3C IT Solutions & Telecoms (India) Ltd Management Discussions

Management Discussion & Analysis

The Management Discussion and Analysis is based on the financial statements prepared in accordance with the Generally Accepted Accounting Principles (GAAP) .

Insights into the Information Technology Sector

Global SI Market

By Service Outlook (Hardware Integration Service, Software Integration Service, Consulting Service), By Technology (Human-Machine Interface (HMI), Supervisory Control And Data Acquisition (SCADA), Manufacturing Execution System (MES), Functional Safety System, Machine Vision Industrial, Robotics Industrial Pc, Industrial Internet Of Things (IoT), Machine Condition Monitoring, Plant Asset Management), By End User (IT And Telecom, BFSI, Healthcare, Retail, Manufacturing, Energy And Utility, Other End-Users

A system integrator refers to the combination of hardware, software, networking, and storage solutions from many suppliers to create computer systems for clients. A systems integrator can help a corporation align cheaper, preset components and commercial off-the-shelf software to fulfil essential business goals, as opposed to more expensive, bespoke solutions that may involve original programming or the manufacture of unique components.

The main system integrator service outlook includes hardware integration service, software integration service and consulting service. Hardware integration service refers to the process of linking hardware and software. Hardware integration is the combination of hardware, software, sensors, and connections. The different system integrator technologies include human-machine interface (HMI), supervisory control and data acquisition (SCADA), manufacturing execution system (MES), Functional safety system, machine vision industrial, robotics industrial pc, industrial internet of things (IIoT), machine condition monitoring and plant asset management. The end users of system integrator include IT and telecom, BFSI, healthcare, retail, manufacturing, energy and utility and other end- users.

1) By Service Outlook: Hardware Integration Service, Software Integration Service, Consulting Service

2) By Technology: Human-Machine Interface (HMI), Supervisory Control and Data Acquisition (SCADA),

Manufacturing Execution System (MES), Functional Safety System, Machine Vision Industrial, Robotics Industrial Pc, Industrial Internet Of Things (IIoT), Machine Condition Monitoring, Plant Asset Management

3) By End User: IT And Telecom, BFSI, Healthcare, Retail, Manufacturing, Energy and Utility, Other End-Users North America is the largest region in the market

The system integrator market size has grown strongly in recent years. It will grow from $37.57 billion in 2023 to $39.76 billion in 2024 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to the increasing complexity of it environments, demand for customized solutions, business process optimization, legacy system integration, compliance and regulatory requirements.

The system integrator market size is expected to see strong growth in the next few years. It will grow to $52.1 billion in 2028 at a compound annual growth rate (CAGR) of 7.0%. The growth in the forecast period can be attributed to digital transformation initiatives, cloud integration services, IoT and edge computing integration, cybersecurity integration, global expansion and scalability. Major trends in the forecast period include integration of robotic process automation (RPA), hybrid it environment integration, collaboration tools integration for remote work, focus on scalability and flexibility, and adoption of integration platforms as a service (IPaaS).

The global system integration market size was valued at USD 385.95 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 13.8% from 2023 to 2030. Rising public and private investments in system integration solutions for the enhancement of Information Technology (IT) infrastructure are driving the system integration market growth. The increasing need for eradicating the diversity, and heterogeneity, of vital applications used in infrastructure, is expected to drive the system integration market over the forecast period. The outbreak of COVID-19 hurt the system integration industry across the globe. However, from early 2021 onwards, rapid digitization and a rise in public & private investments in infrastructure development boosted the demand for project management and system integration solutions.

1) By Service Outlook: Hardware Integration Service, Software Integration Service, Consulting Service

2) By Technology: Human-Machine Interface (HMI), Supervisory Control And Data Acquisition (SCADA), Manufacturing Execution System (MES), Functional Safety System, Machine Vision Industrial, Robotics Industrial Pc, Industrial Internet Of Things (IIoT), Machine Condition Monitoring, Plant Asset Management

Rapid Surge In Industrial Robot Adoption Is A Catalyst For System Integrator Market Growth

The increasing use of industrial robots for manufacturing is expected to propel the growth of the system integrator market. An industrial robot is a device that is designed to automate work manufacturing operations, which are required by a constantly moving assembly line. They are installed in fixed positions within an industrial facility. A robotic systems integrator analyzes manufacturing needs, provides custom solutions, and design, and then supports the robotic system. Additionally, the demand for automation solutions has also favored the demand for industrial robots in manufacturing. For instance, in October 2022 the International Federation of Robotics, a Germany-based non-profit organization said that 517,385 new industrial robots were installed in companies worldwide in 2021. This is a 31% year-on-year increase and outnumbers the pre-pandemic record of robot installation in 2018 by 22%. At present, the global fleet of operational robots has reached a new high of over 3.5 million units. Therefore, an increase in the adoption of industrial robots will drive the system integrator market.

IOT Integration Driving Growth In The Electrical And Electronics System Integrator Market

The increasing use of loT technology is expected to propel the growth of the system integrator market going forward. The Internet of Things (loT) refers to a network of interconnected physical devices, vehicles, buildings, and other objects embedded with sensors, software, and network connectivity, allowing them to collect and exchange data. loT enables seamless connectivity between devices and systems, allowing system integrators to create integrated solutions, data-driven decision making, improved operational efficiency, scalability, increased visibility, energy efficiency, and improved security, and enables system integrators to remotely monitor and manage devices and systems. For instance, in March 2023, according to Exploding Topics, a US-based online platform that provides insights into emerging and trending topics, by 2030, it is anticipated that there will be 25.4 billion loT devices. Therefore, the increasing use of loT technology is driving the growth of the electrical and electronics market

Major companies operating in the system integrator market report are Siemens AG, Accenture PLC, The International Business Machines Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Tata Consultancy Service Limited, Capgemini SA, Infosys Limited, Emerson Electric Co, Control4 Corporation, Delta Electronics Inc., Wipro Limited, Rockwell Automation Inc., Omron Corporation, Fanuc Corporation, Hexagon AB, John Wood Group PLC, KUKA AG, Yokogawa Electric Corporation, ATS Automation Tooling Systems Inc., National Instruments Corporation, Beckhoff Automation GmbH & Co KG, Cognex Corporation, B&R Industrial Automation GmbH, INTECH Process Automation Inc., Burrow Global LLC, JR Automation Technologies LLC, L&T Technology Services Limited, MAVERICK Technologies LLC, Barry Wehmiller Design Group Inc., Prime Controls LP, Avanceon Limited, Tesco Controls Inc.

Revolutionizing System Integration with The IBM Z And Cloud Modernization Centre

Product innovations have emerged as a key trend gaining popularity in the system integrator market. Major companies operating in the market are advancing toward the use of cloud computing solutions for the system integrator market. For instance, in December 2021, IBM Corporation, a US-based technology company, launched IBM Z and Cloud Modernization Centre for the acceleration of hybrid cloud. It serves as a digital portal to a large

array of tools, training, resources, and ecosystem partners designed to assist IBM Z clients in accelerating the modernization of their apps, data, and processes in an open hybrid cloud architecture. Some of its features are business acceleration, developer productivity, infrastructure cost efficiency, regulatory, compliance, and security, as well as deployment flexibility.

Entities Join Forces to Drive Innovation In Embedded Systems And Manufacturing Automation

Major companies operating in the system integrator market are forming partnerships to develop new products and strengthen their positions in the market. Collaborations and partnerships in the system integrator market foster innovation, leverage complementary expertise and accelerate the development and commercialization of advanced therapies by combining resources and capabilities. For instance, in September 2023, Arduino LLC, a US-based open-source hardware and software company partnered with DMC Inc. a US-based consulting firm. This partnership is to bring open technology to embedded applications and manufacturing automation. By combining their respective product lines and areas of expertise, the two companies hope to develop cutting-edge solutions for a range of sectors. Through this partnership, both businesses can innovate and create innovative products in the fields of manufacturing automation and embedded systems. This partnership is a response to the increasing demand for Arduino PRO hardware and software, and it shows how dedicated both businesses are to offering top-notch engineering and bespoke software solutions for embedded and manufacturing applications

AI catalyst to grow the SI Business

Artificial Intelligence (AI) can significantly catalyse the growth of the System Integration (SI) business by enhancing operational efficiency, driving innovation, and improving customer experiences. Here are some key ways AI can be leveraged:

1. Automation of Repetitive Tasks

AI can automate routine and repetitive tasks, freeing up human resources to focus on more strategic activities. This includes automating data entry, system monitoring, and routine maintenance tasks1.

2. Enhanced Data Analysis

AI algorithms can analyse vast amounts of data to identify patterns, trends, and insights that were previously inaccessible. This enables more informed decision-making and helps in optimizing resource allocation!.

3. Improved Customer Experience

Al-powered chatbots and virtual assistants can provide 24/7 customer support, handle inquiries, and resolve issues quickly. This enhances customer satisfaction and loyaltyl.

4. Predictive Maintenance

AI can predict potential system failures and maintenance needs before they occur, reducing downtime and improving system reliability. This is particularly valuable in complex IT environments!.

5. Integration of Advanced Technologies

AI facilitates the integration of advanced technologies such as IoT and edge computing, enabling more efficient and effective system integration solutions 1.

6. Personalized Solutions

AI can help in creating personalized solutions tailored to the specific needs of clients, enhancing the value proposition of SI services 1.

7. Innovation and Growth

By leveraging AI, SI businesses can innovate new services and solutions, staying ahead of the competition and driving growth. AI can help in developing new business models and exploring untapped markets1.

8. Operational Efficiency

AI can optimize various operational processes, from supply chain management to project management, leading to cost savings and improved efficiency1.

9. Real-World Examples

AI-Powered Chatbots: Many companies use AI chatbots to handle customer service inquiries, reducing the workload on human agents and providing instant support.

Predictive Analytics: AI-driven predictive analytics can forecast demand, optimize inventory, and improve supply chain efficiency.

The system integration product market is evolving rapidly, driven by several key trends:

1. Cloud Computing Adoption: The increasing adoption of cloud computing solutions is a major driver. Organizations are moving their infrastructure to the cloud to enhance scalability, flexibility, and cost-efficiency

• Integration: Cloud-based integration platforms are becoming more popular, enabling seamless connectivity between on-premises and cloud applications

2. Internet of Things (IoT)

• Connectivity: The proliferation of IoT devices is creating a need for robust system integration solutions to manage and analyze data from various sources

• Edge Computing: Integration of edge computing with IoT is enhancing real-time data processing capabilities

3. Artificial Intelligence (AI) and Machine Learning (ML)

• Automation: AI and ML are being integrated into system integration processes to automate tasks, improve efficiency, and provide predictive analytics

• Enhanced Decision-Making: These technologies help in making more informed decisions by analysing large datasets and identifying patterns

4. Big Data and Analytics

• Data Integration: The need to integrate and analyse large volumes of data from disparate sources is driving the demand for advanced system integration solutions Operations.

5. Cybersecurity

• Security Integration: With the increasing number of cyber threats, integrating robust security measures into system integration processes is becoming crucial

• Compliance: Ensuring compliance with various regulations and standards is also a key focus.

6. Automation and Robotics

• Processes.Smart Manufacturing: Integration of smart manufacturing technologies is enhancing production efficiency and reducing costs

7. Digital Transformation

• Modernization: Organizations are undergoing digital transformation to modernize their IT infrastructure and improve operational efficiency

• Innovation: This transformation is fostering innovation and enabling the development of new business models

8. Hybrid IT Environments

• Integration Challenges: The coexistence of legacy systems with modern technologies is creating challenges that require sophisticated integration solutions

• Seamless Operations: Ensuring seamless operations across hybrid environments is a key focus for system integrators

These trends are shaping the future of the system integration market, driving innovation, and creating new growth opportunities.

Corporate Profile

3C IT Solutions was originally incorporated as a private limited company under the name of "3C IT Solutions & Telecoms(India) Private Limited" under the provisions of the Companies Act, 2013 and a certificate of incorporation was issued by the Registrar of Companies, Pune, India on March 24, 2015. Subsequently, our Company has been converted into a public limited company and the name of our Company has been changed to "3C IT Solutions & Telecoms (India) Limited" pursuant to a special resolution passed at the Extra-Ordinary General Meeting held on July 27, 2023 and a fresh certificate of incorporation dated August 14, 2023 has been issued by the Registrar of Companies, Pune. The Corporate Identity Number of our Company is U72200PN2015PLC154459.

3C IT Solutions, headquartered in Pune, Maharashtra, is an established IT systems integration company operating for the past 8 years. Our Company operates with a vision to provide competitive IT system integration capabilities endeavouring to use best in class technologies and hence brings significant value to the stakeholders. We aim to create a well-respected, highly skilled and professional workforce that can serve diverse technology needs of the businesses as our service portfolio comprises of several IT related services which caters to the needs of our customers. Our service offerings are spread across the spectrum of various IT services and solutions such as infrastructure solutions, digital business solutions and consulting solutions.

Product & Services

The company offers various IT products and services bifurcated under 3 segments i.e. Infrastructure solutions, Digital business solutions, and Consulting solutions to meet the client requirements. 3C IT offers the following solutions to their clients: - Data Storage Management. - Server infrastructure solutions that maximise IT investment and deliver high performance. - Customized network design and implementation solutions. - Security consolidation and optimisation to capitalise on the current investment.

3C IT Solutions & Telecoms (India) Limited offers a comprehensive range of products and services designed to meet diverse IT needs. Heres an overview of their offerings:

Products and Services

1. Infrastructure Solutions

• End User and Devices: Solutions for managing end-user devices and configurations.

• Device Configuration: Custom device setup and configuration services.

• Data Protection: Comprehensive data protection solutions to safeguard critical information.

• Computer Accessories: A variety of computer accessories to enhance productivity.

• Networking Solutions: Design and implementation of robust network infrastructures.

• IT Security Solutions: Advanced security solutions to protect IT environments.

• Audio Video Solutions: High-quality audio and video solutions for various applications

4. Digital Business Solutions

• Digital Transformation: Services to help businesses transition to digital platforms.

• Cloud Solutions: Cloud computing services for scalable and flexible IT infrastructure.

• IoT Integration: Integration of Internet of Things (IoT) devices for enhanced connectivity and data analysis.

5. Consulting Solutions

• Strategic Consulting: Expert advice and strategies to drive business success.

• Technology Consulting: Guidance on leveraging the latest technologies for business improvement.

• Process Optimization: Services to streamline and optimize business processes².

6. Server Infrastructure Solutions

• High Performance: Solutions designed to maximize IT investment and deliver high performance.

• Customized Network Design: Tailored network design and implementation services.

• Security Optimization: Consolidation and optimization of security measures to capitalize on current investments

Competitive Advantage

3C IT Solutions & Telecoms (India) Limited distinguishes itself in the competitive IT market through its comprehensive and innovative service offerings. The companys competitive advantage lies in its ability to provide end-to-end IT solutions, including advanced data center solutions, robust networking, and cutting-edge security measures. By leveraging strategic partnerships and a deep understanding of client needs, 3C IT Solutions ensures seamless integration and optimal performance of IT systems. Their commitment to continuous innovation and customer satisfaction, combined with a strong focus on emerging technologies like AI and IoT, positions them as a trusted and forward-thinking partner in the IT industry.

Furthermore, 3C IT Solutions excels in delivering customized solutions tailored to the specific requirements of their clients. Their expertise in digital transformation, cloud solutions, and IoT integration enables businesses to modernize their IT infrastructure and enhance operational efficiency. The companys proactive approach to identifying and mitigating potential challenges ensures that clients receive reliable and scalable solutions. This customer-centric focus, coupled with a robust portfolio of services, empowers 3C IT Solutions to consistently deliver value and maintain a competitive edge in the rapidly evolving IT landscape

Favourable Market Opportunities for the Company

3C IT Solutions & Telecoms (India) Limited is well-positioned to capitalize on several favourable market opportunities. The rapid adoption of digital transformation across industries presents a significant growth avenue. As businesses increasingly migrate to cloud-based solutions and integrate IoT devices, the demand for robust system integration services is expected to surge. 3C IT Solutions, with its expertise in cloud solutions, IoT integration, and advanced data center solutions, is ideally placed to meet these needs. Additionally, the growing emphasis on cybersecurity and data protection offers another lucrative opportunity. By providing comprehensive IT security solutions, 3C IT Solutions can help organizations safeguard their digital assets, thereby enhancing their market position.

Moreover, the expansion of the IT infrastructure market in emerging economies, particularly in Asia-Pacific, offers substantial growth potential. As these regions continue to industrialize and modernize their IT infrastructure, the need for reliable and efficient system integration services will increase. 3C IT Solutions can leverage its strong presence and expertise to tap into these markets. Furthermore, the companys focus on

innovation and adoption of emerging technologies like AI and machine learning can drive the development of new, cutting-edge solutions, attracting a broader client base and fostering long-term growth.

Potential Threats to the Company

3C IT Solutions & Telecoms (India) Limited faces several potential threats that could impact its growth and stability.

Rapidly evolving cybersecurity landscape

One significant threat is the rapidly evolving cybersecurity landscape. With the increasing sophistication of cyberattacks, including ransomware, phishing, and data breaches, the company must continuously invest in advanced security measures to protect its infrastructure and client data. Failure to do so could result in significant financial losses, reputational damage, and loss of client trust. Additionally, the reliance on third-party vendors and partners introduces vulnerabilities that could be exploited by cybercriminals.

Intense competition

Another potential threat is the intense competition in the IT services market. The industry is characterized by numerous players offering similar services, which can lead to price wars and reduced profit margins. To stay competitive, 3C IT Solutions must continuously innovate and differentiate its offerings.

Economic fluctuations and changes in regulatory

Economic fluctuations and changes in regulatory environments can also pose challenges, affecting client budgets and spending on IT services. Moreover, the rapid pace of technological advancements requires ongoing investment in new technologies and training for staff, which can strain resources and impact profitability.

Rapid Technological advancements

Technological advancements, while offering numerous opportunities, also pose significant threats to 3C IT Solutions & Telecoms (India) Limited. One major threat is the rapid pace of innovation, which can render existing technologies and solutions obsolete. To stay competitive, 3C IT Solutions must continuously invest in research and development to keep up with the latest advancements in AI, IoT, and cloud computing¹. This constant need for innovation can strain resources and require substantial financial investment, potentially impacting profitability.

Additionally, the increasing complexity of new technologies introduces challenges in integration and implementation. As clients adopt more advanced and diverse technologies, the demand for sophisticated integration solutions grows. 3C IT Solutions must ensure that its workforce is adequately trained and equipped to handle these complexities¹. Failure to do so could result in suboptimal service delivery and loss of client trust. Moreover, the rise of new competitors who specialize in cutting-edge technologies can intensify market competition, making it crucial for 3C IT Solutions to differentiate itself through superior service and innovative solutions

Process & Tools

One significant threat is the rapid evolution of IT tools and technologies. As new tools and platforms emerge, the company must continuously update its processes and invest in training its workforce to stay current. effectively. Additionally, the integration of new tools with existing systems can pose compatibility issues, potentially disrupting service delivery and affecting client satisfaction¹.

Another threat is the reliance on third-party tools and vendors. Dependence on external providers for critical tools and services can introduce vulnerabilities, such as supply chain disruptions or changes in vendor policies that may not align with the companys strategic goals¹. Furthermore, the increasing complexity of IT environments requires sophisticated tools for monitoring, management, and security. If 3C IT Solutions fails to adopt and integrate these advanced tools, it risks falling behind competitors who can offer more robust and efficient solutions¹. Ensuring that processes and tools are continuously optimized and aligned with industry best practices is crucial for maintaining a competitive edge.

Skilled Resource & Retention

3C IT Solutions & Telecoms (India) Limited faces significant threats related to skilled resource acquisition and retention. The IT industry is highly competitive, and attracting top talent is increasingly challenging due to the high demand for skilled professionals¹. This competition can lead to increased hiring costs and longer recruitment cycles, potentially delaying critical projects and impacting service delivery. Additionally, the rapid pace of technological advancements requires continuous upskilling and reskilling of employees, which can strain resources and necessitate substantial investment in training programs.

Retention of skilled resources is another critical threat. The "Great Resignation" and the rise of remote work have made it easier for employees to switch jobs, often for better compensation or more flexible working conditions¹. High turnover rates can disrupt ongoing projects, lead to loss of institutional knowledge, and increase recruitment and training costs. To mitigate these risks, 3C IT Solutions must focus on creating a supportive work environment, offering competitive compensation packages, and investing in professional development opportunities to retain top talent

Financial Performance

3C IT Solutions & Telecoms (India) Limited experienced a challenging fiscal year ending March 2024, with a notable decline in total revenue. The companys revenue decreased from ^62.93 crores in FY 2023 to ^30.22 crores in FY 2024, reflecting a significant drop of approximately 52%. This decline can be attributed to various factors, including market competition and economic fluctuations. Despite the decrease in revenue, the company managed to maintain a positive operating profit margin of 5.61%, although this was slightly lower than the previous years margin of 6.30%.

The net profit for FY 2024 also saw a sharp decline, dropping from ?1.14 crores in FY 2023 to ?0.12 crores¹. This substantial decrease in net profit, approximately 89%, was primarily due to increased tax expenses and higher borrowing costs. The companys net profit margin fell to 0.41%, down from 1.83% in the previous year. These financial challenges highlight the need for strategic adjustments to improve profitability and sustain growth in the competitive IT market.

Despite these setbacks, 3C IT Solutions remains committed to its long-term growth strategy. The company has continued to invest in advanced technologies and expand its service offerings to meet evolving client needs. By focusing on innovation and enhancing operational efficiency, 3C IT Solutions aims to overcome current financial challenges and achieve sustainable growth in the coming years¹. The companys proactive approach to addressing market demands and optimizing its financial performance positions it well for future success.

Key Financial Ratios:

Ratio	Ratio as on For the year ended March 31, 2024	Ratio as on For the year ended March 31, 2023	% Variance	Reason for change exceeding 25%
Current Ratio	2.21	2.00	10.12%	NA
Debt-Equity Ratio	1.23	3.27	-62.32%	The Company has repaid debts during the Current year leading to a reduction in the ratio.
Debt Service Coverage Ratio	0.74	0.45	65.42%	The Company has repaid debts during the Current year leading to a reduction in Finance Cost leading to an increased debt service coverage ratio.
Return on Equity Ratio	0.03	0.28	-89.36%	There is a reduction in the turnover during the year due to change in business decisions leading to a reduction in the profit in the Current year.
Inventory turnover ratio	2.28	3.52	-35.27%	There is a reduction in the turnover during the year due to change in business decisions leading to a reduction in the Cost of Goods sold in the Current year. The same has lead to a decline in the Inventory turnover ratio.
Trade Receivables turnover ratio	4.31	5.07	-15.05%	NA
Trade payables turnover ratio	2.48	3.93	-36.89%	There is a reduction in the turnover during the year due to change in business decisions leading to a reduction in the purchases in the Current year. The same has lead to a decline in the Trade Payable turnover ratio.
Net capital turnover ratio	3.13	4.75	-34.21%	There is a reduction in the turnover during the year due to change in business decisions leading to a reduction in the profit in the Current year.
Net profit ratio	0.00	0.02	-77.16%	There is a reduction in the turnover during the year due to change in business decisions leading to a reduction in the profit in the Current year.
Return on Capital employed	0.26	0.27	-3.19%	NA

3C IT Plant to Improve Net Profits Margin

3C IT Solutions & Telecoms (India) Limited experienced a challenging fiscal year ending March 2024, with a notable decline in total revenue. The companys revenue decreased from ^62.93 crores in FY 2023 to ^30.22 crores in FY 2024, reflecting a significant drop of approximately 52%. This decline can be attributed to various factors, including market competition and economic fluctuations. Despite the decrease in revenue, the company managed to maintain a positive operating profit margin of 5.61%, although this was slightly lower than the previous years margin of 6.30%.

The net profit for FY 2024 also saw a sharp decline, dropping from ?1.14 crores in FY 2023 to ?0.12 crores¹. This substantial decrease in net profit, approximately 89%, was primarily due to increased tax expenses and higher borrowing costs. The companys net profit margin fell to 0.41%, down from 1.83% in the previous year. These financial challenges highlight the need for strategic adjustments to improve profitability and sustain growth in the competitive IT market.

Despite these setbacks, 3C IT Solutions remains committed to its long-term growth strategy. The company has continued to invest in advanced technologies and expand its service offerings to meet evolving client needs. By focusing on innovation and enhancing operational efficiency, 3C IT Solutions aims to overcome current financial challenges and achieve sustainable growth in the coming years¹. The companys proactive approach to addressing market demands and optimizing its financial performance positions it well for future success.

Risk Management Framework

3C IT SOLUTIONS &TELECOMS (INDIA) LIMITED employs a robust risk management framework to bolster its risk identification, assessment, mitigation and reporting methodologies. The organisations specialised risk management committee assumes the onus of discerning, appraising and formulating strategies to alleviate potential risks. The encompassing risk landscape of the Company comprises the subsequent components.

Risk Category	Description	Mitigation Strategies
Operational Risks	Risks related to day-to-day operations, including system failures and process inefficiencies.	- Implement robust monitoring and maintenance protocols. Regularly update and patch systems. Conduct periodic audits.
Financial Risks	Risks associated with financial performance, including revenue fluctuations and cost overruns.	- Diversify revenue streams. Implement strict budget controls. Regular financial reviews and audits.
Cybersecurity Risks	Risks related to data breaches, cyberattacks, and other security threats.	- Deploy advanced cybersecurity measures. Conduct regular security training for employees. Implement incident response plans.
Compliance Risks	Risks related to non-compliance with laws, regulations, and industry standards.	- Stay updated with regulatory changes Conduct regular compliance audits. Implement compliance management systems.
Market Risks	Risks arise from market competition, economic fluctuations, and changing customer demands.	- Conduct market research and trend analysis. Diversify product and service offerings. Develop strategic partnerships.
Technological Risks	Risks associated with rapid technological changes and obsolescence.	- Invest in R&D and continuous learning. Adopt flexible and scalable technologies. Maintain a technology roadmap.
Human Resource Risks	Risks related to talent acquisition, retention, and employee performance.	- Offer competitive compensation and benefits. Invest in employee training and development. Foster a positive work culture.
Supply Chain Risks	Risks related to disruptions in the supply chain, including vendor reliability.	- Develop strong relationships with multiple suppliers. Implement supply chain monitoring systems. Maintain inventory buffers.

Internal Controls and Their Adequacies of 3C IT Solutions

3C IT Solutions & Telecoms (India) Limited has established a robust internal control framework to ensure the integrity of its financial reporting, compliance with regulations, and operational efficiency. Heres an overview of the key components and their adequacies:

Component	Description	Adequacy
Control Environment	Establishes the importance of integrity and ethical values within the organization.	Adequate, with a strong tone at the top, clear ethical guidelines, and a commitment to integrity
Risk Assessment	Identifies and analyzes risks that could prevent the achievement of objectives.	Adequate, with regular risk assessments, documentation, and mitigation measures
Control Activities	Policies and procedures that help ensure management directives are carried out.	Adequate, with well-defined procedures, segregation of duties, and regular reviews
Information and Communication	Ensures relevant information is identified, captured, and communicated in a timely manner.	Adequate, with effective communication channels and timely dissemination of information
Monitoring	Ongoing evaluations to ensure controls are working as intended.	Adequate, with regular internal audits, continuous monitoring, and corrective actions

Human Resources - 3C IT Solutions Knowledge Capital

At 3C IT Solutions & Telecoms (India) Limited, human resources are considered the cornerstone of the companys knowledge capital. The organization places a strong emphasis on attracting, developing, and retaining top talent to drive innovation and maintain a competitive edge in the IT industry. The companys workforce is composed of highly skilled professionals who bring a wealth of experience and expertise in various domains, including cloud computing, cybersecurity, IoT integration, and digital transformation¹. This diverse pool of talent enables 3C IT Solutions to deliver cutting-edge solutions tailored to the unique needs of its clients.

To foster continuous learning and professional growth, 3C IT Solutions invests heavily in training and development programs. These initiatives are designed to keep employees abreast of the latest technological advancements and industry best practices¹. The company also promotes a culture of collaboration and knowledge sharing, encouraging employees to work together and leverage each others strengths. This collaborative environment not only enhances individual performance but also drives collective success, ensuring that the organization remains at the forefront of technological innovation.

Moreover, 3C IT Solutions recognizes the importance of employee well-being and job satisfaction in maintaining a motivated and productive workforce. The company offers competitive compensation packages, comprehensive benefits, and opportunities for career advancement¹. By prioritizing employee engagement and creating a supportive work environment, 3C IT Solutions ensures that its human resources remain a valuable asset, contributing significantly to the companys overall success and growth.

Cautionary Statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward looking statements within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic & overseas markets in which the Company operates, changes in Government regulations, tax laws & other statutes and other incidental factors.

For and on behalf of Board of Directors of 3C IT Solutions & Telecoms (India) Limited

(Formerly known as 3C IT Solutions & Telecoms (India) Private Limited)

Sd/-	Sd/-
Authorized Signatory	Authorized Signatory
Name: Ranjit Kulladhaja Mayengbam	Name: Gangarani Devi Mayengbam
Designation: Managing Director	Designation: Director & Chief Financial Officer
DIN:06929013	DIN: 07093162
Address: Flat no. 302, Tiara-A, Palace Orchard	Address: Flat no. 302, Tiara-A, Palace Orchard
Society, Undri, Pune, Maharashtra - 411060	Society, Undri, Pune, Maharashtra - 411060.
Date: 31st August, 2024
Place: Pune