Tranway Technologies Ltd Management Discussions.

• Indian Economic Scenario

The outbreak of the Covid-19 pandemic is an unprecedented shock to the Indian economy. The economy was already in a parlous state before Covid-19 struck. With the prolonged country-wide lockdown, global economic downturn and associated disruption of demand and supply chains, the economy is likely to face a protracted period of slowdown. Financial year (FY) 2020, has been difficult for businesses. IMFs World Economic Outlook of April 2020 slashed Indias GDP growth forecast from 4.2% in FY2020 to 1.9% in FY2021 from 5.8% projected earlier in January 2020 report.. The severe disruption of economic activities caused by virus, both through demand and supply shocks, has overtaken the incipient recovery in the Indian economy.

• Industry Structure, Developments and Outlook

The Company is engaged into IT Consulting, Software development and Staffing Resources for its clients across the Globe. The Company is majorly into Staffing Services. The Management has considered the impact of Covid-19 on the business of the Company and has detailed in Boards Report.

We provide our clients with competitive advantages by applying various emerging technologies and ensuring cyber resilience and cyber assurance.

Given the proliferation of COVID-19 throughout India, the Company remained committed to its belief of protecting the health, safety and well-being of employees were its paramount objectives. Consequently, special attention was paid to and invested in health of its employees and related safety initiatives. As a step towards this, the employees were given ‘work from home (WFH) model from 22 March 2020. Even today, the Companys HR business partners and team facilities are in constant touch with all employees to provide support, as required. Looking into the current scenario the Management is positive to overcome this condition. We will remain resolute in our goals of employee safety, business continuity and of being a trusted partner to our customers.

Although the impact of COVID-19 has hit businesses in multiple ways, and recruitment is no exception, however, the management is positive in its approach to strengthen the growth and stability of the organisation. While all business segments will ultimately rebound to normalcy, each of them will evolve differently over time. On a positive note, it is also expected that businesses will become more digital than ever before.

Further in the post COVID-19 era, it is most likely that the Company will focus on the core business activities and look at opportunities to relook at our business model.

• Opportunities, threats and challenges

The only silver lining of the pandemic is the effort towards more digital transformation. The importance of digital channels, products and operations became immediately obvious to most of organization in early 2020 with the outbreak of corona virus. Organisation has now started shifting to invest in digital platforms and technology capacity to master future challenges. The Company is continuously integrating new technologies in its portfolio to offer platform led digital transformation. This opens up more opportunities for the Companys business.

• Risks and concerns over the business of the Company:

Under the present scenario The recruitment industry has been severely impacted and our own business is facing employee termination by many global flagship organisation and also lesser hiring trends by the conglomerates.

The industry is witnessing an adoption of disruptive technologies, evolution in business models and consumer spending patterns. This is a threat to growth in traditional IT spends and technology obsolescence. The Indian IT companies and MNC IT service companies having sizable presence in low cost geographies, deep pockets, strong client relationships, in-house and captive services companies etc. are competing with global players. This stiff competition can pressurize pricing, vendor consolidation and impact the Companys growth and profitability

• Internal Control System and Planning:

The management has developed internal control and planning to cope with the losses suffered due to this pandemic. The Company is providing reasonable assurance of regarding the transaction in all the operating respects and protection against any material misuse or losses of Companys assets and compliance with the applicable laws and regulations. etc.

The Company has proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition, and those transactions are authorized, recorded and reported correctly. Internal controls are supplemented by an extensive programme of internal audits, review by management and the

Audit Committee, and documented policies, guidelines and procedures. The internal control system is designed to ensure that financial and other records are reliable for preparing financial information and other data, and for maintaining accountability of assets.

• Material developments in Human Resources / Industrial Relations

The Company continues to maintain a very cordial and healthy relationship with its workforce across all its units.

We at Tranway are striving towards attracting, retaining, training, multi-skilling employees and working towards the welfare of our resources. In the meantime, all efforts are being made to control cost so as to maintain present level of liquidity. Industrial relations remained stable throughout the financial year 2019-20.

• Financials

The performance of the Company for the financial year 2019-20 is summarized below:

Particulars For the Year ended 31st March 2020 For the Year ended 31st March 2019
Income from Business Operations 44,022,202 51,338,030
Other Income 3,11,619 415,021
Total Income 44,333,821 51,753,051
Profit before Interest, Depreciation & Tax 11,30,217 32,49,409
Less: Interest - -
Less: Depreciation - -
Profit after depreciation and Interest
Less: Current Income Tax(Inc: earlier year tax) 3,61,790 10,95,570
Less: Deferred Tax (67,932) (2,48,020)
Net Profit/Net Loss after Tax 8,36,359 24,01,859
Dividend (Including Interim if any and final) - -
Net Profit/Net Loss after dividend and Tax 8,36,359 24,01,859
Amount transferred to General reserve - -
Balance carried to Balance Sheet 8,36,359 24,01,859
Earnings per share (Basic -Weighted Average) 0.25 5.72
Earnings per Share (Diluted-Weighted Average) 0.25 5.72

• Cautionary Statement:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations 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 developments that could affect the Companys operations include a downtrend in the Indian online sector, advertising spends, new disruptive technologies or business models, significant changes in political and economic environment in India, exchange rate fluctuations, tax laws, litigation, labour relations and interest costs.