Saven Technologies Ltd Management Discussions

(forming part of Boards Report)

a. Industry structure and Developments

IThe IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the countrys GDP and public welfare. The IT industry accounted for 7.5% of Indias GDP, as of FY23 and is projected to hit 10% by FY25. As innovative digital applications permeate sector after sector, India is now prepared for the next phase of growth in its IT revolution. India is viewed by the rest of the world as having one of the largest Internet user bases and the cheapest Internet rates, with 76 crore citizens now having access to the Internet. The current emphasis is on the production of significant economic value and citizen empowerment, thanks to a solid foundation of digital infrastructure and enhanced digital access provided by the Digital India Programme. India is one of the countries with the quickest pace of digital adoption. This was accomplished through a mix of government action, commercial innovation and investment, and new digital applications that are already improving and permeating a variety of activities and different forms of work, thus having a positive impact on the daily lives of citizens.

Indian ITs core competencies and strengths have attracted significant investment from major countries and companies. India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Indias ITeS sector is set for substantial growth in 2025 with a 20% job increase, driven by AI, cybersecurity, and cloud computing roles surging by 75%. FY25 witnessed the industry strengthening its position as the global technology and innovation hub.

The Union Budget 2025, has unveiled a series of strategic initiatives aimed at strengthening Indias Information Technology (IT) and Information Technology Enabled Services (ITeS) sector. As a key contributor to Indias GDP and a major employment generator, the IT industry stands to benefit from new investments in artificial intelligence, digital infrastructure, and domestic manufacturing. These measures are expected to enhance innovation, drive competitiveness, and position India as a global leader in technology services. Key Announcements for the IT & ITeS Sector being, Establishment of AI Centre of Excellence, National Manufacturing Mission for IT Hardware, Infrastructure Development for IT Hubs, Focus on Research and Development (R&D), Addressing Emerging Risks &

Global Competitiveness, The Economic Survey 2025 has highlighted emerging risks that threaten the IT sectors sustained growth, particularly concerning taxation and global competition. To maintain Indias edge in the IT services market, industry experts recommend: Tax Reforms & Incentives for Startups.

Impact on Indias IT & ITeS Industry- The Union Budget 2025 sets the stage for a high-growth trajectory in Indias IT and digital services sector. Boost in AI-driven innovation, positioning India as a global AI hub. Expansion of domestic IT hardware manufacturing, reducing reliance on imports, Stronger digital infrastructure, enabling growth in cloud services, fintech, and remote work solutions, Increased foreign investment opportunities, especially in deep-tech and digital transformation solutions. (Source: Google) b. Opportunities, Threats, Risks and Concerns

The fintech sector in India continues to offer immense growth opportunities, supported by a large, digitally engaged population, increasing smartphone penetration, and government initiatives promoting financial inclusion and digital payments. A key development this year is the Reserve Bank of India (RBI) lifting restrictions on banking partnerships, which now enables Saven to collaborate with more financial institutions to launch co-branded credit card programs. This is expected to open a significant revenue stream, particularly as small and medium-sized businesses increasingly seek tailored financial products to manage their operations and customer loyalty programs.

While this regulatory shift presents strong upside, the Indian fintech landscape remains complex due to evolving RBI guidelines on data privacy, cybersecurity, and fraud prevention. Companies must continuously adapt their offerings to remain compliant without compromising innovation. Nonetheless, the potential for scalable digital financial solutions remains compelling, making India a high-potential market for Savens strategic expansion.

In contrast, the offshore business outlook, particularly in the United States, has become more volatile. The escalation of tariff wars and trade-related tensions has introduced a new layer of uncertainty that could disrupt existing offshore contracts and future opportunities. As U.S. firms recalibrate their global sourcing strategies, Saven may face headwinds in maintaining and growing its offshore client base. Moreover, broader economic concerns, including inflationary pressures and cautious technology spending, continue to weigh on the industry. Despite these global uncertainties, the demand for AI application development remains resilient. Businesses across industries are accelerating digital transformation initiatives, driving strong demand for AI-powered solutions that enhance efficiency and deliver customer value. Saven is strategically positioning itself in this space by investing in AI talent development and creating solution prototypes that embed AI into customers existing tools and platforms.

However, the AI domain also presents notable risks: high entry barriers, significant upfront investments, and fierce competition from both large tech players and agile startups. To mitigate these risks, Saven is prioritizing workforce upskilling and agile solution delivery to maintain a competitive edge. c. Outlook

Saven IT Services enters the current financial year with a cautious but optimistic outlook. While macroeconomic challenges persist-especially due to rising costs of talent and shifts in customer spending-there are promising developments on the domestic front. With the RBI lifting restrictions on banking collaborations, Saven is poised to benefit from a wave of new partnerships aimed at launching co-branded credit cards. This is expected to boost revenue and strengthen the companys position in the fintech segment.

At the same time, the offshore business environment remains uncertain. Escalating tariff wars and geopolitical tensions, particularly involving the United States, are creating instability in cross-border technology engagements. These headwinds could result in delayed projects, cautious client spending, or reallocation of outsourcing contracts. Additionally, clients are increasingly internalizing development roles and leveraging AI technologies to reduce dependency on traditional IT services-a trend that continues to pressure margins. In response, Saven is sharpening its focus on becoming an indispensable technology partner by deepening client engagement and expanding its value proposition beyond conventional service models. Investments in AI, workforce reskilling, and productized services aim to position the company for long-term relevance and resilience. While short-term challenges are likely to persist, Saven is taking proactive steps to adapt, grow, and maintain its strategic significance in a rapidly evolving technology landscape. d. Internal Control Systems and their adequacy

There are adequate internal control procedures and internal audit systems commensurate with the size of the company and nature of its business. The Management periodically reviews the internal control systems for further improvement. e. Discussion on financial performance with respect to operational performance

The financial statements have been prepared under the historical cost convention, on the basis of a going concern.

Disclosure of Accounting Treatment

The Companys financial statements for the year ended March 31, 2025 are prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

Financial Position as at March 31, 2025 Non-Current Assets (a) Fixed Assets

There has been an addition of Rs.22.16 lakhs to the gross block of fixed assets. The additions are mainly towards Hardware, computer software as well as infrastructure facilities. The entire capital expenditure was funded out of internal accruals.

(b) Capital work-in progress

The Company is developing software for fintech companies. The expenses incurred during the financial year 2024-25 amounting to Rs.134.40 lakhs shown under capital work - in progress. The entire capital expenditure was funded out of internal accruals.

(c) Investments

The Company Investment in Mutual Funds (Debt Funds) Net Asset Value (NAV) as on March 31, 2025 was Rs.784.75 lakhs as against Rs.724.70 lakhs as at March 31, 2024. During the financial year 2024-25, the Company did not invest any amount in the Mutual Funds.

(d) Loans

The Long term deposits as on March 31, 2025 amounting to Rs.2.17 lakhs includes Electricity Advance Consumption Deposit of Rs.2.08 lakhs.

Current Assets (a) Trade Receivables

The trade receivables were at Rs.308.07 lakhs as at March 31, 2025 as compared to Rs.222.84 lakhs as at March 31, 2024. These receivables are considered good and realizable.

(b) Cash and cash equivalents

The cash and bank balances as at March 31, 2025 stood at Rs.660.48 lakhs (including fixed deposits of Rs.636.63 lakhs) as against Rs.776.70 lakhs (including fixed deposits of Rs. 754.66 lakhs) as at March 31, 2024.

(c) Loans and Others

Other Current assets were at Rs.56.10 lakhs as at March 31, 2025 as compared to Rs.67.37 lakhs as at March 31, 2024.

Share Capital

There has been no change in the authorized, issued, subscribed and paid capital. The paid up Share Capital was Rs. 108.79 Lakhs as at March 31, 2025.

Other Equity

The company had at the beginning of the financial year an amount of Rs.550 lakhs in the General Reserve. During the financial year 2024-25 the company did not transfer any amount to Reserves.

There were no changes in Share Premium and Capital Reserve during the year and the same stood at Rs.189.47 lakhs and Rs. 46.86 lakhs respectively. Other Equity as at March 31, 2025 stood at Rs. 1,901.62 lakhs as compared to Rs. 1,737.23 lakhs as at March 31, 2024.

Trade Payables

Trade payables consist of payables towards purchase of goods and services and stood at Rs. 10.88 lakhs as at March 31, 2025 (Rs.12.21 lakhs as at March 31, 2024).

Other Financial Liabilities

Other Financial Liabilities included Unclaimed Dividends Rs.10.57 lakhs as at March 31, 2025 (Rs.9.60 lakhs as at March 31, 2024) and Unclaimed Reduction of Share Capital was Rs.11.58 lakhs as at March 31, 2025 (Rs.11.58 lakhs as at March 31, 2024).

Other Current Liabilities and Provisions

Other Current Liabilities included Statutory Remittances Rs.11.58 lakhs as at March 31, 2025. Provision for employee benefit was Rs.27.15 lakhs as at March 31, 2025.

Current Tax Liabilities (Net)

The Tax Liability was Rs.8.60 lakhs include other comprehensive income tax liability of Rs.16.66 lakhs as at March 31, 2025 as compared to Rs.24.98 lakhs include other comprehensive income tax liability of Rs.26.84 lakhs as at March 31, 2024.

Results of Operations

The total revenue for the year ended March 31, 2025 was Rs. 1494.67 lakhs as compared to Rs.1407.87 lakhs for the previous year. The Earnings before interest, tax, depreciation and amortization (EBITDA) for the year under review was Rs. 367.89 lakhs as compared to Rs.355.80 lakhs for the previous year. After considering depreciation, interest and Income tax the Net Profit was Rs.259.20 lakhs, as compared to Rs.249.36 lakhs for the previous year.

The Offshore Development & Services income for the year ended March 31, 2025 was Rs.1430.42 lakhs as compared to Rs. 1316.72 lakhs for the previous year. The other income included fixed deposit interest income of Rs. 44.40 lakhs as compared to Rs.52.33 lakhs in the previous year and Profit on Extinguished Investments (Mutual Funds) was -NIL- as compared to Rs.32.72 lakhs in the previous year. During the financial year ended March 31, 2025 favourable foreign exchange variance was Rs.7.85 lakhs as compared to Rs.5.10 lakhs for the year ended March 31, 2024.

Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2015) (Amendment) Regulations, 2018, the Company is required to give details of significant changes in key financial ratios.

Sr. No. Key Financial Ratios	Fiscal 2025	Fiscal 2024
1. Debtors Turnover	5.39	4.63
2. Inventory Turnover	--	--
3. Interest Coverage Ratio	--	--
4. Current Ratio	13.02	11.61
5. Debt Equity Ratio	--	--
6. Operating Profit Margin (%)	23.10	23.60
7. Net Profit Margin (%)	18.12	18.94
8. Return on Net Worth	12.89	13.51

f. Material developments in Human Resources / Industrial Relations front, including number of people employed

Being engaged in a people-oriented business, it has been the Companys endeavour to create and encourage talent by providing a good working environment, need based training, career growth plans and a competitive remuneration package.

FORWARD-LOOKING STATEMENTS

Some of the statements contained in the above discussion are of a forward-looking nature and it will be appreciated that the Company cannot guarantee that these expectations will be realized. Actual results and outcome may, despite efforts on the part of the Company, differ materially from those discussed.