Ace Software Exports Ltd Management Discussions.


The pandemic which hit the world during the first quarter of calendar 2020 caused significant disruption. The healthcare infrastructure had to be augmented significantly and governments, businesses or consumers were engaged in coping with this unknown virus. Towards later part of 2020, after the first wave subsided and the treatment protocol was available, there was improvement in economic activity at a broader level. The second wave of the virus hit India hard during the past two months and it is hoped that we are near its peak. With the vaccine production being stepped up, the situation will improve with an increase in distribution of doses to cover a large part of the population. Most central banks have been infusing liquidity in the system to ensure availability of credit and address supply chain constraints.

After the initial impact faced by businesses in the first few months due to lockdowns, the businesses globally were quick to adjust to the new normal of remote working and adopted digital channels at an accelerated pace. The worldwide IT spends is expected to grow which will be majorly seen in digitization of internal processes, supply chain, customer and partner interactions and service delivery.

a. Industry Structure &Development:

Ace provides Document Management, Digital Publishing and Data Conversion solutions using optimal process engineering and cost-effective and flexible conversion systems. We are a major full-service digital content provider and are able to deliver digital content with 99.995% accuracy and 100% application based integrity.

Ace has been active in catering to the outsourcing needs of publishers and other organizations for 25 years. Over the years, we have adopted a seamless partnership approach. Our clients tend to work with Ace as true partners; often with the feeling that this is a virtual extension of their own operations. It is our strong belief that this integration is the cornerstone of the success of any business relationship.

The Companys business relates to database creation (E-Publishing) pertaining to Information technology enabled services. This includes creating large volume full text, image based databases.

b. Opportunity, Threats and Outlook Risk & Concerns

As the businesses started adjusting to the disruption caused by the pandemic, the technology sector responded quickly and decisively to support their customers across the globe. They successfully pivoted into working from home mode, reconfigured supply chain and accelerated digital transformation enabling their customers to continue their operations despite several constraints. With a sharp increase in technology adoption, tech companies will play a leading role in the new ecosystem not just as enablers but also in designing solutions and creating new business models. The consumers have also embraced ordering goods and services online, whether it is less frequently bought goods like car tyres or more frequently purchased items like tea and coffee. This created a significant need for aligning the business processes with the help of technology.

Ace is well positioned to take advantage of the opportunities to support its new and existing customers. The company will continue to focus on enhancing its capabilities and invest in new innovative growth platform going forward. The Company has always maintained healthy and long - standing relationship with its clients in partnering them as their IT solution provider and adding value to their businesses. These have resulted in minimal impact to the overall business of the company.

c. Segment/Product wise performance:

The companys operation falls under single segment namely "Computer Software and Services Exports", therefore segment wise performance is not furnished.

d. Internal control systems and their adequacy:

The company has an effective internal control system in place and this is periodically reviewed for its effectiveness. There are well defined Power and Authority limits to ensure that assets of the Corporate Policies. The company has a cross -functional internal Audit team with pre-determined roles, responsibility and authorities. The team ensures an appropriate information flow and effective monitoring.

e. Discussion on financial performance with respect to operation performance:

The Financial Performance of the company, during the year under review, has been given separately in the Directors Report.

f. Material developments in Human Resources / Industrial Relations front, including number of people employed.

The human resource (HR) function of the Company is focused around providing its 41 employees a meaningful and compelling environment. This positive and inspiring environment fosters innovation, stimulates performance culture and motivates employees to develop themselves personally and professionally.

g. Ratio Analysis

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018) (Amendment) Regulations 2018, the company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios.

The company has identified the following ratios as key financial ratios;



Unit F.Y. 2020-21 F.Y. 2019-20 F.Y. 2020-21 F.Y. 2019-20
Ratios - Financial Performance
Operating Profit Margin % 7.76 4.04 8.36 0.20
Net Profit Margin % (8.28) (27.93) (10.83) (29.80)
Ratios - Balance Sheet
Debt-Equity Ratio Times 0.01 0.03 0.09 0.14
Current Ratio Times 6.06 4.69 4.24 3.79
Return on net worth % (3.93) (11.76) (4.69) (13.34)
Ratios - Per Share
EPS Rs. (1.38) (4.38) (2.05) (5.82)
Price Earnings Ratio, end of year Times (9.06) (3.88) (610) (2.92)


For & on behalf of Board of Directors
Vikram B. Sanghani Sanjay H. Dhamsania
Jt. Managing Director Jt. Managing Director
Date: 14.08.2021 DIN:00183818 DIN: 00013892
Place: Rajkot