klk electrical ltd Management discussions

The year 2022-23 has seen new global trends emerge both economic and technological. As the global economy started recovering post covid with support given by respective Governments of various countries, there were uncertainties that started clouding the sentiment of the business on possible recession due to tensions among various countries and its impact on the global supply chains. The beginning of the year also had impact of Great Resignation across industries but by the second quarter many tech companies saw their revenues getting impacted and lowering from the highs of the times of covid.

Despite the some strong under currents, your company was able to grow quarter on quarter as well as year on year consistently by closely working with its customers to provide innovative and value added services. The year also saw your company adding new high value clients and bag some prestigious new order in the emerging Robotic Process Automation space (RPA) that gives your company opportunities for a high growth.

On the technology front this year saw emergence and rapid adoption of a highly disruptive new Artificial Intelligence technology from OpenAI -ChatGPT and similar competing offerings from other key tech players. This technology is expected to have significant impact on future trends.

These techno-economic trends are impacting large, medium and small corporations in different ways. While, the large corporations need to realign their services and workforce by adopting these new technologies, their IT service providers and partners need to realign their offerings to help adoption of the new technologies which calls for high level of agility that is difficult in such companies. This trend is likely to open up exciting opportunities for agile and nimble smaller players who can adopt new technologies, processes to deliver required innovative solutions to their customers.

This technology trend coupled with the global macro economic trends has triggered a new Industrial revolution #Industry 4.0 (aka Fourth Industrial Revolution). We strongly believe that the ongoing automation of traditional manufacturing and industrial practices, using modern smart technologies is going to change the industry of the future beyond recognition. It involves the use of large enterprise- scale machine-to-machine communication (M2M) and the internet of things (IoT) deployments, enhanced by smart and autonomous systems fueled by data and machine learning.

Here are the key ingredients or the underlying technologies...

1. Internet of Things (IoT) - Devices and machinery are connected to networks, collecting and sharing data. This connectivity allows for more immediate and precise adjustments in manufacturing processes.

2. Artificial Intelligence (AI) and Machine Learning (ML) - With the vast amount of data collected by the IoT devices, AI and ML can help make sense of it, identify patterns, and make informed decisions to optimize operations.

3. Cloud Computing and Cyber-Physical Systems (CPS )- Cloud computing enables the storage and processing of large amounts of data by effectively combining the computation, networking, and physical processes.

4. Additive Manufacturing (e.g., 3D Printing) - This allows for more precise and cost-effective manufacturing of parts and components, even enabling bespoke production.

5. Augmented Reality (AR) and Virtual Reality (VR)- These technologies can assist with training, maintenance, or troubleshooting, providing operators with a visual guide or immersive experience.

6. Big Data Analytics- This involves the analysis of large, complex datasets to uncover patterns, correlations, and trends. This analysis can guide strategic decision-making in a business.

7. Robotics and Automation- Robots are used increasingly in the production line to increase efficiency, productivity and precision, and reduce human dependency and errors.

8. Blockchain Technology- Though not as widespread, blockchain is being explored for its potential in supply chain traceability and product authenticity.

These technologies have already started transforming the manufacturing industry in a way, promising improvements in efficiency, productivity, accuracy, flexibility, and customization. However, when combined together they can make a huge difference to the pace of innovation! #industry4 #industrv4point0

Industry 4.0 marks a revolution in the business landscape, propelled by macroeconomic shifts, dynamic supply chain realignments, and rapid digital emergence. Firms today must pioneer novel business models harnessing these trends to sustain and continue their growth.

Your Company Edvenswa Enterprises Limited, is positioning itself as an innovation-centric catalyst, that aspires to empower its clients to embrace these transformative industry 4.0 trends through building agile proofs of concept, ensuring cost-effective achievements and provide comprehensive support throughout the solution lifecycle.

Internal control systems and their adequacy - The Company has set up a proper and adequate and sound internal control system to safeguard the Companys assets and to enhance shareholders investment, as well as reviewing its adequacy and effectiveness of the said system. The duty of reviewing the adequacy and effectiveness of the internal control system has been assigned to the Audit Committee ("AC"). The Company constantly reviews its processes and the systems with an aim to remain competitive and address the changing regulatory and business environment.

Financial performance with respect to operational performance - The detailed discussion on the standalone and consolidated financial performance of the Company is mentioned in the Boards report which forms part of this Annual Report

Material developments in the Human Resources / Industrial Relations front - Your company continues to enjoy cordial relationship with its personnel at all levels and focusing on attracting and retaining competent personnel and providing a holistic environment where they get opportunities to grow and realise their full potential. Your company is committed to providing all its employees with a healthy and safe work environment.

There are 10 no of employees in the Company as on March 31, 2023.

Key financial ratios - The key financial ratios for the FY 2022-23 in comparison to FY 2021-22 are mentioned in note no 25 of the financial statements forming part of this Report.