Bench Mark Infotech Services Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Red Herring Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, the accounting standards and other applicable provisions of the Companies Act.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factor.

BUSINESS OVERVIEW

We are an integrated IT and digital infrastructure solutions company with over 19 years of experience in providing technology infrastructure solution to government departments, public sector undertakings, institutional customers and private sector clients across India. Operating as a single-window partner, we design, supply, install, commission and maintain the networks, communication systems, surveillance and connectivity backbone on which our customers rely to build, manage and scale their technology ecosystems.

Our service offerings include local and wide area networking (LAN & WAN), wireless communication systems, installation of active network devices, Structured cabling, multimedia and audio-visual systems, smart classrooms, e-classrooms and professional AV, Access control solutions, safety and security surveillance, and allied infrastructure services.

During the current year, we have expanded our service offerings by entering the data storage and data centre solutions segment. Our services under this vertical include supply, deployment and integration of servers, storage systems, virtualization, data backup and recovery solutions, cloud-based services such as Infrastructure as a Service (IaaS) and Software as a Service (SaaS), and cloud security solutions.

We have also initiated our offerings towards Artificial Intelligence (AI) Lab Solutions, including setting up of AI labs and providing edge computing nodes and related infrastructure for AI, machine learning and other computing applications, including AI laboratories, GPU-enabled computing platforms, enterprise storage, high- performance networking, and AI-ready data infrastructure. Further, we have expanded our offerings in the areas of cybersecurity and data security by providing solutions such as Next-Generation Firewalls (NGFW), Unified Threat Management (UTM), endpoint security, identity and access management, and managed security services and NOC (Network Operations center) for centralized monitoring and handling the challenges related to managing, monitoring, and controlling the networks in customer IT ecosystem.

In addition to project execution, we provide annual maintenance contracts (AMC) and support services under contractual arrangements, including technical assistance, operational support, and 24x7 support services to help ensure business continuity and timely resolution of customer requirements.

We also provide fibre optic solutions as part of our service offerings, including renting and provisioning of fibre optic lines wherever required under project contracts, thereby supporting the connectivity requirements of our customers. We also undertake fibre optic infrastructure execution activities such as trenching, digging, ducting, laying of fibre cables, integration of fibre networks and restoration work.

We are empanelled with Bharat Sanchar Nigam Limited (BSNL) as a National Level System Integrator, enabling us to undertake turnkey solutions for customer private networks across India, including WAN, LAN, IT, wireless, IoT and CCTV solutions. We are also empanelled with RailTel Corporation of India Limited as a Business Partner for providing Information and Communication Technology (ICT) solutions through its pan- India network. These empanelments enable us to access procurement opportunities of central government departments and public sector undertakings beyond individual tender-based engagements.

Our business model is to provide integrated solutions with on an order-driven project execution framework, wherein we undertake projects awarded through competitive bidding and tendering processes after providing complete end to end solutions. We procure hardware and software components from original equipment manufacturers ("OEMs") and authorized vendors and integrate them to deliver customized, end-to-end solutions in accordance with project specifications.

Through our comprehensive "under one roof service model, we act as a single-point solutions provider, enabling seamless coordination and efficient execution across all stages of a project. This integrated approach helps customers reduce implementation complexity, improve operational efficiency, and ensure timely project delivery. We work closely with customers to understand their operational and project requirements and deliver technology solutions tailored to their specific needs.

With over 19 years of experience in the technology infrastructure sector and a track record of executing diverse projects across multiple industries, our Company has developed domain expertise in delivering integrated IT and digital infrastructure solutions. Our capabilities enabling us to undertake complex projects and deploy scalable, reliable and technology-driven solutions in accordance with client requirements.

While our Company serves a diversified range of clients, a substantial portion of our business is derived from government departments, public sector undertakings and government-related institutions. We participate in government procurement through various tendering platforms, including the Government e-Marketplace (GeM) portal, state e-procurement portals, and other authorised online tender platforms, in addition to conventional tender processes. This enables us to engage with government departments, public sector undertakings, and government-linked institutions across India

We are committed to maintaining quality standards and operational capabilities. Our Company holds ISO 9001:2015 certification for quality management systems and ISO/IEC 27001:2022 certification for information security management systems.

Our Company is registered as an Infrastructure Provider Category-I (IP-I), which enables us to establish, maintain and lease telecom infrastructure assets such as dark fibre, right of way, duct space and towers to licensed telecom service providers. This registration also supports our capability to undertake fibre optic network development and selective leasing of fibre infrastructure as part of our service offerings.

Our business operations are, currently, concentrated in India, and our revenues are predominately generated from India. Our operations are managed through our registered office at P-118, Swami Swarupananda Sarani, 4th Floor Kolkata-700054, West Bengal, India. which is equipped with necessary IT systems, communication facilities, power backup, internet connectivity, and security arrangements to support day-to-day operations and project execution. We also have a branch office in Patna to support project execution and regional presence. Further, we have deployed technical manpower in various states of eastern India provide on-site support, maintenance services and timely assistance to our customers.

We are led by our Promoter, Chairman and Managing Director, Mr. Vineet Kumar Gupta, who has been associated with the Company since its incorporation and oversees our strategic direction and overall operations. With over two decades of experience in enterprise technology, partnerships, and project execution, he has guided us in executing networking and IT infrastructure projects, including fibre optic and system integration assignments, for government and institutional clients. His involvement in project planning, alliance management, and execution supports continuity in customer relationships, repeat order flow, and our track record of undertaking projects across business verticals.

Over the years, we have executed several projects that demonstrate our capabilities in providing integrated IT and infrastructure solutions. These projects cover a wide range of services, including large-scale network deployments, system integration, audio-visual solutions, IoT applications, and virtualization of critical operations. The average project completion timeline is approximately 2 to 3 months, depending on the nature, scope, size and specifications of the project, as well as client requirements, site readiness, availability of materials and other project-specific conditions. Accordingly, the actual project completion period may vary from project to project based on the specific requirements and circumstances involved.

We have been able to grow our revenue from operations from Rs.3,409.51 Lakhs in the Financial Year ended March 31, 2024 to Rs.6,052.76 Lakhs in the Financial Year ended March 31, 2026, representing a CAGR of 33.24%.

FINANCIAL KPIs OF THE COMPANY

	(Amount in Lakhs except % and ratios)
Particulars	For the year ended March 31,
	2026	2025	2024
Revenue from Operations (Rs. in lakhs)(1)	6,052.76	5,003.85	3,409.51
Growth in Revenue from Operations (%)	20.96%	46.76%	33.74%
Total income (2)	6,399.21	5,079.54	3,476.07
EBITDA (Rs. in lakhs)(3)	1,405.83	828.01	227.89
EBITDA Margin (%)(4)	21.97%	16.30%	6.56%
Profit After Tax (Rs. in lakhs)(5)	1,021.80	583.04	148.02
PAT Margin (%) * (6)	16.88%	11.65%	4.34%
Net worth (7)	2,655.11	1,633.31	1,050.27
Return on Equity ("RoE") (%)(8)	47.65%	43.45%	15.16%
Return on Capital Employed ("RoCE") (%)(9)	47.74%	48.08%	18.51%
Net Asset Value Per Share (Post bonus) ( Rs.)(10)	24.42	15.02	9.66
Debt- Equity Ratio (11)	0.10	0.05	0.13
No. of Successful Bids(12)	14	19	23

Note:

1. Revenue from operations represents the revenue from sale of service & product & other operating revenue of our Company as recognized in the Restated financial information.

2. Total income includes revenue from operations and other income.

3. EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit before tax/ (loss) for the year / period and adding back interest cost, depreciation, and amortization expense.

4. EBITDA margin is calculated as EBITDA as a percentage of total income.

5. Restated profit for the period / year.

6. PAT Margin (%) is calculated as Profit for the year/period as a percentage of Revenue from Operations.

7. Restated Net worth of the company is calculated as share capital plus total reserves & surplus.

8. Return on Equity is calculated as Profit after tax, as restated, attributable to the owners of the Company for the year/ period divided by average equity. Average equity is calculated as average of opening and closing balance of total equity (Shareholders funds) for the year.

9. Return on capital employed calculated as Earnings before interest and taxes divided by capital employed as at the end of respective period/year. (Capital employed calculated as the aggregate value of Tangible networth, total debt and deferred tax liabilities)

10. Net asset value per share calculated as Total networth divide by total no of outstanding shares.

11. Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and short-term borrowings. Total equity is the sum of share capital and reserves & surplus.

12. Number of successful Bids represents the number bids/tenders in which our Company was declared successful during successful during the respective financial year

FACTORS AFFECTING OUR RESULT OF OPERATIONS

Except as otherwise stated in this Red Herring Prospectus and the Risk Factors given in the Red Herring

Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:

1. We are dependent on certain key customers for a substantial portion of our revenues. Loss of relationship with any of these customers may have an adverse effect on our profitability and results of operations;

2. We are dependent on a few vendors/ suppliers who are our OEM partners and we typically do not enter into long-term contracts or arrangements with them. Any loss of such suppliers or any increase in the price will have an adverse impact on our business and our revenue;

3. Significant proportion of our orders are from government related entities which award the contract through the process of tender. Tenders, typically, are awarded to the lower bidder once all other eligibility criteria are met. Our performance could be adversely affected if we are not able to successfully bid for these contracts or required to lower our bid value;

4. We generate a significant percentage of our revenue from operations from customers in Bihar, Odisha and West Bengal in India. If our operations in these states are negatively affected, our financial results and future prospects would be adversely impacted;

5. Our financial condition could be materially and adversely affected if we fail to secure new government and PSU projects;

6. Any increase in the cost of, or a shortfall in the supply of IT Equipments, may adversely affect the pricing and supply of our products and have an adverse effect on our business, results of operations and financial condition;

7. Our success depends largely upon the knowledge and experience of our Promoters. Any loss of our Promoters and key managerial personnel or our ability to attract and retain them could adversely affect our business, operations and financial condition;

8. Our working capital requirements have fluctuated in the past and may continue to fluctuate in the future. Any inability to efficiently manage our working capital requirements, including timely realization of trade receivables, may adversely affect our business, financial condition, cash flows and results of operations;

9. A significant portion of our assets comprises trade receivables. Any delay in realization, inability to recover outstanding dues, or deterioration in the creditworthiness of our customers may adversely affect our liquidity, cash flows, financial condition and results of operations;

10. Our competitive position and future growth depend on our ability to adapt to rapidly evolving technologies, infrastructure standards, and customer requirements in the IT infrastructure and solutions market.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The restated summary statement of assets and liabilities of the Company as at March 31, 2026, March 31, 2025 and 2024 and the related restated summary statement of profits and loss and cash flows for the year ended March 31, 2026, March 31, 2025 and 2024 (herein collectively referred to as ("Restated Summary Statements") have been compiled by the management from the audited Financial Statements of the Company for the year ended on March 31, 2026, March 31, 2025 and 2024 approved by the Board of Directors of the Company. Restated Summary Statements have been prepared to comply in all material respects with the provisions of Part I of Chapter III of the Companies Act, 2013 (the "Act") read with Companies (Prospectus and Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations") issued by SEBI and Guidance note on Reports in Companies Prospectuses (Revised 2019) ("Guidance Note"). Restated Summary Statements have been prepared specifically for inclusion in the offer document to be filed by the Company with the NSE in connection with its proposed SME IPO. The Companys management has recast the Financial Statements in the form required by Schedule III of the Companies Act, 2013 for the purpose of restated Summary Statements.

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India.

All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.

2. USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

3. CURRENT & NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non-current.

"Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realised in, or is intended for sale or consumption in, the Companys normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realised within 12 months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date Current assets include the current portion of non-current financial assets. All other assets are classified as non-current."

"Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in the Companys normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date."

Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

4. OPERATING CYCLE

All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out above which are in accordance with the Schedule III to the Act. Based on the nature of services and the time between the acquisition of assets for providing of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current & non-current classification of assets and liabilities.

5. PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS

(i) Property, Plant & Equipment

All Property, Plant & Equipment are recorded at cost including taxes, duties, freight and other incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use.

(ii) Intangible Assets

Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any.

6. DEPRECIATION / AMORTISATION

"Depreciation on fixed assets is calculated on a Written - Down value method using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013.

Intangible assets including internally developed intangible assets are amortised over the year for which the company expects the benefits to accrue. Intangible assets are amortized on straight line method basis over 5 years in pursuance of provisions of AS-26."

7. INVENTORIES

Inventories comprises of stock-in-trade. The cost of stock-in-trade is determined using the First-In, First- Out (FIFO) method. Cost includes the purchase price, duties, and taxes (other than those subsequently recoverable from government authorities). Net realisable value represents the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale. Provision for inventory obsolescence is reviewed periodically, considering factors such as estimated usage, shelf life, technological changes, and prevailing market conditions.

8. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arms length transaction between knowledgeable, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable value.

9. INVESTMENTS:

"Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis.

Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment, determined individually for each investment. Cost of investments sold is arrived using average method."

10. FOREIGN CURRENCY TRANSLATIONS

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Any income or expense on account of exchange difference either on settlement or on translation at the balance sheet date is recognized in Profit & Loss Account in the year in which it arises.

11. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

13. REVENUE RECOGNITION

"Revenue is recognized when there is no significant uncertainty as to the measurement or ultimate collection of the consideration. Revenue is measured at the amount of consideration receivable and is recognized net of discounts, rebates and taxes collected on behalf of the Government.

a) Revenue from IT Infrastructure Solutions Projects

Revenue from IT Infrastructure Projects is recognized when the significant risks and rewards of ownership in the goods are transferred to the customer and the related services are rendered in accordance with the terms of the contract

b) Sale of Services

Revenue from Operations and Maintenance (O&M) Services is recognized over the period during which the services are rendered using the proportionate completion method, as the services are performed in accordance with the contractual terms.

Revenue from Manpower Services is recognized over the period during which the personnel are deployed and the related services are rendered, based on the contractual rates and the actual services provided to the customer.

Revenue recognition is postponed to the extent of any significant uncertainty regarding the measurement or ultimate collection of the consideration."

14. OTHER INCOME

Interest Income on fixed deposit is recognized on time proportion basis. Other Income is accounted for when right to receive such income is established.

15. TAXES ON INCOME

"Income taxes are accounted for in accordance with Accounting Standard (AS-22) - "Accounting for taxes on income", notified under Companies (Accounting Standards) Rules, 2021. Income tax comprises of both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961."

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

16. CASH AND BANK BALANCES

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Other Bank Balances are short-term balance ( with original maturity is more than three months but less than twelve months).

17. EARNINGS PER SHARE

"Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity share outstanding during the year. Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares."

18. EMPLOYEE BENEFITS

Defined Contribution Plan:

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the statement of profit and loss.

Defined Benefit Plan:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service without any monetary limit. Vesting occurs upon completion of five years of service. Provision for gratuity has been made in the books as per actuarial valuation done as at the end of the year.

19. SEGMENT REPORTING

"The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities"."

RESULTS OF OUR OPERATIONS

Based on Financial Statements of Profit & Loss as Restated

						(Amount Rs. in lakhs)
Particulars	For the year ended March 31, 2026	% of Total**	For the year ended March 31, 2025	% of Total**	For the year ended March 31, 2024	% of Total**
INCOME
Revenue from Operations	6,052.76	94.59%	5,003.85	98.51%	3,409.51	98.09%
Other Income	346.45	5.41%	75.69	1.49%	66.56	1.91%
Total Income (A)	6,399.21	100.00%	5,079.54	100.00%	3,476.07	100.00%
EXPENDITURE
Purchases of Stock-in-Trade	2,231.97	34.88%	2,636.40	51.90%	1,643.87	47.29%
Direct Expenses	2,097.52	32.78%	1,107.22	21.80%	929.16	26.73%
Changes in inventories of stock-in-trade	(66.89)	(1.05%)	(17.62)	(0.35%)	(5.12)	(0.15%)
Employee benefits expense	318.51	4.98%	269.03	5.30%	335.16	9.64%
Finance costs	57.87	0.90%	43.36	0.85%	27.27	0.78%
Depreciation and amortization expense	9.36	0.15%	5.62	0.11%	7.68	0.22%
Other expenses	387.20	6.05%	241.08	4.75%	331.96	9.55%
Total Expenses (B)	5,035.54	78.69%	4,285.09	84.36%	3,269.98	94.07%
Profit before tax (A-B)	1,363.67	21.31%	794.45	15.64%	206.09	5.93%
Tax expense/ (benefit)
(i) Current tax	367.95	5.75%	236.20	4.65%	114.87	3.30%
(ii) Deferred tax expenses/(credit)	(26.08)	(0.41%)	(24.79)	(0.49%)	(56.80)	(1.63%)
Net tax expense/ (benefit)	341.87	5.34%	211.41	4.16%	58.07	1.67%
Profit/(Loss) for the year/Period	1,021.80	15.97%	583.04	11.48%	148.02	4.26%

* *Total refers to Total Revenue

Components of our Profit and Loss Account Income

Our total income comprises of revenue from operations and other income.

Revenue from Operation

The Revenue from operations as a percentage of our total income was 94.59%, 98.51% and 98.09% for the Financial Years ended March 31, 2026, March 31, 2025 and March 31, 2024 respectively.

	(Amount Rs. in Lakhs)
Particulars	For the year ended 31 March 2026	For the year ended 31 March 2025	For the year ended 31 March 2024
Revenue from IT Infrastructure Solutions Projects	5,045.21	4,246.69	2,744.54
Sale of Services	1,007.55	757.16	664.97
TOTAL	6,052.76	5,003.85	3,409.51

Other Income

Our other Income consists of Profit on sale of investment, Creditors written back, Miscellaneous income, Interest on fixed deposit, unsecured loan and income tax refund.

			(Amount Rs. in Lakhs)
Particulars	For the year ended 31 March 2026	For the year ended 31 March 2025	For the year ended 31 March 2024
Interest on fixed deposit	52.04	44.99	43.11
Interest on income tax refund	-	-	0.86
Interest on unsecured loan	-	5.34	-
Creditors written back	293.47	25.33	17.96
Profit on sale of Investment	-	-	3.69
Miscellaneous income	0.94	0.03	0.94
TOTAL	346.45	75.69	66.56

Expenditure

Our total expenditure primarily consists of Purchase of Stock-in-trade, Direct expenses, Employee benefit expenses, finance costs, Depreciation & amortization expense and Other Expenses.

Direct Expenses

Our direct expenses comprise of Project cost, Labour charges and Carriage & freight charges.

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries and wages, Directors Remuneration, Contribution to PF & ESIC, Gratuity expenses and Staff Welfare expenses.

Finance costs

Our Finance cost expenses comprise of bank Charges & processing charges, Bank guarantee & commission charges and Interest on borrowings, late payment of taxes and MSME creditors.

Other Expenses

Our other expenses primarily comprise of Auditors fees, Legal & professional fees, Rent, Travelling & conveyance, Office expenses, Repair & Maintenance, Rates & taxes, Provision for bed & doubtful debts and sundry balances written off.

			(Amount Rs. in Lakhs)
Particulars	For the year ended 31 March 2026	For the year ended 31 March 2025	For the year ended 31 March 2024
Audit Fees	1.50	0.50	0.50
Legal & professional fees	20.04	13.69	15.98
Rent	14.78	17.43	25.00
Travelling and Conveyance	115.98	88.85	97.30
Business promotion expense	6.45	7.82	4.28
Office expense	26.35	16.88	18.11
Electricity Expenses	4.04	6.43	17.99
Printing and Stationery	1.70	4.40	6.24
Internet and communication charges	1.73	1.50	2.41
Repair and Maintenance	8.96	4.67	17.40
Tender Processing charges	4.29	4.57	6.96
Insurance	1.35	1.66	4.25
Rate and Taxes	7.41	8.65	9.45
Postage and courier charges	0.44	1.17	1.36
Commission	-	2.40	15.23
Software subscription charges	0.29	-	0.36
Provision for bad & doubtful debts	41.38	59.04	-
CSR Expenses	8.52	-	-
Donation	0.95	0.80	1.99
Sundry Balances Written Off	110.99	0.32	86.87
Liquidity damage charges	9.75	-	-
Miscellaneous Expenses	0.30	0.30	0.28
Total	387.20	241.08	331.96

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

Fiscal 2026 compared with fiscal 2025

Revenue from Operations

The Revenue from Operations of our company for fiscal year 2026 was Rs. 6,052.76 Lakhs against Rs. 5,003.85 Lakhs for Fiscal year 2025. An increase of 20.96% in revenue from operations. The increase was primarily attributable to the write-back of certain long-outstanding and non-moving vendor balances during Fiscal 2026.The write-back was undertaken based on managements review of the underlying transactions, which primarily related to cases where services were not fully fulfilled, transactions remained incomplete, materials were not delivered, or materials/services supplied were defective or not accepted by the Company. Considering the prolonged ageing and non-moving nature of these balances, management concluded that no further payment obligation existed and accordingly wrote back the balances in accordance with the applicable accounting framework.

Other Income

The other income of our company for fiscal year 2026 was Rs. 346.45 Lakhs against Rs. 75.69 for Fiscal year 2025. The increase of 357.72% in other income. This increase was due to the write-back of certain old outstanding creditor balances during the year. These liabilities were no longer payable and were accordingly written back in accordance with the applicable accounting standards. As a result, the Company recognized the write-back amount as Other Income during Fiscal Year 2026.

Total Income

The total income of the company for fiscal year 2026 was Rs.6,399.21 Lakhs against Rs.5,079.54 Lakhs of total income for Fiscal year 2025 with an increase of 25.98% in total income. This increase was due to higher revenue from operations driven by increased execution of IT infrastructure and digital infrastructure projects, higher order inflows, expansion of our business operations, and increased revenue from Annual Maintenance Contracts (AMCs) and fibre optic network maintenance services. The increase was also supported by higher other income during the year.

Expenditure

Purchase of Stock-In-Trade

In Fiscal 2026, Purchase of Stock-in-Trade of our company was Rs.2,231.97 lakhs against in Rs.2,636.40 lakhs in fiscal 2025. A decrease of 15.34%. This was due to a change in the project mix during the year, with a higher proportion of service-oriented, system integration, and Annual Maintenance Contract (AMC) projects, which required comparatively lower procurement of traded goods.

Direct Expenses

The direct expenses of our company for fiscal year 2026 was Rs.2,097.52 Lakhs against Rs.1,107.22 for Fiscal year 2025. The increase of 89.44% in direct expenses. This increase was due to to the significant increase in service-oriented project execution during the year. As explained above, the purchase of stock-in-trade decreased because the Company executed a higher proportion of service-based projects, including system integration, installation, commissioning, and Annual Maintenance Contract (AMC) services, which required comparatively lower procurement of materials. Consequently, direct service-related expenses such as manpower, technical support, installation, logistics, and project execution costs increased significantly. This shift in the project mix resulted in higher Direct Expenses and lower purchases during Fiscal Year 2026

Changes in inventories of stock-in-trade

The Changes in inventories of stock-in-trade of our company for fiscal year 2026 was Rs.(66.89) Lakhs against Rs.(17.62) for Fiscal year 2025.

Employee Benefit Expenses

In Fiscal 2026, the Company incurred employee benefit expenses of Rs.318.51 Lakhs against Rs.269.03 Lakhs expenses in fiscal 2025. An increase of 18.39%. This increase was due to the recruitment of additional technical, project execution, and marketing personnel during the year to support the growing scale of the Companys operations

Finance Costs

The finance costs for the Fiscal 2026 were Rs.57.87 Lakhs while it was Rs.43.36 Lakhs for Fiscal 2025. An increase of 33.46%. This increase was due to the higher utilization of bank credit facilities to support the execution of government projects. As per the tender conditions, the Company was required to furnish Earnest Money Deposits (EMD) and Performance Bank Guarantees (PBG), typically amounting to 2% of the tender value and 10% of the awarded contract value, respectively. Accordingly, the Company availed additional bank guarantee facilities, resulting in higher bank guarantee commission, processing charges, and other finance- related costs under the CGTMSE scheme. In addition, the Company also discharged an outstanding Income Tax demand during the year, which included applicable interest and related charges. These factors collectively contributed to the increase in finance costs during Fiscal Year 2026

Other Expenses

In fiscal 2026, our other expenses were Rs. 387.20 Lakhs and Rs. 241.08 Lakhs in fiscal 2025. An increase of 60.61%. This increase was due to the expansion of the Companys business operations and the execution of a higher volume of government projects during the year. The increase was mainly driven by higher travelling and conveyance expenses, office and administrative expenses, communication costs, professional and legal fees, rent, repair and maintenance, marketing and business development expenses, and other project-related operational costs incurred to support the growing scale of operations.

Additionally, the Company strengthened its business development activities and expanded its operational presence across various project locations, which also contributed to the increase in other expenses. The increase in these expenses is in line with the growth in the Companys revenue and reflects the investments made to support business expansion, improve operational capabilities, and ensure the timely execution of projects.

EBITDA MARGIN

The increase in EBITDA margin in FY 26 is mainly due to the 20.96% increase in revenue from operations from Rs.5,003.85 lakhs in FY 25 to Rs.6,052.76 lakhs in FY 26. The improvement was primarily driven by higher contribution from higher-margin projects, along with increased contribution from AMC and fibre optic network maintenance activities. The change in revenue mix during FY 26, including a higher contribution from nonGovernment projects, also supported the improvement in operating margins.

Further, even after excluding other income and adjusting for sundry balances written off, the Companys Operating EBITDA increased from Rs.752.64 lakhs in FY 25 to Rs.1,170.37 lakhs in FY 26. Accordingly, the Operating EBITDA margin improved from 15.04% in FY 25 to 19.34% in FY 26, indicating that the improvement in margins was not pertaining to other income or sundry balances written off, but was supported by the underlying operating performance.

		(Rs. in lakhs)
Particulars	FY 26	FY 25
EBIDTA -1	1,405.83	828.01
Less: Other income - II	346.45	75.69
Add: Sundry balance written off - III	110.99	0.32
Operating EBIDTA - IV (I-II+III)	1,170.37	752.64
Revenue from operation - V	6,052.76	5,003.85
Operating EBIDTA margin % - (IV/V)	19.34%	15.04%

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2026 of Rs. 1,363.67 Lakhs against profit before tax of Rs. 794.45 Lakhs in Fiscal 2025. An increase of Rs. 71.65%. This increase was due to the Companys strategic focus on executing higher-margin and more profitable projects during Fiscal Year 2026. The Company consciously prioritized large-value government contracts and profitable project opportunities while reducing its participation in smaller projects with comparatively lower profit margins.

This strategic shift, coupled with efficient project execution, better cost management, and an improved project mix, resulted in enhanced operating margins and higher profitability.

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2026 were at Rs. 1,021.80 Lakhs against profit after tax of Rs. 583.04 Lakhs in fiscal 2025, An Increase of 75.25%. This increase was due to the Companys strategic focus on executing higher- margin and more profitable projects during Fiscal Year 2026. The Company consciously prioritized large-value government contracts and profitable project opportunities while reducing its participation in smaller projects with comparatively lower profit margins. This strategic shift, coupled with efficient project execution, better cost management, and an improved project mix, resulted in enhanced operating margins and higher profitability.

Fiscal 2025 compared with fiscal 2024

Revenue from Operations

The Revenue from Operations of our company for fiscal year 2025 was Rs. 5,003.85 Lakhs against Rs. 3,409.51 Lakhs for Fiscal year 2024. An increase of 46.76% in revenue from operations. This increase was due to higher execution of IT infrastructure and digital infrastructure projects for government departments and public sector undertakings, increased order inflows, expansion of our business operations, addition of new clients, and higher revenue from system integration projects and fibre optic network maintenance services.

Other Income

The other income of our company for fiscal year 2025 was Rs. 75.69 Lakhs against Rs. 66.56 for Fiscal year 2024. The increase of 13.72% in other income. This increase was due to write-back of certain old outstanding creditor balances during the year. These liabilities were no longer payable and were accordingly written back in accordance with the applicable accounting standards. As a result, the Company recognized the write-back amount as Other Income during Fiscal Year 2025

Total Income

The total income of the company for fiscal year 2025 was Rs. 5,079.54 Lakhs against Rs. 3,476.07 Lakhs of total income for Fiscal year 2024 with an increase of 46.13 % in total income. This increase was due to higher revenue from operations driven by increased execution of IT infrastructure and digital infrastructure projects, higher order inflows, expansion of our business operations, addition of new clients, and increased revenue from system integration projects and fibre optic network maintenance services. The increase was also supported by higher other income during the year.

Expenditure

Purchase of Stock-In-Trade

In Fiscal 2025, Purchase of Stock-in-Trade of our company was Rs. 2,636.40 lakhs against in Rs. 1,643.87 lakhs in fiscal 2024.An increase of 60.38%. This was due to higher volume of government projects executed during the year. The increase was also driven by higher procurement of networking equipment, IT hardware, surveillance systems, and other project-related materials required for the execution of system integration and infrastructure projects. The growth in purchases was in line with the increase in revenue from operations and reflects the expansion of the Companys business activities and project execution during Fiscal Year 2025

Direct Expenses

The direct expenses of our company for fiscal year 2025 was Rs. 1,107.22 Lakhs against Rs. 929.16 for Fiscal year 2024. The increase of 19.16% in direct expenses. This increase was due to the growth in the Companys revenue from operations and the higher volume of projects executed during the year. As the scale of business operations increased, the Company incurred higher project execution costs, including procurement of materials, manpower, installation, subcontracting, logistics, and other direct project-related expenses. Accordingly, the increase in Direct Expenses was in line with the growth in revenue and reflects the expansion of the Companys business activities.

Changes in inventories of stock-in-trade

The Changes in inventories of stock-in-trade of our company for fiscal year 2025 was Rs. (17.62) Lakhs against Rs. (5.12) for Fiscal year 2024.

Employee Benefit Expenses

In Fiscal 2025, the Company incurred employee benefit expenses of Rs. 269.03 Lakhs against Rs. 335.16 Lakhs expenses in fiscal 2024. A decrease of 19.73%. This decrease was due to the resignation of certain employees during the year and a reduction in the remuneration of one of the Directors. These factors helped moderate the overall increase in employee benefit expenses despite the Companys expansion in business operations and recruitment of additional personnel for project execution

Finance Costs

The finance costs for the Fiscal 2025 were Rs.43.36 Lakhs while it was Rs.27.27 Lakhs for Fiscal 2024. An increase of 59.00%. This increase was due to higher utilization of bank credit facilities to support the execution of government projects. As per the terms and conditions of government tenders, the Company was required to furnish Earnest Money Deposits (EMD) and Performance Bank Guarantees (PBG), generally amounting to 2% of the tender value and 10% of the awarded contract value, respectively. Consequently, the Company availed higher bank guarantee facilities, resulting in an increase in bank guarantee commission, processing charges, and other finance-related costs.

In addition, the expansion of the Companys business operations and the increase in the volume of projects executed during the year led to higher utilization of working capital facilities, which also contributed to the increase in finance costs. The increase in finance costs was in line with the overall growth in the Companys operations and project execution activities during Fiscal Year 2025.

Other Expenses

In fiscal 2025, our other expenses were Rs.241.08 Lakhs and Rs.331.96 Lakhs in fiscal 2024. A decrease of 27.38%. This decrease was due to Companys continued focus on cost optimization and improved operational efficiency. During the year, the Company exercised better control over administrative, travelling, marketing, and other operating expenses while optimizing the utilization of available resources. In addition, certain one-time and non-recurring expenses incurred during Fiscal Year 2024 were not repeated in Fiscal Year 2025, resulting in a reduction in other expenses.Despite the decrease in Other Expenses, the Company successfully expanded its business operations and increased its revenue through efficient project execution, demonstrating improved cost management and operational effectiveness.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2025 of Rs.794.45 Lakhs against loss before tax of Rs.206.09 Lakhs in Fiscal 2024. An increase of 285.49%. This increase was due to Companys strategic focus on executing higher-margin and more profitable projects during Fiscal Year 2025. The Company consciously prioritized large-value government contracts and profitable project opportunities while reducing its participation in smaller projects with comparatively lower profit margins. This strategic shift, coupled with efficient project execution, better cost management, and an improved project mix, resulted in enhanced operating margins and higher profitability.

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2025 were at Rs.583.04 Lakhs against loss after tax of Rs.148.02 Lakhs in fiscal 2024, An Increase of 293.89%. This increase was due to Companys strategic focus on executing higher-margin and more profitable projects during Fiscal Year 2025. The Company consciously prioritized large-value government contracts and profitable project opportunities while reducing its participation in smaller projects with comparatively lower profit margins. This strategic shift, coupled with efficient project execution, better cost management, and an improved project mix, resulted in enhanced operating margins and higher profitability.

Fiscal 2026 compared with fiscal 2025 (Balance sheet items)

Long-Term Borrowings

In Fiscal 2026, the Company reported long-term borrowings of Rs.73.03 Lakhs as against Nil in Fiscal 2025. This was due to the vehicle loan availed by the Company during the year for the acquisition of a motor vehicle to support its business operations. As no such borrowing existed in the previous year, the corresponding longterm borrowing balance was not reflected in the earlier financial statements.

Short-Term Borrowings

In Fiscal 2026, the Company reported short-term borrowings of Rs.197.61 Lakhs as against Rs.77.84 Lakhs in Fiscal 2025, an increase of 153.87%. This was due to higher working capital requirements arising from the significant growth in the Companys business operations and project execution during Fiscal Year 2026. The Company availed additional short-term credit facilities to finance the procurement of materials, meet project execution expenses, and support day-to-day operational requirements. Further, the increase in short-term borrowings was necessitated by the execution of large government projects, where substantial funds were required for working capital, including procurement, manpower deployment, and the submission of Earnest Money Deposits (EMD) and Performance Bank Guarantees (PBG) as per tender conditions. The higher utilization of working capital facilities enabled the Company to execute projects efficiently and support its growing order book during the year.

Trade Receivables

In Fiscal 2026, the Company reported trade receivables of Rs. 5,497.96 Lakhs as against Rs. 3,795.82 Lakhs in Fiscal 2025, an increase of 44.84%. The increase in Trade Receivables is primarily attributable to the nature of the Companys business, wherein a significant portion of the Companys projects and orders are executed for Central and State Government departments, Public Sector Undertakings (PSUs) and other government-linked entities. Such projects generally involve milestone-based execution and billing, with a substantial portion of the Companys order execution and revenue generation taking place during the fourth quarter of the financial year. Consequently, billing and recognition of revenue towards the latter part of the financial year resulted in higher outstanding receivables as at March 31, 2026.

Further, the ageing profile of Trade Receivables reflects an increase in the period taken for realization of certain outstanding amounts. In particular, Trade Receivables outstanding for 6 months to 1 year increased by more than 5 times, from Rs.141.06 Lakhs as at March 31, 2025 to Rs.769.61 Lakhs as at March 31, 2026. In addition, receivables amounting to approximately Rs.1,000 Lakhs were outstanding for more than one year as at March 31, 2026. This deterioration in the ageing profile is primarily attributable to extended payment cycles of certain Government departments, PSUs and other government-linked customers.

The increase in receivables in the 6 months to 1 year category was primarily due to the time taken by the respective customers to process and approve invoices, completion of internal verification and certification procedures, budgetary approvals and allocation of funds, and subsequent release of payments. Certain receivables also remained outstanding beyond one year due to delays in the completion of such customer- specific administrative and payment processes. Such outstanding receivables are primarily a consequence of the payment processes followed by the Companys Government and PSU customers and do not represent a change in the underlying nature of the Companys business or credit policy.

Trade Payables

In Fiscal 2026, the Company reported trade payables of Rs. 3,448.28 Lakhs as against Rs. 3,524.53 Lakhs in Fiscal 2025, a decrease of 2.16%. This was due to the Companys improved working capital management and timely settlement of dues to suppliers and vendors during Fiscal Year 2026. Despite the significant increase in business operations and project execution, the Company maintained effective cash flow management and utilized funds generated from operations and other financing sources to reduce outstanding trade payables.The reduction in trade payables also reflects the Companys continued focus on strengthening relationships with its suppliers through timely payments, while efficiently managing its procurement and payment cycles.

Inventories

In Fiscal 2026, the Company reported inventories of Rs. 106.94 Lakhs as against Rs. 40.05 Lakhs in Fiscal 2025, an increase of 167.02%. This was due to the procurement of materials for ongoing and upcoming government projects scheduled for execution. During Fiscal Year 2026, the Company maintained a higher level of inventory to ensure the timely availability of critical materials and equipment required for project execution and to avoid supply chain disruptions.

Long-Term Loans & Advances

In Fiscal 2026, the Company reported long-term loans and advances of Rs. 149.03 Lakhs as against Rs. 114.82 Lakhs in Fiscal 2025, an increase of 29.79%. This was due to to the payment of instalments towards the acquisition of land in Bihar.

Short-Term Loans & Advances

In Fiscal 2026, the Company reported short-term loans and advances of Rs. 152.13 Lakhs as against Rs. 164.24 Lakhs in Fiscal 2025, a decrease of 7.37%. This was due to recovery and adjustment of advances previously provided to employees during the year. As the outstanding staff advances were settled and reduced during Fiscal Year 2026, the balance of staff advances decreased as at the end of the year

Fiscal 2025 compared with fiscal 2024 (Balance sheet items)

Short-Term Borrowings

In Fiscal 2025, the Company reported short-term borrowings of Rs. 77.84 Lakhs as against Rs. 141.13 Lakhs in Fiscal 2024, a decrease of 44.85%. This was due to the lower utilization of the Companys Bank Overdraft (OD) facilities and borrowings from Non-Banking Financial Companies (NBFCs) during Fiscal Year 2026. Improved cash flow management, higher collections from customers, and efficient working capital management reduced the Companys reliance on short-term borrowings, resulting in a decrease in the outstanding balance at the end of the year.

Trade Receivables

In Fiscal 2025, the Company reported trade receivables of Rs. 3,795.82 Lakhs as against Rs. 2,559.47 Lakhs in Fiscal 2024, an increase of 48.30%. This was due to growth in the Companys revenue from operations and the successful execution of a higher volume of government projects during Fiscal Year 2025. As the Company primarily executes projects for government departments and public sector undertakings, payments are generally realized after the completion of project milestones, submission of invoices, and fulfillment of contractual documentation and approval processes.Accordingly, the increase in project execution and billing during the year resulted in a corresponding increase in outstanding trade receivables as at the end of Fiscal Year 2025. The increase in trade receivables was therefore in line with the growth in the Companys business operations and revenue and does not indicate any material deterioration in the recoverability of receivables

Trade Payables

In Fiscal 2025, the Company reported trade payables of Rs. 3,524.53 Lakhs as against Rs. 1,969.68 Lakhs in Fiscal 2024, an increase of 78.94%. This was due to the significant growth in the Companys business operations and the higher volume of government projects executed during Fiscal Year 2025. To support the increased project execution, the Company procured a higher volume of materials and services from its suppliers and vendors.As a result, the outstanding balance payable to suppliers increased as at the end of the year. The increase in trade payables was in line with the growth in procurement activities and business operations and reflects the normal credit terms extended by vendors for project execution

Inventories

In Fiscal 2025, the Company reported inventories of Rs. 40.05 Lakhs as against Rs. 22.43 Lakhs in Fiscal 2024, an increase of 78.56%. This was due to the higher procurement of materials for ongoing and upcoming government projects during Fiscal Year 2025. In line with the growth in the Companys business operations and order book, the Company maintained a higher level of inventory to ensure the timely availability of project materials and uninterrupted execution of contracts.The increase in inventory also reflects the Companys strategy of maintaining adequate stock levels to meet project schedules, minimize procurement lead times, and support the efficient execution of government projects

Long-Term Loans & Advances

In Fiscal 2025, the Company reported long-term loans and advances of Rs. 114.82 Lakhs as against Nil in Fiscal 2024. This was due to registration of land situated in Bihar during Fiscal 2025. Although the advance towards the acquisition of the land had been made earlier, the registration of the property was completed during Fiscal 2025. Consequently, the amount was classified as a long-term advance as of March 31, 2025, whereas no such balance was reflected as of March 31, 2024

Short-Term Loans & Advances

In Fiscal 2025, the Company reported short-term loans and advances of Rs. 164.24 Lakhs as against Rs. 133.29 Lakhs in Fiscal 2024, an increase of 23.22%. This was due to higher advances paid to vendors for the procurement of materials and execution of ongoing government projects. In addition, advances were provided to employees to meet project-related expenses, including travel, installation, and site execution activities. These advances were necessary to ensure the timely execution and completion of projects, resulting in an increase in the outstanding balance during the year.

Cash Flows

	(Amount Rs. in lakhs)
Particulars	For the year ended March 31, 2026	For the year ended March 31,2025	For the year ended March 31, 2024
Net Cash Flow from/ (used in) Operating Activities	(676.52)	653.91	486.62
Net Cash Flow from/ (used in) Investing Activities	(105.70)	(92.43)	19.33
Net Cash Flow from/ (used in) Financing Activities	167.43	(83.71)	(321.65)

Cash Flows from Operating Activities

1. For the year ended March 31, 2026, Net cash flow used in operating activities was Rs. 676.52 Lakhs. This comprised of the net profit before tax of Rs. 1,363.67 Lakhs, which was primarily adjusted for Interest expenses of Rs. 32.80 Lakhs, Gratuity provision of Rs. 2.23 lakhs, Creditors written back of Rs. 293.47 Lakhs, Bad debts of Rs. 41.38 Lakhs, Sundry balances written off of Rs. 110.99 Lakhs, Interest income of Rs. 52.04 Lakhs and Depreciation and amortisation expenses of Rs. 9.36 Lakhs. The resultant operating profit before working capital changes was Rs. 1,214.92 Lakhs, which was primarily adjusted for an increase in Trade Receivables of Rs. 1,743.52 Lakhs, Loan and advances of Rs. 98.88 Lakhs, Other Non-current assets of Rs. 49.74 Lakhs, Inventories of Rs. 66.89 Lakhs, Trade payables of Rs. 217.22 Lakhs and Other current liabilities & Provision of Rs. 106.64 Lakhs.

Cash used from operations was Rs. 420.25 Lakhs, which was reduced by direct tax paid of Rs. 256.27 Lakhs, resulting into net cash flow used in operating activities was Rs. 676.52 Lakhs.

The increase in Trade Receivables is primarily attributable to the nature of the Companys business, wherein a significant portion of the Companys projects and orders are executed for Central and State Government departments, Public Sector Undertakings (PSUs), and other government-linked entities. Such projects generally involve milestone-based execution and billing, with a substantial portion of the Companys order execution and revenue generation taking place during the fourth quarter of the financial year.

Accordingly, the Trade Receivables as at the end of FY 2026 were impacted by the concentration of project execution and billing towards the latter part of the financial year. Further, payments from Government departments and PSUs are subject to their internal approval processes, budgetary allocations and availability or release of funds, which may result in extended payment cycles. Consequently, the realization of receivables may not always be aligned with the timing of revenue recognition and billing, resulting in higher outstanding receivables at the end of the financial year.

The ageing of Trade Receivables is also influenced by the payment cycles of Government departments and PSUs. Certain receivables may remain outstanding for extended periods due to the time taken by the respective departments/entities for processing bills, completion of internal approvals and release of funds. Such outstanding receivables are primarily a consequence of the payment processes followed by the Companys Government and PSU customers and do not represent a change in the underlying nature of the Companys business or credit policy

2. For the year ended March 31, 2025, Net cash flow from operating activities was Rs. 653.91 Lakhs. This comprised of the net profit before tax of Rs. 794.45 Lakhs, which was primarily adjusted for Interest expenses of Rs. 27.94 Lakhs, Gratuity provision of Rs. 3.04 lakhs, Creditors written back of Rs. 25.33 Lakhs, Bad debts of Rs. 59.04 Lakhs, Sundry balances written off of Rs. 0.32 Lakhs, Interest income of Rs. 50.33 Lakhs and Depreciation and amortisation expenses of Rs. 5.62 Lakhs. The resultant operating profit before working capital changes was Rs. 814.75 Lakhs, which was primarily adjusted for an increase in Inventories of Rs. 17.62 Lakhs, Other Non-Current Assets of Rs. 181.57 Lakhs, Trade receivables of Rs. 1,295.39 Lakhs, Loans & advances of Rs. 31.27 Lakhs and Trade payables of Rs. 1,580.18 Lakhs. Additionally, there was a decrease in

Other current liabilities & provisions of Rs. 47.28 Lakhs.

Cash generated from operations was Rs. 821.80 Lakhs, which was reduced by direct tax paid of Rs. 167.89 Lakhs, resulting into net cash flow from operating activities of Rs. 653.91 Lakhs.

3. For the year ended March 31, 2024, Net cash flow from operating activities was Rs. 486.62 Lakhs. This comprised of the net profit before tax of Rs. 206.09 Lakhs, which was primarily adjusted for Interest expenses of Rs. 14.12 Lakhs, Gratuity provision of Rs. 4.51 lakhs, Creditors written back of Rs. 17.96 Lakhs, Sundry balances written off of Rs. 86.87 Lakhs, Interest income of Rs. 43.97 Lakhs, Profit on sale of Mutual fund of Rs. 3.69 Lakhs and Depreciation and amortisation expenses of Rs. 7.68 Lakhs.

The resultant operating profit before working capital changes was Rs. 253.65 Lakhs, which was primarily adjusted for an increase in Inventories of Rs. 5.12 Lakhs, Other Non-Current Assets of Rs. 121.76 Lakhs, Trade receivables of Rs. 640.52 Lakhs, Trade payables of Rs. 592.42 Lakhs and Other current liabilities & provisions of Rs. 478.23 Lakhs. Additionally, there was a decrease in Loans & advances of Rs. 70.42 Lakhs.

Cash generated from operations was Rs. 627.32 Lakhs, which was reduced by direct tax paid of Rs. 140.71 Lakhs, resulting into net cash flow from operating activities of Rs. 486.62 Lakhs.

Cash Flows from Investment Activities

1. For the year ended March 31, 2026, net cash used in investing activities was Rs. 105.70 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs. 86.63 Lakhs, Interest income received of Rs. 15.14 Lakhs, Capital advance against property of Rs. 34.21 Lakhs.

2. For the year ended March 31, 2025, net cash used in investing activities was Rs. 92.43 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs. 1.83 Lakhs, Interest income received of Rs. 24.22 Lakhs, Capital advance against property of Rs. 114.82 Lakhs.

3. For the year ended March 31, 2024, net cash flow from investing activities was Rs. 19.33 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs. 2.49 Lakhs, Interest income received of Rs. 18.13 Lakhs, Purchase of investments of Rs. 52.50 Lakhs and Sale of investments of Rs. 56.19 Lakhs.

Cash Flows from Financing Activities

1. For the year ended March 31, 2026, net cash flow from financing activities was Rs. 167.43 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs. 192.80 Lakhs and Interest expenses paid of Rs. 25.37 Lakhs.

2. For the year ended March 31, 2025, net cash flow used in financing activities was Rs. 83.71 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs. 2.23 Lakhs, Repayment of borrowing of Rs. 65.52 Lakhs and Interest expenses paid of Rs. 20.42 Lakhs.

3. For the year ended March 31, 2024, net cash flow used in financing activities was Rs. 321.65 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs. 130.04 Lakhs, Repayment of borrowing of Rs. 440.55 Lakhs and Interest expenses paid of Rs. 11.14 Lakhs.

OTHER MATTERS

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.".

2. Significant economic changes that materially affected or are likely to affect income from continuing Operations

Other than as described in the Section titled "Financial Information" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations," beginning on Page 194 and 201 respectively of this Red Herring Prospectus, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

3. Known trends or uncertainties that have/had or are expected to have a material adverse impact on revenue or income from continuing operations

Apart from the risks as disclosed under Chapter titled "Risk Factors" beginning on page no. 26in this Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known

Our Companys future costs and revenues will be determined by demand/supply situation, both of the end services as well as the government policies and other economic factors.

5. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices.

Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products/services.

6. Total turnover of each major industry segment in which the issuer company operated.

Relevant Industry data and, as available, has been included in the chapter titled "Industry Overview" beginning on page no. 110 of this Red Herring Prospectus.

7. The extent to which business is seasonal.

Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" on pages 110 and 127, respectively.

8. Any significant dependence on a single or few suppliers or customers

We are not dependent upon single or few customers or suppliers.