stampede capital ltd share price Management discussions

1. GLOBAL ECONOMIC OUTLOOK, INDIAN ECONOMY OUTLOOK AND OVERVIEW OF MARKETS AND INDUSTRY STRUCTURE:

Economic Recovery: The global economy has continued its recovery from the COVID-19 pandemic, with many countries experiencing robust growth in 2022 and 2023. The reopening of businesses and vaccination efforts have supported this rebound.

Supply Chain Disruptions: Supply chain disruptions and inflationary pressures have persisted, impacting production and costs for many companies. The software industry may face challenges related to sourcing hardware components and managing costs.

Technology Adoption: Digital transformation accelerated during the pandemic, leading to increased demand for software services. Companies that can harness emerging technologies like AI, blockchain, and cybersecurity are likely to thrive.

Indian economy outlook

India was among the fastest-growing major economies in the Current Year 2022 according to the

International Monetary Fund (IMF). It has overtaken the UK to become the world?s fifth-largest economy with a GDP of $3.53 Trillion in the Current Year 2022 and is now behind only the US, China, Japan and Germany. The Indian economy has witnessed a strong rebound in economic activity during the pandemic, a large part of which has been driven by increased private-sector consumption and a higher government focus on infrastructure development.

Despite global challenges and tighter domestic monetary policy, India?s growth momentum remained steady.

Source: Economic Survey Summary January 31, 2023.

Budget 2022-23 was in continuation of the blueprint drawn for the government?s vision for the next 25 years - the Amrit Kaal. The journey during Amrit Kaal envisions a technology and knowledge-driven society with strong public finances and a robust financial sector.

Economic Outlook:

The World Bank, in its India Development Update April 2023 noted that despite significant challenges remaining in the global environment, India is one of the fastest-growing economies in the world. It projects that India?s growth continues to be resilient despite some signs of moderation in growth. It expects the economy to grow at a robust 6.3% in FY 2023-24 on the strength of strong investment activity bolstered by the government?s capex push and buoyant private consumption, particularly among higher-income earners.

The Economic Survey expresses optimism that the Indian economy has made significant progress after being impacted by the pandemic and has achieved full recovery in FY 2021-22 ahead of many other nations, positioning itself to return to pre-pandemic growth in FY 2022-23. However, the current year has presented a new challenge of controlling inflation that has been worsened by the European conflict.

Digital India: The Digital India initiative is driving digital adoption across sectors. Companies in software and financial consultancy should align their services with government objectives to tap into new opportunities.

Economic Growth: India is expected to see a robust economic rebound in 2023, with GDP growth projected to be strong. The software industry is a significant contributor to Indias economic growth and is likely to benefit from increased global technology spending.

Regulatory Environment: Indias regulatory environment continues to evolve. Companies must stay updated on policies related to data privacy, taxation, and foreign investment, which can affect their operations.

Skill Development: The software and financial consultancy sector depends on a highly skilled workforce. Continuous investment in talent development and upskilling is crucial to remain competitive.

Infrastructure Development: Investment in infrastructure, including digital infrastructure, is a priority for the Indian government. This can open up new avenues for businesses in software and technology consulting.

FINANCIAL, MANAGEMENT AND SOFTWARE CONSULTANCY INDUSTRY:

Your company is primarily engaged in the business of Financial, Management, Business, and other ancillary consultancy services.

Although the industry?s growth potential is immense, given the country?s large population and increasing financial literacy, challenges such as financial inclusion and regulatory compliance remain, and addressing them will be crucial to sustaining the industry?s growth trajectory.

The Indian financial, Management and Software consultancy services industry is vast and diverse consisting of private and Public Companies, banks, NBFCs, the insurance-related sector and the new AI-based technologies increasing finance penetration. The opportunity in India is very high and the future growth prospects of the consultancy field and software development service industry in India are very bright.

2. FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE/SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

The Company provide Financial, Management and Software Consultancy Services which is its core activity. The performance of the Company is as under:

The Company growth considering the past few years performance has been satisfactory. The Company is striving further to consolidate its position in the market. Your Company reported a total Income of Rs. 963.82/- (In Lakhs) for the Financial Year ended March 31, 2023, as against Rs. 578.97/- (In Lakhs) during the previous Financial Year. The Company recorded a net loss of Rs. (121.63) (In Lakhs) as against the net loss of Rs. (808.01)/- (In Lakhs) during the previous Financial Year.

3. OPPORTUNITY & THREATS:

The increased thrust on digitalization in the economy, with projects like ‘Digital India?, will further provide a growth catalyst for the demand and consumption of discount brokerage services.

A. OPPORTUNITIES:

Growing Demand for Financial Technology (FinTech): The increasing reliance on technology in the financial sector presents a significant growth opportunity. Offering innovative FinTech solutions can attract new clients and revenue streams. Digital Transformation: Many industries are undergoing digital transformation efforts. Positioning your consultancy as an expert in helping businesses navigate this transformation can lead to substantial contracts. Global Expansion: Consider the potential for expanding your consultancys services internationally. Entering new markets can open up a broader client base and revenue opportunities. Data Analytics and AI: Leveraging data analytics and artificial intelligence can provide more sophisticated financial insights and solutions. Partnerships and Alliances: Collaborations with software providers, financial institutions, or other consulting firms can broaden your service portfolio and market reach. Your company has increased its offerings by acquisition of Software and added several clients. Government push to increase securities market outreach across India and increase in products offering for different types of investors Acceptance of outsourcing as a suitable business model. Using technology to reduce transaction costs and improve compliance.

B. THREATS:

Competition: The consulting industry, especially in software and finance, is highly competitive. New entrants and established competitors can pose a threat to market share. Cybersecurity Risks: As a technology-focused company, the Company is vulnerable to cybersecurity threats. A breach can damage a Companys reputation and financial stability.

Economic Downturns: Economic recessions can lead to reduced corporate spending on consultancy services, affecting your revenue.

Talent Retention: Attracting and retaining skilled consultants and software developers can be challenging. Losing key personnel can hinder project delivery and client satisfaction.

Client Dependence: Relying heavily on a small number of clients can be risky. Losing a major client could have a severe impact on revenue.

Technological Obsolescence: Rapid advancements in technology mean that your software and tools could become outdated quickly. Staying current is essential to delivering value to clients.

Unexpected external events or crises in the face of lack of preparedness and absence of Business Continuity plans.

4. CHALLENGES, RISK AND CONCERN:

There are several unique challenges, risks, and concerns, The Company adopts suitable business strategies to counter these challenges and the company faces other normal business challenges of market competition in its business and needs to continuously seek attractive growth opportunities.

Challenges:

Rapid Technological Changes: Discuss how the fast-paced nature of the software industry poses challenges in terms of staying updated with the latest technologies and ensuring that the companys offerings remain competitive. Market Saturation: Discuss the potential for market saturation in specific consultancy niches and the need to diversify services or target new industries.

Risks:

Client Dependency: Highlight any significant client concentration risks and how the loss of a major client could impact the companys financial stability. Economic Downturn: Explain how economic downturns, such as recessions, can impact demand for software and financial consulting services as clients may cut back on discretionary spending. Project Risks: Discuss the inherent risks associated with project-based work, such as cost overruns, scope changes, and delays, and how these can affect profitability. Competition: Address the competitive landscape and how the company plans to differentiate itself in a crowded marketplace.

Concerns:

Data Privacy and Security: Elaborate on the growing concern among clients and stakeholders about data privacy and security, and how the company is addressing these concerns through policies and practices. Client Trust: Discuss the importance of building and maintaining client trust, especially in the financial sector, and how the company monitors client satisfaction and addresses any issues promptly. Strategic Planning: Address concerns related to the companys long-term strategic planning, including diversification strategies, expansion into new markets, or mergers and acquisitions.

5. INTERNAL AUDIT AND INTERNAL CONTROL SYSTEMS:

As mentioned in sub point E of Point No 11 in Director?s Report.

6. RISK MANAGEMENT:

At GACM Technologies Limited, the process of risk identification is guided by the Company?s objectives, external environment, and stakeholders, among others. Once the risks are identified, it devises plans outlining mitigation actions for the assigned risks. The objective of its risk management framework is to ensure that various risks are identified, measured, and mitigated and that policies, procedures and standards are established to address these risks and ensure a systematic response in the case of crystallization of such risks.

TYPES OF RISK:

A. FRAUD RISK:

We may face fraud risks such as loan fraud, identity theft, internal fraud, and cyber fraud. These risks pose the threat of financial loss and reputation loss, resulting from intentional deception or misrepresentation by individuals or entities, internally or externally.

Mitigation.

Your Company maintain a zero-tolerance policy towards fraud, actively raising awareness and implementing robust controls to prevent any occurrence.

B. REGULATORY RISK:

Any non-compliance with regulations could result in monetary losses and has the capability to damage the Company?s reputation.

Mitigation

The Company ensures strict adherence to applicable rules and regulations owing to a strong internal control framework.

C. OPERATIONAL RISK:

This risk is about the failure of processes and controls in business operations, which can also have an adverse impact on the business continuity, reputation, and profitability of the Company. The Company has a strong operating model well-documented Standard Operating Procedures and a good reporting framework. This ensures that operational risks are minimized at any given point of time.

Mitigation

A robust control and assurance mechanism has been implemented to identify and mitigate operational risks.

7. INFORMATION TECHNOLOGY RISK:

Your Company recognizes the susceptibility of its information technology systems to security threats such as computer viruses, ransomware and malware infection, phishing attacks, security breaches, data leakage, and website hacking, to mitigate these risks, the company installed Several security measures like firewall implementation in the office, moving to 16-digit complex passwords and have been undertaken to secure the IT Infrastructure from cyber security threats. Security tools have been implemented like a secure e-mail gateway to assist in data leak prevention.

8. HUMAN RESOURCES:

At GACM Technologies Limited, we have well-defined policies to maintain effective human resources in the organization. These include; Reward & Recognition to encourage our employees to deliver at their best Statutory Compliance & Regulations for full-time employees, and contractual employees. Equal Opportunity Policy to give fair opportunities to all in the organization.

Intellectual capital is one of the key resources of the Company to ensure business sustainability and growth. The Company has an experienced and talented pool of employees who play a key role in enhancing business efficiency, devising strategies, setting up systems and evolving the business in line with its growth aspirations. The Company provides regular skill and personnel development training to enhance employee productivity.

The Company believes in meritocracy and performance is rewarded. To support fast-paced growth, the Company has been actively hiring highly competent individuals, who have strong domain knowledge. To keep up with the changing environment training is provided to all the employees on products, processes, and systems is tested periodically.

As part of Company processes, the Company follows a robust leadership potential assessment and leadership development process. These processes identify and groom leaders for the future and also enable succession planning for critical positions in the Company. The Company has a strong culture of innovation and challenging the status Quo. The business leaders and employees in the Company are encouraged to think like entrepreneurs and create value for all stakeholders. The Company endeavors to provide a safe, conducive and productive work environment. As on March 31, 2023, the Company had five employees.

Our Company also places a strong emphasis on offering career-enhancement opportunities to its employees. With a focus on promotions, role enhancement, and job enrichment, GACM Technologies Limited, ensures that individuals can continually grow and advance in their careers within the organization. This commitment for professional development shall act as a magnet for ambitious and talented individuals who are seeking an environment that nurtures their growth.

9. KEY FINANCIAL RATIOS:

Sr. No.	Particulars of Ratio	F.Y. 31.3.2023	F.Y. 31.3.2022	Explanation for change in Ratios
1.	Debtors Turnover	-	-	Not Applicable
2.	Inventory Turnover	-	-	Not Applicable
3.	Interest Coverage Ratio	50.34	-1185.29	Interest coverage Ratio improved compared to previous year due to increase in EBIT compared to previous year.
4.	Debt Equity Ratio	-2.57	-2.78	Not Applicable since change is not more than 25 %
5.	Current Ratio	2.62	2.66	Not Applicable since change is not more than 25 %
6.	Operating Profit Ratio (%)	5.55%	-542.71 %	Increase in operating profit ratio is due to increase in revenue from operations compared to previous year
7.	Net Profit Ratio (%)	-12.70%	-624.84	Increase in net profit ratio is due to increase in revenue from net profit compared to previous
8.	Return on Investment (%)	- 9.92	- 73.48	Increase in return on investment (assets) is due to increase in assets from return on compared to previous year
9.	Return on Capital Employed (%)	-1.51	-140.03	Increase in return on capital employed is due to increase in debt from return on compared to previous year

10. DETAILS PERTAINING TO THE NET-WORTH OF THE COMPANY.

In Lakhs

	31.03.2023	31.03.2022
Particulars			Explanation for change in Net-worth
	(In Rs.)	(In Rs.)
Net-worth	(669.45)	(602.09)	During the year the Net-worth of the Company was reduced in comparison with the previous year. Net-worth of the Company eroded due to losses incurred by the Company during the year.

11. CAUTIONARY NOTE:

Statements in the Management Discussion and Analysis outlining the Companys This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the management?s plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as ‘anticipate?, ‘estimate?, ‘expects?, ‘projects?, ‘intends?, ‘plans?, ‘believes? and words of similar substance in connection with any discussion of future performance. Estimates, perceptions and expectations may be forward-looking statements within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed herein above due to certain factors which may be beyond the control of the Company.

We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Place	: Hyderabad		For and On Behalf of the Board of Directors
Date	: September 05, 2023
		Sd/-	Sd/-
		Mr. Jonna Venkata Tirupati Rao	Mr. Anil Thakur
		Managing Director	Chairman
		DIN: 07125471	DIN: 08945434