City Online Services Ltd Management Discussions

1. Industry structure and developments:

Internet is a growing industry in our country here big players like Airtel, Jio etc coexist with small and medium players like us our USP is customer support and fast response were the bigger players have lag time.

2. Opportunities and Threats:

Falling bandwidth prices and increase in last mile connectivity prices are of some concern.

3. Segment-wise or Product -wise performance:

Since OTT services is growing fast the demand for broadband service is fast growing in our country your company is targeting this segment by entering into gated communities both at Hyderabad and Bangalore were your company provides triple play services i.e., internet, telephone and DTH services the ROI in this segment is much higher. As you are aware that your company is very strong in hospitality and education sector this segment contributes huge revenues to your company. From this year your company has started catering commercial malls. We are also catering rural broadband vie franchisees model thus all the segments put together in future your company is hopeful of doing better.

4. Risks and Concerns:

There are no major risks in near future.

5. Internal Control systems and their adequacy:

Company has proper internal control systems in every department and management reviews the same periodically.

6. Discussion on financial performance with respect to operational performance.

There is slight drop in turnover compared to Finical Year 2023-2024 and also your company has made a profit of 3.5lakhs, your company hopes to make more profit in coming year and it has taken all steps in that direction.

7. Material developments in Human Resources/Industrial Relation front, including number of people employed:

Your company is in service sector hence no unskilled workers are there we have technical, marketing, finance and administrative staff in all the places of operation the number of staff all together is about 54.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MOREAS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATIONSTHEREOF

Particulars	2024-25	2023-24	Remarks
Debtors turnover ratio	7.88	5.86	--
1 nventory turnover ratio	NA	NA	NA, Service Industry
Interest coverage ratio	NA	NA	No Long-Term Debt
Current ratio	0.62	0.59	--
Debt equity ratio	NA	NA	No Long-Term Debt
Operating profit margin (%)	4.65%	-4.59%	--
Net profit margin (%)	3.22%	1.11%	--
Return on Net worth	N IL	NIL	Shareholders Equity is in Negative

Disclosure of Accounting Treatment:

The Company has not carried out any treatment different from that prescribed in Accounting Standards.

Cautionary Statement:

Statements in this Management Discussion and Analysis Report may be"forward looking statements: within the meaning of applicable securities lawsand regulations. These statements are based on certain assumption and expectations of future events. Actual results could differ materially from those expressed or implied. Important facts that could make a difference at the Companys operations include economic conditions affecting domesticdemand and supply conditions, finished goods prices, changes ingovernment regulations and tax regime etc. The Company assumes noresponsibility to publicly amend, modify or revise any forward- lookingstatements on the basis of subsequent developments, information or events.