Objectone Information Systems Ltd Management Discussions

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:

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:

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.