ERP Soft Systems Ltd Management Discussions

Annexure 6

1. a. Industry structure and developments:

Software and computing technology is transforming businesses in every industry around the world. The management pursue huge growth in cloud, analytical and engineering IT Services and ERP Soft will be able to take advantage of this trend.

b. Opportunities and Threats:

We believe our strengths give us the competitive advantage to solve the strategic challenges of business.

c. Segment–wise or product-wise performance

Rs. in lakhs

Particulars	Standalone	Consolidated
Revenue:
2025-26	85.32	967.18
2024-25	164.15	973.58
Growth%	-48.02%	-0.66%

d. Outlook, Risks and concerns:

The outlook for the Company continues to remain promising. The Companys performance is significantly dependent on its ability to attract, recruit, motivate, retain and continuously develop highly skilled technology professionals. A substantial portion of the Companys revenues is derived from clients located in the United States, resulting in continued exposure to developments in that market. In addition, evolving corporate governance, regulatory and public disclosure requirements may create uncertainty in compliance processes and may lead to increased compliance-related costs.

e. Internal control systems and their adequacy:

The Company has established an internal control framework designed to provide reasonable assurance regarding the safeguarding of assets and the maintenance of proper, accurate and reliable accounting records. Business risks and the related control procedures are reviewed periodically to assess their effectiveness and adequacy.

System audits are also conducted at regular intervals, with particular emphasis on security and the adequacy of existing systems and controls. The findings of such reviews are reported to Senior Management, and appropriate corrective and strengthening measures are implemented wherever considered necessary.

f. Discussion on financial performance with respect to operational performance:

Refer to the Boards report for the summary of the financial performance

g. Material developments in Human Resources / Industrial Relations front, including number of people employed.

Our employees are our most important assets. We believe that the quality and level of service that our professionals deliver. As at March 31, 2026, the Company employed 9 employees, of which 5 were professionals from United States involved in service delivery to the clients, including trainees. The key aspects of our HR practice include recruitment, training and development, and compensation.

h. Details of changes in key financial ratios, along with detailed explanation thereof

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

RATIOS:

Particulars	2025-26	2024-25	Details of significant changes along with detailed explanations therefore
Debtors turnover ratio	1.78 times	3.54 times	N/A
Inventory turnover ratio	Nil	Nil	Nil
Interest coverage ratio	Nil	Nil	Nil
Current ratio	29. 06 times	26.85 times	Increase in receivables
Debt equity ratio	Nil	Nil	Nil
Operating profit margin (%)	11.88%	11.28%	N/A
Net profit margin (%)	8.26%	5.94%	N/A

j. Details of any change in return on net worth as compared to the immediately previous financial year along with a detailed explanation thereof: There has been no significant change in the Return on Net Worth of the Company during the financial year 2025-26 as compared to the immediately preceding financial year 2024-25.

2. Disclosure of Accounting Treatment:

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

	For and on behalf of the Board
	ERP Soft Systems Limited
	Kallurupalli Parvathi Reddy	Duvvuru Venkata
Place: Chennai	Managing Director	Sivakumar Reddy
Date: 05.09.2026	(DIN: 00827258)	Director
		(DIN: 02596830)