Allied Digital Services Ltd Management Discussions

INDUSTRY OVERVIEW

Global Economy & India Economy

The global economy demonstrated resilience amid divergence, maintaining a mere steady growth rate of 3.2%, consistent with 2023Advanced economies saw a marginal uptick in growth—from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025—while emerging markets experienced a modest slowdown from 4.3% to 4.2%Inflation declined steadily, with global inflation projected to fall from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025Despite high interest rates, economic activity remained stable in FY2024, and risks to the outlook became more balancedHowever, longterm growth prospects remain subdued due to structural frictions and slowing productivity, especially in large emerging markets like ChinaMacro factors such as RussiaUkraine war and IsraelNeighbor disputes continued to threaten the stability of global economy.

India positioned itself among the fastestgrowing major economies, with real GDP growth of 6.5% and nominal GDP growth of 9.9% from FY25Inflation dropped sharply to 2.82% in May 2025, the lowest since 2019, while exports surged to a record USD 825 billion, reflecting strong global demand for Indian goodsThe government increased capital expenditure by 10.1%, signaling continued infrastructure investmentPrivate consumption rebounded with a 7.2% growth, and industrial production and foodgrain output also saw healthy increasesThese gains were underpinned by macroeconomic stability, structural reforms, and favorable demographics, positioning India as a rising global economic forceAs of wiring this report the latest IndiaPakistan conflict and rising Bangladesh issues have produced some hiccups for the Indian economy.

The global IT services market is poised for strong growth in 2025, with spending projected to reach $5.74 trillion, marking a 9.3% yearoveryear increaseThis expansion is driven by enterprisewide digital transformation initiatives, accelerated adoption of Generative AI (GenAI), and increasing demand for cloud migration, cybersecurity, and hybrid infrastructureMajor players like IBM, Microsoft, and Fujitsu are expanding their service portfolios to meet this demandAccording to Gartner, worldwide IT spending is expected to grow 9.8% in 2025, with a significant portion allocated to offset inflationary pressures and fund AIdriven innovation

India continues to solidify its position as a global IT powerhouseIndias IT spending is expected to grow at 11.1% from the previous yearThe domestic market is benefiting from:

1Governmentled digital infrastructure initiatives, including public and defense platforms.

2Fast AI solutions adoption in the enterprise

3A continued surge in cybersecurity requirements as global disputes and geopolitics fuel to the additional demand.

Artificial intelligence with Automation is now the core of enterprise service operations, while the central and few state governments are setting up major initiatives with funding in AIasaservice for their own cause, NGOs, startups and education institutesAllied Digital has already adopted AiFirst strategy in multiple forays, leveraging AIOps into its customer operations, building Agentic AI solutions for customers and imparting AI tools training to power users for efficient internal operations.

OUR BUSINESS

Reiterating our journey, Allied Digital Services Ltd(hereafter referred to as "our Company" or "ADSL"), situated in Mumbai and established in 1984, began supporting mainframe computers in the pre personal computer eraOur Company was one of the first IT companies in India to specialise in Infrastructure Management Services (IMS) as a thirdparty support provider, and we developed an annuity business model by signing multiyear contractsToday, our Company has developed into a global leader in IT consulting and services, providing ‘Managed Services and ‘Systems Integration for infrastructure technology services in more than 70 countriesIn summary, our Company provides ‘Digital Workspace Services, ‘Enterprise Infrastructure Transformative Services and Solutions, ‘Cyber Security, ‘Digital Engineering Services and "AIOps solutions with automation".

In spite of a challenging geopolitical situation as well as national elections in India last year, our business experienced significant growth of over 17% YoYThere have been some significant wins in domestic markets both in enterprise and government businessOn the global front, we did add some good logos by the end of the financial year 2425Few signficant wins this year to mention are

Digital workplace and highend service desk contract of up to 5 years for a large BFSI industry global investment company across several countries.

Top BFSI company in India, has outsourced its enterprise and enduser infrastructure service business across the country to us for a period of 5 years.

We won a very large Pune safe city project with huge scope extension for another 5 years.

Large medicine and FMCG package manufacturing company in India has outsourced all its infrastructure service business including cybersecurity and ITSM platform leveraging Digital Desk to Allied Digital

Largest vaccine manufacturing company of India, exporting globally has outsourced its OT security business to Allied Digital

Large Engineering company across the globe has outsourced digital workplace services to Allied digital across several countries

Allied digital has won a large end user and enterprise infrastructure service contract for top UAE based bank

One of the large eye care service chain in the USA has engaged our company for a multiyear digital workplace services contract.

The current financial year is already showing signs of few big closure in the early quarters, which continues to give strong confidence, risk resilience and active global business development mindset for the companyWith our enhanced focus on our recently developed AIOps platform along with our Digital Desk ecosystem, we seem to significantly gain advantage of bringing costeffective and AIcentric solutions that the current customer demands.

Technology Trends

Today, every large or midsize company in many industries have already embraced AI to some extent or are taking big strides in making AI operational in their businessDatacentred solutions are at CenterStage, Agentic AI is getting fast acceptanceAI tools now are already acdepted by GenZ workforce as part of their work productivityWith immense success in OpenAI, Google Gemini and other popular LLMs and streamlined approach to using RAGAI and Generative AI, today have embarked on Agentic AI to make contextual decisions

Allied digital has developed an Agentic AI architecture with a solution to cut down problem resolution time for IT incidents and service requestsAllied Digital is diligently working on a unique concept that enhances end user experience using conversational AI, enables automation of service requests and enhances selfhealing capabilities leveraging its unique Agentic AI driven guided solutioning platform.

In the world of cybersecurity, the demand continues to grow, and even more as global hackers try to target growing businesses for causing economic disruption to developing countriesOT security has greatly gained prominenceAllied Digital has made some major strides in gaining new business in cybersecurity as well as OT security this year.

In the Data, Cloud and

Application space; the industry is building several solutions driving data analytics, multicloud integrated applications and machine learning driven predictive applicationsThere is a new demand for Data Classification, Critical date protection, Data Governance and Data storageHence several data security driven tools are gaining momentum.

Our company has embarked on the 10x growth strategyWhich implies a target over 25% YoY growthFor this, ADSL is adopting a multiprong strategyThis year, it is already embarked on Europe and Middle East expansion plansAlso, new leadership is being addedThe AIFirst strategy will valueadd to costeffective and userexperience driven solutionsLastly, an improved resource hiring and training strategy taking shape, will continue to scale large service contracts and projects.

MANAGED IT SERVICES BUSINESS HIGHLIGHTS

In India, for enterprise business, we added new customer logos with the start of the last financial yearNot only competition put pressure on margins in IT outsourcing deals but also customers in existing contracts, due to staggering economy want to further lower the IT operations costsWe continue to deliver prestigious large enterprise projects seamlesslyWe are able to effectively manage cost by both, hiring fresh talent with training and controlling attrition.

Following are some key wins

Global Projects

A large furniture rental group in the USA selects ADSL for their multiyear multilingual service desk contract.

Large eyecare service provider in the USA outsources end user services and aopts Digital Desk platform

ADSL grabs large digital workplace contract for 5 years with worlds largest BFSI investment company

ADSL earns contract of enterprise infrastructure and end user services from UAE based top bank

A large semiconductor electronics company selects ADSL to provide global service desk

India Projects

A large insurance company in India outsources enterprise and end user services for 5 year contract

Top packaging global manufacturing company outsources all infrastructure services including cybersecurity and deploys Digital Desk ITSM platform

Worlds largest vaccine manufacturing company leverages ADSLs capabilities in OT security for a large project deployment and managed services

ADSL is contracted to support Indias most prestigious government bank to manage their critical portal, infrastructure and content.

There is continued demand for costeffective managed IT services globally, and India customers are looking at major transformation initiatives including AiOpsWe also see big demand on cybersecurity with new AI based products globallyCloud migration opportunity between various cloud providers is prominentData Analytics solutions in cloud are getting deployed in almost every businessSalesforce as well as ServiceNow based solutions and services continue to be in demand with the advent of new AI powered addon productsOur company will accelerate AIFirst strategy and deploy AIOps solutions on top of its managed service business globally to its customers.

Our services continue to scale new heights of quality benchmarksOur flexible models give good choice to customersThe past year we have extensively worked also on optimizing our global recruitmentWe have substantially grown in our marketing efforts, with a huge subscriber base in various social media platformsWe organize various campaigns, circulate newsletters and drive our though leadership via Pod talks and research trend articles.

From our overall technology practice perspective, we have continued our roadmap of six technology service areas, namely.

Cloud migration projects and cloud engineering

Enterprisemanaged IT services

Digital transformation – AI and Automation projects

Smart city operations

Cybersecurity services and solutions

Digital workplace services and solutions

MASTER SYSTEMS INTEGRATION MSI SMART CITY SOLUTIONS HIGHLIGHTS

The scope of ADSLs Smart City Solutions business includes designing, developing, and deploying digital solutions, as well as providing endtoend IT infrastructure services, Enterprise applications, and Integrated solutionsOur Company entered the smart city solutions market and obtained a contract for the Pune PimpriChinchwad City Surveillance ProjectIt was the first of its kind, with the goal of preventing crime, enhancing law and order, analysing traffic violations, and investigating incidents through the establishment of a 24x7 video surveillance and security command centreThe undertaking included the construction of an infrastructure framework as well as its operation and maintenanceThe undertaking was accomplished successfully and then expanded.

While several smart city projects have gone "live" this year, our quest for new such large project continuesWe have got huge success this year tooWith some excellent efforts in solution design from our presales and practice teams, we have got some big wins this year too.

In FY 202425, we had an exceptional period for smart/ safe city business winning the following orders:

We had a repeat win for large Pune Safe city expansion project which is over 400 crore with 5 years of support services.

Another project worth mentioning is "Uttar Pradesh Avaas Yojna" which is an ERP implementation for land management.

The Lucknow city project has gone "live" with state of the art AI technologies implementing women safety solutions.

We have entered into interesting stage of Digital Engineering as we are engaged in several initiatives with customers in doing digital transformation for plants and factories using industry IoT 4.0 technologiesWe have come up with a unique integration framework to integrate various customer operational technologiesWe foresee good traction in this area and with our new partnerships, we see increased business even in existing customers

In FY 202425, approximately 17% of our Companys revenue was generated through the smart city projects acquired from the government.

DIGITAL DESK FORMERLY ADITAAS

Digital Desk (an AIOps based ITSM/ ESM nocode/lowcode software) platform has more than 15 years of experience, employs 75 people, and serves 100+ customersADSL has entered into a strategic relationship with seven global brands, that would use our Digital Desk as their technology platformDigital Desk is a PinkVerify Certified cloud native DevOps based platform.

We have made substantial progress in the product this year.

We now have a strong conversational and generative AI platform that wraps around Digital Desk ITSM Platform to bring an enhanced user experience, promote automation via bots as well as introduce multiple digital channels of interaction such as WhatsApp, social media, mobile app etc.

A digital ecosystem of products is created that focuses on enhancing our Digital Desk features for building addon modules such as Asset Management, IoT integration, Data lake and Data analytic solutions

Finally, the AIOps platform, which is built leveraging Agentic AI Architecture, that enhances improved resolution time, RAGAI and predictive analytics.

On the top of the Digital Desk, we have designed a cloud based "Digital Bot" platformThis is a multicloud based framework which supports extensive end user interface using conversational and Generative AI leveraged on various digital channelsThis takes end user experience to new levels.

FINANCIAL HIGHLIGHTS

The key financial highlights of the company for the financial year ended March 31, 2025 are given below

Revenue: During the period under review, our company successfully renewed most existing contracts and secured several highvolume contracts for Smart/Safe city projectsThis sustained our performance momentum, resulting in a revenue of INR 80,707 lakhs in FY 202425, marking a 17.47% yearoveryear increaseNotably, on a standalone basis, the company achieved a significant growth of 27.73%EBIDTA: On a standalone basis, the company saw robust EBITDA growth of 25.82% compared to the previous yearHowever, the consolidated EBITDA margin experienced a slight increased.

Profitability: The company recorded remarkable profitability growth in its standalone performanceHowever, consolidated profitability was compressed due to challenges in overseas markets.

		Standalone			Consolidated
	202425	202324	YoY Change	202425	202324	YoY Change
Revenue	,	,	.%	,	,	.%
EBIDTA	,	,	.%	,	,	.%
PBT	,	,	.%	,	,	.%
PAT	,	,	.%	,	,	.%

KEY FINANCIAL RATIOS

	Standalone		Consolidated
	202425	202324	202425	202324
Debtors Turnover (times)	.	.	.	.
Inventory Turnover (times)	.	.	.	.
Interest Coverage Ratio (times)	.	.	.	.
Current Ratio (times)	.	.	.	.
Debt Equity Ratio (times)	.	.	.	.
Operating Profit Margin (%)	.%	%	.%	%
Net Profit Margin (%)	%	%	.%	%
Return on Equity (%)	.%	%	.%	%

There were overall improvements in Debtors and Inventory turnover ratios due to better working capital management.

Interest coverage ratio was reduced slightly due to additional shortterm borrowings for projects.

Overall Current ratio was maintained at the same level despite additional borrowings during the period

Debt Equity ratio remained at a healthy and stable level during the previous year.

Standalone operating as well as Net Profit margin was considerably improved during the previous year mainly due to increased operational efficiency and cost optimizationHowever, the portability margins were little stretched on consolidated basis

On Stand basis the ROE was considerably higher in comparison to earlier year due to improved profitability however, there was slight dip in overall consolidated level.

KEY DRIVERS OF GROWTH

The key growth drivers for our Company include the following:

Leveraging AI

We have adopted AIFirst strategy, that encompasses both AI for customers, as well as AI for internal operationsSince Ai is in extreme demand for customers across the globe, we feel well positioned to address the customer needs and also efficiently improve our internal operations in areas such as marketing, recruitment and finance functions.

Increased Sales and Marketing

Our company has expanded its sales by adding resources and geography and will continue this coming year to generate more funnelsMarketing team is leveraging advanced digital marketing capabilities to improve visibility and brand awarenessVarious research tools are deployed to get more insights into customers and competition.

Strategic Global Partnerships

Our Company is constantly augmenting good partnerships with major global players, which has expanded our competencies and ability to offer comprehensive technology services

These collaborations enable us to leverage offshore talent as well as global expertise, access new markets, and tap into a wider customer base, driving growthIt is on the back of these partnerships that we have recently won several large deals for global giantsOur Company remains focused on continually expanding partnerships to unlock new growth opportunities.

Geographic Expansion

Our Company is actively expanding into newer geographies, opening up fresh opportunities for business growthAs a result of achieving worldclass global benchmarks and recognition in service governance, we would continue to expand our partnerdriven model globally to further propel our business with large contractsBy diversifying our presence across different regions, we are able to capitalise on emerging markets and cater to the specific needs of customers in the different parts of the worldWhile we actively building a strong presence in the United States and have expanded our footprint to Mexico, Canada, and other nations, we are giving extra attention to Europe and Middle East markets.

Innovation

As pioneer in technology adoption, innovation is ingrained in our Companys fabricOur leadership has successfully implemented designthinking and innovative focused business model with the organisation, which has set the foundation to generate innovative solutions for the evolving needs of customersOur "Digital Desk" a lowcode/nocode platform is consistently upgraded with new features and new technologiesThe "Digital Bot" software, is an addon to this platform leveraging conversational and Generative AIThe digital ecosystem framework enhances functionality of Digital Desk platform by adding new functional features and the Agentic Ai platform is the state of the art use of AI to build customercentric transformational solutions.

Excellent Service Maturity

Our Company has a matured service governance, which has been effective in delivering clients with highquality technology servicesWe ensure this by adhering to best practices and maturity models, establishing a Centre of Excellence, and having a diverse workforce comprising individuals with a vast array of skillsWe have further enhanced our workforce, ensuring that we have the right talent and expertise to drive growth and deliver exceptional resultsOverall, our matured service governance strengthens our competitive edge, enhances our reputation with clients, and opens longterm opportunities

Clear Roadmap for the Future

ADSL has evolved as a matured IT services Company that specialises in offering a comprehensive range of technology services, including the design, development, and deployment of digital solutionsSupported by a leadership with futurefocused mindset, our Company has undertaken a rigorous introspection and analysed future opportunities to set a clear roadmap for the next 35 yearsThis strategic planning allows us to align our goals, investments, and resources accordingly, ensuring a systematic approach to achieve growth targets and maintain a competitive edge in the industry.

HUMAN RESOURCE

Human resource (HR) practices have played a crucial role in our Companys expansion across the worldThe human resources division has been a pillar of strength in all aspects, including efficient resource management and the rapid scaling of existing and new initiativesThe HR department has been promoting constant communication and providing additional care to support and field personnel worldwideOur objective is to strengthen our core team in order to ensure our success across all business verticalsIt is a great sense of pride that our company has gained the recognition as "Great place to work" again this year, which speaks volumes of being also high admired employeecentric while remaining focused to customer servicesThis certifies us as onpar with any large global organizationTalent acquisition is among the most absorbing challenges to win deals at costeffective priceResource attrition though reasonably low, also needs to be addressedOur HR department has been always instrumental in deploying smart global as well as domestic talent acquisition models, which have directly contributed to controlling the cost of operationsWe have expanded our talent recruitment capabilities, by augmenting local , global and third party support across the globeTo enhance our people resources and internal competencies for executing our plan to expand into more advanced technology areas, we have implemented various strategies such as training and development, crossfunctional teams and collaboration, internal mobility and career development and continuous learning and innovation cultureAnother area where our global HR department has exceeded expectations is in the employment of new leadership roles and the enormous scalability of recruitingWe are also investing into a stateoftheart training and competency based skill management platform that will enable seamless upgrade of skillsets of our employees, hire new people efficiently and give managerial insights into skill analytics across the company.

Our Company also undertakes various efforts for employee engagement initiatives to foster a positive work environment and employee satisfactionThese include feedbacks, wellness programs, teambuilding activities, and opportunities for career growthOur Company further offers competitive compensation, alongside attractive benefits such as health insurance, retirement plans, paid time off, flexible work arrangements, and opportunities for career advancementTo promote physical and mental health, employees are supported with wellness programs, access to counselling services, stress management initiatives, and employee assistance programs (EAPs).

Diversity, equality and inclusiveness is an important aspect at ADSLOur Company fosters a work culture where employees feel valued, respected, and includedTo ensure equal opportunity, there is a strong emphasis on fair and unbiased selection processes and promotionsOur Company takes pride in being a truly global and diverse organisationAcross all our global offices, our Company prioritises hiring local leadership and talent, from across all backgrounds, ethnicities and genderOur US office sets the standard as a beacon of diversity within the organisation with its vibrant mix of diverse diasporas, embodying the essence of a nation built on the power of immigrantsOur Companys sustained people related efforts have significantly lowered attrition rates, below the industry averageThis ensures stability, enhanced team dynamics, and smoother project executionMoreover, it fosters a positive Company culture, high employee morale, increased productivity, and improved job satisfaction, ultimately contributing to our Companys growth and competitiveness.

From Indian perspective, the total number of permanent employees as of March 31, 2025, was 1895Our Company conducted 96 induction trainings and allocated 144 hours to the training.

GOVERNMENT INITIATIVES

The Government of India has been a key enabler our technology adoption with revolutionary initiatives around digital infrastructure, digital payments, cybersecurity, startup ecosystem, and the Make in IndiaThese are unleashing massive opportunitiesOur Company has been actively undertaking innovative efforts to seize the opportunities while also aligning the governments vision for a digitally empowered and secured nation.

Digital Infrastructure

Following the pandemic rise of emerging technologies, the government has been proactively focused on creating a digital India and implementing smart cities to empower citizens and enhance efficiency in public service deliveryOur The government has come with a big AI initiative to support AI needs for government agencies, NGOs, startups and education institutesCompany leveraging its technological capabilities has been actively promoting the visionary initiative through participating in smart city tendersOur Company with its additional AI capabilities, with a track record of competing seven such projects and executing another five has successfully established itself as an MSI, capable to undertaking the entire responsibility of project endtoendOur Company remains focused on participating in all MSI projects in India and has also leveraged this expertise to enter the US market as an MSI.

Digital Payments

The government aims to drive digital payments and enhance financial inclusion through initiatives like the Unified Payments Interface (UPI)ADSL actively contributes to financial inclusion with the launch of innovative platform ‘FinoAllied

It empowers small and medium banks to digitise their services and extend them to rural populations, both within India and globallyThe platform further has the potential to expand into various industries, including insurance, enabling transactions to be conducted seamlessly through conversational bots.

Cybersecurity

The government as well our Company recognize the importance of cybersecurity in safeguarding dataThe government has announced its plans to construct a cyberlab for the ‘Online Capacity Building Programme on Crime Investigation, Cyber Law and Digital Forensics in an effort to bolster cyber security capabilitiesAt ADSL, we are also at the forefront of cybersecurity efforts, developing programmes specifically designed to enhance security measures for banks and corporationsMoreover, ADSLs AIM 360 initiative focuses on providing comprehensive cybersecurity solutions to protect critical data assetsIn addition, we have acquired extensive knowledge of numerous facets of cybersecurityWe have attained new heights in utilising the most advanced industry tools and platforms in cybersecurity including OT security, which has aided us in acquiring some exceptional projects

Startup Support

Startups are key to driving forward the growth of the nation in the digital eraThe government recognises this and has been dedicated to supporting startups and fostering innovation with favourable policies, incentives and fundingAccording to a Ministry of Electronics & IT report titled ‘Indias trilliondollar digital opportunity, India will have 6065 million jobs that necessitate digital capabilities by 20252026ADSL actively promotes and supports startups by assisting in the development and implementation of their innovative ideas

Additionally, ADSL collaborates with select nonprofit organisations to drive their technologyenabled initiatives, further supporting the startup ecosystem

Make in India

ADSL aligns with the governments Make in India initiative, which aims to promote local manufacturing and encourage investment and make India an integral part of the global supply chainADSL supports this initiative by focusing on empowering domestic companies with digital competenciesOur comprehensive service management platform Digital Desk, has been driving significant value for customers by empowering them with integrated servicesThe solution has been implemented by several domestic companies, providing them with exceptional outcomes.

ADSLs AIM 360

ADSLs AIM 360 initiative focuses on providing comprehensive cybersecurity solutions to protect critical data assets

THE ESG INITIATIVE HIGHLIGHTS

Environmental, Social, and (Corporate) Governance is abbreviated as ESG and is a practise adopted by our Company to support environmental and social issues as well as monitor our own ethical corporate governanceThe initiative includes the measurement and reporting of our Companys activities to enhance the environment, engage in social work causes and ensure ethical corporate governance practises are followed.

ADSL has adopted equitable governance and plays an active role in publicfacing technology initiatives such as smart citiesOur Company has been documenting these activities but intends to formalise and report them in accordance with the global ESG metrics framework

ESG facilitates overall topline growth, attracts talent, reduces costs, and fosters consumer confidenceAs sustainability is incorporated into their governance and fundamental values, organisations with excellent ESG practises receive a higher reputation score and face less riskDue to recent and ongoing global challenges, such as geopolitical stability (such as the UkraineRussia conflict and the USChina relationship), climate change, unethical business practises, food scarcity, soil pollution, and starvation, the current fiscal year has been challengingAll of this contributes to greater economic disparity, sustainability issues, and longterm effects on the planetTherefore, ESG must be adopted to contribute to the current and future wellbeing of the planet, the surrounding community, and to ensure the organisation is run fairlyIt enhances investors confidence in our Companys longterm sustainability planning and identifies any unforeseen risks

ESG reports include both qualitative and quantitative data pertinent to their three primary topics.

ENVIRONMENTAL

Focus areas	ADSL Initiatives
Combating	ADSL is undertaking various tree
climate change	plantation activities.
Reducing carbon	ADSL has implemented several energy
emissions	saving measures on premises including
	maximising natural lighting and
	ventilation, using energyefficient systems
	(for lighting, office equipment, appliances)
	and sensitising employeesOur Company
	also proactively monitors resource usage,
	including electricity bills, and actively
	managing supply chain risks associated
	with various electronic goods from OEMs.
	Further, carpooling and work from home
	is also supported.
Preserving	Our Company also engaged various
biodiversity,	NGO agencies to drive effective ewaste
improving air and	management practicesFurther, our
water quality,	Company has been actively implementing
combating	cloud migration projects, enabling
	efficient, costeffective, and energysaving
deforestation,
	utilisation of technology for our clients,
or responsibly	helping them optimise operations and
managing its waste	reduce environmental impact
Responsibly using	Globally, ADSL has adopted usage of
resources and its	filtered water and actively discourages the
supply chain	use of plastic bottlesOur Company also
	proactively monitors supply chain risks
	relating to electronic goods with OEMs.

SOCIAL

Focus areas	ADSL Initiatives
Nurturing people	ADSL has comprehensive HR policies and has made them available online.
and workplace	Additionally, the HR department provides frequent updates to employees
	regarding the ongoing pandemicOur Company also conducts training, health,
	safety and wellbeing, engagement and rewards and recognition programmes.
	ADSL firmly believes in the concept of "Employee nurturing as an everyday role
	of a manager.
Gender, disability	ADSL is committed to gender neutrality and provides equal
parity initiatives	opportunities and support for individuals with disabilities.
Employee	Our Company promotes equal opportunity and diversityWe are continuously
engagement	upholding a strong "Core Value Pyramid" with Ethics and Integrity placed at the
	top and firmly believe in the importance of "walking the talk." Furthermore, we
	are regularly publishing newsletters to keep our employees wellinformed.
Data Protection	ADSL is driving extensive cybersecurity practices for clients and is maintaining
and privacy	similar practices internallyThis includes ongoing compliance with standards
	such as ISO 27001, ISO 20000, and SOC 2Additionally, our Company has
	established a "Centre of Excellence" to lead by example in driving cybersecurity
	initiativesOur Company has been undertaking regular campaigns focused on
	data protection, privacy, and raising awareness about cybersecurity.
Community	ADSL made donations to support social initiatives around promoting
involvement	health and wellbeing of the vulnerable communities and eradicating
	hunger, poverty and malnutritionOur team also participated in the 3day
	blood donation drive organised at Andheri SEEPZSEZ office, MumbaiTo
	create livelihood opportunities, our Company undertook efforts around
	promoting education and skill development for children, women, elderly
	and the differentlyabled toOur US team provided volunteering service
	to Los Angeles, USA Regional Food Bank for supporting their Commodity
	Supplemental Food Program (CSFP)Our innovative product ‘FinoAllied
	aligns with the digital India initiative, contributing to significant financial
	inclusion effortsIt empowers small and medium banks to digitise their
	services and extend them to rural populations, both within India and globally.
	Our company employees and marketing division actively
	participated in blood donation camps.
	As a leading MSI for smart city projects, our Company continuously assumes
	a prominent role in enabling technology for the betterment of society at
	largeWe prioritise citizen safety, citizencentric services, water and waste
	management, transportation, and overall urban security, by constantly
	improving the quality of life for urban populations.
Human Rights and	ADSL is complying with all statutory
labour standards	regulations and labour laws.

GOVERNANCE

Focus areas	ADSL Initiatives
Internal	ADSL is maintaining a range
controls	of internal controls that
	encompass
	Whistle blower policy
	Employee grievance and
	support services online
	and offline
	Open door policy
	Mandatory onboarding
	procedures to
	communicate policies,
	code of conduct and
	"Core Value Pyramid"
	Continuous
	communication during
	leadership town hall
	sessions

Policies, principles, and procedures governing leadership, board composition, executive compensation, audit committee structure and shareholder rights.

Our Company, as a publicly listed entity, is actively adhering to and implementing all the essential statutory and regulatory compliances required.

Our Company this year plans to actively formalise these initiatives in a global measurable report.

ADSL ACTIVE ROLE IN GLOBAL ESG INITIATIVES

New benchmarks are coming upWe have become actively involved with several sustainability leaders to help build sustainability skills and improve on our achievementsOur Company is continuously making notable improvements in various sustainability aspects that warrant highlightingOur ongoing focus on energy conservation is leading to significant reductions in energy consumption, resulting in approximately 20% savings yearonyearWe are also making efforts to optimise water consumption and implement efficient waste management practicesAdditionally, our commitment to environmental stewardship is demonstrated through initiatives such as tree planting, contributing to the preservation and restoration of natural ecosystemsThese accomplishments showcase our unwavering dedication to ESG initiatives, sustainability, and resource efficiency.

Along with these endeavours, our Company has remained dedicated to leveraging technology to benefit all segments of society, drive financial inclusion, and promote sustainable and responsible use of resources.

RISKS, CONCERNS AND THREATS

Volatile Global Outlook ADSL is subject to interest rate risk, currency fluctuations, credit risk, and regulatory risk due to our significant global presenceIn the United States, continuous tariff pressures and warrelated concerns have worsened workforce shortage and attrition issues and even contributed to the onset of a recessionHowever, our HR department is proactive in ensuring that such problems dont have an impact on business growthInternal audits of our Company assure robust risk management readiness, where the risks are evaluated quarterly by the managementDue to warrelated issues, climate change, and postpandemic economic changes, some global and Indiarelated macroeconomic risks pose challenges to our CompanyWe are able to control these risks more effectively by taking proactive measures to derisk the supply chain.

Technology

Technology is linked to innovation and imminent changeIndustry 4.0 and Web 3.0 represent the next wave of technological developments, and we would use technological advances in order to provide our customers with innovative technology service areasThis necessitates a proactive adoption strategy for modern technologies and the promotion of innovative solutions, thereby increasing the potential to capitalise on new business opportunitiesAI is the key game changer for every organization todayThose companies embracing AI for internal and external facing operations have to adopt AI to remain competitiveWe see this as some risk but more as an opportunityHence our company is actively investing into AI training and building new solutions.

Our Company engages in ongoing training and skill development programmes in order to maintain our knowledge baseADSL has explicitly defined its six business related technology practices, which have a defined plan for the next three years and will concentrate on new opportunitiesIt will continue to invest in R&D in order to create new technology service areas in all geographies.

Cybersecurity is currently the most pressing concern for managed service providers and the industryDue to the execution of significant contracts for new business, we have also increased the limits of our cybersecurity insurance.

We believe in leveraging technologies such as AI and blockchain to benefit an enterprise that enhances the social and environmental sustainability of the customers organisation.

Compliance Risk

As our Companys operations span the world, it is essential for our Company to comply with the legal and regulatory requirements of various countriesFailure to comply with the laws and regulations of a particular country may expose our Company to legal and financial penalties and harm our brand imageIdentified key stakeholders across sales and business units, as well as corporate functions, ensure continuous compliance with all applicable lawsThe applicable regulations are monitored and amended by the respective departmentsAdditionally, our Company has hired thirdparty agencies to support standard compliance in certain countries and mitigate local statutory risksFrom an operations standpoint, we ensure that our compliances, such as ISO, CMMI, and PinkVERIFY, remain active and functional each yearLast year, we launched new ESG metrics that would aid in the allround development of our Company.

Delivery Risk

There is a constant risk of losing a customer or incurring penalties if standard core services are not delivered to the highest standards due to the intense competition in this marketCustomers expect continuous value enhancement from service providersSpecifically in India, businesses are under constant pressure to not only surpass the KPI, but also to offer reductions due to the pandemic and free project delivery as a valueadditionOur Company has supported discounts and provided valueadded services to customersThis situation is addressed in two sections, with the first being shiftleft automation, which automates routine dutiesFor instance, our managed services team has developed analytical dashboards for customers and partnersApproximately 300 distinct routine daily duties are digitalised and automatedThe alternative strategy is to account for increased operational costs in our pricing for new customersThis year, in response to inflationary pressures, our Company has also reached out to existing global and Indian customers for a price increase in order to maintain profitabilityPayment delays are a persistent problem on a global scaleDespite this, our finance team has been able to successfully manage this risk through rigorous followups on receivablesObviously, this has been more difficult at times, but our finance department has been able to maintain cash flow without incurring additional finance costs.

Contract Management

Sometimes misunderstandings about the scope of work result in misaligned expectations among participants in the projectCertain contracts have been standardised, and we are continually working to improve contract administration and gain deeper insights into customer environments in order to reduce the risk of service failure at the desired levelsOur contracts team is continually refining new and existing contracts in light of the current business climate.

Employee Related Risk

As a servicecentric, talentdriven organisation, one of our most important strategies is to have the finest talent with the most specialised abilities in every aspect of our businessTo increase our differentiation and competitiveness, we strike a balance between the right levels in the right places at the right timeIn India, our attrition rate has decreased over the past year, while in the United States, where inflation is higher than in the past, new challenges have emergedOur Company mitigates risks through crosstraining and diligent collaboration with internal and external recruitersThere are attrition issues in Europe due to changes in immigration law, but we have developed constant vigilance in our delivery operations so that customer deliverables are never affected.

Internal Control systems

Internal controls enable the prompt identification and correction of operational irregularities and provide a constant and accurate summary of the organisations positionAdequate internal controls ensure that transactions are authorised, recorded, and reported accurately, and that assets are protected against unauthorised use or dispositionMoreover, operational controls and fraud risk controls encompass the entirety of internal financial controlsOur Company has placed a significant emphasis on enhancing the internal control systems in all departments, including Finance, Sales, Legal, and HRWhen deemed necessary, timely actions are taken to safeguard our Companys longterm viability and growth potentialIn finance, a formal system of internal audits manages internal checks and balancesThe mechanism for notifying regulatory changes was in place, and the transition to GSTcompliant processes was seamlessM/sSatya Prakash Natani & Co., Chartered Accountants, Mumbai, has been appointed as our Companys Internal Auditors to conduct the Internal Audit.

On the sales front, there is a greater emphasis on customer credit checks, profitability, and sales closuresWe enhanced alert communication, automation, and customer system health checks on the delivery and operations sidesOur Companys quality management system has also been annually ISOcertified and updated regularlyThis has significantly increased the overall delivery quality, reducing customer concernsThe contract management software in the

United States has been updated, and we intend to implement the same in IndiaThis software will enable us to reduce business risk and enhance compliance by incorporating contract management best practicesIn FY 202122, we launched a significant initiative to achieve CMMI Level 3 complianceThe work is in its final phase for certification before the end of the yearLast year, additional initiatives, such as management performance audits, were effectively implemented.

DISCLOSURE OF

ACCOUNTING TREATMENT

The Financial Statements of our Company have been prepared in accordance with the procedure and process provided for in the applicable Accounting StandardsThere was no alternative treatment adopted in the preparation of the Financial Statements during the year under review.

BUSINESS OUTLOOK

Our Companys innovative and proactive nature has helped us diversify and establish a strong vertical with enormous opportunities across the globe originating from a developing nation like IndiaOur growth is eminent putting the strategies in placeBy improving our operational models to account for global inflationary risks, we would continue to achieve new business expansion, and our strategic plan has produced remarkable resultsAs a key differentiator, we have continued to enhance our service governance scale to new heightsTo further propel business growth, we have signed up some very large companies as partners globally, this will create a new flow of business in the coming timesGoing forward, we anticipate rapid expansion in AI and automation, which are progressively becoming mainstream industriesOur significant future investments would be in Artificial Intelligence (AI), Robotic Process Automation, Cybersecurity, and specific startup incubation areas.

As we continue to invest in innovation that directly contributes to the development of our business, we foresee a rise in the number of data science and artificial intelligence (AI) initiatives in the coming yearOur Company has been actively delivering order books, and the growth outlook for the pipeline appears to be positiveMultiple smart city project implementations are currently underway, and are completed or nearing completionWe are already expanding our cybersecurity cloud business and our Integrated Solutions business (including smart cities) in the USThis will generate new opportunities and allow us to further explore new business with our existing partners and clientsWe anticipate that new geographies and new initiatives will contribute to ADSLs steady expansionThis year, ADSL will invest resources in building new strategic business partnerships in Europe and the rest of the globeOur new ESG initiative will play a crucial role in enhancing our Companys brand and global business context, as well as gaining the trust of our current and potential customers.

The FY 202526 shows new promise with rapid adoption of AI and our new respective AI platform, new talent acquisition models to control operational costs and generate new winsOur new leadership and geography expansion will further funnel growth this year

CAUTIONARY STATEMENT

The statement in the Management Discussion and Analysis Report cannot be construed as holding out any forecasts, projections, expectations, invitations, offers, etcwithin the meaning of applicable securities, laws and regulationsThis report basically seeks to furnish information, as laid down within the different headings to meet the requirements of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.