Tridhya Tech Ltd Management Discussions

SEGMENT WISE PERFORMANCE

The Company is carrying out its operations in IT Solutions Developments & Maintenance Services and IT Staff Augmentation.

RISK AND CONCERN

The risk management function is integral to the company and its objectives includes ensuring that critical risk are identified continuously, monitored and managed effectively in order to protect the companys business. However, the changes in the tax laws, Government policies and regulatory requirement might affect the companys business. The management has laid down robust risk management framework essential for identification, assessment, monitoring and mitigation of various risks to ensure smooth flow of operations adhering to stringent guidelines.

INITIATIVES BY THE COMPANY

The Company has taken the following initiatives:

Inorganic Growth

Inorganic growth is considered a faster way for a company to grow compared to organic growth. The Company has adopted the policy of inorganic growth for faster development of the business, access to new markets, boost companys earnings and get the additional skills and expertise of new staff, the company, acquired Two companies and in FY 2023-24 acquired another two companies for faster growth.

Upgrade and Refine

We are passionate about technology and so we keep up with the market pace to adapt rapidly as the technology evolves. Being passionate about new tech trends, we easily upgrade our solutions with the implementation of cutting- edge tech. We are flexible and keep on refining by incorporating high-end solutions to stay aligned with the market.

Employee friendly policies for Human Resources

In IT related Company the success, growth and quality of the product and timely delivery of the product depends upon the expertise, experience and skill of the employees. The Major cost component of the Company is Employees salary and benefit cost. Our company has adopted employee friendly policies to attract, train, motivate and retained the employees for the Company. The Company are providing destress zones, Inhouse Cafeteria and good infrastructure facilities which reduces the employee turnover of the company. The best performing employees are rewarded by the Company in addition to the normal remuneration. The promoter has philosophy to share the wealth with the employees which has created with their dedication towards work.

Focus on a targeted client portfolio

We intend to build long-term sustainable business relationships with our clients to generate greater revenues. As part of the strategy, we plan to have an optimal client portfolio to better focus and serve our clients across the geographies and industries in which we do business. Our ability to establish and strengthen client relationships and expand the scope of services we offer to clients will help us grow our revenues and profits.

Focus on expansion across each vertical to capitalize on industry opportunity

We regularly track new technologies, industry segments and market trends in the IT solutions market. We plan to expand our service offerings as and when there exists an opportunity. We believe that IT has great potential for development leading to value addition in the entire value chain. We propose to gain expertise in every new technology platform coming up in the market for value added services, cost-competitiveness, speed and easy to use. Our company proposes to use innovative ideas and concepts to achieve performance parameters set by the clients in their day-to- day business processes.

Participating in Larger Projects

We are targeting clients who have the potential to offer opportunities with large total contract values. We intend to originate large engagements by either identifying opportunities with our existing clients or by targeting new clients whose existing engagements with IT vendors will be up for renewal.

Focus on greater internal operational efficiency

We plan to develop and invest in frameworks, accelerators, in-house proprietary solutions and customized software processes to drive efficiencies internally. We also plan to increase our profitability by streamlining our cost structure with a focus on high employee utilization and optimizing resource mix.

OUTLOOK

The profit margins in the industry are high. However, the Company has taken required remedial measures. The Company is confident to meet the challenges with its strength in marketing network, its strategic planning, Research & Development and cost reduction exercise.

FINANCIAL PERFORMANCE OVERVIEW

On standalone basis, your company during the year under review has reported total revenue of Rs. 3667.42 Lakhs which is comparatively significant than last years total revenue of Rs. 1516.84 Lakhs. The net Loss of the year under review is amounting to Rs. (36.45) Lakhs as against profit Rs.246.66 Lakhs reported in the Previous Year.

Further during the Year 2023-24, Tridhya Tech Limited has acquired the business and operations of software development companies i.e Table Flow Tech Private Limited & CodUp Technologies Private Limited.

On a Consolidation basis, Total Revenue of the Company during the Financial Year under review is Rs. 3527.76 Lakhs. The Consolidated Profit after tax for the Financial Year under review is amounting to Rs. (49.19) Lakhs.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIALYEAR ALONG WITH A DETAILED EXPLANATION THEREOF

The Company has acquired two more private companies during the year and due to the investment company has earned less return as compare to last year.

INTERNAL CONTROL SYSTEMS & RISK MANAGEMENT

The Internal Control System facilitates the effectiveness and efficiency of Company operations and ensures the reliability of financial information and compliance with laws and regulations. In particular, the accounting control system is an important element of the Internal Control System as it helps ensure that the Company is not exposed to excessive financial risks and that financial internal and external reporting is reliable. Your Company has robust internal audit and control systems. They are responsible for independently evaluating the adequacy of internal controls and provide assurance those operations and business units adhere to internal policies, processes and procedures as well as regulatory and legal requirements. Internal audit team defines and review scope, coordinates and conducts risk based internal audits with quarterly frequency across Company through their audit firm. Existing audit procedures are reviewed periodically to enhance effectiveness, usefulness and timeliness. The Internal control procedures include proper authorization and adherence to authorization matrix, segregation of roles and responsibilities, physically verification, checks and balances and preventive checks on Compliance risk and overseeing of periodical financials etc.

Internal audit entails risk assessment and detailed verification of processes, adequacy of maintenance of accounting records, documentation and supporting, authorizations, review of internal controls, compliance with management policies and laid down procedures, compliance with applicable accounting standards and to verify adherence with applicable statutes, rules, regulation, byelaws, and circulars of the relevant statutory and regulatory authorities.

Your Company continuously monitors and revisits the risks associated with its business. It has institutionalized the procedure for identifying, minimizing and mitigating risks and the same are reviewed periodically. The Companys Structured Risk Management Process attempts to provide confidence to the stakeholders that the Companys risks are known and well managed. The management of the Company has identified some of the major areas of concern having inherent risk, viz. Client Concentration, Technology Risks and Credit Control. The processes relating to minimizing the above risks have already been put in place at different levels of management. The management of the Company reviews the risk management processes and implementation of risk mitigation plans. The processes are continuously improved. Risk Management comprises three key components which are as below: Risk identification Risk assessment and mitigation

Risk monitoring and assurance.

The risk mitigation plans are reviewed regularly by the Management and Audit Committee of your Company.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company takes pride in the commitment, competence and dedication of its employees in all areas of the business. The Company has a structured induction process at all locations and management development programs to upgrade skills of managers. Objective appraisal systems based on key result areas (KRAs) are in place for senior management staff. Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs. In order to focus on keeping employees abreast of technological and technical developments, the Company provides opportunity for training and learning. The overall Industrial relations atmosphere continued to be cordial.

CAUTIONARY STATEMENT