Ceinsys Tech Ltd Management Discussions

ECONOMIC OVERVIEW

Industry Structure and developments

India Economy

Amidst global uncertainty, the Indian economy continued to demonstrate resilience and outperform most major economies. In FY 24-25, Indias GDP is estimated to have grown by 6.5%, driven by robust domestic demand, steady private investment, and strong contributions from the manufacturing and services sectors.

The countrys macroeconomic stability was supported by controlled inflation · retail inflation dropped to 1.55% in July 2025 · and a neutral monetary policy stance by the Reserve Bank of India. Large-scale infrastructure investments under programmes such as the National Infrastructure Pipeline and targeted government reforms further bolstered growth momentum.

Looking ahead, Indias growth outlook for FY 25-26 remains strong at 6.3-6.7%, underpinned by consumption growth, accelerating urbanisation, and an expanding digital economy. Continued policy focus on infrastructure, energy transition, and innovation- led industries is expected to enhance competitiveness and position India as a global economic leader over the next decade.

Key Factors Shaping Indias Economic Outlook

• Domestic Consumption and Investment: Indias youthful and expanding demographic base continues to drive robust domestic consumption across consumer goods, housing, and services. This momentum is further supported by government initiatives such as the National Infrastructure Pipeline and targeted labour and agricultural reforms, both aimed at catalysing private sector investment and enhancing competitiveness.

• Digital Transformation: Indias digital economy is witnessing rapid growth, fuelled by rising internet penetration, widespread smartphone adoption, and increased digital payments. Flagship initiatives like Digital India and large-scale investments in technology infrastructure are accelerating innovation in sectors such as e-commerce, fintech, and digital services, creating new opportunities for growth and productivity.

• Infrastructure Development: Sustained investment in infrastructure · spanning roads, railways, airports, and urban development · is strengthening connectivity, reducing logistics costs, and enabling long-term economic expansion. Programmes such as the Production Linked Incentive (PLI) scheme are further boosting domestic manufacturing capabilities and enhancing export potential in key sectors.

• Global Trade and External Environment: Indias deeper integration into global supply chains, particularly in pharmaceuticals, IT services, and manufacturing, continues to underpin its growth prospects. However, shifts in geopolitical dynamics, trade patterns, and commodity price volatility present ongoing challenges that could influence the trajectory of Indias economic performance.

• Global Economy

Despite challenging geopolitical conditions, inflationary pressures, and fluctuating commodity prices, the global economy showed resilience in 2024, with growth estimated at 3.1%. Developed economies sustained moderate recovery, aided by steady consumer demand and supportive fiscal measures, while emerging markets outperformed, driven by infrastructure investments and technology-led productivity gains.

• For 2025 and beyond, forecasts from the IMF indicate a marginal uptick in global GDP growth to around 3.2%, supported by easing inflation, stable interest rates, and targeted policy interventions. However, persistent geopolitical tensions, trade disruptions, and climate-related risks could temper momentum in certain regions.

Key Factors Shaping the Global Economic Outlook

1. Monetary Policy Adjustments: In FY 24-25, central banks in major economies balanced inflation control with growth support. Interest rate stabilisation and moderated asset purchase adjustments in the US, EU, and other regions have influenced capital flows, investment sentiment, and currency stability.

2. Geopolitical Uncertainties: Ongoing conflicts, trade disputes, and regional tensions continued to disrupt supply chains and investor confidence. Sanctions and shifting trade alignments remain significant risks to stability.

3. Technological and Digital Transformation: FY 24-25 saw accelerated adoption of AI, automation, and digitalisation, enhancing productivity across industries. Strategic investments in digital infrastructure and sustainable technologies are reshaping competitive advantages globally.

4. Sustainable Development Goals (SDGs): Climate action, energy transition, and inclusive growth remain high on the global policy agenda. Green investment flows and ESG-led business strategies are expanding as governments and corporations commit to net-zero pathways.

5. Global Trade Dynamics: Global trade recovery was uneven, with advanced economies stabilising faster than developing markets. Policy reforms in trade liberalisation, cross-border data flows, and digital trade frameworks are supporting resilience in supply chains.

Key Budget Announcements

1. Infrastructure Investment:

The Union Budget 2024 allocated ?11.11 lakh crore for capital expenditure, focused heavily on infrastructure development. This represents 3.4% of Indias GDP and is expected to generate a multiplier effect on sectors such as construction, logistics, and urban development · all of which align with CS TECH Ais engineering-led infrastructure intelligence solutions.

2. Support for MSMEs:

The Budget introduced measures to strengthen Micro, Small, and Medium Enterprises, including raising the Mudra loan limit to ?20 lakh and expanding mandatory onboarding to the TReDS platform. The establishment of an E-Commerce Export Hub is expected to open new avenues for MSME participation in global trade.

3. Employment Generation and Skill Development:

Initiatives like Scheme A, which offers a one-month wage subsidy to first-time employees in formal sectors, aim to benefit 2.1 million youth annually. New skilling programs will align workforce capabilities with evolving industry requirements, a development relevant to CS TECH Ais talent pipeline.

4. Energy Transition and Sustainability:

Policy and funding commitments were reinforced for renewable energy and sustainability initiatives, including investments in solar, wind, and green hydrogen projects. These align with the national push toward energy security and environmental responsibility.

Impact on CS TECH Ai

CS TECH Ai is strategically positioned to capitalize on the priorities outlined in the Union Budget 2024, aligning its expertise with national development objectives. Our leadership in geospatial intelligence, mobility engineering, and applied AI enables us to deliver technology-driven, outcomes-focused solutions across multiple growth sectors.

1. Infrastructure Development

Government investments in roads, railways, airports, and urban infrastructure open significant opportunities for our engineering and geospatial capabilities. From precision mapping to digital twin creation, our solutions can help authorities plan, execute, and monitor large-scale infrastructure with greater accuracy and efficiency. These capabilities directly support flagship initiatives such as the National Infrastructure Pipeline and Smart Cities Mission.

2. MSME Sector Growth

Expanded incentives for MSMEs present scope for tailored digital solutions that improve productivity and market access. Leveraging our expertise in e-commerce integration, GIS-driven asset management, and cloud-based platforms,

CS TECH Ai can equip MSMEs with tools to compete more effectively in global supply chains.

3. Employment and Skill Development

With government-backed skilling programs targeting millions of youths, CS TECH Ai can play a pivotal role by offering training in emerging domains such as AI-driven analytics, LiDAR data processing, and smart infrastructure management. These initiatives not only contribute to national skill-building goals but also strengthen our own talent pipeline.

4. Sustainability Initiatives

The focus on renewable energy, water conservation, and environmental resilience aligns closely with our sectoral strengths. Our work in AI-enabled water management, IoT- based monitoring for utilities, and smart energy infrastructure supports both climate objectives and operational efficiency for clients. By combining geospatial intelligence with sustainable engineering practices, we enable measurable environmental impact.

Looking Ahead

By aligning our sectoral expertise with government priorities, CS TECH Ai is positioned to drive high-value transformation in FY 24-25 and beyond. Our ability to integrate data, engineering, and AI ensures that we can not only respond to todays opportunities but also shape the next decade of Indias infrastructure and digital evolution.

Large-scale investments in urban and rural water networks, desalination, and treatment facilities are positioning India to meet future demand while improving efficiency and resilience.

I ndias water infrastructure was valued at USD 2.8 billion in 2025 and treatment chemicals market was estimated at USD 2.0 billion in 2024. The overall Water and Wastewater Management Market is expected to reach USD 4.0 billion by 2030 at a CAGR of 10.7% (2025-2030), driven by government- backed programs such as the Jal Jeevan Mission, AMRUT 2.0, and Smart Cities Mission, alongside increasing private participation.

Water Distribution and Infrastructure

Investments in pipeline modernization, pressure management, and leakage reduction remain priority areas for utilities. In 2025, 10 new municipal and industrial desalination projects with a combined capacity of 810 MLD are underway, backed by both public and private funding. Integrated water infrastructure projects now emphasize interoperability between asset monitoring systems, GIS mapping, and SCADA-based operations.

Water Conservation and Efficiency

Efficiency solutions, including smart meters, IoT-based leakage detection, and automated pressure management· are being scaled nationally. The market for water-efficient products and solutions is growing steadily, supported by government efficiency targets and corporate sustainability commitments.

Water Management and Analytics

AI-driven analytics platforms and digital twins are transforming water network operations, enabling predictive maintenance, demand forecasting, and resource optimization. Utilities are increasingly leveraging integrated platforms to manage assets across agriculture, manufacturing, and urban services.

Environmental and Sustainability Solutions

Circular water economy principles are gaining traction, with projects focusing on wastewater recycling, ecosystem restoration, and green infrastructure. Nature-based solutions and watershed management initiatives are being scaled in both urban and peri-urban settings, backed by multilateral funding and climate resilience strategies.

Energy

FY 2024-25 marked continued transformation in the power and energy sectors, driven by clean energy mandates, rapid technology adoption, and supportive policy frameworks. Indias focus on renewable capacity expansion, grid modernization, and energy efficiency is accelerating investment flows and reshaping the sectors competitive landscape.

Renewable Energy Growth

I ndias renewable energy capacity has crossed 220.1GW as of March 2025, positioning it on track to meet the 500 GW target by FY 29-30. The pipeline includes significant solar, wind, and hybrid projects, supported by central schemes such as the Production Linked Incentive (PLI) for high-efficiency solar modules and Viability Gap Funding for offshore wind. Globally, renewable energy growth remains resilient, with installed capacity projected to surpass 5,500 GW by 2030.

Smart Grid and Digitalization

Smart grid deployments in 2025 are integrating AI, IoT, and big data analytics to improve load balancing, enable real-time outage management, and enhance consumer engagement. Indias AMI (Advanced Metering Infrastructure) installations have crossed 22 million smart meters, supported by the Revamped Distribution Sector Scheme (RDSS). Grid automation is driving efficiency gains, loss reduction, and operational resilience.

Mobility Electric Vehicle (EV) Infrastructure

The EV ecosystem continues to be a high-growth segment, underpinned by aggressive policy support, rising adoption rates, and expanding charging networks. The global EV charging infrastructure market is projected to reach USD 140 billion by 2028, driven by regulatory mandates, consumer demand for sustainable mobility, and technological advancements in fast-charging systems.

In India, government initiatives such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme are providing critical subsidies for EV adoption and infrastructure development. The Union Budget has earmarked ?800 crore for the establishment of public fastcharging stations, aimed at strengthening nationwide coverage and reducing range anxiety.

Private and public investments in charging stations, batteryswapping facilities, and grid integration technologies are accelerating deployment. The focus is shifting toward ultrafast charging, interoperability standards, and renewable energy integration to ensure sustainable operations. With urban mobility policies increasingly prioritizing zero-emission transport, the EV infrastructure market is poised for sustained expansion through FY 29-30, creating opportunities across the supply chain from hardware manufacturing to energy management solutions.

Architecture, Engineering & Construction (AEC)

The AEC sector in India is on a sustained growth trajectory, supported by major infrastructure investments, urban development programs, and technology adoption. In FY 24-25, the industry continues to benefit from strong government spending on roads, railways, metro projects, and smart city initiatives, alongside increasing private sector participation.

Government programs such as the National Infrastructure Pipeline (NIP) with a planned investment of ?111 lakh crore (~USD 1.5 trillion) by 2025 remain central to sector growth. Key projects include the development of 100 smart cities, expansion of urban transport systems, and upgrades to critical civic infrastructure. These investments are unlocking significant opportunities for engineering, design, and project management services.

Globally, the construction sector is projected to reach USD 15.5 trillion by 2030, driven by emerging markets in Asia, Africa, and Latin America. Within India, the focus is shifting toward smarter, more efficient construction using Building Information Modelling (BIM), advanced materials, and modular construction methods, enabling faster delivery and cost optimization.

The real estate segment, which is intertwined with AEC growth, is also witnessing steady demand from residential, commercial, and industrial projects. While occasional market fluctuations persist, the long-term outlook remains positive, underpinned by demographic trends, urbanization, and the push toward sustainable, technology-enabled infrastructure.

5. Geospatial

The global geospatial market size is projected to reach USD 1.40 trillion by 2030, growing at a CAGR of around 14-15%, driven by accelerating adoption of spatial technologies across industries and ongoing investments in digital infrastructure. The market covers a wide spectrum of solutions and services, including Geographic Information Systems (GIS), satellite imagery, remote sensing, GPS, LiDAR, and location-based analytics · all critical to sectors such as urban planning, mobility, agriculture, infrastructure development, environmental monitoring, and disaster management.

Despite slight revisions from earlier forecasts, the sector continues to demonstrate strong growth prospects, fueled by increasing integration of geospatial capabilities into mainstream business processes, advancements in AI/ML- based spatial analytics, and the proliferation of IoT devices generating location data.

Key Growth Drivers

Technology Convergence: Merging geospatial data with AI, big data analytics, digital twins, and real-time IoT feeds, enabling predictive insights and operational optimization.

Smart Infrastructure & Urban Development: Government- backed smart city programs, infrastructure digitalization, and integrated asset management solutions are creating sustained demand.

Private Sector Investment: Expanding applications in precision agriculture, logistics optimization, renewable energy siting, and utilities management.

Challenges

Persistent issues such as data privacy compliance, interoperability between systems, and regulatory harmonization remain. However, collaborative frameworks between industry stakeholders, policymakers, and standards bodies are steadily addressing these constraints.

Outlook

Over the next 3-5 years, Indias geospatial sector is expected to benefit from the National Geospatial Policy, faster adoption of drone-based surveys, and expanded use of high-resolution imagery in infrastructure, defense, and environmental applications. Global markets will continue to see increased demand for realtime geospatial intelligence, positioning geospatial solutions providers as integral partners in digital transformation across public and private sectors.

Geospatial Industry Trends for FY 2024-25

In FY 24-25, the geospatial industry is undergoing accelerated transformation, driven by technological innovation, evolving market requirements, and expanding cross-sector applications. Key trends include:

Reality Capture Growth

Advancements in LiDAR, photogrammetry, high-resolution satellite imagery, drone mapping, and terrestrial laser scanning are redefining spatial data acquisition. These technologies enable highly accurate replication of physical environments, generating detailed 3D models and georeferenced datasets critical for design, engineering, and decision-making. Lower costs and improved accessibility have broadened adoption across sectors, from infrastructure and urban planning to cultural heritage preservation. Demand for reality capture is expected to grow further with integration into digital twins, augmented reality, immersive simulations, and sustainable asset management practices.

AI and Machine Learning Integration

The application of AI and ML to geospatial data is streamlining large-scale data analysis, automating feature extraction, and enhancing predictive modelling. AI-driven algorithms are improving accuracy, speed, and the usability of spatial datasets by identifying patterns, forecasting changes, and optimizing resource allocation. Machine learning models are increasingly used for real-time anomaly detection, infrastructure monitoring, and environmental modelling, making complex datasets more actionable for planners, engineers, and policymakers.

Expansion of Earth Observation Satellites

The deployment of Earth observation satellites continues to accelerate, supported by both government initiatives and private sector investments. These satellites deliver high-resolution imagery and data critical for applications in environmental monitoring, agriculture, disaster management, and urban planning. Advances in satellite technology are improving spatial resolution, revisit frequency, and spectral capabilities, enabling more detailed and comprehensive monitoring of the Earths surface.

Emergence of Digital Twins

The digital twin market has expanded rapidly in recent years. At a CAGR of 44% (2023-2028), it is projected to reach USD 35.82 billion in FY 24-25, up from USD 24.97 billion in FY 23-24. By FY 27-28, the market is expected to grow to USD 92 billion, maintaining strong momentum. Digital twins are gaining traction across industries such as manufacturing, infrastructure, and smart cities. Integration with IoT devices, AI analytics, and cloud computing is enhancing their utility, enabling real-time simulation, predictive analytics, and improved decision-making.

Opportunities

• Real-time Data Collection and Analysis:

The ability to collect and analyze real-time data is becoming essential for effective geospatial data management. It is creating a new paradigm for business opportunities, where accurate and timely data enables organizations to make informed, rapid decisions.

• Evolving Geospatial Data Landscape:

The increasing volume, speed, and diversity of geospatial data are transforming how organizations manage and apply information. This evolution demands upgraded infrastructure, advanced processing capabilities, and skilled talent. Emerging applications are leveraging global capabilities to deliver immediate insights and address evolving geospatial industry needs.

• Demand for Real-Time, Location-Based Services:

Users are increasingly seeking seamless and convenient access to location-based data across transportation, retail, and other sectors. This trend drives the need for real-time data access and analytics. The rise of digital twin-enabled cities allows municipalities to simulate and prepare for climate events, while smart city infrastructures enhance transparency and engagement among citizens and planners.

• Impact of AI on Urban Planning and Design:

Artificial intelligence is playing a growing role in collecting and analyzing vast urban datasets. AI-powered insights are improving project planning, scheduling, and risk management, while optimizing resource allocation in infrastructure and construction projects.

• Autonomous Vehicles and Mobility Transformation:

Autonomous vehicle technology is poised to transform mobility, with Level 4 (L4) highway pilots for private cars anticipated by 2030. Early deployments of autonomous trucks are expected by 2028-2031, with advancements in perception systems, decision-making algorithms, and safety technologies driving adoption.

• Rise of Smart Cities:

The smart mobility market is projected to grow at a CAGR of 27.2% from FY 23-24 to FY 31-32, rising from USD 138 billion in FY 21-22. Growth is being fueled by rapid urbanization, advances in technology, and an increasing focus on sustainability. The integration of IoT for real-time city management and the adoption of smart city platforms highlight a shift towards data-driven urban living with environmental responsibility at its core.

• Growth of Connected Vehicles:

The connected vehicle market, integrating advanced communication technologies, is reshaping the driving experience. Valued at USD 115.8 billion in 2023, it is projected to reach USD 192 billion by 2028, growing at a CAGR of 18%. This growth is driven by rising demand for enhanced safety, efficiency, and in-vehicle digital experiences.

• Advancements in EV Battery Technology:

Battery innovation remains central to the EV industry, with R&D focused on improving energy density, charging speed, and lifespan. These advancements aim to reduce battery costs, currently representing up to 40% of EV total cost, thereby lowering the overall cost of ownership and unlocking significant growth potential.

• Integration of Digital Technology in Vehicle Design:

Automakers are incorporating interactive displays, connectivity features, and advanced infotainment systems into vehicle design. In 2024, new models are expected to showcase seamless integration of aesthetics with performance, elevating the consumer experience while opening new market opportunities.

• Innovations in EV Design:

The EV market is seeing a surge in compact, sleek, and visually appealing designs, catering especially to younger consumers. Automakers are shifting away from conventional styles toward minimalist, lightweight constructions that enhance battery efficiency and driving range, while meeting evolving consumer expectations.

THREATS

• Cybersecurity Threats to Geospatial Data:

Geospatial datasets · including geographic coordinates, topographical data, GPS data, aerial and satellite imagery, remote sensing data, geotagged social media, LiDAR data, and other location-relevant information · are increasingly targeted by cybercriminals. These actors often pursue the data not for the organizations themselves, but for potential resale after encryption.

• Rising Competition in Geospatial Industry:

The influx of new entrants is intensifying competitive pressure in the geospatial sector, making it challenging for established companies to maintain market share and sustain long-term growth.

• Economic and Geopolitical Instability:

Shifts in global economic conditions, coupled with geopolitical tensions, create uncertainty and risk across geospatial and mobility markets. This is particularly pronounced in sensitive sectors such as defence and intelligence, where operational stability is critical.

• Slower-than-Expected EV Market Growth (Short-Term):

While global EV sales volumes are projected to more than double from USD 14.2 million units in 2023 to USD 30 million units in 2027, short-term market share growth is expected to underperform earlier projections between 2024 and 2028 - reaching only 24% in 2025 and 28% in 2028. From 2029 onwards, the EV share is anticipated to exceed previous forecasts.

• Charging Infrastructure Gaps:

The lack of widespread, reliable EV charging infrastructure remains a critical barrier to adoption. Despite significant investment from the Indian Government and private stakeholders, challenges persist in expanding networks across urban areas, highways, and key strategic locations. Range anxiety continues to be a major concern, and insufficient infrastructure investment could hinder seamless EV integration into everyday mobility.

OUTLOOK 1. Geospatial

The global geospatial market is projected to grow at a CAGR of 14.3%, reaching an estimated market size of USD 708 billion in 2025. Beyond 2025, it is expected to expand at an accelerated CAGR of 14.9%, attaining USD 1.4 trillion by 2030.

Geospatial data underpins a broad range of applications, integrating spatial dimensions with digital technologies to enable real-time interactions between the physical and digital worlds. Over the next decade, geospatial infrastructure will focus on foundational datasets, positioning networks, platforms, standards, knowledge services, and governance models.

The sector acts as a bridge between government and commercial domains, amplifying the scalability and value of geospatial applications for development, governance, and security. Ongoing global initiatives in policy, regulation, and technology adoption are poised to drive large-scale geospatial expansion through 2030 and beyond.

2. Data Centers

Data centers are critical facilities that centralize an organizations IT operations, storing, processing, and disseminating data. They are pivotal for supporting applications such as AI, cloud computing, e-commerce, and digital services. Globally, there are over 8.6 million data centers, and their strategic importance continues to grow as digital infrastructure becomes essential for businesses and governments.

The demand for data centers is rising sharply. Hyperscale data centers, in particular, are projected to increase their rack density at a CAGR of 7.5% to meet growing computational needs.

I ndias data center market is expanding rapidly, fueled by AI adoption, a strong digital economy, and favorable investment policies. The industry is expected to attract approximately USD 9 billion in investments by 2026, adding 1500 MW of capacity. By 2028, installed capacity is forecast to triple, with an average of 350 MW of colocation capacity added annually across major cities.

3. Mobility

The global mobility market was valued at USD 821.55 billion in 2022 and is projected to grow at a CAGR of 16.4% to reach USD 1.77 trillion by 2027. Between 2022 and 2027, cumulative revenue for mobility providers is expected to total USD 7.3 trillion. In FY 24-25, the sector is undergoing a significant transformation, driven by advancements in technology and evolving consumer preferences.

The ongoing shift toward electric vehicles (EVs) is accelerating, underpinned by robust infrastructure development and proactive government incentives. Autonomous vehicles (AVs) are gaining traction, promising safer, more efficient transport solutions, while Mobility-as-a-Service (MaaS) platforms are integrating various modes of transport into seamless, user-friendly experiences.

Smart city initiatives are reshaping urban mobility through innovative infrastructure solutions, including intelligent traffic management systems and last-mile connectivity options such as e-scooters and micro-mobility services.

As regulatory frameworks adapt to accommodate these innovations, the mobility sector is poised to redefine how people and goods move · with a strong emphasis on sustainability, efficiency, and enhanced connectivity in transportation networks worldwide.

RISKS & CONCERNS

Effective risk management is critical to sustaining business performance and protecting shareholder value. The Company has established a robust Risk Management framework that ensures adequate controls, continuous monitoring, and proactive mitigation of potential threats. This framework helps identify, assess, and prioritize risks based on their likelihood and potential impact, enabling the Company to respond strategically.

Beyond the risk factors mentioned elsewhere in this report, the following key risks could materially impact on actual results versus expectations:

• Regulatory Changes: Alterations in domestic and foreign policies, including laws, regulations, and tax regimes.

• Foreign Exchange Volatility: Fluctuations in currency exchange rates affecting costs and revenues.

• Licensing & Approvals: Failure to secure or renew essential approvals and licenses.

• Contingent Liabilities: Realization of unanticipated legal or contractual obligations.

• Macroeconomic & Political Instability: Shifts in economic, political, or social conditions at local, regional, or national levels.

• Client Contract Risks: Termination of contracts without cause, with little or no notice, or with heavy penalties.

• Interest Rate Movements: Variations in interest, inflation, or deflation rates impacting financing and operating costs.

• Natural Disasters & Calamities: Events disrupting operations in affected geographies.

• Market Dynamics: Unpredictable fluctuations in industry demand, competition, and technology trends beyond the Companys control.

The Company remains committed to continuously enhancing its risk management capabilities to anticipate emerging threats and adapt to evolving market conditions.

INTERNAL CONTROL AND SYSTEMS AND THEIR ADEQUACY

As defined under Section 134(5) of the Companies Act, 2013, the Internal Financial Control (IFC) framework comprises the policies and procedures adopted by the Company to ensure orderly and efficient business conduct. This includes adherence to the Companys policies, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.

Ceinsys has fully aligned its internal control framework with the requirements of the Companies Act, 2013. The system is designed to enhance transparency and accountability in operations, with robust mechanisms to identify, assess, and mitigate risks. The framework lays down detailed processes to ensure its effectiveness.

The controls are commensurate with the size and nature of the Companys operations and provide reasonable assurance regarding the accuracy and reliability of financial and operational information, compliance with applicable laws, and safeguarding of assets from unauthorized use.

A clearly defined delegation of authority framework governs revenue and expenditure approvals, while processes for annual and long-term business planning are in place. The Company utilizes advanced ERP systems to consolidate and manage data across locations, ensuring efficient information exchange and alignment with global best practices.

An Internal Auditor, reporting to the Audit Committee, oversees the review of internal controls and operational risks in areas such as software delivery, accounting and finance, procurement, employee engagement, travel, insurance, and IT processes. The Audit Committee evaluates internal audit reports, discusses observations with statutory auditors, and follows up on corrective actions. Regular updates are provided to the Board on the adequacy and effectiveness of the Companys internal control systems.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial statements of the Company have been prepared under Indian Accounting Standards (IND AS) which comply in all material respects with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

(Amount in Lakhs)

Particulars	Financial Year	Financial Year	Increase %
	2024-25	2023-24
Total Income (Standalone)	42,560	24,743	72.01%
Total Income (Consolidated)	42,972	25,657	67.49%
Earnings before interest, tax, depreciation (EBITD)-Standalone	11,873	5,990	98.21%
Earnings before interest, tax, depreciation (EBITD)-Consolidated	10,028	5,953	68.45%
Profit Before Tax (Standalone)	11,081	5,062	118.91%
Profit Before Tax (Consolidated)	8,954	4,966	80.31%
Profit after tax (PAT) (Standalone)	8,138	3,595	126.37%
Profit after tax (PAT) (Consolidated)	6,324	3,500	80.69%
Total Comprehensive Income (Standalone)	8,102	3,580	126.31%
Total Comprehensive Income (Consolidated)	6,360	3,531	80.12%
Earnings Per Share (EPS) (Standalone)	48.09	23.13	107.91%
Earnings Per Share (EPS) (Consolidated)	37.37	22.52	65.94%

Share Capital

The authorized share capital of the Company as on March 31, 2025 was 31,60,00,000/- divided into 3,16,00,000 equity shares of 10/- each and paid-up share capital as at March 31,2025 was Rs. 17,44,11,460/-divided into 1,74,41,146 equity shares of 10/- each. During the year, 11,01,749 shares were issued in the paid up capital of the company.

Other Equity

On Standalone basis, the Other Equity as at March 31,2025 stood at Rs. 38,681 Lakhs as against 19,269 Lakhs as at March 31, 2024, showing an increase of 101%.

On Consolidated basis, Other Equity as at March 31, 2025 stood at Rs. 39,444 Lakhs as against Rs. 21,775 Lakhs as at March 31, 2024 showing an increase of 81%. The net increase is mainly on account of profit earned during the year & proportionate increase in income from joint venture.

Long-Term Borrowings

On Standalone basis Long-term Borrowing increased to Rs. 79 Lakhs as at March 31,2025 from 78 Lakhs at March 31,2024. Increase in long term borrowings is due to addition of term loan during the financial year 2024-25.

On Consolidated basis Long-term Borrowing increased to Rs. 79 Lakhs as at March 31, 2024 from 78 Lakhs at March 31, 2023. Increase in long term borrowings is due to addition of term loan during the financial year 2024-25.

Other Current Financial Liabilities

On Standalone basis, other current financial liabilities stood at 1,369 Lakhs as at March 31,2025 as against Rs. 1,056 Lakhs as at March 31,2024.

On Consolidated basis, other current financial liabilities stood at Rs. 1,596 Lakhs as at March 31,2025 as against 1,160 Lakhs as at March 31,2024.

Trade Payables

On Standalone basis, Trade payables increased to Rs. 7,421 Lakhs as at March 31,2025 from Rs. 5,001 Lakhs as at March 31,2024.

On Consolidated basis, Trade payables increased to Rs. 7,473 Lakhs as at March 31,2025 from Rs. 5,050 Lakhs as at March 31,2024. The increase is mainly due to purchase from vendors which resulted in more liabilities of the company towards vendor payment.

Other Current Liabilities

On Standalone basis, other current liabilities decreased to 419 Lakhs as at March 31,2025 from Rs. 1,537 Lakhs at March 31,2024.

On Consolidated basis, other current liabilities decreased to Rs. 452 Lakhs as at March 31, 2025 from Rs. 1,676 Lakhs as at March 31,2024.

Short-Term Provisions

The short-term provision comprises provisions against gratuity liability and leave obligation towards employees.

On Standalone basis, short-term provisions were Rs. 374 Lakhs as at March 31,2025 as against 239 Lakhs as at March 31,2024.

On Consolidated basis, short-term provisions were Rs. 437 Lakhs as at March 31, 2025 as against Rs. 292 Lakhs as at March 31, 2024. Increase in liability is on account of high actuarial gain coming majorly due to change in demographic assumptions, experience changes, change in attrition rate.

Non-Current Investments

On standalone basis, Non-Current Investment were Rs. 3,366 Lakhs as at March 31,2025 as against 3,360 Lakhs at March 31,2024.

On Consolidation basis, Non-Current Investment were Rs. 2,204 Lakhs as at March 31,2025 as against Rs. 2,672 Lakhs at March 31,2024.

Other Non-Current Financial Assets

On standalone level these amounted to Rs. 772 Lakhs as at March 31.2025 as against Rs. 208 Lakhs as at March 31,2024. The increase is mainly on account of Increase in Deposits with bank with more than 12 months maturity.

On Consolidation level the amount of Other Non-Current Financial assets increased to 777 Lakhs as at March 31, 2025 from Rs. 217 Lakhs as at March 31, 2024. The increase is mainly on account of Increase in Deposits with bank with more than 12 months maturity.

Current Financial Assets - Loans

The Loans recoverable in cash or kind which are due within twelve months from the Balance Sheet date are shown as Current Financial Assets - Loans.

On Standalone basis, these amounted to Rs. 33 Lakhs as at March 31.2025 as against Rs. 26 Lakhs as at March 31,2024.

On consolidated basis, these amounted to 1 Lakhs as at March 31.2025 as against Rs. 1 Lakhs as at March 31,2024.

Other Non-Current Assets

On Standalone basis Non - Current Assets were of 127 Lakhs as at March 31,2025 as against Rs. 199 Lakhs as at March 31,2024.

On Consolidated basis Non - Current Assets were of 127 Lakhs as at March 31,2025 as against Rs. 199 Lakhs as at March 31,2024. The decreases are mainly due to decrease in Prepaid Expenses.

Trade Receivables

On Standalone basis, Trade receivables amounted to Rs. 25,181 Lakhs as at March 31,2025 as against Rs. 16,643 Lakhs as at March 31, 2024.

On Consolidated basis, Trade receivables amounted to Rs. 25,582 Lakhs as at March 31,2025 as against Rs. 16,969 Lakhs as at March 31, 2024.

Cash and Cash Equivalent

On Standalone basis, cash and cash equivalent amounted to Rs. 150 Lakhs as at March 31,2025 as compared to Rs. 148 Lakhs as at March 31,2024.

On Consolidated Basis, these amounted to Rs. 1,245 Lakhs as at March 31,2025 as compared Rs. 1,108 Lakhs as at March 31,2024. The major Increase in consolidated level is due to increase in bank balance of subsidiary company at year end.

Bank Balance other than Cash and Cash Equivalent

On Standalone basis, deposits with banks amounted to Rs. 14,925 Lakhs as at March 31, 2025 as compared to Rs. 1,805 Lakhs as at March 31, 2024.

On Consolidation basis, deposits with banks amounted to Rs. 14,990 Lakhs as at March 31, 2025 as compared to Rs. 1,805 Lakhs as at March 31, 2024.

The major increases in both the levels is due Temporary Deposit of Share Warrant & Equity Proceeds amounting to Rs. 10,753 lakhs.

Other Current assets

On Standalone basis, total other current assets were of Rs. 1,566 Lakhs as at March 31, 2025 as compared to total other current assets of Rs. 616 Lakhs as at March 31,2024.

On Consolidated basis, total other current assets as at March 31, 2025 stood at 1,644 Lakhs as against Rs. 649 Lakhs as at March 31, 2024.

This increases are mainly on account of increase in advance to suppliers and increase in balances with government authorities.

Total Revenue- Standalone

Total Revenue from operations on Standalone basis in financial year 2024-25 increased to Rs. 39,973 Lakhs from Rs. 23,347 Lakhs in the last financial year 2023-24 registering an increase of 71%.

The revenue has gone up due to closure/completion and receipt of new contract of certain projects in mid of FY 24-25.

Total Revenue - Consolidated

Total Revenue from operations on consolidated basis in financial year 2024-25 increased to Rs. 41,806 Lakhs from Rs. 25,294 Lakhs in the last financial year 2023-24 an increase rate of 65%.

The revenue has gone up due to closure/completion and receipt of new contract of certain projects in mid of FY 24-25.

Earnings before interest, tax and depreciation (EBITD) - Standalone

Earnings before interest, tax and depreciation (EBITD) for the financial year 2024-25 has been 11,873 Lakhs registering an increase of 98% over (EBITD) of Rs. 5,990 Lakhs in financial year 2023-24. Increase is on account of closure/completion of certain projects in mid of FY 24-25.

Earnings before interest, tax and depreciation (EBITD) - Consolidated

Earnings before interest, tax and depreciation (EBITD) for the financial year 2024-25 has been Rs. 10,028 Lakhs registering an increase of 68% over (EBITD) of Rs. 5,953 Lakhs in financial year 2023-24.

Profit Before Tax (PBT) - Standalone

Profit before tax for the financial year 2024-25 has been Rs. 11,081 Lakhs recording an increase of 119% over the PBT of Rs. 5,062 Lakhs in financial year 2023-24. Increase is on account of increase in revenue.

Profit Before Tax (PBT) - Consolidated

Profit before tax for the financial year 2024-25 has been Rs. 8,954 Lakhs recording an increase of 80% over the PBT of Rs. 4,966 Lakhs in financial year 2023-24. The variance is on account of increase in Revenue from Operations during the year.

Profit After Tax (PAT) - Standalone

Profit after tax (PAT) for the financial year 2024-25 has been 8,138 Lakhs recording an increase of 126% over the PAT of Rs. 3,595 Lakhs in financial year 2023-24.

The variance is on account of increase in Revenue from Operations during the year.

Profit After Tax (PAT) - Consolidated

Profit after tax (PAT) for the financial year 2024-25 was Rs. 6,324 Lakhs recording an increase of 81% over the Profit after tax (PAT) of Rs. 3,500 Lakhs in financial year 2023-24. The variance is on account of increase in Revenue from Operations during the year.

Net worth

On Standalone basis, Net worth for financial year 2024-25 was recorded at Rs. 40,425 Lakhs as compared to Rs. 20,903 Lakhs in previous financial year 2023-24. The net increase of Rs. 19,552 Lakhs is mainly due to increase in profitability of FY 2024-25 and due to increase of capital Infusion during the year.

On Consolidated basis, Net worth for financial year 2024-25 was recorded at Rs. 41,188 Lakhs as compared to Rs. 23,409 Lakhs in previous FY 2023-24. The net increase of Rs. 17,779 Lakhs is mainly due to increase in profitability of FY 2024-25 and due to increase of capital Infusion during the year.

Earnings per Share (EPS)

On Standalone basis, Basic earnings per share went up to Rs. 48.09 per share in current financial year from Rs. 23.13 per share in the previous year. For diluted earning per share went up to Rs. 45.39 per share in current financial year from Rs. 23.13 per share in the previous year.

On Consolidated basis, Basic earnings per share went up to Rs. 37.37 per share in current financial year from Rs. 22.52 per share in the previous year. For diluted earning per share went up to Rs. 35.27 per share in current financial year from Rs. 22.52 per share in the previous year.

On Standalone Level there is an increase in EPS on account of increase in profit after tax due to the reasons mentioned above.

On Consolidated level, there is increase in EPS on account of increase in profit after tax due to the reasons mentioned above.

Moreover, in year 2024-25 basic and diluted EPS are not the same as there is outstanding potential share.

SEGMENT WISE PERFORMANCE

The Company has organised its business into three segments:

1. Geospatial & Engineering Services - This segment includes Geospatial solution for Cadastral mapping, Resource survey, mapping & analysis, Mining applications & Heritage Mapping. Engineering consultancy services includes hydraulic modelling, water metering solutions, municipal solutions, Consultancy services for the DPR preparations for water supply scheme, Road and Highways using LiDAR Technology.

2. Technology Solutions - This Segment includes IoT that merges live sensor feeds with project data for a 360? view of operations, risk, and progress. Tech solutions on the Tech platforms of Autodesk, Bentley, Esri, Aveva and others.

3. Others consists of Power generation - This segment aiming to create renewable energy that is revolutionising and redefining the way sustainable energy sources are harnessed across the world. At present Ceinsys has invested in Wind Mills and Solar Plants to generate renewable clean energy.

4. Unallocable consists of other income, expenses, assets and liabilities which cannot be directly identified to any of the above segments.

As per Ind AS 108Operating Segments, the Company has disclosed the segment information only as part of the consolidated financial results.

The table below gives the Consolidated revenue analysis by business segment for the period indicated:

(Amount in Lakhs)

	Year Ended
Particulars	31.03.2025	31.03.2024
	Audited	Audited
1. Segment Revenue
a. Geospatial and engineering services	20,392	19,078
b. Technology Solutions	21,328	6,025
c. Others	86	191
Income From Operations	41,806	25,294
2. Segment Results
a. Geospatial and engineering services	4,214	3,764
b. Technology Solutions	6,032	1,304
c. Others	79*	108
Total	10,325	5,176
i) Finance Costs	-252	-471
ii) Other unallocable expenditure	-3,283	-1,285
iii) Unallocable Income	1.101	363
Share of Profit of Joint Venture	1,063	1,182
Profit before exceptional items and Tax	8,954	4,966
Exceptional items	-	-
Profit Before Tax	8,954	4,966

* include profit on sale of windmill land

Details of Significant Changes in Key financial ratios on the basis of Standalone Financials:

The significant changes in key ratio i.e changes of 25% or more as compared to previous financial year 2023-24 with detailed explanation is appended in the below mentioned table:

Sr. No.	Particulars	As at March 31, 2025	As at March 31, 2024	% Variance	Reason for Variance
1	Return on equity ratio	26.54%	18.84%	40.86%	Mainly due to Increase in Profit as compared to previous year
2	Inventory Turnover ratio	695.19	93.36	644.60%	Mainly due to decrease in Average Closing stock of Inventory, and increase in Revenue from operation as compared to previous year
3	Debt Service Coverage Ratio	37.70	11.37	231.66%	Mainly due to Increase in Profit and lower finance cost as compared to previous year
4	Net profit ratio	20.36%	15.40%	32.21%	The ratio has improved on account of Increase in margin on account of higher sales realisation.
5	Debt equity ratio	0.09	0.02	307.98%	Mainly due to Utilization of Cash Credit limit during the year
6	Trade receivables turnover ratio	3.66	2.54	44.02%	Mainly due to Increase in Revenue from operation as compared to previous year
7	Net capital turnover ratio	1.43	2.04	-29.96%	Mainly due to Increase in Revenue from operation and current assets (Fixed Deposits and Trade Receivables- Billed/ Unbilled) as compared to previous year
8	Return on investment	11.09%	23.67%	-53.16%	The ratio has decreased mainly on account of increase in fixed deposits & Lower return in case of fixed deposits

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES - Human Resources

At CS TECH Ai, our employees are our greatest asset. We are committed to their growth, well-being, and satisfaction. We believe that our core values are the foundation of our success and growth. These values guide our interactions, decision-making, and overall company culture. Our continuous efforts in training, compliance, and employee engagement programs ensure that we maintain a productive, inclusive, and innovative workplace.

Core Values

Collaboration: We believe in the power of working together, knowing that it yields inspiring results.

• Respect for Diverse Perspectives: We recognise that varied viewpoints foster innovation and growth.

• Unconventional Thinking: We encourage creativity and ingenuity to help us translate ambitions into reality.

• Integrity: We stand on our integrity, acknowledging that trust and respect enable us to exceed expectations.

• Responsibility: We embrace our responsibility with a profound sense of commitment to our clients, colleagues, and the community.

• Client Partnership: We are passionate about building strong connections with our clients.

• Pride in Our People: We take pride in our employees, who are the core of our success.

EMPLOYEE ENGAGEMENT AND DEVELOPMENT:

At CS TECH Ai, we prioritise the well-being and development of our employees. In FY 24-25, we conducted several initiatives and programs aimed at enhancing employee engagement and growth:

POSH ACT & ETHICS AND SECURITY ORIENTATION:

The Company fully compliant with the Prevention of Sexual Harassment (POSH) Act, as well as with ethics and security policies across all locations, ensuring our employees are well-informed. CS TECH Ai has been recognized among one of the Three National Ambassadors for the Prevention of Sexual Harassment (POSH) at the Women of Steel Excellence Awards 2025 Delhi, presented by the Ministry of Women Child Development India.

LEARNING & DEVELOPMENT:

To enhance employee skills to perform their current role better and build competency for future responsibilities as per organization, the Company has mandated KRAs on training hours. In 2025 the Company crossed the training targets, achieving 19,485 manhours of training against a target of 12,000. Additionally, 657 Technical Certifications were bagged as per business needs within the given timeframe.

NEW JOINERS:

The Company welcomed 412 new joiners in FY 2425, demonstrating our growth YoY.

DIVERSITY, EQUITY & INCLUSION (DEI)

At CS TECH Ai, we implement practices and policies designed to support individuals from diverse backgrounds, fostering a sense of belonging. Our comprehensive DEI policy, aimed at welcoming women back to the workforce and increasing employment for women, has been widely recognized and appreciated. As a result, we have increased our diversity ratio from 11% to 16% within one year.

Key Differentiator at Organization Level for Women

Empowerment:

• Creating a welcoming environment: Demonstrate a commitment to gender equality and diversity. The Companys Referral and Recruitment Policy uniquely welcomes women force; you refer a women candidate and get a bonus in addition. The Company has Women leaders across the location, handling Departments like PMO, Quality, HR, L&D, RMG, Technical Heads, Company Secretary.

• Wellbeing & Mental Health: Apart from the health checkup of women YOY, a workshop on Mental Health is on the Priority.

• Training & Development: Mandated process on an Annual basis, Special Investment in learning & development for Women to keep themselves updated.

• Maternity Benefits: 6 months of paid leave, support for IVF treatment, adoption or surrogacy.

• Maher Policy Welcome Back program: In the case of marriage, we transfer the female employees to the location as preferred, and if they want to go in for a break, the welcome program helps.

• Equal Opportunity Employer: The Company follows equal pay across all the employees.

• Metrics to keep track of women attrition and development: less than 1% FY 23-24 & 24-25, promoted to a Leadership or mid-level position.

COMPLIANCES:

The Companys commitment to ethics and security is reflected in our compliance achievements and recognitions:

• Ethics & Security Awareness: An annual program across the Company ensures all employees are briefed on ethics and security, with 100% compliance with the Ethics Survey ahead of scheduled timelines.

• POSH Compliance: The Company has been approved and certified as Green by the Ministry for Child and Women Welfare for all locations.

• Wellness Program: The employees are covered under Group Mediclaim Policy along with family, Group Accident Policy, Group Term insurance Policy and Workmen compensation policy as applicable.

Category of Employment as of 31st March 2025:

Category	Headcount
On roll	905
Contract/ Consultants	198
Apprentices	30
Total Headcount	1133

Employee Satisfaction

The Company strive to create a positive work environment that fosters employee satisfaction. The Companys efforts are reflected

in an employee satisfaction score of 3.9 out of 5. As the Company moves forward, it will continue to build on these foundations, driving our success through the Companys dedicated and talented team.

SAFE HARBOR

This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and are based on our current expectations, assumptions, estimates and projections about the Company, our industry, economic conditions in the markets in which we operate, and certain other matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as anticipate, believe, estimate, expect, intend, will, project, seek, shouldand similar expressions.

We cannot guarantee that these forward-looking statements will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should know or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.