Matrix Geo Solutions Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the financial year ended March 31, 2025, financial year ended March 31, 2024, and for the financial year ended March 31, 2023. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Financial Information" on page 281 of the Draft Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 29 of this Draft Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 20 of this Draft Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Matrix Geo Solutions Limited our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements, and Financial Years 2025, 2024 & 2023 included in this Draft Red Herring Prospectus beginning on page 281 of this Draft Red Herring Prospectus.

BUSINESS OVERVIEW

Our company is primarily engaged in providing comprehensive geospatial and consulting services with a strong focus on Drone-as-a-Service (DaaS) and Geospatial & Remote Sensing Services. Through Drone as a service, we offer high-resolution drone-based aerial surveys for various applications, including mapping, surveillance, and infrastructure inspection. Our services include the creation of detailed orthophotos, 3D models, digital elevation models, and precise topographical maps. Additionally, we offer geo-referenced video solutions for progress monitoring, surveillance, and incident management across various industries.

In addition to drone services, we offer extensive consultancy in geospatial data analysis, where we utilize remote sensing technologies like LiDAR, satellite imagery, and drone surveys to provide clients with actionable insights for their projects. We assist our clients in Railways, Roadways, Water, Irrigation, Renewable Energy, Agriculture, Mining, Urban & Rural Planning projects and provide comprehensive reports to guide business decisions. These reports offer both advisory and end-to-end solutions to meet our clients needs. Further, our web-based platform offers customers real-time access to their project data, simplifying monitoring and decision-making processes.

Further, our company has recently expanded its services to include "Drone Training and Education" and is now a DGCA-authorized Remote Pilot Training Organization (RPTO), offering certified training programs. In accordance with the Drone Rules 2021 released by the Ministry of Civil Aviation, individuals must possess a valid Remote Pilot Certificate from a DGCA-authorized RPTO to legally operate drones in the country.

After due completion of the course, the RPTO generates a Remote Pilot Certificate (RPC) from DGCAs Digital Sky Platform for a particular Class & Category of Drone. The Class & Category of Drones/ Our Fleet of Drones are given on page no. 198 of this Red Herring Prospectus. The RPC is valid for a maximum period of 10 years under the Drone Rules. As on July 31, 2025, our company has trained 81 drone pilots in India for which Remote Pilot Certificate has been issued by our company.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR

As per mutual discussion between the Board of the Company and BRLM, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

The Board of Directors of our Company has approved and passed a resolution on December 27, 2024, to authorize the Board of Directors to raise the funds by way of Initial Public Offering.

The Shareholders of our Company have approved and passed a resolution on January 20, 2025, to authorize the issue by way of Initial Public Offering.

The Shareholders of our company appointed Mr. Rahul Jain as Managing Director w.e.f. June 15, 2024, in the Extra- Ordinary General Meeting.

The shareholders of our Company appointed Mr. Amit Shama, Ms. Meenal Jain and Ms. Harshada Kulkarni as Whole Time Director in the Extra Ordinary General Meeting held on June 15, 2024.

The shareholders of our Company appointed Mr. Atishay Jain, Mr. Dilip Kumar and Mr. Shashank Garg as Independent Directors in the Extra-Ordinary General Meeting held on December 10, 2024.

The board of directors, in its meeting held on January 24, 2025, appointed Mr. Shivam Kumar as Chief Financial Officer of the Company w.e.f. January 24, 2025.

The board of directors, in its meeting held on March 26, 2025, appointed Ms. Kirti Hisaria as Company Secretary & Compliance officer of the Company.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" beginning on page 29 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Companys results of operations and financial performance;

Any variation in schemes launched by Government of India against the drone industry would have an impact on our results of operations and financial condition and cash flows;

Significant developments in Indias economic and fiscal policies;

Failure to adapt to the changing needs of industry and in particular Sector may adversely affect our business and financial condition;

Volatility in the Indian and global capital market;

DISCUSSION ON RESULT OF OPERATION

(Amount in lakhs)

S. No	For the year ended
Particulars	March 31, 2025	% of total income	March 31, 2024	% of total income	March 31, 2023	% of total income
I Revenue from operations	2,209.42	99.56%	1,368.75	99.39%	665.98	98.65%
II Other Income	9.83	0.44%	8.40	0.61%	9.12	1.35%
III Total Income (I+II)	2,219.25	100.00%	1,377.15	100.00%	675.10	100.00%
IV Expenses:
Cost of Good Sold	726.45	32.73%	359.35	26.09%	114.14	16.91%
Change in inventories of stock-in-trade	3.22	0.15%	(3.22)	(0.23)%	-
Employee benefit expense	445.72	20.08%	298.96	21.71%	234.29	34.70%
Financial costs	17.51	0.79%	15.91	1.16%	9.47	1.40%
Depreciation and amortization expense	34.36	1.55%	34.75	2.52%	40.31	5.97%
Other expenses	214.69	9.67%	225.57	16.38%	133.80	19.82%
Total Expenses	1,441.95	64.97%	931.32	67.63%	532.01	78.80%
V Profit before tax (III+ IV)	777.30	35.03%	445.83	32.37%	143.10	21.20%
VI Tax expense:
(I) Current tax	197.23	8.88%	119.84	8.70%	41.48	6.14%
(II) Deferred tax	(5.95)	(0.27)%	(9.00)	(0.65)%	(7.58)	(1.12)%
Total Tax Expenses	191.28	8.62%	110.94	8.05%	33.90	5.02%
VII Restated profit after tax (VII -VIII)	586.02	26.41%	334.99	24.47%	109.20	16.40%
VIII Earning per equity share:
Basic & Diluted (Rs.)	5.65		3.35		1.09
Adjusted after bonus issue	5.65		3.35		1.09

Our Material Accounting Policies

For Material accounting policies please refer Material Accounting Policies", under Chapter titled Financial Statements beginning on page 281 of the Red Herring Prospectus.

Overview of Revenue & Expenditure

The following discussion on results of operations should be read in conjunction with the Restated Financial statements for the period ending on financial year 2024 - 2025, Financial year 2023 2024 and Financial Year 2022-2023. Our revenue and expenses are reported in the following manner:

Revenues

Revenue of operations

Our Companys revenue is primarily generated through following services-based activities across various regions. Services include:

(a) Geospatial & Consultancy Services (b) Sale of Software License

Other Income

Other Income includes Interest Received on FDR, Interest Received on I.T. Refund and Misc Income.

Expenditure

Our total expenditure primarily consists of Expenses

Cost of Goods Sold

Purchase includes outsourcing service, Job work charges and other direct expenses.

Employee benefit expense

The Employee benefit expense Salaries & Wages, Directors Remuneration, Staff Welfare Expenses, Provision for Leave Encashment, Provision for Gratuity.

Finance Cost

Finance cost include Interest to Loan.

Depreciation and Amortization Expenses

Depreciation and Amortization Expenses majorly includes depreciation on Property, Plant & Equipment.

Other Expenses

Other Expenses include major expenses on Professional Charges, Rent Expenses, Tour & Travelling (Expense incurred by field team to execute the project) & Conveyance Expenses, Vehicle Running & Maintenance Expenses, Charges by the Govt. Deptt. / Customers (Deficient Service), etc.

FISCAL YEAR ENDED MARCH 31, 2025, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2024 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

Total Income

Total Income for the Financial Year 31st March 2025, stood at Rs. 2,219.25 Lakhs whereas in Financial Year 31st March 2024 it stood at Rs 1,377.15 Lakhs representing an increase of 61.15%.

Reasons: The reason for increase in total income was due to a major increase in sale of service.

Revenue from operations

Net revenue from operations for the Financial Year 31st March 2025, stood at Rs. 2,209.42 Lakhs whereas in Financial Year 31st March 2024 it stood at Rs. 1,368.75 Lakhs representing an increase of 61.42%.

Reason: This growth was primarily driven by timely project execution, strong private sector demand, favorable industry conditions, and capacity enhancements undertaken during the year.

Increased Revenue from Private Clients.

In FY 2024 25, revenue from private clients stood at Rs.1,503.69 Lakhs, which is about 49% of the total revenue, as compared to Rs. 376.15 Lakhs (25% of total revenue) in FY 2023 24. The increase is largely due to efficient field-related work carried out by the Company, which also supported the award of tenders from government clients since approximately 15 20% of the groundwork had already been executed. Billing milestones with private clients were achieved more smoothly as they were linked to sectional delivery of data, unlike in government projects where billing is generally dependent on 100% completion of delivery. This ensured timely billing and cash flow management with private sector clients.

Successful Onboarding of New Private Clients

The Company successfully onboarded new private sector clients during FY 2024 25, diversifying its revenue streams across multiple domains.

Repeat Clients (Private Sector):

In addition to new client acquisitions, the Company also continued to generate revenue from repeat clients such as Dalmia, Avadha Group, and Tractable. Although individual project values from these clients were relatively small (less than Rs. 25 lakhs each), their cumulative contribution provided stability and ensured consistent topline growth.

Other Income

Other Income for the Financial Year 31st March 2025 stood at Rs. 9.83 Lakhs whereas in the Financial Year 31st March 2024 it stood at Rs. 8.40 Lakhs represent an increase of 17.02%.

Reason: The increase in Other income is primarily due to minor increase interest income from FD and profit on sale of property.

Expenditure

Total Expenses

Total Expenses for the Financial Year 31st March 2025, stood at Rs. 1,441.95 Lakhs whereas in the Financial Year

31st March 2024 it stood at Rs 931.32 Lakhs representing an increase of 54.83%.

Reason: The increase in total expenses is mainly due to an increase in purchases of stock in trade, employee benefit expense and other expenses.

Cost of Goods Sold

The Purchase of stock in trade in Financial Year 31st March 2025, stood at Rs 726.45 Lakhs whereas in Financial Year 31st March 2024 it stood at Rs. 359.35 lakhs representing an increase of 102.16%

Reason: The reason for increase was due to increase in purchases to meet the higher demand.

Change in inventories of stock-in-trade

The change in inventory of stock in trade for the financial year ended 31^st March 2025, stood at Rs. 3.22 lakhs, whereas for the financial year ended 31^st March 2024 it was at Rs. (3.22) lakhs representing an increase of 200.00%

Reason: The change in stock-in-was driven by the reversal of the previous years closing inventory.

Employee benefit expense

The Employee benefit expense for the Financial Year 31st March 2025, stood at Rs. 445.72 Lakhs whereas in Financial Year 31st March 2024 it stood at Rs. 298.96 Lakhs representing an increase of 49.09%

Reason: There was an increase in employee benefit expenses due to a significant rise in salaries and wages. This was a result of the hiring of additional employees and salary increments for existing staff.

(Amounts in lakhs)

Particulars	For the period ended March 31, 2025	For the period ended March 31, 2024
Salaries, wages, bonus and other benefits	356.21	231.68
Director Remuneration	64.50	29.83
Contribution to provident and other funds	6.08	3.71
Gratuity expenses	17.13	14.70
Leave encashment	(1.23)	2.24
Staff welfare expenses	3.02	16.80
Total	445.72	298.96

Finance Cost

The Finance Cost for the Financial Year on 31st March 2025, stood at Rs. 17.51 Lakhs whereas in the Financial Year 31st March 2024 it stood at Rs. 15.91 Lakhs representing a increase of 10.04% from the previous years.

Reason: The increase in finance costs was primarily due to interest on loans as the company increased its total borrowing throughout the year.

Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 31st March 2025, stood at Rs. 34.36 Lakhs whereas in the Financial Year 31st March 2024 it stood at Rs. 34.75 Lakhs representing a decrease of 1.13%.

Other Expenses

The Other Expenses for the Financial Year March 31, 2025, stood at Rs. 214.69 Lakhs whereas in Financial Year 31st March 2024 it stood at Rs. 225.57 Lakhs representing a decrease of 4.82%

Reason: The increase in other expense was mainly due to increase in various expense like legal and professional fees, project expenses, office rent etc. among other expenses.

(Amounts in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Travel & Conveyance	21.31	30.88
Y-o-Y increase/(decrease)	(30.99)%
Project Expenses	62.60	90.15
Y-o-Y increase/(decrease)	(30.56)%
Office Rent	32.65	24.00
Y-o-Y increase/(decrease)	36.04%
Drone Maintenance Expense	4.39	10.05
Y-o-Y increase/(decrease)	(56.31) %

Restated Profit before Tax

The restated profit before tax for the Financial Year 31^st March 2025, stood at Rs. 777.30 Lakhs whereas in Financial Year 31st March 2024 it stood at Rs. 445.83 Lakhs representing an increase of 74.35%.

Reason: The profit before tax increased because the revenue grew by Rs.840.66 lakhs whereas the total expense grew by Rs. 510.63 lakhs due to which profit before tax saw a major increase.

Tax Expense

Tax Expense for the Financial Year 31^st March 2025, stood at Rs. 191.31 lakhs out of which Current Tax being Rs. 197.26 lakhs and Deferred Tax being Rs. (5.95) lakhs whereas in the financial year 31st March 2024 it stood at Rs 110.93 Lakhs out of which Current Tax being Rs. 119.94 and Deferred Tax Rs. (9.00) represents an increase of 33.97%.

Reason: The reason for increase in the tax expense is due to the increase in the profit before tax.

Restated Profit after Tax

The restated profit after tax for the Financial Year 31st March 2025, stood at Rs. 586.02 Lakhs whereas in Financial Year 31st March 2024 it stood at Rs. 334.99 Lakhs representing an increase of 74.94%.

Reason:

(Amount in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Revenue from operations	2,209.42	1,368.75
Change in %	61.42%
Total Expense	1,441.95	931.32
Change in %	54.83%
Cost of Good Sold	726.45	359.35
Change in %	102.15%
Profit after tax	586.02	334.99
Pat Margin in %	26.52%	24.47%

Justification for increase in PAT:

1. Efficient Project Execution:

Timely and efficient execution of projects helped reduce extra costs and improved resource utilization. This controlled overhead expenses and ensured higher project-level profitability.

2. Cost Optimization and Vendor Management:

The Company focused on cost control and better vendor management during FY 2024 25. Savings in procurement, better negotiation, and improved supply chain efficiency helped reduce the overall cost burden.

3. Execution of High-Margin Specialized Projects:

During FY 2024 25, the Company executed several specialized projects with significantly good profit margins, particularly for Private Client i.e. Marval Geospatial, Hubble-fly Technologies for LSM and drone survey work, as well as government client with Indian Railway Yard Survey project is good profit margin project we have doing in fiscal year 2024-25. These projects boost our Top line growth as well as profit margin.

A larger share of revenue came from high-margin projects and services, which supported the improvement in PAT margin.

4. Benefits of Higher Revenue:

With revenue growing by 61.15% YoY, the Company managed to absorb fixed costs more efficiently. This allowed profits to grow faster than revenue, thereby improving overall margins.

PERIOD ENDED MARCH 31, 2024, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

Total Income

Total Income for the Financial Year 31^st March 2024, stood at Rs 1,377.15 Lakhs whereas in Financial Year 31^st March 2023 it stood at Rs 675.10 Lakhs representing an increase of 103.99%.

Reason: The increase in the total income of the company is due to a significant increase in the revenue of the company.

Revenue of operations

Revenue from operations for the Financial Year 31^st March 2024, stood at Rs. 1,368.75 Lakhs whereas in Financial Year 31^st March 2023 it stood at Rs. 665.98 Lakhs representing an increase of 105.52%.

Reason: The significant increase in revenue to Rs.1,368.75 Lakhs during FY 2023 24 (as compared to Rs.665.98 Lakhs in FY 2022 23), The substantial growth in revenue during the reporting period is primarily attributable to a combination of timely project execution, and favourable sectoral conditions in the drone-based survey and mapping services industry.

1. Execution and Billing of Deferred Projects (WIP Convert into Revenue Realization)

A portion of the revenue growth is attributable to the successful execution and billing of projects that were pending from the previous fiscal year due to delays in client approvals and regulatory include projects from "Ministry of Railway, APSSLR (Andhra Pradesh), SLNA, Survey of India (SOI), NWDA, NEEPCO", etc. These projects accounted for unbilled revenue which was shown in WIP of approximately Rs.2.15 Cr in FY 2022 23. Of this, partial billing amounting to Rs.1.15 Cr was realized during FY 2023 24 without requiring further field deployment. This enabled early recognition of revenue in Q1 and Q2 of the current fiscal.

2. Increased Revenue from Existing Clients

In FY 2023 24, the Company witnessed a substantial increase in revenue from existing clients, with repeat business contributing approximately Rs.10.49 crore, compared to Rs.4.38 crore in FY 22 23. This surge in recurring business reflects strong client retention. Moreover, such projects tend to yield higher margins due to enhanced operational efficiency, lower onboarding costs, and streamlined execution processes, thereby positively impacting PAT.

3. Operational Capacity Enhancement

In FY 2023 24, the company invested significantly in expanding its operational capacity, which directly impacted our ability to execute projects at a larger scale:

Drone & Technology Upgrades: Integration of LiDAR systems and upgrades to existing drones led to a

30 35% increase in daily survey coverage.

Field Workforce Expansion: The field team size has doubled from 15 to over 30 trained professionals, allowing for operations across multiple sites in India.

Data Processing Infrastructure: Investments in DGPS, RTK systems, and high-speed processing servers significantly improved project turnaround times and throughout.

4. Successful Onboarding of New Private Clients

The Company added some new private sector clients during FY 2023 24, diversifying its revenue streams across multiple domains. These new engagements contributed approximately Rs.1.41 crore in revenue, with an average project-level profit margin of 35 40%.

5. Acquisition of High-Value Project & Repeated Work Order

In FY 2023 24 witnessed the onboarding and execution of several high-value projects, primarily from government and public sector clients, along with continued business from established private clients.

Key Project Highlights:

Gandak-Ganga Pariyojana (NWDA) Rs.72 Lakhs, successfully completed During the Fiscal Year

Godavari River Project (WAPCOS Ltd.) Rs.1.20 Cr Successfully completed During the Fiscal Year

Hydropower Survey Project (NEEPCO) Rs.55 Lakhs Successfully completed During the Fiscal Year

Repeat Clients (Private Sector):

Dalmia, Avadha, CEG, Tractable, etc. While individual project values were Less than Rs.35 Lakhs, these contributed to sustained topline performance in revenue generation.

Other Income

Other Income for the Financial Year 31st March 2024, stood at Rs. 8.40 Lakhs whereas in the Financial Year 31st March 2023 it stood at Rs. 9.12 Lakhs represent a decrease of 7.88%.

Reason: The decrease in other income is primarily due to a reduction in miscellaneous income.

Expenditure

Total Expenses

Total Expenses for the Financial Year 31^st March 2024, stood at Rs. 931.32 Lakhs whereas in the Financial Year 31^st March 2023 it stood at Rs. 532.01 Lakhs representing an increase of 75.06%.

Reason: The increase in total expenses on account of the increase in Cost of Good Sold, Finance cost and Employee benefit expense.

Cost of Goods Sold

The Purchase in Financial Year 31st March 2024, stood at Rs. 359.35 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 114.14 lakhs representing an increase 214.83%.

Reason: In the FY24 there was an increase in purchases as the company needed more resources to complete additional projects.

Change in inventories of stock-in-trade

The change in inventories of stock-in-trade for the financial year 31^st 2024 stood at Rs. (3.22) lakhs and in the financial year ended 31^st March 2023 it was Rs. 0.

Reason: There were no change in inventory of stock in trade in the Financial Year 2023.

Employee benefit expense

The Employee benefit expense for the Financial Year 31st March 2024, stood at Rs. 298.96 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 234.29 Lakhs representing an increase of 27.60%

Reason: There was an increase in employee benefit expenses due to a significant rise in salaries and wages. This was a result of the hiring of additional employees and salary increments for existing staff. Additionally, the increase included higher staff welfare expenses and increased gratuity expenses.

(Amounts in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Salaries, wages, bonus and other benefits	231.68	190.92
Director Remuneration	29.83	30.00
Contribution to provident and other funds	3.71	0.66
Gratuity expenses	14.70	4.02
Leave encashment	2.24	0.03
Staff welfare expenses	16.80	8.67
Total	298.96	234.29

Finance Cost

The Finance Cost for the Financial Year on 31st March 2024, stood at Rs. 15.91 Lakhs whereas in the Financial Year 31st March 2023 it stood at Rs. 9.47 Lakhs represent an increase of 67.97% from the previous years.

Reason: The increase in finance costs was primarily due to a Property Loan taken midway (10 September 2022) through the financial year ending 31 March 2023, resulting in interest charges not being applied for the full year. However, in the financial year ending 31 March 2024, the full years interest cost on the property loan was incurred.

(Amounts in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Total Finance Costs	15.91	9.47
Interest on Car loan	0.94	0.60
Interest on Property loan	14.97	8.45
Processing fees	-	0.42

Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 31st March 2024, stood at Rs. 34.75 Lakhs whereas in the Financial Year 31st March 2023 it stood at Rs. 40.31 Lakhs representing a decrease of 13.79%.

Reason: During the year 31st March 2023, new assets worth Rs. 219.39 lakhs were added, including Rs. 172.81 lakhs for non-depreciable land. This increased the opening WDV for FY 2023-24, but since the WDV of depreciable assets was lower, depreciation expenses declined.

(Amount in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Opening balance	254.08	75.00
Addition	47.42	219.39
Deletion	-	-
Less - Depreciation	(34.75)	(40.31)
Closing balance of fixed assets	266.74	254.08

Other Expenses

The Other Expenses for the Financial Year March 31, 2024, stood at Rs. 225.57 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 133.80 Lakhs representing an increase of 68.59%.

Reason: The increase in "Other Expenses" is primarily due to a significant increase in various expenses like office rent, project expenses, travel and conveyance etc.

The details of these expenses are outlined below:

(Amounts in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Office rent	24.00	-
Y-o-Y increase/(decrease)	-
Project Expenses	90.15	38.06
Y-o-Y increase/(decrease)	136.86%
Travel & Conveyance	30.88	25.34
Y-o-Y increase/(decrease)	21.89%

Restated Profit before Tax

The restated profit before tax for the Financial Year 31st March 2024, stood at Rs. 445.83 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 143.10 Lakhs representing an increase of 211.55%

Reason: The reason for increase in profit before tax is due to a major increase in the revenue and disproportionate increase in the overall expenses.

Tax Expense

Tax Expense for the Financial Year 31^st March 2024, stood at Rs. 110.93 lakhs out of which Current Tax being Rs. 119.94 lakhs and Deferred Tax being Rs. (9.00) Lakhs whereas in financial year 31st March 2023 it stood at Rs 33.94 Lakhs out of which Current Tax being Rs. 41.51 lakhs and Deferred Tax being Rs. (7.58) Lakhs representing as increase of 226.89%.

Reason: The tax expenses increased over the financial year due to an increase in profit before tax therefore more tax expenses made in the financial year 2023-24 as compared to the financial year 2022-23.

Restated Profit after Tax

The restated profit after tax for the Financial Year 31st March 2024, stood at Rs. 334.99 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 109.20 Lakhs representing an increase of 206.78%

Reason:

(Amount in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Revenue from Operation	1,368.75	665.98
Change in %	105.52%
Total Expenses	931.32	532.01
Change in %	75.06%
Cost of Goods Sold	359.35	114.14
Change in %	214.83%
Depreciation and amortization expense	34.75	40.31
Change in %	(13.79)%
Other Expenses	225.57	133.80
Change in %	68.59%
Profit after tax	334.90	109.16
Pat Margin in %	24.47%	16.39%

Justification for increase in PAT:

1. High-Margin Repeat Work on Specialized Projects

During FY 2023 24, the Company executed several high-margin projects for existing clients, notably in the domain of satellite imagery. For example, repeat orders were received from Shri Bhawani Consultancy for a project in Arunachal Pradesh, and for a Ropeway project at Kartik Swami Temple, Nainital under Trectabel. Approximately 35% of the work was conducted using satellite imagery technology, eliminating the need for extensive field activity. These types of low cost, high-efficiency projects significantly boosted project-level profitability and overall, PAT margins.

2. Increased Revenue from Existing Clients

In FY 2023 24, the Company witnessed a substantial increase in revenue from existing clients, with repeat business contributing approximately Rs.10.49 crore, compared to Rs.4.38 crore in FY 2022 23. This surge in recurring business reflects strong client retention and trust. Moreover, such projects tend to yield higher margins due to enhanced operational efficiency, lower onboarding costs, and streamlined execution processes, thereby positively impacting PAT.

3. Successful Onboarding of New Private Clients

The Company added some new private sector clients during FY 2023 24, diversifying its revenue streams across multiple domains. These new engagements contributed approximately Rs.1.41 crore in revenue, with an average project-level profit margin of 35 40%.

INFORMATION REQUIRED AS PER ITEM (II) (C) (I) OF PART A OF SCHEDULE VI TO THESEBI REGULATIONS:

1. Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

Other than as described in the section titled Risk Factors beginning on page 29 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Other than as described in this Red Herring Prospectus, particularly in the sections Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 29 and 283, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations.

4. Income and Sales on account of major product/main activities

The income and sales of our Company on account of major activities, Geospatial & Consultancy Services and Sale of License.

5. Future changes in the relationship between costs and revenues, in case of events such as future increase in cost of service and freight & forwarding expenses that will cause a material change are known.

Our Companys future costs and revenues can be indirectly impacted by an increase in the Cost of Services, Tour

& Travelling, Outsourcing field expense and Purchase.

6. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by competition, demand/supply situation,interest rates quoted by banks & others.

7. The extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.

Increases in our revenues are by and large linked to increases in the volume of business.

8. Total turnover of each major industry segment in which the issuer company operates.

The Company operates in the Geospatial Services. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 141 of this Red Herring Prospectus.

9. Status of any publicly announced new products or business segments.

Our Company has not announced any new services and segment / scheme, other than disclosure in this Red Herring Prospectus.

10. The extent to which the business is seasonal.

Our business is seasonal in nature to certain extent. For more information, please refer to the risk factor on page 29 of the Red Herring Prospectus.

11. Competitive Conditions

We face competition from existing and potential competitors, which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in the section titled "Our Business" on page 189 of this Red Herring Prospectus.