Adjia Technologies Ltd Management Discussions

OVERVIEW

INDUSTRY STRUCTURE AND DEVELOPMENT

The Augmented Reality (AR), Virtual Reality (VR), and immersive 360? technology industry has witnessed significant growth over recent years, driven by rapid advancements in hardware, increased enterprise adoption, and rising demand for experiential customer engagement. These technologies are now being increasingly deployed across diverse sectors including education, healthcare, real estate, manufacturing, retail, and entertainment.

With increasing digital transformation and the evolution of Web 3.0 and the metaverse, AR/VR solutions are no longer confined to niche use cases. Businesses across the globe are adopting immersive solutions to enhance visualization, training, simulation, and customer experience. The Indian market, in particular, is emerging as a high-potential landscape for AR/VR adoption due to favorable demographics, rising internet penetration, and supportive government initiatives toward digitalization and Industry 4.0.

The AR/VR industry is expected to grow exponentially, supported by falling hardware costs, improved accessibility, and innovation in software development. As businesses strive to gain a competitive edge, immersive technologies are set to become mainstream tools for marketing, learning, design, and remote collaboration.

Our company, with its focus on delivering cutting-edge AR, VR, and 360? solutions, is strategically positioned to capitalize on the growing demand and evolving use cases in this dynamic industry landscape.

OPPORTUNITIES AND OUTLOOK

The future of immersive technologies presents vast opportunities as businesses increasingly recognize the value of Augmented Reality (AR), Virtual Reality (VR), and 360? solutions in enhancing engagement, efficiency, and customer experience. The ongoing shift toward digital-first strategies, combined with increased adoption of virtual platforms for training, marketing, education, and product demonstrations, has created significant growth avenues for companies operating in this space.

Rising demand for personalized and immersive brand experiences provides a fertile ground for innovative AR/VR applications across industries. Furthermore, as organizations explore hybrid work models, virtual collaboration and simulation tools are gaining prominence — opening new possibilities for enterprise-focused AR/VR deployments.

Government initiatives promoting digitalization, smart cities, and Industry 4.0 further strengthen the adoption ecosystem for immersive technologies in India. With emerging sectors such as virtual tourism, immersive learning, remote healthcare, and interactive retail, the demand for customized AR/VR/360? experiences is expected to rise consistently.

Looking ahead, the Company is optimistic about its growth trajectory and aims to leverage its technological expertise and creative capabilities to tap into emerging opportunities. By staying at the forefront of innovation and delivering industryleading solutions, the Company intends to solidify its market presence and drive sustainable value creation for all stakeholders.

Opportunities:

• Growing demand for immersive customer experiences across industries such as retail, real estate, education, and healthcare.

• Increasing adoption of AR/VR solutions by enterprises for training, product visualization, and remote collaboration.

• Government push toward digital transformation and Industry 4.0 initiatives, especially in smart cities and education.

• Technological advancements in AR/VR hardware and software improving accessibility and affordability.

• Rising interest in the metaverse and virtual environments creating new business avenues for immersive content and applications.

RISKS AND THREATS Risks:

• Rapid Technological Changes: Constant innovation in AR/VR tech may require frequent upgrades to remain competitive.

• High Dependency on Niche Markets: Limited mainstream adoption in certain industries can impact revenue consistency.

• Cybersecurity and Data Privacy: Immersive solutions often process user data, posing potential privacy and security risks.

• Intense Market Competition: Increasing number of startups and global players entering the AR/VR space may impact margins.

• Economic Slowdowns: Budget constraints during economic downturns may lead clients to defer tech-based investments.

Threats:

• Emerging Competition: Entry of new domestic and international players with advanced capabilities could erode market share.

• Technology Obsolescence: Fast-paced innovation in AR/VR may render existing solutions outdated if not upgraded timely.

• Client Budget Constraints: Delayed decision-making or reduced technology budgets by clients can impact project pipelines.

• Lack of Standardization: Absence of universal standards in AR/VR development may hinder integration and scalability.

• Skilled Talent Shortage: Difficulty in acquiring and retaining specialized talent in AR/VR development may affect execution capacity.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains an adequate and effective Internal Control System, equivalent with its size and complexity. It believes that these systems provide, among other things, a reasonable assurance that transactions are executed with management authorization. It also ensures that they are recorded in all material respects to permit preparation of financial statements in conformity with established accounting principles, along with the assets of the Company being adequately safeguarded against significant misuse or loss. This is supplemented through an extensive internal audit programme and periodic review by the management and the Audit Committee.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Companys financial performance for the year ended March 31, 2025 is summarized below:

(Rs. In Lakhs)

Particulars	Financial Year ended
	March 31, 2025	March 31, 2024
Revenue from Operations	23.90	33.00
Other Income	0.13	0.06
Total Income	24.03	33.06
Total Expenses	32.20	25.21
Profit/(loss) before Tax (EBT)	(8.17)	7.85
Provision for Income Tax
(i) Current Tax	-	-
(ii) Deferred Tax	(8.17)	(0.72)
(iii) Tax of Earlier Year	-	-
Net Profit/(Loss) After Tax	5.35	7.13

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

The Companys relations with the employees continued to be cordial and harmonious with its employees. It considers manpower as its assets and that people had been driving force for growth and expansion of the Company. The Company acknowledge that its principal assets is it employees. The Company has continued its efforts in building a diverse and inclusive workforce. The total number of employees on roll in the Company as on March 31, 2025 is 1. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.

KEY FINANCIAL RATIOS

The Key Financial Ratios during Financial Year 2025 vis-a-vis Financial Year 2024 are as below:

Sr. No. Particulars	Financial Year		Variation (%)	Reasons for Variation more than 25%
	2025	2024
1 Current Ratio	9.22	9.07	1.65%	In FY 2024-25, due to improved operational efficiency and reduction in expenses, the Net Profit Ratio has increased as compared to FY 2023-24
2 Debt-Equity Ratio	0.02	0.02	0.00%	-
3 Debt Service Coverage Ratio	-	-	0.00%	-
4 Return on Equity Ratio	2.39%	3.28%	(27.13%)	In FY 24-25, Due to decrease in revenue, return on equity decreased (i.e. profit during the year)
5 Inventory turnover ratio	N/A	N/A	N/A	-
6 Trade Receivables turnover ratio	0.70	1.63	(57.06%)	In FY 24-25, Due to decrease in revenue and increase in trade receivable, We can see huge impact on ratio.
7 Trade payables turnover ratio	17.62	10.20	72.75%	In FY 24-25, Variation arise, due to increase in other expenses during Current year
8 Net capital turnover ratio	0.24	0.40	(40.00%)	In FY 24-25, Due to decrease in revenue, we can see change in ratio.
9 Net profit ratio	22.38%	21.61%	3.56%	In FY 2024-25, due to improved operational efficiency and reduction in expenses, the Net Profit Ratio has increased as compared to FY 2023-24
10 Return on Capital employed	(5.07%)	4.64%	(209.27%)	In FY 24-25, Due to decrease in revenue and profit, earning for Equity shareholder has decreased (i.e. profit during the year)
11 Return on investment	N/A	N/A	N/A	-

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 the current financial year declined compared to the previous year, primarily due to lower net profits. The decline in profitability was mainly on account of reduced sales and overall lower operating performance during the year.

ENVIRONMENT, HEALTH & SAFETY (EHS)

The Company commits to ethical and sustainable operation in all business activities. Company maintains and implements an Environmental Management System (EMS) for meeting the purpose of organizations policy and objectives regarding environment. The aims of the system is use of processes, practices, techniques, materials, products, services or energy to

avoid, reduce or control the creation, emission or discharge of any type of pollutant or waste, in order to reduce adverse environmental impacts. Adequate Occupational Health & Safety Management System is adopted by the Company for ensuring the conformance to the Occupational Health & Safety Management System, legal & statutory requirements, continual improvement and satisfaction of interested parties (i.e. customers, suppliers, employees and public).

DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standard: our company has followed all required accounting standards also disclosed significant accounting policy. Financial statements include balance sheet, profit and loss, cash flow statement with schedules/Notes.

DECLARATION SIGNED BY THE CHIEF EXECUTIVE OFFICER STATING THAT THE MEMBERS OF BOARD OF DIRECTORS AND SENIOR MANAGEMENT PERSONNEL HAVE AFFIRMED COMPLIANCE WITH THE CODE OF CONDUCT OF BOARD OF DIRECTORS AND SENIOR MANAGEMENT

Since, our Company falls in the ambit of SME Listed entity; hence compliance with the provisions of declaration signed by the chief executive officer stating that the members of board of directors and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2024-25.

COMPLIANCE CERTIFICATE FROM EITHER THE AUDITORS OR PRACTICING COMPANY SECRETARIES REGARDING COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE

Since, our Company falls in the ambit of SME Listed entity; hence compliance with the provisions of Compliance certificate from either the auditors or practicing company secretaries regarding compliance of conditions of corporate governance shall not apply to the Company and it does not form the part of the Annual Report for the financial year 2024-25.

DISCLOSURES WITH RESPECT TO DEMAT SUSPENSE ACCOUNT/ UNCLAIMED SUSPENSE ACCOUNT

During the year under review there are no shares in the DEMAT suspense account or unclaimed suspense account, hence this provision is not applicable.

DISCLOSURE OF CERTAIN TYPES OF AGREEMENTS BINDING LISTED ENTITIES (1) INFORMATION DISCLOSED UNDER CLAUSE 5A OF PARAGRAPH A OF PART A OF SCHEDULE III OF THESE REGULATIONS

During the year under review the Company has not executed certain types of agreements binding listed entities as required to be disclosed under clause 5A of paragraph A of Part A of schedule III of the Listing Obligations and Regulations Act, 2015.

CAUTIONARY STATEMENT

Statement in this report describing the Company s objectives projections estimates and expectation may constitute “forward looking statement” within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumption and expectations of future events. These Statements are subject to certain risk and uncertainties. The Company cannot guarantee that these assumption and expectations are accurate or will be realized. The actual results may different from those expressed or implied since the Companys operations are affected by many external and internal factors which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments information or events.

Registered office:	For and on behalf of Board of Directors
A 1039 & 1040, Money Plant, High Street,	Adjia Technologies Limited
Near Ganesh Glory-11, Jagatpur, Dascroi, Ahmedabad, Gujarat, India- 382470	Sd-	Sd-
Date: September 04, 2025	Roshan Kumar Rawal	Tulsiram Rawal
	Managing Director & CFO	Non-Executive Director
	DIN: 08658054	DIN:08658055