atcom technologies ltd Management discussions

Industry Overview

Atcom Technologies Limited was set up on November 9, 1989 and started its business as an electronic weighing scale manufacturer. In 1990, the electronic weighing scale market was non-existent in India. Atcom Technologies Limited was a pioneer in electronic weighing scales, having introduced it for the first time in India. Our offering which started with just 2 types of weighing scales - retail and industrial went on to include around 100 plus variants in weighing scales which catered to every sector of society. We were a name synonymous with weighing scales in the industry. We launched our IPO in 1995 and were one of the first few companies in the then nascent financial market in the country. We also got recognition from the Department of Scientific Research based out of Lucknow for our efforts in back ward integration of building parts of the weighing scales to manufacture the entire scale in India.

This backward integration helped us develop the required Mechanical engineering knowledge which formed the base of several of our future businesses, be it the manufacture of material handling equipment or packaging equipment and other filling machines.

Opportunities

Over the years, we have invested in building differentiated capabilities such as Specific industry domain and technology expertise, and in methodologies such as Design Thinking and Agile software development

Our industry currently sells glass bottling machines and tetra pack machines at a premium of over 2 times the amount that is paid for plastic bottling machines. This makes these machines unattractive for new market entrants and supports the import market for this. We see a clear trend towards these premiums becoming standardized and the market becoming more welcoming to setting up turnkey engineering solutions for new range of beverages and new type pf packaging materials and filling in an aseptic environment.

Outlook

Going forward, technology will also be one of the key differentiators for driving revenue and profitability. These discussions led to the development of our long-term strategy along with an action plan that would help us exploit the available opportunities and measure progress against key milestones and take corrective action when required.

Risks Management

Company has designed a Risk Management Policy and Guidelines to avoid events, situations or circumstances which may lead to negative consequences on the Companys businesses and define a structured approach to manage uncertainty and to make use of these in their decision-making pertaining to all business divisions and corporate functions. Key business risks and their mitigation are considered in the annual / strategic business plans and in periodic management reviews.

Internal control systems and their adequacy

The Company has a proper and adequate system of internal financial controls, commensurate with its size and business operation. It ensures timely and accurate financial reporting in accordance with applicable accounting standards, safeguarding of assets against unauthorized use or disposition and compliance with all applicable regulatory laws and Company policies.

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Internal Auditors of the Company review the internal financial control systems on a regular basis for its effectiveness, and necessary changes and suggestions are duly incorporated into the system. Internal audit reports are also reviewed by the Audit Committee of the Board.

Financial Performance

Consolidated

During the year under review, the Company recorded consolidated total revenue of Rs. 2024 thousand as compared to Rs. 2357 thousand for the previous year and Loss before Tax stood at Rs. 1751 thousand for the year under review as compared to Rs. 1124 thousand for the previous year.

Standalone

During the year under review, the Company recorded total revenue of Rs. 20,24 thousand as compared to Rs. 23,57 thousand for the previous year and loss before Tax stood at Rs. 17,51 thousand for the year under review as compared to Rs. 11,15 thousand for the previous year.

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

The Company has cordial relation with the employees and consultants of the company. The staff has the depth of experience and skills to handle company9s activities. Skilled team of professionals ensure superior quality standards during every stage of work. The total employee strength as on March 31,2023 was three.

Cautionary Statement

The above Management Discussion and Analysis contains certain forward-looking statements within the meaning of applicable security laws and regulations. These pertain to the Company9s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward-looking statements made from time to time on behalf of the Company.