Airan Ltd Management Discussions

Financial Year 2023-2024 Industry Overview

The Indian IT and Business Process Outsourcing (BPO) sector maintained its strong momentum in the financial year 2023-2024. Revenue surged to an estimated $210 billion, representing a robust 8.5% increase compared to the previous year. This growth rate surpassed the global average, as the industrys market size worldwide is projected to reach $360 billion by the end of 2024. Indias dominance in the IT-BPO space is undeniable, accounting for nearly 57% of the global outsourced IT services market.

The countrys competitive advantage stems from its vast pool of skilled professionals and cost-effective services. This combination has made India the preferred outsourcing destination for businesses worldwide. Airan Limited, with its Indian operations, is strategically positioned to leverage this domestic strength while serving a diverse and growing client base across multiple countries. This strategic positioning offers the company the dual benefits of cost-effective operations and global reach.

Our Business

Against the backdrop of the thriving Indian IT-BPO industry, Airan Limited has emerged as a key player, driving innovation and delivering exceptional value to its clients. Leveraging the countrys unique position as a global outsourcing hub, Airan Limited has strategically positioned itself to capitalize on the immense growth opportunities presented by the sector.

The companys commitment to excellence is reflected in its comprehensive suite of IT and IT-enabled services, including Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), Application Outsourcing, and E-KYC solutions. By combining cutting-edge technology with a highly skilled workforce, Airan Limited delivers tailored solutions that address the evolving needs of its clients across various industries.

As a trusted partner to businesses worldwide, Airan Limited is dedicated to:

• Client Success: Delivering innovative solutions that drive business growth and efficiency.

• Technological Excellence: Staying at the forefront of technological advancements to provide cutting-edge solutions.

• Employee Development: Fostering a culture of innovation and continuous learning for its employees.

• Sustainable Growth: Ensuring long-term sustainability through responsible business practices and ethical conduct.

With its strong foundation, strategic focus, and unwavering commitment to excellence, Airan Limited is poised to continue its upward trajectory and contribute significantly to the growth and development of the Indian IT-BPO industry.

Opportunities and Threats

The financial year 2023-24 has been a year of exceptional growth and expansion for Airan Limited, marked by several significant opportunities:

Geographical Expansion

• Global Footprint: Expanded our international presence to the UAE, establishing operations in Dubai and exploring opportunities in the Gulf region.

• Asia Pacific Dominance: Increased operations in the Asia Pacific region, adding services in Thailand and Malaysia.

• Domestic Expansion: Expanded field operations to new locations for doorstep banking, customer onboarding, and KYC activities across India.

Enhanced Service Offerings

• Technological Advancements: Launched a cutting-edge mobile application to streamline doorstep banking processes and reduce turnaround times for cheque and NACH transactions.

• Service Diversification: Upgraded transaction processing software outputs to improve efficiency and accuracy, expanding our service offerings.

• Market Penetration: Integrated services within the supply chain in Australia, strengthening our presence in the KPO market.

• Brand Visibility: Actively participated in local exhibitions and events to increase brand awareness and generate new business.

Strategic Investments

• Future-Proofing: Invested in Beacon Trusteeship Limited, a SEBI-licensed trusteeship listed on NSE Emerge, to capitalize on future growth opportunities in the financial services sector.

• Global Partnerships: Planned strategic partnerships and investments in developed markets like the USA, UK, Canada, and Australia to further expand our global reach and access new markets.

Emerging Trends

• Digital Transformation: Leveled up our digital capabilities to meet the increasing demand for digital solutions and services.

• Sustainability Focus: Aligned our operations with sustainable practices to address environmental and social concerns.

• Regulatory Compliance: Stayed ahead of evolving regulatory requirements to ensure compliance and mitigate risks.

Threats

These opportunities have not only contributed to our companys growth but have also positioned Airan Limited as a leader in the IT-BPO industry, ready to seize future opportunities and drive innovation.

Airan Limited faces several key threats that could impact its operations, including:

• Economic Downturns: A global economic downturn or a regional recession could lead to decreased demand for IT and IT-enabled services, affecting the companys revenue.

• Competitive Pressure: The IT and BPO industry is highly competitive, with numerous domestic and international players vying for market share. This intense competition can lead to price pressures, reduced margins, and difficulty in differentiating services.

To mitigate these risks, Airan Limited must focus on:

• Diversification: Expanding into new markets and service lines to reduce its reliance on any single sector or region.

• Innovation: Investing in research and development to stay ahead of technological advancements and develop innovative solutions.

• Talent Development: Investing in employee training and development to ensure that the company has the skilled workforce needed to meet evolving customer demands.

• Regulatory Compliance: Staying up-to-date with relevant regulations and ensuring compliance to avoid legal and financial penalties.

Internal Control Systems and Their Adequacy

Airan Limited remains committed to maintaining and enhancing its internal control systems, ensuring they are robust and responsive to the evolving business environment. Key developments in FY 2023-2024 include: Cybersecurity Enhancements: Advanced threat detection systems and quarterly cyber-attack simulations have been implemented to strengthen the companys defenses and incident response capabilities.

Regulatory Compliance: The company has updated its policies to comply with the new Data Protection Bill 2023 and international standards, ensuring legal and ethical adherence across global operations.

Real-time Monitoring: AI-driven analytics have been integrated into internal controls, allowing for the proactive identification and resolution of potential risks and operational inefficiencies.

Fraud Prevention: An AI-based fraud detection system has been deployed, successfully identifying and preventing several fraud attempts, further safeguarding the companys financial integrity.

Employee Training: Airan expanded its ethics training, conducting over 150 hours of sessions focused on accountability and integrity, alongside introducing an anonymous reporting mechanism for unethical behavior.

Risk Management: Continuous risk assessments were conducted, identifying and mitigating 15 new risks, including emerging threats such as geopolitical instability and supply chain issues.

Automation of Financial Processes: The company automated key financial processes to reduce errors and improve the accuracy and timeliness of financial reporting.

Sustainability Controls: New controls ensure compliance with environmental regulations and support the companys sustainability goals, reinforcing its commitment to corporate social responsibility.

As of March 31, 2024, the audit committee has concluded that Airans internal financial controls are adequate and effective, demonstrating the companys ongoing focus on governance and operational security.

AIRAN continues its efforts to align all its processes and controls with global best practices. Based on managements assessment (as defined in section 177 of the Companies Act 2013 and Regulation 18 of SEBI LODR Regulations 2015), Airans audit committee has concluded that, as of March 31, 2024, the companys internal financial controls were adequate and operating effectively. These internal controls are reviewed and updated continually to reflect the evolving nature of risks and to ensure that Airan Limited is safeguarded against both internal and external vulnerabilities while meeting its strategic objectives.

RATIO ANALYSIS

PARTICULARS	F.Y 2021-22	F.Y. 2022-23	F.Y. 2023-24
Revenue	9,319.36	10,035.03	9459.5
EBIT	1,264.49	1,443.33	1492.51
PAT	1,002.99	1,072.67	1133.57
NETWORTH	11,158.24	12,213.71	11453.41
CAPITAL EMPLOYED	12,063.35	13,155.92	12205.68
ROCE	10.48%	10.97%	12.39%

Registered office: For and on behalf of Board of Directors 408, Kirtiman Complex, B/h. Rembrandt Building, Airan Limited C. G. Road, Ahmedabad, Gujarat-380006. CIN: L74140GJ1995PLC025519

Date : August 31, 2024 Sandeepkumar Vishwanath Agrawal Place : Ahmedabad Chairman and Managing Director DIN 02566480