HCKK Ventures Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

HCKK operates at the forefront of the technology sector, offering specialized consultancy services to businesses in the Logistics, Telecommunication, and Education industries. Through strategic partnerships with esteemed companies, HCKK equips its clients with cutting-edge software solutions, tailored to streamline regulatory compliance in areas such as e-Invoicing, E-Way Bill, Goods and Services Tax (GST), and Digital Certificates.

Furthermore, HCKK is distinguished for its comprehensive approach to turnkey projects, wherein it oversees the implementation of holistic Enterprise Resource Planning (ERP) systems for integrating Logistics, Freight forwarding, Warehousing, Transportation for its clientele. This involves a detailed process that spans from system analysis to implementation, coupled with sustained support to ensure the successful realization of objectives.

In its pursuit to foster innovation and bolster capabilities, HCKK is on the cusp of inaugurating its own state-of-the-art development center in Mumbai. This facility will serve as a beacon for technological advancement and client-centric solutions.

DISCUSSION ON FINANCIAL PERFORMANCE:

INR in Thousand (Except EPS)

Particulars	2023-24	2022-23
Total Income	8320.05	2922.32
Total Expenditure	5058.11	2254.27
Depreciation and Amortization	7.17	20.04
Profit before tax and exceptional items	3261.94	668.04
Exceptional income	--	--
Profit after exceptional items before tax	3261.94	668.04
Taxes(benefit)	674.01	1165.66
Profit after tax	2587.93	-497.62
Other Comprehensive Income / (Loss)	--	--
Net Profit	2587.93	-497.62
Earnings per share (Basic)	0.70	-0.13

During the financial year under review the revenue from operations has increased from Rs 1660.00 Thousand to Rs 6223.50 Thousand.

During the year, the main revenue was from Sale of Services.

The revenue for Current Year was Rs 8320.05 Thousands, higher by 184.71% percent over the previous years revenue of Rs 2922.32 Thousands. The profit/ Loss after tax (PAT) attributable to shareholders and non-controlling interests for Current Year is Rs2587.93 Thousand and for Previous Years net loss after tax was Rs497.62 Thousand.

SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

Sales of Services

(Rs. In Lakhs)

FY 2023-2024	FY 2022-2023	% Increase
62.24	16.66	274%

OUTLOOK

The outlook for IT logistics companies is highly promising, driven by advancements in technology, increased e-commerce demand, and the need for enhanced efficiency and security. Companies that innovate and adapt to these trends will likely thrive in a competitive market.

OUR SCOT ANALYSIS

Strengths:

• Advanced Technological Integration

• Global Reach and Scalability

• Innovative Sustainability Initiatives

• Adaptability to Market Trends

• Skilled Workforce and Leadership Challenges:

• Regulatory Compliance and Global Standards

• Talent Acquisition and Retention

• Supply Chain Disruptions and Risk Management Opportunities:

• E-commerce Growth

• Technological Advancements

• Green Logistics Initiatives

• Expansion into New Markets

• Data-driven Decision Making Threats:

• Supply Chain Disruptions and Risk Management RISK AND CONCERNS:

Risk is a potential event or non-event, the occurrence or non-occurrence of which can adversely affect the objectives of the Company. Impact of risks could either be monetary that is impact on business profits due to increase in costs, decreasing revenue amongst others or non-monetary which is delay in securing regulatory approvals, reputational damage etc. The Company is susceptible to risks arising out of our business strategy, succession planning and decision on innovation or product portfolio. If there is any significant unfavourable shift in industry trend or pattern of demand, our returns on investments might get affected. We have risks associated with clients and prospective clients dispositions.

We operate in regulated, semi regulated countries with their own specific complex operating environments. In addition, this business landscape is dynamic and constantly evolving. This brings to the fore a multitude of risks which are closely monitored, mapped, and mitigated. By effectively identifying, assessing, and mitigating risks we strive to enhance our resilience, drive sustainable growth, and maximise value creation. At HCKK, Risk Management is a key strategic focus for the Members of Board. All key functions of the Company are independently responsible to monitor risks associated with in their respective areas of operations such as production, supply chain, marketing, finance, accounting, treasury, legal, human resource and others areas like health, safety and environment.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

An Audit Committee of the Board of Directors of the Company has been constituted as per provisions of Section 177 of the Companies Act, 2013 and corporate governance requirements specified by Listing Agreements with the Stock Exchanges. The Internal Audit Function is looked after internally by the finance and accounts department, and reviewed by the Audit Committee and the management at the regular intervals.

The Internal Auditors Reports dealing with Internal Control Systems are considered by the Audit Committee and appropriate actions are taken, whichever necessary.

DEVELOPMENT ON HUMAN RESOURCE:

At HCKK Ventures Ltd our human resource is critical to our success and carrying forward our Mission.

With their sustained, determined and able work efforts we were able to cruise smoothly through the hard time of the economic volatility and rapidly changing market conditions.

The requirement of the markets given the economic scenario has made this even more challenging.

Attracting newer talent with the drive, training and upgrading existing skill sets and getting all to move in a unified direction will definitely be task in the Company.

By creating conducive environment for career growth, Company is trying to achieve the maximum utilization of employees skills in the most possible way.

There is need and the company is focused on retaining and bringing in talent keeping in mind the ambitious plans despite the market and industry scenario.

The Company also believes in recognizing and rewarding employees to boost their morale and enable to achieve their maximum potential. The need to have a change in the management style of the Company is one of the key focus areas this year.

INDUSTRIAL RELATIONS:

Industrial Relations throughout the year continued to remain very cordial and satisfactory.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your company believes in a work environment that is congenial to on job learning and encourages team work. It has, therefore, continued to focus on developing the competence of its staff and employees.

Cordial and harmonious relation with employees continued to prevail throughout the year under review.

FORWARD - LOOKING STATEMENTS:

This Report contains forward -Looking Statements. Any, statement that address expectations or projections about the future, including but not limited to statements about the Companys strategy and growth, product development, market position, expenditures and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future growth.

ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS:

The Financial Statements have been prepared in accordance with the requirements of the Act, Indian Generally Accepted Principles (Indian GAAP) and the Accounting Standards as prescribed by the Institute of Chartered Accountants of India.

The Management believes that it has been objective and prudent in making estimates and judgments relating to the Financial Statements and confirms that these Financial Statements are a true and fair representation of the Companys Operations for the period under review.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis describing the companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied. Important factors that could make difference to the Companys operations include change in government regulations, tax regimes, and economic developments within and outside India.

FINANCIAL RATIOS:

	Basis of Ratio	Ratio Current Year	Ratio Previous Year	Variance %	Reason for major variance
Current Ratio	Current Asset/ Current Liabilities	32.73	93.45	-64.97%	Increase in other current liabilities as compared to last year.
Debt Equity Ratio	Total Debt/ Shareholders Equity	-	-	-	As there is no debt in the company.
Debt Service Coverage Ratio	Earnings available for debt service / Debt Service				As there is no debt in the company.
Return on Equity Ratio	Net Profit after Tax/ Average Shareholders Equity	6.21%	-1.27%	587.76%	There is increase in overall operations of the company and hence there is increase in profits.
Inventory turnover Ratio	Cost of Goods Sold/ Average Inventories		14.61%	-100%	The change in the ratio is due to the company having no inventory.
Net Profit Ratio	Net Profit/ Net Sales	41.58%	-29.98%	238.72%	There is increase in overall operations of the company and hence there is decrease in loss and increase in sales.
Debtor Turnover	Net Credit Sales/ Accounts Receivable	5.38	1.28	320.31%	There is increase in overall operations of the company and hence there is increase in sales.
Interest coverage Ratio	Earnings Before Interest Ratio/Interest Expenses				As there is no debt and hence no interest.

 

For And on Behalf of the Board of Directors
HCKK Ventures Limited
Sd/-	Sd/-
Mr. Apurv Bhargava	Mr. Antoo Kallan
Managing Director	Director
Place: Mumbai
Date: 31st July, 2024