likhami consulting ltd Management discussions

Pursuant to Listing Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Background:

The Management Discussion and Analysis Report sets out the developments in the business, the Companys performance since the last Report and the future outlook. This Report is part of the Directors Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates, etc., may constitute "forward looking statements" within the meaning of applicable laws and regulations and may differ from actual.

Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities over which the Company does not have any control.

Global Scenario: Overview of the Global Consulting Industry Market

Management consulting is the industry and practice of helping organizations improve their performance by analyzing existing problems and development plans for improvement. Organizations hire management consulting firms to gain external advice or when they need specialized expertise and services which are offered by consultants include strategy, operations, financial advisory, human resources and internet technology. The largest markets for consulting services include operations and financial advising, more than double the human resources and strategy markets. However, all the management consulting markets are seeing average growth each year.

In recent years, consultancy corporate profits in general grew dramatically, meaning that executives are now more willing to authorize new consulting projects as long as they see the potential for a good return on the cost.

The top specialties in the consulting field are led by management consulting and technology consulting. Management consultants assist companies with restructuring or strategy development, in order to enhance operating efficiencies, increase productivity and increase return on assets, as well as significant assistance in identifying and merging with other firms that are targeted for acquisitions.

Consulting firms based in India have carved out a very significant market share in this field. Other significant sectors within consulting include human resources and employee benefits consulting; risk management; industrial automation; logistics and distribution; and environmental and regulatory compliance.

Management consulting is defined as advising and/or implementing services to organizations management with the goal of improving the effectiveness of their business strategy, organizational performance, and operational processes.

The main types of management consulting are operations advisory, financial advisory, technology advisory, strategy advisory, other consulting services, and HR advisory. HR advisory provides advice on human capital matters and/or offerings revolving around the HR function. The services are used by various industries, including IT services, manufacturing, financial services, mining, oil and gas, construction, and others. The different service providers include large enterprises, as well as small and medium-sized enterprises.

The global management consulting services market is segmented -

1) By Type: Operations Advisory, Financial Advisory, Technology Advisory, Strategy Advisory, Other Consulting Services, HR Advisory

2) By End Use Industry: IT Services, Manufacturing, Financial Services, Mining And Oil & Gas, Construction, Other End Use Industries

3) By Service Provider: Large Enterprise, Small and Medium Enterprise

Key Takeaways for the Business Strategy and Management Consulting Market Report:

1. Market Trends and Dynamics: Business Strategy and Management Consulting market drivers, opportunities, challenges, and risks.

2. Business Strategy and Management Consulting Market Competitive Landscape and Major Players: Analysis of 10-15 leading market players, sales, price, revenue, gross, gross margin, product profile and application, etc

3. Trade Flow: Import and export volume of the Business Strategy and Management Consulting market in major regions.

4. Business Strategy and Management Consulting Industry Value Chain: Business Strategy and Management Consulting market raw materials and suppliers, manufacturing process, distributors, downstream customers Business Strategy and Management Consulting Industry News, Policies and Regulations

Industry Overview in India:

Financial consulting services mainly provide services related to accounting, auditing, finance, taxation, and regulations. The services not only help clients with finance transformation, defining and implementing risk management, compliance management, but also with the financial planning of projects, fiscal and tax-related matters, and the financial side of mergers and acquisitions, as well as financing and debt restructuring. Financial advisory mainly consists of transaction services, corporate finance, crisis and recovery, risk management, accounting advisory, tax advisory, real estate advisory, and forensics and litigation.

In the past years, financial advisory continuously performed relatively stable throughout the crisis years and their aftermath, driven by three key factors. Amid economic turbulences, the demand for crisis and turnaround management grew strongly, while the demand for accounting advisory services and risk management took off not long after, particularly in the financial services sector.

A significant jump in exports during 2022-23, Services Export Promotion Council (SEPC) said the healthy growth trend will continue and shipments are expected to reach up to USD 400 billion this fiscal. During 2022-2023, the countrys services exports rose by 42 per cent to USD 322.72 billion from USD 254 billion in 2021-2022, according to provisional data from the commerce ministry.

Service exports are no longer being driven by IT services alone but also by more lucrative offerings such as consulting and research and development, analysts and economists told Reuters. Indias services exports rose 24.5% on year in October-December 2022, hitting a record $83.4 billion during the quarter, data released by the Reserve Bank of India (RBI).

Indias services exports in the fiscal year 2021-2022 touched an all-time high of $250 billion despite the travel & tourism, aviation and hospitality sectors being severely hit by the Covid-19 pandemic.

The focus will also be on sectors including market research, consulting, engineering, and construction and will contribute to the target of $350bn in FY23.

Basis of preparation and presentation of our Financial Statements:-

The Financial Statements have been prepared and presented under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting and comply with the applicable accounting standards referred to in the Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

SWOT Analysis of Consulting Industry:

Determine the Scope

The purpose of the analysis constitutes the initial phase of carrying out a SWOT analysis and risk assessment. This entails recognizing the companys precise consulting services as well as the segment in which it conducts business. The scope must additionally encompass the firms internal systems, including things like its employees, financial affairs, and facilities.

Determine your strengths and weaknesses

The next phase involves identifying the consulting firms short comings as well as its strengths. Internal variables that grant the company an edge are referred to as strengths, whereas internal elements that impede its effectiveness are referred to as weaknesses. While determining strengths and weaknesses, take this into consideration:

? The companys industry brand image.

? The consultants knowledge and experience.

? The standard of services provided. ? The pricing plan. ? The degree to which customers are satisfied. ? Internal process effectiveness.

Recognize Opportunities and Threats

The third stage involves determining the consulting firms opportunities as well as threats. Opportunities pertain to outside variables at play that a company may capitalize on to boost its efficiency, whereas threats are external forces that can hurt it. When highlighting opportunities and risks, take this into consideration:

? The markets dimensions

? The quality of rivalry ? The legislative standards ? Technological progress ? Customer preference shifts

Identify Potential Risks

Following the completion of the SWOT analysis, the consulting firm must pinpoint the risks. Consider possible incidents or circumstances which might have an adverse effect on the company.

Internal Risks: Internal risks are those risks associated with the consulting firms internal systems. These might very well include personnel issues, financial insecurity, or technology factors.

External Risks: External risks are those which are caused by outside variables including regulatory changes, market fluctuations, or natural catastrophes.

Risk Evaluation

When potential threats are identified, they must be evaluated. This entails taking into account the probability and potential effect of every risk.

The probability that a danger will take place is referred to as its likelihood. More focus and prepping would be required for risks that are more prone to happening.

The effect of risk is the potential danger it might end up causing to the consulting company. Risks with the possibility of having an important effect on the firm will necessitate more focus and preparation.

Create Mitigation Techniques

The next phase is to devise risk-mitigation strategies for all the threats that were discovered in the step above. This entails determining strategies that can be adopted to lessen the effects and likelihood of the risks taking place. Specific, measurable, achievable, relevant, and time-bound approaches are needed (SMART). It is indeed critical to allocate resources or even delegate tasks for putting the tactics to use.

Business Segment:

The Company is into the business of Consultancy services and other allied services. The company operates mainly in Indian Market. Management Consultancy, Project Consultancy, Consultancy to NGOs, Project Feasibility Studies, Techno-Economic Viability Studies, Market Survey, Research and Branding, Brand Launch Strategies, Industry Research, Project Report Preparation, Foreign Investments related consultancy in Indian Market, Financial Consultancy, Artificial Intelligent (AI), Technical Collaboration and International Tie-up, Turnaround Strategies for Distressed Firms, Business Valuations, India Entry related consultancy, Financial Consultancy, Loan and Equity Syndication Services and Mergers & Acquisitions etc.

Outlook:

Consultancy opportunities will increase in areas like management consultancy, Artificial Intelligence, Digital Marketing and Block Chain, financial consultancy, information technology, market research, etc. The consultant will be more professional, demanding and seeking tangible results. The Company will get repeat orders by providing quality service followed by service guarantee. The client feedback in the market will continue to be the determinant for selection of consultants. With the accelerated pace of economic reforms and liberalization, powerful winds of change are sweeping through Indian organizations. The consultant must be proactive to the changes acting as an agent of change. He must adopt new work culture, attitude and ethics and constantly try to achieve competitiveness. The Company has objective to develop a new value system in which total commitment to the client is the ultimate objective. The value system must ensure client-satisfaction in delivering the services, maintaining work schedules, and most importantly, focusing on the clients interest at all times. The consultant will be increasingly called upon to get involved in the implementation of recommendations. In short, the relationship between a consultant and his client will be strong, intimate, facilitating and mutually beneficial.

Internal Financial Control and their Adequacy:

The Company has in place well-defined internal control mechanisms and comprehensive internal audit programmes with the activities of the entire organization under its ambit.

Human Resources:

Human Resources Development envisages the growth of the individual in tandem with the organization. It also aims at the upliftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance.

Your Directors want to place on record their appreciation for the contribution made by employees at all levels, who through their steadfastness, solidarity and with their co-operation and support have made it possible for the Company to achieve its current status The Company, on its par, would endeavour to tap individual talents and through various initiatives, ingrain in our human resources, a sense of job satisfaction that would, with time, percolates down the line. It is also the endeavour of the Company to create in its employees a sense of belonging, and an environment that promotes openness, creativity and innovation.

Our professionals and employees are our most important assets. We believe that the quality and level of service that they deliver is a huge contributing factor in growth and development of the Company.

Discussion of Financial Performance:

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under:

(Amt. in lakhs )

Particulars	2022-2023	2021-2022	2020-2021
Profit Before Tax	23.272	(405.22)	13.64
Profit after Tax	17.203	(408.80)	9.94
Earnings Per Share (in Rs.)	0.17	(4.11)	0.10

Ratio

Sl. No. Particular	F.Y. 22-23	F.Y. 21-22	Numerator	Denominator	Reason
1 Current Ratio	72.133	72.171	Current Assets	Current Liabilities	NA
2 Debt Equity Ratio	-	-	Total Debt	Shareholders Equity	NA
3 Debt Service Coverage Ratio	NA	NA	Net Operating Income	Total debt Service	NA
4 Return on Equity Ratio	0.005	-0.119	Net Profit After Tax	Shareholders Equity	Due to increase in profit and decrease in exceptional items in current year
5 Inventory Turnover Ratio	NA	NA	Cost of Goods Sold	Average Inventory	NA
6 Trade Receivable Turnover Ratio	6.209	7.869	Average Receivable*12	Income from Operation	NA
7 Trade Payable Turnover Ratio	NA	NA	Average Payable*12	Net Credit Purchases	NA
8 Net Capital Turnover Ratio	0.018	0.013	Sales	Net Assets	Due to increase in sales and capital also.
9 Net Profit Ratio	0.278	-8.416	Net Profit After Tax	Total Revenue	Due to decrease in exceptional items and correspondingly increase in total revenue in current year.
10 Return on Capital Employed	0.007	-0.118	Earnings before Interest and Tax	Capital Employed	Due to decrease in exceptional items and correspondingly increase in capital employed in current year.
11 Return on investments	0.000	0.001	Different in amount of investments	Initial Investments	Due to decrease in additional investments made in current year.

Cautionary Statement:

Statements made in the Management Discussion and Analysis Report describing the Companies objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement important factors that influence the Companys operations, include global and domestic supply and demand conditions. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only of their dates.