Cura Technologies Ltd Management Discussions

Annexure III

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The IT industry is structured into services, software products, engineering R&D, and digital platforms. India leads globally in IT exports. Rapid adoption of AI, cloud, and cybersecurity is transforming operations. Government initiatives like Digital India and Startup India are fueling innovation and infrastructure. The rise of tech startups and global capability centers is reshaping the landscape. Overall, the industry is poised for sustained growth and deeper global integration.

The IT industry is experiencing robust growth, with Indias IT sector projected to reach USD $350 billion by 2026 and contribute 10% to the GDP, driven by strong demand for AI, cloud, and cyber security services. Key developments include substantial government investment in AI infrastructure and talent development through initiatives like the India AI mission and a proposed Deep Tech Fund. The industry is also expanding its global footprint, focusing on international investment and the establishment of Global Capability Centres in tier-2 cities, while the recent Union Budget emphasizes tax reforms and local production of electronics to boost the sector. The industry is well- diversified across various verticals like BFSI (Banking, Financial Services, and Insurance), telecom, and retail, with a growing demand from emerging sectors.

OPPORTUNITIES AND THREATS:

Opportunities in the IT industry are abundant, driven by rapid advancements in technology, with high-demand roles including AI/ML Engineering, Cloud Engineering, Cyber security, Data Science, and Software Development. Other growing fields include Web Development, Dev Ops, Mobile Development, and roles in IT Management and Project Management. These diverse roles span various sectors, from tech companies to government agencies, providing lucrative and rewarding career paths. The Company just came out from CIRP proceedings and is actively pursuing various business options as a part of revival of the business operations. Further the company is exploring new business opportunities and is in the process of Identifying the Company/ies for acquisition or take control to achieve inorganic growth and also option of funding to meet the same.

The primary threats in the IT industry are sophisticated cyberattacks, including ransomware, phishing, malware, and Distributed Denial-of-Service (DDoS) attacks, often facilitated by poor cybersecurity practices and human error. Other major threats involve exploiting software vulnerabilities, supply chain risks, insider threats, and the growing threat of AI-powered attacks. These attacks aim to steal data, disrupt systems, and cause significant financial and reputational damage.

SEGMENT WISE PERFORMANCE:

Since, the Company operates its business under one segment only, the report on segment wise performance is not applicable. In the financial year 2024-25, the Company could take all necessary steps to comply with Orders of Honble NCLT like complete all the legal formalities including constitution of the Board, committees and appointment of KMPs, regularization of all the filings with the Exchanges in terms of SEBI (LODR) Regulations, 2015 and Companies Act, 2013 by duly complying the approved plan as per the Order. Now the management is rigorously working on the development of the business and expecting reasonable results in the near future.

OUTLOOK:

The outlook for the IT industry is cautiously optimistic, with strong growth projected for Indias IT exports and overall IT spending, driven by the US market recovery and generative AI. However, a weakening European market and global economic headwinds present challenges. The sector is poised for increased growth in FY26, with a shift toward mid-tier firms outpacing larger competitors and a greater focus on software, data centers, and private cloud solutions. Presently the outlook is very promising.

RISK & CONCERN:

The new management of the Company shall review the existing risk management policy and lay down defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. Management will take steps to identify and evaluate, manage and monitor various risk.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Pursuant to the taking over of the operations of the Company by the new management, the Company would comply with Internal Financial Controls, commensurate with the size, scale and complexity of the Companys operations.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Company has been working for the last one and a half years for completion of the listing of equity shares post implementation of the approved plan, now reached to a meaningful phase wherein by allotment of shares to the respective shareholders as per the plan, reduction of capital relating to the erstwhile public shareholders, allotments and listing of shares relating to strategic investors and to the shareholder of the target company as per the merger and as per approved plan could be completed.

The Money raised through allotment from the Resolution applicant and Strategic Investors was properly spent for the discharge of liabilities as per the approved Resolution Plan, payment of Fees/dues to the Exchanges/ Statutory Organizations.

The management would be able to contribute more on building the business both in organic and inorganic form. The hard work put in by the management in the last one and a half year with respect to implementation of Orders of Honble NCLT are expected to yield results in the FY 2025-26.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The company is in process of recruiting experienced personnel at senior level apart from strengthening other departments with competent people as a part of revival of the Company in terms of Orders of Honble NCLT.

RISK MANAGEMENT FRAMEWORK:

Post revival from IBC, the Company has placed an enterprise risk management framework for identifying risks and opportunities that may have a bearing on the organizations objectives, assessing them in terms of likelihood and magnitude of impact and determining a response strategy.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE ASCOMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEYFINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR, INCLUDING:

Particulars	Formulae	As at March 31, 2025	As at March 31, 2024	% Change	Reason for Variance
Debtors Turnover Ratio	Net Credit Sales/Average Trade Receivables	-	-	-	No trade receivables or credit sales in either year.
Inventory Turnover Ratio	Cost of Goods sold/Average Inventory	-	-	-	No inventory held or consumed in either year.
Interest Coverage Ratio	EBIT / Interest Expense	(13,117.44)	-	-	EBIT was negative in FY 2025 due to operating losses; no interest expense in FY 2024.
Current Ratio	Current Assets/Current Liabilities	0.17	-	Not Comparable	Surge in current liabilities (^7.28 Cr) in FY 2025 vs. nil in FY 2024.
Debt Equity Ratio	Total liabilities/Shareholders Equity	1.65	-	Not Comparable	Introduction of ^11.75 Cr in liabilities and expansion of equity base in FY 2025.
Operating Profit Margin (%)	Operating Profit / Revenue	-	-	-	Revenue reported; calculation feasible. not margin not
Net Profit Margin (%)	Net Profit / Revenue	-	-	-	Revenue reported; calculation feasible. not margin not

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.

DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has not carried out any treatment different from that prescribed in Accounting Standards. CAUTIONARY STATEMENTS:

Certain statements in the Management Discussion and Analysis describing the Companys objectives, predictions may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India, volatility in interest rates, new regulations and Government policies that may impact the Companys business as well as its ability to implement the strategy. The Company does not undertake to update these statements.

	FOR AND ON BEHALF OF THE BOARD
		FOR CURA TECHNOLOGIES LIMITED
PLACE: HYDERABAD	SANGAREDDYPETA SAI KIRAN	SANJANA LAGUMAVARAPU
DATE: 04.09.2025	WHOLE TIME DIRECTOR & CFO	MANAGING DIRECTOR
	(DIN:09741325)	(DIN:09440632 )