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, 2024.

INDUSTRY STRUCTURE & DEVELOPMENTS:

In the years 2023-2024 , 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 (loT) 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 2024. 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 10% 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 2024, IT industry body NASSCOM made a statement that Indian technology sector is set to grow at 8.4% in FY 2024 to reach $199 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:

Product details	Amount (in Rs.)
Interactive Flat Pane	281754164
CCTV Camera	43045775
Podium	33262644
Kiosk & Signage	19566261
Video Conference Camera	13696383
Digital Teaching Device	0
Total	39,13,25,227

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 2023-24 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

Ratio / Measure	Methodology	For the year ended
		31-Mar-24	31-Mar-23
Current Ratio	Current Assets over Current Liabilities	1.47	1.92
Trade Receivables Turnover Ratio	Revenue from operations over average trade receivables	2.16	3.67
Trade Payables Turnover Ratio	Adjusted expenses over average trade payables	3.05	21.51
Inventory Turnover Ratio	Cost of Goods Sold devided by Average Inventory for the Year	4.4S	5.53
Net Profit Ratio	Net profit over revenue	1.81%	2.39%
Debt Equity Ratio	Debt over total shareholders equity	0.71	1.21
Debt Service Coverage Ratio	Earnings available for debt services over Finanace Cost	2.29	1.96
Return on Equity Ratio	PAT over total average equity	5.97%	6.31%
Net Capital Turnover Ratio	Revenue from operations over average working capital	3.21	3.57
Return on Capital employed	EBIT over capital employed	12.87%	13.12%

Notes:

EBIT - Earnings before interest and taxes

PBIT - Profit before interest and taxes including other income

EBITDA - Earnings before interest, taxes, depreciation and amortisation.

PAT - Profit after taxes

Debt includes current and non-current lease liabilities

Adjusted expenses refers to sub-contractor charges and other expenses net of non-cash expenses and donations Capital employed refers to total shareholders equity and debt.

Investments includes non-current investment, current investment and margin-money deposit DSCR, ROCE and Inventory Turnover Ratio of Previous year are recalculated according to current year methodology.

Explanation for variances exceeding 25%:

Current Ratio	Current Liabilities are increased in current year as compared to previous year.
Trade Payables Turnover Ratio	Holding period of Trade payables have increased in current year compared to last year.
Trade Receivables Turnover Ratio	Holding period of Trade Receivable have increased in current year compared to last year.

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.

As per our report of even date attached herewith
For, M B IAIODIA & ASSOCIATES
Chartered Accountants	For and on behalf of the Board,
(FRN No. 139647W)
Manoj (ajodia	Tushar D Shah Heina T Shah
Partner	Director Director
(M.No.162116)	(DIN: 03115836) (DIN: 03115848)
Place: Ahmedabad
Date: 30/05/2024	IJDIN: 24162116BKBGYV6373