CLIO Infotech Ltd Management Discussions

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31^st March, 2025. Investors are cautioned that these discussions contain certain forward looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this report consequent to new information or developments, events or otherwise:

OVERVIEW OF THE ECONOMY

OVERVIEW OF THE ECONOMY INDUSTRY STRUCTURE AND DEVELOPMENTS

Software and computing technology are transforming businesses in every industry around the world in a very profound and fundamental way. The continued reduction in the unit cost of hardware, the explosion of network bandwidth, advanced software technologies and technology-enabled services are fueling the rapid digitization of business processes and information. Over the past two decades, with the emergence of the internet and inexpensive connectivity, the global delivery model of service delivery has risen to become the preferred model in sourcing of IT services, business process services and research and development services.

The rapid pace at which technology is changing and the need for highly-skilled professionals in both the renewed and new technology areas are driving businesses to rely on third parties to realize their IT transformation. Several technology solution and service providers have emerged over the years, offering different models for clients to consume their solution and service offerings.

OPPORTUNITIES AND THREATS OUR STRENGTHS

We believe our strengths give us the competitive advantage to position ourselves as the leading global solutions and services company.

We develop and integrate innovative solutions that enable our clients to leverage IT to achieve their business objectives at competitive costs. We use our quality processes and global talent pool to deliver "time to development" advantages, cost savings and productivity improvements.

Consulting and domain expertise: Our specific industry, domain, process, and technology expertise allows us to enable clients to transform their businesses with innovative strategies and solutions. Our expertise helps our clients enhance their performance, gain process and IT efficiencies, increase agility and flexibility, reduce costs, and achieve measurable business value.

Breadth of offerings: Our suite of comprehensive end-to-end business solutions includes business and technology consulting, enterprise solutions, systems integration, custom application development, application maintenance and production support, infrastructure management, cloud ecosystem integration, product engineering and lifecycle solutions, business process management, software products, and business platforms and solutions.

Deep client relationships and brand: We have long-standing relationships with large corporations and other organizations. Our track record in delivering high-quality solutions across the entire software lifecycle and our strong domain expertise help us solidify these relationships and gain increased business from existing clients. This history of client retention allows us to showcase and strengthen our brand.

OUR STRATEGY

Our strategic objective is to build a sustainable organization that remains relevant to the agenda of our clients, while generating profitable growth for our investors. In order to do this, we will apply the priorities of ‘renew and ‘new to our own business and cascade it to everything we do.

THESE TRANSLATE TO THE FOLLOWING STRATEGIC FOCUS AREAS:

Build expansive, lasting relationships with our clients by delivering differentiated market offerings: Our strategy is to engage with clients on their large transformative programs, both in traditional IT areas as well as for their new digital business initiatives. We expand existing client relationships by providing them with a broad set of end-to-end service offerings and increase the size, nature and number of projects we do with them. Our specific industry, domain, process, and technology expertise allows us to enable clients transform their businesses with innovative strategies and solutions. We offer an end-to-end suite of high-quality, highly responsive and innovation-led services spanning business consulting, IT services, software platform-based services and business process management. This enables us to partner with our clients on large, multi-year engagements.

Enhance our operational processes for agility and optimal cost: We periodically assess the effectiveness of our organization structure and processes to optimize it for alignment with our strategic objectives and agility. Attract and retain a global, diverse, motivated and high-performing employee base -Our employees are our biggest assets. We will deploy our capital in making elective business acquisitions that augment our expertise, complement our presence in certain market segments and accelerate the execution of our strategies.

OUR COMPETITION

We experience intense competition in traditional services and see a rapidly-changing marketplace with new competitors arising in new technologies who are focused on agility, flexibility and innovation.

We typically compete with other technology services providers in response to requests for proposals. Clients often cite our industry expertise, comprehensive end-to-end solutions, ability to scale, superior quality and process execution, Global Delivery Model, experienced management team, talented professionals and track record as reasons for awarding us contracts.

OUTLOOK, RISKS AND CONCERNS OUTLOOK

In order to meet the changing market realities, your Company has been following the philosophy of providing the highest quality products and services at the lowest possible prices all endeavors are made to achieve possible cost reduction in every area of operations.

Your Companys philosophy to provide high class quality products i.e. full value for money, to consumers would greatly benefit in the long run. In the otherwise increasing cost arena, every expense, whether capital or revenue is minutely reviewed to achieve all possible savings.

RISKS AND CONCERNS

Risk Management at "Clio Infotech" is an enterprise wide function that aims at assessing threats to business sustainability and mitigating those threats. The function is backed by a qualified team of specialists with deep industry experience who develop frameworks and methodologies for assessing and mitigating risks.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a proper and adequate system of internal control to ensure all the assets are safeguarded and protected against loss from unauthorized use or disposition and the transactions are authorized, regarded and reported correctly.

The Companys Internal Audit Department is regularly carrying out the Audit in all areas. Additionally, the Audit committee is reviewing all Audit Reports with significant control, all issues raised by internal and external auditing regularly, reports on the business development, all the past and the future plans are given to the Board of Directors, Internal Auditors reports are regularly circulated to all the senior management to comply with the findings.

Normal forcible risks of the Companys Assets are adequately covered by comprehensive insurances.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE STANDALONE

During the year under review, your company has earned revenue of Rs 14.61 Lakhs and profit/ (Loss) after tax of Rs 5.70 Lakhs.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES.

Human capital is broadly peoples competencies, capabilities and experience, being continuously innovative and contribute to the organizations shared goals and values.

During the year under review, the Company has undertaken extensive steps in optimizing the manpower at the Plant, corporate office and Field locations. Employee/employer relations were cordial throughout the year. Measures for safety of the employees, training and development continued to receive top priorities.

CAUTIONARY STATEMENT

Certain statements made in the management discussion and analysis report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors could make significant difference to the Companys operations. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control.

Key Financial Ratios
Ratios	FY 2024-25	FY 2023-24	Change %	Reason
Debtors Turnover	1.72	3.42	-49.81%	The receivables turnover ratio measures the efficiency with which a company is able to collect on its receivables or the credit it extends to customers. The decrease in the ratio indicates that the company is not able to collect its receivables efficiently.
Inventory Turnover	7.00	4.23	65.34%	Decrease in Average Inventory in current year as compared to previous year leads to variance.
Interest Coverage Ratio	-	-	-
Current Ratio	17.18	21.71	-20.87%	-
Debt Equity Ratio	0.61	0.44	37.09%	The Debt Equity Ratio measures the financial ratio indicating the relative proportion of shareholder equity and debt used to finance company asset. The increase in ratio is due to increase in total debt
Net Profit Ratio	0.39	0.14	186.65%	Increase in margin of Cost of Goods Sold and decrease in other expenses has resulted in increase of overall net profit of the entity.
Return on Net Worth/Return on capital employed %	0.00	0.00	263.68%	ROCE provides a measure of how effectively a company generates profits for each unit of capital employed. An increase in ROCE is due to an increase in EBIT

REGISTERED OFFICE:

ROOM NO 3 & 5 SHETH LALJI DAYALJI BUILDING, DADI SHETH, AGIARY LANE, MALHARRAO WADI, KALBADEVI, MUMBAI, MAHARASHTRA, INDIA, 400002

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

CLIO INFOTECH LIMITED

SD/-

NIKITA TIWADI

MANAGING DIRECTOR

DIN NO.: 10646772

DATE: 27.05.2025

PLACE: MUMBAI