benchmark computer solutions ltd share price Management discussions

OF FINANCIAL POSITION AND RESULTS OF

OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Draft Prospectus. You should also read the section entitled "Risk Factors" beginning on page 19, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year ") are to the twelve-month period ended March 31 of that year.

The financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated which is included in this Draft Prospectus under the section titled "Restated Financial Information" beginning on page 147 of this Draft Prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 19 and 10 respectively, and elsewhere in this Draft Prospectus Accordingly, the degree to which the financial statements in this Draft Prospectus will provide meaningful information depend entirely on such potential investors level of familiarity with Indian accounting practices. Please also refer to section titled "Presentation of Financial, Industry and Market data " beginning on page 9 of this Draft Prospectus.

Our Company was originally incorporated as "Benchmark Computer Solutions Private Limited" as a private limited company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated October 31, 2002, issued by the Assistant Registrar of Companies, Mumbai, Maharashtra. Subsequently Our Company was converted from a private limited company to public limited company pursuant to Shareholders resolution passed in the Extra-Ordinary General Meeting of the company dated June 12, 2023 and the name of our Company was changed to "Benchmark Computer Solutions Limited" and a fresh certificate of incorporation dated July 13, 2023 was issued to our Company by the Registrar of Companies, Mumbai, Maharashtra. The Corporate Identification Number of our Company is U72000MH2002PLC137752. For details of change in name and registered office of our Company, please refer to chapter titled "History and Corporate Matters" beginning on page no. 127 of this Draft Prospectus.

Our Promoters Mr. Dhananjay Vrindavan Wakode and Mr Hemant Muddanna Sanil , professionally qualified having almost two decades experience in the IT Industry are the pioneer of our Company. Their experience in Information technology Industry has been instrumental in determining the vision and growth strategies for our Company.

In todays world, technology has become extremely important for businesses, governments, and society as a whole. As technology keeps advancing rapidly, companies are finding it challenging to keep up with the changes and need experts who understand both the traditional and digital aspects of technology. In which Our company excels and provides various services that helps the businesses in transforming as well as adapt to the changes in the Technology. The digital transformation happening across industries, also meant that our company needed to strengthen our own offerings, along with deepening our understanding of the latest technology trends.

We provide a comprehensive range of services covering the entire lifecycle of IT infrastructure i.e., Plan-Build-Run- Monitor. We continually look for new areas in the customers business where we can add value, proactively invest in building innovative capabilities, and launch new offerings to participate in those opportunities. The objective is to boost the top line, embrace new technology- enabled business models, create new revenue streams, address new customer segments, and deepen existing customer relationships.

The financial performance of the company for last three years as per restated financial Statement:

(Rs In Lakh)

Particulars	For the Period ended on
	31-Mar-23	31-Mar-22	31-Mar-21
Revenue from Operations (Rs in Lakhs)	3,194.69	1,864.32	1,469.69
Growth in Revenue from Operations (%)	71.36%	26.85%
EBITDA (Rs in Lakhs)	313.19	147.49	153.22
EBITDA Margin (%)	9.80%	7.91%	10.43%
Profit After Tax (Rs in Lakhs)	202.87	82.66	96.77
PAT Margin (%)	6.35%	4.43%	6.58%
RoE (%)	17.08%	7.92%	10.17%
RoCE (%)	18.88%	11.07%	11.36%
Net Fixed Asset Turnover (In Times)	13.16	9.90	6.97
Operating Cash Flows (Rs in Lakhs)	385.86	168.66	41.36

For our internal purpose, we have classified our business into three segments:

Following is an overview of our business verticals:

a) IT Infrastructure solutions:

This segment consists of various services such as IT Equipment rental, IT networking solutions, Datacentre Solutions, IT Security and Data backup and recovery.

b) Software and Web Based Application Development Services:

This segment consists of building of own software as well as web-based applications and websites as per the clients requirement.

c) Annual Maintenance Contract (AMC) and Facility Management Services (FMS)

Under this segment, we provide maintenance and support services to the clients based on the formal contract executed by providing technical expert for the same.

After the date of last Audited accounts i.e. March 31, 2023, the Directors of our Company confirm that, there have not been any significant material developments except mentioned below;

Note:

* Authorised capital of the company was increased capital from Rs 5.00 Lakhs to Rs 750.00 Lakhs divided into 7500000 equity shares of Rs 10 each in the meeting of members of the company held on June 12, 2023.

* Company was converted into a public limited company pursuant to a special resolution passed by our Shareholders at an Extra-Ordinary General Meeting held on June 28, 2023 and consequently the name of our Company was changed to ‘Benchmark Computer Solutions Limited.

* Board of Directors of the Company has approved in their meeting held on July 17, 2023 issue of upto 19,00,000 equity shares as Initial Public Offer which was subsequently approved by members of the company in the extraordinary general meeting held on July 18, 2023.

* On August 01, 2023 our company has allotted 5,000,000 Bonus Equity Shares in the ratio of 500:1 i.e. for every Equity Share, 500 Bonus Equity Shares.

Our Companys future results of operations could be affected potentially by the following factors:

* COVID-19 Pandemic;

* Natural Calamities e.g. Tsunami

* Global GDP growth and seaborne trade growth

* Prevailing commercial freight rates;

* The cost of building new vessels compared to the cost of purchasing and/or repairing existing vessels;

* Changes in laws or regulations

* Political Stability of the Country;

* Competition from existing players;

* Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues;

* Any failure to comply with the financial and restrictive covenants under our financing arrangements;

* Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner;

* Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition;

* Occurrence of Environmental Problems & Uninsured Losses;

* Conflicts of interest with affiliated companies, the promoter group and other related parties;

* The performance of the financial markets in India and globally;

* Our ability to expand our geographical area of operation;

* Concentration of ownership among our Promoters.

For Significant accounting policies please refer Significant Accounting Policies and Notes to accounts, "Annexure IV" beginning under Chapter titled "Restated Financial Information" beginning on page 147 of this Draft Prospectus.

The following table sets forth detailed total income data from our restated consolidated statement of profit and loss for the Financial Years 2023, 2022 and 2021, the components of which are also expressed as a percentage increase from previous year and also percentage of total revenue from operations for such years.

Particular	Year end on
	31.03.2023	31.03.2022	31.03.2021
Revenue from operations	3,194.69	1,864.32	1,469.69
Total Revenue from Operation	3,194.69	1,864.32	1,469.69
% of growth	71.36%	26.85%
Other Income	46.80	40.05	38.69
% of growth	16.85%	3.51%
Total Income	3,241.49	1,904.38	1,508.39
% of growth	70.21%	26.25%
Expenses
Purchase of Stock-in-trade	2,200.18	1,241.28	1,081.01
% of growth	77.25%	14.83%
Changes in Inventories of Finished Goods	80.87	35.22	(133.19)
% of growth	129.61%	126.44%
Employee benefits expense	440.10	341.50	286.69
% Increase/(Decrease)	28.87%	19.12%
Finance Costs	43.07	36.38	32.35
% Increase/(Decrease)	18.38%	12.47%
Depreciation and amortization expenses	42.33	24.67	38.32
% Increase/(Decrease)	71.61%	-35.63%
Other Administrative Expenses	160.36	98.83	81.96
% Increase/(Decrease)	62.26%	20.58%
Total Expenses	2,966.90	1,777.88	1,387.14
% to Total Income	91.53%	93.36%	91.96%
Profit/(Loss) Before Extra-Ordinary Items and Tax	274.59	126.49	121.24
% to Total Income	8.47%	6.64%	8.04%
Exceptional Items	-	-	-
Profit before Tax	274.59	126.49	121.24
Total tax expense	71.72	43.83	24.48
Profit and Loss after tax for the Year as Restated	202.87	82.66	96.77
% to Total Income	6.26%	4.34%	6.42%
Profit and Loss for the Year as Restated	202.87	82.66	96.77
% Increase/(Decrease)	145.42%	-14.57%

REVENUE:

Revenue from operations

Benchmark Computer Solutions Limited is an IT infrastructure solutions and technology consulting company. Our Company provides end-to-end technology and technology related services including IT Infrastructure and Software Development Services. The Company provides service models such as IaaS (Infrastructure as a Service) and SaaS (Software as a Service). The Service portfolio of the company comprises of IT Infrastructure solutions, Software and Web Based Application Development Services and Annual Maintenance Contract (AMC) and Facility Management Services (FMS). The Company has deep domain knowledge across industry sectors and technology expertise across traditional and new age technologies. Using its extensive understanding of its customers businesses and leveraging a combination of advanced technologies and expertise, company provides tailored solutions designed to deliver differentiated outcomes. The Total Revenue from operations for the year ended on FY 2022-23 was Rs 3,194.69 Lakh as compared to Rs 1,864.32 Lakh during the FY 2021-22. Revenue from Operations mainly includes revenue from sale of products and services from 3 segments namely IT Infrastructure solutions, Software and Web Based Application Development Services and Annual Maintenance Contract (AMC) and Facility Management Services (FMS). Revenue from operations increased by 71.36% from previous year i.e. FY 2021-22. Income from Operations increased mainly on account of growth driven by healthy momentum in our operations in export market and in the states of Haryana, Odisha. Revenue from IT Infrastructure solutions constitutes 81.51%, Software and Web Based Application Development Services constitutes 10.85% and Revenue from Annual Maintenance Contract (AMC) and Facility Management Services (FMS) constitutes 7.64% of total revenue from operations. For FY 2022-23, domestic revenues and export revenues constituted 93.94% and 6.06% respectively of the total revenue from operations of Rs 3,194.73 lakhs. Following are the State/Country wise bifurcation of sales.

Segment-wise Bifurcation

(Amt. in Rs Lakhs)

Particulars	For the financial year ended on March 31, 2023		For the financial year ended on March 31, 2022
	Amount (in t Lakhs)	%	Amount (in t Lakhs)	%
IT Infrastructure solutions	2,603.98	81.51%	1,259.90	67.58%
Software and Web Based Application Development Services	346.68	10.85%	200.42	10.75%
Annual Maintenance Contract (AMC) and Facility Management Services (FMS)	244.03	7.64%	404.01	21.67%
Total	3,194.69	100.00%	1,864.33	100.00%

GEOGRAPHICAL WISE REVENUE BIFURCATION

The revenue bifurcation of the issuer company for last three years as per restated financial Statement are as follows:

(Rs in Lakhs)

	For the year ended March 31
Particulars	2023		2022
	Sales	%	Sales	%
Domestic	3,001.12	93.94%	1,747.63	93.74%
Export	193.57	6.06%	116.70	6.26%
Total	3194.69	100.00%	1864.33	100.00%

REVENUE BIFURCATION FOR DOMESTIC SALES

The revenue bifurcation of the issuer company for last three years as per restated financial Statement are as follows:

(Rs in Lakhs)

Particulars	For the year ended March 31
	2023		2022		2021
	Sales	%	Sales	%	Sales	%
Andhra Pradesh	7.47	0.25	0.78	0.04	0.62	0.04
Dadra & Nagar Haveli and Daman & Diu	2.25	0.08	1.95	0.11	0.18	0.01
Delhi	5.90	0.20	2.44	0.14	1.40	0.10
Goa	0.56	0.02	0.25	0.01	2.39	0.17
Gujarat	51.98	1.73	115.23	6.59	78.12	5.62
Haryana	19.53	0.65	1.69	0.10	1.71	0.12
Karnataka	144.78	4.82	82.85	4.74	26.97	1.94
Kerala	0.27	0.01	_-	_-	_-	_-
Madhya Pradesh	0.67	0.02	7.20	0.41	_-	_-
Maharashtra	2,761.83	92.03	1,525.81	87.31	1,257.19	90.50
Odisha	0.05	0.00	6.58	0.38	10.26	0.74
Rajasthan	1.36	0.05	0.31	0.02	4.90	0.35
Tamil Nadu	2.78	0.09	1.02	0.06	0.03	0.00
Telangana	0.54	0.02	0.27	0.02	0.34	0.02
Uttarakhand	1.15	0.04	1.18	0.07	5.03	0.36
West Bengal	_-	_-	0.07	0.00	0.09	0.01
Total	3,001.12	100.00	1,747.63	100.00	1,389.23	100.00

Other Income:

Other income of the company was Rs 46.80 lakhs and Rs 40.05 lakhs for FY 2022-23 and FY 2021-22 respectively. Other Income mainly includes interest and dividend income, gain/loss on sale of Investments and other non-operating income.

EXPENDITURE:

Purchase of Stock-in-trade

Our Purchase of Stock-in-trade increased by 77.25% from Rs 1,241.28 lakhs in FY 2021-22 to Rs 2,200.18 lakhs in FY 2022- 23, this was primarily due to higher sales during the FY 2022-23 and increase in material prices.

Changes in inventories of finished goods

Our opening stock of finished goods was Rs 119.21 lakhs as at April 1, 2022, while it was Rs 154.43 lakhs as at April 1, 2021. Our closing stock of finished goods was Rs 38.34 lakhs as at March 31, 2023, while it was Rs 119.21 lakhs as at March 31, 2022, The changes in inventories of finished goods increased to Rs 80.87 lakhs in FY 2022-23 from Rs 35.22 lakhs in FY

2021- 22 was primarily in proportion with the growth in our Companys business in FY 2022 -23.

Employee Benefit Expenses

Employee Benefit expenses increased to Rs 440.10 lakhs in FY 2022-23 from Rs 341.50 lakhs in FY 2021-22 showing an increase of 28.87%. Employee Benefit Expenses mainly includes salary and wages, remuneration to directors, staff welfare expenses, gratuity expenses, contribution to provident fund and other funds.

Finance Cost

Finance expense were Rs 43.07 lakhs in FY 2022-23 as against Rs 36.38 lakhs in FY 2021-22 showing increase of 18.38% Finance costs include interest expense on working capital facilities including, term loans and on vehicle loans and bank charges. Increase in finance cost is on account of car loan taken by company.

Depreciation

The Depreciation and amortization expense for FY 2022-23 was Rs 42.33 lakh as against Rs 24.67 lakhs for FY 2021-22. Depreciation represents depreciation on our property, plant and equipment, furniture and fixtures, vehicles, computer and accessories and Office equipment.

Other Administrative Expenses

Other Administrative Expenses increased to Rs 160.36 lakhs in FY 2022-23 from Rs 98.83 lakhs in FY 2021-22 showing an increase of 62.26%. Other expense mainly includes power & fuel expense, office rent, repairs & maintenance, travelling & conveyance expenses, commission charges, office expense, legal & professional fees, sundry balance written off and misc. expenses. Other expense increased mainly on account of increase in travelling & conveyance expenses, commission charges and Repairs & Maintenance expense.

Profit before Extra-Ordinary Items and Tax

The Profit before Extra-Ordinary Items and Tax for the FY 2022-23 was 8.47% of the total income and it was 6.64% of total income for the FY 2021-22. The Profit before Extra-Ordinary Items and Tax has increased to Rs 274.59 lakhs in FY 2022- 23 from Rs 126.49 lakhs in FY 2021-22.

Profit after Tax (PAT)

PAT increased to Rs 202.87 lakhs in FY 2022-23 from Rs 82.66 lakhs in the FY 2021-22. PAT was 6.26% and 4.34% of Total Income of our company for the year ended on March 31, 2023 and March 31, 2022 respectively.

REVENUE:

Revenue from operations

Benchmark Computer Solutions Limited is an IT infrastructure solutions and technology consulting company. Our Company provides end-to-end technology and technology related services including IT Infrastructure and Software Development Services. The Company provides service models such as IaaS (Infrastructure as a Service) and SaaS (Software as a Service). The Service portfolio of the company comprises of IT Infrastructure solutions, Software and Web Based Application Development Services and Annual Maintenance Contract (AMC) and Facility Management Services (FMS). The Company has deep domain knowledge across industry sectors and technology expertise across traditional and new age technologies. Using its extensive understanding of its customers businesses and leveraging a combination of advanced technologies and expertise, company provides tailored solutions designed to deliver differentiated outcomes. The Total Revenue from operations for the year ended on FY 2021-22 was Rs 1,864.32 Lakh as compared to Rs 1,469.69 Lakh during the FY 2020-21. Revenue from Operations mainly includes revenue from sale of products and services from 3 segments namely IT Infrastructure solutions, Software and Web Based Application Development Services and Annual Maintenance Contract (AMC) and Facility Management Services (FMS). Revenue from operations increased by 26.85% from previous year i.e. FY 2020-21. Income from Operations increased mainly on account of growth driven by healthy momentum in our operations in export market and in the states of Maharashtra, Gujarat and Karnataka. Revenue from IT Infrastructure solutions constitutes 67.58%, Software and Web Based Application Development Services constitutes

10.75% and Revenue from Annual Maintenance Contract (AMC) and Facility Management Services (FMS) constitutes 21.67% of total revenue from operations. For FY 2021-22, domestic revenues and export revenues constituted 93.74% and 6.26% respectively of the total revenue from operations of Rs 1,864.32 lakhs. Following are the State/Country wise bifurcation of sales

Segment-wise Bifurcation

(Amt. in Rs Lakhs)

Particulars	For the financial year ended on March 31, 2022		For the financial year ended on March 31, 2021
	Amount (in Rs Lakhs)	%	Amount (in Rs Lakhs)	%
IT Infrastructure solutions	1,259.90	67.58%	1,183.44	80.52%
Software and Web Based Application Development Services	200.42	10.75%	165.50	11.26%
Annual Maintenance Contract (AMC) and Facility Management Services (FMS)	404.01	21.67%	120.75	8.22%
Total	1,864.33	100.00%	1,469.69	100%

GEOGRAPHICAL WISE REVENUE BIFURCATION

The revenue bifurcation of the issuer company for last three years as per restated financial Statement are as follows:

(Rs in Lakhs)

	For the Financial Year
Particular	2022		2021
	Sales	%	Sales	%
Domestic	1,747.63	93.74%	1,389.23	94.53%
Export	116.70	6.26%	80.46	5.47%
Total	1864.33	100.00%	1469.69	100.00%

REVENUE BIFURCATION FOR DOMESTIC SALES

(Rs in Lakhs)

Particulars	For the Financial Year ended
	2022		2021
	Sales	%	Sales	%
Andhra Pradesh	0.78	0.04	0.62	0.04
Dadra & Nagar Haveli and Daman & Diu	1.95	0.11	0.18	0.01
Delhi	2.44	0.14	1.40	0.10
Goa	0.25	0.01	2.39	0.17
Gujarat	115.23	6.59	78.12	5.62
Haryana	1.69	0.10	1.71	0.12
Karnataka	82.85	4.74	26.97	1.94
Kerala	-	-	-	-
Madhya Pradesh	7.20	0.41	_-	_-
Maharashtra	1,525.81	87.31	1,257.19	90.50
Odisha	6.58	0.38	10.26	0.74
Rajasthan	0.31	0.02	4.90	0.35
Tamil Nadu	1.02	0.06	0.03	0.00
Telangana	0.27	0.02	0.34	0.02
Uttarakhand	1.18	0.07	5.03	0.36
West Bengal	0.07	0.00	0.09	0.01
Total	1,747.63	100.00	1,389.23	100.00

Other Income:

Other income of the company was Rs 40.05 lakhs and Rs 38.69 lakhs for FY 2021-22 and FY 2020-21 respectively. Other Income mainly includes interest and dividend income, gain/loss on sale of Investments and other non-operating income.

EXPENDITURE:

Purchase of Stock-in-trade

Our Purchase of Stock-in-trade increased by 14.83% from Rs 1,081.01 lakhs in FY 2020-21 to Rs 1,241.28 lakhs in FY 2021- 22, this was primarily due to higher sales during the FY 2021-22.

Changes in inventories of finished goods

Our opening stock of finished goods was Rs 154.43 lakhs as at April 1, 2021, while it was Rs 21.24 lakhs as at April 1, 2020. Our closing stock of finished goods was Rs 119.21 lakhs as at March 31, 2022, while it was Rs 154.43 lakhs as at March 31, 2021, The changes in inventories of finished goods increased to Rs 35.22 lakhs in FY 2021-22 from Rs (133.19) lakhs in FY

2020- 21 was primarily in proportion with the growth in our Companys business in FY 2021 -22.

Employee Benefit Expenses

Employee Benefit expenses increased to Rs 341.50 lakhs in FY 2021-22 from Rs 286.69 lakhs in FY 2020-21 showing an increase of 19.12%. Employee Benefit Expenses mainly includes salary and wages, remuneration to directors, staff welfare expenses, gratuity expenses, contribution to provident fund and other funds.

Finance Cost

Finance expense were Rs 36.38 lakhs in FY 2021-22 as against Rs 32.35 lakhs in FY 2020-21 showing increase of 12.47% Finance costs include interest expense on working capital facilities including, term loans and on vehicle loans and bank charges.

Depreciation

The Depreciation and amortization expense for FY 2021-22 was Rs 24.67 lakhs as against Rs 38.32 lakhs for FY 2020-21. Depreciation represents depreciation on our property, plant and equipment, furniture and fixtures, vehicles, computer and accessories and Office equipment.

Other Administrative Expenses

Other Administrative Expenses increased to Rs 98.83 lakhs in FY 2021-22 from Rs 81.96 lakhs in FY 2020-21 showing an increase of 20.58%. Other expense mainly includes power & fuel expense, office rent, repairs & maintenance, travelling & conveyance expenses, commission charges, office expense, legal & professional fees, sundry balance written off and misc. expenses.

Profit before Extra-Ordinary Items and Tax

The Profit before Extra-Ordinary Items and Tax for the FY 2021-22 was 6.64% of the total income and it was 8.04% of total income for the FY 2020-21. The Profit before Extra-Ordinary Items and Tax has increased to Rs 126.49 lakhs in FY 2021- 22 from Rs 121.24 lakhs in FY 2020-21.

Profit after Tax (PAT)

PAT decreased to Rs 82.66 lakhs in FY 2021-22 from Rs 96.77 lakhs in the FY 2020-21. PAT was 4.34% and 6.42% of Total Income of our company for the year ended on March 31, 2022 and March 31, 2021 respectively. PAT decreased by 14.57% due to Excess/Short Provision of Tax of Earlier Years.

For further information please refer "Annexure - 34 - Related Party Disclosure" under section "Restated Financial Information " beginning from page no. 147 of this Draft Prospectus.

We are exposed to financial market risks from changes in borrowing costs, interest rates and inflation.

We are currently exposed interest to rate risks to the extent of outstanding loans. However, any rise in future borrowings may increase the risk.

We are affected by inflation as it has an impact on the operating cost, staff costs etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

1. Unusual or infrequent events or transactions

Except as described in this Draft Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors" beginning on page no. 19 of the Draft Prospectus. To our knowledge, except as we have described in the Draft Prospectus, there are no known factors which we expect to bring about significant economic changes.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Apart from the risks as disclosed under Section titled "Risk Factors beginning on page no. 19 in this Draft Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known.

Our Companys future costs and revenues will be determined by demand/supply situation, both of the end products/services as well as the raw materials, government policies and other economic factors.

5. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices.

Our Company provides end-to-end technology and technology related services including IT Infrastructure and Software Development Services. The Company provides service models such as IaaS (Infrastructure as a Service) and SaaS (Software as a Service). The Service portfolio of the company comprises of IT Infrastructure solutions, Software and Web Based Application Development Services and Annual Maintenance Contract (AMC) and Facility Management Services (FMS). The Company has deep domain knowledge across industry sectors and technology expertise across traditional and new age technologies. Using its extensive understanding of its customers businesses and leveraging a combination of advanced technologies and expertise, company provides tailored solutions designed to deliver differentiated outcomes. Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products/services.

6. Total turnover of each major industry segment in which the issuer company operated.

7. Status of any publicly announced new products or business segment.

8. The extent to which business is seasonal.

9. Any significant dependence on a single or few suppliers or customers.

The percentage of contribution of our Companys customer vis-a-vis the total revenue from operations respectively as on

FY 2023, 2022 and 2021 is as follows:

Particulars	Top Customers as a percentage (%) of revenues
	FY 2022-23	FY 2021-22	FY 2020-21
Top 1	55.89%	23.59%	31.35%
Top 3	66.51%	43.15%	42.57%
Top 5	73.87%	52.88%	51.54%
Top 10	80.05%	66.85%	67.66%

The % of contribution of our Companys supplier vis-a-vis the total purchases respectively as on FY 2023, 2022 and 2021 is as follows:

Particulars	Top Suppliers as a percentage (%) of revenues
	FY 2022-23	FY 2021-22	FY 2020-21
Top 1	19.80%	9.95%	23.78%
Top 3	35.18%	27.52%	33.52%
Top 5	44.17%	40.22%	41.97%
Top 10	58.55%	53.17%	55.90%

10. Competitive conditions:

We face competition from existing and potential competitors which is common for any business. We have, over a period, developed certain competitors who have been discussed in section titles "Business Overview beginning on page no. 106 of this Draft Prospectus.

CAPITALIZATION STATEMENT

Particulars	Pre-issue	Post Issue *
Debt
Short Term Debt	250.56	250.56
Long Term Debt	302.51	302.51
Total Debt	553.07	553.07
Shareholders Fund (Equity)
Share Capital	1.00	[•]
Reserves & Surplus	1,288.51	[•]
Total Shareholders Fund (Equity)	1,289.51	[•]
Long Term Debt/Equity	0.23	[•]
Total Debt/Equity	0.43	[•]

1. Short term Debts represent which are expected to be paid/payable within 12 months and includes installment of term loans repayable within 12 months.

2. Long term Debts represent debts other than short term Debts as defined above but excludes installment of term loans repayable within 12 months.

3. The figures disclosed above are based on restated statement of Assets and Liabilities of the Company as at 31.03.2023.

4. Our Board in its meeting dated August 01, 2023 allotted 50,00,000 Equity Shares of face value of Rs10 each pursuant to a bonus issue in the ratio of 500 Equity Shares for 1 existing Equity Shares held by our Shareholders.

5. The impact of events mentioned at points 4 and 5 above has not been taken into account for the above disclosure of information.

benchmark computer solutions ltd share price Management discussions

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