Quadrant Future Tek Ltd Management Discussions

Industry Structure and developments

Our company works in the vibrant Indian economy, which is expanding rapidly and seeing substantial infrastructural development, especially in areas that are relevant to our operations.

1. INDIAS ECONOMIC OUTLOOK: GROWTH, TRADE & SUSTAINABILITY

Indias economy stands as a dynamic and rapidly evolving powerhouse, known for its resilience and forward-thinking approach. As one of the worlds fastest-growing economies, it is on track to achieve a projected GDP growth of 6.5% in the fiscal year 2024–25. This growth trajectory is underpinned by strong domestic consumption, extensive government-led infrastructure development, and a vibrant manufacturing landscape that continues to draw significant local and international investments.

On the international trade front, India has demonstrated notable progress. Exports have surged to 33.8 lakh crores, with key contributions from industries such as electronics, textiles, and agriculture. Meanwhile, imports have increased to 27.3 lakh crores, largely fueled by heightened demand for petroleum and gold—highlighting both the countrys energy requirements and evolving consumer trends. Although the trade deficit presents economic challenges, it also signals avenues for enhancing self-reliance and improving energy efficiency. In response to global environmental concerns, India has committed to an ambitious sustainability agenda. The nation aims to achieve net-zero carbon emissions by 2070, with a strategic focus on renewable energy deployment, electric vehicle adoption, and environmentally responsible practices. These initiatives not only support global climate objectives but also position India to unlock new opportunities in green innovation and employment.

Overall, India is undergoing a significant transformation—pursuing economic growth while integrating sustainability, inclusiveness, and resilience into its development model. Through its expanding presence in global trade and strong commitment to clean energy, the country is shaping a future defined by both ambition and accountability.

• Robust GDP Growth: Indias real GDP grew by 8.2% in FY24-25 and is expected to continue growing much faster than the world average, averaging 6.5-7.0% from CY24-CY29.

• Demographic Dividend: With an average age of 29, India boasts one of the youngest populations in the world.

This is leading to a sizable and expanding workforce stimulating economic growth and consumption.

• Urbanization: The need for infrastructure and services is rising as a result of rapid urbanization.

• Increasing Disposable Income: Consumer spending is being stimulated by the robust growth in both private final consumption expenditure (PFCE) and per capita gross national disposable income (GNDI).

• Government Focus on Infrastructure: A solid basis for industrial growth is provided by sustained public investment in infrastructure, which is reinforced by programs like "Atmanirbhar Bharat," "Make in India," and Production-linked Incentive (PLI) schemes.

These initiatives collectively demonstrate the governments dedication to creating a resilient, inclusive, and innovation-driven economy that is well-positioned for long-term growth and sustainability.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian wires and cables industry is an essential part of the countrys infrastructure ecosystem, accounting for nearly 40-45% of the electrical equipment industry. With Indias continued investment in modernization of its railway network and defense preparedness, the demand for high-quality, application-specific, and safety-critical cabling solutions has surged.

Specialty cables, particularly those used in railways (signaling, electrification, and rolling stock) and defense (strategic communication, radar, and aerospace), are witnessing increased demand driven by infrastructure upgrades, indigenous manufacturing focus under the ‘Atmanirbhar Bharat initiative, and the need for high-performance, reliable systems.

INDIAN SPECIALTY CABLES INDUSTRY Overview of Cables

• Standard Electrical Cables are used for conducting electricity & signals for general-purpose uses & conventional applications.

• However, specialty cables are used where Fire Safety, Weight Reduction & Durability are of utmost importance.

• This is achieved by unique Polymer compounding formulations & Treatment of these polymers with special processes like Electron Beam Irradiation.

Based on the voltages, specialty cables can be classified into three categories. The same is depicted in the figure below:

• Low Voltage Specialty Cable: Used in industrial installations or low-voltage power distribution systems, low voltage specialty cables have voltage levels lower than 6kV.

• Medium Voltage Specialty Cable: Typically used to transport medium voltage power, medium voltage specialty cables are power cables with rated voltages ranging from 6kV to 30kV. One or more copper or aluminum conductors, insulation, sheathing, and additional accessories are typically found in medium voltage cables. Applications for medium voltage cables are numerous and include rail transportation systems, mining power systems, rural power grids, and urban power distribution.

• High Voltage Specialty Cable: Power cables having rated voltages higher than 30 kV are referred to as High Voltage Specialty Cable. Because they can withstand tremendous pressure on the ground and shield the ground from harm from other outside forces, high-voltage cables are mostly utilized for burial.

Medium voltage specialty cable with a broad range of applications retained a significant market share of over 68% in CY24EE, followed by low voltage specialty cable (28%) and high voltage specialty cable (4%).

Indian Specialty Cable Market: 2025 & Beyond

• CY25EE Market Size: USD 652 million

• Forecast Period (CY25E–CY30): CAGR of 9.61%

Indian Specialty Cables Market Size (USD million) Source: Maia Research; Care Edge Research

Key Factors Affecting Growth

The following factors are anticipated to contribute to the huge growth of the specialty cable market in India:

• Growth in the production of Renewable energy

• Growth in Production of Railway Rolling Stock & Defense Industry

• Emergence of Electric Vehicles

• High Rise Building & Ambitious Infrastructural Projects

Key Applications: Major consumer segments include:

• Railways: With the increasing Speed of the Trains & thus the increasing passenger rescue time in case of emergencies,the Low Smoke Fire Retardant cables are now mandatory. Moreover, lightweight cables significantly help in improving the energy efficiency of the Railways Rolling Stock.

• Defense: Increased budgetary outlay for defense, focus on self-reliance in manufacturing, and growing exports necessitate high-tech cables for military equipment and Naval Vessels.

• Shipping: Essential to international trade, it requires specialized Light Weight & Fire Safe cables for lighting, power, and control.

• Electric Vehicles (EVs): The exponential growth of the EV market in India, supported by government incentives and charging infrastructure development, creates significant demand for high-voltage, lightweight power cables.

• Solar Power: Demand for Highly Durable, UV-resistant solar cables is driven by ambitious targets for renewable energy generation (500 GW by 2030).

INDIAN TRAIN CONTROL SYSTEM INDUSTRY

The Indian railway network, one of the largest globally, is undergoing a massive modernization drive, with a strong emphasis on safety and efficiency.In a significant policy and technology shift, the Indian Railways is moving towards large-scale deployment of Kavach – the Train Collision Avoidance System (TCAS) – to enhance operational safety. Kavach, an indigenously developed Automatic Train Protection (ATP) system, is a transformational step towards reducing rail accidents caused by human error.

• In general, Train Control System can be classified into following categories:

• Automatic Train Protection: Automatic train protection (ATP) is a form of train protection system that automatically stops at specific signal aspects and continuously verifies that a trains speed is within the range of the speed that is permitted by signaling. If not, the train is stopped by ATP using an emergency brake.

• Dispatch Centralized System: This integrated solution allows you to manage and control railroad traffic from one place. By using a centralized train dispatcher to manage train movements and wayside station interlockings, the system enhances traffic regularity and maximizes railway performance within a predetermined area.

• Centralized Monitoring System: This system allows central operations staff to remotely track the movement and activity of transit vehicles in real time. It also allows cars to seek signal priority for expedited crossing of junctions.

Key Factors Encouraging growth

• Government Initiatives: Significant budgetary allocations ( 2.65 lakh crore for railways in Union Budget 2025-26), development of indigenous systems like KAVACH, and plans to implement KAVACH across 44,000 km by 2029 highlight the governments commitment.

• Increased government spending

• Surging demand for passenger and freight capacity

• Focus on efficient and reliable transportation

• Application of advanced technologies like AI in railway operations.

Indian Control System Market Size (USD million)

Source: Maia Research; Care Edge Research

Threats and Challenges:

• Highly Capital-Intensive Projects

• Stringent Technical Regulations

• Maintenance &Security Management

Indian Interconnect Products Industry Indian Interconnect Products Industry

• Essential electrical and electronic connections between various parts or devices are provided by this industry. Within electronic systems, these parts allow data, power, and signals to flow. The automotive, rail, and defense sectors have a major demand for the industrys diverse variety of products and technology, which include connectors and wire harnesses.

Source: Maia Research; Care Edge Research

Key Factors Affecting growth

• Growth of the automobile industry (especially EVs)

• Continuous advancements in automotive technology

• Increasing demand from railways (signaling, coaches)

• Rising defense expenditure.

Threats and Challenges:

• Fluctuations in Raw Material Prices

• Strict Quality and Delivery Requirements

• High Competition

3. OUR BUSINESS

Quadrant Future Tek Limited is a research-oriented company, engaged in developing new generation Train Control and Signaling Systems that offers the highest level of safety and reliability to rail passengers and also possess a Specialty cable manufacturing facility with in-house Electron Beam Irradiation Centre. The specialty cables manufactured by our Company is used in Railways rolling stock and Naval (Defense) industry. Our facility also possess end to end infrastructure capabilities for production of Solar & EV Cables. Our Company has facility for manufacturing, testing, researching, and developing specialty cables and also to manufacture the hardware required for Train Control & Signaling Division, which is situated at Basma, Tehsil Banur, Distt Mohali.

Core Operations & Products

Our business is strategically divided into two core divisions:

A. Specialty Cable Division

This division specializes in the manufacture of Electron Beam Irradiated Cables. These cables are designed for applications where superior performance in terms of fire safety, low weight, and long-term durability is paramount.

• Unique Technology: Our in-house developed low-smoke, fire-resistant polymers, coupled with our 2.5 MeV Electron Beam Irradiation Centre, enable cross-linking of molecules, resulting in enhanced mechanical and thermal properties. This allows for reduced conductor sizes, leading to significant weight and space savings without compromising performance.

Product Portfolio

• Railway Rolling Stock Cables: Thin-walled, high-temperature bearing cables ( E N 5 0 3 0 6 / E N 5 0 2 6 4 / E N 5 0 3 8 2 compliant) supplied to Indian Railways Production Units for coaches, locomotives, and EMUs.

• Naval Defense Cables: Single-core/ multi-core, screened/un-screened cables for naval ships and submarines, designed for shipboard fire survival and halogen-free irradiation cross-linking (DGQA approved).

• Renewable Energy Cables:

Solar Cables (TUV standards compatible) and complete solutions with connectors and junction boxes, designed for harsh environments (meeting 2

Pfg 1169, EN50618:2015, BIS 17293:2020 standards).

• Electric Vehicle (EV) Cables: Low fire hazard, lightweight cables forBattery/ hydrogen electric vehicles, with IATF certification.

Integrated Manufacturing Process

From wire drawing, coating, stranding, and polymer compounding to insulation extrusion, multicore cable operations (core laying, wrapping, shielding, and sheathing), silicone cable processing, and final E-beam curing and testing, we have extensive in-house capabilities. These guarantees cost effectiveness and strict quality control.

B. Train Control & Signaling Division

This division focuses on developing and manufacturing advanced embedded systems for railway signaling and train control applications, addressing the critical need for enhanced safety and operational efficiency in Indian Railways.

• KAVACH System: We have indigenously developed a Train Collision Avoidance System (TCAS) under the KAVACH project, utilizing radio transmission and LTE technology. Our system meets Safety Integrity Level-4 (SIL-4) as per CENELEC Standards, critical for railway safety.

• Components: TCAS comprises Trackside equipment (RFID tags, Stationary TCAS Unit, Tower & Antennae) and On-board equipment (Loco TCAS vital computer, RFID reader, Driver Machine Interface, Brake Interface Unit). All units communicate via radio, synchronized with GPS, and integrated with a Central Management System (CMS).

• Features: SPAD prevention, train tripping, speed control, signal aspect display, movement authority display, collision prevention (head-on, rear-end, unusual stoppage), automatic whistling at level crossings, and SOS generation.

• Recent Order: A significant purchase order was received on December 12, 2024, from Chittaranjan Locomotive Works (CLW) for the supply, installation, testing, and commissioning of On-board KAVACH equipment in 1,200 locomotives, valued at ? 9,786.06 million (including taxes). This includes 11 years of post-warranty maintenance.

• Electronic Interlocking (EI) System: We are expanding our portfolio to develop EI systems, a computer-based electronic interlocking solution for centralized control of points, signals, and level crossing gates. EI systems are more reliable, need less space, use less power, and are simpler to install than conventional relay-based systems.

• Multi Section Digital Axle Counter (MSDAC): Another critical component for automatic block sections, monitoring track sections for vehicle presence.

Strategic Strengths

1. Innovation and Technological Leadership: Our rooted culture of research and development fosters ongoing innovation, allowing us to create innovative products like Specialty cables and the Safety Critical system.

2. Robust In-House Capabilities: We possess comprehensive in-house design, product development, and manufacturing capabilities, particularly strong in Rail Signaling Products & Solutions, ensuring quality control and faster product realization.

3. Unique Manufacturing Technology:Competitive edge is offered by our Electron Beam Irradiation Center, which makes it possible to produce cables with superior mechanical, thermal, and fire resistance properties—all of which are essential for specific applications.

4. Focus on Emerging Markets: Proactive expansion into high-growth sectors like Renewable Energy (Solar) and Electric Vehicles (EVs) positions us to capitalize on global shifts towards green mobility and sustainable energy.

5. Experienced Leadership: Our company is led by seasoned promoters and a highly qualified senior management team with extensive experience in the railways, defense, and manufacturing industries, providing strategic direction and operational excellence.

Business Strategies

1. Continuous Research and Development: We prioritize ongoing investment in R&D to track upcoming industry trends, enhance existing products, and develop new-generation technologies. Key focus areas include environmental protection (E-beam cables for solar/EV), higher train speeds (safety-critical signaling systems), and modernization of rolling stock and defense systems (fire safety cables).

2. "Make in India" and Indigenization:We are dedicated to fostering domestic manufacture and growth in line with the governments initiatives, helping India become more self-sufficient in its railway infrastructure and related systems. Our focus is on achieving international quality standards for global competitiveness.

3. Expansion in Automatic Train Protection (ATP) and Railway Safety: Building on our KAVACH success, we aim to expand our offerings in railway safety measures, starting with Electronic Interlocking (EI) Systems and Multi Section Digital Axle Counters. This involves significant R&D investment and leveraging our existing design centers in Bengaluru and Hyderabad.

4. Diversification of Customer Base: While maintaining strong relationships with our Promoter Group entities, we are actively expanding our reach to non-Promoter Group customers, particularly in the defense sector, and are increasing participation in various government tenders to grow our market share.

5. Penetration into New Cable Sectors:By creating products that satisfy the stringent requirements of these sectors, we intend to use our Specialty Cable technology to enter new niche markets, such as solar photovoltaic cables and automotive cables for electric vehicles.

4. OPPORTUNITIES AND OUTLOOK

Quadrant Future Tek Limited is well-positioned to benefit from Indias notable growth trajectory, especially in the defense and railway industries, as well as growing prospects in renewable energy and electric vehicles.

• Indian Railways Modernization: The Indian governments massive investment in railway infrastructure, including network expansion, electrification, and the deployment of advanced safety systems like KAVACH, presents an unparalleled opportunity. Our recent ? 9,786.06 million purchase order from CLW for KAVACH equipment underscores our integral role in this national initiative. The planned extension of KAVACH to 44,000 km of railway lines by 2029, alongside the upgrading of 40,000 regular rail bogies to Vande Bharat standards, creates a sustained demand for our expertise and products.

• Growth in Defense Sector: Increasing budgetary allocations for defense, coupled with the "Make in India" impetus and a growing emphasis on self-reliance in defense manufacturing, will continue to drive demand for our specialized naval cables and other defense-related products.

• Emerging Green Mobility and Energy Sectors: Our proactive expansion into the production of solar and electric vehicle (EV) cables is in line with international and national commitments to use sustainable energy. The need for our specialty, high-performance cables will be greatly increased by the ambitious solar capacity ambitions in India and the exponential growth predicted for the EV industry.

• Technological Leadership and Innovation: Our strong in-house R&D capabilities, particularly in Electron Beam irradiation technology for cables and safety-critical embedded systems for railways (KAVACH, and future Electronic Interlocking systems), will enable us to maintain a competitive edge and adapt to evolving industry needs. Our partnership with RailTel further strengthens our market access and implementation capabilities.

5. INFRASTRUCTURE & FACILITIES

With a strong order book, growing institutional credibility, and technological partnerships, the Company is positioned to capitalize on infrastructure-led growth, especially in transport safety and national defense. Our integrated operations are supported by state-of-the-art facilities:

• Manufacturing Facility (Basma, Mohali, Punjab): This facility houses our Electron Beam Irradiation Centre, polymer compounding unit, copper processing lines, high-speed extrusion lines (Polyethylene and Silicone), and comprehensive in-house testing laboratories (fire, smoke, thermal, mechanical, electrical, etc.). It is approved by RDSO, DGQA, and Indian Register of Shipping.

• Railway Signaling & Embedded System Design Centres (Bengaluru, Karnataka & Hyderabad, Telangana):These specialized facilities serve as a hub for embedded system design, software engineering, and the development of cutting-edge railway technologies such as KAVACH and EI. We have advanced testing and simulation facilities for safety-critical systems, as well as automated electronic manufacturing lines.

6. INTELLECTUAL PROPERTY

We acknowledge the vital role that intellectual property plays. Our logo is registered as a trademark. Our ATP system was created strictly in accordance with requirements of Railways and SIL-4 standards. The Company has developed several unique designs & methodologies that will foster further innovation in our existing & new Products. Our technological expertise is a great asset, especially when it comes to safety-critical systems, and we take several precautions to safeguard our unique data, such as confidentiality agreements and access restrictions.

7. RISK MANAGEMENT

Quadrant Future Tek Limited is exposed to a variety of risks inherent in its business operations and the industries it serves. We maintain a robust risk management framework to identify, assess, and mitigate these risks.

Key Internal Risk Factors:

• Dependence on a Single Manufacturing Facility- Our companys operations currently rely on a single manufacturing unit located in Basma, Mohali. This centralized production setup increases vulnerability to operational disruptions caused by equipment failure, accidents, or natural disasters, potentially affecting output and financial performance. To minimize this risk, we have implemented comprehensive safety protocols, preventive maintenance schedules, and contingency response mechanisms. Additionally, strategic discussions are underway for capacity expansion and diversification of manufacturing locations to reduce dependency on a single site.

• New Business Segment Performance: Our companys recent foray into the Train Control Systems segment, particularly in the KAVACH automatic train protection domain, involves risks associated with scalability, technology adoption, and successful integration—areas still nascent for the organization.To address these challenges, we have established two dedicated R&D centers and engineering team for TCAS projects, onboarded domain experts in Hyderabad and Bengaluru. Pilot implementations are carefully monitored to gather operational insights and improve reliability before full-scale rollouts.

• Customer and Supplier Concentration: A considerable portion of the companys revenue is derived from a limited group of customers, including Indian Railways and Defense PSUs. Similarly, reliance on a few key raw material suppliers could disrupt operations if orders are delayed or canceled. The company is actively diversifying its customer base by exploring private sector opportunities in the cable segment. On the supply side, multiple vendor qualification processes and alternate sourcing arrangements are in place to ensure continuity of raw material procurement.

• Quality Compliance and Customer Audits: Our companys products serve safety-critical applications, making it essential to meet rigorous quality standards and clear frequent audits from customers. Any failure in compliance could lead to order loss, financial penalties, or reputational harm. Our company maintains internationally certified quality systems (such as ISO and IRIS) and employs end-to-end quality control processes, including our in-house Future Tek Laboratory accredited by NABL and digital traceability systems. Regular training and internal audits further reinforce quality assurance.

• Technology Obsolescence and R&D Investment Risk:

Rapid advancements in rail technologies and evolving connectivity protocols create constant pressure to maintain technological relevance. Investments in research and development, though essential, pose financial risks if they fail to result in commercially viable solutions or widespread customer adoption.We have implemented an agile and market-aligned R&D strategy that focuses on developing scalable, future-ready solutions. Regular benchmarking against international standards, partnerships with specialized research institutions, and structured, phased investment models help control risks. Moreover, the companys strong financial position and healthy cash reserves provide the flexibility to sustain long-term innovation cycles without compromising overall financial stability.

• Confidentiality and IP Protection: Our company possesses valuable know-how, including proprietary designs for systems like KAVACH, the absence of formal patents increases exposure to IP leakage or imitation by competitors. To mitigate this, we use strict confidentiality agreements, restricted access to sensitive data, and secure digital platforms. IP registration processes are being explored for critical innovations, while trade secret protection is enforced through internal compliance protocols and legal oversight.

Key External Risk Factors:

• Regulatory and Policy Changes: Indias changing regulatory and policy landscapes (such as labor laws, tax laws, and data protection) may impact business operations or result in higher compliance costs.

• Economic Uncertainties: Indias economy is subject to global and domestic economic, political, and social uncertainties, including inflation, interest rate volatility, and geopolitical tensions, which can impact consumer spending and industrial activity.

• Competition:Strong rivalry from both domestic and foreign firms, some of whom have more resources, may result in a decline in market share or profit margins.

• Raw Material Price Volatility: Prices of key raw materials (copper, polymers) are subject to global market fluctuations, which can impact profitability if cost increases cannot be fully passed on to customers.

8. CHALLENGES TO NAVIGATE

While the outlook is positive, we remain mindful of potential challenges, including intense competition, volatility in raw material prices, the need for continuous technological upgrades, and the capital-intensive nature of new projects. Our experienced management team is focused on mitigating these risks through strategic planning, agile operations, and strong stakeholder relationships.

Quadrant Future Tek Limited is poised for substantial growth, driven by innovation, strategic partnerships, and a deep commitment to quality and safety. We are confident in our ability to deliver sustainable value and contribute significantly to Indias technological and infrastructural advancement.

9. FINANCIAL PERFORMANCE OVERVIEW

The financial year 2024-25 was marked by moderate growth in the domestic market coupled with volatility in raw material prices. Against this backdrop, the Company delivered a stable financial performance, supported by prudent cost management, operational efficiencies, and a disciplined approach to capital allocation.

Revenue from Operations for the year stood at 1506.12mn, compared to 1517.57mn in the previous financial year. EBITDA for the year was 26.23 mn, translating into an EBITDA margin of 1.72% as against 24.03% in the previous year. The dip in margin was mainly on account of segmental loss under Trail Control Division wherein revenue expenditure continues to incur but earnings has not been started yet. The performance and results of Specialty Cable segment is positive and in line with earlier period. However, the overall profitability of the Company will be improved immediately, once the business activity of Train Control Division will commence in the coming period, during FY26. The financial performance reflects the Companys resilience in navigating external challenges, its focus on profitability and its commitment to long-term value creation for stakeholders.

Particulars	FY 2024-25	FY 2023-24
	(INR in Millions)	(INR in Millions)
Total Income	1529.40	1518.49
Revenue from Operations	1506.12	1517.57
EBITDA	26.23	364.93
EBIDTA Margin	1.72%	24.03%
PAT	-196.75	116.24

10. KEY FINANCIAL RATIOS:

Particulars	FY 24-25	FY 23-24	Change (%)	Reason for Change
Current Ratio	4.13	1.19	245.89%	Increase in Current Assets due to Increase in Cash and cash Equivalent from IPO proceeds received during the year and not utilized till year end
Operating Margin Ratio	-13.80	16.30	-30.1 %	Sharp increase in operating costs, particularly raw material consumption, employee costs, and other expenses, while revenues remained stagnant. Higher depreciation expense arising from capitalization of new assets. Together, these factors outweighed the stable revenue base, leading to a negative operating margin.
Interest Coverage Ratio	-2.41	5.78	-141.70%	The decline in the Interest Coverage Ratio from 5.78 in FY 2023-24 to –2.41 in FY 2024-25 is primarily due to a sharp fall in EBIT caused by higher operating expenses (raw materials, employee costs, depreciation, and other expenses). Additionally, finance costs increased by 78% ( 43.14 Cr to 76.75 Cr), further pressuring the companys ability to service its debt. As a result, the company moved from a strong interest coverage position to a negative ratio, indicating financial stress.
Debt-Equity Ratio	0.29	1.75	-83.66%	Increase in Equity due to Increase in Share Capital
Debt Service Coverage Ratio	0.07	2.83	-97.60%	Decrease in level of EBIDTA
Return on Equity	-11.43	28.56	-140.01%	Decrease in net profit
Inventory Turnover Ratio	3.16	4.68	-32.50%	Increase in Average Inventory
Trade Receivables Turnover Ratio	3.46	5.49	-37.04%	Increase in Average Trade receivables level due to high sales during last month
Trade Payables Turnover Ratio	14.28	13.65	4.57%	NA
Net Capital Turnover Ratio	1.20	16.84	-92.90%	Increase in Average Working Capital due to Increase in Cash and Cash Equivalent with sale level of sales
Net Profit Ratio	-13.06%	7.66%	-270.56%	Due to Net losses during the year
Return on Capital Employed	-0.06	0.24	-123.88%	Due to negative EBIT

11. INTERNAL CONTROL SYSTEMS AND THEIR

ADEQUACY

The Company has in place a robust internal control system, commensurate with the size, scale, and complexity of its operations. These controls are supported by well-documented policies and standard operating procedures that govern key business processes. The internal control framework is designed to ensure the orderly and efficient conduct of business, including adherence to internal policies, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.

In compliance with Section 138 of the Act and the applicable provisions of the SEBI Listing Regulations, the Company has established a structured Internal Audit function. The scope, authority, and functioning of the internal audit are defined and reviewed periodically by the Audit Committee. Internal audits are conducted at regular intervals to assess the effectiveness of operational and financial controls and to provide assurance on the design and operating effectiveness of internal systems.

The internal audits during the year focused on key functional areas such as inventory management, stock, Human Resources and operational efficiency. The audit findings were presented to the Audit Committee on a quarterly basis, along with managements responses and action plans. Follow-up mechanisms are in place to ensure the timely implementation of corrective measures.

12. HUMAN RESOURCES

As a people-centric organization, we strongly believe in nurturing a culture that enables the growth, well-being, welfare and career progression of our employees. We have a company-wide ethos of caring and sharing with our people and continue to invest in their learning and development on a regular basis.

We also remain consistently focused on being connected and engaged with our employees to keep them motivated and inspired, treating them as equal partner in our growth journey.

As of March 31, 2025, Quadrant employed 315 professionals across various domains including corporate operations, engineering, R&D, systems design, and manufacturing. The company has worked hard to build a culture of collaboration, innovation, and operational discipline. Training programs in embedded systems, safety protocols, and installation practices were conducted during the year.

13. CAUTIONARY STATEMENT

This Management Discussion and Analysis section contains forward-looking statements relating to the future performance, strategic initiatives, plans, and objectives of Quadrant Future Tek Ltd. These statements are based on current expectations, assumptions, and projections, which are inherently subject to change due to various internal and external factors.

Actual results may differ materially from those expressed or implied in these statements due to factors such as changes in market dynamics, regulatory developments, economic shifts, geopolitical events, supply chain disruptions, or technological advancements.

While the company strives to achieve its stated goals through robust planning and execution, unforeseen challenges may impact the final outcomes. Therefore, stakeholders are advised to interpret such forward-looking statements with discretion and not base critical decisions solely on these projections.