springform technology ltd Management discussions

I. Overview:

Your Company is engaged in providing services in the field of Information Technology. Your Company develops and sells software products/ solutions and provides support and has also ventured into training and setup solutions to enable proper deployment of developed solutions. Your Company provides tailor-made solutions for its clients. Engineering-based data management services are also being rendered.

II. Industry Structure and Development:

The current scenario of the IT solutions market needs more specialization than generic solutions which are commonly spread out with heavy competition. With increasing digitization and adaptation of IT solutions the market is growing, but competition makes it only viable to pitch in the niche markets. This requires new business models, new ways of working, and integrated capability across strategy, design, and technology. The Government of India also supports digital India as a new reform.

III. Opportunities and Threats:

IT support is the backbone of the enterprise. IT support increases the scalability of the venture. The integration technology is a start in India and has massive potential in the years ahead. Specialized and niche sectors like engineering integration, process integration, providing cross platforms, and operating-setup solutions are picking up pace.

Generic solutions in the IT sector are facing tremendous competition. The profitability has been limited since the cost of operations has increased over the years. Unless the size of the organization is limited, the cost surpasses the income.

IV. Segment-Wise or Product-Wise Performance

Your Company has diversified into engineering and manufacturing services, software training, and Engineering data management solutions. Your Company has received good outcome from these services and being a gap in the market for such providers there is more opportunities seen.

V. Outlook, Risks, and Concerns

Following are certain factors due to which actual, performance differs from anticipated results and these are risks and concerns faced by the Company:

1. Retention of highly-skilled technology professionals.

2. Gaps in Management personnel are for Individual projects.

3. Stricter compliance regime.

4. Lack of recruitment of working-level employees.

VI. Internal Control Systems and their Adequacy

Your Company has an adequate internal financial control system commensurate with the size of its business operations and operates effectively throughout the year.

VII. Financial Performance with respect to Operational Performance

During the year under review, your Company made a total turnover of Rs. 114.96 Lacs by way of sales and service of Computer Software and a net Profit of Rs. 21.48 Lacs. Your Company is hopeful of achieving higher Turnover and profitability barring unforeseen circumstances in the next FY.

VIII. Material Development in Human Resources

The Company is engaged in specialized technology services, which enables it to attract and retain the best talent.

HUMAN CAPITAL:

Human Capital is a collection of resources- all talent, skills, ability, experience, and intelligence. A companys human capital is the most important asset. Your Company is making efforts to attract . retain and motivate the best employees. Providing required training for this specialized technology is also a motivating factor for employees transitioning into a new era of technology and improving their skills.

TRAINING AND DEVELOPMENT:

In an ever-changing and fast-paced corporate world, training and development is an indispensable function. Your Company provides training programs for recruits to get familiar with the working environment of the Company and their job profile. Development programs are conducted for officers, functional heads and directors to get updated with changes in corporate laws. Training allows employees to acquire new skills, sharpen existing ones, perform better, increase productivity, and be better leaders.

COMPENSATION:

Your Company has an appropriate remuneration policy adequate to attract retain and motivate employees. The remuneration policy is linked with the performance of individual employees and the performance of the Company.

IX. Details of Significant Changes (i.e. Change of 25% or more as compared to the immediately previous Financial Year) in key Financial Ratios along with a detailed explanation, if any thereof, including the following (last year)

(a) Debtors turnover - 0.45

(b) Inventory turnover - NIL

(c) Interest coverage ratio - NIL

(d) Current ratio-2.67

(e) Debt-equity ratio - 8.58 (The Company opted to reduce its debt burden. There were issues with supplier and service providers, which were taken up for resolution, and the same was discharged to have healthier financials.)

(f) Operating profit margin - 3.06 (Having opted for new segments of business, the Company had to mitigate a lot of uncertain expenses that were initially not sought. However, this has opened a new window of opportunity for more business prospects and hence the Company now looks forward to changing its cost and charging strategy with customers).

(g) Net profit margin - 1.86 (Change in the method of operations and also the additional cost of running projects in the complex scenario of Manpower work conditions, ensuring the safety of employees and stringent and wavering operating conditions of Customers has impact on this financial pillar).

(h) Sector-specific equivalent ratio - NA

X. The Return on Net Worth

The Return on Net worth of the Company has increased by 1.38% from the immediate previous financial year due to an increase in cost of operations on account of new business ventures and upgrading hardware.

For and on behal??fc4tae Board
Pankaj KishoK^hah^l	RupafN&itkiffiiah
Managing Director-"	Director
DIN:00945911	DIN:06955564
Place: Mumbai	•
Date: August 14, 2023