Trejhara Solutions Ltd Management Discussions

1. OVERVIEW:

Trejhara Solutions Limited ("Trejhara") financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") as prescribed under Section 133 of the Companies Act, 2013 ("the Act"), read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, and other provisions of the Act to the extent notified and applicable. The management of Trejhara accepts responsibility for the objectivity and integrity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis in order that the financial statements reflect in a true and fair manner, the state of affairs and operations. The forward-looking statements contained herein are subject to certain risks and uncertainties, including but not limited to the risks inherent in the Companys growth strategy, the external economic and business environment, and other risk factors stated in this report. The readers are cautioned not to place undue reliance on the forward-looking statements, which reflect Trejhara managements analysis only as on date hereof.

2. TREJHARA - BUSINESS UPDATES AND REALIGNMENTS

Trejhara stands at the cusp of a significant transformation, having completed the important milestone of amalgamating LP Logistics with the Company. This marks the culmination of a strategic journey initiated two years ago, when the Board decided to focus on the rapidly growing logistics sector - an area where Trejhara possesses strong technological capabilities and a deep understanding of industry dynamics. In line with this strategic pivot, non-core businesses were divested, enabling the Company to develop a robust profile as an end-to-end logistics solutions provider with comprehensive capabilities under one roof.

The next phase of growth will centre on consolidation, with Trejhara strengthening its position in existing markets while expanding into new geographies through organic growth, acquisitions, and strategic partnerships. In addition, Trejhara aims to broaden its presence across the wider logistics ecosystem and into allied and complementary sectors where its

logistics expertise can create meaningful value. With strong market conditions and a healthy financial position, Trejhara is well poised to enter a phase of sustained, long-term growth.

3. DEVELOPMENTS IN THE EXTERNAL ENVIRONMENT INDUSTRY TRENDS AND DEVELOPMENTS:

The global logistics sector continues to expand steadily, with the market valued at approximately USD 7.98 trillion in 2022. It is projected to reach nearly USD 18.23 trillion by 2030, representing a CAGR of 10.7% during 2023-2030. Growth is driven by the e-commerce boom, globalization, demand for faster delivery, and technological advancements like AI and loT, while challenges include infrastructure gaps and high logistics costs. The Asia-Pacific region is a key growth area, and third-party logistics (3PL) providers, especially those using road transport, currently lead the market.

The Asia-Pacific region remains the largest and fastest-growing logistics market worldwide, supported by strong manufacturing activity, cross-border trade expansion, and continuous modernisation of supply-chain infrastructure. Adoption of advanced technologies - such as automated material-handling systems, GPS- enabled fleet management, and biometric- driven security solutions - is enabling logistics companies to enhance efficiency, reduce lead times, and improve overall service quality across the region.

In India, the logistics sector plays a pivotal role in national economic development and employment generation, supporting the livelihoods of over 22 million people. The industry is expected to create nearly 10 million additional jobs by 2027, underscoring its importance as a core driver of inclusive growth. As a foundational enabler of trade, manufacturing, and commerce, the sector is integral to Indias long-term aspiration of achieving scale, competitiveness, and sustainable economic progress. According to a study by a leading agency, the Indian logistics market was valued at around USD 250 billion in FY 2024. India has also demonstrated significant improvement on the global stage, rising six positions to rank 38 th out of 139 countries in the World Banks Logistics Performance Index (LPI 2023).

Within the domestic logistics ecosystem, transportation continues to dominate, with road transport accounting for nearly 66% of the total cargo movement by tonnage, followed by the railway network. This reliance on road logistics highlights the importance of ongoing investments in highway corridors, multimodal connectivity, and technology-led fleet optimisation.

The global SCM software market is expected to reach a compounded annual growth rate (CAGR) of 9-11% in the upcoming fiscal years. This growth is fuelled by businesses need for enhanced visibility, efficiency, and agility in their supply chain operations by constantly focusing on innovation in SCM software solutions and delivering cutting-edge software solutions for seamless management of entire supply chain.

The Companies are increasingly investing in SCM software to drive digital transformation. The integration of advanced technologies such as artificial intelligence (ai), Internet of Things (IoT), and block chain is enhancing the capabilities of SCM software. The Cloud-based SCM solutions are gaining traction due to their scalability, flexibility, and cost-effectiveness.

4. TREJHARA BUSINESS OFFERINGS:

Trejhara specializes in providing comprehensive supply chain management (SCM) software solutions designed to optimize and streamline the end-to-end supply chain process. Our offerings cater to various industries, including manufacturing, distribution, freight forwarding and logistics, aiming to enhance operational efficiency, reduce costs, and improve overall supply chain visibility.

Our products are designed to help organizations enhance their digital presence and improve customer experiences through interactive presentations and robust offline analytical capabilities. We tailor our solutions to meet the specific needs and objectives of our customers, partners, dealers, and agents.

SCMProFit -Our software allows you to streamline and enhance your logistics operations by improving efficiency and optimizing working capital. This will take control of your supply chain by streamlining and enhancing your logistics operations and gain an edge over competitors. SCMProFit product suite, with its integrated dimensions of supply chain visibility, control, collaboration and execution delivers a simple solution to optimize efficiencies and create a seamless supply chain.

Our offerings are designed to address a range of needs, including warehousing, freight forwarding, project logistics, manufacturing, distribution, supplier collaboration, and visibility. We aim to help organizations build a sustainable logistics and supply chain framework.

Our Offerings

Freight Forwarding - Through SCMProFit solution the freight forwarders can manage complete end-to-end execution from booking to billing. The solution caters to all multimodal shipments across the globe and is integrated with warehouse management and order management modules to enhance the scope of end-to-end operations. The solution also helps to derive the profitability at shipment, customer, and business unit level.

B2B Warehousing - SCMProFit has created an integrated warehouse management system which comprises various modules that can be independently deployed.

Project Logistics - Project Logistics has been streamlined through adoption of digital logistics platform. With the aid of SCMProFit solution, project logistics and off-shore inventory are managed accurately. It provides modules for planning, execution, order management, storage and exception management for different project sites.

Returnable Supply Chain - Our platform automates asset tracking, reporting, and documentation processes, saving customers time, and reducing errors. Customers gain real-time visibility into the location, status, and condition of their returnable assets throughout the supply chain. With instant access to accurate data, they can make informed decisions, optimize inventory management, and enhance operational efficiency.

Transportation & Distribution - Our SCMProFit solution helps in planning the most efficient routes considering factors like distances, traffic conditions, vehicle capacity, and delivery time windows to optimize routes and minimize costs. It allows users to select carriers based on predefined criteria such as cost, reliability, and service level agreements by facilitating bidding processes to choose the best carrier for each shipment.

E-commerce & Fulfilment - SCMProFit solution enables workflow customization and strategy configuration to automate accurate stock allocation, label printing for various last-mile delivery providers, location autosuggestions for picking, customized packaging, expedited quality control, and seamless handover to the last-mile delivery process.

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Vaccine Supply Chain - Our vaccine distribution platform enhances performance by ensuring vaccines are delivered in optimal VVM conditions, on time, and at the right place. It supports evolving immunization programs and crises with innovative supply chain strategies and technology for a more efficient distribution system.

Manufacturing - SCMProFits supply chain visibility, provides a platform to connect key entities in the supply chain. It improves supply chain visibility and helps set up control points thus having a direct impact on efficiency and service levels.

5. OPPORTUNITIES AND THREATS:

The demand for logistics services and solutions within the logistics ecosystem is experiencing rapid growth, driven by the escalating movement of goods and services across the globe. This surge is fueled by multiple factors, including the booming e-commerce sector and increased globalization. For Trejhara, this trend is highly promising, as the company has already developed robust supply chain management solutions. With plans to foray into the logistics business through a proposed merger with a leading logistics player, Trejhara is strategically positioning itself as a comprehensive end-to- end logistics service provider. This move will establish Trejhara as a formidable player in the industry, well-equipped to capitalize on the vast market opportunities that lie ahead.

The Indian supply chain management (SCM) sector is witnessing rapid evolution, creating substantial growth opportunities. As industries expand and modernize, the demand for advanced SCM solutions continues to rise. Trejhara is at the forefront of this transformation, delivering innovative products and cutting- edge digital tools designed to enhance the operational efficiency of businesses. Our solutions are tailored to meet the evolving needs of the market, empowering companies to streamline their supply chain processes and drive sustainable growth.

Trejharas supply chain enablement solution has gained significant traction across both small and large-scale industries in recent years. Recent global disruptions have highlighted the critical need for resilient supply chains, driving companies to invest in seamless software solutions that offer enhanced visibility, flexibility, and responsiveness.

The Indian supply chain management (SCM) software segment is set to continue its strong

momentum towards digitization and automation. In response to recent technological advances and evolving market demands, Trejhara is committed to investing in innovative solutions that elevate our software capabilities. Our focus will be on seamlessly integrating emerging technologies, enhancing automation processes, and delivering unparalleled supply chain visibility and resilience. With the market for our offerings expanding rapidly and demand on the rise, Trejhara is strategically positioned to capitalize on these opportunities and achieve robust growth in the coming years.

6. RISKS AND CONCERNS:

The chief risks and uncertainties facing the companys business include:

> The escalating geopolitical tensions and ongoing conflicts between certain nations have caused significant disruptions in global supply chains, leading to substantial challenges in international trade. If these conflicts persist or similar geopolitical events arise, they could pose severe threats to global trade, potentially destabilizing the logistics industry worldwide. The sustained volatility in supply chain dynamics and trade routes could result in increased operational costs, delays in delivery, and heightened risks for logistics businesses, thereby impacting their ability to maintain smooth and efficient operations across borders.

> The Company remains exposed to risks arising from global tariff wars and geopolitical uncertainties, which may disrupt supply chains and create volatility in trade flows. Prolonged or unexpected shifts in tariff regimes, import/export restrictions, or crossborder tensions could impact the movement of goods, increase operating costs, and affect demand within the logistics sector. Such external factors may lead to shortterm uncertainties in business volumes and operational planning until stability is restored.

> O perating across multiple geographies - including the Middle East to region-specific regulatory regimes, licensing requirements, customs compliance, and geopolitical developments. Any adverse regulatory changes, delays in approvals, or heightened geopolitical tensions could impact operational continuity, trade flows, and profitability in key markets.

> As part of its strategic transformation, the Company is pursuing selective acquisitions through a dedicated joint venture. While these initiatives are expected to unlock significant operational and commercial synergies, they inherently carry integration risks relating to culturalalignment,operational consolidation, technology integration, customer retention, and harmonization of processes. Effective governance, robust transition planning, and disciplined execution will remain critical to mitigate these risks

> Aeeping pace with a rapidly advancing technology landscape: The technology landscape is evolving at a rapid pace, and digital technologies are fast gaining adoption. The digital consumer is leading this change. For Trejhara to maintain its ability to stay competitive in the marketplace, we need to invest significantly to keep our offerings and talent in alignment with market and client expectations. All industry players face the same challenges. Customer attrition and failure to attract new business may result if Trejhara is not able to maintain its current level of innovation and product and service level execution. Trejhara aims to adopt a positive and proactive stance by doing two things - firstly, by launching newer, more relevant product offerings to market and secondly, improving upon its customer- centricity to be the partner of choice in areas such as digital innovation and Cybersecurity.

> Attracting and retaining talent is critical for any organization. Trejharas success hinges on our ability to attract and retain top talent and leadership. The departure of key personnel, particularly to competitors, could significantly affect our business operations. To mitigate this risk, we implement a risk- reward model for our senior management and managers, providing additional incentives to align their efforts with the companys objectives and drive our strategic goals forward.

> In an increasingly digitised world, businesses are exposed to various security threats, particularly concerning IT security and cyber security. Such risks, if they materialise, have the potential to impact service continuity for customers and cause other disruptions that can attract huge costs. The incidents of cyberattacks have increased multifold, and businesses are required to recognise these risks and devise response strategies to deal with the same. At Trejhara, the management

regularly reviews such risks and has put in place the necessary framework to mitigate them.

> Increasing competition: The SCM software market in India is intensely competitive, with a wide array of local and international players. To stay ahead, Trejhara must continually innovate and differentiate

itself. The company encounters significant competition from formidable competitors aiming to capture a share of Trejharas customer base. To navigate this competitive landscape effectively, Trejharas strategy focuses on delivering an outstanding

customer experience. By closely aligning with customers business objectives and striving to surpass their expectations, Trejhara aims to build strong, lasting relationships and secure its market position.

7. RESEARCH AND DEVELOPMENT:

During the year, the Companys R&D activities were aligned with its broader transformation into a fully integrated logistics platform following the recent merger and consolidation initiatives. The focus remained on harmonising diverse systems, developing unified digital workflows, and strengthening proprietary technology assets across transportation, warehousing, and last-mile delivery. Efforts were directed towards improving automation in key operational areas, and deploying data analytics to support predictive planning and real-time decisionmaking. These initiatives are expected to create a more scalable, technology-driven operating architecture and reinforce the Companys longterm competitiveness.

8. OUTLOOK:

The Company remains watchful of developments in the external environment, particularly tariff- related disruptions and ongoing geopolitical tensions that could affect global supply chains. The management continues to monitor these risks closely and will recalibrate business strategies, as necessary, to mitigate any potential impact on operations. Notwithstanding short-term uncertainties, the Company believes these external factors are largely transient, and the long-term growth potential of the logistics industry remains strong.

Following the completion of the merger, the Company is focused on consolidating its market position and pursuing sustainable growth opportunities. With its technological capabilities, strengthened financial profile and experienced

leadership team, the Company is well positioned to capitalise on the substantial opportunities within the sector. The Company will continue to innovate and invest in future expansion initiatives, and the proposed fund-raising plans are expected to support the next phase of growth. Supported by favourable internal factors and a large addressable market, the overall outlook remains robust.

DISCUSSION ON CONSOLIDATED FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE (CONTINUING OPERATION)

Revenue from Operations: Our revenues are derived from Software Service and Freight Forwarding and Other Operating Income. During the year, the total revenue from operations was 5 11,575.38 Lakhs (Restated) against 5 7060.48 Lakhs (Restated) for the previous year.

Operating and Other Expenses

Our operating and other expense comprises of Software Services Charges, Freight Handling and Other Operating cost, Administration and other general functions, travelling, communication, legal and professional charges, rent, repairs and maintenance, recruitment and training and other allocated infrastructure expenses.

During the year, the operating and other expense were 5 9,107.27 Lakhs as against 5 4,692.022 Lakhs in the previous year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other income.

During the year, our operating Profit was

5 1377.33 Lakhs as against 5 1304.54 Lakhs for the previous year.

Employee Benefit Expenses

During the year, the Employee Cost was

5 1,745.74 lakhs as against 5 1377.80 Lakhs in the previous year

Depreciation and Amortisation

The Depreciation and Amortisation on Property Plant & Equipment (PPE) and Other Intangible Assets and Right to Use Assets was 5 400.12 Lakhs for the year as against 5 409.33 Lakhs during the previous year. As percentage of revenue, it was 3.46 % and 5.90 % for the year and previous year respectively.

Other Income

Other Income primarily consists of interest income on Loans and Advance and Fixed deposits, Foreign exchange fluctuation gain and other miscellaneous income. Other income for

the year was 5 393.58 Lakhs compared to 5 117.73 Lakhs for the previous year.

Tax expense

Current tax expense was 5 224.81 Lakhs as against 5 151.84 Lakhs for the previous year. Deferred tax Charge/ (Credit) was 5 13.97 lakhs as against 5 (9.36 lakhs) lakhs for the previous year.

Profit/ (Loss) before tax (PBT)

Net Profit before tax from continuing operations for the year was 5 662.87 lakhs as against 5 1,693.13 lakhs for the previous year.

Profit/ (Loss) after tax (PAT)

Net Profit after tax from continuing operations for the year was 5 424.09 Lakhs as against 5 1550.67 Lakhs for the previous year.

Equity

Equity as at 31 st March 2025 Increased to 5 23,596.79 Lakhs as compared with 5 23,104.53 Lakhs as at 31 st March 2024.

Short-term and Long-term borrowing including Current maturities of long-term borrowings

The total short-term and long-term borrowing as at 31 st March 2025 was 5 680.06 Lakhs as against 5 252.31 as at 31 st March 2024.

Trade Payable and other current liabilities excluding Current maturities of longterm borrowings

The total Trade Payable and other current liabilities (financial and Non-Financials) decreased by 5 327.52 Lakhs from 5 2,118.22 lakhs on 31 st March 2024 to 5 1753.70 Lakhs on 31 st March 2025.

Property, Plant and Equipment (PPE), Intangible Assetsand Intangible Assets under development

The Net Block of PPE, Right of Use Assets, Goodwill, Intangible Assets and Intangible Assets under development decreased by 5 206.97 Lakhs from 5 3,416.37 Lakhs as on 31 st March 2024 to 5 3,209.39 Lakhs on 31 st March 2025.

Non-current Investments (Net)

There was no cash Sale-Purchase in NonCurrent Investments.

Other Non-Current Assets (Financials and Non Financials)

There was a Increase in Long-term loans and advances from 5 8,753.14 on 31 st March 2024 to 5 8,853.14 Lakhs on 31 st March 2025.

Trade receivables

Trade receivables as on 31 st March 2025 was 5 2,884.73 Lakhs against 5 2,438.65 Lakhs on 31 st March 2024. In the opinion of management, all the Trade receivables are good, recoverable and necessary provision has been made for debts considered to be bad and doubtful. The level of receivables is normal and is in tune with business requirements and trends.

Cash and cash equivalents

The cash and bank balances lying with the company as on 31 st March 2025 were 5 471.87 Lakhs as against 5 265.52 Lakhs in the previous year.

Key Financial Ratios (Continuing Operation)

Sr no.	Consolidated Ratio	31 March,2025	31 March,2024	Change in %	Reasoning
1 Debtors Turnover Ratio		4.01	2.85	40.95%	Increase is mainly because of Increase in Revenue from Operations
2	Current Ratio	5.53	5.44	1.75%	No Significant Changes
3	Debt Equity Ratio	0.03	0.01	163.91%	Due to More Borrowing in Current year
4	Interest Coverage Ratio	19.96	7.87	153.82%	Higher Profit availability to covered Interest as compared to Previous year
5	Operating profit margin	11.9%	18.8%	-36.68%	Decrease is mainly due to Increase in Operating Cost as compared to Revenue
6	Net Profit Margin	3.7%	22.3%	-83.60%	Decrease on account of Exceptional Gain in the previous year.
7	Return on Net Worth	1.8%	6.7%	2.4%	Decrease on account of Exceptional Gain in the previous year.

9. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Directors Report section in the Annual Report discusses the adequacy of our internal control system and procedures.