Elnet Technologies Ltd Management Discussions

Your company is engaged in developing and maintaining an integrated software technology park and Business Process Outsourcing Industries. The growth and progress of the company depends directly on the prospects of Software and BPO Industry. In the opinion of the Board, the growth in the Software and BPO Industry is fairly good and the demand for space is expected to remain at the same level.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS

The consistent growth in the Software and BPO sector and turn around in Software and BPO industry are an opportunity while creation of large-scale commercial space which may create pressure on the rate per sq. ft. as well as occupancy are certain areas of concern.

SEGMENTWISE / PRODUCTWISE PERFORMANCE

The Company has only one reportable segment in accordance with IND AS 108 as "Operating

Segments". Hence, Segment wise / product wise performance is not applicable to your company.

INTERNAL CONTROL SYSTEM AND ADEQUACY

The Company has an adequate internal control system which commensurate with the size, scale and complexity of its operations. The Internal Auditor monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and there by strengthen the controls. A report of Auditors pursuant to Section 143(3) (i) of the Companies Act, 2013 certifying the adequacy of Internal Financial Controls is annexed with the Auditors report.

Your Companys internal control system is well defined nature of the business. The operations are subject to a detailed internal audit and the company implements the remedial measures suggested by the internal auditors.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED.

There were no material developments in relation to Human Resources / Industrial Relations in your Company as the Company has minimum employee strength. The Company has on its Roll fourteen employees (excluding Managing Director) and the rest of the operations are carried through outsourcing.

FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCE

The financial performance with reference to the operation of the company is detailed in the Boards Report (please refer page no. 24).

The comparison for the past ten years standalone financial highlights is provided in the annual report (please refer page no. 2).

TRENDS ON FINANCIAL AND OPERATIONAL PERFORMANCE

DISCLAIMER

The above statements are as perceived by the directors based on the current scenario and the input available. Any extraneous developments and force majeure conditions may have an impact on the above perceptions.

DISCLOSURE OF ACCOUNTING TREATMENT:

Other information as required in this Management Discussion and Analysis Report has been included in the financial statements and forms part of this Annual report.