Aion-Tech Solutions Ltd Management Discussions

MANAGEMENT DISCUSSION ANALYSIS AND BUSINESS OUTLOOK

(This review contains Managements discussion of the Companys operational results and financial condition and should be read in conjunction with the accompanying audited financial statements and associated notes).

Industry Structure, Development and Outlook Global Economy:

In FY 2025-26, the global economy is expected to maintain steady but moderate growth, with the IMF projecting a 3.0% expansion in 2025, slightly lower than the previous years performance. Growth remains uneven across regions, shaped by evolving trade policies, inflation dynamics, and geopolitical uncertainties.

The U.S. economy continues to show resilience, supported by consumer spending, services growth, and a strong labor market, although high interest rates and fiscal tightening are beginning to moderate corporate earnings growth. Europe is navigating sluggish demand and structural headwinds, with Germany still grappling with weak manufacturing activity and energy-transition pressures. China is projected to grow at around 4.5%-4.8%, as government stimulus measures attempt to offset the slowdown in real estate and industrial overcapacity.

Emerging markets remain the engine of global expansion, with GDP growth estimated at 4.0%-4.2%, far outpacing advanced economies (projected at ~1.7%). Robust domestic demand, infrastructure investment, and digital transformation continue to drive their momentum.

Global inflation has eased further, with the IMF expecting headline inflation to fall from 5.7% in 2024 to around 4.5% in 2025, approaching pre-pandemic levels. Proactive monetary policy by central banks, a more stable energy supply, and softening commodity prices have been instrumental in anchoring price stability.

Alongside these macroeconomic shifts, major technology firms worldwide are doubling down on sustainability, AI adoption, and cybersecurity as long-term value drivers. Managing environmental impact and ensuring data security have become not just compliance imperatives but also competitive differentiators.

With these dynamics, the global IT and digital services industry is positioned for sustained growth and transformation over the next five years.

Increasing demand for Al-driven automation, data analytics, and secure cloud solutions is reshaping client priorities. By combining our industry expertise with the technical capabilities of our delivery teams and leveraging our products, platforms, and partnerships, the Company remains well-placed to capture emerging opportunities, stay ahead of industry shifts, and deliver value to our stakeholders.

Indian Economy:

India continues to strengthen its position as one of the fastest-growing major economies globally, with GDP growth projected at 6.4%-6.5% in FY 2025-26, according to the IMF and the Reserve Bank of India. The country remains firmly on track to becoming the worlds third-largest economy in the coming years, driven by robust domestic demand, strong government-led infrastructure investment, and the growing adoption of digital technologies across sectors.

Key macroeconomic indicators remain supportive: the real investment rate is steady at ~33%, the current account deficit is narrowing, and foreign exchange reserves remain healthy, providing resilience against external shocks. Inflation has eased significantly, falling within the Reserve Banks target range, creating room for sustained consumption growth.

Indias demographic dividend continues to be a major growth enabler, with a young workforce fueling consumption and driving innovation. Government initiatives such as the "Aatmanirbhar Bharat" vision, the India AI Mission, and Production-Linked Incentive (PLI) schemes are supporting manufacturing, technology, and renewable energy sectors.

At the same time, India has navigated external headwinds such as global trade uncertainties, elevated geopolitical risks, and supply chain disruptions better than many advanced economies. The recent sovereign credit rating upgrade by S&P to BBB (August 2025) reflects global confidence in Indias growth resilience and fiscal consolidation efforts.

Looking ahead, sustaining momentum will require addressing challenges such as job creation, skill development, and infrastructure bottlenecks, while also ensuring inclusive growth. Nonetheless, the Indian economy is poised to remain a key driver of global expansion in FY 2025-26 and beyond, supported by its structural strengths and policy reforms.

General Outlook:

In FY 2025-26, the Indian economy is projected to maintain its position as the fastest-growing major economy, with GDP growth estimated at 6.4%-6.5%, according to the IMF and RBI. This strong performance comes despite a challenging global environment marked by slower world trade, tariff uncertainties, and geopolitical tensions.

Inflation is expected to remain benign, averaging between 3.1%-3.7%, comfortably within the Reserve Bank of Indias target band, aided by easing commodity prices and stable food supply conditions. The governments continued emphasis on fiscal prudence and consolidation is expected to strengthen macroeconomic stability.

Exports are anticipated to improve, led by engineering goods, electronics, and petroleum products, though external demand volatility remains a risk. Meanwhile, domestic consumption and infrastructure investment will remain the primary growth drivers, supported by urban demand recovery, rural consumption revival, and continued government capital expenditure.

Government initiatives such as "Aatmanirbhar Bharat," the IndiaAI Mission, PLI schemes, and accelerated renewable energy adoption will play a critical role in enhancing productivity and fostering innovation. The recent sovereign rating upgrade by S&P is also expected to boost investor sentiment and attract greater foreign inflows.

Challenges remain in the form of job creation, skilling, and bridging infrastructure gaps, but the overall macroeconomic trajectory is firmly positive. With strong fundamentals, demographic advantages, and sustained policy support, India is set to retain its status as the fastest-growing large economy in FY 2025-26, reinforcing its path toward becoming the worlds third-largest economy.

What Lies Ahead?

Indias economy is set to continue its robust growth in FY 2025-26, with GDP projected at 6.4%-6.5%, supported by resilient domestic demand, sustained government infrastructure spending, and strong services sector performance. Manufacturing activity is expected to gain further traction, driven by Production-Linked Incentive (PLI) schemes, digital adoption, and global supply chain diversification.

Key growth sectors include technology, financial services, pharmaceuticals, electric mobility, and renewable energy, all benefiting from supportive policies and rising domestic and export demand. The India. AI Mission and accelerated digital infrastructure rollout will provide further momentum to the technology and innovation ecosystem.

While the outlook remains positive, external challenges such as global trade headwinds, tariff uncertainties, and geopolitical risks could weigh on exports and investment sentiment. On the domestic front, ensuring job creation, workforce upskilling, and addressing infrastructure gaps will be vital to sustain inclusive growth.

Importantly, inflation has eased significantly, remaining within the Reserve Bank of Indias comfort band, and Indias sovereign credit rating was upgraded by S&P to BBB in August 2025, the first upgrade in 18 years. This reflects growing confidence in the countrys fiscal consolidation and structural growth resilience.

Overall, Indias economic landscape in FY 2025-26 is marked by stability, strong fundamentals, and policy-driven momentum, reinforcing its trajectory toward becoming the worlds third-largest economy in the coming years.

Outlook for Data Analytics, Business Intelligence (BI), AI, ML and NLP in India (FY 2025 - 26):

1. Data Analytics and Business Intelligence (BI):

Growth Prospects: The Indian Data Analytics and BI market is projected to expand at a CAGR of 18-22% over the next three to five years, supported by strong demand for real-time insights, self-service analytics, and predictive modeling. Adoption is accelerating across banking, healthcare, retail, manufacturing, and government services, with enterprises increasingly shifting to cloud-based and augmented analytics platforms.

2. Artificial Intelligence (AI) and Machine Learning (ML)

Growth Prospects: The AI and ML market in India is expected to grow at a CAGR of 28-32% during FY 2025-26 and beyond. These technologies are being embedded into critical processes such as risk management, supply chain optimization, customer experience personalization, fraud detection, and predictive maintenance. The IndiaAI Mission, backed by $1.2 billion in government investment, is accelerating AI adoption across public and private sectors.

3. Natural Language Processing (NLP)

Growth Prospects: NLP adoption in India is forecast to grow at a CAGR of 22-27%, with increasing use in customer service, BFSI, healthcare, and e-commerce. Applications include AI- driven chatbots, sentiment analysis, multilingual support, automated compliance, and clinical documentation. Healthcare providers are increasingly leveraging NLP for diagnostic support and patient record management, enhancing care delivery efficiency.

Overall Outlook:

The Data Analytics, BI, AI, ML, and NLP sectors in India are entering a phase of scaled adoption, driven by rapid digital transformation, enterprise cloud migration, and strong policy support. Demand is shifting from experimental pilots to enterprise-wide deployments with measurable ROI, particularly in financial services, healthcare, retail, and manufacturing.

As organizations adopt AI-driven automation, augmented analytics, and advanced NLP tools, these technologies are expected to transform decision-making, boost productivity, and drive innovation. With government backing, private investment, and a maturing digital ecosystem, India is positioned to emerge as a global hub for advanced analytics and AI innovation in FY 2025-26 and beyond.

Economic Outlook for India (FY 2025 - 26)

GDP Growth: Indias GDP growth for FY 2025-26 is projected at 6.4%-6.5%, according to the Reserve Bank of India and IMF estimates, reaffirming its position as the fastest-growing major economy. Growth will be driven by resilient domestic consumption, strong services sector performance, continued government-led infrastructure spending, and rising private sector investment. The Production-Linked Incentive (PLI) schemes and expanding digital economy are expected to further boost industrial and manufacturing growth.

Inflation and Fiscal Deficit: Inflation has eased significantly and is expected to remain within the 3.1%-3.7% range, comfortably below the RBIs upper tolerance limit. This moderation is supported by stable commodity prices, robust agricultural output, and effective monetary management. On the fiscal side, the government remains committed to consolidation, with the fiscal deficit expected to improve further, potentially nearing 5.1%-5.3% of GDP, aided by buoyant tax collections and disciplined expenditure management.

Global Influence: Indias economic trajectory will continue to be shaped by global trade dynamics, evolving tariff policies, and geopolitical developments. Monetary tightening in advanced economies, energy market volatility, and external demand conditions remain key variables. However, the recent sovereign credit rating upgrade by S&P to BBB reflects international confidence in Indias fiscal and economic resilience. If external uncertainties ease, Indias growth momentum could surpass projections, providing additional upside to the outlook.

Trends in Data Analytics, Business Intelligence, and AI (FY 2025-26):

AI & Machine Learning (ML): In FY 2025-26, AI and ML will become deeply integrated into enterprise workflows, moving from pilot projects to scaled deployments. Predictive analytics, generative AI applications, and AI-driven automation will be central to supply chain resilience, financial forecasting, and customer experience personalization. Increasingly, companies will launch AI-powered products and domain-specific solutions, creating measurable business impact.

Natural Language Processing (NLP): NLP capabilities are advancing toward multilingual, context-aware, and industry-specific solutions. Adoption is accelerating in customer engagement, compliance automation, healthcare diagnostics, and marketing analytics, with GenAI-powered assistants redefining conversational interfaces and customer interactions.

Data Storytelling & Visualization: Businesses will increasingly prioritize real-time visualization and narrative-driven dashboards to make complex insights accessible to decision-makers. The convergence of GenAI with BI platforms will enable automated insights and simplified data storytelling for executives and business users.

Augmented Analytics: Wider adoption of augmented analytics is expected across finance, healthcare, retail, and manufacturing, where real-time, AI-augmented decision-making is critical. These tools will empower frontline managers and analysts with faster, context-rich insights.

Cloud and Hybrid Analytics: The migration to cloud-native platforms will accelerate, with enterprises adopting hybrid and multi-cloud strategies to balance scalability, cost optimization, and regulatory compliance. Cloud-based analytics will also power AI/ML model deployment at scale.

Data Security & Governance: With the rollout of Indias Digital Personal Data Protection (DPDP) Act and global tightening of data laws, organizations will prioritize data governance, access control, encryption, and AI model risk management. Continuous monitoring and regulatory compliance will be embedded into analytics programs.

Democratization of Data: Self-service analytics will expand further, with intuitive platforms enabling non-technical employees to explore, visualize, and act on data. Organizations will focus on creating enterprise-wide data literacy and embedding analytics into day-to-day workflows, making decision-making more inclusive.

AI Market Growth Projections (FY 2025-26):

Global AI Market:

The global AI market is projected to maintain its rapid expansion, with estimates placing its value at around USD 1.2 trillion by FY 2025-26, supported by a CAGR of ~35-37%. Growth is being fueled by widespread adoption of generative AI, AI agents, and domain-specific AI solutions across industries such as financial services, healthcare, automotive, and manufacturing. Enterprises are moving beyond experimentation, embedding AI into core business processes, supply chains, and customer interactions.

AI in India:

Indias AI market is expected to grow at a robust pace, reaching USD 16-18 billion by 2027, driven by digital transformation initiatives, government support, and the IndiaAI Mission (USD 1.2 billion program). Adoption is strongest in banking, insurance, retail, healthcare, and manufacturing, with increasing deployment of AI for risk management, compliance automation, fraud detection, personalized customer experiences, and predictive maintenance.

AI Applications:

The most significant growth areas for AI adoption in FY 2025-26 include:

• Generative AI-powered assistants and copilots for customer service, software development, and knowledge management.

• AI-driven automation in operations, procurement, and supply chain optimization.

• Predictive analytics and forecasting models for financial services and retail.

• AI in healthcare, including clinical diagnostics, medical imaging, and patient engagement.

• Cybersecurity and fraud detection, with AI-enabled threat detection and real-time monitoring.

Industry-Specific Outlook (FY 2025-26):

1) Electric Vehicles (EVs):

The Indian EV market is set to expand rapidly in FY 2025-26, supported by strong government incentives, expanding charging infrastructure, and rising consumer adoption of two- and three-wheelers. Analytics will be increasingly critical for battery lifecycle management, smart charging optimization, energy efficiency, and fleet performance monitoring. As adoption scales, data-driven platforms will play a pivotal role in predictive maintenance and route optimization for commercial EV fleets.

2) Sustainability and Green Tech:

Sustainability has become a strategic priority for enterprises, driven by regulatory compliance, ESG commitments, and cost efficiencies. In FY 2025-26, businesses will invest more heavily in green technologies and carbon-reduction strategies. Analytics solutions will be central to energy optimization, carbon footprint tracking, resource efficiency, and reporting frameworks. Companies offering sustainability-driven platforms and digital twins will be well-positioned to support the transition toward greener operations.

3) Smart Grids:

With large-scale rollouts under the Revamped Distribution Sector Scheme (RDSS) and rising integration of renewable energy, Indias smart grid ecosystem will continue to expand. Utilities are investing in loT-enabled infrastructure, advanced metering, and big data analytics to reduce losses and enhance reliability. Advanced data management, real-time demand forecasting, and predictive grid analytics will be critical to support grid stability and integrate renewable sources effectively.

4) Healthcare & Life Sciences:

AI and analytics adoption in healthcare is accelerating, with applications in diagnostics, electronic health records, patient engagement, and drug discovery. NLP-driven clinical documentation and Al-assisted imaging solutions are enhancing efficiency and patient care. Analytics in supply chain visibility and real-world evidence (RWE) studies will also expand significantly.

5) Financial Services (FinTech & Banking):

The BFSI sector continues to lead in Al, ML, and advanced analytics adoption. Growth areas include fraud detection, risk modeling, credit scoring, compliance automation, customer personalization, and AI-powered financial assistants. The rapid rise of digital lending, payments, and neo-banking will create demand for scalable, secure, and real-time analytics platforms.

6) Manufacturing & Industry 4.0:

Manufacturing is witnessing a shift toward smart factories, predictive maintenance, digital twins, and loT-driven quality monitoring. Analytics will be pivotal in process optimization, demand forecasting, and supply chain resilience. AI-enabled visual inspection and robotics analytics will drive efficiency and cost competitiveness.

Opportunities, Threats, Risks, and Concerns

Indias technology sector continues to offer immense opportunities, particularly in the fields of data analytics, artificial intelligence, machine learning, and cloud-driven digital solutions. The acceleration of GenAI adoption, government initiatives such as the IndiaAI Mission, and rising enterprise investments in automation and advanced analytics are expected to create new avenues for growth. Increasing digital adoption across financial services, healthcare, retail, manufacturing, and public services will further drive demand for data-driven platforms and skilled talent.

At the same time, several risks and challenges remain. Data privacy, cybersecurity, and compliance with the evolving Digital Personal Data Protection (DPDP) Act present both operational and reputational risks. The rapid pace of technological change has heightened the urgency for continuous upskilling and workforce readiness, while global trade uncertainties and geopolitical tensions could impact investment flows and demand patterns.

The sector also faces the challenge of talent shortages in advanced areas such as AI engineering, NLP, data governance, and cloud-native development. In addition, as enterprises scale AI deployments, concerns related to model governance, ethical AI, and regulatory oversight are expected to intensify.

Navigating these headwinds while capitalizing on emerging opportunities will require organizations to focus on responsible AI adoption, strong data governance frameworks, proactive cybersecurity strategies, and sustained investments in talent development. Companies that successfully balance innovation with compliance and risk management will be best positioned to capture growth in FY 2025-26 and beyond.

Conclusion

Indias economic outlook for FY 2025-26 remains resilient and promising, with GDP growth projected at 6.4%-6.5%, inflation well within the Reserve Banks target band, and renewed global confidence following the recent sovereign credit rating upgrade. Robust domestic demand, government-led infrastructure spending, and strong momentum in technology-driven sectors will continue to underpin growth.

The Data Analytics, Business Intelligence, AI, ML, and NLP markets are poised for rapid expansion, moving from pilot projects to scaled enterprise adoption. These technologies are set to play a pivotal role in enhancing efficiency, driving innovation, and shaping Indias transition toward a digital-first economy. Key industries such as EVs, renewable energy, financial services, healthcare, and manufacturing will provide significant opportunities for growth and innovation.

At the same time, challenges such as global trade headwinds, evolving data protection regulations, cybersecurity threats, and the need for continuous talent upskilling must be addressed proactively. The balance between innovation and responsible governance will determine long-term success.

Overall, India enters FY 2025-26 with strong fundamentals, supportive policies, and a maturing digital ecosystem. While uncertainties remain, the opportunities far outweigh the risks. With strategic investments in technology, sustainability, and human capital, India is well-positioned to reinforce its role as a key driver of global economic growth and advance toward its vision of becoming the worlds third-largest economy in the coming years.

Data Source Appendix: FY 2025 - 26

Category	Source/Institution	Key Data/Insight Referenced
Global Economy	International Monetary Fund (IMF), World Economic Outlook Update, July 2025	Global GDP growth 3.0% (2025), 3.1% (2026); global inflation easing to ~4.5%.
	UNCTAD, World Investment Report 2025	Outlook on FDI flows, digital & climate- aligned investments.
India Economy	Reserve Bank of India (RBI)Monetary , Policy Committee Minutes, Aug 2025	GDP growth forecast at 6.5%; CPI projection 3.1-3.7%.
	IMF, World Economic Outlook Database, 2025	Indias GDP growth projected at ~6.4%.
	Standard & Poors (S&P), Sovereign Rating Report, Aug 2025	India sovereign rating upgraded to BBB (from BBB-).
Technology & Digital Outlook	McKinsey, State of AI2025 Survey least one	71% of organizations using GenAI in at function.
	NASSCOM, GenAI in India 2025 Report	3.7x increase in GenAI startups; adoption trends in India.
	Government of India, IndiaAI Mission (2024)	$1.2 billion investment in AI infrastructure and innovation.
	Market Research Future/Mordor Intelligence (2024-25)	Global Data Analytics & BI market: ~$82B (2025) ! $403B (2032), CAGR ~25.5%.
	Fortune Business Insights/Research & Markets	India Data Analytics CAGR ~35-36% (2025-2030).
	Precedence Research (2025)	NLP in Finance CAGR ~25%(2025-2035).
Industry-Specific Outlook	NITI Aayog, EV Roadmap 2030 (2025 update)	EV penetration target 30% by 2030; EV sales ~2.08M in 2024.
	Ministry of Power, Revamped Distribution Sector Scheme (RDSS), 2025	3 trillion investment outlay; 1.3 trillion sanctioned for smart metering.
	Central Electricity Authority (CEA), National Electricity Plan, 2025	~50% of installed capacity non-fossil; 500 GW renewable target by 2030.
	ET, Mint, Reuters (Aug 2025 reports)	Renewable energy execution bottlenecks and stranded projects.
Regulatory & Risks	MeitY, Draft Digital Personal Data Protection Rules, Jan 2025	DPDP Act compliance framework; data localization, consent, retention.
	CERT-In, Cybersecurity Guidelines, 2025	Incident reporting, risk management, sector advisories.
	Business Standard/Reuters, Aug 2025	Trade/tariff risks impacting exports and IT services.

Analysis of financial performance of the company:

There is a decrease of (4.69%) in Consolidated revenues for the current FY2024-25 i.e. INR889.00 Million as against the previous FY2023-24 revenue of INR932.76 Million due to the fact that 100% Equity stake in subsidiary company named Wowtruck Technologies Private Limited sold during the

year and the transaction completed on 3-October-2024. Also, there is an increase of 9.87% in the Standalone revenues for the Current FY2024-25 INR868.09 million as against of INR 790.08 million in the previous FY2023-24. The Consolidated Net Profit after Tax for the current FY2024-25 is INR 99.02 million, 10.73% against Consolidated Net (Loss) of INR (21.81) million, (2.31%) during the previous FY 2023-24. The Standalone Net Profit after Tax in the current FY 2024-25 INR148.13 million, 16.42% as against INR23.39 million, 2.91% in the previous FY 2023-24. The higher Net Proft in FY2024-25 (in both standalone and consolidated financials) is due to the fact that, the company earned Profit on Sale of part of Land for INR156.35 Million and earned INR5.29 Million profit on sale of 100% Equity stake in the Subsidiary company named Wowtruck Technologies Private Limited.

Segment-wise performance: In Standalone Financials, there is an increase of 16.13% in the revenue segment - Software License Sale in the current FY 2024-25 INR749.97 million in comparison to INR 645.79 million in the previous FY 2023-24. Also, in the revenue segment Information Technology/Software Services there is a decrease in revenue by (18.14%) i.e. in current FY 2024-25 INR118.12 million in comparison to INR144.29 million in previous FY 2023-24. Whereas in Consolidated Financials, there is an increase of 16.14% in revenue segment - Software License Sale in the current FY 2024-25 INR748.95 million in comparison to INR644.88 million in the previous FY 2023-24. In the consolidated Financials, India - Information Technology/Software Services segment there is a decrease of (18.14%) i.e. INR118.12 million in current FY 2024-25 in comparison to INR144.30 million in previous FY2023-24. There is a decrease in Goods Transport revenue in Consolidated Financials for (84.73%) due to fact that 100% Equity stake in Subsidiary company named Wowtruck Technologies Private Limited has been sold and the transaction completed on 3-October- 2024. Regarding segment profitability, in Standalone Financials segment profit for Information Technology/Software Services has decreased by (15.35%) i.e. in current FY2024-25 INR33.75 Million in comparison to INR39.87 Million in previous FY2023-24. The segment profit in Software Licenses Sale segment increased by 82.80% i.e. in current FY2024-25 INR19.03 million in comparison to INR 10.41 million in previous FY 2023-24. In Consolidated Financials, the India - Information Technology/Software Services segment profit decreased by (18.08%) to INR32.66 million in current FY2024-25 from INR39.87 million in the previous FY2023-24. Further, the Software License Sale segment profit has increased by 77.52% i.e. INR18.48 million in current FY2024-25 in comparison to INR10.41 million in previous FY2023-24.

During the current financial year 2024-25 the Company sold 100% of the Equity Capital of Wowtruck Technologies Private Limited for a total purchase consideration of INR 85.29 and the transaction completed on 3-October-2024.

Liquidity and capital resources:

In the Consolidated Financials secured loans as at 31-March-2025 stood at INR23.56 Million as against INR95.47 million as at the previous financial year end 31-March-2024. In the Standalone Financials secured loans as at 31-March-2025 stood at INR23.56 Million as against INR36.00 million as at the previous financial year end 31-March-2024.

The Companys ability to generate funds from operating activities, including product and service sales, equity funds and debt financing from its banks and others are expected to provide sufficient liquidity to meet current and future fund requirements.

Details of significant changes in key financial ratios:

Debtors Turnover: In Standalone Financials, this Ratio has increased from 3.95 in FY2023-24 to 4.25 in current FY2024-25. The increase in Debtors Turnover Ratio is 7.53% in comparison to previous FY. The increase in standalone financials is due to company strengthening its process to realize the Accounts Receivable (AR) particularly from the Sale of Software Licenses during the current financial year. Also in Consolidated Financials, this Ratio has increased from 3.75 in FY2023- 24 to 4.04 in current FY2024-25.

Interest Coverage Ratio: In Standalone Financials - Interest coverage ratio decreased to 19.08 in current FY2024-25 from 30.81 in previous FY2023-24. The percentage decrease is (38.08%) in comparison to the previous FY. This decrease is because the company has given discounts to the large sized Software License Sale orders resulting in decrease in margin on Software License Sale. In Consolidated Financials, this ratio has increased to 1.14 in current FY2024-25 from 0.60 in previous FY2023-24. The said increase is because sale 100% Equity State of loss making Subsidiary company named Wowtruck Technologies Private Limited on 03 October 2024. The increase in percentage is 90%.

Current Ratio: In Standalone Financials - Current Ratio increased to 2.22 in current FY2024-25 from 2.11 in previous FY2023-24. The said increase is 5.24% due to increase in the Other Bank Balances because of sale of companys part of Land situated at Cherlapally, Hyderabad and sale of 100% Equity Stake of subsidiary company named Wowtruck Technologies Private Limited. In Consolidated Financials, this ratio increased to 2.77 in current FY2024-25 from 2.28 in the previous FY2023-24. The said increase is 21.50% due to increase in the Other Bank Balances because of sale of companys part of Land situated at Cherlapally, Hyderabad and sale of 100% Equity Stake of subsidiary company named Wowtruck Technologies Private Limited.

Debt /Equity Ratio: In Standalone Financials - this Ratio has decreased by 46.66% to 0.06 in current FY2024-25 from 0.11 in the previous FY2023-24 because low utilization of Overdraft Credit facility. The utilization of Overdraft Credit facility stood at INR23.56 Million as on 31-March- 2025 as against a sanctioned limit of INR69.00 million. Also in Consolidated Financials, the same Ratio has decreased by 68.43% to 0.06 in Current FY2024-25 from 0.19 in the previous FY2023- 24.

Operating Profit Margin Ratio: In Standalone Financials - this Ratio has decreased by >100% to (0.47%) in current FY2024-25 from 2.24% in the previous FY2023-24. The said decrease in Standalone is due to decrease in margins in Software License Sale as the company has given discounts to the large sized Software License Sale orders. Also in Consolidated Financials, the same Ratio has decreased by >100% to (5.63%) in Current FY2024-25 from (2.47%) in the previous FY2023-24. The said decrease is due to decrease in margin on Software License Sale due to discount given on large sized Software License Sale orders.

Net Profit Margin (%): In Standalone Financials - there is increase in Net Profit Ratio by >100% to 16.42% in current FY2024-25 in comparison to 2.91% in previous FY2023-24 because of Profit on sale of part of Land owned by the company situated at Cherlapally, Hyderabad and Sale of 100% Equity Stake in subsidiary named Wowtruck Technologies Private Limited. In Consolidated Financials, the Net Profit Ratio in current FY2024-25 stood at 10.73% against (2.31%) in previous FY 2023-24 an increase of >100% because Profit on sale of part of Land owned by the company situated at Cherlapally, Hyderabad and Sale of 100% Equity Stake in subsidiary named Wowtruck Technologies Private Limited.

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof: Net Profit/Net Worth: In Standalone Financials - there is an increase in this Ratio to 20.88% in current FY2024-25 in comparison to 3.98% in previous FY2023-24, an increase of >100% because of because Profit on sale of part of Land owned by the company situated at Cherlapally, Hyderabad and Sale of 100% Equity Stake in subsidiary named Wowtruck Technologies Private Limited, The same Ratio in Consolidated Financials in current FY2024-25 stood at 12.16% against (3.20%) in previous FY2023-24 because Profit on sale of part of Land owned by the company situated at Cherlapally, Hyderabad and Sale of 100% Equity Stake in subsidiary named Wowtruck Technologies Private Limited.

Internal Control & Systems and their adequacy:

The Company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and applicable statutes & corporate policies are duly complied with, the internal audit function has been structured to continuously review adequacy and efficacy of the internal controls. The statutory auditors and internal auditors while conducting the statutory audit, review and evaluate the internal controls and their observations are discussed with the Audit committee of the Board.

Human Resource Development:

The Company considers its human capital as the greatest component at work in the organization. This includes a robust mix of experience and young talent which provides an all-round point of view to various challenges and development of informed solutions. Continuous enrichment of knowledge of employees is a core value of the company and emphasis has been laid on the training and development of the human capital of the company. The skill levels of the workforce have been honed continuously by conducting in-house training programs such as effective operating & maintenance of machinery, which has ensured in high productivity of manpower and low maintenance costs. To enhance the Positive Team Dynamics at the workplace, Development Programs such as Team Building, Communication, Super Leadership for Super Success, Effective Management Skills, etc. have been conducted. Company has successfully resumed working from office, post successfully battling the COVID period.

Disclosure of Accounting Treatment:

The Company has complied with the appropriate accounting policies and has ensured that they have been applied consistently. There have been no deviations from the Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013 read with the relevant rules.

Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Companys Objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results would differ materially 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 the Government regulations, tax laws and other statutes and other incidental factors.