Netlink Solutions (India) Ltd Management Discussions

1. Industrial Structure and Outlook

The Indian e-commerce market has had enormous development in recent years as a result of the recent digital transformation, and in the years to come. The MSME sector is seen to be the foundation of the Indian economy. Netlink Solutions (India) Limited exhibits tremendous development potential in the near future when all of these aspects are taken into account.

2. Opportunities, Threats, Risk and Concerns Opportunities

The Company has Software Division. The Software Division is doing well for the Company. We experienced that the electronic media is gradually edging past Print media. The Company cut costs and were looking for right opportunity. The software division has achieved desired results and it opens huge opportunities for momentous growth in near future. The other two divisions, i.e., Exhibition Management attained its objective this year after a gap of two years. Treasury management division also performed well.

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.

The Board of Directors at their meeting held on May 29 2024, after due consideration and deliberation decided to discontinue the provision of the consultation and cooperation services and accordingly served a discontinuation Notice/Intimation to Messe Frankfurt Trade Fairs India Private Limited ("MesseVPurchaser") under the Asset Purchase Agreement entered into with Messe vide Agreement dated 24th September 2018 which was amended vide amendment agreement dated 1 st September 2021. This will result in discontinuance of related revenues in future which was a major source of revenue of the Company. The Company is exploring various options for a sustainable growth & profitability in future.

3. Segment-wise or product-wise performance

The Companys business activity is bifurcated in four segments namely Software Division, Info Media, Exhibition Management and Treasury Management. Accordingly the performance are given below :

4. Internal Control Systems and their Adequacy

The Company remains committed to maintain internal control systems and procedures designed to provide reasonable assurance for orderly and efficient conduct of business and security of its assets and for preventing their unauthorized use or disposition and detecting frauds or irregularities, if any.

The Company has laid enormous significance to develop internal control systems relating to all aspects of the business and has well-documented operational plans & policies which are key to any organization for operational efficiency at all levels. The internal control system is designed to ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability of assets.

Additionally, the Statutory Auditors, as a part of the audit process, review IT systems for effectiveness of the controls. The Statutory Auditors also present their observations to the Audit Committee on financial statements including the financial reporting system.

5. Discussion on financial Operational with respect to Performance.

Share Capital

The paid-up share capital of the company as on March 31, 2024, stands at Rs. 2,52,92,250 divided into 2529225 equity shares of Rs. 10/- each fully paid up.

Reserves and Surplus

The Reserves and Surplus is Rs. 2,247.08 Lakhs as on the end of the financial year 2023-24.

Total Income

The total income during the year was Rs. 1251.51 Lakhs.

Profit / Loss

Profit after tax for the year was Rs. 919.90 Lakhs during the year as against the Profit of Rs. 477.47 Lakhs in the previous year.

6. Material developments in Human Resources / Industrial Relations front, including number of people employed.

Our people are our key assets. We have been able to create a work environment that encourages pro activeness and responsibilities. The relationship with employees has been harmonious during the year and the company did not suffer any work loss. The company continues to lay emphasis on developing and facilitating optimum human performance. During the year, the number of on-rolls employees is 4. As on March 31,2024, there are 4 permanent employees of the Company.

7. 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:

As the Company does not have any debt on its balance sheet, Debtors turnover, Debt Equity and Interest Coverage ratios are not applicable and have not been calculated.

The change in Current Ration from 4.43 in previous year to 5.98 in FY 2023-24, Net Profit Margin from 66.41% in previous year to 73.50% in FY 2023-24 and Return on Net Worth (%) from 35.77% in previous year to 43.65% in FY 2023-24 are due to the reduction in the sales compared to previous year.

CAUTIONARY STATEMENT

Statement in the Management Discussion and Analysis describing the Companys objectives, projections, estimate, expectations on a go "forward - looking statements" are within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments within the country, demand and supply conditions in the industry, input prices, changes in government regulations, tax laws and other factors such as litigation and industrial relations.