Richa Info Systems Ltd Management Discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on 31^st March, 2025.

INDUSTRY STRUCTURE & DEVELOPMENTS:

In the years 2024-2025, the Information Technology (IT) landscape in India is evolving at an accelerated pace, driving the countrys digital transformation journey. Leveraging its strong foundation in software development and IT services, the industry has continued to adapt to emerging trends. The introduction of 5G is expected to further boost connectivity and act as a catalyst for transformative technologies, including loT and smart city initiatives. Cybersecurity emerged as a critical focus area, with organizations increasingly adopting advanced solutions for threat detection and mitigation to safeguard vital digital assets. The Indian IT workforce further embraced remote and hybrid work models, accelerating the adoption of collaboration platforms and remote infrastructure management. Collectively, these developments reinforced the IT industrys position as a driver of economic growth, innovation, and Indias digital future.

The global economy faced a sharper-than-anticipated slowdown in FY 2024. Nevertheless, tighter monetary policies by central banks, along with easing food and energy prices, have contributed to a gradual decline in inflation. This trend has begun to restore business confidence and slightly improve household purchasing power, laying a foundation for recovery.

Over the last two decades, India has emerged as a leading global IT hub. The sector continues to play a pivotal role in the nations economic progress, contributing close to 10% of GDP. The IT staffing industry, in particular, has witnessed robust growth, and with the acceleration of new technologies, the outlook for the industry remains highly encouraging. In the first week of March 2025, industry body NASSCOM stated that the Indian technology sector is expected to grow by 5.1% in FY 2025, reaching a market size of approximately USD 282.6 billion.

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 Registrarof Companies, Ahmedabad.

The Company commenced its business with office automation products and has since expanded into assembling innovative products and functioning as a systems integrator, delivering multifaceted solutions through leading-edge offerings such as Interactive Flat Panels, Interactive Boards, Digital Podiums, Digital Kiosks, and CCTV Cameras. Our esteemed clientele spans across Government, PSUs, Education, and Defense sectors. We take pride in offering a wide range of innovative solutions and cater to Government organizations across India through the Government e-Marketplace (GeM) platform.

OPPORTUNITIES AND THREATS:

2. Growing Technology Adoption - Increasing reliance on technology as a key enabler of business growth across industries.

3. Expansion of Online Education - Rapid acceptance and accelerated adoption of digital learning platforms creating new growth avenues.

4. Shift to Remote Work - The pandemic has transformed work models, driving demand for remote working solutions, collaboration tools, and secure IT infrastructure.

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

S. 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 2024-25 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.