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INNOVATIVEIDEALS & SERVICES (INDIA) LTD.

INVESTOR PRESENTATION 28TH NOVEMBER, 2018

DISCLAMER

This Investor Presentation has been prepared by Valuewise Investor Relations LLP in consultation with Innovative Ideals & Services (India) LTD. and does not constituted a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute an offer. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the Fairness, accuracy, completeness or correctness of such information or opinion contained herein. The information contained in this presentation is only current as of its date. Certain statement made in this presentation may not be based on historical information

• r facts and may be “Forward looking statements”, including those relating to the general business plan and strategy of IISIL, its

future financial condition and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which contain word or phrases such as ‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations of such expressions. These forward-looking statements involve a number of risk, uncertainties and other factor that could cause actual result, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. further, no representation or warranty expressed or implied is made nor is any responsibility or warranty, express or implied, is made that such information remains unchanged in any respect as of any kind accepted with respect to the completeness or accuracy of any information remains unchanged in any respect as of any dateor dates after those stated herein with respect to matters concerning any statement made in this Invested Presentation. IISIL may alter, modify or otherwise change in any matter the content of this presentation, without obligation to notify any person of such revision or change. This presentation cannot be copied and disseminated in any manner. No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of IISIL. This presentation is strictly confidential. The earlier versions of this presentation, were in draft form, and should not be circulated or referred to by any person.

Innovative Ideals & Services (India) Ltd.

EVOLUTION OF INNOVATIVE

MAQSOOD D. S H A I K H MANAGING DIRECTOR - INNOVATIVE

IDEALS & SERVICES (INDIA) LTD. Maqsood D. Shaikh, an electronics and telecom engineer, driving innovation and introducing new security and electronic products for both B-B and B-C market. He started Innovative in the year 1994 after a stint with GTL (Global Telesystems Ltd.), where he was one of the key people involved in introducing fax machines to the Indian market in the late 1980s.

• Introduced VDP in India
• SolleDistributor for

Got Commax-Korea

• Launched VDP brand

INNOVA TIVE-KOCOM

• VDP & CCTV verticals drive

growth; major projects include

• AMANORA
• Awarded for Excellence in

project execution

• Launched Innovative eHOMES–

wireless automation system; awarded PRODUCT of year.

• FTTHvertical started.
• Launched ONYX,INOK VDP
• Innovation in residential

security

• Launched ARMHER-smart

asecurity for women

• Tie-up with TA

T ASKY for DTH

• Mobile phonedistribution
• ArmHER awarded for

Innovation in women Security.

• Agreement with T

A T ASKY Broadband & JIO for ISP on fiber.

• Launching InnoEYE –SaaS cctv on

cloud.

• Launching SAVIOR SOS switch for

kids with facility.

• Launched own brand “INOYO”

mobilephones& LED TV

• Launch ArmHERnew version .

1994- 2002 2004-2011 2012-2014 2015-2016 2017-2018

T A T ASKY + JIO SYSTEM INTEGRA TOR S TO BE LAUNCH PRODUCTS INHOUSE BRANDS B2B DEVELOPERS PROJECTS, TOWNSHIPS INOYO MOBILE PHONES B2C CUSTOMER – FAMILIES

• ARMHER
• SAVIOR
• INNOEYE

HAPPY FAMILY INNOVATIVE is proud to introduce these 3 products for Indian families’ security & give them peace

• f mind.

BUSINESS

Selected by Reliance JIO to lay fiberFTTH

• INNOVATIVE OWN BRANDED

PRODUCTS

• INTEGRATED SERVICE PROVIDER

BRANDS Launched IP & Analog Range of VDP & Home automation solutions. Video Door Phone Wireless and wired home automotion COLLABORATION Collabrated with FERMAX for premium ranhgeof IPVDP , T A TSKY for FTTH & DTH solutions & Y ALE for digital door locksolutions

Video DoorPhone Broadband & DTH FTTH

Innovative Smart building solutions

InoyoMobile and InoyoTV

MARQUE CLIENTS

Highlights 1HFY19 Performance

Business Initiatives

• Company has initiated new projects Alpine with Shapoorji Pallonji,

SD Corp.

• Business Alliance MOU with 4/5 star luxury hotel, Hotel Holmes

(Malaysia & Singapore).

• New vertical of business i.e. Inoyo Mobile Phones and LED TV’s has

started which will result into better EBITDA Margins.

• Company has also initiated new division called LED Lights which is

expected to receive half a million on trading.

• Innovative have joined hands with Reliance JIO for FTTH work with
• rder book of around 47 Lakhs.
• Company receives its major revenue from their project through

Annual Maintenance Contracts (AMC) which accounts around Rs. 90 lakhs to Rs. 2 crores.

• Company’s Current Order Book stands for around Rs. 7.5 crores in

hand.

• Company is working on launching new products and smart phones

in FY19.

Financial Highlights

• Revenue of Rs. 10.20 crores & PAT Rs. 1.74 crores
• EBIDTA margins reported to 29% & PBT at Rs. 2.42 crores.

Company has reduced the imports and have locally sourced the products, branding and value addition which has led to lower cost of products.

• Utilization of Funds.
• Company Reported Strong Sales in the FY18 at Rs. 20.32

crore, up 89% YoY over FY17. EBIDTA for the FY18 Company has reported Rs. 4.88 crore was up 120% YoY, with EBIDTA margins improved to 16% during the year end.

• During FY 18 Company reported PAT of 3.09 crores, up

220% YoY over FY17.

SALES BREAKUP – SEGMENTAL WISE, GEOGRAPHICAL WISE & PRODUCT WISE.

SEGMENTAL BREAKUP GEOGRAPHICAL BREAKUP

The Company has the domestic presence in the state of Maharashtra, Goa, Tamil Nadu, Gujarat, Uttar Pradesh & Karnataka and international presence in the state of UAE, Oman & Hong Kong.

PRODUCT-WISE BREAKUP

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50

AMC Inoyo (Mobile/LED TV) Others Security Products

0.84 1.59 2.48 4.40

0.00 1.00 2.00 3.00 4.00 5.00 6.00

5.16 0.02 0.01 0.20 0.51 0.54 0.02 2.01 0.84

Sales AMC & Service

9.05% 90.95% Annual Maintenance Contract Sales

• Rs. Crores
• Rs. Crores

01 02 04 01

BUSINESS STRATEGY

02 03

LAUNCH OF NEW PRODUCTS IN B-C

• Own brand INNOYO Mobile & LED TV;

introducing products with newer models & Smart Phones into the market to cater the growing demands from Tier-2 and Tier-3 cities

• ArmHer and Savior, innovative products

from own R&D RESEARCH & DEVELOPMENT

• The Promoter of the Company with his

Telecom & Electronics Engineering Skills have driven the success of products.

• The Company’s continuous endeavour to

source & innovate

• fferings

since inception which is validated by innovative

• products. This will help them

to expand their product portfolio & help them to become a global-level company.

STRENGTHEN AFTER-SALES SERVICE

• Major revenue from the states of

Maharashtra & Gujarat.

• Plan

to setting up PAN India distribution network; expanding from current 65 distributors in 5 states i.e. Jammu & Kashmir, Madhya Pradesh, Rajasthan, Gujarat, Maharashtra.

GROWING EXISTING CLIENT RELATIONSHIP

• FTTH – Increasing demand from JIO
• To Leverage domain expertise, understanding
• f the target industry and close relationships

with the customers to expand the scope of current services

BUSINESS STRATEGY

0.00 5.00 10.00 15.00 20.00 25.00 FY16 FY17 FY18 1HFY19 12.18 10.75 20.32 10.20

Total Revenue (Rs.Crores)

0.00 1.00 2.00 3.00 4.00 5.00 FY16 FY17 FY18 1HFY19 0.74 2.22 4.88 2.98

EBITDA (Rs.Crores)

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 FY16 FY17 FY18 1HFY19 0.01 0.97 3.09 1.74

PAT (Rs.Crores)

0.00 5.00 10.00 15.00 FY16 FY17 FY18 1HFY19 5.82 6.78 13.37 14.57

NETWORTH (Rs.Crores)

Particulars 1H FY 19 (6 mth) FY 18 FY 17 Y-O-Y Gr. % INCOME Revenue from Operations 9.32 20.26 10.62 90.89% Other income 0.88 0.05 0.13

• 58.08%

Total revenue 10.20 20.32 10.75 89.08% EXPENSES Cost of materials consumed 0.00 0.00 0.00 0.00 Purchase of stock in trade 8.21 22.66 7.70 194.25% Change in inventory of Finished Goods

• 2.91
• 8.95
• 0.36

2386.25% Employee benefit expenses 1.31 1.23 0.92 32.87% Other expenses 0.61 0.51 0.26 94.98% Total Expenses 7.23 15.44 8.52 81.15% EBITDA 2.98 4.88 2.22 119.54% EBITDA MARGIN 29.18% 24.00% 20.67%

• Depreciation and amortization expenses

0.04 0.06 0.03 84.37% EBIT 2.94 4.81 2.19 120.09% Interest 0.52 0.50 0.73

• 32.35%

EBT 2.42 4.32 1.45 197.04% Tax expense: (i) Current tax 0.67 1.25 0.49 156.40% (ii) Deferred tax 0.00

• 0.02

0.00 829.17% PAT 1.74 3.09 0.97 219.13% EPS 2.10 3.71 3.23 14.86%

PROFIT & LOSS STATEMENT (Rs. in CRORES)

Particulars 1H FY 19 (6 mth) FY 18 FY 17 FY 16 Shareholders’ funds

• a. Share capital

8.31 8.31 3.00 2.40

• b. Reserves & surplus

6.26 5.05 3.78 3.42 Total Shareholders fund 14.57 13.37 6.78 5.82 Non-current liabilities

• a. Long-term borrowings

2.04 0.47 0.00 0.00

• b. Other Long Term Liabilities

3.13 0.00 0.00

• c. Long-term provisions

0.00 0.21 0.14 0.14 Current liabilities

• a. Short-term borrowings

5.99 7.21 4.51 4.55

• b. Trade payables

9.71 8.68 8.01 8.00

• c. Other current liabilities

0.61 2.55 1.76 1.27

• d. Short term provisions

1.97 2.31 1.66 1.05 T O T A L 38.06 34.80 22.87 20.82

• a. Fixed assets

Gross Block 0.55 1.18 1.00 0.00 Depreciation

• 0.02

0.63 0.57 0.00 Net Block 0.53 0.55 0.43 0.46

• d. Long term loans & advances

0.01 0.29 0.02 0.47

• e. Other non-current assets

2.93 1.07 0.00 0.00 Current assets

• a. Inventories

19.12 16.21 7.26 6.90

• b. Trade receivables

13.32 13.55 15.01 12.82

• c. Cash and cash equivalents

0.06 0.49 0.06 0.16

• d. Short term loans & advances

1.84 2.61 0.08 0.01 T O T A L 38.06 34.80 22.87 20.82

BALANCE SHEET (Rs. in CRORES)

ACCOUNTING RATIO

Description

1H FY 19 FY 18 FY 17 FY 16 EBITDA Margin 29.18% 24.00% 20.67% 6.04% PAT Margin 17.08% 15.20% 9.00% 0.11% ROCE 17.71% 34.80% 32.25% 11.95% RONW 11.96% 23.10% 14.26% 0.23% Debt Equity Ratio 0.68 0.58 0.66 0.78 EPS (Rs.) 2.10 4.66 1.79 0.03 Debtors Days 260.08 244.03 516.08 386.11 Creditors Days 333.24 231.06 398.39 304.24 EV/ EBIDTA x 67.38 41.07 88.74 268.15

Particulars FY 18 FY 17 FY 16 Net Profit before tax 4.32 1.45 0.02 Adjustment For: Depreciation & Amortisation Expense 0.06 0.03 0.04 Interest Paid 0.50 0.73 0.68 Interest Received

• 0.01
• 0.01
• 0.03

Operating profit before working capital changes 4.87 2.22 0.71 Adjusted for (Increase)/ Decrease in: Trade Receivables 1.46

• 2.19

3.60 Short Term Provisions 0.65 0.62

• 0.15

Inventories

• 8.95
• 0.36
• 1.56

Other Current Assets Non-current Assets

• 1.07

0.00 0.00 Trade Payables 0.66 0.02

• 0.95

Other Current Liabilities 0.79 0.49

• 2.13

Cash generated from operations

• 1.52

0.80

• 0.50

Less: Income Tax (paid)/ refunded 1.25 0.49 0.00 Net Cash flow from operating activities (A)

• 2.77

0.31

• 0.51

Purchase of Fixed Assets

• 0.19

0.00 0.00 Decrease/(Increase) in long term loans & advances

• 0.27

0.45 0.14 Decrease/(Increase) in short term loans & advances

• 2.53
• 0.08

0.12 Interest Received 0.01 0.01 0.03 Net cash flow from investing activities (B)

• 2.97

0.37 0.34 Proceeds from issue of shares 5.31 0.60 1.20 Security Premium 0.58 0.00 0.00 Issue of bonus shares

• 2.40
• 0.60
• 1.20

Interest & Financial Charges

• 0.50
• 0.73
• 0.68

Proceeds/(Repayments) of Share Application Money Increase/Decrease in short term borrowings 2.70

• 0.04

0.50 Increase/Decrease in long term borrowings 0.47 0.00 0.00 Net cash flow from financing activities (C) 6.17

• 0.78
• 0.17

Net Increase/(Decrease) In Cash & Cash Equivalents (A+B+C) 0.42

• 0.09
• 0.34

Cash equivalents at the beginning of the year 0.06 0.16 0.50 Cash equivalents at the end of the year 0.49 0.06 0.16

CASH FLOW STATEMENT (Rs. in CRORES)

SKOCH ORDER OF MERIT MARCH 2018 Skoch

• rder
• f

merit awarded to Innovative Ideals & Services India LTD. For qualifying amongst top 100 SME'sin india NAVBHARA T OCTOBER 2017 Awarded BEST SME – Security Solution for the year byNAVBHARAT GOGLOBAL BUSINESS SUMMIT Awarded GoGlobal Business Excellence Award at GoGlobal Business Summit in Malaysia

• rganised by Shine GoGlobal in

collaborationwithBSE SME BSE LISTING Listing Ceremony of our Company on BSE Limited

• n 05th October, 2018

MOU signing with Hotel Holmes Innovative have entered into business alliance with Hotel Holmes, Malaysia & Singapore a 4/5 star luxury chain of hotels for security & automation product

AWARDS – WE STRIVE TO ACHIEVE HIGHER

2018 SKOCH ORDER OF MERIT, TOP 100 SMES IN INDIA 2017 BEST SME – SECURITY SOLUTIONS FOR THE YEAR BY NAVBHARAT 2014 INNOVATION IN WOMEN SECURITY 2013 GOLD WINNER @ DESIGN WALL OF FAMEAWARDED FOR CONTRIBUTION IN SURVEILLANCE 2012 CONTRIBUTION TOWARDS SAFETY AND SECURITY INDUSTRY 2011 BEST TECHNOLOGY AWARD-WIRELESS HOME AUTOMATION 2010 IFSEC INDIA 2007 TIMES INTERNATIONAL FIRE SAFETY, SECURITY AND DISASTER

INNOVATIVE IDEALS & SERVICES (INDIA) LTD.

THANK YOU

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