Compucom Software Ltd Management Discussions

Pursuant to Regulation 34 (2) (e) of Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015

OVERVIEW

The Company continues to operate in diverse areas such as e-governance projects, ICT education initiatives, software design and development, electronic media, IT and media training, learning solutions, and wind power generation. In addition, the pipeline projects are progressing positively in emerging sectors including hospitality, food processing, cold-chain solutions, and commodity trading.

Our strategic objective is to build a sustainable and resilient organization that consistently remains aligned with the evolving priorities of our clients, while simultaneously creating meaningful growth and development opportunities for our employees and delivering profitable and long-term value to our investors.

The financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 ("the Act") and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, and relevant amendment rules issued thereafter for preparing Financial Statements.

I. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Almost every industry in the world is being led by software and computing technology to revolutionize their business in a fundamental way, as we all know about the ubiquitous and even indispensable usage of software all around us. The IT and ITES industries are assisting in the digitalization of corporate processes, and it is cascading across industries, enabling IT-based market offerings and business models. This is due to the continuous decrease in hardware and bandwidth costs and exponentially increasing efficiencies of the same. Building next-generation software applications and platforms, as well as enhancing information and data security, are all results of the renewed digitization era.

Apart from these, there has been leaps-and-bounds advancement of AI based applications as well as Big Data becoming easier to collect, store and process to generate valuable insights for both legacy organizations and new-age fast growing organizations.

According to NASSCOMs Technology Sector Strategic Review 2025, the Indian technology industry (inclusive of IT, ITeS, engineering R&D, software products, and hardware) is projected to generate approximately $282.6 billion in revenue in fiscal year 2024 25, reflecting a 5.1 % year on year growth, up from about 3.8 % growth in FY24 (Reuters). Export revenues are expected to exceed $224 billion, while domestic revenues are estimated at around $58.2 billion, buoyed by 7 % domestic growth (NASSCOM).

In FY25, the IT industry added 126,000 new jobs, pushing total employment to 5.8 million professionals (Reuters). Heading into FY26, projections indicate that the tech sectors revenue could surpass the $300 billion mark (The Economic Times). Notably, the software product segment alone is on track to reach $100 billion by 2024-25, driven by AI, cloud, and deep-tech investments (The Economic Times).

Exports of IT and related services have seen a robust recovery. The Ministry of Electronics & IT reported that IT export revenues surged by 12.5 %, reaching approximately $224.4 billion in FY25, up from $199.5 billion in FY24 (indiabusinesstrade.in). This rebound is credited in part to the expansion of the Software Technology Parks of India (STPI) scheme, which now includes centres in many tier 2 and tier 3 cities (The Economic Times).

The sector continues to strategically deepen its global footprint through investments in Global Capability Centres (GCCs) and innovation-rich ER&D services, with a rapid shift toward AI-led delivery, cloud-native models, and cybersecurity offerings as key growth drivers (NASSCOM).

Finally, government investment in ICT initiatives has intensified since 2024—through measures like the STPI expansions—and aligns with your companys renewed engagements in ICT-related projects for the Government of Rajasthan, as recently communicated in public announcements.

In order to take advantage of the companys land bank already in place and to sustain the steady rate of diversification it has been doing over the years, your company is always focusing on new consumer segments and industry verticals.

Along with the company has had in the past, the installed Wind Power generation two plants that were in Rajasthan in Jaisalmer with capacity of 0.6 MW each, two at Sikar (Rajasthan) with capacity of 0.6 MW each & One Plant at Krishna (Andhra Pradesh) with capacity of 0.8 MW. Company has already disposed off the Jaisalmer and Sikar windmill plants as they had reached end of useful life. Our Andhra plant is still fully functional and generating revenue.

One of the anticipated pipeline projects is the eagerly awaited hotel project in Jaipur, which the Company has been developing. The project is expected to operate with best practices and an integrated self-sustaining supply chain, to the extent possible, with backward integration from a cold chaining and food processing project being set up nearby.

Despite the early challenges posed by the Omicron wave, Indias hospitality industry demonstrated remarkable resilience. As per HVS/ ANAROCKs India Hospitality Industry Overview 2024, the sector closed the year 2024 with strong metrics: an all India occupancy of 63–65%, average room rates between Rs. 7,800–Rs. 8,000, and RevPAR in the range of Rs. 5,000–Rs. 5,200, reflecting a solid 27–29% increase over pre COVID benchmarks (HVS). Horwath/ HTLs 2024 Hotel Market Review provides further validation: occupancy stood at 63.9%, Average Daily Rate (ADR) at Rs. 7,951, and RevPAR comfortably exceeded Rs. 5,000, registering a 10.7% year-on-year growth (Horwath HTL). At the quarterly level, JLLs Hotel Momentum India (HMI) report for Q4 2024 shows a 35% quarter-over-quarter growth in RevPAR, compared to Q3 2024, driven by recovering demand from corporate travel, weddings, and year-end holidays (jll.com).

According to India Tourisms Annual Report for FY 2024 25, the country recorded approximately 9.66 million foreign tourist arrivals (FTAs) in 2024, generating foreign exchange earnings (FEEs) of Rs. 2,77,842 crore (roughly US$ 33.5 billion) (Ministry of Tourism). This marks a sustained recovery from the steep downturn during the pandemic. For context, the tourism statistics show a stark contrast: in 2019, India had 10.93 million FTAs, growing at 3.5 % year-on-year, with FEEs rising 4.8 % to Rs. 1,94,881 crore (approximately US$ 30 billion) (Wikipedia, Mobility Foresights). Thus, while 2024 figures indicate commendable momentum, FTAs have not yet fully returned to 2019 levels. Focusing on our own region, foreign tourist arrivals in Rajasthan—which includes Jaipur—surpassed pre-pandemic numbers: 20.68 lakh (2.068 million) FTAs visited the state in 2024 25, exceeding the pre-COVID high of 17.54 lakh (Ministry of Tourism, timesofindia.indiatimes.com). From the hospitality standpoint, Horwath/ HTL reports that in the first half of 2024 (H1-24), India registered 4.8 million FTAs, reflecting a 9.1 % increase over 2023; cumulative arrivals from January to October 2024 stood at 7.68 million, a 2.8 % rise over the same period in 2023, though still below 2019 levels (horwathhtl.com). In Jaipur specifically, branded hotel room inventory rose to approximately 5.4 thousand rooms outside of Jaipur and Udaipur—a net increase of 1,000 rooms over 2023 (horwathhtl.com). Updated data for the entire city is yet to be released, but these emerging trends suggest continued inventory growth and growing inbound tourism.

It is crucial to keep in mind that these projections will need to be reevaluated in light of the lingering effects of the worldwide epidemic, which has already decimated the majority of tourism and related industries. Although the hotel is still in the construction stages and therefore has not yet incurred any operating expenses, the company has recognized that once the travel and hospitality industries pick up, there will be a renewed focus on values like cleanliness, safety, etc., and we are actively adapting our development strategy in line with this.

II. OPPORTUNITIES AND THREATS: Opportunities: a. India is one of the largest education marketplaces in the world, with 580 million of its 1.4 billion people falling into the target demographic for the education industry (ages 5 to 24). The "ICT in schools" programme is a chance to close the digital divide in India. The programme is a comprehensive effort to give rural school pupils access to new learning opportunities and a fair playing field. Compucom is a passport for a rewarding career in computer literacy, offering students practical training to keep up with the demands of the IT industry and more. There is a major stake holding the 60:40 funding split between the state governments and the federal government of India. For the state of Rajasthan, a major player in such ICT school projects is your very own Compucom. Compucom undertakes large projects that are similar in nature to a turnkey project, from setting-up of computer labs to imparting computer education and other computer aided learning program for government schools. These projects also involve supply of computer hardware, software and connected accessories as well as imparting of education services for a specified time (generally 3-5 years). Government having recognized the importance of IT in education as being fundamental to the development of a globally competitive economic and democratic society as well as placing India on the world IT map, has been focusing mainly on providing computers and computer literacy programs in Government schools. Compucom has shaped the lives of millions of students by introducing computer literacy to the students in Government Schools.

The Government of India promoted PPP models across India fueled by Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and skill development initiatives and effort to universalize Secondary and Elementary Education by community-ownership of the school system. It is a response to the demand for providing quality school education across the country. During this year the Company has received three more projects of by Rajasthan Council for School Education (A Govt. of Rajasthan Undertaking). This is also an attempt to provide an opportunity for improving human capabilities through the provision of community owned quality education. It aims to provide useful and relevant Secondary and Elementary education for all children within the 6-18 age groups. The Programme also aims to bridge social, regional and gender gaps, with the active participation of the community in the management of schools.). Along with this, the demand for corporate training is increasing with more and more companies outsourcing training to specialized IT training companies hence the growth of the IT-Training companies will be further boosted. Skill training focus of Government under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is also going to prove beneficial to our company soon. The company as well as its subsidiary has started work with due permissions, this skill development segment and if the pilot is successful, subsequent expansion and investment into this segment may be expected.

Additionally, in FY 20, the governments introduction of New Education Policy 2020 has placed a renewed focus on both IT education and ICT based education media. Be it including coding for children from an early school going age or proposing quality tech-based options for adult learning such as apps, satellite-based TV channels, ICT equipped libraries etc., the company looks forward to these developments and shall work closely with all stakeholders to ensure it plays a role in modernizing Indian education.

b. Software & E-governance Services: Traditionally the company has been focusing on software export market, but the way India is emerging as a powerhouse economy, many more software service opportunities in Government sector are emerging in areas of power utilities, Education, Rural Development, Infrastructure Development, etc. Our company has put significant efforts into harnessing this E-Governance business. Our company also serving overseas clients by providing software development, testing and maintenance and customer support services. The company had developed its own news portal which works in conjunction with its satellite TV Channel and has added shimmer to the companys brand image and generated new business opportunities. These past two FYs though have seen a temporary downturn in the number of client orders from overseas, but the company is fully geared to bounce back soon and is making efforts to ensure the same.

c. Media Services: Your companys subsidiary CSL Infomedia Pvt. Ltd. has successfully completed its eleventh year of operating its Satellite TV Channel "JAN TV" which is a vehicle of Educational, Financial, Social and Political change. This Channel offers Education, News, Employment, Skill Development, Agriculture, Tourism, Healthcare, Religious, Sports, Entertainment and News and Current Affairs based programs. Jan TV is available on Tata Play DTH Channel No. 1185, Airtel DTH Channel number 355, all major OTT platforms like MXPLAYER, JIO TV, DAILYHUNT, YouTube Live Streaming and on major cable networks across India. Jan TV is also available free on Android, iPhone mobile phones and on PC through internet and mobile app. Companys second TV channel is JAN TV PLUS which is also broadcasting News & Current Affairs, Entertainment, Education, Agriculture and Social Empowerment related programs. JAN TV is a Free-To-Air (FTA) channel, whereas JAN TV Plus is a Pay channel. Both JAN TV and JAN TV Plus channels are empaneled with Department of Information and Public Relations (DIPR) Government of Rajasthan. JAN TV is also empaneled with DAVP for getting Central Government advertisement. JAN TV has taken BARC (Broadcast Audience Research Council) subscription for Television Audience Measurement Services. JAN

TV now has a bureau office in Uttar Pradesh and trying to get empaneled with DIPR, UP.

d. Hospitality Sector: Since the Indian tourism & hospitality industry has emerged as one of the key drivers of growth among the services sector in India, and being located at Jaipur, which is among the preferred destination of domestic as well as international tourists, Compucom had decided to venture into this sector. Therefore, we had been constructing our hotel on our existing piece of land at IT 12-13 Sitapura Industrial Area, requiring phased investment of a total of 20 to 25 crore rupees approx., of which approx. more than 25 crores have been spent. The company is also exploring tie ups with reputed brands and operators in the hospitality space. The hotel project already became partly operational during past FY and is expected to be fully operational in this current FY.

e. Wind Power: Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate infrastructure is essential for sustained growth of the Indian economy. Indias power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, light, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar, and agricultural and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.

India is the third-largest producer and consumer of electricity in the world and had an installed power capacity of 411.64 GW as of March 2023. Out of this around 42.63GW comes from wind power.

The Company has an existing installed wind power capacity at Krishna (Andhra Pradesh) with capacity of 0.8 MW. The Company has sold off its windmills at Sikar and Jaisalmer as they reached end of useful life.

f. Cold Storage: The cold storage system is poised to become a game changer for Indias food and agricultural industry. While ensuring access to food for all, it will play a major role in boosting Indias economy. Since infrastructure is still at a nascent state, cold storage could help reduce the burden on farmers and industries in transacting with other stakeholders. The apparent benefits of cold storage are so high that they could curtail inflation and reduce dependency on price sensitivity and volatility. A strong interplay of private players, markets and farmers is required for sustaining and developing the sector. Investments need to be attracted through the right strategies, as the sector has a long-term effect on the health of the people and the economy of the state. Price control measures and regulations must be minimized and eventually stopped to tap the benefits of market in cultivating fruits and vegetables.

The 36 inter linkages developed between them will define the gross output of fruits and vegetables market in India and its contribution to the global market. With the advent of technology, it is only a matter of time before the warehousing systems are revolutionaries with increasing demands and pressure on the supply chain. It is therefore pertinent to have the right strategies in place to support the need of building an efficient cold storage industry in India.

The Company forthcoming project of Cold Storage is expected to be progressed in this ongoing financial year. Company is also hopeful of obtaining relevant subsidy from National Horticulture Board, Government of India.

Threats: a. Competitive pressures: IT is one sector that is spreading its wing fast throughout the world and India is becoming a preferred destination for global IT players. As a result, the competitive pressure is intensifying. The Company must operate in this competitive scenario and acquire a grip on the market to hold its foot firmly and upkeep the brand name.

b. Talent supply constraint: Both the IT as well as the manufacturing sector seek Talent. This increases the cost of talent. The Company must ensure that it acquires good talent and retains it to constitute its major competitive edge.

The Company maintains an excellent work environment and competitive package for this purpose.

c. Technology Obsolescence: These are the days when technology takes no time to become obsolete. Thus, to be at par with its competitors the company must ensure that it constantly updates and upgrades its technology.

d. Exchange Rates: Since the company uses India as a major source of manpower, the exchange rate of the rupee vis-?-vis the US-dollar and other currencies affects its ability to compete. The Company attempts to minimize the foreign exchange exponent by taking appropriate measures wherever required.

e. Government Policies: As and when there is a change in the Government, there might be a change in its policies too.

Any adverse changes in its policies may affect the business operations of the Company.

III. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE: Detailed information about segment-wise performance of the company are as follows:

• Information about reportable segments

A. Information about primary segments

Particulars	Year ended March 31, 2025			Year ended March 31, 2024
Business Segment	Allocated Unallocated		Total	Allocated Unallocated		Total
Revenue
Software	114.66	-	114.66	311.68	-	311.68
Learning	2716.67	-	2716.67	5908.04	-	5908.04
Wind Power	80.24	-	80.24	157.79	-	157.79
Hotel	9.32	-	9.32	3.78	-	3.78
Segment revenue	2920.89	-	2920.89	6381.29	-	6381.29
Expenses
Software	141.09	-	141.09	266.99	-	266.99
Learning	2812.79	-	2812.79	5629.25	-	5629.25
Wind Power	114.69	-	114.69	166.28	-	166.28
Hotel	14.59	-	14.59	4.03	-	4.03
Segment Expense	3083.16	-	3083.16	6066.55	-	6066.55
Segment Results
Software	(26.43)		(26.43)	44.69	-	44.69
Learning	(96.12)		(96.12)	278.79	-	278.79
Wind Power	(34.45)		(34.45)	(8.49)	-	(8.49)
Hotel	(5.27)		(5.27)	(0.25)		(0.25)
Segment Results	(162.27)	-	(162.27)	314.74	-	314.74
Less: expenses		33.34	33.34	-	35.91	35.91
Add: Interest income		-	-	-	-	-
Add: Other un allocable income		523.77	523.77	-	368.87	368.87
Profit before tax and exceptional items	-	-	328.16	-	-	647.70
Less: Exceptional item	-	-	-	-	-	-
Profit before tax	-	-	328.16		-	647.70
Tax expenses	-	-	99.28	-	-	173.76
Other Comprehensive income	-	-	3.18	-	-	107.04
Profit for the year	-	-	232.06	-	-	580.98

B. Information Based on Geography

Particulars	Year ended March 31, 2025	Year ended March 31, 2024
Revenue by geographical segment
India	3430.97	6681.88
USA	13.59	68.28
Total	3444.56	6750.16

C. Reconciliation between segment revenue and enterprise revenue

Particulars	For the year ended March 31, 2025	For the year ended March 31, 2024
Segment Revenue
Software	114.66	311.68
Learning	2716.67	5908.04
Wind Power	80.24	157.79
Hotel	9.32	3.78
Total Segment Revenue	2920.89	6381.29
Enterprise Revenue
Total Income	3444.66	6750.16
Less: Other income	(523.77)	(368.87)
Add: Export Incentives		-
Total Segment Revenue	2920.89	6381.29

IV. OUTLOOK:

The Company has a positive outlook for the coming year and endeavors to achieve a steady business performance in the coming year. This is, however, subject to the risks and uncertainties given below.

V. RISKS AND CONCERNS:

The Board of Directors and Senior Management is continuously and carefully monitoring the risks and concerns related to the business for example:, risks and uncertainties regarding fluctuating earnings, interest rates, exchange rates, the Companys ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increase, earnings and exchange rate fluctuations, intense IT competition, Government policies, ability to attract and retain skilled professionals, time- cost over-runs on fixed price contracts, client concentration, ability to manage the international marketing and sales operations as well as the local operations, alterations of the government fiscal incentives, political instability, legal framework and above all general economic conditions affecting the industry.

VI. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Companys internal financial control over financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company.

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and Directors of the Company and (3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Companys assets that could have a material effect on the financial statements.

The Company has a robust internal audit program, where the internal auditor conducts a risk-based audit with a view to not only test adherence to policies and procedures but also to suggest improvements in processes and systems. Their audit program was agreed upon by the Audit Committee. Internal audit observations and recommendations are reported to the Audit Committee, which monitors the implementation of such recommendations. The findings were satisfactory and suggestions for improvement have been taken up for implementation.

VII. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

• Financial Performance:

Income: The Company derives its income from Software& E-Governance services, sale of software products, learning solutions including skilling and placement activities, IT education and training, Wind Power Generation, treasury and hotel income. Treasury income mainly includes interest on FDRs.

(Rs. in Lakhs)

Particulars	31.03.2025	31.03.2024
Software & E-Governance Services - Overseas	9.91	68.28
Domestic	104.76	243.40
Learning Solution	2716.67	5908.04
Wind Power Generation	80.24	157.79
Hotel	9.31	3.78
Other Income	523.77	368.87
Total	3444.66	6750.16

a. Software Services: Software development at overseas level has decreased by Rs. 197.02 lakhs due to lower work orders. E-Governance projects at domestic level have also shown significant reduction due to completion of one project of Rs. 6.06 crores for supply of manpower on contract basis to Building and Other Construction Workers Welfare Board, received from October 21 and remained in operation up to 17.08.2023. The Company is bidding for new projects aggressively in the current financial year also.

b. Learning Solution: Learning Solution comprises imparting computer education in Govt. Schools, skilling and placement activities. During the financial year revenue from this segment has reduced by Rs. 31.91 crores. During the previous year 2023-24. We received two new major projects, namely 301 school project and 412 school projects. We received 301 projects for Rs. 15.48 crores for supply and installation of Computer systems, thin client, VC System, UPS and networking & electrification etc. in 301 schools with onsite comprehensive warranty. We received another project of 412 schools for Rs. 50.65 crores for supply and installation of Computer systems, printer, UPS, and networking & electrification etc. in 412 schools with 5 years onsite comprehensive warranty. 301 school projects contributed Rs. 14.06 crores and 412 school projects contributed Rs. 23.53 crores to total income during FY 2023-24. Income in current year 2024-25 from these projects was Rs. 0.32 crores and Rs. 6.22 crores respectively. 303 school projects completed in June 2023 which contributed income of Rs. 90 lakhs in previous year 2023-24 only.

Regarding the learning solution apart from the ICT and other projects of Government schools, the company indulges in providing skill development training to engineering & other curriculum batches, as well as government & other employees. Various skill development projects remained in operation during the current year 2023-24, for passing on benefits of schemes like DDUGKY and RSLDC to the youth of Rajasthan.

c. Wind Power Generation: The Company has three wind power plants. Two of them are in Sikar and one is in Krishna, Andhra Pradesh. We had two wind power plants in Jaisalmer which we sold for Rs. 80 lakhs and earned profit of Rs. 34.48 lakhs from sale of these two plants. The company took decision to sale these plants because power purchase agreement for Jaisalmer plant expired on 19.02.2024 and new tariff offered by the Power distribution company was not remunerative. Wind World India Limited takes care of the wind power projects of the company and deals on behalf of the company with all regulatory bodies. Revenue from this segment has therefore decreased in the current year 2024-25 by Rs. 77.54 lakhs compared to the previous year 2023-24.

d. Foreign Exchange Risks/ Exposures: The Company operates from India with execution facilities in USA. A significant portion of revenue, expenses related to Software business is carried out in US foreign exchange exposure for the last two years is mentioned below:

Particulars	31.03.2025	31.03.2024
Revenue in Foreign Currency	13.59	68.28
Revenue Expenses in Foreign Currency	-	-
Capital Expenses in Foreign Currency	-	-
Net Exchange Earning	13.59	68.28

The reason for the fall in revenue in foreign currency is due to lower overseas workorders.

Expenditure: (Rs. in Lakhs)

Particulars	31.03.2025	% of Total Revenue	31.03.2024	% of Total Revenue
Total Income	3444.66	100	6750.16	100
Expenses
Purchase of stock in trade	-		3040.65	45.05
Changes in inventories	17.78	0.52	(10.83)	(0.16)
Manpower Expenses	452.88	13.15	606.86	8.99
Learning Solution Execution Charges	1330.94	38.64	1174.48	17.40
Administrative & Other Expenses	343.40	9.97	462.21	6.85
Finance Cost	379.55	11.02	213.09	3.16
Depreciation	591.95	17.18	616.00	9.13
Profit Before Tax Before Exceptional Items	326.16	9.47	647.70	9.60
Exceptional Items	-		-	-
Profit Before Tax After Exceptional Items	326.16	9.47	647.70	9.60
Provisions for Income Tax	99.28	2.88	173.76	2.57
Profit After Tax	228.88	6.64	473.94	7.02
Other comprehensive income	3.18	0.09	107.04	1.59
Total Comprehensive Income	232.06	6.74	580.98	8.61

Manpower Expenses: These expenses have decreased from Rs. 606.86 lakhs to Rs. 452.88 lakhs due to the reason that BOCW welfare project on job basis for 218 employees was in operation up to 17.08.2023. Employees at software division also reduced due to lower work order received from USA.

Learning Solution Execution Charges: These expenses have increased from Rs. 1174.48 lakhs to Rs. 1330.94 lakhs mainly due to full swing of 412 school project during the F.Y. 2024-25.

Administrative & Other Expenses: These have been reduced by Rs. 118.81 lakhs due to the following reasons :- PPA of Jaisalmer plants completed and consequently these were sold, and no operation & maintenance expenses were required on these plants. Charity & donation and miscellaneous office and administrative expenses were lower than those of the previous year as a result of lower turnover and lower profit during the current year under review.

Finance Cost: Although the Company relies more on internal accruals than borrowings for financing the IT/ ICT projects awarded by the Government, interest paid during the year amounted to Rs. 3.65 crores which in the previous year was Rs. 1.90 crores only. This has been due to investment in subsidiary for Rs. 12.60 crores and two new projects namely 301 and 412 school projects on which company incurred Rs. 32.06 crores which had been financed out of overdraft against fixed deposits. The company raised bills for respective District Education Officers for these two projects. Major amount could be realized at the year end. Rs. 15 crores are still due to these projects.

Depreciation has reduced by Rs. 24 lakhs due to completion of ICT-4 and 303 school projects in April 2023 and June 23 respectively. We also sold Windmill plants at Jaisalmer location on Aug. 24.

• Operational Performance:

Share capital: The Company has only one class of shares, namely equity shares. The face value of the shares is Rs. 2/- per share. The paid- up capital of the company is Rs. 15,82,50,376/-

Reserves & Surplus			Fixed Assets :	(Rs. in Lakhs)
Particulars	31.03.2025	31.03.2024	Particulars	31.03.2025	31.03.2024
Profit & Loss Account	9201.00	9288.61	Gross Block	8449.49	8471.52
General Reserves	1484.79	1484.79	Accumulated depreciation	(4255.25)	(4270.35)
Securities Premium	1352.96	1352.96	Net Fixed Assets	4194.24	4201.17
Capital Reserve	209.22	209.22	Total Income/Net Block	0.82	1.61
Other Comprehensive Income	175.69	172.52	Acc. Dep. as % of Gross Block	50.36	50.41
Total	12423.66	12508.10

Investments: The details of investment made by the company are as under:

Particulars	31.03.2025	31.03.2024
Equity Investments in CSL Infomedia Pvt Ltd.	2561.45	1301.45
Equity Shares	3.96	3.39
Investments in Mutual Funds	0.78	0.43
Other Investments	-	-
Total	2566.19	1305.27

Non-Current & Current Liabilities:

Particulars	31.03.2025	31.03.2024
Long-Term Borrowings	1502.63	0.08
Deferred Tax Liabilities (Net)	0.00	0.00
Other Long-Term Liabilities	776.48	668.20
Long-Term Provisions	92.91	73.89
Short-Term Borrowings	1458.45	3863.52
Trade Payables	64.89	147.16
Other Current Liabilities	559.83	722.34
Short-Term Provisions	313.67	388.38
Total	4768.86	5863.57

Long Term Loans and Advances & Other Non-Current Assets:

Particulars	31.03.2025	31.03.2024
Long Term Loans and Advances	1103.31	1349.22
Other Non-Current Assets	182.30	252.12
Deferred Tax Assets (Net)	113.48	51.01
Other Financial Assets	1343.41	98.70
Total	2742.50	1751.05

Current Assets:

Particulars	31.03.2025	31.03.2024
Trade Receivable	3909.40	6955.75
Cash and Bank Balances	4382.08	4737.57
Short Term Loans and Advances	980.61	985.59
Stock in trade	0.00	17.78
Total	9272.09	12696.69

Trade receivables are mainly related to Govt. Schools of Rajasthan. These debtors are considered good and are realizable.

VIII. MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS, INCLUDING NUMBER OF PEOPLE

EMPLOYED:

Development of human resources is essential in every firm. The management continues to place a high priority on recognizing and developing talent within the business with the goal of keeping them as long-term assets and providing additional training to those qualified to handle more responsibility. By presenting workers with new challenges, this improves employee happiness inside the company. The Company places a great premium on developing its workforce and utilizing their efforts and ideas.

The Companys employee count stood at 537 as of March 31, 2025.

IX. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

In accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Company is required to give details of significant changes (change of 25% or more as compared to immediately previous financial year) in key sector-specific financial ratios. During the year the Company maintain the specific ratios as follows:

Particulars	2024-2025	2023-2024
Debtors Turnover Ratio	0.54	1.31
Inventory Turnover Ratio	328.56	516.01
Debt Service Coverage Ratio	3.52	7.63
Current Ratio	3.87	2.48
Debt Equity Ratio	0.21	0.27
Return on Equity (%)	1.63%	3.3636%
Trade Payable Turnover Ratio	2.15	4.42
Net Capital Turnover Ratio	0.42	0.84
Return on Capital Employed (%)	4.47%	4.67%
Return on unquoted investment (%)	0%	0.04%
Return on quoted investment (%)	21.46%	62.71%
Net Profit Margin (%)	7.84%	7.43%
Basic EPS (Rs.)	0.29	0.60
Return on net worth (%)	1.63%	3.3636%

Debtors turnover ratio has reduced from 1.31 to 0.54 due to decrease in credit sales. Inventory turnover ratio has reduced from 516.01 to 328.56 due to decrease in annual sales. Debt service coverage ratio has reduced from 7.63 to 3.52. However, it is still within standard benchmark range. Current ratio has increased from 2.48 to 3.87 due to decrease in current liabilities. Return on equity has decreased from 3.36% to 1.63% due to decrease in net profit. Trade payable turnover ratio has reduced from 4.42 to 2.15 due to decrease in purchase. Net capital turnover ratio has reduced from

0.84 to 0.42 due to decrease in annual sales. Return on unquoted investment is Nil during the current year while it was 0.04% in previous year. Return on quoted investment has reduced from 62.71% to 21.46% due to decrease in income from investment.

SOCIAL RESPONSIBILITY STATEMENT:

The Company remains steadfast in its role as an enabler and catalyst for positive societal transformation, integrating sustainability and community development into its core operating ethos. Over the years, our commitment to social good has been recognised through multiple Bhamashah Awards conferred by the Government of Rajasthan, a testament to our enduring contribution towards public welfare and education. Our initiatives span a diverse spectrum—feeding the needy through regular meal donations, elevating educational standards in government schools via infrastructure support, technology enablement, and capacity-building interventions, and fostering environmental stewardship. The Company has been a frontrunner in renewable energy adoption, operating windmills for over two decades and harnessing solar power extensively at its corporate headquarters well before it became mainstream in India. In alignment with our vision, the soon-to-be-operational hotel project will feature an integrated solar energy setup, ensuring sustainable operations from inception. These initiatives are not peripheral engagements but integral components of our long-term value-creation strategy, underscoring our belief that corporate growth and societal upliftment must progress in tandem.

CAUTIONARY STATEMENT:

This statement made in this section describes the Companys objectives, projections, expectations and estimations which may be ‘forward looking statements within the meaning of applicable securities laws and regulations. Forward–looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized by the Company. Actual results could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements based on any subsequent developments.

For and on Behalf of the Board of Directors
Compucom Software Limited
Sd/-	Sd/-
Surendra Kumar Surana	Vaibhav Suranaa
Chairperson, Managing Director & CEO	Executive Director
(DIN: 00340866)	(DIN: 05244109)
Place: Jaipur
August 07, 2025
Registered Office:
IT 14-15, EPIP, Sitapura,
Jaipur-302022 (Rajasthan)