Enser Communications Ltd Management Discussions

Annexure IV

1. Industry Structure and Developments: Service Industry in general:

The Indian BPM market has witnessed remarkable growth in recent years, becoming one of the worlds largest outsourcing destinations. According to NASSCOM, the Indian BPM (Business Process Management) sectors revenue is estimated to reach US$ 47.4 billion in FY 2023, showcasing a significant expansion.

Technology and business services across the world are moving to digital transformation, which is shaping the Indian IT-BPM industry in a huge way. The IT- BPM services revenue reached US$ 194 billion in FY21. India ‘s IT and business services market is projected to reach US$ 19.93 billion by 2025. Indias technology industry is on track to double its revenue to US$ 500 billion by 2030.

The BPM industrys penetration into various verticals, including finance, healthcare, IT, and e- commerce, has been steadily increasing. According to an estimate, Indian BPM industry is projected to grow at a CAGR of over 7.5% between 2021 and 2025. The sector provides employment to a large share of Indian population.

Hence considering above positive outlook the management of the Company is optimistic and equally geared to capitalize on the coming opportunities.

2. Business Overview:

We are engaged in the business of providing Business Process Management Services including customer interaction management and provides services to mid-size and large corporates to fulfil their Customer Acquisition needs in various industries such as Insurance, E- commerce, QSR, Edtech, Hospitality and Travel and among others, where we deliver tailor-made solutions to meet the unique requirements of our valued clients. Your Company operates out of four cities: Mumbai, Bangalore, Gurgaon and Jaipur where Mumbai location held for head office and Gurgaon location held for Corporate Office and vital business operations.

Our Mission:

- Learn and Develop new Technologies & Applications in our process

- Conversion Metrics for our Customers

- Best possible solutions with a cost effective and scalable business model

- Build and Develop a Team of Dedicated Professionals with Ownership and Integrity

- Collaborate with Enterprises to Co-create outstanding Customer Experience for their Customers

- Leverage Analytics and Review Mechanisms to achieve Benchmark KPIs

Our Pillars of Excellence:

Process Excellence in

• Customer Services

Customer Acquisition Services

• IT Infrastructure Service

• Data Management Services

Operational Excellence through

• Leverage Technology to create reliability and consistency

• Template for every process that is Audited and improved regularly

• Identifying Best Practices and cross pollinate systematically

Hire and Develop Domain Experts

Governance Excellence through

• Competent Board of Directors

ISO 27001:2013 and ISO 9001:2015 Certifications

NASSCOM Certified Member

• Compliance with stringent statutory norms

POSH Committee to ensure fair and diverse workplace

• Annual Operation Planning meets and Monthly Engagement Reviews Weekly Internal Reviews with Process Managers and Team Leaders

Our Services:

Customer Acquisition Services	Customer Acquisition is a strategic process aimed at converting potential leads into satisfied customers. Customer acquisition refers to the process of bringing in new potential customers or clients for a business.
	With Enser one can set their growing support team for success to resolve issues faster, review current customer support metrics, and improve phone support operations across the board.
	Under Customer acquisition services our company provides/performs the following services/ activities:
	• Development & Integration with CRM Systems
	Data Analytics and customer profiling
	• Lead Generation
	• Outbound calling campaigns
	• Scripting and Training
	Multi-Channel Engagement
	• Quality Assurance
	• Customer Segmentation
	• Real Time Data Integration
	• MIS
	• Promotions
	• Tech based Solutions
	• Customer Educations
	• Cross Selling and Up Selling
	• Customer Support
Customer Services	Customer service is about looking after the customers needs. It involves providing professional helpful, and high-quality service and assistance before, during, and after the customers requirements are fulfilled. Essentially, its about meeting the needs and desires of any customer.
	Our services focus on customer support, ensuring we meet the client or customer needs effectively.
	A Web chat service is an application, software, or website-based service that customer service representatives use to communicate with consumers. This is more of consumers coming and chatting on the web site we use these features to offer information to our customers on products like insurance, educations courses etc. among some of our existing customers.
IT	Tech enabled solutions-Payment reminders/ collections/ subscription collections:
Infrastructure Services	Amongst the latest tool for helping customers for making timely subscription or payments for products and services such as: Insurance premium, OTT Platform payments, cable television and other such services we do for our customers.
	Tech enabled infrastructure development:
	Tech enable infra helps customers to find ready to use IT and Telecom ready infrastructure to go live with their operations within a short notice period. Thereby, reducing go to market time, loss of time and resources.
Data Management Services	We Provide Data Management services to various sector but mainly we provide to Government sector. We assist in the authentication process of the individual claims made by the respective persons.

3. OPPORTUNITIES AND THREATS, SWOT ANALYSIS

Your Company has been continuously striving to optimize its costs to offer a value for money proposition to its clients. Our focus is on quality of service delivered, long-term relationships, stable and sustainable operations, best practices for suppliers and customer centricity.

The growth of the Company is subject to opportunities and threats as are applicable to the industry from time to time.

Your Companys Competitive Edge is:

- Quality Assurances and Standards

- Agility to align with the needs of Customers

- Customization and Flexibility

- Excellent Infrastructure and Technology

- Client Support and Service

- Integration Capabilities

- Strong Partnerships

Companys Business Strategy:

Your Company aims to be amongst the best in class in BPM Industry Partner for Lead Conversion. Clients aspiring for high number of qualified walk-ins from Digital Marketing leads can depend on Enser to offer a superior experience to their prospects and a high ROI on their marketing spend.

The Company will achieve this by being ahead of the curve in terms of Conversational AI implementation for Sales processes, hiring and training capable Employees and ensuring a robust server, networking and physical Infrastructure.

Financially, the Company will offer value for money pricing and optimize its costs to achieve reasonable PAT margins with a low debt capital structure.

Your Companys SWOT Analysis is:

Strengths	Infrastructure – Investment in high quality servers, software and other infrastructure is intended to ensure close to Zero Downtime for Clients. This provides reliability to them.
	Quality – Your Company is ISO 9001:2015, ISO 27001:2013 certified and Certified member of NASSCOM and adheres to well defined processes. This gives comfort to clients about processes as well as data confidentiality.
	Integrity Integrity is intrinsic to the organisation. Everyone from Senior Management to Middle Management to Frontline Staff is aware that Client trust is extremely important. No violation will be tolerated.
	Domain Experience The Company specializes in Sales processes and has credibility in the market due to presence of more than a decade.
	Client-Centric Approach - Focusing on delivering tangible business outcomes and value to clients. Building strong, long-term relationships with clients through successful implementations and ongoing support.
Weakness	Business dependency on the top Management team.
	Enser is an MSME Company and smaller in size compared to some competitors.
	Focus on reasonable margins, can lead to lower number of new client acquisitions.
Opportunities	Your Company can explore new markets and industries, providing opportunities for growth and diversification.
	Embracing emerging technologies such as artificial intelligence and automation can enhance efficiency and competitiveness.
	Continuous improvement in processes can lead to increased efficiency and cost-effectiveness, attracting more clients.
Threats	Intense competition in the BPM industry may lead to price wars and margin pressures. Rapid technological advancements may render certain BPM services obsolete, requiring adaptation and investment in new technologies.

4. SEGMENT WISE OR PRODUCT WISE PERFORMANCE

Your Company is into single segment i.e. the business of -. providing Business Process Management Services and hence there is no requirement of providing details of Segment wise or Product wise performance.

5. OUTLOOK

Your Company is looking to focus its energies on higher margins business areas like CRM, Application development and integration services as well as the development of Insurance tech platforms for markets in India as well as outside India. As a rapidly growing player in the ITBPM arena, Your Company is building competencies and making investments across several areas to sustain our growth journey.

First, the management is developing strong value propositions along new service lines. Second, wherever possible and necessary, ECL is reinventing conventional service lines. Third, we are allocating more funding towards game changing and disruptive technologies. Fourth, the management is recalibrating its staffing and retraining needs.

This is especially important in an environment where revenue growth is getting decoupled from headcount, and it is becoming possible for smaller and smarter teams to bring in greater revenue. Finally, ECL is continuously scanning the globe for partnerships and alliances with specialists, niche players and platforms to develop a more holistic service offering for clients.

6. RISK AND CONCERNS

Risk management is an integral part of the business. We have outlined the principal risks and uncertainties that could adversely impact the functioning of the Company through their effect on operating performance, financial performance, management performance and overall sustainability. Your Company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off. There is also a proactive risk management system to identify and mitigate potential risks while capitalising on opportunities for growth. These include, but are not limited to:

a. Competition Risk New competitors may enter the markets the Company operates in. Likewise, current competitors could decide to focus more on these markets, and thereby intensify the competition. They could also offer new technologies or offer a different service model or offer similar services at reduced prices. Such developments could harm the Companys business and results of operations.

b. Key People Risk

Our business is critically dependent on the quality of our workforce. Failure to attract, retain and motivate key employees would impair the Companys ability to offer the right quality of service to clients.

c. Business Disruption or IT System Failure Risk

Business disruption following a major outage event or a failure of our IT systems could cause a disruption in the Companys services, thereby reducing client confidence.

d. Legal and Regulatory Risk

Failure to comply with legal or regulatory requirements could impact the Companys reputation and financial position.

e. Technological Risk intelligence and robotics, Withadvancementoftechnology,artificial the work volume for people-skill driven services might decrease or reshape significantly, and the Company might not be able to make transition to newer client demands quickly.

7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal Control Systems has been designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordances with managements authorization and properly recorded and accounting records are adequate for preparation of Financial statements and other Financial information. Your Company has a strong and independent internal audit function which carries out regular internal audits to test the design, operations, adequacy and effectiveness of its internal control processes and also to suggest improvements and upgrades to the management.

Your Company had appointed M/s. P N Khanna & Co., Chartered Accountants, as the Internal Auditor of the Company, pursuant to Section 138 of the Companies Act, 2013. The Internal Audit is successfully conducted by an independent professional firm on regular basis and they have set up a robust internal control systems corresponding with its size and nature of business. The Internal Audit Report for the Financial Year 2023-2024 was placed before the AuditCommittee and the Board for review and approval. The Audit Committee also regularly reviews the reports of the Statutory Auditors, and Internal Auditors. The Audit Committee reviews the adequacy and effectiveness of theCompanys internal control environment and monitors the implementation of the recommendations.

8. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

	Amount (in lakhs)
Particulars	FY 2023-24	FY 2022-23
Revenue from Operations	4607.57	2540.82
Other Income	22.06	50.15
Total Income	4629.63	2590.97
Equipments and IT Service Expenses	177.98	162.02
Employee Benefit Expense	2656.55	1623.82
Financial Costs	104.26	59.77
Depreciation and Amortization Expense	76.59	71.19
Other Expenses	902.43	493.62
Total Expenses	3,917.81	2410.42
Profit before Exceptional items	711.82	180.55
Less: Exceptional items	-	-
Net Profit Before Tax	711.82	180.55
Less: Current Tax	194.07	55.29
Less: Previous year adjustment of	-	-
Income Tax
Less: Deferred Tax	(9.52)	(9.61)
Profit for the Period	527.27	134.87
Earnings per share Basic	8.39	2.24
Earnings per share Diluted	8.39	2.24

During the year under review, the Company achieved a turnover of Rs. 4629.63/- Lakhs as against Rs. 2590.97/-Lakhs for previous year whereas, the profit of the Company for the period under review are Rs. 527.27/- Lakhs as compared to profit of the company Rs. 134.87/- Lakhs in the previous year.

9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCE/ INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company continues to lay emphasis on developing and facilitating optimum human performance. Performance management was the key word for the Company this year. There is an active FUN team that creates opportunities for enjoyment even while working. We believe in timely compliance of all statutory payments especially related to employees. Our POSH Committee ensures a safe environment, dignity and respect for all our employees irrespective of gender, religion, caste etc. Your Company has always strived to be Progressive Employer by continuously focusing on creating an engaging atmosphere for our Employees to learn, contribute and grow.

10. DISCLOSURE OF ACCOUNTING TREATMENT

The Company has not adopted any treatment different from that prescribed in an Accounting Standards.

CHIEF FINANCIAL OFFICER CERTIFICATION

To,

The Board of Directors,

Enser Communications Limited

(formerly Enser Communications Private Limited) 5th Floor 501-506, Arihant Aura,

Turbhe, Navi Mumbai Sanpada,

Thane, Maharashtra-400703

Subject: Certificate in accordance with Regulation 33(2) (a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

We hereby certify that:

We have reviewed financial statements and the cash flow statement for the quarter and year ended March 31, 2024 and that to the best of their knowledge and belief:

• These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

• These statements together present a true and fair view of the listed entitys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during the year which are fraudulent, illegal or in violation of the listed entitys code of conduct.

We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies. We have indicated to the auditors and the Audit committee:

• that there were no significant changes in internal control over financial reporting during the year;

• that there were no significant changes in accounting policies during the year; and

• that there were no instances of significant fraud of which therein, of the management or an employee having a significant system over financial reporting.

For and on behalf of the Board of

For and on behalf of the Board of

Enser Communications Limited

(formerly Enser Communications Private Limited)

Sd/-

Dimple Thakur

Chief Financial Officer