Pankaj Piyush Trade & Investment Ltd Management Discussions

ANNEXURE-IV

The Management of KAIROSOFT AI SOLUTIONS LIMITED (Formerly Known as Pankaj Piyush Trade and Investment Limited) in its Analysis Report has highlighted the performance and outlook of the Company in order to comply with the requirement of Corporate Governance as laid down in SEBI Listing Regulations, 2015. However, investors and readers are cautioned that this discussion containscertain forward-looking statementsthat involve risk and uncertainties.

A. Industry Structure and Development Financial Year 2025: A Glance

The Artificial Intelligence (AI) sector in India is experiencing a period of unprecedented growth and transformation. The governments proactive role, through initiatives like the IndiaAI Mission, has been a key catalyst. This mission, approved in March 2024 with a significant outlay of 10,300 crore, aims to establish a robust and inclusive AI ecosystem. A core component is the creation of a high-end computing facility with over 18,000 GPUs, which will significantly bolster R&D and innovation. Other key components are as follows;

The governmenthas launched "BharatGen," a multimodal Large Language Model (LLM) initiative, to improve public service delivery and citizen engagement using AI.

The Digital India Bhashini initiative is promoting AI-driven language technology solutions for all 22 scheduled Indian languages, enhancing accessibility and inclusion.

Indias digital economy, a major enabler for AI, is projected to grow from 11.74% of the national income in 2022-23 to 13.42% by 2024-25.

The countrys digital infrastructure is expanding rapidly, with internet connections jumping from 25.15 crore in March 2014 to nearly 97 crores in June 2024.

India has also demonstratedits leadership in AI talent. According to the StanfordAI Index 2024, India ranksfirstglobally in AI skill penetrationand has seen a 263% growth in its AI talent concentrationsince 2016.

Over the past 11 years, India has made remarkable progress in its journey towards becoming a digitally empowered society and knowledge economy. From expanding internet access in remote villages to revolutionising public service delivery through digital platforms, the country has bridged the urban-rural divide like never before. The digital economy, which contributed 11.74% to the national income in 2022 23, is projected to grow to 13.42% by 2024 25, driven by advancements in artificial intelligence, cloud computing, and digitalinfrastructure.

India is rapidly advancing in cutting-edge technologies to strengthen its position as a global innovation hub. Focused efforts are being made to boost AI capabilities, enhance computeinfrastructure,and develop a self-reliant semiconductorecosystem.

IndiaAI Mission

The IndiaAI Mission, approved by the Union Cabinet under the leadership of the Honble Prime Minister on 7 March 2024, is a landmark initiative to build a comprehensive and inclusive AI ecosystem in India. It focuses on seven strategic pillars: Compute Capacity, Innovation Centre, Datasets Platform, Application Development Initiative, Future Skills, Startup Financing, and Safe & Trusted AI. With a total outlay of 10,371.92 crore over five years, the mission aims to advance responsible AI innovation aligned with national priorities.

As of 30 May 2025, Indias national compute capacity has crossed 34,000 GPUs, laying a strong foundation for AI-led research and development.

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) projecting it to remain the fastest growing major economy over the next two years. Indias economy continues to grow at a steady and confident pace, standing out as the fastest growing major economy in the world.

The Reserve Bank of India expects the same rate to continue in 2025 26. This performance comes at a time when the global economy faces uncertainty,making Indias steady momentumall the more significant.

SOME MAJOR EVENTS OF FY. 2024-25 Interest Rates

Central banks eased rates in 2024 after aggressive hikes in 2022 2023. The Fed and ECB made quarter-point cuts in late 2024, signalling cautiousoptimism.

Inflationaround the Globe

Inflation cooled in the US and Europe, but remained above target. China, meanwhile, battled deflationary pressures, prompting stimulusmeasures

Trade & Tariffs

US trade policy shifted under President Trumps re-election in 2024, introducing new tariffs on pharmaceuticals, metals, and autos. Global trade fragmentation intensified, with countries reassessing supply chains and origin-traceability systems. BRICS bloc expanded its influence in commoditiesand GDP share, with China and India leading growth.

Geopolitical and Climate Impacts

Middle East tensions and Red Sea disruptions affected global logistics and energy prices. Climate events like floods and wildfires dis-ruptedsupply chains and port operations.COP 29 Summit in South Africa saw major commitmentsto emissions cuts.

Remarks

Indias growth story continues to draw global attention, backed by strong fundamentals and consistent performance. Real GDP, which measures the economys output after removing the effects of inflation, expanded by 6.5 per cent in 2024 25. The Reserve Bank of India expectsthis pace to continueinto 2025 26. Other projectionsecho this optimism, with the United Nations forecastinggrowthof 6.3 per cent this year and 6.4 per cent next year, while the Confederation of Indian Industry places its estimate slightly higher at 6.40 to 6.70 per cent.

India Artificial Intelligence Industry

Indias Generative AI (GenAI) ecosystem has seen remarkable growth, even amid a global downturn. The countrys AI landscape is evolving from experimentaluse cases to scalable, production-ready solutions, reflectingits growing maturity.

Businesses PrioritisingAI Investments: According to BCG, 80% of Indian companies consider AI a core strategicpriority, surpassing the global averageof 75%. Additionally, 69% plan to increase their tech investmentsin 2025, with one-third allocating over USD 25 millionto AI initiatives.

GenAI Startup Funding: According to a November 2024 report by National Association of Software and Service Companies (NASS-COM), Indian GenAI startup funding surged over six times quarter-on-quarter, reaching USD 51 million in Q2FY2025, driven by B2B and agentic AI startups.

AI Transforming Workplaces: The Randstad AI & Equity Report 2024 states that seven in 10 Indian employees used AI at work in 2024, up from five in 10 a year earlier, showcasing AIs rapid integrationinto workplaces.

AI Empowering Small & Medium Businesses (SMBs): AI-driven technologies, such as autonomous agents, are helping SMBs scale efficiently, personalise customer experiences, and optimise operations. According to Salesforce, 78% of Indian SMBs using AI reported revenuegrowth, while 93% statedAI has contributedto increased revenues.

Rapid Expansion of Indias AI Economy: As per the BCG-NASSCOM Report 2024, Indias AI market is projected to grow at a CAGR of 25-35%, reinforcing its potential for innovation and job creation. While AI automates routine tasks, it is simultaneously generating new opportunities in data science, machine learning, and AI-driven applications.

AI Startup Support Ecosystem: India hosts 520+ tech incubators and accelerators, ranking third globally in active programs. 42% of these were established in the past five years, catering to the evolving needs of Indian startups. AI-focused accelerators like T-Hub MATH provide crucial mentorship in product development, business strategy, and scaling. In early 2024, MATH supported over 60 startups, with five actively discussing funding, highlighting Indias growing AI startup landscape.

Indias rapid advancements in artificial intelligence, underpinned by strategic government initiatives, have positioned the country as a global AI powerhouse. By expanding AI compute infrastructure, fostering indigenous AI models, enhancing digital public infrastructure, and investing in talent development, India is creating an inclusive and innovation-driven ecosystem. The emphasis on open data, affordable access to high-performance computing, and AI-driven solutions tailored to local needs ensures that the benefits of AI reach businesses, researchers, and citizens alike. As AI adoption accelerates across industries, Indias proactive approach is not only strengthening its digital economy but also paving the way for self-reliance in critical technologies. With a clear vision for the future, India is set to become a leader in AI innovation,shaping the global AI landscape in the years to come.

Who We Are and What We Do?

During the year under review, the Company underwent a significant transformation, changing its name from Pankaj and Piyush Trade and Investment Limited to Kairosoft AI Solutions Limited, reflecting its new direction and focus on Artificial Intelligence (AI). This strategic shift, driven by the need to diversify its business and explore new opportunities, aims to leverage the companys strengths, drive growth, and enhance shareholder value. and altered its Memorandum of Association to include new objects, enabling it to engage in AI-relatedactivities, and the alterationwas approved by shareholders througha postal ballot dated July 18, 2024.

With its new name and expanded objects, the Company is poised to capitalize on emerging opportunities in the AI sector, driving innovation,growth, and value creationfor its stakeholders.

The Company is engaged to carry on the activity of investment, invest the capital and other amounts of money of the Company in the purchase or upon the security of shares, stocks, units, debentures, debenture-stock, bonds, mortgages, obligation and securities issued or guaranteed by any company, corporation or undertaking, whether incorporated or otherwise, and where-so ever constituted or carrying on business and to buy, sell or otherwise deal in, shares, stocks, debentures, debenture-stock, bonds, notes mortgages, obligation and other securities issued or guaranteed by any government, sovereign ruler, commissioners, trust municipal, local or other authority or body in India or abroad. Company is also involvedin wholesale trading business of fabrics and garments.

Further we are in business of designing, developing, licensing, maintaining, and supporting Artificial Intelligence (AI) powered software solutions in India and elsewhere in the world and undertake research and development in the field of Aland machine learning for the purpose of creating innovative software solutions, provide consultancy services related to Al implementation, integration, and application acrossvariousindustries, acquire,hold, sell, lease, or otherwisedeal in intellectualpropertyrights relatedto Al softwaresolutions.

B. Opportunities and Threats

Opportunities

Government Initiatives:The "IndiaAIMission" and its seven pillars, including computecapacity and startupfinancing, offerdirect opportunities for collaboration, funding, and infrastructure access.

Expanding Digital Infrastructure:The ongoing expansionof 5G networks and digital public infrastructure (DPI) like UPI provides a robust foundationfor deploying AI solutions at scale, particularlyin sectors like fintech and e-commerce.

Growing Domestic Market: The projected growth of Indias AI market to $28.8 billion by 2025 presents a massive domestic demand for AI solutions across various sectors, includinghealthcare, agriculture,and finance.

Strong Talent Pool: Indias leading position in AI skills ensures a continuous supply of highly capable professionals to fuel our growth and innovationpipeline.

Threats

Intense Competition:The market is highly competitive, with a large number of domestic and internationalplayers.Sustaining our market leadership requires continuous innovationand a clear competitive advantage.

Technological Obsolescence: The rapid pace of technological change in AI, particularly in generative AI and foundational models, poses a risk of our existing products becoming outdated.

Regulatory Scrutiny: As AI technology evolves, new regulations related to data privacy, algorithmic bias, and ethical use are being formulated, such as the Digital Personal Data Protection Act, 2023. Compliance with these evolving frameworks is a critical challenge.

Talent Attrition: The high demand for skilled AI professionals can lead to a talent shortage and increased wage pressure, affecting our ability to attract and retaintop-tier talent.

Risks and opportunities are fundamental and interconnected dimensions of every corporate endeavour. At your Company, the Board of Directors and executive management remain committed to making informed and proactive decisions that safeguard stakeholder interests and support sustainable growth.

To that end, the Company has implemented a comprehensive Risk Management Policy, overseen by the Audit Committee. This Committeeincludes senior departmentalleadership and convenesat regular intervals to:

Systematically identify and assess risk exposures across operations

Develop robust mitigation strategies

Ensure effective implementation and continuous monitoring of controls

This structured framework enables the Company to respond dynamically to evolving risks while leveraging strategic opportunities in alignment with corporateobjectives.

The Company is primarily exposed to technological risk, market risk, interest rate risk, and credit risk. However, its adherence to prudent financial and risk management practices over the years has enabled it to effectively navigate typical industry risk variables. These include macroeconomic cycles, volatilityin equity markets, and fluctuations in interest rates.

Backed by its extensive operational experience and unwavering focus on strong business fundamentals, the Company remains confidentin its ability to enhance performanceand deliver long-term value to its stakeholders.

C. Segment-wise Performance

In the Fiscal year ending on March 31, 2024, the companys operations were categorized into distinct segments to provide a comprehensive view of its financial performance and resource allocation. These segments include Trading Shares and Securities and the Financing of Loans.

However, during the year under review, the Company underwent a significant transformation, changing its name from Pankaj and Piyush Trade and Investment Limited to Kairosoft AI Solutions Limited, reflecting its new direction and focus on Artificial Intelligence (AI). This strategic shift, driven by the need to diversify its business and explore new opportunities, aims to leverage the companys strengths, drive growth, and enhance shareholder value. and altered its Memorandum of Association to include new objects, enabling it to engagein AI-relatedactivities, and the alteration was approved by shareholders througha postal ballot dated July 18, 2024.

Overall, the total revenue for the company during the financial year ended 31st March, 2025 was Rs 1,77,18,250 with a net loss of (23926350) after taxes. Total assets amounted to Rs. 43,37,81,130 while total liabilities were Rs 3,46,01,570. The total capital employed for the entire company was Rs 39,91,79,560. The breakdown offers insight into the companys financial performance, highlighting the varying contributionsand financialhealth of each operationalsegment.

D. Outlook

Indian Economy Outlook Financial Year 2025

The Real GDP growth for FY25 stood at 6.5%, driven by strong domestic demand and resilient services and construction sectors. Despite global headwinds, India remained the fastest-growing major economy, with average growth of 7.8% over FY23 FY25. The Retail inflation (CPI) eased to a 75-month low of 2.8% in May 2025, largely due to falling food prices. The RBI cut interest rates by 150 basis points during FY25, bringing the repo rate to 5.5%, aiming to stimulate private investment. Inflation is expected to remain below the RBIs4% target,creating room for further monetary easing.

Further, GST collections hit a record 22.1 lakh crore, up 9.4% YoY, signaling robust consumption. The E-way bill generation surged, especially in Q4 FY25, indicating heightened logistics and trade activity. The Vehicle sales and air passenger traffic showed strong growth, reflecting consumer confidence. Indias AI market is growing at a CAGR of 25-35% and is projected to reach around $17 billion by 2027.

As the investments in AI continue to increase, the demand for AI talent in India is also expected to grow at 15% CAGR by 2027. around 93% of the investments made by Indian tech services and made-in-India product players focus on digital content, data analytics and supply chain. With increasing enterprise tech spending, technology service providers are developing an array of AI-based services and solutions, expanding their offerings beyond traditional IT services.

This includes the development of proprietary AI & GenAI platforms, tools for automation, data analytics solutions, and bespoke AI applicationsfor specific industry verticalssuch as healthcare, banking & finance, and retail.

The country ranks among the top five nations with a 14 times growth in individuals skilled with AI in the last 7 years, it added. Further, Indias technology industry has already been seeing more than 15% growth in AI/ML jobs over the past 12 months with positions such as AI engineers growing at 67% year-on-year.

Global Outlook FY25

As per International Monetary Fund (IMF) the global growth shall remain at 3.0% and as per World Bank the global growth shall remain at 2.4%. While the Advanced economies remain sluggish and the emerging markets lead with +4%+ growth. The Inflation cooling globally falling to around 3.5 4.2% with high debt, interest rates, weak trade, and geopolitical tensions amongst the major key risk areas.

We remain highly optimistic about our companys future prospects. The convergence of favourable government policies, a skilled workforce, and a rapidly digitalizing economy creates a fertile ground for AI growth. We will continue to invest heavily in designing, developing, licensing, maintaining, and supporting Artificial Intelligence (AI) powered software solutions in India and elsewhere in the world to stay at the forefront of the industry. We plan to expand our market reach by forging new partnerships, entering new geographicalmarkets and are confident that our strategicinitiatives will enable us to deliver sustainable value to our stakeholders.

E. Risks and Concerns

The Dynamic Market in which we operate expose us to various risks. Despite a dynamic and often volatile global environment characterized by geopolitical tensions, persistent inflation, and contraction in IT spending the Companys resilient foundation, underpinned by agile and forward-looking strategies, continues to safeguard our employees, partners, and clients.

Over the past year, we encountered significant disruption driven by rapid technological advancements. In response, we strengthened our risk management architecture. This proactive approach enabled us to pre-empt obsolescence risks, streamline operations, and meet evolving regulatory requirementswith confidence and composure.

Economic& Geopolitical Risk

As an AI-driven enterprise, the Companys operations and performance are inherently influenced by the prevailing economic landscape both domestic and global. Factors such as economic slowdowns, shifts in global financial markets, and geopolitical disruptions have a material impact on business momentum and strategicdecision-making.

Given the industrys reliance on dynamic technological investment and global partnerships, the Company remains vigilant in tracking macroeconomic trends and geopolitical developments to proactively mitigate risks and adapt its business strategy accordingly.

Inflation, rising interest rates, and geopolitical disruptions can adversely affect business prospects, client spending, and overall revenue growth.

Technologicaland CybersecurityRisk

The Company maintains a vigilant approach to technology risk management, with periodic reviews covering critical areas including data privacy and protection, identity theft, cybersecurity threats, data leakage, access control, and business continuity. Dedicated systems, tools, and protocols have been deployed to proactively monitor and respond to suspicious activities and potential vulnerabilities.

Cybersecurity breaches and data privacy issues, including those related to Al and Generative Al (Gen Al), can lead to severe repercussions, including regulatory fines, legal liabilities, and damage to the companys reputation.

Operational Risks

High attrition rates, workforce instability, and productivity challenges, pose significant threats. Over the years, the Company has maintained a strong commitment to identifying and mitigating reputational risks, recognizing the potential impact of adverse events on its market position and stakeholdertrust.

All incidents with the potential to harm the Companys reputation are managed with utmost diligence, adhering strictly to relevant legal and regulatory frameworks.

ComplianceRisks

Failure to comply with shifting regulations across multiple jurisdictions could result in penalties, loss of business, exclusion from markets, reputationalharm, and legal consequences.

As a participant in the markets, we are subject to extensive regulation under the Securities and Exchange Board of India (SEBI), multiple exchanges, and other regulatory bodies. The costs and uncertainty related to complying with such regulations continue to increase.

Despite our best efforts to comply with all the applicable regulations, there are a number of risks, particularly in areas where applicable regulations or laws may be unclear or where regulators could revise their previousguidelines.

Additionally, some legal/regulatory frameworks provide for the imposition of fines and penalties for non-compliance even though the non-compliance was unintentional or inadvertent and even though the systems and processes reasonably designed to prevent violations were in place, such a finding can affect our business, and damage our reputation.

Risk Management

At KAIROSOFT AI SOLUTIONS LIMITED, risk management is a cornerstone of our strategic planning and decision-making processes. We have instituted a comprehensive and resilient risk management framework that enables us to systematically identify, assess, and mitigaterisks across our operations.

Risk management is seamlessly embedded into all facets of our business, ensuring an optimal balance between risk and return, while upholding sound financial governance. Adherence to all applicable laws, regulations, and compliance standards remains a critical pri-ority,reinforcing our commitment to ethical and accountable practices.

A strong, organization-wide risk culture underpins this framework, promoting a holistic and forward-looking approach to risk identification and control. The Audit Committee plays a pivotal role in overseeing this function, conducting regular reviews of risk management policies and remaining informed about risk exposures, potentialimpacts, and mitigationstrategies.

We remain steadfast in our proactive and vigilant approach, ensuring the long-term security, resilience, and stability of our operations in alignment with stakeholder interests and corporate objectives.

F. Internal Control Systemsand their Adequacy

Your Company prioritizes maintaining robust internal control systems to ensure operational efficiency and integrity. To that end, your Company emphasizes the principles of integrity, accountability, and ethical behavior, with the Management setting the tone for this approach.

The internal control systems are designed to safeguard the Companys assets and ensure efficient productivity at all levels. The systems are adequate for the size of the business and the industry in which it operates. Well-defined processes, guidelines, and procedures and adequate internalinformationsystemsenable the Company to enhance internal controls.

The Companys internal control system is designed to ensure management efficiency, measurability and verifiability, reliability of accounting and management information, compliance with all applicable laws and regulations, and the protection of the Companys assets. This is to timely identify and manage the Companysoperational, compliance-related, economic and financialrisks.

G. Financial Performance

The Companys financial performance during the Financial Year ending 31st March, 2025 was notably impacted by heightened volatility in the Indian financial markets, resulting in significant fluctuations that adversely affected revenue generation. Despite these external challenges, the Companydemonstratedresilience, maintainingstrategicfocus on enhancing digital capabilities and operationalagility.

The key financial metrics and performance indicators for the period under review are outlined below, offering a comprehensive view of the Companysfiscal health and progress.

Year Ended (in Rs.000)	March 2025	March 2024
Income from operations	-	-
Other income	17,718.25	18,011.18
Total income	17718.25	18,011.18
Total expenditure	49610.20	12896.54
Profit aftertax	(23,926.35)	(45449.78)
Net profit for the period	(23,926.35)	(45449.78)
EarningsPer Share	(20.23)	(113.62)

Income from operations

Income from operations for the fiscal year ending in March 2025 reachedRs 1,77,18,250/- compared to Rs. 18,011,180/- in the previous year (March 2024).

Total income

Total income, including other income, amountedto Rs 1,77,18,250/- for March 2025, comparedto Rs. Rs. 18,011,180/- in the previous year (March 2024).

Total expenditure

Total expenditurefor March2025 was Rs. 4,96,10,200/- for March2025, comparedto Rs. Rs. 1,28,96,540/- in the previousyear (March 2024)

Profit aftertax

The companyreporteda Net loss of Rs. 23926.35 in March2025 comparedto Rs. Rs. 1,28,96,540/- in in the previousyear (March2024)

Net profit for the period

The companyreporteda Net loss of Rs. 23926.35 in March 2025 compared to Rs. Rs. 1,28,96,540/- in the previousyear (March 2024)

Earnings Per Share

Earnings per share (EPS) for March 2025 amountedto (20.23)compared to (113.62)in the previousyear (March 2024).

Key Financial Ratios

The Key Financial Ratios for FY 2024-2025 and FY 2023-2024, along with explanation for significant changes (change of 25% or more) are as follows:

Sr.	Ratios	March 2025	March 2024	Reason for the Variation
1	Debtors turnoverratio(Credit Sales or income/ Averagereceivables)	Nil	Nil	NA
2	InventoryTurnover ratio(COGS/Average Inven- tory)	Nil	Nil	NA
3	Interest coverage Ratio (EBIT/Finance cost)	Nil	Nil	NA
4	Current Ratio(Current Assets/Current Liabilities)	606.31%	169.34%	Due to increase in current assets
5	Debt Equity Ratio (Total Liabilities/Equity)	0.48%	0.88%	Due to issue of Equity Shares
6	OperatingProfit Margin (%) (EBIT/Total Turnover)	Nil	Nil	NA
7	Net Profit Margin (%)(PAT/Total Turnover)	-135%	-252.34	Due to decrease in loss
8	Returnon Net Worth (PAT/NetWorth)	-7.99%	2.25%	Due to loss before Interest, Tax & exceptional items

H. Human Resources Management

At KAIROSOFT AI SOLUTIONS LIMITED, we regard our employees as our most valuable asset and a key driver of organizational success. Our experienced and talented workforce plays a vital role in elevating business efficiency, crafting strategic initiatives, and adapting to a rapidly evolving environment.

The Company is committed to cultivating a safe, inclusive, and productive workplace, anchored in ethical practices, mutual respect, and equal opportunity. Our Code of Conduct emphasizes fair treatment, a zero-tolerance policy for discrimination and harassment, and a welcoming environmentfor individuals of diverse backgrounds, personalpreferences,and identities.

The company is committed to providing a positive work environment free of discrimination and harassment. Equal opportunity and fair treatment ore port of our code of conduct.

Recognizing that our success relies heavily on our ability to attract, retain, and develop top talent, we have launched comprehensive human resource initiativesaimed at strengtheningemployee capabilities.These include targetedtraining programsto enhance:

Technicaland behaviouralcompetencies

Managerial and leadership effectiveness

Business excellenceand operationalperformance

A strong emphasis is placed on continuous learning, ensuring employees evolve in tandem with technological advancements and market dynamics. Through wellness initiatives, employee assistance programs, and open communication channels, we foster a culture of well-being and empowerment.

The Company also prioritizes a culture of recognition, strategic talent engagement, and process innovation. Our senior management remains highly accessible for feedback, coaching, and grievance redressal, reinforcing a supportive environment that aligns employee goals with the organizational mission

J. Cautionary Statement

The Management Discussion and Analysis (MDA) report provides a comprehensive overview of the companys objectives, projections, estimates, and expectations. It is important to note that these statements may be forward-looking, as defined by applicable laws and regulations. However, it is crucial to understand that the actual outcomes and results may vary significantly from what is expressed or implied in the report. Numerous factors can influence the companys operations, including changes in governmental regulations, tax regimes, forex markets, economic developments both in India and the countries where the company operates, and other incidental factors.Therefore, it is essential to consider these dynamic elements when interpretingthe information presented in the MDA report.

	For and on behalf of the Board of Directors
	KAIROSOFT AI SOLUTIONS LIMITED
	(Formerly known as Pankaj Piyush Trade & Investment Limited)
	Sd/-	Sd/-
Date: 20.08.2025	Mr. Sagar Khurana	Mr. Deva Ram
	(ManagingDirector)	(Director)
Place: New Delhi
	DIN: 07691118	DIN: 09003288