HCL Infosystems Ltd Management Discussions

Focus on reduction of outstanding debt and losses

In the FY 24, the Company continued to carry out several actions to recover dues from the customers including resorting to arbitration proceedings, accelerating deliverables of on hand projects to enable collection of past receivables from customers.

In FY 23, we reported revenue from continuing operations of Rs.3,140.98 Lakhs while in FY 24 our revenue is Rs.3,217.34 Lakhs.

Businesses Performance & Highlights

For the purpose of financial reporting in FY 24, the businesses have been arranged as per the following primary business categories:

Business Category	Lines of Business
Distribution Business	Residual annual maintenance contracts related to Enterprise Distribution Customers
System Integration and Solutions	System Integration projects

The numbers provide a line of business-wise view based on management accounts and are not as per reported segments.

System Integration (SI) & Solutions Business

The SI and Solutions business reported revenue of Rs.2,765.77 Lakhs in FY 24 with a focus on project execution and recovery of outstanding receivables from customers.

Though the business was able to realise Rs.4,018.48 Lakhs from customers, our System Integration and Solutions business continued to face delays in customer acceptance and sign-offs on project completion from certain customers resulting in delays in recovering receivables.

As stated earlier, the Company has initiated arbitration proceedings against customers where acceptance, sign-offs and payments are held up for a long time.

Due to multiple legal proceedings and legacy issues, significant effort and cost are being incurred on compliance, legal and legacy matters. Hence our legal cost has increased considerably, and other operational costs including manpower costs continue to remain at the existing level, thereby resulting in operational losses as reflected in the financials.

With our continued focus on arbitrations to recover our dues, the company has some initial wins against some of customers during the year amounting to more than Rs.6,000 Lakhs. However, the customers have got the right to go for further appeal. Some of these customers have already appealed against these awards.

During the year, Rs.23.90 Lakhs has been provided on account of such receivables.

Distribution Business

In FY 24, the Distribution business reported a revenue of Rs.451.57 Lakhs. As stated earlier, as per the direction of the Board the Distribution business has been scaled down. However, certain maintenance contracts of enterprise distribution customers are still under execution.

Other Updates

During the FY 24, the Company has sold one property for a total consideration of Rs.1,500 Lakhs.

As at March 31, 2024, the Group has accumulated losses and its net worth has been fully eroded, the Groups current liabilities exceeded its current assets by Rs.51,748.49 Lakhs as at ended March 31, 2024 (March 31, 2023 - Rs.47,039.65 Lakhs). The losses are primarily as a result of delayed receipts on certain system integration contracts, historical low margin contracts, large litigations and their costs which are at different stages of progression. The management of the Company, is pursuing strategies which include scale down of loss-making businesses like scaling down of the distribution business, sale of certain non-core properties and reduction in outstanding debts. To ensure the necessary financial support for its operations, the Board of Directors of HCL Corporation Private Limited has approved support in the form of corporate guarantees to banks of Rs.33,035 Lakhs and interest free unsecured loans of Rs.35,500 Lakhs to the Company out of total authorized limit of Rs.1,50,000.00 Lakhs. This had been approved by the shareholders of the Company, vide their resolution dated September 14, 2017. Considering the above support, the Companys management and the Board of Directors have a reasonable expectation that the Group will be able to realise its assets and discharge its contractual obligations and liabilities as they fall due in the near future in the normal course of business. Accordingly, the consolidated financial results have been prepared on a going concern basis.

Despite all these efforts to reduce debt & losses, the Company continues to face very challenging financial conditions. As a consequence, the Company cannot invest in any new businesses or in expanding its current operations and consequently, the business of the Company will continue to contract for the foreseeable future.

During the year, the Board of Directors have appointed Mr. Raghu Venkat Chivukula and Mr. Kirti Kumar Dawar as Additional Non-Executive Independent Director, not liable to retire by rotation, for a first term of five consecutive years. The appointment was also approved by the members of the Company. Mr. Kaushik Dutta and Ms. Sangeeta Talwar, Independent and non-executive Director retired after completion of their second term w.e.f. closing hours of 31^st March 2024.

Also, the Board of Directors of the Company have reappointed Dr. Nikhil Sinha as Independent Director in Feb 24, not liable to retire by rotation, for a second term of five consecutive years from 1^st April 2024 to 31^st March 2029. The reappointment was also approved by the members of the Company.

Business Risks & Mitigation Measures

The performance of our businesses can get affected by various risks posed by the external environment. Your

Company continuously revisits the Enterprise Risk Management (ERM) framework and strengthens it to address various risks to our businesses. The risk management programme (ERM) involves risk identification, assessment and risk mitigation planning for strategic, operational and compliance-related risks across business units and functions. Periodic monitoring of risk is done and based on the overall risk performance mitigation action is refined and re-planned. The following table provides a glimpse of some key risks and their mitigation measures which the Company tracks regularly at an overall level (in addition to individual business risks tracked at the individual business level):

Sl. No.	Category	Risk Item	Risk Description	Risk Management Strategy/Update
01	Litigation	Sustainability	• Non-Cooperation of Client in Project sign off and payments.	• The subject is under Arbitration
				• This has shown some positive results
			• Increasing support and finance cost to continuously run the Operations without corresponding collections (BR)	in terms of movement in collections as well as a positive movement in Arbitration.
			• Arbitration increases the additional cost burden
02	Litigation	Operational	• Disputed billed receivables due to Project deliverable issues	• Contesting the matters on the basis of judicial precedents in the cases
				• Strategically handled on case to case basis.
				• Trying to mitigate the issue of delay based on established precedents. In case, the same does not chart out, we plan to bifurcate our claims with the intent to go ahead with clean claims and forego the time barred claims.
				• Provisions are made on a case-to- case basis based on management assessment of the legal cases.
03	Financial	Continuity	• Continuity challenges in “Going Concern” status	• The company continues to derive revenue from ED AMC & SI Projects.
			• As of Mar, 24, Groups net worth has been fully eroded	• Promoter has been supporting the company from time to time by extending loans and Corporate Guarantees.
04	Operational	Financial risk	• Delay in getting the IT Refund	• Subject is under litigation and is likely to take time
05	Financial	Treasury	• Treasury Risk - Continuation of BG issued to various customers.	• Support from the promoter company in the form of loans and Corporate Guarantees.
06	Operational	Human Capital	• Loss of human capital in critical operations	• Management is continuously exploring alternative sources for resources including outsourcing to address the attrition.
Sl. No.	Category	Risk Item	Risk Description	Risk Management Strategy/Update
				• Retention plans are in place for identified critical resources.
07	Operational	Compliances	• Legacy litigations in labour cases in HR practices	• Cases are being addressed to mitigate the risk for the Company.
08	Operational	Compliances	• Risk of compliance gaps due to operational scale down, resultant organizational structural changes and attrition of resources	• Periodic review of processes and alignment with organizational structure and compliance requirements.
				• Risk assessment before delegating the authority.
				• The financial authorities delegated are capped, within the framework of Board approved delegation.
				• Stringent exception approval process and close monitoring of adherence to Delegation of Authority and Segregation of Duty.
09	Operational	Compliance	• Code of conduct (COC) & Ethical issues	• Independent Whistle Blower Mechanism
				• Strict actions on violations
				• Continuous emphasis on the companys Code of conduct policy
				• Annual / Quarterly certification on compliance
				• Periodic Internal audit
				• Quarterly Statutory audit
10	Operational	Compliance	• Risk of shared services agency opting out and continuity issues in the finance & accounting process	• Retention of key resources as part of HCLs Governance team.
				• Management is evaluating alternative agencies.
11	Outsourcing risks	Compliance	• Governance in Finance, Accounts, HR and IT function can get complicated with Multiple outsourced vendors (activity/manpower) dependency	• Documented SOPs
				• Retention of key resources
				• Close supervision
				• Internal audits
				• Statutory audits
12	Operational risks	Financial	• Legacy data is available in older versions of IT applications and requires specialized skills for extracting data (skill set issue due to organization downsizing)	• Data retention requirements for the old legacy application is being reviewed.
				• Alternative methods for data availability shall be reviewed considering the data retention requirements of the older applications.
13	Indirect tax	Compliance	• Authorities claim cannot be foreseen without any time-limit	• The relevant data/documents are generally available in Accounts / IDT repository as well as ERP system.
Sl. No.	Category	Risk Item	Risk Description	Risk Management Strategy/Update
				• Document retention policies in the company aligned with the statutory requirements and for open transactions (legally or otherwise)
				• Required documents are statutorily maintained as per retention policies
				• Wherever required, suitable followups with the parties for necessary documentation / confirmation.
14	Indirect tax	Compliance	• Actual liability could be more due to unsuccessful trials	• The Company has settled high risk cases without payment of interest and penalty under Service tax, Excise and Sales Tax by opting for amnesty schemes, wherever applicable.
			• Insufficient funds to meet unsuccessful litigations
			• Risk arising due to adverse decision of Apex Court on controversial issues involving interpretation of Law
				• Necessary provisions have been made for balance/open high-risk cases in books of account on the basis of Indirect tax team assessment and also corresponding amounts deposited with tax authorities to save the interest.
				• High value litigation matters were opined in the companys favour by expert advocates
				• In most of the cases except where provision has been created, Indirect Tax team has assessed the cases in consultation with the expert advocates and is of the view that, the company has a fairly good chance of success both on factual as well as technical grounds.
				• Examination with the expert consultants and implementation of necessary steps to mitigate the liability, if any, on a case-to-case basis.

Internal Control Systems and their adequacy

The Company has put in place controls commensurate with the size and nature of operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with proper authorization and ensuring compliance with corporate policies.

The company has an internal audit function designed to review the adequacy of internal control checks in the system which covers all significant areas of the Companys Operations such as Accounting and Finance, Procurement, Business Operations, Statutory compliances, IT Processes, Safeguarding of Assets and their protection against unauthorized use, among others. The Internal Audit function

performs the internal audit of the Companys activities based on the internal audit plan, which is reviewed each year and approved by the Board Audit Committee. The Audit Committee reviews the reports submitted by internal auditors. Suggestions for improvements are considered and the Audit Committee follows up on corrective action. Disciplinary action is taken, wherever required, for noncompliance to corporate policies and controls.

Human Resource Development

As of March 31, 2024, the employee strength of the Company and its subsidiaries stood at 176, while on March 31, 2023, it was 179. Besides full-time employees, the Company also engaged with over 62 associates for various short-term projects across different timelines during the year.

DISCLAIMER

Certain statements made in this report relating to the Companys objectives, projections, outlook, estimates, etc. may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such estimates or projections etc., whether expressed or implied. Several factors including but not limited to economic conditions affecting demand and supply, government regulations and taxation, input prices, exchange rate fluctuation, etc., over, which the Company does not have any direct control, could make a significant difference to the Company operations. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on any forward looking statements. The Management Discussion and Analysis (MD&A) should be read in conjunction with the Companys financial statements included herein and the notes thereto. Information provided in this MD&A pertains to HCL Infosystems Limited and its subsidiaries on a consolidated basis unless otherwise stated.

FINANCIAL COMMENTS ON CONSOLIDATED OPERATIONS FOR THE YEAR ENDED MARCH 31, 2024

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

The Management Discussion and Analysis on Financial performance relates to Consolidated Financial statements of the Company and its subsidiaries. This should be read in conjunction with the financial statements and related notes to the consolidated accounts for the year ended March 31, 2024.

RESULTS OF OPERATIONS

Rs.Lakhs

Particulars	FY 24	FY 23
Revenue	3,217.34	3,140.98
Cost of sales	(1,304.46)	(1,867.06)
Gross margin from continuing operations	1,912.88	1,273.92
Employee benefits expense	(2,003.42)	(2,039.04)
Administration, selling and others	(5,494.24)	(6,168.34)
Depreciation and amortization expense	(53.92)	(58.02)
Gain on foreign exchange fluctuation	15.64	98.58
Provisions/liabilities no longer required written back	1,197.46	1,091.13
Operating Profit/(loss) from continuing operations before doubtful debts provision	(4,425.60)	(5,801.77)
Provision for doubtful debts and other current assets	(83.86)	(413.02)
Investment & other Income	1,768.85	1,149.18
Finance costs	(37.35)	(192.70)
Profit/(loss) before exceptional items and tax from continuing operations	(2,777.96)	(5,258.31)
Exceptional Items gain/ (loss)	1196.36	1,383.90
Tax expense	(5.76)	(5.00)
Profit/(loss) after tax from continuing operations	(1,587.36)	(3,879.41)
Other comprehensive income	4.91	39.87
Total comprehensive income/(loss) for the year	(1,582.45)	(3,839.54)

Revenue

Consolidated Revenue was Rs.3,217.34 Lakhs in FY 24 as against Rs.3,140.98 Lakhs in FY 23.

Gross Margin

Gross Margin was Rs.1,912.88 Lakhs in FY 24 as against Rs.1,273.92 Lakhs in FY 23. Gross Margin was higher in FY 24 mainly on account of reduction in cost of sales of Rs.562.60 Lakhs as compared to FY 23.

Employee Benefits Expense

Employee Benefits Expense was Rs.2,003.42 Lakhs in FY 24 as against Rs.2,039.04 Lakhs in FY 23.

Administration, Selling and Other Expenses

Administration, Selling & other expenses were Rs.5,494.24 Lakhs in FY 24 as against Rs.6,168.34 Lakhs in FY 23. The details of administration, selling & other expenses is as follows:

Rs.Lakhs

Particulars	FY 24	FY 23
Legal, Professional and Consultancy Charges*	2998.02	2508.79
Technology Cost	266.92	339.64
Outsourcing cost	130.83	113.53
Rates and Taxes	330.97	272.03
Retainership Expenses	680.32	715.35
Bank Charges	118.97	208.42
Rent	67.97	73.22
Travelling and Conveyance	85.19	103.04
Office Electricity and Water	34.64	54.93
Provision for Input Tax Credit**	384.82	1,311.91
Others	395.59	467.48
Total	5,494.24	6,168.34

* We are pursuing legal options by invoking arbitrations to recover our dues from customers.This is leading to high legal cost as reflected in legal, professional and consultancy expenses (FY 24 - Rs.2,360.91 Lakhs and FY 23 - Rs.1,733.17 Lakhs)

** The unutilised /accumulated GST ITC has been provided for in books of accounts (FY 24- Rs.384.82 Lakhs and FY 23 1,311.91 Lakhs) to the extent Company does not foresee business opportunities in near future wherein amount can be utilised and against amount outstanding for those particular locations where GST registration has been surrendered.

Depreciation

Depreciation was Rs.53.92 Lakhs in FY 24 as against Rs.58.02 Lakhs in FY 23.

Provisions/Liabilities no longer required written back

Provisions/Liabilities no longer required written back were Rs.1,197.46 Lakhs in FY 24 as against Rs.1,091.13 Lakhs in FY 23.

Operating Profit/ (Loss) from continuing operations before Doubtful Debts provision

Operating Profit/ (Loss) from continuing operations before Doubtful Debts provision was Rs.(4,425.60) Lakhs in FY 24 as against Rs.(5,801.77) Lakhs in FY 23. Operating loss is lower in FY 24 mainly on account of reduction in cost of sales of Rs.562.60 Lakhs and GST ITC provision of Rs.927.09 Lakhs as compared to FY 23.

Provision for Doubtful Debts and Other Current Assets

Provisions for doubtful debts and other current assets were Rs.83.86 Lakhs in FY 24 as against Rs.413.02 Lakhs in FY 23. Provision for doubtful debts and other current assets are created due to inordinate delays with certain customer acceptances and payments thereof.

of external borrowings in FY 23. The Company had availed interest free loan from promoter entity as on 31^st March 2024 of Rs.35,500 Lakhs which is the main reason for reduction of finance cost.

Exceptional Items

Gain from Exceptional items was Rs.1,196.36 Lakhs in FY 24 as against Rs.1,383.90 Lakhs in FY 23 (net gain on sale of properties)

Investment & Other Income

Investment & other income was Rs.1,768.85 Lakhs in FY 24 as against Rs.1,149.18 Lakhs in FY 23.

Investment and other income during current year was higher mainly on account of interest income on higher average bank deposits as compared to last year.

Finance Costs

Finance costs was Rs.37.35 Lakhs in FY 24 as against Rs.192.70 Lakhs in FY 23, mainly due to substitution and repayment

Profit/ (Loss) after Tax from continuing operations

Profit/ (Loss) after Tax from continuing operations was Rs.(1,587.36) Lakhs in FY 24 as against Rs.(3,879.41) Lakhs in FY 23.

FY 24 loss was lower primarily due to lower GST ITC provision in FY 24 ( 384.82 Lakhs in FY 24 as against Rs.1,311.91 Lakhs in FY 23), lower cost of sales in FY 24 ( 1,304.46 Lakhs in FY 24 as against Rs.1,867.06 Lakhs in FY 23) and higher investment & other income in FY 24 ( 1,768.85 Lakhs in FY 24 as against Rs.1,149.18 Lakhs in FY 23).

FINANCIAL CONDITION		Rs.Lakhs
Particulars	March 31, 2024	March 31, 2023
ASSETS
Non-current assets	25,035.05	21,858.51
Current assets	20,525.19	28,418.89
Assets held for sale	10.00	313.00
Total	45,570.24	50,590.40
EQUITY AND LIABILITIES
Net worth	(26,931.95)	(25,349.50)
Non-current liabilities	218.51	168.36
Current liabilities	72,283.68	75,771.54
Total	45,570.24	50,590.40

Non-Current Assets

Non-current assets were Rs.25,035.05 Lakhs as at March 31, 2024 as compared to Rs.21,858.51 Lakhs as at March 31, 2023.The details are as follows:

Financial assets were higher in FY 24 mainly on account of increase in Bank deposits Rs.5,493.57 Lakhs offset by decrease in Margin money held with bank Rs.972.47 Lakhs.

Current Assets

Current assets were Rs.20,525.19 Lakhs as at March 31, 2024 as compared to Rs.28,418.89 Lakhs as at March 31, 2023. The details are as follows:

• Inventories were Rs.37.08 Lakhs as at March 31, 2024 as compared to Rs.39.06 Lakhs as at March 31, 2023.

• Financial Assets were Rs.17,693.61 Lakhs as at March 31, 2024 as compared to Rs.25,477.22 Lakhs as at March 31, 2023. The details are as follows:

• Other Current Assets were Rs.2,794.50 Lakhs as at March 31, 2024 as compared to Rs.2,902.61 Lakhs as at March 31, 2023.

* In an Appeal under the Arbitration & Conciliation Act filed by MTNL (in CWG Project), an adhoc amount of Rs.12,020.64 Lakhs (net of TDS Rs.321.09 Lakhs) had been released by the Honble High Court of Delhi to HCL Infotech Limited against a Bank Guarantee which is included in bank balances as at March 31, 2023.

** Bank balances have gone down and accordingly there is increase in bank deposits (refer note given above under the head Non-Current Assets.

Net Worth

The Net-worth of the company was Rs.(26,931.95) Lakhs as at March 31, 2024 as against Rs.(25,349.50) Lakhs as at March 31, 2023.

Non-Current Liabilities

Non-current liabilities were Rs.218.51 Lakhs as at March 31, 2024 as compared to Rs.168.36 Lakhs as at March 31, 2023. Net Borrowings

Net borrowings were Rs.14,016.97 Lakhs as at March 31, 2024 as compared to Rs.11,879.91 Lakhs as at March 31, 2023.

Particulars	March 31, 2024	March 31, 2023
Borrowings	35,500.00	35.500.84
Less : Cash, Bank & Investments	21.483.03	23,620.93
Net Borrowings	14,016.97	11,879.91

Current Liabilities

Current liabilities were Rs.72,283.68 Lakhs as at March 31, 2024 as compared to Rs.75,771.54 Lakhs as at March 31,2023.The details are as follows:

• Financial Liabilities (iii) Other Financial Liabilities

includes Employee benefits payable, Deposits, etc.

• Other Current Liabilities includes amount received on account of MTNL CWG project (refer note given above under head current assets), deferred revenue, advances received from customers, statutory dues payable, etc.

CASH FLOW STATEMENT

A summary of cash statement is given below:

Particulars	FY 24	FY 23
Opening balance of cash and cash equivalents	1,974.54	2,188.00
Net cash flow from operating activities	(3,617.90)	7,356.24
Net cash flow from investing activities	3,077.94	(1,520.16)
Net cash flow from financing activities	(37.34)	(6,188.50)
Effect of foreign exchange on cash and cash equivalents	10.10	138.96
Cash and cash equivalents at the end of the year	1,407.34	1,974.54

Cash flow from operations

In FY 24, the Company used Rs.3,617.90 Lakhs for operations as against Rs.7,356.24 Lakhs generated in FY 23.

Particulars	FY 24	FY 23
Operating Profit/(loss) before changes in operating assets and liabilities	(4,990.84)	(5,381.00)
Changes in operating assets and liabilities	426.27	11,602.87
Cash generated/(used) from operations	(4,564.57)	6,221.87
Net tax refund (including interest)	946.67	1,134.37
Net cash generated/(used) in operating activities	(3,617.90)	7,356.24

Cash flow from investing activities

In FY 24, the Company generated Rs.3,077.94 Lakhs from investing activities as compared to cash used of Rs.1,520.16 Lakhs in FY 23. The cash generation in FY 24 was mainly comprised of proceeds from sale of current investments Rs.17,815.32 Lakhs, Interest income Rs.1,291.48 Lakhs, movement in margin money account Rs.118.38 Lakhs and Proceeds from sale of properties, plant and equipment Rs.0.61 Lakh offset by purchase of current investments Rs.15,799.21 Lakhs, Investment in Bank Deposits Rs.329.65 Lakhs, purchase of property, plant and equipment Rs.18.99 Lakhs as against FY 23 mainly comprised of purchase of current investments Rs.29,099.55 Lakhs, Investment in Bank Deposits Rs.11,227.02 Lakhs, purchase of property, plant and equipment Rs.42.58 Lakhs offset by proceeds from sale of current investments Rs.34,762.39 Lakhs, proceeds from sale of properties Rs.3,369.10 Lakhs, Interest income Rs.476.27

Lakhs and movement in margin money account Rs.241.23 Lakhs.

Cash flow from financing activities

In FY 24, the Company used Rs.37.34 Lakhs for financing activities as against Rs.6,188.50 Lakhs in FY 23 (mainly for loan repayment and interest payment).

SEGMENT PERFORMANCE Segment Revenue

(Rs.Lakhs)

Particulars	FY 24	FY 23
- Hardware Products and Solutions	2,765.77	2,574.36
- Distribution	451.57	566.62
Less : Intersegment Eliminations	-	-
Total	3,217.34	3,140.98

Hardware Products and Solutions

Hardware Products & Solution business comprise of large system integration projects to government customers.

Segment revenue in FY 24 was Rs.2,765.77 Lakhs as against Rs.2,574.36 Lakhs in FY 23.

Segment Results (Profit/(loss) before interest and tax) in FY 24 was Rs.(2,831.92) Lakhs as against Rs.(3,252.98) Lakhs in FY 23.

Segment assets were Rs.23,469.84 Lakhs as at March 31, 2024 as against Rs.24,895.09 Lakhs as at March 31, 2023 and Segment liabilities were Rs.33,324.94 Lakhs as at March 31, 2024 as against Rs.35,141.97 Lakhs as at March 31, 2023.

Distribution

The distribution segment consists of Residual annual maintenance contracts related to Enterprise Distribution Customer. This business has been gradually scaled down starting from FY 21.

Segment revenue in FY 24 was Rs.451.57 Lakhs as against Rs.566.62 Lakhs in FY 23. Revenue primarily includes Enterprise Distribution AMC revenue.

Segment Results (Profit/(loss) before interest and tax) in FY 24 was Rs.96.27 Lakhs as against Rs.179.08 Lakhs in FY 23.

Segment assets were Rs.10,484.03 Lakhs as at March 31, 2024 as against Rs.10,546.06 Lakhs as at March 31, 2023 and Segment liabilities were Rs.3,166.68 Lakhs as at March 31, 2024 as against Rs.3,018.49 Lakhs as at March 31, 2023.

Learning

Segment revenue in FY 24 and FY 23 was Nil.

Segment Results (Profit/(Loss) before interest and tax) in FY 24 was Rs.22.08 Lakhs as against Rs.(7.10) Lakhs in FY 23.

Segment assets were Rs.79.02 Lakhs as at March 31, 2024 as against Rs.90.78 Lakhs as at March 31,2023 and Segment liabilities were Rs.45.41 Lakhs as at March 31,2024 as against Rs.77.99 Lakhs as at March 31, 2023.

KEY FINANCIAL RATIOS:

Particulars	FY 24	FY 23
Debtors Turnover (Days)	209.74	295.16
Inventory Turnover (Days)	4.21	4.53
Current Ratio (times)	0.28	0.38
Operating Profit Margin (%)	-137.55%	-184.70%
Net Profit Margin (%)	-49.34%	-123.48%

• Debtors Turnover days were at 209.74 as at March 31, 2024 as against 295.16 as at March 31, 2023 due to lower trade receivable in FY 24.

• Inventory Turnover days were 4.21 as at March 31,2024 as against 4.53 as at March 31, 2023 mainly due to lower inventory in FY 24.

• Debt Equity Ratio was negative as at March 31, 2024 and March 31, 2023 due to negative Net-worth.

• Operating Profit Margin was at (137.55%) as at March 31, 2024 as against (184.70%) as at March 31, 2023. (refer note given above under head Operating Profit/ (Loss) from continuing operations before Doubtful Debts provision).

• Interest coverage was negative on account of negative EBIT in FY24 & FY23.

• Net Profit Margin was (49.34%) for FY24 as against (123.48%) for FY23. (refer note given above under head Profit/ (Loss) after Tax from continuing operations).