GACM Technologies Ltd-DVR Management Discussions

1.GLOBAL ECONOMIC OUTLOOK, INDIAN ECONOMY OUTLOOK AND OVERVIEW OF MARKETS AND INDUSTRY STRUCTURE:

Global economic outlook

Economic Recovery: Most regions are expected to continue recovering from the COVID-19 pandemic, although the pace of recovery varies. Developed economies are likely to see moderate growth, while emerging markets may experience faster expansion.

Inflationary Pressures: Inflation remains a concern in many parts of the world, driven by supply chain disruptions, rising energy prices, and wage pressures. Central banks are expected to carefully manage monetary policies to mitigate inflationary risks.

Trade and Geopolitical Uncertainties: Ongoing trade tensions and geopolitical uncertainties could impact global trade flows and economic stability. Shifts in global supply chains and trade policies may create challenges for businesses.

Technological Advancements: Rapid advancements in technology, including AI, block chain, and renewable energy technologies, are likely to influence productivity growth and economic transformation across sectors.

Indian economy outlook

Indias economic outlook for the financial year 2023-24 is characterized by the following trends:

Growth Prospects: India is expected to see a recovery in economic growth, supported by government reforms aimed at infrastructure development, digitalization, and improving ease of doing business. However, the pace of recovery may vary across sectors.

Inflation and Monetary Policy: Inflationary pressures remain a concern in India, influenced by global commodity prices and domestic factors. The Reserve Bank of India (RBI) is expected to maintain a vigilant stance on inflation while supporting growth through accommodative monetary policies.

Fiscal Policy and Structural Reforms: Government initiatives aimed at boosting investment, consumption, and employment are crucial for sustaining economic momentum. Structural reforms in sectors such as agriculture, manufacturing, and services are expected to drive long-term growth.

Sectoral Dynamics: Key sectors such as IT & technology, healthcare, renewable energy, and financial services are likely to lead growth, with increasing focus on sustainability and innovation.

Industry Overview:

The insurance technology (insurtech) sector continues to evolve rapidly, driven by technological innovation and changing consumer preferences:

Technological Integration: Insurtech companies are increasingly adopting AI, machine learning, IoT, and blockchain to enhance operational efficiency, improve risk assessment accuracy, and personalize customer experiences.

Market Dynamics: The insurance landscape is witnessing a shift towards digital-first approaches, with a growing emphasis on data analytics, real-time pricing, and customized insurance products. Regulatory frameworks are adapting to accommodate these innovations.

Consumer Behavior: There is a rising demand for seamless digital experiences, transparent pricing, and flexible insurance solutions among consumers. Insurtech firms are responding by offering innovative products and services tailored to diverse customer needs.

Company Strategy and Positioning:

GACM Technologies Limited is strategically positioned within this evolving landscape, focusing on:

•Innovation: Continued development of technology-driven solutions to streamline insurance processes, enhance customer engagement, and improve risk management capabilities.

•Market Expansion: Targeting expansion into new geographical markets and demographic segments through digital channels and strategic partnerships with traditional insurers and technology providers.

•Customer-Centric Approach: Emphasizing personalized customer experiences, transparency, and responsiveness to consumer preferences in product design and service delivery.

•Regulatory Compliance: Ensuring compliance with evolving regulatory requirements while leveraging technology to maintain operational efficiency and competitiveness.

In conclusion, GACM Technologies Limited is poised to leverage global and Indian economic trends in FY 2023-24, focusing on innovation, market expansion, and customer-centric strategies to drive growth and enhance its position in the dynamic insurtech sector

FINANCIAL, MANAGEMENT AND SOFTWARE CONSULTANCY INDUSTRY:

Your company is primarily engaged in the business of Financial, Management, Business, and other

ancillary consultancy services.

Although the industrys growth potential is immense, given the countrys large population and increasing financial literacy, challenges such as financial inclusion and regulatory compliance remain, and addressing them will be crucial to sustaining the industrys growth trajectory.

The Indian financial, Management and Software consultancy services industry is vast and diverse consisting of private and Public Companies, banks, NBFCs, the insurance-related sector and the new AI- based technologies increasing finance penetration. The opportunity in India is very high and the future growth prospects of the consultancy field and software development service industry in India are very bright.

2.FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE/SEGMENT-WISE OR PRODUCT- WISE PERFORMANCE:

The Company provide Financial, Management and Software Consultancy Services which is its core activity. The performance of the Company is as under:

The Company growth considering the past few years performance has been satisfactory. The Company is striving further to consolidate its position in the market. Your Company reported a total Income of Rs. 724.15/- (In Lakhs) for the Financial Year ended March 31, 2024, as against Rs. 963.82/- (In Lakhs) during the previous Financial Year. The Company recorded a net profit of Rs. 110.45/- (In Lakhs) as against the net loss of Rs. (121.63) (In Lakhs) during the previous Financial Year.

3.OPPORTUNITY & THREATS:

The increased thrust on digitalization in the economy, with projects like Digital India, will further provide a growth catalyst for the demand and consumption of discount brokerage services.

A.OPPORTUNITIES:

Growing Demand for Financial Technology (FinTech): The increasing reliance on technology in the financial sector presents a significant growth opportunity. Offering innovative FinTech solutions can attract new clients and revenue streams.

Digital Transformation: Many industries are undergoing digital transformation efforts. Positioning your consultancy as an expert in helping businesses navigate this transformation can lead to substantial contracts.

Global Expansion: Consider the potential for expanding your consultancys services internationally. Entering new markets can open up a broader client base and revenue opportunities.

Data Analytics and AI: Leveraging data analytics and artificial intelligence can provide more sophisticated financial insights and solutions.

Partnerships and Alliances: Collaborations with software providers, financial institutions, or other consulting firms can broaden your service portfolio and market reach.

Your company has increased its offerings by acquisition of Software and added several clients.

Government push to increase securities market outreach across India and increase in products offering for different types of investors

Acceptance of outsourcing as a suitable business model.

Using technology to reduce transaction costs and improve compliance.

B.THREATS:

Competition: The consulting industry, especially in software and finance, is highly competitive. New entrants and established competitors can pose a threat to market share.

Cybersecurity Risks: As a technology-focused company, the Company is vulnerable to cybersecurity threats. A breach can damage a Companys reputation and financial stability.

Economic Downturns: Economic recessions can lead to reduced corporate spending on consultancy services, affecting your revenue.

Talent Retention: Attracting and retaining skilled consultants and software developers can be challenging. Losing key personnel can hinder project delivery and client satisfaction.

Client Dependence: Relying heavily on a small number of clients can be risky. Losing a major client could have a severe impact on revenue.

Technological Obsolescence: Rapid advancements in technology mean that your software and tools could become outdated quickly. Staying current is essential to delivering value to clients.

Unexpected external events or crises in the face of lack of preparedness and absence of Business Continuity plans.

4.CHALLENGES, RISK AND CONCERN:

There are several unique challenges, risks, and concerns, The Company adopts suitable business strategies

to counter these challenges and the company faces other normal business challenges of market competition

in its business and needs to continuously seek attractive growth opportunities.

Challenges:

Rapid Technological Changes: Discuss how the fast-paced nature of the software industry poses challenges in terms of staying updated with the latest technologies and ensuring that the companys offerings remain competitive.

Market Saturation: Discuss the potential for market saturation in specific consultancy niches and the need to diversify services or target new industries.

Risks:

Client Dependency: Highlight any significant client concentration risks and how the loss of a major client could impact the companys financial stability.

Economic Downturn: Explain how economic downturns, such as recessions, can impact demand for software and financial consulting services as clients may cut back on discretionary spending.

Project Risks: Discuss the inherent risks associated with project-based work, such as cost overruns, scope changes, and delays, and how these can affect profitability.

Competition: Address the competitive landscape and how the company plans to differentiate itself in a crowded marketplace.

Concerns:

Data Privacy and Security: Elaborate on the growing concern among clients and stakeholders about data privacy and security, and how the company is addressing these concerns through policies and practices.

Client Trust: Discuss the importance of building and maintaining client trust, especially in the financial sector, and how the company monitors client satisfaction and addresses any issues promptly.

Strategic Planning: Address concerns related to the companys long-term strategic planning, including diversification strategies, expansion into new markets, or mergers and acquisitions.

5.INTERNAL AUDIT AND INTERNAL CONTROL SYSTEMS:

As mentioned in sub point E of Point No 11 in Directors Report.

6.RISK MANAGEMENT:

At GACM Technologies Limited, the process of risk identification is guided by the Companys objectives, external environment, and stakeholders, among others. Once the risks are identified, it devises plans outlining mitigation actions for the assigned risks. The objective of its risk management framework is to ensure that various risks are identified, measured, and mitigated and that policies, procedures and standards are established to address these risks and ensure a systematic response in the case of crystallization of such risks.

TYPES OF RISK:

A.FRAUD RISK:

We may face fraud risks such as loan fraud, identity theft, internal fraud, and cyber fraud. These risks pose the threat of financial loss and reputation loss, resulting from intentional deception or misrepresentation by individuals or entities, internally or externally.

Mitigation.

Your Company maintain a zero-tolerance policy towards fraud, actively raising awareness and implementing robust controls to prevent any occurrence.

B.REGULATORY RISK:

Any non-compliance with regulations could result in monetary losses and has the capability to damage the Companys reputation.

Mitigation

The Company ensures strict adherence to applicable rules and regulations owing to a strong internal control framework.

C.OPERATIONAL RISK:

This risk is about the failure of processes and controls in business operations, which can also have an adverse impact on the business continuity, reputation, and profitability of the Company. The Company has a strong operating model well-documented Standard Operating Procedures and a good reporting framework. This ensures that operational risks are minimized at any given point of time.

Mitigation

A robust control and assurance mechanism has been implemented to identify and mitigate operational risks.

7.INFORMATION TECHNOLOGY RISK:

Your Company recognizes the susceptibility of its information technology systems to security threats such as computer viruses, ransomware and malware infection, phishing attacks, security breaches, data leakage, and website hacking, to mitigate these risks, the company installed Several security measures like firewall implementation in the office, moving to 16-digit complex passwords and have been undertaken to secure the IT Infrastructure from cyber security threats. Security tools have been implemented like a secure e-mail gateway to assist in data leak prevention.

8.HUMAN RESOURCES:

At GACM Technologies Limited, we have well-defined policies to maintain effective human resources in the organization. These include;

Reward & Recognition to encourage our employees to deliver at their best

Statutory Compliance & Regulations for full-time employees, and contractual employees.

Equal Opportunity Policy to give fair opportunities to all in the organization.

Intellectual capital is one of the key resources of the Company to ensure business sustainability and growth. The Company has an experienced and talented pool of employees who play a key role in enhancing business efficiency, devising strategies, setting up systems and evolving the business in line

with its growth aspirations. The Company provides regular skill and personnel development training to enhance employee productivity.

The Company believes in meritocracy and performance is rewarded. To support fast-paced growth, the Company has been actively hiring highly competent individuals, who have strong domain knowledge. To keep up with the changing environment training is provided to all the employees on products, processes, and systems is tested periodically.

As part of Company processes, the Company follows a robust leadership potential assessment and leadership development process. These processes identify and groom leaders for the future and also enable succession planning for critical positions in the Company. The Company has a strong culture of innovation and challenging the status Quo. The business leaders and employees in the Company are encouraged to think like entrepreneurs and create value for all stakeholders. The Company endeavors to provide a safe, conducive and productive work environment. As on March 31, 2023, the Company had five employees.

Our Company also places a strong emphasis on offering career-enhancement opportunities to its employees. With a focus on promotions, role enhancement, and job enrichment, GACM Technologies Limited, ensures that individuals can continually grow and advance in their careers within the organization. This commitment for professional development shall act as a magnet for ambitious and talented individuals who are seeking an environment that nurtures their growth.

9.KEY FINANCIAL RATIOS:

Sr. No.	Particulars of Ratio	F.Y. 31.3.2024	F.Y. 31.3.2023	Explanation for change in Ratios
1.	Debtors Turnover	-	-	Not Applicable
2.	Inventory Turnover	-	-	Not Applicable
3.	Interest Coverage Ratio	386.45	50.34	Interest coverage Ratio improved compared to previous year due to increase in EBIT compared to previous year.
4.	Debt Equity Ratio	1.12	-2.57	Not Applicable since change is not more than 25 %
5.	Current Ratio	4.04	2.62	Not Applicable since change is not more than 25 %
6.	Operating Profit Ratio (%)	33.85%	5.52%	Increase in operating profit ratio is due to increase in revenue from operations compared to previous year
7.	Net Profit Ratio (%)	15.25%	-12.62%	Increase in net profit ratio is due to increase in revenue from net profit compared to previous
8.	Return on Investment (%)	7.46	- 9.92	Increase in return on investment (assets) is due to increase in assets from return on compared to previous year
9.	Return on Capital Employed (%)	14.31	-4.95	Increase in return on capital employed is due to increase in debt from return on compared to previous year

10.DETAILS PERTAINING TO THE NET-WORTH OF THE COMPANY.

In Lakhs

Particulars	31.03.2024 (In Rs.)	31.03.2023 (In Rs.)	Explanation for change in Net-worth
Net-worth	702.23	(669.45)	During the year the Net-worth of the Company was turned positive due to increase in net profit compared to losses incurred during previous year and further issuance of preferential equity at premium.

11.CAUTIONARY NOTE:

Statements in the Management Discussion and Analysis outlining the Companys This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the managements plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as ‘anticipate, ‘estimate, expects, ‘projects, ‘intends, ‘plans, ‘believes and words of similar substance in connection with any discussion of future performance. Estimates, perceptions and expectations may be forward-looking statements within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed herein above due to certain factors which may be beyond the control of the Company.

We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Place : Hyderabad	For and On Behalf of the Board of Directors
Date : September 06, 2024	Sd/-	Sd/-
	Mr. Jonna Venkata Tirupati Rao	Mr. Anil Thakur
	Managing Director	Chairman
	DIN: 07125471	DIN:08945434