so designed to ensure that there is adequate safeguard on maintenance and usage of assets of the company. A detailed internal audit plan is worked out at the beginning of the financial year and the observations of the auditors are shared with the Audit Committee and the statutory auditors. 5. Human Resources The Company had reached a compensation settlement with majority of the permanent employees of the Company through a Voluntary Retirement Scheme. The Company recognizes the key role played by the people and we would like to thank each and every member of the Infomedia family for their role and contribution towards the company over the years. 6. Outlook The printing operations of the Company have been discontinued post the majority of the employees having availed the benefits of the Voluntary Retirement Scheme. However the management is evaluating various options, a new line of business, and brsent them with a recommended approach to the Board. CAUTIONARY STATEMENT Statement in the Management Discussion and Analysis describing the Company's objectives, projections, estimate, expectations on a go "forward - looking statements" are within the meaning of applicable securities laws and regulations. Actual results could differ materially from those exbrssed or implied. Important factors that could influence the Company's operations include economic developments within the country, demand and supply conditions in the industry, input prices, changes in government regulations, tax laws and other factors such as litigation and industrial relations |
