VCU Data Management Ltd Management Discussions

1. Industry Structure and Development

The outlook is positive for India, one of the fastest-growing economies. Fostering private investment and careful management of public finances could help the economy go a long way. During fiscal 2024, we witnessed acceleration in the adoption of digital technologies as businesses attempted to re imagine their cost structures, increase business resilience and agility, personalize experiences for their customers and employees, and launch new and disruptive products and services.

Our strategic objective is to build a sustainable organization that remains relevant to the agenda of our clients, while creating growth opportunities for our employees, generating profitable growth for our investors and contributing to the communities that we operate in.

2. Opportunities and Threats

The Company has an integrated approach to managing the risks inherent in various aspects of its business. As a part of this approach, the Board of Directors is responsible for monitoring risk levels on various parameters, and the Board of Directors supported by professionals in various fields is responsible for ensuring implementation of mitigation measures, if required. The Audit Committee provides the overall direction on the risk management policies.

The journey to the digital future requires not just an understanding of new technologies and new ways of working, but a deep appreciation of existing technology landscapes, business processes and practices. Falling prices of the electronic products due to increasing competitiveness with the introduction of multiple variants in each product are potential risks.

The overall Industrial and Business sentiment has been low during the last financial year. Your Company therefore has planned to introduce high quality technically advanced gadgets in the Companys product basket once it meets the working capital requirement to start its operations in full capacity, which will expedite its revival scheme. The Company has already ventured into manufacturing and dealing of high quality CCTV cameras and Digital Video Recorders (DVR) meant for CCTV Cameras. Your Company, however, is confident that with further improvement in quality, competitively priced products and their utility, it will be able to expand its market share.

3. Segment wise performance

The Company has been operating in the electronic industry and dealing and manufacturing only electronic products including Security & Surveillance related electronic equipment. The Companys products are mainly electronic and therefore there is a single segment of operation.

4. Risks & Concern

Our client contracts can typically be terminated because of delayed product supply, which could negatively impact our revenues and profitability.

A large part of our revenues are dependent on our limited number of clients, and the loss of any one of our major clients could significantly impact our business. The after effects of Covid-19 pandemic, loss of client, may be a serious concern for the company for loss of client.

5. Internal Control System & their adequacy

There are control mechanisms set in each function to ensure that adequate checks and balances are put in place to ensure that the system is working adequately and properly. However, there may be chances for the process to slow up due to some dependencies on external parties involved which are not directly in the control of the Company.

6. Financial Performance:

Share Capital:

The Paid up Share Capital of the Company as on 31st March, 2024 stands at Rs. 1,550.00 Lakhs divided into 15500000 equity shares of Rs. 10 each fully paid up.

Reserves and Surplus:

The Reserves and Surplus is Rs. 1,439.51 Lakhs as on the end of the Current year.

Total Income:

During the year under consideration, total income is Rs 138.83 Lakhs

7. Employee Relations

The Company had smooth relations with its employees during the year under review.

8. Material Development in Human Resource

The Company continues to have excellent employee relations. Your Directors acknowledge and thank the employees for their continuous support. The Company has strong commitments to follow the best of the HR practices and believes in up-lifting the overall competence of its employees through regular training, workshops and seminars.

9. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore:

Particular	2023-24	2022-23	Reason for Change
Debtors Turnover	NA	NA	Debtors Turnover Ratio Not Applicable as No Sales Income
Inventory Turnover	NA	NA	As There is no Stock in Hand and Sale Income for FY 2023-24
Interest Coverage Ratio	NA	NA	During the FY 2023-24 there was Nil Interest Expenses.
Current Ratio	270.42 times	1.51 times	Increase in Current ratio is on account of rise in Cash and Cash Equivalent due to realization of Trade Advances.
Debt Equity Ratio	NA	NA	During the FY 2023-24 there was no outstanding debt.
Operating Profit Margin	NA	NA	Operating Profit Margin Ratio not applicable as company do not have Sales Income for FY 2023-24
Net Profit Margin	NA	NA	Net Profit Margin Ratio not applicable as company do not have Sales Income for FY 2023-24

10. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

Return on Net worth FY 2023-24 is 0.03%

Return on Net worth FY 2022-23 is 1.46%

There overall decrease in the Total Income from Rs. 153.71 Lakhs in FY 2022-23 to Rs. 138.83 Lakhs in FY 202324 and Overall Total Expenses increase to Rs. 135.64 Lakhs for FY 2023-24 as Compared to Rs. 87.52 Lakhs in FY 2022-23 which result into decrease in Net Profit after Tax to Rs. 1.03 Lakhs in FY 2023-24 as Compared to Rs. 43.70 Lakhs in FY 2022-23 hence overall result into decrease in Return on Net Worth.

By Order Of the Board

For VCU Data management Limited

	Sd/-
	Harsha Singh
Place: Mumbai	DIN: 10425756
Date: 02/09/2024	Managing Director