CLIO Infotech Ltd Management Discussions.


Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31st March, 2019. 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.

1. Industry Overview:

The world Economy continues to face challenged on the road to sustained recovery. Advanced Economies that seemed towards the fag-end of the year and this uncertainty is clouding the prospectus for global growth during the year 2019. The Growth momentum was impacted as the protracted debt crisis in the euro area and the fiscal fragilities dampened and consumer confidence.

The economic crisis and its ramifications have accelerated the shift of economic power from the developed to the emerging nations and exposed a fragile world with limited capacity to respond to systematic risks. The Consequences has been volatile and low growth which is likely to stay for some time to come.

2. Opportunities and Threats

The company is mainly exposed to market risk, interest risk, credit risk. However, prudent business and risk management practices followed by the company over the years helps it to manage normal industry risk factors which includes economic/business cycle, fluctuations in the stock prices in the market besides the interest rate volatility. However, the company hopes to improve its performance on the strength of its long experience and its strong emphasis on the fundamentals.

3. Segment wise performance

Company has shifted from IT Operations to its tradition Finance business. Due to heavy competition and margin pressure, Company has stopped IT Operations and presently most of the revenues are generated from Companys traditional Finance business. Company believes in stretching itself and put stress on cost cutting strive to survive in this world of stiff competition.

4. Future Outlook:

With improving business prospects at both local and global level, Prospects for Indian Industries looks bright. But banking sector globally is under pressure though with new government taking control of the situation things may improve for the best.

5. Risks & Concern

Risks are events, situations or circumstances which may lead to negative consequences on a Companys business. Risk management is a structured approach to manage uncertainty. It involves identifying potential risks, assessing their potential impact, taking timely action to minimize potential impact and continuous monitoring of identified risks. Your Company has a robust risk management process to identify and assess business risks and opportunities. Your Companys risk management plan describes the potential risk, contains an analysis of the impact of risks and includes risk strategies to help the business reduce the consequences. The risk management plan of your Company is regularly reviewed to ensure that it accurately reflects the current potential risks to its business.

6. Internal Control Systems:

Your Company has adequate internal control procedures to commensurate with the nature and size of its business. Procedures ensure efficient and cost effective use of companys resources. Company has developed proper procedures to safeguard companys valuable assets against losses, to ensure timely and accurate preparation of accounts and compliances of various rules and regulations.

7. Financial Performance:

Share Capital:

The Paid up Share Capital of the Company as on 31st March, 2019 stands at Rs.110,109,500/- divided into 11010950 equity shares of Rs. 10/- each fully paid up.

Reserves and Surplus:

The Reserves and Surplus is Rs.12.02 Lakhs as on the end of the Current year.

Total Income:

During the year under consideration, total income is Rs. 8.24 Lakhs.

8. Employee Relations:

Company had smooth relations with its employees during the year under review

9. Material Development in Human Resource

The Company continues to have excellent employee relations. Your Directors acknowledge and thank the employees for their continuous support. The Company has strong commitments to follow the best of the HR practices and believes in up-lifting the overall competence of its employees through regular training, workshops and seminars.

10. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor:

- Debtors Turnover : 0.00
- Inventory Turnover : 0.00
- Interest Coverage Ratio : -0.75 times
- Current Ratio : 19.74 times
- Debt Equity Ratio : 0.53
- Operating Profit Margin (%) : -55.12%
- Net Profit Margin (%) : -236.97%

11. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof:

Company has incurred losses during the year and RONW is negative, however there is no Major Change in RONW as compared to previous year.

By Order of the Board For Clio Infotech Limited

Mr. Suresh Bafna

Managing Director

DIN: 01569163

Date: 03rd September, 2019

Place: Mumbai