Ekennis Software Service Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Ekennis Software Service Limited operates across two dynamic and high-growth sectors: Information Technology (IT) training and consultancy services, and the printing, designing, and packaging industry under its flagship brand, Myperfectpack.

The Indian IT sector continues to lead globally in digital services, with strong demand for training and consultancy in areas such as enterprise resource planning (ERP), cloud computing, data analytics, and emerging technologies. As organizations accelerate their digital transformation journeys, the need for skilled professionals and specialized IT solutions is growing rapidly. Ekennis is strategically positioned to meet this demand by providing tailored services in web development, ERP implementation, e-commerce solutions, system integration, consulting, and corporate training — empowering businesses to enhance digital capability and operational efficiency.

Parallelly, the Indian packaging industry is witnessing robust expansion, fueled by rising consumerism, the growth of e-commerce, and a shift towards sustainable and innovative packaging solutions. Through Myperfectpack., Ekennis has established a strong market presence by delivering high-quality, customized packaging and design services. The brands unique No Minimum Order Quantity (No MOQ) offering enables accessibility for businesses of all sizes, while its focus on design excellence, product quality, and prompt delivery has made it a trusted partner across industries.

Both sectors in which Ekennis operates are undergoing significant transformation. In IT services, emerging trends like artificial intelligence, automation, and virtual learning platforms are reshaping how solutions are delivered. In the packaging segment, developments in eco-friendly materials, smart packaging, and digital printing are driving innovation and influencing consumer expectations.

With a strategic presence in both industries, Ekennis is well-positioned to capitalize on these evolving trends, expand its solution portfolio, and continue delivering value-driven, future-ready services that align with market needs and customer aspirations.

2. OPPORTUNITIES AND THREATS

Opportunities: Opportunities

Ekennis is well-positioned to capitalize on the increasing demand for digital skills, ERP consulting, and virtual learning solutions in the rapidly evolving IT landscape. The continued rise of e-commerce and the growing preference for innovative, sustainable packaging present significant expansion opportunities for its MyPerfectPack brand. By leveraging online platforms and embracing eco-conscious packaging technologies, the company can unlock new markets and strengthen its competitive advantage.

Strategic Challenges and Forward Focus

While the company operates in dynamic sectors, it views challenges as opportunities for innovation and improvement. In the IT domain, rapid technological advancements and a competitive talent landscape encourage Ekennis to continuously invest in upskilling, agility, and cutting-edge solutions. In packaging, factors like supply chain complexities and input cost variations highlight the importance of strategic sourcing and operational efficiency. By staying adaptive to macroeconomic shifts and evolving customer needs, Ekennis is focused on sustaining growth, building resilience, and delivering enhanced value to all stakeholders.

3. OUTLOOK

At Ekennis, our commitment is to deliver high-quality services that consistently meet and exceed client expectations. The company operates through two core business verticals:

Software IT Consulting and Services: This includes ERP solutions tailored for small-scale enterprises, custom software and product development, e-commerce solutions, and specialized software training.

FMCG Consulting, Printing, Branding, and Packaging: This segment caters to end-to-end brand development and packaging solutions, offering design, consulting, and production support. While both domains offer strong growth potential, the packaging and FMCG consulting business also presents certain risks, such as: In light of evolving risks and market dynamics, businesses must remain agile and future-ready to drive sustainable growth. At Ekennis, our strength lies in our steadfast commitment to delivering excellence through high-quality services and deep domain expertise. We continuously invest in skill development, innovation, and process enhancements to ensure our clients benefit from cutting-edge solutions. Our focus on continuous improvement and a customer-first approach positions us to build lasting relationships, foster loyalty, and consistently exceed expectations. With a clear vision for growth, we aim to be a market leader — making a meaningful impact on our clients success and shaping the future of our industry.

4. VALUE CREATION

Net worth of the company decreased from Rs. Rs.502.15 Lacs (Standalone) to Rs. 340.57 Lacs as at March 31, 2025.

Total income: Total income of the Company stood at Rs. 224.61 Lakhs (Standalone) during the year under review as compared to Rs. 292.58 Lacs (Standalone) in the previous year.

Operating profit: Operating profit or EBITDA stood at RS. -102.67 (Standalone) during the year under review as compared to in Rs. 30.06 in the previous year.

Depreciation: Depreciation for the year under review stood at RS. 22.98 Lakhs (Standalone) as compared to RS. 21.89 Lakhs in the previous year.

Finance costs: Finance costs for the year under review stood at RS.26.21 Lakhs (Standalone) as compared to RS. 3.95 Lakhs in the previous year.

Other Income: Other Income for the year under review stood at RS 6.04 Lakhs (Standalone) as against RS. 20.29 Lakhs in previous year.

Net profit: Net profit for the year under review stood at RS. (161.58) Lakhs (Standalone) compared to RS. 0.58 Lakhs (Standalone) in previous year.

Net worth: The net worth of the Company stood at Rs. 340.57 Lakhs (Standalone) as on 31 March, 2025, compared to RS. 502.15 Lakhs (Standalone) as on 31 March, 2024. The net worth comprised paid-up equity share capital amounting to RS. 140 Lakhs as on 31 March, 2025, (14,00,000 Equity shares of RS. 10, each fully paid up) and other Equity being RS. 200.57 Lakhs (Standalone).

Loan profile: The total long-term Borrowings of the Company stood RS. 273.86 Lakhs for the year under review as on 31 March, 2025 and for the previous year it stood at Rs.0.00 Lakhs.

Total assets: Total assets of the Company during the year under review stood at RS. 749.83 Lakhs (Standalone) as on 31 March, 2025 compared to RS. 570.55 Lakhs (Standalone) in FY 2023-24.

Inventories: Inventories stood at RS. 25.80 lakhs during the year under review as compared to RS. 39.47 Lakhs in FY 2023-24. Inventories comprised raw materials and consumables.

Current liabilities: Current liabilities stood at RS.115.72 Lakhs (Standalone) comprising of Short term Borrowings of Rs. 67.53, trade payables of RS. 26.53 Lakhs and Other current Liabilities Rs. 21.31 Lakhs and Short-Term Provisions of RS. 0.35 Lakhs compared Rs. 48.72 (Standalone) Lakhs in previous year.

6. HUMAN RESOURCES/ INDUSTRIAL RELATIONS

Ekennis Software Service Limited recognizes that its people are its most valuable asset. The Company continues to invest in building a skilled, motivated, and future-ready workforce across both its business segments- IT consulting, software development, training, and packaging operations under the MyPerfectPack brand.

In the IT services division, continuous learning and upskilling remain a key focus to keep pace with evolving technologies. Ekennis conducts regular training programs to enhance technical and soft skills, and ensures a collaborative work culture that fosters innovation and accountability.

In the packaging segment, the Company emphasizes safety, quality orientation, and process discipline. Workers are trained in best practices in printing, design, and production to ensure consistent output and operational efficiency.

Employee engagement, well-being, and performance management are actively monitored across functions. The Company maintains cordial industrial relations at all locations and continues to follow fair, transparent, and compliant HR practices. As of the financial year-end, the Company maintained a stable workforce, with no industrial disputes reported.

Ekennis remains committed to creating a workplace that is inclusive, performance-driven, and aligned with its vision for sustainable growth.

7. QUALITY MANAGEMENT SYSTEM

Your Company is certified for Quality management system. The Company is MSME Sustainable (ZED) Certified. It ensures Zero Defect Zero Effect (ZED) practices. Your Company is making continuous efforts for improvement in the processes, Quality Management Systems (QMS) and skill building.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Ekennis Software Service Limited has a sound internal control system in place to ensure efficient operations, accuracy in financial reporting, and compliance with laws and regulations. These controls cover all key functions across its IT services and MyPerfectPack packaging business.

Regular internal audits and reviews are conducted to assess the effectiveness of controls, and necessary improvements are implemented promptly. The Audit Committee periodically monitors these processes. The management believes that the internal control system is adequate and operating effectively to support the Companys objectives.

9. DETAILS OF SIGNIFICANT CHANGES IN KEY RATIOS

In Accordance with SEBI (Listing obligation and disclosure requirement regulations), 2018, The Company is required to give details of significant Changes:

Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, or predictions may be "forward-looking statements" within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events over which the Company exercises no control.

Actual results may differ materially from those expressed or implied due to various factors such as economic conditions, market dynamics, government policies, regulatory changes, technological developments, and other incidental factors beyond the Companys control.

The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statements based on subsequent developments, information, or events.

The Company has followed the same accounting treatment as prescribed in the relevant Accounting Standards while preparing the Financial Statements.