Viaan Industries Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELEPMENTS

During the financial year 2024-25 the Company has not undertaken any commercial activity. The revenue of the Company stands at nil.

OPPURTUNUTY AND THREAT

India remains a bright spot in the revival of the global economy. The Indian economy continued to exhibit robust economic performance with broad-based growth across sectors. RBI also, in its recent MPC meeting, noted the strong growth momentum in the economy and projected real GDP growth for 2024-25 at 7 percent, driven by a pickup in rural demand and sustained momentum in the manufacturing sector. In its April 2024

WEO, IMF revised upwards its estimate of Indias GDP growth for FY 2023-24 to 7.8 percent and of estimated a growth rate 6.8 percent in 2024-25 based on its assessment of strength in domestic demand and demographic advantage. In March 2024, India witnessed a surge across multiple economic indicators, reflecting robust and resilient business activity. The month marked significant milestones, from record-breaking performances in the stock market to remarkable advancements in tax revenue collection. The buoyancy extended to the manufacturing and services sectors, as evidenced by the soaring HSBC India Manufacturing PMI and Services PMI. The gross GST collections for the month of April 2024 hit a record high of 2.10 lakh crore which is a growth of 12.4 per cent year-on-year. High inflation though, was a key challenge for the Government and this has resulted in RBI holding on to high policy rates and rise in lending rates. Overall, India continues to be the fastest-growing major economy with positive assessments of the growth outlook for the current financial year, for India by international organisations and RBI.

The gaming industry in India is experiencing a period of rapid expansion and transformation. Fuelled by factors such as increasing smartphone penetration, affordable data plans, and a burgeoning youth population, the gaming sector has emerged as a significant contributor to the countrys digital economy. From casual mobile games to immersive virtual reality experiences, the gaming landscape offers diverse opportunities for content creators, developers, and investors alike. Moreover, the growing acceptance of gaming as a mainstream form of entertainment presents untapped potential for market expansion and monetization.

ONLINE GAMING:

Within the broader gaming ecosystem, online gaming stands out as a particularly dynamic and fast-growing segment. The widespread availability of high-speed internet connectivity and the proliferation of smartphones have democratized access to online gaming content, driving increased user engagement and monetization opportunities. From multiplayer battle royale games to social casino platforms, online gaming encompasses a wide range of genres and formats that cater to diverse preferences and demographics. However, the sector faces regulatory scrutiny and operational challenges related to content moderation, data privacy, and cybersecurity, which necessitate proactive risk management and compliance measures.

ENTERTAINMENT INDUSTRY:

The entertainment industry in India continues to evolve in response to shifting consumer preferences and technological advancements. Traditional forms of entertainment such as film, television, and music are being complemented and disrupted by digital media platforms and streaming services. This transformation presents both opportunities and challenges for content creators, distributors, and rights holders. To thrive in this dynamic landscape, companies must adapt their content strategies, embrace digital distribution channels, and navigate regulatory complexities and intellectual property rights.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Our company maintains a robust system of internal controls to safeguard assets, ensure compliance with regulations, and mitigate operational risks. These controls encompass policies, procedures, and monitoring mechanisms designed to detect and prevent errors, fraud, and misconduct. We regularly assess the effectiveness of our internal control environment through audits, reviews, and risk assessments, and we remain committed to enhancing our control framework in line with evolving business requirements and regulatory standards.

OPPORTUNITIES & THREATS: Opportunities:

Continued growth in the gaming and entertainment sectors driven by technological innovation, demographic trends, and evolving consumer behavior. Expansion into new markets and demographic segments through strategic partnerships, localized content, and targeted marketing initiatives.

Regulatory uncertainties and compliance challenges affecting market entry, content distribution, and revenue generation. Intensifying competition from domestic and international players, leading to pricing pressures, customer churn, and margin erosion. Technological disruptions and cybersecurity risks impacting the integrity, availability, and confidentiality of gaming and entertainment platforms and services.

OUTLOOK:

Despite the prevailing uncertainties and challenges, we maintain a positive outlook on the long-term growth prospects of the company. By leveraging our strengths in content creation, technology innovation, and audience engagement, we aim to capitalize on emerging opportunities and deliver sustainable value to our stakeholders. Our strategic priorities include diversifying revenue streams, expanding market reach, and enhancing operational efficiency to drive profitable growth and shareholder returns.

ECONOMIC RISK:

The company is exposed to various economic risks, including fluctuations in currency exchange rates, interest rates, and commodity prices. These risks can impact the cost of goods sold, borrowing costs, and foreign exchange gains or losses, thereby affecting financial performance and cash flow. To manage these risks, we employ hedging strategies, maintain diversified funding sources, and monitor macroeconomic indicators to inform decision-making and risk mitigation efforts.

COMPETITION RISK:

Intensifying competition within the gaming and entertainment industries poses a significant risk to our market share and profitability. As new entrants and incumbents vie for consumer attention and spending, we face pressure to differentiate our offerings, enhance customer experiences, and optimize cost structures. To address these challenges, we invest in product innovation, brand building, and customer relationship management while actively exploring strategic partnerships and acquisitions to strengthen our competitive position and capture market opportunities.

REGULATORY RISK:

Regulatory changes and compliance requirements in the gaming and entertainment sectors can impact our business operations and growth prospects. Government regulations governing content licensing, advertising standards, data protection, and consumer rights can vary by jurisdiction and evolve over time, creating uncertainty and complexity for companies operating in these industries. To navigate regulatory risks effectively, we engage with regulatory authorities, industry associations, and legal advisors to stay abreast of developments, assess compliance obligations, and implement robust governance and risk management frameworks.

LIABILITY RISK:

The company faces potential liability risks arising from legal disputes, intellectual property infringement, product defects, and consumer protection issues. Litigation and regulatory enforcement actions can result in financial penalties, reputational damage, and operational disruptions, posing risks to shareholder value and stakeholder confidence. To mitigate liability risks, we maintain comprehensive insurance coverage, implement quality assurance programs, and adhere to industry standards and best practices in product development, marketing, and customer service. Additionally, we prioritize proactive risk identification and mitigation through internal controls, compliance training, and incident response protocols to minimize exposure to legal and financial liabilities.

EXECUTION RISK:

The successful execution of our strategic initiatives and business plans is essential for achieving our growth objectives and creating sustainable value for stakeholders. Execution risks associated with project management, resource allocation, and operational performance can impact the timeliness, quality, and cost-effectiveness of our initiatives, thereby influencing financial results and competitive positioning. To mitigate execution risks, we adopt a disciplined approach to planning and implementation, leveraging project management methodologies, performance metrics, and governance structures to monitor progress, address issues, and adapt to changing circumstances. By fostering a culture of accountability, collaboration, and continuous improvement, we aim to enhance organizational agility and resilience in navigating execution challenges and capitalizing on growth opportunities.

CAUTIONARY STATEMENT:

This Management Discussion and Analysis report contains forward-looking statements that are subject to inherent risks and uncertainties, including but not limited to those discussed above. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, economic conditions, market dynamics, regulatory developments, competitive pressures, technological disruptions, and operational challenges. The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.