Inspirisys Solutions Ltd Management Discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENT
Global Economic overview

The global economy continued to struggle amidst
multifaceted challenges presented by the aftermath of
the pandemic, geopolitical instability, conflicts akin to war,
economic downturns, recessionary pressures, and the
rising cost of living in 2023. Reflecting on these adversities,
the resilience demonstrated is noteworthy. Despite facing
disruptions in energy and food markets due to conflict,
along with unprecedented measures taken globally to
combat soaring inflation rates, the global economy has
managed to navigate through these obstacles without
grinding to a halt. Nonetheless, the pace of growth
remains lethargic and uneven, underscoring the widening
disparities across different regions.

According to the IMFRs.s World Economic Update 2024,
global growth is anticipated to plateau at 3.1% in 2024
before a slight uptick to 3.2% in 2025, below the historical
average. Advanced economies may see a dip in growth
in 2024 before a rebound in 2025, with variations across
regions. Conversely, emerging markets are projected to
sustain stable growth, albeit with regional disparities.
Inflation is expected to moderate globally, with figures
forecasted to decline from 6.8% in 2023 to 5.8% in 2024
and 4.4% in 2025. Advanced economies are poised
for faster disinflation compared to emerging markets.
Monetary policy tightening is deemed necessary in many
nations to alleviate inflationary pressures, though it
might entail potential short-term impacts on growth and
financial stability.

Geopolitical factors and supply chain disruptions are
reshaping global trade patterns. Projected trade growth
rates for 2024 and 2025 fall below historical averages,
with implications for economic growth and geopolitical
dynamics. However, a modest rebound in export activity
is anticipated alongside improved world trade growth in
2024.

The conflict in Gaza and Israel has added further strain,
particularly in the Middle East and North Africa, historically
significant regions for global energy production. North
America and the European Union may face economic
ramifications, including trade disruptions and market
volatility if the conflict escalates or remains unresolved.
Achieving pre-pandemic levels of economic activity
appears increasingly distant, particularly for emerging
markets and developing economies.

The United States is expected to experience a significant
deceleration in growth ahead, although a full-blown
recession is not on the horizon. The resilience of US
growth can be attributed to renewed fiscal stimulus,
consumersRs. continued willingness to tap into accumulated
savings, and strong private-sector financial health. Thus
far, the impact of monetary tightening, particularly
through increased debt-service costs, has been relatively
constrained. However, growth is projected to sharply
decline next year due to decelerating household income
and profits, weakened credit and investment dynamics,
and a rise in real interest rates. The European economy

has struggled to gain traction this year, with mild technical
recessions unfolding in both the eurozone and the UK.
While the shock to terms of trade has alleviated, eurozone
exports are now facing headwinds from declining global
trade, compounded by tightening credit conditions that
are hindering investment, particularly as bank lending to
businesses recedes.

Amidst prevailing economic uncertainties, the IT sector
emerges as a beacon of growth and resilience. Projected
spending in the IT sector is expected to soar to $5 trillion in
2024, driven by investments in efficiency and optimization
projects. IT services are anticipated to dominate spending,
growing by 8.7% as enterprises invest in efficiency and
optimization amidst economic uncertainty.

To navigate shifting economic landscapes, companies
must embrace agility and flexibility, adjusting strategies
promptly in response to market dynamics. Diversification
across products, services, and markets provides stability
amidst industry-specific downturns. Efficient cost
management, coupled with innovative adaptation,
ensures competitiveness and sustainability. Prioritizing
customer relationships sustains revenue streams, while
robust financial planning and risk management mitigate
uncertainties. Continuous monitoring of economic
indicators enables proactive adjustments, reinforcing
adaptability as a cornerstone of success in turbulent
times. Amidst challenges, the IT sector remains a key
driver of growth and resilience, underscoring the pivotal
role of technology in navigating uncertain economic
terrains.

Indian Economy

India has emerged as a leading major economy globally,
propelled by its robust democratic framework and strong
international alliances. With aspirations to rank among
the top three economic powers within the next decade
or so, IndiaRs.s economic trajectory is a focal point of global
attention. The World Bank revised IndiaRs.s growth forecast
upward, citing the nationRs.s resilient domestic demand.
Forecasts indicate that India is on track to achieve a
growth rate of 7% or higher for the fiscal year 2024, with
similar expectations for FY 25.

Key economic indicators in India exhibit promising trends,
as noted by the World Bank. Economic growth surpassed
expectations in the fourth quarter of 2023, registering
an impressive 8.4% expansion compared to the previous
year. This growth has been fuelled by significant increases
in investment and government expenditure, contributing
to sustained strong performance. The services Purchasing
ManagersRs. Index (PMI) reached a three-month high
of 59 in December, buoyed by robust new business
and employment opportunities. The services sector,
constituting over 50% of IndiaRs.s GDP, continues to be a
significant driver of economic activity.

The governmentRs.s economic policy focus has been on
IndiaRs.s growth potential by revitalizing the financial sector,
improving conditions for business, and bolstering physical
and digital infrastructure to enhance connectivity. A
notable reform includes the shift in government-private
sector engagement towards a partnership model, with
the private sector assuming a co-pioneering role in

development. The introduction of a New Public Sector
Enterprise (PSE) Policy under the Aatmanirbhar Bharat
initiative aims to streamline government presence
in PSEs to strategic sectors, fostering private sector
participation. Numerous initiatives under Aatmanirbhar
Bharat and Make in India programs seek to boost IndiaRs.s
manufacturing capabilities and export prowess across
sectors.

Looking ahead, improving fundamentals are expected
to reinforce GDP growth, with projections ranging
between 6.9% and 7.2% for FY 2023 to 2024, followed
by growth between 6.4% and 6.7% in the subsequent
fiscal year. Government initiatives aimed at infrastructure
development and logistics enhancement are anticipated
to stimulate private investment and reduce business costs.
However, risks such as inflation and global uncertainties
persist, necessitating prudent policy measures. IndiaRs.s
economic landscape presents a blend of opportunities and
challenges, underscored by its resilience and potential for
sustained growth. Leveraging strengths in manufacturing,
digital innovation, and global competitiveness, India aims
to navigate uncertainties and emerge as a beacon of
economic stability and prosperity globally
IT Industry Outlook & Overview

As the IT industry prepares for the dynamic landscape
of 2024 amidst global economic shifts and geopolitical
tensions, reflections on 2023 reveal a year marked by
economic slowdowns and cautious measures to address
escalating inflation. Factors such as the spectre of
recession, ongoing conflicts, and supply chain disruptions
cast a pall over the global economy. However, thereRs.s a
glimmer of hope as global inflationary pressures ease,
fostering stable consumer confidence and neutral
sentiments worldwide. The stage is now set for a potential
global economic resurgence, sustained by relaxed
monetary policies, controlled inflation, and resilient
financial systems.

In this climate of mixed sentiments and economic
currents, the IT industry stands ready for a comeback
in 2024. Projections from reputable research firms like
Gartner paint a promising picture, forecasting worldwide
IT spending to hit $5.1 trillion, an 8% increase from the
previous year. Notably, both the software and IT services
sectors are poised for double-digit growth, primarily
propelled by investments in cloud technology. Public
cloud service spending is expected to surge by 20.4%
in 2024 and beyond, driven by a combination of price
hikes by cloud vendors and increased utilization. Despite
challenges posed by inflation in the devices market in
recent years, devices pending is projected to rebound
modestly in 2024, growing by 4.8%. Moreover, cyber
security spending continues to fuel growth in the software
segment, with 80% of CIOs and Technology Executives
planning to increase investments in cyber/information
security in 2024 and beyond, as reported by Gartner.
Breaking down spending into five major market areas,
data center systems spending is projected to grow to $260
billion in 2024, while the devices market is forecasted to
reach $722 billion. Software spending is expected to see
a significant increase from $916 billion in 2023 to $1.04

trillion in 2024, with communications services and IT
services markets also showing modest growth, reaching
approximately $1.5 trillion and $1.55 trillion, respectively.
Looking forward, the focus for Chief Information Officers
(CIOs) in 2024 will centre on expanding data platforms
and infrastructure to meet the growing demand for
GenAI and AI solutions. Prioritizing data integration,
quality, and architecture will be paramount, aligning with
the overarching goal of leveraging insights and fostering
innovation. These priorities are reflected in the top 15
objectives for CIOs in 2024 and beyond, which will also
shape IT spending decisions.

• Increasing operational efficiency

• Increasing cybersecurity protections

• Transforming existing business processes

• Improving customer experience

• Improving profitability

• Increasing employee productivity

• New product development

• Increasing top line revenue and improving TCO

• Developing new digital revenue streams

• Improving/optimizing employee experience

• Enhancing hybrid work technologies

• Improving talent acquisition/retention

• Meeting compliance requirements

• Monetizing company data

• Adhering to environmental, social, and governance
(ESG) standards

In addition, as highlighted in NASSCOMRs.s Indian Technology
and Industry overview, despite heightened global geopolitical
tensions impacting investment climates, the Indian technology
sector is poised for substantial growth in FY 2024. Projections
indicate industry revenues, including hardware, are set to soar
to $254 billion, marking a robust year-on-year growth of 3.8%.
Export revenues are projected to surpass $200 billion, with a
year-on-year growth of 3.3%, while the domestic technology
segment is expected to exceed $54 billion, showing solid year-
on-year growth of 5.9%.

The International Data Corporation (IDC) forecasts that
worldwide spending on digital transformation (DX) will
nearly reach $3.9 trillion by 2027, reflecting a compound
annual growth rate (CAGR) of 16.1% from 2023 to 2027. This
underscores the global priority of digital transformation as
organizations transition into digital businesses, leveraging
technology across various processes, products, services, and
experiences.

In conclusion, as the IT industry navigates opportunities and
challenges, a balanced approach to technology investment and
execution is vital. Embracing new technologies while mitigating
risks and ensuring alignment with strategic objectives will
be crucial. Strategic investments in IT will play a pivotal role
in maintaining competitiveness and fostering growth amidst
dynamic economic conditions.

B. OPPORTUNITIES & THREATS

Inspirisys Solutions Limited is strategically positioned with
a diverse array of offerings rooted in its solution capabilities
including Infrastructure, Cloud, Enterprise Security,

Banking, and Product Engineering & Development.
By harnessing its deep understanding of customersRs.
businesses, the company crafts bespoke solutions
aimed at delivering unique business outcomes, primarily
targeting key Industry verticals such as BFSI, Telecom,
Government/PSU, Manufacturing, and Healthcare.

In the ever-shifting landscape of technology, new entrants
in emerging tech fields are raising the bar for agility,
flexibility, and innovation, intensifying competition in
the technology services market. Artificial Intelligence
and Machine Learning are gaining prominence, with
organizations looking for a wide spread adoption of these
technologies. Our primary competitors are major global
technology service providers and companies that have
well established their technology and IT infrastructure
capabilities. Nevertheless, Inspirisys remains committed
to its transformation journey, aiding organizations in
embracing cutting-edge technologies that align with their
goals of achieving more with less-offering superior value
and enhancing their technological endeavours.

Our customers seek not only to navigate their digital future
but also to streamline efficiencies across their technology
infrastructure, applications, and core operations, striving
for cost leadership in their respective domains.

Through strategic partnerships, we have developed an
exclusive service portfolio and framework bolstered by
resilient governance structures. This approach enables
us to expedite our customersRs. progress towards their
objectives, providing them with technological solutions
and services. At Inspirisys, our guiding principle is
modernization, as we design modular offerings specifically
tailored to tackle real-world challenges and fulfil our
customersRs. needs. This improves efficiency, enhances
productivity, and drives the evolution of our customersRs.
operations. Furthermore, by integrating InspirisysRs.s
quality of service and digital transformation capabilities
into our value proposition, we further set ourselves apart
in the market.

IT Infrastructure, Cloud and Security

In the realm of Managed IT Infrastructure Services, the
market is poised for substantial growth, projected to
surge from USD 117.57 billion in 2024 to an estimated
USD 183.57 billion by 2029, exhibiting a robust CAGR of
9.32%. This surge is propelled by a growing trend among
companies to adopt managed infrastructure services as
a means to streamline IT operations and curtail costs,
particularly in the realm of data security and expenditure
reduction.

Key drivers of this growth include technological
advancements like cloud-based solutions and big data,
offering scalable options for modernizing IT infrastructure.
Additionally, addressing security concerns and upgrading
outdated hardware play pivotal roles in shaping IT budget
allocations, with organizations increasingly embracing
managed infrastructure services to navigate the demands
of the digital age with agility and innovation.

Indian enterprises, while exercising caution in IT services
investments due to macroeconomic headwinds, are
expected to ramp up investments in cloud, cybersecurity,
and emerging technologies like Generative AI and 5G in
the coming yeaRs.This aligns with a growing preference

among enterprises worldwide to transfer workloads
to data centers and public clouds managed by service
providers, resulting in sustained growth in hosted
application management and infrastructure services.

Our IT Infrastructure division, encompassing system
integration, infrastructure managed services, cloud, and
security, adopts a holistic approach to revitalize core
systems, enabling customers to embrace technological
advancements and reimagine their IT infrastructure. With
a comprehensive suite of solutions spanning data centers,
network management, digital workplace, and enterprise
security, we collaborate closely with customers to deliver
superior IT services, optimize investment efficiency, and
drive business innovation. Through our end-to-end Infra
services, customers benefit from our profound expertise,
skilled workforce, and advanced tools essential for
crafting, operating, and overseeing next-generation IT
architecture

Banking Solutions

In the dynamic landscape of 2024, the banking sector
stands on the brink of an unprecedented digital revolution.
The global core banking solutions market, valued at
approximately USD 16.69 billion in 2023, is projected to
undergo substantial expansion, surging to nearly USD
56.74 billion by 2032, with a forecasted CAGR of 14.56%
from 2024 to 2032. This surge is primarily propelled by
the increasing digitization of banking services and the
adoption of advanced technologies aimed at streamlining
operations.

Core banking solutions play a pivotal role in curtailing
operational costs, providing real-time transaction
information, and facilitating enhanced customer account
management across multiple branches. The burgeoning
demand for these solutions is fuelled by the escalating
adoption of core banking technologies, aiming to
augment customer experience through remote access to
a myriad of banking services. The integration of advanced
software services such as AI, Big Data, and IoT, coupled
with the widespread utilization of smartphones and
e-commerce platforms, further catalyses the demand for
digital banking services, thereby propelling the market
growth of core banking solutions.

Key focal points in the technological sphere for 2024 and
beyond encompass various critical areas, including:

1. Enhancing fraud detection capabilities by identifying
and flagging suspicious activities, and generating
comprehensive reports post-session.

2. Leveraging data visualization and analytics to derive
actionable insights from extensive datasets, facilitating
informed decision-making.

3. Streamlining database querying processes to enable
seamless data entry and retrieval from bank systems
without time lags.

4. Personalizing customer engagement and retention.

5. Optimizing loan processing procedures through
meticulous analysis of customer data, financial
eligibility, and credit scores.

The Indian Fintech industry is poised to soar to US$ 150
billion by 2025, solidifying IndiaRs.s position as the 3rd
largest FinTech ecosystem globally. Notably, the digital

lending market in India has witnessed an impressive CAGR
of 39.5% over the past decade, with projections indicating
that the Indian digital consumer lending market is set
to exceed US$ 720 billion by 2030, constituting nearly
55% of the total US$ 1.3 trillion digital lending market
opportunity in the country.

Aligned with the dynamic evolution of banking technology
and the escalating demand for digital innovations, our
Banking Practice is structured around fundamental pillars
including services around Core Banking Solution (Finacle),
Government Business Module (GBM), and Government
Business Suite (GBS). Through our suite of proprietary
IP-based Banking Solutions, we deliver secure and
feature-rich transaction capabilities tailored to meet the
distinctive needs of the banking sector, thus fortifying our
commitment to driving innovation and transformation in
the industry. We have created a Strategic Initiatives pillar,
solely to recognize emerging opportunities and offer
comprehensive support to banks as they commence their
digital transformation endeavours.

Product Engineering and Development

The global product engineering services market has
experienced remarkable expansion, surging to US$
1.2 billion in 2023, with forecasts projecting a further
ascent to US$ 1.8 billion by 2032, demonstrating a
robust CAGR of 4.9% during the period from 2024 to
2032. Concurrently, the global business software and
services market is on a trajectory of growth, propelled
by advancements in Artificial Intelligence and Machine
Learning, digital transformation initiatives, automation,
and escalating competition. Businesses are harnessing
these technologies to drive cost efficiencies, enhance
operational effectiveness, bolster security measures, and
leverage data analytics capabilities, signalling a promising
outlook for the future. Notably, 61% of businesses
are planning to escalate their technology investments
in 2024, with 92% considering AI-powered software
solutions. Economists at Deloitte have projected that
global investments in AI could soar to $200 billion by
2025, with the United States leading the charge.

Amidst the backdrop of global geopolitical tensions,
resulting in a more cautious investment climate and
deferred decision-making, IndiaRs.s technology industry
revenue (inclusive of hardware) is anticipated to surge
to $254 billion in FY 2024, marking a 3.8% year-on-
year growth, representing an addition of over $9 billion
compared to the previous year. Export revenues are
poised to breach the $200 billion milestone, registering a
3.3% year-on-year growth, while the domestic technology
sector is expected to surpass $54 billion, marking a
robust 5.9% year-on-year growth. The Indian IT sector,
which experienced a contraction in hiring amidst a global
economic slowdown and funding constraints, is poised
for a positive turnaround, with projections indicating an
8-10% increase in hiring in 2024 and beyond.

India stands as the premier offshoring destination for
IT companies worldwide, showcasing its prowess in
delivering both onshore and offshore services to global
clientele. The IT industry contributed 7.4% to IndiaRs.s GDP
in FY 22, with expectations to elevate its contribution to

10% by 2025, and is poised to surpass the US$ 350 billion
mark by 2026.

Amidst this transformative wave, InspirisysRs.s Product
Engineering Division (PeD) emerges as an entity, offering
bespoke services tailored to the current technology
landscape and emerging trends. From Cloud Services
and Data Science to DevOps, RPA, Artificial Intelligence,
Machine Learning, Analytics, Testing & Test Automation,
and Consulting, we empower businesses worldwide
to thrive in the digital era by providing comprehensive
solutions and expertise

C. HUMAN RESOURCE MANAGEMENT

In recent years, the realm of human resource management
has undergone a transformative journey. As the global
business landscape has evolved, so too have the
strategies and methodologies for talent management and
organizational development. In 2023, business leaders
and organizations confronted significant shifts impacting
the workplace, including inflationary pressures affecting
both employer and employee budgets, the emergence
of generative AI (GenAI), geopolitical instability, notable
labour strikes, heightened debates over return-to-
office (RTO) mandates, and evolving legal and societal
landscapes surrounding DEI initiatives, among other
factoRs.Leaders who proactively devise explicit business
and talent strategies to navigate these trends will confer
a competitive edge upon their organizations in terms of
talent outcomes and the achievement of strategic goals.
The practice of cross-training employees across various
domains carries substantial long-term advantages, as
employees with proficiency across multiple domains are
better positioned to adapt as roles evolve with emerging
technologies and business paradigms. This approach
is particularly appealing for organizations facing the
prospect of losing decades of institutional knowledge and
specialized expertise.

The focal point for the current year and the subsequent
five years will be on elevating employee experiences,
nurturing diverse talent pools, and fostering a culture
of continual learning and development. By prioritizing
initiatives aimed at empowerment and engagement, an
environment can be cultivated where each individual
can thrive and contribute to the collective success of the
organization.

Prioritizing safety and security necessitates the
implementation of robust measures to establish a
secure working environment. Creating a safe workplace
entail adopting policies on the Prevention of Sexual
Harassment at the Workplace (POSH) in compliance with
the requirements of The Sexual Harassment of Women at
the Workplace (Prevention, Prohibition & Redressal) Act,
2013. These policies are gender-neutral and entail the
formation of an Internal Complaints Committee (ICC) to
address complaints related to sexual harassment. Such
measures underscore the organizationRs.s dedication to
providing a safe and inclusive workplace for all employees.
In conclusion, as organizations navigate the complexities
of the modern business landscape, it becomes
increasingly clear that success hinges on their ability
to adapt, innovate, and prioritize the well-being and
inclusion of their workforce. By proactively addressing
challenges such as evolving technological landscapes,

shifting societal norms, and the imperative for diversity
and equity, leaders can position their organizations for
long-term resilience and competitiveness.

D. FOCUS AREAS OF THE COMPANY

The key areas of the Inspirisys is to focus on high value
and high Margin services business in India.

More focus to increase the share of the offshore and
onsite business is essential to be invested in. Continue to
work with customer to identify products in the new areas
of compliance, Statutory changes, Risk areas for target
private and PSU sector.

With CMMI Level 5 certification, ISL aims to keep up
with continuous improvement on the delivery process
and Framework to improve the delivery quality. A strong
governance and monitoring is put in place to ensure to
achieve. Stringent awareness to teams is being ensured
to achieve delivery excellence.

ItRs.s imperative that Inspirisys as a Technology company
providing various services to its customers continuously
should be abreast of various technology trends to
propose right solutions to the customers achieve apt
solutions for their business problems. Inspirisys continues
to invest in Artificial Intelligence, Machine Learning as
it is the technology of future. With the varied offerings
and capabilities being built in the new technologies, the
company is geared to offer a wide spectrum of services
that are in demand both in domestic and overseas
markets. The ability to stitch together complex, integrated
solutions that address the needs of all stakeholders in the
enterprise, along with the high levels of trust engendered
in customer relationships, helps us to win transformation
deals.

Cloud Technologies, Data Engineering, Analytics
continue to be the areas customers expect to capitalise.
Also, the shift towards these recent technologies like
Cloud, Automation, Artificial Intelligence etc. and our
investments on these will prove right opportunities.

BFSI, Manufacturing, Telecom and Healthcare Domain
specific solutions and GTMs will provide end to end
solutions extend better foot print with existing as well as
prospective clients.

E. BUSINESS ANALYSIS BY DIVISION

Inspirisys is a system integrator that can provide
technology solutions for customer problems. As a part
of customer Digital Transformation journey, the gamut of
Technology services includes the following :

• Digital Transformation journey consultancy and road
map

• AI/ML Maturity Road Map consultation

• Application Modernization, Development,
Re-engineering

• Cloud Enablement, Native Application Development

• Data Engineering and Migration

• Mobile Application development

• Managed Services and Tools & Automation.

The Product Engineering & Development Practice
continues to focus on Cloud Based Application Solutions,
Application development, Technology refresh, Robotic
Process Automation, DevOps, Analytics, Artificial
Intelligence, Machine Learning. Besides, our Microsoft
Dynamics offering is promising with the growing demand
in the Middle East market.

ISLRs.s exclusive IP & USP Solution viz. GBS (Govt.
Business Suite) and GBM. It is leading, feature rich and
comprehensive solution for remittances and payment
of government Payments and Receivables. This GBS
is enhanced version of GBM. GBS is highly scalable,
secure version of GBM built using newwe architecture
and technologies. ISL is also trusted implementation
partner Edgeverve. We continue our relationship
as an implementation partner for Finacle providing
Implementation, Migration, Support & Customization
as an offering and have been instrumental in multiple
migrations. ISL is well geared with most recent versions
(11.x) of Finacle and also build team on Digital Layers of
Finacle.

ISL is certified for CMMI Level 5 Certification to gear up
ISL for Global delivery Practices. Gearing ISL for global
business when the overseas markets return better from
the current recession due to conflicts across countries.

F. RISK MANAGEMENT

The Board continues to provide the guidance to the
company in terms of ascertaining the risk factors as
applicable to the companyRs.s business and providing the
direction to assess and mitigate the same. The company
periodically assesses the risks involved in the business
and reports to the Board for them to take necessary steps
in mitigating them.

G. DETAILED REVIEW OF FINANCIAL PERFORMANCE

The financial statements are prepared in compliance with
the Companies Act, 2013 and Ind AS.

The following table gives an overview of the financial
results of the company on a consolidated basis:

Particulars	Year ended 31 March 2024		Year ended 31 March 2023
	Rs. in Lakhs	%	Rs. in Lakhs	%
Revenue
Revenue from operations	49,049	99%	37,167	99%
Other income	373	1%	487	1%
Total revenue	49,422	100%	37,654	100%
Expenses
Material / Service Costs	19,456	42%	10,953	30%
Employee Benefit expense	12,264	27%	11,371	33%
Other expenses, including impairment losses	14,143	31%	11,949	37%
Total expenses	45,863	100%	34,273	100%
EBITDA	3,559	7%	3,381	9%
Finance costs	1,058	2%	778	2%
Depreciation and amortization expense	458	1%	557	1%
Profit / (loss) before tax and exceptional items	2,043	4%	2,046	6%
Profit / (loss) before tax	2,043	4%	2,046	6%
Tax expense	497	1%	411	1%
Profit / (loss) for the year	1,546	3%	1,635	-
Profit from discontinued operations (net of tax)	(1,179)	1%	(1,889)	-
Profit for the year	367	1%	(254)	-1%
Other comprehensive income for the year, net of tax	107	-	(662)	-2%
Total comprehensive income for the year	474	1%	(916)	-2%
Total comprehensive income after Minority Interest	474	1%	(916)	-2%

H. REVENUE ANALYSIS

BUSINESS MIX	FY 2024	%	FY 2023	%
SI - System Integration	21,337	42.9%	12,117	31.0%
Services	27,162	54.7%	25,644	65.8%
WMS - Warranty Management Services	1,186	2.4%	1,247	3.2%
TOTAL	49,685	100%	39,035	100%

I. DEPRECIATION AND AMORTIZATION

The Company has been following straight-line basis of
depreciation and has depreciated assets based on the
rates mentioned in the Companies Act. In respect of
application software, estimated useful life of the assets
is taken as 7 years and has accordingly amortized the
value of the software assets capitalized. Intangible asset
in the form of goodwill is being amortized over a period of
ten yeaRs.Considering the indefinite life of the goodwill,
the Amortisation of goodwill has been stopped from
the financial year 2018-19. This asset will be tested for
impairment at the end of every financial year.

Adoption of Ind AS 116:

The lease liability is measured at the present value of the
lease payments to be made over the lease term. Lessees
accrete the lease liability to reflect interest and reduce
liability to reflect lease payments made. The right of use
asset is initially measured at the amount of the lease
liability, adjusted for lease pre-payments, lease incentives
received, lesseeRs.s initial direct cost and an estimate of

restoration, removal and dismantling costs. The related
right of use asset is depreciated in accordance with the
depreciation requirements of Ind AS 116.

J. FINANCING COSTS

The Company had obtained working capital loans from
Japanese banks at a much lower cost on account of
guarantees from CAC Holdings Corporation, Japan, the
holding company. The Company obtained sanction of
working capital limits from an Indian bank without any
Corporate Guarantee.The finance cost at consolidated
level is higher than last year due to Increase in interest
rates on existing loans and additional loans taken by
subsidiary companies.

K. TAXATION

The company on account of the brought forward business
losses did not provide for the tax under the normal
computation. Accordingly, the tax has been provided
under the provisions of MAT. Further on account of losses
in the overseas subsidiary no taxes are provided for the
year under review for the overseas subsidiary companies.

The Consolidated Balance Sheet of Inspirisys Solutions Limited is given below :

Consolidated Balance Sheet of Inspirisys Solutions Limited

Particulars	As at 31 March 2024	As at 31 March 2023
ASSETS
Non-current assets
Property, plant and equipment	464	450
Goodwill	542	542
Right of Use	59	204
Other Intangible assets	299	363
Intangible asset under development	81	42
Financial assets
- Trade receivables	73	39
- Other financial assets	60	198
Income tax assets (net)	3,091	3,199
Other non-current assets	1,199	509
	5,868	5,778
Current assets
Inventories	386	364
Financial assets
- Trade receivables	9,818	8,348
- Cash and cash equivalents	4,773	3,081
- Other bank balances	1,137	122
- Other financial assets	679	697
Other current assets	3,573	2,813
Discontinued operations	59	-
	20,425	15,425
Total assets	26,293	21,203

Consolidated Balance Sheet of Inspirisys Solutions Limited

Particulars	As at 31 March 2024	As at 31 March 2023
Equity
Equity share capital	3,962	3,962
Other equity	(1,033)	(4,799)
	2,929	(837)
Non - Controlling Interests
Non - Current liabilities
Financial liabilities
- Borrowings	584	553
Lease liability	15	77
Provisions	87	921
	686	1,551
Current liabilities
Financial liabilities
- Borrowings	8,135	9,715
Lease Liability	54	159
- Trade payables	6,116	4,789
- Other financial liabilities	3,368	2,837
Other current liabilities	4,685	2,703
Provisions	269	286
Discontinued operations	51	-
	22,678	20,489
Total equity and liabilities	26,293	21,203

Key Ratios on Standalone basis

		Year ended
Description	U/ M	31-Mar-24	31-Mar-23	Remarks
Debtors Turnover	Days	104	120	Decrease is due to Higher sales in the fourth quarter of Last Year re- sulted in increase in debtors as at March 31, 2023.
Inventory Turnover	Days	2.93	3.69	Optimization of inventory holding for services business brought down inventory days cover.
Interest Coverage Ratio	Times	4.55	4.39	Due to higher profit the company is able to fulfil its financial obligations
Debt Equity Ratio		0.4:1	0.5:1	Reduction in Working Capital borrowings resulted in Ideal Debt Equity Ratio for the company.
Operating Profit Margin	%	8%	9%	Increase in revenue of a large project in System Integration Business with Low Margin resulted in decrease in operating Profit margin in percentage terms for FY24.
Net Profit Margin	%	4%	5%	Increase in Revenue and low margin in System Integration business as explained for Operating profit margin had resulted in decrease Net Profit margin in percentage terms.
Return on Networth	%	19%	20%	The Increase in Net profit is not proportionate to increase in networth compared to Last year.