Dynamic Services & Security Ltd Management Discussions

Managements discussion and analysis of the financial condition and results of operations include forward looking statements based on certain assumptions and expectations of future events. The Company cannot assure that these assumptions and expectations are accurate. Although the Management has considered future risks as part of the discussions, future uncertainties are not limited to Management perceptions.

1. Review of Indian Economy:

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. Indias nominal gross domestic product (GDP) at current prices is estimated to be at Rs ^330.68 lakh crore. India has now crossed the US $4 trillion mark in nominal GDP, making it the fourth-largest economy in the world. On a purchasing-power parity (PPP) basis, its GDP is approximately US $17 trillion, positioning it as the third-largest globally.

Industry Structure and developments:

Services exports form a substantial component of Indias total exports. In FY 202425, the sector achieved a record-high export value of USD 383.5 billion, reflecting robust growth over previous years. The Services Export Promotion Council (SEPC) projects that this positive momentum will continue, with shipments expected to approach USD 400 billion in the coming fiscal year. The services sector once again proved to be a powerhouse for Indian exports, registering a stellar performance in FY 2024-25. Services exports surged to $383.51 billion from $341.06 billion in FY 2023-24, marking a substantial increase.This robust growth continues to be driven by the information technology (IT) and IT-enabled services (ITeS) sector, along with strong performances in financial services, consulting, and tourism., according to provisional data from the Commerce Ministry.

Strength, Opportunities, Threats

Strength:

> Established operations and proven track record

> Quality Assurance and Standards

> Experienced Management Team

> Satisfied customer with quality and service

> Smooth flow of operations

> Strong business model Potential to provide other value-added services

> Expanding new geographical area

> Opportunities in Indian Market

> Government thrust for growth in Indian Economy will boost the Services and logisticsIndustry.

Threats:

> Increase Competition from Big Players

> Change in Government Policies

> Rising labour wages

> Margins may be constrained in the future

> There are no entry barriers in our industry which puts us to the threat of competitionfrom new entrants.

2. Segment Wise - Product wise performance:

During the year under review, the Company operates into the different segments which are Transportation, Manpower & Merchandise Cleaning Charges and sales & Supply of goods.

Details of Segment wise Revenue of the Company:

• Transportation: Revenue from Transportation is Nil

• Manpower & Merchandise Cleaning Charges: The Total Revenue from Manpower & Merchandise Cleaning Charges is Rs. 10,822.75/- Lakh

• Sales & Supply of goods: The Total Revenue from Sales & Supply of goods is Rs. 16,651.00 /-Lakh

3. Outlook:

The Continual growth in the Indian sector is necessary to give necessary support to the industry. The company is making all efforts to accelerate the growth of its business. It expects to improve its position in the market by focusing in the technologically advanced and more profitable market segment and working aggressively in the area of productivity, efficiency and cost reduction.

4. Risks and Concerns

The Industry is exposed to the following risk and concerns:

• Political instability or a change in economic liberalization and deregulation policies could seriously harm business and economic conditions in India generally and our business in particular. The Government of India has traditionally exercised and continues to exercise influence over many aspects of the economy. Our business and the market price and liquidity of our Equity Shares may be affected by interest rates, changes in Government policy, taxation, social and civil unrest and other political, economic or other developments in or affecting India. The rate of economic liberalization could change, and specific laws and policies affecting the information technology sector, foreign investment and other matters affecting investment in our securities could change as well. Any significant change in such liberalization and deregulation policies could adversely affect business and economic conditions in India, generally, and our business, prospects, financial condition and results of operations, in particular.

• Uncertain Demand:

Aggregately, economic volatility and cyclical demand cause fluctuations in production. On a more granular level, consumer preference can cause spikes in demand for an individual products or company. Efficient lean capabilities must be in place to keep inventory aligned with demand.

• We require high working capital for our smooth day to day operations of business and any discontinuance or our inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on our operations, profitability and growth prospects.

Our business demands substantial funds towards working capital requirements. In case there are insufficient cash flows to meet our working capital requirement or we are unable to arrange the same from other sources or there are delays in disbursement of arranged funds, orwe are unable to procure funds on favourable terms, it may result into our inability to finance our working capital needs on a timely basis which may have an adverse effect on our operations, profitability and growth prospects.

• We require certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate our business, and the failure to obtain, retain and renew such approvals and licenses in timely manner or comply with such rules and regulations or at all may adversely affect our operations.

We require several statutory and regulatory permits, licenses and approvals to operate our business. Many of these approvals are granted for fixed periods of time and need renewal fromtime to time. Non-renewal of the said permits and licenses would adversely affect our Companys operations, thereby having a material adverse effect on our business, results of operations and financial condition. There can be no assurance that the relevant authorities willissue any of such permits or approvals in the time-frame anticipated by us or at all. Further, some of our permits, licenses and approvals are subject to several conditions and we cannot provide any assurance that we will be able to continuously meet such conditions or be able to prove compliance with such conditions to the statutory authorities, which may lead to the cancellation, revocation or suspension of relevant permits, licenses or approvals. Any failure by us to apply in time, to renew, maintain or obtain the required permits, licenses or approvals, or the cancellation, suspension or revocation of any of the permits, licenses or approvals may result in the interruption of our operations and may have a material adverse effect on the business.

5. Internal Control systems and its adequacy

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

6. Discussion on financial performance of the Company with respect to operational performance.

• Share Capital

The Paid-up Share Capital of the Company as on 31st March, 2025 is 23,51,81,920/- (Rupees Twenty Three Crore Fifty-One Lakh Eighty One Thousand Nine Hundred Twenty Only), divided into 2,35,18,192 (Two Crore Thirty-Five Lakh Eighteen Thousand One Hundred and Ninety Two Only) equity shares of Rs. 10/- each.

• Reserves and Surplus

The reserves and surplus are Rs. 11,247.67 Lakh as on the end of the current year.

• Total Income

During the year under consideration, the total income was Rs. 15,333.35 Lakh as against Rs. 10,472.17 Lakh during the previous year.

7. Material developments in Human resources / industrial Relations front, including number of people employed

Human resource is an asset to any industry. We believe that our employees are the key to the success of our business and hence we have a structured organization plan to take care of the growth and motivation aspects of our team. Our manpower is a prudent mix of experienced and young personnel which gives us the dual advantage of stability and growth. Our work processes and skilled resources together with our strong management team have enabled us to successfully implement our growth plans. The details of department wise number of employees are given here below:

The total strength of manpower as on 31/03/2025 is 2088 employees. The number of employees is dependent on the number of projects in hand as our work is labour intensive involving deployment of Manpower for Mechanized Cleaning, Catering, Housekeeping, Conservancy Service, Security Service, Catering Services, Contractual services, Suppling Goods &Services, Logistics and other related services.

9. Cautionary Statement

This report contains forward-looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results tobe materially different.

For and on behalf of the Board of Directors of

DYNAMIC SERVICES & SECURITY LIMITED

SD/-

Jugal Kishore Bhagat

(Managing Director)

DIN: 02218545