IMEC Services Ltd Management Discussions

Industry Structure and Development:

The Company is engaged in providing Management and Consultancy Services and it also in the business of trading of all kinds of goods including agricultural products, metal & metal alloys etc. All these activities are facing competitive, taxation, regulatory headwinds and game changing structural changes. Your Company is gearing up to face such developments and re-engineer its business strategy as required from time to time. Much awaited revival of economic growth and its resultant benefits, early signs of which are being felt, are likely to provide favorable business conditions for the Company.

Indian economy in the financial year 2024-25 successfully navigated through global headwinds showing strong resilience and continues to be one of the fastest-growing major economies in the world. Indias services sector witnessed a swift rebound in FY24 driven by growth in the contact-intensive services sub-sector, which bore the maximum burden of the pandemic. This subsector completely recovered from the pre-pandemic level in Q3 of FY24, driven by the release of pent-up demand, ease of mobility restriction, and near-universal vaccination coverage. Going forward, strong momentum growth and an uptick in the High-Frequency Indicators (HFIs) for the contact-intensive services sector reflect a strong growth opportunity in the next fiscal. PMI services, indicative of service sector activity, has also witnessed a strong rebound in recent months with the retreating of the price pressures of inputs and raw materials.

The Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges. The Indian economy has consolidated its post-Covid recovery with policymakers fiscal and monetary ensuring economic and financial stability. Nonetheless, change is the only constant for a country with high growth aspirations. For the recovery to be sustained there has to be heavy lifting on the domestic front because the environment has become extraordinarily difficult to reach agreements on key global issues such as trade, investment and climate.

The Government of India recognizes the importance of promoting growth in services sectors and provides several incentives in wide variety of sectors such as health care, tourism, education, engineering, communications, transportation, information technology, banking, finance, management, among others.Services sector growth is governed by both domestic and global factors.

Indias services sector growth which was highly volatile and fragile during the last 2 fiscal years, has shown resilience in FY24 driven by the release of pent-up demand, ease of mobility restriction, near-universal vaccination coverage and pre-emptive government interventions. Broad-based recovery has been observed in recent months, with pick up in almost all sub-sectors especially contact intensive services sector, which bore the maximum brunt of the pandemic. This is reflective of an uptick in the performance of various HFIs, reflecting a solid upswing in recent months, hinting at an enhanced presentation of the services sector in the next fiscal. The prospects look bright with improved performance of various sub-sectors like Tourism, Hotel, Real estate, IT-BPM, E-commerce etc. The downside risk, however, lies in the external exogenous factors and bleak economic outlook in Advanced Economies impacting growth prospects of the services sector through trade and other linkages.

The improvement was driven by growth in the ‘Trade, Hotel, Transport, Storage, Communication and Services related to broadcasting sub-sector, which bore the maximum burden of the pandemic. The growth momentum has continued in FY24 as well.

This section lists forward-looking statements that involve risks and uncertainties. Our outlook, risks and concerns are as follows: The economic environment, pricing pressures and decreased employee utilization rates could negatively impact our revenues and operating results. Any inability to manage our growth could disrupt our business, reduce our profitability and adversely impact our ability to implement our growth strategy. Intense competition in the market for technology services could affect our revenues. Our success depends in large part upon our management team and key personnel and our ability to attract and retain them.

New and changing corporate governance and public disclosure requirements add uncertainty to our compliance policies and increase our costs of compliance changes in the policies of the Government of India or political instability may adversely affect economic conditions in India generally, which could impact our business and prospects.

The Company as well as its subsidiary have good internal control systems.The adequacy of which has also been reported by theAuditors of both the Companies in their respective reports as required under the Companies (Auditors Report) Order, 2016 issued by the Government of India. Adequate system of internal control is in place which assures:

? Proper recording and safeguarding of assets.

? Maintaining proper accounting records and reliability of financial information. ? Review the process of identification and management of Business Risks.

Environment Management System:

The Company and its subsidiary are committed to demonstrate continual improvement in our environmental performance in line with corporate values and stakeholders expectations.

The Industrial relations climate of the Company and its subsidiary continues to remain harmonious and cordial with focus on improving productivity quality and safety.

During the period under review, the total income including other income of the Company was stood at Rs. 2875.14 lakhs as against 644.50 Lakh in the previous year. The Company reported net profit of Rs. 2541.95 Lakh as compared to loss of Rs. 3.25 Lakh in the previous year; in its Financial Statement which are prepared in accordance with the provisions of the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India.

Statements in this "Management Discussion Analysis" describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operation include globalization of services, improved business environment for services, reformed regulations in services to enhance performance and create new opportunities, adapting to innovative policies to the growth of services, tax regimes, economic developments in India and other incidental factors. The Company has obtained all market data and other information from sources believed to be reliable or its internal estimates, although its accuracy or completeness cannot be guaranteed.

Cyber security controls are embedded in your Companys Information Technology (IT) environment to ensure protection from risks of unauthorized access, unauthorized changes or unavailability of the systems. Key cyber security controls include secure configuration of enterprise assets and software, malware defenses, periodic vulnerability and penetration testing, controlled access to critical business applications, appropriate segregation of duties and ongoing cyber security awareness programs for users.