Quicktouch Technologies Ltd Management Discussions

COMPANY OVERVIEW

Quicktouch Technologies Limited, headquartered in Delhi, is a prominent school software management company. With a profound commitment to innovation, the company specializes in assisting clients in conceiving and developing cutting-edge products, platforms, and digital solutions tailored to the contemporary landscape. By synergizing strategic design, intricate engineering, and deep-seated vertical industry proficiency with robust Information Technology capabilities, Quicktouch Technologies Limited stands out as a leading player in its field. The companys core ethos revolves around crafting innovative solutions that cater to the evolving demands of the modern world. With a proven track record of integrating forward-thinking design principles and technological prowess, Quicktouch Technologies Limited continues to be a transformative force in the realm of software management.

Our Company is an information technology company, helps customers to do business better by leveraging industry-wide experience, deep technology expertise, comprehensive portfolio of services and robust business model. Our Company is in the business of Software IT Solution and Consulting Services, IT Product / Software Development and Software Commercial Training, Web designing. Web designing services include: Website Designing/ Redesigning, iOS App/ Android/ Mobile App Development, Web Hosting Services. We have leveraged our domain expertise, processes and infrastructure to diversify our offering of services to cater to a variety of business sectors. Our Company is engaged in the business of Enterprise Resource Planning (ERP) - A school management software and mobile apps that help simplify administration and organization.

The financial statements of the Company have been prepared to comply in all material respects with accounting standards notified under Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India. The Management accepts the responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonable present the state of affairs, profits and cash flows for the year.

A. INDUSTRY STRUCTURE AND DEVELOPMENTS

The industry structure would encompass an evaluation of the prevailing dynamics within the Indian educational technology (EdTech) sector. This analysis would shed light on the competitive landscape, market trends, regulatory influences, and potential growth drivers that impact the operations and strategies of the company.

The EdTech sector in India has witnessed a substantial transformation in recent years, propelled by factors such as digitalization, increased internet penetration, and evolving pedagogical approaches. The sector is characterized by a diverse range of players, including online learning platforms, content providers, and school software management companies like Quicktouch Technologies Limited. The competitive environment is marked by both established incumbents and innovative startups, fostering a healthy competitive rivalry that drives continuous technological advancements and customer-centric solutions.

Market trends indicate a growing adoption of digital tools and platforms in the education sector, driven by the need for efficient administrative processes, remote learning solutions, and data-driven decision-making. Quicktouch Technologies Limited operates within the niche of school software management, providing solutions that streamline administrative tasks, enhance communication between stakeholders, and facilitate data-driven insights for educational institutions. This places the company in a strategic position to tap into the burgeoning demand for digitized administrative and operational solutions within schools and colleges.

Regulatory influences play a pivotal role in shaping the industry landscape. Policies related to data privacy, online education norms, and technology integration in educational institutions have a significant impact on the operations of school software management companies. Navigating and adhering to these regulations while delivering seamless services remains a key challenge for industry participants.

Growth drivers for the sector include the increased emphasis on personalized and technology-enabled learning experiences, which necessitate robust software solutions. The ongoing digital transformation in the education sector further fuels the demand for integrated platforms that streamline administrative workflows, communication channels, and student information management. Quicktouch Technologies Limiteds focus on strategic design, engineering excellence, and industry-specific expertise positions it well to capitalize on these growth drivers.

In conclusion, the school software management sector in India in 2023 is situated within

the broader landscape of the rapidly evolving EdTech industry. A competitive environment, driven by established players and innovative startups, presents both challenges and opportunities for companies like Quicktouch Technologies Limited. Adapting to regulatory changes and harnessing the potential of digitization and data-driven insights are essential for sustained growth in this dynamic market.

Quicktouch Technologies Limited highlights its significant strides in development. The companys commitment to innovation is evident through the introduction of advanced features in its school software management solutions. Throughout the year, Quicktouch focused on enhancing user experience by incorporating intuitive interfaces, seamless integration with various educational systems, and personalized communication tools.

Furthermore, the company expanded its market presence by forging strategic partnerships with prominent educational institutions and government bodies. These collaborations not only increased brand visibility but also enabled Quicktouch to tailor its solutions to meet specific sector requirements, reinforcing its reputation as a specialized player in the industry. In response to evolving data privacy regulations, Quicktouch proactively invested in robust security measures and compliance protocols, ensuring the safeguarding of sensitive student and institutional information. This dedication to data security not only bolstered customer trust but also positioned the company as a responsible technology provider in the education sector.

Financially, Quicktouch demonstrated impressive growth, with a notable increase in revenue and a healthy profit margin. The companys prudent cost management and resource allocation strategies contributed to this positive performance.

Overall, Quicktouch report for Financial Year 2022- 2023 underscores the companys commitment to innovation, strategic expansion, security, and financial soundness, showcasing its continuous development within the competitive landscape of school software management in India.

B. OPPORTUNITIES AND THREATS OPPORTUNITIES

Several promising opportunities for our school software management company on the global stage. One notable opportunity lies in the accelerated adoption of digital learning solutions worldwide. The paradigm shift towards blended learning models and the need for efficient administrative processes create a ripe environment for our software offerings.

Furthermore, the growing emphasis on data-driven decision-making in education presents a significant avenue for growth. Our advanced analytics capabilities can empower educational institutions to glean insights from student performance data, enabling personalized learning experiences and improved academic outcomes.

Strategic expansion into emerging markets also emerges as a promising prospect. Rapid technological advancements, increased connectivity, and a growing awareness of the benefits of digital education in regions like Asia, Africa, and Latin America provide an ideal landscape for our solutions to make a meaningful impact. Partnerships with educational organizations, governments, and technology integrators offer avenues to tailor our software to local needs and regulations, thereby enhancing our market penetration and positioning us as a global leader in school software management. These opportunities as pivotal for our companys growth and underscores our commitment to innovation and strategic expansion on the global front.

Our school software management company identifies several significant opportunities within the Indian market. Firstly, the rapid digitalization of education in India presents a compelling prospect. The increasing adoption of online learning, coupled with the demand for efficient administrative solutions, positions us to provide tailored software offerings that streamline operations for educational institutions.

Moreover, the governments focus on initiatives like "Digital India" and "Skill India" opens doors for collaboration and integration of our solutions into national educational frameworks. This alignment can bolster our market presence and solidify our position as a key contributor to the modernization of the education sector. The burgeoning EdTech startup ecosystem in India offers partnership opportunities, enabling us to tap into innovative technologies and expand our service portfolio. By forging strategic alliances, we can enhance our software capabilities and stay at the forefront of industry trends.

Lastly, the demand for data security and compliance solutions in light of stringent data security measures can position us as a trusted partner in safeguarding sensitive student information.

In conclusion, the report underscores these opportunities as pivotal to our companys success within the Indian context. By capitalizing on these trends, we are poised to contribute significantly to the transformation of the Indian education landscape.

THREATS

Several critical threats that our school software management company must navigate within the Indian market. One of the foremost threats is intensifying competition. The rapid growth of the EdTech sector has attracted a multitude of players, both domestic and international, vying for market share. This heightened competition could potentially erode our pricing power and necessitate ongoing innovation to maintain a competitive edge.

Data security and privacy concerns also loom large as a significant threat. As the Indian regulatory environment evolves, compliance with stringent data protection laws becomes paramount. Any breaches or lapses in data security could lead to reputational damage, legal liabilities, and loss of trust among our clientele. Technological obsolescence is another pressing concern. The pace of technological advancements is relentless, and failing to keep our software offerings aligned with the latest developments could render our solutions outdated and less appealing to the market. Continuous research and development are essential to address this threat.

The volatility of economic conditions can impact educational budgets and spending, affecting our sales cycles and revenue streams. Economic downturns or financial uncertainties could lead institutions to postpone or curtail investments in software solutions, directly impacting our financial performance. Regulatory challenges, particularly in navigating complex and evolving policies related to online education, data protection, and taxation, pose a threat to our operations. Adapting to regulatory changes and ensuring compliance can be resourceintensive and may disrupt our business activities.

Lastly, the risk of vendor dependence for critical components or services could expose us to supply chain vulnerabilities. Reliance on a single supplier for essential software components or services could disrupt our operations in the event of supplier-related issues.

In conclusion, these threats as crucial considerations for our companys success in the Indian market in 2023. Effective mitigation strategies, continuous innovation, robust data security measures, and a flexible approach to regulatory changes will be instrumental in navigating these challenges and ensuring our sustained growth and resilience.

C. SEGMENT WISE OR PRODUCT WISE PERFORMANCE

The operations of the company are considered as single segment.

Quicktouch Technologies Limited offers a suite of products centered around Enterprise Resource Planning (ERP) solutions, specifically tailored for school management. These software offerings and accompanying mobile applications have demonstrated remarkable performance, as highlighted by the financial results for the fiscal year ending on March 31, 2023.

The flagship product, the school management software, has significantly contributed to the companys financial success. The Total Revenue for the year surged to INR 8786.29 lakhs, marking a substantial increase from the INR 2545.15 lakhs reported in the previous fiscal year (ending March 31,2022). This impressive revenue growth can be attributed to the increased adoption of digital solutions in the education sector, as institutions seek streamlined administrative processes and enhanced communication channels.

Furthermore, the Profit after tax for the same period also demonstrated robust growth, reaching INR 639.08 lakhs, in contrast to the INR 417.93 lakhs reported in the previous fiscal year. This increase in profitability underlines the effectiveness of the companys products in meeting market demands and satisfying customer needs.

The success of Quicktouch Technologies Limiteds ERP solutions can be attributed to their ability to simplify and optimize school administration and organization processes. These solutions are designed to enhance efficiency, reduce manual workloads, and provide realtime insights for better decision-making.

The remarkable revenue growth and increased profitability indicate a strong market demand for Quicktouchs ERP products within the education sector. This performance reflects the companys capacity to adapt to changing market dynamics and provide innovative solutions that resonate with educational institutions seeking to leverage technology for improved operational outcomes.

In conclusion, Quicktouch Technologies Limiteds ERP school management software and mobile apps have driven substantial revenue growth and increased profitability. These products align with the trend of digital transformation in the education sector, offering efficient and streamlined administrative solutions that cater to the evolving needs of educational institutions.

d. outlook

Quicktouch Technologies Limiteds outlook in India is promising and poised for continued growth, driven by the companys flagship products: the school management software and mobile apps focused on Enterprise Resource Planning (ERP). The financial performance for the year ending March 31,2023, reflects the companys successful trajectory and provides a solid foundation for its future endeavors.

The substantial increase in Total Revenue, from INR 2545.15 lakhs in the previous fiscal year to INR 8786.29 lakhs, underscores the strong demand for Quicktouchs ERP solutions in the education sector. This trend is likely to persist as more educational institutions recognize the benefits of digital transformation in streamlining administrative tasks and enhancing communication.

The noteworthy growth in Profit after tax, from INR 417.93 lakhs to INR 639.08 lakhs for the same period, reflects the companys ability to effectively monetize its products while maintaining cost efficiency. This financial performance highlights Quicktouchs competitiveness and value proposition within the market.

The company maintains a steadfast focus on export opportunities, driven by economic considerations. With an expenditure of Rs. 194.40 lakhs (previous year: Rs. 162.14 lakhs) in foreign exchange, and significant foreign exchange earnings of Rs. 538 lakhs (previousyear: Rs. 14.97 lacs), the company demonstrates a strategic approach towards leveraging international markets for growth. This emphasis on exports showcases the companys commitment to expanding its reach and capitalizing on global economic dynamics to enhance its overall outlook.

Looking ahead, Quicktouch is well-positioned to capitalize on the ongoing digitalization wave in the Indian education landscape. The shift towards technology-enabled learning, administrative efficiency, and data-driven decision-making aligns with the core features of the companys ERP solutions. As institutions increasingly prioritize technology adoption, Quicktouch can expect a sustained demand for its products.

Furthermore, strategic partnerships with educational institutions and government bodies can enhance the companys market penetration and brand recognition. Collaborations enable the customization of solutions to cater to specific educational requirements, strengthening Quicktouchs competitive edge.

The companys commitment to innovation, as demonstrated by its successful software offerings, bodes well for its future outlook. Continued research and development can lead to the introduction of advanced features, ensuring that Quicktouch remains at the forefront of technological advancements in the sector.

In conclusion, Quicktouch Technologies Limiteds outlook in India is optimistic, driven by the strong performance of its ERP school management software and mobile apps. The companys ability to meet market demands, capitalize on digital transformation trends, and foster strategic partnerships positions it for sustained growth in the dynamic education technology landscape.

e. risk and concerns

The Company has implemented a Risk Management Policy to have systematic process to assist in the identification, assessment, treatment and monitoring of risks which provides effective tools to manage the identified risks.

The Companys businesses and operations are subject to a variety of risks and uncertainties. These risks can be categorized as operational, financial environmental, health and safety, political, market-related and strategic risks.

Quicktouch Technologies Limited, operating in the domain of Enterprise Resource Planning (ERP) solutions for school management software and mobile apps, faces a range of risks and concerns that warrant thorough consideration for sustained success within the Indian market.

Operational Risks:

1. Technical Glitches and Downtime: The reliance on technology makes the company susceptible to technical glitches and system downtimes, potentially disrupting services and affecting customer satisfaction.

2. Software Bugs and Updates: Inadequate testing or software bugs could lead to malfunctions or data inaccuracies, jeopardizing the effectiveness of the ERP solutions.

3. Quality Assurance: Ensuring consistent quality across software updates and features is crucial to maintain customer trust and reputation.

4. Employee Expertise: The availability and retention of skilled software developers and support staff are essential to the companys operational excellence.

Financial Risks:

1. Revenue Volatility: Economic downturns or budget constraints in the education sector could lead to reduced spending on technology solutions, affecting the companys revenue.

2. Cost Management: Managing operational costs and research and development expenses while maintaining profitability is essential to mitigate financial risks.

3. Foreign Exchange Fluctuations: If the company is involved in international transactions, currency fluctuations could impact costs, revenues, and profit margins.

Environmental and Health Concerns:

1. Environmental Regulations: The companys operations must comply with environmental regulations, including waste management and energy consumption, to avoid legal penalties and reputational damage.

2. Health and Safety: Ensuring the health and safety of employees, particularly in the context of the ongoing pandemic, is critical for maintaining operational continuity.

Political and Regulatory Risks:

1. Regulatory Changes: Changes in educational policies, data protection laws, or taxation regulations could require the company to adapt its software offerings and practices, potentially affecting revenue streams.

2. Government Initiatives: The success of government initiatives in the education sector could impact the demand for ERP solutions, requiring the company to stay aligned with sector trends.

Market-Related Risks:

1. Competition: The rapidly growing EdTech sector attracts numerous competitors offering similar solutions, intensifying the competition for market share and pricing power.

2. Customer Satisfaction: Meeting customer expectations and providing efficient customer support are pivotal to maintaining customer satisfaction and preventing churn.

Strategic Risks:

1. Innovation: The company must continue innovating to stay relevant and meet evolving customer needs. Failure to innovate could result in the loss of market share.

2. Partnerships: Strategic partnerships with educational institutions and government bodies must be managed effectively to ensure mutual benefits and avoid potential conflicts.

The EdTech sector is witnessing intense competition, and the market for school management software and apps is becoming increasingly saturated. New entrants and existing players offering similar solutions could potentially erode Quicktouchs market share and pricing power. The rapid pace of technological advancements poses a risk of the companys solutions becoming outdated. Failing to adapt to emerging technologies could lead to decreased demand and the loss of competitive advantage. The sensitive nature of student and institution data poses a significant risk. Any breach of data security or privacy concerns could result in regulatory penalties, legal liabilities, and damage to the companys reputation. The success of the ERP software relies on robust IT infrastructure and uninterrupted internet connectivity. System downtimes, technical glitches, or connectivity issues could disrupt services and negatively impact customer satisfaction.

The EdTech sector is subject to evolving regulatory frameworks. Compliance with data protection, education, and taxation regulations is crucial. Failure to adhere to these regulations could lead to legal consequences and hinder business operations. Gaining and retaining customer trust and loyalty is essential. If the software does not meet customer expectations, or if customer support is inadequate, it could lead to customer churn and damage the companys reputation. Economic downturns could impact the budgets of educational institutions, potentially leading to delayed or reduced technology investments. This could affect the demand for Quicktouchs solutions. The companys success is closely linked to the performance of the education sector. Factors such as changes in educational policies or a decline in student enrollment could impact the demand for ERP solutions. The company might rely on third-party vendors for certain components or services. Reliance on a single vendor could lead to supply chain disruptions if the vendor faces issues or fails to meet expectations. Some educational institutions might be resistant to adopting technology- driven solutions due to lack of awareness, tradition, or aversion to change. This could limit the companys market penetration.

In conclusion, Quicktouch Technologies Limiteds ERP solutions, while holding significant potential, also face a range of operational, financial, regulatory, and strategic risks. Proactive measures to address these risks, such as robust quality assurance, diversification strategies, compliance management, and continuous innovation, are essential to secure the companys long-term success within the Indian market.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal Control Systems are a set of policies, processes and procedures put in a place to help achieve the strategic objectives of an organization. The Company has an Internal Control System commensurate with the size, scale and complexity of its operations. This has been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statues, safeguarding assets from unauthorised use, executing transactions with proper authorisation and ensuring compliance of corporate policies.

The Company has a well-established internal financial control and risk management framework, with appropriate policies and procedures, to ensure the highest standards of integrity and transparency in its operations and a strong corporate governance structure, while maintaining excellence in services to all its stakeholders. Company is having adequacy on such internal control systems also in below paragraph to ensure:

(a) The orderly and efficient conduct of business, including adherence to policies

(b) Safeguarding of assets and ensure operational excellence

(c) Prevention and detection of frauds/errors

(d) Accuracy and completeness of the accounting records and

(e) Timely preparation of reliable financial information.

The Company has instituted the three lines of defence model, viz. (i) management and internal control measures, (ii) financial controls, risk management practices, security measures and compliance oversight, and (iii) a robust internal checks and balances providing the third level of defence.

The Companys internal controls and risk management practices are validated periodically with suitable review mechanisms in place. The Internal Control over Financial Reporting is the bedrock for the risk and control framework for the Company. The Companies Act 2013 requires the Board of Directors and statutory auditors of the Company to comment on sufficiency and effectiveness of internal controls.

The Company has appointed M/s BAS & Co. LLP, Chartered Accountants as an internal auditor to conduct internal audit and to ensure that all transactions are correctly authorized and reported. The reports are reviewed by the Audit Committee of the Board. Wherever necessary, internal control systems are strengthened, and corrective actions initiated.

g. material developments in human resources

The company continued to have cordial & harmonious relations with its employees. The company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourages initiative, provides challenges and opportunities and recognizes the performance and potential of its employees attracting and retaining the best manpower available by providing higher degree of motivation.

Our Company believes in trust, transparency & teamwork to improve employees productivity at all levels. As on 31st March 2023, the number of employees on rolls of the company is 53.

h. financial performance with respect to operational performance

Snapshot of the Companys financial performance for the last three years is as follows:-

Year	Total Revenue	Revenue growth %	Profit after Tax (PAT)	PAT Change %	EPS	EPS Change
2022-23	8,786.29	245.21	639.08	188.98	19.15	(12.99)
2021-22	2,545.15	249.96	221.15	319.08	22.01	4,052.83
2020-21	727.25	173.51	52.77	133.18	0.53	130.43

i. 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, including:

There were no significant changes in the key financial ratios as compared to the immediately previous financial year, details of the same are as follows:

Particular	F.Y. 2022-23	F.Y. 2021-22	Change in %	Reason (if more than 25% change)
(i) Debtors Turnover	4.86	1.19	308.26%	Increase in credit Turnover and as well as Trade Receivables
(ii) Creditor Turnover	4.94	3.34	47.69%	Increase in credit Purchase of services & as well as Trade Payables
(iii) Debt Service Coverage Ratio	46.78	15.56	200.74%	Ratio Increase due to increases in debt during the year
(iv) Current Ratio	1.19	0.61	96.17%	Increase in due to increase in working capital
(v) Debt Equity Ratio	0.16	0.14	15.42%	-
(vi) Return on Capital employed	60.88%	61.46%	-0.59%	-
(vii) Net Profit Ratio	7.27%	8.69%	-1.42%	-

J. Details of any change in return on net worth

(rs. In lakhs)

The Return on Net Worth (RoNW) exhibited substantial growth over the fiscal years, escalating from INR 7 crore in FY 2021-2022 to INR 13.5 crore in FY 2022-2023. This impressive increase underscores the companys enhanced ability to generate profits relative to its net worth, reflecting improved operational efficiency, financial management, and strategic decisions. This positive trend signals the companys effective utilization of resources and reinforces its financial strength and growth trajectory.

k. cautionary statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable laws and regulations. This report contains 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 should be read in conjunction with the financial statements included herein and the notes thereto. The Company does not undertake to update these statements.