Capricorn Systems Global Solutions Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS: company is engaged in the business of software development, providing Business Process Out sourcing,consultancy services in the fields of software and allied services.

REVIEW OF OPERATIONS:

The operations of the company during the year has been consistent with the performance in the immediately preceding years

FINANCIAL REVIEW:

The Company has achieved a total turnover of Rs.100.81 Lakhs and Loss of Rs.91.11 Lakhs. The paid-up share capital as at 31st March 2025 amounts to Rs.39960.00 (in hundreds).

OPPORTUNITIES:

The primary market for the services rendered by the company is United States of America. A moderate grouwn is expected in the ensuring year. With a proven track record of delivering services as per the terms agreed with the customers, is confident of identifying the new areas of business with the existing customers and also in new markets.

THREATS:

Intense competition from larger peers, foreign exchange volatility and regulatory uncertainties.

SEGMENT-WISE/PRODUCT-WISE PERFORMANCE:

The Company operates only in providing software services. Even though the revenue increased, the company faced with losses due to high expenses.

CHALLENGES:

Capricorn Systems Global Solutions Limited (CSGSL) encounters normal market competition from other similar companies. One of the major challenges being faced by the company is attracting and retaining the competent personnel for the operations of the company in the face of the increased demand for the trained personnel in the software market in general. Further one of the main challenges would be to optimize the cost of operations in the face of the pressure on the margin in the highly matured markets the company operates.

OUTLOOK:

With improved spend of the companies on the software services and with the industry expected growth at a moderate rate and CSGSL is targeting a growth rate of around 12% for the current year.

RISKS AND CONCERNS:

The domestic and international economic environment directly influences the spending patterns of the industry on the Information Technology. And also the margins of the companies are affected by any changes in the government regulations like taxation and also the increased competition from other countries. The management was not identified any risk which threaten the existence or going concern nature of the company.

ADEQUACY OF INTERNAL CONTROLS:

CSGSL has a proper and adequate system of internal control to ensure that all the assets are safeguarded and protected against loss or misuse or disposition and the transactions are authorized, recorded and reported correctly. The internal control systems are supplemented by management review. The internal control system is designed to ensure that the financial and other records are reliable and also maintaining accountability of assets.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Throughout the year, the total revenue reached Rs. 100.81 lakh, while the net loss amounted to Rs. 91.12 lakh, stemming from inadequate operational performance.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS:

CSGSL has 6 employees at the end of the year, from 5 at the beginning of the year. CSGSL recognizes the contributions of its people in creating a company, which ranks as one of the best facilities with highly skilled people.

CGSGL provides continuous learning and personal development programs by conducting training and evaluation of its personnel. Industrial relations have been very cordial in the organization during the year.

KEY FINANCIAL RATIOS

(i) Debtors Turnover: Not Applicable (ii) Inventory Turnover: Not Applicable (iii) Interest Coverage Ratio: Not Applicable (iv) Current Ratio: Not Applicable (v) Debt Equity Ratio: Not Applicable

(vi) Operating Profit Margin (%): The Operating Profit Margin deteriorated significantly in FY 2025 due to a sharp increase in losses of Rs.908.11 Lakh despite higher revenue of Rs.100.81 Lakh compared to FY 2024.

(vii) Net Profit Margin (%): The Net Profit Margin dropped a lot in 2025 because the loss increased to Rs.91.11 Lakh even though the revenue went up to Rs.100.81, compared to a smaller loss of Rs.15.10 on Rs.82.97 Lakh revenue in 2024.

RETURN ON NET WORTH: The Companys net worth decreased to Rs.2,76.09 Lakh in FY 25 from Rs.367.21 Lakh in FY 24, with a change in Return on Net Worth primarily due to increased operational losses and reduced profitability during the year.

GENERAL SHAREHOLDER INFORMATION:

A. Details of the ensuing Annual General Meeting

Date	Day	Time	Venue
30-09-2025	Tuesday	10.30 AM	Through Video Conferencing (“VC”) / Other Audio Visual Means (“OAVM”)

B. Financial Calendar: 1st April, 2024 to 31st March, 2025

1st Quarterly	Half Yearly	3rd Quarter	4th Quarter
August 2024	November 2024	February 2025	May 2025

C. Date of Book Closure:

25th December, 2025 to 31st December, 2025 (both days inclusive).

D. Market Price Date: High/Low during each month in last financial year (2024 2025)

(In Rupees)

Period	The Bombay Stock Exchange Limited (Mumbai)
	High	Low
April 2024	10.93	9.88
May 2024	15.24	8.80
June 2024	15.35	13.04
July 2024	12.39	10.11
August 2024	17.35	10.11
September 2024	15.80	13.60
October 2024	17.36	16.35
November 2024	17.36	17.36
December 2024	17.32	14.91
January 2025	15.50	9.71
February 2025	16.23	11.02
March 2025	16.23	16.23