iSERA Lifesciences Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company operates primarily in the Information Technology and Information Technology Enabled Services (IT/ITES) sector, with business activities encompassing software designing, development, customization, implementation, testing, maintenance and related technology solutions. The Companys business objectives also cover web-based applications, data processing, back-office processing, accounting and payroll processing, data warehousing, database management, consultancy, outsourcing, staffing and other technology-enabled services.

The IT and ITES industry continues to evolve rapidly, driven by increasing digitalisation, adoption of cloud-based technologies, automation, artificial intelligence, data analytics, cybersecurity and the growing need for technology-enabled business solutions. Businesses across various sectors are increasingly adopting digital platforms and outsourcing non-core activities, creating opportunities for software development, application support, data processing and other IT-enabled services.

The industry, however, remains highly competitive and technology-driven, requiring continuous adaptation to changing technologies, customer requirements and cybersecurity standards. During the year under review, the Company continued to evaluate business opportunities within the scope of its objects and remained focused on strengthening its business operations, identifying commercially viable opportunities and improving operational efficiency. The Company continues to remain committed to prudent financial management and compliance with applicable statutory and regulatory requirements.

OPPORTUNITIES AND THREATS

The Company believes that the continued growth of digitalisation and increasing dependence on technology-enabled business processes provide significant opportunities for expansion in the IT and ITES sector. Increasing demand for software solutions, web-based applications, data processing, back-office support, accounting and payroll processing, database management and technology consultancy is expected to create opportunities for companies offering cost-effective and customised technology services.

The growing adoption of digital transformation across industries, increasing outsourcing of non-core functions, demand for technology-enabled business solutions and emergence of new digital technologies may provide further opportunities for the Company to expand its operations and develop new business relationships.

At the same time, the Company remains conscious of various challenges, including intense competition, rapid technological changes, shortage and retention of skilled manpower, cybersecurity threats, data privacy requirements, changing customer expectations, pricing pressures and changes in applicable laws and regulations. The Company also recognises that economic uncertainties and changes in domestic and global business conditions may affect demand for technology services.

The Management continues to monitor these developments and intends to adopt appropriate business strategies to address emerging challenges and capitalise on commercially viable opportunities.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Companys principal business activities are related to software development and IT-enabled services, in accordance with the objects contained in its Memorandum of Association.

During the year under review, the Company continued to evaluate opportunities relating to software designing, development, customization, implementation, maintenance and testing, along with web-based applications, data processing, back-office support and other technology-enabled services. The Company also continues to assess opportunities in IT consultancy, outsourcing, data management and related support services.

1 The Companys diversified range of technology-related activities provides flexibility to pursue opportunities across different areas of the IT and ITES industry depending upon market conditions, customer requirements and commercial viability. The Management remains focused on developing sustainable business opportunities while ensuring efficient utilisation of available resources.

OUTLOOK

The Management remains cautiously optimistic about the long-term prospects of the Company and the IT and ITES sector. Rapid digital transformation, increasing adoption of technology across businesses, growth in cloudbased applications, data-driven decision-making, automation and outsourcing of business processes are expected to continue creating opportunities for technology service providers.

The Company intends to explore and develop commercially viable opportunities in software development, IT solutions, data processing, web-based applications, IT-enabled services and related consultancy and outsourcing activities. The Management will continue to focus on developing appropriate business relationships, improving operational efficiency, strengthening service capabilities and ensuring optimum utilisation of available resources.

The Company will continue to adopt a prudent and measured approach towards expansion, taking into consideration market conditions, financial resources, technological developments and associated business risks. The Management believes that the increasing importance of technology in business operations provides a favourable platform for the Company to pursue sustainable growth over the medium to long term.

RISKS AND CONCERNS

Every business is exposed to various internal and external risks, and the Company recognises the importance of identifying, assessing and managing such risks effectively. The principal risks associated with the Companys business include intense competition in the IT and ITES industry, rapid technological changes, cybersecurity and data protection risks, availability and retention of skilled professionals, changing customer requirements, pricing pressures, project execution risks and dependence on overall economic and business conditions.

The Company may also be exposed to regulatory and compliance risks arising from changes in applicable laws, taxation requirements, information technology regulations, data protection requirements and other statutory provisions. Further, disruption to technology infrastructure or information systems may adversely affect business operations.

The Management continues to monitor these risks on an ongoing basis and undertakes appropriate measures, wherever considered necessary, to mitigate their potential impact. The Company seeks to manage business risks through prudent financial management, continuous monitoring of operations, appropriate internal controls, diversification of business opportunities and periodic review by the Management and the Board.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an internal control framework commensurate with the size, scale and nature of its business operations. The internal control systems are designed to safeguard the Companys assets, ensure the accuracy and completeness of accounting records, promote reliability of financial reporting, ensure compliance with applicable laws and regulations, and support efficient utilisation of resources.

The Company maintains appropriate controls over its financial and operational activities, including authorisation of transactions, accounting and reporting processes, monitoring of receivables and payables, safeguarding of assets and compliance requirements. The Management periodically reviews the effectiveness of the internal control framework and takes corrective measures wherever considered necessary.

The Audit Committee and the Board of Directors review the adequacy and effectiveness of internal financial controls in accordance with applicable provisions of the Companies Act, 2013 and SEBI regulations. Based on the review undertaken, the Management believes that the Companys internal control systems are adequate and commensurate with the nature and scale of its operations.

During the financial year under review, the Company continued its efforts towards strengthening its business operations and exploring opportunities in the IT and ITES sector. The operational and financial performance of the Company was influenced by the level of business activity, prevailing market conditions, operating expenses, availability of business opportunities and the Companys ongoing efforts towards revival and development of its operations.

The Management remained focused on prudent cost management, efficient utilisation of available resources and identifying sustainable business opportunities. Efforts were also directed towards improving operational efficiency and strengthening the Companys business prospects following the implementation of the approved resolution framework.

The financial performance of the Company should be read in conjunction with the Audited Financial Statements and the Notes forming part thereof. A detailed analysis of the Companys revenue, expenditure, profitability, assets, liabilities and cash flows is provided in the financial statements forming part of this Annual Report.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company recognises that human resources are an important factor in the successful development of its technology and service-oriented business. The Company seeks to utilise appropriate human resources based on the requirements of its business operations and remains focused on maintaining a professional and productive working environment.

The Company encourages skill development, professional competence, ethical conduct and effective utilisation of human resources. As the Company continues to explore and develop its business operations, appropriate emphasis will be placed on acquiring and retaining competent personnel with relevant technical and professional skills.

The Management remains committed to maintaining a healthy and professional work environment and fostering a culture of accountability, teamwork and continuous improvement. Industrial relations remained cordial during the year under review.

KEY FINANCIAL RATIOS

In accordance with the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013, the Company has disclosed the applicable key financial ratios and relevant details in the Notes forming part of the Financial Statements.

The key financial ratios provide an indication of the Companys profitability, liquidity, financial position and capital structure. Wherever there has been a significant change in any ratio as compared to the previous financial year, the reasons for such change have been appropriately explained in the Financial Statements, wherever applicable.

The Management continues to monitor these financial parameters as part of its overall financial and operational review and remains focused on maintaining financial discipline and improving the Companys financial position.

CAUTIONARY STATEMENT

Statements contained in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates, projections, business outlook or future prospects may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Such statements are based on certain assumptions and expectations concerning future events and business conditions.

For iSERA Lifesciences Limited (Formerly known as Covidh Technologies Limited)

Jayshree Suresh Jain Managing Director

DIN: 10017258

Date: 01/09/2026

Place: Pune