Kaycee Industries Ltd Management Discussions

Kaycee Industries Limited is a pioneer in the field of engineering offering high quality products and services to its clients in India. The Company started manufacturing operation in the year 1942 and developed a steady market for its products The Company now manufactures high-end electrical equipment, indigenously designed through extensive research and development in the vital fields, offering them across the country to its clients. The products are:

• Rotary Switch

• Limit Switches

• Toggle Switches

• Cam

• Rotary Toggle Switches

• Timer

• Universal Counter

• RB & Lamp

• Digi count

• Digital Time Totalizer

• Relays

• Submirsible Cables

• Earthing Devices

By adopting continuous R & D efforts, it has been possible to update the existing products and processes, improve customer satisfaction, quality and performance of the products, making more cost effective products and upgrading products to the latest relevant standards, right balance of In-house manufactunng 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. Product efficiency: The Companys products act to enhance its customer price-value proposition.

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 and 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.

OPPORTUNITIES AND THREATS

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 82 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 throught to be helpful in this area is expansion of distribution network this is being implemented. Barring unforeseen circumstances, the Company expects to increase its volume of business in the current year.

OUTLOOK

Electrical equipment/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 assist our company to be in demand.

RISK MANAGEMENT

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. Ail fixed assets are covered by insurance policy and its renewals are made in time.

We are committed to providing the highest degree of protection and safety to all our employees, especially at the factories. Regular machinery inspections are important to ensure that the functionality of the machinery is up to date and does not impose any potential hazards that could cause accidents at the workplace Periodic maintenance checks to the equipment are conducted to assure that they meet acceptable standard & safety requirements.

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.

Internal Control Systems.

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 ol 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.

FINANCIAL PERFORMANCE AND OPERATIONAL EFFICIENCY

• The Company has achieved a turnover of Rs.48.81 Crores for the FY ended 31 st March 2024 and there was a rise of Rs.7.03 crores when comparing with FY 2022-23.

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

• The companys Earnings per share (EPS) registered a significant growth from Rs. 550 56/ share (FY22-23) to Rs. 708.14/share during financial year FY 2023-24.

• Borrowings was Nil as of 31 st of March 2024 Human Resources Development

The Company maintains a cordial relationship with its employees at all levels. Human resources are considered the most important and valuable asset of the Company. Continuous commitment to upgrading skills is an integral part of the human resource development Policy of Company The focus has always been towards creating a rewarding and nurturing environment for employees. The Company is an equal opportunity employer and promotes diversity in its workforce. Equal opportunities are given to optimize their potential and improve their standard of living.

The Management continues to pay special attention to various aspects of human resources arrangement like training, welfare and safety and thereby further strengthen its human resources. To face the challenging business environment, the Company continues to build the capability of its human resources through various initiatives in development and training of employees at all levels

Various internal as well as external development programs were organized in the year to develop and motivate the employees, Relations with the employees remained cordial throughout the year. Jobs at all levels in the Company are designed organized and managed effectively by interaction between the management and employees. The Company had a total manpower of 66 as on March 31.2024.

Cautionary Statement.

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.