1

A Report on Organization Study

Undertaken at

CLIO INFOTECH LIMITED

Mumbai

Submitted in partial fulfillment of the requirement of the

Master of Business Administration program

Offered by Jain (Deemed-to-be University) during the year 2020-21

Submitted by

MEERA SHAH

USN NO: 20MBAR0545

SECTION: CF3

Under the Guidance of

--

--Professor---

No.17, Sheshadri Road, Gandhi Nagar, Bengaluru – 560009, India

Tel: +91 80 4684 0400

E-mail: [email protected], Website: www.cms.ac.in

1
2

DECLARATION

I hereby declare that this report is a bona-fide submission of the

Organization study of Clio infotech limited, Mumbai concluded by me

under the guidance of Dr.Satish Kumar R in partial fulfilment for the

award of Master of Business Administration (MBA).

I further declare that this study is based on my original work and this

report has not been submitted/ published elsewhere in connection with

any other academic course or otherwise.

I have no objection for the University to use the contents for any kind of

publication – print/online. I hereby, authorize the University authorities to

take decisions pertaining to the same and will abide by their decisions.

Place:Bir atnagar ,Nepal -Signatur e-

Date: 30 Mar 2021 -- MEERA SHAH---

2
3

Certificate

This is to certify that this report titled Organization study on

“CLIO INFOTECH LIMITED”, MUMBAI is a record of the
original and independent work carried out by USN No.
20MBAR0545 Name: MEERA SHAH under my guidance and
supervision.

This has not previously formed the basis for the award of any
Degree / Diploma or other similar title of recognition.

Date: 30 March 2021 Dr. Satish Kumar R

Place: Bangalore Associate Professor

3
4

Certificate

This is to certify that Miss.MEERA SHAH USN No.20MBAR0545 has

successfully completed Organization Study Project on “CLIO

INFOTECH LIMITED”, MUMBAI.

This project has been submitted in partial fulfillment of the requirement

for the award of Master of Business Administration (MBA) programme

of Jain (Deemed-to-be University).

Date: March 30, 2021 Har old Andr ew Patr ick, PhD

Place: Bangalore Professor & Dean - Academics

4
5

CONTENT PAGE:

S.N CONTENT PAGES NO.

1. Company history and Profile 6-9

2. Industry Analysis 10-12

3. Marketing 13-14

4 Finance 15-27

5 Human Resource 28-30

6 Operations 31

7 Supply chain Management 32-33

8 Systems and operation 34

9 Corporate Social Responsibility 35

10 News Article 36-

11 References

5
6

CHAPTER-1

COMPANY HISTORY AND PROFILE

BACKGROUND AND HISTORY:

Clio Infotech Ltd is an India-based Company. The Company provides Computer
software.The Company_x0012_s products include: system integration and software
solution, computer networking and hard ware, and bse/nse on line training. Clio
Infotech Limited is based in Mumbai, India. Clio Infotech was incorporated on June
26, 1992 by Mahendra V Raval, along with his family members and obtained
certificate of commencement of business dated July 30, 1992. In the year 1996, the
company had entered into an agreement with Monarch Project.The company was
formerly known as Clio Finance Limited and changed its name to Clio Infotech
Limited in December 1999.
YEAR EVENTS

1992
- The Company was incorporated on 26th June, by Mr. Mahendra V.Raval, along
with his family members and obtained certificate of commencement of business dated
30th July.
- The Company is currently engaged in the business of Leasing, Hire Purchase,
Investment Banking, money market operations, Corporate advisory services etc.
- The Company is currently engaged in providing corporate consultancy covering
company formation, capital restructuring, tax planning, mergers & acquisitions etc.,
project consultancy covering preparation of project report, assisting the clients in
getting the project appraised, loan syndication and other activities related to public
issues.
1996
- The Company has entered into an agreement with MONARCH PROJECT and
FINMARKETS LTD.
2000
- The Company Equity shares of Rs. 10/- each Rs. 2.50 paid up allotted to Bodies
Corporate and other than promoters on preferential basis.
- The Company has opened in addition to Mumbai a software development workshop
at Baldeo Baug, Rajnandgaon, M.P.
- The Company entered into business tie up with NetAvenue for web hosting services
S.R. Singapore Pvt. Ltd. for e-commerce RoltaNet for selling Internet connections.
- The Company reopened its office at Raipur. The Company has passed a resolution to
allot 50 lac shares on private placementat a premium of Rs 2/- per share.

6
7

2015
-The Company Has Changed His Registered Office from 1-D, Ground Floor, 29-41,
Tamrind Lane, Fort, Mumbai - 400001 to 5 & 9, Floor-1&2, Plot - 27/33, Beaumon
Chambers, Nagindas Master Lane, Hutatma Chowk, Fort, Mumbai - 400001.

VISION:
The Company is an Information Technology company committed to Empowering
Business Transformation.A comprehensive set of software solutions (20+), coupled
with a wide range of IT services, uniquely positions the company to address the
dynamic requirements of a variety of industry verticals, Insurance, Capital Markets,
Asset & Wealth Management (BFSI). The company also provides solutions for other
verticals such as Manufacturing, Retail, Distribution, Telecom and Healthcare.

MISSION:
The Company integrates its products and services to create customized solutions to
allow us to undertake technology-based business transformation that allows
reorganization in line with today's dynamic digital business environment.

GOALS AND OBJECTIVES:

 Ensure business goals and objectives are considered at all stages of a project
 Identify and leverage accurate insights into software project success and failure
rates and reasons
 Identify and encourage best practices which are appropriate for a particular
project

 Encourage a spirit of openness, transparency, integrity, trust, and continuous

learning
 Build and nurture a global community that shares our vision and mission
 Provably and reliably reduce the cost, effort, duration and risk of computer
networking,software solution.

SWOT ANALYSIS:
STRENGTHS:
 Growth in Net Profit with increasing Profit Margin
 Company with Low Debt
 Company with Zero Promoter Pledge

7
8

WEAKNESS:
 Inefficient use of capital to generate profits - RoCE declining in the last 2 years
 Inefficient use of shareholder funds - ROE declining in the last 2 years
 Decline in Quarterly Net Profit with falling Profit Margin
 Companies with weak financials
 Declining Net Cash Flow : Companies not able to generate net cash
 Annual net profit declining for last 2 years
 Book Value Per Share deteriorating for last 2 years
OPPORTUNITY:
 Companies with Upcoming Results
 Positive Breakout First Resistance ( LTP > R1)
 Highest Recovery from 52 Week Low
 Stock with Low PE (PE < = 10)
 Volume Shockers
THREATS:
 Upcoming Results for Nifty500 with Declining Share Price Over the Week
 Declining profitability: Falling ROCE

PRODUCT PROFILE:
The total income of the Company for the year under review stood at 18.52 Lakhs
(previous year Rs. 8.24 lakhs) increase by 125 %. During the year the Company had a net
loss of Rs. 51.80 lakhs (previous year net loss of Rs. 19.51 lakhs).

MARKET SHARE:
The market share of clio infotech is Rs.2.1 million.

8
9

PRESENT STATUS:

The world Economy continues to face challenged on the road to sustained recovery
due to the vast and seemingly everlasting impact of COVID 19 pandemic. Advanced
Economies that seemed towards the fag-end of the year and this uncertainty is
clouding the prospectus for global growth during the year 2020. The Growth
momentum was impacted as the protracted debt crisis in the euro area and the fiscal
fragilities dampened and consumer confidence.

FUTURE PLANS:

With improving business prospects at both local and global level, Prospects for Indian
Industries looks bright. But banking sector globally is under pressure though with
government’s effective regulatory measures taking control of the situation things may
improve for the best.

9
10

CHAPTER-2

INDUSTRY ANALYSIS

ORIGIN OF INDUSTRY IN INDIA:

Clio Infotech Limited is based in Mumbai, India. Clio Infotech was incorporated on
June 26, 1992 by Mahendra V Raval, along with his family members and obtained
certificate of commencement of business dated July 30, 1992. In the year 1996, the
company had entered into an agreement with Monarch Project.

Growth and present status :

The economic crisis and its ramifications have accelerated the shift of economic
power from the developed to the emerging nations and exposed a fragile world with
limited capacity to respond to systematic risks. The Consequences has been volatile
and low growth which is likely to stay for some time to come.

Global scenario :

The current COVID-19 effect on the Market. The pandemic of Coronavirus

(COVID-19) has influenced each part of life in indian industry market.The company
hopes to improve its performance on the strength of its long experience and its strong
emphasis on the fundamentals.

Key players in the industry :

Manufacturing, Retail, Distribution, Telecom and Healthcare are key player in the
industry.

Market analysis :
To understand the market analysis SWOT analysis is done by the clio infotech from
were we can understand the strength,weakness ,opportunity and threats of the
company.The company hopes to improve its performance on the strength of its long
experience and its strong emphasis on the fundamentals.
10
11

PESTLE Analysis :

 Political Factor:

Clio Infotech Limited is committed to good Corporate Governance in order to

enhance stakeholders' value. Company believes that Corporate Governance is not an
end in itself but a catalyst in the process towards maximization of stakeholder value.
Company's philosophy on Corporate Governance enshrines the goal of achieving the
highest levels of transparency, accountability and equity in all spheres of its
operations and in all its dealings with its stakeholders. It is company's belief that
good ethics make good business sense and our business practices are in keeping with
the spirit of maintaining the highest level of ethical standards.

 Economic Factor:

They have total worth equity Rs.11,69,42,448 .The Company integrates its products
and services to create customized solutions to allow you to undertake
technology-based business transformation that allows reorganization in line with
today's dynamic digital business environment.

 Social Factor:

1. Language spoken: English is widely spoken language in India, English

medium being the most accepted medium of education. Thus, India boasts of
large English speaking population.
2. Working age population.

 Technological Factor:

1. The efforts made towards technology absorption - The Company continues to

take prudential measures in respect of technology absorption, adaptation and take
innovative steps to use the scarce resources effectively.
2. The benefits derived like product improvement, cost reduction, product
development or import substitution- Not Applicable
3. In case of imported technology (imported during the last three years reckoned
from the beginning of the financial year) – N/A
4. The expenditure incurred on Research and Development - Not Applicable

11
 12

 Environmental Factors:

The Operations of the Company do not consume energy intensively. However, the
Company continues to implement prudent practices for saving electricity and other
energy resources in day-to-day activities. Steps taken by the Company for utilizing
alternate sources of energy - Though the activities undertaken by the Company are not
energy intensive, the Company shall explore alternative sources of energy, as and
when the necessity arises.

 Legal factors:

 Discrimination laws
 Antitrust laws
 Employment laws
 Consumer protection laws
 Copyright and patent laws
 Health and safety laws
 Consumer protection laws
 Data protection laws

12
13

CHAPTER -3A

MARKETING

Segments and Target markets

Market segmentation and targeting refer to the process of identifying a company’s
potential customers, choosing the customers to pursue, and creating value for the
targeted customers. It is achieved through the segmentation, targeting, and positioning
(STP) process.Segmentation is the first step in the process. It groups customers with
similar needs together and then determines the characteristics of those customers.The
second step is targeting, in which the company selects the segment of customers they
will focus on. Companies will determine this base on the attractiveness of the
segment.

Range of Products / services :

A comprehensive set of software solutions (20+), coupled with a wide range of IT
services, uniquely positions the company to address the dynamic requirements of a
variety of industry verticals, Insurance, Capital Markets, Asset & Wealth
Management (BFSI). The company also provides solutions for other verticals such as
Manufacturing, Retail, Distribution, Telecom and Healthcare.

Market Share and comparison to competition

Price on BSE (INR.)* BSE Sensex (Points)*
Month

High low High low

April 2019 1.98 1.98 39,487.45 38,460.25

May 2019 1.98 1.98 40,124.96 36,956.10

June 2019 1.98 1.98 40,312.07 38,870.96

July 2019 2.14 1.96 40,032.41 37,128.28

August 2019 2.14 2.04 37,807.55 36,102.35

September 2019 2.23 2.12 39,441.12 35,987.80

October 2019 2.23 2.12 40,392.22 37,415.83

November 2019 2.22 2.01 41,163.79 40,014.23

13
14

December 2019 2.32 2.11 41,809.96 40,135.37

January 2020 2.32 2.11 42,273.87 40,476.55

February 2020 2.32 2.30 41,709.30 38,219.97

March 2020 2.30 2.19 39,083.17 25,638.90

Competition:

Company Last Market Sales Net Total

Price Cap(Rs.CR) turnover Profit Assets

VCK cap MKT 1.70 1.54 5.20 -0.05 1.03

Five X tradecom 0.75 1.54 0.37 -0.01 19.22

Indergiri Fin 3.00 1.52 0.41 0.01 5.12

Brijlaxmi Leas 2.68 1.51 0.43 0.03 4.31

Vax Housing 1.25 1.50 0.05 000 43.38

Fin.

V B Desal Fin. 3.25 1.47 2.59 0.59 10.46

Capfin India 4.76 1.36 0.14 0.03 3.33

Mehta Integrat. 2.69 1.34 0.45 0.23 15.78

Ramchandra 0.26 1.33 0.62 0.02 5.43

Leas

Vishvprabha 47.50 1.19 2.10 0.07 2.31

Leas.

14
15

CHAPTER-3B

FINANCE

Accounting Standards followed :

Disclosure of accounting principles:
All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for specific or identical
assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to
the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring
basis, the Company determines whether transfers have occurred between levels in the
hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting
period.
The Company's Management determines the policies and procedures for both
recurring fair value measurement, such as derivative instruments and unquoted
financial assets measured at fair value, and for non-recurring measurement, such as
assets held for distribution in discontinued operations.
At each reporting date, the Management analyses the movements in the values of
assets and liabilities which are required to be remeasured or re-assessed as per the
Company's accounting policies. For this analysis, the Management verifies the major
inputs applied in the latest valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.
The Management also compares the change in the fair value of each asset and liability
with relevant external sources to determine whether the change is reasonable.

Valuation of Inventories:

Inventory comprise of Shares and Cost of shares includes cost of purchase & other
direct broker costs incurred in purchasing Shares. Inventories are valued at the lower
of cost and the fair market value.

Cash flow statement:

Cash flow statement for the year ended 31 march 2020

15
16

Cur r ent Year Pr evious Year

Par ticular s
2019-20 (Rs.) 2018-19 (Rs.)
Cash flow fr om/(used in) oper ating
activities
Profit before tax -5,177,001 -1,947,962
Adjustment for :
Exception item - -
Interest expense - -
Interest income on deposits and
- -
dividend income
Interest on income tax - -
Depreciation and amortization - -
Unrealised exchange difference (net) - -
(Profit)/Loss from sale of Property, plant
- -
and equipment
Trade receivables / advances written off - -
Creditor written back - -
Fair value on change of equity
- -
instruments
Remeasurement of defined employee
- -
benefit plans

Oper ating pr ofit befor e wor king

-5,177,001 -1,947,962
capital changes

Movement in wor king capital:

(Increase)/decrease in trade receivables - -
(Increase)/decrease in inventories 612,345 166,790
(Increase)/decrease in loans - -
(Increase)/decrease in other financial
-458,105 -3,148,755
Assets
(Increase)/decrease in other Current
- -
Assets
Increase/(decrease) in trade payables - -
Increase/(decrease) in other current
4,451 111,469
liability
Increase/(decrease) in provision 9,999 -61,148
Cash gener ated/(used) in oper ations -5,008,310 -4,879,606
Income taxes paid - -
Net Cash flow fr om oper ating (A) -5,008,310 -4,879,606

16
17

activities

Cash flow fr om/(used) investing

activities
Payments Property, plant and equipment - -
Interest received - -
Proceeds from sale of Property, plant
- -
and equipment
Proceeds from sale of Biological Assets - -
(Increase)/decrease in Loans / Trade
-13,638,550 8,498,079
Deposits
(Increase)/decrease in fixed deposit with
- -
bank
(Increase)/decrease in Investment - -
Cash gener ated/(used) in investing
(B) -13,638,550 8,498,079
activities
Cur r ent Year Pr evious Year
Par ticular s
2019-20 (Rs.) 2018-19 (Rs.)
Cash flow fr om/(used in) financing
activities
Proceed /(repayment) of borrowings
13,803,442 -314,042
(net)
Proceeds from issue of share capital - -
Share premium from issue of equity
- -
shares
Unclaimed dividend paid on equity
- -
share
Interest paid - -
Cash gener ated/(used) in financing
(C) 13,803,442 -314,042
activities

Net incr ease/(decr ease) in cash and (A+B

-4,843,418 3,304,431
cash equivalents +C)

Cash and cash equivalent at beginning

5,135,195 1,830,763
of year
Unrealised exchange difference - -
Total Cash and cash equivalent at
5,135,195 1,830,763
beginning of year
Cash and cash equivalent at end of year 291,777 5,135,195
Unrealised exchange difference at year - -

17
18

end
Total Cash and cash equivalent at end of
291,777 5,135,195
year
Net incr ease/(decr ease) as disclosed
-4,843,418 3,304,431
above
- -

Property, plant and equipment:

It is stated at cost less accumulated depreciation and where applicable accumulated
impairment losses. Property, plant and equipment and capital work in progress cost
include expenditure that is directly attributable to the acquisition of the asset. The cost
of self-constructed assets includes the cost of materials, direct labour and any other
costs directly attributable to bringing the asset to a working condition for its intended
use and the costs of dismantling and removing the items and restoring the site on
which they are located. Purchased software that is integral to the functionality of the
related equipment is capitalized as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives,
they are accounted for as separate items (major components) of property, plant and
equipment.
Subsequent Cost
The cost of replacing part of an item of property, plant and equipment is recognised in
the carrying amount of the item if it is probable that the future economic benefits
embodied within the part will flow to the Company and its cost can be measured
reliably. The carrying amount of the replaced part is de-recognised and charged to the
statement of Profit and Loss. The costs of the day-to-day servicing of property, plant
and equipment are recognised in the Statement of Profit and Loss.

Tangible Assets
Furniture Capital
Particulars Office Air Office
Computer & Vehicles Total Work in
Premises Conditioners Equipment
Fixtures Progress
Gross Block (At cost)

As at 01 April 2018 204,005 175,977 3,490,171 1,742,024 678,556 167,911 6,458,644 -

Additions - - - - - - - -
Deductions/Adjustments - - - - - - - -
As at 31 March 2019 204,005 175,977 3,490,171 1,742,024 678,556 167,911 6,458,644 -

Additions - - - - - - - -
Deductions/Adjustments - - - - - - - -
As at 31 March 2020 204,005 175,977 3,490,171 1,742,024 678,556 167,911 6,458,644 -

18
19

Depreciation/amortisation
As at 01 April 2018 204,005 175,977 3,490,171 1,742,024 678,556 167,911 6,458,644 -
For the year - - - - - - - -
Deductions/Adjustments - - - - - - - -
As at 31 March 2019 204,005 175,977 3,490,171 1,742,024 678,556 167,911 6,458,644 -

For the year - - - - - - - -

Deductions/Adjustments - - - - - - - -
As at 31 March 2020 204,005 175,977 3,490,171 1,742,024 678,556 167,911 6,458,644 -

Net Block
At 01 April 2018 - - - - - - - -
At 31 March 2019 - - - - - - - -
At 31 March 2020 - - - - - - - -

Intangible assets

Intangible assets are stated at cost less accumulated amortisation and impairment loss.
The system software which is expected to provide future enduring benefits is
capitalised. The capitalised cost includes license fees and cost of
implementation/system integration.

Depreciation and amortisation

The depreciation on tangible assets is provided at the rates and in manner prescribed
under Part C of Schedule II to the Companies Act 2013.

Computer software is amortised over a period of 5 years.

The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if
appropriate.

Derecognition of assets

An item of property plant & equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from

19
20

its use or disposal. Any gain or loss arising on Derecognition of the asset is included
in the income statement when the asset is derecognised.

Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will
flow to the Company and the revenue can be reliably measured, regardless of when
the payment is being made. Revenue is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms of payment
and excluding taxes or duties collected on behalf of the government.

Interest and dividend income –

The interest and dividends are recognised only when no uncertainty as to

measurability or collectability exists. Interest on fixed deposits is recognised on time
proportion basis taking into account the amount outstanding and the rate applicable.

Foreign currency transactions and translation

i. Transactions in foreign currencies are recorded at the exchange rate prevailing on

the date of transaction. Monetary assets and liabilities denominated in foreign
currencies are translated in functional currency at closing rates of exchange at the
reporting date.

ii. Exchange differences arising on settlement or translation of monetary items

recognised in statement of profit and loss.

Investment property

Property that is held for long term rental yield or for capital appreciation or both, and
that is not occupied by the Company , is classified as Investment property. Investment
properties measured initially at cost including related transitions cost and where
applicable borrowing cost. Subsequent expenditure is capitalised to the assets carrying
amount only when it is probable that future economic benefits associated with the
expenditure will flow to the entity and the cost of the item can be measured reliably.
All other repairs and maintenance costs are expensed when incurred. When part of an
investment property is incurred the carrying amount of replaced part is derecognised.
Investment properties other than land are depreciated using SLM method over the
estimated useful life of assets prescribed by the Schedule II to the Companies Act
2013 i.e. 60 years for office premises. Investment properties include:
(i)Office premises.

Borrowing costs

20
21

Borrowing costs directly attributable to the acquisition, construction or production of

an asset that necessarily takes a substantial period of time to get ready for its intended
use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the extent regarded as an adjustment to the
borrowing costs.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the company or a present obligation that
is not recognised because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognised because it cannot be
measured reliably. The contingent liability is not recognised in books of account but
its existence is disclosed in financial statements.

Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset's recoverable amount. An asset's
recoverable amount is the higher of an asset's or cash-generating unit’s (CGU) fair
value less costs of disposal and its value in use. Recoverable amount is determined for
an individual asset. unless the asset does not generate cash inflows that are largely
independent of those from other assets or Company's assets. When the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

Provisions

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the Company expects
some or all of a provision to be reimbursed the reimbursement is recognised as a
separate asset, but only when the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement of profit and loss net of any
reimbursement.

Leases (Ind AS 116) -

21
22

Ind AS 116 is applicable for financial reporting periods beginning on or after 1 April
2019 and replaces existing lease accounting guidance, namely Ind AS 17. Ind AS 116
introduces a single, on-balance sheet lease accounting model for lessees. A lessee
recognises a right-of-use (“ROU”) asset representing its right to use the underlying
asset and a lease liability representing its obligation to make lease payments. The
nature of expenses related to those leases will change as Ind AS 116 replaces the
operating lease expense (i.e., rent) with depreciation charge for ROU assets and
interest expense on lease liabilities. There are recognition exemptions for short-term
leases and leases of low-value items.

Lessor accounting remains similar to the current standard – i.e. lessors continue to
classify leases as finance or operating leases.IND-ASN116 is presently not applicable
to the Company as Company does not have any Lease assets under its use.

The Company is proposing to use the “Modified Retrospective Approach” for

transitioning to Ind AS 116. Accordingly, comparatives for the year ended 31st March
2019 will not be retrospectively adjusted.

Segmental Information

In accordance with IND AS 108 "Operating segment" - The Company used to present
the segment information identified on the basis of internal report used by the
Company to allocate resources to the segment and assess their performance. The
Board of Directors of the Company is collectively the Chief Operating Decision
Maker (CODM) of the Company.

The chief operating decision maker monitors the operating results of its segment
separately for the purpose of making decisions about resources allocation and
performance assessment. Segment performance is evaluated on the basis on profit and
loss.

Earnings per share

Basic earnings per share is computed by dividing the net profit attributable to equity
shareholders for the year, by the weighted average number of equity shares
outstanding during the year, adjusted for bonus element in equity shares issued during
the year.

Diluted earnings per share is computed by dividing the net profit attributable to equity
shareholders for the year, by the weighted average number of equity shares
outstanding during the year after giving effect to all dilutive potential equity shares.

Inventories

22
23

Inventory comprise of Shares and Cost of shares includes cost of purchase & other
direct broker costs incurred in purchasing Shares. Inventories are valued at the lower
of cost and the fair market value.

Taxes
Current income tax

Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The Company determines the tax as
per the provisions of Income Tax Act 1961 and other rules specified thereunder.

Current income tax relating to items recognised outside profit or loss is recognised
outside profit or loss (either in other comprehensive income or in equity). Current tax
items are recognised in correlation to the underlying transaction either in OCI or
directly in equity. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to
interpretation and establishes provisions where appropriate.

Financial Assets at Fair Value through Profit or Loss/Other comprehensive income

Instruments included within the FVTPL category are measured at fair value with all
changes recognised in the Statement of Profit and Loss.
If the company decides to classify an instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends, are recognised in the OCI. There is
no recycling of the amounts from OCI to P&L, even on sale of investment. However,
the company may transfer the cumulative gain or loss within equity.

Internal Control & Audit :

Because of the inherent limitations of internal financial controls over financial

reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These
matters were addressed in the context of our audit of the financial statements as a

23
24

whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. We have determined the matters described below to be key audit
matters to be communicated in our report –

Sr.no Key audit matter Procedure Performed / Auditors

Response

We have verified the process to identify

the impact of the new revenue
Revenue Recognition
accounting standard. After reviewing the
same we inform that there is no material
Only Income earned by the
impact of new revenue accounting
1 company is Interest Income. Same
standard and the Company can continue
is recognized on timely basis &
with its existing accounting practice.
only upon there is no uncertainty as
to its measurability or collectability.
Performed confirmation procedures &
obtained the same.
For the purpose of current & non-current
classification the Company has
considered its normal operating cycle as
12 Months and the same is based on
services provided, acquisition of assets
Appropriateness of Current and or inventory, their realization in cash
2
Non-Current Classification and cash equivalents. The classification
is either done on basis of documentary
evidence and if not then on the basis of
managements best estimate of period in
which asset would be realized or liability
would be settled.

CLIO INFOTECH LTD.

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST
MARCH-2020

Year Ended Year Ended Year Ended

Particulars Notes on Mar on Mar on Mar
31,2020 31,2019 31,2018
INCOME
Revenue From Operations 21 18,31,587 8,23,524 641,131
Other Income 22 20,515 - 973,366

24
25

Total Income 18,52,102 8,23,524 1,614,497

EXPENSES
Changes in inventories 23 6,12,345 1,66,790 476,241
Employee benefit expense 24 9,97,274 8,21,987 2,260,710
Operating Expenses 25 48,03,826 11,10,688 -
Finance Cost 26 1,092 248 483
Other Expenses 27 6,14,565 6,71,773 605,242

Total Expenses 70,29,103 27,71,486 3,342,676

PROFIT BEFORE
EXCEPTIONAL ITEMS,
-51,77,001 -19,47,962 -1,728,179
EXTRAORDINARY ITEMS &
TAX
Less: Extraordinary Items (prior
- - -
period expenses)

Profit Before Tax -51,77,001 -19,47,962 -1,728,179

Tax Expenses
Current Tax - - -
Deferred tax 29 3,431 3,507 10,684
Short & Excess Tax Provision - - -
Prior year tax adjustments (net) - - 210,371
Total Tax Expenses 3,431 3,507 221,055

Profit for the Year (After Tax) -51,80,432 -19,51,469 -1,949,234

Other Comprehensive Income -

A(i) Items that will not be
-
reclassified to profit or loss
Equity Instruments through Other
28 -8,940 -18,000
Comprehensive Income

Total Comprehensive Income for

-51,89,372 -19,69,469 -1,949,234
the year
Earnings Per equity share of face
value of Rs 10 each
Basic (in Rs) A -4.70 -1.77 -0.18

25
26

20(9)
A
Diluted (in Rs) -4.70 -1.77 -0.18
20(9)
Significant Accounting Policies A
See accompanying Notes to the
Financial Statements

CLIO INFOTECH LTD.

BALANCE SHEET AS AT 31ST MARCH, 2020

Year Ended Year Ended Year Ended

Particulars Notes on Mar on Mar on Mar
31,2020 31,2019 31,2019
ASSETS
Non-current assets
Property Plant and Equipment 2 - -
Capital work-in-progress 2 - -
Intangible Assets 3 - -
Financial assets
- Investments 4 3,510 12,450
- Other Financial Assets 5 19,77,03,760 18,40,65,210
Deferred tax assets (Net) 6 28,733 32,164
Total Non Current Assets 19,77,36,003 18,41,09,824

Current assets
Inventories 7 4,08,818 10,21,163
Financial assets
- Trade Receivables 8 - -
- Cash and cash equivalents 9 2,91,778 51,35,195
- Loans and advances 10 2,80,000 5,000
- Other Current Asset 11 17,86,702 16,03,597
Total Current Assets 27,67,297 77,64,955

Total Assets 20,05,03,300 19,18,74,779

26
27

EQUITY AND LIABILITIES

Equity
Equity Share capital 12 11,01,09,500 11,01,09,500
Other equity 13 68,32,948 1,20,22,319
Total Equity 11,69,42,448 12,21,31,819

Non-current liabilities
Financial liabilities
- Deposits 14 7,82,19,861 6,93,49,619
- Provisions 15 - -
Total Non Current Liabilities 7,82,19,861 6,93,49,619

Current liabilities
Financial liabilities
- Borrowings 16 49,33,200 -
- Trade payables 17 - -
- Other financial Liabilities 18 - -
Provisions 19 2,91,171 2,81,172
Other current liabilities 20 1,16,620 1,12,169

Total Current Liabilities 53,40,991 3,93,341

TOTAL Liabilities 20,05,03,300 19,18,74,779

Significant Accounting Policies A
See accompanying notes to the
financial statements

The revenue of clio infotech is 18,31,587 .The expenses of operating activities of the
company is 48,03,826.
The total assets is 20,05,03,300
.Liabilities is 20,05,03,300.
Owner’s equity is 11,69,42,448.

The total income of the Company for the year under review stood at 18.52 Lakhs
(previous year Rs. 8.24 lakhs) increase by 125 %. During the year the Company had a
net loss of Rs. 51.80 lakhs (previous year net loss of Rs. 19.51 lakhs).

27
28

CHAPTER-3C

HUMAN RESOURCE

Organisational cultural:
Organizational culture is defines the different type of place an organization, this
organization is for people, they will be any type of stakeholder: general manager
director, employee and customer. Organizational culture is the big part of values,
rules, symbols, taboos and rituals that evolve over time. It is the common feel and
thinking shared by members that identifies how is the things get done in the
organization. Culture drives expected behaviors internal to the organization as well
and those engaged when interacting with its outside environment. Understanding an
organization’s culture helps an employee learn the line and discover whether their
personality is a good fit. The greater the acceptance of key values and norms, the
stronger the culture. Strong cultures are associated with employee commitment and
organizational performance. The strength of culture is determined by the size of the
firm, how long it has been around, intensity and turnover rate.
Organizational culture is reflected in the way that people in an organization perform
tasks, set objectives and administer resou.rces to achieve them. It affects the way that
they make decision, think, feel and act in response to opportunities and threats.
Culture also influences the selection of people for the particular jobs, which in turn
affects the way that tasks are carried out and decisions are made. Culture is so
fundamental that it affects behavior. Organizational Culture is not alone, the culture is
in the people mind to lead the people behavior, to help the stuff come together with
out money.
Organizational culture is also a linked with leadership. It is the leader or leader group
that should set the tone and tasks for the organization. The organizational culture now
in an organization is like a mirror, to show you how good with the leader personal
ability, if the leader is strong enough, he or she will have a very clear future about
what should be done and how to do it. If the leader ship is weak the culture may be
always around on decision making to accomplish lower level objectives. The
organizational culture is not only help the company grown, it is also a good test of the
organizational viability. The organizational culture is reflected from six ways. There
are vision, trust, self-knowledge, responsiveness to the situation and creativity. For
vision, this is the point to give the confidence and positive feel to change the proposed.
For communication, the blue print-need to be shared with every member. Passion for
work need to be communicated with each other and groups inspired to meet the
challenge of change. For trust, consistency and integrity need to be part of the leader’s
approach if people are follow willingly. For self-knowledge, leader also need to know
their strengths and weaknesses and be able to acknowledge these. No one is good at
everything, nor needs to be. For responsiveness to the situation, leadership in strategy
will occasionally require positive ‘championing’ of the new way forward. This may

28
29

demand a degree of aggression to achieve the objective. At other times, leadership

may need to be more participate and ‘listening’ in its style. For the last point,
creativity, Strategy development needs innovation. The leader will not have all the
answers but will know how to ask the right question. (Corporate strategy, 1997).

Clio Infotech Organisational culture:

Clio Infotech organizational culture is a driving force that pushes the company to
continue its leadership in the information technology . A company’s organizational
culture, which in this business case is the corporate culture, refers to the traditions,
customs, and behavioral ideals that predominantly influence employees’ behaviors.
Clio Infotech corporate culture motivates employees to share information for the
purpose of supporting innovation. Innovation is a factor that enables the company to
maintain its competitiveness against other technology businesses.Through its
corporate culture, Clio infotech ensures that its workforce is competent in addressing
business needs linked to the external forces generated by these competitors. The
corporation actively develops its cultural strengths through institutional measures, like
training, and through informal approaches, such as personalized leadership and
management support. Efforts to continuously improve the characteristics of Clio
Infotech organizational culture are applied to maintain creativity and innovation.
Clio infotech cultural features are focused on enhancing employee performance. The
company expects effective motivation through its organizational culture. For example,
in developing solutions to target customers’ everyday problems, Clio Infotech
corporate culture motivates workers to think outside the box and aim for novel ideas.
In this way, the organizational culture facilitates human resource support for various
strategies, such as Clio infotech generic strategy and intensive growth strategies.

Industrial Law:
 The Factories Act, 1948
 The Payment of Wages Act, 1936.
 The Minimum Wages Act, 1948.
 The Employee Provident Fund and Miscellaneous Provisions Act, 1952.
 The Payment of Gratuity Act, 1972. The Bombay Shops and Establishments Act,
1948.
 The Maharashtra Labour Welfare Fund Act, 1953.
 The Environment (Protection) Act, 1986.
 The Public Liability Insurance Act, 1991.
 The Maharashtra Pollution and Control Board Circulars and its Standing Orders

Job Description:
Job description includes basic job-related data that is useful to advertise a specific job
and attract a pool of talent. It includes information such as job title, job location,

29
30

reporting to and of employees, job summary, nature and objectives of a job, tasks and
duties to be performed, working conditions, machines, tools and equipments to be
used by a prospective worker and hazards involved in it.

Purpose of Job Description:

The main purpose of job description is to collect job-related data in order to advertise
for a particular job. It helps in attracting, targeting, recruiting and selecting the right
candidate for the right job.
 It is done to determine what needs to be delivered in a particular job. It clarifies
what employees are supposed to do if selected for that particular job opening.
 It gives recruiting staff a clear view what kind of candidate is required by a
particular department or division to perform a specific task or job.
 It also clarifies who will report to whom.

Job Specification:
Also known as employee specifications, a job specification is a written statement of
educational qualifications, specific qualities, level of experience, physical, emotional,
technical and communication skills required to perform a job, responsibilities
involved in a job and other unusual sensory demands. It also includes general health,
mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional
ability, adaptability, flexibility, values and ethics, manners and creativity, etc.

Purpose of Job Specification:

Described on the basis of job description, job specification helps candidates analyze
whether are eligible to apply for a particular job vacancy or not.
 It helps recruiting team of an organization understand what level of qualifications,
qualities and set of characteristics should be present in a candidate to make him
or her eligible for the job opening.
 Job Specification gives detailed information about any job including job
responsibilities, desired technical and physical skills, conversational ability and
much more.
 It helps in selecting the most appropriate candidate for a particular job.
Job description and job specification are two integral parts of job analysis. They
define a job fully and guide both employer and employee on how to go about the
whole process of recruitment and selection. Both data sets are extremely relevant for
creating a right fit between job and talent, evaluate performance and analyze training
needs and measuring the worth of a particular job.

30
31

CHAPTER-3D
OPERATIONS

Impact of COVID on the company’s operations. :

The Covid-19 pandemic has been the defining global health crisis of our time and has
already spread very fast across the continents. But it is much more than a health crisis
and is having an unprecedented impact on people and economies worldwide. The
Company is taking all necessary measures in terms of mitigating the impact of the
challenges being faced in the business. Though the long- term directional priorities of
the Company remain firm, in light of Covid-19 and its expected impact on the
operating environment, the key priorities of the Company would be to closely monitor
safety of employees, conserve cash and control fixed costs.
In view of the outbreak of the pandemic, the Company undertook timely and essential
measures to ensure the safety and well-being of all its employees at the head office.
The Company observed all the government advisories and guidelines thoroughly and
in good faith.

31
32

CHAPTER-3E

SUPPLY CHAIN MANGEMENT

i. Order Process and Resource Management Practices in the company:

The Management Discussion and Analysis Report for the year ended 31st March,
2020. Investors are cautioned that these discussions contain certain forward looking
statements that involve risk and uncertainties including those risks which are inherent
in the Companys growth and strategy. The company undertakes no obligation to
publicly update or revise any of the opinions or forward looking statements expressed
in this report consequent to new information or developments, events or otherwise.

1. Industry Overview:

The world Economy continues to face challenged on the road to sustained recovery.
Advanced Economies that seemed towards the fag-end of the year and this uncertainty
is clouding the prospectus for global growth during the year 2020. The Growth
momentum was impacted as the protracted debt crisis in the euro area and the fiscal
fragilities dampened and consumer confidence.
The economic crisis and its ramifications have accelerated the shift of economic
power from the developed to the emerging nations and exposed a fragile world with
limited capacity to respond to systematic risks. The Consequences has been volatile
and low growth which is likely to stay for some time to come.

2. Opportunities and Threats

The company is mainly exposed to market risk, interest risk, credit risk. However,
prudent business and risk management practices followed by the company over the
years helps it to manage normal industry risk factors which includes
economic/business cycle, fluctuations in the stock prices in the market besides the
interest rate volatility. However, the company hopes to improve its performance on
the strength of its long experience and its strong emphasis on the fundamentals.

3. Segment wise performance

Company has shifted from IT Operations to its tradition Finance business. Due to
heavy competition and margin pressure, Company has stopped IT Operations and
presently most of the revenues are generated from Companys traditional Finance
business. Company believes in stretching itself and put stress on cost cutting strive to
survive in this world of stiff competition.

4. Risks & Concern

Risks are events, situations or circumstances which may lead to negative
consequences on a Companys business. Risk management is a structured approach to
manage uncertainty. It involves identifying potential risks, assessing their potential

32
33

impact, taking timely action to minimize potential impact and continuous monitoring
of identified risks. Your Company has a robust risk management process to identify
and assess business risks and opportunities. Your Companys risk management plan
describes the potential risk, contains an analysis of the impact of risks and includes
risk strategies to help the business reduce the consequences. The risk management
plan of your Company is regularly reviewed to ensure that it accurately reflects the
current potential risks to its business.

5. Internal Control Systems:

Company has adequate internal control procedures to commensurate with the nature
and size of its business. Procedures ensure efficient and cost effective use of
companys resources. Company has developed proper procedures to safeguard
companys valuable assets against losses, to ensure timely and accurate preparation of
accounts and compliances of various rules and regulations.

ii. Supply Chain Finance Practices in the company.

Share Capital: The Paid up Share Capital of the Company as on 31st March, 2020
stands at Rs.110,109,500/- divided into 11010950 equity shares of Rs. 10/- each fully
paid up.

Reserves and Surplus: The Reserves and Surplus is Rs. 68.33 Lakhs as on the end of
the Current year.

Total Income: During the year under consideration, total income is Rs. 18.52 Lakhs.

Employee Relations: Company had smooth relations with its employees during the
year under review

Material Development in Human Resource :The Company continues to have excellent

employee relations. Directors acknowledge and thank the employees for their
continuous support. The Company has strong commitments to follow the best of the
HR practices and believes in up-lifting the overall competence of its employees
through regular training, workshops and seminars.

33
34

CHAPTER-3F

SYSTEMS AND OPERATIONS

There was no significant or material order passed by any regulator or court or tribunal,
which impacts the going concern status of the Company or will have bearing on
company's operations in future.

The Board has adopted policies and procedures for efficient conduct of business. The
Audit Committee evaluates the efficacy and adequacy of financial control system in
the Company, its compliance with operating systems, accounting procedures and
policies at all locations of the Company and strives to maintain the Standard in
Internal Financial Control.

Company's approach on Corporate Governance has been detailed out in the Corporate
Governance Report. Company has deployed the principles enunciated therein to
ensure adequacy of Internal Financial Controls with reference to the financial
statements. Board has also reviewed the internal processes, systems and the internal
financial controls and the Directors' Responsibility Statement contains a confirmation
as regards adequacy of the internal financial controls.

With a view to ensure and review the effectiveness and implementation of the systems
and operations, the Audit Committee regularly reviews them. The Internal Auditors
and Statutory Auditors regularly attend Audit Committee meetings and convey their
views on the adequacy of internal control systems as well as financial disclosures. The
Audit Committee is briefed about the corrective actions taken by the management on
the audit observations. The Audit scope is regularly reviewed by the Audit Committee
for enhancement/ modification of scope and coverage of specific areas.

34
35

CHAPTER -4

CORPORATE SOCIA; RESPONSIBILITY

The provisions relating to Corporate Social Responsibility under Section 135 of the
Companies Act, 2013 and rules made thereunder are not applicable to the Company.
Therefore, the Company has not developed and implemented any Corporate Social
Responsibility initiatives.

35
36

CHAPTER-5

NEWS ARTICLE

Case study: CHEMCO CASE

Started in 1965, ChemCo is a leading manufacturer of car batteries in the U.K. market.
Since then, it has been under the charge of Mr. Jones, the founder-owner of the firm.
In 1999, the company decided to go for a diversification by expanding the product
line. The new product was batteries for fork-lift trucks. At the same time, Mr. Marek
was appointed the Senior Vice President of marketing in the company. However, soon
after its successful diversification into fork-lift batteries, the sales in this segment
began dropping steadily. Mr. Marek wanted to introduce some radical changes in the
advertising and branding of the new business but the proposal was turned down by the
old-fashioned Mr. Jones.
At this juncture in 2002, the firm is losing heavily in the fork-lift batteries business
and its market share in car batteries is also on a decline. Mr. Jones has asked Mr.
Marek to show a turnaround in the company within a year.
What steps should Mr. Marek take to take the company out of its troubles?

Some of the facts on the case are:

 ChemCo is a quality leader in the U.K. car batteries market.
 Customer battery purchases in the automobile market are highly seasonal.
 The fork-lift business was added to utilize idle capacity during periods of
inactivity.
 This is a low-growth industry (1% annual growth over the last two years) Large
customers are sophisticated and buy based on price and quality. Smaller
customers buy solely on price.
 There is a Spanish competitor in the market who offers low priced batteries of
inferior quality.
Situation Analysis:
Company:
 Established player in car batteries
 Losing heavily in fork-lift truck batteries
 Old fashioned owner resistance to change
Competition:
 Low priced competitors
 Foreign competitors gaining market share
Customers:
 High quality product, but low end customers care more about price than quality
Problem Definition:
 Mismanaged product diversification in a price sensitive market

Criteria for evaluation of alternatives:

36
37

 Establishing the firm's quality image

 Increase in market share
 Increase in sales
 Cost of the product
Annexur e

Financial reports :

The Company's performance during the year ended 31st March, 2020 as compared to
the previous financial year, is summarized below:

Particular For the financial year For the financial year

ended 31st March, ended 31st March,
2020 2019
Revenue from operation 18.32 8.24
Other income 0.21 -
Total Income 18.52 8.24
Less: Expenses 70.29 27.71
Profit/ (Loss) before tax (51.77) (19.48)
Less: Provision for tax/Deferred 0.03 0.04
Tax
Income Tax & Tax of years w/off - -
Profit / (Loss) after Tax (51.80) (19.51)
Other comprehensive (loss)/income (0.09) (0.18)
for the year

Total comprehensive income for the (51.89) (19.69)

year

No. of Equity Shares 11010950 11010950

EPS (4.70) (1.77)

37
38

CHAPTER-6

References:
1.https://www.clioinfotech.in
2.https://www.clioinfotech.in/Final/related%20party%20transaction%20policy.pdf
3.https://www.clioinfotech.in/annual_report/2019-20.pdf
4.https://economictimes.indiatimes.com/clio-infotech-ltd/stocks/companyid-7634.cms
5.https://www.bseindia.com/stock-share-price/clio-infotech-ltd/clioinfo/530839/finan
cials-results/
6.https://gdpi.hitbullseye.com/MBA/Example-of-Case-Study.php
7.https://www.business-standard.com/company/clio-infotech-5248/peer-comparisons/
competition/5/20

38