continental chemicals ltd share price Management discussions

This report discusses and analysis the performance for the year ended 31^st March 2023.

Operation and Industry

The company is in the business of sale, purchase and licensing of Software within and outside India. Company has many new projects to expand its business in the coming years in India as well as abroad and trying to increase its scale of operation and Company is also trying to invest in appointing and maintaining Good Employees The Indian Software Industry plays an important role in increasing the GDP of the economy of the Country and is on expansion with passing of time.

Opportunities and Threats

Your company is facing competition in Indian as well as overseas market, but we have an edge over others with our quality and timely execution of services. The dynamic business conditions and adverse movement of foreign exchange rate of the Rupee is major concern for the growth of the industry. The Company is contributing positively in the same and providing the best services to the customers.

Risk and Concerns

The Company has a well-structured and robust risk management mechanism, including a comprehensive register that lists the identified risks, their impact and the mitigation strategy. Broadly, some overriding risks are listed below:

Data security risk: Technical failure and breakdowns in servers could interrupt our websites and result in corruption of all data and security breaches. The Company has adopted various measures to overcome the risks.

Obsolescence risk: A technology-driven company always faces the risk of an innovation or product development that can make one or more propositions redundant. The Company remains alert with technological developments to overcome this risk.

Competition risk: Enhanced competition in the market may reduce price and revenue margin. The Company is expanding globally and penetrating potential international markets.

Consolidation risk: Consolidation of service providers may affect the Company. The Company is focusing on capitalizing on current market opportunities.

Regulatory risk: Businesses can be affected by privacy legislation and other regulations.

Segment –Wise or Product –wise Performance

The Company is dealing in single segment as IT and Software Services. The Company has secured business and new order from overseas and expecting good growth in future and Company also continue to engage in deep industry Knowledge.

Outlook

The company is making all efforts to improve the quality of its Services and to take more projects and has been involved in diversified activities in the Software Industry. The Company is maintaining high quality products and services and confident of achieving better results in the future.

Internal Control Systems and their Adequacy

Internal control systems are a set of policies, processes and procedures put in place to help achieve the strategic objectives of an organization. Good controls encourage operational efficiency and compliance with laws and regulations, as well as minimizing the chance of errors, theft and fraud. At the same time internal controls also enhance the reliability and accuracy of accounting data.

The Company has an Internal Control System commensurate with the size, scale and complexity of its operations. This has been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance of corporate policies.

Financial and Operational Performance

The Company has adopted Indian Accounting Standards (Ind-AS) pursuant to notification issued by Ministry of Corporate Affairs regarding the Companies (Indian Accounting Standards) Rules, 2015. Accordingly, the financial results have been prepared in accordance with Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder.

The financial statements are prepared in accordance with the Companies (Accounting Standards) Rules, 2015, notified under section 133 of the Act and other relevant provisions of the Act. The accounting policies have been consistently applied except where a newly issued accounting standard, if initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Human Resources/Industrial Relations

The Company treats its human resources as its most important asset and believes in its contribution to the all-round growth of the Company. Your Companys progress is a reflection and outcome of the human resources it has. Your Company has fostered a culture of ownership, accountability and self-evaluation that encourages employees to continuously improve their efficiency. Industrial relations remained cordial throughout the year. There are Eight (8) permanent employees on the rolls of company on 31^st March 2023.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys expectations or predictions may be forward looking within the meaning of applicable laws or regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in Government regulations, tax regimes, economic developments within India and other incidental factors.