sps international ltd share price Management discussions

Industry structure and development

The business of the company has been directly connected with the education awareness & initiatives, examination and student activities etc. An effective and strong government education policy also plays a key role in overall education awareness and nationwide literacy which directly impact on the overall education industry.

During the period under review, the business of the company which was already impacted due to Covid-19 pandemic, educational institutions and competitive examinations were completely closed and restricted by the local government authorities for a period of almost two years, could not be stabilized and normalized. Further, for the company, financial year 2022-23 has been in the phase of takeover of management by new promoters group under the dynamic leadership of Mr. Rahul Jain. The demand of the products and services of the company has remained subdued due to switching over all the major examinations to online method of test. The company is planning to undertake restructuring of its product mix to get its optimum advantages.

Opportunities and threats

There is always great opportunity for the company due to ever growing number of Educational Institutes, Skilled Development Centers and overall thrust of our Central Government and State Governments to generate and provide more employment. These are the application areas of the products and services of the company through technological advance. These opportunities are accompanied by threats also due to increasing cases of unfair means and cyber security threats. The management is actively considering all risk factors and opportunities in identifying a suitable business opportunity to minimize the long term business risk to protect the interest of the all stakeholders.

Outlook and future prospects

Recently during the year under review itself, the new promoters have taken over the management of the company. New promoters and key management team has commitment to enter into such business operation in the company which remain sustainable and growth oriented for the long term in future. New business opportunities are being examined and evaluated based on various risk and opportunity cost.

Risks and concerns

In todays complex business environment, almost every business decision requires executives and managers to balance risk and reward. Effective risk management is therefore critical to an organizations success. Globalization, with increasing integration of markets, newer and more complex products & transactions and an increasingly stringent regulatory framework has exposed organizations to newer risks. As a result, todays operating environment demands a rigorous and integrated approach to risk management. Timely and effective risk management is of prime importance to our continued success. Increased competition and market volatility has enhanced the importance of risk management. The sustainability of the business is derived from the following:

1. Identification of the diverse risks faced by the company.

2. The evolution of appropriate systems and processes to measure and monitor them.

3. Risk management through appropriate mitigation strategies within the policy framework.

4. Monitoring the progress of the implementation of such strategies and subjecting them to periodical audit and review.

5. Reporting these risk mitigation results to the appropriate managerial levels.

Human resources

The Company has a system for continuous development of its employees, whereby the performance and competencies of the individuals are measured. The requirements of the organization are matched with profile of the individuals. In case of any improvement areas, on the job training/ special programmes are being organized. This process has helped in career planning and growth of the employees.

Internal control systems and their adequacy

The Company has established internal control systems, which provide reasonable assurance with regard to safeguarding of the Companies assets, promoting operational efficiency and ensuring compliance with various statutory provisions. The internal control systems are reviewed at a reasonable period of time by management and statutory auditors. The Report on the internal control systems is also placed before the Audit Committee regularly. The Statutory Auditors also review the findings with the Senior Management and Audit Committee. The Company is accredited with the IS0 9001- 2008 certification by VINCOTTE.

Cautionary statement

This report describing the companys activities, projections about future estimates, assumptions with regard to global economic conditions, government policies, etc. may contain “forward looking statements” based on the information available with the company. Forward-looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the companys operations are affected by the many external and internal factors, which are beyond the control of the management. Hence, the company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.

By the order of the Board For SPS International Limited

Sd/- Place: Faridabad Rahul Jain Date: 01/08/2023 Chairman and Managing Director DIN: 00442109