We are an AI enabled cloud, managed services, Data Centre infrastructure and software solutions provider
in India.
Our comprehensive Security-as-a-Service (SECaaS) framework enables businesses to proactively manage
threats and achieve robust security and compliance objectives.
We have long-term relationships with well-established banks and other businesses.
Strong Government Partnerships and Policy Advocacy.
AI-driven innovations and patented technology.
Transparent and flexible customized billing system.
Strength and experience of our directors, key managerial personnel and senior management team.
If the company fails to innovate in response to new technological changes and technological innovations, or
adapt to technological developments or evolving industry standards, its business, financial condition,
and results of operations could be adversely affected.
The company's revenue, directly or indirectly, from government entities and government projects represented
27.37%, 29.52%, and 34.04% of its revenue from operations for Fiscals 2026, 2025 and 2024,
respectively. Any changes in government policies or budgetary allocations or the company's ability to satisfy
eligibility and selection criteria in relation to outsourcing of services may adversely affect its
business, financial condition, results of operations and cash flows.
ESDS Cloud FZ-LLC, the Company's subsidiary, had a loss of Rs. 40.46 million and Rs. 60.19 million for
Fiscals 2025 and 2024, respectively. These losses represented (7.28%) and (44.23%) of the company's profit for
the year for Fiscals 2025 and 2024, respectively. Although ESDS Cloud FZ-LLC had a profit for the
year of Rs. 54.62 million for Fiscal 2026, there can be no assurance that ESDS Cloud FZ-LLC will not
incur a loss for the year in the future. If ESDS Cloud FZ-LLC were to experience a loss for the year
over continuous fiscal years, especially if the losses were large, its ability to operate its business as a
going concern may be adversely affected, which may requires it to raise additional financing, which
may not be available, and it would adversely affect the company's consolidated financial condition, results of
operations and cash flows. In addition, the Company could lose its investment in ESDS Cloud FZLLC
and may not repay the money it has lent to ESDS Cloud FZ-LLC, which would have an adverse
effect on its financial condition on a standalone basis.
Any unauthorized access to the company's network or data could harm its reputation, create additional liability
and adversely affect the company's financial condition, results of operations and cash flows.
In Fiscal 2026, the company's revenue from its top client and top 10 clients represented 15.93% and 45.36% of
the company's revenue from operations, respectively, and any loss or reduction of business from these clients
could have a material adverse effect on its business, financial condition, results of operations and
cash flows.
A substantial portion of the company's assets are hypothecated or mortgaged in favour of lenders as security for
some of its borrowings. As at March 31, 2026, 2025 and 2024, the total value of the company's hypothecated
current assets as a percentage of its total current assets was 96.72%, 88.96% and 84.84%,
respectively, and the total value of the company's mortgaged property, plant and equipment as a percentage of
its total property, plant and equipment was 18.89%, 27.05% and 56.62%, respectively. The company's lenders
may enforce the security in the event of its failures to service the company's debt obligations, which could
adversely affect its business, financial condition, results of operations and cash flows.
If the company is unable to collect receivables from, or bill its unbilled services to, the company's clients, its business,
financial condition, results of operations and cash flows could be materially adversely affected.
The company is exposed to macroeconomic downturns and geopolitical tensions, trade policies, and regulatory
changes in the countries its export to, which was primarily the United Arab Emirates for Fiscal 2026.
Any downturn in the macroeconomic environment in the countries the company export to, particularly, the
United Arab Emirates, increases in trade barriers, or the imposition of sanctions or increase in the
scope of sanctions, that the company is required to comply with in countries that its export to could adversely
affect the company's business, financial condition, results of operations and cash flows.
The company's business is highly dependent on its ability to allow the company's customers to have access to its services
on a continuous and seamless basis or within an acceptable amount of time. If the company is unable to prevent
disruptions to customers' access to its services it could adversely affect the company's reputation, business,
financial condition, results of operations and cash flows. The company is typically required to furnish
performance bank guarantees in connection with services or products provided by it. As at March 31, 2026, 2025 and 2024, the percentage of the company's performance bank guarantees as a percentage of its Net
Worth was 9.95%, 11.65% and 20.36%, respectively.
If the company inadvertently infringe on the intellectual property rights of others, its business and results of
operations may be adversely affected.
