vedavaag systems ltd Management discussions

Performance Highlights: Financial Inclusion:

Your company has moved from strength to strengths in this forte of activities

As a Business correspondent of SBI, the following are some of the awards the company won in the completed financial year and to date of this report.

1. Super Achiever for Account Opening under "Samajik Suraksha Abhiyan" (Period: 01.03.2023 to 31.03.2023) from State Bank of India

2. Super Achiever for Enrollments under "PMSBY Scheme" (Period: 01.08.2022 to 15.09.2022)

3. Best Performance for Enrollments under "PMSBY Scheme" (Period: 01.08.2022 to 15.09.2022)

4. Best Performance for Enrollments under PMJJY Scheme (Period: 01.08.2022 to 15.09.2022)

This line of business of activity is assured of continuous growth as the Government of India is committed to Financial Inclusion in a big way. Some of the highlights of FI as published by Govt. of India are as follows.

The Jan Dhan account opening scheme, which was introduced in theyear2014aspartof initiative for financial national inclusion, has so far resulted in the opening of more than 50 crore accounts. Out of these accounts 56% accounts belong to women and 67% accounts have been opened in Rural / Semi-urban areas. The deposits in these accounts are above Rs. 2.03 lakh crore and about 34 crore RuPay cards have been issued in these accounts free of cost. The average balance in PMJDY accounts is 4,076 and more than 5.5 crore PMJDY accounts are receiving DBT benefits.

The Atal Pension Yojana (APY) has achieved a significant milestone as its enrolments crossed 5.25 crore as of 31 May 2023. This marks an increase of more than 20% in new subscribers, with over 1.19 crore enrolled in the fiscal year 2022- 2023 compared to the previous year. Launched in 2015, the schemes total assets under management (AUM) have surpassed 27,200 crores.

The center has made cash transfer of 2.2 lakh crore to more than 11.4 crore farmers in India under PM KISAN Scheme. The government has successfully provided insurance coverage to 44.6 crore people who have availed Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJY). This gives an assurance of high growth for the Company because of its transaction service oriented BC activity.

Technology Services:

Your company is continuously exploring new opportunitiesin terms of projects and technologies to augment its business. Recently the company bagged Video Surveillance System order from IRIS as Supply and Installation services partner to cover over 1000 railway stations across Multiple States.

The companys IoT (Internet of Things) product for public transport safety management received SDC approval from the Government of India organization.

The company is working on an IoT enabled product for CSP securitymanagementforintruderdetectionand alarm to prevent burglary, theft, way side robberies and man handling of CSPs. There are more than 10Lac CSP points PAN India who can be targeted.

The India internet of things market size reached US$ 1.0 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 2.2 Billion by 2028, exhibiting a growth rate (CAGR) of 14.23% during 2023-2028.

By 2025, India is expected tohavenearly500millionIoTdevicesconnectedtotheinternet,creatingnew opportunities for innovation and career growth. From smart homes to connected cars, and intelligent infrastructure, the possibilities of IoT are endless.

About

Established in 1998, as an e-Governance solution provider, Vedavaag is a niche player in Citizen Services Delivery that includes Financial Inclusion, AI&ML based products, Internet of Things (IOT) & other e-Governance solutions, Retail & Logistics and Education services.

Headquartered in Hyderabad, Telangana, India, the Company has operations spread across Andhra Pradesh, Maharashtra, Bihar, Jharkhand, Uttar Pradesh, Delhi, Chandigarh, Haryana, Punjab, Rajasthan, Telangana, Jammu & Kashmir, Odisha, Pondicherry, West Bengal, Uttarakhand, Himachal Pradesh, and Tamil Nadu.

An ISO-9001 and ISO-27001 certified enterprise, the Company has been listed on the Bombay Stock Exchange (BSE 533056) since 2009.

CORPORATE & BUSINESS STRUCTURE

Varishta Centres

Vedavaag is consolidating its brand of reliability and consistency in service by naming all its service points as Varishta Centres (VC). With the idea of maximizing its service bouquet to rural citizens from these Varishta Centres range of financial services, Agri commodity services and other cross selling services education.

Presence in States 20 Customer Service Points 3781 Gross Transaction Value, 2022-23 ( in crore) 15,640 Number of Transactions, 2022-23 25+ Million Households Serviced 31 Lac

Wholly owned Subsidiary VSL Data Systems Private Limited:

VSL Data Systems working on implementation tenders for PACS computerization. Informatics won the prestigious order from NABARD for supply of software to all PACS across PAN India.

There are more than 68000 PACS spread across 29 States of India. and services is huge in this segment and scope of it can be expanded to many other Theopportunityforimplementation services such farmer supply chain activities.

Vedavaag Edutech Private Limited (formerly known as Vagdevi Sark Edutech Pvt Ltd.).

The unit is still in the incubate stage and more than 25 schools are availing our services covering over 2000 students. The spread across PAN India Haryana, MP, Bihar, Kerala, and Telangana. The opportunity appears to be tremendous, and it provides great satisfaction as we can reach the Hinterland areas to service the local citizens educational needs.

Vedavag Common Service Centers Private Limited

The company is actively pursuing the Insurance, retail, Pharmacy, and logistics businessareas.

Ratios in MDA
Particulars	FY 23	FY 22	% Change	Reasons for variance
Stability Ratios
Debt equity ratio	0.056	0.062	10%
Debt Service Coverage ratio	6.07	15.32	60%	Variance in the ratio is on account of repayment of term loans
Interest Coverage Ratio	328.10	107.36	206%	Interest charged to P&L is relatively lower as compared to previous year, hence the variance.
Liquidity Ratios
Current Ratio	7.31	8.00	9%
Debtors Turnover Ratio	6.33	9.30	32%	Increase in receivables and margin decrease in turnover resulted in reduction in the ratio.
Inventory Turnover Ratio	67.51	54.16	25%	Marginal decrease in turnover and inventory resulted in variance in Inventory turnover ratio.
Profitability Ratios
Operating Profit Margin (%)	0.170	0.171	-1%
NetProfit	0.105	0.104	1%