AAA Technologies Ltd Management Discussions

1. Overview

The company was incorporated in October 2000 as "AAA Technologies Private Limited" under the Companies Act, 1956 in the state of Maharashtra vide Certificate of Incorporation issued by the Registrar of Companies, Maharashtra, Mumbai. Our Company obtained a further Certificate of Incorporation on 3rd August, 2020 issued by Registrar of Companies, Maharashtra, and Mumbai consequent to conversion of the Company to a Public Limited Company.

We are an Information Technology and Information Security Auditing & Consulting Company offering a platform that enables organizations to identify the issues of corporate governance of the information system in computerized environment and execute security controls to safeguard information and information system. Our Company offers services like Information System Audit, Cyber Security, IT Assurance & Compliance, Information Security and IT Governance to BFSI, Government, Regulatory Agencies and Public and Private Sector Organizations. Our Company is promoted by experienced professionals i.e., Mr. Anjay Agarwal who has over 31 years of experience and Mr. Venugopal Dhoot who has more than 38 years of experience.

To Procure business from BFSI, Government, Regulatory Agencies and Public Sector Companies, we bid for tenders available for CERT-In empanelled IT Security Organizations; and NICSI a company under Ministry of Electronics and Information Technology, GOI for providing and procuring IT solutions for multiple E-governance projects undertaken by NIC, MeitY, Governments, Government Organization and PSU.

Our Company is also empanelled with several government bodies, PSUs and banks to directly procure business from them. Our

Company has kept its focus on Information Security Auditing & Consulting keeping in view the vast scope of work in the existing and the untapped areas. As a result, our Company has been able to build its resources capable of auditing operating systems, networking, IDS, web application, ERP, ATM, core banking, forensic, websites, computer crime investigations etc.

Over the years our Company has successfully completed audits of Companies/ Institutions across various industries like banking, insurance, Financial Institutions, NBFCs, Regulatory Bodies, Government,

Municipalities and Panchayats, Payment Gateways, Stock Brokers, Education, Travel and Transport, Hospitality, Manufacturing and Engineering, Infrastructure, Healthcare, Information Technology, IT Enabled Services (ITeS), Ports, Power, Trading Corporations, Entertainment, Tendering, Defense and refineries which has enabled the Company become sector-agnostic and consequently it has no dependency on any single industry for procuring business. Our Company is an ISO 9001:2015 and ISO 27001:2022 accredited Company. Our operations are supported by a competent team who are responsible for timely deliveries, pointing out threats to the clients (if any) and giving pertinent solutions to mitigate the potential risks from security threats.

2. Industry, Structure and Development of Economy

A. Global Economy

Economic activity was surprisingly resilient through the global disinflation of 2022-23. As global inflation descended from its mid-2022 peak, economic activity grew steadily, defying warnings of stagflation and global recession. Growth in employment and incomes held steady, reflecting supportive demand developments— including greater-than- expected government spending and household consumption—and a supply-side expansion amid, notably, an unanticipated boost to labour force participation. The unexpected economic resilience, despite significant central bank interest rate hikes aimed at restoring price stability, also reflects the ability of households in major advanced economies to draw on substantial savings accumulated during the pandemic. In addition, changes in mortgage and housing markets over the pre - pandemic decade of low interest rates moderated the near-term impact of policy rate hikes. As inflation converges toward target levels and central banks pivot toward policy easing in many economies, a tightening of fiscal policies aimed at curbing high government debt, with higher taxes and lower government spending, is expected to weigh on growth.

Source: IMF World Economic Outlook, April 2024

B. Indian Economy

GDP growth is projected at 7.8% in FY 2023-24 and around 6% per cent in each of the following two fiscal years. Domestic demand will be driven by gross capital formation, particularly in the public sector, with private consumption growth remaining sluggish. Exports will continue to grow, especially of services such as information technology and consulting where India will continue to increase its global market share, supported by foreign investment. Headline inflation will decline gradually, although uncertainty about food inflation remains elevated.

Monetary policy easing is projected to start in the second half of the year once lower inflation is maintained. The 2024 Interim Union Budget aims for consolidation, setting a fiscal deficit target at 5.1% of GDP for FY 2024-25. Fiscal support should remain targeted towards vulnerable households. Rising debt limits fiscal space and increases the need to tackle

structural problems in order to make growth fairer and more sustainable. Returns from reforms could be significant in agriculture, which accounts for the largest share of employment and, due to low productivity and still widespread poverty, absorbs considerable public subsidies.

Source: OCED

C. Cyber Security Industry Overview

The global spending on Information Security and Risk Management is expected to reach USD 188 billion in 2023 from USD 169 billion in 2022, growing at 11.3%. Increase in digitalization, shift towards hybrid and remote work, the growing adoption of cloud services, and IT & OT convergence have increased external attack surfaces for organizations, making them vulnerable to disruption, breaches, and data loss, thereby driving investment in cyber security worldwide. Spending on digital transformation technologies is expected to reach USD 2.16 billion in 2023. Security risks from zero-day vulnerabilities, increasing data and privacy regulations worldwide, and the emergence and adoption of Gen AI have further bolstered cyber security spending.

India cyber security market grew at a CAGR of over ~30% during 2019-2023 to reach USD 6.06 billion in 2023. Digital transformation initiatives and ensuring regulatory compliance drove cyber security spending, identified by ~84% and ~81% of respondents

India cyber security market accounted by ~3% of the overall global cyber security market. It is expected to account for 5% of the global market by 2028. There is a significant untapped accessible market available for cyber security providers in the country. The technology landscape is rapidly evolving in the country with ~27,000 tech start-ups as of March 2023. Furthermore, organizations in the country are allocating increased budgets to security, as it is closely linked with brand reputation and is considered as a crucial aspect in table top

exercises. The Government of India is actively fostering the growth of the cyber security industry, exemplified by its robust support in the FY 2023-24 Union Budget. Allocating INR 400 crores for cyber security projects and INR 225 crores for CERT-In, demonstrates a commitment to fortify the nations digital defences. Government initiatives, including Digital India Programme and Cyber security R&D units, National Centre of Excellence (NCoE), a MeitY and DSCI joint initiative, are also driving the cyber security industry in India.

Source: DSIC 2023 report on Cyber Security

Exploring and penetrating largely untapped markets presents a significant advantage for our industry, offering a wealth of opportunities to acquire new clients. By focusing on these underserved areas, we can effectively bypass the intense competition that often characterizes more saturated markets. This strategic approach not only minimizes competitive pressure but also allows us to establish a strong foothold and build valuable relationships with clients who have been overlooked by others. In essence, tapping into these emerging markets enables us to expand our reach and grow our business in a more dynamic and sustainable manner.

Sector-wise growth in the Cyber Security market.

Stringent regulatory requirements, ensuring data privacy and protection, and rise in digital discoveries drive demand for data and privacy offerings, GRC, cloud security, and IAM in the BFSI sector. Securing customer and employee data, facilitating secure hybrid working, and deploying emerging technologies are leading to investments in tighter operations and technical controls, such as encryption, DLP, etc., in the IT and ITeS sector.

Large conglomerates are driving Cyber Security spending through digital transformation imbibed with Cyber Security. Government with 5G, smart city projects, Digital India, Digital inclusion, API Setu, India Stack Global, and Global Digital Public Infrastructure Repository, is emerging as high potential market. Healthcare is witnessing robust growth as Cyber Security has emerged as a boardroom agenda amid rising technology adoption, cloud migration and rising cyber-attacks.

BFSI spending on Cyber Security grew at a CAGR of 35% from USD 518 million in 2019 to USD 1,738 million in 2023 due to stringent and granular policy requirements. IT/ITeS grew at a CAGR of 36% during 2019-2023, driven by the need for secure adoption of advanced technologies like AI/ML, edge computing, and GenAI.

D. Cyber Wars

One of the most significant global threats today is the potential outbreak of a world war due to escalating geopolitical tensions. Should such a conflict arise, one of the foremost dangers would be the emergence of cyber warfare. In this digital age, cyber-attacks have the capability to disrupt critical infrastructure, undermine national security, and show chaos on a global scale.

To safeguard against these threats, continuous vigilance and proactive measures are imperative. Regular IT audits, stringent cyber security protocols, and adherence to updated compliance standards play pivotal roles in fortifying defences against cyber-attacks. IT audits serve as essential checkpoints to assess vulnerabilities and ensure robust security measures are in place. They help organizations identify weaknesses in their IT infrastructure and pre-emptively address potential threats before they escalate into larger issues.

Moreover, adherence to cyber security compliances ensures that organizations meet regulatory requirements and adhere to industry best practices. This involves implementing and maintaining robust security frameworks, conducting regular risk assessments, and deploying advanced threat detection technologies. By staying updated with the latest cyber security protocols, organizations can mitigate risks, protect sensitive data, and uphold the trust of stakeholders.

In conclusion, in an era where cyber warfare poses a grave threat amidst geopolitical uncertainties, proactive measures such as IT audits and adherence to cyber security compliances are not just recommended but essential. They form the cornerstone of defence strategies aimed at safeguarding nations, businesses, and individuals from the disruptive and potentially devastating impacts of cyber-attacks in a world on the brink of conflict.

3. Medium Term Strategic Objectives

1) Employee Training and Development:

Invest in ongoing training and development programs for your cybersecurity team. Encourage certifications and skill development to ensure expertise in the latest cyber-security trends and technologies.

2) Compliance and Regulatory Expertise:

Stay updated with industry regulations and assist clients in achieving compliance through audits, assessments, and remediation plans.

3) Cyber security Awareness Programs:

Educate clients through workshops, seminars, and online resources about cyber security best practices. Empowered clients are more likely to invest in comprehensive cyber security solutions.

4. Alliances & Partnership

The Company serves or has served various Companies/ Institutions across various industries like banking, insurance, Financial Institutions, NBFCs, Regulatory Bodies, Government, Municipalities Corporations, Payment Gateways, Stock Brokers, Education, Travel and Transport, Hospitality, Manufacturing and Engineering,

Infrastructure, Healthcare, Information Technology, IT Enabled Services (ITeS), Ports, Power, Trading Corporations, Entertainment, E-Tendering, Defence and refineries and many more. The company currently on boarded PSU banks such as SBI, Bank of Baroda, Central Bank of India, Bank of India etc.

6. Government Regulations and Initiatives

The Indian government is intensifying its focus on IT audit compliance and bolstering cyber security measures in response to a rising tide of cyber threats. With the government itself facing significant cyber risks and actively promoting enhanced cyber security, there is a substantial growth opportunity in this sector. As a niche company specializing in this field, we are uniquely positioned to capitalize on these expanding opportunities and contribute to strengthening Indias cyber defence infrastructure.

As mentioned above the Government of India in the FY 2023-24 Union Budget Allocated INR 400 crores for cyber security projects and INR 225 crores for CERT-In, demonstrating a commitment to fortify the nations digital defences. Government has also came up with a lot of Projects and initiatives to help and promote the Cyber security industry in India. Some of the Projects and Initiatives are listed below:

1) Indian Cybercrime Coordination Centre (I4C)

2) Cyber Swachhta Kendra

3) Notification for Preferential Market Access for Cyber Security Products

4) National Facility for Security Testing, Evaluation and Certification of IoT Devices and Embedded Systems leading to Security Assurance

5) National Cyber Security Exercise (NCX)

6) Cyber Surakshit Bharat etc.

DPDP Act 2023

With the increase in projects and initiatives, the government on 11^th August 2023 Launched the Digital Personal Data Protection (DPDP) Act. The details of the DPDP Act 2023 are state below

DPDP Act 2023 will drive data security and privacy spending in the next few years. Regulatory fines for non-compliance will encourage organizations to ensure compliance with the bill.

• It applies to the processing of digital personal data, collected online and offline, and later digitalized.

• Foreign entities processing personal data to offer goods and services to data principals within India.

Organizations with global businesses, especially in countries with existing data privacy regulations such as the GDPR, California Consumer Privacy Act (CCPA), California Privacy Rights Act (CPRA), Singapores Personal Data Protection Act, Australias Privacy Act 1988, and HIPAA, and highly regulated sectors in India such as banking and insurance, will find it easier to comply with the act compared to others.

• According to the United Nations Conference on Trade and Development, 71% of the countries have adopted data protection and privacy regulations.

• Organizations and start-ups catering to Indian organizations must make significant investments to ensure regulatory compliance.

Data protection and privacy offerings, including Data Classification, Privacy Impact Assessment, Privacy by Design, and Data Access Governance, will witness an uptick in adoption in the next five years

Penalties for Non-Compliance with the DPDP Act, 2023:

• Up to Rupees 250 Crores - Failure to implement security safeguards for preventing data breach

• Up to Rupees 200 Crores - Failure to notify the board and affected principals of data breach

• Up to Rupees 200 Crores - Non-compliance with obligations regarding childrens data

• Up to Rupees 150 Crores - Breach of additional obligations by significant data fiduciary

• Up to Rupees 50 Crores - Any other noncompliance penalty

Increase in the Regulatory Compliance

IRDAI Information and Cyber Security Guidelines, 2023, include directions for implementing Cyber Security controls, such as cloud and parameter security.

In November 2023, RBI issued the Master Direction on Information Technology Governance, Risk, Controls, and Assurance Practices. This directive will compel regulated entities to invest in Cyber Security solutions to adhere to the guidelines.

81.3% of end-user organizations highlighted that ensuring regulatory compliance is a primary factor motivating their Cyber Security expenditures in India.

With the surge in government initiatives and projects, coupled with higher allocations in the Union Budget, the application of the DPDP Act 2023, and the growing emphasis on regulatory compliance, the market is continually expanding. These factors collectively create a favourable environment for us, offering significant opportunities for growth and development. The expansion of the market is a positive outcome for us, enabling us to capitalize on emerging opportunities and enhance our position within the industry.

7. Financial Performance

(Rs^ in Lakhs, except for percentage)

Particulars	FY24	FY23
Revenue from operations	2,379.46	2,300.04
Other Income	88.99	50.96
Total Revenue	2,468.45	2,351.00
EBITDA	515.69	404.74
EBIT	429.54	387.37
Profit before Taxation
• Current Tax	113.85	91.89
• Earlier years Tax	0.23	0.04
• Deferred Tax	(5.74)	4.60
Net Profit/ (Loss) for the Year	321.20	286.84

 

Profitability Ratios	FY24	FY23	FY22
EBITDA Margin	20.89%	17.22%	22.55%
EBIT Margin	17.40%	16.31%	21.86%
Net Profit Margin	13.01%	12.20%	16.04%
Growth Ratios
Total Revenue	5.00%	61.28%	30.94%
EBITDA	27.41%	23.11%	96.04%
EBIT	12.04%	20.31%	106.61%
Net Profit	11.98%	22.67%	105.83%
Net worth	10.13%	10.64%	11.16%
Liquidity Ratios (Times)
Current Ratio	19.50	11.33	9.05
Return Ratios
Return on Equity	25.04%	26.84%	27.34%
Return on Capital Employed	15.38%	15.09%	13.90%
Return on Assets	10.93%	10.76%	9.62%
Efficiency Ratios (Times)
Asset Turnover	0.83	0.86	0.59
Receivable Turnover	3.76	2.9	1.5

Refer to standalone Financial Statement in this Integrated Annual Report for detailed schedules and notes

a) Revenue from Operations: Total revenue increased by a modest 3.45%. The CAGR for the past three years stands at an impressive 29.25%, highlighting our strong performance and the successful execution of our strategic initiatives. This more measured growth in revenue from operations reflects our strategic shift to focus exclusively on high-profit projects. As a result of this targeted approach, our revenue growth for the current year has been constrained to 3.45%.

b) Other Income: Other income for the financial year 2023-24 increased by 74.63% at Rs. 88.99 lakhs as compared to Rs. 50.96 lakhs in the previous year. Other income has witnessed major growth due to interest income earned on Fixed Deposits which are profits earned by the Company ploughed back as investments.

c) EBITDA: The EBITDA increased by 27.41% at Rs. 515.69 lakhs for the financial year 2023-24 as compared to Rs. 404.74 lakhs for the financial year 2022-23. This was mainly due to decrease in the other expenses. The EBITDA Margin was 20.89% for the financial year 2023-24 compared with 17.22% for the financial year 2022-23 due to shift in our strategic approach towards focusing on profitable projects.

d) Other expenses:

Other expense decreased by 9.73% from previous year majorly due to decrease in Professional and Technical fees to ^804.49 Lakhs in FY24 from ^930.24 in FY23 with increasing revenue showing an increase in efficiency.

e) Debt and Finance cost: The finance cost for the financial year 2023-24 was nil just as the previous financial year which reflects our company is debt free.

f) Profit after Tax: Profit after Tax (PAT) at Rs. 321.20 lakhs for the financial year 2023-24 increased by 11.98% as compared to Rs. 286.84 lakhs in the previous year mainly due decrease in expenses as compared to the previous year.

g) Growth Ratios: The EBITDA has grown by 27.41% mainly due to decrease in the other expenses. The EBIT or operating profit has grown by 12.04% and overall net profit has grown by 11.98% mainly due to the reasons mentioned aforesaid.

h) Liquidity Ratios: The Current ratio has increased for past 3 years which signifies that the company is fully equipped to meet it short term obligations efficiently. The Company has been more efficient in managing the current assets and paying liabilities within time that has resulted in improvement in the ratio. The Current ratio has increased from 11.33 times in FY 2022 to 19.50 times in FY 2024.

i) Return Ratios: Return Ratios indicate that the Company has been performing well on the operational front. The ROCE has increased from 15.09% in FY 2023 to 15.38% in FY 2024 due to increase in profit from operations. The ROA has also seen growth due to robust boost in the top line from 10.76% in FY 2023 to 10.93% in FY 2024 while assets stood at Rs. 2,767.47 lakhs in FY 2023 and Rs. 2,938.85 lakhs in FY 2024.

j) Leverage Ratios: The Company is debt free.

times in FY 2023 to 3.76 times in FY 2024.

l) Liquidity: Cash & cash equivalents stood at Rs. 248.44 Lakhs in the financial year 2023-24 as compared to Rs. 187.92 Lakhs in the previous year, bank balance (fixed deposits) also increased from 1,095.87 Lakhs in FY 2023 to ^1,802.45 Lakhs in FY 2024.

Particulars	For the year ended 31-03-2024	For the year ended 31-03-2023
Net Cash Generated from Operating Activities(A)	771.72	489.45
Net Cash used in Investing Activities(B)	(647.07)	(827.89)
Net Cash Generated from Financing Activities(C)	(64.13)	(42.76)
Net increase/decrease in cash (D=A+B+C)	60.52	(381.2)
Cash and Cash Equivalents at the beginning (E)	187.92	569.12
Cash and Cash Equivalents at the end (F=D+E)	248.44	187.92

Refer to standalone Financial Statement in this Integrated Annual Report for detailed schedules and notes

(^ in Lakhs)

k) Efficiency Ratios: The asset turnover remained same as compared to last year indicating a consistent performance in generating revenue from its assets. There is an increase in the receivables turnover from 2.90

Changes in Operating Cash Flow

In Fiscal 2024, net cash from operating activities was ^ 771.72 lakh. Profit before tax (after exceptional items) was ^ 429.54 lakh and adjustments to reconcile profit before tax to operating profit before working capital changes primarily consisted of depreciation and amortization of ^ 86.15 lakh. This was partially offset by interest income of ^ 85.67

Changes in Investing Cash Flow

Net cash used from investing activities was ^ (647.07) lakh in the year ended March 31, 2024, primarily on account of purchase of property, plant and equipment (including intangible assets and capital advances) aggregating to ^ 26.16 lakh, increase in net investment of fixed deposit in bank of ^ 706.58

lakh. The main working capital adjustments in year ended March 31, 2024 included decrease in trade receivables of ^ 75.11 lakh, decrease in loans given of ^ 406.19 lakhs, decrease in other current assets of ^ 1.50 lakhs, Decrease in provisions of ^ 83.15 lakh. This was offset by income tax paid (net) aggregating to ^ 57.91 lakh. The above growth in operating cash flow is attributed to growth in revenue and also reduction in Loans and Other Financial Assets.

lakhs, offset by proceeds from interest received aggregating to ^ 85.67 lakh.

Changes in Financing Cash

Flow Net cash from financing activities was ^ (64.13) lakh in the year ended March 31, 2024, on account of dividend paid to the tune of ^ 64.13 lakh. There are no finance costs incurred by the Company since it is debt free.

8. Risk and Mitigation Strategy

Risk		Mitigation
Market-specific risk: The IT spends in any market are affected by the domestic as well as global economic conditions. Considerable or a prolonged slowdown in a particular country or region or industry within a region severely affects the IT spends.		Our company provides IT Audit services mainly to Government organizations, Statutory Bodies, PSUs, Municipalities etc., we try to maintain the pre-determined standards as per these organizations requirements, which lead to receiving empanelment of various State level organizations and banks, which have the capacity to generate recurring work in the future as well.
Cyber Security risks: Could lead to data leakage, malware or ransom ware attacks, hacking etc. This risk also comes into focus in the context of large number of employees working from home.		We attempt to limit our contractual liability for consequential damages in rendering our services. We try to implement a Zero Trust Security model, which is a security method that operates around the belief that access should be administered based on each user or devices specific job function. This helps to limit the number of opportunities for insiders to negligently or maliciously take advantage of their access controls.
Procurement of specialized talent and retention risks: Our ability to meet continued success and future business challenges depends on our ability to attract, recruit and retain experienced, talented and skilled professionals.		We ensure that the employees are provided with comfortable and secure work environments. Employees are encouraged to have a proper work life Balance.
Technology/Obsolescence Risk: Rapid technological advances, changing delivery models and evolving standards in computer software development and communications infrastructure, changing and increasingly sophisticated customer needs and frequent new product introductions and enhancements characterize the industry. Disruptive technologies such as Cloud, Big data, social and smart devices are changing the way business is done.		Our existing testing tools or software are enabled with latest technology and we strive to keep our tools and software in line with the latest technological standards. But in future we may require to implement new technology or upgrade the software and other equipment employed by us.
Risk	Mitigation
Compliance Risk: The risk that we may not be able to obtain, renew or maintain our statutory and regulatory empanelment, registrations and approvals required to operate our business	The company has taken up steps to ensure that all such regulatory requirements are renewed timely as they can directly affect the operations of the company and the failure to comply with these requirements will further make it difficult to get tenders.
Performance Risk: May not be able to secure new contracts if we are unable to issue the requisite performance guarantees.	We arrange for banks to issue performance guarantees to our clients from our available banking facilities. If we do not have available banking facilities to issue the performance guarantees, we approach other banks or financial institutions to issue the performance guarantee which also helps us in securing new contracts.
Exposure Risk: Failure to generate enough revenues due to high dependence on a single client for large part of the revenue.	Our revenues are largely well-diversified across all industry sectors; we do have medium-term contractual arrangements with our clients along with many clients being year on-year repeat customers. We are constantly striving to increase our client base and reduce dependence on any particular client.
Internal Control Risk: Fail to maintain an effective system of internal controls, which may result in failure to successfully manage risks, or accurately report and avoid fraud.	Effective internal controls help us in delivering reliable audit reports and effectively avoid fraud. Moreover, any internal controls that we implement, or our level of compliance with such controls, deteriorates over time, due to evolving cybercrime and IT related frauds. We have put adequate measures to rectify or mitigate any deficiencies in our internal controls

9. Internal Financial Control Systems and their Adequacy

The Company considers that internal control is one of the key supports of governance which provide freedom to the management within an outline of appropriate checks and balances. Our Company has a strong internal control framework, which was instituted considering the size, nature and risk in the business. The Companys internal control environment provide assurance on efficient conduct of operations, security of Assets, prevention and detection of frauds/errors, accuracy and completeness of accounting records, timely preparation of authentic financial information and compliance with applicable laws and regulation. The Internal Auditor is responsible to conduct regular internal Audit and report to the management the lapses, if any and submit Report on periodic basis to the Board of Directors for their review and comments. Fully professional and experienced boards as mentioned in the corporate overview section in itself ensures efficient internal control. To ensure efficient internal control system, the Company has a well constituted Audit committee who at its periodical meeting, review the competence of internal control system and Procedures thereby suggesting improvement in the system and process as per the changes of Business dynamics. The system and process are continuously improved by adopting best in class processes, automation and implementing latest IT tools.

10. Developments in Human Resources

At AAA Technologies Limited, we believe that our greatest asset is our people. Our Human Resource Management (HRM) practices are designed not only to attract and retain top talent but also to nurture a culture of growth and innovation. Throughout 2023-2024, we have focused on several key areas to enhance our HRM strategy:

1. Talent Acquisition and Development:

We have continued to recruit individuals who not only possess the right skills but also align with our core values and vision. Through targeted recruitment efforts and a rigorous selection process, we have strengthened our team with diverse talents that drive our business forward.

2. Employee Engagement and Well-being: Our commitment to the well-being of our employees remains paramount. We have implemented initiatives to foster a supportive work environment, including wellness programs, flexible work arrangements, and professional development opportunities. These efforts are aimed at ensuring that our team members are not only productive but also happy and fulfilled in their roles.

3. Performance Management: We have revamped our performance management system to provide clearer expectations, regular feedback, and opportunities for growth. This approach not only enhances individual performance but also aligns our teams efforts with organizational goals, driving overall success.

4. Diversity, Equity, and Inclusion: AAA Technologies Limited is dedicated to fostering a diverse and inclusive workplace where all individuals feel valued and respected. We have taken concrete steps to promote diversity at all levels of the organization and to create an environment where everyone has equal opportunities to succeed.

5. Leadership Development: We recognize the importance of strong leadership in driving organizational success. We have invested in leadership development programs to empower our managers with the skills and tools needed to inspire teams, navigate challenges, and lead with integrity.

Looking ahead, we remain committed to continuous improvement in our HRM practices. By investing in our people and creating a workplace that promotes collaboration, innovation, and growth, we are confident in our ability to achieve our strategic objectives and deliver value to our stakeholders.

11. Significant Changes

There were no significant changes within our company this financial year.

12. Cautionary Statement

Statements in this management discussion and analysis may constitute "forward-looking statements" within applicable laws and regulations. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Factors include shifts in economic and political conditions, technological developments, regulatory changes, and other risks detailed in our filings with regulatory authorities. The Company disclaims any obligation to update these statements.