Bio Green Papers Ltd Management Discussions

To,

The Members,

String Metaverse Limited

(formerly known as "Bio Green Papers Limited")

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The financial year 2024 25 marked a pivotal phase in the global industrial transforma on, driven by the rapid convergence of fron er technologies such as Ar cial Intelligence (AI), Blockchain, Decentralized Infrastructure, and Web 3.0. These innova ons are fundamentally reshaping how value is created, governance is conducted, and interac ons between humans and machines unfold. More than just technological upgrades, they are ushering in new economic models centered on decentraliza on, transparency, and par cipatory engagement.

i.Web 3.0: The Internet of Value and Par cipa on

The financial year 2024 25 witnessed a surge in the adoption of Web 3.0, signifying a major transforma on from centralized data control to decentralized, user-empowered networks. This next evolu on of the internet emphasized digital ownership, community-driven innova on, and open infrastructure.

A core pillar of Web 3.0 is user sovereignty, where individuals manage their digital iden es and personal data through decentralized iden ers (DIDs) rather than relying on corporate pla orms. This shi rede ned privacy and data autonomy.

The rise of token-based economies aligned incen ves across ecosystems. Communi es used both fungible tokens (like ERC-20) and non-fungible tokens (such as ERC-721 and ERC-1155) to reward user engagement, foster innova on, and facilitate governance.

Decentralized Autonomous Organiza ons (DAOs) gained momentum, allowing token holders to vote on key ma ers such as protocol upgrades, funding ini a ves, and strategic development. These en es represented a novel form of collec ve decision-making and decentralized governance.

Another hallmark was the emergence of composable infrastructure open-source protocols that developers could integrate and layer to build advanced applica ons across nance, iden ty, gaming, and social systems. This modularity fostered unprecedented collabora on and interoperability without the need for centralized approval.

Addi onally, Web 3.0 intersected with spa al compu ng through AR/VR technologies, giving rise to persistent virtual environments, decentralized gaming pla orms, and digital twin ecosystems. These immersive technologies expanded the scope of par cipa on in digital economies and reshaped the way users interact with the internet.

Together, these innova ons posi oned Web 3.0 as not just a technological upgrade, but a philosophical shi toward a more par cipatory and equitable digital future.

ii.Blockchain Technology and the Rise of Decentralized Finance (DeFi)

In 2024 25, blockchain technology solidi ed its role as the founda onal infrastructure for digital trust, decentralized coordina on, and programmable nance. Originally rooted in the cryptocurrency movement, it has now evolved into a versa le layer powering a wide array of industries and use cases beyond its ini al scope.

One of the most transforma ve developments was the rapid tokeniza on of assets, which unlocked new paradigms of digital ownership. From real estate and ne art to equi es and carbon credits, tokenized assets enabled frac onal ownership, greater liquidity, and global market access without tradi onal intermediaries.

Smart contracts emerged as a cornerstone of legal automa on. These self-execu ng digital agreements streamlined compliance and enforcement, reducing opera onal costs and enhancing trust in sectors such as trade nance, insurance, and intellectual property rights management.

The blockchain ecosystem also advanced through layered architectures. Core Layer-1 protocols like Ethereum, Solana, Sui, and Aptos provided decentralized infrastructure and programmability. On top of these, Layer-2 scaling solu ons such as Op mism, Arbitrum, and zkSync improved performance and lowered transac on costs, enabling DeFi and NFT pla orms to operate at scale.

A significant leap in ecosystem maturity came from cross-chain interoperability, with protocols like Polkadot, Cosmos, and Wormhole facilita ng secure and seamless movement of assets and data across different blockchains. This mul -chain vision has fostered a more interconnected and efficient blockchain universe.

Crucially, ins tu onal interest and adoption grew as governments, corpora ons, and financial ins tu ons explored blockchain for real-world applica ons. These included supply chain traceability systems, experiments with central bank digital currencies (CBDCs), and governance models that leverage on-chain consensus mechanisms.

Together, these advancements marked a pivotal phase in the mainstreaming of blockchain and DeFi posi oning them as cri cal components of a transparent, programmable, and decentralized global economy.

iii.Indias Digital Transforma on A Global Testbed for Innova on

In FY 2024 25, India rmly established itself as a dynamic and strategically vital hub in the global digital landscape. Its ascent was powered by progressive policymaking, a vast youth popula on, and widespread digital penetra on. One of the most transforma ve pillars has been Digital Public Infrastructure (DPI) with ini a ves like Aadhaar, UPI, ONDC, and Account Aggregators rede ning service delivery at scale. The India Stack became a blueprint admired and adopted globally.

On the regulatory front, the Virtual Digital Assets (VDA) ecosystem achieved greater clarity and maturity. The introduc on of Sec on 115BBH under the Income Tax Act brought tax certainty to crypto transac ons. Meanwhile, regulatory sandboxes led by RBI and SEBI provided a safe space for innova ons in tokenized securi es, CBDCs, and decentralized nance (DeFi). The an cipated Digital India Act promises to usher in a modern digital legal framework emphasizing user protec on, pla orm responsibility, and data sovereignty.

Indias startup landscape con nued its upward trajectory, surpassing 100 unicorns. Many of these ventures are pioneering breakthroughs in blockchain gaming, Web 3.0, AI-driven services, and Layer-1 infrastructure. This growth was matched by a push for financial inclusion, with mobile internet, digital wallets, and regional language interfaces bringing innova on to the heartlands beyond just Tier-I ci es into Tier-II, III, and IV.

India also emerged as a global talent powerhouse, becoming the largest source of blockchain and AI developers, reinforcing its influence on global tech narra ves.

The overarching theme for the year was clear: we are witnessing a shi from capital-heavy to code-driven innova on models, anchored in intelligence, decentraliza on, and modularity. This transforma on is not just technological but civiliza onal, rede ning how socie es collaborate, create value, and govern. Businesses that align with this evolu on by embracing lifelong learning, regulatory agility, and a digital- first ethos will be best posi oned to lead in the decades ahead.

2. COMPANY OVERVIEW

Transforma on into a Next-Genera on Tech Enterprise

The financial year 2024 25 marked a de ning in ec on point in the corporate journey of String Metaverse Ltd. (formerly Bio Green Papers Limited). Emerging successfully from the Corporate Insolvency Resolution Process (CIRP), the Company embarked on a strategic transforma on dives ng its legacy paper manufacturing opera ons and reposi oning itself as a future-ready technology enterprise. This transforma on aligns with Indias broader digital shi and the accelera ng global momentum toward decentraliza on and ar cial intelligence.

The formal change of name to String Metaverse Ltd., approved by the Registrar of Companies on April 25, 2025, represents more than a corporate rebranding it signals a clear strategic pivot. The new iden ty reflects the Companys commitment to building intelligent, composable digital ecosystems across blockchain, ar cial intelligence (AI), and immersive Web 3.0 technologies.

Core Business Pillars and Strategic Focus

Post-restructuring, the Company has streamlined its opera ons around four core ver cals that form the backbone of its next-genera on technology strategy:

i.Blockchain Infrastructure and Validator Opera ons

The Company is inves ng in enterprise-grade infrastructure to operate validator nodes on prominent Layer-1 and Layer-2 blockchain networks, including Solana, Ethereum, Polygon, Sui, and Aptos. These opera ons contribute to the decentraliza on, security, and performance of blockchain ecosystems. Revenue is generated through staking rewards, transac on fees, and node delega on services, establishing a resilient and scalable business model.

ii. AI-Powered Digital Agents

In the realm of Ar cial Intelligence, the Company is focused on developing autonomous digital agents trained on specialized datasets. These agents are designed to serve across nancial, legal, and opera onal domains, with applica ons ranging from customer engagement to enterprise automa on.

iii. Tokenized and Decentralized Digital Assets

String Metaverse Ltd. is ac vely building pla orms for asset tokeniza on and decentralized nance. This includes tokenizing real-world assets such as real estate, securi es, and intellectual property, as well as developing smart contract-based products that facilitate compliant, cross-chain DeFi (Decentralized Finance) instruments. The goal is to democra ze access to investment and liquidity for a broader spectrum of users.

iv. Web 3.0 Ecosystems and Gaming Economies

The Company is ac vely developing immersive and interoperable Web 3.0 ecosystems through a combina on of in-house innova on and strategic collabora ons. These digital environments are designed to integrate NFT-based gaming assets, virtual commerce modules, and creator-centric incen ve frameworks crea ng holis c, user-driven digital economies. All pla orms are architected with decentralized iden ty (DID) protocols and interoperable tokenomics to foster seamless par cipa on, asset portability, and equitable value distribu on across applica ons.

String Metaverse Limited proudly holds the dis nc on of being the first Web 3.0 enterprise listed on the Indian Stock Exchange (BSE), marking a pioneering step in bridging blockchain innova on with mainstream capital markets.

3. BUSINESS PERFORMANCE AND STRATEGIC MILESTONES

FY 2024 25 marked a pivotal year for String Metaverse Ltd., as it transi oned from revival to resurgence. Following the successful conclusion of its Corporate Insolvency Resolution Process (CIRP), the Company entered the scal year with a rm commitment to opera onalize a tech- rst, innova on-led strategy centered on ar cial intelligence (AI) and Web 3.0. The founda onal phase of this transforma on witnessed cri cal structural and opera onal realignments. The Board and management team were recons tuted with seasoned professionals from technology, nance, and regulatory domains. Internal departments were reorganized, and domain specialists across blockchain, AI, and digital innova on were onboarded. Simultaneously, the Company exited and formally shut down non-core legacy business segments, par cularly in paper manufacturing, while reinsta ng full compliance mechanisms for statutory repor ng and investor communica ons.

The Company also achieved mul ple corporate and regulatory milestones that solidi ed its structural transforma on. The change of name to String Metaverse Ltd. was formally approved by the Registrar of Companies on April 25, 2025. Full compliance with SEBI and BSE was reinstated, and CIRP closure was granted by the National Company Law Tribunal (NCLT) in FY 2023 24. Additionally, a rights issue was successfully completed, further strengthening the Companys capital structure and governance framework in prepara on for its an cipated high-growth trajectory.

Financial discipline remained a core principle throughout this transforma ve phase. Embracing a capital-e cient and innova on-intensive strategy, the Company maintained a lean opera onal structure by leveraging cloud-na ve tools and open-source pla orms. It avoided high-debt structures, ensuring low xed liabili es and maintaining agility in execu on. Capital infusions were med with strategic milestones and product development sprints. Additionally, the Company is ac vely exploring non-dilu ve financing opportuni es including grants from blockchain founda ons, par cipa on in AI research consor ums, and innova on incen ve programs in India and the UAE.

Looking ahead to FY 2025 26, the Company is poised to accelerate its strategic agenda. Key priori es include the full-scale commercializa on of AI-powered digital agents across financial ver cals and integra on of tokenized assets with regulatory-aligned partners, expansion of validator nodes to over 10 high-throughput blockchain networks, and poten al lis ng of subsidiaries or joint ventures in global innova on ecosystems. Furthermore, the Company plans to establish a token issuance desk to support compliant Web 3.0 project accelera on and advisory.

In summary, FY 2024 25 served as a founda onal year of rebirth and execu on for String Metaverse Ltd. With robust groundwork in place, the Company is now posi oned to scale aggressively, leveraging its strategic edge at the con uence of AI, blockchain, and next-genera on Web 3.0 infrastructure.

4. OPPORTUNITIES AND THREATS

The financial year 2024 25 marked the beginning of a transforma ve era for String Metaverse Ltd., shaped by the convergence of ar cial intelligence, blockchain, and Web 3.0 technologies. This convergence has created a wide spectrum of opportuni es for innova on, growth, and leadership. At the same me, the dynamic global environment defined by evolving regulatory landscapes, technological disrup on, and compe ve pressures demands a vigilant and agile strategic posture. This sec on outlines the key external and internal opportuni es and threats in uencing the Companys forward trajectory.

First-Mover Advantage in AI and Web 3.0:

String Metaverse Ltd. is strategically posi oned to leverage a rst-mover advantage at the convergence of ar cial intelligence and Web 3.0. With a strong founda on in blockchain infrastructure, decentralized pla orms, and autonomous AI agents, the Company is well-placed to lead innova on in emerging domains such as legal-tech and reg-tech automa on, validator-based yield systems, and tokenized asset marketplaces. As industries transi on toward intelligent and decentralized frameworks, the Company has the poten al to set a benchmark for next-genera on enterprise models.

Favorable Digital Ecosystem in India:

Indias rapid transforma on into a global digital leader further expands the Companys opportunity horizon. National infrastructure ini a ves such as Aadhaar, UPI, ONDC, and Account Aggregators, coupled with regulatory enablers like RBI and SEBI sandboxes and the proposed Digital India Act, provide a fer le tes ng ground for Web 3.0 innova on. As Indias digital economy is projected to surpass USD 1 trillion by 2030, the Company can pilot breakthrough pla orms, integrate with domes c tech ecosystems, and offer compliant tokeniza on and digital asset solu ons aligned with government frameworks.

Global hi Toward Decentraliza on:

Across interna onal markets, ins tu ons and governments are increasingly adopting decentralized infrastructure for enhanced data sovereignty, regulatory transparency, and programmable compliance. Use cases such as central bank digital currencies (CBDCs), traceability, and smart contract enforcement are gaining trac on. String Metaverse Ltd.s early investments in validators, decentralized iden ty (DID), and smart contract pla orms directly align with these macro trends and posi on the Company to deliver high-impact, scalable solu ons in the evolving decentralized economy.

Access to Global Talent and IP Crea on:

With a strong opera onal presence in India and other emerging markets, the Company is uniquely equipped to tap into deep talent pools for developing domain-specific AI systems, building open-source Web 3.0 tools, and ling robust intellectual property. Innova ons in areas such as legal-AI, decentralized nance, and digital governance not only offer long-term strategic advantage but also unlock new mone za on opportuni es through SaaS pla orms, technology licensing, and royalty-based revenue streams.

Capital Forma on via Digital Assets:

The increasing legi macy and regulatory clarity surrounding virtual digital assets (VDAs) create new pathways for global capital forma on. The Company can explore compliant token issuance models to raise funds from decentralized investor communi es, design tokenized financial products such as revenue-sharing tokens or DAOs, and establish a presence in blockchain-friendly jurisdic ons like the UAE, Singapore, and Hong Kong. These mechanisms align with the decentralized ethos of Web 3.0 while enabling scalable, compliant fundraising models.

4.2. Threats

While the outlook for the Company remains highly promising, it must navigate a complex and evolving risk landscape. Key threats include the following:

Regulatory Uncertainty

One of the most significant external risks arises from the fragmented and evolving global regulatory environment. Divergent rules across jurisdic ons, poten al changes in tax treatment, and overlapping mandates from regulators such as SEBI, RBI, and interna onal bodies may adversely impact cross-border opera ons and digital asset ventures. To address these challenges, the Company must maintain a high degree of legal agility, ensure con nuous monitoring of global developments, and implement proac ve compliance mechanisms.

Cybersecurity and Protocol-Level Vulnerabili es

Opera ng at the convergence of AI and blockchain heightens exposure to sophis cated threats. These include smart contract exploits, validator slashing, and ethical concerns around AI hallucina ons, bias, or adversarial manipula on. Additionally, the Companys digital infrastructure is suscep ble to cyber-a acks, iden ty the , and impersona on of autonomous agents. Mi ga ng these risks requires the adoption of zero-trust architectures, rou ne third-party security audits, and the enforcement of rigorous ethical governance frameworks.

Talent Ac uisi on and Reten on

The shortage of skilled professionals in deep-tech domains par cularly in blockchain and AI poses a persistent threat. Global compe on for elite talent exacerbates a ri on risks and increases the likelihood of intellectual property leakage. To remain compe ve, the Company must invest in nurturing a values-driven culture, offering equity-linked incen ves such as ESOPs, and promo ng con nuous upskilling through structured learning programs.

Technological Obsolescence

The pace of innova on in decentralized technologies is relentless. Emerging paradigms such as modular chains, zk-rollups, and next-genera on AI models may outdate current pla orms within short cycles. Failure to adapt swi ly can result in strategic irrelevance. Accordingly, agile product development, modular infrastructure, and ongoing investment in R&D are cri cal to future-proof the Companys technology stack.

Macroeconomic Vola lity

External macroeconomic factors ranging from market vola lity to in a on and interest rate shi s can affect core revenue streams, including staking income. A ghtening capital environment and reduced investor risk appe te may also delay fundraising or inhibit scaling efforts. To withstand such cycles, the Company must maintain lean opera onal structures, preserve liquidity bu ers, and diversify its capital base across geographies and instruments.

4.3. Risks And Mi ga on Strategies

The Company operates at the cu ng edge of innova on across Ar cial Intelligence, Blockchain, and Web 3.0 ecosystems. While these sectors offer immense growth poten al, they are also characterized by rapid technological changes, evolving regulatory frameworks, and high execu on complexity. The Company has ins tuted a proac ve and dynamic risk management approach to an cipate, assess, and mi gate key business risks.

Risk Category	Nature of Risk	Company Mi ga on Strategy
Regulatory and Compliance	Uncertainty in domes c and interna onal laws governing AI, digital assets, token issuance, and cross-border data flows.	Ac ve engagement with regulators (SEBI, RBI, MCA), use of legal sandboxes, real- me compliance repor ng, and legal counsel across jurisdic ons (India, UAE, Singapore).
Cybersecurity and Infrastructure	Threat of data breaches, validator node slashing, smart contract exploits, or loss of cryptographic keys.	Implementa on of zero-trust security architecture, rou ne audits, mul -signature wallets, hardware security modules (HSMs), and third-party penetra on tes ng.
Technology Obsolescence	Rapid evolu on of AI models, blockchain protocols, or SDKs may render exis ng tech stacks outdated or incompa ble.	Adop on of modular, upgradable architectures; con nuous tracking of ecosystem trends; ac ve par cipa on in open-source communi es; agile development sprints for version upgrades.
Talent Acquisi on and Reten on	Shortage of experienced developers and engineers in AI and blockchain, with high a ri on risk due to global compe on.	Compe ve compensa on, ESOP policies, hybrid work models, in-house training labs, academic e-ups, and building a purpose-driven innova on culture to retain high-value talent.
Market Vola lity and Funding Risk	Dependence on crypto asset prices, validator reward uctua ons, and investor sen ment cycles may impact cash flows or project runway.	Diversi ed revenue mix (staking, SaaS, IP licensing), conserva ve treasury management, phased investment in R&D, and explora on of non-dilu ve grants or founda on capital.
Scalability and Execu on Risk	Risk of opera onal ine ciencies or resource bo lenecks while scaling rapidly across protocols, pla orms, and regions.	Staggered go-to-market plans, internal process digi za on, lean execu on teams with cross- func onal skills, and partnerships to avoid CAPEX-heavy expansion.

The Companys risk management framework is structured to be forward-looking, real- me, and adap ve. By embedding governance, security, and compliance directly into the architecture of its technology and organiza on, String Metaverse Ltd. seeks to build resilience while scaling innova on. Risk is viewed not as an inhibitor but as a catalyst for responsible, long-term value crea on.

5. OPPORTUNITIES AND MARKET OUTLOOK

In FY 2024 25, String Metaverse Ltd. entered a phase of accelerated growth, propelled by key global shi s such as the digital infrastructure upgrade cycle, the growing adoption of decentralized nance (DeFi), and the emergence of AI-enabled regulatory systems. These trends collec vely signal a strong runway for expansion and innova on. One of the foremost opportuni es lies in the convergence of Ar cial Intelligence and Web 3.0. The integra on of genera ve AI with decentralized data and governance structures opens up transforma ve use cases in legal technology, compliance automa on, code audi ng, and smart contract management. String Metaverse, by developing hybrid on-chain AI agents capable of real- me compliance and decision support, is strategically posi oned to offer modular SaaS-based solu ons to enterprises looking for efficient plug-and-play services.

The ongoing global Web 3.0 infrastructure buildout presents yet another major avenue. Governments, corporates, and consor ums increasingly demand robust validator infrastructure and decentralized iden ty systems. With opera onal nodes on Solana and Sui and expansion plans into Ethereum, Polygon, Aptos, and others String Metaverse stands to benefit from staking rewards and infrastructure revenues that scale with network adoption.

In addi on, String Metaverse is leveraging emerging regulatory sandboxes and innova on frameworks across India, UAE (DIFC/ADGM), Singapore,. These jurisdic ons are ac vely nurturing digital asset experimenta on via token pilot programs and sandbox tes ng environments, offering the Company early exposure to regulatory developments and poten al market advantages. In India, the rapid expansion of na onal digital public infrastructure such as UPI, ONDC, Account Aggregators, and Aadhaar presents an unprecedented opportunity. String Metaverse is well-posi oned to contribute meaningfully by offering on-chain regulatory tools, cross-border iden ty modules, and sovereign data applica ons that complement this evolving stack.

Moreover, ins tu onal capital is shi ing decisively toward digital assets. Investors are increasingly alloca ng to tokenized assets, staking revenue models, and digital-na ve investment structures through regulated en es and DAOs. The Companys UAE-based subsidiary enables access to compliant global capital flows, allowing it to par cipate in structured issuance, staking syndicates, and ins tu onal-grade custody. Looking ahead to the period from 2025 to 2030, the global market is expected to evolve drama cally.

The GENIUS Act, introduced in the United States, holds significant global relevance for emerging technology sectors, par cularly Web3, blockchain, and ar cial intelligence (AI). By strengthening intellectual property protec on, encouraging research and funding, and contribu ng to the standardiza on of legal prac ces across jurisdic ons, the Act fosters a more secure and transparent innova on ecosystem. These developments provide global enterprises with stronger safeguards for proprietary technologies, expanded access to research collabora ons and capital, reduced legal uncertainty, and enhanced investor con dence. Collec vely, such measures are expected to support sustainable growth and scalability of next-genera on technology businesses worldwide.

As decentralized infrastructure increasingly replaces centralized cloud models, demand for blockchain-na ve trust solu ons is poised to soar.

Overall, the intersec on of AI, Web 3.0, and digital regula on represents a once-in-a-decade market in ec on. By aligning its technological assets validators, intelligent agents, and tokenized protocols with macro momentum, String Metaverse Ltd. is poised to transi on from architectural strength to commercial leadership. The next 18 24 months will be instrumental in shaping this transi on into scaled market impact.

Strategic Roadmap and Future Outlook

The financial year 2024 25 signi ed a transforma ve period for String Metaverse Ltd., marking its successful revival and reposi oning as a cu ng-edge technology enterprise. With robust founda ons now established across ar cial intelligence, blockchain infrastructure, and Web 3.0, the Company is strategically posi oned to scale its opera ons, accelerate the commercializa on of its products, and generate sustained value for stakeholders. Looking ahead, the Company is guided by a clear and ambi ous vision: to emerge as a category-de ning leader at the convergence of decentralized infrastructure and intelligent automa on.

Outlook: Industry and Company Prospects Web 3.0 Infrastructure

In the Web 3.0 space, the Company foresees increased validator engagement across networks such as Ethereum Layer 2s, Aptos, Cosmos, and Solana. This growth is expected to drive yield-based revenue expansion and deeper ecosystem integra on. Moreover, blockchain infrastructure is projected to evolve beyond staking, encompassing areas such as decentralized iden ty, oracle solu ons, and governance par cipa on presenting new strategic opportuni es for value crea on.

Long-Term Strategic Goal

By the financial years 2028 30, String Metaverse Ltd. aspires to be recognized globally as a premier digital infrastructure.

Having moved from a phase of revival to one of ac ve execu on, the Company is now intensely focused on scaling opera ons, forging strategic partnerships, and expanding its intellectual property por olio. Its roadmap reflects a nuanced and future-ready approach combining innova on with regulatory compliance, agility with structural resilience, and a core commitment to ethical technology. With the capacity to operate seamlessly across jurisdic ons, technology stacks, and market cycles, String Metaverse Ltd. remains steadfast in its pursuit of delivering long-term value to all stakeholders.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

String Metaverse Ltd. has established a comprehensive internal financial control system that spans all opera onal areas including procurement, nance, administra on, marke ng, and human resources. These controls are implemented across all levels of the organiza on and are supported by an internal audit system commensurate with the companys scale and complexity. The internal audit func on is managed by an independent rm of Chartered Accountants, and its reports are regularly reviewed by the Audit Commi ee to ensure the adequacy and e ec veness of the controls in place.

As the Company evolves into a high-growth digital enterprise opera ng across mul ple geographies and technologies, it recognizes the cri cal role of strong internal controls and sound corporate governance in fostering stakeholder trust, ensuring regulatory compliance, and driving opera onal excellence. To this end, String Metaverse Ltd. has adopted a robust, scalable, and forward-looking control framework. The system is designed to support efficient business opera ons, safeguard assets, detect and prevent fraud and errors, and ensure the accuracy of financial and opera onal repor ng.

Financial controls are rigorously maintained in adherence to IND-AS and the Companies Act, 2013, with systema c reconcilia on protocols for staking rewards, validator opera ons, token income, and AI-related revenues. These are further reinforced through periodic internal audits that examine ledger accuracy, process integrity, and contractor compliance. Real- me monitoring systems track validator performance, slashing events, staking activities, and smart contract execu on using blockchain explorers and compliance tools. AI agents are also subject to strict oversight, including version control, sandbox tes ng, and ethical usage tracking, ensuring the companys control systems remain agile, transparent, and compliant in a fast-evolving tech landscape.

7. INDUSTRIAL RELATIONS AND HUMAN RESOURCES MANAGEMENT

At the heart of String Metaverse Ltd.s transforma on from a legacy industrial enterprise into a cu ng-edge technology company lies a robust, forward-looking Human Capital and Talent Strategy. As a deep-tech enterprise opera ng at the convergence of AI, blockchain, and digital assets, the Companys long-term compe veness and innova on capacity are fundamentally driven by its ability to a ract, develop, and retain high-caliber talent across mul ple geographies and disciplines.

The Company maintains a solid reputa on and trusted rela onships with both its customers and suppliers There are no unresolved issues or con icts with any stakeholders, and the business environment remains coopera ve and posi ve. One of the Companys core assets is its workforce, supported by progressive and employee-centric HR prac ces. The team is well-trained, commi ed, and capable of delivering on the Companys goals

The Company introduced the "String Metaverse Employees Stock Op on Schemes" with the objec ve of rewarding high-performing employees and encouraging their con nued contribu on towards the Companys long-term vision and pro tability. These schemes are designed to foster a strong sense of ownership and partnership among employees by offering equity-linked incen ves. They also aim to a ract excep onal talent to join String Metaverse Ltd., retain key contributors who are vital to the Companys future growth, and recognize the strategic contribu ons made by employees. Ul mately, the schemes seek to facilitate long-term wealth crea on and ensure alignment between employee interests and overall shareholder value.

As String Metaverse Ltd. moves into its next phase focused on produc za on and global expansion, the Companys human capital strategy is being ac vely realigned to support this growth trajectory. Key priori es include doubling the R&D team with a strong focus on validator engineering, smart contract security, and orchestra on of on-chain AI agents. To ensure responsible innova on, the Company also plans to establish a dedicated AI Ethics and Governance Desk under the HR and Compliance func on. Additionally, a Leadership Fellows Program will be launched to nurture future intrapreneurs and prepare internal talent to lead decentralized pla orm ini a ves. Recognizing the need for a diverse and high-caliber workforce, String Metaverse Ltd. will also build a robust global talent acquisi on func on, targe ng innova on hubs in the UAE, Singapore, and the European Union.

8. FINANCIAL HIGHLIGHTS

FY 2024 25 marked the first full opera onal year for String Metaverse Ltd. under its new iden ty and strategic direc on, following the comple on of the Corporate Insolvency Resolution Process (CIRP). The period was characterized by significant investments in validator infrastructure, AI capability development, and founda onal regulatory alignment.

Despite being in the ini al phases of commercializa on, the Company maintained financial discipline, op mized opera onal efficiency, and ini ated revenue genera on across its core ver cals.

	Standalone		Consolidated
Pa la s	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Income from Opera ons	1,235.44	437.94	40,735.94	15,121.15
Other Income	84.91	91.55	85.68	86.96
Total Income	1,320.35	529.49	40,821.62	15,208.11
Cost of opera ons	372.39	85.37	35,641.32	13,560.21
Change in Inventories	-	-	-	-
Employee benefit expenses	212.85	59.10	334.13	96.60
Finance Cost	2.0	2.84	2	2.84
Deprecia on	221.11	117.91	673.58	219.41
Other expenses	480.00	125.10	636.11	174.40
Total Expenses	1,288.35	390.32	37,287.14	14,053.46
Pro t/(Loss) Before Tax	32.00	139.17	3,534.48	1,154.65
& Excep onal Items
Current Tax		23.23	9.92	23.23
Deferred Tax		(23.23)	-	(23.23)
Pro t/(Loss) er Tax	32.00	66.03	3,524.56	1,081.51
Other comprehensive Income			185.71	82.98
(Net Tax)
Total Comprehensive Income	32.00	66.03	3,710.27	1,164.49

9. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE

IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATION

Standalone

Ra o	FY ended 31st March, 2025	FY ended 31st March, 2024	Changes between Current FY & Previous FY	Explana on (in case any change of 25% or more as compared to the immediately previous financial year)
Debtors Turnover	7.78	2.63	514.76%	Due to increase of Debtors
Inventory Turnover	-	-	-	-
Interest Coverage Ra o	16.96	49.93	-66.02%	-
Current Ratio	13.94	5.27	164.49%	-
Debt Equity Ratio	0.0018	0.0033	-46.05%	-
Opera ng Pro t Margin (%)	2.75%	15.73%	-82.50%	-
Net Pro t Margin (%)	2.59%	15.08%	-82.82%	-

Consolidated

Ratio	FY ended 31st March, 2025	FY ended 31st March, 2024	Changes between Current FY & Previous FY	Explana on in case any change of 25% or more as compared to the immediately previous nancial year)
Debtors Turnover	273.27	102.93	165.48%	Due to increase of Debtors
Inventory Turnover	-	-	-	-
Interest Coverage Ratio	1,764.30	406.93	333.56%	-
Current Ratio	14.07	9.91	41.98%	-
Debt Equity Ratio	0.0012	0.0028	-56.58%	-
Opera ng Pro t Margin (%)	8.68%	7.17%	21.06%	-
Net Pro t Margin (%)	8.65%	7.15%	20.97%	-

10. VARIATIONS IN NET WORTH

The Standalone Net worth of the Company for the Financial Year ended March 31, 2025, is Rs. 1,11,73,02,233.70/- as compared to Rs. 97,62,11,497.96/- for the previous financial year ended March 31, 2024, and the Consolidated Net worth of the Company for the Financial Year ended March 31, 2025, is Rs. 1,61,10,91,386.00/- as compared to Rs. 1, 10, 38, 22,329.56/- Lakhs for the previous Financial Year ended March 31, 2024.

11.DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has prepared financial statements which comply with Ind-AS applicable for periods ending on March 31, 2025, together with the compara ve period data as at and for the year ended March 31, 2024, as described in the summary of significant accoun ng policies Primarily, a treatment different from that prescribed in an Accoun ng Standard has not been followed in the prepara on of financial statements.

Further, the financial statements represent a true and fair view of the underlying business transac ons.

12. FORWARD-LOOKING STATEMENTS CAUTIONARY STATEMENT

This Management Discussion and Analysis (MD&A) report includes forward-looking statements regarding String Metaverse Ltd.s future prospects, business plans, strategies, opportuni es, and developments. These statements may be iden ed by terms such as "aims," "believes," "expects," "intends," "will," "may," "an cipates," "seeks," "targets," "plans," "es mates," and other similar expressions or varia ons. Such statements are based on current expecta ons, projec ons, and assump ons made by the Companys management, pertaining to future events, opera ng performance, evolving technologies, market dynamics, and regulatory landscapes.

While these projec ons are made in good faith and reflect the Companys strategic outlook, they are inherently subject to various known and unknown risks, uncertain es, and con ngencies. Key assump ons underlying these forward-looking statements include the con nued adoption and regulatory acceptance of Web 3.0 technologies and digital assets, stability and growth in validator reward ecosystems, commercial viability of tokenized pla orms and AI agents, availability of skilled human capital, forma on of strategic alliances, and overall macroeconomic and geopoli cal stability in key markets.

However, several factors may adversely impact these outcomes. These include, but are not limited to, rapid technological shi s that could render exis ng products or pla orms obsolete, unfavorable changes in digital asset and AI-related regula ons, cybersecurity vulnerabili es or breaches in smart contracts, market vola lity a ec ng digital asset valua ons and liquidity, and challenges in talent acquisi on or reten on at leadership and mission-cri cal levels.

Consequently, actual outcomes may materially differ from those projected. The Company does not undertake any obliga on to publicly update or revise these forward-looking statements, whether due to new informa on, future developments, or otherwise, except as required under applicable law.

Investors and stakeholders are advised to interpret such statements with cau on and are encouraged to review them alongside the Companys audited financial statements, Corporate Governance Report, Annual Return, statutory disclosures, and regulatory lings made to the BSE and Ministry of Corporate A airs. For further queries or clari ca on, stakeholders may reach out to the Company Secretary at the Registered O ce or through the Investor Rela ons sec on available on the Companys o cial website.

This MD&A is presented as part of the Companys commitment to transparency, strategic clarity, regulatory compliance, and stakeholder alignment. As String Metaverse Ltd. progresses into its next stage of innova on and expansion, it remains steadfast in building a resilient, ethical, and forward-oriented digital enterprise.

For and on behalf of the Board

String Metaverse Ltd

 

Sd/-	Sd/-
Ghanshyam Dass	Meenavalli Ganesh
Chairman & Non-Executive Director	Managing Director
DIN: 01807011	DIN: 09330391

 

Place: Hyderabad

Date: 04th August,2025