Yudiz Solutions Ltd Management Discussions

(a) Industry Structure and Developments:

Yudiz Solutions operates within the Information Technology services and consulting domain, specializing in Game Development, Enterprise

Software, Mobile Applications, Artificial Intelligence

(AI)/Machine Learning (ML), Blockchain Technologies, and FinTech. The global IT industry has been undergoing rapid transformation, with a surge in demand for blockchain solutions, AI/ML, and gaming applications. Yudiz has positioned itself effectively within these high-growth sectors, and capitalizing on its diversified cutting-edge technological expertise.

(b) Opportunities & threats: portfolio, which includes blockchain, AI/

Opportunities:

The increasing wave of digitalization provides in significant blockchain, AI/ML, FinTech, and gaming sectors. The demand for blockchain consulting and development is experiencing substantial growth across various industries, creating strategic opportunities. Sectors like FinTech, HealthTech, EduTech, and

E-commerce are seeing significant demand, driving businesses towards technological solutions for enhanced profitability and sustainability.

Threats:

The competitive landscape of the IT services sector remains a challenge, with larger players commanding substantial resources. Additionally, the rapid pace of corrections globally, impacting technological evolution and the entry of new competitors may exert pressure on profit margins and market share.

(c) Segment-wise Performance:

Yudiz Solutions operates within the Information Technology sector, representing a single reportable segment. Over the past year, the company has consistently performed well overcoming challenges from the global geo-political and technological changes, expanding its market presence by leveraging innovative technologies and customized solutions. This includes specialized services and development within the FinTech, digital product sectors, and gaming studios.

(d) Outlook:

The IT services market continues its robust expansion, driven by ongoing digital transformation initiatives across industries. Yudiz Solutions has capitalized on favorable market conditions through a focus on innovation, client-centric services, and strategic growth initiatives. The companys diversified

ML, FinTech, and gaming technologies, places it at the intersection of multiple high-growth verticals, positioning it for sustained success.

The global IT services market has witnessed a surge in demand for decentralized solutions, particularly blockchain applications across finance, healthcare, and supply chain management sectors. Yudizs strong foundation in these technologies positions the company favorably to capture market share in these rapidly growing sectors.

Additionally, AI and ML are becoming integral across industries, and Yudiz has leveraged its expertise to offer innovative products in response to the escalating demand for intelligent systems.

Following its IPO in 2023, the technology market has seen significant the industry as a whole. However, Yudiz remains committed to its strategic goals, investing in R&D, upgrading technological infrastructure, and talent acquisition to meet evolving market needs. The company has also expanded its operations to the GCC region, providing further leverage to broaden its reach. Yudiz is poised to enhance its marketing efforts and build a stronger global brand presence, while seeking acquisition opportunities that align with its vision. Furthermore, with favorable government policies in India, Yudiz is focusing on forming stronger partnerships in the e-sports and casual gaming sectors.

(e) Risk and concerns:

Operational risks arise from technological advancements, particularly the implementation of AI in comparison to the talent and manpower employed. Additionally, government policies in the gaming industry, global inter-trade tariffs, and economic fluctuations, along with external market conditions such as global IT spending trends, present ongoing challenges.

(f) Internal control systems, its adequacy and risk management:

Yudiz has implemented rigorous internal control systems to monitor its operations and mitigate risks. These systems involve continuous oversight of financial processes, IT systems, and operational risks, ensuring efficiency and compliance with regulatory standards. With the companys rapid growth, scalability of these controls remains a key focus, and the management is committed to deploying advanced tools and technologies to maintain operational effectiveness.

(g) Financial performance with respect to operational performance:

Consolidated Financial Statements

Consolidated Financial Statements being the first year of consolidation

Consolidated Financial Statements comprises of balance sheet of Yudiz Solutions Limited and its both subsidiaries, namely Insightly Datawotks Private Limited and ABCM App private Limited.

For the year ended March 31, 2025, the company has achieved a consolidated Revenue of Rs. 2404.25 lakhs, and it is being the first year of consolidation.

The Company has incurred a consolidated net loss of Rs. 171.56 Lacs, in the first-year consolidation.

Note- Since the group has prepared consolidated financial statements for the first time, comparative figures are not available.

Standalone Financial Statements

For the year ended March 31, 2025, the company has achieved a standalone Revenue of Rs. 2397.42 lakhs, and it has shown the downward trend by 14.25% over the last year of Rs. 2795.83 lakhs. The Company has incurred a net loss of Rs. 56.06 Lacs, registering the upward trend over the loss of Rs. 287.36 Lakhs in Financial Year 2023-24.

(h) Material developments in Human Resources,

Industrial Relations, and Health, Safety &

Environment:

Yudiz is committed to talent development and employee engagement, with a strong emphasis on acquiring top-tier talent in emerging technologies like Blockchain, Fintech, Gaming and AI. The company promotes a positive work culture and has policies in place for health and safety.

(i) Key Financial Ratios for 2024-25 compared with

2023-24

Consolidated Financial Statements

Sr. No.	Particulars	2024-25
1.	Current Ratio	11.02
2.	Debt Equity Ratio	0.01
3.	Debt Service Coverage Ratio	-4.41
4.	Return on Equity Ratio	-3.58%
5.	Inventory Turnover Ratio	-
6.	Trade Receivable Turnover Ratio	11.97
7.	Trade Payable Turnover Ratio	44.60
8.	Net Capital Turnover Ratio	0.63
9.	Net Profit Ratio	-8.17%
10.	Return on Capital Employed	2.89%

Note- Since the group has prepared consolidated financial statements for the first time, comparative figures are not available.

Standalone Financial Statements

Sr. No.	Particulars	2024-25	2023-24
1.	Current Ratio	11.50	11.02
2.	Debt Equity Ratio	0.01	0.02
3.	Debt Service Coverage Ratio	0.45	1.33
4.	Return on Equity Ratio	-1.16%	-5.91%
5.	Inventory Turnover Ratio	-	-
6.	Trade Receivable Turnover Ratio	6.06	4.88
7.	Trade Payable Turnover Ratio	10.35	9.00
8.	Net Capital Turnover Ratio	0.63	0.61
9.	Net Profit Ratio	-2.68%	-10.99%
10.	Return on Capital Employed	5.22%	-2.00%