HKG Ltd Management Discussions.

(ANNEXUREIII TO THE REPORT OF BOARD OF DIRECTORS)

BUSINESS OVERVIEW:

HKG Limited is one of the fastest growing business conglomerates in Mumbai, India. We aspire to connect small businesses and empower them to grow through the use of our web interfaces and services. Our vision is to make web interface service accessible to every small business and enable them to grow manifold.

HKG Limited is helmed by Mr. Yatin Shah (Promoter), a veteran who has more than 20 years of experience in Financial services, Consulting and Information Technology. Under his able leadership, we have been relentlessly on the progressive journey.

COMPANY OVERVIEW:

OUR SERVICES:

• My Rera:

My RERA is a one-stop first-of-a-kind Review & Rating platform for Real Estate industry. We have largest number of registered societies, agents and builders with genuine customers reviews that help in enhancing visibility and brand value.

We envision to become Indias leading Review & Rating portal for real estate sector and transform it to make it transparent and digital.

We encourage societies, agents and builders to capitalize on the review economy and gain from the ratings to build their value and brand.

• Area Online:

Indian retail industry is under transition today, bringing a lot of transformations from static to digital retailing business. The shoppers enjoy the privilege of Digital shopping of the goods and services required by them in a variety of formats to meet their expectations.

Ecommerce business model generally consists of eight key components i.e. value proposition, market opportunity, revenue model, competitive environment, competitive advantage, market strategy, organizational development, and management team.

Area Online targets the middle class & upper class people who have hands on experience in technology but dont have much time to do shopping from the physical outlets. Taking this into consideration Area Online has successfully positioned itself as a Glocal (Go global Act local) e-commerce giant where one can sell anything & get it delivered at any remote locations.

• My Notification:

Install, customize, and make it your own.

From collecting data to converting information into insights, My Notification does it all. Automating your processes, giving your colleagues the access, they need, visualizing information through reports, and doing it all from anywhere.

With this app, you can:

• Connect lenders and borrowers.

• Set return reminders.

• Instantly approve or reject requests.

• See it all on detailed dashboards.

• Collect product feedback.

• Virtual Exhibition:

A Virtual Event is a gathering of people sharing a common virtual environment on the web, rather than meeting in a physical location. Virtual Event provides a rich source of marketing data as every activity of a participant at Virtual Event can be tracked and evaluated. It helps create a virtual engagement index, which is a variable to measure interaction quantity and quality of participants.

Using the versatility and scope of the online space to host a Digital Exhibition Fair, which allows exhibitors to fully view their items in rich content formats and allows visitors to access and explore these offers in the comfort of their homes.

A world class web-based platform ensures you get to display all your products virtually as well speak to your customers as part of the conference sessions and through one-to-one audio/video calls. You also get the functionality to disseminate white papers, case studies, PPTs, brochures and any other informative material that you would normally share with your customers. So, sitting from the comfort of your office or even home, you get to reach out to your target audience seamlessly through your mobile device

• Media Marketing:

• Website Development

• E-Commerce Development

• Mobile App Development

• ERP Software Development

• Digital Marketing

• Graphics Designing

• Annual Report:

Annual Report Designing Is Our Core Specialization.

Our experienced team has worked with the top annual report agencies in India and is well versed with the statutory importance of this document. We understand the communication treatment and possess the expertise of providing you fresh and solid approach for an effective impact on the stakeholder community.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place adequate system of internal control. It has documented procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or losses, compliances with regulations and for ensuring reliability of financial reporting. The Company has continued its efforts to align all its processes and controls with global best practices in these areas as well.

HUMAN RESOURCES & INDUSTRIAL RELATIONS:

The Companys Human Resources philosophy is to establish and build a strong performance and competency driven culture with greater sense of accountability and responsibility. The Company has taken pragmatic steps for strengthening organizational competency through involvement and development of employees as well as installing effective systems for improving the productivity, equality and accountability at functional levels. With the changing and turbulent business scenario, the Companys basic focus is to upgrade the skill and knowledge level of the existing human assets to the required level by providing appropriate leadership at all levels motivating them to face the hard facts of business, inculcating the attitude for speed of action and taking responsibilities. In order to keep the employees skill, knowledge and business facilities updated, ongoing in house and external training is provided to the employees at all levels. The effort to rationalize and streamline the workforce is a continuous process. The industrial relations scenario remained harmonious throughout the year.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Company has recorded total revenue of Rs. 282.1044 Lakhs against Rs. 720.7898 Lakhs in the previous year. Loss Incurred for the Current Financial Year is Rs. (188.7273) Lakhs as compared to Rs. (90.3974) Lakhs in the previous year.

EARNINGS PER SHARE (EPS):

The Company recorded an EPS of Rs. 5.39 (negative) in Financial Year 2019-20 as compared to Rs. 2.58 (negative) in Financial Year 2018-19.

DIVIDEND:

Since there is loss during the year, No Dividend has been declared.

RISKS AND CONCERNS:

It is essential to correctly assess the risk in each segment so that the risk is mitigated before it becomes a possible threat. General risk segments are statutory compliances, economy, financials, Government policies, market related, operational, products and technology etc., The management has a rapid review of likely risk areas with the objective to define a framework for identification, evaluation and mitigating the risk in the decision making process and to encourage proactive management and not reactive management.

CAUTIONARY STATEMENT:

Statements in the Management Discussion & Analysis, describing the Companys objectives, projections and estimates are forward looking statement and progressive within the meaning of applicable laws & regulations. Actual result may vary from those expressed or implied. Important developments that could affect the Companys operations are significant changes in political and economic environment in India, tax laws, exchange rate fluctuation and related factors.