63 moons technologies : Annual Report 2023-24

About this update from 63 Moons Technologies Ltd.

Annual Report 2023-24 DIRECTORS' REPORT CORPORATE INFORMATION BOARD OF DIRECTORS Mr. Venkat Chary (IAS, Retd.) Chairman, Non-Executive Director Justice Deepak Verma (Retd.) Independent Non-Executive Director Mrs. Chitkala Zutshi (IAS, Retd.) Independent Non-Executive Director Mr. Kanekal Chandrasekhar Independent Non-Executive Director Mr. Sunil Shah Non-Executive Director Mr. Devender Singh Rawat Non-Executive Director Mr. Satyananda Mishra (IAS, Retd.)* Govt. Nominee Director Dr. Malini Vijay Shankar (IAS, Retd.)* Govt. Nominee Director Mr. Parveen Kumar Gupta* Govt. Nominee Director Mr. S. Rajendran Managing Director & CEO Mr. Devendra Agrawal Whole-time Director & CFO *Appointment of Nominee Directors by Ministry of Corporate Affairs has been stayed by the Hon'ble Supreme Court vide its order dated 9th March 2022. REGISTERED OFFICE 63 Moons Technologies Limited Shakti Tower- II, 4th Floor, Premises-J, 766, Anna Salai, Chennai - 600 002, Tamilnadu, India. T: +91 44 4395 0850/51 F: +91 44 4395 0899 CORPORATE OFFICE 63 Moons Technologies Limited FT Tower, CTS No. 256 & 257, Suren Road, Chakala, Andheri (East), Mumbai - 400 093, Maharashtra, India. T: +91 22 6686 1010 +91 22 6725 0257 [email protected] www.63moons.com CIN: L29142TN1988PLC015586 AUDITORS Sharp & Tannan Associates Chartered Accountants SHARE TRANSFER AGENTS KFin Technologies Limited Selenium Tower- B, Plot No. 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad - 500 032, Telangana, India. [email protected] www.kfintech.com BANKERS Axis Bank Limited HDFC Bank Limited Union Bank of India Kotak Mahindra Bank Limited ICICI Bank Limited | 2 | 63 moons technologies limited | Annual Report 2023-24 CONTENT 1. Letter From Chairman's Desk . . . . . . . . . . 04 2. Message From Managing Director & CEO . . . . . . . . . . 06 3. Board of Directors . . . . . . . . . . 09 4. Directors' Report 13 5. Management Discussion & Analysis . . . . . . . . . . . 43 6. Business Responsibility & Sustainability Report. . . . . . . . . . . . 49 7. Corporate Governance Report . . . . . . . . . . 69 8. Financials . . . . . . . . . .105 | 1 | 'The universe is constantly expanding, and so are we!' Ever since the dawn of humanity, there has been a constant drive to expand horizons: culturally, technologically, and spiritually. We, 63 moons technologies limited, have also echoed this sentiment, and strived to expand our horizons. We have always endeavoured to maximise our potential and have now also entered the realm of emerging technologies. In the modern era, human civilisation is looking towards Mars as a potential habitat, which might sound like science fiction, but truth is often stranger than fiction. Similarly, we are also looking beyond. And it is our truth of being indomitable that propels us forward and instils in us the confidence, determination, and hope to successfully expand our horizons. We have been exploring the exciting world of Web 3.0 through our venture, 3.0 verse, by leveraging opportunities in Blockchain, Artificial Intelligence (AI) / Machine Learning (ML), Metaverse, and more. Parallelly, we anticipated the humungous opportunity in the cybersecurity world and realised the need to protect individuals, enterprises, and the nation against ever-evolving cyber threats, and therefore, ventured into the much-needed cybersecurity arena with 63SATS. | 2 | 63 moons technologies limited | Annual Report 2023-24 In the realm of cybersecurity, 63SATS has one clear objective - to ensure that our clients realise their business vision seamlessly, eclipsing the myriad cyber threats that threaten their aspirations. To meet this objective and establish a new benchmark in the cybersecurity domain, we created the ultimate tech stack for digital security, combining a team of top- tier professionals and state-of-the-art technologies to set up a robust cybersecurity force. In a world often obsessed with immediate gains and instant gratification, we've always chosen the path less travelled - the path of patience and perseverance that has led us to prosperity. While expanding our horizons, we have prioritised cultivating the right people, following the right processes, and crafting the right products for enduring success. We firmly believe that true prosperity isn't measured by short-term spikes but by the resilience of roots that ultimately bear fruits. As a result, we invest in our ventures with a steadfast focus on long-termyear-on-year growth. This calming outlook helps us fuel our journey towards expanding horizons. • • • | 3 | DIRECTORS' REPORT Letter From CHAIRMAN'S DESK DEAR SHAREHOLDERS, It is with immense pride and great pleasure that I present to you the letter from the Chairman's Desk for this year's annual report. As we switch lanes from last year's theme of being 'Indomitable' to this year's theme of 'Expanding Horizons', we imagine a future of your company, which is perfectly in-sync with this outlook. We, as a company, are grateful for your unwavering support throughout the years with which we conquered the financial markets by providing world-class technological solutions. This, eventually, led us to becoming indomitable and expanding our horizons. With every tick of the clock, the technological world changes drastically, presenting us with unknown challenges. Reflecting on our impeccable track record, we strive to provide relevant solutions to these challenges. Our journey has empowered ourselves to lead the way of evolution and exploration of new-age technologies, such as Web 3.0, Artificial Intelligence, Blockchain, Cybersecurity, etc. We firmly believe that our indomitable spirit, powered by your support, will position us as trailblazers in expanding horizons, charting a path for others to follow. The groundwork for expanding horizons was laid last year itself with our 3.0 verse global super app. For instance, 3.0 verse tackled existing industry problems by offering solutions such as creating tradable digital tokens using the secured blockchain technology, increased liquidity and reduced transaction costs, and fractional ownership. 3.0 university created timely courses, for example, those focused on Blockchain, Artificial Intelligence, and Cybersecurity by partnering with industry experts. And 3.0 tv played a crucial role in keeping the viewers across the globe updated about everything that happened in the Web 3.0 and emerging technologies ecosystem. Your company has always redefined the directional change, from starting as a product company to becoming an exchange company and now an emerging-technologies company. Like always, we are proud and confident in our dedicated and | 4 | 63 moons technologies limited | Annual Report 2023-24 VENKAT CHARY Chairman talented team to help us achieve never-seen- before success in these fields. Their tireless efforts and unwavering commitment drive our innovation, inspiring us to take on new endeavours. Every breakthrough we achieve is a testament to their brilliance and perseverance. I would like to take this opportunity to express my gratitude to everyone that has walked this uncharted path with us over the past year and to those who continue to stand firm with us shoulder-to- shoulder as we set out to expand horizons. Having tested waters with emerging technologies like Blockchain, our foray into Cybersecurity with 63SATS and the act of leveraging franchising models for it and 3.0 university is a testament to our goal of expanding horizons. The enthusiasm displayed by the stakeholders of this ecosystem regarding our seminars and roadshows held across the country during the last year validates our belief in the potential of the emerging technologies to redefine paradigms. Undoubtedly, this is the future. Reflecting on our reputation of being a High-IP company rather than a Quarter-to-Quarter company and our expertise in these emerging technologies, we are confident that this competent foundation will reflect positively in the next financial year. I would like to end this correspondence by reiterating the fact that your support has been, is, and will continue to be, immensely valuable in propelling our collective energies in a direction that will expand horizons. We are looking forward to exploring new opportunities in the new digital world. VENKAT CHARY Chairman 63 moons technologies limited | 5 | DIRECTORS' REPORT Message From MANAGING DIRECTOR & CEO DEAR SHAREHOLDERS, In an era of unfolding arenas in emerging technologies, and an ever-evolving environment of next-generation technologies of Web3, Artificial Intelligence (AI), Blockchain, Cybersecurity, and other fields, your Company is progressing well ahead with its plans and is in pursuit of a better future. Your Company's efforts have broadened its horizon by adopting newer technologies in its existing operations and upcoming ventures. During the year under review, your Company, keeping in mind the aspirations of its stakeholders, has taken a step in the direction of scaling new heights. It envisions that the adoption of new-age technology is essentially important to enable it in distributing the benefits flowing therefrom. With these words, we take a closer look at the things that are shaping your Company's future. REVIEW OF BUSINESS VERTICALS Your Company's robust business verticals have been geared to excel in their respective fields with the adoption of the latest technologies. The performance of your Company's business verticals has been very much appreciated by its clients, as it continues to add next-gen technological advancements to its line of products. BROKERAGE TECHNOLOGY SOLUTIONS Your Company is a leading Electronic Trading Solutions provider in India, and the product range is driven by the mission of connecting and simplifying financial markets, high-performance, robust technology stack, deep domain knowledge and a culture of continuous innovations has been the driving motivation. These and other underlying principles have enabled your Company's partners to serve millions of investors with pioneering Brokerage Technology Solutions (BTS). ODIN - your Company's flagship business suite of solutions from the stable of BTS - has witnessed a significant topline growth during the year 2023- 24. The vertical met with the rise in compensation levels for retaining core technology and other resources that translated into an increase in the cost of operations which, in turn, has impacted profitability. Despite the rising cost and other challenges, the BTS business vertical has continued with | 6 | 63 moons technologies limited | Annual Report 2023-24 S. RAJENDRAN Managing Director & CEO enhancements and innovations to its core product line. Your Company's instrumental business vertical continues to persevere and increase its market share in the current competitive environment. EXCHANGE TECHNOLOGY SOLUTIONS during the year under review. It continues to explore other opportunities to deploy its existing technology and its rich resourceful team for leveraging in attaining better revenue realisation in the coming times. RISK SOLUTIONS Exchange Technology, a division of your Company, The Risk Solution division of your Company has has developed a range of capital market software been catering with highly secure software that simplifies the trading and settlement of multi- applications that are designed as Risk Management asset and multi-currency products, to enable any Systems for the Banking Financial Services and exchange to seamlessly operate in local or cross- Insurance (BFSI) sector in the area of Information border markets. Its end-to-end seamless exchange Management and Regulatory Capital Computation system, known as Exchange Technology for all types of risks and compliance reporting. The Framework Product Suite (ETFPS), a highly Division has successfully implemented a new versatile, scalable, and robust system, covers all version of 'DataCollector' for a global financial aspects of exchange operations right from trading regulator. This new version, during the year, was to settlement. ETFPS is driven by strategic and implemented on the cloud, enhancing SupTech operational needs to deal with cost and margin capabilities of the Central Bank. pressures, an ever-changing business environment, In another achievement, the Risk Solutions and regulatory compliance, among others. Division has equipped a domestic housing finance This business vertical of your Company continues regulator with an Automated Data Flow (ADF) to fulfill mission-critical operations of the application for collection of data from Housing Metropolitan Stock Exchange of India Limited Finance Companies (HFCs). This data-flow system | 7 | DIRECTORS' REPORT has been formulated to create analytical reports, which also works as an early warning system in ADF applications. It also helps HFCs in submitting data. The Division has developed a data validation utility to enable data validation at the HFC level. This Division has successfully onboarded more than half a dozen HFCs as its clients during the year. This business vertical is actively pursuing to position its 'DataCollector' application as an Enterprise Information Resource Management (EIRP) software, which can be used by any enterprise having interfaces with other stakeholders - both internal and external - for submission, validation, and addition of information. The Division has already implemented such an information supply chain facility as a bespoke facility in one of its major clients. Risk Solutions is actively pursuing overseas emerging markets for DataCollector and in a bid to penetrate the other overseas markets, multiple demonstrations have been carried out for Central Banks in the Middle East, Latin America, and Africa. THE ROAD AHEAD Over the years, your Company's journey from strength to strength exhibits its continual perseverance and efforts in the current business operations. The rise of your Company's line of products to a leading position in the markets is a testimony that the product offerings have been well received. Your Company's step towards excellence in its existing sphere of operations is furthering the evolution of technological offerings. During the year under review, your Company has not only introduced several enhancements to its current line of product offerings but also more than matched its past performance by expanding the horizons of technological advancements in other areas, too. Having these aspects of technological advancements as its inherent characteristics, your Company has ventured into new areas through the launch of 63SATS, for the group in one of the Subsidiaries, in the direction of providing Cybersecurity - the Gold of the Digital Economy Protection. Through the new venture - 63SATS - your Company is providing an umbrella of Cybersecurity technology solutions across various layers: individual-level,enterprise-level, and government level to combat cyber threats. Our Group's Cybersecurity technology is powered by avant-garde Cybersecurity, in alliance with the world's leading 10 best digital security firms from Israel to USA. With technology in its DNA, 63 moons technologies limited, is not only aspiring to excel in the areas of its operations with current tools but also expanding the horizons by acquiring new technological advancements, and it is determined to surpass the benchmarks it has set in the past. S. RAJENDRAN Managing Director & CEO 63 moons technologies limited | 8 |

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