Kaycee Industries Ltd Management Discussions

By adopting continuous R & D efforts, it has been possible to update the existing products and processes, improve customer satisfaction, improve quality and performance of the products, making more cost effective products and upgrading products to the latest relevant standards, right balance of In-house manufacturing and outsourced manufacturing, increasing strategic flexibility, cost management and asset- lightness.

The Company increased its investment in process automation, helping to optimize costs, strengthen efficiency and enhance transparency.

Kaycee Industries Limiteds products are specially designed and developed using the indigenous state of the art, technology and have high reliability and long life. Continual improvements are being done based on current technology and customer feedback. Its design and development centre is well equipped with relevant updated software, qualified engineers all geared to the latest national and international standards. The company is associated with its holding company into the area of making new products relevant to the present market.

The Company has taken several vital steps to remain competitive and to ensure survival by reducing cost by streamlining the overall operations process. Despite severe competition and reduced demand, optimism about the mid and long term growth prospects remain and will continue to remain in the coming years which optimizing is based on its current performances.

Recent government measures aimed at structural reforms in the Indian economy are in the right direction that move towards an area of economic development and growth. Considering the 83 years presence and experience in the Company in electrical sector, a huge business potential is anticipated. The Company has a strong, well established distribution network. The Company has a wide range of products in electrical categories with on-going efforts to add new product variants. The Company is deepening

penetration into market for its products and continuing focus on products expansion targeting a very good and substantial business in the future. One of the measures thought to be helpful in this area is expansion of distribution network is being implemented. Barring unforeseen circumstances, the Company expects to increase its volume of business in the current year and years that follow.

Electrical equipments/products manufacturing is a very important sector for a developing country like India. The demand for electrical products is expected to grow progressively. Keeping in view the above, the long term outlook for the sector appears bright. There is an ample scope and opportunity for companies having business in this sector.

The philosophies of Atmanirbhar Bharat and Make in India initiative will certainly help our company to be in demand.

Risk Management is an integral function of the overall management and is embedded across all of the business processes undertaken by the Company. Your Company believes it is essential to identify and manage risks to reduce uncertainties and to ensure continuity of operations. To manage risks, the Companys Management team continuously assesses and monitors business practices, current developments, etc. ensuring a smooth flow of operations adhering to stringent guidelines. The Company has a risk management framework in place, with processes to strategize, monitor, identify, assess and mitigate risks that could impact sustainability of business operations. All fixed assets are covered by the insurance policy and its renewals are made in time.

We remain committed to providing the highest level of protection and safety to all our employees, particularly within our factories. To this end, we perform regular machinery inspections to ensure that each asset is operating correctly and free of potential hazards. In addition, periodic maintenance checks are carried out on all equipment to confirm compliance with established safety standards and to prevent workplace accidents.

The Company also actively manages and controls risks arising from credit, raw material price fluctuation, besides the financial risks which include liquidity management and close monitoring of interest costs.

The Company and its Management have adequate internal control systems in place to safeguard and shield the Company from losses and in ensuring proper utilization of its assets. This also ensures that the Companys assets and interests are carefully protected, and all the transactions are appropriately authorized, recorded and presented to the top management. The Company always adheres to prescribed guidelines and follows all Accounting Standards prescribed for maintenance of books of accounts and reporting of financial statements. The appointed independent internal auditors monitor and report on the effectiveness of the internal control systems of the various areas of operations, there is a free exchange between the auditors and the audit committee that ensure responsible and transparent operations. The Internal Control systems ensure the business functions efficiently and the applicable laws, rules, regulations, policies of the Company are followed, in addition to ensuring the reliability of financial reporting.

• The Company has achieved a turnover of Rs.53.21 Crores for the FY ended 31st March, 2025 and there was a rise of Rs.4.40 crores when comparing with FY 2023-24.

• The Company has achieved the highest turnover and the highest profits in a decade.

• The companys Earnings per share (EPS) during financial year FY 2024-25 was at Rs.18.18/ share.

• Borrowings was Nil as of 31st of March 2025

• The changes in Key financial ratios are disclosed in Note No. 47 of Standalone Financial Statements. Human Resources Development

The Company fosters and values a cordial relationship with employees at every level, recognizing human resources as its most valuable asset. Our Human Resource Development Policy emphasizes continuous skills enhancement, enabling a rewarding and supportive work environment. As an equal opportunity employer, we actively promote diversity and ensure all individuals have access to opportunities that optimize their potential and improve their standard of living.

Management remains deeply engaged in key HR initiatives—training, welfare, and workplace safety— to strengthen workforce and equip it for an evolving business landscape. During the year, a range of internal and external development programs were conducted to motivate and upskill employees across functions. Through ongoing dialogue between management and staff, roles at all levels are effectively designed and managed, contributing to consistently cordial industrial relations. As of March 31, 2025, the Companys manpower stood at 81.

The Financial Statements that are attached to this report are in conformity with the accounting principles generally accepted in India. Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimation and expectations may somewhat be forward looking within the meaning of applicable law and regulations. Management has based these forward- looking statements on its current expectations and projections about future events. Such statements involve known and unknown risks, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, interest and other costs and may cause actual results to differ materially.