HCKK Ventures Ltd Management Discussions

Industry Structure and Development:

HCKK operates at the forefront offering specialized consultancy services to businesses thetechnologysector, in the Logistics, Telecommunication, and Education industries. Through strategic partnerships with esteemed ge software solutions,companies,HCKKequipsitsclientswithcutting- tailored to streamline regulatory compliance in areas such as e-Invoicing, E-Way Bill,GoodsandServicesTax(GST),andDigitalCertificates.

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:

Particulars	2024-25	2023-24
Total Income	68.87	83.20
Financial Costs	--	--
Depreciation and Amortization	0.09	0.07
Profit before tax and exceptional items	29.47	32.62
Exceptional income	--	--
Profit after exceptional items before tax	29.47	32.62
Taxes(benefit)	7.44	6.74
Profit after tax	22.03	25.88
Other Comprehensive Income / (Loss)	--	--
Net Profit	22.03	25.88
Earnings per share (Basic)	0.59	0.70

During the financial year under review the revenue from operations has decreased from INR. 83.20 Lakhsto INR. 68.87 Lakhs. During the year, the main revenue was from Sale of Services.

The revenue for FY 2025 was 68.87 Lakhs, Lower by [ ] percent over the previous years revenue of 83.20 Lakhs. The profit after tax (PAT) attributable to shareholders and non-controlling interests for FY 2025 and FY 2024 was 22.03 Lakhs and 25.88 Lakhs, respectively.

Segment Wise or Product Wise Performance:

(Rs. In Lakhs)

FY 2024-2025	FY 2023-2024	% Increase/(Decrease)
46.88	62.24	-24.68%

Business 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

GreenLogistics

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 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. 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 AccountingStandards 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.

Development On Human Resource:

At HCKK Ventures Limited our human resource is critical 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 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

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.

Internal Control System:

In last five years, the company has concentrated on reduction of fixed expenses and has also reduced direct variables cost. It has concentrated on value added products and optimize on available cash flow. The management is ensuring an effective internal control system to safeguard the assets of the company. Efforts for continued improvement of internal control system are being consistently made in this regard.

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 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. looking statements are based on certain assumptions and expectations of future growth.

Financial Ratios:

Ratio	Basis of Ratio	Ratio Current	Ratio Variance Year	Previous Year	% Reason for major variance
Current Ratio	Current Asset/ Current Liabilities	66.20	50.70	30.56%	Current assets have increased, while current liabilities have decreased compared to the previous year.
Debt Equity Ratio	Total Debt/ Shareholders Equity	0.01	0.01	-5.02	The ratio remains very low at 0.01, indicating almost no reliance on debt financing
Debt Service Coverage Ratio	Earnings available for debt service / Debt Service	-	-	-	-
Return on Equity Ratio	Net Profit after Tax/ Average Shareholders Equity	5.02%	6.21%	-19.14%	There is increase in operational Expenditure of the company and hence there is decreased in return on Equity as compared to previous year
Inventory turnover Ratio	Cost of Goods Sold/ Average Inventories	-	-	-	Not Applicable
Debtor Turnover	Net Credit Sales/ Accounts Receivables	2.72	5.38	-49.42	The Debtors Turnover Ratio has decreased compared to the

 

Ratio	Basis of Ratio	Ratio Current Year	Ratio Previous Year	Variance %	Reason for major variance
Trade Payables	Net Credit Purchases/	-	-	-	Not Applicable
Turnover Ratio	Accounts Payable
Net Profit Ratio	Net Profit/Net Sales	47.00%	41.58%	13.03%	There is increase in overall operations of the company and hence there is Increase in profit.
Return on Capital Employed	EBIT/Capital Employed (Total Assets - Current Liability)	0.05	0.06	-19.14%	The drop from 0.06 to 0.05 indicates reduced efficiency in capital usage to generate operating profits.
Interest coverage Ratio For And on Behalf of The Board of Directors HCKK Ventures Limited	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable

 

Sd/-	Sd/-
Apurv Bhargava	Antoo Kochappan Kallan
Managing Director	Director
DIN: 10175879	DIN: 02489070
Place: Mumbai
Date: 13th August, 2025