Kore Digital Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT, OPPORTUNITIES AND THREATS

Kore Digital Limited, established in 2009 and specializes in telecommunication infrastructure development and related allied services. Licensed by the Department of Telecommunications (DoT) with the Infrastructure Provider (IP)-I License, the company offers high-end communication solutions to corporate entities and Telecom Network Operators in Maharashtra.

Kore Digital has commissioned over 600 pole-based cell sites across Mumbai and its surrounding regions, along with various RTT, GBT, and Microwave backhaul installations. Additionally, the company has developed, owns, and maintains an Optical Fiber Cable Infrastructure Backbone spanning more than 700 KM across Mumbai city and its surrounding districts of Maharashtra.

With a prestigious clientele including Vodafone Idea Ltd, Bharti Airtel Limited, Reliance Jio, and Tata Teleservices, Kore Digital continues to play a pivotal role in shaping the telecommunications landscape in the region.

Kore Digitals revenue is entirely derived from Maharashtra, reflecting its strong market presence and strategic focus on meeting the communication needs of the region

Kore Digital Limited (KDL) was set up with an object to provide high-end communication solutions to corporate and Telecom Network Operators. We are a growing passive telecommunication infrastructure provider in Maharashtra, engaged primarily in the business of installing and commissioning of Poles, Towers and Optical Fibre Cable ("OFC") Systems in Maharashtra. "Passive infrastructure" refers to the telecommunication towers for wireless Telecommunication services and "OFC" is used for the purpose of hosting and assisting in the operation of the active infrastructure used for transmitting telecommunications signals or transporting voice and data traffic. Being a passive communication infrastructure Company, we are focused towards providing passive communication infrastructure services mainly to the Telecom Network Operators, Broad Band Service Operators and Internet Service Providers ("ISPs") in Maharashtra, especially in locations in and around Mumbai.

Our company has been licensed by Department of Telecommunications (DoT) with the Infrastructure Provider (IP)-I License in the year 2009, under which we can establish and maintain assets Dark Fibres, right of way, duct space and tower for the purpose to grant on lease or rent or sale basis to the licensees of Telecom Network Operators, Broad Band Service Operators and ISPs. We also provided support services such as includes project management for laying of the duct and optic fibre cables, construction of basic transmission and telecom utilities, dark fiber leasing, optical fiber network construction, maintenance of duct and optic fibre and optical fibre project turnkey services to various, Telecom Network Operators & Broad Band Service Operators and ISPs across Maharashtra. Apart from laying the network under the Vendor project or own network, we are also engaged in the operations & maintenance activity of the fibre network and preventing the underground optic fiber therein from getting cut due to activities like road repairs, digging and expansion works by various authorities.

Significant Developments Subsequent to the Last Financial Year

After the date of last audited accounts i.e. March 31, 2024, the Directors of our Company confirm that, there have not been any significant material developments which materially and adversely affect or is likely to affect within the next twelve months for the trading or profitability of the Company, the value of its assets or its ability to pay its liability.

The telecom industry will, very quickly, need to understand the impact of this change and realise the opportunities that the new era will usher in. Many traditional touch points have vanished and new ones have emerged. Reinventing communication planning across this new customer path will be one of the biggest challenges and agencies who adopt the same will succeed in the years to come.

THE FUTURE OUTLOOK

In keeping with the challenges of change, your Company was looking at ways to take advantage of the emerging situation. In this context, the Companys decision to geographical expansion is underway, this will not only ensure that your company is on a fast-track growth path, but also add tremendous value to your investment in the Company.

KEY FACTORS AFFECTING OUR RESULTS OF OPERATION:

Our results of operations and financial conditions are affected by numerous factors including the following:

• General economic and demographic conditions;

• Fluctuations in foreign and Indian currency;

• Depreciation, repairs and maintenance of our equipment;

• Significant developments in Indias economic and fiscal policies;

• Our ability to obtain the necessary licenses in timely manner;

• Our ability to attract and retain its consumers;

• Our ability to expand its existing retail network;

• Our ability to attract and retain distributors, wholesalers;

• Demand, Supply and pricing for heavy machinery;

• Age and condition of heavy machinery;

• Changes in laws or regulations that affect the usage of heavy machinery;

• Changes in Segment Contribution to Revenue;

SEGMENTWISE PERFORMANCE

The Company does not have more than one business segment and hence segment reporting is not applicable

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company always strives to strengthen Internal Control Systems and processes for smooth and efficient conduct of business and complies with applicable relevant laws and regulations. A comprehensive delegation of power exists for smooth decision making. Elaborate guidelines for preparation of accounts are followed for uniform compliance. Further, all the key functional areas are governed by respective operating manuals. In order to ensure that all checks and balances are in place and all Internal Control Systems are in work, experienced firm conducts regular and exhaustive internal udits if accountants in close co-ordination with the companys concerned accredited officials. The Internal Financial Control are reviewed periodically and in particular the Internal Auditors ensure that the company as in all material aspects, laid down Internal Financial Controls including operational controls and that such controls are adequate and operating efficiently.

HUMAN RESOURCES

Industrial Relations with staff and workmen at Head Office and across all the plants, continued to be cordial. Your Company has successfully aligned human capital with business and organizational objectives. The emphasis has been on teamwork, skill development and development of leadership and functional capabilities of the employees. As on 31st March, 2024, there were full time 12 employees recorded on the payroll of the Company.

FINANCIAL PERFORMANCE

The financial statements have been prepared in accordance with the requirement of the Companies Act 2013, and applicable accounting standards issued by the Institute of Chartered Accountants of India. The details are mentioned below:

(Amount in lakhs)

Particulars	2023-24	2022-23
Revenue from operations	10,350.76	2,127.45
Other income	157.28	0.00
Total Revenue	10,508.04	2,127.45
Total expenses	8,877.78	1,695.93
Profit before tax	1,630.26	431.52
Profit after tax	1,149.29	322.18

FINANCIAL REVIEW (INR in Lakhs)

Revenue from Operations:

During the year 2023-2024 the total revenue of our company has increase from Rs 10,508.04/- as against Rs 2,127.45/- in year 2022-2023.

Total Expenses (INR in Lakhs)

Total expenses consist of Material consumed, change in value of stock of Finished Goods/Work-in-process, Employee Benefit Expenses, Finance cost, Depreciation & Amortization expenses, and other expenses. During the year 2023-24, the total expenses were increased from Rs 8,877.78/- from Rs 1695.93/- as compared to year 2022-23.

Employee benefit expenses (INR in Lakhs)

Expenses incurred on directors remuneration, employee remuneration and employee welfare expenses during the financial year 2023-2024 was Rs 143.41 and in 2022-23 it was Rs 83.63

Finance Cost (INR in Lakhs)

Expenses incurred on finance and interest cost during the financial year 2023-24 increases to Rs 33.90 from Rs 17.91 in financial year 2022-23.

Depreciation & Amortization expense (INR in Lakhs)

During the year, 2023-2024 depreciation and amortization expense of our company has increased to Rs 43.55 as against Rs 25.15 in year 2022-23 showing an increased.

Profit after Tax (INR in Lakhs)

The PAT is increased in Financial Year 2023-24 is Rs 1,149.29 as compared to Rs 322.18 in Financial Year 2022-23.

CAUTIONARY STATEMENT 2023-24

Statement in this report, particularly those which relate to Managements Discussion and Analysis detailing the Companys objectives, assumptions, estimates, expectations, or predictions are "forwardlooking statements" within the meaning of applicable securities laws and regulations. These forwardlooking statements are inherently subject to significant business, economic, regulatory, and competitive risks, uncertainties, and contingencies, many of which are beyond our control. As a result, actual outcomes and results may differ materially from those expressed or implied in these statements. Key factors that could cause actual results to differ include, but are not limited to:

• Changes in economic, market, and industry conditions

• Fluctuations in demand for our products/services

• Regulatory and legal developments

• Technological changes and innovations

• Competitive pressures

• Availability and cost of raw materials and components

• Changes in our business strategies and plans

We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.

WARM REGARDS

Sd/-

RAVINDRA DOSHI

MANAGING DIRECTOR

DIN:02494055

DATE: 14/08/2024