Mahalaxmi Seamless Ltd Management Discussions

Industrial Structure and Development

The Company is in the business of creating software to automate business processes of various clients and developing software products.

Opportunity and Threats

The opportunities for the company are emerging from technologies like AI, IoT, and blockchain, increasing digitization across industries, and expansion into new markets whereas the threats consist of intense competition, regulatory challenges, data privacy concerns, and economic downturns affecting IT spending.

Segment- wise or product - wise performance

There is no reportable geographical/ different segment-wise report.

Outlook

Our 2024-2025 technology industry outlook examines recent challenges in the industry, a renewed focus on growth and innovation, and key considerations for tech leaders in the year ahead.

Risk and Concern

Spending on technology products and services by our clients and prospective clients fluctuates depending on many factors, including the economic, geo-political, monetary, and fiscal policies and regulatory environment in the markets in which they operate. Our clients may operate in sectors that are adversely impacted by climate change which could consequently impact our business and reputation.

Internal control systems and their Adequacy

The company has a proper and adequate system of internal controls, which ensure that all the assets are safeguarded and all transactions are authorized, recorded, and reported correctly. The company maintains an adequate and effective internal control system. The finance and commercial functions have been structured to provide adequate support and controls for the business of the company.

Discussion on financial performance with respect to Operational performance

During the financial year ended 31st March, 2024, your Company made a lossfor the year amounting toRs. 1,24,36,135/- against a profit of Rs. 38,73,676/-in the previous year.The total

revenue recorded from operations is Rs. l,88,81,004/-for the year ended 31^st March, 2024 as compared to the previous year of Rs. 1,91,74,588/-.

The substantial decline in profitability is primarily attributable to a one-time payment of Rs. 1,57,20,184/- made pursuant to the Amnesty Scheme of the Central Board of Indirect Taxes & Customs, which had a material impact on the Companys financial standing.

Material Developments in the Human Resources/ Industrial Relations front, including number of people employed

The company has a team of professionally qualified personnel to look after technical and commercial aspects of business operations. Its technical team includes qualified engineers, skilled operators and expert maintenance staff. Employee relations have been cordial.

Cautionary Statement

Statement in this report on Management Discussion and Analysis describing the companys objectives, projections, estimates, expectations etc. are predictions may be "forward looking statements" within tire meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectation of future events. Actual results could however differ from those expressed or implied. Many imported factors including global and domestic demand and supply conditions, prices, raw materials costs and availability, cost of fuel, determination of tariff, changes in government regulations, tax laws and other status may affect the actual result which could be different from what the directors envisage in terms of future performance and outlook.