Ksolves India Ltd Management Discussions

The management discussion and analysis present the industry overview, opportunities and threats, initiatives by the Company and overall strategy of becoming a market driven Service Provider of a range of offerings. The company is very optimistic of capturing a substantial share of global and domestic market in the midst of the threats faced due to the liberalization and increased competition from well established companies from India and abroad.

1. INDUSTRY OVERVIEW

IT Services and Products

Global technology spending decelerated in 2023, increasing by a modest 4.4% year-over-year. While software and IT services fueled growth, hardware and device sales contracted. The NASSCOM Strategic Review 2024 underscores these trends.

Digital transformation and infrastructure upgrades remain key global priorities, with cloud and cybersecurity taking center stage. The rising adoption of automation, AI (including responsible AI and generative AI), and emerging technologies like edge computing and 5G is creating new opportunities for the services sector.

Global IT service providers are well-positioned to assist enterprises across industries in navigating challenges through a comprehensive suite of digital transformation services. These offerings span consulting, application development, maintenance, R&D, infrastructure management, and business process optimization.

The IT services industry is poised for accelerated growth in fiscal year 2025, driven by client investments in AI, generative AI, cost reduction, operational efficiency, digital transformation, and talent development.

Indias IT services sector is projected to expand by 2% in fiscal year 2024, with infrastructure management, cloud-based testing, and consulting leading the charge. Investments in cloud, IT modernization, digital customer experiences, and digital engineering are on the rise.

AI has gained significant traction, with a 270% surge in industry collaborations, product launches, and enterprise AI strategies. While generative AI is a top priority for IT service providers, the evolving regulatory landscape will likely shape adoption patterns, with widespread implementation anticipated in late 2024 and beyond. Governments worldwide are focusing on data protection, cybersecurity, and responsible AI practices.

Engineering Research and Development (ER&D) services are expected to grow by 7.4% year-over-year, according to the NASSCOM Report. Fueled by digital transformation and the AI resurgence, ER&D firms are intensifying their focus on digital engineering, resulting in the creation of novel products and services. Data analytics is driving service innovation and personalized product development. Digital testing, virtual simulations, and increased software reliance are accelerating time-to-market and reducing R&D costs.

Enterprises are prioritizing cost reduction and operational efficiency, with spending gradually recovering in fiscal year 2025. A concurrent emphasis on sustainability and resilience is driving globalization efforts to leverage cost advantages, talent pools, and innovation hubs.

While the Financial Services, Hi-Tech, and Telecom sectors remain subdued, Healthcare and Automotive industries are showing promise. Consumer goods and manufacturing clients are adopting a cautious approach due to cost pressures and weak consumer demand.

ESG considerations have become a business imperative, driving innovation, efficiency, and risk mitigation. Companies expect service providers to adhere to global ESG standards and support their ESG goals in areas like climate change, diversity, governance, and cybersecurity.

The domestic hardware market is projected to grow modestly, reaching $17.7 billion in fiscal year 2024 from $17.4 billion in the previous year. Overall hardware revenue is estimated at $18.2 billion for the fiscal year.

India

Indian IT Industry in 2023-24: A Year of Consolidation and Growth

The Indian IT industry in 2023-24 exhibited a trend of consolidation amidst continued growth. While the pace of expansion was slower compared to the previous years boom, the sector demonstrated resilience in the face of global economic challenges.

Key Highlights:

• Slower Growth: The industry witnessed a moderated growth rate compared to the previous year, primarily due to global economic uncertainties and a shift in client priorities.

• Focus on Digital Transformation: Despite the slowdown, investments in digital transformation remained robust. Cloud computing, cybersecurity, and data analytics continued to be key areas of focus.

• Talent Crunch: The demand for skilled IT professionals persisted, leading to intense competition for talent and increased attrition rates.

• Cost Optimization: Companies prioritized cost management and operational efficiency to navigate challenging market conditions.

• Emerging Technologies: Investments in emerging technologies like AI, machine learning, and IoT gained momentum, positioning India as a global innovation hub.

Challenges Faced:

• Global Economic Uncertainty: The industry was impacted by global economic headwinds, leading to cautious spending by clients.

• Geopolitical Tensions: Geopolitical factors influenced business decisions and created uncertainties for IT companies.

• Talent Acquisition and Retention: The talent shortage remained a significant challenge, impacting project delivery and costs

Overall Outlook:

While 2023-24 was a year of adjustment for the Indian IT industry, the long-term prospects remain positive. The countrys strong digital foundation, large talent pool, and cost-effective services position it as a preferred destination for global IT outsourcing. As the global economy stabilizes, the industry is expected to regain momentum and continue its growth trajectory.

2. SUMMARY OF OUR BUSINESS

Ksolves India Limited is an ISO certified software services and product company offering solutions that enables client organizations to rapidly develop powerful applications addressing their strategic business needs. The applications created by us enable organizations to drive digital transformation and competitive differentiation. This may include automation of routine business functions, making them faster, easier and more accurate and increasing the channels or devices through which these functions can be performed. Our Company is basically engaged in software development, enterprise solutions and consulting, providing a range of Information Technology ("IT") solutions to companies across sectors such as Real Estate, E-commerce, Finance, Telecom and Healthcare etc. We design, develop and maintain software systems and solutions, create new applications and enhance the functionality of our customers existing software products.

Ksolves endeavours to bring together creativity and knowledge with positive business strategy to furnish the requirements of diverse customers with an inclusive range of products and services which are comprehensive and cost effective so that the client can focus on their core-competencies to improve or expand their businesses. Ksolves have worked for numerous industries, realized their true potential and scale to global recognition such as for Real Estate - delivered customized solutions like integrating virtual tours of properties, IDX/MLS integration etc. that have helped them serve their customers better; Education and Learning - conceptualizing and delivering a knowledge network to building creative subject specific apps; E-commerce and Retail - delivering customized solutions such as setting up ecommerce stores using requirement appropriate store platforms, delivering innovative supply management solutions and modernizing ERP solutions etc. which improve traffic, retain existing customers and grow their businesses to greater milestones; Social Media and Networking - providing our expertise to help social media and networking firms in maximizing their deliverables across channels; Logistics - devising customized operations management systems to providing decision support and analytics through data consolidation, data warehousing etc.; Healthcare - providing engineering solutions for efficient patients record management to dishing out customized software requirements; Tech & Software - providing product engineering and development services to big data and business analytics related services; Life Sciences - providing them with top-of-the-line customized solutions that can help them reach their goals better and faster; CRM - providing Salesforce expertise for tracking every sales activity-each lead, customer and opportunity and be up-to-date with latest information and insights that help for better management of customer relationship; Travel - successfully developed a location based on-demand taxi app with full FAC payment integration, Google Map integration and Twilio integration for sending messages to users.

Demand environment improving further with Ksolves getting emplaned as official Vendor for many large IT Firms. Supply-side constraints are seen in highly-skilled areas such as big data/ Machine learning and attrition is kept under control by offering good salary hikes/ variables for billability period and flexible work from home environment.

For delivering the best services, company has also stepped into different platforms for tech partnerships like Salesforce, Magento (Adobe), and Odoo. The company is expanding the sales staff and delivery offices across the globe. Domestically, the company currently has set up additional place of business at Indore, India with good infrastructure facilities. Now the company has its domestic offices at Noida and Indore. Talent acquisition drive is ongoing for Sales and service deliveries. The company is constantly adopting new technologies, employing senior resources. This set up has been formed, so the customer can have direct contact with the Company and service professionals. The company is moving from traditional to hot/modern technologies like Big Data, Machine learning, AI and Salesforce.

Covid pandemic has increased the acceptance of global delivery model, with smooth transition into virtual framework of client management, project development and delivery. Ksolves sees hybrid model of "work from anywhere" and "On premise working" as optimal and targeted work model for next 2 years and will closely align with Industry direction on this. With the reduction of the pandemic risk, the company expects an increase in travel cost and facility expense but it will remain well below pre-COVID level.

Ksolves will focus on strengthening Indore location to support two location strategy for de-risking operations. It will continue to hire workforce at the bottom of the pyramid and focus on re-skilling and training exercise to address cost and demand dynamics. Existing strategy of "just in time Lateral hiring" post project wins will continue. Any short-term gap specially in niche technologies, will continue to be filed by trusted long term consultants who work as professional contractors on hourly billing basis.

Quick Facts

Alliances & Partnershipsts

We have matured partnerships with top names like Salesforce, Odoo, Adobe and RedHat. We share a strong symbiotic relation with our partners and we create innovative solutions for our customers.

High End and Niche Technology Verticals

Ksolves has got a strong presence and highly skilled workforce in high end and niche technology verticals like Big Data, Machine Learning, Artificial Intelligence, Salesforce, Odoo, DevOps, Penetration Testing, etc. We are committed to invest heavily in developing new skills into these and the emerging technology verticals and be ahead of the competition.

During the FY 2023-24,97.5% of our revenue was from the services division and 2.5% was from our products division.

The year ended successfully for the company adding on to customers, No. of projects, employee head count crossed 500 employees, revenue crossed Rs. 100 cr.

3. OPPORTUNITIES AND THREATS

We have long-standing relationships with our customers across the world. This is, in part, due to the high criticality of our product & services and technical knowhow to many of our customers business needs. We establish long-term relationships with our customers for multi-layered engagement with various departments and divisions of the customers organizations. Our broad range of product and services offerings helps us to cross-sell to our existing customers as well as to acquire new customers. We also conduct regular senior management reviews with our key customers to engage with them for feedback and future opportunities.

We combine our comprehensive range of product and service offerings with industry-specific expertise to provide tailored solutions to our customers across business verticals, industries and geographies. Our commitment to customer satisfaction enables us to strengthen our relationships.

We offer direct support to our customers and channel partners through a large global support and implementation team resulting in a quick turn-around and resolution to issues. Specialized center of excellence teams have been set up for certain products and solutions to guide and train both implementation partners and customers on best practices for effective and quick implementations.

Experienced Promoters and Management Expertise

Our Company is promoted by Mr. Ratan Kumar Srivastava and Mrs. Deepali Verma who individually have more than 20 years of experience respectively. Having gained experience and worked with technology companies like Tech Mahindra, Birlasoft (India) Limited, HSBC and Persistent Systems, Mr. Ratan Kumar Srivastava ideated the incorporation of Ksolves in the year 2014. He was aided by Mrs. Deepali Verma who has vast experience in setting up business and handling overall finances further, our board of directors are supported by a team of well experienced and qualified personnel. We believe that our management teams experience and their understanding of the IT industry, specifically in the Real Estate, E-commerce, Finance, Telecom and Healthcare industry will enable us to continue to take advantage of both current and future market opportunities. It is also expected to help us in addressing and mitigating various risks inherent in our business.

Diversified revenue from multiple geographies

Our Company have diversified revenue from multiple geographical reach across the world and 100% of revenue are generated from exports sales from various countries. As an IT products & service company, our presence in multiple geographies as service provider not only helps us in expanding our client base but also helps us by keeping ourselves in tune with the latest technological advancements world-wide.

Focused on driving innovation

We are focused on driving innovation and adopting solutions in line with rapidly evolving technological trends. Our inherent culture of innovation has enabled us to develop a track record of product innovation, expand the range of our offerings and improve the delivery of our products and services. We have a dedicated team of skilled individuals with technical background and domain expertise in each of our industry verticals with a focus on evolving technologies. These teams follow a structured innovation and solutions development process and work with delivery functions to identify the key concerns of our customers and generate solutions, ideas and concepts to address such concerns.

We believe that our culture of innovation has enabled us to grow and retain our customer relationships and successfully achieve process and productivity improvement for our customers. This has enabled us to continuously expand and diversify our product and service offerings, as well as to maintain our competitiveness.

Diversified business across several industrial verticals

Our customers have used our platform to build diverse applications in many sectors. As of March 31, 2024, applications and software were built on our platform in different industrial verticals. We possess multi-vertical industry expertise and target a broad spectrum of services in our business and product offerings. This has helped us build solution frameworks which are enriched with domain knowledge from the relevant sector and subject matter experts across several industries. These frameworks have been built on our platform and are scalable and adaptable based on a particular customers unique and constantly evolving business needs.

Scalable Business Model

Our business model is order driven, and comprises of optimum utilization of our existing resources, developing linkages with expertise of our development team and achieving consequent customer satisfaction. We believe that this business model has proved successful and scalable for us in the last few financial years. We can scale by venturing into different sectors where technologically advanced management is required and also by providing better products and solutions in the sectors that we already have presence in. The business scale generation is basically due to the development of new markets both international and domestic, innovation in the product range and by maintaining the consistent quality of the products and services.

Risk Identification And Mitigation

Retaining top talent and individuals with specialized skills presents challenges for the company. Higher attrition rates can impact the overall cost of operations and harm the companys reputation. Nevertheless, these challenges have been addressed through our people-focused approach and HR policies. The company successfully managed attrition last year by implementing a range of measures.

The implementation of partial work from home arrangements presents potential challenges regarding productivity loss and associated risks in cybersecurity and data protection. The company is actively monitoring productivity issues and security concerns that may arise from the remote work setup. Appropriate policies are in effect to adapt to the evolving business and work models. The company has established systems and processes to address these challenges effectively. Additionally, continuous employee communication and change management efforts are in place to ensure a smooth transition and ongoing adaptation to the new work environment.

Businesses facing challenges and cost pressures may seek to negotiate for more competitive pricing, which can put additional strain on profit margins. Moreover, meeting customer demand within shorter lead times can result in higher resource costs, impacting profitability. Delayed fulfillment of orders can also lead to revenue loss. To mitigate these risks, cost optimization strategies such as cloud deployment, increased automation, offshoring, and adjusting the resource profile may need to be implemented, in consultation with the customer. The business will provide demand forecasts to facilitate proactive supply planning and ensure adequate resource fulfillment. Additionally, the company is leveraging a Hire-Train-Deploy model to address high-volume and new-age skill requirements, while also prioritizing the reskilling and upskilling of existing employees.

There are inherent risks associated with data theft, non-compliance with information security requirements, and cyber attacks. Unauthorized use or disclosure of employee, company, or customer data can result in breaches of customer contracts, regulatory fines/penalties, and damage to the companys reputation. To address these risks, the company has implemented data protection controls such as encryption and data leakage prevention, as well as deployed cyber security tools like firewalls and antivirus software to prevent cyber attacks and data exfiltration. User awareness and supplier risk management practices are rigorously enforced to ensure effective implementation of data security controls. The security controls are continuously monitored and thoroughly assessed. Additionally, the company has implemented mandatory trainings and comprehensive awareness measures throughout the employee life cycle to promote a strong security culture.

Our competition

We experience intense competition in our services and see a rapidly-changing marketplace with new competitors arising in new technology areas who are focused on agility, flexibility and innovation.

We typically compete with other players, global technology service providers in response to requests for proposals. Clients often cite our industry expertise, comprehensive end to-end service capability and solutions, ability to scale, digital capabilities, established platforms, superior quality and process execution, distributed agile global delivery model, experienced management team, talented professionals and track record as reasons for awarding us contracts.

In future, we expect intensified competition. In particular, we expect increased competition from firms that offer technology-based solutions to business problems and from firms incumbent in those market segments. Additionally, insourcing of technology services by the technology departments of our clients is another ongoing competitive threat.

4. BUSINESS RISKS AND CONCERNS

• Unfavourable geo political and economic events may result in currency volatility and reduced spend on technology products and services, which may adversely impact demand of our offerings and in turn our growth and profitability.

• Talent Supply and Work From Office dynamics for junior employees and the dynamic demand of the talented resources and quick turn around time as per expectations of client could be a risk that can impact our reputation and cost structures.

• Cyberattacks that breach our network may adversely affect and impact our operations or result in significant client SLA impact or penalties

• After the outbreak of COVID-19 and the resulting work from home (WFH) situation,

a. Employee productivity has been a major risk and challenge for the entire IT industry. However, our approach of emerging ahead always to implement the business continuity plan and seamless optimized delivery model has really helped to overcome this challenge.

b. Retention of people has been a major challenge for the entire IT industry. We were able to keep our Attrition Rate below 20% with the help of our people focused approach and our HR policies. But even this level of attrition continues to be a risk to the business model.

5. OUR BUSINESS STRATEGY

Also aiming to maintain hyper revenue growth path by focusing on non-linear and scalable levers while maintaining Industry leading profitability. Continued focus on increasing revenue per employee by upgrading technology mix of projects as well higher billing projects.

Ksolves recently had Saleforce partnership status upgraded to Salesforce Summit (Platinum) Tier Partner. This will help in deal momentum in key business domain of Saleforce in coming quarters.

Initiated to establish a wholly-owned subsidiary in the UAE to further extend our global footprint Expand our Current Business Relationships

Our goal is to build long-term sustainable business relationships with our customers to generate increasing revenues. We plan to continue to expand the scope and range of services provided to our existing customers by continuing to build our expertise in major industries and extending our capabilities into new and emerging technologies. In addition, we intend to continue to develop better solutions and new products for industry sectors which are significantly untapped. We will also seek to support a greater portion of the full product development life-cycle of our customers by offering targeted services for each phase of the software product life cycle. We also plan to assist our customers as they deploy their products to end-users through consulting and professional services that we offer onsite. In addition, we intend to continue to build relationships with various global companies as business partners which can provide us with better benefit by introducing local clients.

Strategic Partnerships Multi-Channel Marketing Content Marketing Personalized Sales Outreach Thought Leadership Client Referrals & Testimonials

Attract, develop and retain highly-skilled employees

Our employees are one of our most important assets. We focus on the quality and level of service that our employees deliver by investing in recruitment, development, retention, maintenance of a culture of innovation and by creating both a challenging and rewarding work environment. Our talent development strategy focusses on engaging, motivating and developing a high performing workforce and we aim to create and sustain a positive workplace culture for our employees and benchmark ourselves against our peers. We also have a competency training framework, seamlessly integrated into our business that has been designed for new employees to be "project-ready".

Focus on efficiency

Our goal is to help our customers with our products and solutions, in turn enabling them to deliver their products more efficiently. We have been building products and solution and providing services to leading companies. We have innovated and customized software processes that allow us to monitor and plan the progress of software projects. We have well-trained teams, pre-built frameworks and partnerships with other product companies that allow us to integrate product components and deliver products for our customers efficiently. This helps in reducing time to market and reducing the risk of engineering failures.

Optimal Utilization of Resources

Our Company constantly endeavors to improve our technical process, and will increase service activities to optimize the utilization of resources. We have invested significant resources, and intend to further invest in our activities to develop customized systems and processes to ensure effective management control. We regularly analyze our existing policies to be carried out for our technical and designing process which enables us to identify the areas of bottlenecks and correct the same. This helps us in improving efficiency and putting resources to optimal use.

Investment in infrastructure and technology

Our Company believes in making investments for continuously achieving higher levels of excellence in its products & services and implement dynamic and diverse specifications of our customers. We have invested significantly in equipping our technical team with the latest and specialized infrastructure and modern technology. We want to continue to work towards the upgradation and modernization of our infrastructure and technology.

7. THREATS, RISK AND CONCERNS

The Company is concerned about prevailing exposure norms, financial position, entry of new players in the market, rising competition from new entrants, uncertain business environment, fluctuation in rupee, likely increase in cost of capital due to volatile market conditions. Further, the state of business and policy environment in the country also has a cascading effect on the interest-rate regime, cost and availability of human resource.

8. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company maintains an adequate system of Internal Controls including suitable monitoring procedures to ensure accurate and timely financial reporting of various transactions, efficiency of operations and compliance with statutory laws, regulations and Company policies. Suitable delegation of powers and guidelines for accounting have been issued for uniform compliance. In order to ensure that adequate checks and balances are in place and internal control systems are in order, regular and exhaustive Internal Audit are conducted by the in-house Internal Audit Division and external professional audit firm. The Internal Audit covers all major areas of operations, including identified critical/risk areas, as per the Annual Internal Audit Programme. The Audit Committee of Directors periodically reviews the significant findings of different Audits, as prescribed in the Companies Act, 2013 and in the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

9. FINANCIAL AND OPERATIONAL PERFORMANCE

Standalone Performance: In the past year, your company achieved significant growth in revenue from operations, reaching Rs. 10,807.34 Lakhs compared to Rs. 7,711.65 Lakhs in the previous year, marking a growth of 40%. This growth was the result of well-planned and executed business expansion operations. For the year ending March 31, 2024, the profit before tax amounted to Rs.4,589.33 Lakhs, compared to Rs. 3,299.31 Lakhs in the previous year. The total net profit for the year is Rs. 3,422.95 Lakhs, an increase from the previous years net profit of Rs. 2,487.03 Lakhs.

Consolidated Performance: The company has consistently demonstrated growth and efficiency, as reflected in its net profit performance during the fiscal year 2023-24. Income from sales increased to Rs. 10,863.73 Lakhs from Rs. 7,831.16 Lakhs, representing a growth of 39%.

Dividend: During the year, the company paid 1st interim dividend of Rs. 7 per share, involving an outflow of Rs. 8,29,92,000/-, 2nd interim dividend of Rs. 7.50 per share, involving an outflow of Rs. 8,89,20,000/- , and a 3rd interim dividend of Rs. 5 per share, involving an outflow of Rs. 5,92,80,000/-. Total Interim Dividend paid during the FY 2023-24 stands at Rs. 19.50 per share involving total outflow of Rs. 23,11,92,000 /-. Following the companys past practices, it expects to continue distributing dividends in the near future.

The companys deal funnel remains strong, and recent project wins are expected to contribute to revenue growth in the second quarter of FY 2024-25, supporting the momentum of growth. The company aims to achieve industry-leading growth in profit after tax (PAT). Going forward, the focus is on delivering sustainable long-term growth and maximizing shareholder value.

10. HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Company gives utmost importance to the capacity-building and well-being of its employees. The Industrial Relations in the Company continued to be on a cordial note. There are regular interactions between the management and the representative-associations on issues pertaining to employee welfare. The Company has an atmosphere of trust and cooperation, which results in a motivated work force and consistent growth in the performance. For us, our clients and our people are two sides of the same coin and both are extremely important to us.

We have a unique way of hiring and retaining people. Robust technical tests along with aptitude and communication tests gives us the right hires. Fresh graduates are attracted to join us as we provide great projects and huge learning opportunities. Our packages are at par with the industry.

There is a strong training department and center of excellence which is constantly striving for upskilling and multi-skilling our people. Employees get to work on high end technologies and this helps us contain our attrition. We always encourage our people to upskill themselves with the latest technology trends and help them get certified which helps Ksolves stand out in the crowd.

Our HR department is always open to listen to suggestions and ideas our people and constantly working towards making Ksolves a better place to work by implementing various policies like

a. Work Life Balance

b. Whistle Blower Policy

c. Sexual Harassment Policy

d. Hiring for differently abled

e. Gender Equality

11. ENVIRONMENT CARE, SOCIAL ACCOUNTABILITY AND QUALITY SYSTEM:

Ksolves is committed to maintain the highest standards of social accountability & quality standards. We believe that ensuring sound corporate governance is imperative to improve and retain investor trust.

12. ANALYSIS OF SIGNIFICANT CHANGES IN FINANCIAL RATIOS

As per the recent amendments to the SEBI Listing Obligations & Disclosure Requirements (LODR), we give below additional information in respect of financial parameters that are applicable to our company:

Detail of Significant changes (i.e. change of 25% of more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanation therefore as under:

a. Debtor Turnover Ratio: The Debtor Turnover ratio as on March 31, 2024 is 6.97 times as compared to previous year ended on March 31, 2023 is 6.42 times. The change in the ratio is 8.49 % as compared to Previous Year.

b. Current Ratio: The Current Ratio as on March 31, 2024 is 2.64 times as compared to previous year ended on March 31, 2023 is 3.10 times. The change in the ratio is (14.73) % as compared to Previous Year.

c. Net Profit Margin: The Net Profit Margin Ratio as on March 31, 2024 is 31.44 % as compared to previous year ended on March 31, 2023 is 31.57%. The change in the ratio is (0.41)% as compared to Previous Year.

13. FUTURE PROSPECTS OF COMPANY

Looking forward, Ksolves will continue to seek out new and improved ways of efficiently delivering the services that our clientele needs. In line with past practices, the company expects the distribution of dividend even in near future. The company is aspiring for migration to Main Board and so have applied for main board listing of its shares in NSE & BSE. The company also has aspirations to expand globally by opening physical offices at different places. We have formulated a sound corporate vision and long-term management plan, while ensuring that we have constantly evolving management and business structures to respond quickly to the market needs & globalization. We strive to create new avenues for adding more value for the "stakeholders" being investors, business partners, employees, consumers, and communities as well.

14. DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

Cautionary Note

Certain statements in "Management Discussion and Analysis" section may be forward looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Management envisages in terms of future performance and outlook.