HCL Infosystems Ltd Management Discussions

Focus on the reduction of outstanding debt and losses

During FY 25, the Company continued to take measures to recover outstanding dues from the customers including pursuing legal proceedings and closing of few ongoing projects to facilitate the collection of past receivables.

Businesses Performance & Highlights

In FY 25, we have reported revenue from continuing operations of Rs. 2,461.27 Lakhs while in FY 24 our revenue was Rs. 3,217.34 Lakhs.

During the year, two of our power projects were operationally concluded and handed over to the customers. However, due to pending claims and unresolved commercial matters for both the projects, we are currently under arbitration.

Though the business was able to realise Rs. 3,428.59 Lakhs from various customers, our IT support services continued to face delays in certain customers acceptance and sign- offs on project completion resulting in delays in recovering receivables.

Due to multiple legal proceedings and legacy issues, significant effort and cost are being incurred on compliance, legal and legacy matters. Consequently, the Company continues to incur higher expenses towards legal cost, which amounted to Rs. 2,194.65 Lakhs in FY 25, along with other operational costs including manpower expenses, thereby contributing to the operational losses reflected in the financials.

During the year, favorable arbitration awards (including interest) amounting to Rs. 16,386 lakhs (approx.) were received against three customers. The counter claims worth Rs. 27,735 lakhs filed by the customers against the Company have also been disallowed by the arbitrators. While these customers have right to appeal, two of them have chosen to contest the awards and one customer waived its right to appeal and remitted the full amount of Rs. 418.18 lakhs during the year. The Company remains actively engaged in pursuing recoveries through appropriate legal channels to protect its financial interests.

Other Updates

During the FY 25, the Company has sold one property for a total consideration of Rs. 635 Lakhs.

The Group has continuously made losses during past years and its net worth has been fully eroded. Further the Group has incurred a net loss of Rs. 2,110.92 lakhs, during the year ended March 31, 2025 (year ended March 31, 2024: net loss Rs. 1,587.36 lakhs) and the Groups current liabilities exceeded its current assets by Rs. 48,174.86 lakhs (March 31, 2024: Rs. 51,748.49 lakhs) as at March 31, 2025. The losses are primarily a result of delayed receipts on certain system integration contracts, historical low margin contracts, large litigations and their costs which are at different stages of progression.

The Group had originally entered into multiple long term contracts forming part of Hardware Solutions Business which was transferred to HCL Infotech Limited through Scheme of Arrangement with the remaining term of ongoing contract upto year 2031. Therefore, there is a constructive obligation for the Group to provide operational and financial support to HCL Infotech Limited for execution of its contracts. Further, such transferred business has continued to face challenges in obtaining timely customer acceptance and sign-offs for completed projects, leading to delays in receiving payments. As a result, though the number of contracts reaching closure has increased, there is no significant progress in recovering outstanding receivables from customers. To address this issue, the Group has initiated arbitration proceedings against several customers to recover the dues owed. Accordingly, the management will ensure continuity of operations to support execution of long terms contracts originally assigned to the Group and recovery of dues owned by HCL Infotech Limited that are held up for a long time.

To ensure the necessary financial support for above operations, the board of directors of HCL Corporation Private Limited (a significant promoter shareholder) has approved support in the form of corporate guarantees to banks of Rs. 39,600 lakhs [utilised Rs. 5,705 lakhs (2024 - Rs. 305 lakhs)] and interest free unsecured loans of Rs. 35,500 lakhs [utilised Rs. 35,500 lakhs (2024 - Rs. 35,500 lakhs)] to HCL Infosystems Limited out of total authorized limit of Rs. 1,50,000 lakhs. This had been approved by the shareholders of the Group, vide their resolution dated September 14, 2017. Considering the above support, the management and the Board of Directors have a reasonable expectation that the Group will be able to realise its assets and discharge its contractual obligations including long term contracts transferred to HCL Infotech Limited and liabilities as they fall due in the near future in the normal course of business. Accordingly, these consolidated financial results have been prepared on a going concern basis.

As mentioned several times in our communication including the news releases, the Company cannot invest in any new businesses or in expanding its current operations and consequently, the business of the Company will continue to contract for the foreseeable future.

During the year, the members of the Company in their Annual General Meeting held on 18th September 2024, reappointed Mr. Pawan Kumar Danwar as Non-Independent and Non-Executive Director, liable to retire by rotation.

Subsequently, Ms. Ritu Arora has ceased to be an Independent and Non-Executive Director with effect from 5th April 2025 upon completion of her second tenure. To fill the resulting vacancy and ensure compliance with the minimum board composition requirements, the board of directors, at their meeting held on 7th February 2025, appointed Ms. Rita Gupta as an Additional NonIndependent and Non-Executive Director, liable to retire by rotation.

Nurture Technologies FZE (the entity), a foreign step-down subsidiary of HCL Infotech Limited, was registered in Dubai Airport Free Zone, Dubai as on 31st July 2004 as a Freezone Company. It was primarily engaged in the activities of developing/ trading of software & hardware systems and IT Solutions. During the year, we approached the Competent Authorities to wind up the entity as there was no business. Accordingly, the entity Nurture Technologies FZE was wound up and stands dissolved as on 3rd April 2025.

Furthermore, until 31 March 2024, the Company reported three segments: Hardware Products and Solutions, Distribution, and Learning. However, the business is now reviewed as a single segment?IT support services?and hence, no separate disclosures are required under Ind AS 108.

Business Risks & Mitigation Measures

The performance of our businesses can get affected by various risks posed by the external environment. Your Company continuously revisits the Enterprise Risk Management (ERM) framework and strengthens it to address various risks to our businesses. The risk management programme (ERM) involves risk identification, assessment and risk mitigation planning for strategic, operational and compliance-related risks across business units and functions. Periodic monitoring of risk is done and based on the overall risk performance mitigation action is refined and re-planned. The following table provides a glimpse of some key risks and their mitigation measures which the Company tracks regularly at an overall level (in addition to individual business risks tracked at the individual business level):

Sl. No.	Category	Risk Item	Risk Description	Risk Management Strategy/Update
01	Litigation	Sustainability	• Non-cooperation of client in project sign off and payments.	• Parties agreed on an exit plan, whereby HCL has exited / handed over the project on 31 March 2025.
			• Visibility on collections before arbitral award is low as settlement with Discoms is difficult.	• The subject under arbitration has shown positive results in terms of movement in some collections towards implementation activities as well as progress of the case.
			• Retention of key resources till the closure of the arbitration.
02	Litigation	Operational	• Disputed billed receivables due to Project deliverable issues.	• Strategic handling of cases based on established judicial precedents.
				• Provisions are made on case-to-case basis based on management assessment of the legal cases.
03	Operational	Sustainability	• Challenges in meeting service delivery commitments.	• Engage with customers to upgrade key components as a change request for contracts with long term support.
			• Probability of failure to comply with contractual commitments and related cost in long-term support contracts, due to rapid technological advancements compared to when the contract was started.	• Closely monitor SLA compliance and SLA management with customers.
			• Uncapped SLA based penalties.
04	Financial	Continuity	• Continuity challenges in “Going Concern” status.	• The Company continues to derive some revenue from Enterprise Distribution - Annual Maintenance Contract (AMC) & balance System Integration Projects.
			• Groups net worth has been fully eroded.	• Promoters have been supporting the Company from time to time by extending loans and corporate guarantees.
05	Operational	Financial	Delay in getting the Income Tax refund.	• Subject is under litigation and likely to take time.
06	Financial	Treasury	Commitments towards Continuation of bank guarantee the Company has issued to various clients.	• Support from promoter Company to continue the limits from the banks.
07	Operational	Human Capital	Loss of Human capital in critical operations	• Management is continuously exploring alternative source for resources including outsourcing to address the attrition.
				• Retention plans in place for identified critical resources.
08	Operational	Compliances	Legacy litigations in labour cases in HR practices.	• Company is contesting these cases.
09	Operational	Compliances	Risk of compliance gaps due to operational scale down, resultant organizational structural changes and attrition of resources.	• Periodical review of processes and alignment with organizational structure and compliance requirements.
				• Risk assessment before delegating the authority.
				• The financial authorities delegated are capped, within the framework of Board approved delegation.
				• Stringent exception approval process and close monitoring of adherence to Delegation of authority and segregation of duty.
10	Operational	Compliances	Code of conduct (COC) & ethical issues	• Independent Whistle Blower Mechanism
				• Strict actions on violations
				• Continuous emphasis on Companys Code of conduct policy
				• Annual / Quarterly certification on compliance
				• Periodic Internal Audit • Quarterly Statutory Audit
11	Operational	Compliances	Risk of shared services agency opting out and continuity issues in finance & accounting process.	• Retention of key resources as part of HCLs Governance team.
12	Outsourcing risks	Compliances	Governance in Finance, Accounts and IT function can get complicated with multiple outsourced vendors (activity/ manpower) dependency	• Documented SOPs
				• Retention of key resources
				• Close supervision
				• Concurrent Audits & Internal Audits
				• Statutory Audits
13	Operational risks	Financial	Legacy data is available in older version of IT application and requires specialized skills for extracting data (skill set issue due to organization downsizing).	• Data retention requirements for the legacy period are regularly reviewed.
				• Alternative methods for data availability shall be reviewed considering the data retention requirements of the older applications.
				• ERP financial systems Pre-2010 retired.
14	Indirect tax	Compliances	Authorities claim cannot be foreseen without any time-limit.	• The relevant data/documents are generally available in Accounts / IDT repository as well as ERP system.
				• Document retention policies in the Company aligned with the statutory requirements and for Open transactions (legally or otherwise).
				• Required documents are statutorily maintained as per retention policies.
				• Wherever required, suitable follow ups with the parties for necessary documentation / confirmation.
15	Indirect tax	Compliances	• Actual liability could be more due to unsuccessful trials.	• The Company is opting amnesty schemes under various laws, wherever applicable and beneficial.
			• Insufficient funds to meet unsuccessful Litigations	• Necessary provisions have been made for balance/open high-risk cases in books of account on the basis of Indirect Tax assessment and also corresponding amount deposited with tax authorities to save the interest. Provisions available are adequate
				• High value litigation matters were opined in the Companys favor by expert advocates.
				• Examination with the expert consultants and implementation of necessary steps to mitigate the liability, if any, on case-to-case basis.

Internal Control Systems and their adequacy

The Company has put in place controls commensurate with the size and nature of its operations. These have been designed to provide reasonable assurance with regards to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with proper authorization and ensuring compliance with corporate policies.

The Company has an internal audit function designed to review the adequacy of internal control checks in the system which, covers all significant areas of the Companys operations such as accounting and finance, procurement, business operations, statutory compliances, IT processes, safeguarding of assets and their protection against unauthorized use, among others. The internal audit function performs concurrent audits on high value transactions. The internal audit function also performs the internal audit of the Companys activities based on the internal audit plan, using external independent audit agencies, which is reviewed each year and approved by the board and Audit Committee. The Audit Committee reviews the reports submitted by internal auditors. Suggestions for improvements are considered and the Audit Committee follows up on corrective action. Disciplinary action is taken, wherever required, for non-compliance with corporate policies and controls.

Human Resource Development

As of March 31, 2025, the employee strength of the Company and its subsidiaries stood at 145, while on March 31, 2024, it was 176. Besides full-time employees, the Company also engaged with over 30 associates for various short-term projects across different timelines during the year.

Disclaimer

Certain statements made in this report relating to the Companys objectives, projections, outlook, estimates, etc. may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such estimates or projections etc., whether expressed or implied. Several factors including but not limited to economic conditions affecting demand and supply, government regulations and taxation, input prices, exchange rate fluctuation, etc., over, which the Company does not have any direct control, could make a significant difference to the Company operations. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on any forwardlooking statements. The Management Discussion and Analysis (MD&A) should be read in conjunction with the Companys financial statements included herein and the notes thereto. Information provided in this MD&A pertains to HCL Infosystems Limited and its subsidiaries on a consolidated basis unless otherwise stated.

FINANCIAL COMMENTS ON CONSOLIDATED OPERATIONS FOR THE YEAR ENDED MARCH 31, 2025.

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

The Management Discussion and Analysis on Financial performance relates to Consolidated Financial statements of the Company and its subsidiaries. This should be read in conjunction with the financial statements and related notes to the consolidated accounts for the year ended March 31, 2025.

RESULTS OF OPERATIONS

Rs. in Lakhs

Particulars	FY 25	FY 24
Revenue	2,461.27	3,217.34
Cost of sales	(688.67)	(1,304.46)
Gross margin from continuing operations	1,772.60	1,912.88
Employee benefits expense	(2,097.49)	(2,003.42)
Administration, selling and others	(4,790.65)	(5,494.24)
Depreciation and amortization expense	(47.45)	(53.92)
Gain on foreign exchange fluctuation	4.12	15.64
Provisions/liabilities no longer required written back	1,005.68	1,197.46
Operating Profit/(loss) from continuing operations before doubtful debts provision	(4,153.19)	(4,425.60)
Provision for doubtful debts and other current assets	(61.15)	(83.86)
Investment & other Income	1,536.79	1,768.85
Finance costs	(17.25)	(37.35)
Profit/(loss) before exceptional items and tax from continuing operations	(2,694.80)	(2,777.96)
Exceptional Items gain/ (loss)	583.88	1,196.36
Tax expense	-	(5.76)
Profit/(loss) after tax from continuing operations	(2,110.92)	(1,587.36)
Other comprehensive income/(loss)	(54.89)	4.91
Total comprehensive income/(loss) for the year	(2,165.81)	(1,582.45)

Revenue

Consolidated Revenue was Rs. 2,461.27 Lakhs in FY 25 as against Rs. 3,217.34 Lakhs in FY 24. The decline in Revenue is mainly in IT support services on account of certain power projects hand over to customers.

Gross Margin

Gross Margin was Rs. 1,772.60 Lakhs in FY 25 as against Rs. 1,912.88 Lakhs in FY 24.

Employee Benefits Expense

Employee Benefits Expense was Rs. 2,097.49 Lakhs in FY 25 as against Rs. 2,003.42 Lakhs in FY 24.

Administration, Selling and Other Expenses

Administration, Selling & other expenses were Rs. 4,790.65 Lakhs in FY 25 as against Rs. 5,494.24 Lakhs in FY 24. The details of administration, selling & other expenses is as follows:

Rs. in Lakhs

Particulars	FY 25	FY 24
Legal, Professional and Consultancy Charges*	2,732.66	2,998.02
Technology Cost	223.48	266.92
Outsourcing cost	119.86	130.83
Rates and Taxes**	100.62	330.97
Retainership Expenses	617.73	680.32
Bank Charges	46.48	118.97
Rent	69.74	67.97
Travelling and Conveyance	72.26	85.19
Office Electricity and Water	6.23	34.64
Provision for Input Tax Credit***	525.99	384.82
Others	275.60	395.59
Total	4,790.65	5,494.24

* We are continuing to pursue legal remedies by invoking arbitration proceedings to recover outstanding dues from customers. As a result, legal, professional, and consultancy expenses remain high, amounting to Rs. 2,194.65 Lakhs in FY 25. These expenses reflect the ongoing nature of legal action, consistent with the elevated levels seen in prior years ( 2,360.91 Lakhs in FY 24).

**During the FY 24, the Company opted for certain amnesty schemes offered by Indirect Tax department resulting in net higher cost of Rs. 177.97 Lakhs.

*** The unutilised /accumulated GST ITC has been provided for in books of accounts (FY 25- Rs. 525.99 Lakhs and FY 24 384.82 Lakhs) to the extent Company does not foresee business opportunities in near future wherein amount can be utilised and against amount outstanding for those particular locations where GST registration has been surrendered.

Depreciation

Depreciation was Rs. 47.45 Lakhs in FY 25 as against Rs. 53.92 Lakhs in FY 24.

Provisions/Liabilities no longer required written back

Provisions/Liabilities no longer required written back were Rs. 1,005.68 Lakhs in FY 25 as against Rs. 1,197.46 Lakhs in FY 24.

Operating Profit/ (Loss) from continuing operations before Doubtful Debts provision

Operating Profit/ (Loss) from continuing operations before Doubtful Debts provision was Rs. (4,153.19) Lakhs in FY 25 as against Rs. (4,425.60) Lakhs in FY 24. Operating loss is lower in FY 25 as compared to FY 24 mainly on account of lower legal, professional & consultancy charges by Rs. 265.36 Lakhs.

Provision for Doubtful Debts and Other Current Assets

Provisions for doubtful debts and other current assets were Rs. 61.15 Lakhs in FY 25 as against Rs. 83.86 Lakhs in FY 24. Provision for doubtful debts and other current assets are created due to inordinate delays with certain customer acceptances and payments thereof.

Investment & Other Income

Investment & other income was Rs. 1,536.79 Lakhs in FY 25 as against Rs. 1,768.85 Lakhs in FY 24.

Investment and other income during current year was lower mainly on account of interest income on lower average bank deposits as compared to last year.

Finance Costs

Finance costs was Rs. 17.25 Lakhs in FY 25 as against Rs. 37.35 Lakhs in FY 24.

Exceptional Items

Gain from Exceptional items was Rs. 583.88 Lakhs in FY 25 as against Rs. 1,196.36 Lakhs in FY 24 (net gain on sale of properties)

Profit/ (Loss) after Tax from continuing operations

Profit/ (Loss) after Tax from continuing operations was Rs. (2,110.92) Lakhs in FY 25 as against Rs. (1,587.36) Lakhs in FY 24. FY 25 loss is higher primarily due to:

• Higher GST ITC provision Rs. 141.17 Lakhs (FY 25: Rs. 525.99 Lakhs; FY 24: Rs. 384.82 Lakhs),

• Lower Exceptional gain (Profit on sale of properties) Rs. 612.48 Lakhs (FY 25: Rs. 583.88 Lakhs; FY 24: Rs. 1,196.36 Lakhs), and

• Lower investment & other income Rs. 232.06 Lakhs (FY 25: Rs. 1,536.79 Lakhs; FY 24: Rs. 1,768.85 Lakhs) partially offset by:

• Lower legal, professional and consultancy charges Rs. 265.36 Lakhs (FY 25: Rs. 2732.66 Lakhs; FY 24: 2,998.02 Lakhs), and

• Lower rates and taxes Rs. 230.35 Lakhs (FY 25: Rs. 100.62 Lakhs; FY 24: Rs. 330.97 Lakhs).

FINANCIAL CONDITION

Rs. in Lakhs

Particulars	March 31, 2025	March 31, 2024
ASSETS
Non-current assets	19,238.75	25,035.05
Current assets	24,071.82	20,525.19
Assets held for sale	10.00	10.00
Total Assets	43,320.57	45,570.24
EQUITY AND LIABILITIES
Net worth	(29,097.76)	(26,931.95)
Non-current liabilities	161.65	218.51
Current liabilities	72,256.68	72,283.68
Total Liabilities	43,320.57	45,570.24

Non-Current Assets

Non-current assets were Rs. 19,238.75 Lakhs as at March 31, 2025 as compared to Rs. 25,035.05 Lakhs as at March 31, 2024.The details are as follows:

Financial assets were lower in FY 25, primarily due to a decrease in bank deposits of Rs. 5,493.57 Lakhs, arising from the reclassification of deposit from non-current assets to current assets. This decline was partially offset by an increase of Rs. 360.81 Lakhs in margin money held with banks.

*Other includes intangible assets, prepaid expenses etc.

Current Assets

Current assets were Rs. 24,071.82 Lakhs as at March 31, 2025 as compared to Rs. 20,525.19 Lakhs as at March 31, 2024. The details are as follows:

• Inventories were Rs. 29.43 Lakhs as at March 31, 2025 as compared to Rs. 37.08 Lakhs as at March 31, 2024.

• Financial Assets were Rs. 21,781.57 Lakhs as at March 31,2025 as compared to Rs. 17,693.61 Lakhs as at March 31, 2024. The details are as follows:

*In an Appeal under the Arbitration & Conciliation Act filed by MTNL (in CWG Project), an adhoc amount of Rs. 12,020.64 Lakhs (net of TDS Rs. 321.09 Lakhs) had been released by the Honble High Court of Delhi to HCL Infotech Limited against a bank guarantee which is included in bank balances. Additionally, during the FY 25, a part payment of an interim arbitration award amounting to Rs. 1,330.52 Lakhs (including interest) was received from a customer against an equivalent bank guarantee.

**Bank balances have gone up as there is increase in bank deposits (refer note given above under the head NonCurrent Assets.

• Other Current Assets were Rs. 2,260.82 Lakhs as at March 31, 2025 as compared to Rs. 2,794.50 Lakhs as at March 31, 2024.

Net Worth

The Net-worth of the Company was Rs. (29,097.76) Lakhs as at March 31, 2025 as against Rs. (26,931.95) Lakhs as at March 31, 2024.

Non-Current Liabilities

Non-current liabilities were Rs. 161.65 Lakhs as at March 31, 2025 as compared to Rs. 218.51 Lakhs as at March 31, 2024.

Net Borrowings

Net borrowings were Rs. 14,863.59 Lakhs as at March 31, 2025 as compared to Rs. 14,016.97 Lakhs as at March 31, 2024.

Rs. in Lakhs

Particulars	March 31, 2025	March 31, 2024
Borrowings	35,500.00	35,500.00
Less : Cash, Bank & Investments	20,636.41	21,483.03
Net Borrowings	14,863.59	14,016.97

Current Liabilities

Current liabilities were Rs. 72,256.68 Lakhs as at March 31, 2025 as compared to Rs. 72,283.68 Lakhs as at March 31,2024.The details are as follows:

* Financial Liabilities (iii) Other Financial Liabilities

Includes Employee benefits payable, Deposits, etc.

** Other Current Liabilities includes amount received on account of various interim arbitration awards (refer note given above under head current assets), deferred revenue, advances received from customers and statutory dues payable.

CASH FLOW STATEMENT

A summary of cash statement is given below:

(Rs. in Lakhs)

Particulars	FY 25	FY 24
Opening balance of cash and cash equivalents	1,407.34	1,974.54
Net cash flow from operating activities	(2,820.50)	(3,617.90)
Net cash flow from investing activities	2,289.61	3,077.94
Net cash flow from financing activities	(17.25)	(37.34)
Effect of foreign exchange on cash and cash equivalents	11.63	10.10
Cash and cash equivalents at the end of the year	870.83	1,407.34

Cash flow from operations

In FY 25, the Company used Rs. 2,820.50 Lakhs for operations as against Rs. 3,617.90 Lakhs in FY 24.

	(Rs. in Lakhs)
Particulars	FY 25	FY 24
Operating profit/ (loss) before changes in operating assets and liabilities	(4,388.26)	(4,990.84)
Changes in operating assets and liabilities	809.59	426.27
Cash generated/(used) from operations	(3,578.67)	(4,564.57)
Net Tax Refund/(Paid including interest)	758.17	946.67
Net cash generated/(used) in operating activities	(2,820.50)	(3,617.90)

Cash flow from investing activities

In FY 25, the Company generated Rs. 2,289.61 Lakhs from investing activities as against Rs. 3,077.94 Lakhs in FY 24.

(Rs. in Lakhs)

Particulars	FY 25	FY 24
Cash generated from investing activities
Proceeds from sale of current investments	13,242.90	17,815.32
Interest income	846.62	1,291.48
Redemption of Bank deposits	1,453.63	-
Proceeds from sale of properties, plant and equipment	635.03	0.61
Movement in margin money account	166.25	118.38
Total Cash generated from investing activities (A)	16,344.43	19,225.79
Cash used in investing activities
Investment in Mutual Funds	(14,024.30)	(15,799.21)
Purchase of property, plant and equipment (including intangible assets)	(21.38)	(18.99)
Investment in Capital work in progress	(9.14)	-
Investment in Bank Deposits	-	(329.65)
Total Cash used in investing activities (B)	(14,054.82)	(16,147.85)
Cash flow from investing activities (A+B)	2,289.61	3,077.94

Cash flow from financing activities

In FY 25, the Company used Rs. 17.25 Lakhs for financing activities as against Rs. 37.34 Lakhs in FY 24.

Segment Reporting

The Company had reported three segments till year ended 31 March 2024 - Hardware Products and Solutions, Distribution and Learning. However, the business is now reviewed as a single segment?IT support services?and hence, no separate disclosures are required under Ind AS 108.

KEY FINANCIAL RATIOS:

Particulars	FY 25	FY 24
Debtors Turnover (Days)	246.30	209.74
Inventory Turnover (Days)	4.36	4.21
Current Ratio (times)	0.33	0.28
Operating Profit Margin (%)	-168.74%	-137.55%
Net Profit Margin (%)	-85.77%	-49.34%

• Debtors Turnover days were at 246.30 as at March 31, 2025 as against 209.74 as at March 31, 2024 due to lower Revenue in FY 25.

• Inventory Turnover days were 4.36 as at March 31,2025 as against 4.21 as at March 31, 2024 due to lower Revenue in FY 25.

• Debt Equity Ratio was negative as at March 31, 2025 and March 31, 2024 due to negative Net-worth.

• Operating Profit Margin was at (168.74%) as at March 31, 2025 as against (137.55%) as at March 31, 2024. (refer note given above under head operating profit/ (Loss) from continuing operations) before doubtful Debts provision).

• Interest coverage was negative on account of negative EBIT in FY 25 & FY 24.

• Net Profit Margin was (85.77%) for FY 25 as against (49.34%) for FY 24. (Refer note given above under head Profit/ (Loss) after Tax from continuing operations.