Annual Report 2016-17

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The volatility in the currency can be very challenging to the proot margins. Following are the mitigation plans to

curb the impact of currency variations:

(a) :ith few bankers on the Board, we have the beneot of their e[perience and guidance. The Board reviews our

hedging strategy every quarter and revises it based on the changing global scenario.

(b) The company has adopted a policy to hedge its projected net e[port earnings on 12 months rolling basis

through plain vanilla forwards.

2.2 Credit Risk: Non-collection or delay in collection of customer dues is an important risk in business. All the indicators

suggesting the change in the onancial condition of the client need to be monitored. Structured process of collection

has been implemented. Regular follow-up process is done for all overdue invoices. Monthly collection targets are

set-up for all major customers and collections are tracked against the Targets. /egal action is initiated against

defaulting customers

Compliance related risks

3.1 Governance and compliance in new geographies: E[panding business in unknown territories leads to the risk of

governance and compliance of local regulatory laws. Understanding local regulations, statutory compliances is

vital to mitigate this risk. /ocal professional orms are hired to help us get educated about local laws and ensure

compliance.

Business model related risks

4.1 Customer Concentration: Dependency on few large customers can be a risk. Growth in the revenue from top

customers further increases this risk. About 53% of company’s revenue is derived by top 10 customers. This could

e[pose the company to various risks associated with it like price pressure, e[cessive dependency on the business

and economic conditions in which the customer operates etc. To mitigate this risk the company has created account

led growth approach.

Information Security Risk

5.1 Cyber Attack: Hacking attempts, Malwares are a common challenge in the recent world of increased cyber-crimes.

Conodential data can get compromised due to any such attempt. The Security Information department of the

company has implemented SIEM (Security Information and Event Management) to abate any risks of cyber-attacks.

Delivery IT environment is strengthened to reduce the risks. Endpoint controls are enhanced and any e[ternal

attacks are monitored proactively to avoid any business losses.