Fourth Generation Information Systems Ltd Management Discussions

1. Industry Structure and Developments:

The business trends in the field software development are slow down due to machine automation and artificial intelligence. The new technological evolution is taking place, the phase of software industry is transforming into hardware specific software. As hand held device oriented software is picking up due to volume users. Emerging of technologies also gives opportunities forgrowth.

2. Opportunities and Threats:

Though the overall scenario for the smaller companies is extremely competitive, there are some niche areas where there are some opportunities for growth. The management is exploring the opportunities in the area hardware based software products. The management is exploring these areas to consider entering these areas and develop expertise in such areas.

3. Segmentwise or Product wise Performance:

Not applicable

4. Outlook:

The management is doing its best to forge relations with other companies and take the company forward in the new business lines. However, the outlook of the management is cautious in view of the competitive nature of the market.

5. Risks and Concerns:

While venturing into new business lines, the company would need access to funds. The risk of not being able to raise funds at the timer needed is the biggest risk that the management foresees.

6. Internal Control Systems:

The Company has adequate internal control systems commensurate with the size and the nature of business of the Company. The internal control system is constantly assessed and strengthened with tighter control procedures. The internal control systems ensure effectively of operations, compliance with internal policies and applicable laws and regulations, protection of resources and assets, and accurate reporting of financial transactions. The audit committee periodically reviews the adequacy and efficacy of the said internal control systems. All the issues relating to internal control systems are resolved by the audit committee.

7. Discussion on financial performance with respect to operational performance:

In view of the fall in extent of operations and the delay in materialization of the new business lines, the revenue of the company has seen a further

dip. Also, the management has decided to adopt even more prudential accounting norms as a matter of conservative accounting. This measure, which will definitely help the company in the future, has led to certain write offs.

8. Human resource development and industrial relations:

The Company recognizes the importance and contribution of the employees. Human Resource is viewed to be as one of the most important factor in the growth process with a view to cross further frontiers in business performance, the Company strives to organize training modules for understanding and improving the core skills of the employees. It is the continuous effort by the Company that helps to provide the right environment in order to maximize team efforts while exploiting individual growth potential in the right manner. The Directors record their appreciation of the support and continued contribution of all employees towards the growth of the Company.

9. Disclosure of Accounting Treatment:

Where in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements, together with the managements explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.

10. Financial Performance:

As on 31st March 2024, The authorized capital of the company stands at Rs. 12,95,00,000/- divided into 1,29,50,000 equity shares of Rs.10/- each.

The Issued, Subscribed and Paid Up Capital of the company at Rs. 3,55,00,000/- divided into 35,50,000 equity shares of Rs.10/- each.

The net loss for the financial year ending 31st March 2024 is Rs. 13.69 Lakhs as compared to the loss of Rs. 15.64 Lakhs in the previous financial year ending 31st March 2023.

By order of the Board of Directors for Fourth Generation Information Systems Limited

Place: Hyderabad	Sd/- C. N. Somasekhara Reddy Managing Director
Date: 31st August 2024	DIN: 02441810