Cadsys (India) Ltd Management Discussions

I.INDUSTRY DOMAIN STRUCTURE AND DEVELOPMENTS

The confluence of AI, COVID-related challenges, and the rapid proliferation of 5G broadband networks has led to transformative shifts across industries. The pandemic expedited the adoption of AI-driven solutions, from healthcare diagnostics to remote work facilitation. 5G broadband networks emerged as a critical enabler, ensuring seamless connectivity for remote operations and virtual interactions. This synergy showcased the potential of AI and 5G to address real-world crises.

Simultaneously, the exponential growth of 5G broadband networks, bolstered by strategic investments and initiatives, has proven essential in maintaining robust connectivity during lockdowns and remote operations. Reports from the World Economic Forum and industry experts underscore how 5G played a pivotal role in supporting remote healthcare services, enabling virtual education, and promoting IoT-driven innovations.

Business overview - Design and build services in Wireline and Wireless and Software Services:

Cadsys and its group companies has been providing a comprehensive range of geospatial information systems (GIS), engineering (Tower and wireless), design-build engineering, construction services. and software services to companies in the communications, utility, energy, and rail industries.

Further, Apex provides design, installation, and testing, as well as professional land surveying, geotechnical services, lease exhibits, construction drawings, structural mappings, post modification inspections, structural and mount analysis, mount certifications, and Professional Engineering stamps in 48 states.

II. OPPORTUNITIES:

Cadsys and its group companies maintain a strong client base with large marquee clients. The Apex Group has developed a strong reputation among these clients quality and dependability, leading to recurring work and a strong and expanding pipeline. Looking toward the near future, the 5G telecommunication business outlook in the USA, showcase a landscape ripe for evolution. The ongoing deployment of 5G infrastructure, as outlined by studies from Deloitte and GSMA Intelligence, is set to unleash a wave of innovation across industries. This transformation will manifest in areas like smart cities, autonomous vehicles, and precision agriculture, creating new avenues for economic growth.

III. THREATS:

The major risks and threats to the growth of the Company remains impact of the pandemic, geopolitical instability, disruption to supply-chain due to inflation and prediction of recession. Rapid growth of telecommunications sector and the enormous technological developments innovative implementation of the technology solutions will have its share of risks and threats involved on the competitive front. Our endeavor is not only to provide and execute the projects but also to simultaneously add value to our services with the help of extremely talented team. In consideration of the preceding we contemplate and examine upon from time-to-time following risks and threats.

Increased Competition from Local & Global Players:

• Security impediments to data acquisition/

• dissemination: The work from home

• Risk with respect to Data and Cyber security

• Government policies with respect to immigration.

• Upskilling and reskilling of the workforce.

IV. OUTLOOK / STRATEGIES:

Adding new age technology such as Artificial Intelligence, machine learning has become path of choice for the utility, communication companies

At Cadsys, our highly experienced professionals work relentlessly to develop innovative solutions that cater to the new age technological needs. This includes adapting, remolding, renovating existing resources to not just address the existing challenges but also provide a sustainable solution.

Our focus lies in executing these commitments flawlessly and to the highest standards. Simultaneously, our ambitions extend beyond the horizon as we actively engage with government agencies for promising new projects and market expansion. We envision these endeavors not only as avenues for growth but also as opportunities to contribute positively to the communities we serve.

V. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

With an increasing number of staff working remotely, controls that were previously put in place are reviewed and revised to ensure relevancy and effective operation. The management assesses the risk of fraud and misstatements, cyber security threats to the data and information of the company and clients. The management maintains an adequate approach to risk management. Some of the key features of the systems are:

• Segregation of Duties: Duties are divided among different employees to reduce the risk of error or inappropriate actions.

• Authorization and Approval: Transactions are authorized and approved by someone other than the individual responsible for daily financial reporting to help ensure the activity is consistent with organizational policies and objectives.

• Reconciliation and Review: Reviews of specific functions or activities involving cross-checking transactions or records.

• Physical Security

• Accounting System Access Controls: Controlling electronic access to keep unauthorized users out is a must.

To ensure effective maintenance of Quality and Administrative processes Our Company has adopted and implanted in certain internal control systems. Our ISO 9001:2008 QMS and ISO 27001 ISMS certifications are proof of our unflinching commitment to perform jobs with the concept of "zero errors and quality first" approach and our highest level of integrity in maintaining customers data secure.

The Finance and Compliance department implements and monitors the internal control environment and compliance with statutory requirements.

As required under the Companies Act, 2013, the Company has appointed A.V. Ratnam & Co., Chartered Accountants as the Internal Auditor of the Company who is continuing to perform Internal Audit and maintain the internal financial controls of the Company from time to time.

VI. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

We have achieved Rs 21.82 crores in sales in FY 2023 compared to Rs 15.19 crores in FY 2022. Profit grew from Rs 0.33 Crores to Rs 1.13 Crores. Further, the consolidated revenue grew from Rs 68.07crores to Rs 178.94 crores. The profit margin is Rs 4.69 crores in FY 2023.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ materially from those projected in any such forwardlooking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.