COSYN Ltd Management Discussions

Annexure-1

A. Introduction

Cosyn Limited continues to serve its valued clients across India in both the education and electricity domains. Our longstanding relationships and consistent delivery have reinforced our reputation for reliability and technical excellence. In parallel, the Company is actively pursuing new client acquisitions, leveraging cutting-edge technologies to offer differentiated solutions and expand our market footprint.

Over the past several years, Cosyn has evolved dynamically in response to emerging technologies and shifting market demands. Our core strengths in technology and engineering have enabled us to execute projects efficiently and deliver high levels of client satisfaction.

The IT and ITES sectors are witnessing a gradual recovery, with institutions increasing their spending on digital transformation initiatives. This trend presents fresh opportunities for Cosyn Limited to grow its revenues and expand its service offerings in the upcoming financial year.

The Company is fully geared to capitalize on this momentum, supported by a robust delivery framework, agile development practices, and a forward-looking technology roadmap.

Recognizing the rapid evolution of the software development landscape, Cosyn is investing strategically in talent development to stay ahead of the curve. We are building capabilities to harness the potential of emerging technologies and address the dynamic needs of our clients.

Our innovation strategy is focused on identifying and integrating high-impact technologies that can drive transformation across sectors. These include:

Technology Domain	Strategic Relevance to Cosyn
Artificial Intelligence (AI)	Intelligent automation, predictive analytics, and onscreen marking enhancements
Web3 and Blockchain	Secure data exchange, decentralized applications, and digital identity
Datafication	Advanced data analytics and decision support systems
Extended Reality (XR)	Immersive learning and simulation environments
Digital Trust Technologies	Enhanced cybersecurity and compliance frameworks
Robotic Process Automation	Operational efficiency and cost optimization
Cloud & Edge Computing	Scalable infrastructure and real-time data processing
IoT and Mobility Technologies	Smart grid solutions and connected education platforms
Technology Domain	Strategic Relevance to Cosyn
Cybersecurity	Protection of critical infrastructure and digital assets
3D Printing	Prototyping and innovation in engineering services

These technologies are expected to play a pivotal role in shaping Cosyns future offerings and strengthening our competitive edge.

Cosyn Limited remains committed to its strategic vision of delivering high-impact digital solutions that serve both public and private sector needs. Our proactive approach to technology adoption, client engagement, and talent development positions us strongly to navigate the evolving market landscape.

As we look ahead, the Company is focused on:

• Expanding our presence in high-growth verticals

• Enhancing operational efficiency through automation and AI

• Strengthening our innovation pipeline

• Driving shareholder value through sustainable growth

We thank our shareholders for their continued trust and support as we build a future-ready organization that thrives on innovation, agility, and excellence.

B. Digitisation and Onscreen Marking Initiatives

1. Introduction

The Management of Cosyn Limited is pleased to present an update on one of our most promising and transformative business verticals?Digitisation and Onscreen Marking of Academic Answer Scripts. This initiative reflects our commitment to innovation, operational excellence, and the delivery of scalable digital solutions that address critical needs in the education sector.

Over the past year, we have made substantial progress in this domain, with active implementation projects underway across several universities in the states of Telangana, Gujarat, Tamil Nadu, and Punjab. These engagements demonstrate our growing footprint and the trust placed in our capabilities by leading academic institutions.

2. Our Flagship Solution: digiMoolyakan

At the heart of these initiatives is our proprietary platform, digiMoolyakan?a secure, scalable, and efficient framework for onscreen marking. The platform enables digital evaluation of handwritten answer scripts, significantly improving the speed, accuracy, and transparency of academic assessments.

Key features of digiMoolyakan include:

• Seamless digitisation of answer scripts

• Intuitive evaluator interface for onscreen marking

• Secure access protocols and audit trails

• Real-time monitoring and reporting tools

These capabilities have positioned digiMoolyakan as a preferred solution among institutions seeking to modernize their evaluation processes.

3. Enhancing Security and Compliance

To further strengthen the integrity of the evaluation process, we have integrated advanced authentication mechanisms into the platform. These include:

• Biometric authentication for evaluator and administrator access

• Facial recognition for identity verification and session control

• Aadhaar integration to ensure compliance with national identity standards and secure access protocols

These features not only enhance security but also align with government mandates and institutional requirements for digital governance.

4. Future-Ready with Artificial Intelligence

Looking ahead, Cosyn Limited is preparing to integrate Artificial Intelligence (AI) tools into digiMoolyakan, transforming it into a state-of-the-art platform. These enhancements will include:

• AI-assisted scoring for descriptive answers

• Automated feedback generation to support student learning outcomes

• Bias detection and consistency checks across evaluators

• Predictive analytics for institutional performance and question quality

These upgrades will significantly elevate the platforms capabilities, enabling institutions to adopt intelligent marking systems that are faster, fairer, and more insightful.

5. Market Opportunity and Growth Potential

Indias academic ecosystem processes over 500 million answer scripts annually, spanning school boards, universities, and competitive examinations. The current manual evaluation methods are labor-intensive, inconsistent, and lack auditability. With increasing emphasis on digital transformation in education, there is a compelling opportunity to introduce intelligent marking systems that enhance speed, accuracy, and fairness.

Our market research estimates a Total Addressable Market (TAM) of approximately ^2,500 crore annually, driven by:

• Government mandates for digital evaluation

• Institutional reforms and modernization efforts

• Rapid adoption of EdTech platforms across India

Cosyn Limited is well-positioned to capitalize on this opportunity, with a proven solution, strong client relationships, and a clear roadmap for innovation.

6. Strategic Alignment and Shareholder Value

This initiative aligns with our broader strategic vision to expand into high-impact digital solutions that serve both public and private sector needs. The response from our institutional partners has been overwhelmingly positive, and we are witnessing strong momentum in this segment.

The digitisation and onscreen marking vertical not only strengthens our position in the EdTech space but also contributes meaningfully to our long-term growth strategy and value creation for shareholders. With increasing demand and a robust pipeline, we expect this business line to be a key driver of revenue and margin expansion in the coming years.

The Management remains committed to delivering innovative, impactful solutions that address real-world challenges. We thank our shareholders for their continued trust and support as we expand our presence in this transformative space and build the future of intelligent academic evaluation.

C. Risk Management and Project Governance

Cosyn Limited continues to uphold robust risk management practices across all operational domains. The Company has well-defined processes in place to identify, assess, and mitigate risks proactively. In the event of project delays or unforeseen challenges, timely discussions are held with clients to ensure that corrective actions are taken swiftly and that the Company is not exposed to undue financial or reputational losses.

This disciplined approach to risk governance has enabled Cosyn to maintain high levels of client satisfaction and project delivery efficiency, even in dynamic and complex environments.

D. Quality, Security, and Process Certifications

The Companys commitment to excellence is reflected in its adherence to globally recognized standards and certifications:

• ISO 9001:2015 - Quality Management System for Software Development, IT BPO Services, Data Management, and Infrastructure Management

• ISO/IEC 27001:2013 - Information Security Management System

• ISO/IEC 20000-1:2011 - IT Service Management System for Software Development, IT BPO Services, Data Management Services, Data Security, and Infrastructure Management

• CMMi Level 3 Certification - Demonstrates that all software development processes are well-characterized and institutionalized through defined standards, procedures, tools, and methods

• CERT-In Certification - Validates the security systems deployed across the Companys digital infrastructure, including websites, applications, and internal networks

These certifications reinforce Cosyns reputation as a process-driven, secure, and quality- focused organization, capable of delivering reliable solutions across sectors.

E. Human Capital and Workforce Stability

In the service sector, human resources are the cornerstone of operational excellence and sustained growth. Your Company places strong emphasis on attracting, retaining, and nurturing talented professionals to drive its strategic objectives. A well-structured talent management framework ensures that employee attrition is kept to a bare minimum, enabling seamless execution of projects and continuity in client delivery.

As of the end of the financial year 2024-25, the Companys total workforce stood at 536 employees. During the year, 20 employees separated from the organization, while 39 new employees were onboarded to strengthen the manpower base and support expanding business needs.

The Company remains committed to fostering a work environment that promotes professional development, employee engagement, and long-term career growth. These efforts continue to reinforce a stable and motivated workforce, which is vital to the Companys success in a competitive service-driven landscape.

F. Financial Performance Overview - FY 2024-25

During the financial year, the Company recorded Revenue from Operations of ^14.81 crore, compared to ^15.50 crore in the previous year. While revenue saw a marginal decline, profitability improved significantly, reflecting enhanced operational efficiency and cost management.

• Profit Before Tax (PBT) rose to ^0.41 crore, up from ^0.19 crore in the previous year.

• Profit After Tax (PAT) increased to ^0.16 crore, compared to ^0.04 crore in the prior year.

The improvement in profitability, despite a slight dip in revenue, underscores the Companys focus on optimizing resources and maintaining a lean cost structure. These results demonstrate resilience and a strong foundation for future growth.

Cosyn Limited remains committed to operational excellence, risk resilience, and talent development. Our certifications, governance frameworks, and workforce strength position us well to meet the evolving demands of our clients and capitalize on emerging opportunities. The Management continues to focus on building a future-ready organization that delivers consistent value to shareholders.

Revenue from Operations recorded Rs.14.81 crore as against Rs. 15.50 crore in the previous year. Profit after tax was Rs. 0.16 crore as against Rs. 0.04 crore in the previous year. Profit before tax was at Rs. 0.41 crore as compared to Rs. 0.19 crore in the previous year. Borrowings are at Rs. 407.07 lakhs as against Rs. 179 lakhs in the previous year and the finance costs were higher at Rs. 38.11 lakhs as against Rs. 17.24 lakhs in the previous year.

Ratios:

S. No	Particulars		2024 25	2023 24	Improvement / (Deterioration)
1	Debtors Turnover	Debtors/Revenue from Operation	1.05	1.24	-0.18
2	Debt Service Coverage Ratio	Earnings Before Interest, Tax and Exceptional Items/Interest Expense + Principal Repayments made during the period for long term loans	2.21	1.25	0.44
3	Current Ratio	Current Assets/Current Liabilities	3.43	2.87	0.16
4	Debt Equity Ratio	Total Outside Liabilities /Shareholders Equity	0.13	0.01	0.89
5	Operating Profit Margin	Operating Profit or EBIT/Sales	0.05	0.02	0.56
6	Net Profit Margin	Net Profit/ Sales	1.08%	0.27%	0.75