COSYN Ltd Management Discussions

A. Business Environment and Strategic Outlook

The global Information Technology (IT) industry continues to witness rapid transformation driven by Artificial Intelligence (AI), cloud computing, cybersecurity, intelligent automation, data analytics, and digital platforms. Across sectors, organizations are increasingly investing in digital technologies to improve operational efficiency, enhance governance, strengthen customer engagement, and support data-driven decision making. In India, initiatives such as Digital India, the National Education Policy (NEP), Smart Metering programmes, and digital public infrastructure continue to accelerate technology adoption across education, utilities, and government services.

Against this evolving landscape, Cosyn Limited continues to strengthen its position as a trusted provider of Information Technology (IT) and Information Technology Enabled Services (ITES), delivering innovative digital solutions across the Education, Power Utility, e-Governance, and Enterprise sectors. The Company remains focused on developing domain-specific, secure, and scalable technology platforms that address evolving customer requirements while creating sustainable value for stakeholders.

During FY 2025–26, the Company continued to enhance its capabilities in Digital Assessment Solutions, Artificial Intelligence, Cyber Security, Smart Utility Solutions, Cloud Technologies, Intelligent Automation, and Data Analytics. These investments reinforce the Companys long-term strategy of leveraging emerging technologies to improve operational efficiency, strengthen governance, and deliver superior customer experience.

The increasing adoption of digital evaluation systems by universities and educational institutions, together with ongoing modernization initiatives by electricity distribution companies, presents significant opportunities for the Company. Cosyn is well positioned to capitalize on these opportunities through its domain expertise, proprietary technology platforms, and proven project execution capabilities.

The Companys growth strategy is centred on innovation, operational excellence, customer-centricity, and continuous technology adoption. Investments in research, product enhancement, and skilled human resources continue to strengthen Cosyns competitive position while supporting sustainable business growth.

Strategic Growth Drivers

Strategic Focus Area	FY 2025–26 Priority
Education Technology	AI-enabled Digital Assessment & Digitization
Power Utility Solutions	Spot Billing, Smart Metering & GIS Applications
Cyber Security & Digital Trust	Secure Digital Platforms & Information Security
Digital Transformation	Cloud, Analytics, Automation & Enterprise Solutions

Technology Roadmap

Technology	Business Application
Artificial Intelligence & Generative AI	AI-assisted evaluation, intelligent automation and predictive analytics
Intelligent Document Processing	Digitization and automated processing of answer scripts
Data Analytics & Business Intelligence	Dashboards, institutional insights and decision support
Cyber Security	Secure digital platforms, Zero Trust and compliance
Cloud Computing	Scalable enterprise applications and digital services
IoT & Mobility	Spot Billing, Smart Metering and field workforce automation
GIS Technologies	Consumer indexing, asset management and utility operations
Robotic Process Automation (RPA)	Workflow automation and operational efficiency

The Company remains committed to continuously enhancing its technology capabilities and expanding its portfolio of digital transformation solutions. With increasing adoption of AI, cloud computing, and digital governance across key sectors, the Management believes that Cosyn is well positioned to deliver sustainable growth and create long-term value for customers and shareholders.

B. Digital Transformation Solutions

Digital transformation continues to be the cornerstone of the Companys business strategy. By combining deep domain expertise with advanced technologies, Cosyn Limited delivers integrated digital solutions that improve operational efficiency, transparency, governance, and customer experience. The Companys solution portfolio is focused on two strategic business verticals—

Education Technology and Power Utility Digital Transformation.

1. Education Digital Transformation

Cosyn Limited has established itself as a trusted technology partner for universities, educational institutions, and examination authorities through its proprietary digiMoolyakan platform. The solution provides a comprehensive digital assessment framework covering digitization of answer scripts, secure onscreen evaluation, moderation, reporting, and archival, thereby significantly improving the speed, accuracy, transparency, and integrity of the examination process.

During the year, the Company continued to execute digitization and digital evaluation projects for universities and higher educational institutions across multiple states, further strengthening its presence in this growing segment. It has also been delivering the examination results processing services.

The digiMoolyakan platform offers several advanced capabilities, including:

x High-speed digitization of answer scripts x Secure onscreen evaluation x Automated script allocation and workflow management x Multi-level moderation x Real-time monitoring dashboards x Advanced MIS and analytical reports x Comprehensive audit trails x Secure digital archival and retrieval

Recognizing the transformative potential of Artificial Intelligence, the Company is progressively integrating AI-enabled capabilities into the platform. These include AI-assisted evaluation support, automated identification of unanswered questions, blank page detection, intelligent moderation, evaluation consistency checks, anomaly detection, and predictive analytics. These enhancements improve evaluation quality, reduce manual effort, and support faster and more consistent assessment while retaining appropriate academic oversight.

In addition, the Company is integrating Intelligent Document Processing (IDP) technologies for automated document classification, indexing, barcode recognition, metadata extraction, and secure digital archival. These capabilities improve operational efficiency and further strengthen the reliability of the digital evaluation ecosystem.

The platform incorporates robust security features including role-based access control, biometric authentication, facial recognition, encrypted data transmission, secure cloud infrastructure, and comprehensive audit logging, ensuring confidentiality, compliance, and integrity throughout the evaluation process

2. Power Utility Digital Transformation

The power distribution sector in India is undergoing significant transformation driven by smart metering initiatives, digital consumer services, operational automation, and data-driven decision making. Electricity Distribution Companies (DISCOMs) are increasingly adopting digital technologies to improve operational efficiency, enhance consumer experience, reduce Aggregate Technical & Commercial (AT&C) losses, and strengthen revenue realization.

Cosyn Limited continues to be a trusted technology partner for power utilities by delivering integrated digital solutions that support modernization of utility operations. The Companys solutions are designed to improve field operations, billing efficiency, consumer services, and enterprise-wide decision making through secure, scalable, and technology-enabled platforms.

The Company offers a comprehensive portfolio of utility automation solutions covering:

x Spot Billing Solutions x Mobile Meter Reading x Smart Meter Integration x Consumer Indexing x GIS-enabled Utility Applications x Revenue Assurance Systems x Field Force Automation x Consumer Relationship Management x Enterprise Mobility Solutions

a. Spot Billing and Mobile Applications

Cosyns Spot Billing solution enables electricity distribution companies to generate bills at the consumer premises through handheld mobile devices. The solution supports real-time bill generation, digital payment integration, instant receipt generation, and online synchronization with enterprise billing systems. This significantly reduces billing cycle time, improves billing accuracy, enhances collection efficiency, and provides better customer service.

The Companys mobile workforce solutions enable field personnel to efficiently perform meter reading, inspections, complaint management, disconnection and reconnection activities, asset verification, and maintenance operations using GPS-enabled mobile devices. These solutions improve workforce productivity, reduce manual processes, and provide real-time operational visibility.

b. Smart Metering and GIS Solutions

With increasing adoption of Advanced Metering Infrastructure (AMI) and Smart Metering programmes, the Company continues to strengthen its capabilities in integrating smart meter data with enterprise utility applications. These solutions support improved energy accounting, outage management, consumer analytics, and operational planning.

The Companys GIS-enabled applications facilitate accurate consumer mapping, asset management, feeder analysis, and network visualization, enabling utilities to optimize infrastructure planning and improve operational efficiency.

c. Revenue Assurance and Consumer Services

Cosyns Revenue Assurance solutions leverage analytics and automated workflows to support electricity utilities in identifying revenue leakages, monitoring billing performance, improving collection efficiency, and strengthening consumer lifecycle management.

The Company also delivers digital consumer service platforms that enable online bill payment, service requests, complaint registration, application tracking, and self-service capabilities, thereby enhancing customer convenience and improving overall consumer satisfaction.

The continued emphasis by Government agencies and electricity utilities on smart infrastructure, digital governance, and operational modernization provides significant long-term opportunities for the Company in this business segment.

C. Technology, Innovation, Cyber Security and Governance

Innovation remains one of the key pillars of Cosyn Limiteds business strategy. The Company continuously invests in emerging technologies to enhance its products, improve operational efficiency, and deliver intelligent digital transformation solutions across its focus sectors.

During FY 2025–26, the Company strengthened its technology capabilities in Artificial Intelligence (AI), Intelligent Document Processing (IDP), Cloud Computing, Data Analytics, Internet of Things (IoT), Mobility Solutions, Geographic Information Systems (GIS), and Robotic Process Automation (RPA). These technologies enable the Company to automate business processes, improve operational efficiency, and deliver enhanced customer value.

1. Arti icial Intelligence and Intelligent Automation

Artificial Intelligence is increasingly becoming an integral part of the Companys digital solutions.

The Company is progressively integrating AI-enabled capabilities into its Digital Assessment platforms to support:

AI-assisted evaluation

Evaluation quality assurance

Intelligent moderation

Automated answer script analysis

Blank page detection

Evaluation consistency checks

Predictive analytics

Intelligent dashboards

Decision support systems

These capabilities improve efficiency, transparency, consistency, and accuracy while maintaining appropriate human oversight in the evaluation process.

The Company also continues to leverage Intelligent Document Processing (IDP) technologies for automated classification, indexing, metadata extraction, and secure digital archival of documents across various business applications.

2. Cloud, Analytics and Digital Platforms

The Company continues to modernize its solutions through cloud-native architectures, enterprise mobility, API-based integrations, and advanced analytics. These technologies provide customers with scalable, secure, and high-availability platforms that support digital governance, operational excellence, and informed decision-making.

Business Intelligence and Analytics dashboards provide institutions and utilities with real-time visibility into operational performance, enabling proactive monitoring, improved planning, and better resource utilization.

3. Cyber Security and Digital Trust

As organizations increasingly rely on digital platforms, ensuring information security and cyber resilience has become a strategic priority.

The Company continues to strengthen its cyber security framework through comprehensive security practices covering secure software development, identity management, data protection, network security, vulnerability management, and regulatory compliance.

Key focus areas include:

x Secure Software Development Lifecycle (SSDLC) x Zero Trust Security Architecture x Multi-Factor Authentication (MFA) x Identity and Access Management x Data Encryption x Vulnerability Assessment & Penetration Testing (VAPT) x Security Monitoring x Secure Cloud Infrastructure x Business Continuity & Disaster Recovery

These initiatives support the Companys commitment to protecting customer information, ensuring business continuity, and delivering trusted digital solutions.

4. Risk Management and Corporate Governance

The Company follows a structured Enterprise Risk Management (ERM) framework to identify, evaluate, monitor, and mitigate strategic, operational, financial, technological, and regulatory risks.

Project governance practices include structured project planning, milestone-based reviews, quality assurance, resource optimization, customer engagement, and periodic management oversight, enabling timely delivery of projects while maintaining quality standards and customer satisfaction.

The Company continues to maintain internationally recognized certifications including ISO 9001,

ISO/IEC 27001, ISO/IEC 20000, CMMI Level 3, and CERT-In Security Audit Certification, reflecting its commitment to quality, process maturity, information security, and operational excellence.

D. Human Capital, Financial Performance and Outlook

1. Human Capital

Cosyn Limited recognizes that its employees are the cornerstone of its sustained growth and competitive advantage. The Company remains committed to fostering a performance-driven, inclusive, and innovation-oriented work environment that encourages continuous learning, collaboration, and professional excellence.

During FY 2025–26, the Company continued to strengthen its talent base through focused initiatives in technical capability development, leadership enhancement, and employee engagement. In line with evolving technology trends, specialized learning programmes were conducted in the practising domains. These initiatives have enhanced the technical competencies of employees and strengthened the Companys ability to deliver innovative, customer-centric digital solutions.

The Company also promotes a culture of ethical conduct, diversity, equal opportunity, and employee well-being. Performance management systems are aligned with organizational goals to encourage accountability, innovation, and continuous improvement. Employee health, safety, and welfare continue to receive due attention, supported by policies that foster a positive and collaborative workplace.

The Management believes that continuous investment in human capital will remain a key enabler for sustaining growth, driving innovation, and delivering superior value to customers and stakeholders.

2. Financial Performance

During FY 2025–26, the Company maintained its focus on operational efficiency, prudent financial management, and sustainable business growth. Strategic investments in technology, product enhancement, and digital transformation capabilities further strengthened the Companys ability to deliver high-value solutions across its core business segments.

The detailed financial statements, together with the Notes to Accounts, provide a comprehensive overview of the Companys financial position and operational performance for the year.

Financial Highlights:

Revenue from Operations recorded Rs. 10.88 crore as against Rs. 14.81 crore in the previous year. Profit after tax was Rs. 0.11 crore as against Rs. 0.16 crore in the previous year. Profit before tax was at Rs. 0.18 crore as compared to Rs. 0.41 crore in the previous year. Borrowings are at Rs. 398.62 lakhs as against Rs. 407.07 lakhs in the previous year and the finance costs were higher at Rs. 49.56 lakhs as against Rs. 38.11 lakhs in the previous year.

Ratios:

Particulars		2025 -26	2024-25	Improvement / (Deterioration)
1 Debtors Turnover	Debtors/Revenue from Operation	1.06	1.05	0.69
2 Debt Service Coverage Ratio	Earnings Before Interest, Tax and Exceptional Items/Interest Expense + Principal Repayments made during the period for long term loans	1.37	2.21	(37.93)
3 Current Ratio	Current Assets/Current Liabilities	3.21	2.75	16.56
4 Debt Equity Ratio	Total Outside Liabilities /Shareholders Equity	0.265	0.272	(2.40)
5 Operating Pro it Margin	Operating Pro it or EBIT/Sales	0.06	0.05	0.009
6 Net Pro it Margin	Net Pro it/ Sales	1.03%	1.08%	(4.35)

The Company continues to emphasize cost optimization, operational discipline, effective resource utilization, and disciplined project execution, thereby enhancing operational resilience and creating long-term value for shareholders.

E. Opportunities and Future Outlook

The outlook for the Information Technology sector remains positive, supported by increasing investments in Artificial Intelligence, Digital Public Infrastructure, Smart Utilities, Cloud Computing, Cyber Security, and enterprise digital transformation. Government initiatives such as Digital India, the National Education Policy (NEP), and utility modernization programmes are expected to further accelerate technology adoption across education, public administration, and power distribution.

The Company is well positioned to capitalize on these opportunities through its domain expertise, proprietary technology platforms, and diversified service portfolio.

Key strategic priorities for the coming years include:

x Expansion of AI-enabled Digital Assessment Solutions. x Wider adoption of digitization and intelligent evaluation platforms. x Growth in Spot Billing, Smart Metering, GIS, and utility automation projects. x Enhancement of Cyber Security and Digital Trust capabilities. x Continued investment in Cloud-native applications, Data Analytics, and Intelligent Automation. x Development of innovative digital platforms for education, utilities, and enterprise customers. x Strengthening long-term customer relationships through value-driven technology solutions.

The Company remains focused on enhancing operational excellence, improving customer experience, and creating sustainable stakeholder value through continuous innovation and responsible business practices.

F. Internal Control Systems and Their Adequacy

The Company has established an adequate system of internal controls commensurate with the nature, size, and complexity of its business operations. These controls are designed to safeguard assets, ensure the reliability of financial and operational information, promote operational efficiency, and ensure compliance with applicable laws, regulations, and internal policies.

The internal control framework encompasses well-defined policies and procedures for financial reporting, project management, procurement, information security, and risk mitigation. Internal audits are conducted periodically, and the findings are reviewed by the Audit Committee and Management to strengthen governance and improve operational effectiveness.

The Company continuously reviews and enhances its internal control environment by leveraging technology-enabled monitoring mechanisms and adopting best practices in corporate governance and enterprise risk management.

G. Risk Management

Risk management is an integral part of the Companys strategic and operational decision-making process. Cosyn Limited has implemented a structured Risk Management framework to identify, assess, monitor, and mitigate risks that may impact business objectives.

The key business risks include:

Technology obsolescence.

Cyber security and information security risks.

Project execution risks.

Regulatory and compliance risks.

Talent acquisition and retention.

Competitive market environment.

Business continuity risks.

Appropriate mitigation measures, including continuous technology upgrades, robust cyber security practices, project governance mechanisms, diversified customer engagement, and periodic management reviews, are in place to minimize the impact of these risks.

H. Cautionary Statement

Statements contained in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in economic conditions, government policies, technological developments, competitive pressures, regulatory changes, and other risks beyond the Companys control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements based on subsequent events or developments, except as required under applicable laws.