Richa Info Systems Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on

31st March, 2023.

INDUSTRY STRUCTURE & DEVELOPMENTS:

In the years 2022-2023, the Information Technology (IT) landscape in India continued to evolve at a rapid pace, playing a pivotal role in shaping the nations digital transformation journey. The Indian IT industry, known for its prowess in software development and IT services, witnessed further advancements and adaptations to emerging trends. The rollout of 5G networks began to make its impact felt, enabling enhanced connectivity and paving the way for transformative technologies like the Internet of Things (IoT) and smart cities. Cybersecurity remained a top priority, with a focus on deploying advanced threat detection and mitigation solutions to safeguard critical digital assets. The Indian IT workforce continued to adapt to remote work arrangements, fostering the growth of digital collaboration tools and remote infrastructure management. Overall, the IT industry in India during this period continued to be a catalyst for economic growth, technological innovation, and the nations digital aspirations.

Global economic activity experienced a sharper-than expected slowdown in the fiscal year 2023. With central banks raising interest rates and food and energy prices coming down, global inflation is gradually subsiding. This has resulted in marginal improvement in business and household buying power.

India has emerged as a global IT hub in the last two decades. The IT industry has played a significant role in the growth of the Indian economy, contributing to nearly 8% of the countrys GDP. The Indian IT staffing industry has been growing at a rapid pace, and with the rise of new technologies, the future of this industry seems to be going on the right track. During the first week of March 2023, IT industry body NASSCOM made a statement that Indian technology sector is set to grow at 8.4% in FY 2023 to reach $245 billion market size.

ORGANISATION PROFILE:

Our Company was incorporated as "Richa Info Systems Private Limited" at Gandhinagar on October 1, 2010, under the provisions of the Companies Act, 1956 vide certificate of incorporation issued by the Assistant Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Subsequent to the conversion of our Company into public limited company, the name of our Company was changed to "Richa Info Systems Limited" and fresh certificate of incorporation dated September 14, 2021 was issued by the Registrar of Companies, Ahmedabad.

We started our Business from the office Automation products and at present we are engaged in assembling of innovative products and systems Integrator of multifaceted solutions of leading quality products like Interactive Flat Panel, Interactive Board, Digital Podium, Digital Kiosk, CCTV Cameras to esteemed customers in sectors like Government, PSUs, Education, Defense. We provide wide choice of "Innovative Solutions", providing service to Government organizations across India through Government e Marketplace (GeM).

OPPORTUNITIES AND THREATS:

1. Greater interest in using technology to drive business growth

2. Accelerated adoption of online education

3. Pandemic forced remote working

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

RISKS AND CONCERNS:

Listed below are some of the key risks and concerns:

1. Volatile global political and economic scenario

2. Disruption and uncertainty in business due to the COVID-19 pandemic

3. Talent risk due to huge demand for talent globally and attrition

4. Restrictions on global mobility, location strategies

5. Business model challenges

6. Breach of data protection laws

7. Cyber attacks

8. Intellectual Property (IP) Infringement and leakage

9. Litigation risks

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company maintains a system of internal controls designed to provide reasonable assurance regarding the following: ? Effectiveness and efficiency of operations ? Prevention and detection of frauds and errors ? Effective use of resources ? Adherence to applicable Accounting Standards and policies ? Timely preparation of reliable financial information

Internal controls and governance process are duly reviewed for their adequacy and effectiveness on periodical basis.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The financial performance of the Company for the year 2022-23 is described in the Directors Report under the head Financial Result.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:

Company takes pride in the commitment, competence and dedication shown by its employees in all areas of business. Your Directors wish to convey their gratitude and place on record their appreciation for all the employees at all levels for their hard work, solidarity, cooperation and dedication during the year. Industrial relations were cordial throughout the year.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including

The Key Financial Ratios during Financial Year 2023 vis-?-vis Financial Year 2022 are as below:

DISCLAIMER:

Statements in this Annual Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may materially differ from those expressed or implied.

For and on behalf of the Board of Directors For, RICHA INFO SYSTEMS LIMITED