Kemp & Co Ltd Management Discussions

OVERALL PERFORMANCE AND OUTLOOK

During the financial year ended 31^st March, 2021, revenue from operations was Rs.23,288 thousand as against Rs.30,720 thousand during previous year, registering a decline of 24.19%. Profit before tax was at Rs.(6,803) thousand as against Rs.8,791 thousand in the previous year.

Profit after tax for the year under review was at Rs.(6,201) thousand against Rs.10,543 thousand in the previous year. The Company is exploring various options to improve performance in the coming year.

RESERVES & DIVIDEND

During the year under review, as well as the previous year, the Company has not transferred any amount to the General Reserves. As on 31^st March, 2021, Reserves and Surplus of the Company were at Rs.1,415,849 thousand. An amount of Rs.(6,201) thousand is proposed to be reduced as loss in the statement of profit and loss.

Due to losses incurred by the Company, the Board of Directors of the Company has not recommended any Dividend for the current financial year (previous year the Company has paid Dividend of Rs.0.50 paisa per share).

Your Companys business operations includes dealing in real estate, investments and trading in hard & soft luggage. Covid-19 is the largest threat to the all the industries across the globe including the Company. Your Company has assessed the possible effects that may result from the COVID-19 pandemic on the carrying amounts of receivables, unbilled revenues, intangibles, investments and other assets / liabilities. Considering the threats, opportunities and the strengths of your Company, the key task at hand is to survive Covid-19 to the best possible degree.

Your Company has undertaken necessary cost cutting measures in order to ensure the Companys financial positions remains stable and secure.

Your Company has appointed M/s. Suresh Surana & Associates as Internal Auditors of your Company to ensure adequacy of internal controls. The internal audit function maintains internal controls to safeguard your Companys assets against losses, provides a high degree of assurance regarding the effectiveness and efficiency of operations, assesses the reliability of financial controls and compliance with laws and regulations.

The Internal Auditors submit their reports to the Audit Committee on quarterly basis.

All significant changes, if any, in the accounting policies during the year, have been disclosed in the notes to the financial statement.

The Revenue from Operations of your Company for the year ended 31^st March, 2021 was at Rs.23,288 thousand (Previous Year Rs.30,720 thousand), a de-growth of around 24.19%. Profit after Tax for the year under review amounted to Rs.(6,201) thousand (Previous Year Rs 10,543 thousand).

During the year under review, Human Resources department of your Company focused on effective execution of plans through qualified workforce. Through a structured recruitment and training process your Company identified the need of training and trained the workforce to improve capabilities. A structured recruitment process has helped your Company attract the right talent at all levels. The employee strength as on 31^st March, 2021, was 4 (Four).

INTERNAL FINANCIAL CONTROL

Your Company has put in place adequate internal financial controls with reference to the financial statements. The Board has adopted the policies and procedures for ensuring the orderly and efficient conduct of its business including adherence to the Companys policies, the safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial disclosures. During the year, such controls were tested and no reportable material weaknesses in design or operation were observed.

VIGIL MECHANISM

Your Company has established a Vigil Mechanism Policy for your Directors, employees and stakeholders to safeguard against victimization of persons who use vigil mechanism and report genuine concerns. The Audit Committee oversees the vigil mechanism complaints. The Vigil Mechanism Policy of the Company has been displayed on the Companys website i.e. www.kempnco.com.

PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE

In terms of provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013, your Company has formulated a Policy to prevent Sexual Harassment of Women at workplace and constituted Internal Complaints Committees (ICC). During the year, no cases alleging sexual harassment of Women at workplace has been received by ICC.