Integra Telecommunication & Software Ltd Management Discussions

Management Discussion and Analysis Report (MD&AR) provide the readers a greater understanding of the Companys business, the Companys business strategy, performance, the Companys expectations of the future, and how the company manages risk and capital resources under ongoing/ upcoming economic & industrial conditions.

Any forward-looking statements made in this Report, are based on certain assumptions and future events. The company does not undertake to make any announcements in case of any of these forward-looking statements become materially incorrect in future or any update made therein.

Financial and Operating Results of the Company

The Company is engaged in the business of Computer hardware and software as per the customer specification. The Company is public limited company incorporated and domiciled in India having registered office at Delhi. The Company is listed on BSE India (Formally Bombay Stock Exchange). The Management is looking to leverage technological boom and exploring various avenues in this post pandemic scenario. Further management desires to diversify the business which would be in the best interest of the Company. Your Company has achieved a gross revenue of Rs. 1,16,16,881.99 /- in the Financial Year 2021-22 compared to Rs. 1,60,95,999.99 /- in the previous Financial Year 2020-21. Brief on performance of the Company during the financial year 2021-22 is stated hereunder:

Industry Structure and Development

The Information Technology industry holds a pivotal position in growth of enterprises and economies and the condition of IT industry is gaining momentum considering the need of automation of process, development of function and system capable of handling high process and complexities faced during Covid pandemic. The global developments in previous years have further consolidated the position of IT industry across span of sectors - Development of consolidated eco-system from foods to banking to healthcare retail & logistics. This enables better prospects for the industry compared to previous years.

Considering all the opportunities available, the management is confident to leverage profile of the Company and revive its business. The Management is continuous looking out for an effective strategy to revive business and create a sustainable business model which will be in betterment of Company and its stakeholders.

Outlook, Opportunities and Threats

The prevailing 2 year developed altogether new set of challenges in the midst of the next wave of COVID-19 pandemic along with economic impact of war situation in Ukraine. The management is conserving available resources and looking out for available opportunities and threats involved. As Covid-19 pandemic results into extended lockdowns and has generally resulted in negative impacts on the business of the companies worldwide in the past year and War situation bring rise in prices and shortage of resources. However, Company was able to generate revenue in the current financial year despite facing 2 covid waves. Further we are confident of emerging from the current situation stronger and more determined to achieve growth during the current financial year in our existing line of business.

Further, the Company is in process of identifying opportunities in other line of business, leveraging the expertise of its Promoter Company, M/s Micro Logistics (India) Pvt. Ltd. which is engaged in the business of shipping logistics & transportation.

Risk and Concerns

No industry is free from normal business risk, concern, uncontrollable and unfavorable changes.

Risk can come from uncertainties in financial markets, legal liabilities, credit risk, accidents, natural causes and disasters. Your company is reviewing and putting in place appropriate processes to safeguard it against such type of risks and uncertainty.

As the outbreak of COVID-19 pandemic has hit the global economy at large, the last two years have been a very critical situation for the management, further considering the safety of employee company is working on work from model since beginning of Pandemic. The management is concerned about the challenges being faced owing to restriction on movement of people, forced shutdowns and extended lockdown in the past. The Management is assessing the risks triggered due to COVID-19 and the possible ways to come out from the same.

As IT Industry continues to face stiff competition, which is growing among developers and manufacturers of computer software. There is competitive pressure on sales and margins are lowering year by year. The performance of the company is further dependent on the performance of the economy environment, pricing pressure and competitiveness of IT Industry.

Internal Control System and their Adequacy

The Company is responsible for establishing and maintaining adequate and effective internal controls for facilitation of speedy and accurate compilation of financial statements.

A robust, comprehensive internal control system is a prerequisite for an organization to function ethically in line with its abilities and objectives. The Company has established internal control system, to ensure the orderly and efficient business conduct, including adherence to policies, asset safeguarding, fraud cum error prevention & detection, accounting records accuracy & completeness, and the timely preparation and presentation of reliable financial information.

This internal control system is aimed at providing assurance of our operational effectiveness and efficiency, compliance with laws & regulations, asset safeguarding & reliability of financial and management reporting. Internal Audit is conducted to provide a reasonable assurance of internal control effectiveness and advises the Company on the best practices that can be adopted as per industry norms. The Audit Committee of the Company also reviews internal audit report.

Material Development in Human Resources/ Industrial Relation

Human resource continues to be backbone of your company. To ensure safety of employees the company implemented work from model since start of Covid-19 pandemic and follows till date, Company is following government guidelines and planning to develop system to work efficiently in this post- covid scenario. The Company lays strong emphasis on attracting and retaining the best talent including their training and skill development. The Management has recruited and continues to recruit employees from different fields for smooth functioning of the Company. HR policies of your company are being aligned with the current trends in the market.

Details of Significant Changes in Key Financial Ratio/Return on Net worth

No significant changes in key financial ratios. Further all ratios and changes therein form part of Financial Statements annexed to this Report other than those specifically mentioned here below:

Operation profit Margin has decreased from 92.90% in FY 2020-21 to 86.03% in FY 2021-22. This change is generally a result of decrease in turnover of the Company.