Orchasp Ltd Management Discussions

Orchasp Limited is a conventional IT Services firm known for its bespoke software services. Our innovative and cost- effective services ensure our customers gain a competitive edge and remain on par with cutting-edge technologies. Our focus remains on maintaining quality standards in our key deliverables. We ensure to deliver best-of-breed technological solutions to enable our customers to meet their software development requirements.

We are a public limited company based in India, and have our registered and corporate office at Hyderabad, Telangana. Our company is listed on the Bombay Stock Exchange (BSE) & National Stock Exchange (NSE). Our services include compiling and selling products for general IT use and domain specific solutions. Some of the services we provide are listed below:

Services:

1. Software Development

• Our Primary service offering is the custom-built software in varied technologies across multiple domains

• Support of Software developed

2. Cloud Services

• Platform as a Service (PaaS): Offers software Platforms for B2B and B2C segments either as aggregation of service providers or as provider of single service on subscription model

• Software as a Service (SaaS): Delivers software applications over the internet on a subscription basis.

3. Managed Services

• Network and Infrastructure Management: Monitoring and managing network services and infrastructure.

• Security Services: Providing cybersecurity solutions, including threat detection and response.

• Data Backup and Recovery: Ensuring data is backed up and can be recovered in case of loss.

4. Consulting Services

• IT Strategy and Planning: Helping organizations develop and implement IT strategies.

• System Integration: Ensuring different IT systems work together seamlessly.

• Digital Transformation: Assisting businesses in adopting new technologies to improve operations

5. Support Services

• Help Desk Support: Providing technical support to end-users.

• Technical Support: Offering specialized support for specific technologies or systems.

• Maintenance Services: Regularly updating and maintaining IT systems.

6. Outsourcing Services

• Business Process Outsourcing (BPO): Contracting business processes to third-party providers.

• IT Outsourcing: Hiring external resources to handle IT functions.

• Offshore Development: Developing software or IT services in a different country to reduce costs.

Our Specific Service Areas

The Company is a highly customer-centric, flexible and transparent service provider. The Company believes in enhancing its clients business experience by taking process responsibility, improving cost efficiencies and adding value through continuous process improvements and quality assurances.

Application development & Automation services

Our expert team can build quick, reliable, and secure web applications.

• We use modern web frameworks

• Our expert team of UI/UX designers translates concepts into wireframes through multiple iterations

• We transform wireframes into a fully functional, production-ready web application. We believe in automating repetitive, mundane tasks and can help your business with:

• Automating builds, tests, and deployments

• Scaling up in the cloud

• Monitoring applications to proactively address any issues

Cyber Security

With the cyber threat landscape growing more complex, most companies dont have the cyber security tools and capacity in-house to keep security measures up to date. Easier access for attackers has increased risk and uncertainty, with breaches costing millions, and damaging reputations

Our cybersecurity solutions are tailored to meet diverse organizational needs, offering customizable services with detailed alerts, reporting, and dashboards. We guide you to the right solution for the specific threats that your business faces.

Data Analytics, AI&ML

Organizations often struggle to prioritize use cases and extract real business value from Data Analytics, AI, and ML initiatives. Orchasp bridges this gap with end-to-end solutions that support every stage of analytics maturity— from use case prioritization and platform architecture to scalable model development and enterprise-wide operationalization. Our proven expertise has helped clients across industries accelerate their journey from concept to deployment and unlock tangible outcomes from their Data Analytics, AI, and ML investments.

Internet of Things

As global businesses pursue innovation and growth, IoT technologies have become key drivers of transformation. While large enterprises, early adopters even during the pandemic have capitalized on IoT, its now time for small and medium businesses to tap into its potential.

Orchasp delivers full-stack IoT development for Industry 4.0

Client Acquisition

The Company has put in place a strong sales team in India and US, and our sales pipeline has been consistently improving. We believe that we will be able to improve our strong track record and have long-term relationships with our domestic and international customers. Our sales team is in place across major cities in India and we have sales in presence in UAE & USA as well. The twin engines for growth in this business will come from both domestic and international customers. We are also focusing on providing more end-to-end services to existing customers.

Quality

The Company has a robust Quality Management and Information Security Management system in place to identify potential risks, areas for improvement and further to have smooth business operations. Periodic Management Review meetings are conducted to review these.

Attrition

Despite industry-wide challenges around attrition, Orchasp continues to proactively secure and retain top-tier talent through strategic engagement and development initiatives.

To ensure a seamless talent pipeline, weve partnered with several skill development institutes, focusing on diverse language capabilities to support our growing consulting business. Our recruitment team has conducted virtual campus drives nationwide to meet internal hiring needs, bolstering our future-ready workforce. Recognizing the shift to remote work, weve prioritized employee engagement through curated virtual events that foster connection and culture. Additionally, we transitioned our entire training ecosystem online, fully integrated with our HRM platform—ensuring uninterrupted learning and career growth opportunities for our teams.

Our future technology roadmap will be based on industry 4.0 related technologies as we are planning to gear up our strategies to in line with Industry 4.0 as shown below

Global Economic Overview and Outlook

IT Services Market (Industry Overview)

Global Economic Overview and Outlook

The global IT services market is projected to expand from USD 1.61 trillion in 2025 to USD 2.98 trillion by 2034, reflecting a compound annual growth rate (CAGR) of 7.11%.

Market Trends

• AI-powered Everything

• 5G Expansion and Growth in Software and IT Services

• Increased IT Spending in India

Key Driving factors of the IT services market

• Increasing concerns regarding data security and privacy protection

• High demand for data analytics & big data solutions

Challenges

• Increased Cyberattacks

• Data Management and Privacy

Artificial Intelligence (AI) Market Size, Share, and Trends 2025 to 2034

The global artificial intelligence (AI) market is expected to surge from USD 757.58 billion in 2025 to approximately USD 3,680.47 billion by 2034, registering a rapid compound annual growth rate (CAGR) of 19.20%.

Market Trends

• Significant Market Expansion

• Increased Business Adoption and Investment

• Focus on Practical Applications and Scalability

Key Driving Factors

The increasing demand for artificial intelligence (AI) technology across diverse industry verticals including retail, banking, financial services and insurance (BFSI), healthcare, food and beverages, automotive, and logistics is playing a pivotal role in driving the growth of the global AI market.

Challenges

AI Ethical Issues, Computing power and Data Privacy and Security

IoT Security Market Gains Momentum with Rising Cyber Threats and Smart Tech Expansion

The market is expected to grow at a compound annual growth rate (CAGR) of 26.82% through 2034, reaching a value of over USD 383 billion.

Market Dynamics

• Restraint - High maintenance to manage IoT devices

• Opportunity - Adoption of IoT security in various sectors

The Key drivers of the IoT security market include the growing base of end-users and the increasing adoption of IoT technologies by enterprises to facilitate digital transformation.

Cyber Security Market Growth Fueled by Rising Cyber Threats, Data Breaches, and Digital Transformation

The global cybersecurity market is projected to grow from USD 301.91 billion in 2025 to approximately USD 878.48 billion by 2034, registering a robust compound annual growth rate (CAGR) of 12.60% during the forecast period.

Market Trends

• AI-powered threats and defenses

• Quantum computing Threats

• Blockchain, loT and cloud Security

Key Driving Factors: The growing threat of automotive hacking, the increasing frequency and sophistication of cyberattacks, evolving data privacy regulations, and the sweeping wave of digital transformation across industries. In addition, continuous technological advancements, along with mounting concerns over data breaches and privacy violations, are intensifying the demand for robust cybersecurity solutions.

Challenges

loT device vulnerabilities, Lack of awareness, Regulatory issues

Market Dynamics

• Restraint - Lack of Skilled Workforce and Data Privacy Concerns

• Opportunity - Expansion of BDaaS in Various Sectors

The Key driving factors of the big data as a service (BDaaS) market are the rising adoption of cloud services in various sectors is likely to boost the growth of the market.

Cloud Computing Market Size, Share, and Trends 2025 to 2034

The global cloud computing market is projected to grow from USD 912.77 billion in 2025 to approximately USD 5,150.92 billion by 2034, achieving a robust compound annual growth rate (CAGR) of 21.20%

Market Dynamics

• Restraint - Unstable internet connectivity in underdeveloped areas

• Opportunity - Integration of specialized computing solution

• Challenge - Regulatory hurdles Key Driving Factors:

The rising popularity of cutting-edge technologies such as artificial intelligence (AI) and machine learning (ML). Their rapid integration into cloud platforms is enabling smarter, more scalable, and efficient solutions, significantly accelerating market expansion across industries.

Our Platforms indusayush is the smartest solution that one can use to upload and maintain personal health records online.

Market Size and Growth

The India electronic health records market size reached USD 671.19 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,442.82 Million by 2034 exhibiting a growth rate (CAGR) of 8.18% during 2025-2034.

Key Driving Factors

• Digital Transformation in Healthcare

• Rising Demand for Streamlined Patient Data Management

Market Trends

• Expansion of Cloud-Based EHR Systems

• Government Initiatives and Digital Health Integration

Challenges

Data Privacy and Security, Interoperability, cost, Infrastructure, Training and Adoption. induscargo platform facilitates the Small Fleet Operators (SFOs) & Medium Fleet Operators (MFOs) interaction with SME, MSME and domestic customers to achieve their goals.

Market Size and Growth

The India logistics market size was valued at USD 228.4 Billion in 2024 and is projected to reach USD 428.7 Billion by 2034. The market in India is estimated to grow at a CAGR of 6.50% from 2025-2034.

Key Driving Factors

The introduction of automated material handling equipment, along with the growing adoption of drones and driverless vehicles for improving time and operational efficiency of logistic services, is primarily driving the India logistics market.

Market Trends

• E-commerce Growth and Digital Adoption

• Government Initiatives and Infrastructure Development

• Adoption of Artificial Intelligence (AI) and Machine Learning (ML) Technologies

Challenges

Rising costs, Labor shortages, Fragmented Transport Networks and Infrastructure Limitations. induskare is a digital platform that enables patients to find the most suitable and top-rated medical services (hospitals, clinics, doctors, diagnostic centers) near their current location.

1. Emergency Medical Services (EMS) Market:

Market size and Growth: The emergency medical services (EMS) and daycare markets in India are experiencing significant growth. The Indian EMS market is projected to reach USD 9.70 Billion by 2034, with a Compound Annual Growth Rate (CAGR) of 6.40% from 2025 to 2034.

Key Driving Factors

• Increasing healthcare awareness

•Rising demand for emergency medical services, and improvements in healthcare infrastructure.

2. Daycare Services Market:

Market Size and Growth: The Indian home healthcare market, which includes daycare services, reached USD 14.0 billion in 2024 and is projected to grow to USD 64.4 billion by 2034.

Key Driving Factors

• Changing Lifestyles

• Government Support

Challenges

Quality of services and Training Shortages, Regulatory and Legal Frameworks inadequate infrastructure and the need for standardized equipment.

www.indusretail.in

Marketplace aggregation of B2B goods & Services.

In the business-to-business model, businesses & organizations exchange goods and services for bulk purchases.

Market Size and Growth

The Indian retail market is experiencing substantial growth and is projected to reach $2 trillion in the next 10 years. In 2024, the market size is estimated at USD 993.1 billion, with a projected increase to USD 3,434.1 billion by 2034, exhibiting a CAGR of 13.21% between 2025 and 2034.

Key Driving Factors

• Rising Income and Consumption

• Urbanization and Digital Adoption

• Government Reforms and Infrastructure Development

• Emerging Middle Class

Market Trends

1. Rapid Expansion of E-Commerce

2.Increasing Presence of Organized Retail

3.Digital and social media-driven Consumer Behavior

Challenges

Intense Competition, Evolving Consumer Behavior, Regulatory Complexity and Sustainability Concerns.www.indusnetworx.in

A Human Capital Management (HCM) System.

HCM is a comprehensive software platform designed to manage and optimize an organizations workforce for Manufacturing, Services, Retails and Other industries.

Market Size and Growth

India human capital management market size reached USD 927.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,861.9 Million by 2034, exhibiting a growth rate (CAGR) of 12.35% during 2025-2034.

Key Driving Factors

The emerging trend of remote work, which necessitates tools that can effectively manage and engage employees across different locations, is primarily driving the market growth.

Market Trends

1. Prioritizing talent acquisition

2. Development and Management

3. Skill Development and Talent Retention

Challenges

Talent Shortages, Skill Gap, Attrition, Hybrid Work Models, Employee Well-being, Budget constraints and Competition.

www.induscrafts.in

Shopping cart of Indian handicrafts.

Ethnic Indian handicrafts from the hands of the maker to the collector.

Market Size and Growth

The India handicrafts market size reached USD 4,565.0 Million in 2024. The market is projected to reach USD 8,198.5 Million by 2034, exhibiting a growth rate (CAGR) of 6.39% during 2025-2034.

Key Driving Factors

Growing demand for ethnic and handmade decor, government support through export promotion schemes, increasing tourism, and a global shift toward sustainable and eco-friendly products.

Market Trends

• Handmade Decor India export Trends

• Sustainable Artisanal Products and Eco Credentials

• E-Commerce Platforms and Omni-Channel Retail Expansion

Challenges

Competition from Mass-Produced Goods, Lack of Awareness and Appreciation, Exploitation by Middlemen, Declining Artisan Workforce.

I. Exchange Fluctuations

Movements in exchange rates continue to be a major threat. There has been volatility in the exchange rate between INR and USD in the recent years and these currencies may continue to fluctuate significantly in future as well. During the year there have been significant volatility in the rupee with a low of INR 83.35 and a high of INR 86.96.

Our results of operation will be affected if the rupee-dollar rates continue to behave in a volatile manner in future or rupee appreciates significantly against dollar and other currencies.

II. Financial /operational performance:

The Company has adopted Indian Accounting Standards (Ind AS) from current financial year in the preparation and presentation of Financial Statements.

Sources of Funds

1. Reserves and Surplus

The Companys Reserves and Surplus as on 31st March 2025 were INR 48.25 Cr as against INR 78.11 Cr as on 31st March 2024

These reserves include an amount of Rs. 44.84 Cr pertaining to Share Premium and Rs. 3.39 Cr on account of profit.

2. Property Plant and Equipment

During the year there are marginal additions to Tangible Fixed Assets or Intangible Fixed Assets of company

3. Investments in Wholly Owned Subsidiaries

a. Cybermate Infotek Limited Inc : The company is considering incorporating a new company and closing the existing company on account of operational challenges in seeking business for the existing company due to NIL Operations for a prolonged period.

b. Cybermate International, Unipessol, LDA. The company is in the process of transferring the investment into a new company and the process of setting up a new company is underway.

4. Deferred taxes - Assets and Liabilities

The Company has Deferred Tax Asset (Net) amounting to Rs. 5.62 Lacs as against Rs.6.63 Lacs in previous year.

5. TradeReceivables

The position of outstanding debtors is as follows. INR - Lakhs

	Outstanding as at 31-03-2025 for following periods from due date of payment
Particulars	Less than 6 month	6 months-1 year	1-2 Years	2-3 Years	More than 3 Years	Total
(i) Undisputed trade receivablesconsidered	1,504.58	879.51	833.34	2,659.92	7,095.28	12,972.63

6.Inventories

The Company does not have any inventories as at 31st March 2025

7. Cash and Cash Equivalents

The balance of cash and cash equivalents as at the beginning of the year was Rs. 46.29 lacs.

The closing balance of Cash and Cash Equivalents is Rs. 32.08 Lacs held as cash, balances in current account and in deposit accounts and reconciliation elements.

8. Trade Payables and Other Current Liabilities

The position of trade payables is as follows.

Particulars	Outstanding as at 31-03-2025 for following periods from due date of payment				INR - Lakhs
	Less than 1 year	1-2 Years	2-3 Years	More than 3 Years	Total
(i) MSME
(ii) other	250.54	1,397.64	2,791.24	1,541.84	5,981.26
(iii) Disputed dues MSME
(iv) Disputed dues - others

9. Provisions.

Provisions include an amount of Rs.126.23 Lacs towards outstanding Salaries and expenses.

III. Results of Operations 1.Income

The Company has received regular income from service contracts during the year. However there is a slowdown in activity due to market conditions.

We report that the turnover of the company for the period 2024-25 was Rs.2108.27 Lakhs as against Rs. 1324.53 Lakhs for the period 2023-24.

2. Expenditure

During the year 2024-25 the employee benefit expenses were Rs.1754.81 lakhs as against Rs.1072.82 Lakhs for the year 2023-24.

3. Depreciation and Amortisation

Depreciation on Tangible and Intangible assets was provided for the full year.

4. Other Income- Net

Other income of the company includes Dividend income from investment in Shares of Listed Companies and gain on foreign exchange rate variation.

5. Net Profit

The Company had incurred a net loss of Rs. 1051.35 lakh (before tax) on account of recognition of foreign exchange variation on FCCBs as against a net profit Rs. 81.89 Lakhs (before tax) in the previous year. The Company has earned a net profit of Rs. 241.75 Lakhs prior to recognition of foreign exchange variation.

6. EPS after Exceptions

EPS for the year was Rs. -0.42 as against 0.03 in the previous year.

7. Liquidity

Liquidity has remained challenging due to delayed realisations and reduced activity

8. Related Party Transactions

Transactions with related parties have been made at an arms length basis and hence are not prejudicial to the interest of the company.

These have been discussed in detail in Note no 31 to the standalone & Consolidated financial statements in this Annual report.

IV. Opportunities and Threats Our Strengths

We have positioned ourselves as a custom-built application development company suiting the requirements of mid and emerging companies.

Our strengths include:

Product development - We have invested time and effort in enhancing our domain expertise in health care, telecom, engineering, energy, logistics and retail segments. We have been able to quickly adopt to the emerging developments in trade practices and enabling new features to our products to keep our customers ahead of their expectations.

End to End Offerings - Our end-to-end business solutions include transaction processing, data management, integration with third party tools and applications, independent testing and validation , network and surveillance, IT Support and Analytics.

Relationships: We have long standing relationships with midsized companies and Government Business Units and are quite seasoned in their processes which enable us to seek repeat business. Our track record delivering quality solutions help us strengthen these relationships over time.

Quality and Process Execution: Our clients have always been appreciative of our process implementation procedures and documentation which helps us maintain a healthy relationship and achieve business value.

Our Strategy

Platforms : The emergence of digital platforms for day- to-day merchandise across domains has created a new business space for technology companies as service aggregators.

The company has adopted the aggregation of service model and has conceptualised platforms viz.

(a) electronic health records repository : www.indusayush.in

(b) Arts & Crafts ecommerce of niche arts and crafts : www.induscrafts.in

(c) Corporate Information System : www.indusnetworx. in

(d) Job Profile : www.indusprofile.com

(e) Cargo/Logistics services of small fleet operators : www.induscargo.in

(f) Retail ecommerce aggregation of unorganised retail : www.indusretail.in

(g) Healthcare aggregation of health emergency services : www.induskare.in

(h) E Learning aggregation of informal learning : www. indusmaster.in

(i) content management : www.indusmatter.in

These platforms work on enrolling service providers with technology support.

On the other hand, the service receivers(customers) register by paying a subscription fee in some cases or simply registering and availing services.

The success of the platforms depends entirely on the marketing campaign and the customer base created.

Our Competition

We compete with small and midsized companies in Government and large corporations in application development, maintenance, and business process outsourcing segments.

V. Outlook, Risks & Concerns

- Our revenue and expenses are difficult to predict and can vary significantly from period to period.

- Our success largely depends upon retaining skilled technology professionals and our ability to hire, motivate and retain them.

- We are a company in mid segment space and may not be providing adequate confidence to companies / customers for long term contracts.

- We may not be able to sustain the working capital cycles.

- Our liquidity may not keep us comfortable to stay in the race in case of long sale cycles.

- We may be unable to recoup investments made in developing our software products.

- Our success depends on our management team and key personnel and our ability to attract and retain them.

- Our failures to complete fixed price and fixed time frame contracts or transaction-based pricing contracts within budget and on time may adversely affect our profitability.

We may not be able to provide end to end business solutions for our clients which could lead to clients discontinuing their work with us which in turn could impact our business.

VI. Internal Control Systems and their adequacies

The MD and CFO certification provided in the Annual report discusses the adequacy of our internal control systems and procedures.

VII. Material Developments in Human Resources / industrial relations, number of people employed.

Human Capital

As of March 31st, 2025, the company employed about 40 employees which include software engineers, trainees , process executives and administration.

Recruitment

We have built our software programming skill set by recruiting new graduates from different Engineering colleges and IT training institutes.

We have recruited process executives from Government aided foundations and aided consultancies.

We have in place a robust process which includes aptitude tests and interviews followed by a technology task approach in screening our programmers.

Training and development

Orchasp has always been conducting on the job training programmes on technology , business process , quality and presentation skills to mould its resources into techno commercial resources.

Compensation and Benefits

Orchasp has always been a midsized company attracting trainees to build their capabilities. Orchasp has always been facing challenges to retain its talent from large corporations which offer packages liked to performance and E- SOPs. In order to address this challenge, Orchasp has been considering an E-SOP to retain its talent.

Risk Management Framework:

In todays economic environment, Risk Management is a very important part of business. The main aim of risk management is to identify, monitor and take precautionary measures in respect of the events that may pose risks for the business. Your Companys Board believes that to ensure sustainable business growth with stability of affairs and operations of the Company, periodical review of various risks having a bearing on the business and operations is vital to proactively manage uncertainty and changes in the internal and external environment to limit negative impacts and capitalize on opportunities. Further, it is also belief of your management that Risk Management Framework enables a systematic approach to risk identification, leverage of any opportunities and provides treatment strategies to manage, transfer and avoid or minimize the impact of the risks.Keeping in view of the above, your Companys risk management is embedded in the continuous business processes and as a part of review of business and operations, your Board with the help of the management periodically reviews various risks associated with the business and products of the Company and considers appropriate risk mitigation process. However there are certain risks which cannot be avoided but the impact can only be minimized.

The risks and concerns associated with each segment of your companys business are discussed while reviewing segment-wise Management and Discussion Analysis. The other risks that the management reviews also include:

a. Industry & Services Risk: this includes Economic risks like demand and supply chain, Profiatability, Gestation period etc.; Services risk like infrastructure facilities;

Market risk like consumer preferences and distribution channel etc.; Business dynamics like inflation/deflation etc.; Competition risks like cost effectiveness

b. Management and Operational Risk: this includes Risks to Property; Clear and well defined work process; hanges in technology / up gradation; R&D Risks; Agency network Risks; Personnel & labour turnover Risk; Environmental and Pollution Control Regulations etc.; Locational benefits near metros

c. Market Risk: this includes Raw Material rates; Quantities, quality, suppliers, lead time, interest rates risk and forex risk,

d. Political Risk: this includes Elections; War risk; Country/ Area Risk; Insurance risk like Fire, strikes, riots and civil commotion, marine risk, cargo risk etc.; Fiscal/ Monetary Policy Risk including Taxation risk.

e. Credit Risk: this includes Creditworthiness; Risk in settlement of dues by clients and Provisions for doubtful and bad debts.

f. Liquidity Risk: this includes risks like Financial solvency and liquidity; Borrowing limits, delays; Cash/Reserve management risks and Tax risks.

g. Disaster Risk this includes Natural calamities like fires, floods, earthquakes etc.; Manmade risk factors arising under the Factories Act, Mines Act etc.; Risk of failure of effective disaster Management plans formulated by the Company.

h. System Risk this includes System capacities; System reliability; Obsolescence risk; Data Integrity risk & Coordination and Interface risk.

i. Legal Risk: this includes Contract risk; Contractual liability; Frauds; Judicial Risk and Insurance risk.

j. Government Policy: This includes Exemptions, import licenses, income tax and sales tax holidays, subsidies, tax benefits etc.