Cura Technologies Ltd Management Discussions

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 fuelling innovation and infrastructure. The rise of tech startups and global capability centres is reshaping the landscape. Overall, the industry is poised for sustained growth and deeper global integration.

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, DevOps, 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 is actively pursuing various business options to grow its operations, and is exploring new business opportunities, including identifying companies for acquisition or control to achieve inorganic growth, along with suitable funding options to support 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 exploitation of 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 for the financial year 2025-26.

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, with a shift toward mid-tier firms outpacing larger competitors and a greater focus on software, data centres, and private cloud solutions.

RISK & CONCERN:

The management of the Company shall review the existing risk management policy and lay down a defined risk management mechanism covering risk mapping and trend analysis, risk exposure, potential impact, and risk mitigation processes.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company would comply with Internal Financial Controls, commensurate with the size, scale and complexity of the Companys operations. The internal auditor reviews the adequacy of internal controls on a quarterly basis and reports to the Audit Committee of the Board.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year under review, the Company earned total income of Rs. 83.49 lakhs, as compared to Nil in the previous financial year, and incurred a net loss of Rs. 148.45 lakhs, as against a net loss of Rs. 66.30 lakhs in the previous financial year ended March 31,2025. The efforts undertaken by the management over the last one and a half years, particularly following the Companys emergence from the insolvency resolution process under the IBC, towards stabilising, restructuring and rebuilding the Company, are expected to yield positive results and strengthen the Companys performance going forward.

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

The Company is in the process of recruiting experienced personnel at the senior level, apart from strengthening other departments with competent people, as part of building up the organisation under the present management. As on March 31,2026, The Company has appropriate human resources in place to support and carry out its existing business operations.

RISK MANAGEMENT FRAMEWORK:

The Company has put in place an enterprise risk management framework for identifying risks and opportunities that may have a bearing on the organisations objectives, assessing them in terms of likelihood and magnitude of impact, and determining an appropriate 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, 2026	As at March 31, 2025	% Change	Reason for Variance
Debtors Turnover Ratio	Net Credit Sales/Average Trade Receivables	1.30			There were no sales in 2024-25
Inventory Turnover Ratio	Cost of Goods sold/Average Inventory	NA	NA		Service providing
Interest Coverage Ratio	EBIT / Interest Expense	(1.64)	(13,117.44)		EBIT was negative in FY 2025 due to operating losses
Current Ratio	Current Assets/Current Liabilities	0.37	0.17	Not Comparable
Debt Equity Ratio	Total liabilities/Shareholders Equity	3.62	1.65	Not Comparable
Operating Profit Margin (%)	Operating Profit / Revenue	48.16			Nil sales in 202425
Net Profit Margin (%)	Net Profit / Revenue	(1.78)	-	-

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.

NOTE:

Readers are advised to kindly note that the above discussion contains statements about risks, concerns, opportunities, etc., which are valid only at the time of making the statements. A variety of factors known/unknown expected or otherwise may influence the financial results. We do not expect these statements to be updated or revised to take care of any changes in the underlying presumptions.

Readers may therefore appreciate the context in which these statements are made before making use of the same.