I Power Solutions India Ltd Management Discussions

CIN L72200TN2001PLC047456

This Management Discussion and Analysis Report presents a detailed overview of the operational and financial performance of the Company for the financial year 2024-25, along with the industry outlook, opportunities, risks, and internal controls, in accordance with the provisions of the Companies Act, 2013 and Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

I Power Solutions India Limited, the leading e-commerce and web related service provider

has reported results for the year ended 31.03.2025.

The Company focuses its training business and proposes to develop its own brand name. INDUSTRY STRUCTURE AND DEVELOPMENTS

The global digital economy continues to witness rapid transformation driven by increasing internet penetration, widespread adoption of cloud-based technologies, and growing demand for digital services across sectors. The web services industry has emerged as a critical enabler for businesses by providing scalable, cost-effective, and innovative solutions that enhance operational efficiency, customer engagement, and business continuity.

In India, the industry has gained strong momentum with the governments emphasis on Digital India initiatives, accelerated adoption of e-commerce, fintech, and online education platforms, and the shift of enterprises towards digital-first business models. The increasing reliance on remote working, cloud hosting, cybersecurity, and data analytics

has further created demand for specialized web service providers.

REVIEW OF OPERATIONS:

During the year under review, the Company reported a net loss of Rs. (62.03) Lakhs as against a net loss of Rs. (15.86) Lakhs in the previous financial year. The increase in losses is primarily attributable to the absence of revenue from operations during the year, coupled with change in value of investment and administrative overheads that continued to be incurred in the normal course of business.

There were no significant changes in the nature of operations of the Company during the year. The business structure and activities remained consistent with the previous financial year. However, due to prevailing market conditions and other external challenges, the Company was unable to generate operating revenue. The management continues to evaluate opportunities for improving business prospects, cost rationalisation, and exploring new avenues for revenue generation in the forthcoming periods.

OUTLOOK FOR THE NEXT YEAR:

RISKS AND CONCERNS:

The Company continues to face risks primarily arising from the absence of revenue from operations and the resulting strain on financial performance. Sustained operating losses, if not addressed, may impact the Companys ability to allocate adequate resources for future growth and expansion.

In addition, external factors such as economic slowdown, regulatory changes, and market uncertainties pose challenges that could affect the Companys ability to pursue new opportunities. The limited scale of operations further heightens the sensitivity of the business to fluctuations in costs and any unforeseen contingencies.

While these risks remain significant, the Board and Management are closely monitoring the situation and evaluating measures to mitigate the impact. Efforts are being directed towards maintaining financial discipline, controlling overheads, and exploring alternative business avenues to reduce dependency on any single source of income.

RISKS MITIGATION:

The Company recognises the risks associated with the absence of operating revenue, rising losses, and external business uncertainties. In order to mitigate these risks, the Management has adopted a cautious and structured approach.

Key steps include:

• Cost Rationalisation: Continuous monitoring of administrative and overhead expenses to ensure prudent utilisation of resources.

• Strategic Evaluation: Assessing feasible business opportunities that align with the Companys existing strengths and resources, while avoiding overexposure to high- risk ventures.

• Financial Discipline: Maintaining strict internal controls and effective cash flow management to preserve liquidity.

• Compliance and Governance: Ensuring adherence to statutory requirements and strengthening governance practices to safeguard stakeholder interests.

OPPORTUNITIES AND THREATS:

The near-term outlook for the Company continues to remain challenging in view of the absence of operating revenues and the sustained impact of fixed costs. While the business model and nature of operations remain unchanged, the Company is focusing on identifying opportunities that could support gradual improvement in performance.

Management is taking a cautious approach towards expansion and new initiatives, keeping in mind the prevailing market uncertainties. Efforts will be directed towards strengthening internal processes, improving cost efficiencies, and exploring feasible business opportunities that align with the Companys resources and long-term objectives.

The Company continues to explore opportunities in its line of business with a focus on identifying areas where existing resources and capabilities can be effectively utilised. Potential opportunities may arise through diversification into allied activities, strategic collaborations, or by tapping emerging market segments that require limited capital outlay. Management is also evaluating possibilities of leveraging technology and process improvements to strengthen efficiency and reduce costs.

At the same time, the Company faces significant threats owing to the absence of operational revenue and the ongoing accumulation of losses. Market volatility, changes in regulatory requirements, and broader economic uncertainties may further restrict the pace of recovery. Additionally, competition from established players and the limited scale of operations place constraints on the Companys ability to capture larger market share.

INTERNAL CONTROL SYSTEMS:

The Company has in place adequate internal control systems commensurate with its size and nature of operations. These systems are designed to ensure proper utilisation and safeguarding of assets, accuracy and reliability of accounting records, and compliance with applicable laws and regulations. The internal controls are regularly reviewed and strengthened, wherever necessary, to ensure effective and efficient operations..

INDUSTRIAL RELATIONS AND HUMAN RESOURCES MANAGEMENT:

Keeping very good human relationships with the staff and maintaining contacts with the industry.

DEVELOPMENT OF NEW PRODUCTS:

the Management continues to explore possibilities for future product development in line with market demand and the Companys capabilities.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis Report describing the Companys objectives, expectations, projections, or future plans may be “forward-looking statements” within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied, depending on economic conditions, government policies, market dynamics, and other incidental factors beyond the control of the Company.