Niks Technology Ltd Management Discussions

Company Overview

Niks Technology Application development Company offers a range of services from outsourced application development and managed services to professional services that are enabled by experience, knowledge, proven methodologies, global talent and innovation. Niks Software Technology delivers products and solutions with increased levels of service and improved quality of outputs. We Offer IT Services, IT Security Services and Training on Ethical Hacking/Embedded System & Robotics/Software Development/Networking & Communication. The Company has also engaged in sale of Services like AMC Charges (Annual Mainteanance Charges), sale of Drone Spray Service and sale of traded goods like Drone Parts, Lifts Parts.

Our Mission

Our sole motive is to achieve business and revenue goals and promotion of the company, the company works diligently to match the expectations of the clients. We make sure to accomplish our goals through creativity and innovation. Niks Technology caters customize services to the clients in a systematic manner.

Our Vision

Niks Technology offers superior information technology services in a timely and affordable manner with emphasis on responsiveness and integrity while promoting long-term, seamless partnerships for mutual benefit.

The purpose of this discussion is to provide an understanding of financial statements and a composite summary of performance of our business. Management Discussion and Analysis (MDA) is structured as follows:

• Industry Overview Business Overview

• Result of Operation Business Outlook Opportunities And Threat

• Risk and Concerns

• Internal Control Systems and adequacy

• Material Development in Human Resources

IT Industry Overview

The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the countrys GDP and public welfare. Indias IT sector witnessed a 16% YoY growth in hiring in April, driven by factors such as artificial intelligence (AI) adoption, cloud modernisation, and the expansion of Global Capability Centers (GCCs). Indias first made-in-India graphics processing units (GPUs) are expected to be ready for technology demonstrations by the end of 2025. Production readiness is projected for 2029 under the Rs. 10,372 crore (US$ 1.21 billion) IndiaAI Mission. As innovative digital applications permeate sector after sector, India is now prepared for the next phase of growth in its IT revolution. India is viewed by the rest of the world as having one of the largest Internet user bases and the cheapest Internet rates, with 76 crore citizens now having access to the Internet.

The current emphasis is on the production of significant economic value and citizen empowerment, thanks to a solid foundation of digital infrastructure and enhanced digital access provided by the Digital India Programme. India is one of the countries with the quickest pace of digital adoption. This was accomplished through a mix of government action, commercial innovation and investment, and new digital applications that are already improving and permeating a variety of activities and different forms of work, thus having a positive impact on the daily lives of citizens. Indias rankings improved six places to the 39th position in the 2024 edition of the Global Innovation Index (GII). The outperformance may be attributed to market share gains resulting from TCS strategy on customer centricity, its agile organization structure, and a very stable leadership team; its investments in organic talent development, research and innovation, intellectual property, brand building, and in building newer capabilities that have helped expand wallet share with clients; and better execution resulting in greater customer satisfaction.

Business Overview

Niks Technology Private Limited, established in 2014, has evolved into a leading IT solutions provider known for implementing industry best practices and delivering quality services across diverse verticals. Our comprehensive offerings include Digital Marketing, Software Development, Mobile App Development, Website Development, Drone Accessories, and Agricultural Drone solutions, complemented by structured classroom training and certification courses offered online and offline during students breaks. We continuously innovate and customize our services to meet client needs, integrating cutting-edge tools and technologies to ensure optimal service delivery and client satisfaction. With a strong emphasis on digital marketing expertise, Niks Technology combines data-driven strategies with years of experience to capitalize on marketing opportunities across channels in real-time. Anchored by our core values of innovation, information, and intelligence, we are committed to advancing as both a technology service provider and a training organization, prioritizing quality, client satisfaction, and sustainable growth through professionalism and strategic diversification of our portfolio and infrastructure. We have a diversified product portfolio, which primarily caters to growing IT services sector but not limiting to it. We carter the need of students through our skill enhancement and value addition courses. We provide the courses at our education centres. We provide an improved product mix to our customers and their preferences thereby targeting a wider customer base. Our growth is further driven by our ability to make available an assortment of quality products under trusted brands built by our Company. A failure to maintain quality standard can prove to be extremely detrimental to the business of our Company. We give quality the utmost priority at all stages, to ensure our customers are thoroughly satisfied.

The company makes optimum utilisation of its resources both capital and human to achieve and satisfy its existing and prospective customer needs. The company believes in creating bespoke, high quality, high impact solutions designed to deliver differentiated business outcomes. We provide the best-in-class solutions to our esteemed customers spread over all the sectors. We believe that we offer best to all our customers which makes us possible by understanding our clients needs and strive to deliver beyond their expectations. We are always committed to fulfil the requirements of our clientele according to their needs. In order to meet these requirements, we have adapted to best measure in the industry for quality management systems. We are providing quality that ensures customer satisfaction. We believe that we have long-term and stable relationships developed over the years with our key suppliers and our key customers through the quality of services we provide.

Our revenue model is summarized as below:

Revenue from Operation:

1. DIGITAL MARKETING: Digital marketing in its simplest term is the process leveraging on modern digital technology to market goods or services or the process of pulling website traffic or attention through social media sites; they achieve this by creating content that attracts attention and encourages readers to share it across their social network platforms. One of the major purposes of leveraging social media in marketing is that it covers a wide range of target market compared to other marketing tools. Digital marketing is a general term used for the marketing of products or services using digital technology platforms, mainly on the internet, but also including mobile phones, display advertising, and any other digital medium. Digital marketing activities that we provide are: Search engine optimization (SEO) Search engine marketing (SEM) Content marketing Influencer marketing Content automation Campaign marketing e-commerce marketing Social media marketing Social media optimization email direct marketing Display advertising e–books, optical disks and games, and all other forms of digital media. It also extends to non-Internet channels that provide digital media, such as mobile phones (SMS and MMS). Digital marketing agencies industry creates advertising campaigns and places the advertisements across digital media outlets. Through in-house capabilities or subcontracting, the agencies provide advice, creative services, account management, production of advertising material, and media planning and buying.

2. ONLINE & OFFLINE COURSE: Skills Training is one of the most important aspects for a student especially. This helps the student to gain industrial exposure and also get familiar with the environment of the corporate. We provide the training sessions on the various technologies through which students can practice further and show their creative talents and use their own innovative ideas and enhance their skills. Courses we offer: Ethical hacking & cyber security Embedded system & robotics Digital marketing Android application development Internet of things (IOT) Machine learning Artificial intelligence Data science PLC-SCADA

Web development Software development

Programming language (C, C++, JAVA, PHP, PYTHON ETC.) Server administrator VLSI designing Networking Software testing

3. SOFTWARE DEVELOPMENT: We offer complete business application software & related services to section of Small & Medium Enterprises (SME). Niks Technology custom software development company provides complete end to end software solution for standalone outlets to sequence of a store. NET Development; .NET is a general-purpose development platform. It can be used for any kind of app type or workload where general purpose solutions are used. It has several key features that are attractive to many developers, including automatic memory management and modern programming languages, that make it easier to efficiently build high-quality apps. Multiple implementations of. NET are available, based on open .NET Standards that specify the fundamentals of the platform. MySQL Development: MySQL is known to be one of the best open source database management systems that supports almost all programming languages and operating systems. It is amongst the popular database databases for application development in the web application development and has a clear and detailed documentation along with a strong support community. This database is best used in conjunction with applications developed in PHP and is a part of the LAMP stack. PHP Development: PHP Programmer have dedicated team of professional PHP developers dedicatedly to satisfy our client with the requirement. We assure to provide PHP developers with effective solutions. PHP developers are well versed in PHP web development, custom PHP development, PHP software development and source development. AJAX Development: AJAX stands for Asynchronous JavaScript and XML. AJAX is a new technique for creating better, faster, and more interactive web applications with the help of XML, HTML, CSS, and Java Script. AJAX web development, Custom AJAX development, AJAX software development and Source development. Joomla Development: Joomla is an open source platform on which Web sites and applications can be created. It is a content management system (CMS) which connects your site to a MySQLi, MySQL, or PostgreSQL database in order to make content management and delivery easier on both the site manager and visitor. Joomla web development, Custom Joomla development, Joomla software development and Source development. Database Design & Consulting: Database Design. Databases have long been core to our consulting practice, as most of our solutions and applications have a database behind them. Whether its a library management system, an archive, a collection of photographs, or one of popular music, underlying the information is usually a database of some sort. J2EE: J2EE is a platform-independent, Java-centric environment from Sun for developing, building and deploying Web-based enterprise applications online. The J2EE platform consists of a set of services, APIs, and protocols that provide the functionality for developing multitier, Web-based applications. SharePoint Development: SharePoint is a web-based collaborative platform that integrates with Microsoft Office. Launched in 2001, SharePoint is primarily sold as a document management and storage system, but the product is highly configurable and usage varies substantially among organizations.

4. WEB DEVELOPMENT: Website Development refers to making a website for internet as well as internet website can be simple and can be complex one. A website should have a proper content on it so that the reader could know about the company. Website development is basically optimal for publicizing a company, a website should have a proper content on it so that a reader could know about the company. For any website you required a Content Management System so that you could develop a plan for it. Our spectrum of Web development services includes: Website design Custom web designing Responsive website design SEO friendly web designing PHP design & application development Website hosting E-commerce web design Website support and Maintenance Website redesigning Complete satisfactory solutions

Our Company is being promoted by Mr. Manish Dixit having experience of more than a decade and he is the guiding force behind all the strategic decisions of our Company. Promoter himself handles the sales, Execution plan for projects, spearheading digital marketing team and he manages day to day activity at office. Our entire range of services is being provided with the assistance of our experienced and talented team of employees. We believe that we are a trustworthy brand in the city of Patna and providing services by improvement in the quality of our services and customer interaction. Since the early days of our inception, we have gathered the industry knowledge, market awareness and also possess the infrastructure to support our services. Our services can be applied in array of vary industries etc. We have the capability and flexibility to meet the exact specifications of the services as per the requirements of our customers. We have our facilities and team of motivated and experienced staff in providing services as expected by our customers.

5. Drone Services and Solutions: Expanding our footprint into innovative technology sectors, we are engaged in the manufacturing, repairing, trading, and rental services of commercial and agricultural drones. Our offerings include: Drone Rental Services: Catering to agricultural, security, surveillance, delivery, transportation, and drone spray services, among others. AMC Charges: We provide comprehensive Annual Maintenance Contract (AMC) services tailored to meet the specific needs of drone operations in diverse sectors. Sector-specific Applications: Our drones find applications in healthcare, construction, telecommunications, and event videography, enhancing operational efficiencies and safety standards across industries.

Segment-wise or product-wise performance

A. Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the Company has only one reportable Business Segment, which is engaged incomprehensive range of services covering Advertising and Marketing Solutions including Digital

Marketing, Corporate Travel Arrangements, Gifting Solutions, Event Management etc. Accordingly, the figures appearing in these financial statements relate to the Companys single Business Segment. B. Geographical Segments: The Company activities / operations are confined to India and as such there is only one geographical segment. Accordingly, the figures appearing in these financial statements relate to the Companys single geographical segment. Please Refer to Annexure to Note: J of the Financial Statement for 31.03.2025.

Result of Operations:

During the financial year 2024-25 the total revenue has been increased to 909.29/- Lakhs as compared to the previous year i.e. 610.86/- Lakhs. The Companys net profit before tax is 64.31/- Lakhs as compared to 61.39/- Lakhs in the previous figures. The Companies net profit after tax for the current financial year is 45.05/- Lakhs as compared to 44.50/- Lakhs to the previous year.

Details of significant changes in Key Financial Ratio

PARTCULARS	2025	2024	CHANGE MORE THAN 25%
Debtors Turnover (in times)	4.70	4.45	N.A
Inventory Turnover (in times)	193.21	19.72	Inventory Turnover Ratio is increased by 879.97% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to decrease in Average Inventory in the F.Y. 2024-25
Interest Coverage Ratio (in times)	87.92	22.19	Interest Coverage Ratio is increased by 296.25% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to decrease in Interest Expensed in the F.Y. 2024-25
Current Ratio (Times)	31.73	3.92	Current Ratio is increased by 710.42% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to decrease in Current Liabilities in the F.Y. 2024-25
Debt Equity Ratio (Times)	Nil	0.04	Debt-Equity Ratio is decreased by 100.00% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to decrease in Debt in the F.Y. 2024-25
Operating Profit Margin (%)	7.22	10.52	Operating Profit Margin is decreased by 31.39% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to increase in Revenue for the F.Y. 2024-25
Net Profit Margin %	5.00	7.28	Net Profit Ratio is decreased by 31.35% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to increase in Net Sales in the F.Y. 2024- 25.
Return on Net Worth (%)	7.22	10.37	Return on Net Worth is decreased by 30.40% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to increase in Shareholders Equity in the F.Y. 2024-25

Notes: The details of financial ratio is disclosed in the notes to the financial statements of the company

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

Current year RONW is 7.22% as compared to previous year 10.37%; Return on Net Worth is decreased by 30.40% in F.Y. 2024-25 as compared to F.Y. 2023-24 due to increase in Shareholders Equity in the F.Y. 2024-25.

Disclosure of Accounting Treatment

The financial statements of the Company have been prepared in accordance with the Accounting Standards comply with the Accounting Standards notified under Section 133 of the Companies Act, 2013 ("the 2013 Act") and the relevant provisions of the 2013 Act, as applicable. The financial statements have been prepared on going concern basis under the historical cost convention on accrual basis. The Company has follows to continue with the period of 1st day of April to 31st day of March, each year as its financial year for the purpose of preparation of financial statements under the provisions of Section 2(41) of the Companies Act, 2013.

OUR COMPETITIVE STRENGTHS:

Rich Management Experience

The promoters and management of the company is focused on providing risk-aware and risk free environment to all stakeholders of the company. The company is cautious to all types of risks such as credit risk, compliance risk, technological risk, human resource risk etc. In order to prevent such type of risk the company has a team comprising of personnel having operational experience and they are capable of creating and facing the challenges of growth within our Company. We believe that our management teams experience and their understanding of our industry and will enable us to continue to take advantage of both current and future market opportunities. Our Managements experience and knowledge enables us in addressing and mitigating various risks inherent in our business, including competition, the global economic crisis related effects and fluctuations in the prices.

Domain expertise and technical excellence:

Our Company have a dedicated work force, who are the strength and power of our organization. Our workforce is doing their individual bit in achieving our cumulative goals successfully.

Quality Service

We believe in providing quality and timely service to our customers. We have a set of standards for ourselves when it comes to timeliness and quality of service we provide to our customers. The stringent systems ensure that all the products reach our customers on stipulated time and there are minimum errors to ensure reduced product rejection. We believe that our quality service for the last 6 years has earned us a goodwill from our customers, which has resulted in customer retention and order repetition. It has also helped us to add to our existing customer base. We have developed internal procedure of checking the client orders at each stage from customer order to closer of the service. Our company focuses on maintaining the level of consistently in our service, thereby building customer loyalty for our Brand.

Continue develop new course content with market scenario:

Our Company is continuing developing new course content according requirement of the market. As per the market scenario we have launched courses like Ethical hacking & cyber security, embedded system & robotics, Digital marketing, Android application development, Internet of things (IOT), Machine learning.

Progressive Employer

Niks is continuously focused on creating an engaging atmosphere for our Employees to learn, contribute and grow. There is an active FUN team that creates opportunities for enjoyment even while working. We believe in timely compliance of all statutory payments especially related to employees. Our company ensures a safe environment, dignity and respect for all our employees irrespective of gender, religion, caste etc.

Quality Assurance and Standards

We are committed to designing process based on customer insights, team wisdom and continuous improvement. Additionally, there is an audit process to check for adherence to process. Last but not the least, the results are monitored to ensure that ROI is achieved both for external and internal Clients.

Needs of Customers

We have a system in place which has attained high level of knowledge about the needs of our customers, resulting from continuous two-way communication between our representatives and customers. We have a team of individuals who are constantly analyzing the market scenario and study our customers requirements. We try to cater to our customers requirements by offering them a vast basket of product range. Our experience combined with our professionalism and capacity to deliver has helped us to grow at a steady rate in the last 7 years. Our aim is to earn customers trust and confidence through personal attention, passion for what we do and commitment to long-lasting relationship. We are prepared to go an extra mile to deliver to our customers a measurable business value and help them adopt and succeed in the industry.

BUSINESS STRATEGY

Increase Brand awareness

We believe that its critical for success of direct sales to have strong brand recognition and recall value. We intend to enhance the brand recognition of our services through our presence in major cities. We also intend to focus on use of targeted marketing initiatives such as digital and print advertisements, as well as marketing through traditional channels such as outdoor advertising. Our marketing and advertising initiatives shall be directed to increase brand awareness, acquire new customers, drive customer traffic across our retail channels and strengthen our brand recall value.

Capitalize growth demand in Industry we serve

We believe that IT sector shall observe a rapid growth in the coming years. Also we believe that demand for services like digital marketing, software development, mobile app development, website development, shall be increased in near future and we intend to capitalize on such growth opportunities. We believe that we are well positioned to cater to demand of such sector with our Services and competitive pricing structure.

Building-up as a Professional Organisation

We believe for a business to grow beyond a certain size, it needs to be run as a professional organisation. No organisation run in a promoter-centric or an unorganised structure can become a large business. We believe in transparency, commitment and coordination in our work, with all our stakeholders. We have the right blend of experienced and dynamic team and staff which takes care of our day-to-day operations. We also consult with external agencies on a case to case basis on technical and financial aspects of our business.

Expanding Our Clientele Network by Geographic expansion:

We believe that our growth in other states in the country can fetch us new business expansion and opportunities. Presently, our Training units in Patna we need to expand either directly or through Franchise. Going forward we intend to establish our presence in few locations in the country. Our emphasis is on scaling up of our operations in other markets which will provide us with attractive opportunities to grow our client base and revenues.

Upgrade our services in line with the students requirement:

Whatever the requirement of our client is, we abide to carry it with full responsibility and dedication and deliver what our client expect from us. We are bound to provide services which are up to date and full proof in current business scenario.

Strengthen Human capital

Our employees and management team are our most valuable asset. Investing in human capital by training, and retaining our key people has been and will remain critical to our success. To achieve this, we intend to remain committed to provide our personnel with opportunities to expand our business within their areas of expertise. We will also continue to provide our personnel with personal and professional growth opportunities, including training and performance-based incentives.

Strategic Acquisition and Alliance Opportunities

We intend to explore and evaluate strategic acquisition and technology alliance opportunities to gain access to new clients and sectors, add new technology capabilities to our offerings that drive synergies with our existing business ventures.

Opportunities and Threat

The growth of the Company is subject to opportunities and threats as are applicable to the industry from time to time.

Risks and Concerns

Risk is an inherent part of any business. There are various types of risks, which threat the existence of a company like Credit Risk, Market Risk, Operational Risk, Liquidity Risk, Interest Rate Risk, Strategic Risk, Regulation Risk etc. Your Company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off between risk & returns.

Internal Control System & Adequacy

Internal Control Systems has been designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordances with managements authorization and properly recorded and accounting records are adequate for preparation of financial statements and other financial information. Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems

Research and Advancement

To remain competitive in the evolving business landscape, the company is actively engaged in ongoing research to enhance its products and meet customer demands effectively.

Disclaimer

Statements in the management discussion and analysis report describing the Companys outlook may differ from the actual situation. Important factors that would make a difference to the Companys operations include market factors, government regulations, and developments within the country and abroad. We are under no obligation to publicly amend, modify or revise any forward looking statement on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.