Atishay Ltd Management Discussions

Economic overview

Global economy1

Despite facing several geopolitical crises over the last four years, the world economy has shown impressive resilience. The International Monetary Fund (IMF) predicted a growth of 3.2% and 3.2% in the global economy in CY2024 and CY2025, respectively. This resiliency is mostly attributed to the budgetary support provided by China and the US economys better-than-expected performance. It is expected that Developing Economies and Emerging Markets (EMDEs) would continue on a stable growth trajectory in CY2024 and CY2025. Advanced economies are expected to do well in CY2025 as Europe gets ready for a comeback. It is anticipated that growth in the United Kingdom will go up slightly, from an estimated 0.1% in CY2023 to 0.5% in CY2024.Inflation is decreasing faster than expected in most regions and is projected to be 4.5% and 5.9% in CY2025 and CY2024 respectively. High debt levels and soaring interest rates to fight inflation may affect growth in CY2024.

Outlook

An economic recovery and increased domestic demand are driving growth in the European and Asian economies. However, in many economies, sticky inflation is expected to prevent the relaxation of monetary policies in the near future. This will help reduce private spending. The most common causes of a decline in inflation include, weakening labour markets, lower core inflation due to restrictive monetary policy and domino effect of earlier drops in energy prices.

Indian economy2

The Indian economy has successfully maintained resilience in the face of global headwinds. Domestic consumption and governments emphasis on capital investment are expected to become the main driving factors towards the 8.2% GDP growth rate in FY2024. A sturdy financial and increased public sector investment have cushioned the domestic economy. The rising demand in credit and decline in inflation is supporting economys inherent optimism.

In the first half of FY2024, the manufacturing and services sectors made significant contributions to the supply-side growth. However, the manufacturing sector experienced a faster rate of growth than the services sector. Furthermore, the strong dedication and monetary policy taken up by the Reserve

Bank of Indias (RBI), were encouraging for economic growth.

Outlook

The Indian economy is steadily going forward on a revolutionary path. Both global and domestic investors are witnessing a positive potential in Indias economy. The economic growth is maintaining its stability and inflation is dropping towards the target, making the existing monetary policy a success.

Global

In the upcoming years, the tech market is expected to witness growth due to enterprise expenditure on software and IT services, particularly in artificial intelligence, cloud computing, and cybersecurity technology. Generative AI will bring about transformation in the following years. This change will come about due to experimentations conducted to identify applications that can increase efficiency and productivity. Concurrently, providers will be strategising on the optimal delivery and monetisation of generative AI capabilities. European Union and the United States are going to take up regulatory measures which will compel tech companies to prioritise data protection, mitigate harm, uphold ethical standards in AI usage, and commit to sustainability objectives. Global IT investments will experience substantial growth. This will mainly be powered by double-digit increases in software and IT services spending by the year 2024. Spending on IT services is forecasted to rise by 8.7% in 2024, reaching $1.5 trillion3, driven mainly by enterprise investments in projects aimed at enhancing organisational efficiency and optimisation.

Tech companies are turning to generative AI to gain immediate efficiency and act as a catalyst for innovation and growth

Indian

Despite encountering obstacles in the past, the Indian IT sector continues to advance on a growth path, emphasising AI, deep tech, skill development initiatives, and modernisation endeavours. These targeted domains are anticipated to propel growth and strengthen Indias position as a prominent global technology hub. Forecasts indicate that the IT industry is expected to reach $253.9 billion by FY24, demonstrating a year-on-year growth rate of 3.8%.4 Moreover, India stands out as one of the fastest-growing Fintech markets worldwide, with the Fintech Market Opportunity projected to reach $2.1 trillion by 2030.5

Initiatives

The Budget allotted to Indias IT sector has undergone upliftment in 2024. The Budget allocation for Indias IT sector in 2024 has undergone a notable boost. The Ministry of Electronics and Information Technology (MEITY) has been assigned H 6200 crore for the Production Linked Incentive Scheme (PLI). This marked a substantial increase compared to the previous years allocation of H 4560 crore6 . The Government of India has implemented various initiatives aimed at improving the growth of the Information Technology and Information Technology Enabled Services (IT/ITES) sector within the nation.

Long-term financing for startups and MSMEs

A substantial amount of H 1 lakh crore is assigned for long-term financing or refinancing options. This extends up to 50 years with minimal or zero interest rates.7 This initiative aims to encourage R&D activities within the private sector.

Software Technology Parks of India (STP) Scheme

An export-oriented scheme is administered by the Software Technology Parks of India (STPI) which is an autonomous society under the Ministry of Electronics and Information Technology. It facilitates the development and export of computer software including professional services exports.

Foreign Direct Investment (FDI)

Foreign Direct Investment (FDI) is permitted in various sectors upto 100% under the automatic route. The various sectors include data processing, software development and computer consultancy services, software supply services, business and management consultancy services, market research services and technical testing and analysis services.8

What is E-Governance?

E-Governance, also known as electronic governance refers to the utilisation of information and communication technologies (ICTs) by governments to enhance the quality of services provided to citizens and businesses. This digital approach aims to improve the efficiency, transparency and accountability of government operations. It also fosters a stronger connection between public officials and communities. common service delivery outlets. It also aspires to ensure efficiency, transparency and reliability of the services in affordable costs for the citizens.

The National e-Governance plan

All Indian citizens receive government services with the help of a newly launched initiative, The National e-Governance Plan (NeGP) by the Government of India. The NeGP, which was approved on May 18 2006, consisted of 27 Mission Mode Projects (MMPs) and 8 components. The number of MMPs increased later in 2011, introducing four new projects from 27 to 31 which are Health, Education, PDS, and Posts.

NeGPs Vision Statement states its aim to enhance the accessibility of Public Services to citizens. This statement is driven mainly by the goal of delivering these services through

The National e-Governance Plan (NeGP) has launched several initiatives to promote e-governance across India. These initiatives aim to make government services accessible, efficient, transparent, and affordable for all citizens.

Digi-Locker: Digi-Locker is a platform for issuance and verification of documents & certificates in a digital way, eliminating the use of physical documents.

Mobile Seva: Mobile Seva aims to provide government services to the people through mobile phones and tablets. myGov.in: myGov is an innovative platform to build a partnership between Citizens and Government with the helpoftechnologyforthegrowthanddevelopmentofIndia. e-Kranti: e-Kranti is an essential pillar of the Digital India initiative. It addresses the electronic delivery of services through a portfolio of mission-mode projects.

Company overview

Atishay Limited is an established Company, providing IT services aimed at aiding government organisations in devising more efficient solutions. The Company specialises in information technology (IT), database management, e-governance and retail fintech service. It offers a wide range of business and knowledge process services, as well as database management solutions and systems integration for critical government projects. Atishay Limited is renowned for its comprehensive service portfolio and a steadfast commitment to innovation. The Company continuously explores new commercial avenues to expand its business and take on new challenges.

E-Sahyog

E-Sahyog encloses the comprehensive day-to-day operations of primary agriculture co-operative societies (PACS) through a centralised architecture. It offers simplicity in usage and automates typical PACS branch activities. The software adheres to the Common Accounting Standard (CAS) and follows guidelines established by NABARD.

TrackVec

TrackVec serves as a solution for fleet management, asset tracking, workforce tracking, and personal tracking devices. Its component tracks vehicles via a GPS tracking system on duty, driver performance, fuel consumption. It also helps in real-time route tracking through a secure and user-friendly web and mobile. interface.

Zapurse

Zapurse is an online self-service portal focused on Banking, FasTAG, Utility Bill Payment, DMT, mATM, AePS, Recharge, and more. It connects Indias citizens with a modern ecosystem. Zapurse is the digital arm of Atishay Limited and is powered by Atishay Online. It also acts as a service aggregator and Payments Solution provider. The portal has a nationwide presence in both urban and rural areas, with more than [6k] Agent Networks.

Aadhaar Technical (Software) Project Management

It is responsible for the development and maintenance of UIDAI Aadhaar Software and Aadhaar-based applications. This application facilitates Single Sign-on (SSO) Login,

Public Distribution System (PDS) Distribution, Attendance management and integration of Aadhaar for various government departments delivering services.

Election Project Management

It handles the data management of a large voter base, including data cleansing, precise photo matching and printing of Voter ID Cards on PVC cards. with all security features recommended by the Government of India.

Legal Metrology

It enables IT services for the Legal Metrology Department under the Department of Consumer Affairs, Government of Rajasthan. The system thrives to enhance the ease of doing business, streamlining government-to-business service delivery.

E- Measurement Book

Atishay is developing an Electronic Measurement Book (EMB) portal for the MP Police Housing Board to manage contract data for construction allotments.

GPS Vehicle Tracking System

This system offers asset tracking services providing real-time location information for business assets, both on and off-site. GPS Vehicle Tracking System is for consignors, consignees, and third-party logistics service providers seeking real-time updates on cargo in transit. Workforce tracking servicesoffers real-time location information for the workforce through GPS tracking solutions.

Aadhaar-enabled Biometric Attendance System

Uses Adhaar Numbers to track real in-time and out-time of employees through a biometric system. The system includes features such as salary generation, leave application, holiday information, loan application and approvals, daily work analysis and feedback. It automates manual activities of document verification and authentication, facilitating seamless integration and data transfer between various government departmental applications.

NABARD

Atishay Limited has partnered with NABARD (National Bank for Agriculture and Rural Development) to deliver digitization solutions for finance-related documents. This partnership involves the digitization of crucial finance documents, which is a significant initiative in the financial sector.

Standalone financial review

Key financial ratios

Risk and concerns

Technology

As a part of technological advancement, the Company invested in state-of-the-art infrastructure for handling the data and server processes. Atishay joined hands with leading technology companies to ensure a high-quality supply of hardware and high-end workstations. This was done in order to enhance system performance at an operational level. The Company also designed the hardware infrastructure for handling large volumes of transactions. They invested in cutting-edge infrastructure for managing the data and server processes is part of the commitment to technical innovation. Leading technology firms have partnered with us to guarantee a premium supply of hardware and top-tier workstations for improved operating system performance.

Human resources

At Atishay, we focus on creating a people-centric workplace where diversity and inclusion are prioritised. Keeping employee wellness at the core of our efforts, we will continue to nurture a harmonious work culture. We also highly encourage personal as well as professional development.

We remain committed to empowering the employees to stay ahead of the curve through comprehensive training and development programmes. We try creating a positive work culture that prioritises employee engagement, well-being, work-life balance, and professional growth. By doing so, we are aiming to strengthen the human resources and achieve greater success

Diversity and Inclusion

At Atishay, we welcome people from diverse backgrounds and value their experiences and perspectives. The HR policies are meticulously designed to foster equality. We continue to build and manage a workforce with the requisite skills, culture and diversity to meet the expectations and demands of the rapidly evolving workforce.

Internal control systems

The Company has appropriate control systems in place for the size, complexity, and nature of the companys operations.

The goal of control systems, which are made up of rules and procedures, is to guarantee accurate financial reporting, adherence to policies, procedures, and applicable laws and regulations, as well as the efficient collection, use, and protection of all assets and resources.

The Internal Auditor reviews an internal systems effectiveness and suitability, as well as its adherence to operating guidelines, accounting standards, and corporate policies, in the least populated areas of the business. The Internal Auditor then reports the results to the Audit Committee every quarter.

The Board is reassured of the sufficiency and effectiveness of internal controls by an extensive risk-based programme of internal audits and management reviews. Because of this, established and thoroughly documented policies, rules, and processes exist. The internal system was designed to guarantee the correctness of the financial and other records to establish financial and other statements, safeguard asset accountability and maintain asset accountability

Cautionary statement

In accordance with the applicable regulations and laws, statements in this Management Discussion and Analysis that discuss the Companys goals, strategies, projections, and expectations may be regarded as "forward-looking statements." Actual results could differ materially or radically from what has been said or suggested. The companys operations could be significantly impacted by several important developments, including significant shifts in Indias political and economic environment, advertising costs, the introduction of new disruptive technologies or business models, exchange rate fluctuations, tax laws, litigation, labour disputes, and interest rates.