Take Solutions Ltd Management Discussions

GLOBAL ECONOMY

Following an unprecedented series of shocks in the preceding years, global growth was stable yet underwhelming through 2024 and was projected to remain so in the January 2025. However, the landscape has changed as governments around the world reorder policy priorities. A series of new tariff measures by the United States and countermeasures by its trading partners have been announced and implemented, ending up in near-universal US tariffs and bringing effective tariff rates to levels not seen in a century. This on its own is a major negative shock to growth. The unpredictability with which these measures have been unfolding also has a negative impact on economic activity and the outlook and, at the same time, makes it more difficult than usual to make assumptions that would constitute a basis for an internally consistent and timely set of projections.

The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity.

India has displayed steady and robust economic growth while facing global challenges and geopolitical concerns and it continues to maintain its position as the fastest-growing major economy. India is estimated to clock in a GDP growth of 6.2 and 6.3 per cent in FY25 and FY26, respectively, backed by strong domestic demand, substantial infrastructure development initiatives, a spike in rural demand and effective government policy measures.

The manufacturing sector continues to expand sharply despite experiencing a slowdown for over a year, driven by significant domestic and global demand. Major government initiatives such as Make in India and the Production Linked Incentive (PLI) scheme further boost domestic production and enhance Indias competitiveness. Over the past two decades, India has consistently contributed a sizable share to global activity and growth. The nation continues to cement its position as a sought-after hub for innovation and entrepreneurship with its rapidly expanding start up ecosystem and its status as the worlds third most preferred destination for technology investments. As increased volatility and constraints on global capital flows have affected foreign direct investment (FDI) flows to India in the past few years, the country is focusing on deregulation to boost growth and attract investment by fostering a more business-friendly environment._ This involves streamlining regulatory requirements and simplifying administrative processes to improve the ease of doing business. The government also announced an increase in capital expenditure in the union budget for FY26 by earmarking around INR11.2 trillion (USD134.5 billion), emphasising its commitment to infrastructure-driven growth.

The Contract Research Organization (CRO) and life sciences domain continue to be impacted by consolidation, pricing competitiveness, and regulatory scrutiny. Additionally, technology-enabled solutions and digital platforms are reshaping industry operations. TAKE Solutions, due to non-compete restrictions in the CRO space following divestment of Ecron Acunova Limited, has been evaluating diversification opportunities into adjacent verticals through strategic partnerships and potential M&A transactions.

During FY 2025, no significant business activities were undertaken. Operations were largely limited to managing statutory obligations, handling litigation matters, and strategic restructuring. The Group successfully completed the divestment of Ecron Acunova Limited in November 2024, generating proceeds to meet debt servicing and statutory liabilities.

Revenue from continuing operations: Nil

Profit after tax (from continuing operations): Rs. 7.38 Mn

Discontinued operations contributed one-time gain from the divestment of Ecron Acunova Limited.

Divestment: Exit from Ecron Acunova Limited to streamline operations and unlock cash flows.

Restructuring: Focus on compliance, litigation management, and exploring non-compete business opportunities.

Future Growth Plans: Exploring M&A in allied sectors and technology-enabled services for long-term sustainability.

The immediate priority for the Group is to stabilize finances, resolve outstanding litigations, and close ongoing discussions for diversification. Successful execution of partnerships or acquisitions will be key to reviving revenue streams and restoring shareholder value. However, going concern risks persist until these plans translate into operational result

Going Concern Risk: Auditors highlighted material uncertainty on the Groups ability to continue as a going concern due to absence of operations, pending litigations, and unpaid statutory dues.

Operational Uncertainty: Absence of core business revenues in FY25 exposes the Group to solvency and continuity challenges.

Despite challenges, the Group is actively engaged in:

Identifying strategic partnerships or M&A opportunities beyond the CRO domain.

Diversification into new verticals leveraging digital and technology-driven platforms.

Focus on non-cash transaction structures to optimize resources and mitigate cash flow stress.

Below are some of the Key Financial ratios for Standalone financials:

The Groups internal financial controls were found to be inadequate, as noted by auditors. Strengthening of compliance, governance, and financial discipline remains a priority. The Board is committed to addressing gaps in oversight, regulatory adherence, and audit requirements in FY26.

Given limited operations, employee strength reduced significantly during FY25. The Company had two full-time employees on its payroll as on 31^st March 2025. The focus remains on retaining critical talent required for compliance, litigation, and strategic restructuring. Future expansion will necessitate rebuilding a skilled workforce aligned with new business priorities.

The Company continues to adhere to standard accounting policies under the Indian Accounting Standards (Ind AS), as applicable.