a) Structure and Developments, Opportunities and Threats, Performance, Outlook, Risks and Concerns:
The Company (Standalone) achieved revenue of Rs. 857.59 Lakhs from Operations during the current year as against Rs. 693.65 Lakhs during the previous year.
b) Internal Control Systems and their Adequacy:
Management has put in place effective Internal Control Systems to provide reasonable assurance for:
• Safeguarding Assets and their usage.
• Maintenance of Proper Accounting Records and
• Adequacy and Reliability of the information used for carrying on Business Operations.
Key elements of the Internal Control Systems are as follows:
i. Existence of Authority Manuals and periodical updating of the same for all Functions.
ii. Existence of clearly defined organizational structure and authority.
iii. Existence of corporate policies for Financial Reporting and Accounting.
iv. Existence of Management information system updated from time to time as may be required.
v. Existence of Annual Budgets and Long Term Business Plans.
vi. Existence of Internal Audit System.
vii. Periodical review of opportunities and risk factors depending on the Global / Domestic Scenario and to undertake measures as may be necessary.
The Company has Independent Auditors to ensure compliance and effectiveness of the Internal Control Systems in place.
The Audit Committee is regularly reviewing the Internal Audit Reports for the auditing carried out in all the key areas of the operations. Additionally the Audit Committee approves all the audit plans and reports for significant issues raised by the Internal and External Auditors. Regular reports on the business development, future plans and projections are given to the Board of Directors. Internal Audit Reports are regularly circulated for perusal of Senior Management for appropriate action as required.
Risk assessments, inspections and safety audits are carried out periodically.
c) Financial and Operational Performance: Stand Alone
The Highlights of Financial Operational Performance are given below:
S. No. | Particulars | 2019-20 | 2018-19 |
1 | Revenue from operations | 8,54,32,786 | 6,84,31,666 |
2 | Other Income | 3,26,460 | 9,33,353 |
3 | Sub-Total | 8,57,59,246 | 6,93,65,018 |
4 | Total Expenditure | 8,43,73,947 | 6,55,09,779 |
5 | Profit/(Loss) Before Tax and Exceptional Items | 13,85,299 | 38,55,238 |
6 | Tax Expense | (1,01,004) | (2,41,805) |
7 | Profit/(Loss) After Tax and Exceptional Items | 14,86,303 | 40,97,043 |
d) Impact of COVID-19
We remain cautiously optimistic about our prospects and our operations while we gauge the impact that COVID 19 could have on the business of the Company.
e) Human Resources Development and Industrial Relations:
The Company has constituted an Internal Complaint Committee (ICC) in pursuant to the provisions of Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH” Act) for prevention, prohibition and redressal of complaints / grievances on the sexual harassment of women at work places.
The Company continued the welfare activities for the employees, which include Medical Care. To enrich the skills of employees and enrich their experience, the Company arranges, Practical Training Courses by Internal and External Faculty.
f) Financial Ratios
In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2015) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key financial ratios:
S.No | Key financial ratios | Financial year 2019-20 | Financial year 2018-19 |
1. | Debtors turnover ratio | 3.79 | 3.36 |
2. | Inventory ratio | NA | NA |
3. | Interest coverage ratio | 1.82 | 2.55 |
4. | Current ratio | 1.66 | 1.58 |
5. | Operational profit Margin ratio (%) | 3.60 | 9.27 |
6. | Net Profit Margin | 0.02 | 0.06 |
Note:
1. Inventory Turnover Ratio is not given since it is not applicable.
2. Reasons for >25% variance in key ratios:
a. Interest Coverage Ratio: Reduction was due to significant reduction in operating profit
b. Operating profit margin Ratio and Net Profit Margin Ratio: Reduction was due to steep increase in production costs. The Company has incurred more production costs due to increased procurement of content from external parties.
f) Cautionary Statement:
Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.
By Order of the Board of Directors | |
For ObjectOne Information Systems Limited | |
Sd/- | |
Ravi Shankar Kantamneni | |
Place: Hyderabad | Managing Director |
Date: 05.09.2020 | DIN 00272407 |
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Copyright © IIFL Securities Ltd. All rights Reserved.
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.