ANNEXURES TO THE BOARDS REPORT
ANNEXURE –VI
Industry Structure and Development:
Management discussion and Analysis Report Business Overview The company is a software
development, enterprise solution and consulting firm engaged in the business of providing
a range of Information Technology ("IT") solutions to companies across
industries such as Healthcare, Education, Government, consumer goods, retails, IT/ITES,
Oil & Gas, Real Estate & Construction, Banking & Financial Services and
Manufacturing sectors.
The company design, develop and maintain software systems and solutions, like Business
Applications, Low code/ no code, Mobility, E-commerce, Cloud infrastructure &
Securities, Quality assurance, Analytics, Product engineering, accessibility, RPA &
AI, IOT and Machine Learning and creates new applications and enhances the functionality
of the customers existing software products.
The company endeavour to bring together creativity and knowledge with positive business
strategy to furnish the requirements of diverse clients with an inclusive range of
products, solutions and services which are comprehensive and cost-effective so that the
client can focus on their core competencies to improve or expand their businesses.
The company delivers services across all stages of the product life-cycle, which
enables us to work with a wide-range of customers and allow the company to develop,
enhance and deploy customers software products and solutions. The various services
offered by the company are Software Development Services, Enterprise Portal, ERP and CRM
Implementation, Consulting Services, Mobile Solutions, RFID Solutions, Cloud and IT
Infrastructure Services and Geospatial Services. The comprehensive suite of service
offerings allows the company to attract new customers and expand existing customer
relationships.
The company provide an array of products and solutions like PowerERM – Employee
Relationship Management, Hospice – Healthcare Solution and iOnAsset – Asset
Tracking & Management System, Sifa care MD- Innovative solution to urgent healthcare,
OTM- Accelerating access to immediate healthcare and eProcurement Management Solution
which help our clients in strategising their business objectives.
Octaware Technologies, an IT services company, is organised to carry out Business
Transformation journeys that enable customers to achieve their objectives. Before
strategizing clients journeys to sustained and exponential growth, we first excel in
fully comprehending their unique goals and aspirations.
Through our Innovation Division, we offer outcome-driven solutions to business problems
using cutting-edge services. We continuously re -invent ourselves to help our customers
with the latest technology solutions to make them market leaders in their chosen area.
We are a Microsoft Gold Partner with a focus on MS Dynamics 365, helping enterprises
around the world to solve complex operational challenges. Based in Mumbai, India, our
delivery centre and head office are supported by offices in UAE, Qatar, USA and Saudi
Arabia regions. As an offshore outsourcing company, the company have various offshore
development centres in India. Currently, Octaware has 2 offices in India, including
registered office and a SEZ office in Mumbai. The company is promoted by Mr. Aslam Khan
and Mr. Sajid Hameed who individually have approximate 20 years of experience.
Having worked with technology companies like TCS, Microsoft, Citibank and AskMe Inc.,
Mr. Aslam Khan started Octaware in 2005 pooling all his experience. He was aided by Mr.
Sajid Hameed who has rich experience in setting up business, developing markets, managing
customers and handling overall businesses. In the year 2006, The company acquired 2 large
customers in US and the growth continued with our establishing partner relationships in
Qatar in 2007, allowing the company to offer specialised solution for the Middle East
market. Later in 2008, The company introduced solutions for various industries like
healthcare, professional services and real-estate industry by investing in inhouse product
development.
Opportunities & Threats:
Many companies recognize the importance of innovation yet continue to be ineffective
innovators. Recognizing that innovation requires a structured process, multiple
perspectives, silo-busting boundary-free and polarity thinking are important first steps.
Whether developing new products or services, refining internal processes, or creating
disruptive business models, innovation is the key to sustained competitive advantage.
Perhaps the greatest challenge of innovation is not creativity but implementation.
Innovation efforts fail unless companies have leaders with the right skills to manage the
innovation process, balance conflicting priorities and attract the range of contributions
required for successful innovation. As much as two-thirds of the innovation climate in a
company is defined by leadership behaviours, according to recent research. In short,
innovation leadership is not coming up with creative ideas, it is turning those ideas into
actions.
The first foundation of leading innovation is to manage the tension between the
pressure of day-to-day priorities and the importance of finding ways to create new
opportunities. The second foundation is to embrace the constancy of change. Change is
difficult, and everyone in the organization must be prepared for its constant presence.
Leaders themselves must be agile, which means letting go of the status quo. The third
foundation is to take an enterprise-wide perspective. The best ideas will come from
cross-collaboration and input from all areas of the organization.
The companys threat is that the market for IT Products and Services is both, highly
competitive and rapidly evolving. It has evolved into a consolidated global industry and
the company face competition both in the domestic as well as the export markets. The
company primarily face competition from the small and large Indian IT services companies
as well as international technology services companies which offer broad-based services,
offshore captive centres of global corporations and technology firms. The company
anticipate this competition to continue to grow as the demand for these services increases
and expect additional companies to enter the Indian market. The company expect that
further competition will increase and potentially include firms in countries with lower
personnel costs than those prevailing in India. Further, Clients that presently outsource
a significant proportion of their IT service requirements to vendors in India may seek to
reduce their dependence on one country and outsource work to other offshore destinations
such as Eastern European countries. Also, many countries have the advantage of being
located in proximity to the companys main export markets of American and European
countries. The company also face competition from other countries mainly in US and
European countries that have advanced technology and ability to cater to large scale
businesses in different parts of the world. There are number of competitors offering
products and services similar to the company. Octaware believe the principal elements of
competition in IT industry are price, timely delivery and reliability and most importantly
pace in keeping up with the required changing technology in the industry. The company has
the belief that companys cost effective and integrated offerings, focus on customer
satisfaction and reliability combined with quality consciousness provides company with
competitive advantage in many of products.
Risk & Concerns:
The rapid spread of COVID - 19 pandemic across the world, including India, followed by
Lockdowns have impacted the demand. Also, due to COVID - 19, demand of IT solutions is
adversely affected till date, resulting in loss of revenue, increased cost of providing
solutions which would adversely impact the profitability of the company.
To mitigate various type of risks that the Company has to face, the Board of Directors
of the Company has adopted a Risk Management Policy and implemented the same.
Market and outlook:
Our cliental base constitutes customers of diverse sectors encompassing various
industries like Healthcare, Education, Telecom, Oil & Gas, Real Estate &
Construction, Banking & Financial Services and Manufacturing sectors. Our strategy is
to seek new customers and at the same time secure additional engagements from existing
customers by providing high quality services and cross-selling new services. Our quality
standards, unflinching efforts for punctual order completions and our unmatched overall
service have resulted in significant recurring revenue from existing customers and also
enabled us to garner clients who are some of the leading banking, financial, healthcare,
manufacturing, education and telecommunication names in India and abroad. We believe that
our current capabilities and plans for the future ensure that we are well positioned to
attract and develop new customer relationships. Business from new customers is accepted
upon consideration of factors such as alignment of capabilities and customer expectation,
volume of business and future business, potential for close partnership with long-term
association, and an analysis of upfront costs. Developed a long-standing relationship with
our clients which include companies like, Microsoft, Pitney Bowes, Copernicus Consulting,
Integrated Networks, VOIP Connection, Sai Hospital, Essel Propack and Tech Mahindra among
others. Further, we continuously endeavour to increase our cliental base and have a
dedicated marketing team at several of our Indian and overseas offices for client
acquisition.
Internal Control System and their Adequacy:
The Company has an adequate Internal Control System commensurate with the size and
nature of its business. The preparation designing and documentation of Policy on Internal
Financial Control has been finalized and implemented which will be reviewed periodically
and modified suitably to ensure controls.
Financial statements are prepared through the process which has automated as well as
manual controls to ensure accuracy of recording all transactions which have taken place
during any accounting period, and the resultant financial position at period end. All
data/transactions entered in systems are checked by various functional personnel on the
basis of supporting documents & records, then the accounting entries are checked by
accounts personnel and finally those are validated by managerial personnel. While
preparing the financial statements, it is ensured that all transactions pertaining to the
accounting period are recorded.
The Company has adopted policies and procedures for ensuring the orderly and efficient
conduct of its business, including adherence to the Companys policies, safeguarding of
its assets, prevention and detection of fraud and errors, accuracy and completeness of the
accounting records, and timely preparation of reliable financial disclosures.
Human Resources:
Human Resource programs and initiatives in your Company are aligned to meet the
business needs. Your company believes in investing in people to develop and expand their
capability. The Company has been able to create a favourable work environment that
motivates performance, customer focus and innovation. Companys strategies are based,
inter alia, on processes of continuous learning and improvement. The Company has strong
programs to update skill, knowledge, and confidence of its employee through ongoing human
resource interventions.
Cautionary Statement:
Statements in the Management Discussion & Analysis Report describing the Companys
expectations, opinion, and predictions may please be considered as "forward looking
statements" only. Actual results could differ from those expressed or implied.
Companys operations should be viewed considering changes in market conditions and demand,
prices of materials, economic developments in the country and such other factors.
Key Financial Ratios:
Pursuant to financial year the SEBI (Listing Obligations and Disclosure Requirements),
(Amendment), Regulations, 2018, the key financial ratios viz., Debtors Turnover, Inventory
Turnover, Current Ratio, Operating Profit Margin (%), Net Profit (%), Return on Net Worth,
Interest Coverage and Debt Equity ratios do not exceed significantly as compared to the
immediately preceding Financial Year.
Details pertaining to Net-worth of the Company:
(Amount in lakhs)
| Particulars |
31.03.2023 |
31.03.2022 |
Explanation for change in Net-worth |
| Net-worth |
1007.40 |
1010.49 |
Decrease solution providing level and markets condition and demand of solutions |
| Place: Mumbai |
By order of the Board of Directors |
| Date: 07.09.2023 |
For Octaware Technologies Limited |
| Sd/- |
|
| Mohammed Aslam Khan |
Mr. Shahnawaz Shaikh |
| Managing Director |
WTD & CFO |
| DIN: 00016438 |
DIN:06910575 |
+91-9892691696
