Cadsys (India) Ltd Management Discussions.


We have noticed that businesses across the economies across the world have begun to resume their businesses. While the world is watching this resumption, there are radical changes in the minds of the people towards adaptinga new lifestyle - popularly known as the "New Normal". The COVID-19 - the global pandemic has led to a new reliance on digital infrastructure and connectivity and highlighted the criticality for having a robust communication infrastructure. The global IT/ITeS sector started at negative growth of 5 to 10 percent in FY20-21, probably for the first time, due to the impact of the COVID-19 outbreak. This will in turn hurt Indian IT/ITeS industry as well, according to analysts.

Further, according to International Monetary Fund (IMF) in its reports stated that, the pandemic is expected to reduce global GDP by 3% in 2020 with far-reaching impact across sectors. Indian IT&ITeS industry, accounting for 8% of Indias GDP, has also been impacted due to lockdown in key global as well as domestic markets. The global wireless infrastructure market size was valued at USD 69.44 billion in 2016 and is expected to register a CAGR of 5.7% over the forecast period due to rising traction of 4G, LTE, and 5G high-speed data connectivity network infrastructure capabilities. The projected growth of wireless networking technology and associated devices is also owing to ongoing trends of BYOD, WYOD, cloud computing, and Artificial Intelligence (Al) in telecom applications. With growing network and technology infrastructure among different industry verticals, demand for high-speed data transmission and connectivity has increased considerably.

Business overview - GIS Engineering Servicesand Software Services:

Cadsys has been providing a comprehensive range of geospatial information system (GIS) and engineering services to the companies in communications, utility, energy and railindustries.ln addition, Cadsys also specializes in designing and developing next-generation fiber network and systems.

The in-depth knowledge of geospatial data, our round-the-dockdual-shore servicemodel has proven to enable us deliver high quality results at substantially lower cost.Flowever, all projectmanagement and technology development activities a recon ducted by the onshore team. During the FY 2019-20, Cadsys bagged (indefinite delivery and indefinite quantity) contracts for 5G roll out. The company has also established a strategic partnership to scale up the business growth and build synergies across other states of USA. The company also set up regional support centers in many parts of the United States of America for better customer support - located at Georgia, California, Colorado, Florida, Tennessee and Virginia.


As we noticed that during the Pandemic, the global internet usage has grown by 70 percent. Further, the US telecom companies had announcedat the beginning for the year 2020, to deploy 5G technology in the major cities across the country. Further, the government also announced funding and allocated budgets for building the infrastructure and implement the technology.

Further, any movement towards advanced technology involves creates new opportunities for skilled resources. Cadsys over the past years has built strong foundation by adapting to the technology and building innovative solutions that has opened new channels of opportunities in the 5G

and wireless business. Further, this pandemic gave the opportunity to ponder upon and analyze about new markets for business and it has shown what kind and how communication and connectivity are the crucial part to keep life moving.

• Identifying opportunities in the areas like wireless technology, small cell, network planning.

• Improved quality and value-added services

• Strategic partnership with Interprise

• Acquisition of building in Uppal, Hyderabad TG

• Added new customers and contracts in other parts of the USA

• Added 3 new offices in different states of USA


The major risks and threats to the Company for the current financial year remains the impact of the Pandemic on the growth and revenue of the company besides the hindrances caused to the ongoing production activities. However, in an attempt to mitigate the situation, the Company transitioned its operations to remote functioning and majority of the employees.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. Ourendeavor is to not just provide and execute the projects but simultaneously add value to our services with the help of extremely talented team. In consideration of the preceding below are few risks and threats we contemplate and examine upon from time to time.

• Increased Compecioon from Local & Global Players:

• Security impediments co daca acquisition / dissemination: The work from home

• Government Changes to US immigradon policy

• Risk wich respecc co Data and Cyber securicy

• Govemmenc policies wich respecc co immigradon.

• Upskilling and reskilling of che workforce.

Year 2020 was che year for huge 5G roll oucs and d epl oymenc of SG was one of th e cricical priori d es for che gian c cel ecom compani es. Buc che pand emic sicuacion caused disruptions co this mega plan. Scrlcc lockdown in major cicies across USA and China (which disrupted che supply-chain), social distancing norms and cravel rescricdons slackened che project acdvicies. Reports suggest chat heres been a dramacic slowdown wich faccory production in China chat could slow che race at which 5G equipment migrates co che U.S. and elsewhere.The global pandemic has forced a supply chain slowdown and ic may delay further expansion of SG. One of che major risks chac chis pandemic may have is die impacc on che profitability due codeferred paymencs and pricing pressure.


Adding new age technology such as Artificial Intelligence, machine learning has become path of choice for che ucilicy, communication companies. Ac Cadsys, our highly experienced professionals work relendessly co develop innovacive solutions chac cacer co che new age technological needs. This includes adapting, remolding, renovating exiscing resources co not just address che exiscing challenges buc also provide a sustainable solucion.

In our nexc Syear plan, our Company aims co provide services for communications, engineering and ucilicyorganizaoons co manage more effectively dieir people, daca, and infrastructure. Take maximum leverage of innova- dve engineering services and enterprise software solucions co gain a comped ove advantage by enhancing producovicy and improving quality of your end re operaoon, from planning and installation co network maintenance and upgrades.


To ensure effecove maintenance of Qualicy and Adminiscraove processes Our Company has adopted and implanced in certain incemal concrol systems. Our ISO 9001:2008 QMS and ISO 27001 ISMS certifications are proof of our unflinching commicmenc co perform jobs wich che concept of "zero errors and qualicy first approach and our highest level of incegricy in maintaining customers daca secure.

The Finance and Compliance Department implements and monicors che incemal concrol environment and compliance with scacucory requirements. As required under che Companies Acc, 2013, che Company has appointed AV. Racnam & Co., Chartered Accouncancs as che Incemal Audicor of che Company who is continuing co perform Incernal Audic and maintain che incemal financial controls of che Company from cime co ome. Further, che Company also, appointed Mr. Nicesh Kumar Agarwal, practicing company secretary, partner ac RANJ & Associates, a company secretary firm as che Secretarial Audicor of the Company co perform che Secretarial Audic for che FY 2020-21.

Wich a scrlcc "Zero Tolerance" policy in place, Cadsys chrives in implemenca- oon of excellenc work environment sumounded by high values for professionalism, fairness and gender equality. We record a well-balanced women represencacion ac all levels in the Company.We have sec up a POSH committee co ensure safe and sound work environment


Our Human resource ceam is keepi ng i n view che ever ch anging gl obal bu si- ness environment; ic is imperative for che Company co consiscendy build, develop, upgrade and crain che exiscing workforce with new skills by providing appropriate avenues, knowledge macerial, soft skills and more importandy personality skills (such as leadership, responsibility, mociva- oon, communicacion). Cadsys is backed up by ceam of designing professionals who are highly experienced, possess excensive knowledge and experdse in engineering and designing all aspeccs of Oucside Plane Nec- workinfrascruccure, fiber network operations and Field Services.


From the Standalone Profic and Loss stacemenc for 2019-2020, icis indicative that Revenue reduced from Rs.2,152 Lakhs co Rs. 1,690 Lakhs. This reduco on d ue co ou r in creased bu si ness operaci ons on che on sh ore faci li ty. However, che revenue indicaced in che consolidated financials shows a reducoon in che revenue from Rs. 5, 338 in 2018-19 co4,272 in 2019-2020.


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 he 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.