Page 33 - Non_Financial_Annual_Report_2021 (10th June).indd

Reimagine | Reinvent | Grow

LOCKED WORKING CAPITAL AND LOSS OF CONFIDENTIAL CONCENTRATION RISK
CASHFLOW INFORMATION / DATA VIOLATION /
BREACH

• Many of our contracts have • Processes are being followed to • The loss of or a significant reduction
milestone-based payment terms, properly identify confidential in business from the key client(s)
due to which we may incur high information of the company & other will harm the revenues.
costs before we can raise bill and stakeholders and prevent leakage.
receive payment. However, there remains a risk of • Despite good relationships and
loss of confidential information. performance by TCE, such client(s)
Cash flows from projects can
•
may sometimes be forced to delay
KEY RISK AREAS fluctuate significantly over the increased in a Work from Home or cancel their contracts due to
The chances of data breach have
execution period depending on the
changing business scenarios.
scenario.
delays, contingencies, etc.
•
Due to the current Pandemic, our
clients could be severely stressed
in terms of funding ability and
liquidity which may negatively
impact our cash flows.

• Follow-up to get the collection in • Training and sensitisation of • Conscious efforts at dependence or
line with the contract terms employees about the importance concentration on any single client
of maintaining confidential or sector.
• Enhanced focus on contract & • information. • Develop newer key or large
claims management through
MITIGATION STRATEGIES • to ensure project delivery with • Confidentiality agreements from • Strengthen business relationships
review rigour at various levels
Obtaining specific NDAs /
accounts.
employees/partners.
profitability
with clients at all levels.
Due diligence and factoring in
Tightening of IT security measures.
locked capital or cash flow impact
into our bid pricing.
•
Where possible, negotiating for
favourable payment terms and
granular milestones

AREAS IMPACTED • • Impact on working capital. • Unexpected and huge costs. • • Inability to achieve acquisition and
revenue targets.
•
Loss of business.
Higher cost of financing.
Impact on profits.
•
Negative impact on reputation and
brand value.

33