63 Moons Technologies Ltd Management Discussions

OVERVIEW

Amid the persistent uncertainties of the past financial year of FY25, many factors continue to adversely impact the current economic environment. Some of these factors include geopolitical tensions due to regional wars, economic sanctions on the warring countries, and, to top it all, random trade tariffs by the US government on its trading partners. These factors have led to some apprehensions over the growth of the global economy during the current financial year, FY26.

With the reprieve, however, given in tariff imposition by the US government, there is hope for negotiations for bilateral trade agreements, which would likely open up more trading options.

Parallelly, the Indian economy is also witnessing some downside risks to economic growth. However, the robust nature of the economy and several economic measures taken up by the government and the Reserve Bank of India (RBI) are likely to help mitigate risks arising from the global uncertainties and maintain a trajectory of healthy growth.

The overall business confidence among domestic players is further supported by the firming up of private consumption, and the traction gained in fixed capital formation would boost investments. Also, the sustained agricultural activities, due to a good monsoon, bode well for the rural economy and rural demand, while the expansion witnessed in the services sector, too, is expected to support the revival in urban demand.

GLOBAL ECONOMIC OVERVIEW

Global economic activities remained resilient during CY24 (CY2024), although the growth trend seemed below the historical average. During the second half (H2) of CY24, the global economy remained firm amid accommodative financial conditions and a rebound in international trade. High-frequency indicators for the first quarter (Q1) of CY25 (CY2025), however, suggest a slowdown in global economic growth, as the output index of the global composite Purchasing Managers Index (PMI) trend was the weakest since the last quarter (Q4) of CY24. The Global Composite PMI trend for CY2023, CY2024, and CY2025 shows a mixed picture of growth and contraction, with some divergences between the manufacturing and services sectors persisting. The PMI, in CY23, indicated a global economic expansion, which slowed marginally during the later part of the year. The first half (H1) of CY24 saw a firming up of growth, with varying rates of expansion in the manufacturing and services sectors. The H2 of CY24 and early CY25 witnessed a slowdown, with some regions experiencing contractions.

With receding geopolitical tensions, the global economic performance measured by PMI is expected to look up in CY25.

The US economy , among the other Advanced Economies (AEs), grew by 2.8% in CY24, which was lower than the output posted at 2.9% in CY23, supported by consumers and governments incremental spending and a decline in imports, which was partly offset by a decrease in investment.

Among the Emerging Markets & Developing Economies (EMDEs), Chinas real GDP grew by 5% in CY24 as compared to the growth of 5.4% in CY23, marking a weaker expansion in CY24.

Global financial markets remained quite edgy due to shifting expectations of monetary policies of AEs and fears of trade tariff wars among the US trading partners, too led to volatility in the financial markets. Geopolitical uncertainties, intensifying trade tensions, and the withdrawal of portfolio investors from the emerging markets caused a retreat in equities from the highs in January 2025. The sell-off has further intensified since March 2025 due to fears of a trade war.

Meanwhile, among precious metals , gold prices globally surged since October 2024, showing a rise of 4.9% m-o-m, driven by heightened uncertainty regarding the US elections amid rising prospects of Trumps win in the US elections and escalating geopolitical tensions leading to high safe-haven demand for the precious metals. The rally was more than offset by a decline in prices in November and December 2024 as strengthening of the US dollar and treasury yields increased the opportunity cost of holding gold, causing gold prices to fall by 1.5% q-o-q in Q4 of CY24. Thereafter, prices rose sharply in Q1 of CY25, gaining 19.5% and surpassing the US$3,100 per ounce mark for the first time, owing to increased safe-haven demand and higher gold purchases by central banks.

Crude oil prices rose in October 2024, surpassing US$80 per barrel due to heightened tensions in the Middle East and Hurricane Milton in the US. However, prices softened and remained subdued thereafter in Q4 of CY24, hovering in the range of US$74-76 per barrel, driven by a mix of geopolitical and economic factors.

Crude oil prices again rose sharply from late December 2024 until mid-January 2025, reflecting sanctions on Russias energy sector, threats of tariff imposition, and cold weather conditions pushing the prices upwards. The crude oil price trend has softened since then, following a moderation in geopolitical risk premium and improved supply response from the Organization of the Petroleum Exporting Countries (OPEC+).

Headline inflation, which seemed to be decelerating, remained a bit above the target in many economies due to the lacklustre and uneven pace of disinflation, as well as the global uncertainties regarding the impacted supply chains in the earlier part of CY25.

Globally, Consumer Price Inflation (CPI) remained above the target in many countries as the progress of disinflation lost momentum due to geopolitical tensions. While core goods inflation has eased, services inflation has remained above pre-pandemic levels, especially in AEs.

Recently, due to receded tensions across the globe, lower- than-expected stimulus measures from China and ongoing ceasefire discussions in the Middle East continue to pull down prices; however, the anticipation of economic sanctions on Russia, escalated geopolitical and other trade tensions could have led to sporadic price surges.

On the back of softening inflationary pressures, the US Fed has initiated an easing cycle of the Fed fund rates from September 2024, lowering the target range for the Fed funds rate by 50 bps to 4.75% from a high of 5%. In its two subsequent meetings, that is, in November and December 2024, it reduced the federal funds rate by 25 bps each, lowering it to the target range of 4.25- 4.50%.

However, both the January and March meetings of the Federal Open Market Committee (FOMC) in CY25 left the policy rate unchanged. In its March 2025 meeting, the Fed noted that uncertainty around the economic outlook had increased due to Trumps trade tariff hikes. As per the Summary of Economic Projections released in its March meeting, the FOMC expected the target range for the federal funds rate to be at 3.75-4% by the end of CY25, indicating a further 50 bps rate cut in CY25.

Meanwhile, the European Central Bank (ECB) continued to ease its policy rate, lowering the deposit facility rate (DFR) by 25 bps each in its subsequent four meetings held between October 2024 and March 2025, and it cumulatively reduced the benchmark rate by 150 bps since it began its easing cycle in June 2024.

During the initial part of CY25, high-frequency indicators suggested a slowdown in growth momentum across the global economy and talks of random tariff imposition by the US government worsened trade-related tensions. It is feared that till the contours of trade tariffs do not get a final shape, doubts over the growth outlook in CY25 will continue to cloud the performance.

As per the Organization for Economic Cooperation and Developments (OECD) Economic Outlook, released in June 2025, global economic growth is projected to be 2.9% in CY25 against the earlier projection of 3.1%, and 2.9% in CY26 against the previous projection of 3%.

INDIAN ECONOMIC REVIEW

On account of the looming global risks to economic growth, the Indian economys performance remained marginal during the FY25 (FY2024-25), which is quite evident from the provisional estimates of the National Statistics Office (NSO) published on May 30, 2025. The real Gross Domestic Product (GDP) growth of the Indian

economy stood at 6.5% in FY25, as against 9.5% posted in FY24 (FY2023?€“24). On the supply side, real Gross Value Added (GVA) posted a weaker growth of 6.4% in FY25 against 8.6% recorded in FY24.

During FY25, agricultural GVA growth stood at 4.4% outperforming 2.7% over the previous year (FY24), while the growth rates of the industrial sector at 6.1% and for the services sector at 7.2% exhibited a lower trajectory over the previous year.

As regards inflation , headline inflation surged from 3.6% in July 2024 to 6.2% by October 2024 breaching the RBIs upper tolerance threshold and it was pushed by a jump in food inflation due to a spike in the price of vegetables and edible oils, which later eased food inflation due to a correction in vegetable prices leading to softening of headline inflation to 3.3% in March 2025.

During the H2 of FY25, headline inflation exhibited significant volatility due to food price shocks. However, pre-emptive monetary policy actions have helped mitigate the effects on underlying inflationary trends and sustain the disinflation process. The supply-side measures have also played a role in justifying the impact of sectoral price shocks on general inflationary trends.

A significant softening has been seen in Consumer Price Index (CPI) headline inflation in Q4 of FY25, driven by a sharp correction in food inflation and an anticipated robust agricultural production in the coming months, which is likely to moderate the expected inflation.

With an apparent cooling down of inflationary pressure, where both domestic and global factors have largely influenced the softened inflation trajectory led the RBI to shift its earlier hawkish monetary policy stance to an accommodative monetary policy stance. With the shift in the stance of monetary policy, the RBI swiftly lowered the policy repo rate by 100 basis points since February 2025.

A benign inflationary trend and softened lending rate scenario are expected to boost credit off-take, which will boost economic growth. Further, the RBI has been very frank in stating that there is scope for a further cut in the lending rate. Accordingly, the central banks Monetary Policy Committee (MPC) is determined to assess the incoming data and the evolving outlook to chart out the future course of monetary policy to strike the right growth- inflation balance.

With the current flux surrounding the trade tariff structure, the merchandise exports are likely to be weighed down, while services exports are expected to remain resilient. Nevertheless, headwinds from global trade disruptions and geopolitical tensions continue to pose downward risks to the outlook for the overall economic performance of the economy in the coming months.

ECONOMIC OUTLOOK FOR 2025- 26

The current uncertainties owing to the fear of higher trade tariffs by the US government on its trading partners, the geopolitical tensions owing to ongoing skirmishes in the Middle East and the Russia-Ukraine war could further cloud the economic growth globally.

Despite the risks of a global economic slowdown, a key underpinning of momentum due to the Indian governments proposed enhanced capex and its commitment to adopt emerging technologies in the public and private sector space would build robust and efficient long-term capacities and could support furthering the necessary business confidence for healthy economic growth.

Indias economic outlook remains resilient and forward- looking, which is strongly supported by a combination of structural strengths and a proactive policy regime provided by the Indian government and the RBI.

The growth trajectory seen lately is supported by a rise in aggregate demand from rural areas as well as a revival in urban consumption on the back of healthy balance sheets of corporates, the robust household and banking sectors, which are some of other factors that would support growth in FY26. These factors would get bolstered by an early resolution of geopolitical conflicts, adherence to fiscal consolidation and a sustainable debt path leading to a positive scenario.

Moreover, Indias dynamic demography continues to strengthen a growing trajectory in economic activities, demonstrating a markedly robust domestic demand and supplying a strong labour force, steering the road to reap higher demographic dividends.

Supported by several factors at play, the Indian economy is expected to hold steady at 6.5% y-o-y in FY26, which is expected to be in line with the past years performance. The economy is believed not only to emerge as the third- largest economy globally, but also to continue to be the fastest growing economy in the world.

NEW VISION MDA

Over the past couple of years, your Company has charted out a path to explore emerging technologies. Your Companys decision to proactively undertake such steps was a brilliant move as the Indian governments conducive policy environment remained supportive, and this would prove beneficial for higher revenue generation in the coming times.

Your Company, among other steps, has not only enhanced its range of products with the latest emerging technologies to enable it to support the current dynamic digital world. It also launched strategic business units to leverage the upcoming fields of digital technologies, including Artificial Intelligence, Web3.0, Machine Learning, Blockchain technology and Cybersecurity.

Steps in the direction of introducing its innovative product range with embedded advanced technologies would not only propel the performance of 63 moons but also expand the horizons for a larger play on the ever- evolving technological landscape. The strategic business ventures of your Company would provide a firm ground for robust performance and help 63 moons to penetrate into newer areas of operations and create a niche for itself.

The strategic ventures of your Company offer investors, traders, and other stakeholders confidence that will, in turn, help the management to undertake more ventures for promoting the future growth of your Company.

FINANCIAL POSITION AND RESULT OF OPERATIONS

Overview

The financial statements of the Company, including consolidated financial statements, have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 ("the 2013 Act") read with the Companies (Indian Accounting Standards) Rules, 2015, subsequent amendments thereto and the relevant provisions of the 2013 Act, as applicable.

The discussion on financial performance in the Management Discussion and Analysis relate to the standalone financial statement of the Company.

Equity Share Capital

Your Companys authorised share capital is Rs. 3,000 lacs, divided into 1,500 lacs equity shares of Rs. 2 each. The paid up share capital of your company stood at Rs. 921.57 lacs. During the year, there was no change in the paid-up share capital of your Company.

Other Equity

Your Companys other equity amounted to Rs. 286,352.68 lacs as on March 31, 2025 as against Rs. 286,682.77 lacs as on March 31, 2024.

During the year, there was no change in Securities premium account which stood at Rs. 41,746.62 lacs as on March 31, 2025.

During the year, there was no change in General reserve which stood at Rs. 32,579.86 lacs as on March 31, 2025.

Total Equity

Total equity stood at Rs. 287,274.25 lakhs as on March 31, 2025 as against Rs. 287,604.34 lacs as on March 31, 2024.

Deferred Tax assets (net)

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. At the year end, your Company has reported accrual of total net deferred tax asset of

Rs. 4,498.88 lakhs compared to Rs. 4,612.75 lakhs at the end of previous year.

Trade payable

At the end of the year, trade payables stood at Rs. 449.50 lakhs as compared to Rs. 623.95 lakhs at the end of previous year.

Other financial liabilities (current + non- current)

Other financial liabilities at the end of the year amounted to Rs. 11,360.58 lakhs as against of Rs. 10,411.85 lakhs at the end of previous year. It mainly includes Rs. 8,754.92 lakhs (previous year Rs. 7,833.35 lakhs) towards unpaid dividend, which has not been paid pursuant to the Honble Bombay High Courts ad interim order dated September 30, 2015 inter alia restraining the Company from distributing any dividend or depositing the same in the dividend distribution account in accordance with the provisions of the Companies Act, 1956 (to be read as Companies Act, 2013) pending the final hearing and disposal of the Notice of Motion. The matter is pending for hearing.

Current tax assets and liabilities

Current tax assets at the end of the year amounted to

Rs. 2,450.67 lakhs as against Rs. 5,614.29 lakhs at the end of previous year.

Other liabilities (current + non current)

Other liabilities at the end of the year amounted to

Rs. 3,561.72 lakhs as against of Rs. 3,076.24 lacs at the end of previous year. It mainly includes income received in advance / unearned revenue, statutory liabilities and other contractual obligations.

Provisions (current + non- current)

Total provisions as at the end of the year amounted to

Rs. 1,481.73 lakhs as against of Rs. 1,769.00 lakhs at the end of the previous year. It mainly includes provision for employee benefits viz. provision for compensated absences and gratuity.

Lease Liability (current + non- current)

At the end of the year, lease liability, accounted in accordance with Indian Accounting Standard (Ind AS 116 Leases), stood at Rs. 211.33 lakhs as compared to Rs. 517.11 lacs at the end of previous year. The decrease in amount is mainly due to reduction of lease liabilities in respect of discontinued operations.

Property, plant and equipment, right of use assets, investment properties and other intangible assets

The carrying value of property, plant and equipment, right of use assets, investment properties and other intangible assets is shown in the table below:

(Rs. in lakhs)

As on March 31,	2025	2024
(A) Property, plant and equipment
Freehold Land	4,836.18	4,836.18
Buildings	13,962.80	14,263.01
Office Equipments	566.04	334.15
Computer Hardware	847.97	668.63
Furniture and Fixtures	43.58	40.43
Vehicles	247.53	334.37
Total (A)	20,504.10	20,476.77
(B) Right of use assets	186.18	484.43
(C) Investment Property	9,818.56	10,028.62
(D) Other Intangible assets including Software, Trademarks etc.	32.50	89.23
Total (A+B+C+D)	30,541.34	31,079.05

Financial Investments (current + non- current)

The total financial investments (net of provision) as at March 31, 2025 were at Rs. 66,872.13 lakhs as compared to

Rs. 75,158.58 lakhs as at March 31, 2024. The investments mainly comprised of investment in bonds, mutual funds and investments in subsidiaries. The reduction as compared to previous year was mainly on account of write off / impairment of investment in debentures / bonds and fair value gain in respect of mutual funds units..

Trade receivables

As at the end of year, trade receivables (net of provision) were at Rs. 304.57 lakhs as compared to Rs. 942.22 lakhs at the end of the previous year. The decrease in amount is mainly due to reduction of trade receivable in respect of discontinued operations.

Cash & cash equivalents (including other bank balance)

At the end of the year cash & cash equivalent (including other bank balance) stood at Rs. 161,047.80 lakhs as compared to Rs. 111,475.19 lakhs at the end of the previous year. This included fixed deposits placed with banks

Rs. 1,59,834.41 lakhs (Previous Year Rs. 1,08,928.05 lakhs). The increase is mainly due to regrouping of long term bank deposits maturing within twelve months from non-current other financial assets to other bank balances.

Financial Assets:

loans (current + non- current)

At the end of the year, Loans and advances (current + non- current) (net of provision) amounted to Rs. 509.77 lakhs as against Rs. 508.88 lakhs at the end of previous year.

Other financial assets (current and non- current):

At the end of the year, other financial assets stood at

Rs. 31,167.90 lakhs as against Rs. 67,152.09 lakhs at the end of the previous year. The decrease is due to regrouping of bank deposits kept for longer duration during earlier years and maturing during twelve months, to other bank balances in current assets. It mainly includes fixed deposits with banks maturing after one year, deposit kept with Honble Bombay High Court in respect of a legal matter, deposit kept with Competent Authority in respect of proceeds from sale of ODIN business undertaking, interest accrued on fixed deposits / bonds, and other bank balances.

Other assets (current and non- current):

At the end of the year, other assets amounted to Rs. 6,968.50 lakhs as against Rs. 7,459.44 lakhs at the end of the previous year. It includes income tax paid for earlier years which are in appeals, prepaid expenses and advance for goods and services etc.

Revenue Analysis

During the year, revenue from operations (including discontinued operations) stood at Rs. 11,816.02 lakhs compared to Rs. 45,526.88 lakhs in the previous year. During the year ended March 31, 2024, the revenue from operations was higher due to revenue of Rs. 33,100.00 lakhs from a major client viz. Multi Commodity Exchange of India Ltd from new service arrangement for providing

support and managed services for commodity trading platform which ended in December 2023. Also, revenue from operation for current year includes revenue from ODIN business undertaking and MATCH, Other Services and Components business undertaking till the date of sale

i.e. January 20, 2025.

Other Income

During the year, other income stood at Rs. 15,609.03 lakhs as compared to Rs. 13,766.53 lacs in the previous year. The increase was mainly due to continuing higher interest rates on bank fixed deposits during the year. Other Income mainly includes interest from bonds, interest on bank deposits / investments, interest on Income tax refunds, gain / (loss) on fair valuation of financial assets, rental income etc.

Expense Review

The amounts of current year are not comparable with amount of previous year as expenses in respect of discontinued operations are considered till the date of sale

i.e. January 20, 2025.

During the year, employee benefits expenses (including discontinued operations) were at Rs. 12,108.36 lakhs as compared to Rs. 14,843.07 lakhs in the previous year.

Finance cost was Rs. 93.85 lakhs during the current year as compared to Rs. 89.26 lakhs during the previous year. Other expenses during the year were Rs. 10,878.95 lakhs as compared to Rs. 10,970.80 lakhs in the previous year.

Total expenses during the year was Rs. 24,487.30 lakhs as compared to Rs. 27,490.96 lakhs in the previous year.

Exceptional Items

During the year, exceptional items stood at loss of

Rs. 2,150.29 lakhs compared to Rs. 4,750.00 lakhs in previous year. Exceptional items during the year consists of profit on sale of ODIN business undertaking and MATCH, Other Services and Components business undertaking of Rs. 14,270.26 lakhs, write off of investment in bonds / debentures of Rs. 11,920.55 and write off of investment in its subsidiary viz. National Spot Exchange of India Ltd amounting to of Rs. 4,500.00 lakhs.

Profit / (Loss)

Your Company has reported net profit during the year (including discontinued operations):

Profit before finance cost, depreciation, exceptional items and tax was Rs. 4,437.74 lakhs, compared to profit of Rs. 33,179.54 lakhs in the previous year.

Profit before tax and exceptional items was Rs. 2,937.75 lakhs, compared to Profit before tax and exceptional items Rs. 31,802.45 lakhs in the previous year.

Profit before tax was Rs. 787.46 lakhs, compared to Profit before tax Rs. 27,052.45 lakhs in the previous year.

Net Profit after tax was Rs. 594.85 lakhs, compared to Net Profit after tax Rs. 26,921.63 lakhs in the previous year.

Other Comprehensive Loss, net of tax, for the year was

Rs. 3.37 lakhs as compared to loss of Rs. 52.17 lakhs in the previous year.

Total comprehensive Income for the year was Rs. 591.48 lakhs as compared to Total comprehensive income

Rs. 26,869.46 lakhs in the previous year.

CAUTIONARY STATEMENTS

This report may contain forward-looking statements about 63 moons technologies limited and its group companies, including their business operations, strategy, and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or concern future financial performance (including revenues, earnings, or growth rates), possible future Company plans and actions. Forward-looking statements are based on current expectations and understanding about future events. They are inherently subject to, among other things, risks, uncertainties, and assumptions about the Company, economic factors, and the industry in general. The Companys actual performance and events could differ materially from those expressed or implied by forward-looking statements made by the Company due to, but not limited to, important factors such as general economic, political, and market factors in India and internationally, competition, technological change, and changes in Government regulations.