Innokaiz India Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian media industry has benefited from some fundamental growth drivers and has emerged as a growth engine for discretionary consumption products and services, especially media. With the evolution of the media industry, growth is increasingly being driven by increased consumer spending which has a large impact on revenue streams. The growth has been evident in varying proportions across the different segments of the Media Industry i.e. Television, Newspapers, Magazines, Print and Internet (Digital) being the major media in terms of size and growth rates apart from other segments such as radio, out of home, mobile. Your Company has set up adequate infrastructure along with a team of professionals for carrying on the business of the company efficiently.

Company Overview

We are a corporate services and solutions provider Company. We have emerged as are a one stop solution provider for various corporate needs. We offer a comprehensive range of services covering Advertising and Marketing Solutions including Digital Marketing, Corporate Travel Arrangements, Gifting Solutions, Event Management etc. Recently, we have also ventured into new business vertical i.e., E-Commerce Business. Our team of experienced and dedicated professionals provide services and solutions that are at the forefront of industry best practice. We thrive to provide the highest level of services on every assignment and to provide best-in-class and cost-effective services and solutions to our clients. Our Company is promoted by Mr. Sukumar Balakrishnan, who is the guiding force behind all the strategic decisions of our Company and has been an anchor to our company since incorporation. He has a vast corporate and entrepreneurial experience and the frontline force behind the company. In addition to our individual Promoter, our senior management team includes qualified, experienced and skilled professionals who have experience across various sectors. We believe that the stability of our management team and the industry experience of our individual Promoter will enable us to continue to take advantage of future market opportunities and expand into newer markets.

Our Vision

Our vision is to get recognized nationally as the most innovative, dedicated, and productive marketing communications brand in India. Our vision is also to provide a level of excellence to our clients that surpasses their highest expectations.

Our Mission

Our aim is to provide best-in-class marketing communications counsel and services to our clients. At the same time, we intend to create an organization that will be able to attract and retain exceptionally talented individuals and working together to become one stop solution for various corporate needs.

Our revenue model is summarized as below:

1. ADVERTISING AND MARKETING SERVICES: We carefully analyze all the best digital channels for your business and include it in our digital marketing strategy. We combine exceptionally innovative ideas and powerful technologies to reach maximum viewers. We engage with your customers and create sustainable relationship with them that will improve brand loyalty. Every engagement is unique & every digital channel is different. We provide the services at outdoor Bus Shelters, Arch, Police Booth, General Booth, Pole Kiosk, Signal Post, Temp Hoarding, Sun Pack flute Board, Backdrop, Banners, Road show, Mobile Van, Etc. In signage we provide Backlit Board, Nonlit Board, ACP Pylon, Acrylic Boards, Cutout, Standee, Etc. For a Digital Marketing Campaign to be successful, different channels that reaches your customers has to be employed. We at Innokaiz carefully analyze all the best digital channels for the businesses and include it in our digital marketing strategy. Our strategy is simple - identify your potential customers online and turn them into your customers and eventually brand advocates.

2. Event Management: We are into the business of organising and managing all the requirements for Corporate Events including Meetings, Incentive Programs and Conferences, Exhibitions (MICE). We 30 handle the Corporate Events with flawless perfection. Events are critical part of every corporate marketing and branding plans. We have expertise in changing any idea into an event. Our team handles event execution in accordance with the budget of the client and expectations without any scope of error right from travelling arrangement to providing gifts etc. Driven by our core values, our hands-on knowledge of every aspect of MICE, we constantly strive to ‘Add Value to events of our clients. We are engaged in MICE programs with an unblemished track record of almost 2000 events of various magnitudes already under our belt. We arrange events for the Banking, Insurance, Asset Management Companies, etc. Our team understands that a properly executed event can be leveraged to support clients strategic vision or used to build networks and loyalty.

3. Corporate Gifts: Corporates have relied on the power of gifting to secure better relationships with potential and existing clients and employees. When used as part of overall marketing or employee retention efforts, gifting can be highly effective. One of the best ways to encourage employee engagement and loyalty is through employee gifting and rewards and recognition. HR policies are often directed towards appreciating talent in way of celebratory gifting during festive times or through performance awards with the intention to strengthening the relationships. We have an expertise in providing gifting solutions suitable for all kind of corporate needs. Innokaiz is a one stop solution for entire gifting solutions of corporates with impressive and unique and collection and innovative ideas. We also provide customised solutions suitable to all occasions including personalization and providing logo printing as per designs. It is the perfect way to welcome, thank clients employees and business associates and promote business of our clients.

4. E – Commerce: Ecommerce web development has turned out to be a necessity and is not just used for driving greater amount of traffic. Over the years, Innokaiz has gathered the experience to work on all online business requirements. We are one of the pioneered companies offering effective and effectual e-commerce solutions. Having great appreciation for web development and designing our talented and skilled experts update themselves from time to time with the latest trends and technologies. Our experts create customized e-commerce website for the promotion of your brand. We make sure that your business is able to gather traffic and retain them.

Opportunities and Threat

The advertising and media industry is currently witnessing several growth opportunities driven by digital transformation and evolving consumer preferences. The widespread penetration of the internet and smartphones, along with the exponential rise of social media platforms like Instagram, YouTube, and LinkedIn, has opened vast spaces for innovative and targeted advertising. With the booming influencer and content marketing landscape, agencies now have the opportunity to collaborate with creators across various niches, thereby enhancing brand engagement and reach. Additionally, the growing importance of data-driven marketing and integration of artificial intelligence allows agencies to deliver hyper-personalized campaigns based on consumer behaviour analytics. There is also significant potential in tapping into Tier 2 and Tier 3 markets, which remain largely underutilized yet show rising purchasing power. The rapid growth of e-commerce and direct-to-consumer (D2C) brands has further created a demand for strategic marketing and digital presence, leading these businesses to seek professional advertising support. Moreover, agencies can expand their service offerings into adjacent verticals such as experiential marketing, events, and OTT promotions. Global outsourcing trends are also favourable, with international brands looking to leverage Indian agencies for their cost-effective yet high-quality creative services. Furthermore, the rising demand for branded content and storytelling across web series, short films, and podcasts offers a promising avenue for content-focused media agencies.

However, despite these opportunities, advertising and media agencies face several threats. The market is highly competitive and saturated, especially with the presence of numerous small and mid-sized firms leading to aggressive pricing strategies and client churn. Changing consumer behaviour also poses a challenge, as users increasingly use ad-blockers or skip advertisements, making it harder to capture their attention through traditional means. The pace of technological evolution is rapid, requiring constant upskilling and adaptation to trends like augmented reality (AR), virtual reality (VR), and programmatic advertising. A growing number of large companies are also internalizing their marketing functions, thereby reducing reliance on external agencies. Additionally, the industry is facing increased regulatory scrutiny concerning data privacy, advertising ethics, and content targeting—especially with laws like the GDPR and Indias Personal Data Protection Bill. Economic slowdowns tend to affect marketing budgets significantly, with companies often slashing advertising spends during downturns. Talent management is another critical issue, as high attrition, burnout, and limited creative freedom can hamper agency performance. Lastly, the shift from long-term retainers to short-term, project-based engagements makes revenue forecasting difficult and affects financial stability.

Segment-wise or product-wise performance A. Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the Company has only one reportable Business Segment, which is engaged incomprehensive range of services covering Advertising and Marketing Solutions including Digital Marketing, Corporate Travel Arrangements, Gifting Solutions, Event Management etc. Accordingly, the figures appearing in these financial statements relate to the Companys single Business Segment.

B. Geographical Segments:

The Company activities / operations are confined to India and as such there is only one geographical segment. Accordingly, the figures appearing in these financial statements relate to the Companys single geographical segment. Please Refer to Annexure to Note: 1.13 of the Financial Statement for 31.03.2025.

Outlook

The advertising industry is poised for sustained growth through the coming years, fuelled by continuous technological advancements and shifting consumer behaviours. With the integration of data analytics, artificial intelligence (AI), and programmatic advertising, brands can achieve unparalleled precision in targeting, optimize campaigns more effectively, and deliver personalized content in real-time, driving greater engagement and impact. Indias ongoing investments in infrastructure and urban development are set to expand advertising opportunities even further. As new projects come online, they will generate increased inventory for advertising spaces and grant access to a wider range of consumer demographics. These developments provide a unique platform for advertisers to craft powerful campaigns that resonate across diverse segments of the population. In this evolving landscape, media agencies will be pivotal in helping brands navigate the complexities of the Indian market. Armed with deep insights and expertise, these agencies will guide businesses to maximize their reach by tapping into emerging trends and utilizing innovative digital platforms. By embracing new advertising opportunities within infrastructure projects, brands can position themselves strategically in this rapidly growing industry.

Risks and Concerns

Risk is an inherent part of any business. There are various types of risks, which threat the existence of a company like Credit Risk, Market Risk, Operational Risk, Liquidity Risk, Interest Rate Risk, Strategic Risk, Regulation Risk etc. Your Company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off between risk & returns.

Internal Control System & Adequacy

Internal Control Systems has been designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordances with managements authorization and properly recorded and accounting records are adequate for preparation of financial statements and other financial information. Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems. Our comprehensive review found that the companys internal controls are not only well-designed but also effectively implemented and diligently followed by the relevant personnel. This framework aligns seamlessly with the requirements set forth by the regulators, further reinforcing the companys adherence to sound corporate governance practices.

Discussion on Financial Performance with respect to Operational Performance Result of Operations:

During the financial year 2024-25 the total revenue has declined to Rs. 975.01/- Lakhs as compared to the previous year i.e. Rs. 7,828.49/- Lakhs. The Companys net profit/(Loss) before tax is Rs. (408.90)/- Lakhs as compared to Rs. 285.11/- Lakhs in the previous years. The Companies net profit/(loss) after tax for the current financial year is Rs. (407.44)/- Lakhs as compared to Rs. 210.24/- Lakhs to the previous year.

Human Resources

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature, and operations of the Company.

Details of significant changes in Key Financial Ratio

PARTCULARS	2025	2024	CHANGE MORE THAN 25%	Explanations for significant changes in the Ratios
Debtors Turnover (in times)	1.59	21.92	(92.75)	Debtor Turnover Ratio decreased by 92.75% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to decrease in Net Sales during the F.Y. 2024-25
Inventory Turnover (in times)	0.94	0.81	16.10	N.A
Interest Coverage Ratio (in times)	(8.53)	3.33	(356.04)	Interest Coverage Ratio decreased by 356.04% for the F.Y 2024-25 as compared to F.Y 2023-24 due to net loss during the year.
Current Ratio (Times)	2.18	2.89	24.56	N.A
Debt Equity Ratio (Times)	0.45	0.39	14.45	N.A
Operating Profit Margin (%)	(38.54)	5.57	(792.40)	Net Operating Profit Margin decreased by 792.40% for the F.Y 2024-25 as compared to F.Y 2023-24 due to net loss during the year.
Net Profit Ratio %	(41.79)	2.69	(1656.04)	Net Profit Ratio decreased by 1656.04% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to Net loss during the F.Y. 2024-25
Return on Net Worth (%)	(9.25)	4.39	(310.66)	Return on Networth is decreased by 310.66% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to Net loss after Tax during the F.Y. 2024-25

Notes: The details of financial ratio is disclosed in the notes to the financial statements of the company

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof –

Current year RONW is (9.25)% as compared to previous year 4.39%;. Return on Networth is decreased by 310.66% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to Net loss after Tax during the F.Y. 2024-25

Disclosure of Accounting Treatment

The financial statements of the Company have been prepared in accordance with the Accounting Standards comply with the Accounting Standards notified under Section 133 of the Companies Act, 2013 ("the 2013 Act") and the relevant provisions of the 2013 Act, as applicable. The financial statements have been prepared on going concern basis under the historical cost convention on accrual basis. The Company has follows to continue with the period of 1st day of April to 31st day of March, each year as its financial year for the purpose of preparation of financial statements under the provisions of Section 2(41) of the Companies Act, 2013.

OUR COMPETITIVE STRENGTHS:

Rich Management Experience

The promoters and management of the company is focused on providing risk-aware and risk free environment to all stakeholders of the company. The company is cautious to all types of risks such as credit risk, compliance risk, technological risk, human resource risk etc. In order to prevent such type of risk the company has a team comprising of personnel having operational experience and they are capable of creating and facing the challenges of growth within our Company. We believe that our management teams experience and their understanding of our industry and will enable us to continue to take advantage of both current and future market opportunities. Our Managements experience and knowledge enables us in addressing and mitigating various risks inherent in our business, including competition, the global economic crisis related effects and fluctuations in the prices.

Domain expertise and technical excellence:

Our Company have a dedicated work force, who are the strength and power of our organization. Our workforce is doing their individual bit in achieving our cumulative goals successfully.

Quality Service

We believe in providing quality and timely service to our customers. We have a set of standards for ourselves when it comes to timeliness and quality of service we provide to our customers. The stringent systems ensure that all the products reach our customers on stipulated time and there are minimum errors to ensure reduced product rejection. We believe that our quality service for the more than 10 years has earned us a goodwill from our customers, which has resulted in customer retention and order repetition. It has also helped us to add to our existing customer base. We have developed internal procedure of checking the client orders at each stage from customer order to closer of the service. Our company focuses on maintaining the level of consistently in our service, thereby building customer loyalty for our Brand.

Progressive Employer

We are continuously focused on creating an engaging atmosphere for our Employees to learn, contribute and grow. There is an active FUN team that creates opportunities for enjoyment even while working. We believe in timely compliance of all statutory payments especially related to employees. Our company ensures a safe environment, dignity and respect for all our employees irrespective of gender, religion, caste etc.

Quality Assurance and Standards

We are committed to designing process based on customer insights, team wisdom and continuous improvement. Additionally, there is an audit process to check for adherence to process. Last but not the least, the results are monitored to ensure that ROI is achieved both for external and internal Clients.

Disclaimer

Statements in the management discussion and analysis report describing the Companys outlook may differ from the actual situation. Important factors that would make a difference to the Companys operations include market factors, government regulations, and developments within the country and abroad. We are under no obligation to publicly amend, modify or revise any forward looking statement on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.

MANAGING DIRECTOR/C.E.O AND C.F.O CERTIFICATION

To

The Board of Directors

M/s. INNOKAIZ INDIA LIMITED

1. We have reviewed the financial statements and the cash flow statement of INNOKAIZ INDIA LIMITED for the Financial Year ended 31^st March, 2025 and to the best of our Knowledge and belief, We state that: a) These statements do not contain any materially untrue statements or omit any material facts or contain statements that might be misleading: b) These statements Present a true and fair view of the Companys affairs and are in compliance with current accounting standards, applicable laws and regulations.

2. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year, which are fraudulent, illegal or violation of the Companys Code of Conduct.

3. We accept responsibility for establishing and maintaining internal controls for financial reporting. We have evaluated the effectiveness of the internal control systems of the Company pertaining to the financial reporting and we have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and steps taken and/or proposed to be taken to rectify these deficiencies.

4. We have also indicated to the Auditors and the Audit Committee: i. Significant changes, if any, in the Internal Controls over financial reporting during the year.

ii. Significant changes, if any, in accounting policies made during the Year and that the same have been disclosed in the notes to the financial statements; and

iii. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Companys internal control system over financial reporting.

Balakrishnan Sukumarbalakrishnan	Balaraman Suganthi
Managing Director	Chief Financial Officer (CFO)
DIN: 06464374