JIK Industries Ltd Management Discussions

(As per Schedule V (B) of SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015)

INDUSTRY STRUCTURE AND DEVELOPMENTS

Your Company is presently focusing on General trading & service activities and intends to explore new businesses. The Company is facing several challenges to run and manage the business operation of the Company.

OPPORTUNITIES AND THREATS

Your Company is exploring opportunities to venture into new businesses with a view to augment its revenues so as to combat the threat posed by financial constraints faced by the Company.

FUTURE OUTLOOK

Your Company is also exploring new potential business opportunities.

RISK AND CONCERNS

Your Company has been dealing with the business risks such as Competition, Attrition, etc. for decades and has developed risk mitigation systems to address these issues. Moreover, the legal issues faced by the Company have placed considerable strain on the Company resources. However, the Company expects to come out in a better position over a period. The management is diligently putting its efforts towards mitigating the risks arising from the issues.

Transaction Risk: Uninterrupted cash flow is a major concern for every business to meet the development and the operational expenses. The Company shall mitigate the risk by diversifying the business.

Competitor Risk: The Company faces challenges from competitors. The Company has been taking necessary steps to moderate the challenges.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has in place an adequate internal financial control system, commensurate with the size and complexity of its operations. Necessary checks and controls are in place to detect and prevent errors and frauds and that the transactions are properly verified, adequately authorized, correctly recorded and properly reported. The Internal Auditors of the Company conduct audit to ensure that internal controls are in place and submit reports to the Audit Committee. The Audit Committee reviews these reports and the Company when needed takes corrective actions. The Internal Auditors also audit the effectiveness of the Companys internal financial control system.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company is in the business of providing General Trading & Services. However, there is increase in service revenue from 33.88 lakhs to Rs. 39.72 lakhs.

FINANCIAL RESULTS

The key financial highlights of the Company for the financial year ended March 31, 2024, are given below:

FINANCIAL RATIOS:

The Key Financial Ratios of the Company for the Financial Year ended March 31, 2024, are given below:

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS YEAR:

Return on Net Worth on a Standalone basis stands at 0.12% for the Financial Year 2023-24 as compared to (0.01%) in the Financial Year 2022-23.

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

Your Company treats its Human Resources as its important assets and believes in its contribution to the all-round growth of the Company. The Company takes steps from time to time to upgrade and enhance the quality of this asset and strives to maintain it in agile and responsive form. The Company is an equal opportunity employer and practices fair employment policies. The Company is confident that its Human Capital will effectively contribute to the long-term value enhancement of the Organization. The Company has complied with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

During the year under review, the relationship between the management and the employees continued to be cordial. The companys Directors wish to place their sincere appreciation for the devoted services of all employees and workers of the Company on record.

DISCLOSURE OF ACCOUNTING TREATMENT:

In the preparation of the financial statements, the Company has followed the Accounting Standards (IND AS) referred to in Section 133 of the Companies Act, 2013. The Significant accounting policies which are consistently applied are set out in the Notes to the Financial Statements.

As on end of the financial year the company does not have any subsidiary or wholly owned subsidiary Company, or associate Companies. Hence, the Company has not prepared consolidated financial statements for the year under review.

CAUTION STATEMENT:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations are forward-looking statements. Actual results may differ substantially or materially from those expressed or implied.