Logiciel Solutions Ltd Management Discussions

The Management Discussion Analysis ("MDA") is a report containing a review and analysis of Industry Structure and Developments, Opportunities and Threats, Performance of the Company, Internal Control Systems and their Adequacy, Key financial aspects and the Overall Risks and Concerns during the financial year and till date of this report.

(i) Annual Overview and Outlook

During FY 2025-26, the Company continued to strengthen its position in the SaaS (Software as a Service) segment with a primary focus on clients based in the United States market. During the year, the Company also increased its focus on Artificial Intelligence (AI) driven projects and technology integration across its service offerings. Management remains optimistic about the long-term growth prospects of the global SaaS and AI industry.

(ii) Industry Structure and Developments

The global SaaS industry continued to witness strong growth driven by increasing adoption of cloud computing, automation, artificial intelligence and digital transformation initiatives. Businesses across the U.S. market are increasingly adopting AI-powered software solutions to improve operational efficiency, customer engagement and data analytics capabilities. The technology sector also witnessed rising investments in machine learning, generative AI and cybersecurity solutions during the year.

(iii) Opportunities & Threats

The increasing demand for AI-integrated SaaS platforms and automation solutions provides significant growth opportunities for the Company in international markets. Expansion of AI-driven services, customized enterprise applications and recurring subscription models may support future revenue growth. However, rapid technological changes, global competition, cybersecurity risks and evolving regulatory requirements continue to remain major challenges. Availability and retention of skilled AI and software professionals may also impact business operations and scalability.

(iv) Future Outlook

The Company intends to continue strengthening its offerings with increased focus on Artificial Intelligence, automation and advanced technology solutions. Management plans to invest in product innovation, AI capabilities and expansion of technical expertise to cater to evolving customer requirements in the U.S. market. The Company is also focusing on developing scalable and value-driven software solutions to improve customer retention and recurring revenues. Management remains confident about achieving sustainable growth in the coming years.

(v) Risks & Concerns

The Companys business is exposed to risks relating to rapid technological disruptions, cybersecurity threats, changing customer preferences and evolving global regulatory frameworks. Dependence on overseas clients, particularly in the U.S. market, and fluctuations in foreign exchange rates may impact financial performance. Increasing competition in AI and SaaS segments and the rising cost of skilled technology professionals may also affect profitability and growth. The Company continuously monitors potential risks and implements appropriate mitigation measures.

(vi) Internal Control Systems and their Adequacy

The Company has adequate internal control systems commensurate with the size and nature of its SaaS and technology-driven operations. The internal control framework ensures reliability of financial reporting, safeguarding of digital assets, data security and compliance with applicable laws and regulations. The Company has implemented structured controls relating to information technology systems, AI project management and customer data protection. Regular internal audits and management reviews are conducted to strengthen operational and financial controls.

(vii) Financial Performance

During FY 2025-26, the Company recorded satisfactory operational and financial performance supported by improved business activities and efficient cost management. Revenue growth was supported by continued customer demand and execution of ongoing projects. The Company maintained focus on improving margins, cash flows and operational productivity. Management continues to emphasize financial discipline and efficient utilization of resources for sustainable growth.

(viii) Human Resources

Human resources continue to be one of the key strengths of the Company. During the year, the Company focused on hiring skilled professionals and AI experts to strengthen its technology and innovation capabilities. The Company continues to invest in employee training, technical upskilling and leadership development programs to meet evolving industry requirements. Industrial relations remained cordial and harmonious throughout the year.

(ix) Key Financial Ratios

Sr. No. Ratio	Numerator	Denominator	Current Year	Previous Year	%age Variance	Reason for variance (in excess of 25% compared to preceding year)
1 Current Ratio (in times)	Current Assets	Current Liabilities	13.38	6.39	109.55%	Due to increase in current assets, including cash and bank balances arising from the IPO proceeds.
2 Debt-Equity Ratio (in times)	Total Debt	Total Equity	0.00	0.00	-100.00%	Due to decrease in the loan and increase in shareholders fund
3 Debt Service Coverage Ratio (in times)	Profit before tax + Depreciation and amortisation expenses + Interest	Schedule repayments + Interest	258.73	15.09	1614.93%	Due to minimal debt repayments
4 Return on Equity	Net Profit after tax	Average Net	6.00%	30.68%	-80.44%	Due to increase in average net
Ratio (%age)		worth				worth on account of public issue
5 Inventory Turnover Ratio (No. of days)	Sale	Average Invent cay	0.00	0.00	0.00%	NA
6 Trade Receivabl e Turnover Ratio (No. of days)	Revenue from Operations	(Average Trade Receivabl es + Unbilled Revenue) *No. of days in reporting period	1.70	3.00	-43.13%	Due to increase in average trade receivable
7 llllli	Direct Expenses	Average Trade Payables	44.61	3.34	123520 %	Due to negligible trade payables
8 Net Capital Turnover Ratio (in times)	Revenue from Operations	Working Capital	0.70	200	-65.19%	Due to substantial increase in Current Assets on account of IPO
9 Net Profit Ratio (%age)	Net Profit for the year	Total Income	10.36%	24.38%	-57.51%	Due to increase in costs while the revenue remained unchanged
10 Return on Capital Employe	Profit before tax + Interest +Depreciatio n	Sharehol ders Fund +Total	7.32%	31.59%	-76.84%	Due to increase in shareholders fund car account of public issue
11 Return on Investment
Ratio	Numerator	Denominator	Current Year	Previous Year	%age Variance
Return on Investment	Income from Investments	Investments made	1.64%	2.01%	-18.51%

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially due to factors such as changes in global economic conditions, technological developments, foreign exchange fluctuations, regulatory changes, market competition and other incidental factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

Punjab- 141001

Date:31-08-2026

Place:Ludhiana

Date:31-08-2026

Place:Ludhiana