Senthil Infotek Ltd Management Discussions

ANNEXURE-2

Industry structure and developments:

IT Industry is the most fast paced growing industry globally. People are transmitting from traditional business models to digital and software-based business models. In every industry Software and computing technology are transforming businesses around the world in very profound and fundamental way. Digital and Software based business models are preferred in every industry and that is why the IT industry is growing. Indian ITs core competencies and strengths have attracted significant investments from major countries.

Many companies are now choosing applications hosted in the cloud for their day-to-day operations. For example, according to statistics provided by hostingtribunal.com, 60% of computing workloads were running in the public cloud in 2019. Similarly, 94% of enterprise workloads are expected to be processed by cloud data centers in 2021. Companies are also opting for cloud-based data storage; thus boosting the demand for IT services.

Opportunities and Threat:

The main aim of the Company is to provide quality, innovative and good standard services to its customers. Your Company constantly focuses on its development, providing efficient and quality services and accurate and timely services at the scale that it operates. It always respects and encourage new ideals, innovative approaches and try to incorporate them into its services. It looks forward to create a healthy market for its customers to provide them Information and Technology services, digital services and other IT services as per the new market opportunities.

In the normal course of business, the Company is exposed to certain key risks like volatile global political and economic scenario, Restrictions on global mobility, location strategies, business model changes, litigation risks, currency volatility, breach of data privacy and protection, credit risks, risks associated with competition, Non-compliance to complex and changing global regulations. In any business, risks and prospects are inseparable. However as a responsible Management, the Company takes necessary steps to minimize the risks and maximize returns to its stakeholders. The risk Management policy of our Company also ensures mitigation of risks and smooth working of the functions of the Company.

Segment-wise or product-wise performance:

During the year under review, the Company has achieved the turnover of Rs. 10.85 lakhs for the Financial Year ended 31.03.2025 as against Rs. 11.20 lakhs for the Financial Year ended 31.03.2024. The loss after tax stood at Rs. -212.69 lakhs for the Financial Year ended 31.03.2025 as against the profit of Rs. 0.39 lakhs for the Financial Year ended 31.03.2024.

Outlook:

Economic headwinds seem to be gathering for business in general, and for the technology industry specifically. But there are many regulatory incentives that may spur innovation and growth in 2025 and beyond. To survive and thrive, technology companies should rededicate their efforts to improving supply operations, modernizing infrastructure, and leveraging growth opportunities.

Heading into 2026, there is little precedent for projecting the future. The economy is showing some signs of stability, but there are lingering fears over continued challenges or further surprises. The Information Technology (IT) sector is moving at a rapid pace with innovations in technologies. Due to the Corona virus pandemic, organizations have now started shifting to invest in digital platforms and technology capacity to master future challenges. Until the pandemic hit, most onlookers expected that there was broad-based strength in the IT outsourcing market and that it would continue for the foreseeable future.

Risks and concerns:

The Company remains apprehensive of the market environment and the conditions of general economic slowdown and downturn, which is not allowing the contemporary markets to go into revival mode. Market buoyancy and fluctuating prices are key concerns, which are to be addressed appropriately to ensure projected growth.

Recent events have highlighted the importance of building organizational resilience, agility and adaptability. At the heart of any organizations resilience is its people, supported by enabling processes and technologies. The Company too has outlined its strategies well to bring out the best out of its work force in the trying circumstances and looks ahead for better results.

Internal control systems and their adequacy:

The Company has a good Internal Control system which is commensurate with its size and scale. It evaluates the adequacy of all internal controls and processes, and ensure strict adherence to clearly laid down processes and procedures. The Audit Committee of the Board of Directors regularly reviews the adequacy and effectiveness of Internal Control System.

The Company makes sure that all the compliances are maintained properly in written form and is well communicated to all the people working in our Company. Our processes work in a transparent manner to avoid any type of frauds and errors within the organization.

The Internal Control System of the Company takes care to provide reliable and accurate data that is necessary for decision making and to run business activity efficiently, safeguard the assets of the Company and ensures that rules and regulations are to be followed by the Business personnel. The Control Systems provide a reasonable assurance of recording the transactions of its operations in all material aspects and of providing protection against misuse or loss of Companys assets.

Discussion on financial performance with respect to operational performance:

During the year under review, the Company has achieved the turnover of Rs. 10.85 lakhs for the Financial Year ended 31.03.2025 as against Rs. 11.20 lakhs for the Financial Year ended 31.03.2024. The Loss stood at Rs. 212.69 lakhs for the Financial Year ended 31.03.2025 as against the profit Rs. 0.53 lakhs for the Financial Year ended 31.03.2024.

The Company looks ahead with hopes to continue its good run and sustained growth in the current financial year and years to follow. The Company is pushing up its marketing synergies to gain access to newer markets with its product innovation strategies, improvement in overall operations and introduction of new range of products in line with prevalent trends that will help it to sail well in the ensuing financial year.

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

Manpower is the biggest strength of any organization. Your Company has a meagre but skilled, highly motivated and well-trained set of human resources as the Company believe that a motivated and empowered workforce is the key to sustained competitive advantage. There are completely defined procedure when it comes to hiring of employees based on projects in hand, so that the requirement exactly meets with the qualification and skills of potential candidate. As information technology requirements are very dynamic with the changing business environment, continuous and appropriate training to the personnel are crucial so that their knowledge and skills never turn obsolete.

Industrial relations have become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of employees and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees and employers (management). The Company also has good relations with other companies in the similar stream of business and it shall be useful in understanding the market behaviour and phenomenon in depth and to stay updated with competitors both in growth and adoption of new technologies for cost effective operations.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor:

There are no significant changes in key financial ratios as compared to the immediately previous Financial Year.

Details of any change in Return on Net Worth as compared to the Immediately Previous Financial Year along with a detailed explanation thereto:

There is no change in return in net worth as compared to the immediately previous Financial Year.

Disclosure of Accounting Treatment:

The Company has not carried out any treatment different from that prescribed in Accounting Standards.

Disclaimer:

The above Management Discussion and Analysis contains certain forward looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, government policies and actions with respect to investments, fiscal deficits, regulation, etc. The shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forwardlooking statements become materially incorrect in future or update any forward looking statements made from time to time on behalf of the Company.

	For and on behalf of the Board
	Senthil Infotek Limited
	Sd/-	Sd/-
	Chellamani Pitchandi	Seetha Lakshmi Pitchandi
Place: Hyderabad	Managing Director	Director
Date: 04.09.2025	(DIN: 01256061)	(DIN: 02779034)