Competitive position of the Company
(a) Industry structure and developments
It is said "Revolution happens with every blink of an eye."
The Technology Industry stands testimony to this statement. Change has become the order of
the day in the case of Technology Industry. The latest edition being, the Fourth
Industrial Revolution which is nothing but an automation of traditional manufacturing and
industrial practices, using smart technology. Large- scale machine-to-machine
communication (M2M) and the internet of things (IoT) are integrated for increased
automation, improved communication and self-monitoring, and production of smart machines
that can analyze and diagnose issues without the need for human intervention.
Robotics, artificial intelligence, nanotechnology, quantum computing,
biotechnology, internet of things, industrial internet of things, are going to be play a
deciding role in the decision making process in any walk of life for that matter.
There are four design principles identified as integral to the Fourth
Industrial Revolution, which is commonly known as
"industry 4.0":
Interconnection the ability of machines, devices, sensors, and people
to connect and communicate with each other via the Internet of things, or the internet of
people (IoP)
Information transparency the transparency offered by Industry 4.0
technology provides operators with comprehensive information to inform decisions.
Inter-connectivity allows operators to collect immense amountsof data and information from
all points in the manufacturing process, identify key areas that can benefit from
improvement to increase functionality.
Technical assistance the technological facility of systems to assist
humans in decision-making and problem- solving, and the ability to help humans with
difficult or unsafe tasks
Decentralized decisions the ability of cyber physical systems to make
decisions on their own and to perform their tasks as autonomously as possible. Only in the
case of exceptions, interference, or conflicting goals, are tasks delegated to a higher
level.
The industry 4.0 has sweeping presence in the day of day functioning of
our society. A close look into this aspect reveals the following examples:
3D printing
Mobile devices
Location detection technologies
Advanced human-machine interfaces
Authentication and fraud detection
Smart sensors
Internet of things (IoT) platforms
Big analytics and advanced processes
Customer interactions and customer profiling
Mainly these technologies can be summarized into four major components,
defining the term "Industry 4.0" or "smart factory":
Cyber-physical systems
IoT
On-demand availability of computer system resources
Cognitive computing
Biggest trends
In essence, the Fourth Industrial Revolution is the trend towards
automation and data exchange in manufacturing technologies and processes which include
cyber-physical systems (CPS), IoT, industrial internet of things, cloud computing,
cognitive computing, and artificial intelligence.
Smart factory
The Fourth Industrial Revolution fosters what has been called a
"smart factory". Within modular structured smart factories, cyber-physical
systems monitor physical processes, create a virtual copy of the physical world and make
decentralized decisions.
Predictive maintenance
Predictive maintenance can identify maintenance issues in live allows
machine owners to perform cost-effective maintenance and determine it ahead of time before
the machinery fails or gets damaged. This helps in addressing the issuein advance and
better preparedness on the part of the users. For example, a manufacturer or a maintenance
firm in India cantrack and map if a particular machinery, under his radar, is operating
beyond the specified parameters which may hamper itsnormal functioning and thus need to be
addressed accordingly.
Smart sensors
Sensors and instrumentation drive the central forces of innovation, not
only for Industry 4.0, but also for other "smart" megatrends, such as smart
production, smart mobility, smart homes, smart cities and smart factories.
Smart sensors are devices, which generate the data and allow further
functionality from self-monitoring and self-configurationto condition monitoring of
complex processes. With the capability of wireless communication, they reduce installation
effort to a great extent and help realize a dense array of sensors.
The importance of sensors, measurement science, and smart evaluation
for Industry 4.0 has been recognized and acknowledged by various experts and has already
led to the statement "Industry 4.0: nothing goes without sensor systems"
However, there are few issues, such as time synchronization error, data
loss, and dealing with large amounts of harvested data, which limit the implementation of
full-fledged systems. Moreover, additional limits on these functionalities representsthe
battery power. One example of the integration of smart sensors in the electronic devices,
is the case of smart watches, where sensors receive the data from the movement of the
user, process the data and as a result, provide the user with the information about how
many steps they have walked in a day and also converts the data into calories burned.
Source : Wikipedia
Adopting changing requirements with flexibility is a guidepost for
Industry 4.0. The next wave, Industry 5.0,has also emerged recently. Industry 5.0 has a
more collaborative approach than Industry 4.0, including even more collaboration between
humans and robots.
While the theme of Industry 4.0 revolves around connectivity through
cyber-physical systems, Industry 5.0 while also aligned with platforms made possible by
Industry 4.0 also addresses the relationship between "man and machine,"
otherwise known as robots or cobots. Industry 4.0 laid the groundwork for human/machine
collaboration, as well as machine-to-machine collaboration and connectivity between the
plant, logistics, supply chain management, and the end user. Digital integration now
promises to connect all stakeholders under a common platform.
In addition to these pieces, Industry 5.0 integrates human creativity
and robotic precision, working toward a unique solution that will be the demand of the
next decade. Together, Industry 4.0 and 5.0 have created a roadmap that industries must
follow in order to endure.
Industry 4.0 and 5.0 both address basic considerations:
? Cyber-physical systems that connect the world ? New technology-driven
approach ? Digital twins ? Asset performance management ? Product life cycle management ?
IIoT-driven total automation ? Man/machine collaboration ? Digital transformation ?
Cybersecurity
(b) Opportunities and Threats.
Opportunities and Threats are two sides of the same coin. The said two
facets co-exists in every walk of our life. This assumes further significance in this
hyper dynamic world of innovations and growing complexities, that we keep pace with our
business competitors.
Whether the entity is large, whether it is medium or if it is small,
every entity is a competitor to the other, irrespective of itssize, its standing and its
strengths. Large entities face structural problems whereas small entities face existential
challenges. In the specific case of an IT services company, procuring new customers is
significant for its very survival. Considering the factthat IT consulting firms primarily
work on a contract basis, it is always important for them to focus on gaining new clients.
A contract isn?t permanent. Because of this, while working with one or more clients,
efforts are always being put into findingnew ones, which can become quite a
nerve-wracking effort.
Threat of new entrants looms large on the IT industry. However,
small-to-medium consulting services firms are challenging the bigger, more established
firms with their ability to innovate and their agile pricing and service models.
The enablers and drivers of growth of the IT consulting industry have
been several. First, innovation in frameworks and methodologies along with trained
professionals have provided value-added services uniquely available from the consulting
firm. Novelty and complexity have been a second driver.
Further, any outbreak of mass epidemic, like the Covid-19 or outbreak
of war, like the Russia- Ukraine war may force the business entities to suspend and
restrategise their business policies.
(c) Segment wise or product-wise performance
Company Performance Highlights:
ISO 9001: 2015 Quality Management System
ISO 20000-1: 2018 IT Service Management System
ISO 27001:2022 - Information Security Management System
Registered with National Small Industries Corporation (NSIC)
Registered with Software Technology Park of India (STPI)
Registered with Micro, Small & Medium Enterprises (MSME)
Business Operations:
IT Services and Consulting
Engineering Services
IT Infrastructure Solutions
Internet of Things
Cloud Technologies and Openstack Cloud Projects
BI and Analytics
Manual and Automation Testing
Software Development
Database Services
CAD and Engineering Data Management
Product Design and Development
Product Sales and Support
Data Center Implementation
High Performance Computing (HPC)
Remote Infrastructure Management Services
IT Infrastructure Consulting
Infrastructure Management Services
IOT Machine to Machine Communication Projects
Engineering Product Design Projects
Segment-wise performance:
The Company?s operations may be clubbed together under one
operating segment, i.e., IT related services. Thus it becomes the reportable segment for
the Company. The Company?s business operations are divided into following heads and
the revenue generated from each head is indicated below:
Standalone basis (Rs. In Lakhs)
| Revenue |
2022-23 |
2021-22 |
| Sale of Goods Computers & Peripherals / Software |
738.31 |
928.51 |
| Annual Maintenance Contract Service |
185.96 |
360.73 |
| Consultancy Services |
27.21 |
56.82 |
| IT Engineering Services |
195.21 |
173.17 |
| Total Revenue |
1,146.69 |
1,519.23 |
Consolidated Basis: (in Lakhs)
| Revenue |
2022-23 |
2021-22 |
| Sale of Goods Computers & Peripherals / Software |
738.31 |
928.51 |
| Annual Maintenance Contract Service |
320.67 |
475.68 |
| Consultancy Services |
27.21 |
56.82 |
| IT Engineering Services |
195.21 |
173.17 |
| Total Revenue |
1,281.40 |
1,634.18 |
(d) Outlook
VAMA is engaged in providing solutions to Space and Defense customers
and also supporting Cloud Projects to niche clients. Further, VAMA has also been
implementing projects all over Indiafor Defense, Space, C-DAC, sectors and is taking up
turnkey projects.
Further, your Company has also been supporting High Performing
Computing Services and cloud services which are in high demand globally. With India
becoming a dominant player in the Space sector, ISRO has been launching multiple
satellites and the need for Data Centre infrastructure is increasing rapidly. ISRO is
trying to increase its capacity to deliver by scaling up the frequency of launches by
building more satellites and lowering the cost of access to space. VAMA is bidding for
infrastructure projects. With the growth in Space and Defense sectors we are confident
that we will continue to get opportunities to work on major turnkey projects.
VAMA has increased the sales and marketing activities for the
international market especially for the Engineering Services and ITES business. Vama is
working on IOT Projects and support services for IOT. We are confident that with the
increase in sales and marketing activities, our domestic as well as international business
will report better performance. .
(e) Risks and concerns
To manage data confidentiality
To curb data breaches
To retain good talent and contain attrition among employees
To adapt to rapid technological changes and innovations
Cost competitiveness
To address and arrest assaults on internet infrastructure by hackers
Government policies and priorities
Fiscal policies and Industrial policies
Force majeure events and circumstances
The pandemics and wars
Political unrest within the country and in the countries, where the
Company trades
Economy collapses in nations, where India a trade partner
(f) Internal control systems and their adequacy
The Company has adopted Internal control systems that are adequate and
commensurate with its operations. The systems have been designed to ensure that assets and
interest of the Company are protected and dependability of accounting data and its
accuracy are ensured with proper checks and balances. The Internal Financial Controls have
been documented, digitized and embedded in the business process.
Senior level management reviews are conducted in order to ascertain the
effectiveness of the Internal Financial Controls. Further, it is also obtained through our
management reviews, control self-assessment, continuous monitoring by functional experts
as well as testing of the Internal Financial Control systems by the Internal Auditor
during the course of audits. We believe that these systems provide reasonable assurance
that our Internal Financial Controls are commensurate with the requirements of our
organization.
(g) Discussion on financial performance with respect to operational
performance
(Rs in Lakhs)
| INCOME |
2022-23 |
2021-22 |
| Export Revenue |
|
|
| IT Services |
329.92 |
288.12 |
| Sales of computers & Peripherals |
- |
- |
| Domestic Revenue |
|
|
| Services / Consultancy / Projects |
213.17 |
417.55 |
| Sales of computers & Peripherals |
738.31 |
928.51 |
| Other Income |
223.66 |
55.6 |
| Total Revenue |
1,505.06 |
1,689.78 |
| EXPENDITURE |
2022-23 |
2021-22 |
| Material Consumed |
921.18 |
1,207.32 |
| Changes in Inventories |
3.23 |
-28.91 |
| Employee Benefit Expenses |
182.03 |
193.19 |
| Finance Cost |
123.91 |
147.32 |
| Depreciation and Amortisation Expenses |
24.47 |
29.15 |
| Other Expenses |
303.54 |
137.27 |
| Total Expenditure |
1,558.36 |
1,685.34 |
(h) Material developments in Human Resources / Industrial Relations
front, including number of people employed.
It is a universally accepted fact that, retaining good talent pool is
the biggest challenge in the technology sector. Attrition among employees, especially at
entry level is usually higher than other sectors. Employees have the generally tendency to
shift their jobs and job profiles in pursuit of higher ambitions. Commensurate
compensation packages is a related challenge in this Industry, driven by higher demands
for good talent.
Our pro-human resources policy helps us in mitigating the employee
attrition rate and maintain cordial relations across the organization. Further, our human
resource strategy has enabled us to attract, integrate, develop and retain the best talent
required for driving business growth.
No. of Employees
| Sr.No |
Category |
Number of employees as on 31.03.2023 |
| 1 |
*Executive Directors |
2 |
| 2 |
Key Managerial Personnel (KMP) |
2 |
| 3 |
Other employees |
26 |
|
Total |
30 |
*V. Atchyuta Rama Raju is the Managing Director of the Company and also
designated as KMP but counted under the category of "Executive Director" only.
(i) Details of significant changes (as compared to the immediately
previous financial year) in key financial ratios, along with detailed explanations
therefor, including:
On Standalone basis:
| Ratio |
Current |
Previous |
Explanation |
|
Period |
Period |
|
| Current Ratio |
2.70 |
1.60 |
On account of significant decrease in Borrowings,
consequently decrease in Current Liabilities |
| Debt Equity |
0.36 |
0.38 |
On account of significant decrease in Borrowings i.e.
repayment by the company |
| DSCR |
(0.25) |
0.48 |
On account of principal repayment and decrease in borrowings |
| Return on Equity |
(0.09) |
0.01 |
ROE decreased due to decrease in the net income of the
company. |
| Inventory Turnover Ratio |
|
|
The Inventory Turnover Ratio decreased from |
|
0.80 |
1.07 |
1.07 (previous year) to 0.80 (current period). This suggests
a slower inventory turnover rate, due to decrease in turnover and purchase of inventory in
anticipation of demand. |
| Trade Receivables Turn |
|
|
Nil |
| Over |
1.02 |
1.01 |
|
| Trade Payables Turn Over |
1.09 |
0.83 |
This indicates an improvement in the rate at which the
company settles its trade payables |
| Net Capital Turn Over |
0.72 |
1.47 |
On account change in the working capital, but company is able
to maintain Turnover |
| Net Profit Ratio |
-16.06 % |
0.65 % |
On account of increase in Direct Expenses, Other |
|
|
|
Overheads, consequently decrease in profit |
| Return on Capital Employed |
-9.27 % |
5.05 % |
Due to reduce in the Profitability the ROCE is decreased |
| Return on Investment |
-7.80 % |
0.47 % |
On account of increase in Direct Expenses, Other Overheads,
consequently decrease in profit |
2. Disclosure of Accounting Treatment
The Company has prepared financial statements which comply with IndAS
applicable for periods ending on 31st March 2023, together with the comparative period
data as at and for the year ended 31st March 2022, as described in the summary of
significant accounting policies.
Primarily a treatment different from that prescribed in an Accounting
Standard has not been followed in the preparationof financial statements. However, as
regards amendments to certain accounting standards, the applicability / effect on the
financial statement has been evaluated and been treated accordingly as explained in Note 1
of the standalone Financial Statements.
Further, the financial statements represent a true and fair view of the
underlying business transactions.
Awards: Nil
Certifications:
ISO 9001: 2015 Quality Management System
ISO 20000-1: 2018 IT Service Management System
ISO 27001:2022 - Information Security Management System
Cautionary Statement
This report contains forward-looking statements extracted from reports
of Government Authorities / Bodies, Industry Associations etc. available on the public
domain which may involve risks and uncertainties including, but not limited to, economic
conditions, government policies, dependence on certain businesses and other factors.
Actual results, performance or achievements could differ materially from those expressed
or implied in such forward-looking statements. This report shouldbe read in conjunction
with the financial statements included herein and the notes thereto. We assume no
responsibility to publicly amend, modify or revise any such statements on the basis of
subsequent developments, information or events. Further, attention is drawn to Notes to
Financial Statements, which describes the management assessment of the impact of Covid
-19pandemic.
|
For and on behalf of the Board |
|
Sd/- |
|
V. Atchyuta Rama Raju |
|
Chairman and Managing Director |
|
DIN:00997493 |
| Place: Hyderabad |
|
| Date: 02.10.2023 |
|
+91-9892691696
