Net Pix Shorts Digital Media Ltd Management Discussions

1. INTRODUCTION:

Our business was originally being run as a proprietorship named M/s. First Step Entertainment Capital. Further, our Company was incorporated on June 2019, as a public limited company under the name Net Pix Shorts Digital Media Limited under the provisions of the Companies Act, 2013 with the Registrar of Companies, Mumbai with a vision to corporatize the business. The business takeover of M/s. First Step Entertainment Capital (Proprietor Mr. Danish Zakaria Aghadi) was affected along with the incorporation of our Company such that our Promoter Mr. Danish Zakaria Aghadi was allotted 16,00,000 equity shares in lieu of his proprietor capital through the Companys first Memorandum. Our Company is a Technology based entertainment company operating in the niche segment of online short film contents and publishing the same on various digital online portals and OTT platforms. The online digital media industry is a continuously evolving technological industry and we endeavor to exploit these technological advances to reach audiences in India and globally with entertaining, socially relevant and heart-felt content.

2. INDUSTRY STRUCTURE:

The global economy is climbing out from the depths to which it had plummeted during the Great Lockdown in April. But with the COVID-19 pandemic continuing to spread, many countries have slowed reopening and some are reinstating partial lockdowns to protect susceptible populations. Global growth is projected at 4.4 percent in 2020. The revision reflects better-than anticipated second quarter GDP outturns, mostly in advanced economies, where activity began to improve sooner than expected after lockdowns were scaled back in May and June, as well as indicators of a stronger recovery in the third quarter. Global growth is projected at 5.2 percent in 2021, reflecting the more moderate downturn projected for 2020 and consistent with expectations of persistent social distancing. Following the contraction in 2020 and recovery in 2021, the level of global GDP in 2021 is expected to be a modest 0.6 percent above that of 2019. The growth projections imply wide negative output gaps and elevated unemployment rates this year and in 2021 across both advanced and emerging market economies. After the rebound in 2021, global growth is expected to gradually slow to about 3.5 percent into the medium term.(old data)

3. INVESTMENTS/ DEVELOPMENTS:

Foreign investment in companies in the roadway transport industry is governed by the provisions of the FEMA read with the applicable regulations. The Department of Industrial Policy and Promotion ("DIPP"), Ministry of Commerce and Industry has issued ‘Consolidated FDI ("FDI Policy") which consolidates the policy framework on Foreign Direct Investment ("FDI"), with effect from August 28, 2017. The FDI Circular consolidates and subsumes allthe press notes, press releases, and clarifications on FDI issued by DIPP till August 27, 2017. All the press notes, press releases, clarifications on FDI issued by DIPP till August 27, 2017 stand rescinded as on August 28, 2017. Videan Office Memorandum dated June 5, 2017 ("Office Memorandum"), issued by Ministry of Finance, Department of Economic Affairs the Government of India has abolished Foreign Investment Promotion Board ("FIPB").

4. OPPORTUNITIES AND THREATS:

Strength:

1. Accreditation with various awards.

2. Own Inventory.

3. Experience of our Promoters and seniormanagement team

4. Customer Satisfaction

5. Repeatative Customers

Opportunities:

Vast Industrial Presence in both Public and Private Sectors

Huge demand for Domestic services

Avail of Low-cost, Skilled Human Resources.

Proactive government continued thrust on reforms- Further liberalization under process.

Threats:

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, price is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market. We believe that our experience in this business and quality assurance will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering services similar to us. We believe that we are able to compete effectively in the market with our quality of services and our reputation. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the services.

5. SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE:

Our Company is a Technology based entertainment company operating in the niche segment of online short film contents and publishing the same on various digital online portals and OTT platforms. The online digital media industry is a continuously evolving technological industry and we endeavour to exploit these technological advances to reach audiences in India and globally with entertaining, socially relevant and heart-felt content.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital: During the year under review, there is no change in the Authorized and Paid-up Share capital of Company. Reserves and Surplus: The Reserve and Surplus of Company is Rs. 266.25 Lakhs as on period ended on 31st March, 2025. Total Income: The Company has earned total Income Rs. 47.31 Lakhs as on period ended on 31st March, 2025.

8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the Company.

9. DETAILS OF KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

Description	As at March 31, 2025	As at March 31, 2024	Variance	Remark
Current Ratio	21.51	16.90	4.62	Due to increase in Inventories the
				ratio has increased.
Debt-Equity Ratio	1.36	0.35	1.01	Due to increase in Unsecured Loans the ratio has increased.
Inventory Turnover				-
	0.04	0.04	0.0
Ratio
Trade Receivables				-
Turnover Ratio	1.75	1.73	0.02
Net Profit Ratio	-7.97	7.46	-15.42	Due to Loss in the current year the
				ratio has decreased.
Interest coverage	-	-	-	-
ratio
Operating Profit	-7.09	5.20	-25.04	Due to loss in the current year the
ratio				ratio has decreased.
Return on Net worth	(3.77)	3.91	-130.58	Due to loss in the current year the
				ratio has decreased.

10.DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS

COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF. –

The Return on Net Worth for F.Y. 2024-25 is (3.77)% and for F.Y. 2023-24 was 3.91%. The reason for decrease in the ratio is Due to loss in the current year.

11.FORWARD-LOOKING STATEMENT:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.

For and on behalf of theBoard

Net Pix ShortsDigital Media Limited

Sd/-

Danish Zakaria Aghadi

Managing Director

DIN – 05017846

Place: Mumbai

Date: 04-09-2024