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Annual Report Summary

ACS Technologies Limited 39th Annual Report 2020-21 Summary:

Company Overview: The 39th Annual Report of ACS Technologies Limited for the financial year 2020-21 details the company's performance, financial standing, and future outlook. The company is engaged in the IT/ITES business. The Annual General Meeting was scheduled for November 30, 2021.

Board of Directors: The Board of Directors included Mr. Ashok Kumar Buddharaju (Whole-Time Director & CEO), Mr. A Prabhakara Rao (Whole-Time Director & CFO), Mr. A. Anitha (Whole-Time Director), and Mr. CVSN Murthy, Mr. IV Sarma, and Mr. Srinivasan Neti as Independent Directors. Ms. Hema Kumari served as the Company Secretary & Compliance Officer.

Financial Performance (Year Ended March 31, 2021): The company's financial summary, with figures in Crores of Rupees, shows:

• Revenue from operations increased to Rs. 64.48 Crores compared to Rs. 61.49 Crores in the previous year.
• Total Revenue increased to Rs. 64.52 Crores compared to Rs. 61.58 Crores.
• Net Profit decreased to Rs. 2.02 Crores from Rs. 3.71 Crores in the previous financial year, affected by the COVID-19 pandemic.
• Exports of services increased from $5552.51 USD to $7,48,857 USD, a growth of 134.8 times.

Key Performance Highlights & Challenges:

• Increase in turnover was mainly due to revenues from supplies, whereas service operations were affected by the COVID-19 pandemic.
• Margins from supplies are relatively lower than margins from services. This shift in turnover mix, along with continued employee and administrative costs during lockdowns, contributed to the decrease in profits.
• The company's authorized share capital is Rs. 15,00,00,000.

Business Strategy & Developments:

• ACS is focusing on Artificial Intelligence, Machine Learning, and Robotics.
• The company forayed into Smart Technologies, recognizing the digital transformation.
• The company is focusing on IT Infrastructure Management and Security Solutions.
• ACS has started its journey in Smart Technologies business.

IT Infrastructure Management:

• IT Infrastructure Solutions include turnkey projects involving Network design and implementation, Smart Server Solutions, Storage Solutions, and Security.
• The company partners with technology leaders like Dell, HP, CISCO, Juniper, SAP, Microsoft, VMware, and Infinova.

Security & Surveillance Solutions:

• Security and Surveillance Systems include Video Surveillance, Access Control, Fire Detection & Alarm, and Public Address Systems.
• The company is leveraging advancements in IP-based security systems and analytics.
• The Asia-Pacific region is witnessing tremendous growth in the use of video surveillance systems.
• Surveillance cameras are being used to replace or reduce human intervention.

Smart Technologies & IOTIQ:

• ACS markets its Home and Office intelligence products under the brand name "IOTIQ."
• The India home automation market size was valued at $1,790.9 million in 2018 and is expected to reach $13,574.1 million by 2026, growing at a CAGR of 29.8%.
• IOTIQ offers features like voice control, appliance control, temperature control, and intrusion detection.

Athena Smart Analytics System:

• Athena Smart Analytics System integrates multiple Smart Sensor Technologies, providing Visualization, Analytics, and Decision Support.
• Athena integrates with over 16 IoT Systems.

Software Solutions:

• ACS offers Custom Software Application Design and Development.
• The company offers Big Data and Analytics custom solutions on platforms like Hadoop, R, and Kubernetes.

Other Matters:

• The company's website is www.acstechnologies.co.in, where the annual report for FY 2020-21 is published.
• Six Board of Directors meetings were held during the financial year 2020-21.
• No fraud was reported by the auditor.
• M/s MM Reddy & Co. are the appointed Statutory Auditors.
• The company had unsecured loans outstanding from directors amounting to Rs. 99,55,748 as of March 31, 2021. Unsecured loans were also made to subsidiaries/associates: IOTIQ Innovations Pvt Ltd (Rs.71,19247/-) and Leadmax Technologies Pvt Ltd (Rs.23,72,879/-).
• The company earned a net profit of Rs. 2,02,01,951 during the current financial year.
• The directors have not recommended any dividend for the current financial year.
• Mr. Pavuluri Venkata Nagarjuna was appointed as Company Secretary on October 1, 2021.
• Exports of Products/Services amounted to $7,48,857 USD, and Imports amounted to $5,900 USD.

Auditor's Report: The independent auditor's report from M M Reddy & Co. provides an opinion on the standalone financial statements, stating they give a true and fair view in conformity with accounting standards. The audit was conducted in accordance with Standards on Auditing (SAs) issued by ICAI. The report also addresses internal financial controls over financial reporting, noting an adequate system operating effectively.

Financial Statements: The balance sheet as of March 31, 2021, indicates total equity and liabilities of Rs. 50,75,35,968 and total assets of the same amount. The profit and loss account for the year ended March 31, 2021, shows a profit for the period from continuing operations of Rs. 2,02,01,951.

Notes to Accounts: The notes to accounts detail the basis of preparation of financial statements, share capital, reserves and surplus, unsecured loans, long term borrowings, deferred tax assets/liabilities, short term borrowings and other financial details. The company has incurred a Tax liability of Rs. 69,81,454/- during the current year and EPS is Rs.1.37/- per share.

Resolutions: The meeting included resolutions to: 1) receive, consider, and adopt the audited financial statements for the year ended March 31, 2021, and 2) appoint a Director in place of M/S. Anitha Alokam, who retires by rotation and offers himself for reappointment.