Arihant Tournesol Ltd Management Discussions.

Management Discussion & Analysis (MDA) is a report which enables the investors to see the company "through the eyes of Management" MDA provides material, historical and Prospective disclosure that enables the Investors and other user of information to access the financial condition, change in financial condition and result of operations of public Company, especially the companys Prospectus for the future.

Opportunities/ threats and Outlook:-

The Indian market continues to remain the primary focus of business for your Company.

The Companys specified employees remuneration structure is govern by a proper remuneration policy relating to the Whole time Director/Key Managerial Personnel (KMP) and Senior Management Personnel, as required under the Companies, 2013 and SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 and the management of the company ensuring for assessing the companys ability to continue as going concern for foreseeable future .

The Management of the company is in process of evaluating certain business proposals related to business opportunities available in hand .The said proposals are crystallize soon.

Segment-wise or product-wise performance:-

During the year under review, Company has not carried out any business. The Company, with superior methodologies and improved process and systems, will focus on positioning the revenues and lead towards high growth path in future.

The Company is only operating in one segment.

Risks and areas of concern:-

Your Company ensures that appropriate risk management limits, control mechanisms and mitigation strategies are in place through its efficient and effective Internal Control System and the same completely corresponds to its size, scale and complexity of operations. The Company strives to put several checks and balances in place to ensure that confidentiality is maintained. Effective procedures and mechanisms are rolled out by a full-fledge Internal Audit System to ensure that the interest of the Company is safeguarded at all times. In addition to this, the Risk Assessment policy of the organization is reviewed on a quarterly basis by the Audit Committee / Board of Directors of your Company.

Impact of COVID -19 on Business:-

In the last month of FY 2020, the COVID-19 pandemic developed rapidly into a global crisis, forcing governments to enforce lock-downs of all economic activity. For the Company, Health

and safety have gained paramount importance during the lockdown period due to Pandemic COVID-19. we undertook measures to ensure health and safety of all Employees and Stakeholders.

The Company is strictly following all the directives issued by Central, State Government and Local Administration in this regard and is ensuring compliance with all the required norms. Further, we would like to inform you that during the pandemic COVID- 19 Company was nonoperational and had no running business which got impacted due to the pandemic. Hence the Company is only restricted to activities relating to statutory compliance. Due to lack of business operations and turnover there is no considerable impact on companys profitability and cash flow. However, the board is complying with all the necessary statutory and legal compliances.

Internal control systems and their adequacy:-

The Company has carried out the internal audit in-house and has ensure that recording and reporting are adequate and proper, the internal controls exist in the system and that sufficient measures are taken to update the internal control system. The system also ensures that all transaction are appropriately authorised, recorded and reported. Exercises for safeguarding assets and protection against unauthorised use are undertaken from time to time. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective. All these measures are continuously reviewed by the management and as and when necessary improvements are affected.

Discussion on financial performance with respect to 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.

Material developments in human resources including number of people employed:-

The Company is committed in ensuring that the work environment is safe and fair. Discrimination and harassment of any type are strictly prohibited.

Cautionary Statement:-

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.

For and on behalf of the Board of Directors

Anand Kalyanchand Thole

Whole Time Director DIN:08204993 04.09.2020