Kiduja India Ltd Management Discussions

Company Information

Kiduja India Limited ("the Company") is a Non-Banking Finance Company "NBFC" registered with the Reserve Bank of India as a Non-systematically Important, Non-deposit taking NBFC, classified as Investment Credit Company, under Base Layer.

Opportunities and Threats

Since, the Company is solely dependent on investment, market shift in global market due to war situations and global economic crisis has created threats to the Company. The Company has taken borrowings from the market and other group companies for the revival of the Company. As on 31^st March 2023 the outstanding borrowings including interest are 7,76,734 thousand. However, with the support of the Mr. Ashish D. Jaipuria, Chairman and Managing Director of the Company also the promoter of the Company, it is expected to repay the loan on time and reduce financial risks.

Segment Wise Performance

The Companys business activity falls within a single business segment i.e. Investment and dealing in Shares and Securities. More detailed information on the business and financial performance of the Company is covered in the Boards Report which is a part of this integrated annual report.

Risk and Concerns

The Company is exposed to specific risks which are peculiar to its business and the environment within which it operates including economic cycle, market risk and credit risks. Managing risk effectively also helps in achieving the desired outcome, while fixing responsibility and accountability. The Company especially focuses on improving sensitivity to assessment of risks and improving methods of computation of risk weights and capital charges. The risk assessment and mitigation procedure are reviewed by the Board periodically.

Internal Control System and their Adequacy

The Company has an effective internal control system, commensurate with its size and nature to ensure smooth business operations, in order to provide reasonable assurance that all assets are safeguarded and protected from any kind of loss or misuse, transactions are authorized, recorded, and reported properly and that all applicable statutes and corporate policies are duly complied with.

Discussion on Financial Performance with respect to Operational Performance

Total Loss after Tax for the financial year ended on 31^st March 2023 stood at Rs. 66,088.85 thousand as against Rs. 45,090.98 thousand for the financial year ended on 31^st March 2022.

Human Resources

The Company believes that employees are key to achieve the Companys objectives and strategies. The Company provides to its employees a fair and equitable work environment and support from their peers with a view to develop their capabilities leaving them with the freedom to act and to take responsibilities for the task assigned. They provide employees outstanding career development opportunities and reward to the staff for their good performance and loyalty to the organization.

Industrial Relations front, including number of people employed

As on 31^st March 2023, the permanent employees of the Company were only 8 persons, since ours is a Small Company, we face no issues on the Industrial Relations front. The Company believes that it has good and healthy relations amongst its employees.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios:

• Debtors Turnover - N.A.

• Inventory Turnover - N.A.

• Interest Coverage Ratio - N.A.

• Current Ratio - N.A.

• Debt Equity Ratio - N.A.

• Operating Profit Margin (%) - N.A.

• Net Profit Margin (%) - N.A.

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

During the year under review the net worth of your Company was negative and as such it is not possible to compute the Return on Net Worth. However, for FY 2022-23 your Company has incurred a loss of Rs.66,088.85 thousand and for the preceding year FY 2021-22 had incurred a loss of Rs.45,090.98 thousand.

Cautionary Statement

Statement in Management Discussion and Analysis may be forward looking within the meaning of applicable securities laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. The Company assumes no responsibilities in respect of the forward-looking statements herein, which may undergo changes in future on the basis of subsequent developments, information, or events.