Navoday Enterprises Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead>

1. INDUSTRY STRUCTURE AND DEVELOPMENT, OPPORTUNITIES AND THREATS

The advertising 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.

Clients have aggressively shifted their spends to digital, tech, data, e-com and OOH media. It was therefore imperative for your company to seriously look at expanding its bouquet of services. These will ensure developing new sources of revenue in the areas of digital, tech, data and product innovations. The pandemic has underscored the need for a transition, and as an industry, this transition will decide the course of our growth path. The challenge is to adopt change rapidly. Competitive forces affect strategy because your competitors react to the strategic actions you take in the marketplace, and your company has to react to their strategic moves. You have to make sure this interplay works to your advantage by using SWOT analysis to identify your companys strengths, weaknesses, opportunities and threats, and by performing the same analysis for your competition.

2. THE FUTURE OUTLOOK

The future of print advertising in India is evolving in response to changing media consumption habits and the digital landscape.

With the rise of digital media and online advertising, there has been a shift in advertising spending towards digital platforms. Advertisers are increasingly allocating budgets to digital channels, including online display ads, social media advertising,and search engine marketing, apart from OOH media. Print circulation has been witnessing a gradual decline in recent years. As more people access news and information through digital platforms, the reach and influence of print media have been impacted. This shift has led some advertisers to reduce their print advertising budgets. Despite the overall decline, print media still offers advantages for certain advertising needs. Print publications with specific target audiences or niche markets can be effective for advertisers seeking to reach those segments. Print advertising can still be impactful when it focuses on creativity, innovation, and delivering a unique experience. Utilizing eye-catching visuals, interactive elements, and engaging storytelling can help print advertisements stand out and capture audience attention.

3. BUSINESS OVERVIEW

The company treats marketing and advertising fundamentals to business strategy and revenue management. It provides outdoor, print, ground events/activations and digital marketing. The companys primary offering is in outdoor or out-of- home media company also known as OOH advertising. The offering of outdoor media includes advertising on hoardings, billboards on roads, highways, streets, lamp post boards, mobile sign trucks, kiosks, traffic booths, etc.

The companys outdoor media operations are spread across Mumbai and Thane. The company helps its clients run afocused campaign in consumer-populated areas. The company is focused on cost-effective and impactful solutions tailor- made as per their client needs so that their clients get the necessary reach and frequency to further propel their business.

The company is also engaged in events management which includes planning, organizing, and managing events. Navoday Enterprises Limited manages commercial events, corporate events, cultural events, and also small brand promotion events for their clients. They are also engaged in branding and designing through print and online & digital media. And also design various publicity materials for their clients such as Pham plates, brochures, flyers, etc. for their own consumption. The company has in-house design capabilities for the same.

The company has always believed in the best quality in its services. The company is dedicated to the quality of its services and adheres to quality standards as prescribed by its clients. The company strives for complete transparency and satisfaction of its clients with an unwavering thrust and focus on professional excellence and integrity. It is focused on increasing the number of client relationships and having more relationship managers to service these relationships. Its strategy is to increase the number of client relationships and then leverage those client relationships into offering a whole suite of financial products.

4. OUT OF HOME ADVERTISING NETWORK:

Our out-of-home advertising network consists of (i) our commercial location network (including our outdoor LED, movie theater networks), in-store network, and our poster frame network, which we collectively refer to as our digital out-of-home television networks, (ii) our mobile handset advertising network and (iii) our Internet advertising agency business. The significant increase in our operating results since we commenced our current business operations is attributable to a number of factors, including the substantial expansion of our flat- panel display network, the launch and ongoing expansion of our in-store network, the commencement of operations of our poster frame network, and the growing acceptance of our multi-platform network as an appealing advertising medium by our clients.

We expect our future growth to be driven by a number of factors and trends including:

? Our ability to increase sales of advertising time slots and extend the duration of our advertising cycle on our commercial location and in-store networks;

;mso-pagination: none;tab-stops:30.95pt>? Our ability to expand our client base through promotion of our services and cross-selling;

? Our ability to identify and create new advertising channels by establishing separate advertising networks that enable advertisers to target a diverse range of consumer groups with specific demographic profiles;

? Our ability to successfully enter into the mobile handset network advertising business, in part through our acquisition of Focus Media Wireless;

? Our ability to successfully operate and market our new outdoor LED network;

? Our ability to successfully operate and market our new Internet advertising marketing and technology agency; and

? Our ability to acquire companies that operate advertising businesses complementary to our existing operations.

5. TO CONTINUE EXPANDING OUR BUSINESS BY INCLUDING NEW SERVICES:

We intend to explore opportunities to expand our operations by developing new verticals within our existing lines of business. Further expanding our offerings will help us to build on existing diversification of our business.

6. ADEQUACY OF INTERNAL CONTROLS

The Company, through internal controls, aims at achieving operational efficiency and optimum resource utilization. The Company ensures strict compliance with all the applicable laws and regulations. A qualified and independent Audit Committee of the Board, comprising non-executive directors, reviews the compliance process and adequacy of internal controls.

7. DISCLAIMER

Certain statements made in this report relating to the Company’s objectives, projections, outlook, estimates, etc. may constitute‘ forward looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such estimates or projections etc., whether expressed or implied. Several factors including but not limited to economic conditions affecting demand and supply, government regulations and taxation, input prices, exchange rate fluctuation, etc., over which the Company does not have any direct control, could make a significant difference to the Company operations. The MD&A should be read in conjunction with the Company’s financial statements included herein and the notes thereto.

For and on behalf of the Board of Directors

Navoday Enterprises Limited

Sd/-

Anand Mode Vasant

Managing Director

DIN: 07841998

Sd/-

Akash Gajanan Thorat

Director

DIN: 08794854

Date: 31/07/2023

Place: Mumbai