Variman Global Enterprises Ltd Management Discussions.

1. (a) Industry structure and developments:

According to Department for Promotion of Industry and Internal Trade, during April 2000 - March 2020, FDI inflow into the electronics sector stood at Us$ 2.79 billion

The increasing adoption of big data solutions is one of the main driving factors of the managed print services market growth. With this solutions, the companies are gaining proper control of the printing, cost-effective and boost productivity.

(b) Opportunities and Threats.

There is the opportunity for the domestic industry to become more organised, with the creation of more large firms through organic growth and acquisitions. This would improve overall construction quality.

Strong population growth and a growing economy is fuelling demand for infrastructure.

The government is looking to attract private companies to invest in infrastructure through PPPs.

Indias government is keen to facilitate private sector participation in infrastructure.

Growing demand in emerging markets will provide the industry with a platform for growth Computer hardware manufacturing activity in Asia is growing rapidly, due to cost benefits Lower unit selling prices will bolster volume demand, but lower prices could affect revenue

(c) Segment-wise or product-wise performance.

During the year under review, the Company has recorded revenue of Rs. 1873.03 Lakhs and made a profit of Rs. 22.73 Lakhs against revenue of Rs.614.04Lakhs and net profit of Rs.8.76 Lakhs in the previous financial year 2018-19.

(d) Outlook

The management is doing its best to forge relations with other companies and take the company forward in the new business lines. However, the outlook of the management is cautious in view of the competitive nature of the market.

(e) Risks and concerns.

• There are low levels of domestic expertise, stemming from a shortage of skilled project managers and engineers.

• There is low mechanisation and limited use of modern technological equipment.

• Limited long-term borrowing capability on the domestic banking sector due to an immature bond market.

Risks of damage to a firms reputation, brand, and image and risks to the network, security, and privacy of a firm as well as loss of intellectual property were the top ranking risk concerns for firms in the hardware sector.Other top ranking risk factors in this sector were supply chain vendor and product recall risks, business Interruption, changes in economic conditions, risks associated with partnerships with vendors and other strategic alliances, and potential changes in the legislative, corporate governance, regulatory environment. Our survey also found that access to capital and risks of failure to attract and retain key talent as among the top ten risk factors for firms in hardware sector.

(f) Internal control systems and their adequacy.

The system of internal control has been established to provide reasonable assurance of safeguarding assets and maintenance of proper Accounting Records and its accuracy. The business risks and its control procedures are reviewed frequently. Systems audit is also conducted regularly to review the systems with respect to Security and its Adequacy. Reports are prepared and circulated to Senior Management and action taken to strengthen controls where necessary.

(g) Discussion on financial performance with respect to operational performance.

The financial operation is in line with the operational performance.

(h) Material developments in Human Resources / Industrial Relations front, including number of people employed:

Your company continues to have cordial relations with its employees and other stakeholders.

(i) Details of changes in key financial ratios, along with detailed explanation thereof

Details of significant changes (i.e. change of 25% or more as compared

to the immediately previous financial year) in key financial ratios, along

with detailed explanations therefor, including:

(i) Debtors Turnover = 2.62:1

(ii) Inventory Turnover = 8.26:1

(iv) Current Ratio= 4.14:1

(v) Debt Equity Ratio = 0.12:1

(vi) Operating Profit Margin (%) = 6.86%

(vii) Net Profit Margin (%) = 0.19%

(j) Details of any change in return on net worth as compared to the immediately previous financial year along with a detailed explanation thereof: There is change on return on net worth as compared to the immediately previous financial year.

2. Disclosure of Accounting Treatment: The Company has not carried out any treatment different from that prescribed in Accounting Standards.