Atishay Ltd Management Discussions

Economic Overview Global Economy¹ Overview

In CY 2024, the global economy demonstrated resilience, achieving a 3.3% growth rate despite challenges such as supply chain disruptions, geopolitical uncertainties and inflationary pressures. The U.S. economy remained strong, supported by robust employment and corporate earnings, while Europe faced stagnation, with Germany experiencing sluggish growth due to weak manufacturing and exports. Chinas economy expanded at 5.0%, falling short of expectations due to real est?te struggles and industrial overcapacity. Emerging markets outperformed developed nations, growing at 4.3% compared to 1.8% in advanced economies, driven by strong domestic demand and foreign investment. The sharp decline in global headline inflation played a vital role in stabilising economies worldwide. Global inflation, which stood at 6.7% in CY 2023 saw a significant reduction by coming down to 5.7% in CY 2024², stabilising prices and stimulating economic activity. Additionally, proactive monetary policies and stable energy supplies sustained economic momentum and buttressed business confidence.

Outlook

The global economy is envisioned to maintain a modest growth at 2.8% for CY 2025 and 3.0% CY 2026. Accommodative monetary policies and easing inflationary pressure are expected to be key facilitators of this growth. Emerging markets are projected to sustain their momentum with a 3.7% growth rate, while advanced economies are set for modest improvement, reaching 1.4% growth in CY 2025. A key facilitator of economic stability will be consumer spending, which is expected to remain strong as inflation moderates further to 4.3% in CY 2025. While geopolitical uncertainties pose risks, government investments, fiscal discipline and improving market confidence will support economic stability and promote a more balanced and resilient global growth trajectory.

World GDP Growth Trends

Indian Economy³

Overview

The Indian economy achieved a 6.5% GDP growth in FY 2025 despite global economic headwinds. This pace was fuelled by strategic government initiatives, infrastructure development and an improved regulatory environment that promoted business expansion. The growth seen during the year of reporting was further bolstered by a steady services sector. Key sectors like manufacturing, agriculture and technology benefited from targeted policy support, while Indias digital transformation and financial inclusion efforts bolstered economic participation. A significant decline in inflation from 5.4% in FY 2024 to 3.6% in FY 2025 enhanced consumer confidence, leading to increased urban and rural consumption. Export growth, supported by a diversified industrial base and deeper global trade integration, further strengthened Indias economic stability.

Outlook

Indias economic trajectory remains positive, with GDP growth projected of 6.5% in FY 2026. Growth will be fuelled by tax relief for middle-class households⁴, then RBI is also attempting to increase economic activity through the use of an expansionary monetary policy plan, which involves cutting interest rates back to back 2 times by 50 basis points⁵ in order to further increase consumption and provide liquidity to the economy. Inflation is expected to remain stable, bolstering purchasing power and boosting domestic consumption. With strong forex reserves, government-led infrastructure projects and fiscal prudence, India is strategically positioned for long- term sustainable growth, reinforcing its role as a key player in the global economy.

Industry Overview

Global IT Industry

The global Information Technology (IT) industry is witnessing a notable transformation, primarily driven by the accelerated adoption of Artificial Intelligence (AI). This transition is leading to substantial investments in data centres and AI-related hardware and software, with projections indicating the market could reach $990 billion by CY 2027⁷. This surge is expected to strain supply chains, potentially leading to shortages in semiconductors and other critical components. Additionally, the industry is experiencing a transition towards vertical integration as companies develop domain-specific language models to handle specialised computing tasks. These developments are reshaping the global technology landscape, creating new hubs and altering the competitive dynamics within the sector.

Global IT spending is expected to witness robust growth of 9.8% in CY 2025⁸, propelled by ascending investments in cloud computing, artificial intelligence and cyber security. Organisations are expediting digital transformation efforts to improve operational efficiency and enhance customer engagement. Despite this momentum, challenges such as talent shortages and economic uncertainties may impact the rate of technology adoption. Overall, the industry is set for significant expansion, with emerging technologies playing a crucial role in shaping future business strategies.

Indian IT Industry

In FY 2025, India reinforced its position as a global technology and innovation hub, demonstrating resilience despite geopolitical and economic uncertainties. The industry is estimated to reach $283 billion in revenue, marking a 5.1% year-on-year (y-o-y) growth, with exports surpassing $200 billion and domestic technology spending nearing $60 billion. The sector saw a net hiring increase of 126,000 employees, bringing the total workforce to 5.80 million. Key growth drivers include the USA and the BFSI sector, alongside emerging opportunities in APAC, Telecom, Retail and Healthcare. Major themes shaping the industry include AI-led IT service expansion, cloud-native solutions, cyber security and deep- tech innovations, with the ER&D and Global Capability Centres (GCCs) becoming crucial pillars of growth⁹.

The Indian IT industry is poised for sustained growth, with revenue expected to expand by 4-6% in USD terms for FY 2026¹⁰, building on the gradual recovery seen in recent quarters. While

macroeconomic challenges persist, including potential US trade tariffs and policy shifts, the industry remains resilient, bolstered by strong deal pipelines and increasing digital transformation initiatives. Attrition levels have stabilised at a healthy 12-13%¹¹ and cost optimisation efforts are helping sustain operating profit margins at 22.5-23.0%¹² . A key growth driver is the rapid adoption of Generative AI (GenAI), with BFSI and healthcare sectors leading AI-driven investments. As IT companies enhance their GenAI capabilities, new opportunities are emerging, setting the stage for long-term expansion and innovation in the industry.

E-Governance

E-Governance, or electronic governance, refers to the use of digital technologies, particularly the internet, to provide government Services, enhance administrative efficiency and enhance Citizen engagement. It plays a crucial role in making governance more transparent, accountable and accessible.

Key Components of E-Governance

Component	Description
Government-to- Citizen (G2C)	Digital services for citizens, such as online tax filing, e-passports, public grievance portals and digital ID systems.
Government-to- Business (G2B)	Online business registrations, e-procurement, licensing and compliance management to facilitate ease of doing business.
Government-to- Government (G2G)	Digital communication and data exchange between government departments for better coordination and efficiency.
Government-to- Employee (G2E)	E-payroll, online HR management and employee engagement systems to streamline internal government operations.

The National E-Governance Plan

The National e-Governance Plan (NeGP) is a transformative initiative designed and launched by the Government of India to enhance the delivery of public services through digital means. By leveraging technology, NeGP aims to incorporate efficiency, transparency and accessibility to governance, ensuring swift and seamless access to the Citizens of India. Since its approval on May 18, 2006 it has played a crucial role in Indias digital transformation journey.

Key Features of NeGP

• Establishes a structured framework for e-Governance implementation across various government departments.

• Promotes transparency, efficiency and accountability in service delivery.

• Encourages Public-Private Partnerships (PPP) for better implementation.

• Provides common service delivery outlets to ensure accessibility to citizens.

• Focuses on cost-effective digital services to make governance affordable for all.

Mission Mode Projects (MMPs) under NeGP

At its inception, NeGP consisted of 27 Mission Mode Projects (MMPs) across varied sectors. However, in 2011, four new projects were added, increasing the total to 31 MMPs. These projects focus on key areas of governance, enhancing the service delivery for millions of citizens.

Original 27 MMPs

The initial 27 MMPs were designed to digitise and streamline government services across various domains, including taxation, banking, municipalities and land records. Some of the major MMPs included:

1. Income Tax - Online tax filing and processing.

2. Passport & Visa Services - Simplified and seamless online passport and visa application processes.

3. Land Records - Digitisation of land ownership records to prevent disputes.

4. Municipalities - Online services for property tax, birth certificates and more.

5. e-Courts - Digital case management and hearing updates.

6. e-Procurement - Transparent and efficient government procurement processes.

7. Transport - Online vehicle registration, driving licenses and road tax payments.

New MMPs Introduced in 2011

Recognising the evolving needs of citizens, four additional MMPs were introduced:

1. Health - Digital healthcare services, telemedicine and e-Hospitals.

2. Education - Online learning platforms, digital libraries and student management systems.

3. Public ?istribution System (PDS) - Digitisation of ration card services and food subsidy distribution.

4. Posts - Enhancing postal services with digital tracking and financial inclusion.

Vision of NeGP

The Vision Statement of NeGP places significant emphasis on elevating the accessibility to public services. It aims to deliver government services through common service delivery outlets, ensuring that every citizen, regardless of their socio- economic background, can avail essential services. The core objectives include:

• Efficiency - Streamlining government procedures to reduce delays.

• Transparency - Minimising corruption by making processes open to public scrutiny.

• Reliability - Ensuring that government services are accurate, consistent and secure.

• Affordability - Making digital services cost-effective and accessible to all sections of the society.

The National e-Governance Plan (NeGP) has been a game- changer in Indias governance landscape. By digitising government services and ensuring augmented efficiency, NeGP has significantly improved citizen-government interactions. However, addressing challenges such as cyber security and digital literacy remains crucial for its continued success. As India moves towards a fully digital future, initiatives like NeGP will play a central role in making governance more citizen- centric, transparent and accessible.

IndiaAI Mission¹⁴

The IndiaAI Mission is a strategic plan by the Indian government to make the country a leader in artificial intelligence (AI). The Cabinet approved it in March 2024, with a total budget of more than ?10,300 crore to be used over the next five years. The goal is to build strong partnerships between the government and private companies. One of the main parts of the mission is to set up powerful computer systems using over 10,000 GPUs (graphics processing units) to support AI work. There will also be an IndiaAI Innovation Centre at a top university to build important AI models, including special models for different fields. Another key part is the IndiaAI Datasets Platform, which will improve the use of government data for AI and innovation. The mission also focuses on education through the IndiaAI FutureSkills program, which will offer AI courses and set up Data and AI labs in big cities and smaller towns. It also includes funding support for startups through the IndiaAI Startup Financing, helping them grow their products and bring them to market. Lastly, the mission will make sure that AI in India is used safely and fairly. Overall, this mission wants to help India grow in technology and make sure everyone can benefit from AI.

Driving Rural Digitisation

Madhya Pradesh has emerged as a national leader in the computerisation of Primary Agricultural Credit Societies (PACS), a landmark achievement under a centrally sponsored initiative led by the Ministry of Cooperation, with vital support from NABARD. The project is focused on transitioning all functional PACS onto a unified ERP-based platform, thereby significantly enhancing operational transparency, accountability, and service delivery across the rural credit infrastructure.

In alignment with this initiative, the Government of Madhya Pradesh has signed 19 strategic Memorandums of Understanding (MoUs) within the cooperative sector during the Madhya Pradesh Global Investors Summit 2025. These collaborations are designed to boost farmers income, facilitate sourcing channels for private enterprises, and strengthen public-private synergy in rural development.

This holistic and technology-driven approach has firmly positioned Madhya Pradesh at the forefront of PACS modernisation, underscoring the states commitment to transforming rural economies through digital innovation. Atishay Limited is proud to be a key technology partner in this transformation, contributing to the development of efficient, scalable, and inclusive digital infrastructure for rural India.

Company Overview

Atishay Limited is a leading Indian Company specialising in digital solutions across various sectors, including e-Governance, financial inclusion and IT consulting and software development services. With over 25 Years of expertise, the Company has played a crucial role in transforming public sector services through advanced technology. Atishay is committed to leveraging digital innovation to enhance efficiency, accessibility and service delivery. It offers a wide range of services, including customised software development, banking correspondence and financial inclusion services, catering to both government and private sector clients.

Driven by a vision to revolutionise public services through technology, Atishay Limited integrates cutting-edge advancements such as artificial intelligence to improve operational efficiency and reduce costs. The Companys strong focus on corporate governance ensures compliance with statutory and regulatory requirements, maintaining transparency and ethical business practices. Through strategic collaborations and continuous innovation, Atishay aims to simplify commerce, enhance financial accessibility and contribute to Indias digital transformation. By prioritising customer-centric solutions, the Company continues to empower businesses and individuals, building a more digitally comprehensive and connected society.

Products

Zapurse - A Comprehensiva Digital Financial Ecosystem

Zapurse is a cutting-edge self-service digital financial platform that seamlessly integrates banking Services, FasTAG, utility bill payments, Domestic Money Transfers (DMT), micro ATMs (mATM), Aadhaar-enabled Payment Systems (AePS), mobile recharges and more. Serving as the digital arm of Atishay Limited, Zapurse operates under Atishay Online, positioning itself as a leading service aggregator and payment solutions provider. With a nationwide presence spanning both urban and rural regions, Zapurse is supported by an extensive network of over 30,000 kiosk of E-Mitra in Rajasthan and 2000 direct agents in other states of India.

Running Projects Catalogue*

Aadhaar Technical and Software Project Management

Atishay Limited plays a vital role in the development and maintenance of UIDAI Aadhaar software and associated applications. Their work facilitates Single Sign-On (SSO) Login and integrates Aadhaar for various governmental functions, including the Public Distribution System (PDS), attendance management and identity authentication. This initiative strengthens service delivery and ensures secure access to government benefits.

Computerisation of Primary Agriculture Cooperative Societies (PACS)

The PACS computerisation project is a flagship initiative of the Ministry of Cooperation, Government of India, aimed at digitally transforming the rural credit infrastructure across the country. As a System Integrator, our company is proudly contributing to this national mission by implementing end-to- end computerisation of 4,536 PACS in Madhya Pradesh and 1,782 PACS in Himachal Pradesh (863 under Phase I and 919 under Phase II).

Madhya Pradesh has emerged as the first state in India to achieve 100% Go-Live status for all PACS, setting a benchmark in the country. In Himachal Pradesh, we have successfully achieved approximately 80% Go-Live completion for the PACS under Phase I.

Our role extends beyond implementation — we are committed to providing five years of comprehensive handholding and support services post-Go-Live, ensuring the sustained success of this digital transformation and empowering grassroots cooperative institutions.

Election Project Management

As a trusted partner of the Government of India, Atishay Limited manages vast volumes of electoral data. The responsibilities include data cleansing, photo matching and the production of voter ID cards on PVC. The system is characterised by robust security features to maintain the integrity and confidentiality of voter information.

E-Mitra

E-Mitra is a key initiative by the Government of Rajasthan that brings governance to peoples doorsteps. It serves as a single-window platform both online and through physical kiosks. It is making it easier for citizens to access a wide range of government and private services and is designed to bridge the gap between people and public services. E-Mitra is transforming how Rajasthan connects with its citizens. The Kiosks are run by Local Service Providers (LSPs), like Atishay, who help citizens access services smoothly. They play a key role in making the digital journey easier and more accessible for all through technical and operational support.

Concluded Projects catalogue

Legal Metrology System

Atishay provides advanced IT Solutions for the Legal Metrology Department under the Department of Consumer Affairs, Government of Rajasthan. The system augments the efficacy of legal metrology operations, facilitating business transactions and government-to-business service delivery. This initiative streamlines compliance and regulatory processes.

E-Measurement Book (EMB) System

The Electronic Measurement Book (EMB) Portal is developed for the MP Police Housing Board. It is designed to manage contract data related to construction allotments, ensuring accurate records, efficient workflows and seamless project management.

Aadhaar-Enabled Biometric Attendance System

This system utilises Aadhaar Numbers to track employees check- in and check-out times via biometric authentication. It includes features such as salary generation, leave applications, shift management, job tracking and performance analysis. By automating attendance verification, it enables seamless integration and secure data exchange between various government departments.

E-Mitra at Home

E-Mitra at Home is an initiative by Atishay Limited that brings government services directly to the doorstep of the citizen, enhancing accessibility and convenience. This service allows individuals to access various public services from the comfort of their homes, streamlining processes and reducing the need for physical visits to government offices. By leveraging technology, E-Mitra at Home aims to augment the efficacy of service delivery and ensure swift and seamless availability of essential services to the public.

Financial Highlights

Standalone Financial Review

Particulars	FY 2024-25	FY 2023-24	% Change
Revenue from operations	5,114.76	4,325.77	18.24
Other income (net)	210.88	196.50	7.32
Total income	5,325.64	4,522.27	17.76
EBITDA	1096.23	921.99	18.90
EBITDA margin (%)	20.58%	20.39%	0.93
Profit before tax	957.89	762.30	25.66
Profit after tax	700.52	555.36	26.14
Profit after tax margin (%)	13.15%	12.28%	7.08
Earnings per share (?) basic	6.38	5.06	26.09
Earnings per share (?) diluted	6.31	4.99	26.45

Key Financial Ratios

Particulars	FY 2024-25	FY 2023-24	% Change
Current ratio	2.64	2.74	-3.65
Debt equity ratio	0.09	0.05	80.00
Debt service coverage ratio	18.09	19.47	-7.09
Return on equity (%)	14.41%	13.11%	9.92
Trade receivables turnover ratio	5.82	6.84	-14.91
Trade payables turnover ratio	15.02	22.67	-33.75
Net capital turnover ratio	4.64	4.56	1.75
Operating Profit Margin (%)	18.73%	17.85%	4.93
Net profit Margin (%)	13.15%	12.28%	7.08
Return on capital employed (%)	21.20%	19.83%	6.91

Technology

As part of its commitment to technological innovation, the Company has made a considerable and notable investments in state-of-the-art infrastructure to augment data processing and server operations. Atishay has collaborated with leading technology firms to ensure a seamless supply of high- performance hardware and advanced workstations. This strategic move aims to optimise system efficiency at the operational level.

Additionally, the Company has designed a robust hardware infrastructure to manage high transaction volumes. By leveraging cutting-edge technology and maintaining strong industry partnerships, Atishay ensures superior system performance and operational resilience.

Human Resources

Atishay is committed to build a workplace that prioritises people, inclusivity and diversity. Employee welfare remains at the heart of its initiatives as the Company strives to cultivate a positive and collaborative work culture. Personal and professional growth is actively encouraged by the Company ensuring that employees have ample opportunities to develop their skills and advance in their careers. Currently, the Company has a total workforce of 285 employees as on 31st March 2025, out of which 45 employees are female.

The Companys devotion to employee empowerment is reflected in the comprehensive training and development programmes, designed to help the workforce stay ahead in a rapidly evolving industry. By promoting engagement, well-being, work-life balance and continuous learning, the Company aims to strengthen its human resources and bolster sustained growth.

Additionally, the Company embraces diversity and values different perspectives, ensuring that its HR policies are designed to promote equality and inclusion. The goal of the Company is to build and sustain a talented and highly skilled workforce that meets the ever-changing demands of the industry.

Internal Control Systems and their Adequacy

The Company has appropriate control systems in place for the size, complexity and nature of the Companys operations. The goal of control systems, which are made up of rules and procedures, is to guarantee accurate financial reporting, adherence to policies, procedures and applicable laws and regulations, as well as the efficient collection, use and protection of all assets and resources.

The Internal Auditor reviews an internal systems effectiveness and suitability, as well as its adherence to operating guidelines, accounting standards and corporate policies, in the least populated areas of the business. The Internal Auditor then reports the results to the Audit Committee every quarter. The Board is reassured of the sufficiency and effectiveness of internal controls by an extensive risk-based programme of internal audits and management reviews. Because of this, established and thoroughly documented policies, rules and processes exist. The internal system was designed to guarantee the correctness of the financial and other records to establish financial and other statements, safeguard asset accountability and maintain asset accountability.

Cautionary Statement

In accordance with the applicable regulations and laws, statements in this Management Discussion and Analysis that discuss the Companys goals, strategies, projections, and expectations may be regarded as "forward-looking statements." Actual results could differ materially or radically from what has been said or suggested. The Companys operations could be significantly impacted by several important developments, including significant shifts in Indias political and economic environment, advertising costs, the introduction of new disruptive technologies or business models, exchange rate fluctuations, tax laws, litigation, labour disputes, and interest rates.