ecs biztech ltd Management discussions

INDUSTRIAL STRUCTURE AND DEVELOPMENT:

The Company is in business of IT Products and services. In this business space, technology is fast becoming a key differentiator moving ahead from its role of a Business enabler. Your Company has partnership with "STT Global Data Centres India Private Limited" to provide secure, scalable and eco-friendly IT and Cloud solutions and constantly trying to provide high class and reliable colocation service secure your critical data. However, Competition in the industry is continuously increasing and management is taking steps to sustain in the challenging high-tech market.

OVERVIEW:

The financial statements have been prepared in compliance with the requirement of the Companies Act, 2013 and Generally Accepted Accounting Principles (GAAP) and Accounting standards of the India. The management of the company accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present the company’s state of affairs and profit for the year.

FACTORS IMPACTING OUR RESULTS OF OPERATIONS

The following factors could cause actual results to differ materially from our expectations:

1. Overall global economy;

2. Changes in fiscal, economic or political conditions in India;

3. Company’s ability to successfully implement its strategy and its growth and expansion plans;

4. Increasing competition;

5. Cyber Fraud, Cyber Security, Data Privacy & Regulations OPPORTUNITIES AND THREATS:

COMPETITION:

Competition in the domestic as well as international market has intensified and forced the players to adopt aggressive marketing strategy and promotional campaigns to capture and protect their market shares, The Company has the plans to penetrate better into the world market, especially through the customer retention and business development in the regions which have not been tapped. Sharp fluctuations in value of the Indian Rupee and the rising inventory prices have put pressure on the profitability of the Company.

SEGMENT WISE AND PRODUCT WISE PERFORMANCE:

Company is operating in Single Segment i.e. IT product and Services.

OUTLOOK:

The profit margins in the industry are under pressure. However, the Company has taken remedial measures. The Company is confident to meet the challenges with its strength in marketing network, its strategic planning, Research & Development, productivity, improvement and cost reduction exercise.

RISK AND CONCERN:

Our risks are evaluated under various categories like Market Risk, Financial Risk, Business Risk, Operational Risk, Regulatory & Compliance Risk and Cyber Security, Data Privacy & Regulations. Some of the identified risk are such as Tax rates, Larger working capital requirement, Natural calamity as well as man-made disasters may lead to disruption to the business/customer service especially during COVID19 situations, Possible fraudulent activities through criminal hacking, Market penetration, new product roadmaps, emerging technology adoptions and regulatory obligations etc.

The risk management function is integral to the company and its objectives includes ensuring that critical risk are identified continuously, monitored and managed effectively in order to protect the company’s business. However, the changes in the tax laws, Government policies and regulatory requirement might affect the company’s business. Uncontrolled variation in price of input materials could impact the company’s profitability to the extent that the same are not absorbed by the market through price increase and/or could have a negative impact on the demand in the market. The management has already taken initiatives in advance for mitigating the above-mentioned risk and concerns/challenges. The company has taken major initiatives like strong marketing efforts, focus on cost reduction through inventory management techniques, introduction of new products and manufacturing process without compromising quality of products and retain talented employees etc.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company places significant emphasis and efforts on the internal control systems. There have been no changes in the Company’s disclosure controls or internal controls over financial reporting during FY2020-21 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. Also, the company has an Internal Auditing system in place handled by a reputed Chartered Accounting firm. The findings are discussed with the process owners and corrective action is taken as necessary and the reports are presented to the Audit Committee.

INITIATIVES BY THE COMPANY:

The Company has taken the following initiatives:

Concentration on reduction of costs by undertaking specific exercise in different fields. Concentration in Increase of Shareholders Wealth and Profit of the Company. The Company is quite confident that the overall productivity, profitability would improve in a sustainable manner, as a result of this strategy.

HUMAN RESOURCE:

Your Company firmly believes that employees are the most valuable assets and key players of business success and sustained growth. Various employee benefits, recreational and team building efforts are made to enhance employee skills, motivation as also to foster team spirit. Industrial relations were cordial throughout the year.

HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION:

Your Company has complied with all the applicable environmental laws and labour laws. The Company has been complying with the relevant laws and has taking all necessary measures to protect the environment.

CAUTIONARY STATEMENT

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.

Date: 03.09.2021	For and on behalf of Board of Directors of
Place: Ahmedabad	ECS Biztech Limited
	Sd/-
	Vijay M. Mandora
	Managing Director
	DIN: 00328792