Kashyap Tele-Medicines Ltd Management Discussions

Kashyap Tele-Medicines Limited is into the business of providing Information Technology Related Services and software sales. The Company is Non-Government Public Limited Company incorporated in India having its registered office in Mumbai, Maharashtra and Corporate office in Ahmedabad, Gujarat and listed at BSE Limited.

1. INDUSTRY STRUCTURE AND DEVELOPMENT:

In recent years, the role of technology has shifted from cost optimization and process automation to business model transformation and revenue growth. Organizations are embracing digital transformation to achieve these more ambitious goals, developing and deploying digital solutions faster, more efficiently and with better outcomes. Investments in digital, analytics, cloud, internet of things (IoT), cybersecurity, artificial intelligence and other emerging technologies have been growing exponentially in nearly every large enterprise.

Nasscom Annual Enterprise & Tech Services CXO Survey 2024 indicates stronger growth momentum for Current Year 2024 with under-stressed sectors of BFSI, telecom, media and entertainment and hi-tech leading digital spending. Gen AI remains a key priority for over the next 6-12 Months.

For technology providers, Financial Year 2025 growth expectations look stranger as 79% of the providers expect higher growth compared to last year, Hiring growth is expected to be positive with 80% of the providers planning higher level of hiring compared to Financial Year 2024.

Amid global geo-political tension leading to a more cautious approach for investments and delayed decision making, Indias technology industry revenue (including hardware) is estimated to reach $254 Bn (3.8% y-o-y growth) in Financial Year 2024, an addition of over $9 Bn over last year. Exports are poised to touch the $200 Bn mark growing at 3.3% y-o-y, and the Domestic technology sector is expected to cross $54 Bn, growing at 5.9% y-o-y.

Despite the tough market conditions, the industry continues to be a net hirer, adding 60K employees, taking the total employee base to 5.43 Mn (1.1% y-o-y growth). Europe, APAC, Manufacturing, Retail and Healthcare emerge as the key growth markets for the industry.

Source: https://community.nasscom.in/communities/nasscom-insights/rewiring-growth-changing-tech-landscape-strategic-review-2024

2. OPPORTUNITIES:

The Company is fully embracing the digital transformation journey, recognizing the potential benefits it brings in terms of operational efficiency, market expansion, and customer satisfaction. By leveraging emerging trends in digitalization and focusing on contextual knowledge, the Company aims to stay ahead in the Information and Technology sector.

The emphasis on providing customized solutions that offer seamless digital experiences reflects a customer-centric approach, which is crucial in todays competitive landscape. Additionally, the collaboration between Business and IT leaders signifies a holistic approach towards creating value from technology investments, ensuring that business objectives are aligned with technological capabilities.

Overall, the Companys strategy is well-aligned with the evolving digital landscape, emphasizing innovation, flexibility, and customer-centricity to drive growth and ensure business continuity.

3. FINANCIAL CONDITION AND OPERATIONAL PERFORMANCE: a. Share Capital

The Company presently have one class of shares. The Authorized Share Capital is 15,00,00,000 Equity shares of Rs. 1/- each, constituting to Rs. 15,00,00,000/- and Paid up Capital is 4,77,22,000 Equity shares of Rs. 1/- each constituting to Rs. 4,77,22,000/-.

There were no increase in the issued, subscribed and paid up capital of the Company during the year under review.

The total shareholder funds were Rs. 63.98 Lakhs as at 31^st March, 2024 against Rs. 66.98 Lakhs as of the previous year ended 31^st March, 2023 with a decrease of 4.48% on Year to Year basis.

The profit/loss after tax (PAT) for the year ended 31^st March, 2024 stands at Rs. (3.00) Lakhs.

As per the Financial Statements during the Financial Year 2023-2024, the Company does not have any fixed assets.

The Return on Net worth (RONW) for the year ended 31^st March, 2024 stood at (4.69%)

The aggregate revenue from operations of the Company stood at Rs. 19.20 Lakhs for the year ended 31^st March, 2024. The above revenue was derived from income from projects and services & Software sales with a contribution of Rs. 3.90 Lakhs and Rs. 15.30 Lakhs respectively.

The Company achieved Earnings before Interest, Depreciation and Tax (EBIDTA) of Rs. (2.96) Lakhs against Profit of Rs. 0.42 Lakhs as of the previous year.

Earnings per share (EPS) for the year ended 31^st March, 2024 is Rs. (0.006) against Earning per share of Rs. 0.001 in previous year.

4. SEGMENT WISE / PRODUCT WISE PERFORMANCE:

As the Company is operating in single segment, product wise / segment wise disclosure of performance is not required to be made.

5. RISKS, CONCERNS AND THREATS:

Your Company being in the IT Business is exposed to a wide variety of connected and interconnected risks. Operating in an uncertain and ever-changing environment, there are various types of risks that threaten the existence of a Company like Strategic Risk, Technology Risk, Business Risk, Finance Risk, Environment Risk, Personnel Risk, Operational Risk, Reputation Risk, Regulatory Risk, Geography Risk, Competition Risk, Obsolescence Risk, cyber security risk etc. Your Company aims at identifying and assessing risk at appropriate time to maximize shareholders value by achieving appropriate trade-off between risk & return. The Company has established robust Risk Management framework through which risk are assessed and managed at various levels.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has aligned its current systems of internal financial control with the requirement of Section 134(5)(e) of the Companies Act, 2013. It includes policies and procedures adopted by the Company for ensuring orderly and efficient conduct of its business, thereby covering not only the controls pertaining to financial statements but also include strategic and operational controls pervasive across the entire business. The Company has an Internal Control System which commensurate with the size, scale and complexity of its 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, executing transactions with proper authorization and ensuring compliance with corporate policies. To maintain its objectivity and independence, the Internal Auditor reports to the Chairman of the Audit Committee of the Board. The Internal Auditor monitors and evaluates the efficacy and adequacy of the internal control system in the Company, its compliance with operating systems, accounting procedures and policies of the Company. They also periodically evaluate and test the efficacy and adequacy of internal controls. The internal control systems also aim to strengthen the overall assurance practices, processes and controls. Significant audit observations and follow up actions thereon, if any, are reported to the Audit Committee. The Internal Control systems are designed to provide assurances on an ongoing basis so that the business operations function efficiently and ensure that applicable laws, rules, regulations and policies of the Company are followed and their liability of financial reporting is safeguarded. The Statutory Auditors of the Company have audited the financial statements forming part of this Annual Report and have issued an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting.

7. BUSINESS OUTLOOK:

The Indian Information Technology/ Software industry is a global powerhouse today, and its impact on India has been incomparable. It has contributed immensely in positioning the country as a preferred investment destination amongst global investors and creating huge job opportunities in India, as well as in the USA, Europe and other parts of the world. In the last decade, the industry has grown many folds in revenue terms, and relative share to Indias GDP is around 7% in Financial Year 2023-24. India is the top most off-shoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Indian IT/Software industry offers cost-effectiveness, great quality, high reliability, speedy deliveries and, above all, the use of state-of-the-art technologies globally.

The Indian IT/ ITeS industry has a leading position globally and has been progressively contributing to the growth of exports and creation of employment opportunities. Indias IT-BPM industry (excluding e-commerce) is expected to reach at USD 254 billion, including exports of around 200 USD Billion in Financial Year 2023-2024 (E). The IT-ITeS Industry has also created large employment opportunities and is estimated to employ 5.43 million professionals, an addition of 60,000 people over Financial Year 2022-2023 (E). Women employees account for 36% share in total industry employee base.

The Ministry of Electronics and Information Technology is coordinating strategic activities, promoting skill development programmes, enhancing infrastructure capabilities and supporting R&D for Indias leadership position in IT and IT-enabled Services.

Source: https://www.meity.gov.in/content/software-and-services-sector

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company follows the philosophy of achieving mutually beneficial and all-inclusive growth & thus values its human resources as its biggest asset. The employees are provided a fair environment supported by transparent policies to foster their personal growth along with attainment of corporate objectives. It encourages all employees to strike a perfect work life balance. The Company would like to place on record, sincere appreciation for the valuable contribution and support of all its employees towards the performance and growth of the Company. Your Company is happy to have a management team comprising of professionals with a proven track record. There have been no material developments in Human Resources during the Financial Year 2022-2023. The Company continues to remain focused and sensitive to the role of human resources in optimizing results in all its areas of working and its industrial relations also continue to be cordial.

9. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

Details of Key Financial Ratios and any change in Return on Net Worth of the Company including explanations therefore are given below:

The major reason for variation in Current Ratio and Net Capital Turnover Ratio is mainly due to increased payables for expenses.

The major reason for change in profitability and margin related ratios is mainly due to the reason that the profit / (loss) for the current year is impacted due to penalty charged by BSE Limited and increased employee benefit expenses.

* The numbers in brackets represent that the numbers are in negative.