3C IT Solutions & Telecoms (India) Ltd Management Discussions

ANNEXURE-2

Management Discussion & Analysis

The Management Discussion and Analysis Report (MDAR) for the financial year 2024-25 is based on the financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP). It provides insights into the performance and prospects of the company within the broader global Information Technology (IT), Cloud Services, and Cybersecurity landscape, particularly in the System Integration (SI) market.

Insights into the Information Technology Sector

Global System Integration Market - Current Outlook

The global system integration market continues to exhibit robust growth, propelled by widespread digital transformation, cloud adoption, automation, and the integration of emerging technologies like AI, IoT, and Edge Computing.

• Market Size & Growth:

The global system integration market is projected to grow from USD 39.76 billion in 2024 to approximately USD 56.30 billion by 2029, registering a CAGR of 7.2% during the forecast period.

• Growth Drivers:

Key drivers include rising demand for customized IT solutions, increased automation in manufacturing, growing emphasis on interoperability across platforms, and need for scalable cloud-native solutions.

1. By Service Outlook

The primary components of system integration services continue to be:

• Hardware Integration Services: Integration of physical components with digital systems to enable automation and seamless operations.

• Software Integration Services: Bridging legacy and modern applications to enable end-to-end business process visibility.

• Consulting Services: Strategic advisory around digital transformation, system optimization, and cybersecurity frameworks.

2. By Technology

Modern system integrators are adopting and delivering on a wide variety of technology layers including:

• Human-Machine Interface (HMI)

• Supervisory Control and Data Acquisition (SCADA)

• Manufacturing Execution System (MES)

• Functional Safety System

• Industrial Robotics and Machine Vision

• Industrial PCs and IoT (IIoT)

• Machine Condition Monitoring

• Plant Asset Management

Integration with AI/ML, Edge Computing, and Digital Twins is becoming a standard expectation in SI projects.

3. By End User

The demand for system integration is growing across verticals:

• IT and Telecom

• Banking, Financial Services, and Insurance (BFSI)

• Healthcare

• Retail

• Manufacturing

• Energy and Utilities

• Government and Smart Cities

Cloud Services - A Major Growth Pillar

The cloud services segment witnessed accelerated adoption in FY 2024-25 due to increased enterprise focus on scalability, data sovereignty, and hybrid deployments.

• Market Expansion: The global cloud system integration market is projected to cross USD 65 billion by 2027, driven by SaaS platform integration, multi-cloud management, and enterprise resource planning (ERP) modernization.

• Hybrid & Multi-Cloud Integration: Companies are increasingly adopting hybrid-cloud and multi-cloud architectures, necessitating advanced integration across private and public clouds.

• Platform as a Service (PaaS) & Integration Platform as a Service (iPaaS): These technologies are becoming central to cloud-native system integration strategies, allowing for scalable, API-driven, and event-based architectures.

Cybersecurity Integration - A Core Focus Area

As cyber threats grow in complexity, cybersecurity integration has become a non-negotiable component of every system integrators offering.

• Integrated Security Architecture: Clients are demanding security-first integration, including Zero Trust models, identity and access management (IAM), and end-to-end encryption.

• Compliance and Regulations: With evolving regulations like GDPR, HIPAA, and regional data protection laws, system integrators play a key role in ensuring compliance via secure system design.

• Cybersecurity Market Synergy: The global cybersecurity market crossed USD 200 billion in 2024, with a growing chunk linked to system integrators offering Managed Security Services (MSS), Security Operations Center (SOC) integration, and Threat Detection & Response (TDR) solutions.

Key Growth Catalysts

1. AI as a System Integration Enabler

AI continues to drive transformation in the SI domain:

• AI-led Automation: Replacing manual processes in monitoring, diagnostics, and optimization.

• Predictive Maintenance: Using AI to forecast failures, improve uptime, and reduce maintenance costs.

• Customer Experience: AI chatbots, NLP-based service desks, and personalized solutions are now standard.

2. IoT and Edge Computing

• IoT is driving real-time data collection and control in manufacturing, utilities, and smart city applications.

• Edge Computing allows low-latency processing near the data source, improving responsiveness and reducing bandwidth usage.

3. Rise in Industrial Robotics

The use of robotics in manufacturing continues to grow. In 2024, global industrial robot installations crossed 550,000 units, with system integrators enabling robot deployment, programming, and maintenance.

Strategic Collaborations and Innovations

Leading players are collaborating to deliver integrated solutions across domains:

• IBMs Hybrid Cloud Initiatives: The IBM Z and Cloud Modernization Centre continues to support legacy modernization through open hybrid cloud frameworks.

• Arduino & DMC Inc. (2023): Collaborated to build embedded systems and automation solutions, showcasing cross-platform innovation.

Corporate Profile

3C IT Solutions was originally incorporated as a private limited company under the name of “3C IT Solutions & Telecoms (India) Private Limited” under the provisions of the Companies Act, 2013 and a certificate of incorporation was issued by the Registrar of Companies, Pune, India on March 24, 2015. Subsequently, our Company has been converted into a public limited company and the name of our Company has been changed to “3C IT Solutions & Telecoms (India) Limited” pursuant to a special resolution passed at the Extra-Ordinary General Meeting held on July 27, 2023 and a fresh certificate of incorporation dated August 14, 2023 has been issued by the Registrar of Companies, Pune. The Corporate Identity Number of our Company is L72200PN2015PLC154459.

3C IT Solutions, headquartered in Pune, Maharashtra, is an established IT systems integration company operating for the past 10 years. Our Company operates with a vision to provide competitive IT system integration capabilities endeavouring to use best in class technologies and hence brings significant value to the stakeholders. We aim to create a well-respected, highly skilled and professional workforce that can serve diverse technology needs of the businesses as our service portfolio comprises of several IT related services which caters to the needs of our customers. Our service offerings are spread across the spectrum of various IT services and solutions such as infrastructure solutions, digital business solutions and consulting solutions.

Products and Services

3C IT Solutions & Telecoms (India) Limited delivers a comprehensive suite of IT services across three core verticals: Infrastructure Solutions, Digital Business Solutions, and Consulting Solutions, with cloud enablement and cybersecurity built into each layer to ensure scalable, secure, and future-proof technology environments.

1. Infrastructure Solutions

Our infrastructure solutions are designed to optimize the performance, reliability, and security of enterprise IT environments. With cloud-readiness and embedded cybersecurity as foundational elements, we help clients modernize their infrastructure for agility and resilience.

• End User and Device Configuration: Seamless device rollout with cloud-based configuration management and endpoint security integration.

• Data Protection: Solutions include encrypted backups, disaster recovery on cloud platforms, and advanced threat detection for data integrity.

• Computer Accessories: Provisioning of secure, compliant peripherals to support enterprise hardware with cloud-compatible management systems.

• Networking Solutions: Secure network architectures designed for hybrid cloud environments, with built-in firewall and intrusion prevention systems.

• IT Security Solutions: Cybersecurity is embedded into network and device layers, offering protection through centralized monitoring, access control, and cloud-based security intelligence.

• Audio-Video Solutions: Encrypted video conferencing and collaboration systems, integrated with secure cloud platforms for remote work scenarios.

These infrastructure services are aligned with best practices in cybersecurity and cloud infrastructure design, enabling organizations to build robust digital foundations.

2. Digital Business Solutions

Our Digital Business Solutions help clients drive innovation and operational efficiency through secure digital transformation initiatives. We integrate cloud technologies and cybersecurity frameworks across all digital engagements.

• Digital Transformation: We support digital migration strategies that combine cloud-first approaches with secure architecture and compliance protocols.

• Cloud Solutions: Tailored cloud adoption strategies across public, private, and hybrid platforms, ensuring secure migration, identity management, and workload protection.

• IoT Integration: Deployment and integration of IoT solutions with cloud-based analytics, fortified by end- to-end security controls for device management, data encryption, and secure communications.

Digital transformation is executed through secure, scalable cloud platforms, ensuring data privacy, regulatory compliance, and protection against evolving cyber threats.

3. Consulting Solutions

Our consulting practice provides clients with end-to-end guidance to align IT strategy with business goals, while emphasizing secure cloud adoption and cybersecurity posture enhancement.

• Strategic Consulting: Development of secure, cloud-centric technology strategies to enable digital growth and minimize security risks.

• Technology Consulting: Assessment and recommendation of cloud platforms and cybersecurity tools that align with client-specific risk tolerance and scalability needs.

• Process Optimization: Streamlining business operations with automation and cloud-based platforms, underpinned by regulatory-compliant cybersecurity frameworks such as ISO 27001, NIST, and CERT-IN.

Our consulting services help businesses leverage the full potential of modern technologies while managing cyber risk and ensuring data sovereignty.

Competitive Advantage

3C IT Solutions & Telecoms (India) Limited distinguishes itself by delivering secure-by-design, cloud-enabled IT services that address the modern enterprises need for scalability and protection.

Our competitive edge lies in:

• End-to-End Delivery: Integrated service offerings spanning infrastructure, applications, and security—built on hybrid cloud foundations.

• Built-in Cybersecurity: Security is not an add-on; its embedded across every layer—from network and storage to applications and endpoints—enhanced with threat analytics and secure access controls.

• Cloud-First Approach: All solutions are architected with cloud compatibility, enabling clients to scale operations while ensuring data security and compliance.

• Strategic Alliances: Partnerships with top-tier cloud (e.g., AWS, Microsoft Azure) and cybersecurity providers (e.g., Fortinet, Palo Alto, Sophos) strengthen our ability to deliver cutting-edge, compliant solutions.

• Continuous Innovation: Investment in AI-enabled cybersecurity, cloud-native development, and automation helps clients stay ahead of evolving threats and market demands.

By embedding cloud and cybersecurity into all our services, we provide clients with the confidence to innovate securely and efficiently.

Favorable Market Opportunities

The ongoing digitization of industries and regulatory emphasis on data security have created strong growth tailwinds for companies like 3C IT Solutions.

• The acceleration of cloud adoption across sectors—including BFSI, healthcare, retail, and manufacturing— drives demand for secure cloud infrastructure, migration services, and managed cloud operations.

• The rise in cybersecurity risks and compliance mandates (e.g., GDPR, DPDP, HIPAA) is pushing businesses to invest in integrated security solutions, creating long-term opportunities for our cybersecurity- embedded offerings.

• Hybrid cloud infrastructure, coupled with secure remote work enablement, positions our integrated solutions as essential for modern business continuity planning.

• Emerging markets like India, Southeast Asia, and the Middle East are seeing a surge in secure digital infrastructure investments, where our presence and expertise align well with government and enterprise needs.

As organizations seek digital maturity, our blend of cloud readiness and cybersecurity assurance positions us as a preferred technology partner.

Potential Threats to the Company

While the company is well-positioned, several challenges need to be actively managed:

1. Cybersecurity Threats

• Increasingly sophisticated cyberattacks (ransomware, phishing, zero-day exploits) require ongoing investment in defense, detection, and response systems.

• Evolving compliance standards necessitate continuous security audits, certifications, and policy enforcement—especially for multi-cloud environments.

2. Competitive Pressure

• The commoditization of cloud and security services could lead to price pressure.

• Competitors offering bundled cloud-security platforms may undercut on cost or scale faster.

3. Economic and Regulatory Risks

• Budget cuts in IT spending during economic downturns may delay cloud transformation projects.

• New data protection regulations may impact how we design and manage cloud infrastructure and cybersecurity operations.

4. Technological Change

• Rapid innovation in cloud-native security tools, like Zero Trust Architecture or Secure Access Service Edge (SASE), may outpace our internal adoption curve.

• Integration of legacy systems with modern cloud applications poses risks around data integrity and access control.

5. Process & Tools Challenges

• New platforms and tools for cloud monitoring and cybersecurity analytics require continuous training and integration.

• Reliance on third-party cloud/security tools may introduce operational risk if vendor roadmaps or support change unexpectedly.

6. Talent & Retention

• The demand for cloud architects, DevSecOps engineers, and cybersecurity analysts continues to outstrip supply.

• Retaining top talent in niche areas like cloud security is critical for delivering complex projects on time d maintaining competitive differentiation.

Financial Performance

3C IT Solutions & Telecoms (India) Limited delivered a resilient performance in the fiscal year ending March 2025, marked by strong revenue growth despite a challenging macroeconomic environment. The companys total income increased by approximately 21.8%, rising from ^30.22 crores in FY 2024 to ^36.80 crores in FY 2025. This growth was largely driven by a healthy rise in revenue from operations, which increased from ^29.84 crores to ^36.51 crores—reflecting the continued demand for the companys services and successful client engagements. While expenses also rose—from ^29.98 crores to ^36.68 crores—due to higher purchases of stock-in-trade and increased investment in human capital, the company managed to maintain operational stability. Key strategic investments were made in workforce expansion and service delivery capabilities to support future growth. Notably, depreciation and finance costs declined year-on-year, indicating more efficient asset utilization and improved financial management.

The company reported a profit before tax of ^12.16 lakhs in FY 2025, and although it recorded a net loss of Rs. 5.70 lakhs due to a deferred tax adjustment, this was primarily an accounting impact rather than an operational one. In contrast, FY 2024 had benefited from a tax credit of Rs. 9.67 lakhs. Excluding these tax-related effects, the business demonstrated steady underlying performance.

Despite short-term profitability pressures, 3C IT Solutions remains firmly focused on its long-term objectives. With continued investments in technology, service innovation, and client experience, the company is well-positioned to enhance operational efficiencies and return to sustainable profitability. The management remains confident in the companys strategic direction and its ability to create long-term value for stakeholders.

Key Financial Ratios:

Ratio	Particulars	Ratio as on	Ratio as on	% Variance	Reason for change exceeding 25%
	Description	For the year ended March 31, 2025	For the year ended March 31, 2024
Current Ratio	Measures a companys ability to pay short-term obligations or those due within one year.	6.01	1.54	291.34%	The ratio has increased significantly as compared to previous year, primarily due to a reduction in current liabilities particularly borrowings, resulting in an improved liquidity position.
Debt- Equity Ratio	Compares a companys total liabilities to its shareholder equity and can be used to evaluate how much leverage a company is using.	0.04	1.23	-96.42%	The ratio has decreased as compared to the previous year, mainly due to a reduction in borrowings and a coresponding increase in shareholders equity, resulting in a lower proportion of debt in the capital structure.
Debt Service Coverage Ratio	It indicates the ability of the company to service its Debt obligations, both principal and interest, from earnings generated from its operations.	3.55	0.74	378.71 %	The Company has repaid debts during the Current year leading to a reduction Interest cost & Decrease in Net profit before tax due to which reduction in the ratio.
Return on Equity Ratio	It is a measure of financial performance calculated by dividing net income by shareholders equity.	-0.00	0.03	115.19%	The ratio has decreased as compared to previous year, primarily due to decrease in profitability during the year along with an increase in the Average Shareholders Equity base, resulting in a lower return on equity.
Inventory turnover ratio	It is the rate that inventory stock is sold, or used, and replaced.	6.67	2.28	1 92.90%	The ratio has increased as compared to the previous year, primarily due to a reduction in average inventory held during the year, resulting in improved efficiency in inventory utilisation.
Trade Receivables turnover ratio	It is a measure that quantifies a companys effectiveness in collecting its accounts receivable.	4.49	3.49	28.67%	The increase in ratio is primarily on account of improved collection efficiency in the Current year resulting in a reduction in the Average Trade Receivables outstanding during the year.
Trade payables turnover ratio	It measures the average number of times a company pays its creditors over an accounting period.	8.48	2.09	3 06.07%	Increase in credit Purchases & Reduction in trade payable leading to increase in trade payable turnover ratio.
Net capital turnover ratio	It calculates how efficiently a company uses working capital to generate sales.	4.29	3.13	3 7.2 1 %	The increase in ratio is primarily due to a reduction in average current assets, particularly trade receivables and inventories, during the year, while revenue from operations has increased. This has resulted in lower average working capital employed, thereby improving net capital turnover ratio.
Net profit ratio	It measures how much net income or profit is generated as a percentage of revenue.	-0.0015	0.0041	137.55%	The ratio has decreased as compared to the previous year, primarily due to a declines in net profit margins on account of higher operating expenses, which reduced the overall profitability in relation to revenue from operations.
Return on Capital employed	It measures the companys profitability after factoring in the capital used to achieve that profitability.	0.05	0.26	-8 0.17%	The ratio has decreased as compared to the previous year, primarily due to a decline in EBIT during the year, on account of lower margins and increased expenses, which has reduced the return generated on the capital employed.

3C IT Plans to Improve Net Profit Margins

3C IT Solutions & Telecoms (India) Limited showed a resilient performance during the fiscal year ending March 2025, achieving a notable revenue growth of approximately 21.8%, with total income increasing from ^30.22 crores in FY 2024 to ^36.80 crores in FY 2025. This strong top-line growth reflects the companys continued ability to adapt to evolving client needs and regain momentum following a period of market volatility.

However, the year was not without challenges. The company reported a net loss of Rs. 5.70 lakhs in FY 2025, compared to a net profit of ^12.46 lakhs in FY 2024. This decline in bottom-line performance was primarily due to a deferred tax expense of ^17.86 lakhs, which was an accounting adjustment rather than a reflection of operational weakness. Operating performance remained stable, with a profit before tax of ^12.16 lakhs, supported by controlled operating expenses and reduced finance costs, indicating better debt management.

The company significantly improved its capital structure, reducing total liabilities by over Rs. 6.6 crores, and increased shareholders equity nearly threefold, showcasing a stronger financial foundation. Key liquidity and solvency ratios such as the Debt-Equity Ratio (down to 0.12) and DSCR (up to 0.74) reflect this improved financial health.

Despite short-term profitability pressures, 3C IT Solutions continues to focus on enhancing operational efficiency, investing in cutting-edge technology, and expanding its digital offerings. These strategic initiatives are aimed at improving net profit margins and achieving sustainable long-term growth. The management remains optimistic that, with these steps, the company is well-positioned to enhance shareholder value and strengthen its competitive position in the Indian IT and telecom services market.

Risk Management Framework:

3C IT SOLUTIONS &TELECOMS (INDIA) LIMITED employs a robust risk management framework to bolster its risk identification, assessment, mitigation and reporting methodologies. The organisations specialised risk management committee assumes the onus of discerning, appraising and formulating strategies to alleviate potential risks. The encompassing risk landscape of the Company comprises the subsequent components.

Risk Category	Description	Mitigation Strategies
Operational Risks	Risks related to day-to-day operations, including system failures and process inefficiencies.	- Implement robust monitoring and maintenance protocols. Regularly update and patch systems. Conduct periodic audits.
Financial Risks	Risks associated with financial performance, including revenue fluctuations and cost overruns.	- Diversify revenue streams. Implement strict budget controls. Regular financial reviews and audits.
Cybersecurity Risks	Risks related to data breaches, cyberattacks, and other security threats.	- Deploy advanced cybersecurity measures. Conduct regular security training for employees. Implement incident response plans.
Compliance Risks	Risks related to non-compliance with laws, regulations, and industry standards.	- Stay updated with regulatory changes Conduct regular compliance audits. Implement compliance management systems.
Market Risks	Risks arise from market competition, economic fluctuations, and changing customer demands.	- Conduct market research and trend analysis. Diversify product and service offerings. Develop strategic partnerships.
Technological Risks	Risks associated with rapid technological changes and obsolescence.	- Invest in R&D and continuous learning. Adopt flexible and scalable technologies. Maintain a technology roadmap.
Human Resource Risks	Risks related to talent acquisition, retention, and employee performance.	- Offer competitive compensation and benefits. Invest in employee training and development. Foster a positive work culture.
Supply Chain Risks	Risks related to disruptions in the supply chain, including vendor reliability.	- Develop strong relationships with multiple suppliers. Implement supply chain monitoring systems. Maintain inventory buffers.

Internal Controls and Their Adequacies of 3C IT Solutions

3C IT Solutions & Telecoms (India) Limited has established a robust internal control framework to ensure the integrity of its financial reporting, compliance with regulations, and operational efficiency. Heres an overview of the key components and their adequacies:

Component	Description	Adequacy
Control Environment	Establishes the importance of integrity and ethical values within the organization.	Adequate, with a strong tone at the top, clear ethical guidelines, and a commitment to integrity
Risk Assessment	Identifies and analyzes risks that could prevent the achievement of objectives.	Adequate, with regular risk assessments, documentation, and mitigation measures
Control Activities	Policies and procedures that help ensure management directives are carried out.	Adequate, with well-defined procedures, segregation of duties, and regular reviews
Information and Communication	Ensures relevant information is identified, captured, and communicated in a timely manner.	Adequate, with effective communication channels and timely dissemination of information
Monitoring	Ongoing evaluations to ensure controls are working as intended.	Adequate, with regular internal audits, continuous monitoring, and corrective actions

Cautionary Statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward looking statements within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic & overseas markets in which the Company operates, changes in Government regulations, tax laws & other statutes and other incidental factors.

For and on behalf of Board of Directors of
3C IT Solutions & Telecoms (India) Limited
(Formerly known as 3C IT Solutions & Telecoms (India) Private Limited)
Sd/-	Sd/-
Authorized Signatory	Authorized Signatory
Name: Ranjit Kulladhaja Mayengbam	Name: Gangarani Devi Mayengbam
Designation: Managing Director	Designation: Director & Chief Financial Officer
DIN:06929013	DIN:07093162
Address: Flat no. 302, Tiara-A, Palace Orchard Society,	Address: Flat no. 302, Tiara-A, Palace Orchard
Undri, Pune, Maharashtra - 411060	Society, Undri, Pune, Maharashtra - 411060.
Date: 03rd September, 2025
Place: Pune