TechNVision Ventures Ltd Management Discussions

Overview

Global Economic Outlook for 2026: Trends, Influences, and Risks

The World Economic Outlook (WEO) published by the International Monetary Fund (IMF) projects continued moderation in global economic growth amid heightened geopolitical tensions and energy-price shocks. According to the IMFs April 2026 WEO, the global economy is projected to grow by 3.1% in 2026 and 3.2% in

2027, down from 2.9% in 2025 (IMF, 2026). These figures reflect sustained below-potential growth, remaining well below the historical average of 3.7% observed over the 2000–2019 period.

Several structural and cyclical factors are contributing to this global slowdown:

Key Factors Influencing Global Growth

• Trade Policy Uncertainty: Rising protectionism and trade tensions are disrupting global supply chains and reducing cross-border investment, thereby dampening trade-driven growth (IMF, 2026).

Geopolitical Risks: Ongoing conflicts and geopolitical instability, especially in key energy-producing and trade-relevant regions, continue to weigh heavily on investor confidence and economic activity.

Inflation Dynamics: While inflation has moderated in several advanced economies, it remains elevated or resurgent in others, complicating monetary policy responses (IMF, 2026).

Monetary Tightening: Higher interest rates and tightening financial conditions in both advanced and emerging markets are expected to constrain domestic demand and investment.

Risks to the Outlook

The global economic outlook remains fragile and is subject to several downside risks, including:

• Further escalation of trade tensions or the imposition of new trade barriers.

• Slower-than-anticipated recovery in major economies such as the United States, China, or the Eurozone.

Intensification of existing geopolitical conflicts or emergence of new ones.

• Increased frequency and severity of climate-related natural disasters.

• Rising debt levels in developing and middle-income countries, raising concerns about sovereign defaults.

Volatility in global financial markets, driven by shifts in investor sentiment or abrupt policy changes.

If these risks materialize, they could further hinder recovery efforts and extend the period of subdued global growth.

The financial statements have been prepared in compliance with the requirements of the CompaniesAct 2013, and Indian Accounting Standards (IND AS). The Management of TechNVision accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein.

The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present the Companys state of affairs and profits for the year. The following discussion may include forward looking statements which may involve risks and uncertainties, including but not limited to the risks inherent to Companys growth strategy, dependency on certain clients, dependency on availability of qualified technical personnel and other factors discussed in this report.

1. Industry Structure, Developments, and Outlook

As part of our transformation journey, we have realigned our sales, services, and engineering functions to streamline operations and accelerate innovation. This organizational shift supports a simplified operating model that enables faster execution and a sharper focus on three strategic pillars, now reinforced by the launch of

Solix Enterprise AI:

1. Enterprise AI Cloud Transition

With the introduction of Solix Enterprise AI, we are enabling customers to transition legacy applications and data workloads to an AI-ready cloud infrastructure. This includes support for large-scale application retirement, AI-powered data discovery, and foundation model–ready data pipelines, empowering organizations to build intelligent systems on top of their enterprise data.

2. Big Data & Governance

We continue to lead with our expertise in data archiving, governance, and lifecycle management, now enhanced with AI capabilities for automated classification, policy enforcement, and data compliance. The

Solix Enterprise Data Governance (EDG) platform ensures organizations can govern massive volumes of structured and unstructured data—with policy-based retention, legal hold, role-based access, and Information Lifecycle Management—while preparing it for analytics and AI workloads (Solix Technologies, 2026).

Complementing its governance capabilities, Solix Data Sense—launched in July 2026—delivers an AI-ready data intelligence layer that automatically maps enterprise database schemas into an Application Knowledge Graph (AKG), enriching data with semantic meaning across Oracle EBS, SAP ECC/S4HANA,

PeopleSoft, and JD Edwards environments. Through Content Intelligence and Intelligent Classification,

Data Sense transforms raw enterprise data into a governed, AI-activated foundation, enabling accurate natural-language querying, compliance categorization, and lifecycle management at enterprise scale (Solix Technologies, 2026).

3. Enterprise Receivables Management – Digital Assistants

Our focus on digital transformation within finance operations is expanding with digital assistants. These solutions streamline receivables processes, improve customer interactions, and deliver real-time insights for better cash flow forecasting, risk assessment, and automation of routine tasks.

For cloud infrastructure, IDC projects global public cloud spending to surpass $1 trillion in 2026—representing more than 21% year-over-year growth—driven by surging enterprise AI adoption, SaaS migration, and PaaS-led application modernization (IDC, 2026).

The Enterprise Artificial Intelligence (AI) market was valued at USD 114.87 billion in 2026 and is projected to reach USD 273.08 billion by 2031, growing at a compound annual growth rate (CAGR) of 18.91% from 2026 to 2031, according to Mordor Intelligence. Growth is driven by the widespread deployment of intelligent software environments, AI-powered automation across customer engagement and operations, the integration of machine learning and natural language processing into core enterprise platforms, and deepening reliance on scalable cloud infrastructure to support AI workloads.

Enterprise AI is becoming a foundational element of modern digital infrastructure. Businesses are increasingly investing in AI-ready platforms ,efficiency and architectures togaincompetitiveadvantage,improve accelerate innovation. This momentum is driving increased demand for advanced compute, storage, and networkingcapabilities tailored specifically for AI workloads.

Consequently, AI-related infrastructure spending is expected to rise sharply, supporting large-scale digital transformation across industries.

For 2026, IDC marks a historic milestone: global public cloud spending crossing the $1 trillion threshold for the first time (IDC, 2026), with more than 21% year-over-year growth. PaaS is the fastest-growing category at over 37% growth, while SaaS continues to account for more than half of total public cloud spending. Non-cloud infrastructure spending is declining, reflecting the decisive enterprise shift to cloud-native models.

A key driver of cloud spending acceleration is generative AI infrastructure. Gartner forecasts that data center systems spending will grow by 62.5% in 2026 to $822 billion, while IaaS—which directly underpins AI cloud workloads—will expand 29.3% to $287 billion. Data centers are being re-architected for AI, with liquid cooling, specialized silicon (including AI-optimized GPUs and NPUs), and high-speed networking deployed to meet the power and performance demands of AI training and inference at scale.

This significant shift underscores a broader trend where shared cloud infrastructure spending is set to outpace all non-cloud infrastructure investments, driven by enterprises scaling up cloud-native AI workloads at unprecedented levels. Vendors that can offer scalable, cost-effective, AI-optimized capacity—particularly for generative AI and agentic AI use cases—are becoming increasingly preferred by enterprises globally.

This growth is largely driven by the rising demand for AI and digital transformation initiatives, which are pushing enterprises to invest more in cloud technologies.

According to recent reports by IDC and DataCenter Dynamics, enterprises are undergoing a significant shift in infrastructure and digital strategy, placing greater emphasis on cloud, AI, and data governance to drive competitiveness and agility.

Non-Cloud Infrastructure: While the broader market is decisively pivoting to cloud-first models, non-cloud infrastructure spending continues to decline. The enterprise shift to cloud-native architectures, AI-optimized data centers, and SaaS platforms has accelerated this transition, with organizations increasingly retiring on-premise legacy systems in favorofscalable,flexible . cloud solutions(IDC, 2026)

Data Governance: As cloud adoption and AI integration expand, data governance has emerged as a critical priority. Enterprises are ramping up investments in compliance, data privacy, and risk management tools to meet evolving regulatory standards and protect sensitive information across hybrid environments. Governance frameworks are now essential to scaling digital operations responsibly.

Enterprise Receivables Management: Digital transformation in finance continues to gain momentum.

Organizations are increasingly adopting AI-driven, automated receivables management solutions to enhance cash flow visibility, reduce manual processing errors, and improve collection efficiency. These intelligent systems are reshaping how enterprises manage and optimize working capital.

Digital Assistants: Advancements in AI and natural language processing are fueling the widespread adoption of digital assistants across enterprise functions. From customer service to internal operations, these tools are improving engagement, accelerating decision-making, and driving productivity gains. Their integration into core systems is expected to deepen in the years ahead.

Solix Data Ask—generally available since July 2026—operationalizes this through a natural-language interface grounded in the Application Knowledge Graph.

Finance and operations teams can query ERP and receivables data directly in plain English—retrieving AR ageing analysis, AP exposure summaries, close diagnostics, and supplier spend breakdowns—without SQL expertise or IT queuing. Permission-checked at the data layer with full audit trails and PII filtering, Data Ask delivers enterprise-grade, compliance-ready intelligence on demand (Solix Technologies, 2026).

The overall investment landscape underscores a clear enterprise focus on cloud infrastructure, AI-driven automation, and governance. With digital maturity becoming a competitive differentiator, organizations are prioritizing technologies that support agility, innovation, and compliance in an increasingly data-intensive economy.

2. Economy Overview:

According to the International Monetary Funds (IMF) World Economic Outlook (WEO) of April 2026, the global economy is navigating a period of heightened uncertainty driven by renewed geopolitical tensions, an energy price shock, and persistent inflationary pressures. Growth is projected to remain modest and uneven across regions.

Global growth is projected at 3.1 percent in 2026 and 3.2 percent in 2027, below the historical (2000–19) average of 3.7 percent. The IMFs April 2026 World Economic Outlook reflects a downward revision driven by geopolitical tensions and an energy shock stemming from the escalating Middle East conflict.Advanced economies are expected to grow at 1.8 percent in 2026, led by the United States at 2.3 percent, while the Euro Area is forecast at 1.1 percent. Emerging markets and developing economies are projected at 3.9 percent in

2026, with India leading at 6.5 percent and China at 4.4 percent. Global headline inflation is expected to rise to 4.4 percent in 2026, easing to 3.7 percent in 2027, converging back to target earlier in advanced economies than in emerging market and developing economies.

Medium-term risks to the baseline are tilted to the downside, while the near-term outlook is characterized by divergent regional trajectories. The Middle East conflict has become the dominant force shaping global economic prospects, prompting an energy shock—with Brent crude projected to average $94 per barrel in

2026, some 36% above 2025 levels that is driving inflationary pressures and constraining real incomes globally. Policy-generated disruptions to the ongoing disinflation process could interrupt the pivot to easing monetary policy, with implications for fiscal sustainability and financial stability.

Managing these risks requires a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms as well as stronger multilateral rules and cooperation.

Additionally, the OECDs June 2026 Economic Outlook revised global GDP growth downward to 2.8% for

2026 from a prior estimate of 3.4% citing the energy shock driven by the escalating Middle East conflict and rising inflationary pressures. The downgrade is most pronounced in energy-importing economies across Europe and Asia, while the overall global trend reflects one of sustained moderation.

The OECDs latest Economic Outlook indicates that the global economy is facing headwinds, including trade barriers, tighter financial conditions, and increased policy uncertainty, which are expected to dampen growth.

While some economies like the Euro area are expected to see a modest increase in growth, the overall global trend is one of moderation.

Global Per Capita Income Trends: 2026 Outlook

Based on the World Banks Global Economic Prospects June 2026 Update

The World Banks June 2026 Global Economic Prospects report offers critical insights into growth and income trends across regions, highlighting the uneven pace of recovery and the new headwinds posed by rising energy prices and geopolitical instability in 2026.

Emerging and Developing Economies (EMDEs)

According to the World Banks June 2026 Global Economic Prospects, developing economies are projected to grow at 3.6% in 2026—a post-pandemic low—down from 4.4% in 2025, before recovering to 4.2% in 2027. South Asia remains the fastest-growing region globally, projected at 6.3% in 2026. The report emphasizes that many developing countries continue to grapple with the aftermath of the pandemic, high debt burdens, inflation shocks, and now the spillover effects of elevated energy prices. In fact, a substantial share of low-income economies are projected to remain below their pre-pandemic per capita income levels through 2026 (World Bank, 2026).

United States

The U.S. economy is forecast to grow at 2.3% in 2026 and 2.1% in 2027, according to the IMFs April 2026 WEO. While the United States remains one of the more resilient advanced economies, elevated interest rates, residual inflation pressures, and policy uncertainty continue to restrain consumer spending and business investment.

China

Chinas growth is projected at 4.4% in 2026 and 4.0% in 2027, according to the IMF. Structural headwinds—including weak domestic demand, an aging population, increasing trade restrictions, a sluggish property market, and rising geopolitical tensions—continue to weigh on the economy. The spill-over effects of the global energy shock add further pressure on Chinas industrial base (IMF, 2026).

Eurozone

The Euro Area is forecast to grow at just 1.1% in 2026 and 1.2% in 2027, according to the IMF, making it one of the most exposed regions to the current energy shock. Elevated energy costs, ongoing geopolitical uncertainty stemming from the Middle East conflict and tensions at Europes eastern borders, and persistent inflation continue to constrain household incomes and business investment across the region.

Asia (Excluding China)

South and Southeast Asia are projected to remain among the fastest-growing regions globally, although the pace of growth is expected to moderate compared to earlier post-pandemic years. Countries like India, Indonesia, and Vietnam are likely to continue showing resilience, supported by robust domestic demand and service exports.

Australia, New Zealand, and Oceania

The Oceania region is anticipated to see more stable income growth relative to other advanced economies. While global economic uncertainty and climate-related risks remain concerns, Australia and New Zealand benefit from strong fiscal frameworks and diversified trade relationships, which are expected to support moderate per capita income gains over the next two years.

As 2026 unfolds, global income disparities remain a significant concern. While some economies are regaining momentum, others, particularly fragile or conflict-affected states, continue to lag behind. A combination of sound policy, debt management, and investment in productivity-enhancing sectors will be crucial for narrowing the income gap in the coming years.

Source: World Bank Global Economic Prospects – June 2026

IT Industry Outlook:

Gartner forecasts worldwide IT spending to reach $6.37 trillion in 2026, a 14.2% increase from 2025 (Gartner, July 2026)—the strongest growth rate in years. Data center systems are the fastest-growing segment, up 62.5% year-over-year to $822 billion, driven by accelerating investment in AI infrastructure. Software spending is projected at $1.47 trillion (up 15.5%), while IaaS is expected to grow 29.3% to $287 billion. According to Gartners John-David Lovelock, ‘building the compute capacity required for AI is the largest infrastructure project ever attempted by humanity, underscoring the scale of AI-driven investment reshaping the technology landscape.

The 2026 enterprise technology landscape is defined by the rapid rise of agenticAI. Gartner predicts that by end of 2026, 40% of enterprise applications will feature task-specificAI agents up from less than 5% in 2025, an approximately 8x increase in a single year (Gartner, 2026). These autonomous agents are performing complex, multi-step tasks across finance, customer service, supply chains, and IT management, driving efficiency and reshaping enterprise operations. Alongside AI, concerns continue to reshape technology priorities, with firms adoptingAI-driven threat detection and Zero

Trust architectures.

In parallel, the tech industry faces an increasingly complex risk and sustainability environment. Cybersecurity, geopolitical tensions, and climate concerns are reshaping priorities, with firms adoptingAI-driven threat detection and Zero Trust architectures. Hardware innovation is accelerating to meet AI demands, including advancements in semiconductors, IoT, robotics, and spatial computing.

Additionally, supply chain diversification and a push toward energy-efficient technologies signal a shift toward more resilient and responsible growth across the global tech ecosystem.

Our competitive advantages encompass the following:

• Commitment to superior quality and process execution

• Strong brand and long standing client relationships

• Ability to scale

• Innovation and leadership

The increased confidence exhibited by business leaders in their companies performance and the enhanced optimism of consumers have propelled technology spending. Investment in technology remains a focal point for companies worldwide. Our interactions with global business leaders underscore the pivotal role of technology in making the most significant impact on their enterprises.

A growing acknowledgment that digital technologies will reshape business models, processes, introduce new products and services, facilitate access to untapped markets, broaden customer bases, and unearth entirely new opportunities is a prevalent theme cutting across diverse industries and markets.

Adoption of Generative AI in Enterprises

As of 2026, Gartners earlier prediction has been borne out: over 80% of enterprises are now utilizing generative AI APIs, models, or deployed applications in production—up from less than 5% in 2023. This extraordinary adoption curve reflects the rapid maturation of GenAI tooling and enterprise readiness.The focus has now shifted from experimentation to operationalization, with organizations embedding GenAI into core workflows across customer service, software development, content creation, and decision-support functions.

Furthermore, Gartner anticipates that by 2028, 80% of GenAI business applications will be developed on existing data management platforms, streamlining development and reducing complexity. With AI agents now embedded across 40% of enterprise apps and growing, the demand for clean, governed, and AI-ready data infrastructure has never been greater.

Solix is extending its enterprise AI portfolio into regulated verticals with Solix AI Healthcare and Solix EAI Pharma.

Solix AI Healthcare platform is an ABDM-native, HIPAA-compliant AI-native Hospital Information

Management System (HIMS) and EHR that integrates GenAI clinical intelligence across outpatient, inpatient, emergency, and ward workflows.

AI-assisted anomaly detection in radiology acts as a cognitive extender for clinicians, while real-time FHIR R4/R5 and HL7 interoperability and compliance with Indias DPDP Act 2023, HIPAA, and GDPR ensure data governance at every step.

Solix EAI Pharma applies AI capabilities to pharmaceutical and biotech workflows spanning drug discovery, clinical trial optimization, and manufacturing supply-chain analytics—enabling organizations to accelerate evidence-based decisions from molecule to market. Both solutions are built on the Solix Common Data

Platform, ensuring that clinical and research data is governed, classified, andAI-ready from ingestion (Solix

Technologies, 2026; solix.com/products/ai-healthcare/).

Cloud Transition

According to IDC, global public cloud spending will surpass $1 trillion in 2026—a landmark milestone—representing more than 21% year-over-year growth. SaaS remains the largest segment, accounting for more than half of global public cloud spending, with enterprises continuing to migrate mission-critical applications for

ERP, CRM, and finance to cloud platforms. PaaS is the fastest-growing segment, forecast to expand by more than 37% in 2026, driven by application development, data engineering, and generative AI workloads.

The United States remains the dominant public cloud market at approximately $647 billion, followed by Western Europe at around $255 billion. Emerging regions are maintaining compound annual growth rates exceeding 20% through 2029, as enterprises in Asia-Pacific, Latin America, and the Middle East accelerate their cloud adoption.

The scale of the cloud transition reflects a broader enterprise shift to cloud-native architectures. By 2026, over half of enterprise IT spending in major application categories has shifted to public cloud solutions, with application software seeing cloud-based spending rise above 66%. Additionally, 90% of organizations are expected to adopt hybrid cloud models by 2027, supported by cross-cloud frameworks that enable distributed, multi-cloud, and hybrid deployments.

Mordor Intelligence projects the global cloud computing market to reach USD 2.26 trillion by 2030, with a compound annual growth rate (CAGR) of 21.20%. This growth is fueled by factors such as the increasing adoption of AI-driven digital transformation strategies, the migration of core applications to SaaS platforms, and the expansion of sovereign cloud requirements, particularly in Europe and the Gulf region.

The rise of edge computing, with sub-10 millisecond latency zones, is also contributing to the markets expansion, supporting use cases like extended reality (XR) and autonomous operations.

Explosive SaaS Adoption in Core Enterprise Software

Enterprises are increasingly migrating mission-critical applications like ERP, CRM, and finance systems to the cloud, moving beyond just productivity workloads. SaaS platforms offer continuous updates and embedded compliance features, making them particularly valuable in regulated industries.

Organizations that delay migration risk falling behind in agility and innovation.

Proliferation of Gen-AI Workloads Demanding Elastic Compute

Generative AI is driving a massive need for elastic compute, with model training requiring thousands of high-performance GPUs. Data centers are being re-architected for AI, with liquid cooling, specialized silicon, and high-speed networking, to meet the power and performance demands of AI experimentation and deployment. Vendors that can ensure scalable, cost-effective capacity are becoming increasingly preferred.

Industry-Specific Cloud Platforms (Compliance-Ready Blueprints)

Vertical cloud platforms are emerging as strategic enablers by combining cloud infrastructure with pre-built compliance and industry logic. Financial and public-sector versions incorporate tailored regulatory modules like fraud detection and FedRAMP. These industry-specific clouds reduce customization time, accelerate implementation, and create strong customer stickiness due to embedded best practices.

Source: https://www.mordorintelligence.com/industry-reports/cloud-computing-market

Data Governance Market

The global data governance market was valued at USD 5.38 billion in 2026. The market is projected to grow to USD 24.07 billion by 2034, exhibiting a CAGR of 20.5% during the forecast period. North America dominates the global market with a share of 43.5% in 2026 (USD 2.78 billion), followed by Asia Pacific at 21.2% (USD

1.43 billion) and Europe at 21.5% (USD 1.40 billion).

Data governance encompasses a framework of policies, procedures, standards, and metrics that guide organizations in managing and utilizing data effectively to support business objectives. It ensures data accuracy, streamlines operational costs, enhances service delivery, and helps organizations adhere to legal, regulatory, and industry-specific requirements. When integrated with data cataloging tools, data governance enables enterprises to discover, manage, analyze, and share data efficiently, playing a vital role in advancing artificial intelligence (AI) initiatives. As a result, organizations globally are turning to data governance to improve operational efficiency, drive informed decision into consumer behavior trends.

With the rapid pace of digital transformation, businesses are accumulating a vast array of data sources and assets. This surge in data complexity has led to increased adoption of data governance to ensure proper data management and accessibility across departments.

At the same time, evolving regulatory landscapes are pushing organizations to establish robust governance practices to reduce compliance risks and stay ahead of emerging regulations. Within the banking, financial services, and insurance (BFSI) industry, data governance enhances operational efficiency, resolves internal data-related issues, and mitigates the risk of security breaches.

The rising demand for online banking and digital financial services has further propelled the need for strong data governance in BFSI. Similarly, in the healthcare sector, data governance supports the management of critical medical information, from treatments and payments to research and outcomes. It also plays a key role in reducing healthcare costs and boosting patient care quality. As hospitals and healthcare providers prioritize data accuracy and regulatory compliance, the global demand for comprehensive data governance solutions continues to grow.

Digital Financial Transformations

The pace of digital innovation in the financial sector continues to accelerate in 2026, with fintechs playing a pivotal role in redefining industry standards. Startups and tech-driven disruptors are pushing the boundaries of financial services, prompting established institutions to rethink traditional models. Digital transformation is now a boardroom priority as financial organizations seek to remain agile and competitive in an increasingly tech-first world.

Some institutions are inherently more equipped for this shift, while others must actively track emerging trends, upskill their teams, and modernize outdated systems. Staying ahead requires a proactive approach—adapting to evolving customer expectations, regulatory changes, and market dynamics with speed and precision.

The 2026 financial landscape is being reshaped by a new generation of technologies.Alongside embedded finance, open banking, and decentralized finance (DeFi), financial institutions are now embracing real-time payment infrastructure, AI-powered fraud detection, blockchain-based settlements, and tokenized assets.

Generative AI is powering intelligent advisory services and automating complex financial modeling.

Meanwhile, ESG-aligned finance platforms and digital identity verification solutions are gaining traction as institutions prioritize transparency, sustainability, and secure user experiences. These advancements are not just enhancing operational efficiency, theyre fundamentally transforming how finance is accessed, delivered, and trusted.

Threats

Financial Threats:

1. Financial Currency rate fluctuation:Our exchange rate threat primarily arises from our foreign currency revenues and receivables. The Company derives its revenue from foreign countries around the world. While a large portion of our expenses are in Indian Rupees, at the same time, the operating profit is subject to rate fluctuations. The exchange rate between the Indian Rupee and the US Dollar has been changing substantially and the Company faces the risks associated with rate fluctuations translation effect.

2. Credit Risks: The business of the Company involves extending credit to international customers. This has the inherent risk of delayed payments and defaults. The Companys credit policy addresses this risk.

3. Liquidity: The major cost components of any export oriented software industry are personnel, travelling and marketing costs. Apart from this, capital expenditure to upgrade technology is another regular feature of the cash flow.

Human Resource Management

The human resource philosophy and strategy of your Company has been designed to attract and retain the best talent, creating workplace environment that keeps employees engaged, motivated and encourages innovation. This talent has, through strong alignment with your Companys vision, successfully built and sustained your Companys standing as one of Indias most admired and valuable corporations despite unrelenting competitive pressures. Your Company has fostered a culture that rewards continuous learning, collaboration and development, making it future ready with respect to the challenges posed by ever-changing market realities as also technologies. Employees are your Companys most valuable assets and your Companys processes are designed to empower employees and support creative approaches in order to create enduring value. Your Companys unflagging commitment to investing in talent development ensures performance and achievement of the highest order.

Internal Control Systems & Adequacy

Internal controls and checks are indispensable to achieve higher productivity and hence increase profitability. Major focus is imparted to achieve operational efficiency in the Company through adherence to defined procedures and policies, to achieve targets.

The internal controls cover operations, financial reporting, compliance with applicable laws and regulations, safeguarding assets from unauthorized use and ensure compliance of corporate policies.

The Company has appointed internal auditors to check on the validity and correctness of internal reporting, which would in turn validate financial reporting. TechNVision has always been on a look out for implementing best practices of Corporate Governance. The Internal Control systems at TechNVision consist of a set of Rules, procedures & organizational structures which aim to:

• ensure implementation of corporate strategy,

• ensure reliability and integrity of accounting and management data, • ensure process compliance, • achieve effective and efficient corporate processes,

• safeguard value of corporate assets,

Statutory Compliance

The Company has a Compliance Officer to advise the Company on compliance issues with respect to the laws of various jurisdictions in which the Company has its business activities and to ensure that the Company is not in violation of the laws of any jurisdiction where the Company has operations. The Compliance Officer, who is also the Company Secretary, reports from time to time on the compliance or otherwise of the laws of various jurisdictions to the Board of Directors.

Generally, the Company takes appropriate business decisions after ascertaining from the Compliance Officer and, if necessary, from independent legal counsels, that the business operation of the Company is not in contravention of any law in the jurisdiction in which it is undertaken. Legal compliance issues are an important factor in assessing all new business proposals.

Risks and Concerns

The risk management process is continuously improved and adapted to the changing global risk scenario. The agility of the risk management process is monitored and reviewed for Appropriateness with the changing risk landscape. The process of continuous evaluation of risks includes taking stock of the risk landscape on an event driven as well as periodical basis.

The risk categories covered under the risk management program includes strategic, operational and financial as well as compliance-related risks across various levels of the organization.

This includes risk assessment and mitigation at the Company level, business / functional unit level, relationship level and project level. Some of the key strategic risks the Company faces, their impact and corresponding risk mitigation actions undertaken by the Company are discussed in the table:

We are subject to Government and regulatory activity

That affects how we design and market our products. Regulatory actions may at times hinder our ability to provide the benefits of our software to consumers and businesses, thereby reducing the attractiveness of our products and the revenues that come from them. The outcome of such actions, or steps taken to avoid them, could adversely affect us in a variety of ways, including:

• We may have to choose between withdrawing products from certain geographies to avoid fines or designing and developing alternative versions of those products to comply with government rulings, which may entail a delay in a product release and removing functionality that customers want or on which developers rely.

• The rulings described above may be cited as a precedent in other competition law proceedings.

We face intense competition

The entry of large players will result in fierce competition and raising the bar for eligibility. This will impact the business of the Company.

In response to competition, we rely on the following to compete effectively:

• a successful service delivery model;

• a well-developed recruiting, training and retention model; • a broad referral base;

• continuing investments in process improvement and knowledge capture;

Our business depends on our ability to attract and retain talented employees.

Our business is based on successfully attracting and retaining talented employees. The market for highly skilled workers and leaders in our industry is extremely competitive. Post-recession, the attrition rate in the IT industry has risen again and is one of the major challenges being faced by the industry. As the industry is on the path of recovery from the economic downturn, lateral hiring has reached its peak which in turn has resulted in widespread attrition.

If we are less successful in our recruiting efforts, or if we are unable to retain key employees, our ability to develop and deliver successful products and services may be adversely affected. Effective succession planning is also important to our long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution.

The Company is constantly exposed to the risk of exchange rate fluctuations.

With operations spanning world-wide and revenues earned in major currencies of the world, a majority of Companys expenses are incurred in Indian Rupees. This exposes the Company to a constant risk of foreign exchange fluctuation, adverse fluctuations of exchange rate poses a threat to the profitability of the business.

Fluctuations in foreign currency exchange rates can have a number of adverse effects on us. Changes in the value of the Indian Rupee against other major currencies will affect our revenues and thereby our profit margins as well.

Service Model Redundancy

Newer models which change the manner of consumption of IT services could result in demand compression / pricing pressure on the existing model.

The Company is continually scanning the market environment and communicating with clients to identify emerging market trends at a nascent stage and come out with innovative service delivery model.

Reputational Threat

Reputation is built continuously in a timely and quality delivery with integrity. Any damage to this reputation and image of TechNVision could lead to decrease in market share.

The Company is focusing on quality and processes, and has developed efficient service models to mitigate this risk. Strict adherence to Companys Quality Management System, Code of Conduct and Corporate Governance framework have helped Company evolve as one of the best Company in the market.

Regulatory non-compliance

Many laws apply to TechNVision and its Group of Companies. Any failure to comply with any of the relevant regulations could result in financial penalties and reputational damage.

The company is assuming consultation of local managers as well as Auditors, Company Secretary, consultants, lawyers, specialists and experts for effective and efficient regulatory compliance. TechNVision is also implementing a security policy that complies with information security and data privacy laws, backed by rigorous processes and a robust infrastructure, which assures physical and virtual security.