Sattrix Information Security Ltd Management Discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on 31st March 2025.

BUSINESS OVERVIEW

Sattrix Information Security Limited is engaged in the development and delivery of customer-focused cybersecurity solutions, providing end-to-end services to enterprises in India, the USA, the Middle East (UAE), and Malaysia. With over ten years of operational experience, the Company has established itself as a reliable partner in delivering a comprehensive range of cybersecurity offerings. The Company assists organizations in securing data from unauthorized access and mitigating security threats. Its solutions are designed to address data privacy risks and to ensure that business processes remain secure and uninterrupted. Based on specific client requirements, the Company designs and implements data security solutions for both cloud and on-premises environments. Leveraging advanced technologies, these solutions are developed to be agile, support ongoing enhancements, and adapt to changing client requirements.

GLOBAL CYBER SECURITY INDUSTRY

The global cyber security market size was estimated at USD 227.59 billion in 2025 and is projected to reach USD 351.92 billion by 2030, growing at a CAGR of 9.1% from 2025 to 2030.

(Source: Cyber Security Market, Markets & Markets Cybersecurity Market Size, Share, Growth & Forecast [2030]! https://www.marketsandmarkets.com/Market-Reports/cyber-security-market-505.html)

Figure 1: North America Security Market Size

(Image Source: Fortune Business Insights: Cyber security market Published on April, 2024 URL: https://www.fortunebusinessinsights.com/industry-reports/cyber-security-market-101165)

CYBERSECURITY TRENDS

1. ! Automotive Cybersecurity Threats

Connected and autonomous vehicles face risks from hackers exploiting Bluetooth, Wi-Fi, and onboard systems to gain control or access sensitive data. With self-driving technology growing, robust security measures for automotive systems are critical.

2. ! Artificial Intelligence in Cybersecurity

AI and machine learning enhance threat detection, automate security processes, and improve incident response. However, attackers also use AI to bypass defences, making ongoing development of AI-driven security tools essential.

3. ! Mobile Devices as Prime Targets

The widespread use of smartphones for banking, communication, and data access increases exposure to malware and phishing. Mobile-specific threats are rising, requiring stronger mobile security strategies.

4. ! Cloud Security Challenges

While cloud providers offer strong protections, vulnerabilities often stem from misconfigurations, phishing, or user errors. Continuous monitoring, proper configuration, and timely updates are key to securing cloud environments.

5. ! Persistent Data Breaches

Even minor vulnerabilities can lead to major breaches. Compliance with frameworks like GDPR and CCPA, along with proactive security measures, is necessary to safeguard sensitive data.

6. ! IoT Security in the 5G Era

5G connectivity expands IoT adoption but increases the attack surface. Manufacturers and organizations must address security flaws in IoT hardware, software, and network architecture.

7. ! Automation in Cybersecurity

Automation accelerates threat detection and response, reducing the burden on security teams. Integrating automated tools into development processes improves software security and operational efficiency.

8. ! Targeted Ransomware Attacks

Industries reliant on specific systems are vulnerable to ransomware, as seen in the WannaCry attack on healthcare. Strong backup strategies, patching, and proactive monitoring are critical defences.

9. ! State-Sponsored Cyber Warfare

Nation-state actors increasingly target critical infrastructure, elections, and industrial secrets. Geopolitical tensions are driving more sophisticated and damaging cyber operations.

10.! Insider Threats

Employee mistakes and malicious insiders can cause significant breaches. Regular awareness training and access controls are essential to reduce risks.

(Source: Top Ten Cybersecurity Trends in 2024 Published on April, 2024 URL: https://www.simplilearn.com/top-cybersecurity-trends-article )

CYBER SECURITY INUDSTRY IN INDIA

India Cybersecurity Industry Market Size

Revenue in the Cybersecurity market is projected to reach US$2.90bn in 2024. Cyber Solutions dominates the market with a projected market volume of US$1.51bn in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 13.31%, resulting in a market volume of US$4.78bn by 2028. In global comparison, most revenue will be generated in the United States (US$78,310.0m) in 2024.

(Source: Statista report on Cybersecurity India 2024 Url: https://www.statista.com/outlook/tmo/cybersecurity/india)

The India Cybersecurity Market report covers different areas such as solutions (including application security, cloud security, and more) and services (such as professional services and others). It looks at deployment modes like cloud and on-premise, and studies various industries such as BFSI, healthcare, IT and telecom, industrial and defense, retail and e-commerce, and more. It also considers both large enterprises and SMEs. The market forecasts are given in terms of value (USD).

•! Digital India and Enterprise Modernization Driving Cybersecurity Investments

The Digital India program has rapidly digitized citizen services, expanding the risk of cyberattacks and making security a key budget priority for ministries and states. UPI now processes over 15

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billion transactions monthly, pushing banks to adopt advanced authentication and real-time fraud detection. Surveys show 60% of Indian companies plan to increase security spending in 2025, higher than the 47% global average. Zero-trust measures are becoming standard in modernization projects, speeding up purchases for identity, cloud, and data protection tools.

•! UPI and Real-Time Payments Boosting Identity & Fraud Protection Needs

UPIs convenience has also brought more cyber threats, with over 2,500 incidents reported in late 2024. Banks are responding with multi-factor authentication and behavioral biometrics, driving demand for identity and access management solutions. Regulators now favor continuous monitoring over occasional audits, creating more opportunities for fraud analytics providers.

•! DPDPA and CERT-In Compliance Pushing Security Budgets Up

Indias DPDPA can fine companies up to INR 500 crore for personal data breaches, requiring encryption, log retention, and six-hour incident reporting. CIOs are now budgeting for breach notification tools, key management, and impact assessments. New rules from January 2025 are locking in compliance budgets, increasing demand for managed security services with audit-ready dashboards.

•! 5G and IoT Expanding the Attack Surface

Nationwide 5G is connecting millions of devices, from industrial sensors to smart meters, with weekly cyberattacks already topping 3,300 in India. Telecom companies are adding security gateways, and manufacturers are using tools to map operational tech networks. This IT-OT convergence is boosting sales of platforms that can monitor both industrial and cloud systems.

(Source: Mordon Intelligence article titled India Cybersecurity Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028) Url: https://www.mordorintelligence.com/industry-reports/india-cybersecurity-market)

OUR SERVICES

We offer a comprehensive range of cybersecurity services, tailored to meet the unique requirements of each client. Our services are designed to help organizations identify, assess, and mitigate cyber risks effectively.

1. ! ASSESSMENT SERVICES

Our assessment services help clients understand their cybersecurity posture and identify potential vulnerabilities. These services are customized based on a detailed risk assessment of the clients environment. Key solutions include:

•! Vulnerability Assessment

We provide thorough vulnerability assessments to help clients understand security risks across their digital systems. With new threats emerging continuously, our service equips organizations with the knowledge and awareness needed to manage potential risks effectively.

•! Penetration Testing Services

Our expert penetration testing analysts simulate real-world attacks to evaluate the security of your IT infrastructure. We also provide guidance on necessary procedures and investments to build a stronger, more secure data protection environment.

•! Red Teaming

Our Red Teaming service simulates realistic cyberattacks to test an organizations ability to withstand threats. Using the same tools and techniques as malicious actors, we assess the readiness of internal security teams and identify areas for improvement.

•! Anti-Phishing Solutions

We emulate phishing attacks to evaluate organizational resilience against social engineering threats. By sending controlled phishing emails, we identify which users may fall for such tactics, helping organizations strengthen awareness and implement preventive measures.

•! Application Security Services

Our application security services provide dynamic testing and expert consultation to protect applications against vulnerabilities. We help develop, integrate, and test security features within applications, ensuring they remain secure against evolving cyber threats.

2. ! IT INFRASTRUCTURE MANAGMENT

Our IT Infrastructure Security Consulting services address the evolving challenges organizations face in safeguarding their technology environments. We help businesses define and implement cybersecurity strategies tailored to their specific infrastructure needs.

By providing end-to-end visibility across modern IT environments, our services enable faster detection, effective response, and proactive threat blocking. We leverage the most suitable technologies for each organization to ensure optimal protection.

Our technology consulting approach moves beyond the traditional box-centric model, adopting a consultative framework that integrates advanced security solutions, including:

•! Threat Analytics

•! Security Information and Event Management (SIEM) •! User and Entity Behavior Analytics (UEBA)

•! Database Activity Monitoring (DAM) •! Privileged Access Management (PAM) •! Single Sign-On (SSO) for Cloud Applications •! Endpoint Detection and Response (EDR) •! Security Operations Center (SOC)

3. ! Hybrid IT Services & Solutions

We provide on-premise and cloud infrastructure to meet varied demands of business needs to achieve agility, compliance and efficiency. We have bucket of hybrid IT services & solutions to offer to our clients.

4. ! Managed Security Services (MSS)

We offer Managed Security Services that align with your business needs and cybersecurity goals. Acting as your outsourced cybersecurity team, we provide around-the-clock monitoring through an integrated security ecosystem. Our Security Operations Centre (SOC) operates 24/7 to manage and monitor your cloud, hybrid, or on-premises security solutions. We use a smart mix of tools and technologies to ensure reliable, high-quality protection.

Managed Services includes following solutions:

•! Vulnerability Management – Ongoing identification, assessment, and patching of security vulnerabilities.

•! SOC (Incident Response) – 24/7 monitoring and rapid response to detect and mitigate any type of cyberattack. •! Endpoint Detection & Response (Managed EDR) – Real-time monitoring of malware and other endpoint-related threats, with prompt risk mitigation. •! Help Desk / Technical Support – Dedicated support to resolve IT-related issues efficiently. •! IT Infrastructure Security – Comprehensive management of security solutions across your entire IT environment. •! Cybersecurity Compliance Services – Continuous compliance tracking, monitoring, and reporting to meet regulatory requirements.

DISUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Particulars	Standalone		Consolidated
	2024-25	2023-24	2024-25	2023-24
Revenue from	4,392.09	3,871.94	4,463.17	4,037.09
Operation
Other Income	43.28	96.18	4,506.75	96.20
Total Revenue	4,435.37	3,968.12	4,506.75	4,133.29
Other Operative and	3,710.86	3,568.62	3,801.9	4,098.54
Administrative
Expenses
Depreciation &	116.80	34.75	116.80	34.75
Amortization Expenses
Total Expenses	3,827.66	3,603.37	3,918.70	3,856.42
Profit Before	607.71	364.75	588.05	276.87
Extraordinary Items
Extraordinary Items	-	-	-	-
Profit Before Tax	607.71	364.75	588.05	276.87
Tax Expenses
(a) Current Tax	155.00	96.00	155.00	96.00
(b) Deferred Tax	11.31	(4.17)	11.31	(4.17)
Profit /(Loss) for the Year	424.27	268.18	404.61	180.31
Basic and diluted earnings per equity share	6.57	5.36	6.27	3.61

In terms of performance, FY 2024-25 has been a reasonable year. Company is focused on the task on hand in terms of better reliability of operations and more focussed market efforts. Our revenue from operations is Rs. 4,463.17 Lakhs. During the FY 2024-25, Company has earned profit of Rs. 588.05 Lakhs.

KEY FINANCIAL RATIOS

PARTCULARS	FINANCIAL YEAR 31st March, 2025	FINANCIAL YEAR 31st March, 2024	Variance (%)
Current Ratio	2.29 Times	1.53 Times	49.25%
Remark: Variation due to increase in current assets Debt-Equity Ratio	0.049 Times	0.02 Times	153.56%
Remark: Variation due to more increase in Equity Debt Service Coverage Ratio	17.48 Times	1.69 Times	934.32%
Remark: Variation due to more increase in Earning Return on Equity Ratio	17.87%	25%	(28.53%)
Remark: Variation due to more increase in Equity than Earning Inventory turnover ratio	NA	NA	NA
Remark: Not Applicable to the Company
Trade Receivables turnover ratio	3.31 Times	3.97 Times	(16.53%)
Remark: Variation due to decrease in debtors
Trade Payable turnover ratio	3 Times	3.51 Times	NA
Remark: Variation due to decrease in creditors
Net capital turnover ratio	3.45 Times	7.87 Times	(56.22%)
Remark: Variation due to more increase in Net Capital
Net profit ratio	9.66%	6.93%	39.47%
Remark: Variation due to increase in Net Profit
Return on Capital employed	22.33 %	27 %	(17.29%)
Remark: Variation due to decrease in Capital Employed
Return on Investment	NA	NA	NA
Remark: Not Applicable to the Company

OPPORTUNITIES

Technology, AI, and IT services are growing fast worldwide, which means more need for cybersecurity. This is a big chance for us to use our strengths, grow our business, and increase profits. In India, business is expanding quickly, and were also building our presence in the USA and UAE to tap into the Gulf market. Our current setup is ready to support this growth.

THREATS

1. ! More Competition

More players in the market may force prices down.

Our Edge: We already work with major clients and can deliver high-quality services at fair prices.

2. ! High Employee Turnover

The IT industry sees a lot of job switching, which can mean losing trained staff and needing to hire replacements. (Our Approach: We focus on retaining talent by offering training, career growth, and incentives. Our HR team is confident in keeping our key people.)

RISK & CONCERNS

1. ! Management of Employees and Employee Costs

Our growth and ability to win new projects depend on hiring, training, and keeping skilled IT professionals, especially project managers, engineers, and other senior staff. With high demand in the market and strong competition for talent, its not always easy to find or retain the right people. If key employees leave, we face higher costs to hire and train replacements, and it may take time for them to reach full productivity. The IT industry in India also has high attrition rates, which adds to the challenge.

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We invest in training, but we must constantly keep our teams skills up to date with changing technology, standards, and customer needs. Losing experienced talent or failing to replace them with equally skilled people can directly affect our performance.

2. ! Foreign currency fluctuations

A large part of our revenue comes from international clients, so we deal in multiple foreign currencies. This exposes us to exchange rate risks, which can impact our profits and cash flow. Although some expenses naturally offset these risks, we still face exposure when revenues and costs are in different currencies. Our main currency exposures are USD, Euro, GBP, and AED. We follow a foreign exchange hedging policy to reduce this risk, but changes in currency value can still affect our competitiveness in the global IT market.

3. ! Security breaches in Software, data and network infrastructure and fraud

As a cybersecurity company, we handle large amounts of sensitive customer data and operate critical network infrastructure. We also rely on third-party tools for secure transactions, but we cant fully control their security measures. Any breach, whether from hackers, malware, or insider threats, could lead to stolen data, system downtime, financial loss, contract termination, or damage to our reputation. We may need to spend significant time and money to prevent or address such breaches. Issues like malware could also cause fraudulent charges for customers, harming trust in our services.

HUMAN RESOURCES/ INDUSTRIAL RELATIONS

We see our employees as our biggest asset and a key part of our success. Our HR policy is designed to create a positive work environment, encourage growth, provide equal opportunities, and keep our team competitive while aligning their goals with the companys vision. Our HR team focuses on building and retaining a strong, talented workforce. We offer opportunities for both professional and personal growth, along with engagement and development programs to boost skills and productivity. As of March 31, 2025, our employee strength stood at 147. Industrial relations during the year were stable, peaceful, and cooperative.

INTERNAL CONTROL AND THEIR ADEQUACY

We have a strong internal control system that matches the size and complexity of our business. These controls help manage risks, keep financial information accurate, ensure timely reporting, protect company assets, and comply with all laws and regulations. Our internal auditors regularly monitor these controls, and the Audit Committee reviews their reports to make sure any issues are quickly corrected. Key findings are shared with management, which takes prompt action when needed.

CAUTIONARY STATEMENT

This report includes forward-looking statements about SILs future plans and financial performance. These are based on certain assumptions and are subject to risks and uncertainties. Actual results may differ significantly from what is stated here. Readers should not rely solely on these statements, as various factors could cause changes. This section should be read along with the assumptions, qualifications, and risk factors mentioned in the Management Discussion and Analysis of this Annual Report.

Date:- 02nd September, 2025	On behalf of the Board of Directors
Place:- Ahmedabad
	Sd/-	Sd/-
	Sachhin Gajjaer	Ronak Gajjar
	Managing Director	Whole Time Director & CFO
	DIN: 06688019	DIN: 07737921