FCS Software Solutions Ltd Management Discussions

Overview

FCS Software Solutions Limited is a comprehensive Information Technology (IT) and IT-Enabled Services (ITES) company that delivers a broad spectrum of technology-driven solutions to clients across various industries. The company specializes in o ering a diverse range of services including software development, digital marketing, and end-to-end support services tailored to meet the needs of corporate clients. Their clientele primarily includes businesses operating in sectors such as Business Process Outsourcing (BPO), customized software development, e-learning solutions, and other technology-enabled services.

In addition to its core IT o erings, FCS Software Solutions Limited is also engaged in the business of real estate management, speci cally in leasing and renting out various types of immovable properties.

This includes IT infrastructure and commercial spaces, which may be either freehold or leasehold. These properties are leased out to various kinds of tenants, including corporate entities, startups, and service providers that require technologically equipped Office spaces to support their operations.

The company positions itself not only as a technology service provider but also as a strategic partner that supports the operational and infrastructural needs of businesses. By combining technical expertise with a focus on customer satisfaction and exible service models, FCS Software Solutions aims to support digital transformation e orts, enhance business e ciencies, and contribute to the long-term growth of its clients.

Through its integrated approach to IT and infrastructure services, the company is well-equipped to cater to the evolving demands of a dynamic and technology-driven global market.

Business Outlook

The future of the Information Technology (IT) sector looks highly optimistic, underpinned by continuous innovation, rising global digital adoption, and the increasing reliance of businesses on technology for growth and e ciency. As digital transformation becomes a strategic priority across industries, the demand for IT services and solutions is expected to surge. Technologies such as Arti cial Intelligence (AI), Machine

Learning, block chain, and the Internet of Things (IoT) are transforming business models and enabling smarter, faster, and more data-driven decision-making.

Cloud computing will remain a key pillar of IT growth, with enterprises continuing to adopt cloud- rst and hybrid models to increase scalability, resilience, and operational e ciency. The migration to cloud-native infrastructure is expected to accelerate, creating significant opportunities for cloud service providers and

IT consultants. At the same time, the importance of cyber security will intensify, as organizations face increasingly sophisticated cyber threats. Investment in advanced cyber security frameworks, data privacy, and regulatory compliance will be critical to building trust and ensuring business continuity.

Additionally, the IT workforce itself is undergoing transformation. The demand for skilled professionals in areas such as software engineering, data science, AI, and cyber security continues to rise. Flexible work models and the increased use of digital collaboration tools are reshaping how IT teams operate, leading to more inclusive and globally distributed work environments. The sector will also play a vital role in promoting digital inclusion, especially in emerging markets, by enabling access to digital infrastructure and services in remote and underserved areas.

Looking ahead, the IT sector is poised for sustained growth and structural evolution through 2030. Companies that are agile, innovation-driven, and focused on creating value through digital platforms will lead the way. Mergers, acquisitions, and partnerships will likely increase as rms seek to expand their capabilities and address rapidly changing customer demands. Overall, the IT industry is entering a dynamic era of transformation—driven by technological progress, sustainability imperatives, and global digitalization—and is well-positioned to remain a central force in shaping the future economy.

Industry structure and developments:-

The industry structure in the IT sector has four major categories. These are –

IT Services	IT enabled Services
Leasing Services	Education/E-Learning

IT services constitute a major part of the IT industry of India. IT services include client, server and web based services. Opportunities in the IT services sector exist in the areas of consulting services, management services, internet services and application maintenance. The major users of IT services are –

Government	Banking
Financial Institutions	Retail and Distribution
Manufacturing

FCS works with clients to maintain their IT Applications on Time and Material (T & M) basis or Fifixed Price Fifixed Timeframe (FPFT) basis.

Based on clients Request for Proposal (RFP) and provide an estimate of time and cost.

Based on nature of work, FCS will suggest T & M or FPFT pricing model as well as global delivery model.

FCS replicates application environment based on project needs or will use secure VPN connections to directly log in client servers.

Set Centers of Excellence (COEs) to leverage talent skilled in a set of specific technologies and domains.

Set up Lab Model for temporary deployment of resources for one time kind of work e.g. Application Testing, Third party Application Audit etc.

IT enabled services:-

The services which make extensive use of information and telecommunication technologies are categorized as IT enabled services. The IT enabled services are the most important contributor to the growth of the IT industry of India. Some of the important services covered by the ITES sector in India are –

Customer-interaction services including call-centers	Revenue Accounting
Back Office Services	HR Services
Data Entry and Data Conversion	Content Development and Animation
Transcription and Translation Services	Data Search
Remote Education	Market Research
GIS
Network Consultancy

Infrastructure Management Services:-

Collocation Data Centers, Virtualization, System and Networks Support, Plug and Play Infrastructure provisioning, WAN, IP Based Voice, Cyber Security.

Leasing Incomes:- The Company is also in the business of leasing or letting out all kind of immovable property including IT Infrastructural premises whether freehold, leasehold to other organizations.

Education/ E- Learning

Content Aggregation, Learning Management Systems, Portals, Assessment.

A. Opportunities and Threats

OPPORTUNITIES

1. Cloud Computing: The continued growth of cloud services o ers opportunities for businesses to leverage scalable resources, improve operational e ciency, and develop new service models.

2. Cyber security Solutions: The increasing demand for robust cyber security measures creates opportunities for developing advanced security technologies and consulting services to protect data and infrastructure.

3. Internet of Things (IoT): Expanding IoT applications in smart cities, healthcare, and industrial automation provide opportunities to innovate with connected devices and data-driven solutions.

4. Remote Work Solutions: The shift to remote and hybrid work models drives demand for collaboration tools, virtual workspaces, and secure remote access solutions..

5. Sustainability Technologies: The focus on green IT and sustainable practices creates opportunities for developing energy-e cient technologies, reducing electronic waste, and promoting environmental responsibility.

6. Big Data and Analytics: The growing volume of data presents opportunities for creating advanced analytics platforms and tools that help businesses derive insights and make data-driven decisions.

7. Digital Transformation: The push for digital transformation across various industries creates opportunities for IT companies to provide consulting, integration, and implementation services.

8. EdTech Solutions: The demand for innovative educational technologies and online learning platforms continues to grow, providing opportunities for creating engaging and e ective educational tools.

9. RegTech: Regulatory technology solutions that help companies comply with complex regulations and manage risk o er opportunities for innovation in financial services and other regulated industries.

10. Niche Expertise and Knowledge: Our services and solutions, together with exible and mindful approach, have consistently provided innovative options for R&D spend, cost and time advantages for technology investments, reduced integration risk, improved user productivity, and positive client experiences.

11. AI Automation: The increased focus on AI and automation technology is a great opportunity for outsourcing providers.

THREATS

1. Cyber security Risks: Increasing sophistication of cyber-attacks, data breaches, and ransom ware threats pose substantial risks to IT infrastructure and sensitive information.

2. Regulatory Compliance: Stricter data privacy laws and regulations, such as GDPR and CCPA, require companies to invest heavily in compliance and risk facing significant penalties for non-compliance.

3. Economic Uncertainty: Economic downturns or recessions can lead to reduced IT budgets, delayed investments, and slower growth, affecting industry performance.

4. Rapid Technological Change: The fast pace of technological advancements can lead to obsolescence, requiring continuous adaptation and investment to stay competitive.

5. Talent Shortages: There is a growing demand for skilled IT professionals, and the industry often faces challenges in attracting and retaining top talent, leading to skill gaps.

6. Supply Chain Disruptions: Dependence on global supply chains for hardware and software components can lead to vulnerabilities and disruptions, affecting operations and delivery.

7. Geopolitical Risks: Political instability, trade wars, and regulatory changes in di erent regions can impact global operations and market access.

8. Consumer Privacy Concerns: Growing awareness and concern over data privacy among consumers can lead to increased scrutiny and demand for transparency from tech companies.

9. Environmental Impact: The IT industrys environmental footprint, including energy consumption and electronic waste, is under increasing scrutiny, pushing companies to adopt more sustainable practices.

10. Market Saturation: In certain segments, market saturation can lead to intensi ed competition and diminished margins, impacting pro tability.

11. Forex rate uctuations: The rupee has exhibited two way movements over the past six months, re ecting both global and domestic factors. Looking ahead, the protracted geopolitical tensions, heightened volatility in global financial markets, elevated global sovereign bond yields on the back of more than currently anticipated monetary policy tightening in major advanced economies.

12. Competition: The Company is witnessing an overall increasingly competitive landscape and varied market competition from domestic and international service providers who are both large and small.

Nevertheless, our longstanding and enviable client relationships, financial strength, as well as niche knowledge and expertise, provides an edge for remaining relevant.

B. Segment-wise / Product-wise Performance

The company has shown average performance. For the financial year ended March 31, 2025, the

Company reported a total consolidated revenue income of Rs. 3,654.04 lakhs and Standalone revenue of Rs. 3,267.51 lakhs. The percentage wise revenue contribution of each segment is as below:

1. IT & IT Enable Services

2. Education/E – Learning Services

3. Leasing services

C. Outlook for the future

As we move through 2025, the outlook is increasingly optimistic. In ation is expected to moderate, and fresh waves of innovation are sparking renewed interest among consumers, investors, and business leaders across multiple sectors. Breakthrough technologies such as generative AI, spatial computing, and quantum computing are advancing rapidly and hold the potential to fundamentally transform the way we live, work, and innovate.

D. Risk and Concern

The Company has formulated a well-defined and dynamic enterprise risk management (‘ERM) program, which gets reviewed and updated periodically. The program is governed by a comprehensive risk management policy, which, amongst others, includes the risk management governance structure and the risk management process. The risk management process enables proactive identi cation, recording, tracking of risks and monitoring of mitigation plans to respond to changes in business and regulatory environment. The risk management process is embedded in all facets of Companys work systems including the planning & review process, thereby reassuring all stakeholders, customers, investors, employees and partners of the Companys business sustainability.

E. Internal control systems and their adequacy

The Company has established a strong internal control system that is well-suited to its size and operational complexity. A thorough review of these controls has been conducted to ensure they align with the Companys growth, evolving operational needs, legal compliance requirements, and internal policies and procedures. This framework supports a high level of system-based monitoring and ensures the ongoing e ectiveness of internal controls.

To further strengthen our internal oversight, the Company has appointed a rm of Chartered

Accountants as Internal Auditors, in consultation with the Statutory Auditors. Their role is to assess and audit the internal control mechanisms in place. Observations, recommendations, and concerns raised by the Internal Auditors are reviewed by the Audit Committee and acted upon in accordance with the

Committees directives. Audit ndings and the corresponding action plans developed by management are reported quarterly to the Audit Committee of the Board, which is chaired by a Non-Executive

Independent Director. Based on its evaluation, the Audit Committee has con rmed that, as of March 31, 2025, the Companys internal financial controls were adequate and functioning e ectively.

F. Financial performance with respect to operational performance

For the financial year ended March 31, 2025, the Company reported a total consolidated revenue income of Rs. 3,654.04 lakhs and Standalone revenue of Rs. 3,267.51 lakhs.

The financial year ended March 31, 2025, marked a period of strong recovery and financial consolidation for the Company, with both standalone and consolidated financials re ecting significant improvement over the previous year. The Companys performance was driven by focused operational e ciency, cost optimization, and a strategic approach to long-term value creation.

G. Material developments in Human Resources/ Industrial Relations Front, including number of people employed

As on 31st March, 2025, the Company had 251 permanent employees working at various locations.

The company considers the employee values and ensures proper encouragement both morally and financially to motivate them. The relationship between the management and employees is remarkable.

H. 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 explanation thereof;

S. No.	Particulars	Numerator	Denominator	FY-2024-25	FY-2023-24	Changes	Remarks
1	Current Ratio	Current Assets	Current Liabilities	4.63	1.22	340.90%	Note-1
2	Return on	Net Profit after	Shareholders	0.83%	-4.95%	5.78%
	Equity Ratio	Taxes	Equity
3	Trade	Trade	Turnover	0.15	0.05	9.35%
	Receivable	Receivables
	Turnover
	Ratio
4	Trade	Trade	Turnover	0.01	0.01	-0.15%
	Payables	Payables
	Turnover
	Ratio
5	Net Capital	Turnover	Working Capital	2.70	13.96	-1125.86%	Note-2
	Turnover
	Ratio
6	Net Pro t	Net Profit after	Revenue	8.38%	-38.48%	46.86%	Note-3
	Ratio	Taxes
7	Return on	Earnings	Capital Employed	0.01	-0.05	5.74%
	Capital	Before Interest	**
	Employed	and Taxes

* Total Debts represents Total Borrowings

** Capital Employed represents Networth + Total Borrowings

Notes:

1. Current ratio has increased due to decrease in current Liabilities.

2. Net Capital Turnover ratio has decreased due to increase in Working Capital.

3. Net Profit Ratio increased due to increased in Net Profit for the year.

I. Compensation

Our technology professionals receive competitive salaries and benefits. We have a performance-linked compensation program that links compensation to individual performance, as well as our Companys performance.

J. Cautionary Note

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can di er materially from those expressed or implied, depending upon the economic conditions, Government policies and other incidental factors.

		For and on behalf of the Board of Director
		For FCS Software Solutions Limited
	Sd/-	Sd/-
	Ravinder Sachdeva	Dalip Kumar
	DIN: 10280805	DIN: 00103292
	Whole Time Director	Chairman & Managing Director
Date: 22.07.2025
Place: Noida