Trident Techlabs Ltd Management Discussions

OVERVIEW

INDUSTRY STRUCTURE AND DEVLOPEMENT

The global technology solutions industry, particularly within the aerospace, defense, automotive, telecom, medical, semiconductor, and power distribution sectors, continues to evolve rapidly. Increasing demand for advanced technology solutions is driven by the need for innovation, efficiency, and enhanced performance across these sectors. The aerospace and defense sectors are particularly focused on modernizing systems, while the automotive industry is rapidly adopting electric vehicles and autonomous driving technologies. The telecom sector is witnessing growth due to 5G deployment, and the semiconductor industry is seeing unprecedented demand across all applications. The medical sectors technology needs are expanding due to advancements in medical devices and diagnostics, and power distribution is moving towards smart grids and renewable energy integration.

The outlook for the coming year remains positive, with expected growth across both business verticals. We anticipate strong demand in the aerospace, defense, and telecom sectors, driven by technological advancements and increased investment in R&D. The power systems market is expected to benefit from the ongoing transition to renewable energy sources and the development of smart grid infrastructure.

Opportunities:

? Growing demand for advanced engineering solutions in aerospace, defense, and automotive industries. ? Expansion of 5G technology presents significant opportunities in the telecom sector. ? Rising investment in renewable energy and smart grid technologies. ? Increasing focus on digital transformation and automation across industries

- Market Volatility: Fluctuations in demand due to global economic conditions or geopolitical factors.

- Technological Obsolescence: The rapid pace of technological change necessitates continual innovation to stay competitive.

- Supply Chain Disruptions: Potential disruptions in the supply chain, especially for critical components in electronics and semiconductors.

- Cybersecurity Risks: Increasing reliance on digital systems poses significant cybersecurity risks that need to be managed.

- Intense competition in the technology solutions market.

- Rapid technological changes requiring constant innovation and adaptation.

- Geopolitical risks impacting global supply chains, particularly in the semiconductor and defense sectors.

- Economic uncertainties that may lead to reduced spending in R&D and technology upgrades.

The company has established robust internal control systems to ensure the integrity of financial reporting, compliance with applicable laws, and the efficiency of operations. These controls are regularly reviewed and updated to adapt to changing business environments and regulatory requirements. The audit committee periodically reviews the adequacy and effectiveness of the internal controls and risk management processes.

This segment has shown strong performance, particularly in system-level and chip-level electronics design, driven by the increased demand for cutting-edge technologies in the aerospace and defense sectors. Our consulting and engineering services have gained traction, enabling clients to innovate across the product development lifecycle.

The Power System Solutions vertical has experienced steady growth, especially in the integration of power electronics and smart grid technologies. The shift towards renewable energy and increased focus on sustainability have further bolstered demand for our solutions.

The companys financial performance has shown resilience despite challenging market conditions. Revenue growth has been primarily driven by the Engineering Solutions segment, which has seen increased demand across all sectors. Operational efficiencies have been improved through process optimization and cost control measures, contributing to a healthy profit margin.

Net Sales and other income for the financial year 2022-2023 & 2023-2024 is INR 6819.95/- lakhs and INR 7300.39/- lakhs respectively.

The total expenditure for the financial year 2022-2023 & 2023-2024 is INR 6176.21/- lakhs to INR 6035.99/- lakhs respectively.

The total Profit for the financial year 2022-2023 & 2023-20234 is INR 643.74/- lakhs & INR 1264.40/- lakhs respectively.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The company continues to prioritize employee development and engagement. Significant investments have been made in upskilling our workforce to keep pace with technological advancements. The total number of employees as of the end of the financial year stood at [Insert Number]. Industrial relations remained harmonious, with no significant disruptions during the year.

The number permanent employees on the roles of the Company as on 31st March 2024 is 310 employees.

The Return on Net Worth for the current financial year improved compared to the previous year, primarily due to higher net profits and efficient capital allocation. The companys strategic focus on high-margin projects and cost optimization efforts contributed to this improvement.

The Company commits to ethical and sustainable operation in all business activities. Company maintains and implements an Environmental Management System (EMS) for meeting the purpose of organizations policy and objectives regarding environment. The aims of the system is use of processes, practices, techniques, materials, products, services or energy to avoid, reduce or control the creation, emission or discharge of any type of pollutant or waste, in order to reduce adverse environmental impacts. Adequate Occupational Health & Safety Management System is adopted by the Company for ensuring the conformance to the Occupational Health & Safety Management System, legal & statutory requirements, continual improvement and satisfaction of interested parties (i.e. customers, suppliers, employees and public).

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standard: our company has followed all required accounting standards also disclosed significant accounting policy. Financial statements include balance sheet, profit and loss, cash flow statement with schedules/Notes.

CORPORATE GOVERNANCE REPORT

As per regulation 15(2) of the Listing Regulation, the Compliance with the Corporate Governance provisions shall not apply in respect of the following class of the Companies:

a. Listed entity having paid up equity share capital not exceeding Rs. 10 Crore and Net worth not exceeding Rs. 25 Crore, as on the last day of the previous financial year;

b. Listed entity which has listed its specified securities on the SME Exchange.

Since, our Company falls in the ambit of aforesaid exemption (b); hence compliance with the provisions of Corporate Governance shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2023-24.

Since, our Company falls in the ambit of SME Listed entity; hence compliance with the provisions of declaration signed by the chief executive officer stating that the members of board of directors and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2023-24.

Since, our Company falls in the ambit of SME Listed entity; hence compliance with the provisions of Compliance certificate from either the auditors or practicing company secretaries regarding compliance of conditions of corporate governance shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2023-24.

During the year under review there are no shares in the DEMAT suspense account or unclaimed suspense account, hence this provision is not applicable.

During the year under review the Company has not executed certain types of agreements binding listed entities as required to be disclosed under clause 5A of paragraph A of Part A of schedule III of the Listing Obligations and Regulations Act, 2015.

The statements in the "Management Discussion and Analysis Report" section describes the company objectives, projections, estimates, expectations, and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.