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 Tran formative 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:

While the fundamental risks and threats in the telecom industry have remained consistent over the years, our company has diligently monitored and analyzed evolving industry trends. Recent supply chain disruptions, particularly post-pandemic, have been significant factors causing delays in project implementations. However, technological advancements and new federal funding opportunities are creating substantial growth prospects for enterprises, which, in turn, is increasing market competition.

Potential capital expenditure budget caps could slow down construction projects, leading to delays in engineering and design services. In this dynamic landscape, our company is committed to staying ahead of industry trends and effectively managing potential threats. We understand that a proactive approach to trend monitoring and strategic adaptation is essential for maintaining our competitive edge and ensuring long-term success.

OUTLOOK / STRATEGIES:

Staying ahead in the volatile and dynamic telecom market is essential. To achieve this, our company has established a dedicated team focused on monitoring industry trends, regulatory changes, and technological advancements. This team employs advanced analytics, market research, and industry reports to provide timely and actionable insights. By concentrating on these key areas, we ensure that our strategic decisions are guided by the most current industry developments.

Additionally, we track project performance using real-time data to create comprehensive reports. This approach allows our teams to make prompt decisions, thereby minimizing the risk of resource wastage and optimizing the use of time and materials.

IV . INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY :

The Company has developed

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 The 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 M/s. J. Madhava Rao & 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.

V . DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year, your Company achieved a turnover of ^ 2,763.66 lakhs as against ^ 2,181.93 Lakhs in the previous year with net profit of ^ 223.95 Lakhs as against ^ 112.50 Lakhs in the last year. Further, the consolidated revenue grew from ^ 17,893.84 lakhs to ^ 21,742.14 lakhs and the consolidated profit margin is ^ 805.22 lakhs in FY 2024 as compared with Rs. 468.80 in FY 2023.

V . 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 forward-looking 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.