1. Overview
• Economy & Industry Overview
The six challenges are faced by the Global Economy in 2022-23. The first one was
COVID-19 related disruptions in economies. The Second was medium-term challenge to growth
was seen in the scarring from the pandemic brought in by the loss of education and
income-earning opportunities. The third & fourth challenge being Russian-Ukraine
conflict and its adverse impact along with disruption in supply chain, mainly of food,
fuel and fertilizer. The fifth challenge emerged as faced with the prospects of global
stagflation, nations, feeling compelled to protect their respective economic space, thus
slowing cross-border trade affecting overall growth. The sixth challenge was festering as
China experienced a considerable slowdown induced by its policies.
The Indian Economy stood resilient against all the above headwinds and vulnerability,
has shown a stable growth and have recorded a GDP of 7.0 percent in 2022-23. Payments
Vision 2025 was released by RBI with the core theme of e-Payments for Everyone, Everywhere
and Everytime. The Vision aims to provide every user with safe, secure, fast, convenient,
accessible, and affordable e-payment options.
India progressing towards being worlds third largest economy by 2030, tools innovated
by start-up in recent breakthrough like Artificial Intelligence (AI), OpenAI, Machin
Learning (ML) speaks volumes about the power technology to drive economic prosperity and
possibility of achiving all set goals.
• Business Overview
Suvidhaa Infoserve Limited (NSE: Suvidhaa) one of Indias largest Rural Fintech
company, was formed in 2007 with a vision to build a robust & easily accessible
platform that will offer every household, access to a world of services within their own
neighbourhood. Customers pain point moves us to deliver pioneering solutions.
In a cash dominant economy like India, where millions are still excluded from the
formal banking system, Suvidhaa works with Banks to empower these unbanked people by
giving them the capability to access digital financial services for the very first time.
By providing a multitude of digital financial services, Suvidhaa is an one- stop shop
for Enterprises & SMEs in their quest of serving the end customer. Thus, the Suvidhaa
platform acts as a bridge and creates value for both, the Banks as well as the end users
and merchants.
We aim to create an organized digital network and capturing the entire Retail Commerce
ecosystem of Indias unorganized retail sector through a retail tech platform that
provides retailers with digital financial and business solutions to enable business
expansion and scaling.
Suvidhaas functional technology platform is an agile, robust system - on one end
integrated with service providers and on other the franchisee network with advanced
capability to process settlement on real-time basis. Over 300 Service Providers ride on
Suvidhaas robust S-Commerce? Platform to reach their last mile with a focus on
bottom-of- the- pyramid i.e. one billion Indians.
Suvidhaa also provides an all-in-one solution for Loyalty, rewards, incentives and
recognition to empower brands to maximize their customer acquisition efforts and turn
transactional sales into passionate brand advocates. We offer fully customizable programs
to match the brand, a wide product catalog and multi-language capabilities. Suvidhaa
builds omni-channel (website, mobile App or In-store POS machines) CRM tech solutions for
its partners to build a strong brand community.
Physical Distribution Network |
Over 43M Unique Customers Last mile connectivity Pan-India Presence
Trained Retail touch points Mobile delivery platforms (PC, Mobile, Tablet, POS) |
Service & Merchant Aggregation |
Service providers across a wide range of verticals Multiple service
categories Wildest Customer-centric Services Bouquet Dominant Player in India for
Financial Inclusion Bridging the Digital Divide |
Payment Operating System |
Multiple Payment Platforms (Cash & Online Gateways) Cash-In
and Cash-Out options Servicing the Unbanked and Banked Real-Time updation of
Customer Records Leveraging a decade of Leadership position to build the most Robust Rule
& Validation Engine in the Industry |
2. Opportunities and Threats.
With more than $9Bn in investments in digital lending in the last 5 years the market is
expected to grow to $515 Bn in book size by 2030, results in increase consumer spend in
digital world. Regulators are actively encouraging innovation through regulatory
sandboxes, new distribution models, and the launch of innovative products. India stack and
innovation by FinTech companies have powered the financial inclusion revolution being
witnessed across the country. Innovative solutions are being deployed to serve Tier 3
onward market. 5X growth in digital tech talent creates an opportunity for India to
address the global digital skill gap and establish itself as the destination of digital
and tech talent.
According to a Boston Consulting Group report released March 2021, Indian fintech
companies will reach a valuation of US$150-160 billion by 2025, becoming three times more
valuable in five years.
With new opportunities there comes a threat and for FinTech sector in India cyber
security and online fraud has been a big threat. But with innovative technology solutions
and assisted service commerce Suvidhaa has been better poised to tackle the same in
digital environment.
3. Risks and concerns
• Risk related to Information Technology and Networks:
Our business is technology driven, and we rely on information technology and networks
and related infrastructure. As such, our business operations and quality of our service
depend significantly on the efficient and uninterrupted operation and reliability of our
information technology systems and networks and related infrastructure, both internal and
external. Further, any slowdown or negative deviation in the anticipated increase in
internet penetration in India will affect our ability to attract and add new merchants and
customers.
Our Company operates in the technology industry which is constantly changing and is
significantly governed and affected by scientific breakthroughs, developments, innovation,
government policy and laws pertaining to information technology as well as intellectual
property. These factors can affect the demand, pricing and value of our products and
services which have already been developed and which are in the course of being developed.
Our continued growth will depend upon our ability to sustain cutting edge technology
solutions, adapt to the updated/superior/modified technology which we may be required to
use with time and to train our executives in order to utilize the technology and the
talents of our human resource to their maximum potential.
• Risk related to the services provided by the Company:
Secure transmission of confidential information, such as details of customers credit
card, net banking passwords etc. over public networks is one of the significant barriers
to online commerce and communication. We rely on encryption and authentication technology
licensed from third parties to provide security and authentication which is necessary to
effect secure transmission of confidential information. We accept payments using a variety
of methods, including credit card, debit card and net banking. As we continue to offer
newer payment options to users and customers, we may be subject to additional regulations,
compliance requirements and fraud. There can be no assurances that advances in computer
technology, new discoveries in the field of cryptography, or other developments will not
result in breach or compromise of the algorithms which are currently used by us for
protecting the transaction data of our customers. If any such breach or compromise occurs,
it could have a material adverse effect on our reputation, business, prospects, financial
condition and results of operations.
4. Internal control systems and their adequacy
The internal control systems are commensurate with the size, scale and complexity of
the operations of the Company. These have been designed to provide reasonable assurance
with regard to recording and providing reliable financial and operational information,
complying with the applicable statutes, safeguarding assets from unauthorized use,
executing transactions with proper authorization, and ensuring compliance with corporate
policies. The Company has continued its efforts to align all its processes and controls
with best practices.
The Audit Committee of the Board of Directors, comprising of Independent Directors
reviews the effectiveness of the internal control system across the Company including
annual plan significant audit findings, adequacy of internal controls and compliance with
accounting, policies and regulations.
5. Discussion on financial performance with respect to operational performance
These financial statements are prepared in accordance with Indian Accounting Standards
(Ind AS) under the historical cost convention on the accrual basis except for certain
financial instruments which are measured at fair values, the provisions of the Companies
Act, 2013 (Act) (to the extent notified). The Ind AS are prescribed under Section 133 of
the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016.
Accounting policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing accounting standard
requires a change in the accounting policy hitherto in use.
(Amount in million)
Particulars |
2022-23 |
2021-22 |
Revenue from Operations |
312.90 |
380.50 |
Other Income |
98.10 |
33.90 |
Total Income |
411.00 |
414.50 |
Employee benefits expense |
17.60 |
31.10 |
Finance costs |
3.70 |
0.60 |
Depreciation and Amortisation expense |
138.80 |
140.40 |
Other Expenses |
118.70 |
46.40 |
Total Expenses |
428.50 |
479.30 |
Exceptional items |
- |
2.70 |
• In fiscal year 2022-23, the Company experienced fluctuations in its financial
performance, at standalone basis, gross revenue decreased from Rs. 414.50 Mn to Rs. 373.17
Mn, whereas substantial improvement in loss after tax, which decreased to Rs. 7.54 Mn, as
opposed to Rs. 62.16 Mn in the previous year. Despite the decline in revenue, the Company
was successful in significantly reducing their losses, by optimizing cost, leading to a
more stable financial position of your company.
• Further, at consolidated level, the Companys turnover slightly dropped in the
current fiscal to Rs. 411 Mn from the previous fiscal of 2021-22 at Rs. 455.72 Mn.
Nonetheless, a significant decrease in post-tax losses was notable, with the loss reducing
to Rs.17.51 Mn against the loss of Rs. 24.93 Mn for previous year.
• The company makes contributions, determined as a specified percentage of
employee salaries, in respect of qualifying employees towards provident fund and employee
state insurance which is a defined contribution plan. The Company has no other obligation
other than to make the specified contributions. The contribution is charged to the
Statement of profit and loss as they accrue.
6. Details of significant changes in key financial ratios are as given below:
Particular |
2022-23 |
2021-22 |
Debtors Turnover (in times) |
2.89 |
3.10 |
Inventory Turnover (in times) |
- |
- |
Interest Coverage Ratio (in times) |
36.84 |
131.66 |
Current Ratio (in times) |
1.59 |
1.40 |
Debt Equity Ratio |
0.05 |
0.05 |
Operating Profit Margin (%) |
48.51% |
20.72% |
Net Profit Margin (%) |
-1.75% |
-15.07% |
Net worth |
1149.00 Million |
1082.50 Million |
7. Material developments in Human Resources / Industrial Relations front, including
number of people employed.
We have in place a well-defined Code of Conduct and ensure that ethical business
practices are followed at all levels of the organisation. To maintain a constant connect
between the organizational goals and employee performance, we have put in place a fair and
objective performance management system. As on 31st March, 2023, we had employee strength
of 26 people.
8. Cautionary Statement
Statements in this document/discussion relating to future status, events, or
circumstances, including but not limited to statements describing the Companys
objectives, projections, estimates and expectations maybe forward looking statements
within the meaning of applicable laws and regulations. Such statements are subject to
numerous risks and uncertainties and are not necessarily predictive of future results.
Actual results could differ materially from those expressed or implied. Important factors
that could make a difference to the Companys operations include economic developments,
improvements in Fintech ecosystem, changes in the Government regulations in India &
other incidental factors.
For and on behalf of the Board of Directors |
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Suvidhaa Infoserve Ltd. |
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Sd/- |
Sd/- |
|
Tanuj Rajde |
Naresh Sharma |
Place: Mumbai |
Chairman (Non-Executive) |
Managing Director |
Date: August 12, 2023 |
DIN:09066867 |
DIN:09071085 |
+91-9892691696
