vivo collaboration solutions ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

This Management Discussion and Analysis Report discusses and analyses the performance for the year ended 31^st March 2023.

INDIAN ECONOMY:

This Financial Year 2022-23 was quite different for the Indian as well as global economy. The year was begun with a lockdown. Although this helped us to contain the COvid-19 pandemic upto some extent but it significantly impacted various facets of the society and economy, including consumer behaviour, logistics, industrial production, construction activities, government earnings and overall trade activities. The lockdown also exacerbated unemployment and dampened consumer spending, which contributes to nearly half of Indias GDP. Later various initiatives undertaken by the government (and the Reserve Bank of India) such as the economic stimulus that amounted to more than 10% of the total GDP, liquidity support, lowering of interest rates and loan moratoriums aided a sequential revival of the economy. Consumer sentiment and demand witnessed a sharp recovery in the second half of the year, led by phased unlocking, decreasing number of infections and hopes created by the vaccination drive. Macro indicators such as GST collections, Index for Industrial Production (IIP), Purchasing Managers Index (PMI), steel and power demand, and rising auto sales showcased an improving economic trajectory in the second half of the year, pushing GDP growth to positive territory. A normal monsoon and reverse migration accelerated the semi-urban and rural economy. However, growth in urban India remained affected by intermittent government restrictions. We believe that post-pandemic, the Indian economy is likely to pivot with a strong mix of structural growth drivers catalysing medium to long-term growth.

OVERALL REVIEW OF OPERATIONS OF THE COMPANY:

The Company is engaged in the business of providing platform for enterprise voice and integration with video cloud to global telecom service providers. After the second wave of the pandemic the company was looking good and the management thought that the company is back on track but the new companies are coming and providing some of the services for free because of that the turnover of the company has gone down from Rs. 12.82 Crores in the financial year 2021-22 to Rs. 7.72 Crores. The operational profits have gone down of the company.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The global cloud telephony service market is anticipated to grow from USD 19.10 billion in 2023 to USD 53.10 billion in 2030, thus growing at a CAGR of 13.25% during the forecast period.. The market is projected to document a Y-o-Y expansion of nearly 17% to be valued at US$ 20.7 Billion in 2023.

INDUSTRY ECOSYSTEM

Globally, industry players are leveraging market growth through the development of innovative solutions in the global cloud telephony services market. Technology vendors offer users a variety of solutions, including advanced technology for faster and better connectivity. Many R&D activities are undertaken to improve security and make it more efficient and accessible worldwide.

COMPETITIVE INSIGHT

Major players in the cloud telephony market are concentrating on launching new products in order to earn major revenue from early adopters of the adoption cycle which is further improving the quality of their offerings and gaining a competitive advantage. Also, it has been observed that key players in the cloud telephony service market are depending upon new technology by increasing investment in R&D activities to develop cost efficiencies, thereby increasing the rivalry in the market to some extent.

OPPORTUNITIES AND THREATS:

An increasing number of retailers today rely entirely on digital communication. They choose cloud-based telephony because it provides them with a highly customisable solution to quickly and easily deploy in branch offices. Each extension can thus be reached reliably at any location and on any device. Simultaneously, the cloud is the ideal platform for Unified Communications (UC) and data-driven marketing. Cloud- based communication solutions also offer advantages in terms of data security and reliability, as the providers are generally in a better technical position than the company‘s own IT.

Lack of knowledge about cloud telephony service tools, interoperability, security concerns, and less suppleness of this technology for all kinds of business models is the challenge for the expansion of the cloud telephony service industry. This technology also requires improved visibility and accessibility through appropriate marketing channels that make cloud telephony services more expensive and less attractive.

But opportunities always give rise to the competition and thats why the i ndustry is becoming competitive. There are new companies coming up in this segment. Some of them are working at large scale. But despite the stiff competition, focus of the Company will remain on redemption of the available opportunities.

OUTLOOK:

We are witnessing a tectonic change in the business environment of unified conferencing, and We believe the growth in revenues and profitability in this domain will witness challenging times. To navigate this business challenge, your management has decided to invest in R&D of newer domains like design of power controllers. We shall be investing in resources to design the controllers which control the electrical devices. Accordingly, the teams shall be resourced for manpower, equipments and alliances. This is an upcoming new growth stream in power efficiency of electrical devices and holds promising future.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has a proper and adequate internal control system to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorized, recorded and reported correctly. The internal control is exercised through documented policies, guidelines and procedures. It is supplemented by an extensive program of internal audits conducted by Internal Auditor appointed in pursuance of applicable Laws. The audit observations and corrective action taken thereon are periodically reviewed by the audit committee to ensure effectiveness of the internal control system. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data, and for maintaining accountability of persons.

FINANCIAL AND OPERATIONAL PERFORMANCE:

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013 and Generally Accepted Accounting Principles in India. Please refer Directors Report in this respect.

HUMAN RESOURCES/INDUSTRIAL RELATIONS:

The Companys HR philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel.

CAUTIONARY STATEMENT:

Statements made herein describing the Companys expectations or predictions are "forward-looking statements". The actual results may differ from those expected or predicted. Prime factors that may make a difference to the Companys performance include market conditions, input costs, govt. regulations, economic development within/outside country etc.