Based on the above inputs, answer the following questions: Elucidate the types of exposures risks to be encountered by the Company.

The types of exposures risks to be encountered by Newgen Technologies Limited are discussed as below: Transaction Exposure - It measures the effect of an exchange rate change on outstanding obligations that existed before exchange rates changed but were settled after the exchange rate changes. Thus, it deals with cash flows that result from existing contractual obligations. For example, in the case of NTL if services are exported to USA for $10,00,000 due in one month and if the dollar depreciates relative to the rupee, a cash loss occurs. Conversely, if the dollar appreciates relative to the rupee, a cash gain occurs. Further, domestic ratings agency ICRA has highlighted that the appreciation in the rupee is aggravating the troubles of the Indian IT sector, which is already hit by a change in the market landscape and compressing revenue growth. Economic Exposure - It refers to the extent to which the economic value of a company can decline due to changes in exchange rate. ICRA has said that despite an 8.1 per cent growth in USO revenue, IT players have registered a growth of only three per cent in the second quarter of the current fiscal, due to the rupee appreciation of four per cent during the quarter It also pointed out that IT Services players profitability also remains sensitive to rupee depreciation vis-a-vis major currencies such as USO, GBP and Euro and the same too will have an impact.