Shyama Infosys Ltd Management Discussions

OVERVIEW OF INDUSTRY

The year 2024 began with signs of improved economic activity across major regions. The world GDP grew at a steady rate of 3.3%. Despite divergent growth patterns across regions and sectors, the global technology landscape demonstrated unexpected stability.

However, in recent weeks, the global outlook has turned negative, as governments worldwide adjust their policy priorities, leading to unprecedented levels of uncertainty. The rapid escalation of trade tensions and extremely high policy uncertainty are anticipated to significantly impact global economic activity. Projections indicate that global growth will decline to 2.8% in 2025 and 3% in 2026. Amid these ongoing macroeconomic challenges, new discretionary projects requiring technology investments will face increased scrutiny and require stronger justifications for return on investment.

In 2025, enterprises will be accelerating adoption of AI into their digital core, to address technical debt and modernize legacy systems. This will require efforts in cloud migration, updating infrastructure frameworks and developing a strong data foundation. Enterprises also face a complex risk landscape with cyber security threats and geopolitical tensions, making them prime targets for cybercriminals due to their valuable intellectual property and customer data. Enterprises will continue to strengthen their cyber security management processes, leading to continued investments in security consulting services.

COMPANYS OVERVIEW

The Company is engaged in and conduct businesses in Information Technology sector, Computer Hardware and Software, Telecommunication in India and/or abroad and to buy, sell, franchise, license, supply, market, deal in import, export, design, develop, customize, improve all types of telecommunications, hardware and software systems, products, programmers and their applications and carry out off-site and on-site software development in India and abroad including internet; to develop, supply, improve, design, market, sell license, maintain, operate, provide and deal in internet multimedia , internet, ecommerce, e-magazines, and of news, articles, information on electronic media on daily, weekly, fortnightly or monthly basis and other related methods of electronic communications and data transfer and networking and allied fields and activities in information technology, to act as internet service provider or as channel services provider providing services inter-alia in the field of web housing, web designing, web hosting, web marketing, internet network technology solutions and also to provide server technology, internet network technology and to carry out other web related activities to provide services in the field of OPT IN- Mall and data based management and marketing and offer integrated services in the field of electronics, telecommunications such as integrated digital network, VOIP networks, private networks, internet and internet based solutions.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS

The economy is expected to continue with GDP growth rate in the current year. The increased thrust on the infrastructure sector, including power, roads, telecom etc. will continue to provide excellent investment opportunities in the future. Moreover, the growth of the service sector presents new opportunities for the financial services industry in India.

Your Company faces stiff competition from Nationalised, Foreign and Private Banks due to its ability to grant loan at a considerably low rate of interest.

The Company has it own specific risks that are particular to its business and its environment within which it works including fluctuation of interest rates, economic cycle etc. Your company manages this risk by maintaining prudent and commercial business practices and a comprehensive Risk Management Policy.

BUSINESS OUTLOOK

Your Company intends to invest in businesses related to infrastructure, telecommunication, software etc. in the coming years since it sees growth in these areas. It will definitely try to establish itself and remain as a strong player in the finance industry. With the Capital market expected to be in a better mood than the previous few years and with our efforts we can look forward to a prosperous year for the company.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place adequate internal control systems and procedures commensurate with the size and nature of its business. These procedures are designed to ensure:

That all assets and resources are used efficiently and are adequately protected;

That all internal policies and statutory guidelines are complied within letter & spirit;

The accuracy and timing of financial reports and management information.

The Audit Committee meets periodically to review and discuss the various Internal Audit reports, and follow up on action plans of past significant audit issues and compliance with the audit plan.

FINANCIAL OPERATIONAL PERFORMANCE

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP) in India. (Rs. In Lacs)

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS/ NUMBER OF PEOPLE EMPLOYED

The Company believes that people are the key ingredient to the success of an organization. Looking after people makes good business sense because, if people are motivated, service excellence will follow. The Company recognizes the importance and contribution of its Human resources towards its growth and development and is committed to the development of its people.

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:

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.

The details of return on net worth at standalone and consolidated levels are as follows:

CAUTIONARY STATEMENT

Statements in the Management Discussion & Analysis describing the objectives, projections, estimates and expectations of the Company, its direct and indirect subsidiaries and its associates, may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply, price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws, and other statutes and incidental factors.