Magellanic Cloud Ltd Management Discussions

I. OVERVIEW

The journey over the past few years has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, the Russia-Ukraine war that triggered a global energy and food crisis, and a considerable surge in inflation, followed by a globally synchronized monetary policy tightening. The global GDP is estimated to have grown at 3.2% in CY 2023, lower than 3.5% in CY 20221, led by fears of a hard recession. Yet, despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops. Economic growth has been stronger than expected in the second half of 2023 in the United States, and several major emerging market and developing economies. However, the rising momentum was not felt everywhere, with notably subdued growth in the euro area, reflecting weak consumer sentiment, the lingering effects of high energy prices, and weakness in interest-rate-sensitive sectors.

II. MCLOUDS BUSINESS:

An Overview

Mclouds is an IT services, consulting and business solutions organization. It has a global presence, deep domain expertise in multiple industry verticals and a complete portfolio of offerings - grouped under consulting and service integration, application services, digital transformation services, cloud services, engineering services, cognitive business operations, and products and platforms

Strategy for Sustainable Growth.

Mcloud has successfully navigated through multiple technology cycles transforming and adapting each time to build relevant new capabilities and helping its clients realize the benefits of that innovative technology.

III. MCLOUD STRATEGIC RESPONSES TO OPPORTUNITIES AND THREATS:

Opportunities and Threats:

Following can be termed as the opportunities / strengths of the Company:

- Continued investment in skill building, certifications, credentials, IP and accelerators.

- Strong growth in cloud migration and transformation revenues.

- Preferred partner to clients seeking to use cloud native capabilities to power their business transformation.

- Expansion of addressable market.

IV. CHANGES IN KEY FINANCIAL RATIOS:

Pursuant to provisions of Regulation34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:

V. RISK AND CONCERNS

Looking at the scenario in India in case of Food and Beverage industry, Risks associated with operating in a particular industry and include risks arising from demand changes, changes in customers choice and industry changes. Forex risks could arise from the company being exposed to foreign currency fluctuations which could impact its rupee earnings.

The Company has adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of stores, raw materials, components, plant and machinery, equipment and other assets, and for the sale of goods.

The Company also has in place an Audit Committee to have a periodic overview of the internal control procedures of the Company. The Audit committee is accessible at all times to the employees of the Company for any improvement to be recommended in the procedures in place.

VI. DISCUSSION ON FINANCIAL PERFORMANCE OF THE COMPANY:

The financial performance of the Company in the year under review are:

During the year under review, the Standalone total Income was INR 7,734.06 lakhs as against INR 5,610.50 lakhs for the corresponding previous year.

Total Comprehensive income for the period was INR 1,858.07 lakhs as against INR 1,068.93 lakhs in the corresponding previous year.

VII. INDUSTRIAL RELATIONS AND HUMAN RESOURCES:

The Company considers that its relationship with its employees is vital and ensures that employees feel valued and is endeavoring to create an environment and culture within which every employee can put his best efforts and maximize his contribution.

The Company ensures that all its employees remain competent through education, skills, training and experience as necessary. The Company has had cordial relations between the management and employees and an atmosphere of harmonious working to achieve the business objectives of the Company throughout the year. The Company is poised to motivate each of its employees to perform to the fullest extent possible and to appropriately reward their excellence.

VIII. CAUTIONARY STATEMENT

Statements in this report and Corporate Governance Report read together with the Directors Report and financial statement describing the Companys objectives, projections, estimates, expectations and predictions, may be "forward looking statements” Actual results may differ from those expressed or implied due to variations in prices of raw materials, seasonal demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and other incidental factors.