kama holdings ltd Management discussions

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year the Company had earned total income by way of dividend, sale of Investment and interest income aggregating to Rs. 25,471.04 lakhs. Net profit

Rs. 24,845.82 lakhs as compared to Rs. 10,493.61 lakhs in the previous year. The share capital of the company as on 31^st March, 2023 stood at Rs. 641.81 lakhs and Reserves and Surplus at Rs. 65,099.41 lakhs (including capital reserve of Rs. 20,345.06 lakhs). As on March 31, 2023, the return on net worth of the Company was 56.34% vis-?-vis 27.12% in FY22, change due to increase in dividend income and profit on sale of Investment.

The percentage change in the current ratio as on 31st March 2023 as compared to previous year was 61.05% due to amount of dividend payable. further, increase in Interest Coverage ratio was 2790.67% due to increase in revenue and decrease in interest expenses.

There were no other significant ratios as prescribed in the Listing Regulations.

OUTLOOK Major Activities

The Company is a Core Investment Company (CIC) within the meaning of Core Investment Companies (Reserve Bank) Directions, 2016 which does not require registration with Reserve Bank of India under the said Directions.

SRF Limited is a subsidiary of the Company which is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. It is widely recognized and well respected for its R&D capabilities globally, especially in the niche domain of chemicals. SRF Limited is a market leader in most of its business segments in India and commands a significant global presence in most of its businesses. It has operations in four countries namely, India, Thailand, South Africa and Hungary also and commercial interests in more than ninety countries. SRF Limited classifiesits main businesses as

Technical Textiles Business (TTB), Chemicals Business (CB), Packaging Films Business (PFB) and Other Business (OB). During the year, the company has sold 6,00,000 Equity shares of SRF Limited (subsidiary company) in open market. As a result the percentage of holding of the Company in SRF Limited decreased from 50.69% to 50.48%.

The Company has five wholly owned subsidiaries viz. KAMA

Realty (Delhi) Ltd. which is a company engaged in the business of acquisition and renting of properties. Shri Educare

Ltd. which is engaged in the field of education, Shri Educare

Maldives Pvt. Ltd. (a Wholly owned subsidiary of Shri Educare Ltd.) having a public private partnership with Government of Maldives for management of a Government School. SRF Transnational Holdings Ltd., a registered non-deposit taking NBFC engaged in the business of investment in shares and other securities and KAMA Real Estate Holdings LLP, a limited liability partnership between KAMA Realty (Delhi) Ltd. and Shri Educare Ltd.

The Company would continue to consolidate its stake in SRF and the aforesaid subsidiaries.

Future Prospects for the year amounted to

SRF Ltd. and its subsidiaries

The business prospects of SRF Ltd. and its subsidiaries has been discussed in the Management Discussion and Analysis forming part of the Directors Report of that company in the Annual Report for 2022-23 which is available on its website www.srf.com.

Other subsidiaries Shri Educare Ltd. (SEL)

During the year, SEL added 2 (Two) K-12 schools, One in Bangalore, and One in Kolkata and 1 (One) Pre-School Chain change in the key financial in Delhi NCR region to the portfolio of schools being managed by SEL. Going forward, SEL plans to continue to expand in the school consultancy vertical, where the demand for quality schools, both in India and abroad, continues to be high. SEL plans to leverage this demand and plan to increase the number of schools under consultancy by at least 3 (Three) K-12 Schools and 2 (Two) Pre-school in 2023-24. During the year 2022-23, SEL has earned a revenue of Rs. 2,121.40 Lakhs (Prev. Year Rs. 1,362.31 lakhs) mainly on account of project management fees and student fees and a

Profit after tax of Rs. 365.87 lakhs (Prev Year Loss after tax of Rs. 99.69 Lakhs) (including Deferred Tax and MAT Credit).

Shri Educare Maldives Pvt. Ltd. (SEMPL)

SEMPL has been managing a school under a public-private partnership with Maldives Government. This school is now a financially self-sufficient school and this has been possible because the school has managed to establish itself as one of the best school in Maldives. During 2022-23, SEMPL earned a revenue of MVR 500.74 Lakhs (INR Rs. 2,527.66 Lakhs) (Prev Year MVR 448.55 Lakhs (INR Rs. 2,128.64 Lakhs)) mainly on account of tuition fees and made a Profit after tax of MVR 2.54 Lakhs (INR Rs. 12.85 Lakhs) (Prev Year Profit after tax of MVR 1.36 Lakhs

(INR Rs. 6.45 Lakhs)).

KAMA Realty (Delhi) Ltd. (KRDL)

KRDL is a company engaged in acquisition and rental of properties. During 2022-23, KRDL has earned a revenue and other Income of Rs.846.45 lakhs (PY Rs. 812.41 lakhs) mainly on account of rental and interest income and profit after tax of

Rs. 605.73 lakhs (PY Rs. 541.36 lakhs).

SRF Transnational Holdings Ltd. (SRFT)

SRFT is a registered non deposit taking NBFC engaged in the business of investment in shares and securities. During 2022-23, SRFT has earned a revenue and other Income of Rs. 1,887.48 lakhs (PY Rs. 436.53 lakhs) mainly on account of interest income and profit on sale of investments and profit after tax of Rs.1,231.49 lakhs (PY Rs. (60.82) lakhs).

KAMA Real Estate Holdings LLP (KREHL)

KREHL is a limited liability partnership between KAMA Realty (Delhi) Ltd. and Shri Educare Ltd. It is engaged primarily in acquisition and rental of properties. During 2022-23, KREHL has earned a revenue of Rs. 193.37 lakhs (Previous year Rs. 149.59 lakhs) mainly on account of dividend and interest income and profit on sale of property and incurred loss of Rs

81.29 lakhs (PY loss of Rs. 197.99 lakhs).

OPPORTUNITIES AND THREATS

The Company holds significant

Ltd. The value of these investments is dependent on the performance of the investee company.

RISKS AND CONCERNS

The Company is mainly exposed to the risk of reduction in value of investments in shares of SRF Ltd. due to fall in the share price and Investee Companys performance.

HUMAN RESOURCES

Employee relations continued to remain cordial during the year under review. As on March 31, 2023, there were 3 employees, one of whom is a Key Managerial Personnel of the Company.

ADEQUACY OF INTERNAL CONTROL SYSTEM

Your Companys internal control systems and procedures are commensurate with the size of operations and adequate enough to meet the objectives of efficient use and safeguarding of assets, compliance with statutes, policies and procedures and proper recording of transactions.

CAUTIONARY STATEMENT

The Statement in this Management Discussion and Analysis Report describing the Companys outlook, projections, investmentin sharesofSRF estimates, expectations or predictions may be "Forward looking

Statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied.