(Pursuant to Regulation 34 read with Schedule V of Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015)
INDUSTRY AND INDIAN TELECOM SECTOR
India has the worlds second-largest telecom market. The total subscriber base,
wireless subscriptions, and wired internet subscriptions have increased steadily. As of
April 2022, teledensity stood at 84.88%, total broadband subscriptions increased to 788.77
million, and the overall subscriber base stood at 1.16 billion.
The telecommunications industry in India is at a turning point, as technological
advancements pave the way for a new era of connectivity. From the long-awaited arrival of
5G to the increasing importance of public cloud, cyber security, and the rise of
artificial intelligence (AI), we take a sneak peek at the key developments shaping the
industry.
The telecommunications industry is at a turning point, with technological advancements
paving the way for a new era of connectivity.
From the long-awaited arrival of 5G to the increasing importance of public cloud, cyber
security, and the rise of artificial intelligence (AI), lets take stock of the key
developments shaping the industry.
With the growth of cloud computing, the increasing adoption of digital transformation,
and the growing reliance on cloud
BSS and billing platforms, it is clear that the future of telecom is both exciting and
challenging.
It will not be a surprise to anyone that Mobile download speeds in India will improve
in 2023. This is because of multiple reasons, including the rollout of 5G as well as the
4G expansion. The median Mobile download speed in India in Nov 2021 was 14.39 Mbps, which
went up to 18.26 Mbps in November 2022. India also climbed seven spaces in the Speed test
Global Index ranking from 112th place in November 2021 to 105th place in November 2022.
INDUSTRY SCENARIO
Globally, the telecommunications industry is emerging as a central and core
infrastructure service for national economies, and information infrastructure is becoming
critical in an internet world and is likely to increasingly attract new types of
investors, such as large infrastructure funds. The issuer expects Indias telecom sector
to remain stable due to the sectors defensive capabilities amid an uncertain economic
outlook due to political uncertainty and geopolitics and rising inflation.
The increase in the number of Mobile phones and the penetration of fixed broadband in
homes will fuel future growth over the next five years. According to a report by India
Telecoms, the analyst predicts that Mobile and fixed broadband subscribers will continue
to grow in the telecom industry during the period 2023-28. More than 800 million people
have used the Internet in the last six years, and another 200 million Internet users are
expected in the next six years until 2028.
After market expansion over the past five years, the publisher predicts continued
revenue growth until 2028, as revenues from FTTH, 5G and legacy voice and SMS decline.
Mobile revenues are now growing faster than Mobile subscriptions, resulting in ARPU growth
after three years of intense competition as the market transitions to 4G. When JIO was
launched in late 2016, it shook the Mobile market from the ground up, becoming the largest
Mobile operator by subscribers and the second largest operator in just four years.
GOVERNMENT INITIATIVES
In Union Budget 2023-24, the Department of Telecommunications was allocated Rs.
97,579.05 crore (US$ 11.92 billion). Of this, US$ 48.88 million (Rs. 400 crore) is for
Research and Development, US$ 611.1 million (Rs. 5,000 crore) is for Bharatnet.
In Union Budget 2023-24, the Finance Minister announced the following
developments/policy for Telecom Sector
• 100 labs for developing applications using 5G services to be set up in
engineering institutions to realize a new range of opportunities, business models, and
employment potential. The labs will cover, among others, applications such as smart
classrooms, precision farming, intelligent transport systems, and health care
applications.
• Improve access to telecom connectivity for PVTGs.
• PAN to be used as common identifier for all digital systems of specified
government agencies.
• Entity Digi Locker to be set up for use by business enterprises and charitable
trusts.
• A system of Unified Filing Process to be set-up to file information or return to
different government agencies, on a common portal.
Further, the Government in line with its Make in India initiative has granted relief in
custom duty on import of certain parts and inputs for manufacturing of Mobile phones.
Further, certain changes have also been proposed in the tariff schedule to increase the
duty rates on certain items such as specific type of modems, multiplexers etc.
PERFORMANCE
Your Company is exploring other avenues for business and is in discussions /
negotiations with various vendors.
OPPORTUNITIES AND THREATS
5G is the next technology frontier in the telecom sector. According to the High-Level
Forum of the Department on 5G, 5G is predicted to create a cumulative economic impact of
USD one trillion in India by 2035.
As of January 2021, 118 operators in 59 countries have deployed 5G network. Mostly, 5G
has been launched partially in these countries. In India, commercial rollout of 5G is yet
to happen. The Standing Committee on Information Technology (2021) examined Indias
preparedness for 5G.
The Committee noted that sufficient preparatory work has not been undertaken for the
launch of 5G services in India. It highlighted:
(i) inadequate availability of spectrum,
(ii) high spectrum prices,
(iii) poor development of use cases for 5G,
(iv) low status of fiberisation, and
(v) deficient backhaul capacity, as some of the key concerns.
It noted that as of January 2021, 5G trials have not been permitted by the department.
The opportunities observed are based on the trends noticed in the past couple of Years,
which continues to be relevant- some of the key ones are mentioned below:
Opportunities |
Threats |
| Digitization |
Growing Competition |
| Regional Markets |
Constant Upgradation of Technology |
| Fast Growing Asian Market |
Foreign Exchange Rate Changes |
ROAD AHEAD / OUTLOOK
5G networks will enable more detailed and efficient augmented and virtual realities,
higher resolution video, fully autonomous vehicles, massive connected IoT networks (like
smart cities), and more. 5G is the most highly anticipated change to the future of
telecom.
India can be a global leader for Open RAN technology in the coming times. With the 5G
launch, open RAN will create a space for itself in the market. This is because the 5G
service is based on the Open RAN technology.
RISKS AND CONCERNS
Your Company actively stimulates entrepreneurship throughout the organization and
encourages its people to identify and seize opportunities. The current economic
environment, in combination with significant growth ambitions, carries with it an evolving
set of risks. We recognize that these risks need to be managed to protect employees,
shareholders and other stakeholders, to achieve business objectives and enable sustainable
growth.Risk and opportunity management is therefore a key element of the overall strategy.
Your Company has adopted the procedures in its Risk Management policy to ensure that
all current and future material risk exposure of your Company is identified and mitigated.
The policy explains the risk pertaining to financing activities, dependence on
distribution network, and their mitigation. The policy is available on the Company website
and can be read from there.
HUMAN RESOURCES
The Company recognizes and appreciates the contribution of all its employees in its
growth path. Our Company strives to retain talent by facilitating career growth through
job enrichment and empowerment, as it believes that the pool of the human resource is the
biggest asset of the organization. Your Company maintains a cordial relationship with its
employees through a constructive work environment in support of productive gains.
INTERNAL FINANCIAL CONTROLS
The Company has in place adequate Internal Financial Controls commensurate with the
size, scale and complexity of its
Operations. During the year such controls were tested and no reportable material
weakness in the design or operations were observed.
The Company has policies and procedures for ensuring the orderly and efficient conduct
of its Business, including adherence to Companys Policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness
of the accounting records and timely preparation of reliable Financial Information.
M/s. D R & Associates, Chartered Accountants were working as the Internal Auditors
of the Company for the financial year 2021-22 and have been re-appointed for the financial
year 2022-23.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The Details of the Financial Performance of your Company are reflected in the Balance
Sheet, Profit & Loss Account and other Financial Statements, appearing separately.
Highlights are provided below:
(Rupees in Lacs)
PARTICULARS |
Financial Year 2022-2023* |
Financial Year 2021-2022* |
| A. Revenue from Operations |
- |
0.64 |
| B. Other Income |
71.59 |
6.94 |
| C. Total (A + B) |
71.59 |
7.58 |
| D. Profit / (Loss) before Exceptional Items and Tax |
(469.99) |
(304.94) |
| E. Exceptional Items/Loss Discontinuing Operations |
- |
- |
| F. Profit / (Loss) Before Tax |
(469.99) |
(304.94) |
| G. Less: Tax |
17.12 |
59.12 |
| H. Net Profit (F G) |
(487.11) |
(364.06) |
| I. Other Comprehensive Income / (Loss) |
1.70 |
-22.44 |
| J. Total Comprehensive Income (H + I) |
(485.41) |
(338.27) |
*Figures are as per IndAS
During the financial year ended 31st March 2023, your Company, on a
standalone basis, reported no Revenue from Operations, in contrast to the Rs. 0.64 Lacs
generated in the preceding financial year ending on 31st March, 2022. The Net Loss for
your Company in the financial year concluding on 31st March, 2023 amounted to Rs. 487.11
Lacs, an increase from the Loss of Rs. 364.06 Lacs incurred in the financial year ending
on 31st March, 2022.
SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS AS COMPARED TO THE PREVIOUS YEAR
Ratios |
2022-23 |
2021-22 |
Reason for Significant (25%) Change |
| Debtors Turnover |
NA |
3401.42 |
No Sale during the reporting year |
| Inventory Turnover |
NA |
NA |
No Sale during the reporting year |
| Interest Coverage Ratio |
NA |
NA |
NA |
| Current Ratio |
0.45 |
0.51 |
No Sale during the reporting year |
| Debt-Equity Ratio |
NA |
NA |
NA |
| Operating Profit Margin (%) |
NA |
(473.04) |
No Sale during the reporting year |
| Net profit Margin (%) |
NA |
(563.20) |
No Sale during the reporting year |
CAUTIONARY STATEMENT
The statement in the Management Discussion and Analysis describing the Companys
objectives, projections, estimates and expectations are forward looking statements within
the meaning of applicable laws and regulations and which the management believes are true
to the best of its knowledge at the time of preparation. Actual results may differ
substantially or materially from such expectations whether expressed or implied and hence,
the Company and the management shall not be held liable for any loss, which may arise as a
result of any action taken based on the information contained herein. Several factors
could make significant difference to the Companys operations. These include climatic and
economic conditions affecting demand and supply, government regulations and taxation,
natural calamities over which the Company does not have any direct control.
For and on behalf of the Board of Directors |
|
Shyam Telecom Limited |
|
Sd/- |
|
Ajay Khanna |
|
Director |
Sd/- |
DIN : 00027549 |
Nishi Sabharwal |
Place – New Delhi |
Director |
Date – 10th August, 2023 |
DIN : 06963293 |
+91-9892691696
