compucom software ltd Management discussions

Pursuant to Regulation 34 (2) (e) of Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015

OVERVIEW

The Company continues to operate in areas like e-governance projects, ICT education projects, software design & development, electronic Media, IT & media training and learning solutions, wind power generation etc. Pipeline projects underway have progressed in a positive direction- in hospitality, food processing, cold-chaining and commodity trading sectors.

Our Strategic objective is to build a sustainable organization that remains relevant to the agenda of our clients, while creating growth opportunities for our employees and generating profitable growth for our investors.

The financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 ("the Act") and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, and relevant amendment rules issued thereafter for preparing Financial Statements.

I. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Almost every industry in the world is being led by software and computing technology to revolutionize their business in a fundamental way, as we all know about the ubiquitous and even indispensable usage of software all around us. The IT and ITES industries are assisting in the digitalization of corporate processes, and it is cascading across industries, enabling IT-based market offerings and business models. This is due to the continuous decrease in hardware and bandwidth costs and exponentially increasing efficiencies of the same. Building next-generation software applications and platforms, as well as enhancing information and data security, are all results of the renewed digitization era.

Apart from these, there has been leaps-and-bounds advancement of AI based applications as well as Big Data becoming easier to collect, store and process to generate valuable insights for both legacy organizations and new-age fast growing organizations.

As per the National Association of Software and Service Companies (Nasscom), in the Indian context, the IT industry revenue is pegged to touch US$ 245 billion in FY23, up from the US$ 227 billion in previous FY22. According to another reputed firm Gartner, as per the current estimates, Indian IT spending is all set to increase to about US$ 112.4 billion in the year 2023, up from the approximately US$ 101.8 billion spending in the year 2022. Indian software product industry is anticipated to touch US$ 100 billion by 2025. The IT and ITeS companies of India are now also greatly focusing to invest internationally so as to expand their global footprint and also establish their global delivery centers. Looking at data from previous years, the data processing and annotation market in India was firm at US$ 250 million in the year FY20, out of which, the USA market grabbed60% to the total value. The market is pegged to reach a grand figure of US$ 7 billion by the year 2030 due to accelerated domestic demand for AI. Exports from the Indian IT industry stood at US$ 178 billion in FY22. Exports of IT and IT enabled services had the major share in this, accounting for more than 51% of total IT exports (including hardware). BPM and Engineering and R&D (ER&D) and software products exports accounted US$ 1.48 billion in 2022. ER&D market was expected to grow to US$ 20.70 billion.by 2023. (As per Indian Brand Equity Foundation research).

After the 2020 dip, government expenditure on ICT & IT initiatives also increased last year, but it still lagged compared to pre-covid levels. Even more recovery has occurred in the past year, and the government has floated larger tenders. Similar to every year, your company has successfully begun working on new ICT-related projects for the Government of Rajasthan and renewed a number of ongoing IT-based projects for government ministries. These have regularly been announced to the markets and indices.

In order to take advantage of the companys land bank already in place and to sustain the steady rate of diversification it has been doing over the years, your company is always focusing on new consumer segments and industry verticals.

Along with the company has installed Wind Power generation plants are in Rajasthan in Jaisalmer with capacity of 0.6 MW each, two at Sikar (Rajasthan) with capacity of 0.6 MW each & One Plant at Krishna (Andhra Pradesh) with capacity of 0.8 MW.

India is the third-largest producer and consumer of electricity in the world and had an installed power capacity of 411.64 GW as of March 2023. Out of this around 42.63GW comes from wind power.

One of the anticipated pipeline projects is the eagerly awaited hotel project in Jaipur, which the Company has been developing. The project is expected to operate with best practices and an integrated self-sustaining supply chain, to the extent possible, with backward integration from a cold chaining and food processing project being set up nearby.

A recent report by BW hotelier also points to encouraging aspects of the Indian hospitality sector in the FY 2022-23. For a year that looked quite gloomy at the outset due to the devastating Omicron variant, Indias hotel industry outperformed all expectations in 2022. Even with the low performance of the first quarter, total-year revenue per available room (RevPAR) recovered to 100% of pre-pandemic levels (2019). However, the sector witnessed a 30.1% growth at a pan-India level in RevPAR in Q4 2022, compared to Q3 2022 on the back of corporate travel, weddings, and year-end holidays, according to JLLs Hotel Momentum India (HMI) Q4, 2023.

To elucidate from available previous years data, according to India Brand Equity Foundation (IBEF), Foreign Tourist Arrivals (FTAs) in August 2022 were 498,243 with a positive growth rate of 437.3% as compared to 92,728 in August 2021.FTAs during the period January-August 2022 were 3,263,219 as compared to 638,524 in January-August 2021. For comparison we must see what the FTA numbers in pre-covid era were. During 2019, foreign tourist arrivals (FTAs) in India stood at 10.93 million, achieving a growth rate of 3.5% y-o-y. During 2019, FEEs from tourism increased 4.8% YoY to Rs. 1,94,881 crore (US$ 29.96 billion). With the lifting of restrictions on passengers as well as airlines, it is expected that soon pre-covid levels in FTAs will be achieved in the sector. And when that happens, we want to be ready with our hotel to take advantage of the opportunities. Jaipur is a major city in both international and domestic tourism circuits. In FY 19, existing inventory of hotel rooms (branded, all categories) in Jaipur stood at 5,426, up from 5,058 and 4,129 respectively in immediately preceding years. The YoY growth for rooms inventory stood at 7.3% and CAGR at 5.6%, which were well above the average for the top 11 tourism cities at 5.9% a piece for both figures. Latest estimations of current and immediately past years would surely come out to be encouraging for the Hotel industry in Jaipur.

It is crucial to keep in mind that these projections will need to be reevaluated in light of the lingering effects of the worldwide epidemic, which has already decimated the majority of tourism and related industries. Although the hotel is still in the construction stages and therefore has not yet incurred any operating expenses, the company has recognized that once the travel and hospitality industries pick up, there will be a renewed focus on values like cleanliness, safety, etc., and we are actively adapting our development strategy in line with this.

II. OPPORTUNITIES AND THREATS:

Opportunities:

a. India is one of the largest education marketplaces in the world, with 580 million of its 1.4 billion people falling into the target demographic for the education industry (ages 5 to 24). The "ICT in schools" programme is a chance to close the digital divide in India. The programme is a comprehensive effort to give rural school pupils access to new learning opportunities and a fair playing field. Compucom is a passport for a rewarding career in computer literacy, offering students practical training to keep up with the demands of the IT industry and more. There is a major stake holding the 60:40 funding split between the state governments and the federal government of India. For the state of Rajasthan, a major player in such ICT school projects is your very own Compucom. Compucom undertakes large projects that are similar in nature to a turnkey project, from setting-up of computer labs to imparting computer education and other computer aided learning program for government schools. These projects also involve supply of computer hardware, software and connected accessories as well as imparting of education services for a specified time (generally 3-5 years). Government having recognized the importance of IT in education as being fundamental to the development of a globally competitive economic and democratic society as well as placing India on the world IT map, has been focusing mainly on providing computers and computer literacy programs in Government schools. Compucom has shaped the lives of millions of students by introducing computer literacy to the students in Government Schools.

The Government of India promoted PPP models across India fueled by Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and skill development initiatives. and effort to universalize Secondary and Elementary Education by community-ownership of the school system. It is a response to the demand for providing quality school education across the country. During this year the Company has received three more projects of by Rajasthan Council for School Education (A Govt. of Rajasthan Undertaking). This is also an attempt to provide an opportunity for improving human capabilities through the provision of community owned quality education. It aims to provide useful and relevant Secondary and Elementary education for all children within the 6-18 age groups. The Programme also aims to bridge social, regional and gender gaps, with the active participation of the community in the management of schools.). Along with this, the demand for corporate training is increasing with more and more companies outsourcing training to specialized IT training companies hence the growth of the IT-Training companies will be further boosted. Skill training focus of Government under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is also going to prove beneficial to our company soon. The company as well as its subsidiary has started work with due permissions, this skill development segment and if the pilot is successful, subsequent expansion and investment into this segment may be expected.

Additionally, in FY 20, the governments introduction of New Education Policy 2020 has placed a renewed focus on both IT education and ICT based education media. Be it including coding for children from an early school going age or proposing quality tech-based options for adult learning such as apps, satellite-based TV channels, ICT equipped libraries etc., the company looks forward to these developments and shall work closely with all stakeholders to ensure it plays a role in modernizing Indian education.

b. Software & E-governance Services: Traditionally the company has been focusing on software export market, but the way India is emerging as a powerhouse economy, many more software service opportunities in Government sector are emerging in areas of power utilities, Education, Rural Development, Infrastructure Development, etc. Our company has put significant efforts into harnessing this E-Governance business. Our company is also serving overseas clients by providing software development, testing and maintenance and customer support services. The company had developed its own news portal which works in conjunction with its satellite TV Channel and has added shimmer to the companys brand image and generated new business opportunities. These past two FYs though have seen a temporary downturn in the number of client orders from overseas, but the company is fully geared to bounce back soon and is making efforts to ensure the same.

c. Media Services: Your companys subsidiary CSL Infomedia Pvt. Ltd. has successfully completed its eleventh year of operating its Satellite TV Channel "JAN TV" which is a vehicle of Educational, Financial, Social and Political change.

This Channel offers Education, News, Employment, Skill Development, Agriculture, Tourism, Healthcare, Religious, Sports, Entertainment and News and Current Affairs based programs. Jan TV is available on Tata Play DTH Channel No. 1185, Airtel DTH Channel number 355, all major OTT platforms like MXPLAYER, JIO TV, DAILYHUNT, YouTube Live Streaming and on major cable networks across India. Jan TV is also available free on Android, iPhone mobile phones and on PC through internet and mobile app. Companys second TV channel is JAN TV PLUS which is also broadcasting News & Current Affairs, Entertainment, Education, Agriculture and Social Empowerment related programs. JAN TV is a Free-To-Air (FTA) channel, whereas JAN TV Plus is a Pay channel. Both JAN TV and JAN TV Plus channels are empaneled with Department of Information and Public Relations (DIPR) Government of Rajasthan. JAN TV is also empaneled with DAVP for getting Central Government advertisement. JAN TV has taken BARC (Broadcast Audience Research Council) subscription for Television Audience Measurement Services. JAN TV now has a bureau office in Uttar Pradesh and trying to get empaneled with DIPR, UP.

d. Hospitality Sector: Since the Indian tourism & hospitality industry has emerged as one of the key drivers of growth among the services sector in India, and being located at Jaipur, which is among the preferred destination of domestic as well as international tourists, Compucom had decided to venture into this sector. Therefore, we have been constructing our hotel on our existing piece of land at IT 12-13 Sitapura Industrial Area, requiring phased investment of a total of 20 to 25 crore rupees approx., of which approx. 17 Crore has been spent. This project is expected to be partly funded by the State Bank of India. The company is also exploring tie ups with reputed brands and operators in the hospitality space.

e. Wind Power: Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate infrastructure is essential for sustained growth of the Indian economy. Indias power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar, and agricultural and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.

India is the third-largest producer and consumer of electricity in the world and had an installed power capacity of 411.64 GW as of March 2023. Out of this around 42.63 GW comes from wind power.

The Company has an existing installed strength of two wind power generation plants in Jaisalmer (Rajasthan) with capacity of 0.6 MW each, two at Sikar (Rajasthan) with capacity of 0.6 MW each & One Plant at Krishna (Andhra Pradesh) with capacity of 0.8 MW. Total wind power generation capacity is 3.2 MW.

f. Cold Storage: The cold storage system is poised to become a game changer for Indias food and agricultural industry. While ensuring access to food for all, it will play a major role in boosting Indias economy. Since infrastructure is still at a nascent state, cold storage could help reduce the burden on farmers and industries in transacting with other stakeholders. The apparent benefits of cold storage are so high that they could curtail inflation and reduce dependency on price sensitivity and volatility. A strong interplay of private players, markets and farmers is required for sustaining and developing the sector. Investments need to be attracted through the right strategies, as the sector has a long-term effect on the health of the people and the economy of the state. Price control measures and regulations must be minimized and eventually stopped to tap the benefits of market in cultivating fruits and vegetables.

The 36 inter linkages developed between them will define the gross output of fruits and vegetables market in India and its contribution to the global market. With the advent of technology, it is only a matter of time before the warehousing systems are revolutionaries with increasing demands and pressure on the supply chain. It is therefore pertinent to have the right strategies in place to support the need of building an efficient cold storage industry in India. Further appropriate steps have been taken by Company to avail suitable subsidy from National Horticulture Board, Government of India which is expected to materialize in next Financial Year and help in reducing capital outlay.

The Company forthcoming project of Cold Storage is expected to be progressed in next financial year.

Threats: a. Competitive pressures: IT is one sector that is spreading its wing fast throughout the world and India is becoming

a preferred destination for global IT players. As a result, the competitive pressure is intensifying. The Company must operate in this competitive scenario and acquire a grip on the market to hold its foot firmly and upkeep the brand name.

b. Talent supply constraint: Both the IT as well as the manufacturing sector seek Talent. This increases the cost of the talent. The Company must ensure that it acquires good talent and retains it to constitute its major competitive edge.

The Company maintains an excellent work environment and competitive package for this purpose.

c. Technology Obsolescence: These are the days when technology takes no time to become obsolete. Thus, to be at par with its competitors the company must ensure that it constantly updates and upgrades its technology.

d. Exchange Rates: Since the company uses India as a major source of manpower, the exchange rate of the rupee vis-?-vis the US-dollar and other currencies affects its ability to compete. The Company attempts to minimize the foreign exchange exponent by taking appropriate measures wherever required.

e. Government Policies: As and when there is a change in the Government, there might be a change in its policies too.

Any adverse changes in its policies may affect the business operations of the Company.

II. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE: Detailed information about segment-wise performance of the company are as follows:

• Information about reportable segments

A. Information about primary segments (in Lakhs)

Particulars	Year ended March 31, 2023			Year ended March 31, 2022
Business Segment	Allocated	Unallocated	Total	Allocated	Unallocated	Total
Revenue
Software	899.70	-	899.70	800.84	-	800.84
Learning	4023.92	-	4023.92	1682.78	-	1682.78
Wind Power	186.52	-	186.52	199.95	-	199.95
Segment revenue	5110.14	-	5110.14	2683.57	-	2683.57
Expenses
Software	859.29	-	859.29	881.10	-	881.10
Learning	3673.26	-	3673.26	1974.26	-	1974.26
Wind Power	165.43	-	165.43	190.79	-	190.79
Segment Expense	4697.98	-	4697.98	3046.15	-	3046.15

 

Particulars	Year ended March 31, 2023			Year ended March 31, 2022
Business Segment	Allocated	Unallocated	Total	Allocated	Unallocated	Total
Segment Results
Software	40.41	-	40.41	(80.26)	-	(80.26)
Learning	350.66	-	350.66	(291.48)	-	(291.48)
Wind Power	21.09	-	21.09	9.16	-	9.16
Segment Results	412.16	-	412.16	(362.58)	-	(362.58)
Less: expenses		33.99	33.99	-	28.72	28.72
Add: Interest income		-		-	-
Add: Other un allocable income		352.69	352.69	-	2180.44	2180.44
Profit before tax and exceptional items		-	730.86	-	-	1789.14
Less: Exceptional item	-	-	-	-	-	-
Profit before tax		-	730.86		-	1789.14
Tax expenses		-	266.31	-	-	502.03
Other Comprehensive income		-	19.07	-	-	22.93
Profit for the year	483.62	-	483.62	1310.04	-	1310.04

B. Information Based on Geography

Particulars	Year ended March 31, 2023	Year ended March 31, 2022
Revenue by geographical segment
India	5208.67	4780.25
USA	155.66	83.76
Total	5364.33	4864.01

C. Reconciliation between segment revenue and enterprise revenue

Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022
Segment Revenue
Software	899.70	800.84
Learning	4023.92	1682.78
Wind Power	186.52	199.95
Total Segment Revenue	5110.14	2683.57
Enterprise Revenue
Revenue from operations	5462.83	4864.01
Less: Other operating revenues	(352.69)	(2180.44)
Add: Export Incentives	-	-
Total Segment Revenue	5110.14	2683.57

IV. OUTLOOK:

The Company has a positive outlook for the coming year and endeavors to achieve a steady business performance in the coming year. This is, however, subject to the risks and uncertainties given below.

V. RISKS AND CONCERNS:

The Board of Directors and Senior Management is continuously and carefully monitoring the risks and concerns related to the business for example:, risks and uncertainties regarding fluctuating earnings, interest rates, exchange rates, the Companys ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increase, earnings and exchange rate fluctuations, intense IT competition, Government policies, ability to attract and retain skilled professionals, time- cost over-runs on fixed price contracts, client concentration, ability to manage the international marketing and sales operations as well as the local operations, alterations of the government fiscal incentives, political instability, legal framework and above all general economic conditions affecting the industry.

VI. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Companys internal financial control over financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company.

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and Directors of the Company and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Companys assets that could have a material effect on the financial statements.

The Company has a robust internal audit program, where the internal auditor conducts a risk-based audit with a view to not only test adherence to policies and procedures but also to suggest improvements in processes and systems. Their audit program was agreed upon by the Audit Committee. Internal audit observations and recommendations are reported to the Audit Committee, which monitors the implementation of such recommendations. The findings were satisfactory and suggestions for improvement have been taken up for implementation.

VII. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

• Financial Performance:

Income: The Company derives its income from Software& E-Governance services, sale of software products, learning solutions including skilling and placement activities, IT education and training, Wind Power Generation, and treasury income. Treasury income mainly includes interest on FDRs.

Particulars	31.03.2023	31.03.2022
Software & E-Governance Services - Overseas	155.66	83.76
Domestic	744.04	717.08
Learning Solution	4023.92	1682.78
Wind Power Generation	186.52	199.95
Other Income	352.69	2180.44
Total	5462.83	4864.01

a. Software Services: Software development at overseas level has increased by Rs. 71.90 lakhs due to relief from covid-19, which was affected adversely in previous years. E-Governance projects at domestic level have also shown improvement due to the new project of Rs. 6.06 crores for supply of manpower on contract basis, to Building and Other Construction Workers Welfare Board, received from October 21 and remained in operation for the full financial year 2022-23. The Company is bidding for a new project aggressively in the current Financial Year also.

b. Learning Solution: Learning Solution comprises imparting computer education in Govt. Schools, skilling and placement activities. During the financial year revenue from this segment has increased by Rs. 23.41croresdue to the reason that we received 525 school projects of Rs. 57 crores for installation of C Band Antenna, set up box and providing educational services as per Govt. Syllabus on boot basis, in previous year which was started from the 4^th quarter of previous year, but it remained in operation for the full year 2022-23. We received another project from 398 schools for supply and installation of computer systems, Printers, UPS, networking and installation etc. with 5 years onsite comprehensive warranty and started operations and booked income of Rs. 14.42 crores in the 4^th quarter of the current year 2022-23.

Regarding the learning solution apart from the ICT and other projects of Government schools, the company indulges in providing skill development training to engineering & other curriculum batches, as well as government & other employees. Various skill development projects remained in operation during the current year 2022-23, for passing on benefits of schemes like DDUGKY and RSLDC to the youth of Rajasthan.

c. Wind Power Generation: The Company has five wind power plants. Two of them are in Sikar and two in Jaisalmer, Rajasthan and one is in Krishna, Andhra Pradesh. Wind World India Limited takes care of the wind power projects of the company and deals on behalf of the company with all regulatory bodies. Revenue from this segment has decreased in the current year 2022-23, marginally by Rs. 13.43 lakhs compared to the previous year 2021-22. It is worth mentioning that APERC (Andhra Pradesh Electricity Regulatory Commission) has passed an order determining the tariff at Rs. 2.64 per unit, which was Rs. 3.50 per unit up to 31.03.2020 and thereby reducing rate by Rs. 0.86 per unit w.e.f. 1.04.2020. However, this segment mainly depends upon the flow of wind and availability of grid.

d. Foreign Exchange Risks/ Exposures: The Company operates from India with execution facilities in USA. A significant portion of revenue, expenses related to Software business is carried out in US foreign exchange exposure for the last two years is mentioned below:

Particulars	31.03.2023	31.03.2022
Revenue in Foreign Currency	155.66	83.76
Revenue Expenses in Foreign Currency	-	-
Capital Expenses in Foreign Currency	-	-
Net Exchange Earning	155.66	83.76

The reason for the fall in revenue in foreign currency is due to lower overseas workorders.

Expenditure:

Particulars	31.03.2023	% of Total Revenue	31.03.2022	% of Total Revenue
Total Revenue	5364.33	100	4864.01	100
Expenses
Purchase of stock in trade	0	0	0	0
Changes in inventories	8.29	0.15	0	0
Manpower Expenses	1029.08	19.18	927.46	19.07
Learning Solution Execution Charges	2449.38	45.66	1169.96	24.05
Administrative & Other Expenses	528.98	9.86	614.04	12.62
Finance Cost	39.66	0.74	46.91	0.96
Depreciation	676.58	12.61	316.50	6.51
Profit Before Tax Before Exceptional Items	632.36	11.79	1789.14	36.78
Exceptional Items	98.50	1.84	0.00	0.00
Profit Before Tax After Exceptional Items	730.86	13.62	1789.14	36.78
Provisions for Income Tax	266.31	4.96	502.03	10.32
Other comprehensive income	19.07	0.36	22.93	0.47
Profit After Tax	483.62	9.02	1310.04	26.93

Manpower Expenses: These expenses have increased from Rs. 927.46 lakhs to Rs. 1029.08 lakhs due to the reason that we engaged new employees at BOCW welfare project on job basis for 218 employees from oct., 2021 and it remained in operation for the full year 2022-23. In the previous year 2021-22 the same project was for 166 employees up to Sep. 2021. Higher employees were engaged in the software department due to higher work orders from USA.

Learning Solution Execution Charges: These expenses have increased from Rs. 1169.96 lakhs to Rs. 2449.38 lakhs due to engagements of new employees in new projects mentioned above at point no. B of financial performance.

Administrative &Other Expenses: These have been reduced by Rs. 85.06 lakhs mainly due to the reason that bad debts written off in the previous year 2021-22, amounted to Rs. 118.63 lakhs while in the current year 2022-23 it was Rs. 77.17 lakhs and lower repair & maintenance and administration expenses during the current year.

Interest: The Company relies more on the internal accruals than term loans for financing the IT/ ICT projects awarded by the Government. Interest paid during the year amounted to Rs. 14.86 Lakhs which in the previous year was Rs. 25.96 lakhs. The company has not defaulted on the payment of principal and interest during the year. Finance costs during the current year is lower due to lower OD limits used during the financial year.

Depreciation has increased by Rs. 360.08 lakhs due to the new 525 school project in which capital cost has been Rs. 23 crores.

• Operational Performance:

Share capital: The Company has only one class of shares, namely equity shares. The face value of the shares is Rs. 2/- per share. The paid- up capital of the company is Rs. 15,82,50,376/-

Reserves & Surplus			Fixed Assets :
Particulars	31.03.2023	31.03.2022	Particulars	31.03.2023	31.03.2022
Profit & Loss Account	9131.17	8983.12	Gross Block	8031.90	7655.44
General Reserves	1484.79	1484.79	Accumulated depreciation	3654.36	2977.77
Securities Premium	1352.96	1352.96	Net Fixed Assets	4377.54	4677.67
Capital Reserve	209.22	209.22	Total Revenue/Net Block	1.23	1.04
Other Comprehensive Income	65.48	46.41
Total	12243.62	12076.50	Acc. Dep. as % of Gross Block	45.50	38.90

Investments: The details of investment made by the company are as under:

Particulars	31.03.2023	31.03.2022
Equity Investments in CSL Infomedia Pvt Ltd.	455.00	455.00
Equity Shares	1.99	2.07
Investments in Mutual Funds	—	293.83
Other Investments	19.49	18.73
Total	476.48	769.63

Non-Current &Current Liabilities:

Particulars	31.03.2023	31.03.2022
Long-Term Borrowings	0.00	0.00
Deferred Tax Liabilities (Net)	0.00	0.00
Other Long-Term Liabilities	666.41	773.97
Long-Term Provisions	199.51	163.65
Short-Term Borrowings	104.40	600.72
Trade Payables	114.20	51.16
Other Current Liabilities	1080.81	232.57
Short-Term Provisions	605.66	530.96
Total	2770.99	2353.03

Long Term Loans and Advances & Other Non-Current Assets:

Particulars	31.03.2023	31.03.2022
Long Term Loans and Advances	1219.88	1092.48
Other Non-Current Assets	286.65	231.94
Deferred Tax Assets (Net)	78.73	92.82
Other Financial Assets	129.21	478.21
Total	1714.47	1895.45

Current Assets:

Particulars	31.03.2023	31.03.2022
Trade Receivable	2803.79	3158.56
Cash and Bank Balances	5819.08	4090.96
Short Term Loans and Advances	1395.30	1404.51
Stock in trade	6.95	15.24
Total	10025.12	8669.27

Trade receivables are mainly related to Govt. Schools of Rajasthan. These debtors are considered good and are realizable.

VIII. MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS, INCLUDING NUMBER OF

PEOPLEEMPLOYED:

Development of human resources is essential in every firm. The management continues to place a high priority on recognizing and developing talent within the business with the goal of keeping them as long-term assets and providing additional training to those qualified to handle more responsibility. By presenting workers with new challenges, this improves employee happiness inside the company. The Company places a great premium on developing its workforce and utilizing their efforts and ideas.

The Companys employee count stood at 968 as of March 31, 2023.

IX. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Company is required to give details of significant changes (change of 25% or more as compared to immediately previous financial year) in key sector-specific financial ratios. During the year the Company maintain the specific ratios as follows:

Particulars	2022-2023	2021-2022
Debtors Turnover Ratio	1.71	0.88
Inventory Turnover	0.75	0
Interest Coverage Ratio	50.20	69.90
Current Ratio	5.26	6.13
Debt Equity Ratio	0.00	0.17
Return on Equity ROE	0.03	0.09
Trade Payable Turnover Ratio	1.97	3.61
Net Capital Turnover Ratio	0.63	0.37
Return on Capital Employed	5.42%	13.38
Operating Profit/(Loss) Margin (%)	7.19%	(13.61) %
Net Profit Margin (%)	8.50%	47.96%
Basic EPS (Rs.)	0.59	1.63
Return on net worth	0.03	0.09

The debtor turnover ratio is 1.71 due to the reason that net credit sales increased to Rs. 5107.68 lakhs mainly due to the new 525 Schools project and 398 Schools project, while average receivables reduced to Rs. 2981.18 lakhs. In the previous year net credit sales were Rs. 2682.36 lakhs and average receivables was Rs. 3034.37 lakhs. The company does not generally deal in the purchase and sale of inventory. However, it has utilized some old items in new projects. Interest coverage ratio is 50.20. Profit before tax and interest is only 745.71 lakhs in relation to the interest of Rs. 14.85 lakhs. Profit before tax and interest during the previous year was Rs. 1815.10 lakhs mainly due to recovery of bad debts of Rs. 1815.52 lakhs, in relation to the interest of Rs. 25.97 lakhs. The current ratio is 5.26 at present, which has been reduced by 14% due to the reason that current assets increased by Rs. 1.16 times while current liabilities increased by 1.35 times mainly due to receipt of income of 525 school project in advance for which liability amounts to Rs. 7.94 crores. Return on Equity is 0.03. In the previous year it was 0.09. The reason for the lower ROE in the current year as compared to the previous year is that during the previous year there was a recovery of bad debts due to which ROE in the previous year was higher. The Trade Payable Turnover Ratio is 1.97 and it has been reduced by 45%. Trade payable turnover ratio has improved because of better management of payables.Net capital turnover ratio is 0.63 which has improved by 70% because of increased turnover. Return on capital employed has reduced by 59% because in the previous year recovery of past years bad debts had returned higher ROC ratio.

The operating profit margin ratio is 7.19%. In the previous year it was -13.61%. It has improved mainly due to new projects of525 Schools and 398 Schools. We received a new project of 525 schools which remained in operation from 4^th quarter of the previous year. We have also received one project of 398 schools during the current year. Software and E-governance services have also shown a significant increase of Rs. 99 lakhs.Net profit margin ratio is 8.50%. It was 26.46% in the previous year. It is mainly due to the reason that in the previous financial year 2021-22 the company recovered Rs. 1815.52 lakhs from those debtors which had been considered as bad debts in past years. EPS during the F.Y. 2022-23 is 0.59 while it was 1.63 in previous year which is again due to impact of new projects and recovery from bad debts the provisioned above.

CHANGES IN RETURN ON NET WORTH:

Return on Net Worth is computed as net profit divided by Net Worth. Net Profit has reduced from Rs. 1287.11 lakhs in the previous financial year to Rs. 464.55 Lakhs in the current financial year. Due to this return on net worth is lower by 64% as compared to the previous financial year at 0.09. The Profit during the previous financial year 2021-22 was higher due to recovery of bad debts amounting to 1815.52 lakhs. Bad debts recovered during the current year are only 21.13 lakhs only and it has put major impact on return on net worth.

CAUTIONARY STATEMENT:

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward looking statements within the meaning of applicable securities laws and regulations. Forward–looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized by the Company. Actual results could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements based on any subsequent developments.