empower india ltd share price Management discussions

Annexure II

Industry Overview

The importance of technology in our modern world means that the technology industry is a true force to be reckoned with. The sheer size of the industry makes it one of the dominant sectors in the global economy, and the rapid growth and rate of change within the industry make it a central player in developing business standards and regulations. The impact of technology goes far beyond the core tech industry, though. While there are myriad opportunities directly related to digital product development or service delivery, there are countless more opportunities opening up around the world as technology influences every business and every industry vertical.

The Indian tech sector has been gaining prominence in terms of its contribution to the overall economy, employment, innovation, and resilience.

As per the "Nasscom" Strategic Review Report, 2023, Indias technology industry has exhibited continued revenue growth and is expected to grow double digits in constant currency terms in FY2023E. It is estimated that the Indian tech industry revenue will grow by $245 billion, in reported currency with a cross-currency impact of 2 per cent. The sector is on track to hit $500 billion by 2030.

The proportion of digital tech in the overall technology services revenue has been increasing year after year and propelled by forward-looking policies, strong governance, talent and digital trust to ensure accessibility, privacy, security, and reliability, the Tech Industry in India is on track to accelerate growth in near future.

Financial Performance Overview

(All amounts in Lakhs)

Particulars	Standalone		Consolidated
	2023	2022	2023	2022
Total Income	975.56	636.41	975.56	636.41
Less: Total Expenses excluding Depreciation and tax	953.47	645.15	955.53	645.20
Profit before Depreciation & Tax	22.09	(8.74)	20.03	(8.78)
Less: Depreciation	-	-	-	-
Less: Exceptional Items	-	-	-	-
Profit/(Loss)before Tax	22.09	(8.74)	20.03	(8.78)
Less: Tax
i. Current Tax	4.05	-	4.05	-
ii. Deferred Tax	-	-	-	-
Profit/(Loss)after tax	18.03	(8.74)	15.98	(8.78)

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013. Further, the financial performance during the year under reference has been improved in terms of sales. Even though there has been a increase in the turnover, during financial year ended March 31, 2023, the Company has reported Standalone and Consolidated Profit before Depreciation & Tax of Rs. 22.09 Lacs and Rs 20.03 Lacs respectively.

Financial Ratios:

Following are ratios for the current financial year and their comparison with preceding financial year,

Particulars	Ratio		% of Change
	March 31, 2023	March 31, 2022
Current Ratio	1.169	1.33	-12.21
Debt Equity Ratio	0.00	0.00	0.00
Debt Service coverage ratio	0.00	0.00	0.00
Return on Equity Ratio	0.00	0.00	0.00
Inventory Turnover Ratio	0.00	0.00	0.00
Trade Receivables turnover ratio	0.00	0.00	0.00
Trade payables turnover ratio	2.12	1.60	32.54
Net capital turnover ratio	12.52	4.80	160.50
Net profit ratio	0.01	-0.01	-234.61
Return on Capital employed	0.00	0.00	-352.53
Return on investment	0.03	-0.01	-304.08

OPPORTUNITIES & THREATS

The Company is likely to benefit from the emerging trends in digitalization and innovation in IT products. The Company is well positioned to take advantage of the market opportunity with its strong product portfolio which endeavours to enable organizations to leverage the innovations in various technologies and the Company has strategized new offerings pertaining to this.

There is ample growth opportunity for the company in the IT related product services and business market. The company looks forward to technologically advanced innovations for mitigating its business threats. The company consistently invests in future technologies along with getting accredited by the leading industry technology analysts.

The various threats that the Company addresses include uncertain global economic conditions; changes in fiscal, economic or political conditions in India and the currency risks; increasing competition; changing technologies and regulatory changes in the industry in which the company operates.

RISKS AND CONCERNS

The Company is exposed to a number of risks such as economic, regulatory, taxation and environmental risks as well as sectoral investment outlook. Some risks that may arise in the normal course of business and could impact their ability to address future developments, comprise credit risk, liquidity risk, execution risk, business partner risk, demand risk, counterparty risk, regulatory risk, commodity inflation risk and market risk. The Companys strategy of focusing on key products and geographica l segments is exposed to economic and market conditions. The Company continues to implement robust risk management policies that set-out the tolerance for risk management and the requisite mitigation plans.

ADEQUACY OF INTERNAL CONTROLS

The Company has a proper and adequate system of internal controls to ensure that all the assets are safeguarded, protected against loss from unauthorised use or disposition, and that transactions are authorised, recorded, and reported correctly. The Company conducts audits of various departments based on an annual audit plan through an independent internal auditor and reports significant observations along with Action Taken Reports to the Audit Committee from time to time. The views of the statutory auditors are also considered to ascertain the adequacy of the internal control system.

HUMAN RESOURCES:

EIL works continuously for maintaining healthy working relationship with the workers and other staff members. The underlying principle is that workers and staff at all levels are equally instrumental for attaining the Companys goals. The various functions are continuously strengthened by appropriate recruitment. The training programs are regularly conducted to update their skills and apprise them of latest techniques. The low attrition rate signifies healthy working relationship of Employer and Employee. EIL strives to maintain and promote harmony and coordination amongst Workers, Staff and Members of the Senior Management.

CAUTIONARY STATEMENT:

The Management Discussion and Analysis describe Companys projections, expectations or predictions and are forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand and supply and price conditions in domestic and international market, changes in Government Regulations, tax regimes, economic developments, and other related and incidental factors.

By Order of the Board For Empower India Limited

Sd/-

Sumit Subhash Pawar Non-Executive Director & Chairman

DIN:09779498

Sd/-

Rajgopalan Srinivasa Iyengar Managing Director & CFO

DIN:00016496

Date: 05^th September, 2023

Place: Mumbai