Netlink Solutions (India) Ltd Management Discussions.

1. Industrial Structure and Developments

In 2020-2021, the Indian economy and for that matter global economy suffered huge setback on account of Covid-19. The outlook for 2021-22 is mixed bag of cautious approach and untapped opportunities. The factors contributing to this outlook were persistent threat due to Covid-19 and unutilized/underutilized resources owing to Covid-19 among others. The long term future outlook continues to be positive and according to IMF, India is set to become the worlds fastest growing major economy ahead of China, barring the short term hiccups because of Covid-19 pandemic.

2. Outlook on Opportunities, Threats, Risk and Concern

Opportunities

The Company has two divisions, Software Division and Print Media Division. The Print Media Division is doing well for the Company. We experienced that the Print Media is gradually edging past electronic media. The Company cut costs and were looking for right opportunity. The software division has not achieved desired results. Covid-19 pandemic has thrown a big challenge before all of us. However, at the same time it opens huge opportunities for momentous growth in near future.

Threats, Risk and Concerns:

Being a software and print media Company, Netlink is exposed to specific risks that are particular to its business and the environment within which it operates, including software obsoletion volatility, economic cycle, credit risk and market risk. The most important among them are credit risk, market risk and operational risk. The measurement, monitoring management of risk remains key focus areas for the Company.

Netlink Solutions (India) Limited had, in the year 2018-19, sold Exhibition business containing “Stationery & Write Show, Corporate Gift Show and House ware and Kitchenware Show” to Messe Frankfurt Trade Fairs India Private Limited. As per the Sale Agreement, the Company is entitled to certain profit sharing arrangement in the Exhibition business for certain period. However, during the year under review, like previous year, the exhibition could not be held owing to continuous threats posed by Covid-19, resulting into complete loss of revenue share from this segment for the Company.

3. Internal Control Systems and their Adequacy

The Company has a proper and adequate system of internal control in all spheres of its activities to ensure that all its assets are safeguarded and protected against loss from unauthorized use or disposition and that the transactions are authorized, recorded and reported diligently. The Company ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines.

4. Financial Performance

The Companys total turnover for the financial year ended March 31, 2021, is Rs. 318.30 lacs (Previous Year Rs. 68.03 lacs). Net Profit before tax was Rs. 229.78 lacs as compared to Previous Years Net loss before tax Rs. 315.21 lacs. The Company is optimistic about its future business ventures.

5. Development of Human Resources

The Company has been proactive to build the requisite skill-sets in the organization for its new project initiatives. The relevant industry experience of the team coupled with commitment towards adherence to the operating processes adopted by the company is a unique feature demonstrated by the company. Employees are encouraged to upgrade their skills and knowledge through various training programs.

Note:

This report contains forward-looking statements based on beliefs of the companys management. The words anticipate, believe, estimate, forecast, expect, intend, plan, should and project are used to identify forward-looking statements. Such statements reflect the companys current views with respect to the future events and are subject to risks and uncertainties. Many factors could cause the actual result to be materially different, including amongst others, changes in the general economic and business conditions, changes in the currency exchange rates and interest rates, introduction of competing products, lack of acceptance of new products or services, and changes in business strategy. Actual results may vary materially from those projected here. The company does not intend to assume any obligation to update these forward-looking statements.