Panache Innovat. Management Discussions


F ORWARD LOOKING STATEMENT

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

The financial statements are prepared under historical cost convention, on accrual basis of accounting, and in accordance with the provisions of the Companies Act, 2013 and the Indian Accounting Standards ("Ind AS"), as notified under the Companies (Indian Accounting Standards) (Amendment) Rules 2016 issued by Ministry of Corporate Affairs in respect of sections 133 of Companies Act 2013. The management of Panabyte Technologies Limited (Formerly known as Panache Innovations Limited) ("PTL") has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner, the state of affairs and profit for the year.

The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company", "Panabyte" are to Panabyte Technologies Limited (Formerly known as Panache Innovations Limited).

We are pleased to present our performance highlights for FY 2022-2023 and the business outlook for this year:

ECONOMIC OVERVIEW

GLOBAL ECONOMY :-

The global recovery is slowing amid widening divergences among economic sectors and regions

Global growth is projected to fall from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards. The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 8.7 percent in 2022 to 6.8 percent in 2023 and 5.2 percent in 2024. Underlying (core) inflation is projected to decline more gradually, and forecasts for inflation in 2024 have been revised upward.

The recent resolution of the US debt ceiling standoff and, earlier this year, strong action by authorities to contain turbulence in US and Swiss banking reduced the immediate risks of financial sector turmoil. This moderated adverse risks to the outlook. However, the balance of risks to global growth remains tilted to the downside. Inflation could remain high and even rise if further shocks occur, including those from an intensification of the war in Ukraine and extreme weather-related events, triggering more restrictive monetary policy. Financial sector turbulence could resume as markets adjust to further policy tightening by central banks. Chinas recovery could slow, in part as a result of unresolved real estate problems, with negative cross-border spillovers. Sovereign debt distress could spread to a wider group of economies. On the upside, inflation could fall faster than expected, reducing the need for tight monetary policy, and domestic demand could again prove more resilient. In most economies, the priority remains achieving sustained disinflation while ensuring financial stability. Therefore, central banks should remain focused on restoring price stability and strengthen financial supervision and risk monitoring. Should market strains materialize, countries should provide liquidity promptly while mitigating the possibility of moral hazard. They should also build fiscal buffers, with the composition of fiscal adjustment ensuring targeted support for the most vulnerable. Improvements to the supply side of the economy would facilitate fiscal consolidation and a smoother decline of inflation toward target levels.

INDIAN ECONOMY :-

State of the Economy 2022-23: Recovery Complete

? Recovering from pandemic-induced contraction, Russian-Ukraine conflict and inflation, the Indian economy is staging a broad-based recovery across sectors, positioning to ascend to the pre-pandemic growth path in FY23.

? Indias GDP growth is expected to remain robust in FY24. GDP forecast for FY24 to be in the range of 6-6.8%.

? Private consumption in H1 is the highest since FY15 and this has led to a boost to production activity resulting in enhanced capacity utilization across sectors.

? The Capital Expenditure of the Central Government and crowding in the private Capex led by strengthening the balance sheets of the Corporates is one of the growth drivers of the Indian economy in the current year.

? The credit growth to the MSME sector was over 30.6% on average during Jan-Nov 2022.

? Retail inflation is back within RBIs target range in November 2022.?

? Indian Rupee performed well compared to other Emerging Market Economies in Apr-Dec 2022.?

? Direct Tax collections for the period April-November 2022 remain buoyant.?

? Enhanced Employment generation seen in the declining urban unemployment rate and in the faster net registration in Employee Provident Fund.?

? Economic growth to be boosted by the expansion of public digital platforms and measures to boost manufacturing output.?

INDIAS MEDIUM-TERM GROWTH OUTLOOK

? Indian economy underwent wide-ranging structural and governance reforms that strengthened the economys fundamentals by enhancing its overall efficiency during 2014- 2022.?

? With an underlying emphasis on improving the ease of living and doing business, the reforms after 2014 were based on the broad principles of creating public goods, adopting trust-based governance, co-partnering with the private sector for development, and improving agricultural productivity.?

? The period of 2014-2022 also witnessed balance sheet stress caused by the credit boom in the previous years and one-off global shocks, that adversely impacted the key macroeconomic variables such as credit growth, capital formation, and hence economic growth during this period.?

? This situation is analogous to the period 1998-2002 when transformative reforms undertaken by the government had lagged growth returns due to temporary shocks in the economy. Once these shocks faded, the structural reforms paid growth dividends from 2003.?

? Similarly, the Indian economy is well placed to grow faster in the coming decade once the global shocks of the pandemic and the spike in commodity prices in 2022 fade away.?

? With improved and healthier balance sheets of the banking, non-banking and corporate sectors, a fresh credit cycle has already begun, evident from the double-digit growth in bank credit over the past months.?

? Indian economy has also started benefiting from the efficiency gains resulting from greater formalization, higher financial inclusion, and economic opportunities created by digital technology-based economic reforms.?

? Indias growth outlook seems better than in the pre-pandemic years and the Indian economy is prepared to grow at its potential in the medium term.?

FISCAL DEVELOPMENTS

? The Union Government finances have shown a resilient performance during the year FY23, facilitated by the recovery in economic activity, buoyancy in revenues from direct taxes and GST, and realistic assumptions in the Budget.?

? The Gross Tax Revenue registered a YoY growth of 15.5% from April to November 2022, driven by robust growth in the direct taxes and Goods and Services Tax (GST).?

? Growth in direct taxes during the first eight months of the year was much higher than their corresponding longer-term averages.?

? GST has stabilised as a vital revenue source for central and state governments, with the gross GST collections increasing at 24.8% on YoY basis from April to December 2022.?

? Union Governments emphasis on capital expenditure (Capex) has continued despite higher revenue expenditure requirements during the year. The Centres Capex has steadily??increased from a long-term average of 1.7% of GDP (FY09 to FY20) to 2.5% of GDP in FY22 PA.

? The Centre has also incentivised the State Governments through interest-free loans and enhanced borrowing ceilings to prioritise their spending on Capex.?

? With an emphasis on infrastructure-intensive sectors like roads and highways, railways, and housing and urban affairs, the increase in Capex has large-scale positive implications for medium-term growth.?

? The Governments Capex-led growth strategy will enable India to keep the growth-interest rate differential positive, leading to a sustainable debt to GDP in the medium run.?

MONETARY MANAGEMENT AND FINANCIAL INTERMEDIATION: A GOOD YEAR

? The RBI initiated its monetary tightening cycle in April 2022 and has since raised the repo rate by 225 bps, leading to moderation of surplus liquidity conditions.?

? Cleaner balance sheets led to enhanced lending by financial institutions.?

? The growth in credit offtake is expected to sustain, and combined with a pick-up in private capex, will usher in a virtuous investment cycle.?

? Non-food credit offtake by scheduled Commercial Banks (SCBs) has been growing in double digits since April 2022.?

? Credit disbursed by Non-Banking Financial Companies (NBFCs) has also been on the rise.?

? The Gross Non-Performing Assets (GNPA) ratio of SCBs has fallen to a seven-year low of 5.0.?

? The Capital-to-Risk Weighted Assets Ratio (CRAR) remains healthy at 16.0.?

? The recovery rate for the SCBs through Insolvency and Bankruptcy (IBC) was highest in FY22 compared to other channels.?

PRICES AND INFLATION

? While the year 2022 witnessed a return of high inflation in the advanced world after three to four decades, India caps the rise in prices.?

? While Indias retail inflation rate peaked at 7.8% in April 2022, above the RBIs upper tolerance limit of 6%, the overshoot of inflation above the upper end of the target range in India was however one of the lowest in the world.?

? The government adopted a multi-pronged approach to tame the increase in price levels.?

? Phase-wise reduction in the export duty of petrol and diesel.?

? Import duty on major inputs were brought to zero while tax on export of iron ores and concentrates increased from 30% to 50%.?

? Waived customs duty on cotton imports w.e.f 14 April 2022, until 30 September 2022.?

? Prohibition on the export of wheat products under HS Code 1101 and imposition of export duty on rice.?

? Reduction in basic duty on crude and refined palm oil, crude soyabean oil and crude sunflower oil?

? The RBIs anchoring of inflationary expectations through forward guidance and responsive monetary policy has helped guide the trajectory of inflation in the country.?

? The one-year-ahead inflationary expectations by both businesses and households have moderated in the current financial year.?

? Timely policy intervention by the government in housing sector, coupled with low home loan interest rates propped up demand and attracted buyers more readily in the affordable segment in FY23.?

? An overall increase in composite Housing Price Indices (HPI) assessment and Housing Price Indices market prices indicates a revival in the housing finance sector. A stable to moderate increase in HPI also offers confidence to homeowners and home loan financiers in terms of the retained value of the asset.?

? Indias inflation management has been particularly noteworthy and can be contrasted with advanced economies that are still grappling with sticky inflation rates.?

SOCIAL INFRASTRUCTURE AND EMPLOYMENT: BIG TENT

? Social Sector witnessed significant increase in government spending.?

? Central and State Governments budgeted expenditure on health sector touched 2.1% of GDP in FY23 (BE) and 2.2% in FY22 (RE) against 1.6% in FY21.?

? Social sector expenditure increases to Rs. 21.3 lakh crore (US$ 260.3 billion) in FY23 (BE) from Rs. 9.1 lakh crore (US$ 111.2 billion) in FY16.?

? Survey highlights the findings of the 2022 report of the UNDP on Multidimensional Poverty Index which says that 41.5 crore people exit poverty in India between 2005-06 and 2019-20.?

? The Aspirational Districts Programme has emerged as a template for good governance, especially in remote and difficult areas.?

? eShram portal developed for creating a National database of unorganised workers, which is verified with Aadhaar. As on 31 December 2022, a total of over 28.5 crore unorganised workers have been registered on eShram portal.?

? JAM (Jan-Dhan, Aadhaar, and Mobile) trinity, combined with the power of DBT, has brought the marginalised sections of society into the formal financial system, revolutionising the path of transparent and accountable governance by empowering the people.?

? Aadhaar played a vital role in developing the Co-WIN platform and in the transparent administration of over 2 billion vaccine doses.?

? Labour markets have recovered beyond pre-Covid levels, in both urban and rural areas, with unemployment rates falling from 5.8% in 2018-19 to 4.2% in 2020-21.?

? The year FY22 saw improvement in Gross Enrolment Ratios (GER) in schools and improvement in gender parity. GER in the primary enrolment in class I to V as a percentage of the population in age 6 to 10 years - for girls as well as boys, have improved in FY22.?

? Due to several steps taken by the government on health, out-of-pocket expenditure as a percentage of total health expenditure declined from 64.2% in FY14 to 48.2% in FY19.?

? Infant Mortality Rate (IMR), Under Five mortality rate (U5MR) and neonatal Mortality Rate (NMR) have shown a steady decline.?

? More than 220 crore COVID vaccine doses administered as on 06 January 2023.?

? Nearly 22 crore beneficiaries have been verified under the Ayushman Bharat Scheme as on

04 January 2023. Over 1.54 lakh Health and Wellness Centres have been operationalized across the country under Ayushman Bharat.?

CLIMATE CHANGE AND ENVIRONMENT: PREPARING TO FACE THE FUTURE

? India declared the Net Zero Pledge to achieve net zero emissions goal by 2070.?

? India achieved its target of 40% installed electric capacity from non-fossil fuels ahead of 2030.?

? The likely installed capacity from non-fossil fuels to be more than 500 GW by 2030 resulting in decline of average emission rate by around 29% by 2029-30, compared to 2014- 15.?

? India to reduce emissions intensity of its GDP by 45% by 2030 from 2005 levels.?

? About 50% cumulative electric power installed capacity to come from non-fossil fuel-based energy resources by 2030.?

? A mass movement LIFE– Life style for Environment launched.?

? Sovereign Green Bond Framework (SGrBs) issued in November 2022.?

? RBI auctions two tranches of Rs. 4,000 crore (US$ 488.7 million) Sovereign Green Bonds (SGrB).?

? National Green Hydrogen Mission to enable India to be energy independent by 2047.?

? Green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum to be developed by 2030. Cumulative reduction in fossil fuel imports over Rs. 1 lakh crore (US$ 12.2 billion) and creation of over 6 lakh jobs by 2030 under the National green Hydrogen Mission. Renewable energy capacity addition of about 125 GW and abatement of nearly 50 MMT of annual GHG emissions by 2030.?

? The Survey highlights the progress on eight missions under the NAP on CC to address climate concerns and promote sustainable development.?

? Solar power capacity installed, a key metric under the National Solar Mission stood at 61.6 GW as of October 2022.?

? India becoming a favored destination for renewables; investments in 7 years stand at US$?78.1 billion.

? 62.8 lakh individual household toilets and 6.2 lakh community and public toilets constructed (August 2022) under the National Mission on Sustainable Habitat.?

AGRICULTURE AND FOOD MANAGEMENT

? The performance of the agriculture and allied sector has been buoyant over the past several years, much of which is on account of the measures taken by the government to augment crop and livestock productivity, ensure certainty of returns to the farmers through price support, promote crop diversification, improve market infrastructure through the impetus provided for the setting up of farmer-producer organisations and promotion of investment in infrastructure facilities through the Agriculture Infrastructure Fund.?

? Private investment in agriculture increases to 9.3% in 2020-21.?

? MSP for all mandated crops fixed at 1.5 times of all India weighted average cost of production since 2018.?

? Institutional Credit to the Agricultural Sector continued to grow to Rs. 18.6 lakh crore (US$ 227 billion) in 2021-22.?

? Foodgrains production in India saw a sustained increase and stood at 315.7 million tonnes in 2021-22.?

? Free foodgrains to about 81.4 crore beneficiaries under the National Food Security Act for one year from January 1, 2023.?

? About 11.3 crore farmers were covered under the Scheme in its April-July 2022-23 payment cycle./li>?

? Rs. 13,681 crore (US$ 1.67 billion) sanctioned for Post-Harvest Support and Community Farms under the Agriculture Infrastructure Fund.?

? Online, Competitive, Transparent Bidding System with 1.74 crore farmers and 2.39 lakh traders put in place under the National Agriculture Market (e-NAM) Scheme.?

? Organic Farming being promoted through Farmer Producer Organisations (FPO) under the Paramparagat Krishi Vikas Yojana (PKVY).?

? India stands at the forefront to promote millets through the International Year of Millets initiative.?

INDUSTRY: STEADY RECOVERY

? Overall Gross Value Added (GVA) by the Industrial Sector (for the first half of FY23) rose 3.7% which is higher than the average growth of 2.8% achieved in the first half of the last decade.?

? Robust growth in Private Final Consumption Expenditure, export stimulus during the first half of the year, increase in investment demand triggered by enhanced public capex and strengthened bank and corporate balance sheets have provided a demand stimulus to industrial growth.?

? The supply response of the industry to the demand stimulus has been robust.?

? PMI manufacturing has remained in the expansion zone for 18 months since July 2021, and the Index of Industrial Production (IIP) grows at a healthy pace.?

? Credit to Micro, Small and Medium Enterprises (MSMEs) has grown by an average of around 30% since January 2022 and credit to large industries has been showing double- digit growth since October 2022.?

? Electronics exports rise nearly threefold, from US$ 4.4 billion in FY19 to US$ 11.6 Billion in FY22.?

? India has become the second-largest mobile phone manufacturer globally, with the production of handsets going up from 6 crore units in FY15 to 29 crore units in FY21.?

? Foreign Direct Investment (FDI) flows into the Pharma Industry have risen four times, from US$ 180 million in FY19 to US$ 699 million in FY22.?

? The Production Linked Incentive (PLI) schemes were introduced across 14 categories, with an estimated capex of Rs. 4 lakh crore (US$ 48.8 billion) over the next five years, to plug India into global supply chains. Investment of Rs. 47,500 crore (US$ 5.8 billion) has been seen under the PLI schemes in FY22, which is 106% of the designated target for the year. Production/sales worth Rs. 3.85 lakh crore (US$ 47 billion) and employment generation of?3.0 lakh have been recorded due to PLI schemes.

? Over 39,000 compliances have been reduced and more than 3,500 provisions decriminalized as of January 2023.?

SERVICES: SOURCE OF STRENGTH

? The services sector is expected to grow at 9.1% in FY23, as against 8.4% (YoY) in FY22.?

? Robust expansion in PMI services, indicative of service sector activity, observed since July 2022.?

? India was among the top ten services exporting countries in 2021, with its share in world commercial services exports increasing from 3% in 2015 to 4% in 2021.?

? Indias services exports remained resilient during the Covid-19 pandemic and amid geopolitical uncertainties driven by higher demand for digital support, cloud services, and infrastructure modernization.?

? Credit to services sector has grown by over 16% since July 2022.?

? US$ 7.1 billion FDI equity inflows in the services sector in FY22.?

? Contact-intensive services are set to reclaim pre-pandemic level growth rates in FY23.?

? Sustained growth in the real estate sector is taking housing sales to pre-pandemic levels, with a 50% rise between 2021 and 2022.?

? Hotel occupancy rate has improved from 30-32% in April 2021 to 68-70% in November 2022.?

? Tourism sector is showing signs of revival, with foreign tourist arrivals in India in FY23 growing month-on-month with the resumption of scheduled international flights and easing of Covid-19 regulations.?

? Digital platforms are transforming Indias financial services.?

? Indias e-commerce market is projected to grow at 18% annually through 2025.?

EXTERNAL SECTOR

? Merchandise exports were US$ 332.8 billion for April-December 2022.?

? India diversified its markets and increased its exports to Brazil, South Africa and Saudi Arabia.?

? To increase its market size and ensure better penetration, in 2022, CEPA with UAE and ECTA with Australia come into force.?

? India is the largest recipient of remittances in the world receiving US$ 100 billion in 2022. Remittances are the second largest major source of external financing after service export.?

? As of December 2022, Forex Reserves stood at US$ 563 billion covering 9.3 months of imports.?

? As of end-November 2022, India is the sixth largest foreign exchange reserves holder in the world.?

? The current stock of external debt is well shielded by the comfortable level of foreign exchange reserves.?

? India has relatively low levels of total debt as a percentage of Gross National Income and short-term debt as a percentage of total debt.?

PHYSICAL AND DIGITAL INFRASTRUCTURE

Governments Vision for Infrastructure Development

? Public Private Partnerships?o In-Principal Approval granted to 56 projects with a total project cost of Rs. 57,870.1 crore (US$ 7.07 billion) under the VGF Scheme, from 2014-15 to 2022-23. o IIPDF Scheme with Rs. 150 crore (US$ 18.3 million) outlay from FY25 was notified by the government on 03 November 2022.

? National Infrastructure Pipeline?o 89,151 projects costing Rs. 141.4 lakh crore (US$ 1,727.4 billion) under different stages of implementation. o 1,009 projects worth Rs. 5.5 lakh crore (US$ 67.2 billion) completed. o NIP and Project Monitoring Group (PMG) portal linkage to fast-track approvals/clearances for projects.

? National Monetisation Pipeline?o Rs. 9.0 lakh crore (US$ 109.9 billion) is the estimated cumulative investment potential. o Rs. 90,000 crore (US$ 10.9 billion) monetisation target achieved against the expected Rs. 80,000 crore (US$ 9.7 billion) in FY22. o FY23 target is envisaged to be Rs. 1.6 lakh crore (US$ 19.5 billion) (27% of the overall NMP Target).

? GatiShakti?o PM GatiShakti National Master Plan creates comprehensive database for integrated planning and synchronised implementation across Ministries/ Departments. o Aims to improve multimodal connectivity and logistics efficiency while addressing the critical gaps for the seamless movement of people and goods.

? Electricity Sector and Renewables?o As on 30 September 2022, the government has sanctioned the entire target capacity of 40 GW for the development of 59 Solar Parks in 16 states. o 17.2 lakh GWh electricity generated during the year FY22 compared to 15.9 lakh GWh during FY21. o The total installed power capacity (industries having demand of 1 Mega Watt (MW) and above) increased from 460.7 GW on 31 March 2021 to 482.2 GW on 31 March 2022.

? Making Indian Logistics Globally Competitive?o National Logistics Policy envisions developing a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth. o Rapid increase in National Highways (NHs) /Roads Construction with 10,457 km NHs/roads constructed in FY22 compared to 6,061 km in FY16. o Budget expenditure increased from Rs. 1.4 lakh crore (US$ 17.1 billion) in FY20 to Rs. 2.4 lakh crore (US$ 29.3 billion) in FY23 giving a renewed push to Capital expenditure. o 2,359 Kisan rails transported approximately 7.91 lakh tonnes of perishables, as of October 2022. o More than one crore air passengers availed the benefit of the UDAN scheme since its inception in 2016. o Near doubling of capacity of major ports in 8 years. o Inland Vessels Act 2021 replaced 100-year-old Act to ensure hassle-free movement of Vessels promoting Inland Water Transport.

? Indias Digital Public Infrastructure?o Unified Payment Interface (UPI)

? UPI-based transactions grew in value (121%) and volume (115%) terms, between 2019-22, paving the way for its international adoption. o Telephone and Radio - For Digital Empowerment

? Total telephone subscriber base in India stands at 117.8 crore (as of September 2022), with 44.3% of subscribers in rural India. ? More than 98% of the total telephone subscribers are connected wirelessly.

? The overall teledensity in India stood at 84.8% in March 2022. ? 200% increase in rural internet subscriptions between 2015 and 2021. ? Prasar Bharati (Indias autonomous public service broadcaster) - broadcasts in 23 languages, 179 dialects from 479 stations. Reaches 92% of the area and 99.1% of the total population.

? Digital Public Goods?

? Achieved low-cost accessibility since the launch of Aadhaar in 2009. ? Under the government schemes, MyScheme, TrEDS, GEM, e-NAM, UMANG has transformed the marketplace and has enabled citizens to access services across sectors. ? Under Account Aggregator, the consent-based data-sharing framework is currently live across over 110 crore bank accounts. ? Open Credit Enablement Network aims towards democratising lending operations while allowing end-to-end digital loan applications. ? National AI portal has published 1520 articles, 262 videos, and 120 government initiatives and is being viewed as viewed as a tool for overcoming the language barrier e.g. ‘Bhashini. ? Legislations are being introduced for enhanced user privacy and creating an ecosystem for standard, open, and interoperable protocols underlining robust data governance.

ELECTRONIC SECURITY MARKET

The increasing focus on integrating technologically advanced surveillance systems to curb the rising incidents of crime, thefts, and provide other security solutions is driving the global electronic security market.

The global Electronic Security market is projected to reach $66.7 Billion by 2027, growing at a CAGR of 7.8% Covid-19 Impact & Market Status

Covid-19 led disruption has changed the approaches to software, hardware, and service security. The key trends that have influenced the growth of global electronic security market in 2021 and beyond are rising evolution of new age security solutions from analog to digital systems, growth of real estate, growing threat incidents due to rapid digitalization and interconnectedness, improving value proposition, emergence of subscription based security services, and many other factors. The key factors such as increase in data thefts, rising security breaches are the key drivers of global electronic security market. Also, increasing adoption of wireless technologies, growing penetration of Internet of Things are also influencing the growth of global access control market. Furthermore, technological advancements in blockchain technology, cloud computing are positively impacting the global electronic security market. This report offers a comprehensive overview of the key elements of the market such as drivers, restraints, opportunities. Furthermore, current market size, growth rate estimates through the forecast span 2021-2028, individual sectors and sub-sectors, countries, and regions contributing majorly to the growth of global electronic security market are studied in the report. The report gives some recommendations and solutions that help market players take informed decisions in the global electronic security market.

Video Surveillance Systems Witnessed Strong Growth

The global electronic security market is classified into alarms, video surveillance systems, access control systems, other electronic security products on the basis of product type. Among these, the Video Surveillance Systems segment witnessed strong growth in 2021 and is expected to grow at highest CAGR in forthcoming years. The key growth factors are rising security breaches and increasing significance for securing important infrastructures such as airports, banks, and trade centres.

The increasing need for safeguarding personal and business assets in the globally connected and digitally advancing world is improving the reliance on electronic security systems furthering the development of global electronic security market. Owing to benefits such as protection to personal & business assets, improved workplace safety, instant conflict resolution, internal as well as external theft control, easy monitoring of high risk areas from remote locations, the electronic security is experiencing rapid adoption as opposed to traditional security approaches, thus fostering remarkable progress in global electronic security market.

The factors such as technology evolution, rising new business models in post-pandemic world, emerging government intervention, widening geographical spread, declining hardware cost is fueling the global electronic security market growth. Additionally, rise in organised crime followed by large-scale terrorist acts along with driving the electronic security business are boosting the global electronic security market expansion.

The advantages such as detailed organizational data, protection against unwanted visitors, prevention of systems from data breaches, safe work environment, reduction in theft and accidents, access to multiple buildings and locations, and regulatory compliance encourage further adoption of electronic security.

Electronic security is an electronic equipment that provides security solutions like surveillance, access control, alarm, intrusion detection, and performs other security operations. Electronic security solutions assist businesses and government agencies in upgrading their security measures. Spending to secure important infrastructures such as airports, banks, and trade centres has increased significantly. Integration of electronic security provides improved safety measures and protects human life and physical assets. The popular electronic security systems installed in work areas, manufacturing plants, and other areas are alarms, access control, and CCTVs. These systems provide intrusion detection, access control, alarming, and other security features.

Users can benefit from video surveillance thanks to the electronic security. Video surveillance can assist in the monitoring of entrance points into a home or business. They can supervise areas of the business where there are no employees.

Surveillance can also protect companies and their employees against a variety of undesirable situations and circumstances. It may even aid in the reduction of both harassment and violence. This can promote a more pleasant and productive work environment. Furthermore, businesses can benefit from video surveillance using electronic devices.

Electronic security systems prevent both property damage and inventory losses, this is the case. Video surveillance systems can deter crime and, as a result, can help reduce insurance and liability expenses. With the use of the internet, electronic security systems can provide customers with access to security monitoring 24 hours a day.

However, the factors such as lack of consumer awareness and technical capabilities are hampering the global electronic security market. Furthermore, e-SaaS business, real estate growth, increasing compliance rate and increased demand for safety systems, increasing competitive rivalry between electronics manufacturers and government interventions are anticipated to be growth opportunity to the Global Electronic Security Market.

SIGNIFICANT CHANGES IN FINANCIAL RATIOS

During the year, the significant change in the financial ratios compared to the previous year, which are more than 25 % as compared to the previous year are summarized below;

Financial 2021-22 2022-23 Change(%) Reason for change
Ratios
Debt Equity Ratio 15.10% 10.00% 33.79% The Ratio has a huge variance on account of recognition of a Financial Lease Liability in last financial year due to which the long-term debt had increased significantly.
Debt Service Coverage Ratio 134.93% (28.79)% (121.34)% Ratio has declined on account of operating losses on account of low margins & also due to disruptions in the business due to fire caused in the godown.
Return on Equity 0.32% (14.18)% (4568.51)% Ratio has declined on account of operating losses on account of low margins & also due to disruptions in the business due to fire caused in the godown.
Net Profit Ratio 0.13% (5.04)% (4068.87)% Ratio has declined on account of operating losses on account of low margins & also due to disruptions in the business due to fire caused in the godown.
Return on Capital Employed 6.42% (7.11)% (210.81)% Ratio has declined on account of operating losses on account of low margins & also due to disruptions in the business due to fire caused in the godown.