OTCO International Ltd Management Discussions

The Company operates in a competitive business environment and is exposed to general economic and market conditions. During the year under review, the business environment continued to remain challenging. The Company continues to monitor developments in the industry and market and take appropriate measures to strengthen its operations.

The Company recognizes the importance of well-structured system to identify and manage the different elements of risk. The management team of the company regularly identifies reviews and assesses risks involved in its various business activities and work out guidelines for mitigating the same.

The Company continues to explore opportunities for improving its business performance and operational efficiency. However, competition, market conditions, economic uncertainties and changes in regulatory requirements may impact the Companys operations and financial performance.

The Company is primarily engaged in its existing line of business and does not have multiple reportable business segments requiring separate disclosure. The performance of the Company during the year was in line with the prevailing business conditions

The management remains focused on improving operational efficiency, controlling costs and strengthening the Companys business operations. The Company will continue to evaluate available business opportunities with a view to achieving sustainable growth.

The Company has an effective internal control and risk mitigation system, which is constantly assessed and strengthened with new/revised standard operating procedures. The Company has adequate internal control procedures and systems commensurate with its size, scale and complexities of its operations. The main trust of internal audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry. The Companys 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.

> Compliance of laws and regulations.

The Company has well laid-out policy guidelines, structured authority levels to ensure adequate internal control levels. The management and the Audit Committee of the Board review the periodically the adequacy of the internal control and the management control systems, so as to be in line with changing requirements. The company has an internal auditor to carry out internal audit work and coordination with Audit committee.

Discussion on Financial Performance with respect to Operational Performance:

During the year under review, the company has achieved a gross total income of Rs. 22.13 Lakhs /- for the Year 2025-26 against Rs. 91.90 Lakhs /- for the Year 2024-25.

The Paid- Up Capital of the Company stands at Rs. 2,59,36,240/- (Rupees Two Crore Fifty- Nine Lakhs Thirty- Six Thousand Two Hundred and Forty only) divided into 1,29,68,120 (One Crore Twenty- Nine Lakhs Sixty- Eight Thousand One Hundred and Twenty only) equity shares of the face value of Rs. 2/- (Rupees Five Only) each.

The Company earned a net profit of Rs. 2.52 lakhs, compared to a net profit of Rs. 2.95 lakhs in the preceding financial year.

The Earning Per Share for the Financial Year 2025-26 is Rs. 0.02/- (Rs. 2 paisa Only) per share (Face Value: Rs.2/- (Rupees Two Only) each).

Your directors are putting continuous efforts to increase the performance of Company and are hopeful that the performance in coming year will improve in faster way.

Your directors want to place on record their appreciation for the contribution made by employees at all levels, who through their steadfastness, solidarity and with their co-operation and support have made it possible for the Company to achieve its current status.

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules issued thereunder, and other applicable provisions of the Companies Act, 2013.

The accounting policies adopted by the Company are consistently applied and are in conformity with the applicable Ind AS. There has been no deviation from the applicable Ind AS in the preparation of the financial statements for the financial year under review.

The management discussion and analysis report describing the Companies objectives, projections, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed in the statement.