MANAGEMENT DISCUSSION AND ANALYSIS

The management of Hit Kit Global Solutions Limited brsents the analysis of the performance of the company for the year 2014-15 and its outlook for the future. This outlook is based on an assessment of the current business environment. It may vary due to future economy and other developments both in India and Abroad.

Although economy has been growing slowly including the retail sector, there were several complex challenges facing this sector. Despite of the challenges your company has remained resilient against adversities and has leveraged opportunities to deliver results.

Outlook

The air is full with optimism as we enter 2015. This is driven by change in government in 2014, which is working on pushing the economy to 8 per cent - 10 per cent trajectory. But accelerating growth from 5 per cent - 10 per cent requires significant investments. Among all emerging sectors - e-commerce, IT, healthcare, education and financial inclusion have been favorite sectors for investors in 2014. We believe that the next sector to watch out for is Food processing and Agribusiness

In line with the evolution of global food demand, with the rising incomes in India, there is a shift from carbohydrate staples to protein including animal protein (milk, meat) and vegetable protein (pulses, soy) as well as towards more fibre, vitamins and minerals from sources such as fruits and vegetables. The per capita consumption of milk, fruits, vegetables and meat products are all rising at higher rates than those for cereals.

This is also evident in consistent double digit food inflation for last few years now. Food inflation has become more of a systematic phenomenon as supply chain is not responding efficiently to the demand patterns. Food inflation has various dimensions. Though, it means higher price for the consumer, it also means more money in farmer's pocket. However, the intermediaries in the food supply chain in India have gained much more from inflation than the farmers themselves.

Retail Business

During the year under review, your Company strategically increased its focus on retail vegetable business thereby sustaining its earnings from Retail of vegetables, through the vegetable vendors. The sales turnover has been broad based, competitive and profitable. Your Company has adopted unique retailing strategy of selling its products in retail market, without permanently hiring the retail counters, thereby cutting down the cost of markets. As a marketing strategy, the Company has established the Vegetable Supply Chain From Vegetable Market To Vegetable Vendors in the forthcoming years.

Strengths, Risks and Concerns Strengths

Over few years in retail business, your Company has developed supply chain for retailing vegetables from farmer to whole seller to the consumers.

Risk, Concerns and Risk Mitigation

Risk Management is a critical exercise for all organizations, particularly ones operating in many locations / countries. The main aim of risk management is to identify and analyse the risks through a structured Risk-Benefit Analysis and mitigate those risks which are not beneficial to the organisation.

Financial Performance & Position

Sources Of Funds

The highlights of the Sources of funds:

1. Share capital:

At brsent, we have only one class of shares - equity shares of par value of Rs.2/- each. Our authorized share capital is Rs. 900.00 Lakhs, divided into 4,50,00,000 equity shares of Rs.2/-each. The issued, subscribed and paid up capitals as at March 31, 2014 were Rs. 740.00 Lakhs.

2. Reserves and surplus:

The balance as at March 31, 2015 amounted to Rs. 233.14 Lakhs.

3. Shareholder funds:

The total shareholder funds were Rs. 973.14 Lakhs as at March 31, 2015.

4. Current liabilities:

The balance as at March 31, 2015 amounted to Rs. 1.44 Lakhs.

APPLICATION OF FUNDS:

The highlights of the Application of funds:

1. Fixed Assets:

Fixed Assets of Rs. 0.65 Lakhs as on March 31, 2015.

2. Investments:

The company has invested Rs. 480.85 Lakhs as on March 31, 2015.

3. Loans and Advances (Long term and short term):

The balance as at March 31, 2015 amounted to Rs.488.01 Lakhs.

4. Provisions:

Deferred Tax liability debit of Rs. 0.03 Lakhs payable by the company and tax provision of Rs. 0.32 Lakhs is made during the year.

Results of Operations:

The highlights of the Results of operations are as follows:

Income:

During the year under the review, the Company has recorded gross revenue of Rs. 22.19 Lakhs as against Rs. 46.20 Lakhs in the brvious year. After offsetting the expenses the company made a Loss after tax of Rs.3.41 Lakhs against Rs. 3.59 Lakhs in the brvious year.

Expenditure:

We incurred total expenses of Rs. 25.25 Lakhs, as against Rs. 49.63 Lakhs in the brvious year. The company has incurred administrative and general expenses during the year.

Debrciation:

We provided Rs. 0.01 Lakhs and Rs.0.49 Lakhs towards debrciation for the year ended March

31, 2015 and March 31, 2014.

Earnings Per Share (EPS):

There was Basic and diluted EPS after exceptional /extra ordinary items of Rs. (0.01) as against Rs. (0.01) in the brvious year.

Related Party Transactions:

These have been discussed in detail in the Notes to the financial statements section of this report.

Events Occurring After The Balance Sheet Date:

There were no significant events occurring after the Balance Sheet date.

Human Resources/ Industrial Relations

The Company believes that the success of an organization largely depends on the quality of the products it offers in the market and competitive price to the consumers. The company has developed good quality supply chain.

Employee Relations

The Board of Directors take this opportunity to sincerely acknowledge the dedicated services and contribution of all the employees to the Company's satisfactory performance. To enhance the skills of the employees as well as to enable them to face the growing challenges the higher management regularly interacts with it employees. Our employee relations continue to be cordial.

Internal Control Systems and Adequacy

The Company has adequate internal control systems in place commensurate with the size and nature of business which covers all significant areas of the company's operations and reported to the Audit Committee of the Company, for their review in its meetings.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Company's objectives, projections, expectations and estimates are 'forward looking statements'. Actual results might differ from those anticipated because of changing ground realities.