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.anted. # 106/107. SOF-IV. Seepz, Andherl (Es, Mumbai 400 0%. indta. :1 22 6695 2222 / 2824 7999 Fax .91 22 6695 1331 www.mastek.com Mastek
FORM A
Format of covering letter of the Annual Audit Report to be filed with Stock Exchange
1 Name of the Company Mastek Limited
2 Annual Financial Statement for the year Ended March 31, 2015
3 Type of Audit Observation Un-qualified 4 Frequency of observation Not Applicable 5 To be signed by
• Managing Director & Group CEO
• CFO
• Auditor of the Company 4111.04140--'
• Audit Committee Chairman
Off.: 804 / 805, President House, Opp. C. N. Viciyalaya, Near Ambawadi Circle.sAmbawadt, Ahmedabad • 380 006. India
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MASTEK GROUP BANKERS ,&,&,%DQN/LPLWHG 6WDQGDUG&KDUWHUHG%DQN COMPANY SECRETARY %KDJZDQW%KDUJDZH AUDITORS 3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 REGISTERED OFFICE 3UHVLGHQW+RXVH2SS&19LG\DOD\D 1HDU$PEDZDGL&LUFOH$PEDZDGL$KPHGDEDG*XMDUDW,QGLD REGISTRAR AND SHARE TRANSFER AGENT 6KDUHSUR6HUYLFHV ,QGLD 3ULYDWH/LPLWHG 6DPKLWD:DUHKRXVLQJ&RPSOH[$%*DOD1R 1HDU6DNLQDND7HOHSKRQH([FKDQJH 2II$QGKHUL.XUOD5RDG $QGKHUL (DVW 0XPEDL,QGLD 3KRQH1R PERFORMANCE ANALYSIS OF MASTEK GROUP GROUP TOTAL REVENUE & NET PROFIT (` Cr) 1200 18 1000 52 800 1 34 600 400 614 745 693 934 1030 200 0 -56 2010-11 2011-12 2012-13 2013-14 2014-15 BOOK VALUE PER SHARE (`) 265.60 252.80 203.30 182.07 198.71 2010-11 2011-12 2012-13 2013-14 2014-15 (9 months) GEOGRAPHICAL SPREAD OF REVENUE (` Cr) 80 71 57 50 405 44 419 324 308 258 528 291 352 325 432 2010-11 2011-12 2012-13 2013-14 2014-15 (9 months) Europe North America Rest of the World ANNUAL REPORT 2014-2015 3(5)250$1&($1$/<6,62)0$67(.*5283 &RQWG GROUP EMPLOYEES STRENGTH (NUMBERS) 3,352 3,083 3,214 3,123 2,905 2010-11 2011-12 2012-13 2013-14 2014-15 (9 months) CURRENT INVESTMENT AND CASH & BANK BALANCE (` Cr) 214 159 159 171 138 2010-11 2011-12 2012-13 2013-14 2014-15 (9 months) RETURN ON NETWORTH (%) 9 6 3 -11 0 2010-11 2011-12 2012-13 2013-14 2014-15 (9 months) TABLE OF CONTENTS 3DJH1R )5207+(0$1$*,1*',5(&725$1'*5283&(2¶VDESK ...... 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SUSTAINABILITY REPORT ...... 352;<)250$77(1'$1&(6/,3 ANNUAL REPORT 2014-2015 MASTEK GROUP INDEPENDENT AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS OF MASTEK LIMITED Independent Auditors’ Report accounting policies used and the reasonableness of the accounting HVWLPDWHVPDGHE\WKH&RPSDQ\¶V'LUHFWRUVDVZHOODVHYDOXDWLQJ To the Board of Directors of Mastek Limited WKHRYHUDOOSUHVHQWDWLRQRIWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV :HKDYHDXGLWHGWKHDFFRPSDQ\LQJFRQVROLGDWHG¿QDQFLDOVWDWHPHQ WV :H EHOLHYH WKDW WKH DXGLW HYLGHQFH ZH KDYH REWDLQHG LV VXI¿FLHQW (the “Consolidated Financial Statements”) of Mastek Limited (“the and appropriate to provide a basis for our audit opinion on the Company”) and its subsidiaries and its jointly controlled entity; FRQVROLGDWHG¿QDQFLDOVWDWHPHQWV hereinafter referred to as the “Group” (refer Note 1 to the attached FRQVROLGDWHG¿QDQFLDOVWDWHPHQWV ZKLFKFRPSULVHWKHFRQVROLGDWHG Opinion %DODQFH6KHHWDVDW0DUFKWKHFRQVROLGDWHG6WDWHPHQWRI 3UR¿WDQG/RVVWKHFRQVROLGDWHG&DVK)ORZ6WDWHPHQWIRUWKH\HDU :H UHSRUW WKDW WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV KDYH EHHQ WKHQHQGHGDQGDVXPPDU\RIVLJQL¿FDQWDFFRXQWLQJSROLFLHVDQG SUHSDUHG E\ WKH &RPSDQ\¶V 0DQDJHPHQW LQ DFFRUGDQFH ZLWK WKH other explanatory information. UHTXLUHPHQWV RI $FFRXQWLQJ 6WDQGDUG $6 ± &RQVROLGDWHG )LQDQFLDO6WDWHPHQWVDQG$FFRXQWLQJ6WDQGDUG $6 ±)LQDQFLDO Management’s Responsibility for the Consolidated Financial 5HSRUWLQJRI,QWHUHVWVLQ-RLQW9HQWXUHVVSHFL¿HGXQGHU6HFWLRQ Statements RI WKH $FW UHDG ZLWK 5XOH RI WKH &RPSDQLHV $FFRXQWV 5XOHV 2. The Company’s Board of Directors is responsible for the matters VWDWHGLQ6HFWLRQ RIWKH&RPSDQLHV$FW WKH³$FW´ ZLWK 8. Based on our audit and on consideration of reports of other auditors on UHVSHFWWRWKHSUHSDUDWLRQRIWKHVHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV VHSDUDWH¿QDQFLDOVWDWHPHQWVDQGRQWKHRWKHU¿QDQFLDOLQIRUPDWLRQ WR JLYH D WUXH DQG IDLU YLHZ RI WKH FRQVROLGDWHG ¿QDQFLDO SRVLWLRQ RI WKH FRPSRQHQWV RI WKH *URXS DV UHIHUUHG WR LQ SDUDJUDSK FRQVROLGDWHG ¿QDQFLDO SHUIRUPDQFH DQG FRQVROLGDWHG FDVK ÀRZV EHORZ DQG WR WKH EHVW RI RXU LQIRUPDWLRQ DQG DFFRUGLQJ WR WKH RI WKH *URXS LQ DFFRUGDQFH ZLWK DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ H[SODQDWLRQVJLYHQWRXVLQRXURSLQLRQWKHDIRUHVDLGFRQVROLGDWHG DFFHSWHGLQ,QGLDLQFOXGLQJWKH$FFRXQWLQJ6WDQGDUGVVSHFL¿HGXQGHU ¿QDQFLDO VWDWHPHQWV JLYH D WUXH DQG IDLU YLHZ LQ FRQIRUPLW\ ZLWK 6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV the accounting principles generally accepted in India of the state of 5XOHV7KLVUHVSRQVLELOLW\LQFOXGHVWKHGHVLJQLPSOHPHQWDWLRQ DIIDLUVRIWKH*URXSDVDW0DUFKDQGLWVFRQVROLGDWHGSUR¿W and maintenance of internal control relevant to the preparation and DQGLWVFRQVROLGDWHGFDVKÀRZVIRUWKH\HDUHQGHGRQWKDWGDWH SUHVHQWDWLRQRIWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXH DQGIDLUYLHZDQGDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXH Other Matter to fraud or error. :HGLGQRWDXGLWWKH¿QDQFLDOVWDWHPHQWVRI¿YHVXEVLGLDULHVDQ G Auditors’ Responsibility RQHMRLQWO\FRQWUROOHGHQWLW\LQFOXGHGLQWKHFRQVROLGDWHG¿QDQFLDO VWDWHPHQWVZKLFKFRQVWLWXWHWRWDODVVHWVRI`/DNKVDQG 3. Our responsibility is to express an opinion on these consolidated net assets of ` /DNKVDVDW0DUFKWRWDOUHYHQXH ¿QDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW of ` /DNKVQHWSUR¿WRI` /DNKVDQGQHWFDVKÀRZV amounting to ` IRU WKH \HDU WKHQ HQGHG 7KHVH ¿QDQFLDO :HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKH6WDQGDUGVRQ$XGL WLQJ VWDWHPHQWVDQGRWKHU¿QDQFLDOLQIRUPDWLRQKDYHEHHQDXGLWHGE\ and other applicable authoritative pronouncements issued by the RWKHUDXGLWRUVZKRVHUHSRUWVKDYHEHHQIXUQLVKHGWRXVDQGRXU ,QVWLWXWH RI &KDUWHUHG $FFRXQWDQWV RI ,QGLD 7KRVH 6WDQGDUGV DQG RSLQLRQ RQ WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV WR WKH H[WHQW SURQRXQFHPHQWVUHTXLUHWKDWZHFRPSO\ZLWKHWKLFDOUHTXLUHPHQWV WKH\KDYHEHHQGHULYHGIURPVXFK¿QDQFLDOVWDWHPHQWVLVEDVHG and plan and perform the audit to obtain reasonable assurance about solely on the report of such other auditors. Our opinion is not ZKHWKHUWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDO TXDOL¿HGLQUHVSHFWRIWKLVPDWWHU misstatement. $Q DXGLW LQYROYHV SHUIRUPLQJ SURFHGXUHV WR REWDLQ DXGLW HYLGHQFH DERXW WKH DPRXQWV DQG GLVFORVXUHV LQ WKH FRQVROLGDWHG ¿QDQFLDO statements. The procedures selected depend on the auditors’ MXGJHPHQW LQFOXGLQJ WKH DVVHVVPHQW RI WKH ULVNV RI PDWHULDO )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 PLVVWDWHPHQW RI WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV ZKHWKHU )LUP5HJLVWUDWLRQ1XPEHU 11 GXHWRIUDXGRUHUURU,QPDNLQJWKRVHULVNDVVHVVPHQWVWKHDXGLWRU )RUPHUO\3ULFH:DWHUKRXVH considers internal control relevant to the Company’s preparation )LUP5HJLVWUDWLRQ1XPEHU 1 DQG SUHVHQWDWLRQ RI WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV WKDW JLYHDWUXHDQGIDLUYLHZLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDW DUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRI Pradip Kanakia expressing an opinion on the effectiveness of the entity’s internal Mumbai Partner FRQWURO $Q DXGLW DOVR LQFOXGHV HYDOXDWLQJ WKH DSSURSULDWHQHVV RI $SULO 0HPEHUVKLS1XPEHU 21 ANNUAL REPORT 2014-2015 CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) As at $VDW Note March 31, 2015 0DUFK EQUITY AND LIABILITIES Shareholders’ funds Share capital 3 1,127.33 5HVHUYHVDQGVXUSOXV 4 58,458.19 59,585.52 Non-current liabilities /RQJWHUPERUURZLQJV 1,960.66 Other long-term liabilities 6 693.75 ± Long-term provisions 2,021.35 Current liabilities 6KRUWWHUPERUURZLQJV 8 918.75 ± Trade payables 9 1,255.48 Other current liabilities 15,050.76 Short-term provisions 11 1,682.52 Total 83,168.79 ASSETS Non-current assets Fixed assets Tangible assets 12 (i) 6,582.71 Intangible assets 12 (ii) 21,304.31 &DSLWDOZRUNLQSURJUHVV 131.11 33.66 Non-current investments 13 240.84 Deferred tax assets 14 2,376.09 Long-term loans and advances 5,003.79 Other non-current assets 16 309.58 26.46 Current assets Current investments 5,121.20 Trade receivables 18 13,349.01 Cash and bank balances 19 16,303.81 Short-term loans and advances 3,547.21 Other current assets 21 8,899.13 Total 83,168.79 6XPPDU\RIVLJQL¿FDQWDFFRXQWLQJSROLFLHV 2 &RQWLQJHQW/LDELOLWHVFDSLWDODQGRWKHUFRPPLWPHQWV 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV In terms of our report of even date )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 )RUDQGRQEHKDOIRIWKH%RDUG )LUP5HJLVWUDWLRQ1XPEHU 11 )RUPHUO\3ULFH:DWHUKRXVH)LUP5HJLVWUDWLRQ1XPEHU 1 Pradip Kanakia Sudhakar Ram Partner Managing Director and Group CEO 0HPEHUVKLS1XPEHU S. Sandilya Non-Executive Chairman and Independent Director 0XPEDL$SULO Farid Kazani Group CFO and Finance Director Bhagwant Bhargawe Company Secretary 0XPEDL$SULO 22 CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) Year ended Year ended Note March 31, 2015 0DUFK 5HYHQXHIURPRSHUDWLRQV 24 101,258.39 Other income 1,711.34 Total revenue 102,969.73 Expenses (PSOR\HHEHQH¿WVH[SHQVHV 26 62,055.43 Finance costs 147.10 Depreciation and amortization expenses 28 3,733.43 Other expenses 29 33,640.53 Total expenses 99,576.49 3UR¿WEHIRUHH[FHSWLRQDOLWHPDQGWD[ 3,393.24 Exceptional items 1,166.12 ± 3UR¿WEHIRUHWD[ 2,227.12 3UR¿WIURPFRQWLQXLQJRSHUDWLRQVEHIRUHWD[ 3,605.94 Tax expense from continuing operations: Current tax 1,758.43 /HVV 0LQLPXPDOWHUQDWHWD[FUHGLWHQWLWOHPHQW – Net Current tax (Share of joint venture ` Nil) 1,758.43 'HIHUUHGWD[ FUHGLW FKDUJH 6KDUHRIMRLQWYHQWXUH` Nil) (81.46) 216.21 ,QFRPHWD[UHIXQGZULWHEDFNIRUHDUOLHU\HDUV (1,718.69) 3UR¿WIURPFRQWLQXLQJRSHUDWLRQVDIWHUWD[ 3,647.66 /RVV 3UR¿WIURPGLVFRQWLQXLQJRSHUDWLRQVEHIRUHWD[ 49 (1,378.82) Tax expense from discontinuing operations 495.79 /RVV 3UR¿WIURPGLVFRQWLQXLQJRSHUDWLRQVDIWHUWD[ (1,874.61) 3UR¿WIRUWKH\HDU 1,773.05 Earning per equity share 31 Basic (Face value of `HDFK ` 7.94 ` Diluted (Face value of `HDFK ` 7.57 ` 6XPPDU\RIVLJQL¿FDQWDFFRXQWLQJSROLFLHV 2 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHVHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV In terms of our report of even date )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 )RUDQGRQEHKDOIRIWKH%RDUG )LUP5HJLVWUDWLRQ1XPEHU 11 )RUPHUO\3ULFH:DWHUKRXVH)LUP5HJLVWUDWLRQ1XPEHU 1 Pradip Kanakia Sudhakar Ram Partner Managing Director and Group CEO 0HPEHUVKLS1XPEHU S. Sandilya Non-Executive Chairman and Independent Director 0XPEDL$SULO Farid Kazani Group CFO and Finance Director Bhagwant Bhargawe Company Secretary 0XPEDL$SULO 23 ANNUAL REPORT 2014-2015 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) Year ended Year ended March 31, 2015 0DUFK &DVKÀRZVIURPRSHUDWLQJDFWLYLWLHV 3UR¿WEHIRUHH[FHSWLRQDOLWHPDQGWD[LQFOXGLQJGLVFRQWLQXLQJRSHUDWLRQV 3,393.24 $GMXVWPHQWVIRU Interest income (567.88) 5HYHUVDORIDFFUXHGUHYHQXH 864.02 ± Employee stock compensation expenses 131.75 ± Finance costs 132.54 Depreciation and amortisation 3,733.43 3URYLVLRQ 5HYHUVDORISURYLVLRQ IRUFRVWRYHUUXQRQFRQWUDFWVQHW 192.36 (124.63) Provision for doubtful debts 554.32 %DGGHEWVZULWWHQRII 60.01 9.39 3UR¿WRQVDOHRI¿[HGDVVHWQHW (26.00) 3UR¿WRQVDOHRIFXUUHQWLQYHVWPHQWV (789.18) 5HYHUVDO 3URYLVLRQIRU&XVWRPHU&ODLP (109.89) 2SHUDWLQJSUR¿WEHIRUHZRUNLQJFDSLWDOFKDQJHV 7,568.72 ,QFUHDVH 'HFUHDVHLQWUDGHUHFHLYDEOHV (2,738.63) Increase in loans and advances and other assets (313.12) ,QFUHDVH 'HFUHDVH LQWUDGHSD\DEOHVRWKHUOLDELOLWLHVDQGSURYLVLRQV 2,221.04 Cash generated from operations 6,738.01 ,QFRPHWD[HVUHIXQGVUHFHLYHG SDLG QHW 105.68 Net cash generated from operating activities before exceptional items 6,843.69 $PRXQWSDLGIRUUHVWUXFWXULQJH[SHQVHV (945.40) ± Net cash generated from operating activities 5,898.29 &DVKÀRZVIURPLQYHVWLQJDFWLYLWLHV Proceeds from sale of tangible assets 75.70 2.63 3XUFKDVHRIWDQJLEOHDQGLQWDQJLEOHDVVHWVQHWRIFDSLWDOZRUNLQSURJUHVVFDSLWDOLVHG (4,924.90) Interest received 628.41 Sale proceeds of current investments 53,204.80 ,QYHVWPHQWLQ¿[HGGHSRVLWVKDYLQJPDWXULW\RYHUWKUHHPRQWKV (2,019.02) Purchase of current investments (49,396.82) Net cash used in investing activities (2,431.83) &DVKÀRZVIURP¿QDQFLQJDFWLYLWLHV Proceeds from issue of shares under the employee stock option schemes 558.80 Payment made to shareholders on buyback of shares ± 3URFHHGVIURPZRUNLQJFDSLWDOORDQQHW 918.75 ± Proceeds from long term loan 1,875.00 ± 5HSD\PHQWRI¿QDQFHOHDVHREOLJDWLRQ (45.74) Dividends paid including dividend distribution tax paid (973.90) ,QWHUHVWSDLGRQORDQVDQGRQ¿QDQFHOHDVH (132.54) 1HWFDVKJHQHUDWHGIURP XVHG LQ¿QDQFLQJDFWLYLWLHV 2,200.37 Effect of changes in exchange rates for cash and cash equivalents (386.11) Net increase / (decrease) in cash and cash equivalents during the year 5,280.72 Cash and cash equivalents at the beginning of the year 7,131.72 Cash and cash equivalents at the end of the year 12,412.44 1RWHV 1 7KHDERYHFDVKÀRZVWDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHµ,QGLUHFW0HWKRG¶DVVHWRXWLQWKH$FFRXQWLQJ6WDQGDUGRQ &DVK)ORZ6WDWHPHQWLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD 2 &DVKDQGFDVKHTXLYDOHQWV5HIHU1RWH 3 Figures in brackets indicate cash outgo. 4 3UHYLRXV\HDU¶V¿JXUHVKDYHEHHQUHJURXSHGRUUHFODVVL¿HGZKHUHYHUQHFHVVDU\ In terms of our report of even date )RU3ULFH:DWHUKRXVH&KDUWHUHG$FFRXQWDQWV//3 )RUDQGRQEHKDOIRIWKH%RDUG )LUP5HJLVWUDWLRQ1XPEHU 11 )RUPHUO\3ULFH:DWHUKRXVH)LUP5HJLVWUDWLRQ1XPEHU 1 Pradip Kanakia Sudhakar Ram Partner Managing Director and Group CEO 0HPEHUVKLS1XPEHU S. Sandilya Non-Executive Chairman and Independent Director 0XPEDL$SULO Farid Kazani Group CFO and Finance Director Bhagwant Bhargawe Company Secretary 0XPEDL$SULO 24 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 1. 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Leave encashment vests to employees on an annual basis for leave balance above the upper limit as per the Group’s SROLF\$WWKHWLPHRIUHWLUHPHQWGHDWKZKLOHLQHPSOR\PHQWRURQWHUPLQDWLRQRIHPSOR\PHQWOHDYHHQFDVKPHQWYHVWVHTXLYDOHQW to salary payable for number of days of accumulated leave balance subject to an upper limit as per the Group’s policy. Liability for VXFKEHQH¿WLVSURYLGHGRQWKHEDVLVRIDFWXDULDOYDOXDWLRQVDVDWWKH%DODQFH6KHHWGDWHFDUULHGRXWE\DQLQGHSHQGHQWDFWXDU\ The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method. $FWXDULDOJDLQVDQGORVVHVDUHUHFRJQLVHGLPPHGLDWHO\LQWKH6WDWHPHQWRI3UR¿WDQG/RVVDVLQFRPHRUH[SHQVH LL 6KRUWWHUPHPSOR\HHEHQH¿WV 7KHXQGLVFRXQWHGDPRXQWRIVKRUWWHUPHPSOR\HHEHQH¿WVH[SHFWHGWREHSDLGLQH[FKDQJHIRUWKHVHUYLFHVUHQGHUHGE\HPSOR\HHVLV UHFRJQLVHGLQWKH\HDUGXULQJZKLFKWKHHPSOR\HHUHQGHUHGWKHVHUYLFHV7KHVHEHQH¿WVFRPSULVHFRPSHQVDWHGDEVHQFHVVXFKDVSDLG annual leave and performance incentives. LLL 7HUPLQDWLRQEHQH¿WV 7HUPLQDWLRQEHQH¿WVLQWKHQDWXUHRIYROXQWDU\UHWLUHPHQWEHQH¿WVRUWKRVHDULVLQJIURPUHVWUXFWXULQJDUHUHFRJQLVHGLQWKH6WDWHPHQWRI 3UR¿WDQG/RVVZKHQWKH*URXSKDVDSUHVHQWREOLJDWLRQDVDUHVXOWRISDVWHYHQWZKHQDUHOLDEOHHVWLPDWHFDQEHPDGHRIWKHDPRXQWRI WKHREOLJDWLRQDQGLWLVSUREDEOHWKDWDQRXWÀRZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQH¿WVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQV ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 2.11 Revenue recognition 7KH*URXSGHULYHVUHYHQXHVSULPDULO\IURPLQIRUPDWLRQWHFKQRORJ\VHUYLFHV5HYHQXHLVUHFRJQLVHGLQDFFRUGDQFHZLWKWKHWHUPVRIWKH FRQWUDFWVZLWKFXVWRPHUVDVWKHVHUYLFHLVSHUIRUPHGE\WKHSURSRUWLRQDWHFRPSOHWLRQPHWKRGDQGZKHQLWLVUHDVRQDEO\FHUWDLQWKDWWKH XOWLPDWHFROOHFWLRQZLOOEHPDGH5HYHQXHVRQWLPHDQGPDWHULDOFRQWUDFWVDUHUHFRJQLVHGZKHQVHUYLFHVDUHUHQGHUHGDQGUHODWHGFRVWVDUH LQFXUUHG5HYHQXHVRQ¿[HGSULFH¿[HGWLPHERXQGFRQWUDFWVDUHUHFRJQLVHGRYHUWKHOLIHRIWKHFRQWUDFWPHDVXUHGE\WKHSURSRUWLRQWKDW FRQWUDFWFRVWVLQFXUUHGIRUZRUNSHUIRUPHGXSWRWKHUHSRUWLQJGDWHEHDUWRWKHHVWLPDWHGWRWDOFRQWUDFWFRVWV7KHFXPXODWLYHLPSDFWRI DQ\UHYLVLRQLQHVWLPDWHVRIWKHSHUFHQWDJHRIZRUNFRPSOHWHGLVUHÀHFWHGLQWKHSHULRGLQZKLFKWKHFKDQJHEHFRPHVNQRZQ3URYLVLRQVIRU HVWLPDWHGORVVHVRQVXFKFRQWUDFWVDUHPDGHGXULQJWKHSHULRGLQZKLFKDORVVEHFRPHVSUREDEOHDQGFDQEHUHDVRQDEO\HVWLPDWHG:KHQ WKHXQFHUWDLQW\UHODWLQJWRWKHFROOHFWDELOLW\DULVHVVXEVHTXHQWWRWKHUHQGHULQJRIWKHVHUYLFHDVHSDUDWHSURYLVLRQLVPDGHWRUHÀHFWWKH uncertainty and the amount of revenue originally recorded is not adjusted. 5HYHQXHVIURPPDLQWHQDQFHFRQWUDFWVDUHUHFRJQLVHGRQDVWUDLJKWOLQHEDVLVRYHUWKHSHULRGRIWKHFRQWUDFW 5HYHQXHVIURPUHVDOHRIVRIWZDUHDQGKDUGZDUHDUHUHFRJQLVHGXSRQGHOLYHU\RISURGXFWVWRWKHFXVWRPHUZKHQWKHVLJQL¿FDQWULVNVDQG UHZDUGVRIRZQHUVKLSDUHWUDQVIHUUHGWRWKHEX\HUDQGWKHXOWLPDWHFROOHFWLRQLVUHDVRQDEO\FHUWDLQ $FFUXHGUHYHQXHLQFOXGHGLQµ2WKHUFXUUHQWDVVHWV¶UHSUHVHQWVDPRXQWVLQUHVSHFWRIVHUYLFHVSHUIRUPHGLQDFFRUGDQFHZLWKFRQWUDFWWHUPV QRW\HWELOOHGWRFXVWRPHUVDWWKH\HDUHQG8QHDUQHGUHYHQXHLQFOXGHGLQµ2WKHUFXUUHQWOLDELOLWLHV¶UHSUHVHQWVDPRXQWVUHFHLYHGELOOHGLQ H[FHVVRIWKHYDOXHRIZRUNSHUIRUPHGLQDFFRUGDQFHZLWKWKHWHUPVRIWKHFRQWUDFWVZLWKFXVWRPHUV 2.12 Other income 'LYLGHQGLQFRPHIURPLQYHVWPHQWVLVUHFRJQLVHGZKHQWKHULJKWWRUHFHLYHSD\PHQWLVHVWDEOLVKHG,QWHUHVWLQFRPHLVUHFRJQLVHGRQWLPH SURSRUWLRQEDVLVWDNLQJLQWRDFFRXQWWKHDPRXQWRXWVWDQGLQJDQGWKHDSSOLFDEOHUDWHRILQWHUHVW5HQWDOLQFRPHLVUHFRJQLVHGRQDVWUDLJKWOLQH basis over the term of the lease as per the terms of the base contract. 2.13 Leases $VVHWVWDNHQRQOHDVHVZKLFKWUDQVIHUVXEVWDQWLDOO\DOOWKHULVNVDQGUHZDUGVLQFLGHQWDOWRRZQHUVKLSRIWKHDVVHWVWRWKHOHDVHHLH¿QDQFH OHDVHV LQ WHUPV RI SURYLVLRQV RI $FFRXQWLQJ 6WDQGDUG $6 ± µ/HDVHV¶ DUH FDSLWDOLVHG 7KH DVVHWV DFTXLUHG XQGHU ¿QDQFH OHDVHV DUH FDSLWDOL]HGDWWKHORZHURIWKHIDLUYDOXHDWWKHLQFHSWLRQRIWKHOHDVHDQGWKHSUHVHQWYDOXHRIPLQLPXPOHDVHSD\PHQWVDQGDOLDELOLW\LV FUHDWHGIRUDQHTXLYDOHQWDPRXQW6XFKDVVHWVDUHGLVFORVHGDVOHDVHGDVVHWVXQGHUWDQJLEOHDVVHWVDQGDUHGHSUHFLDWHGLQDFFRUGDQFHZLWK WKH*URXS¶VGHSUHFLDWLRQSROLF\GHVFULEHGLQQRWH(DFKOHDVHUHQWDOSDLGRQWKH¿QDQFHOHDVHLVDOORFDWHGEHWZHHQWKHOLDELOLW\DQGLQWHUHVW FRVWVRDVWRREWDLQDFRQVWDQWSHULRGLFUDWHRILQWHUHVWRQWKHRXWVWDQGLQJOLDELOLW\IRUHDFKSHULRG2WKHUOHDVHVDUHFODVVL¿HGDVRSHUDWLQJ OHDVHVDQGUHQWDOSD\PHQWVLQUHVSHFWRIVXFKOHDVHVDUHFKDUJHGWRWKH6WDWHPHQWRI3UR¿WDQG/RVVRQDVWUDLJKWOLQHEDVLVRYHUWKHOHDVH WHUP$VVHWVJLYHQXQGHURSHUDWLQJOHDVHVDUHFDSLWDOLVHGLQWKH%DODQFH6KHHWXQGHUWDQJLEOHDVVHWVDQGDUHGHSUHFLDWHGDVSHUWKH*URXS¶V depreciation policy described in note 2.3. 2.14 Earnings per share %DVLFHDUQLQJVSHUVKDUH (36 DUHFDOFXODWHGE\GLYLGLQJWKHQHWORVVSUR¿WDIWHUWD[IRUWKH\HDUDWWULEXWDEOHWRHTXLW\VKDUHKROGHUVE\WKH ZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJGXULQJWKH\HDU'LOXWHGHDUQLQJVSHUVKDUHLVFRPSXWHGE\DGMXVWLQJWKHQXPEHURI VKDUHVXVHGIRUEDVLF(36ZLWKWKHZHLJKWHGDYHUDJHQXPEHURIVKDUHVWKDWFRXOGKDYHEHHQLVVXHGRQWKHFRQYHUVLRQRIDOOGLOXWLYHSRWHQWLDO HTXLW\VKDUHV'LOXWLYHSRWHQWLDOHTXLW\VKDUHVDUHGHHPHGFRQYHUWHGDVRIWKHEHJLQQLQJRIWKH\HDUXQOHVVWKH\KDYHEHHQLVVXHGDWDODWHU date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value i.e. average market value of outstanding shares. The number of shares and potentially dilutive shares are adjusted for share splits and bonus VKDUHVDVDSSURSULDWH,QFDOFXODWLQJGLOXWHGHDUQLQJVSHUVKDUHWKHHIIHFWVRIDQWLGLOXWLYHSRWHQWLDOHTXLW\VKDUHVDUHLJQRUHG3RWHQWLDO HTXLW\VKDUHVDUHDQWLGLOXWLYHZKHQWKHUHFRQYHUVLRQWRHTXLW\VKDUHVZRXOGLQFUHDVHHDUQLQJVSHUVKDUHRUGHFUHDVHORVVSHUVKDUH 2.15 Income Taxes Tax expense for the year comprises of current tax and deferred tax. Current tax is measured by the amount of tax expected to be paid to the WD[DWLRQDXWKRULWLHVRQWKHWD[DEOHSUR¿WVDIWHUFRQVLGHULQJWD[DOORZDQFHVDQGH[HPSWLRQVDQGXVLQJDSSOLFDEOHWD[UDWHVDQGODZV'HIHUUHG WD[LVUHFRJQLVHGRQWLPLQJGLIIHUHQFHVEHWZHHQWKHDFFRXQWLQJLQFRPHDQGWKHWD[DEOHLQFRPHIRUWKH\HDUDQGTXDQWL¿HGXVLQJWKHWD[UDWHV DQGWD[ODZVHQDFWHGRUVXEVWDQWLYHO\HQDFWHGDVRQWKH%DODQFH6KHHWGDWH'HIHUUHGWD[DVVHWVDUHUHFRJQLVHGDQGFDUULHGIRUZDUGWRWKH H[WHQWWKDWWKHUHLVUHDVRQDEOHFHUWDLQW\WKDWVXI¿FLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEH UHDOLVHG'HIHUUHGWD[DVVHWVLQUHVSHFWRIXQDEVRUEHGGHSUHFLDWLRQRUFDUU\IRUZDUGORVVHVDUHUHFRJQLVHGRQO\WRWKHH[WHQWWKHUHLVYLUWXDO FHUWDLQW\VXSSRUWHGE\FRQYLQFLQJHYLGHQFHWKDWVXI¿FLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQ EHUHDOLVHG7KHFDUU\LQJDPRXQWRIGHIHUUHGWD[DVVHWVLVUHYLHZHGDWHDFKEDODQFHVKHHWGDWHIRUDQ\ZULWHGRZQRUUHYHUVDODVFRQVLGHUHG appropriate. 0LQLPXP$OWHUQDWLYH7D[ 0$7 FUHGLWLVUHFRJQLVHGDVDQDVVHWRQO\ZKHQDQGWRWKHH[WHQWWKHLULVFRQYLQFLQJHYLGHQFHWKDWWKH&RPSDQ\ ZLOOSD\QRUPDOLQFRPHWD[GXULQJWKHVSHFL¿HGSHULRG6XFKDVVHWLVUHYLHZHGDWHDFKEDODQFHVKHHWGDWHDQGWKHFDUU\LQJDPRXQWRIWKH 0$7FUHGLWDVVHWLVZULWWHQGRZQWRWKHH[WHQWWKHLULVQRORQJHUFRQYLQFLQJHYLGHQFHWRWKHHIIHFWWKDWWKH&RPSDQ\ZLOOSD\QRUPDOLQFRPH WD[GXULQJWKHVSHFL¿HGSHULRG &XUUHQWWD[DVVHWVDQGOLDELOLWLHVDUHRIIVHWZKHQWKHUHLVDOHJDOO\HQIRUFHDEOHULJKWWRVHWRIIWKHUHFRJQLVHGDPRXQWDQGWKHUHLVDQLQWHQWLRQ to settle the asset and liability on a net basis. 'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVDUHRIIVHWZKHQWKHUHLVDOHJDOO\HQIRUFHDEOHULJKWWRVHWRIIDVVHWVDJDLQVWOLDELOLWLHVUHSUHVHQWLQJWKHFXUUHQW WD[DQGZKHUHWKHGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVUHODWHWRWD[HVRQLQFRPHOHYLHGE\WKHVDPHJRYHUQLQJWD[DWLRQODZV 28 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 2.16 Segment Reporting 7KHDFFRXQWLQJSROLFLHVDGRSWHGIRUVHJPHQWUHSRUWLQJDUHLQFRQIRUPLW\ZLWKWKHDFFRXQWLQJSROLFLHVDGRSWHGIRUWKH*URXS5HYHQXHDQG H[SHQVHVKDYHEHHQLGHQWL¿HGWRVHJPHQWVRQWKHEDVLVRIWKHLUUHODWLRQVKLSWRWKHRSHUDWLQJDFWLYLWLHVRIWKHVHJPHQW([SHQVHVQHWRI LQFRPHZKLFKUHODWHWRWKH*URXSDVDZKROHDQGDUHQRWDOORFDEOHWRVHJPHQWVRQDUHDVRQDEOHEDVLVKDYHEHHQLQFOXGHGXQGHU³&RPPRQ XQDOORFDEOHFKDUJHVQHW´ 2.17 Accounting for Employee Stock Options 6WRFNRSWLRQVJUDQWHGWRHPSOR\HHVRI0DVWHN/LPLWHGDQGLWVVXEVLGLDULHVXQGHUWKHVWRFNRSWLRQVFKHPHVHVWDEOLVKHGDIWHU-XQH are accounted as per the treatment prescribed by Employee Stock Option Scheme and Employee Stock Purchase Guidelines issued in 1999 (SEBI guidelines) issued by the Securities and Exchange Board of India (SEBI) and as amended from time to time and the guidance note RQ (PSOR\HH 6KDUHEDVHG 3D\PHQWV LVVXHG E\ WKH ,QVWLWXWH RI &KDUWHUHG $FFRXQWDQWV RI ,QGLD 7KH LQWULQVLF YDOXH RI WKH RSWLRQ EHLQJ excess of market value of the underlying share immediately prior to date of grant over its exercise price is recognised as deferred employee FRPSHQVDWLRQZLWKDFUHGLWWRVKDUHRSWLRQVRXWVWDQGLQJDFFRXQW7KH([SHQVHRQGHIHUUHGHPSOR\HHFRPSHQVDWLRQLVFKDUJHGWR6WDWHPHQW RI3UR¿WDQG/RVVRQVWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRGRIWKHRSWLRQ7KHRSWLRQVWKDWODSVHDUHUHYHUVHGE\DFUHGLWWR([SHQVHRQ (PSOR\HH6WRFN2SWLRQ6FKHPHHTXDOWRWKHDPRUWL]HGSRUWLRQRIYDOXHRIODSVHGSRUWLRQDQGDGHELWWRVKDUHRSWLRQVRXWVWDQGLQJDFFRXQW equal to the un-amortised portion. 2.18 Provisions and Contingent Liabilities 3URYLVLRQVDUHUHFRJQLVHGZKHQWKH*URXSKDVDSUHVHQWREOLJDWLRQDVDUHVXOWRISDVWHYHQWVIRUZKLFKLWLVSUREDEOHWKDWDQRXWÀRZRI UHVRXUFHVHPERG\LQJHFRQRPLFEHQH¿WVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGDUHOLDEOHHVWLPDWHRIWKHDPRXQWFDQEHPDGH$ GLVFORVXUHIRUDFRQWLQJHQWOLDELOLW\LVPDGHZKHUHWKHUHLVDSRVVLEOHREOLJDWLRQWKDWDULVHVIURPSDVWHYHQWVDQGWKHH[LVWHQFHRIZKLFKZLOO EHFRQ¿UPHGRQO\E\WKHRFFXUUHQFHRUQRQRFFXUUHQFHRIRQHRUPRUHXQFHUWDLQIXWXUHHYHQWVQRWZKROO\ZLWKLQWKHFRQWURORIWKH*URXS RUDSUHVHQWREOLJDWLRQWKDWDULVHVIURPWKHSDVWHYHQWVZKHUHLWLVHLWKHUQRWSUREDEOHWKDWDQRXWÀRZRIUHVRXUFHVZLOOEHUHTXLUHGWRVHWWOH WKHREOLJDWLRQRUDUHOLDEOHHVWLPDWHRIWKHDPRXQWFDQQRWEHPDGH3URYLVLRQVDUHUHYLHZHGUHJXODUO\DQGDUHDGMXVWHGZKHUHQHFHVVDU\WR UHÀHFWWKHFXUUHQWEHVWHVWLPDWHVRIWKHREOLJDWLRQ:KHUHWKH*URXSH[SHFWVDSURYLVLRQWREHUHLPEXUVHGWKHUHLPEXUVHPHQWLVUHFRJQL]HG DVDVHSDUDWHDVVHWRQO\ZKHQVXFKUHLPEXUVHPHQWLVYLUWXDOO\FHUWDLQ 2.19 Cash and Cash Equivalents &DVKDQGFDVKHTXLYDOHQWVLQFOXGHFDVKLQKDQGGHPDQGGHSRVLWVZLWKEDQNVDQGRWKHUVKRUWWHUPKLJKO\OLTXLGLQYHVWPHQWVZLWKRULJLQDO maturities of three months or less. 3. Share capital As at $VDW March 31, 2015 0DUFK $XWKRULVHG 0DUFK HTXLW\VKDUHVRI`HDFK 2,000.00 0DUFK SUHIHUHQFHVKDUHVRI`HDFK 2,000.00 4,000.00 ,VVXHGVXEVFULEHGDQGIXOO\SDLGXS 0DUFK HTXLW\VKDUHVRI`HDFKIXOO\SDLG 1,127.33 Total 1,127.33 (a) Reconciliation of the number of shares As at $VDW March 31, 2015 0DUFK No. of shares Amount No. of shares $PRXQW Equity Shares Balance as at the beginning of the year 22,160,680 1,108.03 $GG $GGLWLRQRQDFFRXQWRIH[HUFLVHRIHPSOR\HHVWRFN 385,992 19.30 option plans /HVV 6KDUHVH[WLQJXLVKHGXSRQEX\EDFN – – Balance as at the end of the year 22,546,672 1,127.33 29 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) (b) Rights, preferences and restrictions attached to shares The Company has one class of equity shares having a par value of `SHUVKDUH(DFKVKDUHKROGHULVHOLJLEOHIRURQHYRWHSHUVKDUHKHOG 7KHGLYLGHQGSURSRVHGE\WKH%RDUGRI'LUHFWRUVLVVXEMHFWWRWKHDSSURYDORIWKHVKDUHKROGHUVLQWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJH[FHSW LQFDVHRILQWHULPGLYLGHQG,QWKHHYHQWRIOLTXLGDWLRQWKHHTXLW\VKDUHKROGHUVDUHHOLJLEOHWRUHFHLYHWKHUHPDLQLQJDVVHWVRIWKH&RPSDQ\ DIWHUGLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWVLQSURSRUWLRQWRWKHLUVKDUHKROGLQJ (c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company As at $VDW March 31, 2015 0DUFK Equity Shares of `HDFKKHOGE\ No. of shares % of holding No. of shares % of holding $VKDQN'HVDL 3,099,552 13.75% 13.99% 6XGKDNDU5DP 2,791,680 12.38% .HWDQ0HKWD 2,519,100 11.17% )LGHOLW\3XULWD7UXVW)LGHOLW\/RZ3ULFHG 1,650,000 7.32% 9.14% 5DGKDNULVKQDQ6XQGDU 1,445,800 6.41% /LIH,QVXUDQFH&RUSRUDWLRQRI,QGLD – – 6.99% $VKLVK'KDZDQ – – 6KDUHKROGLQJDVDW0DUFKLVUHGXFHGWROHVVWKDQ 6KDUHKROGLQJDVDW0DUFKUHGXFHGWR1LO (d) Shares reserved for issue under options As at $VDW March 31, 2015 0DUFK Number of shares to be issued under the employee stock option plans 2,892,776 >5HIHUQRWH D IRUGHWDLOVRIVKDUHVWREHLVVXHGXQGHUWKH(PSOR\HH6WRFN2SWLRQ6FKHPH@ (e) Shares bought back (during 5 years immediately preceding March 31, 2015) March 31, 2015 0DUFK 0DUFK -XQH -XQH Equity shares bought back – ± ± Shares bought back during the year ended March 31, 2014 : $W WKHPHHWLQJRIWKH%RDUGRI'LUHFWRUV RIWKH&RPSDQ\KHOGRQ-DQXDU\WKH%RDUGKDGJLYHQFRQVHQW IRUWKHEX\EDFNRI Company’s fully paid up equity shares of ` HDFK IURP H[LVWLQJ VKDUHKROGHUV DQG EHQH¿FLDO RZQHUV LQ DFFRUGDQFH ZLWK WKH UHOHYDQW SURYLVLRQVRI&RPSDQLHV$FW DQG6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD %X\%DFNRI6HFXULWLHV 5HJXODWLRQV IRUDQDPRXQWQRW exceeding `DQGIRUDSULFHQRWH[FHHGLQJ`SHUHTXLW\VKDUH7KHQXPEHURIVKDUHVWREHERXJKWEDFNZDVVXEMHFWWRDPLQLPXP RI (TXLW\6KDUHVDQGDPD[LPXPRI(TXLW\6KDUHV 6LQFHWKHFRPPHQFHPHQWRIWKHEX\EDFNXQWLOWKHFORVXUHGDWH 0DUFK WKH&RPSDQ\KDGERXJKWEDFNHTXLW\VKDUHVDW an average price of `SHUHTXLW\VKDUH&RQVHTXHQWO\DVXPRI` KDGEHHQXWLOLVHGIURP*HQHUDO5HVHUYHLQUHVSHFWRIWKH EX\EDFN2XWRIWKHDPRXQWXWLOLVHGIURP*HQHUDO5HVHUYHDQDPRXQWRI`KDGEHHQDSSURSULDWHGWRWKH&DSLWDOUHGHPSWLRQUHVHUYH account and the paid up share capital had been reduced by the same amount. The company had fully extinguished the shares bought back during the above mentioned period. 4. Reserves and surplus As at $VDW March 31, 2015 0DUFK Capital reserve 21.44 21.44 Capital redemption reserve account Balance as at the beginning of the year 1,538.87 $GG 7UDQVIHUUHGIURP*HQHUDOUHVHUYH>5HIHUQRWH H @ – Balance as at the end of the year 1,538.87 Securities premium account Balance as at the beginning of the year 5.66 – $GG $GGLWLRQRQDFFRXQWRIH[HUFLVHRIVKDUHVXQGHUWKHHPSOR\HHVWRFNRSWLRQSODQV 539.50 Balance as at the end of the year 545.16 Employee stock options outstanding account $GGLWLRQRQDFFRXQWRIHPSOR\HHVWRFNRSWLRQSODQV 131.75 – %DODQFHDVDWWKHHQGRIWKH\HDU>5HIHUQRWH I @ 131.75 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 4. Reserves and surplus (Contd.) As at $VDW March 31, 2015 0DUFK General reserve Balance as at the beginning of the year 2,597.83 /HVV 8WLOLVHGIRUEX\EDFNRIVKDUHV>5HIHUQRWH H @ – /HVV 7UDQVIHUUHGWRFDSLWDOUHGHPSWLRQUHVHUYH$FFRXQW>5HIHUQRWH H @ – $GG 7UDQVIHUIURPVXUSOXVLQVWDWHPHQWRISUR¿WDQGORVVGXULQJWKH\HDU 180.00 Balance as at the end of the year 2,777.83 Hedging reserve account Balance as at the beginning of the year 31.20 $GG &KDQJHVLQWKHIDLUYDOXHRIWKHHIIHFWLYHFDVKÀRZKHGJHV 1,849.71 Balance as at the end of the year 1,880.91 Foreign currency translation reserve Balance as at the beginning of the year 8,856.68 $GG ([FKDQJHJDLQRQWUDQVODWLRQGXULQJWKH\HDU (213.23) Balance as at the end of the year 8,643.45 6XUSOXVLQVWDWHPHQWRISUR¿WDQGORVV Balance as at the beginning of the year 41,859.30 3UR¿WIRUWKH\HDU 1,773.05 /HVV $SSURSULDWLRQV Interim dividend (336.64) 3URSRVHG¿QDOGLYLGHQGRQHTXLW\VKDUHVIRUWKH\HDU (227.30) 'LYLGHQGGLVWULEXWLRQWD[QHW 30.37 Transfer to general reserve (180.00) Balance as at the end of the year 42,918.78 Total 58,458.19 'LYLGHQG'LVWULEXWLRQ7D[ ''7 QHWSHUWDLQLQJWRWKHFXUUHQW\HDUFRPSULVHVWKH''7OLDELOLW\RI` SUHYLRXV\HDU` RQLQWHULP GLYLGHQGDQGSURSRVHG¿QDOGLYLGHQGDQGDFUHGLWRI` SUHYLRXV\HDU` LQUHVSHFWRIWD[SDLGXV%%'RIWKH,QGLDQ,QFRPH 7D[$FW E\WKH&RPSDQ\RQGLYLGHQGUHFHLYHGIURPDIRUHLJQVXEVLGLDU\GXULQJWKH\HDU 5. Long-term borrowings As at $VDW March 31, 2015 0DUFK 6HFXUHG 7HUPORDQIURPEDQN>5HIHUQRWH D EHORZ@ 1,875.00 – /RQJWHUPPDWXULWLHVRI¿QDQFHOHDVHREOLJDWLRQV>5HIHUQRWH E EHORZDQGQRWH LL @ 85.66 Total 1,960.66 1RWH Nature of security Terms of repayment (a) Secured by Standby Letter of Credit given by the 5HSD\DEOHGD\VEHIRUHPDWXULW\GDWHRI6WDQGE\/HWWHURI&UHGLW &RPSDQ\RQEHKDOIRIVXEVLGLDU\0DMHVFR ZKLFK LV WK -DQXDU\ 7KH DSSOLFDEOH UDWH RI LQWHUHVW LV VL[ PRQWKV/,%25SOXVESVSD (b) Finance lease obligations are secured by Monthly payment of Equated Monthly Instalments beginning from hypothecation of assets underlying the leases. the month subsequent to taking the lease. 6. Other long-term liabilities As at $VDW March 31, 2015 0DUFK Contingent consideration payable on business acquisition 693.75 - Total 693.75 - 31 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 7. Long-term provisions As at $VDW March 31, 2015 0DUFK 3URYLVLRQIRUHPSOR\HHEHQH¿WV 3URYLVLRQIRUJUDWXLW\>5HIHUQRWH E LLL @ – 3URYLVLRQIRUOHDYHHQFDVKPHQW>5HIHUQRWH F @ 2,005.59 Other Provisions 3URYLVLRQIRUFRVWRYHUUXQRQFRQWUDFWV 15.76 Total 2,021.35 0RYHPHQWLQVKRUWWHUPDQGORQJWHUPSURYLVLRQVUHSUHVHQWVWKHDPRXQWVKRZQDVµ5HYHUVDORI SURYLVLRQIRUFRVWRYHUUXQRQFRQWUDFWVQHW¶ 5HIHUQRWH 8. Short-term borrowings As at $VDW March 31, 2015 0DUFK 6HFXUHG Working capital loan from bank 918.75 ± Total 918.75 ± (a) Nature of security L 6HFXUHGDJDLQVWFXUUHQWDVVHWVLQFOXGLQJUHFHLYDEOHVRI0DMHVFR86$ LL 6HFXUHGE\FRUSRUDWHJXDUDQWHHJLYHQE\WKH&RPSDQ\RQEHKDOIRIVXEVLGLDU\0DMHVFR (b) Terms of repayment L 7KHZRUNLQJ&DSLWDOIDFLOLW\LVYDOLGWLOO1RYHPEHU LL 5HSD\DEOHDWWKHGLVFUHWLRQRIWKH*URXSXSWRWKHHDUOLHURIGD\VRUWKHYDOLGLW\ date of the facility. 9. Trade payables As at $VDW March 31, 2015 0DUFK Trade payables 935.70 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 319.78 ± Total 1,255.48 10. Other current liabilities As at $VDW March 31, 2015 0DUFK &XUUHQWPDWXULWLHVRI¿QDQFHOHDVHREOLJDWLRQVLQUHVSHFWRIYHKLFOHV>5HIHUQRWH LL @ 49.56 Unearned revenue 3,704.79 $GYDQFHVUHFHLYHGIURPFXVWRPHUV – 8QSDLGGLYLGHQGV>5HIHUQRWH D EHORZ@ 41.37 Security and other deposits 1.58 Other payables (PSOR\HHEHQH¿WVSD\DEOH 3,224.35 $FFUXHGH[SHQVHV 4,030.61 Contingent consideration payable on business acquisition 312.50 ± Capital creditors 149.83 Statutory dues including provident fund and tax deducted at source 3,469.84 14,984.43 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 66.33 ± Total 15,050.76 (a) There is no amount due for payment to Investor Education and Protection Fund under 6HFWLRQ&RIWKH&RPSDQLHV$FW DVDWWKH\HDUHQG 6HFWLRQRI&RPSDQLHV$FWZKLFKFRUUHVSRQGVWR6HFWLRQ&RI&RPSDQLHV $FW KDVQRW\HWEHHQHQIRUFHG 32 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 11. Short-term provisions As at $VDW March 31, 2015 0DUFK 3URYLVLRQIRUHPSOR\HHEHQH¿WV 3URYLVLRQIRUOHDYHHQFDVKPHQW>5HIHUQRWH F @ 1,012.11 Other Provisions 3URYLVLRQIRUFRVWRYHUUXQRQFRQWUDFWV 177.66 ± 3URYLVLRQIRUWD[HVQHWRIDGYDQFHWD[ 220.09 3URYLVLRQIRUPDUNWRPDUNHWORVVHVRQRXWVWDQGLQJGHULYDWLYHFRQWUDFWV 5HIHUQRWH – 3URYLVLRQIRUSURSRVHG¿QDOGLYLGHQGDW5HSHUVKDUH 3UHYLRXV\HDU`SHUVKDUH 225.47 on equity shares of face value of `HDFK 3URYLVLRQIRUGLYLGHQGGLVWULEXWLRQWD[RQSURSRVHG¿QDOGLYLGHQGRQHTXLW\VKDUHV 47.19 Total 1,682.52 0RYHPHQWLQVKRUWWHUPDQGORQJWHUPSURYLVLRQVUHSUHVHQWVWKH DPRXQWVKRZQDVµ5HYHUVDO RISURYLVLRQIRUFRVWRYHUUXQRQFRQWUDFWVQHW¶ 5HIHUQRWH 12. Fixed assets (i) Tangible assets Gross Block (at cost) Depreciation Net Block $VDW $GGLWLRQV Disposals Foreign As at $VDW$SULO For the Disposals Foreign As at As at $VDW $SULO exchange March year exchange March March March translation 31, 2015 translation 31, 2015 31, 2015 adjustments adjustments D2ZQDVVHWV Buildings ± ± ± 5,891.77 ± ± 1,921.26 3,970.51 Computers 5,031.30 948.98 4,075.30 956.00 Plant and equipment 4,708.01 (84.93) 4,345.16 362.85 )XUQLWXUHDQG¿[WXUHV 6,259.46 348.98 (3.84) 5,806.98 452.48 9HKLFOHV 412.89 (121.24) 357.76 243.84 231.85 125.91 2I¿FHHTXLSPHQW 49.94 (2.88) 1,956.56 (2.48) 1,791.89 164.67 Total 32.31 24,204.86 28.99 18,172.44 6,032.42 6KDUHRI-RLQW9HQWXUH ± ± 6.28 ± 1.76 4.52 ± Total (A) 23,239.89 1,406.00 (466.59) 31.84 24,211.14 16,652.34 1,916.52 (423.54) 28.88 18,174.20 6,036.94 6,587.55 E/HDVHGDVVHWV Leasehold land ± ± ± 558.45 ± ± 166.47 391.98 Leasehold ± 408.54 ± 406.36 2.18 improvements 9HKLFOHV 262.12 ± (31.63) ± 230.49 (24.99) ± 78.88 151.61 Total (B) 1,228.37 0.42 (31.63) 0.32 1,197.48 564.17 112.21 (24.99) 0.32 651.71 545.77 664.20 Total (A+B) 24,468.26 1,406.42 (498.22) 32.16 25,408.62 17,216.51 2,028.73 (448.53) 29.20 18,825.91 6,582.71 7,251.75 (ii) Intangible assets Gross Block (at cost) $PRUWLVDWLRQ Net Block $VDW $GGLWLRQV Disposals Foreign As at $VDW For the Disposals Foreign As at As at $VDW $SULO exchange March 31, $SULO year exchange March 31, March 31, 0DUFK translation 2015 translation 2015 2015 adjustments adjustments 2ZQDVVHWV DFTXLUHG *RRGZLOO ± 21,479.75 416.16 ± 21.94 980.20 20,499.55 &RPSXWHUVRIWZDUH ± (16.91) 6,590.01 ± 5,785.70 804.31 Total ± ± 6.43 6KDUHRI-RLQW9HQWXUH - ± 2.20 ± ± 1.74 0.45 ± Total 23,900.72 3,410.05 – 761.19 28,071.96 5,070.54 1,690.78 – 6.32 6,767.64 21,304.31 18,830.18 Note: 2ZQEXLOGLQJVLQFOXGHVXEVFULSWLRQWRZDUGVVKDUHFDSLWDORI&RRSHUDWLYHVRFLHWLHVDPRXQWLQJWR5XSHHV7ZRKXQGUHGDQG¿IW\RQO\ 3UHYLRXVSHULRG5XSHHV7ZRKXQGUHG DQG¿IW\RQO\ 33 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 12. Fixed assets for previous year ended March 31, 2014 (i) Tangible assets Gross Block (at cost) Depreciation Net Block $VDW$SULO $GGLWLRQV Disposals Foreign $VDW0DUFK $VDW$SULO For the Disposals Foreign $VDW $VDW0DUFK $VDW exchange year exchange 0DUFK 0DUFK translation translation adjustments adjustments D2ZQDVVHWV Buildings ± ± ± ± ± Computers 688.22 Plant and equipment )XUQLWXUHDQG¿[WXUHV 64.16 9HKLFOHV 412.89 66.69 243.84 2I¿FHHTXLSPHQW 61.61 (2.13) ± Total (A) 23,007.85 1,565.07 (1,601.49) 268.46 23,239.89 16,309.23 1,732.04 (1,601.25) 212.32 16,652.34 6,587.55 6,698.62 E/HDVHGDVVHWV Leasehold land ± ± ± ± ± Leasehold ± 3.39 16.89 improvements 9HKLFOHV ± 262.12 21.16 ± Total (B) 1,285.53 72.69 (133.25) 3.40 1,228.37 580.03 112.17 (131.42) 3.39 564.17 664.20 705.50 Total (A+B) 24,293.38 1,637.76 (1,734.74) 271.86 24,468.26 16,889.26 1,844.21 (1,732.67) 215.71 17,216.51 7,251.75 7,404.12 (ii) Intangible assets Gross Block (at cost) $PRUWLVDWLRQ Net Block $VDW$SULO $GGLWLRQV Disposals Foreign $VDW0DUFK $VDW$SULO For the Disposals Foreign $VDW0DUFK $VDW0DUFK $VDW0DUFK exchange year exchange translation translation adjustments adjustments *RRGZLOO 248.93 ± ± &RPSXWHUVRIWZDUH Total 21,728.21 1,315.33 (960.42) 1,817.60 23,900.72 4,442.56 1,429.15 (960.42) 159.25 5,070.54 18,830.18 17,285.65 Note: D 2ZQEXLOGLQJVLQFOXGHVXEVFULSWLRQWRZDUGVVKDUHFDSLWDORI&R RSHUDWLYHVRFLHWLHVDPRXQWLQJWR5XSHHV7ZRKXQGUHGDQG¿IW\RQO\ 3UHYLRXVSHULRG5XSHHV7ZRKXQGUHGDQG ¿IW\RQO\ 13. Non-current investments As at $VDW March 31, 2015 0DUFK Investment property (at cost less accumulated depreciation) Gross block Opening and Closing 389.41 389.41 /HVV $FFXPXODWHGGHSUHFLDWLRQ Opening 134.65 Depreciation for the year 13.92 13.92 Closing 148.57 Net Block 240.84 $JJUHJDWHDPRXQWRILQYHVWPHQWSURSHUW\ 240.84 14. Deferred tax assets As at $VDW March 31, 2015 0DUFK 'HIHUUHGWD[DVVHWVLQUHVSHFWRI Provision for doubtful debts 168.90 Depreciation and amortisation 1,105.64 Provision for gratuity and leave encashment 994.62 Other timing differences 106.93 Total 2,376.09 34 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 15. Long-term loans and advances As at $VDW March 31, 2015 0DUFK 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVRWKHUZLVHVWDWHG Capital advances 25.46 Security deposits 172.37 Prepaid expenses 20.14 38.19 $GYDQFHWRRWKHUERG\FRUSRUDWH Considered doubtful - 119.83 /HVV $OORZDQFHIRUGRXEWIXODGYDQFH - (119.83) Other loans and advances $GYDQFHLQFRPHWD[QHWRISURYLVLRQIRUWD[ 2,075.91 0$7FUHGLWHQWLWOHPHQW>5HIHUQRWH D @ 2,694.26 $GYDQFHVWRHPSOR\HHV 6.11 4,994.25 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 9.54 - Total 5,003.79 16. Other non-current assets As at $VDW March 31, 2015 0DUFK 0DUNWRPDUNHWJDLQVUHFHLYDEOHRQRXWVWDQGLQJGHULYDWLYHFRQWUDFWV 5HIHUQRWH 309.58 26.46 17. Current investments As at $VDW March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otal 5,121.20 $JJUHJDWHDPRXQWRITXRWHGLQYHVWPHQWV 5,121.20 Market value of quoted investments 5,453.71 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 18. Trade receivables As at $VDW March 31, 2015 0DUFK 8QVHFXUHGFRQVLGHUHGJRRG 2XWVWDQGLQJIRUDSHULRGH[FHHGLQJVL[PRQWKVIURPWKHGDWHWKH\ZHUHGXHIRUSD\PHQW 308.03 - Others 13,040.98 8QVHFXUHGFRQVLGHUHGGRXEWIXO 2XWVWDQGLQJIRUDSHULRGH[FHHGLQJVL[PRQWKVIURPWKHGDWHWKH\ZHUHGXHIRUSD\PHQW 791.36 Others 50.60 - /HVV 3URYLVLRQIRUGRXEWIXOGHEWV (841.96) Total 13,349.01 19. Cash and bank balances As at $VDW March 31, 2015 0DUFK Cash and cash equivalents Cash on hand 2.45 2.38 Bank balances In current accounts 2,931.95 )L[HGGHSRVLWV ZLWKRULJLQDOPDWXULW\RIOHVVWKDQPRQWKV 8,565.96 11,500.36 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 912.08 - 12,412.44 Other bank balances )L[HG GHSRVLWV ZLWK RULJLQDO PDWXULW\ PRUH WKDQ PRQWKV EXW OHVV 3,850.00 than 12 months) Unpaid dividend account 41.37 3,891.37 Total 16,303.81 20. Short-term loans and advances As at $VDW March 31, 2015 0DUFK 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVRWKHUZLVHVWDWHG Other loans and advances Security deposits Considered good 62.82 Considered doubtful 7.42 - /HVV 3URYLVLRQIRUGRXEWIXO (7.42) - $GYDQFHFRQWULEXWLRQWRHPSOR\HHEHQH¿WSODQJUDWXLW\>5HIHUQRWH E LLL @ 122.00 - Prepaid expenses 1,283.77 Service tax credit receivable 1,456.03 $GYDQFHVWRVXSSOLHUV Considered good 247.44 Considered doubtful 7.26 /HVV 3URYLVLRQIRUGRXEWIXODGYDQFHV (7.26) $GYDQFHVWRHPSOR\HHV 74.98 3,247.04 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 300.17 - Total 3,547.21 36 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 21. Other current assets As at $VDW March 31, 2015 0DUFK 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVRWKHUZLVHVWDWHG ,QWHUHVWDFFUXHGRQ¿[HGGHSRVLWV 157.33 ± Interest accrued on income tax refunds 122.71 Margin money deposit 192.13 182.23 $FFUXHGUHYHQXH 6,671.82 5HLPEXUVDEOHH[SHQVHVUHFHLYDEOH Considered good 183.81 Considered doubtful 34.49 23.98 /HVV 3URYLVLRQIRUGRXEWIXOUHFHLYDEOH (34.49) (23.98) 0DUNWRPDUNHWJDLQVUHFHLYDEOHRQRXWVWDQGLQJGHULYDWLYHFRQWUDFWV 5HIHUQRWH 1,571.33 ± Total 8,899.13 22. Contingent Liabilities As at $VDW March 31, 2015 0DUFK &ODLPVDJDLQVW*URXSQRWDFNQRZOHGJHGDVGHEWV (a) Sales tax matter 173.77 ± 7KH*URXSGRHVQRWH[SHFWDQ\RXWÀRZVLQUHVSHFWRIWKHDERYHFRQWLQJHQWOLDELOLWLHV L 7KH *URXS GRHV QRW H[SHFW DQ\ FDVK RXWÀRZV RU DQ\ UHLPEXUVHPHQWV LQ UHVSHFW RI WKH above contingent liabilities. LL ,WLVQRWSUDFWLFDEOHIRUWKH*URXSWRHVWLPDWHWKHWLPLQJRIFDVKRXWÀRZVLIDQ\LQUHVSHFW of the above pending resolution of respective proceedings. 23. Capital and other commitments As at $VDW March 31, 2015 0DUFK Capital commitments 84.87 Estimated amount of contracts remaining to be executed on capital account not provided for 24. Revenue from operations Year ended Year ended March 31, 2015 0DUFK Information technology services 100,196.28 Other operating revenue 5HLPEXUVHPHQWRIH[SHQVHVIURPFXVWRPHUV 956.29 5HVDOHRIVRIWZDUHDQGKDUGZDUH 70.38 Doubtful debts recovered 35.44 Total 101,258.39 25. Other income Year ended Year ended March 31, 2015 0DUFK ,QWHUHVWLQFRPH 2Q¿[HGGHSRVLWV 242.39 - On Income tax refunds 311.48 - On others 14.01 3UR¿WRQVDOHRIFXUUHQWLQYHVWPHQWV 789.18 5HQWDOLQFRPHIURPLQYHVWPHQWSURSHUWLHV 44.32 3UR¿WRQVDOHRIWDQJLEOHDVVHWVQHW 26.00 Miscellaneous income 283.96 Total 1,711.34 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 26. (PSOR\HHEHQH¿WVH[SHQVHV Year ended Year ended March 31, 2015 0DUFK 6DODULHVZDJHVDQGSHUIRUPDQFHLQFHQWLYHV 55,962.48 *UDWXLW\>5HIHUQRWH E LY @ 773.07 &RQWULEXWLRQWRSURYLGHQWDQGRWKHUIXQGV>5HIHUQRWH D @ 2,157.95 (PSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHV>5HIHUQRWH E @ 131.75 - 6WDIIZHOIDUHH[SHQVH 2,899.67 61,924.92 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 130.51 - Total 62,055.43 27. Finance costs Year ended Year ended March 31, 2015 0DUFK ,QWHUHVWIHHVRQZRUNLQJFDSLWDOIDFLOLW\ 99.80 Interest on term loan 9.52 - ,QWHUHVWRQ¿QDQFHOHDVH 21.63 Bank charges 14.56 2WKHU¿QDQFHFKDUJHV 1.16 146.67 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 0.43 - Total 147.10 28. Depreciation and amortisation expenses Year ended Year ended March 31, 2015 0DUFK Depreciation on tangible assets 2,026.86 $PRUWLVDWLRQRQLQWDQJLEOHDVVHWV 1,688.93 Depreciation on investment property 13.92 13.92 3,729.71 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 3.72 - Total 3,733.43 29. Other expenses Year ended Year ended March 31, 2015 0DUFK 5HFUXLWPHQWDQGWUDLQLQJH[SHQVHV 513.13 Travelling and conveyance 5,317.18 Communication charges 716.33 Electricity 750.56 Consultancy and sub-contracting charges 15,419.10 3XUFKDVHRIKDUGZDUHDQGVRIWZDUH 391.58 5DWHVDQGWD[HV 499.83 5HSDLUVWREXLOGLQJV 516.26 5HSDLUV RWKHUV 1,530.95 Insurance 351.62 Printing and stationery 160.48 Professional fees 2,259.78 5HQW 5HIHUQRWH 771.67 892.93 $GYHUWLVHPHQWDQGSXEOLFLW\ 832.61 Net loss on foreign currency transactions and translation 90.19 Provision for doubtful debts 554.32 %DGGHEWZULWWHQRII 60.01 9.39 +LUH&KDUJHV 249.92 38 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) Year ended Year ended March 31, 2015 0DUFK 5HYHUVDO 3URYLVLRQIRUFXVWRPHUFODLPV (109.89) 3URYLVLRQ 5HYHUVDORISURYLVLRQ IRUFRVWRYHUUXQRQFRQWUDFWVQHW 192.36 (124.63) ([SHQGLWXUHWRZDUGVFRUSRUDWHVRFLDOUHVSRQVLELOLW\ &65 DFWLYLWLHV 84.94 ± 5HYHUVDORIDFFUXHGUHYHQXH 864.02 ± Miscellaneous expenses 631.13 32,648.08 6KDUHRIMRLQWYHQWXUH 5HIHUQRWH 992.45 ± Total 33,640.53 30. Exceptional Items Year ended Year ended March 31, 2015 0DUFK 5HVWUXFWXULQJH[SHQVHV6DODULHVZDJHVDQGSHUIRUPDQFHLQFHQWLYHV 199.59 ± Demerger expenses Professional fees 806.01 ± 6DODULHVZDJHVDQGSHUIRUPDQFHLQFHQWLYHV 112.11 ± Others 44.89 ± ,PSDLUPHQWRIJRRGZLOO 5HIHUQRWH 3.52 ± Total 1,166.12 ± 31. Earnings Per Share (EPS) Year ended Year ended March 31, 2015 0DUFK 7KHFRPSRQHQWVRIEDVLFDQGGLOXWHGHDUQLQJVSHUVKDUHIRUWRWDORSHUDWLRQVDUHDVIROORZV (a) Net income attributable to equity shareholders 1,773.05 (b) Weighted average number of outstanding equity shares Considered for basic EPS 22,320,332 $GG (IIHFWRIGLOXWLYHSRWHQWLDOHTXLW\VKDUHVDULVLQJIURPRXWVWDQGLQJVWRFNRSWLRQV 1,106,757 Considered for diluted EPS 23,427,089 (c) Earnings per share (net of taxes) in ` Basic ` 7.94 ` Diluted ` 7.57 ` (Face value per share `HDFK The components of basic and diluted earnings per share for continuing operations (i.e. Solutions EXVLQHVV DUHDVIROORZV (a) Net income attributable to equity shareholders 3,647.66 (b) Weighted average number of outstanding equity shares Considered for basic EPS 22,320,332 $GG (IIHFWRIGLOXWLYHSRWHQWLDOHTXLW\VKDUHVDULVLQJIURPRXWVWDQGLQJVWRFNRSWLRQV 1,106,757 Considered for diluted EPS 23,427,089 (c) Earnings per share (net of taxes) in ` Basic ` 16.34 ` Diluted ` 15.57 ` 12.32 (Face value per share `HDFK 32. Leases As at $VDW March 31, 2015 0DUFK (i) Operating leases (a) Future minimum lease payments under non-cancellable operating leases (in respect of SURSHUWLHV 'XHZLWKLQRQH\HDU 537.38 'XHODWHUWKDQ\HDUEXWQRWODWHUWKDQ\HDUV 343.04 Total minimum lease payments 880.42 39 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) Year ended Year ended March 31, 2015 0DUFK E 2SHUDWLQJOHDVHUHQWDOVUHFRJQLVHGLQWKHVWDWHPHQWRISUR¿WDQGORVV 5HIHUQRWH 771.67 892.93 F 'HVFULSWLRQRIVLJQL¿FDQWRSHUDWLQJOHDVHDUUDQJHPHQWV The Group has given refundable interest free security deposits under the lease agreements. $OODJUHHPHQWVFRQWDLQSURYLVLRQIRUUHQHZDODWWKHRSWLRQRIHLWKHUSDUWLHV (ii) Finance leases As at $VDW March 31, 2015 0DUFK 7RWDOPLQLPXP¿QDQFHOHDVHSD\PHQWVRXWVWDQGLQJ LQUHVSHFWRIYHKLFOHV 'XHZLWKLQRQH\HDU 66.42 'XHODWHUWKDQ\HDUEXWQRWODWHUWKDQ\HDUV 96.62 Total minimum lease payments 163.04 /HVV ,QWHUHVWQRWGXH (27.82) Present value of net minimum leases payments 135.22 'LVFORVHGXQGHU /RQJWHUPERUURZLQJV 5HIHUQRWH 85.66 2WKHUFXUUHQWOLDELOLWLHV 5HIHUQRWH 49.56 135.22 33. Share in Joint Venture 7KH&RPSDQ\KDVWKHIROORZLQJLQYHVWPHQWLQDMRLQWO\FRQWUROOHGHQWLW\ Country of RIRZQHUVKLSLQWHUHVWDVDW Name Incorporation 0DUFK 0DUFK Legal Practice Technologies Limited 8. ± 7KH*URXSVKDUHRIHDFKRIWKHDVVHWVOLDELOLWLHVLQFRPHH[SHQVHVHWF HDFKZLWKRXWHOLPLQDWLRQRIWKHHIIHFWRIWUDQVDFWLRQVEHWZHHQWKH*URXS DQGWKH-RLQW9HQWXUH UHODWHGWRLWVLQWHUHVWLQWKLVMRLQWYHQWXUHEDVHGRQWKHDXGLWHG¿QDQFLDOVWDWHPHQWVDUH As at March 31, 2015 (a) ASSETS Tangible assets 4.52 Intangible assets 0.45 &DSLWDOZRUNLQSURJUHVV 1,632.32 Long-term loans and advances 9.54 Cash and bank balances 912.08 Short-term loans and advances 300.17 (b) LIABILITIES Shareholders’ funds 719.73 /RQJWHUPERUURZLQJV 1,753.24 Trade payables 319.78 Other current liabilities 66.33 (c) EXPENSES (PSOR\HHEHQH¿WVH[SHQVHV 130.51 Finance costs 0.43 Depreciation and amortisation expenses 3.72 Other expenses 992.45 )XOO\HOLPLQDWHGRQLQWUDJURXSEDODQFHVRQFRQVROLGDWLRQ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 34. (PSOR\HHEHQH¿WSODQV 7KHGLVFORVXUHVUHTXLUHGDVSHUWKHUHYLVHG$FFRXQWLQJ6WDQGDUG $6 (PSOR\HH%HQH¿WV UHYLVHG DUHDVXQGHU Year ended Year ended March 31, 2015 0DUFK (a) 'H¿QHGFRQWULEXWLRQSODQV 7KH*URXSKDVUHFRJQLVHGWKHIROORZLQJDPRXQWVLQ6WDWHPHQWRI3UR¿WDQG/RVVIRUWKH\HDU Contribution to provident fund 906.50 Contribution to employees’ state insurance corporation 5.26 &RQWULEXWLRQWR0DKDUDVKWUDODERXUZHOIDUHIXQG 1.37 1.38 Superannuation contribution 34.93 Contribution to plans in foreign jurisdictions 1,209.89 7RWDO 5HIHUQRWH 2,157.95 (b) 'H¿QHGEHQH¿WSODQ *UDWXLW\ $VSHUWKHLQGHSHQGHQWDFWXDULDOYDOXDWLRQFDUULHGRXWDVDW0DUFK As at $VDW March 31, 2015 0DUFK (i) &KDQJHLQGH¿QHGEHQH¿WREOLJDWLRQV '%2 3URMHFWHGEHQH¿WREOLJDWLRQRSHQLQJ 2,883.96 Service cost 383.95 Interest cost 292.96 262.61 $FWXDULDOORVV JDLQ 337.41 (611.46) %HQH¿WVSDLG (236.66) (166.33) 3URMHFWHGEHQH¿WREOLJDWLRQFORVLQJ 3,661.62 (ii) &KDQJHLQIDLUYDOXHRIDVVHWV Fair value of plan assets - opening 2,156.78 Expected return on plan assets 211.10 Employer’s contribution 1,622.25 %HQH¿WSDLG (236.66) (166.33) $FWXDULDOJDLQ 30.15 Fair value of plan assets - closing 3,783.62 (iii) $PRXQWUHFRJQL]HGLQWKH%DODQFH6KHHW Present value of obligations 3,661.62 /HVV )DLUYDOXHRISODQDVVHWV (3,783.62) 1HW DVVHWV OLDELOLW\UHFRJQL]HG (122.00) 5HFRJQLVHGXQGHU 6KRUWWHUPORDQVDQGDGYDQFHV 5HIHUQRWH /RQJWHUPSURYLVLRQV 5HIHUQRWH (122.00) Total (122.00) Year ended Year ended March 31, 2015 0DUFK (iv) Net gratuity cost for the year Service cost 383.95 Interest cost 292.96 262.61 Expected return on plan assets (211.10) 1HWDFWXDULDOORVV JDLQ UHFRJQL]HGLQWKHFXUUHQW\HDU 307.26 1HWJUDWXLW\FRVW 5HIHUQRWH 773.07 (v) $VVHWLQIRUPDWLRQ Life Insurance Corporation of India 100% (vi) $VVXPSWLRQVXVHGLQDFFRXQWLQJIRUWKHJUDWXLW\SODQ Discount rate (p.a.) 7.95% 5HWXUQRQSODQDVVHWV SD 8.85% 8.96% Salary escalation rate (p.a.) 10.00% 5HWLUHPHQWDJH 60 years \HDUV 7KH HVWLPDWHV RI VDODU\ HVFDODWLRQ FRQVLGHUHG LQ DFWXDULDO YDOXDWLRQ WDNHV LQWR DFFRXQW LQÀDWLRQ VHQLRULW\SURPRWLRQV DQGRWKHU UHOHYDQWIDFWRUVVXFKDVGHPDQGDQGVXSSO\LQWKHHPSOR\PHQWPDUNHW 41 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) (vii) Expected contribution to the fund in the next year Year ended Year ended March 31, 2015 0DUFK Gratuity 600.00 (viii) $PRXQWVUHFRJQLVHGLQFXUUHQW\HDUDQGSUHYLRXVIRXU\HDUV March 31, 2015 0DUFK 0DUFK -XQH -XQH 'H¿QHGEHQH¿W 3,661.62 obligation Plan assets 3,783.62 6XUSOXV 'H¿FLW 122.00 Experience adjustments On plan liabilities (166.77) (434.66) On plan assets 30.15 ± (c) /HDYHHQFDVKPHQWFKDUJHGXQGHUVDODULHVDQGZDJHVGXULQJWKH\HDUDPRXQWHGWR` 3UHYLRXV\HDU` 35. Employee Stock Option Scheme (a) Nature and extent of employee share-based payment plans that existed during the year: i. Plan III 7KH&RPSDQ\SDVVHGVSHFLDOUHVROXWLRQVDWLWV$QQXDO*HQHUDO0HHWLQJKHOGRQ6HSWHPEHUDSSURYLQJWKHDOORFDWLRQRI stock options to the eligible employees of the Company and its subsidiaries. 7KH&RPSDQ\VXEVHTXHQWO\HVWDEOLVKHGDQHZVFKHPHLQIRUJUDQWLQJVWRFNRSWLRQVWRWKHHPSOR\HHVUHIHUUHGWRDERYHHDFK option representing one equity share of the Company. The exercise price is as governed by the guidelines issued by SEBI. The scheme is governed by the Employee Stock Option Scheme and Employee Stock Purchase Guidelines issued in 1999 by SEBI and as amended from WLPHWRWLPH7KH¿UVWYHVWLQJRIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQFRPSOHWLRQRIRQH\HDUIURPWKHGDWHRIJUDQWDQGWKHRSWLRQVDUH H[HUFLVDEOHZLWKLQWZR\HDUVIURPWKHGDWHRIYHVWLQJ$VSHUWKH6(%,JXLGHOLQHVWKHH[FHVVRIPDUNHWSULFHRIWKHXQGHUO\LQJHTXLW\VKDUHV as of the date of the grant of the options over the exercise price of the option is to be recognized and amortized on a straight line basis over WKHYHVWLQJSHULRG1RRSWLRQVKDYHEHHQJUDQWHGXQGHUWKHVFKHPHDWEHORZPDUNHWSULFHDQGFRQVHTXHQWO\WKHUHLVQRFRPSHQVDWLRQFRVW LQWKHFXUUHQW\HDU,Q$SULOWKH&RPSDQ\LVVXHG%RQXV6KDUHVLQWKHUDWLRRI DQGWKHQXPEHURIXQYHVWHGDQGXQH[HUFLVHGRSWLRQV and the price of the said options have been adjusted accordingly. (No of Options) Year ended Year ended March 31, 2015 0DUFK Opening Balance – Granted during the year – ± Exercised during the year – ± Cancelled during the year – Balance unexercised options – ± ii. Plan IV 7KH6KDUHKROGHUVRIWKH&RPSDQ\WKURXJK3RVWDO%DOORWRQ$XJXVW DSSURYHGWKHDOORFDWLRQRIVWRFNRSWLRQVWRWKHHOLJLEOH employees of the Company and its subsidiaries. 7KH&RPSDQ\VXEVHTXHQWO\HVWDEOLVKHGDQHZVFKHPHLQIRUJUDQWLQJVWRFNRSWLRQVWRWKHHPSOR\HHVUHIHUUHGWRDERYH each option representing one equity share of the Company. The exercise price is as governed by the guidelines issued by SEBI. The scheme is governed by the Employee Stock Option Scheme and Employee Stock Purchase Guidelines issued in 1999 by SEBI and as amended from WLPHWRWLPH7KH¿UVWYHVWLQJRIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQFRPSOHWLRQRIRQH\HDUIURPWKHGDWHRIJUDQWDQGWKHRSWLRQVDUH H[HUFLVDEOHZLWKLQWZR\HDUVIURPWKHGDWHRIYHVWLQJ'XULQJWKH\HDUHQGHG-XQHWKH&RPSDQ\KDVH[WHQGHGWKHYHVWLQJSHULRG IURPWZR\HDUVWRVHYHQ\HDUV$VSHUWKH6(%,JXLGHOLQHVWKHH[FHVVRIPDUNHWSULFHRIWKHXQGHUO\LQJHTXLW\VKDUHVDVRIWKHGDWHRIWKH grant of the options over the exercise price of the option is to be recognized and amortized on a straight line basis over the vesting period. 1RRSWLRQVKDYHEHHQJUDQWHGXQGHUWKHVFKHPHDWEHORZPDUNHWSULFHDQGFRQVHTXHQWO\WKHUHLVQRFRPSHQVDWLRQFRVWLQWKHFXUUHQW\HDU (No of Options) Year ended Year ended March 31, 2015 0DUFK Opening Balance 411,707 Granted during the year – ± Exercised during the year (15,118) ± Cancelled during the year (25,564) Balance unexercised options 371,025 42 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) iii. Plan V 7KH&RPSDQ\LQWURGXFHGDQHZVFKHPHLQIRUJUDQWLQJVWRFNRSWLRQVWRWKHHPSOR\HHVHDFKRSWLRQUHSUHVHQWLQJRQHHTXLW\ VKDUHRIWKH&RPSDQ\7KHH[HUFLVHSULFHDVPD\EHGHWHUPLQHGE\WKH1RPLQDWLRQ 5HPXQHUDWLRQ&RPPLWWHH ³&RPPLWWHH´ DQGVXFK price may be the face value of the share from time to time or may be the Market Price or any price as may be decided by the Committee DQGZLOOEHJRYHUQHGE\WKHJXLGHOLQHVLVVXHGE\6(%,7KHVFKHPHLVJRYHUQHGE\WKH(PSOR\HH6WRFN2SWLRQ6FKHPHDQG(PSOR\HH6WRFN 3XUFKDVH*XLGHOLQHVLVVXHGLQ E\6(%,DQGDVDPHQGHGIURPWLPHWRWLPH7KH¿UVWYHVWLQJRIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQ FRPSOHWLRQRIRQH\HDUIURPWKHGDWHRIJUDQWDQGWKHRSWLRQVDUHH[HUFLVDEOHZLWKLQVHYHQ\HDUVIURPWKHGDWHRIYHVWLQJ$VSHUWKH6(%, JXLGHOLQHVWKHH[FHVVRIPDUNHWSULFHRIWKHXQGHUO\LQJHTXLW\VKDUHVDVRIWKHGDWHRIWKHJUDQWRIWKHRSWLRQVRYHUWKHH[HUFLVHSULFHRI WKHRSWLRQLVWREHUHFRJQL]HGDQGDPRUWL]HGRQDVWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRG'XULQJWKH¿QDQFLDO\HDUHQGHG-XQH RSWLRQVZHUHJUDQWHGDWSULFHOHVVWKHQWKHPDUNHWSULFH7KHUHLVQRFRPSHQVDWLRQFRVWLQWKHFXUUHQW\HDUDVWKHFRVWRIGLVFRXQWHG options has been charged off in earlier year. (No of Options) Year ended Year ended March 31, 2015 0DUFK Opening Balance 673,514 Granted during the year –– Exercised during the year (91,575) – Cancelled during the year (273,000) Balance unexercised options 308,939 iv. Plan VI 7KH&RPSDQ\LQWURGXFHGDQHZVFKHPHLQIRUJUDQWLQJVWRFNRSWLRQVWRWKHHPSOR\HHVHDFKRSWLRQUHSUHVHQWLQJRQHHTXLW\ share of the Company. The exercise price as may be determined by the Committee and such price may be the face value of the share from WLPHWRWLPHRUPD\EHWKH0DUNHW3ULFHRUDQ\SULFHDVPD\EHGHFLGHGE\WKH&RPPLWWHHDQGZLOOEHJRYHUQHGE\WKHJXLGHOLQHVLVVXHGE\ SEBI. The scheme is governed by the Employee Stock Option Scheme and Employee Stock Purchase Guidelines issued in 1999 by SEBI and DVDPHQGHGIURPWLPHWRWLPH7KH¿UVWYHVWLQJRIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQFRPSOHWLRQRIRQH\HDUIURPWKHGDWHRIJUDQW DQGWKHRSWLRQVDUHH[HUFLVDEOHZLWKLQVHYHQ\HDUVIURPWKHGDWHRIYHVWLQJ$VSHUWKH6(%,JXLGHOLQHVWKHH[FHVVRIPDUNHWSULFHRIWKH underlying equity shares as of the date of the grant of the options over the exercise price of the option is to be recognized and amortized on DVWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRG'XULQJWKH\HDUHQGHG0DUFK RSWLRQVKDYHEHHQJUDQWHGXQGHUWKHVFKHPH DWEHORZPDUNHWSULFH&RQVHTXHQWO\WKHDPRUWLVHGFRPSHQVDWLRQFRVWIRUWKHH[HUFLVDEOHRSWLRQVLV` DQGKDYHEHHQFKDUJHGWRWKH VWDWHPHQWRISUR¿WDQGORVVGXULQJWKHFXUUHQW\HDU (No of Options) Year ended Year ended March 31, 2015 0DUFK Opening Balance 1,892,300 Granted during the year 326,957 Exercised during the year (279,299) Cancelled during the year (624,519) Balance unexercised options 1,315,439 v. Plan VII 7KH&RPSDQ\LQWURGXFHGDQHZVFKHPHLQIRUJUDQWLQJVWRFNRSWLRQVWRLWVHPSOR\HHVHPSOR\HHVRILWVVXEVLGLDULHVDQGLWV ,QGHSHQGHQW'LUHFWRUVHDFKRSWLRQJLYLQJDULJKWWRDSSO\IRURQHHTXLW\VKDUHRIWKH&RPSDQ\RQLWVYHVWLQJ7KHH[HUFLVHSULFHDVPD\ be determined by the Committee and such price may be the face value of the share from time to time or may be the Market Price or any SULFHDVPD\EHGHFLGHGE\WKH&RPPLWWHHDQGZLOOEHJRYHUQHGE\WKHJXLGHOLQHVLVVXHGE\6(%,7KHVFKHPHLVJRYHUQHGE\WKH(PSOR\HH 6WRFN2SWLRQ6FKHPHDQG(PSOR\HH6WRFN3XUFKDVH*XLGHOLQHVLVVXHGLQ E\6(%,DQGDVDPHQGHGIURPWLPHWRWLPH7KH¿UVWYHVWLQJ RIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQFRPSOHWLRQRIRQH\HDUIURPWKHGDWHRIJUDQWDQGWKHRSWLRQVDUHH[HUFLVDEOHZLWKLQVHYHQ\HDUV IURPWKHGDWHRIYHVWLQJ$VSHUWKH6(%,JXLGHOLQHVWKHH[FHVVRIPDUNHWSULFHRIWKHXQGHUO\LQJHTXLW\VKDUHVDVRIWKHGDWHRIWKHJUDQW of the options over the exercise price of the option is to be recognized and amortized on a straight line basis over the vesting period. During WKH\HDUHQGHG0DUFKRSWLRQVKDYHEHHQJUDQWHGXQGHUWKHVFKHPHDWEHORZPDUNHWSULFH&RQVHTXHQWO\WKHDPRUWLVHG compensation cost for the exercisable options is ` DQGKDYHEHHQFKDUJHGWRWKHVWDWHPHQWRISUR¿WDQGORVVGXULQJWKHFXUUHQW\HDU (No of Options) Year ended Year ended March 31, 2015 0DUFK Opening Balance – ± Granted during the year 1,069,373 ± Exercised during the year – ± Cancelled during the year (172,000) ± Balance unexercised options 897,373 ± 43 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) (b) 7KH&RPSDQ\KDVDGRSWHGWKHLQWULQVLFYDOXHPHWKRGDVSHUPLWWHGE\WKH6(%,*XLGDQFH1RWHRQ$FFRXQWLQJIRU(PSOR\HH6KDUH%DVHG 3D\PHQWLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDIRUPHDVXULQJWKHFRVWRIVWRFNRSWLRQVJUDQWHG 7KH&RPSDQ\¶VQHWSUR¿WDQGHDUQLQJVSHUVKDUHZRXOGKDYHEHHQDVXQGHUKDGWKHFRPSHQVDWLRQFRVWIRUHPSOR\HHVVWRFNRSWLRQVEHHQ UHFRJQLVHGEDVHGRQWKHIDLUYDOXHDWWKHGDWHRIJUDQWLQDFFRUGDQFHZLWK%ODFN6FKROHVPRGHO Year ended Year ended March 31, 2015 0DUFK 3UR¿WDIWHUWD[DWLRQ 1,773.05 /HVV (PSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHVEDVHGRQIDLUYDOXH (90.18) (36.49) $GG (PSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHVEDVHGRQLQWULQVLFYDOXH 5HIHUQRWH 131.75 ± 3UR¿WDIWHUWD[DWLRQDVSHU)DLUYDOXHPHWKRG 1,814.62 Basic Earning per share (EPS) Number of shares 22,320,332 Basic EPS as reported (`) ` 7.94 ` Proforma Basic EPS (`) ` 8.13 ` 23.16 Diluted Earning per share (EPS) Number of shares 23,427,089 Diluted EPS as reported (`) ` 7.57 ` Proforma Diluted EPS (`) ` 7.75 ` 22.29 (c) 6WRFNRSWLRQVH[HUFLVHGGXULQJWKH\HDU Year ended Year ended March 31, 2015 0DUFK No. of options exercised during the year 385,992 Weighted average share price at the date of exercise (`) 144.77 (d) )RUVWRFNRSWLRQVRXWVWDQGLQJDWWKHHQGRIWKH\HDUWKHUDQJHRIH[HUFLVHSULFHVDQGZHLJKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIH 9HVWLQJ SHULRGH[HUFLVHSHULRG Options Weighted Weighted Average Outstanding Average Exercise remaining Price (`) Contractual Life (years) As at March 31, 2015 Range of Exercise Price (`) 0 - 150 1,416,401 111.51 7.19 151- 250 998,600 186.23 8.09 250 - 350 457,775 295.24 3.01 Above 350 20,000 376.00 4.41 Total 2,892,776 168.21 6.82 $VDW0DUFK 5DQJHRI([HUFLVH3ULFH `) 298.28 3.99 $ERYH Total 44 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) (e) ,QIRUPDWLRQRQVWRFNRSWLRQVJUDQWHGGXULQJWKH\HDU Year ended Year ended March 31, 2015 0DUFK No. of options granted during the year 1,396,330 Option Pricing model used 0DUNHWSULFHDVGH¿QHGE\6(%, Discounted price as per the scheme Weighted average share price (`) 182.74 Exercise Price (`) 145.31 Expected volatility (%) 47.80% 48.98% 2SWLRQOLIH 9HVWLQJSHULRG([HUFLVHSHULRG The risk free interest rates are determined based on the zero-coupon yield curve for government securities. The volatility is determined based on annualized standard deviation of stock price on NSE over the time to maturity of the option. The expected dividend yield is based on the average dividend yields for preceding seven years. (f) (IIHFWRIVKDUHEDVHGSD\PHQWSODQRQWKH%DODQFH6KHHWDQG6WDWHPHQWRI3UR¿WDQG/RVV Year ended Year ended March 31, 2015 0DUFK Expense arising from employee share-based payment plan 131.75 ± (PSOR\HHVWRFNRSWLRQVRXWVWDQGLQJDFFRXQW 5HIHUQRWH 131.75 ± 36. Income Taxes D ,QDFFRUGDQFHZLWKWKH,QGLDQ,QFRPH7D[$FWWKH&RPSDQ\KDVFDOFXODWHGLWVWD[OLDELOLW\DIWHUFRQVLGHULQJ0LQLPXP$OWHUQDWH7D[ 0$7 3D\PHQWVXQGHU0$7FDQEHFDUULHGIRUZDUGDQGVHWRIIDJDLQVWIXWXUHWD[OLDELOLW\IRUDSHULRGRIWHQ\HDUV$FFRUGLQJO\DVXPRI` (Previous year ` KDVEHHQFDUULHGIRUZDUGDQGVKRZQXQGHUµ/RQJWHUPORDQVDQGDGYDQFHV¶ 5HIHU1RWH E ,QDGGLWLRQWR,QGLDQRSHUDWLRQVWKH*URXSKDVDFFRXQWHGIRUWKHWD[OLDELOLWLHVRILWVIRUHLJQVXEVLGLDULHVDQGWKH8.EUDQFKLQDFFRUGDQFH ZLWKWKHLUUHVSHFWLYHWD[OHJLVODWLRQV (c) The Company had received tax demands aggregating to ` LQFOXGLQJLQWHUHVWRI` SULPDULO\RQDFFRXQWRIWUDQVIHUSULFLQJ LVVXHVIRUWKHDVVHVVPHQW\HDUVWR)RUWKHDVVHVVPHQW\HDUDQGDVVHVVPHQW\HDUWKHVHFRQGDSSHOODWH DXWKRULW\ WKH,QFRPH7D[$SSHOODWH7ULEXQDO KDVDOORZHGWKHVHLVVXHVLQIDYRXURIWKHFRPSDQ\DQGWKHLQFRPHWD[DXWKRULWLHVKDYH¿OHGDQ DSSHDOZLWKWKH+RQRXUDEOH+LJK&RXUW)RUWKHDVVHVVPHQW\HDUV DQGDVVHVVPHQW\HDU WKH¿UVWDSSHOODWHDXWKRULW\ WKH &RPPLVVLRQHURI,QFRPHWD[ $SSHDOV KDVDOORZHGPRVWRIWKHVHLVVXHVLQIDYRXURIWKHFRPSDQ\)RUWKHDVVHVVPHQW\HDUVDQG WKHPDWWHULVSHQGLQJEHIRUHWKH¿UVWDSSHOODWHDXWKRULW\ WKH&RPPLVVLRQHURI,QFRPHWD[ $SSHDOV &RQVLGHULQJWKHIDFWVPDWHULDOLW\DQGIDYRXUDEOHRUGHURIWKHVHFRQGDSSHOODWHDXWKRULW\IRUDVVHVVPHQW\HDUVDQGDQGWKH ¿UVWDSSHOODWHDXWKRULW\IRU DQG WKHPDQDJHPHQWEHOLHYHVWKDWWKH¿QDORXWFRPHRIPDMRULW\RIWKHDERYHGLVSXWHVIRUWKH UHPDLQLQJ\HDUVVKRXOGEHLQIDYRXURIWKH&RPSDQ\DQGWKHUHVKRXOGQRWEHDQ\PDWHULDOLPSDFWRQWKH¿QDQFLDOVWDWHPHQWV 37. Derivative Financial Instruments 7KH&RPSDQ\LQDFFRUGDQFHZLWKLWVULVNPDQDJHPHQWSROLFLHVDQGSURFHGXUHVHQWHUVLQWRIRUHLJQFXUUHQF\IRUZDUGFRQWUDFWVWRKHGJHDJDLQVW foreign currency exposures relating to highly probable forecast transactions. The Company does not enter into any derivative instruments for trading RUVSHFXODWLYHSXUSRVHV7KHFRXQWHUSDUW\LVJHQHUDOO\DEDQN7KHVHFRQWUDFWVDUHIRUDSHULRGEHWZHHQRQHGD\DQGWZR\HDUV 7KHIROORZLQJ³VHOO´IRUHLJQH[FKDQJHIRUZDUGFRQWUDFWVDUHRXWVWDQGLQJDVDW March 31, 2015 0DUFK No. of Amount of Amount of No. of Contracts $PRXQWRI $PRXQWRI Contracts Forward Forward )RUZDUG )RUZDUG contracts (FC contracts contracts contracts in Lakhs) (` in Lakhs) (FC in Lakhs) (` in Lakhs) Foreign Currency (FC) aUSD 50 229.80 15,460.96 bGBP 52 158.40 17,066.17 69 c &$' - - - 1 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) As at $VDW 0DUNWR0DUNHW JDLQV ORVVHV March 31, 2015 0DUFK Mark-to-Market losses provided for – 6.81 0DUNWR0DUNHW JDLQV ORVVHVUHSRUWHGLQ+HGJLQJ5HVHUYH$FFRXQW 5HIHUQRWH (1,880.91) 0DUNWR0DUNHW JDLQV ORVVHV QHW (1,880.91) (24.39) &ODVVL¿HGDV2WKHUQRQFXUUHQWDVVHWV 5HIHUQRWH (309.58) (26.46) &ODVVL¿HGDV 2WKHUFXUUHQWDVVHWV 5HIHUQRWH 6KRUWWHUPSURYLVLRQV 5HIHUQRWH (1,571.33) 38. Related Party Disclosures -RLQW9HQWXUH /HJDO3UDFWLFH7HFKQRORJLHV/LPLWHG ZHI0D\ .H\0DQDJHPHQW3HUVRQQHO 6XGKDNDU5DP 5DGKDNULVKQDQ6XQGDU .HWDQ0HKWD 6DOYDWRUH$EDQR XSWR-XQH 9LQD\5DMDGK\DNVKD XSWR$XJXVW 6WHIDQ9DQ2YHUWYHOGW XSWR$SULO )DULG.D]DQL .DOSDQD-DLVKDQNDU XSWR0DUFK $QLO&KLWDOH 'LVFORVXUHRIWUDQVDFWLRQVZLWKNH\PDQDJHPHQWSHUVRQQHOGXULQJWKH\HDU Year ended Year ended March 31, 2015 0DUFK i. 7RWDOUHPXQHUDWLRQSDLGSD\DEOH 6XGKDNDU5DP 119.40 .HWDQ0HKWD 358.40 6DOYDWRUH$EDQR 71.63 214.82 5DGKDNULVKQDQ6XQGDU 27.28 $QLO&KLWDOH 242.07 9LQD\5DMDGK\DNVKD 212.59 6WHIDQ9DQ2YHUWYHOGW 227.05 )DULG.D]DQL 178.89 .DOSDQD-DLVKDQNDU 112.91 49.46 ii. Consideration received on exercise of options $QLO&KLWDOH 46.80 ± 9LQD\5DMDGK\DNVKD 108.00 ± )DULG.D]DQL 68.40 ± .DOSDQD-DLVKDQNDU 46.15 ± iii. 7UDQVDFWLRQVZLWKMRLQWYHQWXUHWRWKHH[WHQWQRWFRQVROLGDWHG Information technology services 2,096.76 Miscellaneous income 24.11 39. Segment reporting *URXSIROORZV$6µ6HJPHQW5HSRUWLQJ¶LVVXHGE\WKH,QVWLWXW HRI&KDUWHUHG$FFRXQWDQWVRI,QGLDZKLFKUHTXLUHVGLVFORVXUHVRI¿QDQFLDODQG GHVFULSWLYHLQIRUPDWLRQDERXW0DVWHN¶VUHSRUWDEOHVHJPHQWVERWKSULPDU\DQGVHFRQGDU\7KH*URXSKDVLGHQWL¿HGJHRJUDSKLFVHJPHQWVDVSULPDU\ segments and industry verticals as secondary segments. *URXS¶VRSHUDWLRQVSUHGRPLQDQWO\UHODWHWRSURYLGLQJ,7VHUYLFHVGHOLYHUHGWRFXVWRPHUVJOREDOO\7KHRUJDQLVDWLRQDODQGUHSRUWLQJVWUXFWXUHRIWKH Group is based on Strategic Business Units (SBU) concept. The SBU’s are primarily geographical segments. SBU’s are the operating segments for ZKLFKVHSDUDWH¿QDQFLDOLQIRUPDWLRQLVDYDLODEOHDQGIRUZKLFKRSHUDWLQJUHVXOWVDUHHYDOXDWHGUHJXODUO\E\PDQDJHPHQWLQGHFLGLQJKRZWRDOORFDWH UHVRXUFHVDQGLQDVVHVVLQJSHUIRUPDQFH7KHVH6%8¶VSURYLGHHQGWRHQGLQIRUPDWLRQWHFKQRORJ\VROXWLRQVRQWLPHDQGPDWHULDOFRQWUDFWVRU¿[HG ELGFRQWUDFWVHQWHUHGLQWRZLWKFXVWRPHUV 7KH*URXS¶VSULPDU\UHSRUWDEOHVHJPHQWVFRQVLVWRIWKHIROORZLQJ6%8VZKLFKDUHEDVHGRQWKHULVNVDQGUHWXUQVLQGLIIHUHQWJHRJUDSKLHVDQGWKH ORFDWLRQRIWKHFXVWRPHUV 1RUWK$PHULFD2SHUDWLRQV8.2SHUDWLRQVDQG2WKHUVµ2WKHUV¶LQFOXGHRSHUDWLRQVRIWKH*URXSLQRWKHUSDUWVRIWKHZRUOG including India. 46 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) a. Primary geographical segmental reporting on the basis of location of customers : Year ended Year ended March 31, 2015 0DUFK 6HJPHQW5HYHQXH 8. 52,788.62 1RUWK$PHULFD 40,494.73 Others 7,975.04 Total 101,258.39 6HJPHQW5HVXOW 8. 8,615.99 1RUWK$PHULFD (820.22) Others 212.79 Total 8,008.56 &RPPRQXQDOORFDEOHFKDUJHVQHW (6,179.56) Finance costs (147.10) Other income 1,711.34 3UR¿WEHIRUHH[FHSWLRQDOLWHPDQGWD[ 3,393.24 Exceptional items 1,166.12 - 3UR¿WEHIRUHWD[ 2,227.12 5HYHQXHVDQGH[SHQVHVGLUHFWO\DWWULEXWDEOHWRVHJPHQWVDUHUHSRUWHGXQGHUHDFKUHSRUWDEOHVHJPHQW$OORWKHUFRVWVLHFRUSRUDWHFRVWV DQGVXSSRUWIXQFWLRQFRVWVZKLFKDUHQRWGLUHFWO\DWWULEXWDEOHRUDOORFDEOHWRVHJPHQWVKDYHEHHQGLVFORVHGDVFRPPRQXQDOORFDEOHFKDUJHV Similarly revenues and income not allocable to segments are disclosed separately. $PDMRUSRUWLRQRIWKH*URXS¶V¿[HGDVVHWVDUHSULPDULO\ORFDWHGDWLWVRIIVKRUHFHQWUHVLQ,QGLDDQGDUHFRPPRQO\XVHGE\YDULRXV6%8V 7KHVH¿[HGDVVHWVDUHWKHUHIRUHQRWGLUHFWO\LGHQWL¿DEOHWRDQ\SDUWLFXODUUHSRUWDEOHVHJPHQWDQGKDYHEHHQDOORFDWHGWR6%8VRQWKHEDVLVRI PDQPRQWKVXVHGE\WKHVH6%8V&RQVHTXHQWO\FDSLWDOH[SHQGLWXUHLQFXUUHGDQGGHSUHFLDWLRQDQGDPRUWL]DWLRQDUHVLPLODUO\DOORFDWHGWR6%8V Other Primary Segmental information : Segmental Assets Segmental Liabilities As at $VDW As at $VDW March 31, 2015 0DUFK March 31, 2015 0DUFK 8. 24,343.85 8,171.76 1RUWK$PHULFD 32,314.74 11,450.21 Others 11,914.22 2,243.92 Segmental Assets/Liabilities 68,572.81 21,865.89 8QDOORFDWHG&RUSRUDWH$VVHWV/LDELOLWLHVLQFOXGLQJWD[ 14,595.98 1,717.38 DVVHWVSURYLVLRQIRUWD[ Total Assets/ Liabilities 83,168.79 23,583.27 Year ended Year ended March 31, 2015 0DUFK Capital expenditure incurred 8. 496.41 1RUWK$PHULFD 3,661.87 Others 112.83 Unallocated 545.36 Total 4,816.47 Depreciation and amortization 8. 607.03 1RUWK$PHULFD 1,373.25 Others 119.12 Unallocated 1,634.03 Total 3,733.43 Non-cash expenses other than depreciation and amortisation 8. 9.93 1RUWK$PHULFD 390.60 12.14 Others 213.80 Total 614.33 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) b. Information about secondary segments by industry verticals Year ended Year ended March 31, 2015 0DUFK 5HYHQXHIURPH[WHUQDOFXVWRPHUV Insurance 45,716.43 Government 29,902.26 Financial Services 11,296.49 Others 14,343.21 101,258.39 The information pertaining to carrying amount of segment assets by industry verticals is neither available nor evaluated by management as it is not considered relevant for assessing performance or for allocating resources. 40. Acquisition of the business of Agile Technologies, LLC, USA 'XULQJWKH\HDUWKH0DMHVFR86$KDVVLJQHGDGH¿QLWLYHDJUHHPHQWGDWHG'HFHPEHUZLWK$JLOH7HFKQRORJLHV//& µ$JLOH¶ µWKHVHOOHU¶ WRDFTXLUHLWVLQVXUDQFHLQGXVWU\IRFXVHG,7FRQVXOWLQJEXVLQHVVIURP-DQXDU\ 7KHPD[LPXPSXUFKDVHFRQVLGHUDWLRQSD\DEOHIRUWKHDFTXLVLWLRQLQFOXGLQJFRQWLQJHQWFRQVLGHUDWLRQLV86' PLOOLRQ ` LVSD\DEOHDVIROORZV L 86'PLOOLRQKDVEHHQSDLGRQVLJQLQJWKHDJUHHPHQW LL 86'PLOOLRQKDVEHHQSDLGRQ-DQXDU\XSRQFORVXUHRIWKHDJUHHPHQW (iii) minimum earn-out of USD 1.61 million over a 3 year period payable on an annual basis; LY 86' PLOOLRQSD\DEOHWRHPSOR\HHVRI$JLOHRYHUD\HDUSHULRGRQDQDQQXDOEDVLVRQWKRVHHPSOR\HHVEHLQJHPSOR\HGE\086RULWV DI¿OLDWHDVRIWKHGDWHRISD\PHQW DQG Y PD[LPXPFRQWLQJHQWFRQVLGHUDWLRQRI86'PLOOLRQSD\DEOHDV(DUQRXWVRYHUD\HDUSHULRGRQDQDQQXDOEDVLVEDVHGRQWKH$JLOH GLYLVLRQPHHWLQJFHUWDLQ5HYHQXH(%,7'$DQG1HZ%XVLQHVVWDUJHWQRUPV 7KHGLIIHUHQFHEHWZHHQFRQVLGHUDWLRQSDLGFRPPLWWHGWLOOGDWHDPRXQWLQJWR86'PLOOLRQ ` DVGHVFULEHGLQ L WR LLL DERYHDQGWKH YDOXHRIQHWDVVHWVWDNHQRYHURI86'PLOOLRQ ` LVDFFRXQWHGDV*RRGZLOODPRXQWLQJWR86' PLOOLRQ ` DQGLVDPRUWLVHG RYHULWVHVWLPDWHGXVHIXOOLIHRI\HDUV7KHFRQWLQJHQWFRQVLGHUDWLRQSD\DEOHDVGHVFULEHGLQ LY DQG Y DERYHLQIXWXUH\HDUVZRXOGEHDGGHGWR JRRGZLOODVDQGZKHQGXHDQGGXO\DPRUWLVHGRYHUWKHEDODQFHXVHIXOOLIH 41. Agreement with Cover-All Technologies Inc., USA 'XULQJWKH\HDUWKH0DMHVFR86$KDVVLJQHGDQ³$JUHHPHQWDQG3ODQRI0HUJHU´GDWHG'HFHPEHUZLWK&RYHU$OO7HFKQRORJLHV,QF86$ ³&RYHU$OO´ DQLQVXUDQFHVRIWZDUHFRPSDQ\OLVWHGRQWKH1HZ 48 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) (All amounts in ` Lakhs, unless otherwise stated) 6XEVHTXHQWWRWKLVEX\EDFN9HFWRUKDVVLJQHGDQ$JUHHPHQWRI0HUJHUZLWK0DMHVFRGDWHG)HEUXDU\7KHVDLGPHUJHUKDVEHHQHIIHFWHG IURP0DUFKDVSHUDSSURYDOOHWWHUUHFHLYHGIURP6WDWHRI,QGLDQDGDWHG0DUFK7KLVPHUJHUKDVQRLPSDFWRQWKH*URXS¶V¿QDQFLDO position or results of its operations. $FTXLVLWLRQRI0LQH¿HOGV&RPSXWHUV/LPLWHG,QGLD 'XULQJ WKH \HDU WKH &RPSDQ\ KDV SXUFKDVHG HTXLW\ VKDUHV LQFOXGLQJ HTXLW\ VKDUHV SXUFKDVHG MRLQWO\ ZLWK RWKHU VKDUHKROGHUV RI 0LQH¿HOGV &RPSXWHUV /LPLWHG ³0LQH¿HOGV´ IRU D WRWDO FRQVLGHUDWLRQ RI ` )XUWKHU WKH &RPSDQ\ KDV VXEVFULEHG WR HTXLW\ VKDUHVRI 0LQH¿HOGV`HDFKIRUDWRWDOFRQVLGHUDWLRQRI`7KXVWKHWRWDOVKDUHKROGLQJRIWKH&RPSDQ\LQ0LQH¿HOGVDW0DUFKDPRXQWVWR HTXLW\VKDUHVRI`HDFKIRUDWRWDOFRQVLGHUDWLRQRI` LQFOXGLQJHTXLW\VKDUHVSXUFKDVHGMRLQWO\ZLWKRWKHUVKDUHKROGHUV 48. Purchase of Investment in Majesco, USA (formerly MajescoMastek, USA) 'XULQJWKH\HDUWKH&RPSDQ\SXUFKDVHGHTXLW\VKDUHVRI0DMHVFR86$IURP0DVWHN 8. /LPLWHGIRUDWRWDOFRQVLGHUDWLRQRI` 86' PLOOLRQ 6XEVHTXHQWWRWKHSXUFKDVH0DVWHN/LPLWHGKROGVRI0DMHVFRDQGWKHEDODQFHLVKHOGE\0DVWHN 8. /LPLWHG 49. 3XUVXDQWWRWKH6FKHPHRI$UUDQJHPHQW WKH³6FKHPH´ XQGHU6HFW LRQV WR UHDGZLWK6HFWLRQVWRDQGRWKHUDSSOLFDEOHSURYLVLRQV RIWKH&RPSDQLHV$FW DQGRWKHUDSSOLFDEOHSURYLVLRQVRIWKH&RPSDQLHV$FWWKH%RDUGRI'LUHFWRUVRI0DVWHN/LPLWHG WKH³&RPSDQ\´ RU³0DVWHN´ LQLWVPHHWLQJKHOGRQ6HSWHPEHUKDGDSSURYHGWKHGHPHUJHURIWKH,QVXUDQFH3URGXFWVDQG6HUYLFHVEXVLQHVVRIWKH &RPSDQ\LQWRDQHZZKROO\RZQHGVXEVLGLDU\0LQH¿HOGV&RPSXWHUV/LPLWHG ³0LQH¿HOGV´ WREHUHQDPHGDV0DMHVFR/LPLWHG ³0DMHVFR,QGLD´ WREHIROORZHGE\WUDQVIHUE\0DMHVFR,QGLDRIWKHRIIVKRUHLQVXUDQFHRSHUDWLRQVEXVLQHVVLQ,QGLDWR0DMHVFR6RIWZDUHDQG6ROXWLRQV,QGLD3ULYDWH /LPLWHG ³066,3/´ DZKROO\RZQHGVXEVLGLDU\RI0DMHVFR6RIWZDUHDQG6ROXWLRQV,QF86$ ³06686´ 7KH$SSRLQWHGGDWHRIWKH6FKHPHZLOOEH $SULORUDQ\RWKHUGDWHDVGHFLGHGE\WKH%RDUGRI'LUHFWRUVDQGWKHDSSRLQWHGGDWHIRUWKHRIIVKRUHLQVXUDQFHRSHUDWLRQVEXVLQHVVWUDQVIHU ZLOOEH1RYHPEHURUDQ\RWKHUGDWHDVGHFLGHGE\WKH%RDUGRI'LUHFWRUV±ERWKWKHVHGDWHVZLOOEHVXEMHFWWRWKHDSSURYDORIWKH+RQ¶EOH +LJK&RXUWRI%RPED\DQG+RQ¶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¶V%RDUGKDVDSSURYHGWKHGHPHUJHUVFKHPHRIWKH,QVXUDQFH3URGXFWVDQG6HUYLFHVEXVLQHVV WKH³7UDQVIHUUHG8QGHUWDNLQJ´ DQG DQDQQRXQFHPHQWRIWKHVDPHKDVEHHQPDGHWKH0DVWHN*URXSKDVWUHDWHGWKH7UDQVIHUUHG8QGHUWDNLQJDVDGLVFRQWLQXLQJRSHUDWLRQZLWKHIIHFW IURPWKHSURSRVHGDSSRLQWHGGDWHRIWKHVFKHPHLH$SULO7KHGHPHUJHUZLOOUHVXOWLQWUDQVIHURIWKHDVVHWVDQGOLDELOLWLHVDQGWKH,QGLDQ DQGJOREDORSHUDWLRQVUHOHYDQWWRWKH7UDQVIHUUHG8QGHUWDNLQJWR0LQH¿HOGV&RPSXWHUV/LPLWHG WREHUHQDPHGDV0DMHVFR/LPLWHG WKHXOWLPDWH holding company of the Transferred Undertaking. The Transferred Undertaking predominately relates to the Insurance business vertical reported XQGHUWKHVHFRQGDU\VHJPHQWUHSRUWLQJLQWKLVFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV7KHH[LVWLQJVKDUHKROGHUVRI0DVWHNZLOOEHWKHVKDUHKROGHUVRI ERWKWKHEXVLQHVVHVSRVWWKHGHPHUJHUWKURXJKWKHLUVKDUHKROGLQJVLQWZRVHSDUDWHOLVWHGFRPSDQLHVYL]0DVWHN/LPLWHGDQG0DMHVFR/LPLWHG subject to court and regulatory approvals. 7KHGHWDLOVRIFDUU\LQJDPRXQWVRIWKHFRQVROLGDWHGDVVHWVDQGOLDELOLWLHVDWWULEXWDEOHWRWKH7UDQVIHUUHG8QGHUWDNLQJDUHDVEHORZ As at $VDW March 31, 2015 0DUFK Total assets 47,612.81 Total liabilities 12,815.11 Net assets 34,797.70 7KHFRQVROLGDWHGUHYHQXHH[SHQVHVSUHWD[SUR¿WDQGWKHWD[H[SHQVHLQUHVSHFWRIRUGLQDU\DFWLYLWLHVDWWULEXWDEOHWRWKH7UDQVIHUUHG 8QGHUWDNLQJDUHDVEHORZ Year ended Year ended March 31, 2015 0DUFK Total revenue 50,865.70 Total expenses 52,244.52 /RVV 3UR¿WEHIRUHWD[ (1,378.82) Tax expense 495.79 /RVV 3UR¿WDIWHUWD[IURPGLVFRQWLQXLQJRSHUDWLRQV (1,874.61) 7KHQHWFRQVROLGDWHGFDVKÀRZVDWWULEXWDEOHWRWKH7UDQVIHUUHG8QGHUWDNLQJGXULQJWKH\HDUDUHDVEHORZ Year ended Year ended March 31, 2015 0DUFK Operating activities 1,971.38 Investing activities 1,660.00 Financing activities 2,670.16 Effect of changes in exchange rates for cash and cash equivalents (471.96) 1HWFDVKLQÀRZV RXWÀRZV 5,829.58 49 ANNUAL REPORT 2014-2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR YEAR ENDED MARCH 31, 2015 (Contd.) 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Sandilya Non-Executive Chairman and Independent Director 0XPEDL$SULO Farid Kazani Group CFO and Finance Director Bhagwant Bhargawe Company Secretary 0XPEDL$SULO KEY STATISTICS (` in Lakhs) Particulars 2010-11 2011-12 2012-13 2013-14 2014-15 (Nine months) 7RWDO5HYHQXH 101,258 2SHUDWLQJ3UR¿W (%,'7 163 7,274 1HW3UR¿W 1,773 EPS (`VKDUH 7.94 DPS (`VKDUH - - 2.50 $QQXDOLVHGJURZWKLQ 5HYHQXH 21% 1% 8% 2SHUDWLQJ3UR¿W -98.3% - -28.2% 1HW3UR¿W0DUJLQ -9% 6% 2% 'HSUHFLDWLRQDQG$PRUWL]DWLRQ([SHQVHV5DWLR 4% 3% 4% 4% Interest Cover (Times) 111.48 16.14 5HWXUQRQ1HWZRUWK -11% 6% 9% 3% 'HEW(TXLW\ 0.05 (Debt includes Preference Shares) &XUUHQW5DWLR 1.8 2.4 2.4 2.4 2.5 Debtors Turnover (No. of days) 88 81 46 48 'HSUHFLDWLRQDQG$PRUWL]DWLRQ([SHQVHV$YHUDJH*URVV%ORFN 6% 6% 4% 7% Dividend Payout - - 23% 21% 31% Dividend Yield - - 2.2% 0.6% 2SHUDWLQJ&DVKÀRZV 944 5,898 &DSLWDO([SHQGLWXUHLQ)L[HG$VVHWV 4,816 Current Investments and Cash and bank balances 21,425 Current Investments and Cash and bank balances as % of Total 31% 18% 21% 23% 26% $VVHWV %RRN9DOXHRI6KDUHV `VKDUH 264.28 0DUNHW9DOXHWR%RRN9DOXH 1.6 Price Earning Multiple - - 9 54 Group Employees as at the year end 3214 3123 3352 Offshore (Numbers) 2138 2183 2535 Onsite (Numbers) 817 Off-shore Facility (Sq.feet) 343,554 Dividend - Equity (Including DDT) - - 534 ANNUAL REPORT 2014-2015 MANAGEMENT DISCUSSION AND ANALYSIS IRUPV SDUW RI WKH 'LUHFWRUV¶ 5HSRUW RI WKH &RPSDQ\¶V $QQXDO 5HSRUW )< ¿JXUHV PHQWLRQHG DUH RQ D FRQVROLGDWHG EDVLV XQOHVV RWKHUZLVH PHQWLRQHG Overview of the Industry and Business Environment Mastek - Business Update 5HYLHZRI¿QDQFLDODQGRSHUDWLQJSHUIRUPDQFH %XVLQHVVRXWORRN ,QWHUQDOFRQWUROV\VWHPVDQGULVNPDQDJHPHQW Cautionary statement: 7KLV0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLVRIWKH&RPSDQ\¶VSHUIRUPDQFHDQGRXWORRNPD\FRQWDLQIRUZDUGORRNLQJVWDWHPHQWVWKDWVHWRXWDQWLFLSDWHG SHUIRUPDQFH EDVHG RQ WKH PDQDJHPHQW¶V SODQV DQG DVVXPSWLRQV ,WV DLP LV WR IDFLOLWDWH D EHWWHU XQGHUVWDQGLQJ RI WKH &RPSDQ\¶V SURVSHFWV DQG PDNHLQIRUPHGGHFLVLRQV:HFDQQRWJXDUDQWHHWKDWDQ\IRUZDUGORRNLQJVWDWHPHQWZLOOEHUHDOL]HGWKRXJKZHKDYHEHHQSUXGHQWLQRXUSODQVDQG DVVXPSWLRQV7KHIRUZDUGORRNLQJVWDWHPHQWVDUHVXEMHFWWRULVNVXQFHUWDLQWLHVDQGDVVXPSWLRQVWKDWFRXOGFDXVHDFWXDOUHVXOWVWRGLIIHUPDWHULDOO\IURP WKRVHUHÀHFWHGLQWKHIRUZDUGORRNLQJVWDWHPHQWV5HDGHUVDUHFDXWLRQHGQRWWRSODFHXQGXHUHOLDQFHRQWKHVHIRUZDUGORRNLQJVWDWHPHQWVZKLFKUHÀHFW PDQDJHPHQWDQDO\VLVRQO\DVRIWKHGDWHKHUHRI:HGRQRWXQGHUWDNHDQ\REOLJDWLRQWRXSGDWHDQ\IRUZDUGORRNLQJVWDWHPHQWVZKHWKHUDVDUHVXOWRI QHZLQIRUPDWLRQIXWXUHHYHQWVRURWKHUZLVH)RUDQ\IXUWKHUFODUL¿FDWLRQSOHDVHFRQWDFW0DVWHN,QYHVWRU5HODWLRQV LQYHVWRUBUHODWLRQV#PDVWHNFRP 52 MANAGEMENT DISCUSSION AND ANALYSIS Overview of Industry and Business Environment WR WKH EXVLQHVV DQG WKHUHE\ LPSURYH XQGHUZULWLQJ 2YHU WKH ODVWIHZ \HDUVZHKDYHVHHQSRWHQWLDODFTXLUHUVVHHNWROHYHUDJHWKHWHFKQRORJ\ *OREDO(FRQRP\ ,7 RIWDUJHWFRPSDQLHV0RUHRYHUWHFKQRORJ\FDQKDYHDVLJQL¿FDQWLPSDFW 7KH*OREDOHFRQRP\LVH[SHFWHGWRJURZDWDVOLJKWO\IDVWHUEXWPRGHUDWHO\ RQ YDOXDWLRQV DV FRPSDQLHV VHHN VWUDWHJLF DFTXLVLWLRQV WR XSJUDGH WKHLU ZLWK ZRUOG *'3 SURMHFWHG WR JURZ E\ LQ DQG LQ V\VWHPV ODUJHO\ GULYHQ E\ H[SDQVLRQ RI DFWLYLW\ LQ KLJKLQFRPH HFRQRPLHV 86 LV :HDUHVHHLQJXQSUHFHGHQWHGLQYHVWPHQWE\LQVXUDQFHFDUULHUVLQSROLF\ H[SHFWHGWRJURZE\IURPLQ7KH(XURDUHDUHPDLQHG DGPLQLVWUDWLRQ V\VWHPV 3$6 WUDQVIRUPDWLRQV 7KH FRQYHUJHQFH RI IUDJLOHZKLOHJURZWKLVH[SHFWHGWRLPSURYHWRIURPLQ DJHLQJOHJDF\SODWIRUPVFRPSOH[PDUNHWGHPDQGVDQGDPRUHPDWXUH KRZHYHU WKH GRZQVLGH ULVN RI VORZGRZQ LQ WKH (XUR HFRQRP\ ZRXOG YHQGRUODQGVFDSHKDVXVKHUHGLQDXQLTXHSHULRGLQZKLFKLWLVSRVVLEOH UHPDLQWKHPDMRUFRQFHUQ IRULQVXUDQFHFDUULHUVWRFKDQJHWKHLUSROLF\DGPLQLVWUDWLRQV\VWHPVZLWK &KLQD -DSDQ DQG WKH 8. 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Shareholders and investors are advised to go through the section on Management Discussion & Analysis and Investor information provided in the Report RQ&RUSRUDWH*RYHUQDQFHDVWKHVHDQGRWKHUSDUWVRIWKLV$QQXDO5HSRUWSURYLGHVXEVWDQWLDOLQIRUPDWLRQDERXWWKH&RPSDQ\WKDW\RXPD\¿QGUHOHYDQW and useful. 1. WHEN WAS MASTEK LTD INCORPORATED AND WHEN DID IT HAVE ITS INITIAL PUBLIC OFFER? 0DVWHN/WGZDVLQFRUSRUDWHGLQWKHQDPHDQGVW\OHRI0DQDJHPHQWDQG6RIWZDUH7HFKQRORJ\3ULYDWH/LPLWHGRQ0D\ 7KH¿UVWSXEOLF offering was made in December 1992 at a price of Rs.70/- (premium Rs.60/-) followed by another public issue in 1996 at a price of Rs.190/- (premium of Rs.180/-). The Company issued bonus shares in the ratio of 1:1 in January 2000. The Company’s shares were sub divided from Rs.10/- to Rs.5/- in November 2000. The Company issued bonus shares in the ratio of 1:1 in April 2006. 2. WHICH ARE THE SUBSIDIARIES OF MASTEK LIMITED AND WHERE ARE THEY LOCATED? Mastek Limited has the following subsidiaries located in respective countries: Majesco in USA. Majesco Software and Solutions Inc. in USA. Majesco Canada Ltd in Canada. Maste k (UK) Limited in UK. 0DVWHN$VLD3DFL¿F3WH/WGLQ6LQJDSRUH Majesco Sdn. Bhd. in Malaysia. Majesco MSC (Thailand) Co. Ltd in Thailand. 0LQH¿HOGV&RPSXWHUV/WGLQ,QGLD Majesco Software and Solutions India Pvt Ltd in India. In addition to the above subsidiaries, Mastek has a branch in UK. 3. WHAT IS THE CORE BUSINESS OF MASTEK LIMITED? Mastek is an IT solutions player with global operations providing new technology and intellectual property led enterprise solutions to insurance, JRYHUQPHQWDQG¿QDQFLDOVHUYLFHVRUJDQL]DWLRQVZRUOGZLGH0DVWHN¶VVWUHQJWKVDUHLQDUFKLWHFWLQJVROXWLRQVIRUODUJHFRPSOH[DQGPLVVLRQFULWLFDO business problems, and delivering these solutions with high levels of predictability. 4. WHAT IS THE EMPLOYEE STRENGTH OF MASTEK GROUP? As on March 31, 2015, the Mastek Group had 3,252 employees. 5. HOW MANY SOFTWARE DEVELOPMENT CENTRES DOES MASTEK HAVE? 0DVWHNKDVVHYHQGHYHORSPHQWFHQWHUVRXWRIZKLFK¿YHDUHORFDWHGLQDURXQG0XPEDL,QGLDDQGRQHHDFKLQ3XQHDQG&KHQQDL,QGLD 6. HOW MANY MARKETING OFFICES DOES MASTEK HAVE? 0DVWHNKDV0DUNHWLQJRI¿FHVORFDWHGDFURVVPXOWLSOHJHRJUDSKLHV LQ8.HDFKLQ6LQJDSRUH0DOD\VLD7KDLODQGLQ86$LQ&DQDGDDQG GRPHVWLFPDUNHWLQJRI¿FHVLQ0XPEDLDQG1HZ'HOKL 7. WHAT IS THE FISCAL YEAR FOR MASTEK? The Fiscal Year of the Company is April 01-March 31 every year. 8. WHAT IS THE DIVIDEND TRACK RECORD OF MASTEK LIMITED? Fiscal Year Share Outstanding Dividend per share Total Dividend in ` in Mn ` in Lakhs 1993* 3.00 2.50 46.88 1994* 3.00 3.50 104.98 1995* 3.06 3.50 105.30 1996* 3.46 3.50 109.93 1997* 3.46 3.50 120.98 1998* 3.46 3.50 120.98 1999* 3.46 4.00 138.26 2000* 6.91 4.00 276.53 2001 13.88 2.00 277.67 2002 13.97 3.00 419.07 2003 14.11 3.00 423.42 2004 13.88 3.00 416.40 2005 13.87 7.50 1036.11 2006 28.14 6.50 1403.12 2007 28.46 7.50 2132.34 2008 27.62 10.00 2557.70 2009 26.90 10.00 2679.34 2010 26.94 3.25 876.30 2011 26.95 - - 58 FREQUENTLY ASKED QUESTIONS (FAQS) 2015 (contd.) Fiscal Year Share Outstanding Dividend per share Total Dividend in ` in Mn ` in Lakhs 2012 27.02 - - 2013 24.64 3.00 739.15 2014 22.16 4.50 1040.59 2015 22.55 2.50 563.94 *indicates dividend on face value of ` 10 per share. 9. HOW DOES ONE GET THE ANNUAL REPORT AND QUARTERLY RESULTS OF MASTEK? The Annual Report as well as quarterly results along with analysis are available on our website www.mastek.com in the “Investors” section. 10. WHO IS THE SHARE TRANSFER AGENT? The Registrar and Share Transfer Agent of Mastek is: SHAREPRO SERVICES (INDIA) PRIVATE LIMITED 6DPKLWD:DUHKRXVLQJ&RPSOH[ 13AB, Gala No. 52, 1HDU6DNLQDND7HOHSKRQH([FKDQJH Off Andheri Kurla Road, Andheri (East), Mumbai – 400 072 3KRQH )D[ e-mail: [email protected] /Indira @shareproservices.com Contact Person: Ms. Indira Karkera / Ms. Sarita 11. HOW DOES ONE TRANSFER HIS/HER SHARES OR CHANGE THE ADDRESS WITH THE TRANSFER AGENT? For the transfer of shares in physical form and noting your change of address, you need to write to our share transfer agent at the above mentioned address. Transfer of shares in the electronic mode is effected through your depository participant. 12. WHOM DOES ONE CONTACT IN CASE OF NON-RECEIPT OF DIVIDEND, LOSS OF SHARE CERTIFICATES ETC? You may contact Sharepro Services, which will advise you accordingly. You may also communicate with the Company in the event of any unresolved issues via Email at [email protected]. 13. IS ELECTRONIC CLEARING SERVICE (ECS) FACILITY AVAILABLE FOR PAYMENT OF DIVIDEND? 0DVWHNH[WHQGV(&6IDFLOLW\WRDOOLWVVKDUHKROGHUV7KHGLYLGHQGDPRXQWRIVKDUHKROGHUVDYDLOLQJ(&6IDFLOLW\LVGLUHFWO\FUHGLWHGWRWKHLUEDQN accounts. Shareholders holding shares in physical form have to submit an ECS Mandate form to Sharepro Services whose address is given above. 14. WHICH ARE THE STOCK EXCHANGES WHERE MASTEK SHARES ARE LISTED? 0DVWHN¶VVKDUHVDUHOLVWHGLQ,QGLDRQ1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHGDQG%6(/LPLWHG 15. HOW CAN THE SHARES BE DE-MATERIALIZED AND WHO ARE THE DEPOSITORY PARTICIPANTS (DP)? 0DVWHN¶VVKDUHVDUHWUDGHGRQO\LQHOHFWURQLFIRUPZLWKHIIHFWIURP-XQH6KDUHVFDQEHGHPDWHULDOL]HGE\RSHQLQJWKHGHPDWDFFRXQWZLWK the depository participant (DP). DPs are some of the banks, brokers and institutions who have been registered with National Securities Depository Limited (NSDL) or Central Depository Services (I) Limited (CDSL). A comprehensive list of DPs is available at www.nsdl.com and www.cdslindia.com. 0DVWHN¶VVKDUHVDUHWUDGHGRQO\LQHOHFWURQLFIRUPZLWKHIIHFWIURP-XQH6KDUHVFDQEHGHPDWHULDOL]HGE\RSHQLQJWKHGHPDWDFFRXQWZLWK the depository participant (DP). DPs are some of the banks, brokers and institutions who have been registered with National Securities Depository Limited (NSDL) or Central Depository Services (I) Limited (CDSL). A comprehensive list of DPs is available at www.nsdl.com and www.cdslindia.com 16. HOW DOES ONE INFORM THE COMPANY TO SEND THE ANNUAL REPORT, OR ANY OTHER CORRESPONDENCE TO BE SENT IN ELECTRONIC FORM TO SAVE THE TIME AND HAVE SPEEDY COMMUNICATION? 7KHIROORZLQJDSSOLFDWLRQIRUPFDQEH¿OOHGDQGVHQWWRWKH5HJLVWUDUDQG6KDUH7UDQVIHU$JHQWRIWKH&RPSDQ\ Form for registering e-mail id for receiving documents/notices by electronic mode (with reference to the circular no. 17/2011 dated 21st Day of April, 2011 issued by the Ministry of Corporate Affairs, Govt. of India) To, SHAREPRO SERVICES (INDIA) PRIVATE LIMITED Unit:- MASTEK LIMITED 6DPKLWD:DUHKRXVLQJ&RPSOH[ 13AB, Gala No. 52, 1HDU6DNLQDND7HOHSKRQH([FKDQJH Off Andheri-Kurla Road, Andheri (East), Mumbai – 400 072 59 ANNUAL REPORT 2014-2015 FREQUENTLY ASKED QUESTIONS (FAQS) 2015 (contd.) I agree to receive all documents/ notices from the Company in electronic mode. Please register my e-mail id in your records for sending communication through e-mail. The required details are as under:- Folio No. (for Physical Shares) DP ID Client ID PAN Name of 1st Registered holder Name of Joint Holder (s) Registered Address Email ID 17. FAQs on De-merger 1. What does the Scheme of Arrangement envisage? The Scheme envisages: 'HPHUJHURI,QVXUDQFH3URGXFWVDQG6HUYLFHV%XVLQHVVRI0DVWHN/LPLWHGWR0LQH¿HOGV&RPSXWHUV/LPLWHG 0&/ WREHUHQDPHGDV0DMHVFR Limited pursuant to the Scheme) with effect from 1st April, 2014. 7UDQVIHURI2IIVKRUH,QVXUDQFH2SHUDWLRQV%XVLQHVVRI0&/E\ZD\RIVOXPSVDOHWR066,3/ZLWKHIIHFWIURPVW1RYHPEHU 2. What is the rationale/reasons for such an arrangement/demerger? ,QVXUDQFH3URGXFWV 6HUYLFHVEXVLQHVVLVDQ,3GULYHQEXVLQHVVPRGHOODUJHO\86FHQWULF7KLVEXVLQHVVQHHGVLQYHVWPHQWVWRFDSLWDOL]HRQWKHODUJH opportunity in US market. At the same time, Vertical Solutions business which is focused in the UK market, need to address newer opportunities DQGH[SDQGWKHFOLHQWIRRWSULQW3URSRVHGUHVWUXFWXULQJZLOOHQDEOHERWKWKHEXVLQHVVHVWRIXQFWLRQLQGHSHQGHQWO\DQGIRFXVRQWKHLUJURZWKSODQV 3. Why has the company felt the need to restructure? %XVLQHVVHVDUHGLIIHUHQWLQWHUPVRIEXVLQHVVPRGHOJURZWKRSSRUWXQLWLHVLQYHVWPHQWUHTXLUHGDQGVWDIISUR¿OH o While the Insurance Products & Services business offers us tremendous growth potential, it has high investment requirements in terms of R&D, Brand Building and sales. R 7KH9HUWLFDO6ROXWLRQVEXVLQHVVRIIHUVVWHDG\JURZWKZKLFKLVPRUHSUR¿WDEOHZLWKOHVVLQYHVWPHQW &RPELQLQJWKHVHEXVLQHVVHVXQGHURQHXPEUHOODKDVPDGHLWGLI¿FXOWIRUHDFKRIWKHVHEXVLQHVVHVWRSHUIRUPWRIXOOSRWHQWLDO 7KHGLIIHULQJULVNUHZDUGSUR¿OHVRIWKHVHWZREXVLQHVVHVKDVOHGWRVXERSWLPDORYHUDOOSHUIRUPDQFHRIWKHFRPSDQ\ ,QRUGHUWRPLWLJDWHWKHVHFKDOOHQJHVPDQDJHPHQWKDVGHFLGHGWRUHVWUXFWXUHWKHEXVLQHVV 4. :KDWEHQH¿WVDUHH[SHFWHGRXWRIUHVWUXFWXULQJ" ,QVXUDQFH3URGXFWV 6HUYLFHVEXVLQHVVZLWKKLJKHU5 'LQYHVWPHQWDQGVSHFLDOL]HGVNLOOVHWVZLOOEHDEOHWRJDLQPDUNHWOHDGHUVKLS7KLVZLOO OHDGWRKLJKHUOLFHQVHUHYHQXHDQGKLJKHUSUR¿WDELOLW\ 6ROXWLRQHQMR\VJRRGUHSXWDWLRQIRUGHOLYHULQJFRPSOH[JUHHQ¿HOGSURJUDPVZLWKLQ8.DQG,QGLDQJRYHUQPHQW7KLVUHVWUXFWXULQJSUHVHQWV an opportunity to focus on building new capabilities and addressing new markets within the vertical solutions business 5HVWUXFWXULQJZLOOSURYLGHDQRSSRUWXQLW\WRWKHVKDUHKROGHUVWRSDUWLFLSDWHLQWKHEXVLQHVVRIWKHLUFKRLFHEDVHGRQWKHLUULVNUHZDUGSUR¿OH 'HPHUJHUZRXOGIDFLOLWDWHLQGHSHQGHQWYDOXHGLVFRYHU\RIERWKWKHEXVLQHVVHVOHDGLQJWRPD[LPL]DWLRQRIYDOXHIRUVKDUHKROGHUV 5. What is the share entitlement ratio? (YHU\VKDUHKROGHURI0DVWHNZLOOJHWVKDUHLQ0LQH¿HOGV&RPSXWHUV/LPLWHGIRUHYHU\VKDUHKHOGLQ0DVWHNDQGWKHVKDUHKROGHUZLOOFRQWLQXHWR hold the original Mastek share. 6. What is the appointed date for the transaction? The appointed date for the demerger is April 1, 2014 7. What is the effective date for the transaction? 3RVWDSSURYDORIWKHVFKHPHRIDUUDQJHPHQWE\WKH+RQ¶EOH%RPED\DQGWKH*XMDUDW+LJK&RXUWWKHVFKHPHRIDUUDQJHPHQWLVUHTXLUHGWREH¿OHG with the RoC which is when the scheme will become effective. 8. Why is the appointed date for the demerger retrospective? The decision by the Board of Directors of Mastek to carry out the De-merger was taken in September 2014. Hence, the Appointed date for the demerger is kept as April 1, 2014. 9. When will the new company get listed? 0LQH¿HOGV&RPSXWHUV/LPLWHGZLOOEHOLVWHGRQWKHVWRFNH[FKDQJHVZKHQWKH+RQ¶EOH%RPED\DQG*XMDUDW+LJK&RXUWDSSURYHWKHVFKHPHRI DUUDQJHPHQWDQGWKHVDPHLVPDGHHIIHFWLYH7KHOLVWLQJDSSURYDOSURFHVVZLOOWDNHDSSUR[GD\VSRVWWKHVFKHPHEHFRPLQJHIIHFWLYH 10. What will be the composition of the new board? The Board of the new company will be decided in due course. 11. What will be the capital structure of the new company? The share capital of the new company (i.e.MCL) will be same as Mastek Ltd. 12. Are you planning to delist either of these companies post demerger? No 60 DIRECTORS’ REPORT DIRECTORS’ REPORT Dear Shareholders, 2015 as compared to ` 92,302.29 lakhs for the year ended March 31, 2014, i.e. a growth of 9.7%.. The Group registered The Board of Directors has pleasure to forward the following Report for the DQHWSUR¿WRIODNKVLQWKH\HDUHQGHG0DUFK year ended March 31, 2015. as compared to ` 5,179.56 lakhs in the year ended March 31, 1. FINANCIAL RESULTS – CONSOLIDATED RESULTS OF 2014, i.e. a de-growth of 65.8%. MASTEK LIMITED AND ITS SUBSIDIARIES Breakup of the Operating Revenue by regions ` in Lakhs Region Year ended Year ended Year Ended Year Ended March 31, 2015 March 31, 2014 PARTICULARS March 31, March 31, ` in Lakhs % of ` in Lakhs % of 2015 2014 Revenue Revenue Revenue UK 52,788.62 52.1 43,225.73 47.5 Income from IT Services 100,196.28 90,956.76 1RUWK 40,494.73 40.0 41,949.20 45.1 America Other operating revenue 1,062.11 1,345.53 Others 7,975.04 7.9 7,127.36 7.4 Total Operating Revenue 101,258.39 92,302.29 (India/ Other Income 1,711.34 1,125.91 $VLD3DFL¿F Total Revenue 102,969.73 93,428.20 Total 1,01,258.39 100.0 92,302.29 100.0 Expenses 95,695.96 83,298.20 Operating Revenue Depreciation and amortization expenses 3,733.43 3,287.28 Finance costs 147.10 67.98 7KH 8. RSHUDWLRQV FRQWULEXWHG ` 52,788.62 lakhs in total operating revenue as compared to ` 43,225.73 lakhs during Exceptional items 1,166.12 - the year ended March 31, 2014, representing an increase 3UR¿WEHIRUHWD[ 2,227.12 6,774.74 of 22.1%. This was due to 28.0% growth in revenues from Tax expense 454.07 1,595.18 the UK government vertical which constituted 53.8% of UK 3UR¿WDIWHUWD[ 1,773.05 5,179.56 operations. FINANCIAL RESULTS – MASTEK LIMITED 7KH1RUWK$PHULFDRSHUDWLRQVRQWKHRWKHUKDQGUHJLVWHUHG DGHFUHDVHLQLWVWRWDORSHUDWLQJUHYHQXHE\` 1,454.47 lakhs Year Ended Year Ended (3.5%), primarily on account of 8.21 % decrease in revenues PARTICULARS March 31, March 31, IURPWKHWUDGLWLRQDO,7VHUYLFHVEXVLQHVVDQGDGURSRI 2015 2014 LQWKHLQVXUDQFHYHUWLFDOOLQNHGWRDSURMHFWEHLQJSXWRQKROG DVJXLGHGDWWKHEHJLQQLQJRI\HDU Revenue Income from IT services 66,048.24 54,459.34 The share of total operating revenue of other Regions, i.e. India DQG$VLD3DFL¿FDVDSHUFHQWDJHRIWRWDORSHUDWLQJUHYHQXHRI Other operating revenue 463.73 598.00 WKH*URXSLQFUHDVHGE\ Other Income 2,305.40 2,129.94 Breakup of the Operating Revenue by Verticals Total Revenue 68,817.37 57,187.28 Expenses 58,769.70 49,766.64 2014-15 % of 2013-14 % of Depreciation and amortization 2,702.38 2,566.34 Vertical (in ` Lakhs) Revenue (in ` Revenue expenses Lakhs) Finance costs 27.43 26.87 Insurance 45,716.4 45.6 44,865.0 49.3 Exceptional Items – (gain) / loss,net (494.95) 1,555.01 Government 29,902.3 29.8 23,868.1 26.3 3UR¿WEHIRUHWD[ 7,812.81 3,272.42 Financial 11,296.5 11.3 9,732.3 10.7 Tax expense 374.06 575.31 Services 3UR¿WDIWHU7D[ 7,438.75 2,697.11 IT & Other 13,281.1 13.3 12,491.4 13.7 Services $GG 3UR¿WEURXJKWIRUZDUGIURP 29,311.97 28,157.93 Total – IT 1,00,196.3 100.0 90,956.8 100.0 Previous year services 3UR¿WDYDLODEOHIRUDSSURSULDWLRQ 36,750.72 30,855.04 revenue Dividend (563.94) (1,040.59) Other operating 1,062.1 1,345.5 'LYLGHQG'LVWULEXWLRQ7D[ (30.37) (17.52) Revenue Transferred to General Reserve 180.00 520.00 Total 1,01,258.4 92,302.3 Balance carried to Balance Sheet 36,037.15 29,311.97 The insurance vertical as a proportion to total IT services 1HWRIFUHGLWUHFHLYHGLQUHVSHFWRIWD[SDLGXQGHU6HFWLRQ%%' UHYHQXH GURSSHG E\ LQ )< DV FRPSDUHG WR of Income Tax Act, 1961 the previous year primarily due to the drop in the insurance UHYHQXHLQ1RUWK$PHULFDOLQNHGWRDSURMHFWEHLQJSXWRQKROG 2. RESULTS OF OPERATIONS at the start of the year. However, in rupee terms the revenues JUHZPDUJLQDOO\E\ 7KHJRYHUQPHQWYHUWLFDOZLWQHVVHG A) Mastek Consolidated Operations DUREXVWJURZWKLQWKH8.UHJLRQZKLFKUHVXOWHGLQWKHRYHUDOO Financials VKDUHRIUHYHQXHJURZLQJE\LQ)<DVFRPSDUHG to the previous year. In rupee terms the government revenue 2QDFRQVROLGDWHGEDVLVWKH*URXSUHJLVWHUHGWRWDORSHUDWLQJ JUHZDWDKHDOWK\UDWHRIKHOSHGE\DEHWWHUH[FKDQJH revenue of ` 101,258.39 lakhs for the year ended March 31, UDWHLQ)<7KH,7DQGRWKHUVHUYLFHVYHUWLFDOJUHZE\ 62 DIRECTORS’ REPORT (contd.) 6.3% in rupee terms with good growth in the retail clients in 3. HOLDING AND SUBSIDIARIES the UK region. 63 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) A major growth impediment for the entire insurance industry is closure date. The total dividend for the year amounted to ` 2.50 per legacy systems. Many carriers are still running on systems that share (Previous Year- ` 4.50 per share). are 15 to 25 years old that cannot keep up with current evolving 8. PARTICULARS OF LOANS, GUARANTEE OR INVESTMENT EXVLQHVV GHPDQGV ,Q WKH SDVW ¿YH \HDUV WKH LQVXUDQFH LQGXVWU\ UNDER SECTION 186. has experienced a new wave of modernizing or replacing policy DGPLQLVWUDWLRQ ELOOLQJ DQG FODLPV V\VWHPV DQG LQVXUHUV YLHZ WKLV Details of Loans, guarantees, Investments covered under provisions core replacement as an opportunity to position their carrier for the of Section 186 of the Companies act 2013 are given in the notes 11 future. Celent reports that replacing core systems is one of the top DQGWRWKH¿QDQFLDOVWDWHPHQWV SULRULWLHVIRULQVXUHUVDQGPRUHWKDQSHUFHQWRI1RUWK$PHULFDQ 9. DISCLOSURES UNDER THE COMPANIES ACT, 2013 insurers plan to do this in the next 12 to 18 months. i) Extract of Annual Return: The insurance industry is also looking to leverage data and analytics WRJURZERWWRPOLQHSUR¿WV,QVXUHUVDUHLQYHVWLQJLQLQWHUQDOGDWD Pursuant to section 92(3) of the Companies Act, 2013 (‘the DQG V\VWHPV FDSDELOLWLHV WR \LHOG LQIRUPDWLRQ DGYDQWDJH LPSURYH $FW¶ DQG UXOH RI WKH &RPSDQLHV 0DQDJHPHQW DQG GHFLVLRQPDNLQJ FDSDELOLWLHV DQG VWUHDPOLQH EXVLQHVV SURFHVVHV Administration) Rules, 2014, the extract of annual return is such as underwriting, claims, and risk management and compliance. Annexed as Annexure 2. ,QDGGLWLRQLQDQHIIRUWWREHFRPHPRUHFXVWRPHUFHQWULFLQVXUHUV ii) Number of Board Meetings: QHHGWREXLOGDQDJLOH,7IUDPHZRUNWKDWOHYHUDJHVWHFKQRORJLHVVXFK DVPRELOHDQDO\WLFVDQGFORXGFRPSXWLQJ The Board of Directors met 9 (nine) times during the year 0DQ\ LQVXUHUV KDYH DJJUHVVLYH SODQV WR GHYHORS PRELOH WRROV IRU 7KHGHWDLOVRIWKHERDUGPHHWLQJVDQGWKHDWWHQGDQFHRI agents and intermediaries that can lead to product innovation, faster the Directors thereat are provided in the Corporate Governance WLPHWRPDUNHWHQKDQFLQJGLVWULEXWLRQFKDQQHOVDQGLPSURYLQJVDOHV Report, appearing elsewhere as a separate section in this and marketing tactics. Many CIOs are requiring an integrated service Annual report. GHOLYHU\ PRGHO WKDW FRPELQHV WHFKQRORJ\ VROXWLRQV RSHUDWLRQDO iii) Change in Share Capital: excellence, and analytics-led insights. During the year, the Company allotted 3,85,992 Equity Shares 5. BUSINESS OUTLOOK at face value of ` 5/- each with aggregate nominal value of 7KHGHPHUJHULVDZLQZLQDVWKHLQVXUDQFHDQGVROXWLRQVEXVLQHVVHV ` 1,929,960/- to the employees/ Directors of the Company, ZLOOJHWHQKDQFHGPDQDJHPHQWIRFXVDQGRSHUDWLRQDOÀH[LELOLW\DSDUW who exercised their vested Employee Stock Options as per the from independently pursuing their growth plans through organic/ approved employee stock option plans. These Equity Shares LQRUJDQLFPHDQV7KHDUUDQJHPHQWDOVRFUHDWHVDSODWIRUPIRUERWK rank pari passu in all respects with the existing Equity Shares EXVLQHVVHVWRHQKDQFHWKHLU¿QDQFLDOÀH[LELOLW\ of the Company. 7KHWZRDFTXLVLWLRQVRQWKHLQVXUDQFHEXVLQHVVZLOOVWUHQJWKHQWKH $VRQVW0DUFKWKHLVVXHGVXEVFULEHGDQGSDLGXS RYHUDOOSRUWIROLRRISURGXFWVWRFDWHUWRWKHJURZLQJPDUNHWLQ1RUWK share capital of your Company stood at ` 112,733,360 /-, $PHULFDDQGZLOOHQDEOH0DMHVFRWRDFWLYHO\FRPSHWHIRUODUJHUDQG comprising 22,546,672 Equity shares of ` 5/- each. more complex assignments in the future. iv) Composition of Audit Committee 2Q WKH VROXWLRQV VLGH 0DVWHN VHHV WUDFWLRQ EXLOGLQJ XS LQ WKH8. through the G-Cloud framework. This is largely a UK government Mastek has an Audit Committee that currently comprises initiative to structure smaller deals and procure directly through the RI WKUHH ,QGHSHQGHQW 'LUHFWRUV DQG RQH 1RQ([HFXWLYH small medium players rather than go on for large huge programs Promoter Director. The Chairman of the Audit Committee is which have had a high failure rate which plays to our advantage. an Independent Director. The Independent Directors are On the UK retail front too where apart from a large marquee client, DFFRPSOLVKHG SURIHVVLRQDOV IURP WKH FRUSRUDWH ¿HOGV 7KH the company has plans to service other Tier-I accounts. On the UK Managing Director and Group CEO, the Group CFO and Finance ¿QDQFLDOVHUYLFHVVLGHWKHIRFXVLVRQPLFUROHQGLQJFOLHQWV 'LUHFWRUDQGWKH&KLHI)LQDQFLDO2I¿FHURIWKH&RPSDQ\DWWHQG The Joint Venture with The Law Society of England and Wales (TLS), the meetings on invitation. The Company Secretary is the United Kingdom named Legal Practice Technologies Limited (LPTL) Secretary of the Committee. LV LQ WKH SURFHVV RI EXLOGLQJ D SODWIRUP ZKLFK LV D FRQYH\DQFLQJ During the year ended March 31, 2015 the Audit Committee SRUWDO EUDQGHG DV ³9H\R´ WR EH XVHG E\ VROLFLWRUV RQ UHDO HVWDWH PHW VL[ WLPHV 7KH DWWHQGDQFH RI WKH PHPEHUV DW WKH WUDQVDFWLRQVDQGLWKDVDOUHDG\JDUQHUHGVXI¿FLHQWLQWHUHVWIURPWKH PHHWLQJVLVVWDWHGEHORZ legal community in the UK. The Veyo portal should do well in terms of getting a good market share of all the real estate transactions Name of Member Status No. of happening in the UK. Meetings ,Q,QGLDWKHEXVLQHVVZDVDELWVORZODVW\HDUGXHWRWKHHOHFWLRQV attended EXWWKHQHZJRYHUQPHQWKDVDQQRXQFHGLWVLQWHQWLRQVRIEROVWHULQJ Mr. S. Sandilya Chairman 5 WKH,7IUDPHZRUNDQGZHGREHOLHYHWKDWWKHUHZLOOEHDORWRIODUJH Mr. Ashank Desai 0HPEHU 5 XQEXQGOHGRSSRUWXQLWLHVWKDW0DVWHNFDQDGGUHVV Ms. Priti Rao 0HPEHU 6 6. RESERVES Mr. Venkatesh Chakravarty 0HPEHU 6 The Company proposes to carry ` 180 lakhs to reserves. The other details of the Audit Committee are given in the 7. DIVIDEND Corporate Governance Report, appearing elsewhere as a separate section in this Annual report. An Interim Dividend of ` 1.50 per Equity Share of ` 5/- was declared E\ WKH %RDUG RI 'LUHFWRUV DQG ZDV SDLG LQ )HEUXDU\ 64 DIRECTORS’ REPORT (contd.) QR PDWHULDO VLJQL¿FDQW UHODWHG SDUW\ WUDQVDFWLRQV PDGH E\ I WKDW SURSHU V\VWHPV KDYH EHHQ GHYLVHG WR HQVXUH the Company with Promoters, Directors or Key Managerial FRPSOLDQFHZLWKWKHSURYLVLRQVRIDOODSSOLFDEOHODZVDQGWKDW 3HUVRQQHO HWF ZKLFK PD\ KDYH SRWHQWLDO FRQÀLFW ZLWK WKH such systems were adequate and operating effectively. interest of the Company at large. 13. STATUTORY AUDITORS, THEIR REPORT AND NOTES TO All the Related Party Transactions are presented to the Audit FINANCIAL STATEMENTS &RPPLWWHH DQG %RDUG IRU WKHLU DSSURYDO 2PQLEXV DSSURYDO At the last Annual General Meeting(AGM) held on July 23, 2014, LV JLYHQ E\ $XGLW FRPPLWWHH IRU WKH WUDQVDFWLRQV ZKLFK DUH 0V 3ULFH :DWHUKRXVH &KDUWHUHG $FFRXQWDQWV //3 KDYH EHHQ foreseen and repetitive in nature. A statement of all Related appointed as the Statutory Auditors of the Company for a period of 3DUW\ 7UDQVDFWLRQV LV SUHVHQWHG EHIRUH WKH $XGLW &RPPLWWHH \HDUV5DWL¿FDWLRQRIDSSRLQWPHQWRI6WDWXWRU\$XGLWRUVLVEHLQJ DQG%RDUGRQTXDUWHUO\EDVLVVSHFLI\LQJWKHQDWXUHYDOXHDQG VRXJKWIURPWKHPHPEHUVRIWKH&RPSDQ\DWWKHHQVXLQJ$*0 terms and conditions of the transactions. The said transactions DUHDSSURYHGE\$XGLW&RPPLWWHHDVZHOODVE\%RDUG Further, the report of the Statutory Auditors is enclosed to this report. 7KHREVHUYDWLRQVPDGHLQWKH$XGLWRUV¶5HSRUWDUHVHOIH[SODQDWRU\ 7KH 5HODWHG 3DUW\ 7UDQVDFWLRQV 3ROLF\ DV DSSURYHG E\ WKH DQGGRHVQRWFRQWDLQDQ\TXDOL¿FDWLRQ7KHUHIRUHLWGRHVQRWFDOOIRU %RDUG LV XSORDGHG RQ WKH &RPSDQ\¶V ZHEVLWH DW WKH ZHE any further comments. link:http://www.mastek.com/images/pdf/Related-Party- Transactions-Policy- Detailed explanation on transactions with 14. SECRETARIAL AUDIT related parties is given in Annexure 3. In terms of Section 204 of the Act and Rules made there under, 10. MANAGEMENT OF RISKS OF FRAUD, CORRUPTION AND 0V96XQGDUDP &R3UDFWLFLQJ&RPSDQ\6HFUHWDU\0XPEDLKDV UNETHICAL BUSINESS PRACTICES. EHHQDSSRLQWHG6HFUHWDULDO$XGLWRURIWKH&RPSDQ\7KHUHSRUWRI the Secretarial Auditor is enclosed as Annexure 4 to this report. The Whistle Blower Policy/ Vigil mechanism UHSRUW LV VHOIH[SODQDWRU\ DQG GRHV QRW FRQWDLQ DQ\ TXDOL¿FDWLRQ In compliance with the requirement of the Companies Act, 2013 Therefore it does not call for any further comments. DQG/LVWLQJ$JUHHPHQWJXLGHOLQHVWKH&RPSDQ\KDVHVWDEOLVKHGD 15. HUMAN RESOURCES Whistle Blower Policy /Vigil mechanism and the same is placed on WKHZHEVLWHRIWKH&RPSDQ\YL]KWWS ZZZPDVWHNFRPLQYHVWRUV 0DVWHN*URXSGHSOR\VLWVLQWHOOHFWXDOFDSDELOLW\WRFUHDWHDQGGHOLYHU corporate-governance. LQWHOOHFWXDOSURSHUW\ ,3 OHGVROXWLRQVWKDWPDNHDSRVLWLYHEXVLQHVV LPSDFWIRULWVJOREDOFOLHQWV)RUWKLVWKHNH\VXFFHVVHQDEOHUDQG The employees of the company are made aware of the said policy at most vital resource is world-class talent. Mastek Group continually the time of joining the Company. undertakes measures to attract and retain such high quality talent. 11. AWARDS AND RECOGNITION As on March 31, 2015, Mastek Group had a total Head count of 65 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) WKH YHVWLQJ SHULRG 1R RSWLRQV KDYH EHHQ JUDQWHG XQGHU RSWLRQVRYHUWKHH[HUFLVHSULFHRIWKHRSWLRQLVWREHUHFRJQL]HG WKH VFKHPH DW EHORZ PDUNHW SULFH DQG FRQVHTXHQWO\ WKHUH DQGDPRUWL]HGRQDVWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRG is no compensation cost in the current year. In April, 2006 'XULQJWKH¿QDQFLDO\HDUHQGHG-XQHRSWLRQV the Company issued Bonus Shares in the ratio of 1:1 and the were granted at price less then the market price. There is no QXPEHURIXQYHVWHGDQGXQH[HUFLVHGRSWLRQVDQGWKHSULFHRI compensation cost in the current year, as the cost of discounted WKHVDLGRSWLRQVKDYHEHHQDGMXVWHGDFFRUGLQJO\ RSWLRQVKDVEHHQFKDUJHGRIILQHDUOLHU\HDUV (No. of Options) (No. of Options) Year ended Year ended Year ended Year ended March 31, March 31, March 31, March 31, 2015 2014 2015 2014 Opening Balance - 42,125 Opening Balance 673,514 853,514 Granted during the year - - Granted during the year - - Exercised during the year - - Exercised during the year (91,575) - Cancelled during the year - (42,125) Cancelled during the year (273,000) (180,000) Balance unexercised options - - Balance unexercised options 308,939 673,514 ii. Plan IV iv. Plan VI The Shareholders of the Company through Postal Ballot on August The Company introduced a new scheme in 2010 for granting 2,000,000 stock options to the employees, each option 9, 2007 approved the allocation of 1,000,000 stock options to the representing one equity share of the Company. The exercise HOLJLEOHHPSOR\HHVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHV SULFHDVPD\EHGHWHUPLQHGE\WKH&RPPLWWHHDQGVXFKSULFH PD\EHWKHIDFHYDOXHRIWKHVKDUHIURPWLPHWRWLPHRUPD\ 7KH &RPSDQ\ VXEVHTXHQWO\ HVWDEOLVKHG D QHZ VFKHPH LQ EHWKH0DUNHW3ULFHRUDQ\SULFHDVPD\EHGHFLGHGE\WKH 2007 for granting 1,000,000 stock options to the employees &RPPLWWHHDQGZLOOEHJRYHUQHGE\WKHJXLGHOLQHVLVVXHGE\ UHIHUUHGWRDERYHHDFKRSWLRQUHSUHVHQWLQJRQHHTXLW\VKDUH 6(%,7KHVFKHPHLVJRYHUQHGE\WKH(PSOR\HH6WRFN2SWLRQ RI WKH &RPSDQ\ 7KH H[HUFLVH SULFH LV DV JRYHUQHG E\ WKH Scheme and Employee Stock Purchase Guidelines issued in JXLGHOLQHV LVVXHG E\ 6(%, 7KH VFKHPH LV JRYHUQHG E\ WKH E\ 6(%, DQG DV DPHQGHG IURP WLPH WR WLPH 7KH ¿UVW Employee Stock Option Scheme and Employee Stock Purchase vesting of the stock options shall happen only on completion of *XLGHOLQHVLVVXHGLQ E\6(%,DQGDVDPHQGHGIURPWLPH RQH\HDUIURPWKHGDWHRIJUDQWDQGWKHRSWLRQVDUHH[HUFLVDEOH WR WLPH 7KH ¿UVW YHVWLQJ RI WKH VWRFN RSWLRQV VKDOO KDSSHQ within seven years from the date of vesting. As per the SEBI guidelines, the excess of market price of the underlying equity only on completion of one year from the date of grant and shares as of the date of the grant of the options over the WKHRSWLRQVDUHH[HUFLVDEOHZLWKLQWZR\HDUVIURPWKHGDWHRI H[HUFLVHSULFHRIWKHRSWLRQLVWREHUHFRJQL]HGDQGDPRUWL]HG vesting. During the year ended June 30, 2011, the Company RQDVWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRG'XULQJWKH\HDU has extended the vesting period from two years to seven HQGHG 0DUFK RSWLRQV KDYH EHHQ JUDQWHG years. As per the SEBI guidelines, the excess of market XQGHUWKHVFKHPHDWEHORZPDUNHWSULFH&RQVHTXHQWO\WKH price of the underlying equity shares as of the date of the DPRUWLVHG FRPSHQVDWLRQ FRVW IRU WKH H[HUFLVDEOH RSWLRQV LV grant of the options over the exercise price of the option is ` 96.06 lakhs, out of which `ODNKVKDYHEHHQFKDUJHG WREHUHFRJQL]HGDQGDPRUWL]HGRQDVWUDLJKWOLQHEDVLVRYHU WR WKH VXEVLGLDULHV EDVHG RQ WKH HPSOR\HHV ZKHUH WKH\ DUH HPSOR\HGDQGEDODQFHRI` ODNKVKDYHEHHQFKDUJHGWR WKHYHVWLQJSHULRG1RRSWLRQVKDYHEHHQJUDQWHGXQGHUWKH WKHVWDWHPHQWRISUR¿WDQGORVVGXULQJWKHFXUUHQW\HDU VFKHPHDWEHORZPDUNHWSULFHDQGFRQVHTXHQWO\WKHUHLVQR compensation cost in the current year. (No. of Options) Year ended Year ended (No. of Options) March 31, March 31, Year ended Year ended 2015 2014 March 31, March 31, Opening Balance 1,892,300 1,123,800 2015 2014 Granted during the year 326,957 1,003,750 Opening Balance 411,707 412,986 Exercised during the year (279,299) (6,500) Granted during the year - - Cancelled during the year (624,519) (228,750) Exercised during the year (15,118) - Balance unexercised options 1,315,439 1,892,300 Cancelled during the year (25,564) (1,279) Balance unexercised options 371,025 411,707 v. Plan VII iii. Plan V The Company introduced a new scheme in 2013 for granting 2,500,000 stock options to its employees, employees of its The Company introduced a new scheme in 2008 for granting VXEVLGLDULHVDQGLWV,QGHSHQGHQW'LUHFWRUVHDFKRSWLRQJLYLQJ 1,500,000 stock options to the employees, each option a right to apply for one equity share of the Company on its representing one equity share of the Company. The exercise YHVWLQJ 7KH H[HUFLVH SULFH DV PD\ EH GHWHUPLQHG E\ WKH SULFHDVPD\EHGHWHUPLQHGE\WKH1RPLQDWLRQ 5HPXQHUDWLRQ &RPPLWWHHDQGVXFKSULFHPD\EHWKHIDFHYDOXHRIWKHVKDUH IURPWLPHWRWLPHRUPD\EHWKH0DUNHW3ULFHRUDQ\SULFHDV &RPPLWWHH ´&RPPLWWHH´ DQGVXFKSULFHPD\EHWKHIDFHYDOXH PD\ EH GHFLGHG E\ WKH &RPPLWWHH DQG ZLOO EH JRYHUQHG E\ RIWKHVKDUHIURPWLPHWRWLPHRUPD\EHWKH0DUNHW3ULFHRUDQ\ WKHJXLGHOLQHVLVVXHGE\6(%,7KHVFKHPHLVJRYHUQHGE\WKH SULFHDVPD\EHGHFLGHGE\WKH&RPPLWWHHDQGZLOOEHJRYHUQHG Employee Stock Option Scheme and Employee Stock Purchase E\WKHJXLGHOLQHVLVVXHGE\6(%,7KHVFKHPHLVJRYHUQHGE\WKH *XLGHOLQHVLVVXHGLQ E\6(%,DQGDVDPHQGHGIURPWLPH Employee Stock Option Scheme and Employee Stock Purchase WRWLPH7KH¿UVWYHVWLQJRIWKHVWRFNRSWLRQVVKDOOKDSSHQ *XLGHOLQHVLVVXHGLQ E\6(%,DQGDVDPHQGHGIURPWLPHWR only on completion of one year from the date of grant and WLPH7KH¿UVWYHVWLQJRIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQ WKHRSWLRQVDUHH[HUFLVDEOHZLWKLQVHYHQ\HDUVIURPWKHGDWH completion of one year from the date of grant and the options of vesting. As per the SEBI guidelines, the excess of market price of the underlying equity shares as of the date of the DUH H[HUFLVDEOH ZLWKLQ VHYHQ \HDUV IURP WKH GDWH RI YHVWLQJ grant of the options over the exercise price of the option is As per the SEBI guidelines, the excess of market price of the WREHUHFRJQL]HGDQGDPRUWL]HGRQDVWUDLJKWOLQHEDVLVRYHU underlying equity shares as of the date of the grant of the the vesting period. During the year ended March 31, 2015, 66 DIRECTORS’ REPORT (contd.) RSWLRQVKDYHEHHQJUDQWHGXQGHUWKHVFKHPHDWEHORZ Disclosure required under SEBI (ESOS& ESPS) Guidelines, market price. Consequently, the amortised compensation cost 1999 IRUWKHH[HUFLVDEOHRSWLRQVLV` 35.69 lakhs. The entire cost KDYHEHHQFKDUJHGWRWKHVXEVLGLDULHVEDVHGRQWKHHPSOR\HHV ,Q RUGHU WR HQDEOH WKH &RPSDQ\ WR FRQWLQXH ZLWK LWV (623 WKH where they are employed and `1LOKDYHEHHQFKDUJHGWRWKH &RPSDQ\SDVVHGVSHFLDOUHVROXWLRQVWKURXJKSRVWDOEDOORWLQ-DQXDU\ VWDWHPHQWRISUR¿WDQGOoss during the current year. 2002 for issue of 700,000 stock options to its employees. At the $QQXDO*HQHUDO0HHWLQJKHOGRQ6HSWHPEHUWKH&RPSDQ\ 1RRI2SWLRQV passed special resolutions to issue 700,000 stock options to its Year ended Year ended employees. The Company passed special resolutions through postal March 31, March 31, EDOORWLQ$XJXVW IRULVVXHRIVWRFNRSWLRQVWRLWV 2015 2014 employees. On March 20, 2009, the shareholders of the Company Opening Balance - - approved the further issue of 1,500,000 options to the employees. Granted during the year 1,069,373 - $WWKH$QQXDO*HQHUDO0HHWLQJRIWKH&RPSDQ\KHOGRQ2FWREHU 2010, the shareholders of the Company approved the further issue Exercised during the year - - of 2,000,000 options. At the Annual general Meeting of the Company Cancelled during the year (172,000) - held on July 17, 2013, the Shareholders of the Company approved Balance unexercised options 897,373 - further issue of 2,500,000 options. a) Options granted: Opening 29,77,521 E Issued during the year 13,96,330 c) Pricing formula 0DUNHW 3ULFH DV GH¿QHG E\ 6(%, IURP WLPH WR WLPH RU IDFH YDOXH RU VXFKSULFHDVPD\EHGHFLGHGE\WKH&RPSHQVDWLRQFRPPLWWHHIURP time to time d) Options vested: 10,99,691 e) Options exercised 385,992 f) 7RWDO1XPEHURIVKDUHVDULVLQJDVDUHVXOWRIH[HUFLVHRIRSWLRQ 385,992 g) Options lapsed: 10,95,083 h) Variations of terms of options 1,/ i) 0RQH\UHDOL]HGE\H[HUFLVHRIRSWLRQV ` 558.80 lakhs j) 7RWDOQXPEHURIRSWLRQVLQIRUFH 2,892,776 k) Employee-wise details of options granted to (1) Senior managerial personnel: 3 (2) Any other employee who receives a grant in any one year of option Prahlad Koti - 75,040 options amounting to 5% or more of option granted during that year Anil Chitale - 82,710 options Prateek Kumar - 1,08,770 options (3) ,GHQWL¿HGHPSOR\HHVZKRZHUHJUDQWHGRSWLRQGXULQJDQ\RQH\HDU 1,/ equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant Diluted EPS pursuant to issue of shares on exercise of option calculated ` 31.75 in accordance with Accounting Standard (AS) 20 P 7KHLPSDFWRIWKLVGLIIHUHQFHRQ SUR¿WVDQGRQ(36RIWKH&RPSDQ\ n) Weighted-average exercise price and fair value of Stock Options granted during the year: (` in Lakhs) Year Ended Year Ended Stock options Weighted Weighted Closing market March 31, March 31, granted on average Average fair price at BSE 2015 2014 exercise price value on the date of 3UR¿W$IWHU7D[ 3$7 7,438.75 2,697.11 (in `) grant (in `) Less : Change in Employee (90.18) (36.49) FRPSHQVDWLRQFRVWEDVHGRQ)DLU May 23rd 2014 179.00 82.76 178.35 value May 23rd 2014 5.00 150.38 178.35 Add : Employee stock compensation 13.39 - H[SHQVHVEDVHGRQLQWULQVLFYDOXH July 24th 2014 5.00 172.81 201.00 PAT as per Fair value method 7,361.96 2,660.62 Oct 21st 2014 261 128.89 260.90 Proforma Basic EPS (in `) 32.98 10.83 R 'HVFULSWLRQRIWKHPHWKRGDQGVLJQL¿FDQWDVVXPSWLRQVXVHGGXULQJ : The Black Scholes option pricing model was developed for estimating the year to estimate the fair value of the options, including the fair value of traded options that have no vesting restrictions and are following weighted average information: IXOO\WUDQVIHUDEOH6LQFH2SWLRQSULFLQJPRGHOVUHTXLUHXVHRIVXEVWDQWLYH assumptions, changes therein can materially affect fair value of options. 7KHRSWLRQSULFLQJPRGHOVGRQRWQHFHVVDULO\SURYLGHDUHOLDEOHPHDVXUH of fair value of options. 67 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) 7KH RSWLRQ SULFLQJ PRGHOV GR QRW QHFHVVDULO\ SURYLGH D UHOLDEOH Pursuant to provisions of section 203 of the Companies Act, 2013 measure of fair value of options. which has come into effect from April 1, 2014 the appointment of Mr Sudhkar Ram, Managing Director & Group CEO, Mr. Farid Kazani, The main assumptions used in the Black-Scholes option-pricing Group CFO & Finance Director and Mr. Bhagwant Bargawe, Company model during the year were as follows: Secretary as key managerial personnel were formalised. Serial Grant Date May 23rd July 24th Oct 23. EVALUTION OF THE BOARD’S PERFORMANCE No. 2014 2014 22nd In compliance with Companies Act, 2013, and Clause 49 of the Listing 2014 Agreement, the performance evaluation of the Board as a whole and of 1 Risk Free Interest Rate 8.75% 8.75% 8.47% the Individual Directors was carried out during the year under review. 2 Expected Life (years) 6 6 6 With the help of an external consultant, a structured questionnaire 3 Expected Volatility 47.81% 47.50% 47.58 was prepared after taking into consideration inputs received from the 4 Dividend Yield 2.52% 2.24% 1.72% 'LUHFWRUVFRYHULQJYDULRXVDVSHFWVRIWKH%RDUG¶VIXQFWLRQLQJVXFKDV 17. RISK MANAGEMENT POLICY adequacy of the composition of the Board and its Committees, Board FXOWXUH H[HFXWLRQ DQG SHUIRUPDQFH RI VSHFL¿F GXWLHV REOLJDWLRQV In terms of the requirement of the Act, the Company has developed and governance. and implemented the Risk Management Policy and the Audit Committee, Governance Committee of the Board quarterly reviews A separate exercise was carried out to evaluate the performance the risks and remedial measures taken. of individual Directors including the Chairman of the Board, RQ SDUDPHWHUV VXFK DV OHYHO RI HQJDJHPHQW DQG FRQWULEXWLRQ 7KH ULVNV DUH LGHQWL¿HG DQG GLVFXVVHG E\ 5LVN &RPPLWWHH DW LWV independence of judgment, safeguarding the interest of the meeting at regular intervals. The various risks are categorized as Company and its minority shareholders etc. High risk, Medium risk and Low risk and appropriate steps/measures The Directors expressed satisfaction with the evaluation process. DUHWDNHQLQLWLDWHGWRPLWLJDWHWKHLGHQWL¿HGULVNVIURPWLPHWRWLPH 24. PUBLIC DEPOSITS 18. DECLARATION BY INDEPENDENT DIRECTORS 68 DIRECTORS’ REPORT (contd.) 27. CORPORATE GOVERNANCE z6XEPLW D UHSRUW WR WKH %RDUG RI 'LUHFWRUV RQ DOO &65 DFWLYLWLHVGXULQJWKH¿QDQFLDO\HDU7KLVZLOOEHGLVSOD\HG The Company has complied with Corporate Governance requirement RQWKHFRPSDQ\¶VZHEVLWHZZZPDVWHNFRLQ under the Companies Act, 2013 and as per Listing Agreement. A VHSDUDWHVHFWLRQRQ&RUSRUDWH*RYHUQDQFHSUDFWLFHVIROORZHGE\WKH z Monitor and review the implementation of the CSR policy. &RPSDQ\WRJHWKHUZLWKWKH&HUWL¿FDWHIURP0V96XQGDUDP &R CSR Committee Composition: 3UDFWLFLQJ&RPSDQ\6HFUHWDU\0XPEDLDSSHDULQJHOVHZKHUHLQWKLV report, forms an integral part of this report. The Chairperson of the Committee is Ms. Priti Rao, an Independent 'LUHFWRU7KHRWKHUPHPEHUVDUH'U5DMHQGUD6LVRGLD0U6XGKDNDU 28. Corporate Social Responsibility Ram and Mr. Ashank Desai. The Company Secretary is the Secretary In compliance with the provisions of Section 135 of the Companies of the Committee. Act, 2013 the Board of Directors of the Company have formed a During the year, the Company gave Donations totaling to ` 84.94 &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ &RPPLWWHH YLGH %RDUG 5HVROXWLRQ lakhs. Of this, a sum of ` 67.32 Lakhs was spent on Projects approved GDWHG $SULO $ GHWDLOHG UHSRUW DERXW &RUSRUDWH 6RFLDO under Section 135 of the Companies Act 2013 on CSR activity and 5HVSRQVLELOLW\LVJLYHQLQ$QQH[XUH ` 17.67 lakhs was towards the salary and other Administrative The Committee has formulated and recommended to Board a Expenses of Mastek Foundation. &RUSRUDWH6RFLDO5HVSRQVLELOLW\3ROLF\7KHFRQWHQWVRIWKHSROLF\DUH As per provision of Section 135 of the Companies Act, 2013, the as follows:- &RPSDQ\KDVWRVSHQGLQHYHU\¿QDQFLDO\HDUDWOHDVWRIWKH Mastek CSR programmes shall fall under the following DYHUDJHQHWSUR¿WVRIWKH&RPSDQ\PDGHGXULQJWKUHHLPPHGLDWHO\ categories: SUHFHGLQJ ¿QDQFLDO \HDUV LQ SXUVXDQW RI &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\SROLF\ 1. Promoting education, enhancing skills of children, and development of children of women working in red-light areas. %DVHG RQ WKH $YHUDJH QHW SUR¿W RI WKH &RPSDQ\ IRU WKUHH We are also involved in special education and employment- LPPHGLDWHO\SUHFHGLQJ¿QDQFLDO\HDUVWKHDPRXQWWREHVSHQWRQ enhancing vocation skills especially among women, elderly and CSR activities during the year 2014-15 was ` 47.84 Lakhs. However, WKHGLIIHUHQWO\DEOHGDQGOLYHOLKRRGHQKDQFHPHQWSURMHFWV it spent ` 84.94 lakhs on CSR activities.. 2. Eradicating hunger, poverty and malnutrition, promoting 7KHVDLGH[SHQGLWXUHLVZLWKLQWKHSUHVFULEHGOLPLWVDQGWKHFRPSDQ\ preventive health care and sanitation and making safe drinking is in compliance of the provisions of Section 135 of the Companies ZDWHUDYDLODEOH Act 2013. 3. Promoting gender equality and empowering women. Activities 29. Transfer of Amounts to Investor Education and Protection include setting up homes/ hostels for women and orphans, Fund old age homes and other such facilities for senior citizens, day Your Company has transferred a sum of ` 10.23 Lakhs during the FDUH FHQWUHV DQG PHDVXUHV WR UHGXFH LQHTXDOLWLHV IDFHG E\ ¿QDQFLDO \HDU WR ,QYHVWRU (GXFDWLRQ DQG 3URWHFWLRQ )XQG VRFLDOO\DQGHFRQRPLFDOO\EDFNZDUGJURXSV ,(3) HVWDEOLVKHG E\ &HQWUDO *RYHUQPHQW LQ FRPSOLDQFH ZLWK 4. Protection and up gradation of environmental conditions. section 125 of the Companies Act 2013.The said amount represents 7KHVHLQFOXGHHQVXULQJHQYLURQPHQWDOVXVWDLQDELOLW\HFRORJLFDO unclaimed Dividends which were lying with the company for a period EDODQFHSURWHFWLRQRIÀRUDDQGIDXQDDQLPDOZHOIDUHDJUR of 7(seven) from their respective due dates of payment. forestry, conservation of natural resources and maintaining the Pursuant to the provisions of the Investor Education Protection Fund quality of soil, air and water. (Uploading of information regarding unpaid and unclaimed amounts 5. Any other projects with the approval of the board. lying with companies) Rules, 2012, the Company has already ¿OHG WKH QHFHVVDU\ IRUP DQG XSORDGHG WKH GHWDLOV RI XQSDLG DQG Corpus: unclaimed amounts lying with the Company, as on the date of last The corpus of the CSR policy includes: AGM (i.e. July 23, 2014), with the Ministry of Corporate Affairs. z RIWKHDYHUDJHQHWSUR¿WRIWKHSUHFHGLQJWKUHH\HDUV 30. ACKNOWLEDGEMENT z Any income arising therefrom Your Directors place on record their appreciation for employees at all OHYHOVZKRKDYHFRQWULEXWHGWRWKHJURZWKDQGSHUIRUPDQFHRI\RXU z 6XUSOXVDULVLQJRXWRIWKHDERYHDFWLYLWLHV Company. z 3D\UROOFRQWULEXWLRQIURPWKHHPSOR\HHV z'HFLGH&65SURMHFWVRUSURJUDPPHVRUDFWLYLWLHVWREH )RUDQGRQEHKDOIRIWKH%RDUG WDNHQXSE\WKHFRPSDQ\ MASTEK LIMITED z3ODFHEHIRUHWKHERDUGWKH&65DFWLYLWLHVSURSRVHGWREH WDNHQXSE\WKHFRPSDQ\IRUDSSURYDOHDFK\HDU Sudhakar Ram S. Sandilya 0DQDJLQJ'LUHFWRU *URXS&(2 1RQ([HFXWLYH&KDLUPDQ z Oversee the progress of the initiatives rolled out under & Independent Director this policy every quarter. z'H¿QH DQG PRQLWRU WKH EXGJHWV IRU FDUU\LQJ RXW WKH Date : April 22, 2015 initiatives. 3ODFH 0XPEDL 69 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) Annexure 1 6WDWHPHQWFRQWDLQLQJVDOLHQWIHDWXUHVRI¿QDQFLDOVWDWHPHQWVRIVXEVLGLDULHV 3XUVXDQWWRVXEVHFWLRQ RIVHFWLRQ RIWKH$FWWKHVWDWHPHQWFRQWDLQLQJWKHVDOLHQWIHDWXUHRIWKH¿QDQFLDOVWDWHPHQWRIDFRPSDQ\¶VVXEVLGLDU\RU VXEVLGLDULHVDVVRFLDWHFRPSDQ\RUFRPSDQLHVDQGMRLQWYHQWXUHRUYHQWXUHVLVJLYHQEHORZ )XUWKHUEULHIDERXWWKHEXVLQHVVRIWKHHDFKRIWKH6XEVLGLDULHVDQG$VVRFLDWHVLVJLYHQKHUHXQGHU 0DVWHN8./WG,WLVDSURYLGHURI6RIWZDUH6ROXWLRQVZKLFKHQDEOHFXVWRPHUVWRVROYHWKHLUFRPSOH[PLVVLRQFULWLFDOEXVLQHVVSUREOHPVZLWKLQQRYDWLYH VROXWLRQVWKDWVXVWDLQDQGJURZWKHLUEXVLQHVVLQWKH8.PDUNHW Majesco UK Ltd – It is a provider of Information Technology Services for Life & Annuity Insurers. in the UK market. Majesco, USA – It is a provider of Consultancy services and Information Technology Services for Life & Annuity Insurers in the US market. 0DMHVFR6RIWZDUH 6ROXWLRQV,QF86$,WLVDSURYLGHURIWHFKQRORJ\VROXWLRQVIRU3URSHUW\ &DVXDOW\LQVXUHUVSULPDULO\LQ1RUWK$PHULFDPDUNHWV Majesco Canada Limited, Canada – It is a provider of Technology Solutions for Life & Annuity and Property & Casualty Insurers and Financial Services in the Canada market. 0DVWHN$VLD3DFL¿F3WH/WG6LQJDSRUH±,WLVDSURYLGHURI,QIRUPDWLRQ7HFKQRORJ\6HUYLFHVLQWKH6LQJDSRUH0DUNHW Majesco Sdn Bhd, Malaysia – It is a provider of Information Technology Services for Life & Annuity Insurers and Financial Services providers in the Malaysia market. Majesco Thailand Co. Ltd, Thailand – It is a provider of Information Technology Services for Life & Annuity Insurers in the Thailand market 0LQH¿HOGV&RPSXWHUV/WG±,WLV\HWWRFRPPHQFHLWV%XVLQHVV Majesco Software & Solutions India Pvt Ltd - It is yet to commence its Business /HJDO3UDFWLFH7HFKQRORJLHV/WG86$,WLVD-RLQW9HQWXUHEHWZHHQ0DVWHN8./WGDQGWKH/DZ6RFLHW\8.7KH-9ZLOOGHOLYHUWKH&RQYH\DQFLQJ3RUWDO 7KH&RQYH\DQFLQJ3RUWDOLVDQRQOLQHVHUYLFHWKDWZLOOKHOSVROLFLWRUVDQGOLFHQVHGFRQYH\DQFHUVVDYHPRQH\DQGZLOOVSHHGXSWKHKRXVHEX\RQJSURFHVV for consumers. Part “A”: Subsidiaries MUK Majesco Majesco Majesco Majesco Mastek Majesco Majesco MCL MSSIPL UK US Software Canada Singapore Malaysia Thailand & Ltd. Solutions Inc., US Reporting period Reporting IRUWKHVXEVLGLDU\ periods of all concerned, if WKH6XEVLGLDULHV different from are the same as KROGLQJFRPSDQ\¶V of the Holding reporting period Company which is March 31. Reporting currency GBP GBP ,15 ,15 ,15 SGD RM THB ,15 ,15 Exchange rate on 92.47 92.47 1$ 1$ 1$ 45.475 16.875 1.92 1$ 1$ the last date of the Financial Year in the case of foreign VXEVLGLDULHV Share Capital ` Lakhs 113.7 1,180.69 143.84 1.1 1,555.01 1,296.04 1,900.46 134.40 5.00 35.00 Reserves & ` Lakhs 14,379.81 15.81 17,788.21 3,439.62 -1,490.69 -1,158.45 151.27 -661.20 -3.03 -11.34 Surplus Total Assets ` Lakhs 21,760.79 2,447.25 26,127.67 9176.1 1,021.83 158.27 2,307.52 174.02 2.89 24.3 7RWDO/LDELOLWHV ` Lakhs 9,554.95 1,250.75 8,195.62 5,735.38 957.51 20.69 255.78 700.81 0.93 0.65 Investments ` Lakhs 2,287.67 - 20,582.56 1,220.36 0 - 118.31 - 0 0 Turnover ` Lakhs 52,331.61 1295.17 7,511.05 30,779.77 2,146.95 213.16 3,268.76 274.24 0 0 3UR¿WEHIRUH ` Lakhs 2,155.65 55.44 -2,600.03 -163.02 -399.05 4.91 63.24 -565.99 -2.96 -11.34 Taxation Provision for ` Lakhs 262.51 11.76 -56.58 -154.87 - - 17.19 - 0 0 Taxation 3UR¿WDIWHU ` Lakhs 1,893.14 43.68 -2,543.46 -8.15 -399.02 4.91 46.05 -565.99 -2.96 -11.34 Taxation Proposed Dividend ------% shareholding 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 70 DIRECTORS’ REPORT (contd.) 7KHIROORZLQJLQIRUPDWLRQVKDOOEHIXUQLVKHG 1. Names of subsidiaries which are yet to commence operations: 0LQH¿HOGV&RPSXWHUVOLPLWHG (2) Majesco Software and Solutions Indian Pvt Ltd 2. Names of subsidiaries which have been liquidated or sold during the year- NIL Part “B”: Joint Venture Name of Joint Venture Legal Practice Technologies Limited, UK 1. Latest audited Balance Sheet Date /HJDO 3UDFWLFH 7HFKQRORJLHV /WG 8. LV D -RLQW 9HQWXUH EHWZHHQ WKH /DZ Society UK and Mastek UK Ltd. The Joint Venture was incorporated on May XQGHUWKHODZVRI(QJODQGDQGLWV¿UVW$FFRXQWLQJ 71 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) Annexure 2 Form No. MGT-9 (;75$&72)$118$/5(7851DVRQWKH¿QDQFLDO\HDUHQGHGRQVW0DUFKRI0$67(./,0,7(' [Pursuant to Section 92(1) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014] I. REGISTRATION AND OTHER DETAILS : 1. &,1 L74140GJ1982PLC005215 2. Registration Date May 14, 1982 3. 1DPHRIWKH&RPSDQ\ MASTEK LIMITED 4. &DWHJRU\6XE&DWHJRU\RIWKH&RPSDQ\ 3XEOLF&RPSDQ\/LPLWHGE\6KDUHV 5. $GGUHVVRIWKH5HJLVWHUHG2I¿FHDQGFRQWDFWGHWDLOV 3UHVLGHQW+RXVH2SS&19LG\DOD\D1U$PEDZDGL&LUFOH $KPHGDEDG 7HO1R 6. Whether listed company Yes 7. 1DPH $GGUHVV DQG FRQWDFW GHWDLOV RI 5HJLVWUDU Sharepro Services (India) Pvt Ltd Samhita Warehousing Complex, Transfer Agents (RTA) $%*DOD1R1HDU6DNLQDND7HOHSKRQH([FKDQJH2II$QGKHUL.XUOD5RDG $QGKHUL (DVW 0XPEDL 3KRQH1R )D[1R E-mail Id:[email protected] and saritam@ shareproservices. Com. II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY $OOWKHEXVLQHVVDFWLYLWLHVFRQWULEXWLQJRUPRUHRIWKHWRWDOWXUQRYHURIWKHFRPSDQ\VKDOOEHVWDWHG Sl. No. Name and Description of main products/services NIC Code of the % to total turnover Product/service of the company 1. Computer Programming, Consultancy and Related Activities 620 100% III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES - Sl. Name and CIN/GLN Holding/ % of Applicable No. Address of the Company Subsidiary/ shares Section Associate held 1. Majesco USA Foreign Company 6XEVLGLDU\ 83.5% 2 (87) 2. Mastek UK Limited Foreign Company 6XEVLGLDU\ 100.00% 2(87) 3. 0DVWHN$VLD3DFL¿F3WH/WG Foreign Company 6XEVLGLDU\ 100.00% 2(87) 4. 0LQH¿HOGV&RPSXWHUV/LPLWHG WLOOFRXUWRUGHU U72300MH2013PLC244874 6XEVLGLDU\ 100.00% 2(87) comes for scheme of Arrangement) IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) (i) Category-wise Share Holding Category of Shareholders No. of Shares held at the beginning of the No. of Shares held at the end of the year % Change year during the year Demat Physical Total % of Demat Physical Total % of Total Total Shares Shares A. Promoters 1. Indian a) Individual/HUF 11506660 1,/ 11506660 51.92 11506660 1,/ 11506660 51.030 1,/ E &HQWUDO*RYW 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ c) State Govt. (s) 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ d) Bodies Corp 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ e) Banks/FI 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ f) Any Other 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ Sub-total (A) 11506660 NIL 11506660 51.90 11506660 NIL 11506660 51.03 72 DIRECTORS’ REPORT (contd.) Category of Shareholders No. of Shares held at the beginning of the No. of Shares held at the end of the year % Change year during the year Demat Physical Total % of Demat Physical Total % of Total Total Shares Shares 2. Foreign D 15,V,QGLYLGXDOV 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ E 2WKHU±,QGLYLGXDOV 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ c) Bodies Corp. 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ d) Banks / FI 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ e) Any Other…. 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ Sub-total(A) (2): Total shareholding of 11506660 NIL 11506660 51.9 11506660 NIL 11506660 51.030 NIL Promoter (A) = (A)(1)+(A)(2) B. Public Shareholding 1. Institutions a) Mutual Funds 15656 1200 16856 0.06 401378 1200 402578 1.79 1.73 E %DQNV), 4536 1,/ 4536 0.02 20033 1,/ 20033 0.09 0.07 c) Central Govt 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ d) State Govt (s) 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ e) Venture Capital Funds 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ f) Insurance Companies 1583720 1,/ 1583720 7.15 1121532 1,/ 1121532 4.97 -2.18 g) FIIs 3303566 1600 3305166 14.9 2877852 1600 2879452 12.77 -2.13 h) Foreign Venture 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ Capital Funds i) Others (specify) 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ Sub-Total (B)(1) 4907478 1800 4910278 22.13 4420795 2800 4423595 19.62 -2.51 2. Non-Institutions a) Bodies Corp. i. Indian 540266 2800 543066 2.45 1595899 2800 1598699 7.09 4.64 ii. Overseas 200 1,/ 200 0.00 200 1,/ 200 0.00 - E ,QGLYLGXDOV i. Individual 2895388 213975 3109363 14.03 3750611 259958 4010569 17.79 3.76 shareholders holding nominal share capital upto ` 1 lakh ii. Individual 1794539 1,/ 1794539 8.10 631486 51944 683430 3.03 -5.07 shareholders holding nominal share capital in excess of ` 1 lakh c) Others L1RQ 5HVLGHQW 247431 11733 259164 1.17% 297836 11273 309109 1.37 0.20 Individuals LL )RUHLJQ1DWLRQDO 37410 1,/ 37410 0.017% 14410 1,/ 14410 0.06 0.04 Sub-total (B)(2): 5515034 228708 5743742 25.92% 6290242 326175 6616417 29.35 3.43 Total Public Shareholding 10422512 231508 10654020 48.08 10711037 328975 11040012 48.97 0.89 (B)=(B)(1)+(B)(2) C. Shares held by Custodian for GDRs & ADRs Grand Total (A+B+C) 21929172 231508 22160680 100 22217697 328975 22546672 100 100 73 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) (ii) Shareholding of Promoters Sl Shareholder’s Shareholding at the beginning of the year Shareholding at the end of the year % change In No. Name shareholding during the year No. of % of %of Shares No. of % of % of Shares Shares total Pledged / Shares total Pledged / Shares encumbered Shares encumbered of the to total of the to total company shares company shares 1. Ashank Desai 3099552 13.99% 1,/ 3099552 13.82 1,/ -.17 2. Sudhakar Ram 2791680 12.60% 1,/ 2791680 12.45 1,/ -.15 3. Ketan Mehta 2519100 11.37% 1,/ 2519100 11.23 1,/ -.07 4. Radhakrishnan Sundar 1445800 6.52% 1,/ 1445800 6.45 1,/ -.03 5. Rupa Mehta 480800 2.17% 1,/ 480800 2.14 1,/ -.03 6. Usha Sundar 460000 2.08% 1,/ 460000 2..05 1,/ .01 7. Girija Ram 163600 0.74% 1,/ 163600 0.73 1,/ .01 8. Padma Desai 155200 0.70% 1,/ 155200 0.69 1,/ .01 9. Samvitha Ram 103328 0.47% 1,/ 103328 0.46 1,/ .01 10. Avanthi Desai 81600 0.37% 1,/ 81600 0.36 1,/ .01 11. Chinmay Ashank Desai 71600 0.32% 1,/ 71600 0.32 1,/ - 12. Varun Sundar 64000 0.29% 1,/ 64000 0.29 1,/ - 13. Shankar Sundar 64000 0.29% 1,/ 64000 0.29 1,/ - 14. Tanay Mehta 6400 0.00% 1,/ 6400 0.00 1,/ - 1RWH 7KHUHLVQRFKDQJHLQWKHQXPEHURIVKDUHVKHOGE\WKH3URPRWHUV 3URPRWHUV*URXS+RZHYHUWKHSHUFHQWDJHRIWKH6KDUHKROGLQJKDVFKDQJHG GXULQJWKH\HDUGXHWRDOORWPHQWRIVKDUHVRQH[HUFLVHRIYHVWHG(623¶V (iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): Sl. For Each of the Top Shareholding at the beginning of the Shareholding at the end of the year No. 10 Shareholders year April 1, 2014 March 31, 2015 No. of shares % of total No. of shares % of total shares of the shares of company the company 1. Fidelity Puritan Trust Fidelity Low Priced 2025000 9.14 2025000 9.03 2. Life Insurance Corporation of India Limited 1550404 6.99 1367102 6.09 3. Ashish Dhawan 1313935 5.93 1LO 1LO 4. )LGHOLW\1RUWKVWDU)XQG 438000 1.98 1,/ 1,/ 5. Merrill Lynch Capital Markets Espana S A S V 591988 2.57 6. Sum Sunsuper Pooled Superannuation Trust - - 303277 1,/ 7. Sund Sundaram Mutual Fund A/c Sundaram Smile fund - - 301826 1.35 74 DIRECTORS’ REPORT (contd.) (v) Shareholding of Directors and Key Managerial Personnel: Sl. For Each of the Directors and KMP Shareholding at the beginning Share holding at the end of the year No. of the year 01.04.2014 March 31, 2015 No. of shares % of total No. of shares % of total shares shares of the of company the company 1. Mr. Sudhakar Ram 2791680 12.60 2791680 13.82 2. Mr. Radhakrishnan Sundar 1445800 6.52 1445800 6.42 3. Mr. Farid Kazani 384 0.00 35000 .016 4. Mr. Bhagwant Bhargawe 1,/ 1,/ 1,/ 1,/ V. INDEBTEDNESS ,QGHEWHGQHVVRIWKH&RPSDQ\LQFOXGLQJLQWHUHVWRXWVWDQGLQJDFFUXHGEXWQRWGXHIRUSD\PHQW Secured Loans Unsecured Deposits Total excluding deposits Loans Indebtedness ,QGHEWHGQHVVDWWKHEHJLQQLQJRIWKH¿QDQFLDO year April 1, 2014 i) Principal Amount 1,88,45,422 1,/ 1,/ 1,88,45,422 LL ,QWHUHVWGXHEXWQRWSDLG 1,/ 1,/ 1,/ 1,/ LLL ,QWHUHVWDFFUXHGEXWQRWGXH 1,/ 1,/ 1,/ 1,/ 7RWDO LLLLLL 1,88,45,422 1,/ 1,/ 1,88,45,422 &KDQJHLQ,QGHEWHGQHVVGXULQJWKH¿QDQFLDO\HDU $GGLWLRQ 7,38,319 1,/ 1,/ 7,38,319 - Reduction 60,61,849 1,/ 1,/ 60,61,849 1HW&KDQJH 53,23,530 1,/ 1,/ 53,23,5300 ,QGHEWHGQHVVDWWKHHQGRIWKH¿QDQFLDO\HDU i) Principal Amount 1,35,21,892 1,/ 1,/ 1,35,21,892 LL ,QWHUHVWGXHEXWQRWSDLG LLL ,QWHUHVWDFFUXHGEXWQRWGXH 7RWDO LLLLLL 1,35,21,892 1,/ 1,/ 1,35,21,892 VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole-time Directors and/or Manager: Sl. Particulars of Remuneration Name of MD/WTD/Manager- Total No. Mr. Sudhakar Ram Amount $OO¿JXUHVLQ`) Mr. Sudhakar Ram Mr. Radhakarishnan Sundar 1 Gross salary (a) Salary as per provisions contained in section 17(1) of 55,80,000 24,00,000 79,80,000 the Income-tax Act, 1961 E 9DOXHRISHUTXLVLWHVXV ,QFRPHWD[$FW 337 39,600 39,937 F 3UR¿WVLQOLHXRIVDODU\XQGHU 2. Stock Option - - - 3. Sweat Equity - - - 4. - Commission 1$ 1$ 1$ DVRISUR¿W - others, specify 5. Others, please specify Provident Fund & Other Fund 3,60,000 2,88,000 6,48,000 Performance Bonus 60,00,000 1,/ 60,00,000 Total (A) 1,19,40,337 27,27,600 1,46,67,937 Ceiling as per the Act 3,65,89,300 3,65,89,300 7,31,78,600 75 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) B. Remuneration to other directors: I. Independent Directors Particulars of Remuneration Name of Directors Total Amont ` $OO¿JXUHVLQ`)Mr. S. Mr. Dr. Mr. Atul Ms. Priti Dr. Arun Sandilya Venkatesh Rajendra Kanagat Rao Maheshwari Chakravarty Sisodia )HHIRU$WWHQGLQJERDUGPHHWLQJV 1,60,000/- 1,80,000- 60,000/- 40,000/- 1,80,000/- 1,/ 6,20,000 Fee for attending Audit Committee 50,000/- 60,000/- 1,/ 1,/ 60,000/- 1,/ 1,70,000 meetings Commission 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ Others 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ 1,/ II. Other Non-Executive Directors:- Particulars of Remuneration Name of Directors Total Amount ` $OO¿JXUHVLQ`) Mr. Ashank Desai Mr. Ketan Metha )HHIRU$WWHQGLQJERDUGPHHWLQJV 1,40,000/- 1,/ 1,40,000/- Fee for attending Audit Committee meetings 50,000/- 1,/ 50,000/- Commission 1,/ 1,/ 1,/ 2WKHUV 3HUTXLVLWHV%HQH¿WV 234,804 1,/ 234,804 C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD / MANAGER/WTD Sl. Particulars of Remuneration Key Managerial Personnel No. $OO¿JXUHVLQ`) Mr. Farid Kazani Mr. Bhagwant Bhargawe Total ` 1. Gross salary (a) Salary as per provisions contained in section 17(1) 7916634 2539316 10455949 of the Income-tax Act, 1961. E 9DOXHRISHUTXLVLWHVXV ,QFRPHWD[$FW 3057585 - 3057585 F 3UR¿WVLQOLHXRIVDODU\XQGHUVHFWLRQ ,QFRPH tax Act, 1961. 2 Stock Option (a) 17090 Stock Options at 2000 Stock Options - `SHUVKDUH granted at ` 179/- per E 6WRFN2SWLRQVDW share ` 261/- per share 3Sweat Equity --- 4 Commission --- DVRISUR¿W - others, specify… 5 Others, please specify &RQWULEXWLRQWR6XSHUDQQXDWLRQ)XQG 362,093 - 3,62,093 &RQWULEXWLRQWR3URYLGHQW)XQG 289,680 1,06,818 3,96,493 Performance Bonus 62,63,286 4,49,178 67,12,464 Total C 1,78,89,272 30,95,312 2,09,84,584 Disclosure as required Companies (Appointment and Remuneration) Managerial Personnel) Rules 2014.(Puruarnt to Rule 5 (1) Name of the Director & Remuneration Remuneration in % of increase in Ratio of the Remuneration of KMps In FY 2015 ` FY 2014 ` Remuneration Director to Median Remuneration of Employee of the Company Mr. Sudhakar Ram 1,19,40,337 1,24,23,374 -3.9% 20.79 Mr. Radhakrishnan Sundar 27,27,600 27,27,600 1,/ 4.75 Mr. Farid Kazani 1,78,89,272 1,0797524 65.7% 1RW$SSOLFDEOH Mr. Bhagwant Bhargawe 30,95,312 26,14427 18.40% 1RW$SSOLFDEOH 76 DIRECTORS’ REPORT (contd.) i) Percentage of increase in the median remuneration of employees in the Financial Year March 31, 2015- -3% LL (PSOR\HHVLQ0/7'3D\UROOHPSOR\HHVLQ0/7'8.%UDQFK± LLL ([SODQDWLRQ RQ WKH 5HODWLRQVKLS EHWZHHQ $YHUDJH LQFUHDVHG LQ UHPXQHUDWLRQDQG&RPSDQ\SHUIRUPDQFH 7KHDYHUDJHLQFUHDVHLQ UHPXQHUDWLRQZDV7KLVZDVDUULYHGDWDIWHUEHQFKPDUNLQJWKHVDODULHVRIWKHHPSOR\HHVZLWKSHHUFRPSDQLHVDFKLHYHPHQWRI &RPSDQ\7DUJHWVHWF7KH5HYHQXHVRIWKH&RPSDQ\LQFUHDVHGE\DQG1HWSUR¿WVE\LQYLVDYLV LY 5DWLRRIWKHUHPXQHUDWLRQRIWKHKLJKHVWSDLG'LUHFWRUWRWKDW(PSOR\HHVZKRDUHQRW'LUHFWRUEXWUHFHLYHGUHPXQHUDWLRQLQH[FHVVRI highest paid directors. Name of the highest Remuneration ` Name of the employee who receive remuneration Remuneration ` Ratio paid Director in excess of highest paid Director Mr. Sudhakar Ram 11,940,337 Mr. Farid Kazani 17,889,272 1.5 Mr. Vinay Rajadhakshya 2,1258850 1.8 Mr. Stefan Van Overtveldt 2,2705294 1.9 Mr. Benjamin Davison 18,334,015 1.54 v) Remuneration paid to all the Directors and KMPs is as per the remuneration policy of the Company. vi) Comparison of the remuneration of the Key Managerial Personnel against the Performance of the Company. The remuneration paid WR0U6XGKDNDU5DPDQG0U56XQGDUZDVEDVHGRQWKH(PSOR\PHQW$JUHHPHQWVHQWHUHGLQWRE\WKH&RPSDQ\ZLWKWKHP)XUWKHU WKHYDULDWLRQLQUHPXQHUDWLRQRI.H\0DQDJHULDOSHUVRQQHOZDVDUULYHGDWE\WKH&RPSDQ\EDVHGRQLQGXVWU\EHQFKPDUNVDQGWKH DFKLHYPHQWRILQGLYLGXDODQG&RPSDQ\7DUJHWVYLVDYLVWKH3ODQ7KH5HYHQXHVRIWKH&RPSDQ\LQFUHDVHGE\DQG1HWSUR¿WVE\ 176% in 2014-15 vis a vis 2013-14. YLL 9DULDWLRQV LQ WKH PDUNHW FDSLWDOL]DWLRQ RI WKH &RPSDQ\ DV WKH FORVLQJ GDWH RI WKH ¿QDQFLDO \HDU DQG SUHYLRXV ¿QDQFLDO \HDU DQG percentage increase over decrease in the market quotations of the shares of the company in comparison to the rate at which the &RPSDQ\FDPHRXWZLWKWKHODVWSXEOLFRIIHU As on March 31, 2015 As on March 31, 2014 Variations Market Capitalization of the Company 9,61,84,10,275 5,04,84,64,131 4,56,99,46,144/-, i.e. 90% Price Earning ratio 13.42 18.7 The Company had come out with a Follow-on Offering in 1996. It had issued shares of ` 10/- each at a premium of ` 180 per share. Adjusting for Stock-split and Bonus Issues, the price works out to ` 23.75 per share. The closing price of the Company share as on 31st March 2015 was ` 426.60. Thus the percentage increase works out to 1696%. viii) Average percentile increase made in the salaries of the Employees other than the Managerial personnel in the Financial Year 2015 was 4.7%, vis a vis reduction of 3.2% in the salaries of Managerial personnel L[ 7KHNH\SDUDPHWHUVIRUDQ\YDULDEOH&RPSRQHQWRIUHPXQHUDWLRQDYDLOHGE\WKH'LUHFWRUV 7KHVHDUH2UGHU%RRN5HYHQXHVDQG3UR¿WVEHIRUH,QWHUHVW'HSUHFLDWLRQDQG7D[ VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NIL 77 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) Annexure 3 DETAILS OF RELATED PARTY TRANSACTIONS $ &RPSDQ\KDVQRWHQWHUHGLQWRDQ\PDWHULDOFRQWUDFWVRUDUUDQJHPHQWVRUWUDQVDFWLRQVZKLFKDUHQRWDWDUP¶VOHQJWKEDVLV % 'LVFORVXUHRISDUWLFXODUVRIFRQWUDFWVDUUDQJHPHQWVHQWHUHGLQWRE\WKHFRPSDQ\ZLWKUHODWHGSDUWLHVUHIHUUHGWRLQVXEVHFWLRQ RIVHFWLRQ of the Companies Act, 2013 including certain arms length transactions under third proviso thereto 'HWDLOVRIPDWHULDOFRQWUDFWVRUDUUDQJHPHQWRUWUDQVDFWLRQVDWDUP¶VOHQJWKEDVLV D 1DPH V RIWKHUHODWHGSDUW\DQGQDWXUHRIUHODWLRQVKLS 0DVWHN/WGKDVHQWHUHGLQWR&RQWUDFWVZLWKLWVIROORZLQJVXEVLGLDULHV Mastek UK Ltd Majesco UK Ltd Majesco USA Majesco Software & Solutions Inc, USA Majesco Canada Ltd, Canada 0DVWHN$VLD3DFL¿F3WH/LPLWHG6LQJDSRUH Majesco Sdn Bhd, Malaysia Majesco Thailand Co. Ltd, Thailand 0LQH¿HOGV&RPSXWHUV/WG,QGLD Majesco Software and Solutions India Pvt Ltd, India E 1DWXUHRIFRQWUDFWVDUUDQJHPHQWVWUDQVDFWLRQV ,7 UHODWHGVHUYLFHV&RQWUDFWV (2) Secondment Services Contracts (3) Leave & License Agreements (c) Duration of the contracts / arrangements/transactions IT & related services and secondment Services contracts are for a duration of one year and are automatically renewed annually Leave & License Agreements are entered into for a period of 11 months (d) Salient terms of the contracts or arrangements or transactions including the value, if any: ,7 UHODWHG6HUYLFHVDQG6HFRQGPHQW6HUYLFHVDUHSURYLGHGE\0DVWHN/WGWRLWV2YHUVHDVVXEVLGLDULHVRQDQRQJRLQJEDVLV 2I¿FHVSDFHDW0DKDSHDQG$KPHGDEDGKDYHEHHQJLYHQRQ/HDYH OLFHQVHEDVLVIRUDSHULRGRIPRQWKVWRLWV,QGLDEDVHG6XEVLGLDULHV H 'DWH V RIDSSURYDOE\WKH%RDUGLIDQ\ ,7 UHODWHGVHUYLFHVDQG6HFRQGPHQWVHUYLFHV$JUHHPHQWVZLWKDOOWKH2YHUVHDVVXEVLGLDULHV H[FHSW0DMHVFR8./WG -XO\ IT & related services and Secondment services Agreements with Majesco UK Ltd – April 22, 2014 /HDYH /LFHQVH$JUHHPHQWZLWK0LQH¿HOGV&RPSXWHUV/WG±2FWREHU /HDYH OLFHQVH$JUHHPHQWZLWK0DMHVFR6RIZWDUH 6ROXWLRQV,QGLD3YW/WG±2FWREHU I $PRXQWSDLGDVDGYDQFHVLIDQ\ 1,/ Sudhakar Ram Managing Director & Group CEO S. Sandilya 1RQ([HFXWLYH&KDLUPDQ ,QGHSHQGHQW'LUHFWRU Farid Kazani Group CFO & Finance Director Bhagwant Bhargawe Company Secretary 0XPEDL$SULO 78 DIRECTORS’ REPORT (contd.) Annexure 4 SECRETARIAL AUDIT REPORT Form No. MR-3 [Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014] )RUWKH¿QDQFLDO\HDUHQGHGVW0DUFK To, 7KH0HPEHUV Mastek Limited :HKDYHFRQGXFWHGWKHVHFUHWDULDODXGLWRIWKHFRPSOLDQFHRIDSSOLFDEOHVWDWXWRU\SURYLVLRQVDQGWKHDGKHUHQFHWRJRRGFRUSRUDWHSUDFWLFHE\0DVWHN /LPLWHG KHUHLQDIWHUFDOOHGWKHFRPSDQ\ 6HFUHWDULDO$XGLWZDVFRQGXFWHGLQDPDQQHUWKDWSURYLGHGXVDUHDVRQDEOHEDVLVIRUHYDOXDWLQJWKHFRUSRUDWH conducts/statutory compliances and expressing our opinion thereon: %DVHGRQRXUYHUL¿FDWLRQRIWKH&RPSDQ\¶VERRNVSDSHUVPLQXWHERRNVIRUPVDQGUHWXUQV¿OHGDQGRWKHUUHFRUGVPDLQWDLQHGE\WKH&RPSDQ\DQGDOVR WKHLQIRUPDWLRQSURYLGHGE\WKH&RPSDQ\LWVRI¿FHUVDJHQWVDQGDXWKRUL]HGUHSUHVHQWDWLYHVGXULQJWKHFRQGXFWRIVHFUHWDULDODXGLWZHKHUHE\UHSRUW WKDWLQRXURSLQLRQWKHFRPSDQ\KDVGXULQJWKHDXGLWSHULRGFRYHULQJWKH¿QDQFLDO\HDUHQGHGRQVW0DUFKFRPSOLHGZLWKWKHVWDWXWRU\SURYLVLRQV OLVWHGKHUHXQGHUDQGDOVRWKDWWKH&RPSDQ\KDVSURSHU%RDUGSURFHVVHVDQGFRPSOLDQFHPHFKDQLVPLQSODFHWRWKHH[WHQWLQWKHPDQQHUDQGVXEMHFW to the reporting made hereinafter: :HKDYHH[DPLQHGWKHERRNVSDSHUVPLQXWHERRNVIRUPVDQGUHWXUQV¿OHGDQGRWKHUUHFRUGVPDLQWDLQHGE\0DVWHN/LPLWHG ³WKH&RPSDQ\´ IRUWKH ¿QDQFLDO\HDUHQGHGRQVW0DUFKDFFRUGLQJWRWKHSURYLVLRQVRI L 7KH&RPSDQLHV$FW WKH$FW DQGWKHUXOHVPDGHWKHUHXQGHU LL 7KH6HFXULWLHV&RQWUDFWV 5HJXODWLRQ $FW µ6&5$¶ DQGWKHUXOHVPDGHWKHUHXQGHU LLL 7KH'HSRVLWRULHV$FW DQGWKH5HJXODWLRQVDQG%\HODZVIUDPHGWKHUHXQGHU LY )RUHLJQ([FKDQJH0DQDJHPHQW$FW DQGWKHUXOHVDQGUHJXODW LRQVPDGHWKHUHXQGHUWRWKHH[WHQWRI2YHUVHDV'LUHFW,QYHVWPHQWDVDSSOLFDEOH WR0DVWHN/LPLWHGLQ,QGLD Y 7KHIROORZLQJ5HJXODWLRQVDQG*XLGHOLQHVSUHVFULEHGXQGHUWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FW µ6(%,$FW¶ D 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6XEVWDQWLDO$FTXLVLWLRQRI6KDUHVDQG7DNHRYHUV 5HJXODWLRQV E 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 3URKLELWLRQRI,QVLGHU7UDGLQJ 5HJXODWLRQV F 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD ,VVXHRI&DSLWDODQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV G 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD (PSOR\HH6WRFN2SWLRQ6FKHPHDQG(PSOR\HH6WRFN3XUFKDVH6FKHPH *XLGHOLQHV H 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD ,VVXHDQG/LVWLQJRI'HEW6HFXULWLHV 5HJXODWLRQV (f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents ) Regulations 1993 regarding Companies Act dealing with the company. J 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 'HOLVWLQJRI(TXLW\6KDUHV 5HJXODWLRQV DQG K 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD %X\EDFNRI6HFXULWLHV 5HJXODWLRQV YL :HKDYHUHOLHGRQWKHUHSUHVHQWDWLRQPDGHE\WKH&RPSDQ\DQGLW VRI¿FHUVIRUV\VWHPVDQGPHFKDQLVPIRUPHGE\WKH&RPSDQ\IRUFRPSOLDQFHV XQGHURWKHUDSSOLFDEOH$FWV/DZVDQG5HJXODWLRQVWRWKH&RPSDQ\7KHOLVWRIPDMRUKHDGVJURXSVRI$FWVODZVDQG5HJXODWLRQVDVDSSOLFDEOHWR WKH&RPSDQ\DUHOLVWHGEHORZ D 7KH,QIRUPDWLRQ7HFKQRORJ\$FW E 7KH6SHFLDO(FRQRPLF=RQH$FW F 3ROLF\UHODWLQJWR6RIWZDUH7HFKQRORJ\3DUNVRI,QGLDDQGLWVUHJXODWLRQV G 7KH7UDGH0DUNV$FW H ,QGLDQ6WDPS$FW I 1HJRWLDEOH,QVWUXPHQWV$FW g. Registration Act K$OODSSOLFDEOH/DERXU/DZVDQGRWKHULQFLGHQWDOODZVUHODWHGWRODERXUDQGHPSOR\HHVDSSRLQWHGE\WKH&RPSDQ\HLWKHURQLWVSD\UROORURQ FRQWUDFWXDOEDVLVDVUHODWHGWRZDJHVJUDWXLW\SURYLGHQWIXQG(6,&FRPSHQVDWLRQHWF i. Income Tax Act and other Indirect Tax laws :HKDYHDOVRH[DPLQHGFRPSOLDQFHZLWKWKHDSSOLFDEOHFODXVHVRIWKHIROORZLQJ L 6HFUHWDULDO6WDQGDUGVLVVXHGE\7KH,QVWLWXWHRI&RPSDQ\6HFUHWDULHVRI,QGLD LL 7KH/LVWLQJ$JUHHPHQWVHQWHUHGLQWRE\WKH&RPSDQ\ZLWK%6(/LPLWHGDQG1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG 7RWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIGXULQJWKHSHULRGXQGHUUHYLHZWKHFRPSDQ\KDVJHQHUDOO\FRPSOLHGZLWKWKHSURYLVLRQVRIWKH$FW5XOHV 5HJXODWLRQV*XLGHOLQHV6WDQGDUGVHWFPHQWLRQHGDERYH 79 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) We further report that 7KH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\LVGXO\FRQVWLWXWHGZLWKSURSHUEDODQFHRI 7ZR ([HFXWLYH'LUHFWRUV 7ZR 1RQ([HFXWLYH'LUHFWRUVDQG 6 (Six) Independent Directors.. (there was no change in the composition of Board of Directors) Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent in advance and a system exists IRUVHHNLQJDQGREWDLQLQJIXUWKHULQIRUPDWLRQDQGFODUL¿FDWLRQVRQWKHDJHQGDLWHPVEHIRUHWKHPHHWLQJDQGIRUPHDQLQJIXOSDUWLFLSDWLRQDWWKHPHHWLQJ :KLOH0DMRULW\GHFLVLRQLVFDUULHGWKURXJKWKHGLVVHQWLQJPHPEHUV¶YLHZVLIDQ\DUHFDSWXUHGDQGUHFRUGHGDVSDUWRIWKHPLQXWHV We further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to PRQLWRUDQGHQVXUHFRPSOLDQFHZLWKDSSOLFDEOHODZVUXOHVUHJXODWLRQVDQGJXLGHOLQHV :H IXUWKHU UHSRUW WKDW GXULQJ WKH DXGLW SHULRG WKH FRPSDQ\ KDV FRRSHUDWHG ZLWK XV DQG KDYH SURGXFHG EHIRUH XV DOO WKH UHTXLUHG IRUPV LQIRUPDWLRQFODUL¿FDWLRQVUHWXUQVDQGRWKHUGRFXPHQWVDVUHTXLUHGIRUWKHSXUSRVHRIRXUDXGLW :HIXUWKHUUHSRUWWKDWGXULQJWKHSHULRGXQGHUUHYLHZWKHFRPSDQ\KDVLQIRUPHGXVWKDWLWLVLQWKHSURFHVVRIGHPHUJHURILWVLQVXUDQFHEXVLQHVV IURPLWVSUHVHQWEXVLQHVVDFWLYLWLHVIRUZKLFKD&RXUWFRQYHQHGPHHWLQJLQSXUVXDQFHRIWKHGHPHUJHUZDVKHOGRQWK0DUFK Signature: V Sundaram 1DPHRI&RPSDQ\6HFUHWDU\LQSUDFWLFH)LUP 3ODFH 0XPEDL )&61R 'DWH $SULO &31R 80 DIRECTORS’ REPORT (contd.) Annexure 5 REPORT ON CSR ACTIVITIES/INITIATIVES [Pursuant to Section 135 of the Act & Rules made thereunder] Annual Report 2015 - CSR Board Report: $EULHIRXWOLQHRIWKHFRPSDQ\¶V&65SROLF\LQFOXGLQJRYHUYLHZ RISURMHFWVRUSURJUDPVSURSRVHGWREHXQGHUWDNHQDQGDUHIHUHQFHWRWKHZHEOLQN to the CSR policy and projects or programmes. 7KH&65SROLF\LVEHLQJGHYHORSHGIRUWKHRUJDQLVDWLRQWRFRPSO\ZLWKWKHSURYLVLRQVRIVHFWLRQRIWKH&RPSDQLHV$FWDQG&RPSDQLHV &RUSRUDWH6RFLDO5HVSRQVLELOLW\3ROLF\ 5XOHV:HDW0DVWHNDUHFRPPLWWHGWRVSHQGLQJXSWRRIWKHDYHUDJHQHWSUR¿WIRUWKHSUHFHGLQJ WKUHH¿QDQFLDO\HDUVRQ&65SURMHFWVRUSURJUDPPHVUHODWHGWRDFWLYLWLHVVSHFL¿HGLQ6FKHGXOH9,,WRWKH$FWRUVXFKDFWLYLWLHVDVPD\EHQRWL¿HG IURPWLPHWRWLPH$&65FRPPLWWHHZDVFRQVWLWXWHGDVSHUERDUGUHVROXWLRQ1R$GDWHGWK$SULOWRPHHWWKHUHTXLUHPHQWVRIWKH$FW 7KHZHEOLQNLVJLYHQEHORZ http://www.mastek.com/images/pdf/csr-policy/Final-CSR-Policy-Document-04-08-2014.pdf 2. The Composition of the CSR Committee: a. Ms. Priti Rao (Independent Director) E 0U5DMHQGUD6LVRGLD ,QGHSHQGHQW'LUHFWRU c. Mr. Ashank Desai ( Director) d. Mr. Sudhakar Ram (Managing Director and CEO) $YHUDJHQHWSUR¿WRIWKHFRPSDQ\IRUODVWWKUHH¿QDQFLDO\HDUV` 2392 lakhs 3UHVFULEHG&65([SHQGLWXUH WZRSHUFHQW2IWKHDPRXQWDVLQLWHPDERYH ` 47.84 laks 'HWDLOVRI&65VSHQWGXULQJWKH¿QDQFLDO\HDU 7RWDODPRXQWWREHVSHQWIRUWKH¿QDQFLDO\HDU /DNKV LQFOXGLQJ` 17.64 lakhs towards Salary & Administrative expenses of Mastek Foundation) D $PRXQWXQVSHQWLIDQ\ 1LO E 0DQQHULQZKLFKWKHDPRXQWVSHQWGXULQJWKH¿QDQFLDO\HDULVGHWDLOHGEHORZ Sr. Projects/Activities Sector Locations Amount Amount Cumulative Amount No. Outlay Spent Expenditure spent: Direct (Budget) on the up to or through Project or project or reporting implementing Programs programs period agency* wise Districts (State) ` Lakhs ` Lakhs ` Lakhs ` Lakhs 1. Supporting two pre-school Education 7XUEKH1DYL 28.48 28.48 28.48 28.48 HVWDEOLVKPHQW DQG VXSSRUW 0XPEDL.DUYHHU centres in for 350 migrant children, Kolhapur, Badlapur, 6SRQVRUVKLS RI GLVDEOHG 1DYL0XPEDL,QGLUD students, for their education, 1DJDU%DJDGH1DYL corrective surgeries, appliances 0XPEDL%DODJUDP (wheel chairs, calipers etc.), Poyand Maharashtra, FRPIRUWDEOHORGJLQJIXOOERDUGLQJ 0XPEDL $OLEDXJ transport, sports & cultural 0DKDUDVKWUD activities, 24 Parganas, West Supporting the shelter home for Bengal. PXOWLSOH GLVDEOHG SHRSOH LQ IRUP of vocational training, residential facilities, holistical development 1000 children from the Indira 1DJDU 6OXP FRPPXQLW\ E\ getting them to evolve a positive DWWLWXGHDQGEHKDYLRULQWKUHHOLYH values ((Education, Health and Gender Equality), Infrastructure GHYHORSPHQW RI FKLOGUHQ¶V KRPH YRFDWLRQDO7UDLQLQJ FKLOGSURWHFWLRQ DQG DOO DURXQG GHYHORSPHQW DOO round development of children YXOQHUDEOHWRH[SORLWDWLRQ 81 ANNUAL REPORT 2014-2015 DIRECTORS’ REPORT (contd.) Sr. Projects/Activities Sector Locations Amount Amount Cumulative Amount No. Outlay Spent Expenditure spent: Direct (Budget) on the up to or through Project or project or reporting implementing Programs programs period agency* wise Districts (State) ` Lakhs ` Lakhs ` Lakhs ` Lakhs 2. Supporting the Mortality Control Health Melgahat Amravati 16.63 16.63 16.63 16.63 Program in Economically Care and District, Wada Productive Age Group (16-60 Eradicating District Maharashtra, years) program. Reaching out to Malnutrition Gandhinagar WULEDOSHRSOH'LVWULEXWLRQRI *XMDUDW0XPEDL ZDWHU ¿OWHUV LQ WKH YLOODJHV in Wada district and setting up of toilets in 60 households, Supporting the midday meal programme for 667 children at Gandhinagar, Gujarat, Supporting the Thalassemia Prevention program, 3. 6XSSRUWLQJ RI HVWDEOLVKPHQW Women .KDUJKDU1DYL 17.65 17.65 17.65 17.65 1DXQLKDO D VKHOWHU KRPH Empowerment 0XPEDL1HUDO for 35 girls, Supporting of Raigad district. HVWDEOLVKPHQW 6XUDNVKD D open shelter home for 19 girls in 4. Maintenance of trees at Bhavale Environmental Bhiwandi, 4.56 4.56 4.56 4.56 Lonad forest area, VXVWDLQDELOLW\ Maharashtra, Thane, Providing speciality surgeries to and animal Maharashtra street animals. welfare 'HWDLOV LPSOHPHQWLQJ $JHQF\ $DUPEK 1DYL 0XPEDL 7KH $NVKD\ 3DWUD )RXQGDWLRQ $DVDUD 1HUDO 7KDQH GLVWULFW +DUL\DOL 7KDQH GLVWULFW Helpers for Handicapped Kolhapur Maharashtra, Parivaar Education Soceity,24 Parganas West Bengal, Magic Bus India Foundation, 0DKDQ7UXVW0HOJKDW3UDVDG&KLNWVD:DGDGLVWULFW0DKDUDVKWUD3UHUQD0XPEDL0DKDUDVKWUD6RFLDO$FWLRQIRU0DQSRZHU&UHDWLRQ3XQH 0DKDUDVKWUD6DQJRSLWD%DGODSXU0DKDUDVKWUD63&$7KDQH626±&KLOGUHQ¶V9LOODJH$OLEDXJ0DKDUDVKWUD0DKDUDVKWUD7KLQN)RXQGDWLRQ 0XPEDL0DKDUDVKWUD.KHUZDGL6RFLDO:HOIDUH$JHQF\0DKDUDVKWUD ,QFDVHWKHFRPSDQ\KDVIDLOHGWRVSHQGWKHWZRSHUFHQWRIWKH DYHUDJHQHWSUR¿WRIWKHODVWWKUHH¿QDQFLDO\HDUVRUDQ\SDUWWKHUHRIWKHFRPSDQ\ shall provide the reasons for not spending the amount in its Board report. 1RWDSSOLFDEOH $UHVSRQVLELOLW\VWDWHPHQWRIWKH&65&RPPLWWHHWKDWWKHLPSOHP HQWDWLRQDQGPRQLWRULQJRI&653ROLF\LVLQFRPSOLDQFHZLWK&65REMHFWLYHVDQG Policy of the company. 7KH&65SURMHFWVDUHPRQLWRUHGRQDTXDUWHUO\EDVLV7KHPRQLWRULQJUHSRUWKDVEHHQSUHSDUHGDVSHUWKHSROLF\7KHPRQLWRULQJRISURMHFWVKDV EHHQGRQHNHHSLQJLQPLQGWKH&65REMHFWLYHVRIWKHFRPSDQ\ Ms. Priti Rao Ashank Desai Sudhakar Ram &KDLUSHUVRQ 0HPEHU 0HPEHU 82 MASTEK LIMITED AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS OF MASTEK LIMITED Independent Auditors’ Report statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the To the Members of Mastek Limited accounting principles generally accepted in India, of the state of Report on the Standalone Financial Statements DIIDLUVRIWKH&RPSDQ\DVDW0DUFKDQGLWVSUR¿WDQGLWV FDVKÀRZVIRUWKH\HDUHQGHGRQWKDWGDWH :HKDYHDXGLWHGWKHDFFRPSDQ\LQJVWDQGDORQH¿QDQFLDOVWDWHPHQWV of Mastek Limited (“the Company”), which comprise the Balance Report on Other Legal and Regulatory Requirements 6KHHWDVDW0DUFKWKH6WDWHPHQWRI3UR¿WDQG/RVVWKH $VUHTXLUHGE\µWKH&RPSDQLHV $XGLWRU¶V5HSRUW 2UGHU¶ LVVXHG Cash Flow Statement for the year then ended, and a summary of the by the Central Government of India in terms of sub-section (11) of VLJQL¿FDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQ section 143 of the Act (hereinafter referred to as the “Order”), and Management’s Responsibility for the Standalone Financial Statements on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and 2. The Company’s Board of Directors is responsible for the matters stated H[SODQDWLRQVJLYHQWRXVZHJLYHLQWKH$QQH[XUHDVWDWHPHQWRQWKH in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect PDWWHUVVSHFL¿HGLQSDUDJUDSKVDQGRIWKH2UGHU WRWKHSUHSDUDWLRQRIWKHVHVWDQGDORQH¿QDQFLDOVWDWHPHQWVWRJLYH DWUXHDQGIDLUYLHZRIWKH¿QDQFLDOSRVLWLRQ¿QDQFLDOSHUIRUPDQFH 10. As required by Section 143 (3) of the Act, we report that: DQGFDVKÀRZVRIWKH&RPSDQ\LQDFFRUGDQFHZLWKWKHDFFRXQWLQJ principles generally accepted in India, including the Accounting (a) We have sought and obtained all the information and 6WDQGDUGV VSHFL¿HG XQGHU 6HFWLRQ RI WKH $FW UHDG ZLWK 5XOH H[SODQDWLRQV ZKLFK WR WKH EHVW RI RXU NQRZOHGJH DQG EHOLHI RIWKH&RPSDQLHV $FFRXQWV 5XOHV7KLVUHVSRQVLELOLW\DOVR were necessary for the purposes of our audit. includes maintenance of adequate accounting records in accordance (b) In our opinion, proper books of account as required by law with the provisions of the Act for safeguarding of the assets of have been kept by the Company so far as it appears from our the Company and for preventing and detecting frauds and other H[DPLQDWLRQRIWKRVHERRNV irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and F 7KH %DODQFH 6KHHW WKH 6WDWHPHQW RI 3UR¿W DQG /RVV DQG prudent; and design, implementation and maintenance of adequate WKH &DVK )ORZ 6WDWHPHQW GHDOW ZLWK E\ WKLV 5HSRUW DUH LQ LQWHUQDO¿QDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJ agreement with the books of account. the accuracy and completeness of the accounting records, relevant WRWKHSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHVWDQGDORQH¿QDQFLDO G ,QRXURSLQLRQWKHDIRUHVDLGVWDQGDORQH¿QDQFLDOVWDWHPHQWV statements that give a true and fair view and are free from material FRPSO\ZLWKWKH$FFRXQWLQJ6WDQGDUGVVSHFL¿HGXQGHU6HFWLRQ misstatement, whether due to fraud or error. RIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHV Auditor’s Responsibility (e) On the basis of the written representations received from the 2XU UHVSRQVLELOLW\ LV WR H[SUHVV DQ RSLQLRQ RQ WKHVH VWDQGDORQH directors as on March 31, 2015 taken on record by the Board ¿QDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW RI'LUHFWRUVQRQHRIWKHGLUHFWRUVLVGLVTXDOL¿HGDVRQ0DUFK :HKDYHWDNHQLQWRDFFRXQWWKHSURYLVLRQVRIWKH$FWDQGWKH5X OHV 31, 2015 from being appointed as a director in terms of Section made thereunder including the accounting standards and matters 164 (2) of the Act. which are required to be included in the audit report. (f) With respect to the other matters to be included in the Auditor’s 5. We conducted our audit in accordance with the Standards on Auditing 5HSRUWLQDFFRUGDQFHZLWK5XOHRIWKH&RPSDQLHV $XGLWDQG VSHFL¿HG XQGHU 6HFWLRQ RI WKH $FW DQG RWKHU DSSOLFDEOH $XGLWRUV 5XOHVLQRXURSLQLRQDQGWRWKHEHVWRIRXU authoritative pronouncements issued by the Institute of Chartered knowledge and belief and according to the information and Accountants of India. Those Standards and pronouncements require H[SODQDWLRQVJLYHQWRXV that we comply with ethical requirements and plan and perform the i. The Company has disclosed the impact, if any, of pending audit to obtain reasonable assurance about whether the standalone OLWLJDWLRQVDVDW0DUFKRQLWV¿QDQFLDOSRVLWLRQ ¿QDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW LQLWVVWDQGDORQH¿QDQFLDOVWDWHPHQWV±5HIHUQRWH 6. An audit involves performing procedures to obtain audit evidence ii. The Company has made provision as at March DERXWWKHDPRXQWVDQGWKHGLVFORVXUHVLQWKHVWDQGDORQH¿QDQFLDO statements. The procedures selected depend on the auditor’s 31, 2015, as required under the applicable law or judgment, including the assessment of the risks of material accounting standards, for material foreseeable losses, PLVVWDWHPHQWRIWKHVWDQGDORQH¿QDQFLDOVWDWHPHQWVZKHWKHUGXHWR if any, on long-term contracts including derivative fraud or error. In making those risk assessments, the auditor considers FRQWUDFWV±5HIHUQRWH LQWHUQDO¿QDQFLDOFRQWUROUHOHYDQWWRWKH&RPSDQ\¶VSUHSDUDWLRQRIWKH iii. There has been no delay in transferring amounts, VWDQGDORQH¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZLQRUGHU required to be transferred, to the Investor Education and to design audit procedures that are appropriate in the circumstances, Protection Fund by the Company during the year ended EXW QRW IRU WKH SXUSRVH RI H[SUHVVLQJ DQ RSLQLRQ RQ ZKHWKHU WKH March 31, 2015. &RPSDQ\KDVLQSODFHDQDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVV\VWHP RYHU ¿QDQFLDO UHSRUWLQJ DQG WKH RSHUDWLQJ HIIHFWLYHQHVV RI VXFK controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating For Price Waterhouse Chartered Accountants LLP WKHRYHUDOOSUHVHQWDWLRQRIWKHVWDQGDORQH¿QDQFLDOVWDWHPHQWV )LUP5HJLVWUDWLRQ1XPEHU 11 (Formerly Price Waterhouse, :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXI¿FLHQ WDQG )LUP5HJLVWUDWLRQ1XPEHU 1 appropriate to provide a basis for our audit opinion on the standalone ¿QDQFLDOVWDWHPHQWV Opinion Pradip Kanakia 8. In our opinion and to the best of our information and according Mumbai Partner WRWKHH[SODQDWLRQVJLYHQWRXVWKHDIRUHVDLGVWDQGDORQH¿QDQFLDO $SULO 0HPEHUVKLS1XPEHU 84 ANNEXURE TO INDEPENDENT AUDITORS’ REPORT 5HIHUUHGWRLQSDUDJUDSK RIWKH,QGHSHQGHQW$XGLWRUV¶5HSRUWRIHYHQ RI¿[HGDVVHWVDQGIRUWKHVDOHRIJRRGVDQGVHUYLFHV)XUWKHURQWKH GDWHWRWKHPHPEHUVRI0DVWHN/LPLWHGRQWKH¿QDQFLDOVWDWHPHQWVDVRI EDVLVRIRXUH[DPLQDWLRQRIWKHERRNVDQGUHFRUGVRIWKH&RPSDQ\DQG and for the year ended March 31, 2015. DFFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV ZH KDYH neither come across, nor have been informed of, any continuing failure i. (a) The Company is maintaining proper records showing full to correct major weaknesses in the aforesaid internal control system. SDUWLFXODUVLQFOXGLQJTXDQWLWDWLYHGHWDLOVDQGVLWXDWLRQRI¿[HG assets. Y7KH&HQWUDO*RYHUQPHQWRI,QGLDKDVQRWVSHFL¿HGWKHPDLQWHQDQF H of cost records under sub-section (1) of Section 148 of the Act for E 7KH ¿[HG DVVHWV RI WKH &RPSDQ\ KDYH EHHQ SK\VLFDOO\ any of the products of the Company. YHUL¿HGE\WKH0DQDJHPHQWGXULQJWKH\HDUDQGQRPDWHULDO GLVFUHSDQFLHVKDYHEHHQQRWLFHGRQVXFKYHUL¿FDWLRQ,QRXU YL D $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVDQG RSLQLRQWKHIUHTXHQF\RIYHUL¿FDWLRQLVUHDVRQDEOH WKHUHFRUGVRIWKH&RPSDQ\H[DPLQHGE\XVLQRXURSLQLRQ the Company is regular in depositing the undisputed statutory ii. The Company is in the business of rendering services, and dues, including provident fund, employees’ state insurance, consequently, does not hold any inventory. Therefore, the provisions LQFRPHWD[VDOHVWD[ZHDOWKWD[VHUYLFHWD[GXW\RIFXVWRPV of Clause 3(ii) of the said Order are not applicable to the Company. YDOXH DGGHG WD[ FHVV DQG RWKHU PDWHULDO VWDWXWRU\ GXHV DV iii. The Company has not granted any loans, secured or unsecured, to applicable, with the appropriate authorities. FRPSDQLHV¿UPVRURWKHUSDUWLHVFRYHUHGLQWKHUHJLVWHUPDLQWDLQHG E $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVDQG under Section 189 of the Act. Therefore, the provisions of Clause WKHUHFRUGVRIWKH&RPSDQ\H[DPLQHGE\XVWKHUHDUHQRGXHV 3(iii), (iii)(a) and (iii)(b) of the said Order are not applicable to the RILQFRPHWD[ZHDOWKWD[VHUYLFHWD[GXW\RIFXVWRPVDQG Company. cess which have not been deposited on account of any dispute. LY,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLR QVJLYHQ 7KHSDUWLFXODUVRIGXHVRIVDOHVWD[DQGYDOXHDGGHGWD[DVDW to us, there is an adequate internal control system commensurate with March 31, 2015 which have not been deposited on account of the size of the Company and the nature of its business for the purchase a dispute, are as follows; 1DPHRIWKHVWDWXWH 1DWXUHRIGXHV Amount in Period to which the amount Forum where the dispute is ` Lakhs relates pending The Maharashtra Value Demand of VAT on 152.34 F.Y. 09-10 Joint Commissioner of $GGHG7D[$FW provision of software (including interest of 6DOHVWD[ $SSHDOV services including interest ` 57.14) Mazgaon 7KH&HQWUDO6DOHV7D[$FW Demand of CST on 21.43 F.Y. 09-10 Joint Commissioner of 1956 provision of software (including interest of 6DOHVWD[ $SSHDOV services including interest ` 8.04) Mazgaon (c) The amount required to be transferred to Investor Education [7KH &RPSDQ\ KDV QRW UDLVHG DQ\ WHUP ORDQV $FFRUGLQJO\ WKH and Protection Fund has been transferred within the stipulated SURYLVLRQV RI &ODXVH [L RI WKH 2UGHU DUH QRW DSSOLFDEOH WR WKH time in accordance with the provisions of the Companies Act, Company. 1956 and the rules made thereunder. [L'XULQJWKHFRXUVHRIRXUH[DPLQDWLRQRIWKHERRNVDQGUHFRUGVR I vii. The Company has no accumulated losses as at the end of the the Company, carried out in accordance with the generally accepted ¿QDQFLDO\HDUDQGLWKDVQRWLQFXUUHGDQ\FDVKORVVHVLQWKH¿QDQFLDO auditing practices in India, and according to the information and \HDUHQGHGRQWKDWGDWHRULQWKHLPPHGLDWHO\SUHFHGLQJ¿QDQFLDO H[SODQDWLRQVJLYHQWRXVZHKDYHQHLWKHUFRPHDFURVVDQ\LQVWDQFH year. of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the YLLL$FFRUGLQJWRWKHUHFRUGVRIWKH&RPSDQ\H[DPLQHGE\XVDQGWKH Management. LQIRUPDWLRQ DQG H[SODQDWLRQ JLYHQ WR XV WKH &RPSDQ\ KDV QRW GHIDXOWHGLQUHSD\PHQWRIGXHVWRDQ\¿QDQFLDOLQVWLWXWLRQRUEDQNRU For Price Waterhouse Chartered Accountants LLP debenture holders as at the balance sheet date. )LUP5HJLVWUDWLRQ1XPEHU 11 )RUPHUO\3ULFH:DWHUKRXVH)LUP5HJLVWUDWLRQ1XPEHU 1 L[,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLR QV given to us, the terms and conditions of the guarantees given by WKH &RPSDQ\ IRU ORDQV WDNHQ E\ RWKHUV IURP EDQNV RU ¿QDQFLDO Pradip Kanakia institutions during the year, are not prejudicial to the interest of the Mumbai Partner Company. $SULO 0HPEHUVKLS1XPEHU 85 ANNUAL REPORT 2014-2015 BALANCE SHEET AS AT MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) As at As at Note March 31, 2015 March 31, 2014 EQUITY AND LIABILITIES Shareholders’ funds Share capital 3 1,127.33 1,108.03 5HVHUYHVDQGVXUSOXV 4 42,655.58 33,229.44 43,782.91 34,337.47 Non-current liabilities Long-term borrowings 5 85.66 135.42 Long-term provisions 6 1,206.12 1,754.32 Current liabilities Trade payables 7 604.30 278.77 Other current liabilities 8 4,675.56 6,518.78 Short-term provisions 9 1,062.44 1,850.90 Total 51,416.99 44,875.66 ASSETS Non-current assets )L[HGDVVHWV Tangible assets 10 (i) 6,141.71 6,720.15 Intangible assets 10 (ii) 785.54 1,061.06 Capital work-in-progress 131.10 33.66 1RQFXUUHQWLQYHVWPHQWV 11 15,227.45 13,655.00 'HIHUUHGWD[DVVHWV 12 1,926.43 1,882.15 Long-term loans and advances 13 4,840.09 6,063.42 Other non-current assets 14 309.58 26.46 Current assets Current investments 15 5,121.20 8,140.00 Trade receivables 16 7,464.04 3,368.78 Cash and bank balances 17 4,978.89 1,730.73 Short-term loans and advances 18 1,106.04 676.67 Other current assets 19 3,384.92 1,517.58 Total 51,416.99 44,875.66 6XPPDU\RIVLJQL¿FDQWDFFRXQWLQJSROLFLHV 2 Contingent liabilities, capital and other commitments 20, 21 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHVH¿QDQFLDOVWDWHPHQWV In terms of our report of even date For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board )LUP5HJLVWUDWLRQ1XPEHU 11 )RUPHUO\3ULFH:DWHUKRXVH)LUP5HJLVWUDWLRQ1XPEHU 1 Pradip Kanakia Sudhakar Ram Partner Managing Director and Group CEO 0HPEHUVKLS1XPEHU S. Sandilya 1RQ([HFXWLYH&KDLUPDQDQG,QGHSHQGHQW'LUHFWRU Mumbai, April 22, 2015 Farid Kazani Group CFO and Finance Director Bhagwant Bhargawe Company Secretary Mumbai, April 22, 2015 86 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) Year ended Year ended Note March 31, 2015 March 31, 2014 5HYHQXHIURPRSHUDWLRQV 22 66,511.97 55,057.34 Other income 23 2,305.40 2,129.94 Total Revenue 68,817.37 57,187.28 ([SHQVHV (PSOR\HHEHQH¿WVH[SHQVHV 24 37,684.24 32,524.74 Finance costs 25 27.43 26.87 'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVHV 26 2,702.38 2,566.34 2WKHUH[SHQVHV 27 21,085.46 17,241.90 Total Expenses 61,499.51 52,359.85 3UR¿WEHIRUHH[FHSWLRQDOLWHPVDQGWD[ 7,317.86 4,827.43 ([FHSWLRQDOLWHPV JDLQ ORVVQHW 28 (494.95) 1,555.01 3UR¿WEHIRUHWD[ 7,812.81 3,272.42 3UR¿WIURPFRQWLQXLQJRSHUDWLRQVEHIRUHWD[ 5,905.95 2,145.20 7D[H[SHQVHIURPFRQWLQXLQJRSHUDWLRQV &XUUHQWWD[ 1,340.94 739.64 /HVV 0LQLPXPDOWHUQDWHWD[FUHGLWHQWLWOHPHQW – (91.54) 1HWFXUUHQWWD[ 1,340.94 648.10 'HIHUUHGWD[ FUHGLW FKDUJH (86.69) 260.78 ,QFRPHWD[UHIXQGZULWHEDFNIRUHDUOLHU\HDUV (1,527.60) (716.71) 3UR¿WIURPFRQWLQXLQJRSHUDWLRQVDIWHUWD[ 6,179.30 1,953.03 3UR¿WIURPGLVFRQWLQXLQJRSHUDWLRQVEHIRUHWD[ 44 1,906.86 1,127.22 7D[H[SHQVHIURPGLVFRQWLQXLQJRSHUDWLRQV 647.41 383.14 3UR¿WIURPGLVFRQWLQXLQJRSHUDWLRQVDIWHUWD[ 1,259.45 744.08 3UR¿WIRUWKH\HDU 7,438.75 2,697.11 Earnings per equity share 29 Basic (Face value of ` 5 each) ` 33.33 ` 10.98 Diluted (Face value of ` 5 each) ` 31.75 ` 10.84 6XPPDU\RIVLJQL¿FDQWDFFRXQWLQJSROLFLHV 2 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHVH¿QDQFLDOVWDWHPHQWV In terms of our report of even date For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board )LUP5HJLVWUDWLRQ1XPEHU 11 )RUPHUO\3ULFH:DWHUKRXVH)LUP5HJLVWUDWLRQ1XPEHU 1 Pradip Kanakia Sudhakar Ram Partner Managing Director and Group CEO 0HPEHUVKLS1XPEHU S. Sandilya 1RQ([HFXWLYH&KDLUPDQDQG,QGHSHQGHQW'LUHFWRU Mumbai, April 22, 2015 Farid Kazani Group CFO and Finance Director Bhagwant Bhargawe Company Secretary Mumbai, April 22, 2015 87 ANNUAL REPORT 2014-2015 CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) Year ended Year ended March 31, 2015 March 31, 2014 &DVKÀRZVIURPRSHUDWLQJDFWLYLWLHV 3UR¿WEHIRUHH[FHSWLRQDOLWHPDQGWD[LQFOXGLQJGLVFRQWLQXLQJRSHUDWLRQV 7,317.86 4,827.43 $GMXVWPHQWVIRU Interest income (537.57) (389.40) 5HYHUVDORIDFFUXHGUHYHQXH 79.83 ± (PSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHV 13.39 ± ,QWHUHVWRQ¿QDQFHOHDVH 21.63 20.66 Depreciation and amortisation 2,702.38 2,566.34 Provision for doubtful debts and loans and advances 220.30 78.55 Bad debts written off 10.79 0.28 5HYHUVDORISURYLVLRQIRUFRVWRYHUUXQRQFRQWUDFWVQHW (1.92) (124.63) Dividend from subsidiary (820.88) (1,143.67) 3UR¿WRQVDOHRI¿[HGDVVHWQHW (14.85) (0.56) 3UR¿WRQVDOHRIFXUUHQWLQYHVWPHQWV (789.18) (435.79) 2SHUDWLQJSUR¿WEHIRUHZRUNLQJFDSLWDOFKDQJHV 8,201.78 5,399.21 ,QFUHDVH 'HFUHDVHLQWUDGHUHFHLYDEOHV (4,326.35) 2,206.51 ,QFUHDVH 'HFUHDVHLQORDQVDQGDGYDQFHVDQGRWKHUFXUUHQWDQGQRQFXUUHQWDVVHWV (2,394.20) 1,150.40 'HFUHDVH ,QFUHDVHLQWUDGHSD\DEOHVRWKHUOLDELOLWLHVDQGSURYLVLRQV (223.88) 838.12 Cash generated from operations 1,257.35 9,594.24 ,QFRPHWD[HVUHIXQGVUHFHLYHG SDLG QHW 280.11 (703.21) 1HWFDVKJHQHUDWHGIURPRSHUDWLQJDFWLYLWLHVEHIRUHH[FHSWLRQDOLWHPV 1,537.46 8,891.03 $PRXQWSDLGIRUUHVWUXFWXULQJH[SHQVHV (199.59) ± $PRXQWSDLGIRUGHPHUJHUH[SHQVHV (344.45) ± 1HWFDVKJHQHUDWHGIURPRSHUDWLQJDFWLYLWLHV 993.42 8,891.03 &DVKÀRZVIURPLQYHVWLQJDFWLYLWLHV Proceeds from sale of tangible assets 60.88 2.61 Purchase of tangible and intangible assets, net of capital work-in-progress capitalised (1,985.46) (1,825.15) Interest received 583.03 361.61 Dividend from subsidiary 820.88 1,143.67 Investment in subsidiaries (3,029.79) ± Sale proceeds of current investments 53,204.80 53,032.99 ,QYHVWPHQW 5HDOLVDWLRQRI¿[HGGHSRVLWVKDYLQJPDWXULW\RYHUWKUHHPRQWKV (3,850.00) 999.00 Purchase of current investments (49,396.82) (57,037.20) 1HWFDVKXVHGLQLQYHVWLQJDFWLYLWLHVEHIRUHH[FHSWLRQDOLWHPV (3,592.48) (3,322.47) Proceeds from sale of investments in subsidiaries 2,482.41 ± 1HWFDVKXVHGLQLQYHVWLQJDFWLYLWLHV (1,110.07) (3,322.47) &DVKÀRZVIURP¿QDQFLQJDFWLYLWLHV Proceeds from issue of shares under the employee stock option schemes 558.80 5.98 Payment made to shareholders on buyback of shares – (5,417.09) 5HSD\PHQWRI¿QDQFHOHDVHREOLJDWLRQ (45.74) (40.44) 'LYLGHQGVSDLGLQFOXGLQJGLYLGHQGGLVWULEXWLRQWD[ (973.90) (1,174.85) ,QWHUHVWSDLGRQ¿QDQFHOHDVH (21.63) (20.66) 1HWFDVKXVHGLQ¿QDQFLQJDFWLYLWLHV (482.47) (6,647.06) Net decrease in cash and cash equivalents during the year (599.12) (1,078.50) Cash and cash equivalents at the beginning of the year 1,686.64 2,765.14 Cash and cash equivalents at the end of the year 1,087.52 1,686.64 Notes : 7KHDERYHFDVKÀRZVWDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHµ,QGLU HFW0HWKRG¶DVVHWRXWLQWKH$FFRXQWLQJ6WDQGDUGRQ&DVK)ORZ6WDWHPHQW issued by the Institute of Chartered Accountants of India. &DVKDQGFDVKHTXLYDOHQWV5HIHUQRWH 3. Figures in brackets indicate cash outgo. 3UHYLRXV\HDU¿JXUHVKDYHEHHQUHJURXSHGRUUHFODVVL¿HGZKHUHYHUQHFHVVDU\ In terms of our report of even date For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board )LUP5HJLVWUDWLRQ1XPEHU 11 )RUPHUO\3ULFH:DWHUKRXVH)LUP5HJLVWUDWLRQ1XPEHU 1 Pradip Kanakia Sudhakar Ram Partner Managing Director and Group CEO 0HPEHUVKLS1XPEHU S. Sandilya 1RQ([HFXWLYH&KDLUPDQDQG,QGHSHQGHQW'LUHFWRU Mumbai, April 22, 2015 Farid Kazani Group CFO and Finance Director Bhagwant Bhargawe Company Secretary Mumbai, April 22, 2015 88 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 1. General information 0DVWHN/LPLWHG WKHµ&RPSDQ\¶ LVDSXEOLFOLPLWHGFRPSDQ\GRPLFLOHGLQ,QGLDDQGLVOLVWHGRQWKH%RPED\6WRFN([FKDQJH %6( DQG1DWLRQDO 6WRFN([FKDQJH 16( 7KH&RPSDQ\LVDSURYLGHURIYHUWLFDOO\IRFXVHGHQWHUSULVHWHFKQRORJ\VROXWLRQVDQGSODWIRUPVLQ,QVXUDQFH /LIH3HQVLRQV DQG*HQHUDO *RYHUQPHQW3XEOLF6HFWRUDQG)LQDQFLDO6HUYLFHV6HFWRUV)ROORZLQJWKH&RPSDQ\¶VGHFLVLRQWRGHPHUJHLWV,QVXUDQFH3URGXFWVDQG 6HUYLFHVEXVLQHVVWKURXJKDFRXUWVFKHPH 5HIHUQRWH WKDWEXVLQHVVKDVEHHQWUHDWHGDVDGLVFRQWLQXLQJRSHUDWLRQLQWKHVH¿QDQFLDOVWDWHPHQWV from the proposed appointment date of April 1, 2014. The Company’s offering portfolio includes business and technology services comprising IT Consulting, Application Development, Systems ,QWHJUDWLRQ$SSOLFDWLRQ0DQDJHPHQW2XWVRXUFLQJ7HVWLQJ'DWD:DUHKRXVLQJDQG%XVLQHVV,QWHOOLJHQFH$SSOLFDWLRQ6HFXULW\&50VHUYLFHVDQG Legacy Modernisation. The Company operates through its offshore software development centres at Mumbai, Pune, Chennai and Mahape and WKURXJKLWVVXEVLGLDULHVEUDQFKLQ86&DQDGD8.DQG$VLD3DFL¿F 6XPPDU\RIVLJQL¿FDQWDFFRXQWLQJSROLFLHV 2.1 Basis of preparation 7KHVH¿QDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVLQ,QGLDXQGHUWKHKLVWRULFDOFRVW FRQYHQWLRQRQDFFUXDOEDVLV3XUVXDQWWR6HFWLRQRIWKH&RPSDQLHV$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHV till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the 1DWLRQDO)LQDQFLDO5HSRUWLQJ$XWKRULW\WKHH[LVWLQJ$FFRXQWLQJ6WDQGDUGVQRWL¿HGXQGHUWKH&RPSDQLHV$FW VKDOOFRQWLQXHWRDSSO\ &RQVHTXHQWO\WKHVH¿QDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGWRFRPSO\LQDOOPDWHULDODVSHFWVZLWKWKHDFFRXQWLQJVWDQGDUGVQRWL¿HGXQGHU 6HFWLRQ & >&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHVDVDPHQGHG@DQGRWKHUUHOHYDQWSURYLVLRQVRIWKH&RPSDQLHV$FW $OODVVHWVDQGOLDELOLWLHVKDYHEHHQFODVVL¿HGDVFXUUHQWRUQRQFXUUHQWDVSHUWKH*URXS¶VQRUPDORSHUDWLQJF\FOHDQGRWKHUFULWHULDVHWRXW LQWKH6FKHGXOH,,,WRWKH&RPSDQLHV$FW%DVHGRQWKHQDWXUHRIVHUYLFHVDQGWKHWLPHEHWZHHQWKHDFTXLVLWLRQRIDVVHWVLQSXWVIRU processing and their realisation in cash and cash equivalents, the Group has ascertained its normal operating cycle as 12 months for the SXUSRVHRIFXUUHQWQRQFXUUHQWFODVVL¿FDWLRQRIDVVHWVDQGOLDELOLWLHV 2.2 Use of estimates 7KHSUHSDUDWLRQRIWKH¿QDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVUHTXLUHVWKDWWKHPDQDJHPHQWPDNHV estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the ¿QDQFLDOVWDWHPHQWVDQGWKHUHSRUWHGDPRXQWVRIUHYHQXHDQGH[SHQVHVGXULQJWKHUHSRUWHG\HDU$FWXDOUHVXOWVFRXOGGLIIHUIURPWKRVH estimates. 2.3 Tangible assets and depreciation Tangible assets are stated at cost of acquisition less accumulated depreciation and accumulated impairment losses, if any. Direct costs are FDSLWDOL]HGXQWLOWKHDVVHWVDUHUHDG\IRUXVHDQGLQFOXGHLQZDUGIUHLJKWGXWLHVWD[HVDQGH[SHQVHVLQFLGHQWDOWRDFTXLVLWLRQDQGLQVWDOODWLRQ 6XEVHTXHQWH[SHQGLWXUHVUHODWHGWRDQLWHPRIWDQJLEOHDVVHWDUHDGGHGWRLWVERRNYDOXHRQO\LIWKH\LQFUHDVHWKHIXWXUHEHQH¿WVIURPWKH H[LVWLQJDVVHWEH\RQGLWVSUHYLRXVO\DVVHVVHGVWDQGDUGRISHUIRUPDQFH Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets which are carried at cost are recognised in WKH6WDWHPHQWRI3UR¿WDQG/RVV Depreciation on tangible assets is provided on the straight line method, on a pro rata basis, over the estimated useful lives of assets which DUHQRWORQJHUWKDQWKHXVHIXOOLYHVSUHVFULEHGXQGHU6FKHGXOH,,WRWKH&RPSDQLHV$FWLQRUGHUWRUHÀHFWWKHSHULRGRYHUZKLFKWKH GHSUHFLDEOHDVVHWLVH[SHFWHGWREHXVHGE\WKHFRPSDQ\7KHHVWLPDWHVRIXVHIXOOLYHVRIWKHDVVHWVEDVHGRQDWHFKQLFDOHYDOXDWLRQKDYH not undergone a change on account of transition to the Companies Act, 2013. Assets 8VHIXO/LIH Buildings 25 - 30 years Computers 2 years Plant and equipment 5 years )XUQLWXUHDQG¿[WXUHV \HDUV Vehicles 5 years 2I¿FHHTXLSPHQW \HDUV Leasehold land Lease Term ranging from 95-99 years Leasehold improvements 5 years or the primary period of lease whichever is less 2.4 Intangible assets and amortization Intangible assets are stated at cost of acquisition less accumulated amortization and accumulated impairment losses, if any. Intangible assets DUHDPRUWL]HGRQDVWUDLJKWOLQHPHWKRGRYHUWKHLUHVWLPDWHGXVHIXOOLYHVDVIROORZV Assets 8VHIXO/LIH Goodwill 3 years Computer software 1 - 5 years ([SHQGLWXUHRQUHVHDUFKLVUHFRJQLVHGDVDQH[SHQVHZKHQLWLVLQFXUUHG'HYHORSPHQWFRVWVRISURGXFWVDUHDOVRFKDUJHGWRWKH6WDWHPHQWRI 3UR¿WDQG/RVVXQOHVVDOOWKHFULWHULDIRUFDSLWDOLVDWLRQDVVHWRXWLQSDUDJUDSKRI$6µ,QWDQJLEOH$VVHWV¶KDYHEHHQPHWE\WKH&RPSDQ\ 2.5 Impairment of assets At each Balance Sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication H[LVWVPDQDJHPHQWHVWLPDWHVWKHUHFRYHUDEOHDPRXQW5HFRYHUDEOHDPRXQWLVKLJKHURIDQDVVHW¶VQHWVHOOLQJSULFHDQGYDOXHLQXVH9DOXHLQ 89 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) XVHLVWKHSUHVHQWYDOXHRIHVWLPDWHGIXWXUHFDVKÀRZVH[SHFWHGWRDULVHIURPWKHFRQWLQXLQJXVHRIDQDVVHWDQGIURPLWVGLVSRVDODWWKHHQG RIWKHLWVXVHIXOOLIH,IWKHFDUU\LQJDPRXQWRIWKHDVVHWH[FHHGVLWVUHFRYHUDEOHDPRXQWDQLPSDLUPHQWORVVLVUHFRJQLVHGLQWKH6WDWHPHQW RI3UR¿WDQG/RVVWRWKHH[WHQWFDUU\LQJDPRXQWH[FHHGVUHFRYHUDEOHDPRXQW$VVHVVPHQWLVDOVRGRQHDWHDFK%DODQFHVKHHWGDWHDVWR ZKHWKHUWKHUHLVDQ\LQGLFDWLRQWKDWDQLPSDLUPHQWORVVUHFRJQLVHGIRUDQDVVHWLQSULRUDFFRXQWLQJSHULRGVPD\QRORQJHUH[LVWRUPDQ\KDYH decreased. 2.6 Investments Investments that are readily realisable and are intended to be held for not more than one year from the date on which such investments are PDGHDUHFODVVL¿HGDVFXUUHQWLQYHVWPHQWV$OORWKHULQYHVWPHQWVDUHFODVVL¿HGDV1RQFXUUHQWLQYHVWPHQWV&XUUHQWLQYHVWPHQWVDUHFDUULHG DWFRVWRUIDLUYDOXHZKLFKHYHULVORZHU1RQFXUUHQWLQYHVWPHQWVDUHFDUULHGDWFRVW+RZHYHUSURYLVLRQIRURWKHUWKDQWHPSRUDU\GHFOLQHLQ value is made to recognise a decline, other than temporary, in the value of non-current investments, such reduction being determined and made for each investment individually. ,QYHVWPHQWSURSHUW\ ,QYHVWPHQWLQEXLOGLQJVWKDWDUHQRWLQWHQGHGWREHRFFXSLHGVXEVWDQWLDOO\IRUXVHE\RULQWKHRSHUDWLRQVRIWKH &RPSDQ\ KDYH EHHQ FODVVL¿HG DV LQYHVWPHQW SURSHUW\ ,QYHVWPHQW SURSHUWLHV DUH FDUULHG DW FRVW OHVV DFFXPXODWHG GHSUHFLDWLRQ DQG DFFXPXODWHGLPSDLUPHQWORVVHVLIDQ\5HIHUQRWHIRUGHSUHFLDWLRQUDWHXVHGIRUEXLOGLQJV 2.7 Foreign currency transactions and translation )RUHLJQFXUUHQF\WUDQVDFWLRQVRIWKH&RPSDQ\DQGRILWVLQWHJUDOIRUHLJQEUDQFKDUHDFFRXQWHGDWWKHH[FKDQJHUDWHVSUHYDLOLQJRQWKHGDWHRIWKH WUDQVDFWLRQRUDWDQDYHUDJHUDWHWKDWDSSUR[LPDWHVWKHDFWXDOUDWHDWWKHGDWHRIWKHWUDQVDFWLRQ0RQHWDU\DVVHWVDQGOLDELOLWLHVDUHWUDQVODWHGDW the rate prevailing on the Balance Sheet date whereas non-monetary assets and liabilities are translated at the rate prevailing on the date of the transaction. Gains and losses resulting from the settlement of foreign currency monetary items and from the translation of monetary assets and OLDELOLWLHVGHQRPLQDWHGLQIRUHLJQFXUUHQFLHVDUHUHFRJQLVHGLQWKH6WDWHPHQWRI3UR¿WDQG/RVV ,QFDVHRIIRUZDUGH[FKDQJHFRQWUDFWVZKLFKDUHRSHQRQWKHEDODQFHVKHHWGDWHDQGDUHEDFNHGE\UHFHLYDEOHVWKHSUHPLXPRUGLVFRXQW DULVLQJDWWKHLQFHSWLRQRIVXFKDIRUZDUGH[FKDQJHFRQWUDFWLVDPRUWL]HGDVH[SHQVHRULQFRPHRYHUWKHOLIHRIWKHFRQWUDFW7KHH[FKDQJH GLIIHUHQFHRQVXFKFRQWUDFWVLVFRPSXWHGE\PXOWLSO\LQJWKHIRUHLJQFXUUHQF\DPRXQWRIWKHIRUZDUGH[FKDQJHFRQWUDFWE\WKHGLIIHUHQFH EHWZHHQD WKHIRUHLJQFXUUHQF\DPRXQWRIWKHFRQWUDFWWUDQVODWHGDWWKHH[FKDQJHUDWHDWWKHUHSRUWLQJGDWHRUWKHVHWWOHPHQWGDWHZKHUH the transaction is settled during the reporting period, and b) the same foreign currency amount translated at the latter of the date of inception RIWKHIRUZDUGH[FKDQJHFRQWUDFWDQGWKHODVWUHSRUWLQJGDWH7KHH[FKDQJHGLIIHUHQFHVRFRPSXWHGRQVXFKFRQWUDFWVLVUHFRJQLVHGLQWKH 6WDWHPHQWRI3UR¿WDQG/RVV$Q\SUR¿WRUORVVDULVLQJRQFDQFHOODWLRQRUUHQHZDORIVXFKIRUZDUGH[FKDQJHFRQWUDFWVLVUHFRJQLVHGDVLQFRPH RUH[SHQVHIRUWKH\HDU 2.8 Derivative instruments and hedge accounting 7KH&RPSDQ\XVHVIRUHLJQFXUUHQF\IRUZDUGFRQWUDFWVWRKHGJHLWVULVNVDVVRFLDWHGZLWKIRUHLJQFXUUHQF\ÀXFWXDWLRQVUHODWLQJWRFHUWDLQ¿UP FRPPLWPHQWVDQGIRUHFDVWHGWUDQVDFWLRQV7KH&RPSDQ\GHVLJQDWHVWKHVHKHGJLQJLQVWUXPHQWVDVFDVKÀRZKHGJHV The use of hedging instruments is governed by the policies of the Company which are approved by its Board of Directors. +HGJLQJLQVWUXPHQWVDUHLQLWLDOO\PHDVXUHGDWIDLUYDOXHDQGDUHUHPHDVXUHGDWVXEVHTXHQWUHSRUWLQJGDWHV&KDQJHVLQWKHIDLUYDOXHRIWKHVH GHULYDWLYHVWKDWDUHGHVLJQDWHGDQGHIIHFWLYHDVKHGJHVRIIXWXUHFDVKÀRZVDUHUHFRJQLVHGGLUHFWO\LQWKHKHGJLQJUHVHUYHDQGWKHLQHIIHFWLYH SRUWLRQLVUHFRJQLVHGLPPHGLDWHO\LQWKH6WDWHPHQWRI3UR¿WDQG/RVV )RUGHULYDWLYH¿QDQFLDOLQVWUXPHQWVWKDWGRQRWTXDOLI\IRUKHGJHDFFRXQWLQJWKHSUHPLXPRUGLVFRXQWDULVLQJDWWKHLQFHSWLRQRIWKHFRQWUDFW LVDPRUWL]HGDVH[SHQVHRULQFRPHRYHUWKHOLIHRIWKHFRQWUDFW*DLQVORVVHVRQVHWWOHPHQWRIWUDQVDFWLRQDULVLQJRQFDQFHOODWLRQRUUHQHZDO RIVXFKDIRUZDUGH[FKDQJHFRQWUDFWDUHUHFRJQL]HGDVLQFRPHRUH[SHQVHIRUWKH\HDU +HGJHDFFRXQWLQJLVGLVFRQWLQXHGZKHQWKHKHGJLQJLQVWUXPHQWH[SLUHVRULVVROGWHUPLQDWHGRUH[HUFLVHGRUQRORQJHUTXDOL¿HVIRUKHGJH accounting. At that time for forecasted transactions, any cumulative gain or loss on the hedging instrument recognised in shareholders’ funds LVUHWDLQHGWKHUHXQWLOWKHIRUHFDVWHGWUDQVDFWLRQRFFXUV,IDKHGJHGWUDQVDFWLRQLVQRORQJHUH[SHFWHGWRRFFXUWKHQHWFXPXODWLYHJDLQRU ORVVUHFRJQLVHGLQKHGJLQJUHVHUYHLVWUDQVIHUUHGWRWKH6WDWHPHQWRI3UR¿WDQG/RVVIRUWKH\HDU (PSOR\HHEHQH¿WV L /RQJWHUPHPSOR\HHEHQH¿WV D 'H¿QHGFRQWULEXWLRQSODQV 7KH &RPSDQ\ KDV GH¿QHG FRQWULEXWLRQ SODQV IRU SRVW HPSOR\PHQW EHQH¿WV LQ WKH IRUP RI SURYLGHQW IXQG HPSOR\HHV¶ VWDWH LQVXUDQFHODERXUZHOIDUHIXQGDQGVXSHUDQQXDWLRQIXQGLQ,QGLDZKLFKDUHDGPLQLVWHUHGWKURXJK*RYHUQPHQWRI,QGLDDQGRU/LIH ,QVXUDQFH&RUSRUDWLRQRI,QGLD /,& 7KH&RPSDQ\DOVRPDNHVFRQWULEXWLRQVWRZDUGVGH¿QHGFRQWULEXWLRQSODQVLQUHVSHFWRILWV EUDQFKLQIRUHLJQMXULVGLFWLRQDVDSSOLFDEOH8QGHUWKHGH¿QHGFRQWULEXWLRQSODQVWKH&RPSDQ\KDVQRIXUWKHUREOLJDWLRQEH\RQG PDNLQJWKHFRQWULEXWLRQV6XFKFRQWULEXWLRQVDUHFKDUJHGWRWKH6WDWHPHQWRI3UR¿WDQG/RVVDVLQFXUUHG E 'H¿QHGEHQH¿WSODQV 7KH&RPSDQ\KDVGH¿QHGEHQH¿WSODQVIRUSRVWHPSOR\PHQWEHQH¿WVLQWKHIRUPRIJUDWXLW\IRULWVHPSOR\HHVLQ,QGLD7KH JUDWXLW\VFKHPHRIWKH&RPSDQ\LVDGPLQLVWHUHGWKURXJK/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLD /,& /LDELOLW\IRUGH¿QHGEHQH¿W plans is provided on the basis of actuarial valuations, as at the Balance Sheet date, carried out by an independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit credit method. Actuarial JDLQVDQGORVVHVDUHUHFRJQLVHGLPPHGLDWHO\LQWKH6WDWHPHQWRI3UR¿WDQG/RVVDVLQFRPHRUH[SHQVH 90 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) F 2WKHUORQJWHUPHPSOR\HHEHQH¿WV 7KHHPSOR\HHVRIWKH&RPSDQ\DUHDOVRHQWLWOHGIRURWKHUORQJWHUPEHQH¿WLQWKHIRUPRIFRPSHQVDWHGDEVHQFHVDVSHUWKH policy of the Company. Leave encashment vests to employees on an annual basis for leave balance above the upper limit as per the Company’s policy. At the time of retirement, death while in employment or on termination of employment, leave encashment vests equivalent to salary payable for number of days of accumulated leave balance subject to an upper limit as per the Company’s SROLF\/LDELOLW\IRUVXFKEHQH¿WLVSURYLGHGRQWKHEDVLVRIDFWXDULDOYDOXDWLRQVDVDWWKH%DODQFH6KHHWGDWHFDUULHGRXWE\DQ independent actuary. The actuarial valuation method used by independent actuary for measuring the liability is the projected unit FUHGLWPHWKRG$FWXDULDOJDLQVDQGORVVHVDUHUHFRJQLVHGLPPHGLDWHO\LQWKH6WDWHPHQWRI3UR¿WDQG/RVVDVLQFRPHRUH[SHQVH LL 6KRUWWHUPHPSOR\HHEHQH¿WV 7KHXQGLVFRXQWHGDPRXQWRIVKRUWWHUPHPSOR\HHEHQH¿WVH[SHFWHGWREHSDLGLQH[FKDQJHIRUWKHVHUYLFHVUHQGHUHGE\HPSOR\HHVLV UHFRJQLVHGLQWKH\HDUGXULQJZKLFKWKHHPSOR\HHUHQGHUHGWKHVHUYLFHV7KHVHEHQH¿WVFRPSULVHFRPSHQVDWHGDEVHQFHVVXFKDVSDLG annual leave and performance incentives. LLL 7HUPLQDWLRQEHQH¿WV 7HUPLQDWLRQEHQH¿WVLQWKHQDWXUHRIYROXQWDU\UHWLUHPHQWEHQH¿WVRUWKRVHDULVLQJIURPUHVWUXFWXULQJDUHUHFRJQLVHGLQWKH6WDWHPHQW RI3UR¿WDQG/RVVZKHQWKH&RPSDQ\KDVDSUHVHQWREOLJDWLRQDVDUHVXOWRISDVWHYHQWZKHQDUHOLDEOHHVWLPDWHFDQEHPDGHRIWKH DPRXQWRIWKHREOLJDWLRQDQGLWLVSUREDEOHWKDWDQRXWÀRZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQH¿WVZLOOEHUHTXLUHGWRVHWWOHWKH obligations. 2.10 Revenue recognition 7KH&RPSDQ\GHULYHVUHYHQXHVSULPDULO\IURPLQIRUPDWLRQWHFKQRORJ\VHUYLFHV5HYHQXHLVUHFRJQLVHGLQDFFRUGDQFHZLWKWKHWHUPVRIWKH contracts with customers as the service is performed by the proportionate completion method and when it is reasonably certain that the XOWLPDWHFROOHFWLRQZLOOEHPDGH5HYHQXHVRQWLPHDQGPDWHULDOFRQWUDFWVDUHUHFRJQLVHGZKHQVHUYLFHVDUHUHQGHUHGDQGUHODWHGFRVWVDUH LQFXUUHG5HYHQXHVRQ¿[HGSULFH¿[HGWLPHERXQGFRQWUDFWVDUHUHFRJQLVHGRYHUWKHOLIHRIWKHFRQWUDFWPHDVXUHGE\WKHSURSRUWLRQWKDW contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs. The cumulative impact of DQ\UHYLVLRQLQHVWLPDWHVRIWKHSHUFHQWDJHRIZRUNFRPSOHWHGLVUHÀHFWHGLQWKHSHULRGLQZKLFKWKHFKDQJHEHFRPHVNQRZQ3URYLVLRQVIRU estimated losses on such contracts are made during the period in which a loss becomes probable and can be reasonably estimated. When WKHXQFHUWDLQW\UHODWLQJWRWKHFROOHFWDELOLW\DULVHVVXEVHTXHQWWRWKHUHQGHULQJRIWKHVHUYLFHDVHSDUDWHSURYLVLRQLVPDGHWRUHÀHFWWKH uncertainty and the amount of revenue originally recorded is not adjusted. 5HYHQXHVIURPPDLQWHQDQFHFRQWUDFWVDUHUHFRJQLVHGRQDVWUDLJKWOLQHEDVLVRYHUWKHSHULRGRIWKHFRQWUDFW 5HYHQXHVIURPUHVDOHRIVRIWZDUHDQGKDUGZDUHDUHUHFRJQLVHGXSRQGHOLYHU\RISURGXFWVWRWKHFXVWRPHUZKHQWKHVLJQL¿FDQWULVNVDQG rewards of ownership are transferred to the buyer and the ultimate collection is reasonably certain. Accrued revenue included in ‘Other current assets’, represents amounts in respect of services performed in accordance with contract terms, QRW\HWELOOHGWRFXVWRPHUVDWWKH\HDUHQG8QHDUQHGUHYHQXHLQFOXGHGLQµ2WKHUFXUUHQWOLDELOLWLHV¶UHSUHVHQWVDPRXQWVUHFHLYHGELOOHGLQ H[FHVVRIWKHYDOXHRIZRUNSHUIRUPHGLQDFFRUGDQFHZLWKWKHWHUPVRIWKHFRQWUDFWVZLWKFXVWRPHUV 2.11 Other income Dividend income from subsidiaries and on other investments is recognised when the right to receive payment is established. Interest income LVUHFRJQLVHGRQWLPHSURSRUWLRQEDVLVWDNLQJLQWRDFFRXQWWKHDPRXQWRXWVWDQGLQJDQGWKHDSSOLFDEOHUDWHRILQWHUHVW5HQWDOLQFRPHLV recognised on a straight line basis over the term of the lease as per the terms of the base contract. 2.12 Leases $VVHWVWDNHQRQOHDVHVZKLFKWUDQVIHUVXEVWDQWLDOO\DOOWKHULVNVDQGUHZDUGVLQFLGHQWDOWRRZQHUVKLSRIWKHDVVHWVWRWKHOHVVHHLH¿QDQFH OHDVHV LQ WHUPV RI SURYLVLRQV RI $FFRXQWLQJ 6WDQGDUG $6 ± µ/HDVHV¶ DUH FDSLWDOL]HG 7KH DVVHWV DFTXLUHG XQGHU ¿QDQFH OHDVHV DUH capitalised at the lower of the fair value at the inception of the lease and the present value of minimum lease payments and a liability is created for an equivalent amount. Such assets are disclosed as leased assets under tangible assets and are depreciated in accordance with WKH&RPSDQ\¶VGHSUHFLDWLRQSROLF\GHVFULEHGLQQRWH(DFKOHDVHUHQWDOSDLGRQWKH¿QDQFHOHDVHLVDOORFDWHGEHWZHHQWKHOLDELOLW\DQG LQWHUHVWFRVWVRDVWRREWDLQDFRQVWDQWSHULRGLFUDWHRILQWHUHVWRQWKHRXWVWDQGLQJOLDELOLW\IRUHDFKSHULRG2WKHUOHDVHVDUHFODVVL¿HGDV RSHUDWLQJOHDVHVDQGUHQWDOSD\PHQWVLQUHVSHFWRIVXFKOHDVHVDUHFKDUJHGWRWKH6WDWHPHQWRI3UR¿WDQG/RVVRQDVWUDLJKWOLQHEDVLVRYHU the lease term. Assets given under operating leases are capitalised in the Balance Sheet under tangible assets and are depreciated as per the Company’s depreciation policy described in note 2.3. 2.13 Earnings per share %DVLFHDUQLQJVSHUVKDUH (36 DUHFDOFXODWHGE\GLYLGLQJWKHQHWORVVSUR¿WDIWHUWD[IRUWKH\HDUDWWULEXWDEOHWRHTXLW\VKDUHKROGHUVE\WKH weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by adjusting the number of shares used for basic EPS with the weighted average number of shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds receivable had the shares been actually issued at fair value i.e. average market value of outstanding shares. The number of shares and potentially dilutive shares are adjusted for share splits and bonus shares, as appropriate. In calculating diluted earnings per share, the effects of antidilutive potential equity shares are ignored. Potential equity shares are anti-dilutive when there conversion to equity shares would increase earnings per share or decrease loss per share. 2.14 Income Taxes 7D[H[SHQVHIRUWKH\HDUFRPSULVHVRIFXUUHQWWD[DQGGHIHUUHGWD[&XUUHQWWD[LVPHDVXUHGE\WKHDPRXQWRIWD[H[SHFWHGWREHSDLGWRWKH WD[DWLRQDXWKRULWLHVRQWKHWD[DEOHSUR¿WVDIWHUFRQVLGHULQJWD[DOORZDQFHVDQGH[HPSWLRQVDQGXVLQJDSSOLFDEOHWD[UDWHVDQGODZV'HIHUUHG 91 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) WD[LVUHFRJQLVHGRQWLPLQJGLIIHUHQFHVEHWZHHQWKHDFFRXQWLQJLQFRPHDQGWKHWD[DEOHLQFRPHIRUWKH\HDUDQGTXDQWL¿HGXVLQJWKHWD[UDWHV DQGWD[ODZVHQDFWHGRUVXEVWDQWLYHO\HQDFWHGDVRQWKH%DODQFH6KHHWGDWH'HIHUUHGWD[DVVHWVDUHUHFRJQLVHGDQGFDUULHGIRUZDUGWRWKH H[WHQWWKDWWKHUHLVUHDVRQDEOHFHUWDLQW\WKDWVXI¿FLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQEH UHDOLVHG'HIHUUHGWD[DVVHWVLQUHVSHFWRIXQDEVRUEHGGHSUHFLDWLRQRUFDUU\IRUZDUGORVVHVDUHUHFRJQLVHGRQO\WRWKHH[WHQWWKHUHLVYLUWXDO FHUWDLQW\VXSSRUWHGE\FRQYLQFLQJHYLGHQFHWKDWVXI¿FLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQ EHUHDOLVHG7KHFDUU\LQJDPRXQWRIGHIHUUHGWD[DVVHWVLVUHYLHZHGDWHDFKEDODQFHVKHHWGDWHIRUDQ\ZULWHGRZQRUUHYHUVDODVFRQVLGHUHG appropriate. 0LQLPXP$OWHUQDWLYH7D[ 0$7 FUHGLWLVUHFRJQLVHGDVDQDVVHWVRQO\ZKHQDQGWRWKHH[WHQWWKHLULVFRQYLQFLQJHYLGHQFHWKDWWKH&RPSDQ\ ZLOOSD\QRUPDOLQFRPHWD[GXULQJWKHVSHFL¿HGSHULRG6XFKDVVHWLVUHYLHZHGDWHDFKEDODQFHVKHHWGDWHDQGWKHFDUU\LQJDPRXQWRIWKH 0$7FUHGLWDVVHWLVZULWWHQGRZQWRWKHH[WHQWWKHLULVQRORQJHUFRQYLQFLQJHYLGHQFHWRWKHHIIHFWWKDWWKH&RPSDQ\ZLOOSD\QRUPDOLQFRPH WD[GXULQJWKHVSHFL¿HGSHULRG &XUUHQWWD[DVVHWVDQGOLDELOLWLHVDUHRIIVHWZKHQWKHUHLVDOHJDOO\HQIRUFHDEOHULJKWWRVHWRIIWKHUHFRJQLVHGDPRXQWDQGWKHUHLVDQLQWHQWLRQ to settle the asset and liability on a net basis. 'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVDUHRIIVHWZKHQWKHUHLVDOHJDOO\HQIRUFHDEOHULJKWWRVHWRIIDVVHWVDJDLQVWOLDELOLWLHVUHSUHVHQWLQJWKHFXUUHQW WD[DQGZKHUHWKHGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVUHODWHWRWD[HVRQLQFRPHOHYLHGE\WKHVDPHJRYHUQLQJWD[DWLRQODZV 2.15 Accounting for Employee Stock Options Stock options granted to employees of Mastek Limited and its subsidiaries under the stock option schemes established after June 19, 1999 are accounted as per the treatment prescribed by Employee Stock Option Scheme and Employee Stock Purchase Guidelines issued in 1999 6(%,JXLGHOLQHV LVVXHGE\WKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6(%, DQGDVDPHQGHGIURPWLPHWRWLPHDQGWKHJXLGDQFHQRWH on Employee Share-based Payments issued by the Institute of Chartered Accountants of India. The intrinsic value of the option being H[FHVVRIPDUNHWYDOXHRIWKHXQGHUO\LQJVKDUHLPPHGLDWHO\SULRUWRGDWHRIJUDQWRYHULWVH[HUFLVHSULFHLVUHFRJQLVHGDVGHIHUUHGHPSOR\HH FRPSHQVDWLRQZLWKDFUHGLWWRVKDUHRSWLRQVRXWVWDQGLQJDFFRXQW7KH([SHQVHRQGHIHUUHGHPSOR\HHFRPSHQVDWLRQLVFKDUJHGWR6WDWHPHQW RI3UR¿WDQG/RVVRQVWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRGRIWKHRSWLRQ7KHRSWLRQVWKDWODSVHDUHUHYHUVHGE\DFUHGLWWR([SHQVHRQ Employee Stock Option Scheme, equal to the amortized portion of value of lapsed portion and a debit to share options outstanding account equal to the un-amortised portion. 2.16 Provisions and Contingent Liabilities 3URYLVLRQVDUHUHFRJQLVHGZKHQWKH&RPSDQ\KDVDSUHVHQWREOLJDWLRQDVDUHVXOWRISDVWHYHQWVIRUZKLFKLWLVSUREDEOHWKDWDQRXWÀRZ RIUHVRXUFHVHPERG\LQJHFRQRPLFEHQH¿WVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGDUHOLDEOHHVWLPDWHRIWKHDPRXQWFDQEHPDGH$ GLVFORVXUHIRUDFRQWLQJHQWOLDELOLW\LVPDGHZKHUHWKHUHLVDSRVVLEOHREOLJDWLRQWKDWDULVHVIURPSDVWHYHQWVDQGWKHH[LVWHQFHRIZKLFKZLOOEH FRQ¿UPHGRQO\E\WKHRFFXUUHQFHRUQRQRFFXUUHQFHRIRQHRUPRUHXQFHUWDLQIXWXUHHYHQWVQRWZKROO\ZLWKLQWKHFRQWURORIWKH&RPSDQ\RU DSUHVHQWREOLJDWLRQWKDWDULVHVIURPWKHSDVWHYHQWVZKHUHLWLVHLWKHUQRWSUREDEOHWKDWDQRXWÀRZRIUHVRXUFHVZLOOEHUHTXLUHGWRVHWWOHWKH REOLJDWLRQRUDUHOLDEOHHVWLPDWHRIWKHDPRXQWFDQQRWEHPDGH3URYLVLRQVDUHUHYLHZHGUHJXODUO\DQGDUHDGMXVWHGZKHUHQHFHVVDU\WRUHÀHFW WKHFXUUHQWEHVWHVWLPDWHVRIWKHREOLJDWLRQ:KHUHWKH&RPSDQ\H[SHFWVDSURYLVLRQWREHUHLPEXUVHGWKHUHLPEXUVHPHQWLVUHFRJQL]HGDV a separate asset, only when such reimbursement is virtually certain. 2.17 Cash and Cash Equivalents Cash and cash equivalents include cash in hand, demand deposits with banks and other short term highly liquid investments with original maturities of three months or less. 3. Share capital As at As at March 31, 2015 March 31, 2014 $XWKRULVHG 0DUFK HTXLW\VKDUHVRI`HDFK 2,000.00 2,000.00 0DUFK SUHIHUHQFHVKDUHVRI`HDFK 2,000.00 2,000.00 Total 4,000.00 4,000.00 ,VVXHGVXEVFULEHGDQGIXOO\SDLGXS 0DUFK HTXLW\VKDUHVRI`HDFKIXOO\SDLG 1,127.33 1,108.03 Total 1,127.33 1,108.03 (a) Reconciliation of the number of shares As at March 31, 2015 As at March 31, 2014 No. of shares Amount 1RRIVKDUHV Amount Equity Shares Balance as at the beginning of the year 22,160,680 1,108.03 24,638,187 1,231.91 $GG $GGLWLRQRQDFFRXQWRIH[HUFLVHRIHPSOR\HH 385,992 19.30 6,500 0.32 VWRFNRSWLRQSODQV>5HIHUQRWH D @ /HVV 6KDUHVH[WLQJXLVKHGXSRQEX\EDFN – – (2,484,007) (124.20) Balance as at the end of the year 22,546,672 1,127.33 22,160,680 1,108.03 92 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) (b) Rights, preferences and restrictions attached to shares The Company has one class of equity shares having a par value of ` 5 per share. Each shareholder is eligible for one vote per share held. The GLYLGHQGSURSRVHGE\WKH%RDUGRI'LUHFWRUVLVVXEMHFWWRWKHDSSURYDORIWKHVKDUHKROGHUVLQWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJH[FHSWLQ case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. (c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company As at March 31, 2015 As at March 31, 2014 Equity Shares of `HDFKKHOGE\ No. of shares % of holding 1RRIVKDUHV % of holding Ashank Desai 3,099,552 13.75% 3,099,552 13.99% 6XGKDNDU5DP 2,791,680 12.38% 2,791,680 12.60% .HWDQ0HKWD 2,519,100 11.17% 2,519,100 11.37% Fidelity Purita Trust Fidelity Low Priced 1,650,000 7.32% 2,025,000 9.14% 5DGKDNULVKQDQ6XQGDU 1,445,800 6.41% 1,445,800 6.52% Life Insurance Corporation of India * – – 1,550,404 6.99% Ashish Dhawan + –– 1,313,935 5.93% * Shareholding as at March 31, 2015 is reduced to less than 5%. 6KDUHKROGLQJDVDW0DUFKUHGXFHGWR1LO (d) Shares reserved for issue under options As at As at March 31, 2015 March 31, 2014 1XPEHURIVKDUHVWREHLVVXHGXQGHUWKH(PSOR\HH6WRFN2SWLRQ3ODQV 2,892,776 2,977,521 >5HIHUQRWH D IRUGHWDLOVRIVKDUHVWREHLVVXHGXQGHUWKH(PSOR\HH6WRFN2SWLRQ6FKHPH@ (e) Shares bought back (during 5 years immediately preceding March 31, 2015) As at March 31, March 31, 2014 March 31, 2013 June 30, 2012 June 30, 2011 2015 Equity Shares bought back - 2,484,007 2,388,000 - - Shares bought back during the year ended March 31, 2014 : At the meeting of the Board of Directors of the Company held on January 08, 2014, the Board had given consent for the buy back of Company’s fully paid up equity shares of ` HDFK IURP H[LVWLQJ VKDUHKROGHUV DQG EHQH¿FLDO RZQHUV LQ DFFRUGDQFH ZLWK WKH UHOHYDQW SURYLVLRQVRI&RPSDQLHV$FW DQG6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD %X\%DFNRI6HFXULWLHV 5HJXODWLRQV IRUDQDPRXQWQRW H[FHHGLQJ`DQGIRUDSULFHQRWH[FHHGLQJ`SHUHTXLW\VKDUH7KHQXPEHURIVKDUHVWREHERXJKWEDFNZDVVXEMHFWWRDPLQLPXP RI (TXLW\6KDUHVDQGDPD[LPXPRI(TXLW\6KDUHV Since the commencement of the buy back until the closure date (March 25, 2014), the Company had bought back 2,484,007 equity shares at an average price of `SHUHTXLW\VKDUH&RQVHTXHQWO\DVXPRI` KDGEHHQXWLOLVHGIURP*HQHUDO5HVHUYHLQUHVSHFWRI WKHEX\EDFN2XWRIWKHDPRXQWXWLOLVHGIURP*HQHUDO5HVHUYHDQDPRXQWRI` 124.20 had been appropriated to the Capital redemption UHVHUYHDFFRXQWDQGWKHSDLGXSVKDUHFDSLWDOKDGEHHQUHGXFHGE\WKHVDPHDPRXQW7KHFRPSDQ\KDGIXOO\H[WLQJXLVKHGWKHVKDUHVERXJKW back during the above mentioned period. 4. Reserves and surplus As at As at March 31, 2015 March 31, 2014 Capital reserve Balance as at the beginning of the year 106.07 106.07 Balance as at the end of the year 106.07 106.07 Capital redemption reserve account Balance as at the beginning of the year 1,538.87 1,414.67 $GG 7UDQVIHUUHGIURPJHQHUDOUHVHUYH>5HIHUQRWH H @ - 124.20 Balance as at the end of the year 1,538.87 1,538.87 Securities premium account Balance as at the beginning of the year 5.66 - $GG $GGLWLRQRQDFFRXQWRIH[HUFLVHRIVKDUHVXQGHUWKHHPSOR\HHVWRFNRSWLRQSODQV 539.50 5.66 Balance as at the end of the year 545.16 5.66 93 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) As at As at March 31, 2015 March 31, 2014 Employee stock options outstanding account Addition on account of employee stock option plans 131.75 - %DODQFHDVDWWKHHQGRIWKH\HDU>5HIHUQRWH I @ 131.75 - General reserve Balance as at the beginning of the year 2,235.67 7,132.76 /HVV 8WLOLVHGIRUEX\EDFNRIVKDUHV>5HIHUQRWH H @ - (5,292.89) /HVV 7UDQVIHUUHGWRFDSLWDOUHGHPSWLRQUHVHUYHDFFRXQW>5HIHUQRWH H @ - (124.20) $GG 7UDQVIHUIURPVXUSOXVLQVWDWHPHQWRISUR¿WDQGORVVGXULQJWKH\HDU 180.00 520.00 Balance as at the end of the year 2,415.67 2,235.67 Hedging reserve account Balance as at the beginning of the year 31.20 195.92 $GG &KDQJHVLQWKHIDLUYDOXHRIWKHHIIHFWLYHFDVKÀRZKHGJHV 1,849.71 (164.72) %DODQFHDVDWWKHHQGRIWKH\HDU 5HIHUQRWH 1,880.91 31.20 6XUSOXVLQVWDWHPHQWRISUR¿WDQGORVV Balance as at the beginning of the year 29,311.97 28,157.93 3UR¿WIRUWKH\HDU 7,438.75 2,697.11 /HVV $SSURSULDWLRQV Interim dividend (336.64) (431.17) 3URSRVHG¿QDOGLYLGHQGRQHTXLW\VKDUHVIRUWKH\HDU (227.30) (609.42) 'LYLGHQGGLVWULEXWLRQWD[QHW 30.37 17.52 Transfer to general reserve during the year (180.00) (520.00) Balance as at the end of the year 36,037.15 29,311.97 Total 42,655.58 33,229.44 'LYLGHQG'LVWULEXWLRQ7D[ ''7 QHWSHUWDLQLQJWRWKHFXUUHQW\HDUFRPSULVHVWKH''7OLDELOLW\RI` 73.20 (previous year ` 103.57) on interim GLYLGHQGDQGSURSRVHG¿QDOGLYLGHQGDQGDFUHGLWRI` 103.57 (previous year ` LQUHVSHFWRIWD[SDLGXV%%'RIWKH,QGLDQ,QFRPH 7D[$FW E\WKH&RPSDQ\RQGLYLGHQGUHFHLYHGIURPDIRUHLJQVXEVLGLDU\GXULQJWKH\HDU 5. Long-term borrowings As at As at March 31, 2015 March 31, 2014 6HFXUHG /RQJWHUPPDWXULWLHVRI¿QDQFHOHDVHREOLJDWLRQVLQUHVSHFWRIYHKLFOHV>5HIHUQRWH LL @ 85.66 135.42 (a) 1DWXUHRIVHFXULW\DQGWHUPVRIUHSD\PHQWIRUVHFXUHGERUURZLQJV 1DWXUHRI6HFXULW\ 7HUPVRI5HSD\PHQW Finance lease obligations are secured by hypothecation of Monthly payment of Equated monthly instalments beginning assets underlying the leases. from the month subsequent to taking the lease. 6. Long-term provisions As at As at March 31, 2015 March 31, 2014 3URYLVLRQIRUHPSOR\HHEHQH¿WV 3URYLVLRQIRUJUDWXLW\>5HIHUQRWH E LLL @ - 727.18 3URYLVLRQIRUOHDYHHQFDVKPHQW>5HIHUQRWH F @ 1,190.36 1,009.46 Others Provision for cost overrun on contracts * 15.76 17.68 Total 1,206.12 1,754.32 0RYHPHQWLQWKHSURYLVLRQUHSUHVHQWVWKHDPRXQWVKRZQDVµ5HYHUVDORISURYLVLRQIRUFRVWRYHUUXQRQFRQWUDFWVQHW¶ 5HIHUQRWH 7. Trade payables As at As at March 31, 2015 March 31, 2014 7UDGHSD\DEOHV 5HIHUQRWH 604.30 278.77 94 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 8. Other current liabilities As at As at March 31, 2015 March 31, 2014 &XUUHQWPDWXULWLHVRI¿QDQFHOHDVHREOLJDWLRQVLQUHVSHFWRIYHKLFOHV>5HIHUQRWH LL @ 49.56 53.03 8QHDUQHGUHYHQXH 232.86 1,915.95 8QSDLGGLYLGHQGV>5HIHUQRWH D EHORZ@ 41.37 44.09 Security and other deposits 1.58 48.54 Other payables (PSOR\HHEHQH¿WVSD\DEOH 1,501.23 2,050.51 $FFUXHGH[SHQVHV 2,194.46 1,833.78 Capital creditors 149.83 165.87 6WDWXWRU\GXHVLQFOXGLQJSURYLGHQWIXQGDQGWD[GHGXFWHGDWVRXUFH 504.67 407.01 Total 4,675.56 6,518.78 (a) There is no amount due for payment to Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end.** ** Section 125 of Companies Act, 2013 which corresponds to Section 205C of Companies Act, 1956 has not yet been enforced. 9. Short-term provisions As at As at March 31, 2015 March 31, 2014 3URYLVLRQIRUHPSOR\HHEHQH¿W 3URYLVLRQIRUOHDYHHQFDVKPHQW>5HIHUQRWH F @ 789.78 803.50 Others 3URYLVLRQIRUWD[HVQHWRIDGYDQFHWD[ – 332.34 3URYLVLRQIRUPDUNWRPDUNHWORVVHVRQRXWVWDQGLQJGHULYDWLYHFRQWUDFWV 5HIHUQRWH – 2.07 3URYLVLRQIRUSURSRVHG¿QDOGLYLGHQGDW`SHUVKDUH 3UHYLRXV\HDU`SHUVKDUH RQ 225.47 609.42 equity shares of face value of `HDFK 3URYLVLRQIRUGLYLGHQGGLVWULEXWLRQWD[RQSURSRVHG¿QDOGLYLGHQGRQHTXLW\VKDUHV 47.19 103.57 Total 1,062.44 1,850.90 10. Fixed assets (i) Tangible assets Gross Block (at cost) Depreciation 1HW%ORFN As at April Additions Deductions As at As at April For the Deductions As at As at As at March 1, 2014 March 31, 1, 2014 year March 31, March 31, 31, 2014 2015 2015 2015 D2ZQDVVHWV Buildings 5,891.77 ±± 5,891.77 1,771.11 150.16 ± 1,921.27 3,970.50 4,120.66 Computers 2,572.44 690.60 (0.46) 3,262.58 1,952.32 616.55 (0.20) 2,568.67 693.91 620.12 Plant and equipment 4,280.75 107.37 (77.90) 4,310.22 3,881.37 258.89 (77.88) 4,062.38 247.84 399.38 )XUQLWXUHDQG¿[WXUHV 5,819.74 147.67 (2.25) 5,965.16 5,248.58 319.65 (2.25) 5,565.98 399.18 571.16 Vehicles 407.46 58.50 (121.24) 344.72 242.99 96.02 (82.53) 256.48 88.24 164.47 2I¿FHHTXLSPHQW 1,905.86 49.94 (2.88) 1,952.92 1,725.71 67.73 (2.48) 1,790.96 161.96 180.15 Total (A) 20,878.02 1,054.08 (204.73) 21,727.37 14,822.08 1,509.00 (165.34) 16,165.74 5,561.63 6,055.94 E/HDVHGDVVHWV Leasehold land 558.45 ±± 558.45 105.10 61.37 ± 166.47 391.98 453.35 Leasehold improvements 400.42 ±± 400.42 391.06 7.50 ± 398.56 1.86 9.36 Vehicles 262.12 7.38 (31.63) 237.87 60.62 16.00 (24.99) 51.63 186.24 201.50 Total (B) 1,220.99 7.38 (31.63) 1,196.74 556.78 84.87 (24.99) 616.66 580.08 664.21 Total ( A + B ) 22,099.01 1,061.46 (236.36) 22,924.11 15,378.86 1,593.87 (190.33) 16,782.40 6,141.71 6,720.15 (ii) Intangible assets Gross Block (at cost) Amortisation 1HW%ORFN As at April Additions Deductions As at As at April For the Deductions As at March As at March As at March 1, 2014 March 31, 1, 2014 year 31, 2015 31, 2015 31, 2014 2015 Goodwill 130.32 ±± 130.32 130.32 ±± 130.32 ±± Computer software 3,920.23 819.07 ± 4,739.30 2,859.17 1,094.59 ± 3,953.76 785.54 1,061.06 Total 4,050.55 819.07 ± 4,869.62 2,989.49 1,094.59 ± 4,084.08 785.54 1,061.06 1RWHV D 2ZQEXLOGLQJVLQFOXGHVXEVFULSWLRQWRZDUGVVKDUHFDSLWDORI&RRSHUDWLYHVRFLHWLHVDPRXQWLQJWR5XSHHV7ZR+XQGUHGDQG)LIW\RQO\ 3UHYLRXV\HDU5XSHHV7ZR +XQGUHGDQG)LIW\RQO\ 95 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 10. Fixed assets for previous year ended March 31, 2014 (i) Tangible assets Gross Block (at cost) Depreciation 1HW%ORFN As at April Additions Deductions As at As at April For the Deductions As at As at As at 1, 2013 March 31, 1, 2013 year March 31, March 31, March 31, 2014 2014 2014 2013 D2ZQDVVHWV Buildings 5,891.77 - - 5,891.77 1,620.92 150.19 - 1,771.11 4,120.66 4,270.85 Computers 1,956.31 616.35 (0.22) 2,572.44 1,538.05 414.49 (0.22) 1,952.32 620.12 418.26 Plant and equipment 4,180.52 103.85 (3.62) 4,280.75 3,598.89 286.10 (3.62) 3,881.37 399.38 581.63 )XUQLWXUHDQG¿[WXUHV 5,557.94 269.59 (7.79) 5,819.74 4,898.66 357.71 (7.79) 5,248.58 571.16 659.28 Vehicles 351.06 70.20 (13.80) 407.46 190.96 65.83 (13.80) 242.99 164.47 160.10 2I¿FHHTXLSPHQW 1,815.00 93.21 (2.35) 1,905.86 1,666.48 61.36 (2.13) 1,725.71 180.15 148.52 Total (A) 19,752.60 1,153.20 (27.78) 20,878.02 13,513.96 1,335.68 (27.56) 14,822.08 6,055.94 6,238.64 E/HDVHGDVVHWV Leasehold land 558.45 - - 558.45 43.73 61.37 - 105.10 453.35 514.72 Leasehold improvements 459.03 - (58.61) 400.42 442.17 7.50 (58.61) 391.06 9.36 16.86 Vehicles 195.05 72.69 (5.62) 262.12 21.16 43.25 (3.79) 60.62 201.50 173.89 Total (B) 1,212.53 72.69 (64.23) 1,220.99 507.06 112.12 (62.40) 556.78 664.21 705.47 Total (A + B) 20,965.13 1,225.89 (92.01) 22,099.01 14,021.02 1,447.80 (89.96) 15,378.86 6,720.15 6,944.11 (ii) Intangible assets Gross Block (at cost) Amortisation 1HW%ORFN As at April Additions Deductions As at As at April For the Deductions As at As at As at 1, 2013 March 31, 1, 2013 year March 31, March 31, March 31, 2014 2014 2014 2013 Goodwill 130.32 - - 130.32 130.32 - - 130.32 - - Computer software 3,567.16 894.31 (541.24) 3,920.23 2,295.79 1,104.62 (541.24) 2,859.17 1,061.06 1,271.37 Total 3,697.48 894.31 (541.24) 4,050.55 2,426.11 1,104.62 (541.24) 2,989.49 1,061.06 1,271.37 1RWH D 2ZQEXLOGLQJVLQFOXGHVXEVFULSWLRQWRZDUGVVKDUHFDSLWDORI&RRSHUDWLYHVRFLHWLHVDPRXQWLQJWR5XSHHV7ZRKXQGUHGDQG¿IW\ 3UHYLRXV\HDU5XSHHV7ZR KXQGUHGDQG¿IW\ 96 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 11. Non-current investments As at As at March 31, 2015 March 31, 2014 (A) Investment property (at cost less accumulated depreciation) Gross block Opening and Closing 389.41 389.41 /HVV $FFXPXODWHGGHSUHFLDWLRQ Opening 134.65 120.73 Depreciation for the year 13.92 13.92 Closing 148.57 134.65 1HWEORFN 240.84 254.76 As at As at March 31, 2015 March 31, 2014 (B) Trade investments ,QYHVWPHQWLQVXEVLGLDULHVIXOO\SDLGHTXLW\VKDUHV 8QTXRWHGDWFRVW 0DMHVFR86$ )RUPHUO\0DMHVFR0DVWHN 3UHYLRXV\HDU (TXLW\6KDUHVRI86HDFKIXOO\SDLGXS 14,590.26 11,565.47 5HIHUQRWH 0DVWHN$VLD3DFL¿F3WH/WG6LQJDSRUH 3UHYLRXV\HDU (TXLW\6KDUHVRI86HDFKIXOO\SDLGXS 717.98 /HVV 3URYLVLRQIRURWKHUWKDQWHPSRUDU\GHFOLQHLQYDOXH (542.44) 175.54 175.54 (Previous year gross value ` 717.98, provision for other than temporary decline in value ` 542.44) Majesco Sdn Bhd., Malaysia (Formerly known as Mastek MSC Sdn Bhd., Malaysia) 1LO(TXLW\6KDUHV 3UHYLRXV\HDU RI50HDFKIXOO\SDLGXS – 1,443.42 5HIHUQRWH 0DVWHN 8. /WG8. 200,000 (Previous year - 200,000) Equity Shares of £ 1 each, fully paid up 215.81 215.81 0LQH¿HOGV&RPSXWHUV/LPLWHG,QGLD 5HIHUQRWH 5.00 ± 3UHYLRXV\HDU1LO (TXLW\6KDUHVRI` 10 each, fully paid up Majesco Canada Limited, Canada (Formerly - MajescoMastek Canada Limited) 1LO 3UHYLRXV\HDU 6KDUHVRI&1HDFKIXOO\SDLGXS 5HIHUQRWH ± /HVV 3URYLVLRQIRURWKHUWKDQWHPSRUDU\GHFOLQHLQYDOXH 5HIHUQRWH ± – ± (Previous year gross value ` 1,555.01, provision for other than temporary decline in value ` 1,555.01) Total 14,986.61 13,400.24 Total (A + B) 15,227.45 13,655.00 Aggregate amount of investment property 240.84 254.76 Aggregate amount of unquoted investments 14,986.61 13,400.24 Aggregate provision for other than temporary decline in value of unquoted investments (542.44) (2,097.45) 12. Deferred tax assets As at As at March 31, 2015 March 31, 2014 'HIHUUHGWD[DVVHWVLQUHVSHFWRI Depreciation 1,053.29 976.09 Provision for gratuity and leave encashment 631.58 824.15 Provision for doubtful debts and advances 134.62 68.53 Other timing differences 106.94 13.38 Total 1,926.43 1,882.15 97 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 13. Long-term loans and advances As at As at March 31, 2015 March 31, 2014 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVRWKHUZLVHVWDWHG Capital advances 25.48 8.55 Security deposits 139.62 204.22 3UHSDLGH[SHQVHV 12.94 31.13 Other loans and advances $GYDQFHLQFRPHWD[QHWRISURYLVLRQIRUWD[ 1,961.68 2,708.19 0$7FUHGLWHQWLWOHPHQW>5HIHUQRWH D @ 2,694.26 3,100.53 Advances to employees 6.11 10.80 Total 4,840.09 6,063.42 14. Other non-current assets As at As at March 31, 2015 March 31, 2014 0DUNWRPDUNHWJDLQVUHFHLYDEOHRQRXWVWDQGLQJGHULYDWLYHFRQWUDFWV 5HIHUQRWH 309.58 26.46 15. Current investments As at As at March 31, 2015 March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units, Previous year - 5,000,000 units) ,')&)L[HG7HUP3ODQ6HULHV5HJXODU*URZWK - 750.00 1LOXQLWV3UHYLRXV\HDUXQLWV 87,)L[HG7HUP,QFRPH)XQG6HULHV;99, 'D\V *URZWK - 1,200.00 1LOXQLWV3UHYLRXV\HDUXQLWV ,&,&,3UXGHQWLDO)L[HG0DWXULW\3ODQ6HULHV 'D\V3ODQ(5HJXODU*URZWK - 630.00 1LOXQLWV3UHYLRXV\HDUXQLWV ':6,QWHUYDO)XQG$QQXDO3ODQ6HULHV5HJXODU*URZWK - 1,200.00 1LOXQLWV3UHYLRXV\HDUXQLWV /,&1RPXUD0))L[HG0DWXULW\3ODQ6HULHV'D\V*URZWK - 2,360.00 1LOXQLWV3UHYLRXV\HDUXQLWV Total 5,121.20 8,140.00 Aggregate amount of quoted investments 5,121.20 8,140.00 Market value of quoted investments 5,453.71 8,618.20 98 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 16. Trade receivables As at As at March 31, 2015 March 31, 2014 8QVHFXUHGFRQVLGHUHGJRRG 2XWVWDQGLQJIRUDSHULRGH[FHHGLQJVL[PRQWKVIURPWKHGDWHWKH\ZHUHGXHIRUSD\PHQW 58.70 - Others 7,405.34 3,368.78 8QVHFXUHGFRQVLGHUHGGRXEWIXO 2XWVWDQGLQJIRUDSHULRGH[FHHGLQJVL[PRQWKVIURPWKHGDWHWKH\ZHUHGXHIRUSD\PHQW 345.46 211.21 Others 50.60 - /HVV 3URYLVLRQIRUGRXEWIXOGHEWV (396.06) (211.21) Total 7,464.04 3,368.78 17. Cash and bank balances As at As at March 31, 2015 March 31, 2014 Cash and cash equivalents Cash on hand 2.00 1.87 Bank balances In current accounts 400.07 1,536.18 )L[HGGHSRVLWV ZLWKRULJLQDOPDWXULW\RIOHVVWKDQPRQWKV 685.45 148.59 1,087.52 1,686.64 Other bank balances )L[HGGHSRVLWV ZLWKRULJLQDOPDWXULW\PRUHWKDQPRQWKVEXWOHVVWKDQPRQWKV 3,850.00 - 8QSDLGGLYLGHQGDFFRXQW 41.37 44.09 3,891.37 44.09 Total 4,978.89 1,730.73 18. Short-term loans and advances As at As at March 31, 2015 March 31, 2014 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVRWKHUZLVHVWDWHG Other Loans and Advances Security deposits 19.45 11.77 $GYDQFHFRQWULEXWLRQWRHPSOR\HHEHQH¿WSODQJUDWXLW\>5HIHUQRWH E LLL @ 122.00 - 3UHSDLGH[SHQVHV 771.75 224.08 6HUYLFHWD[FUHGLWUHFHLYDEOH 150.90 127.68 Advances to suppliers Considered good 2.65 214.61 Considered doubtful 7.26 7.26 /HVV 3URYLVLRQIRUGRXEWIXODGYDQFHV (7.26) (7.26) Advances to employees 39.29 98.53 Total 1,106.04 676.67 19. Other current assets As at As at March 31, 2015 March 31, 2014 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVRWKHUZLVHVWDWHG ,QWHUHVWDFFUXHGRQ¿[HGGHSRVLWV 157.33 - ,QWHUHVWDFFUXHGRQLQFRPHWD[UHIXQGV 122.71 325.51 Margin money deposit 1.65 1.65 Accrued revenue 814.18 1,141.46 5HLPEXUVDEOHH[SHQVHVUHFHLYDEOH 717.72 48.96 0DUNWRPDUNHWJDLQVUHFHLYDEOHRQRXWVWDQGLQJGHULYDWLYHFRQWUDFWV 5HIHUQRWH 1,571.33 - Total 3,384.92 1,517.58 99 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 20. Contingent liabilities As at As at March 31, 2015 March 31, 2014 &RUSRUDWHSHUIRUPDQFHJXDUDQWHHVJLYHQE\WKH&RPSDQ\RQEHKDOIRIWKHIROORZLQJVXEVLGLDULHV (a) Majesco Canada Limited (Formerly - MajescoMastek Canada Limited) 7,354.88 7,837.96 (b) 0DMHVFR 7KDLODQG &R/WG>)RUPHUO\0DVWHN06& 7KDLODQG &R/WG@ 1,562.50 1,497.88 (c) 0DVWHN 8. /LPLWHG 8,386.12 9,047.71 &RUSRUDWHJXDUDQWHHVJLYHQE\WKH&RPSDQ\RQEHKDOIRIWKHIROORZLQJVXEVLGLDU\ (a) 0DMHVFR86$IRULWVWHUPORDQ 1,875.00 - 6WDQGE\OHWWHURIFUHGLWJLYHQE\WKH&RPSDQ\RQEHKDOIRIIROORZLQJVXEVLGLDU\ (a) 0DMHVFR86$IRULWV/LQHRIFUHGLWIRUZRUNLQJFDSLWDOORDQIURP%DQN 918.75 - Claims against Company not acknowledged as debts (a) 6DOHVWD[PDWWHU 173.77 - (i) 7KH&RPSDQ\GRHVQRWH[SHFWDQ\FDVKRXWÀRZVRUDQ\UHLPEXUVHPHQWVLQUHVSHFWRIWKHDERYHFRQWLQJHQWOLDELOLWLHV (ii) ,WLVQRWSUDFWLFDEOHIRUWKH&RPSDQ\WRHVWLPDWHWKHWLPLQJRIFDVKRXWÀRZVLIDQ\LQUHVSHFWRIWKHDERYHSHQGLQJRFFXUUHQFHRIWKH default event or resolution of respective proceedings. 21. Capital and other commitments As at As at March 31, 2015 March 31, 2014 Capital commitments (VWLPDWHGDPRXQWRIFRQWUDFWVUHPDLQLQJWREHH[HFXWHGRQFDSLWDODFFRXQWQRWSURYLGHGIRU 84.87 235.20 22. Revenue from operations Year ended Year ended March 31, 2015 March 31, 2014 Information technology services 66,048.24 54,459.34 Other operating revenue 5HLPEXUVHPHQWRIH[SHQVHVIURPFXVWRPHUV 43.21 14.64 Secondment fees 335.22 339.38 5HVDOHRIVRIWZDUHDQGKDUGZDUH 49.85 131.84 Doubtful debts recovered 35.45 112.14 Total 66,511.97 55,057.34 23. Other income Year ended Year ended March 31, 2015 March 31, 2014 Interest income 2Q¿[HGGHSRVLWV 212.98 143.04 2QLQFRPHWD[UHIXQGV 310.58 226.00 On others 14.01 20.36 Dividend income from subsidiary 820.88 1,143.67 3UR¿WRQVDOHRIWDQJLEOHDVVHWVQHW 14.85 0.56 3UR¿WRQVDOHRIFXUUHQWLQYHVWPHQWV 789.18 435.79 5HQWDOLQFRPHIURPLQYHVWPHQWSURSHUWLHV 44.32 108.88 Miscellaneous income 98.60 51.64 Total 2,305.40 2,129.94 24. (PSOR\HHEHQH¿WVH[SHQVHV Year ended Year ended March 31, 2015 March 31, 2014 Salaries, wages and performance incentives 35,336.74 30,392.33 *UDWXLW\>5HIHUQRWH E LY @ 773.07 (97.72) &RQWULEXWLRQWRSURYLGHQWDQGRWKHUIXQGV>5HIHUQRWH D @ 995.18 911.21 (PSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHV 13.39 - 6WDIIZHOIDUHH[SHQVH 565.86 1,318.92 Total 37,684.24 32,524.74 100 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 25. Finance costs Year ended Year ended March 31, 2015 March 31, 2014 ,QWHUHVWRQ¿QDQFHOHDVH 21.63 20.66 Bank charges 5.80 3.98 2WKHU¿QDQFHFKDUJHV - 2.23 Total 27.43 26.87 26. Depreciation and amortisation expenses Year ended Year ended March 31, 2015 March 31, 2014 Depreciation on tangible assets 1,593.87 1,447.80 Amortisation on intangible assets 1,094.59 1,104.62 Depreciation on investment property 13.92 13.92 Total 2,702.38 2,566.34 27. Other expenses Year ended Year ended March 31, 2015 March 31, 2014 +LUHFKDUJHV 249.92 211.71 5HFUXLWPHQWDQGWUDLQLQJH[SHQVHV 250.00 162.03 Travelling and conveyance 2,069.37 2,096.63 Communication charges 278.39 285.60 Electricity 736.80 669.75 Consultancy and sub-contracting charges 13,868.18 10,586.71 Purchase of hardware and software 343.75 418.02 5DWHVDQGWD[HV 307.44 234.26 5HSDLUVWREXLOGLQJV 453.10 472.16 5HSDLUV RWKHUV 964.58 935.13 Insurance 95.47 103.47 Printing and stationery 73.17 57.79 3URIHVVLRQDOIHHV 5HIHUQRWH D EHORZ 481.80 496.31 5HQW>5HIHUQRWH L @ 127.40 114.25 Advertisement and publicity 171.24 156.83 ([SHQGLWXUHWRZDUGVFRUSRUDWHVRFLDOUHVSRQVLELOLW\ &65 DFWLYLWLHV 84.94 - 1HWORVVRQIRUHLJQFXUUHQF\WUDQVDFWLRQVDQGWUDQVODWLRQ 47.44 66.36 Provision for doubtful debts and loans and advances 220.30 78.55 Bad debt written off 10.79 0.28 5HYHUVDORISURYLVLRQIRUFRVWRYHUUXQRQFRQWUDFWVQHW (1.92) (124.63) 5HYHUVDORIDFFUXHGUHYHQXH 79.83 - 0LVFHOODQHRXVH[SHQVHV 173.47 220.69 Total 21,085.46 17,241.90 (a) 3URIHVVLRQDOIHHVLQFOXGHSD\PHQWWRDXGLWRUV Year ended Year ended March 31, 2015 March 31, 2014 i. As auditor Statutory audit 46.00 46.00 Limited review 24.00 24.00 Other services 9.50 8.00 ii. )RUUHLPEXUVHPHQWRIH[SHQVHV 4.40 4.00 (b) 2WKHUH[SHQVHVVKRZQDERYHDUHQHWRIUHLPEXUVDEOHH[SHQVHVUHFRYHUHGIURPVXEVLGLDULHVXQGHUDSSURSULDWHOLQHLWHPV 101 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 28. Exceptional items Year ended Year ended March 31, 2015 March 31, 2014 3UR¿WRQVDOHRILQYHVWPHQWVLQVXEVLGLDULHV 5HIHUQRWHDQG (1,038.99) - 5HVWUXFWXULQJH[SHQVHV6DODULHVZDJHVDQGSHUIRUPDQFHLQFHQWLYHV 199.59 - 'HPHUJHUH[SHQVHV Professional fees 270.29 - Salaries, wages and performance incentives 65.00 - Others 9.16 - 3URYLVLRQIRURWKHUWKDQWHPSRUDU\GHFOLQHLQYDOXH 5HIHUQRWH - 1,555.01 (494.95) 1,555.01 29. Earnings Per Share (EPS) Year ended Year ended March 31, 2015 March 31, 2014 7KHFRPSRQHQWVRIEDVLFDQGGLOXWHGHDUQLQJVSHUVKDUHIRUWRWDORSHUDWLRQVDUHDVIROORZV (a) 1HWSUR¿WDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV 7,438.75 2,697.11 (b) Weighted average number of outstanding equity shares Considered for basic EPS 22,320,332 24,572,517 $GG (IIHFWRIGLOXWLYHSRWHQWLDOHTXLW\VKDUHVDULVLQJIURPRXWVWDQGLQJVWRFNRSWLRQV 1,106,757 299,906 Considered for diluted EPS 23,427,089 24,872,423 (c) Earnings per share in ` Basic ` 33.33 ` 10.98 Diluted ` 31.75 ` 10.84 (Face value per share `HDFK The components of basic and diluted earnings per share for continuing operations (i.e. Solutions EXVLQHVV DUHDVIROORZV (a) 1HWLQFRPHDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV 6,179.30 1,953.03 (b) Weighted average number of outstanding equity shares Considered for basic EPS 22,320,332 24,572,517 $GG (IIHFWRIGLOXWLYHSRWHQWLDOHTXLW\VKDUHVDULVLQJIURPRXWVWDQGLQJVWRFNRSWLRQV 1,106,757 299,906 Considered for diluted EPS 23,427,089 24,872,423 (c) (DUQLQJVSHUVKDUH QHWRIWD[HV LQ` Basic ` 27.68 ` 7.95 Diluted ` 26.38 ` 7.85 (Face value per share `HDFK 30. (PSOR\HHEHQH¿WV 7KHGLVFORVXUHVUHTXLUHGDVSHUWKHUHYLVHG$FFRXQWLQJ6WDQGDUG $6 (PSOR\HH%HQH¿WV UHYLVHG DUHDVXQGHU Year ended Year ended March 31, 2015 March 31, 2014 (a) 'H¿QHGFRQWULEXWLRQSODQV 7KH&RPSDQ\KDVUHFRJQLVHGWKHIROORZLQJDPRXQWVLQ6WDWHPHQWRI3UR¿WDQG/RVVIRUWKH\HDU Contribution to provident fund 906.50 874.00 Contribution to Employees’ State Insurance Corporation 5.26 5.32 Contribution to Maharashtra Labour Welfare Fund 1.37 1.38 Superannuation contribution 34.93 30.51 Contribution plans (branch outside India) 47.12 - Total 5HIHUQRWH 995.18 911.21 (b) 'H¿QHGEHQH¿WSODQ *UDWXLW\ As per the independent actuarial valuation carried out as at March 31, 2015 As at As at March 31, 2015 March 31, 2014 (i) &KDQJHLQGH¿QHGEHQH¿WREOLJDWLRQV '%2 3URMHFWHGEHQH¿WREOLJDWLRQRSHQLQJ 2,883.96 2,968.23 Service cost 383.95 430.91 Interest cost 292.96 262.61 $FWXDULDOORVV JDLQ 337.41 (611.46) %HQH¿WVSDLG (236.66) (166.33) 3URMHFWHGEHQH¿WREOLJDWLRQFORVLQJ 3,661.62 2,883.96 102 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) As at As at March 31, 2015 March 31, 2014 (ii) &KDQJHLQIDLUYDOXHRIDVVHWV Fair value of plan assets - opening 2,156.78 1,302.88 ([SHFWHGUHWXUQRQSODQDVVHWV 211.10 113.02 Employer’s contribution 1,622.25 840.45 %HQH¿WSDLG (236.66) (166.33) Actuarial gain 30.15 66.76 Fair value of plan assets - closing 3,783.62 2,156.78 (iii) Amount recognized in the Balance Sheet Present value of obligations 3,661.62 2,883.96 /HVV )DLUYDOXHRISODQDVVHWV (3,783.62) (2,156.78) 1HW DVVHWV OLDELOLW\UHFRJQL]HG (122.00) 727.18 5HFRJQLVHGXQGHU 6KRUWWHUPORDQVDQGDGYDQFHV 5HIHUQRWH /RQJWHUPSURYLVLRQV 5HIHUQRWH (122.00) 727.18 Total (122.00) 727.18 Year ended Year ended March 31, 2015 March 31, 2014 (iv) 1HWJUDWXLW\FRVWIRUWKH\HDU Service cost 383.95 430.91 Interest cost 292.96 262.61 ([SHFWHGUHWXUQRQSODQDVVHWV (211.10) (113.02) 1HWDFWXDULDOORVV JDLQ UHFRJQL]HGLQWKHFXUUHQW\HDU 307.26 (678.22) 1HWJUDWXLW\FRVW 5HIHUQRWH 773.07 (97.72) (v) Asset information Life Insurance Corporation of India 100% 100% (vi) $VVXPSWLRQVXVHGLQDFFRXQWLQJIRUWKHJUDWXLW\SODQ Discount rate (p.a.) 7.95% 9.25% 5HWXUQRQ3ODQ$VVHWV SD 8.85% 8.96% Salary escalation rate ( p.a.) 10.00% 10.00% 5HWLUHPHQWDJH 60 years 60 years 7KH HVWLPDWHV RI VDODU\ HVFDODWLRQ FRQVLGHUHG LQ DFWXDULDO YDOXDWLRQ WDNHV LQWR DFFRXQW LQÀDWLRQ VHQLRULW\SURPRWLRQV DQGRWKHU relevant factors, such as demand and supply in the employment market. (vii) ([SHFWHG&RQWULEXWLRQWRWKHIXQGLQWKHQH[W\HDU Year ended Year ended March 31, 2015 March 31, 2014 Gratuity 600.00 600.00 (viii) $PRXQWVUHFRJQLVHGLQFXUUHQW\HDUDQGSUHYLRXVIRXU\HDUV March 31, 2015 March 31, 2014 March 31, 2013 June 30, 2012 June 30, 2011 'H¿QHGEHQH¿WREOLJDWLRQ 3,661.62 2,883.96 2,968.23 2,493.54 2,246.19 Plan assets 3,783.62 2,156.78 1,302.88 876.95 466.85 6XUSOXV 'H¿FLW 122.00 (727.18) (1,665.35) (1,616.59) (1,779.34) ([SHULHQFHDGMXVWPHQWV On plan liabilities (166.77) (145.51) (9.25) (143.20) (434.66) On plan assets 30.15 66.76 2.74 (18.40) - As at As at March 31, 2015 March 31, 2014 (c) Provision for Leave encashment Opening balance 1,812.96 1,679.20 Charge during the year 955.08 528.58 Amount paid during the year (787.90) (394.82) &ORVLQJEDODQFH>'LVFORVHGXQGHU/RQJWHUPSURYLVLRQV 5HIHUQRWH DQG 6KRUWWHUPSURYLVLRQV 5HIHUQRWH @ 1,980.14 1,812.96 103 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 31. Employee Stock Option Scheme (a) 1DWXUHDQGH[WHQWRIHPSOR\HHVKDUHEDVHGSD\PHQWSODQVWKDWH[LVWHGGXULQJWKH\HDU i. Plan III The Company passed special resolutions at its Annual General Meeting held on September 20, 2004 approving the allocation of 700,000 stock options to the eligible employees of the Company and its subsidiaries. The Company subsequently established a new scheme in 2004 for granting 700,000 stock options to the employees referred to above, each RSWLRQUHSUHVHQWLQJRQHHTXLW\VKDUHRIWKH&RPSDQ\7KHH[HUFLVHSULFHLVDVJRYHUQHGE\WKHJXLGHOLQHVLVVXHGE\6(%,7KHVFKHPHLV governed by the Employee Stock Option Scheme and Employee Stock Purchase Guidelines issued in 1999 by SEBI and as amended from WLPHWRWLPH7KH¿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options and the price of the said options have been adjusted accordingly. 1RRI2SWLRQV Year ended Year ended March 31, 2015 March 31, 2014 Opening Balance - 42,125 Granted during the year - - ([HUFLVHGGXULQJWKH\HDU - - Cancelled during the year - (42,125) %DODQFHXQH[HUFLVHGRSWLRQV - - ii. Plan IV The Shareholders of the Company through Postal Ballot on August 9, 2007 approved the allocation of 1,000,000 stock options to the eligible employees of the Company and its subsidiaries. The Company subsequently established a new scheme in 2007 for granting 1,000,000 stock options to the employees referred to above, HDFKRSWLRQUHSUHVHQWLQJRQHHTXLW\VKDUHRIWKH&RPSDQ\7KHH[HUFLVHSULFHLVDVJRYHUQHGE\WKHJXLGHOLQHVLVVXHGE\6(%,7KHVFKHPH is governed by the Employee Stock Option Scheme and Employee Stock Purchase Guidelines issued in 1999 by SEBI and as amended from WLPHWRWLPH7KH¿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ear ended Year ended March 31, 2015 March 31, 2014 Opening Balance 411,707 412,986 Granted during the year - - ([HUFLVHGGXULQJWKH\HDU (15,118) - Cancelled during the year (25,564) (1,279) %DODQFHXQH[HUFLVHGRSWLRQV 371,025 411,707 iii. Plan V The Company introduced a new scheme in 2008 for granting 1,500,000 stock options to the employees, each option representing one equity VKDUHRIWKH&RPSDQ\7KHH[HUFLVHSULFHDVPD\EHGHWHUPLQHGE\WKH1RPLQDWLRQ 5HPXQHUDWLRQ&RPPLWWHH ³&RPPLWWHH´ DQGVXFK price may be the face value of the share from time to time or may be the Market Price or any price as may be decided by the Committee and will be governed by the guidelines issued by SEBI. The scheme is governed by the Employee Stock Option Scheme and Employee Stock 3XUFKDVH*XLGHOLQHVLVVXHGLQ E\6(%,DQGDVDPHQGHGIURPWLPHWRWLPH7KH¿UVWYHVWLQJRIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQ FRPSOHWLRQRIRQH\HDUIURPWKHGDWHRIJUDQWDQGWKHRSWLRQVDUHH[HUFLVDEOHZLWKLQVHYHQ\HDUVIURPWKHGDWHRIYHVWLQJ$VSHUWKH6(%, JXLGHOLQHVWKHH[FHVVRIPDUNHWSULFHRIWKHXQGHUO\LQJHTXLW\VKDUHVDVRIWKHGDWHRIWKHJUDQWRIWKHRSWLRQVRYHUWKHH[HUFLVHSULFHRI WKHRSWLRQLVWREHUHFRJQL]HGDQGDPRUWL]HGRQDVWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRG'XULQJWKH¿QDQFLDO\HDUHQGHG-XQH 50,000 options were granted at price less then the market price. There is no compensation cost in the current year, as the cost of discounted options has been charged off in earlier years. 1RRI2SWLRQV Year ended Year ended March 31, 2015 March 31, 2014 Opening Balance 673,514 853,514 Granted during the year - - ([HUFLVHGGXULQJWKH\HDU (91,575) - Cancelled during the year (273,000) (180,000) %DODQFHXQH[HUFLVHGRSWLRQV 308,939 673,514 104 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) iv. Plan VI The Company introduced a new scheme in 2010 for granting 2,000,000 stock options to the employees, each option representing one equity VKDUHRIWKH&RPSDQ\7KHH[HUFLVHSULFHDVPD\EHGHWHUPLQHGE\WKH&RPPLWWHHDQGVXFKSULFHPD\EHWKHIDFHYDOXHRIWKHVKDUHIURP time to time or may be the Market Price or any price as may be decided by the Committee and will be governed by the guidelines issued by SEBI. The scheme is governed by the Employee Stock Option Scheme and Employee Stock Purchase Guidelines issued in 1999 by SEBI and DVDPHQGHGIURPWLPHWRWLPH7KH¿UVWYHVWLQJRIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQFRPSOHWLRQRIRQH\HDUIURPWKHGDWHRIJUDQW DQGWKHRSWLRQVDUHH[HUFLVDEOHZLWKLQVHYHQ\HDUVIURPWKHGDWHRIYHVWLQJ$VSHUWKH6(%,JXLGHOLQHVWKHH[FHVVRIPDUNHWSULFHRIWKH XQGHUO\LQJHTXLW\VKDUHVDVRIWKHGDWHRIWKHJUDQWRIWKHRSWLRQVRYHUWKHH[HUFLVHSULFHRIWKHRSWLRQLVWREHUHFRJQL]HGDQGDPRUWL]HG on a straight line basis over the vesting period. During the year ended March 31, 2015, 256,957 options have been granted under the VFKHPHDWEHORZPDUNHWSULFH&RQVHTXHQWO\WKHDPRUWLVHGFRPSHQVDWLRQFRVWIRUWKHH[HUFLVDEOHRSWLRQVLV` 96.06, out of which ` 82.67 have been charged to the subsidiaries based on the employees where they are employed and balance of ` 13.39 have been charged to the VWDWHPHQWRISUR¿WDQGORVVGXULQJWKHFXUUHQW\HDU 1RRI2SWLRQV Year ended Year ended March 31, 2015 March 31, 2014 Opening Balance 1,892,300 1,123,800 Granted during the year 326,957 1,003,750 ([HUFLVHGGXULQJWKH\HDU (279,299) (6,500) Cancelled during the year (624,519) (228,750) %DODQFHXQH[HUFLVHGRSWLRQV 1,315,439 1,892,300 v. Plan VII The Company introduced a new scheme in 2013 for granting 2,500,000 stock options to its employees, employees of its subsidiaries and its ,QGHSHQGHQW'LUHFWRUVHDFKRSWLRQJLYLQJDULJKWWRDSSO\IRURQHHTXLW\VKDUHRIWKH&RPSDQ\RQLWVYHVWLQJ7KHH[HUFLVHSULFHDVPD\ be determined by the Committee and such price may be the face value of the share from time to time or may be the Market Price or any price as may be decided by the Committee and will be governed by the guidelines issued by SEBI. The scheme is governed by the Employee 6WRFN2SWLRQ6FKHPHDQG(PSOR\HH6WRFN3XUFKDVH*XLGHOLQHVLVVXHGLQ E\6(%,DQGDVDPHQGHGIURPWLPHWRWLPH7KH¿UVWYHVWLQJ RIWKHVWRFNRSWLRQVVKDOOKDSSHQRQO\RQFRPSOHWLRQRIRQH\HDUIURPWKHGDWHRIJUDQWDQGWKHRSWLRQVDUHH[HUFLVDEOHZLWKLQVHYHQ\HDUV IURPWKHGDWHRIYHVWLQJ$VSHUWKH6(%,JXLGHOLQHVWKHH[FHVVRIPDUNHWSULFHRIWKHXQGHUO\LQJHTXLW\VKDUHVDVRIWKHGDWHRIWKHJUDQW RIWKHRSWLRQVRYHUWKHH[HUFLVHSULFHRIWKHRSWLRQLVWREHUHFRJQL]HGDQGDPRUWL]HGRQDVWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRG'XULQJ the year ended March 31, 2015, 46,373 options have been granted under the scheme at below market price. Consequently, the amortised FRPSHQVDWLRQFRVWIRUWKHH[HUFLVDEOHRSWLRQVLV` 35.69. The entire cost have been charged to the subsidiaries based on the employees ZKHUHWKH\DUHHPSOR\HGDQG5V1LOKDYHEHHQFKDUJHGWRWKHVWDWHPHQWRISUR¿WDQGORVVGXULQJWKHFXUUHQW\HDU 1RRI2SWLRQV Year ended Year ended March 31, 2015 March 31, 2014 Opening Balance - - Granted during the year 1,069,373 - ([HUFLVHGGXULQJWKH\HDU - - Cancelled during the year (172,000) - %DODQFHXQH[HUFLVHGRSWLRQV 897,373 - (b) 7KH&RPSDQ\KDVDGRSWHGWKHLQWULQVLFYDOXHPHWKRGDVSHUPLWWHGE\WKH6(%,*XLGDQFH1RWHRQ$FFRXQWLQJIRU(PSOR\HH6KDUH%DVHG Payment issued by the Institute of Chartered Accountants of India for measuring the cost of stock options granted. 7KH&RPSDQ\¶VQHWSUR¿WDQGHDUQLQJVSHUVKDUHZRXOGKDYHEHHQDVXQGHUKDGWKHFRPSHQVDWLRQFRVWIRUHPSOR\HHVVWRFNRSWLRQVEHHQ recognised based on the fair value at the date of grant in accordance with Black Scholes model. Year ended Year ended March 31, 2015 March 31, 2014 3UR¿WDIWHUWD[DWLRQ 7,438.75 2,697.11 /HVV (PSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHVEDVHGRQIDLUYDOXH (90.18) (36.49) $GG (PSOR\HHVWRFNFRPSHQVDWLRQH[SHQVHVEDVHGRQLQWULQVLFYDOXH 13.39 - 3UR¿WDIWHUWD[DWLRQDVSHU)DLUYDOXHPHWKRG 7,361.96 2,660.62 Basic Earning per share (EPS) 1XPEHURIVKDUHV 22,320,332 22,207,426 Basic EPS as reported (`) Rs. 33.33 5V Proforma Basic EPS (`) Rs. 32.98 5V Diluted Earning per share (EPS) 1XPEHURIVKDUHV 23,427,089 23,070,639 Diluted EPS as reported (`) ` 31.75 5V Proforma Diluted EPS (`) ` 31.43 5V 105 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) (c) 6WRFNRSWLRQVH[HUFLVHGGXULQJWKH\HDU Year ended Year ended March 31, 2015 March 31, 2014 1RRIRSWLRQVH[HUFLVHGGXULQJWKH\HDU 385,992 6,500 :HLJKWHGDYHUDJHVKDUHSULFHDWWKHGDWHRIH[HUFLVH `) 144.77 138.80 (d) )RUVWRFNRSWLRQVRXWVWDQGLQJDWWKHHQGRIWKH\HDUWKHUDQJHRIH[HUFLVHSULFHVDQGZHLJKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIH 9HVWLQJ SHULRGH[HUFLVHSHULRG Weighted Average Weighted remaining Options Average Exercise Contractual Life Outstanding Price (`) (years) As at March 31, 2015 Range of Exercise Price (`) 0 - 150 1,416,401 111.51 7.19 151- 250 998,600 186.23 8.09 250 - 350 457,775 295.24 3.01 Above 350 20,000 376.00 4.41 Total 2,892,776 168.21 6.82 As at March 31, 2014 5DQJHRI([HUFLVH3ULFH `) 0 - 150 2,141,271 125.12 7.71 151- 250 300,920 208.76 7.28 250 - 350 390,330 298.28 3.99 Above 350 145,000 376.79 5.41 Total 2,977,521 168.53 7.07 (e) ,QIRUPDWLRQRQVWRFNRSWLRQVJUDQWHGGXULQJWKH\HDU Year ended Year ended March 31, 2015 March 31, 2014 1RRIRSWLRQVJUDQWHGGXULQJWKH\HDU 1,396,330 1,003,750 Option Pricing model used 0DUNHWSULFHDVGH¿QHGE\6(%, Discounted price as per the scheme Weighted average share price (`) 182.74 136.09 ([HUFLVH3ULFH `) 145.31 137.01 ([SHFWHGYRODWLOLW\ 47.80% 48.98% 2SWLRQOLIH 9HVWLQJSHULRG([HUFLVHSHULRG The risk free interest rates are determined based on the zero-coupon yield curve for government securities. The volatility is determined EDVHGRQDQQXDOL]HGVWDQGDUGGHYLDWLRQRIVWRFNSULFHRQ16(RYHUWKHWLPHWRPDWXULW\RIWKHRSWLRQ7KHH[SHFWHGGLYLGHQG\LHOGLVEDVHG on the average dividend yields for preceding seven years. (f) (IIHFWRIVKDUHEDVHGSD\PHQWSODQRQWKH%DODQFH6KHHWDQG6WDWHPHQWRI3UR¿WDQG/RVV Year ended Year ended March 31, 2015 March 31, 2014 ([SHQVHDULVLQJIURPHPSOR\HHVKDUHEDVHGSD\PHQWSODQ 13.39 - (PSOR\HHVWRFNRSWLRQVRXWVWDQGLQJDFFRXQW 5HIHUQRWH 131.75 - 32. Leases (i) Operating leases As at As at March 31, 2015 March 31, 2014 (a) )XWXUHPLQLPXPOHDVHSD\PHQWVXQGHUQRQFDQFHOODEOHRSHUDWLQJOHDVHV LQUHVSHFWRISURSHUWLHV Due within one year 28.18 30.40 Due later than 1 year but not later than 5 years 16.44 30.40 Total minimum lease payments 44.62 60.80 106 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) Year ended Year ended March 31, 2015 March 31, 2014 (b) 2SHUDWLQJOHDVHUHQWDOVUHFRJQLVHGLQWKH6WDWHPHQWRI3UR¿WDQG/RVV 5HIHUQRWH 127.40 114.25 (c) 'HVFULSWLRQRIVLJQL¿FDQWRSHUDWLQJOHDVHDUUDQJHPHQWV The Company has given refundable interest free security deposits under the lease agreements. All agreements contain provision for renewal at the option of either party. All agreements provide for restriction on sub lease. (ii) Finance leases As at As at March 31, 2015 March 31, 2014 7RWDOPLQLPXP¿QDQFHOHDVHSD\PHQWVRXWVWDQGLQJ LQUHVSHFWRIYHKLFOHV Due within one year 66.42 75.99 Due later than 1 year but not later than 5 years 96.62 164.02 Total minimum lease payments 163.04 240.01 /HVV ,QWHUHVWQRWGXH (27.82) (51.56) Present value of net minimum lease payments 135.22 188.45 'LVFORVHGXQGHU /RQJWHUPERUURZLQJV 5HIHUQRWH 85.66 135.42 2WKHUFXUUHQWOLDELOLWLHV 5HIHUQRWH 49.56 53.03 135.22 188.45 33. Income Taxes (a) ,QDFFRUGDQFHZLWKWKH,QGLDQ,QFRPH7D[$FWWKH&RPSDQ\KDVFDOFXODWHGLWVWD[OLDELOLW\DIWHUFRQVLGHULQJ0LQLPXP$OWHUQDWH7D[ 0$7 3D\PHQWVXQGHU0$7FDQEHFDUULHGIRUZDUGDQGVHWRIIDJDLQVWIXWXUHWD[OLDELOLW\IRUDSHULRGRIWHQ\HDUV$FFRUGLQJO\DVXPRI` 2,694.26 (Previous year ` KDVEHHQFDUULHGIRUZDUGDQGVKRZQXQGHUµ/RQJWHUPORDQVDQGDGYDQFHV¶ 5HIHUQRWH (b) 7KH&RPSDQ\KDGUHFHLYHGWD[GHPDQGVDJJUHJDWLQJWR` 2,835.05 (including interest of ` 853.09) primarily on account of transfer pricing issues for the assessment years 2006-07 to 2011-12. For the assessment year 2006-07 and assessment year 2007-08, the second appellate DXWKRULW\ WKH,QFRPH7D[$SSHOODWH7ULEXQDO KDVDOORZHGWKHVHLVVXHVLQIDYRXURIWKHFRPSDQ\DQGWKHLQFRPHWD[DXWKRULWLHVKDYH¿OHGDQ DSSHDOZLWKWKH+RQRXUDEOH+LJK&RXUW)RUWKHDVVHVVPHQW\HDUV DQGDVVHVVPHQW\HDU WKH¿UVWDSSHOODWHDXWKRULW\ WKH &RPPLVVLRQHURI,QFRPHWD[ $SSHDOV KDVDOORZHGPRVWRIWKHVHLVVXHVLQIDYRXURIWKHFRPSDQ\)RUWKHDVVHVVPHQW\HDUVDQG WKHPDWWHULVSHQGLQJEHIRUHWKH¿UVWDSSHOODWHDXWKRULW\ WKH&RPPLVVLRQHURI,QFRPHWD[ $SSHDOV Considering the facts, materiality and favourable order of the second appellate authority for assessment years 2006-07 and 2007-08 and the ¿UVWDSSHOODWHDXWKRULW\IRU DQG WKHPDQDJHPHQWEHOLHYHVWKDWWKH¿QDORXWFRPHRIPDMRULW\RIWKHDERYHGLVSXWHVIRUWKH UHPDLQLQJ\HDUVVKRXOGEHLQIDYRXURIWKH&RPSDQ\DQGWKHUHVKRXOGQRWEHDQ\PDWHULDOLPSDFWRQWKH¿QDQFLDOVWDWHPHQWV 34. Derivative Financial Instruments The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to hedge against IRUHLJQFXUUHQF\H[SRVXUHVUHODWLQJWRKLJKO\SUREDEOHIRUHFDVWWUDQVDFWLRQV7KH&RPSDQ\GRHVQRWHQWHULQWRDQ\GHULYDWLYHLQVWUXPHQWVIRU trading or speculative purposes. The counter party is generally a bank. These contracts are for a period between one day and two years. 7KHIROORZLQJ³VHOO´IRUHLJQH[FKDQJHIRUZDUGFRQWUDFWVDUHRXWVWDQGLQJDVDW March 31, 2015 March 31, 2014 Foreign Currency No. of Amount of Amount of 1RRI Amount of Amount of (FC) Contracts Forward Forward Contracts Forward Contracts Forward Contracts Contracts Contracts (FC in Lakhs) (` in Lakhs) (FC in Lakhs) (` in Lakhs) a 86' 50 229.80 15,460.96 70 238.10 15,340.05 bGBP 52 158.40 17,066.17 69 123.60 12,860.90 c CAD - - - 1 2.50 141.06 0DUNWR0DUNHW JDLQV ORVVHV As at As at March 31, 2015 March 31, 2014 Mark-to-Market losses provided for - 6.81 0DUNWR0DUNHW JDLQV UHSRUWHGLQKHGJLQJUHVHUYHDFFRXQW 5HIHUQRWH (1,880.91) (31.20) 0DUNWR0DUNHW JDLQV ORVVHV QHW (1,880.91) (24.39) &ODVVL¿HGDV2WKHUQRQFXUUHQWDVVHWV 5HIHUQRWH (309.58) (26.46) &ODVVL¿HGDV 2WKHUFXUUHQWDVVHWV 5HIHUQRWH 6KRUWWHUPSURYLVLRQ 5HIHUQRWH (1,571.33) 2.07 107 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 35. Related Party Disclosures $ (QWHUSULVHVZKHUHFRQWUROH[LVWV 6XEVLGLDULHVVWHSGRZQVXEVLGLDULHVZKROO\RZQHGH[FHSWDVLQGLFDWHG 0DMHVFR )RUPHUO\0DMHVFR0DVWHN 86$ KHOGE\WKH &RPSDQ\ 0DVWHN8./WG8. 0DVWHN$VLD3DFL¿F3WH/WG6LQJDSRUH 0DMHVFR6GQ%KG0DOD\VLD )RUPHUO\0DVWHN06&6GQ%KG Majesco Canada Limited, Canada (Formerly - MajescoMastek Canada Limited); Majesco (Thailand) Co. Ltd., Thailand (Formerly - Mastek MSC 7KDLODQG &R/WG 0DMHVFR6RIWZDUHDQG6ROXWLRQV,QF86$ )RUPHUO\0DMHVFR0DVWHN,QVXUDQFH6RIWZDUHDQG6ROXWLRQV,QF 9HFWRU ,QVXUDQFH6HUYLFHV//&86$ 0HUJHGZLWK0DMHVFR86$ZHI0DUFK 0LQH¿HOGV&RPSXWHUV/LPLWHG,QGLD KHOGE\WKH Company) and Majesco Software and Solutions India Private Limited, India. B. Other related parties with whom the Company had transactions during the year .H\0DQDJHPHQW3HUVRQQHO 6XGKDNDU5DP 5DGKDNULVKQDQ6XQGDU 9LQD\5DMDGK\DNVKD XSWR$XJXVW Stefan Van Overtveldt (up to April 30, 2014) )DULG.D]DQL .DOSDQD-DLVKDQNDU XSWR0DUFK Disclosure of transactions between the Company and related parties and the status of outstanding balances as on March 31, 2015, including names RIWKHUHODWHGSDUWLHVFRPSULVLQJPRUHWKHQRIWKHWRWDOWUDQVDFWLRQVEDODQFHVRIWKHVDPHW\SH (a) 7KH&RPSDQ\KDVHQWHUHGLQWRWUDQVDFWLRQVZLWKWKHIROORZLQJUHODWHGSDUWLHV Year ended Year ended March 31, 2015 March 31, 2014 i. Information Technology Services 0DVWHN 8. /LPLWHG 43,093.75 35,780.25 Majesco Software and Solutions Inc. 15,481.99 13,280.70 Others 2,828.08 3,461.27 ii. 2WKHU2SHUDWLQJ5HYHQXH6HFRQGPHQWIHHV Majesco (Thailand) Co. Ltd. 7.53 41.78 Majesco Software and Solutions Inc. 138.86 163.56 Majesco 77.98 99.05 Majesco Sdn. Bhd. 65.59 3.45 Others 52.79 31.56 iii. Dividend from subsidiary 0DVWHN 8. /LPLWHG 820.88 1,143.67 iv. Other income - Miscellaneous income Majesco 12.71 - 0LQH¿HOGV&RPSXWHUV/LPLWHG 1.80 - Others 0.28 - v. 5HLPEXUVDEOHH[SHQVHVUHFRYHUHGRQHPSOR\HHVWRFNRSWLRQVFKHPHV 0DVWHN 8. /LPLWHG 71.23 - Majesco Software and Solutions Inc. 40.29 - 0DMHVFR 8. /LPLWHG 6.84 - vi. 2WKHUUHLPEXUVDEOHH[SHQVHVUHFRYHUHGIURP 0DVWHN 8. /LPLWHG 1,177.71 437.27 Majesco Software and Solutions Inc. 167.45 172.18 Majesco 133.06 78.31 Others 48.48 17.19 vii. Total remuneration to key management personnel 6XGKDNDU5DP 119.40 124.20 5DGKDNULVKQDQ6XQGDU 27.28 27.28 9LQD\5DMDGK\DNKVKD 212.59 168.58 Stefan Van Overtveldt 227.05 475.69 )DULG.D]DQL 178.89 109.76 .DOSDQD-DLVKDQNDU 112.91 49.46 viii. (PSOR\HHVWRFNRSWLRQSODQH[HUFLVHSULFHSDLGE\ 9LQD\5DMDGK\DNKVKD 108.00 - )DULG.D]DQL 68.40 - .DOSDQD-DLVKDQNDU 46.15 - 108 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) (b) %DODQFHV As at As at March 31, 2015 March 31, 2014 i. 7UDGH5HFHLYDEOHV 0DVWHN 8. /LPLWHG 3,944.65 1,944.95 Majesco Software and Solutions Inc. 1,264.21 444.67 0DMHVFR 8. /LPLWHG 638.74 - Others 201.59 367.19 ii. 8QHDUQHGUHYHQXH Majesco Software and Solutions Inc. - 1,833.40 iii. 5HLPEXUVDEOHH[SHQVHVUHFHLYDEOH Majesco Software and Solutions Inc. 30.12 18.21 0DVWHN 8. /LPLWHG 682.41 11.60 Others 1.36 9.35 iv. Accrued revenue Majesco (Thailand) Co. Ltd. - 199.48 v. &RUSRUDWHJXDUDQWHHVLVVXHG6WDQGE\OHWWHURIFUHGLWJLYHQRQEHKDOIRIVXEVLGLDULHV Majesco 2,793.75 - vi. Purchase of Equity shares in subsidiaries Majesco 3,024.79 - 0LQH¿HOGV&RPSXWHUV/LPLWHG 5.00 - vii. Proceeds from sale of shares in subsidiaries Majesco Canada Limited (sold to Majesco) 439.47 - Majesco Sdn. Bhd. (sold to Majesco) 2,042.94 - 36. Segment reporting 7KH&RPSDQ\KDVSUHVHQWHGGDWDUHODWLQJWRLWVVHJPHQWVLQLWVFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVZKLFKDUHSUHVHQWHGLQWKHVDPHDQQXDOUHSRUW DV0DVWHN/LPLWHG,QWHUPVRISURYLVLRQVRI$FFRXQWLQJ6WDQGDUG $6 ±µ6HJPHQW5HSRUWLQJ¶QRGLVFORVXUHVUHODWHGWRVHJPHQWVDUHWKHUHIRUH SUHVHQWHGLQWKHVHVWDQGDORQH¿QDQFLDOVWDWHPHQWV 37. Micro, Small and Medium Enterprises 'LVFORVXUHRISD\DEOHWRYHQGRUVDVGH¿QHGXQGHUWKH³0LFUR6PDOODQG0HGLXP(QWHUSULVH'HYHORSPHQW$FW´LVEDVHGRQWKHLQIRUPDWLRQ available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on UHTXHVWVPDGHE\WKHFRPSDQ\7KHUHDUHQRRYHUGXHSULQFLSDODPRXQWVLQWHUHVWSD\DEOHDPRXQWVIRUGHOD\HGSD\PHQWVWRVXFKYHQGRUVDWWKH Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or on balance brought forward from previous year. 38. Other disclosures a. The Company is engaged in the development of computer software and other software related services. Considering the nature of business, certain details required under the revised schedule VI are not applicable, to the Company. b. Value of Imports on C.I.F. basis Year ended Year ended March 31, 2015 March 31, 2014 Capital goods 742.69 677.10 c. ([SHQGLWXUHLQIRUHLJQFXUUHQF\ ,QFOXGLQJH[SHQGLWXUHLQFXUUHGE\WKH&RPSDQ\¶V overseas branch) Salaries, wages and performance incentives 12,276.78 9,843.42 Travelling and conveyance 938.43 879.54 Consultancy charges 12,974.92 9,710.82 Professional fees 23.21 22.77 Advertisement and publicity 3.91 2.25 Communication charges 56.12 38.26 Electricity 6.20 7.87 Insurance 8.96 8.32 3ULQWLQJ VWDWLRQHU\ 16.89 7.56 5DWHVDQGWD[HV 63.88 36.33 5HFUXLWPHQWDQGWUDLQLQJH[SHQVH 101.40 46.42 5HQW 66.45 62.54 5HSDLUVWREXLOGLQJV 66.67 52.25 5HSDLUV RWKHUV 107.83 90.19 Purchase of hardware and software 298.49 290.87 Bank charges 0.17 0.31 Directors sitting fees 1.00 - 6WDIIZHOIDUHH[SHQVHV 967.41 850.80 0LVFHOODQHRXVH[SHQVHV 175.58 50.94 109 ANNUAL REPORT 2014-2015 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) Year ended Year ended March 31, 2015 March 31, 2014 d. (DUQLQJVLQIRUHLJQH[FKDQJH Income from information technology services 61,998.01 52,896.22 Other operating revenue - secondment fees 335.22 339.38 Dividend from subsidiaries 820.88 1,143.67 Others 18.03 7.71 39. $FTXLVLWLRQRI0LQH¿HOGV&RPSXWHUV/LPLWHG,QGLD During the year, the Company purchased 10,000 equity shares (including 6 equity shares purchased jointly with other shareholders) of face value of `HDFKRI0LQH¿HOGV&RPSXWHUV/LPLWHG ³0LQH¿HOGV IRUDWRWDOFRQVLGHUDWLRQRI` 1. Further, the Company has subscribed to 40,000 additional HTXLW\VKDUHVRI0LQH¿HOGVRI`HDFKIRUDWRWDOFRQVLGHUDWLRQRI`7KXVWKHWRWDOVKDUHKROGLQJRIWKH&RPSDQ\LQ0LQH¿HOGVDW0DUFK 2015 amounts to 50,000 equity shares of `HDFKIRUDWRWDOFRQVLGHUDWLRQRI`>5HIHUQRWH E @ 40. Other than temporary decline in the value of Investment in Majesco Canada Limited, Canada 'XULQJWKHSUHYLRXV\HDUHQGHG0DUFKEDVHGRQWKHUHYLHZRIWKHRSHUDWLRQVDQGWKHH[SHFWHGFDVKÀRZRILWVZKROO\RZQHGVXEVLGLDU\ 0DMHVFR&DQDGD/LPLWHG )RUPHUO\0DMHVFR0DVWHN&DQDGD/LPLWHG &DQDGD ³0&$1´ WKH0DQDJHPHQWRIWKH&RPSDQ\KDGGHWHUPLQHGDQG accounted an other than temporary decline in the carrying value of this investment amounting to `>5HIHUQRWH E @ 41. Sale of Investment in Majesco Canada Limited, Canada (formerly MajescoMastek Canada Limited, Canada) 'XULQJWKH\HDUWKH&RPSDQ\VROGLWVHQWLUHKROGLQJRIHTXLW\VKDUHVRI0DMHVFR&DQDGD/LPLWHG&DQDGD ³0&$1´ DZKROO\RZQHG VXEVLGLDU\EHIRUHWKLVVDOH WR0DMHVFR86$ DZKROO\RZQHGVXEVLGLDU\ IRUDWRWDOFRQVLGHUDWLRQRI` 439.47. This sale resulted in a gain of ` DVWKHFDUU\LQJYDOXHRI0&$1LQWKHERRNVRI0DVWHNZDVUHGXFHGWRQLOFRQVLGHULQJWKHSURYLVLRQIRURWKHUWKDQWHPSRUDU\GHFOLQHLQ value of `PDGHLQHDUOLHU\HDU 5HIHUQRWH 7KH*DLQKDVEHHQLQFOXGHGXQGHUWKHKHDGLQJ³H[FHSWLRQDOLWHPV´LQWKH6WDWHPHQWRI3UR¿W DQG/RVV 5HIHUQRWH 42. Purchase of Investment in Majesco, USA (formerly MajescoMastek, USA) 'XULQJ WKH \HDU WKH &RPSDQ\ SXUFKDVHG HTXLW\ VKDUHV RI 0DMHVFR 86$ IURP 0DVWHN 8. /LPLWHG IRU D WRWDO FRQVLGHUDWLRQ RI ` 86' . 6XEVHTXHQWWRSXUFKDVH0DVWHN/LPLWHGKROGVRI0DMHVFRDQGWKHEDODQFHLVKHOGE\0DVWHN 8. /LPLWHG 43. Sale of Investment in Majesco Sdn. Bhd., Malaysia (formerly Mastek MSC Sdn. Bhd., Malaysia) During the year, the Company sold its entire holding of 11,262,000 equity shares of Majesco Sdn. Bhd., Malaysia (“MSC”) (a wholly owned VXEVLGLDU\EHIRUHWKLVVDOH WR0DMHVFR86$ DZKROO\RZQHGVXEVLGLDU\ IRUDWRWDOFRQVLGHUDWLRQRI` 2,042.94. This sale resulted in a gain of ` WRWKH&RPSDQ\ZKLFKKDVEHHQLQFOXGHGXQGHUWKHKHDGLQJ³H[FHSWLRQDOLWHPV´LQWKH6WDWHPHQWRI3UR¿WDQG/RVV 5HIHUQRWH 44. Pursuant to the Scheme of Arrangement (the “ Scheme”) under Sections 391 to 394 read with Sections 100 to 103 and other applicable provisions of the Companies Act, 1956 and other applicable provisions of the Companies Act, 2013, the Board of Directors of Mastek Limited (the “Company” or “Mastek”), in its meeting held on September 15, 2014, had approved the demerger of the Insurance Products and Services business of the &RPSDQ\LQWRDQHZZKROO\RZQHGVXEVLGLDU\0LQH¿HOGV&RPSXWHUV/LPLWHG ³0LQH¿HOGV´ WREHUHQDPHGDV0DMHVFR/LPLWHG ³0DMHVFR,QGLD´ to be followed by transfer by Majesco India of the offshore insurance operations business in India to Majesco Software and Solutions India Private /LPLWHG ³066,3/´ DZKROO\RZQHGVXEVLGLDU\RI0DMHVFR6RIWZDUHDQG6ROXWLRQV,QF86$ ³06686´ 7KH$SSRLQWHGGDWHRIWKH6FKHPHZLOOEH April 1, 2014 or any other date as decided by the Board of Directors and the appointed date for the offshore insurance operations business transfer ZLOOEH1RYHPEHURUDQ\RWKHUGDWHDVGHFLGHGE\WKH%RDUGRI'LUHFWRUV±ERWKWKHVHGDWHVZLOOEHVXEMHFWWRWKHDSSURYDORIWKH+RQ¶EOH +LJK&RXUWRI%RPED\DQG+RQ¶EOH+LJK&RXUWRI*XMDUDW2QDSSURYDORIWKH6FKHPHE\WKHUHVSHFWLYH+LJK&RXUWV0DVWHNVKDUHKROGHUVZLOO JHWRQHHTXLW\VKDUHRI0DMHVFR,QGLDIRUHYHU\VKDUHKHOGLQ0DVWHNRYHUDQGDERYHWKHLUH[LVWLQJ0DVWHNVKDUHV0DMHVFR,QGLDLVSURSRVHGWR EHOLVWHGRQWKH%6(DQG16(EHLQJH[FKDQJHVZKHUH0DVWHNLVFXUUHQWO\OLVWHG8QGHUWKHSURSRVHGUHVWUXFWXULQJ0DVWHNZLOOFRQWLQXHZLWKWKH Solutions business. The company has obtained the necessary approval for the scheme under Clause 24 (f) of the Listing Agreements with BSE and 16(IURP6(%,RQ'HFHPEHU DQGLVLQWKHSURFHVVRIREWDLQLQJUHTXLVLWHDSSURYDOIURPWKHUHVSHFWLYH+LJK&RXUWV $VWKH&RPSDQ\¶V%RDUGKDVDSSURYHGWKHGHPHUJHUVFKHPHRIWKH,QVXUDQFH3URGXFWVDQG6HUYLFHVEXVLQHVV WKH³7UDQVIHUUHG8QGHUWDNLQJ´ RIWKH&RPSDQ\DQGDQDQQRXQFHPHQWRIWKHVDPHKDVEHHQPDGHWKH&RPSDQ\KDVWUHDWHGWKH7UDQVIHUUHG8QGHUWDNLQJDVDGLVFRQWLQXLQJ operation with effect from the proposed appointed date of the scheme i.e April 1, 2014. The demerger will result in transfer of the assets DQG OLDELOLWLHV DQG ,QGLDQ DQG JOREDO RSHUDWLRQV UHOHYDQW WR WKH 7UDQVIHUUHG 8QGHUWDNLQJ DQG WKH &RPSDQ\¶V LQYHVWPHQW LQ 0DMHVFR 86$ WR 0LQH¿HOGV&RPSXWHUV/LPLWHG WREHUHQDPHGDV0DMHVFR/LPLWHG WKHXOWLPDWHKROGLQJFRPSDQ\RIWKH7UDQVIHUUHG8QGHUWDNLQJ7KH7UDQVIHUUHG 8QGHUWDNLQJSUHGRPLQDWHO\UHODWHVWRWKH,QVXUDQFHEXVLQHVVYHUWLFDOUHSRUWHGXQGHUWKHVHFRQGDU\VHJPHQWUHSRUWLQJE\WKH&RPSDQ\LQLWV FRQVROLGDWHG¿QDQFLDOVWDWHPHQWV7KHH[LVWLQJVKDUHKROGHUVRI0DVWHNZLOOEHWKHVKDUHKROGHUVRIERWKWKHEXVLQHVVHVSRVWWKHGHPHUJHUWKURXJK their shareholdings in two separate listed companies viz. Mastek Limited and Majesco Limited, subject to court and regulatory approvals. 7KHGHWDLOVRIFDUU\LQJDPRXQWVRIDVVHWVDQGOLDELOLWLHVDWWULEXWDEOHWRWKH7UDQVIHUUHG8QGHUWDNLQJDWWKH%DODQFH6KHHWGDWHDUHDVEHORZ As at As at March 31, 2015 March 31, 2014 Total assets 27,127.16 27,085.09 Total liabilities 1,987.83 4,312.30 1HWDVVHWV 25,139.33 22,772.79 110 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2015 (All amounts in ` Lakhs, unless otherwise stated) 7KHUHYHQXHH[SHQVHVSUHWD[SUR¿WDQGWKHWD[H[SHQVHLQUHVSHFWRIRUGLQDU\DFWLYLWLHVDWWULEXWDEOHWRWKH7UDQVIHUUHG8QGHUWDNLQJGXULQJWKH \HDUDUHDVEHORZ Year ended Year ended March 31, 2015 March 31, 2014 Total revenue 23,247.60 22,098.28 7RWDOH[SHQVHV 21,340.74 20,971.06 3UR¿WEHIRUHWD[ 1,906.86 1,127.22 7D[H[SHQVH 647.41 383.14 3UR¿WDIWHUWD[IURPGLVFRQWLQXLQJRSHUDWLRQV 1,259.45 744.08 7KHQHWFDVKÀRZVDWWULEXWDEOHWRWKH7UDQVIHUUHG8QGHUWDNLQJGXULQJWKH\HDUDUHDVEHORZ Operating activities (904.93) 3,802.43 Investing activities 6,893.31 (5,708.76) Financing activities (14.27) (15.64) 1HWFDVKLQÀRZV RXWÀRZV 5,974.11 (1,921.97) 45. 3UHYLRXV\HDU¿JXUHVKDYHEHHQUHJURXSHGRUUHFODVVL¿HGZKHUHYHUQHFHVVDU\ In terms of our report of even date For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board )LUP5HJLVWUDWLRQ1XPEHU 11 )RUPHUO\3ULFH:DWHUKRXVH)LUP5HJLVWUDWLRQ1XPEHU 1 Pradip Kanakia Sudhakar Ram Partner Managing Director and Group CEO 0HPEHUVKLS1XPEHU S. Sandilya 1RQ([HFXWLYH&KDLUPDQDQG,QGHSHQGHQW'LUHFWRU Mumbai, April 22, 2015 Farid Kazani Group CFO and Finance Director Bhagwant Bhargawe Company Secretary Mumbai, April 22, 2015 111 ANNUAL REPORT 2014-2015 Limited Majesco Solutions India Private Software and 1$ 1$ Limited 0LQH¿HOGV Computers Co. Ltd. Majesco (Thailand) 50 7+% ,15 ,15 Majesco Sdn. Bhd. H+ROGLQJ&RPSDQ\ZKLFKLV0DUFK Ltd. Asia Mastek 3DFL¿F3WH CAD SGD Canada Limited Majesco Software and Solutions Inc. DLUPDQDQG *URXS&)2DQG)LQDQFH'LUHFWRU &RPSDQ\6HFUHWDU\ 86' 86' Majesco Majesco 5HSRUWLQJSHULRGVRIDOOWKH6XEVLGLDULHVDUHWKHVDPHDVRIWK Majesco (UK) Limited GBP GBP 92.47 92.47 62.5 62.5 49.033 45.475 16.875 1.92 Limited Mastek (UK) Lakhs 20,724.60 2,444.19 26,127.67 9,176.10 1,021.83 158.27 2,307.52 174.02 2.89 24.30 Lakhs 382.24 1,155.88 143.84 1.10 1,555.01 1,296.04 1,900.46 134.40 5.00 35.00 Lakhs 8,632.63 Lakhs 1,247.69 Lakhs 8,195.62 Lakhs 2,024.96 5,735.38 443.90 1,581.06 51.67 957.52 (2,600.04) 11.05 20.69 40.62 (2,543.46) (163.02) (56.58) 255.78 (399.05) (154.87) 700.81 (8.15) 4.72 (399.02) 0.93 58.57 - 4.72 (565.99) 42.65 0.65 (2.96) - (565.99) 15.92 (11.34) (2.96) - (11.34) - - Lakhs 15,612.00 40.62 17,788.21 3,439.63 (1,490.70) (1,158.45) 151.27 (661.20) (3.03) (11.34) Lakhs Lakhs 3,902.27 49,281.33 1,291.75 7,511.05 - 20,582.56 30,779.77 2,146.95 1,220.36 204.60 3,037.59 - 274.24 - - 118.31 - - - - ` ` ` ` ` ` ` ` ` Sudhakar Ram S. Sandilya Farid Kazani Bhagwant Bhargawe % shareholding 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Total Assets Total Share Capital Share Proposed Dividend ------([FKDQJHUDWHRQWKHODVWGDWHRIWKH in the case of foreign Financial Year subsidiaries 3UR¿WEHIRUH7D[ 3URYLVLRQIRU7D[ 3UR¿WDIWHU7D[ 5HVHUYHV 6XUSOXV Name of the Subsidiary Company 5HSRUWLQJFXUUHQF\ 5HSRUWLQJSHULRGIRUWKHVXEVLGLDU\FRQFHUQHGLI period reporting holding company’s from different Total Liabilites Total Investments Turnover Information relating to subsidiaries as at March 31, 2015 Independent Director Independent Mumbai, $SULO 0DQDJLQJ'LUHFWRUDQG*URXS&(2 1RQ([HFXWLYH&K STATEMENT PURSUANT TO SECTION 129 OF THE COMPANIES ACT, 2013 RELATING SUBSIDIARY 112 CORPORATE GOVERNANCE REPORT CORPORATE GOVERNANCE REPORT 2014-15 PART- I CLAUSE 49 OF LISTING GUIDELINES Mastek’s philosophy on Corporate Governance is embedded in the rich legacy of ethical governance practices, most of which were implemented before they were mandatorily prescribed by Government under the Companies Act, 2013. Mastek always believes that sound Corporate Governance is critical for enhancing long-term shareholder value and retaining investor trust. A Corporation is a congregation of various stakeholders, namely, customers, employees, investors, vendor partners, Government and society. A corporation should be fair and transparent to its stakeholders in all its transactions. This has become imperative in today’s globalized business world where corporations need to access global pools of capital, need to attract and retain the best human capital from various parts of the world, need to partner with vendors on mega collaborations and need to live in harmony with the community. Unless a corporation embraces and demonstrates ethical conduct, it will not be able to succeed. 151DUD\DQD0XUWK\&RPPLWWHHKDVGH¿QHG&RUSRUDWH*RYHUQDQFHDV “Corporate Governance is beyond the realm of law. It stems from the culture and mindset of management, and cannot be regulated by legislation alone. &RUSRUDWH*RYHUQDQFHGHDOVZLWKFRQGXFWLQJWKHDIIDLUVRIDFRPSDQ\VXFKWKDWWKHUHLVIDLUQHVVWRDOOVWDNHKROGHUVDQGWKDWLWVDFWLRQVEHQH¿WWKHJUHDWHVW number of stakeholders. It is about openness, integrity and accountability. What legislation can and should do, is to lays down a common framework – the “form” to ensure standards. The “substance” will ultimately determine the credibility and integrity of the process. Substance is inexorably linked to the mind set and ethical standards of management.” Mastek has always strived to go beyond the statutory and regulatory requirements of Corporate Governance. Our endeavor is to follow good governance both in letter as well as in spirit. A. Company’s Philosophy Corporate Governance is a set of systems and practises to ensure that the affairs of the Company are being managed in a way which ensures accountability, transparency, fairness in all its transactions with all its stakeholders in the widest sense. The Company’s philosophy of Corporate Governance, that of timely disclosures, transparent accounting policies and a strong and Independent Board, goes a long way in preserving Shareholders’ interest, while maximizing long-term shareholder value. Corporate Governance practised at the Company is not restricted to Board of Directors. It is an approach to Sustainable Development. Governance Structure Mastek’s Governance structure broadly comprises of the Board of Directors and the Committees of the Board at the apex level and the Management structure at the operational level. This layered structure brings about a harmonious blend in governance as the Board sets the overall corporate objectives and gives direction and freedom to the Management to achieve these corporate objectives within a given framework, thereby bringing DERXWDQHQDEOLQJHQYLURQPHQWIRUYDOXHFUHDWLRQWKURXJKVXVWDLQDEOHSUR¿WDEOHJURZWK B. Board of Directors (i) Size and Composition of the Board The Board of the Directors of the Company has a combination of Executive and Non-Executive Independent Directors with varied professional EDFNJURXQGLQWKH¿HOGRI,QIRUPDWLRQ7HFKQRORJ\,QVXUDQFH)LQDQFH0DUNHWLQJDQG6WUDWHJLF0DQDJHPHQW$VRQ0DUFKWKH%RDUG has 10 (ten) members, 4 (four) are promoter-directors and the rest 6 (six) are Independent Directors. The Chairman of the Board is a Non-Executive Independent Director. (ii) Managing Director & Group CEO The Managing Director & Group CEO is in overall control & responsible for day to day working of the Company. He gives strategic directions, lays down policy guidelines and ensures implementation of the decisions taken by the Board of Directors and its various Committees. (iii) Number of Board Meetings 'XULQJ WKH \HDU HQGHG 0DUFK (OHYHQ %RDUG 0HHWLQJV ZHUH KHOG RQ $SULO -XO\ 6HSWHPEHU 6HSWHPEHU6HSWHPEHU2FWREHU1RYHPEHU1RYHPEHU'HFHPEHU'HFHPEHU -DQXDU\ (iv) Directors’ Attendance and Directorships held Name of Director Category of No. of Board Attendance at No. of other No. of No. of Board Directorship Meetings last AGM on Directorship Committees Committees attended July 23, 2014 in other Memberships of Mastek on Companies in other which member Companies Mr. S. Sandilya Chairman & Non- Yes 41 Executive Director (Independent) Mr. Sudhakar Ram Managing Director & Yes Nil Nil NIl Group CEO (Promoter) Mr. Ashank Desai Non-Executive Director 7Yes3 Nil1 (Promoter) 114 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) Name of Director Category of No. of Board Attendance at No. of other No. of No. of Board Directorship Meetings last AGM on Directorship Committees Committees attended July 23, 2014 in other Memberships of Mastek on Companies in other which member Companies Mr. Ketan Mehta Non-Executive Director Yes 4 Nil Nil (Promoter) Mr. Radhakrishnan Executive Director 7YesNilNil1 Sundar (Promoter) Dr. Rajendra Sisodia Non- Executive 4Yes1 Nil1 Director (Independent) Ms. Priti Rao Non- Executive 10 Yes 3 Nil 1 Director (Independent) Mr. Venkatesh Non-Executive Director 11 Yes 2 Nil 2 Chakravarty (Independent) Mr. Atul Kanagat Non-Executive Director 8Yes1 NilNIL (Independent) Dr. Arun Non-Executive Director 7Yes2 Nil1 Maheshwari (Independent) Notes: 1. 1RQHRIWKH'LUHFWRUVLVDPHPEHURIPRUHWKDQ%RDUGOHYHOFRPPLWWHHVRUD&KDLUPDQRIPRUHWKDQ¿YHVXFKFRPPLWWHHVZKLFKLV LQFRPSOLDQFHZLWK&ODXVH RIWKHOLVWLQJDJUHHPHQW)XUWKHU1RQHRI'LUHFWRUVDFWDVDQ,QGHSHQGHQW'LUHFWRULQPRUHWKDQ/LVWHG Companies. 2. Particulars of Directors retiring by rotation and seeking re-appointment have been given in the Notice convening the 33rd Annual General Meeting and explanatory statement, attached thereto. 3. The Committees considered for the purpose of calculation of membership and/or chairmanship as discussed above are those as VSHFL¿HGLQH[LVWLQJ&ODXVH RIWKH6WDQGDUG/LVWLQJ$JUHHPHQW V LH$XGLW&RPPLWWHHDQG6KDUH7UDQVIHU,QYHVWRUV*ULHYDQFHDQG Stakeholder Relationship Committee. 4. $VSUHVFULEHGXQGHU6HFWLRQRI&RPSDQLHV$FWLQFDOFXODWLQJWKHQRRI'LUHFWRUVKLSV3ULYDWH/LPLWHG&RPSDQLHVZKLFKDUH neither a subsidiary nor a holding Company of Public Ltd. Co., have been excluded. Pecuniary Relationship or Transactions with Non- Member of the Board of Lean Global Network USA, Past Executive Directors. President of Society of Indian Automobile Manufacturers and President of International Motorcycle Manufacturers Mr. Ashank Desai, Non- Executive Director was provided Association, Geneva for the period 2012-2014. perquisites aggregating to ` 234,804/- during the year ended 0DUFK 0U6DQGLO\DKROGV (TXLW\6KDUHVLQWKH&RPSDQ\ The Company has received an approval from the Ministry 2. Mr. Sudhakar Ram: (DIN 00101473) of Corporate Affairs, Government of India, New Delhi on 6HSWHPEHU YLGHWKHLUOHWWHUQR651% Managing Director & Group CEO) &/9,IRUUHLPEXUVHPHQWRIFHUWDLQEHQH¿WVSHUTXLVLWHV Mr. Sudhakar Ram is a commerce graduate and a gold medalist to Mr. Ashank Desai against the application made to Ministry of from Chennai University. He did his PGDM from the Indian &RUSRUDWH$IIDLUV1HZ'HOKLIRUSD\PHQWRIFHUWDLQEHQH¿WV ,QVWLWXWHRI0DQDJHPHQW.RONDWDZLWKDVLOYHUPHGDOLQ perquisites not exceeding `/DNKVSHUDQQXP He was conferred with the CNBC, Asia “India Business Leader (v) Code of Conduct for Directors and Senior Management of the Year” Award in December 2007. He is a co-founder of Mastek Limited. The Company has prescribed a code of conduct for Directors and Senior Management of the Company. The said code has 0U6XGKDNDU5DPKROGV VKDUHVLQWKH&RPSDQ\ been posted on the Company’s website. 3. Mr. Radhakrishnan Sundar: (DIN 00533952) 3UR¿OHRI%RDUGRI'LUHFWRUV Executive Director 1. Mr. S. Sandilya: (DIN 00037542) Mr. Radhakrishnan Sundar did his B.E. in electronics from the Non-Executive Chairman & Independent Director Regional Engineering College, Trichy after which he did his PGDM from the Indian Institute of Management, Ahmedabad Mr. Sandilya is a Commerce Graduate from Chennai University LQ +HZRUNHGIRUWZR\HDUVZLWK+&//WGDIWHUZKLFKKH and holds MBA from the Indian Institute of Management, co-founded the Company. Ahmedabad and he has 40 years of professional experience. Mr. Sandilya is presently Chairman, Eicher Group. He joined 0U 5DGKDNULVKQDQ 6XQGDU KROGV VKDUHV LQ WKH (LFKHU*URXSLQ DQGKDVKHOGYDULRXVUHVSRQVLELOLWLHVLQ Company. WKHDUHDVRI*URXS)LQDQFHLQFOXGLQJ,QIRUPDWLRQ7HFKQRORJ\ 4. Mr. Ashank Desai: (DIN 00017767) Strategic Planning, Manufacturing and General Management. Additionally, Mr. Sandilya is Director of Tube Investments of Non-Executive Director India Limited, Rane Brake Lining Limited, GMR Infrastructure Mr. Ashank Desai, is B.E. from Mumbai University and in Limited, Director of Lean Management Institute of India, ANNUAL REPORT 2014-2015 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) graduating year, held the second rank in the University. He 8. Mr. Venkatesh Chakravarty: (DIN 01102892) holds a M. Tech Degree from the Indian Institute of Technology, Mumbai. He also holds Post Graduate Diploma in Business Non-Executive Director (Independent) Management (PGDBM) granted by the IIM Ahmedabad, from 0U&KDNUDYDUW\ LV TXDOL¿HG DV DQ $VVRFLDWH 0HPEHU RI WKH ZKHUH KH JUDGXDWHG LQ +H ZRUNHG ZLWK *RGUHM DQG Chartered Insurance Institute, UK (ACII, UK). He holds a Boyce before founding the Company. He is a founder member Master’s degree in Administrative Management from Bajaj and ex-chairman of NASSCOM and is also actively associated Institute of Management Studies and a Bachelor of Arts with several government bodies and trade associations. Degree in Economics, Political Science & Sociology. 0U$VKDQN'HVDLKROGV VKDUHVLQWKH&RPSDQ\ &KDNUDYDUW\ KDV PRUH WKDQ \HDUV RI H[SHULHQFH LQ WKH Mr. Ketan Mehta: (DIN 00129188 ) Insurance Industry. His experience spans across Insurance, Management Consulting, & Reinsurance. He has worked in Non-Executive Director various capacities in the Insurance industry beginning with Life Insurance Corporation of India, Eagle Star International in the Mr. Ketan Mehta is a Commerce Graduate from Gujarat Middle East and for KPMG India where he was an Associate University. He holds a Management Diploma granted by the Director, Management Consulting, responsible for Insurance Indian Institute of Management, Ahmedabad. He worked SUDFWLFH+HMRLQHG6ZLVV5H/LIH +HDOWKLQ6HSWHPEHU for two years with NOCIL, after which he co-founded the as a Business Development Manager in London responsible for Company. Life & Health business in India & Sri Lanka. He worked in Swiss 0U.HWDQ0HKWDKROGV VKDUHVLQWKH&RPSDQ\ Re, London for nearly a year before assuming responsibility LQ 6ZLVV 5H 0XPEDL RI¿FH +H KDV EHHQ WKH +HDG RI /LIH 6. Ms. Priti Rao: (DIN NO. 03352049) & Health Business and a Director on the Board of Swiss Re Services India Pvt. Ltd. for more than 10 years. He resigned as Non-Executive Director (Independent) a Director from Swiss Re on March 4, 2013 and has moved on Ms. Rao is a postgraduate in Computer Science from Indian to pursue personal interests. Institute of Technology (IIT), Mumbai. Mr. Chakravarty does not hold any shares in the Company. In her 26 years of diverse experience building and delivering Mr. Atul Kanagat: (DIN 06452489) D UDQJH RI ,7 VHUYLFHV IRU FXVWRPHUV ORFDWHG DFURVV ¿YH continents, Ms. Rao has held very senior positions with global Non-Executive Director (Independent) teams for best of breed IT companies. She has had long innings with Infosys as a senior executive heading the Pune Mr. Atul Kanagat is a B.Tech in Mechanical Engineering from development center and heading their infrastructure services Indian Institute of Technology, Powai and a MBA from Harvard business and with Dell as vice president for global operations. Business School, Boston, Massachusetts. She runs her own venture, Pumpkin Patch Daycare to cater Mr. Kanagat initially joined Hindustan lever Ltd., the Indian to needs of young parents, who need a trusted place to keep subsidiary of Unilever. He spent two years as Management their children and be able to focus on their careers. India lacks Trainee doing assignments in multiple functions of the such world class infrastructure for a crèche, where love, safety, company. He then spent a year as Materials Manager for care are most important aspects. Hindustan lever Ltd’s Calcutta Manufacturing complex. Ms. Priti Rao is widely recognized as an accomplished business $IWHU FRPSOHWLQJ KLV 0%$ DW +DUYDUG LQ 0U .DQDJDW leader and was conferred with the prestigious “IT woman of joined McKinsey & Company in Chicago. He was elected as the year award” for 2002 by the Computer Society of India. 3DUWQHULQ 'LUHFWRULQ DQGWKHUHDIWHUDV0DQDJLQJ Ms. Priti Rao holds 7,400 shares in the Company. 'LUHFWRUGXULQJWKHSHULRG WR 7. Dr. Rajendra S. Sisodia: ( DIN 03105198) 'XULQJWKHSHULRG WR0U.DQDJDWZDVD0HPEHURI the Boards of the following institutions: Non-Executive Director (Independent) 6HDWWOH6\PSKRQ\ Dr. Sisodia is an electrical engineer from BITS, Pilani, India and also has MBA degree in Marketing from the Bajaj Institute of )UHG+XWFK&DQFHU5HVHDUFK&HQWHU Management Studies in Mumbai and a Ph.D. in Marketing & *UHDWHU6HDWWOH&KDPEHURI&RPPHUFH Business Policy from Columbia University, where he was the %RR]$OOHQ+DPLOWRQ)HOORZ 'XULQJWKHSHULRGWR 0U.DQDJDWZDVDOVRRQWKH %RDUGRI/LEHUW\6FLHQFH&HQWHULQ-HUVH\&LW\ 'U 6LVRGLD LV ): 2OLQ 'LVWLQJXLVKHG 3URIHVVRU RI *OREDO %XVLQHVV DQG :KROH )RRGV 0DUNHW 5HVHDUFK 6FKRODU LQ During the period 2010 to 2011, Mr. Kanagat worked for Conscious Capitalism at Babson College. He was previously Harman International as Vice President- Strategy & Mergers & 7UXVWHH3URIHVVRURI0DUNHWLQJDQGWKH)RXQGLQJ'LUHFWRURI Acquisition. the Center for Marketing Technology at Bentley University. +H LV DOVR WKH &R)RXQGHU DQG &R&KDLUPDQ RI &RQVFLRXV Mr. Kanagat does not hold any shares in the Company. Capitalism Inc. 10. Dr. Arun Maheshwari: (DIN 01682147) Dr. Sisodia has authored several books (including Conscious Non-Executive Director (Independent) &DSLWDOLVP /LEHUDWLQJWKH+HURLF6SLULWRI%XVLQHVVDQG)LUPVRI (QGHDUPHQW +RZ:RUOG&ODVV&RPSDQLHV3UR¿WIURP3DVVLRQ Dr. Arun Maheshwari studied at IIM, Calcutta, before leaving & Purpose) and published over 100 articles (in publications IRUWKH86LQ IRUIXUWKHUVWXGLHV'U0DKHVKZDULKDVD VXFK DV WKH +DUYDUG %XVLQHVV 5HYLHZ -RXUQDO RI %XVLQHVV Master’s degree in Computer Science from Stanford University, 6WUDWHJ\-RXUQDORI0DUNHWLQJDQGRWKHUV an MBA from Columbia University and a Ph.D. from Wharton School of Business. Dr. Maheshwari taught at Wharton, Temple 'U6LVRGLDGRHVKROGV VKDUHVLQWKH&RPSDQ\ 8QLYHUVLW\¶V )R[ 6FKRRO RI %XVLQHVV DQG 1<8¶V 6WHUQ 6FKRRO while working on his Ph. D. degree. 116 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) 'U0DKHVKZDULUHWXUQHGWR,QGLDLQ DIWHUKLVHGXFDWLRQLQ 6LJQL¿FDQWDGMXVWPHQWVDULVLQJRXWRIDXGLW USA and joined Tata Consultancy Services (TCS), as a senior 7KHJRLQJFRQFHUQDVVXPSWLRQ executive responsible for marketing, software development, DQGPDQDJHPHQWFRQVXOWLQJ'U0DKHVKZDULZDV7&6¶V¿UVW &RPSOLDQFHZLWKDFFRXQWLQJVWDQGDUGV head of marketing / business development. After about three &RPSOLDQFH ZLWK VWRFN H[FKDQJH DQG years, he decided to migrate to the USA and joined McKinsey, OHJDO UHTXLUHPHQWV FRQFHUQLQJ ¿QDQFLDO LQ1HZ 117 ANNUAL REPORT 2014-2015 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) 'XULQJWKH\HDUHQGHG0DUFKWKH&RPPLWWHH WKH&RPSDQ\DVVSHFL¿HGLQ6FKHGXOH9,,RIWKH PHWWLPHVRQ$SULO-XO\6HSWHPEHU Companies Act, 2013. 2FWREHU1RYHPEHUDQG -DQXDU\ 7KH DWWHQGDQFH RI WKH PHPEHUV DW 5HFRPPHQG WKH DPRXQW RI H[SHQGLWXUH WR EH the meetings is stated below: incurred on the activities. 0RQLWRUWKH&RUSRUDWH6RFLDO5HVSRQVLELOLW\3ROLF\ Name of Member Status No. of Meetings of the Company from time to time. attended Meetings (ii) Composition Mr. S. Sandilya Chairman The Chairperson of the Committee is Ms. Priti Rao. The Mr. Ashank Desai Member other members are Dr. Rajendra Sisodia, Mr. Sudhakar Ms. Priti Rao Member 6 Ram and Mr. Ashank Desai. The Company Secretary is the Secretary of the Committee. Mr.Venkatesh Member 6 Chakravarty 'XULQJWKH\HDUHQGHG0DUFKWKH&RPPLWWHH PHWIRXUWLPHVRQ$SULO-XO\2FWREHU The meetings are attended by Internal Auditors and DQG-DQXDU\7KHDWWHQGDQFHRIWKH Statutory Auditors. The Committee’s observations are members at the meeting is stated below: followed up with the respective departments and the follow-up actions are reported to the Committee at Name of the Status No. of Meetings the subsequent committee meetings. The Committee, Member attended along with the statutory auditors, reviews the quarterly, half-yearly and annual results at the Audit Committee Ms. Priti Rao Chairperson 4 meetings before recommending them to the Board of Dr. Rajendra Sisodia Members 3 Directors. Mr. Sudhakar Ram Members 4 2. Share Transfer, Investor Grievances and Stakeholders Mr. Ashank Desai Members 4 Relationship Committee 4. Nomination and Remuneration Committee (i) Terms of Reference (i) Terms of reference &RQVLGHU DQG UHVROYH WKH JULHYDQFHV RI (TXLW\ Share holders of the Company. 7R LGHQWLI\ WKH SHUVRQV ZKR DUH TXDOL¿HG WR become Director, or who may be appointed in $SSURYHDOORWPHQWRIVKDUHVRQH[HUFLVHRIRSWLRQV senior management of the Company. by Employees under various ESOP Schemes, subject to completion of all necessary formalities. 7ROD\GRZQFULWHULD¶VIRUWKH&RPSDQ\¶VQRPLQDWLRQ process for the above positions and oversee the (ii) Composition implementation thereof. The Chairman of the Committee is Mr. Venkatesh 7R¿QDOL]HDQGUHFRPPHQGWR%RDUGWKHWHUPVRI Chakravarty. Other members are Mr. Radhakrishnan remuneration for Directors, Senior Management, Sundar, Dr. Rajendra Sisodia and Dr. Arun Maheshwari. Key Managerial personnel & other senior The Company Secretary is the Secretary of the employees of the organization. Committee. 7RUHYLHZDOOGRFXPHQWVSHUWDLQLQJWRFDQGLGDWHV The Committee meets periodically to review grievances and conduct evaluation of candidates in accordance of Investors/ Shareholders and to consider requests for ZLWKDSURFHVVDQGLIGHHPHG¿WDQGDSSURSULDWH share transfer/ transmission, allotment of shares etc. do the recommendation for the nomination to 'XULQJWKH\HDUHQGHG0DUFKWKH&RPPLWWHH the Board or for the senior management of the PHWWLPHVRQ$SULO-XQH-XQH Company and their removal, if any. -XO\$XJXVW2FWREHU 7RGHFLGHDQGIRUPXODWHGHWDLOHGWHUPVDQG 'HFHPEHU -DQXDU\0DUFK conditions of the Employees Stock Option Plan, DQG0DUFK7KHDWWHQGDQFHRIWKHPHPEHUVDW JRYHUQHGE\WKHJXLGHOLQHVLVVXHGE\6(%,LQ-XQH the meetings is stated below: DQGDVDPHQGHGIURPWLPHWRWLPH Status No. of 7R¿QDOL]HWKHVWRFNRSWLRQVWREHJUDQWHGWRWKH Meetings employees of the Company under the scheme & Name of Member attended ¿QDOL]DWLRQRILQFHQWLYHSODQIRUWKHHPSOR\HHVRI Mr. Venkatesh Chakravarty Chairman 8 the Company. Mr. Radhakrishnan Sundar Member 10 7RUHFRPPHQGWKHFRPSHQVDWLRQVWUXFWXUHRIWKH Dr. Arun Maheshwari Member Directors and KMP’s to the Board Dr. Rajendra Sisodia Member 4 )RUPXODWHWKHFULWHULDIRUGHWHUPLQLQJTXDOL¿FDWLRQV positive attributes and independence of a director 3. Corporate Social Responsibility Committee (CSR) and recommend to the Board a policy, relating to The Company has constituted CSR Committee as required the remuneration for the directors, key managerial XQGHU6HFWLRQRIWKH&RPSDQLHV$FW personnel and other employees. (i) Terms of reference 7R UHFRPPHQG WKH DPRXQW RI ,QFHQWLYHV WR EH )RUPXODWH DQG UHFRPPHQG WR WKH %RDUG D paid to MD & Group CEO Corporate Social Responsibility Policy which 7R ¿[ WKH VLWWLQJ IHHV IRU 'LUHFWRUV 1RQ IRU shall indicate the activities to be undertaken by attending Board as well as Committee Meetings. 118 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) HQVXUHWKDW² Board members. (a) the level and composition of remuneration (ii) Composition LV UHDVRQDEOH DQG VXI¿FLHQW WR DWWUDFW retain and motivate directors of the quality The Chairman of the Committee is Mr. Ashank Desai. required to run the company successfully; The other members are Mr. Ketan Mehta, Ms. Priti Rao and Mr. Radhakrishnan Sundar. The Company Secretary (b) relationship of remuneration to performance is the Secretary of the Committee. is clear and meets appropriate performance benchmarks; and 'XULQJWKH\HDUHQGHG0DUFKWKH&RPPLWWHH PHWWLPHVRQ$SULO-XO\2FWREHU (c) remuneration to directors, key managerial DQG-DQXDU\7KHDWWHQGDQFHRIWKH personnel and senior management involves members at the meetings is stated below: DEDODQFHEHWZHHQ¿[HGDQGLQFHQWLYHSD\ UHÀHFWLQJVKRUWDQGORQJWHUPSHUIRUPDQFH Name of Member Status No. of Meetings objectives appropriate to the working of the attended company and its goals: Mr. Ashank Desai Chairman 4 (ii) Composition Mr. Ketan Mehta Member 3 The Chairman of the Committee is Mr. Atul Kanagat. The Ms. Priti Rao Member 4 other members are Mr. S. Sandilya, Mr. Ketan Mehta and Mr. Radhakrishnan Member 4 Dr. Rajendra Sisodia. Sundar 'XULQJWKH\HDUHQGHGRQ0DUFKWKH&RPPLWWHH 7. Corporate Directions Committee PHWVL[WLPHVRQ$SULO0D\-XO\ 6HSWHPEHU2FWREHU-DQXDU\ The Board of Directors of the Company has Corporate 7KH DWWHQGDQFH RI WKH PHPEHUV DW WKH Directions Committee. It has the following members: meetings is stated below: 1. Dr. Arun Maheshwari - Chairman Name of Member Status No. of Meetings 2. Mr. Atul Kanagat attended 3. Mr. Ketan Mehta Mr. Atul Kanagat Chairman Mr. S. Sandilya Member 6 4. Mr. Sudhakar Ram Mr. Ketan Mehta Member Terms of reference Dr. Rajendra Sisodia Member 4 7RHVWDEOLVK9LVLRQ0LVVLRQ9DOXHV Independent Directors’ Meeting 7RIRUPXODWH\HDUVWUDWHJLFGLUHFWLRQDQGJRDOVRIWKH During the year under review, the Company arranged Company for consideration and approval of the Board. ,QGHSHQGHQW'LUHFWRUV¶PHHWLQJVRQ$SULO-XO\ D. POLICY FOR SELECTION AND APPOINTMENT OF DIRECTORS 2FWREHU DQG-DQXDU\LQWHU DOLDWR AND THEIR REMUNERATION discuss: The Nomination and Remuneration (N&R) Committee has a policy 7RGLVFXVV¿QDQFLDOVRI&RPSDQ\ which deals with the manner of selection of Board of Directors and 7RWDNHLQWRDFFRXQWYLHZVRI([HFXWLYH 1RQ([HFXWLYH Key Managerial Personnel (KMP) and their remuneration. Directors 1. Criteria of selection of Non-Executive Directors 7R GLVFXVV WLPHOLQHV IRU ÀRZ RI LQIRUPDWLRQ EHWZHHQ Management & Board to enable the Board to perform 1RQ([HFXWLYH ,QGHSHQGHQW 'LUHFWRUV DUH H[SHFWHG duties effectively & reasonably. to bring in objectivity and independence during Board deliberations around the Company’s Strategic approach, (YDOXDWLRQ 3HUIRUPDQFHRI%RDUGDVZKROH performance and risk management. They must also (YDOXDWLRQ RI 3HUIRUPDQFH RI 0DQDJLQJ 'LUHFWRU HQVXUH YHU\ KLJK VWDQGDUGV RI ¿QDQFLDO SURELW\ DQG Group CEO of Company taking into account the views of corporate governance. Executive & Non-Executive Directors. 7KH,QGHSHQGHQW'LUHFWRUVDUHDOVRH[SHFWHGWRFRPPLW NON-MANDATORY COMMITTEES: DQGDOORFDWHVXI¿FLHQWWLPHWRPHHWWKHH[SHFWDWLRQVRI their role as Non-Executive Independent Directors, to 6. Governance Committee the satisfaction of the Board. (i) Terms of reference &RQÀLFWRI,QWHUHVW 7KH,QGHSHQGHQW'LUHFWRUVDUHQRW 7R GHYHORS DQG UHFRPPHQG WR WKH %RDUG RI to involve themselves in situations which directly or Directors a set of corporate governance principles LQGLUHFWO\PD\FRQÀLFWZLWKWKHLQWHUHVWVRIWKH&RPSDQ\ applicable to the Company, to review these It is accepted and acknowledged that they may have principles periodically and to monitor compliance business interests, other than those of the Company. with those principles. As a pre-condition to their appointment as Independent Directors, they shall be required to declare any such 7R UHYLHZ DQG DSSURYH QHZ SROLFLHV UHODWLQJ WR FRQÀLFWV WR WKH %RDUG LQ ZULWLQJ LQ WKH SUHVFULEHG corporate governance and to review current policies format, at the time of their appointment. and practices and recommend improvements. (DFK ,QGHSHQGHQW 'LUHFWRU LV LVVXHG DSSRLQWPHQW 7RGHYHORSQRUPVIRUHYDOXDWLRQRIWKH%RDUGRI letter with clear guidelines on their roles, duties and Directors. responsibilities as Independent Directors. The key 7R UHFRPPHQG WKH DUHDV RI WUDLQLQJ QHHGHG IRU elements in which every Independent Director will be ANNUAL REPORT 2014-2015 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) expected to contribute are : Strategy, Performance, Risk, 9DULDEOHEDVHGRQWKHQXPEHURI%RDUGPHHWLQJV People, Reporting and Compliance. attended. 2. Remuneration Policy for the KMPs The total remuneration paid to all Non- Executive Directors ZLOOKDYHDQXSSHUOLPLWRIRIQHWSUR¿WRIWKH&RPSDQ\ I. In determining the remuneration of KMPs, the N & R Sitting fees are excluded in the above calculation) Committee shall ensure / consider the following: Number of options/equity shares held by Independent :KLOH ¿[LQJ WKH UHPXQHUDWLRQ IRU .03V WKH 'LUHFWRUVDVRQ0DUFK Company shall consider industry benchmarks and the competence of the persons and ensure that Name of Director No. of Options No. of Equity the level and composition of the remuneration is granted Shares held UHDVRQDEOH DQG VXI¿FLHQW WR DWWUDFW UHWDLQ DQG motivate them. Ms. Priti Rao 7,400 Dr. Rajendra Sisodia 7KH FRPSHQVDWLRQ VWUXFWXUH RI .03V ZLOO EH benchmarked with industry salary trends and will Mr. Venkatesh Chakravarty Nil KDYHFRPSRQHQWVRI¿[HGEDVHVDODU\DVZHOODV Mr. S. Sandilya 26,000 variable pay. The variable pay will be linked to Mr. Atul Kanagat 24,600 Nil business performance parameters, as separately Dr. Arun Maheshwari NIL outlined in a Variable Pay Plan document. Number of equity shares held by other Non-Executive Directors 3. Remuneration of Directors DVRQ0DUFK :KLOH ¿[LQJ WKH UHPXQHUDWLRQ IRU .03V WKH &RPSDQ\ shall consider industry benchmarks and the competence Name of the Director Number of Shares of the persons and ensure that the level and composition Mr. Ashank Desai RI WKH UHPXQHUDWLRQ LV UHDVRQDEOH DQG VXI¿FLHQW WR Mr. Ketan Mehta attract, retain and motivate them. E. PERFORMANCE EVALUATION 7KH VLWWLQJ IHHV IRU WKH ,QGHSHQGHQW 'LUHFWRUV DQG 1RQ([HFXWLYH'LUHFWRUVLV¿[HGDW` 20,000/- (Rupees ,Q FRPSOLDQFH ZLWK &RPSDQLHV $FW DQG &ODXVH RI WKH Twenty thousand only) per meeting of the Board and ` Listing Agreement, the performance evaluation of the Board as a 10,000/- (Rupees Ten thousand only) per meeting, if the whole and of the Individual Directors was carried out during the year Director is also a member of the Audit Committee and under review. attends them. With the help of an Expert, a structured questionnaire was prepared after 7KH ,QGHSHQGHQW 'LUHFWRUV PD\ EH SDLG UHPXQHUDWLRQ taking into consideration inputs received from the Directors, covering E\ZD\RI&RPPLVVLRQEDVHGRQWKH1HW3UR¿WVRIWKH various aspects of the Board’s functioning such as adequacy of the Company, subject to a maximum of one percent (1%) of composition of the Board and its Committees, Board culture, execution WKH1HW3UR¿WRIWKH&RPSDQ\DVPD\EHDSSURYHGE\ DQGSHUIRUPDQFHRIVSHFL¿FGXWLHVREOLJDWLRQVDQGJRYHUQDQFH the Board and the Shareholders, from time to time. A separate exercise was carried out to evaluate the performance The Board of Directors decides and approves the remuneration of individual Directors including the Chairman of the Board, who of Non-Executive Directors. were evaluated on parameters such as level of engagement and Details of Remuneration of Non-Executive Directors for the contribution, independence of judgment, safeguarding the interest HQGHG0DUFKDUHVWDWHGEHORZ of the Company and its minority shareholders etc. The Directors expressed satisfaction with the evaluation process. Name Perquisites Sitting Commission Total INDUCTION/TRAINING OF THE BOARD: (`) Fees (`) (`) (`) Every new Independent Director of the Board needs to attend an Mr. Ashank Desai 234,804/- 170,000/- NIL 404,804/- Orientation Program organized by the Company. Presentations Ms. Priti Rao NIL 240,000/- NIL 240,000/- DUHPDGHE\0DQDJLQJ'LUHFWRU *URXS&(2 *URXS&)2 Dr. Rajendra NIL 60,000/- NIL 60,000/- )LQDQFH 'LUHFWRU 6HQLRU 0DQDJHULDO SHUVRQQHO WKHUHDW SURYLGLQJ Sisodia an overview of strategy, operations and functions of the Company. Mr. Venkatesh NIL 240,000/- NIL 2,40,000/- An opportunity is provided to the Directors to interact with senior Chakravarty leadership of the Company and help them to get ground level information on the Company’s Products offering, Markets, Software Mr. S. Sandilya NIL 210,000/- NIL 2,10,000/- 'HOLYHU\2UJDQL]DWLRQ 6WUXFWXUH )LQDQFH +5 7HFKQRORJ\4XDOLW\ Mr. Atul Kanagat NIL 40,000/- NIL 40,000/- facilities and Risk Management. Dr. Arun NIL NIL NIL NIL ) TERMS OF APPOINTMENT & REMUNERATION TO MR. Maheshwari SUDHAKAR RAM MANAGING DIRECTOR & GROUP CEO: Total 234,804/- NIL Mr. Sudhakar Ram was appointed as the Chairman & Managing Criteria of payment of remuneration by way of commission to 'LUHFWRURIWKH&RPSDQ\IRUDSHULRGRI\HDUVZLWKHIIHFWIURP-XO\ Non- Executive Directors:- WR-XQHYLGHVKDUHKROGHU¶VUHVROXWLRQGDWHG-XO\ 6XEMHFW WR DYDLODELOLW\ RI SUR¿WV FDOFXODWHG XQGHU 6HFWLRQ 2014. UHDGZLWK6HFWLRQ RIWKH&RPSDQLHV$FW1RQ Subsequently the Nomination & Remuneration Committee of the Executive Directors of the Company may also be entitled to Board and the Board of Directors of the Company, at their respective commission and the same will be paid as per the following PHHWLQJVKHOGRQ-DQXDU\DQGWKHVKDUHKROGHUVDWWKHLU remuneration structure: ([WUD2UGLQDU\ *HQHUDO 0HHWLQJ KHOG RQ 0DUFK KDYH )L[HG DSSURYHG PRGL¿FDWLRQ LQ WHUPV RI UHPXQHUDWLRQ RI 0U 6XGKDNDU 120 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) Ram as Managing Director & Group CEO of Mastek Limited for the As may be permitted as per the policy of the Company or by the Board EDODQFHSHULRGIURP$SULOXSWR-XQHRQWKHWHUPV of Directors and/or the Nomination & Remuneration Committee of and conditions and remuneration as under: the Board of Directors. Basic Salary: )RUWKHSXUSRVHVRIFDOFXODWLQJWKHDERYHFHLOLQJSHUTXLVLWHVVKDOO be evaluated as per Income-tax Rules, wherever applicable. In the ` 5XSHHV6L[/DNKVDQG7ZHQW\)LYH7KRXVDQGRQO\ SHU absence of any such Rules, perquisites shall be evaluated on actual month, with an option of annual increment as may be decided by basis. the Nomination & Remuneration Committee and Board of Directors of the Company, from time to time. Provision of car and telephone for use of the Company’s business and telephone at the Managing Director & Group CEO’s residence Bonus: will not be considered as perquisites. Based on the performance as may be evaluated by the Board of ,QWKHHYHQWRILQDGHTXDF\RISUR¿WVRUQRSUR¿WVWKHUHPXQHUDWLRQ the Directors/ Nomination & Remuneration Committee, from time to or perquisites of the Managing Director and Group CEO shall be time up to a maximum of ` 30 lakhs per annum. subject to the limits prescribed under Schedule V to the Companies +RXVLQJ%HQH¿W Act, 2013. 7KH &RPSDQ\ ZLOO SD\ ¿IW\ SHUFHQW RI WKH %DVLF 6DODU\ DV G. SUBSIDIARY COMPANIES House Rent Allowance to Mr. Sudhakar Ram. The Company has a policy on Material Subsidiary and same is placed Special Allowance: on the website of the Company. ` 5XSHHV 7ZR/DNKV 7KLUW\ 6HYHQ 7KRXVDQG DQG )LYH 7KH$XGLWHG$QQXDO)LQDQFLDO6WDWHPHQWVRI6XEVLGLDU\&RPSDQLHV Hundred only) per month. are tabled at the Audit Committee and Board Meetings and same are placed on the website of the Company viz http://www.mastek.com/ Car Facility: LQYHVWRUV¿QDQFLDOVVXEVLGLDU\FR¶V Car facility with driver to be used for the business of the Company. The copies of the Minutes of the Board Meetings of Subsidiary Club Fees Companies are individually given to all the Directors and are tabled at the subsequent Board Meetings. 5HLPEXUVHPHQWRI&OXE)HHVXSWRPD[LPXPWZRFOXE H. RELATED PARTY TRANSACTIONS Telephone: )UHHWHOHSKRQHIDFLOLW\DWKLVUHVLGHQFHWREHXVHGIRUWKHEXVLQHVVRI $OOWUDQVDFWLRQVHQWHUHGLQWRZLWK5HODWHG3DUWLHVDVGH¿QHGXQGHU the Company. WKH&RPSDQLHV$FWDQG&ODXVH RIWKH/LVWLQJ$JUHHPHQW GXULQJWKH¿QDQFLDO\HDUZHUHLQWKHRUGLQDU\FRXUVHRIEXVLQHVVDQG Provident Fund Contribution: on an arm’s length pricing basis and do not attract the provisions of Section 188 of the Companies Act , 2013. There were no transactions Company’s contribution towards provident fund as per rules of the ZLWKUHODWHGSDUWLHVGXULQJWKH¿QDQFLDO\HDUZKLFKZHUHLQFRQÀLFW Company, but not exceeding 12% of basic salary. with the interest of the Company. Suitable disclosure as required by Gratuity: the Accounting Standards (AS18) has been made in the notes to the )LQDQFLDO6WDWHPHQWV As per rules of the Company. The Board has approved a policy for related party transactions Perquisites: which has been uploaded on the Company’s website viz http://www. mastek.com/investors/shareholder-services I. General Body Meetings (i) Particulars of Annual General Meetings held during the last three years: Financial Year Year Date Time Location 2013-14 -XO\ 11.00 A.M Ahmedabad Management Association Hall, Ahmedabad 2012-2013 -XO\ 11.00 A.M. Ahmedabad Management Association Hall, Ahmedabad 2011-2012 2FWREHU 11.00 A.M Gajjar Hall, Ahmedabad (ii) Special Resolution passed in 3 previous Annual General Meetings: Annual General Meeting Special Resolution 7KLUW\6HFRQG$QQXDO*HQHUDO0HHWLQJKHOGRQ-XO\ 1R6SHFLDO5HVROXWLRQSDVVHGLQWKLV$QQXDO*HQHUDO0HHWLQJ 7KLUW\)LUVW$QQXDO*HQHUDO0HHWLQJKHOGRQ-XO\ 3D\PHQWRI&RPPLVVLRQWR1RQ([HFXWLYH'LUHFWRUV (PSOR\HH6WRFN2SWLRQ3ODQ(6233ODQ9,,WR(PSOR\HHVRIWKH&RPSDQ\ (PSOR\HH 6WRFN 2SWLRQ 3ODQ(623 3ODQ 9,, WR (PSOR\HHV RI WKH Subsidiary Companies. (PSOR\HH 6WRFN 2SWLRQ 3ODQ(623 3ODQ 9,, WR FHUWDLQ LGHQWL¿HG employees of its company and its subsidiaries, stock options, which may be equal to exceed 1% of the issued capital of the company 7KLUWLHWK$QQXDO*HQHUDO0HHWLQJKHOGRQ2FWREHU 3D\PHQWRIFHUWDLQEHQH¿WV3HUTXLVLWHVWR0U$VKDQN'HVDL $OWHUDWLRQRI$UWLFOHVRI DQGRIWKH$UWLFOHVRI$VVRFLDWLRQRI the Company. 121 ANNUAL REPORT 2014-2015 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) (iii) Extraordinary General Meeting (EGM) The Code lays down the standard of conduct which is expected to be followed by the Directors and the designated employees The Company held an Extra-ordinary General Meeting on in their business dealings and in particular on matters relating to 0DUFKIRUWKHDSSRLQWPHQWRI,QGHSHQGHQW'LUHFWRUV integrity in the work place, in business practices and in dealing with i.e. Mr. S. Sandilya, Mr. Atul Kanagat and Ms. Priti Rao and stakeholders. The Code gives guidance through examples on the DSSURYDORI0RGL¿FDWLRQRIWKHWHUPVRIUHPXQHUDWLRQSD\DEOH expected behaviour from an employee in a given situation and the to Mr. Sudhakar Ram, Managing Director & Group CEO. reporting structure. 7KHVSHFLDOUHVROXWLRQZDVSDVVHGIRUPRGL¿FDWLRQRIWKHWHUPV All the Board Members and the Senior Management personnel of remuneration payable to Mr. Sudhakar Ram as Managing FRQ¿UPHGDERXWWKHLUFRPSOLDQFHZLWKWKH&RGH Director & Group CEO, as circulated to members in the notice of meeting thereof. M. VIGIL MECHANISM / WHISTLE BLOWER POLICY Details of Resolution passed through postal ballot, the persons In staying true to our values of Strength, Performance and Passion who conducted the postal ballot exercise and details of the and in line with our vision of being one of the most respected voting pattern companies in India, the Company is committed to the high standards of Corporate Governance and stakeholder responsibility. 'XULQJWKH\HDUXQGHUUHYLHZRQ0DUFKUHVROXWLRQIRU the appointment of Independent Directors i.e Mr. S. Sandilya, The Company has a Whistle Blower Policy to deal with instances 0U$WXO.DQDJDW0V3ULWL5DRDQGDSSURYDORI 0RGL¿FDWLRQ of fraud and mismanagement, if any. The Policy ensures that strict of the terms of remuneration payable to Mr. Sudhakar Ram, FRQ¿GHQWLDOLW\ LV PDLQWDLQHG ZKLOVW GHDOLQJ ZLWK FRQFHUQV DQG Managing Director & Group CEO has been passed through also that no discrimination will be meted out to any person for a E-Voting and exercise of Postal Ballot at Extra-Ordinary genuinely raised concern. Pursuant thereto, a dedicated hotline is General Meeting. SURYLGHG ZKLFKFDQEHGLUHFWO\UHDFKHGDQG any Whistle Blower’s complaint can be registered. Calls to the Hotline Mr. Abhishek Bhate, Practicing Company Secretary was during work hours will be directed by the Operator to any of the appointed as Scrutinizer for the E-Voting and Ballot conducted Ombudspersons or Compliance Committee members, as desired by DW([WUD2UGLQDU\*HQHUDO0HHWLQJKHOGRQ0DUFK$OO the caller. WKHUHVROXWLRQVZHUHSDVVHGE\PRUHWKDQ PDMRULW\7KH result of E-Voting were informed to Stock Exchange and are Complainants can also raise their concern through e-mails to the also placed on website of Company viz. www.mastek.com Ombudspersons or Compliance Committee members or Chairperson of Audit Committee (if the complaint is against a Director or by - DISCLOSURES a Director). If, for any reason, the Complainant does not wish to Strictures and Penalties write to any of these entities, he/she can write to whistleblower@ mastek.com. Emails addressed to this ID will be received by the No strictures or penalties have been imposed on the Company by the Company Secretary, who will appropriately direct it to any of the Stock Exchanges or by the Securities and Exchange Board of India Ombudspersons or Compliance Committee member/s or Chairperson (SEBI) or by any statutory authority on any matters related to capital of the Audit Committee, after ascertaining the nature and identity markets during the last three years. sensitivity of the concern raised. Compliance with Accounting Standards N. PREVENTION OF INSIDER TRADING ,Q WKH SUHSDUDWLRQ RI WKH ¿QDQFLDO VWDWHPHQWV WKH &RPSDQ\ The Company has adopted a Code of Conduct for Prevention of KDV IROORZHG WKH $FFRXQWLQJ 6WDQGDUGV QRWL¿HG SXUVXDQW WR Insider Trading with a view to regulate trading in securities by the Companies(Accounting Standards) Rules, 2006 (as amended) Directors and designated employees of the Company. The Code DQG WKH UHOHYDQW SURYLVLRQ RI WKH &RPSDQLHV $FW UHDG ZLWK requires pre-clearance for dealing in the Company’s shares and General Circular 8/ 2014 dated April 04, 2014, issued by the Ministry prohibits the purchase or sale of Company shares by the Directors RI &RUSRUDWH $IIDLUV 7KH VLJQL¿FDQW DFFRXQWLQJ SROLFLHV ZKLFK DUH and the designated employees while in possession of unpublished FRQVLVWHQWO\DSSOLHGKDYHEHHQVHWRXWLQWKH1RWHVWRWKH)LQDQFLDO price sensitive information in relation to the Company and during Statements. the period when the Trading Window is closed. The Company Secretary issues a mail to all Directors, Senior Management peoples Internal Controls and employees in possession of price sensitive information about The Company has a formal system of internal control testing which trading window closure. The said code is placed at the website of examines both the design effectiveness and operational effectiveness the Company viz http://www.mastek.com/investors/corporate- WR HQVXUH UHOLDELOLW\ RI ¿QDQFLDO DQG RSHUDWLRQDO LQIRUPDWLRQ DQG governance all statutory / regulatory compliances. The Company’s business $OO%RDUG'LUHFWRUVDQGWKHGHVLJQDWHGHPSOR\HHVKDYHFRQ¿UPHG processes are on SAP platforms and has a strong monitoring and compliance with the Code. UHSRUWLQJSURFHVVUHVXOWLQJLQ¿QDQFLDOGLVFLSOLQHDQGDFFRXQWDELOLW\ O. COMMUNICATION WITH THE MEMBERS/ SHAREHOLDERS K. &(2 0'&)2&HUWL¿FDWLRQ 7KHXQDXGLWHGTXDUWHUO\KDOI\HDUO\UHVXOWVDUHDQQRXQFHG 7KH&(2 0'DQGWKH&)2KDYHLVVXHGFHUWL¿FDWHSXUVXDQWWRWKH ZLWKLQIRUW\¿YHGD\VRIWKHFORVHRIWKHTXDUWHU7KHDXGLWHG SURYLVLRQVRI&ODXVH RIWKH/LVWLQJ$JUHHPHQWFHUWLI\LQJWKDWWKH annual results are announced within two months from the ¿QDQFLDOVWDWHPHQWVGRQRWFRQWDLQDQ\XQWUXHVWDWHPHQWDQGWKHVH FORVH RI WKH ¿QDQFLDO \HDU DV SHU WKH UHTXLUHPHQWV RI WKH statements represent a true and fair view of the Company’s affairs. Listing Agreement with the Stock Exchanges. The aforesaid 7KHVDLGFHUWL¿FDWHLVDQQH[HGDQGIRUPVSDUWRIWKH$QQXDO5HSRUW ¿QDQFLDOUHVXOWVDUHVHQWWR%6(/LPLWHG %6( DQG7KH L. CODE OF CONDUCT National Stock Exchange of India Limited (NSE) where the Company’s securities are listed, immediately after these are The Board of Directors has approved a Code of Business Conduct approved by the Board. The results are thereafter given by which is applicable to the Members of the Board and all employees. way of a Press Release to various news agencies/ analysts and The Code has been posted on the Company’s website http://www. are published within forty- eight hours in leading English and mastek.com/investors/corporate-governance. 0DUDWKL GDLO\ QHZVSDSHUV 7KH DXGLWHG ¿QDQFLDO VWDWHPHQWV 122 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) form a part of the Annual Report which is sent to the Members 4 Management Discussion & Analysis forms part of the Annual well in advance of the Annual General Meeting. Report. Investor information details are also provided separately in the Annual Report. 7KH&RPSDQ\DOVRLQIRUPVE\ZD\RILQWLPDWLRQWR%6(DQG NSE all price sensitive matters or such other matters, which in R. Means of Communication its opinion are material and of relevance to the members and subsequently issues a Press Release in regard to the same. 4XDUWHUO\ UHVXOWV VXEMHFWHG WR OLPLWHG UHYLHZHG E\ 6WDWXWRU\ $XGLWRUV DUH JHQHUDOO\ SXEOLVKHG LQ WKH )UHH 3UHVV -RXUQDO 7KH $QQXDO 5HSRUW RI WKH &RPSDQ\ WKH TXDUWHUO\ KDOI 1DYVKDNWL DQG )LQDQFLDO ([SUHVV *XDMDUDWL $KPHGDEDG yearly and the annual results and the press releases of the The quarterly unaudited results along with the press releases Company are also placed on the Company’s website: http:// are made available on the website of the Company (http:// www.mastek.com/investors/corporate-governance and can be www.mastek.com/investors/corporate-governance). Other downloaded. information relating to shareholding patterns, compliance with the requirements of corporate governance etc. are posted on ,QFRPSOLDQFHZLWK&ODXVHRIWKH/LVWLQJ$JUHHPHQWWKH BSE/NSE website and on Mastek’s website in the investors quarterly results, shareholding pattern, quarterly compliances section. and all other corporate communication to the Stock Exchanges viz. BSE Limited and National Stock Exchange of India Limited 2I¿FLDOQHZVUHOHDVHVDQGWUDQVFULSWVRIFRQIHUHQFHFDOOVZLWK DUH ¿OHG HOHFWURQLFDOO\ RQ %6(¶V RQOLQH SRUWDO KWWS OLVWLQJ the analysts after the quarterly results are displayed on the EVHLQGLDFRPWKHVDLGLQIRUPDWLRQLVDOVR¿OHGHOHFWURQLFDOO\ Company’s website. with NSE through NSE’s NEAPS portal. 3. Shareholding pattern is displayed on the Company’s website; $ VHSDUDWH GHGLFDWHG VHFWLRQ XQGHU &RUSRUDWH *RYHUQDQFH the information is updated on a monthly basis. on the Company’s website gives information on unclaimed dividends, quarterly compliance reports/communications with DECLARATION REGARDING COMPLIANCE WITH THE CODE OF the Stock Exchange and other relevant information of interest CONDUCT OF THE COMPANY BY THE BOARD MEMBERS AND to the investors/public. SENIOR MANAGEMENT PERSONNEL P. RELATED PARTIES To the Members of Mastek Limited The Company has entered into transactions with the following 7KLVLVWRFRQ¿UPWKDWWKH&RPSDQ\KDVDGRSWHG&RGHRI&RQGXFWIRUWKH related parties: Board of Directors and senior management personnel of the Company, Key Management Personnel: which is available at www.mastek.com. Mr. Sudhakar Ram I declare that the Board of Directors and senior management personnel KDYHDI¿UPHGFRPSOLDQFHZLWKWKH&RGHRI&RQGXFWRIWKH&RPSDQ\ Mr. Radhakrishnan Sundar Place: Mumbai Sudhakar Ram Mr. Ashank Desai 'DWH $SULO 0DQDJLQJ'LUHFWRU *URXS&(2 0U)DULG.D]DQL 0V.DOSDQD-DLVKDQNDU CERTIFICATE FROM PRACTISING COMPANY SECRETARY Mr. Stephan Van Overtveldt ON COMPLIANCE WITH THE CONDITIONS OF CORPORATE GOVERNANCE UNDER CLAUSE 49 OF THE LISTING AGREEMENT(S) Mr. Vinay Rajadhyaksha I have examined the compliance of conditions of Corporate Governance (` in Lakhs) E\0DVWHN/LPLWHGIRU\HDUHQGHG0DUFKDVVWLSXODWHGLQ&ODXVH RIWKH/LVWLQJ$JUHHPHQWVRIWKH&RPSDQ\ZLWKWKH6WRFN([FKDQJHV Particulars Transactions during Transaction during the year ended the year ended The compliance of the conditions of Corporate Governance is the 0DUFK March 31, 2014 responsibility of the management. My examination was limited to the Remuneration to Key Management Personnel procedure and implementation thereof adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. Mr. Sudhakar Ram 124.20 ,W LV QHLWKHU DQ DXGLW QRU DQ H[SUHVVLRQ RI WKH RSLQLRQ RI WKH ¿QDQFLDO Mr. R. Sundar 27.28 27.28 statements of the Company. Mr. Vinay Rajadhyaksha In my opinion and to the best of my information and according to the Mr. Stefan Vanovertveldt explanation given to me, I certify that the Company has complied with the 0U)DULG.D]DQL conditions of Corporate Governance as stipulated in the abovementioned 0V.DOSDQD-DLVKDQNDU Listing Agreements. I state generally that no investor grievances are pending for a period exceeding one month against the Company as per Notes: the records maintained by the Share Transfer cum Investor Grievance 1. i) Reimbursement of expenses incurred by related parties Committee. for and on behalf of the Company and vice versa has not I further state that such compliance is neither an assurance as to the been included above. IXWXUH YLDELOLW\ RI WKH &RPSDQ\ QRU WKH HI¿FLHQF\ RU HIIHFWLYHQHVV ZLWK ii) The disclosures given above have been reckoned on the which the management has conducted the affairs of the Company. basis of information available with the Company. )RU96XQGDUDP &R iii) There has been no payment of commission to Directors for V. Sundaram WKH\HDUHQGHG0DUFKDVZHOODVSUHYLRXV\HDU Place: Mumbai Practising Company Secretary 2. Generally, there were no instances of non-compliance on any 'DWH $SULO &31R matter related to the capital markets. 123 ANNUAL REPORT 2014-2015 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) S. INVESTOR INFORMATION transfers, transmission of shares, change of address, non- UHFHLSWRIGLYLGHQGORVVRIVKDUHFHUWL¿FDWHVHWFVKRXOGEH 1. COMPANY OVERVIEW: addressed to: ,QFRUSRUDWHG LQ 0DVWHN LV D OHDGLQJ ,7 SOD\HU ZLWK JOREDO The Registrar and Share Transfer Agent: operations providing enterprise solutions to businesses and Sharepro Services (I) Pvt. Ltd. governments worldwide. The Company architects, designs, develops, integrates and maintains strategic applications that create Samhita Warehousing Complex, a tangible business impact at customers’ end. The Company is $%*DOD1R currently focused on two verticals – Insurance and Government. Nr. Sakinaka Telephone Exchange, Mastek has substantial experience and intellectual property in both Off. Andheri-Kurla Road, these verticals. Andheri (East), Mastek is having its operations in North America, UK, India and Asia 0XPEDL± 3DFL¿F7KH&RPSDQ\ZDVSURPRWHGE\0U$VKDQN'HVDL0U.HWDQ 3KRQH )D[ Mehta and Mr. Radhakrishnan Sundar. Mr. Sudhakar Ram joined the e-mail: [email protected] / &RPSDQ\DV3URPRWHU'LUHFWRUGXULQJWKH\HDU [email protected] 0DVWHNKDGLWV,32 ,QLWLDO3XEOLF2IIHULQJ LQ'HFHPEHU DQG Contact Person: Ms. Indira Karkera / Ms. Sarita raised ` 422.1 lakhs in gross aggregate proceeds. There was an DGGLWLRQDOSXEOLFRIIHULQJLQ0DUFK ZKHQLWUDLVHG` 720 lakhs in (ii) Share Transfer System: The Company processes shares gross aggregate proceeds. sent for transfer, transmission etc. every month. Transfers/ transmissions which are complete in all respects are registered 2. EQUITY HISTORY: Number of shares and returned within 30 days of lodgment. Prior to Initial Public Offer VKDUHV 7KH &RPSDQ\ KDV REWDLQHG WKH KDOI \HDUO\ FHUWL¿FDWHV IURP of ` 10/ each a Company Secretary in Practice for due compliance of share ,QLWLDO3XEOLF2IIHULQ'HFHPEHU 6,03,000 shares of transfer formalities as per the requirement of Clause 47 (c) of the ` 10/- each Listing Agreements of the Stock Exchanges. The Company has REWDLQHGTXDUWHUO\FHUWL¿FDWHVIRUWKHWLPHO\GHPDWHULDOL]DWLRQ Issued under Employees’ Stock Option Plan VKDUHVRI of shares of the Company as per the requirement of the WLOO ` 10/- each 6(%, 'HSRVLWRULHV 3DUWLFLSDQWV 5HJXODWLRQV 7KHVH 6HFRQG3XEOLF2IIHULQ0DUFK 4,00,000 shares of FHUWL¿FDWHVKDYHEHHQVXEPLWWHGWRWKH6WRFN([FKDQJHVDQG ` 10/- each the National Securities Depository Limited / Central Depository %RQXV6KDUHVLQ-DQXDU\ VKDUHV Services (India) Limited. The Company has also carried out of ` 10/- each Secretarial Audits for the Reconciliation of Share Capital as Adjusted the above in view of Sub-Division of VKDUHV required under the Listing Guidelines every quarter and the shares of ` 10/- each into two shares of ` of `HDFK quarterly secretarial audit reports issued by an independent HDFKLQ 3UDFWLVLQJ&RPSDQ\6HFUHWDU\KDYHEHHQUHJXODUO\¿OHGZLWK the Stock Exchanges. %X\%DFNRIVKDUHVLQ VKDUHVRI `HDFK (iii) Bank Details for Electronic Shareholdings: Bonus Shares in April 2006 VKDUHV While opening accounts with Depository Participants (DP), of `HDFK you may have given your Bank Account details, which will be Issued under Employees’ Stock Option Plans 10,78,283 shares used by the Company for printing on dividend warrants for IURPWLOO of `HDFK UHPLWWDQFHRIGLYLGHQG6(%,YLGHLWVFLUFXODUQR'&&),77&,5 6KDUHV%RXJKW%DFNIURP0D\WR-XQH 14,38,232 shares GDWHG2FWREHUKDVDGYLVHGWKDWDOOFRPSDQLHV 30, 2008 of `HDFK should mandatorily use ECS facility wherever available. In the absence of availability of ECS facility, companies may use 6KDUHV([WLQJXLVKWLOO-XQH VKDUHVRI warrants for distributing the dividends. Vide its circular no. `HDFK ' &&),77&&,5 GDWHG 1RYHPEHU 6(%, Issued under Employees Stock Option Plans VKDUHVRI has advised companies to mandatorily print the Bank Account in 2010-11 `HDFK details furnished by the Depositories on the dividend warrants. Issued under Employees Stock Options plan VKDUHVRI This ensures that dividend warrants, even if lost or stolen in 2011-12 `HDFK cannot be used for any purpose other than for depositing the Shares Bought Back & Extinguished from 23,88,000 shares PRQH\LQWKH$FFRXQWVSHFL¿HGRQWKHGLYLGHQGZDUUDQWVDQG 1RYHPEHUWR)HEUXDU\ of `HDFK ensures safety for the investors. Members are requested to furnish their Bank Account details to their DPs, if not already Issued under Employees Stock Options plan VKDUHVRI informed. in 2013-2014 `HDFK Shares Bought Back & Extinguished from 24,84,007 shares (iv) Ministry of Corporate Affairs (MCA), Govt. of India 0DUFKWR0DUFK of `HDFK has issued circular No. 17/2011 dated April 21, 2011 and Issued under Employees Stock Options plan VKDUHVRI FLUFXODU1RGDWHG$SULO LQUHVSHFWRI*UHHQ LQ `HDFK Initiative. Accordingly Company sent a communication to all the members requesting them to give their E-mail I.D’s to 3. THE COMPANY’S EQUITY SHARES ARE LISTED ON THE their Depositary Participants (DPs), so that Annual report and FOLLOWING STOCK EXCHANGES: other communications can be sent electronically to all the members. National Stock Exchange of India Limited Members, who have so far not informed the E-mail I.D’s to BSE Limited their DP’s, are requested to do the same in the interest of (i) All inquiries relating to the shareholder records, share environment. 124 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) 4. ANNUAL GENERAL MEETING: Distribution of shareholding as on March 31, 2013 'DWHDQG7LPH $XJXVWDWDP Range no. of Shareholders %Value ` % - Venue : Ahmedabad Management Association shares Number Hall’s H.T.Parekh Hall, AMA Complex, ATRA. Dr. Vikram Sarabhai Marg, $KPHGDEDG FINANCIAL CALENDAR: 44 0.27 1.33 )LQDQFLDOUHSRUWLQJIRUWKHTXDUWHUVHQGLQJ± 10001 and above 73 0.44 86.24 -XQH -XO\ Total 100.00 100.00 6HSWHPEHU DURXQG2FWREHU 12. Annual High-Low Price history for Previous Three Years 'HFHPEHU DURXQG-DQXDU\ Fiscal Year BSE LIMITED NATIONAL STOCK March 31, 2016 : around April 21, 2016 EXCHAGE OF INDIA 6. BOOK CLOSURE DATE: August 10, 2015 to August 17, 2015 LIMITED (both days inclusive) Price per Equity Price per Equity Shares (`) Shares (`) 7. DIVIDEND PAYMENT DATE: On or after August 24, 2015 and before September 15, 2015. High Low High Low 160.20 160.00 8. STOCK CODE: 2014 103.00 101.7 Name of Exchange Script Code Reuters Bloomberg 2013 103.30 BSE Limited MAST.BO MAST@IN 13. QUARTERLY HIGH-LOW PRICE HISTORY FOR PREVIOUS TWO YEARS National Stock MASTEK MAST.NS NMAST@IN Exchange of India Fiscal Year BSE LIMITED NATIONAL STOCK Limited EXCHAGE OF INDIA LISTING FEES PAID: The Company has paid annual listing LIMITED fees for the year 2015-2016 of the Stock Exchanges where Price per Equity Price per Equity the Company’s shares are listed. Shares (`) Shares (`) 10. CAPITAL STRUCTURE: High (`)Low (`)High (`)Low (`) 2015 Equity ` 200,000,000/- Authorized Capital VW4XDUWHU 213.80 160.20 160.00 Preference ` 200,000,000/- QG4XDUWHU 337.00 180.70 337.20 180.80 Issued, Subscribed and Equity ` 112,733,360/- UG4XDUWHU Paid-up Capital WK4XDUWHU 367.00 11. DISTRIBUTION OF SHAREHOLDING - 3 years 2014 Distribution of shareholding as on March 31, 2015 VW4XDUWHU 144.10 110.00 143.60 112.00 QG4XDUWHU 142.00 103.00 101.70 Range no. of Shareholders %Value ` % shares Number UG4XDUWHU 178.00 117.00 180.00 WK4XDUWHU 1,800 7.17 14. MONTHLY VOLUMES AND PRICES: 2014-15 1,012 3.42 7,380,760 Month BSE Limited National Stock 104 3.31 and year Exchange of India Limited 10001 and above 120 High Low Volume High Low Volume Total 20,270 100.00 112,733,360 100.00 (`) (`) (`) (`) Distribution of shareholding as on March 31, 2014 April 2014 213.80 171.00 171.00 May 2014 183.70 160.20 160.00 Range no. of Shareholders %Value ` % -XQH 201.00 173.00 shares Number -XO\ 221.00 183.00 14,876 6,631,340 August 180.70 266823 180.80 3,228,100 2014 3.00 4.67 September 337.00 337.20 0.33 2014 10001 and above 68 0.42 84.68 October 1331177 Total 16,317 100.00 110,803,400 100.00 2014 ANNUAL REPORT 2014-2015 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) Month BSE Limited National Stock is required to be transferred to Investors Education and and year Exchange of India 3URWHFWLRQ)XQG ,(3) HVWDEOLVKHGE\&HQWUDO*RYHUQPHQW Limited $FFRUGLQJO\WKHDPRXQWRI)LQDO'LYLGHQGIRUWKH\HDU High Low Volume High Low Volume 2007 amounting to `DQG,QWHULP'LYLGHQGIRUWKH (`) (`) (`) (`) year 2007-08 amounting of ` 470,663/- have been credited November 260.00 1038472 260.00 WR ,(3) RQ 1RYHPEHU DQG RQ 0DUFK 2014 respectively. December )LQDO'LYLGHQGIRUWKH\HDULVGXHWREHWUDQVIHUUHG 2014 WR,QYHVWRUV(GXFDWLRQDQG3URWHFWLRQ)XQG ,(3) HVWDEOLVKHG by Central Government in October 2014. All the members who -DQXDU\ 442.00 441.70 380.00 have not encashed the dividend warrant are requested to take steps to encash the same. Please note that no claims shall lie )HEUXDU\ 3183481 DJDLQVWWKH,(3)RUWKH&RPSDQ\LQUHVSHFWRIVXFKDPRXQWV after the date of transfer. March 477.00 373.00 v. Pending Investor Grievances Any Member / Invest or whose grievance has not been resolved MASTEK SHARE PRICE PERFORMANCE VERSUS NSE’s S&P CNX satisfactorily, may kindly write to the Company Secretary and 500 +HDG&RPSOLDQFHDWWKH5HJLVWHUHG2I¿FHZLWKDFRS\RIWKH Relative Price Performance Mastek v/s NSE’s S&P CNX 500 earlier correspondence. vi. Reconciliation of Share Capital Audit 250 As required by the Securities & Exchange Board of India 220 (SEBI) quarterly audit of the Company’s share capital is being 190 265.60 252.80 carried out by an independent external audit or with a view 160 to reconcile the total share capital admitted with National 203.30 130 182.07 198.71 Securities Depository Limited (NSDL) and Central Depository 100 Services (India) Limited (CDSL) and held in physical form, 70 ZLWKWKHLVVXHGDQGOLVWHGFDSLWDO7KH$XGLWRUV¶&HUWL¿FDWH 40 in regard to the same is submitted to BSE Limited and The National Stock Exchange of India Limited and is also placed before Stakeholders’ Relationship Committee and the Board of 6-Jan-15 1-Apr-14 3-Feb-15 9-Dec-14 22-Jul-14 3-Mar-15 24-Jun-14 14-Oct-14 29-Apr-14 16-Sep-14 19-Aug-14 11-Nov-14 31-Mar-15 27-May-14 Directors. Mastek S & P CNX 500 U. SHAREHOLDING PATTERN – AS ON MARCH 31, 2015 T. SHARE TRANSFER SYSTEM / DIVIDEND AND OTHER RELATED MATTERS Sr. Category No. of % of No. Shares Holding i. Share transfers 1 Indian Promoters Share transfers in physical form are processed and the share FHUWL¿FDWHV DUH JHQHUDOO\ UHWXUQHG WR WKH WUDQVIHUHHV ZLWKLQ 2 0XWXDO)XQGV$QG87, DSHULRGRI¿IWHHQGD\VIURPWKHGDWHRIUHFHLSWRIWUDQVIHU 3 )LQDQFLDO,QVWLWXWLRQV%DQNV 20,033 provided the transfer documents lodged with the Company are complete in all respects. 4 Insurance Companies ii. Nomination facility for shareholding ),,¶6 12.77 As per the provisions of the Companies Act , 2013, facility 6 Bodies Corporate for making nomination is available for Members in respect of 7 Individuals holding Nominal shares held by them. Members holding shares in physical form Capital upto ` 1 lakh may obtain nomination form, from the Share Department of the Company or download the same from the Company’s website. 8 Individuals Holding Nominal 683,430 3.03 Members holding shares in dematerialized form should contact Capital more than ` 1 lakh their Depository Participants (DP) in this regard. NRIs 1.43 iii. Permanent Account Number (PAN) Grand Total 100.00 Members who hold shares in physical form are advised that AS ON MARCH 31, 2014 SEBI has made it mandatory that a copy of the PAN card of the transferee/ s, members, surviving joint holders / legal heirs Sr. Category No. of % of be furnished to the Company while obtaining the services of No. Shares Holding transfer, transposition, transmission and issue of duplicate VKDUHFHUWL¿FDWHV 1 Indian Promoters iv. Unclaimed Dividend 2 0XWXDO)XQGV$QG87, 0.08 Pursuant to Provisions of Section 124 of the Companies Act, 3 )LQDQFLDO,QVWLWXWLRQV%DQNV 0.02 2013 (the Act) the amount of Dividend which has remained 4 Insurance Companies unclaimed and unpaid for a period of seven years from the date of transfer of such amount to unpaid dividend account ),,¶6 126 CORPORATE GOVERNANCE REPORT 2014-15 (contd.) W. Shareholders with more than 1% holding as on March 31, Sr. Category No. of % of 2015 No. Shares Holding 6 Bodies Corporate Sr. Name of the No. of Shares as No shareholder shares percentage of 7 Individuals holding Nominal 14.03 total no. of shares Capital up to ` 1 lakh 1. )LGHOLW\ 3XULWDQ 7UXVW 7.32 8 Individuals Holding Nominal 8.10 )LGHOLW\/RZ3ULFHG Capital more than ` 1 lakh 2. Life Insurance 1108216 NRIs 1.34 Corporation of India Grand Total 22,160,680 100 3. )LGHOLW\1RUWKVWDU)XQG 400000 1.77 DETAILS ON PHYSICAL & ELECTRONIC MODE X. INFORMATION FOR SHAREHOLDERS ON THE INTERNET: The Company actively communicates it’s strategy and the Date Status of Shares - Physical versus GHYHORSPHQWV RI LWV EXVLQHVV WR WKH ¿QDQFLDO PDUNHWV 7KH 6HQLRU Electronic mode Executives of the Company along with M/s. Christensen Investor Relations (I) Private Limited - our Investor advisor regularly meet Physical Electronic Total the analysts. The Press release, Analysts’ conference calls as well as the presentations at analysts meetings are organized by M/s. 0DUFK Christensen Investor Relations (I) Private Limited - our Investor advisor. Decisions in such meetings are always limited to information March 31, 2014 22,160,680 that is already in the public domain. Please access the homepage at http://www.mastek.com and register yourself for regular updates. V. OVERVIEW OF THE VOLUME OF CORRESPONDENCE HANDLED DURING THE YEAR ENDED MARCH 31, 2015 Y. OUTSTANDING GDRS/ADRS/WARRANTS OR ANY CONVERTIBLE INSTRUMENTS: No of There are no outstanding GDRs/ADRs/warrants except the stock Letters options granted to the employees of the Company and its subsidiaries. The options after vesting, when exercised, shall increase the equity Investors’ correspondence handled share capital. &ODVVL¿FDWLRQRIFRUUHVSRQGHQFHKDQGOHG Z. OFF-SHORE DEVELOPMENT CENTERS: 1. General letters seeking information and 2 The Company has Off-Shore Software Development Centers at advice SEEPZ, Mumbai, Millennium Business Park, Mahape, Pune and Chennai. The complete list of Addreses attached at the end of the 2. Cases of non-receipt despite proper dispatch - Annual Report. RIGLYLGHQG:DUUDQWVDQG6KDUH&HUWL¿FDWHV (Complaints not amounting to grievance) COMPLIANCE OFFICER OF THE COMPANY: 3. Complaints - Name: Bhagwant Bhargawe, Company Secretary Total 2 $GGUHVV 0DVWHN/LPLWHG6')6((3=$QGKHUL (DVW 0XPEDL 7KHUHZHUHQRSHQGLQJWUDQVIHUVDVRQ0DUFK 3KRQH1R )D[ 127 ANNUAL REPORT 2014-2015 CORPORATE SOCIAL RESPONSIBILITY About Mastek Foundation: Mastek Foundation with Magic Bus undertook the following initiatives: Mastek Foundation is the CSR wing of the company. Founded in 2002, (QVXULQJIXQGLQJE\9RGDIRQH the mission of Mastek foundation is Responsible Receiving, Informed 3XWWLQJ LQ SODFH GHWDLOHG UHTXLUHPHQWV DQG SODQV IRU GLVFXVVLRQ Giving. Inspiring our employees to contribute back to the community by, WHVWLQJWUDLQLQJDQGUROORXWIRULQLWLDWLQJWKH0,6GHYHORSPHQWSKDVH sensitizing them to the issues and needs of the community and engaging them with the community through volunteering and giving opportunities. 3URYLGLQJHIIHFWLYHVXSSRUWWRRYHU&RPPXQLW\ 128 CORPORATE SOCIAL RESPONSIBILITY (Contd.) -DFTXL .LOEXUQ IURP :RPHQ¶V $LG 7KH 3 & GHSDUWPHQW VROHO\ WRRN WKH 8. YLVLWHG 0XPEDL EHWZHHQ WK LQLWLDWLYHRIJLYLQJJLIWVGXULQJ'LZDOLWR 1RYHPEHU DQG WK 1RYHPEHU ) /VWDII6HFXULW\*DUGHQHUHOHFWULFLDQ .LOEXUQZKRORRNVDIWHUWKH canteen, housekeeping, plumber, training cell of the organisation, FDUSHQWHU WHOHSKRQH SKRWRFRS\ spent the time with NGO partners machine operator. The department of Mastek Foundation like Sneha collected almost `DQGFRQWULEXWHG in Mumbai and Snehalaya in to 125 staffs. $KPHGQDJDU 6KH DOVR KDG D KDOI day session at Mahape with NGOs on domestic violence against women. Mastek Foundation launched its website 6KHVKDUHGKHUH[SHULHQFHVDQGH[SHUWYLHZVRQGRPHVWLFYLROHQFHZLWK –www.mastekfoundation.org the NGO representatives. Free eye check up and donation “I enjoyed my time with you all the NGO representatives and it has left me camp ZLWKVRPHODVWLQJPHPRULHV´-DFTXL.LOEXUQ In association with Sankara Eye, Care Employee Engagement Programmes Mastek Foundation conducted a seven GD\ FDPSDLJQ RQ &RPSXWHU 9LVLRQ /DXQFK RI 0DVWHN )RXQGDWLRQ Rakhi Exhibition by NGOs Syndrome and eye donation. Total 358 :HEVLWH HPSOR\HHV WRRN EHQH¿W RI WKH IUHH H\H Several NGOs took part in the check-up camp. H[KLELWLRQFXPVDOH RI UDNKLV IRU employees. Over Rs. 10,000 worth Standard Chartered Mumbai of rakhis were sold on a single day. Marathon 2015 7KH'LZDOLIHVWLYDOVDOHZDVDERYH Rs 21,000. Blood Donation Camp $ WRWDO QXPEHU RI SHRSOH Twenty employees participated LQFOXGLQJ HPSOR\HHV IURP in the Half Marathon 2015. 0XPEDL DQG 3XQH DQG IURP ,Q WKH 'UHDP 5XQ VHJPHQW outside Mastek, donated blood employees staged a street play this year. The number of donors on saving mother earth. Total went up by almost 35% from last 105 employees participated. year. Over 350 employees also got themselves tested for thalassemia, Tree plantation drive WKHQXPEHUULVLQJE\DOPRVW 0DVWHNHHUV FHOHEUDWHG :RUOG since last year. (QYLURQPHQWDO 'D\ DW %KDYDOH /RODQG %KLZDQGL $ORQJ ZLWK +DUL\DOL 1*2 Contribution to Kashmir Flood Mastekeers took part in a tree plantation drive. (PSOR\HHV GRQDWHG 5V IRUYLFWLPVRIWKHÀRRGVLQ.DVKPLU 100% Giving Initiative: The funds collected has been donated to the NGO, Goonj. Mastek Foundation Run 2014 It is a 100% payroll giving This year, runners from other programme with the objective corporates took part in the Mastek of incorporating all the )RXQGDWLRQ5XQLQFOXGLQJ6LHPHQV7&65HOLDQFHDQG7R\R7KHUH employees. Before the initiative ZHUHDOVRVFKRROFKLOGUHQORFDOUHVLGHQWVVDOHVWD[RI¿FHUVHWF7RWDO 31% of employees were in the SHRSOHSDUWLFLSDWHG7KLVZDVDQLQFUHDVHRIDOPRVWVLQFHODVW\HDU payroll giving programme, but DIWHUWKHLQLWLDWLYHDOPRVW Spread-a-smile Initiative of employees are now enrolled in the payroll giving programme. 3DUWQHULQJZLWK1RQ±SUR¿WRUJDQLVDWLRQ EDUCATION Partnering with Aarambh, Navi Mumbai $DUDPEKSURYLGHVHGXFDWLRQKHDOWKFDUH and skills training to children, women and youth of migrant communities in the Under this initiative, Mastek Foundation, in collaboration with Mastek slums of Navi Mumbai. It works through employees, carried out various programmes like visit to an old age home, VL[ VOXPEDVHG FRPPXQLW\ FHQWHUV LQ FHOHEUDWLQJ'LZDOLZLWK1*2NLGVDQGOXQFKZLWKORZHUJUDGHRI¿FHUV7KH 1DYL0XPEDLDQG¿YHUXUDOFHQWHUVLQ:DL only aim to bring smile to the under-priviledged. 7DOXNDRI6DWDUD'LVWULFWLQ0DKDUDVKWUD 7KHEHQH¿FLDULHVLQFOXGH FKLOGUHQ ZRPHQDQG\RXWK 129 ANNUAL REPORT 2014-2015 CORPORATE SOCIAL RESPONSIBILITY (Contd.) Mastek supported project: Supporting two balwadis and two support Partnering with Prasad Chikitsa, Wada district FHQWUHVLQ1DYL0XPEDL QHDU0DKDSHRI¿FH IRUDOPRVWPLJUDQWFKLOGUHQ 3UDVDG&KLNLWVD¶VLQLWLDWLYHVLQFOXGHSURJUDPPHVRIVXVWDLQDEOHFRPPXQLW\ Impact: and village development, healthcare, education and nutrition among children, women empowerment etc. It operates in the villages of FKLOGUHQZHUHHQUROOHGLQPDLQVWUHDPVFKRROV 0DKDUDVKWUD7RWDOEHQH¿FLDULHV PRUHWKDQ FKLOGUHQHQUROOHGLQ$DUDPDEKUXQEDOZDGLV SUHVFKRROHVWDEO LVKPHQWV Impact: FKLOGUHQDUHDYDLOLQJWKHIDFLOLW\RIVXSSRUWFODVVHV $ZDUHQHVVJHQHUDWLRQSURJUDPPHIRUYLOODJHUVRQVDIHGULQNLQJ Partnering with Helpers of Handicapped, Kolhapur water and sanitation Helpers of Handicapped was formed by Naseema Hurzuk, who herself 'XH WR VHQVLWL]DWLRQ YLOODJHUV ZHUH NHHQ WR DGRSW VDIH GULQNLQJ EHFDPH D YLFWLP RI SDUDSOHJLD DW WKH DJH RI ,W SURYLGHV DOOURXQG water and sanitation methods development to people with multiple disabilities. Partnering with Akshay Patra Foundation, Gandhinagar, Gujarat 7RWDOEHQH¿FLDULHV GLVDEOHGSHRSOH 7KH $NVKD\D 3DWUD )RXQGDWLRQ ZRUNV DFURVV ,QGLD WR HQG KXQJHU RI Mastek supported project: Sponsorship of 15 disabled students, for XQGHUVHUYHGFKLOGUHQDQGIDFLOLWDWHWKHLUHGXFDWLRQ7RWDOEHQH¿FLDULHV their education, corrective surgery, etc. million children in nine states of India. Impact: Mastek supported project: Supporting the mid-day meal programme IRUFKLOGUHQDW*DQGKLQDJDU*XMDUDW )LYH VWXGHQWV ZKR ZHUH SK\VLFDOO\ FKDOOHQJHG DSSHDUHG IRU WKH KLJKHUVHFRQGDU\H[DPLQDWLRQDQGSDVVHGZLWKÀ\LQJFRORXUV Impact: Partnering with Sangopita, Badlapur ,PSURYHPHQWLQDWWHQGDQFHDQGHQUROPHQWLQVFKRROV Sangopita is a registered NGO working for the children with multiple 5HGXFWLRQLQGURSRXWUDWH disabilities, including cerebral palsy, autism and other physical disabilities. Partnering with Think Foundation, Mumbai It offers full-time residential care. 7KLQN)RXQGDWLRQLVDQRWIRUSUR¿WRUJDQL]DWLRQUHJLVWHUHGXQGHU6HFWLRQ Mastek supported project: Supporting the shelter home in the form of RI WKH &RPSDQLHV $FW DQG LQFRUSRUDWHG RQ UG -DQXDU\ vocational training, residential facilities etc. ,WV ZRUN IRFXVHV LQ LPSURYLQJ WKH TXDOLW\ RI OLIH RI WKDODVVHPLD Impact: patients, prevention of thalassemia, ensuring availability of blood and its components to all patients. 6SHFLDOFDUHJLYHQWRPHQWDOO\FKDOOHQJHGFKLOGUHQ Mastek supported project: 6XSSRUWLQJ WKH 7KDODVVHPLD 3UHYHQWLRQ (GXFDWLRQSURYLGHGWKURXJKVSHFLDOHGXFDWRUV programme and organising blood donation drives at Mastek. 9RFDWLRQDOWUDLQLQJ Impact: Partnering with Magic Bus India Foundation \RXQJVWHUVVFUHHQHGIRUWKDODVVHPLD The Magic Bus children’s programme is aimed at the holistic development of underprivileged children and inculcating in them positive attitudes and EHKDYLRXU7RWDOEHQH¿FLDULHV FKLOGUHQLQSOXVFRPPXQLWLHV across 13 states in urban, semi urban, rural, tribal and remote rural areas. Mastek supported project: The project site is the Indira Nagar slum in Navi Mumbai. The aim was to ensure the holistic development of 1,000 children and getting them to develop a positive attitude and behaviour in education, health and gender equality. Impact: 7KURXJKWKLVSURMHFWXQGHUSULYLOHJHGFKLOGUHQDQG 130 CORPORATE SOCIAL RESPONSIBILITY (Contd.) 9DULRXV DFWLYLWLHV NHSW WKH JLUOV IXOO\ RFFXSLHG GXULQJ WKH VXPPHU INSPIRED 2014 vacation at the shelter home ,QVSLUHG ZDV FRQGXFWHG RQ WK $SULO DW WKH ,(6 0DQLN 7KURXJK H[SRVXUH YLVLWV JLUOV OHDUQW DERXW KLVWRULFDO PRQXPHQWV 6DEKDJULKD %DQGUD : WR UDLVH IXQGV RI 5V ODNK $ WRWDO RI infrastructure development, etc tickets at Rs 200 each were sold. Through the event a total fund of Rs.10, Partnering with SAMPARC ZDVUDLVHG*LULVK.XONDUQLIURP6QHKDOD\D0DPRRQ$NKWDUIURP 6DPDULWDQ +HOS 0LVVLRQ DQG 'U $VKLVK 6DWDY IURP 0DKDQ 7UXVW VKDUHG 6$03$5& 6RFLDO $FWLRQ IRU 0DQSRZHU &UHDWLRQ WDNHV FDUH RI WKH WKHLUVWRU\RIVHUYLQJSHRSOHDWWKHHYHQW7KHµ6SLULWRI0DVWHN$ZDUG¶ rehabilitation, care and educational development of orphaned children, ZDVDZDUGHGWR$UXQLPD6LQKDZKRVKDUHGKHURZQVWRU\RIFRXUDJHDQG FKLOGUHQRIVH[ZRUNHUVDQGRWKHUQHHG\SRRUDQGGLVDGYDQWDJHGFKLOGUHQ bravery in climbing Mt. Everest. ,WRSHUDWHVLQ0DKDUDVKWUD*XMDUDWDQG:HVW%HQJDO The evening had some eventful performances by NGOs who participated Mastek supported project: Infrastructure development of a children’s KRPH±%DOJUDPLQ3R\DQG3XQHDUHD LQWKHHYHQW&KLOGUHQIURP+HOSHUVRI+DQGLFDSSHG.ROKDSXUGLGDGDQFH SHUIRUPDQFH RQ WZR VRQJV *LUOV IURP WKH 1*2 3UHUDQD LPSUHVVHG WKH Impact: DXGLHQFHV E\ WKHLU ¿QH GDQFH SHUIRUPDQFH 7KH 1DWLRQDO $VVRFLDWLRQ for the Blind left the audiences awestruck by their marvelous orchestra &RPIRUWDEOHOLYLQJIRUWKHFKLOGUHQ SHUIRUPDQFH 7R ZLQG WKLQJV XS VWXGHQWV RI +HOHQ .HOOHU ,QVWLWXWH &OHDQDQGK\JLHQLFVDQLWDWLRQIDFLOLWLHV SHUIRUPHGWKHVLOHQW1DWLRQDO$QWKHP Partnering with Aasara $DVDUDPHDQVµVXSSRUW¶DVKHOWHUDKRPH7KLVVXSSRUWPHHWVWKHQHHG RIFKLOGUHQWRKDYHDKRPHIDPLO\VXSSRUWDQGEDVLFTXDOLW\RIOLIH$DVDUD strives to provide these rights to street children until they are reunited with their families or re-integrated in society. Mastek supported project: Supporting the establishment of Suraksha, an open shelter home for 19 girls in Neral. Impact: 7KHVKHOWHUKRPHSURYLGHVWKHFKLOGUHQDSURWHFWHGHQYLURQPHQW 7KHQXWULWLRQDOQHHGVRIWKHJLUOVDUHWDNHQFDUHRI 7KHJLUOVDUHSURYLGHGZLWKTXDOLW\HGXFDWLRQ Ensuring Environmental Sustainability and Animal Welfare Partnering with Hariyali, Thane District, Maharashtra UK employees’ volunteer for a social cause +DUL\DOLKDVEHHQZRUNLQJLQWKH¿HOGRIHQYLURQPHQWDOSURWHFWLRQIRUWKH 7KH 5HDGLQJ (DVW 03 5RE :LOVRQ YLVLWHG SDVW\HDUVLQ7KDQHGLVWULFW the Tesco superstore in Napier Road to Mastek supported project: 0DLQWHQDQFH RI WUHHV DW %KDYDOH /RQDG thank staff and volunteers helping NGO forest area. FareShare. Shoppers were invited to buy DQH[WUDFDQRUSDFNHWRIIRRGWRGRQDWH Impact: DWWKHH[LW)DUH6KDUHDQG5HDGLIRRG ,Q WKHDUHDZDVWRWDOO\EDUUHQ,WLVFXUUHQWO\JUHHQ redistributed three days’ worth of food parcels to people referred by local agencies Partnering with SPCA Thane DQGVXSSRUWJURXSV5RE:LOVRQVDLG ³,¶YHFRPHGRZQWRVHHWKHORFDO 7KDQH63&$UXQVWKHRQO\DQLPDOKRVSLWDOLQWKHGLVWULFW,WDLPVWRSURYLGH collection undertaken by Tesco on behalf of FareShare and also Readifood. equal treatment for all species. I’m here to support the volunteers and help raise awareness of the collection.” He was delighted with the response of people in Reading to Mastek supported project: 3URYLGLQJ VSHFLDOW\ VXUJHU\ WR VWUHHW WKHVFKHPHUXQQDWLRQDOO\LQDOO7HVFRVWRUHV$QRWKHUFROOHFWLRQGULYHLV animals. planned for later this year. He added: “I’ve given my support now three or Impact: four times over the past couple of years and every time been impressed by WKHJHQHURVLW\RISHRSOHLQ5HDGLQJ3HRSOHDUHYHU\FRPPXQLW\VSLULWHGLQ 6WUHHWDQLPDOVVSHFLDOO\GRJVUHFHLYHGVSHFLDOL]HGRSHUDWLRQV this town and they don’t want to see people fall on hard times and so they are prepared to help out.” Mastek Philanthropist 7KH 0DVWHN 3KLODQWKURSLVW $QQXDO $ZDUG ZDV DZDUGHG WR 6XEKDVKLQL6UHHNXPDUDQG'HYHQGUD%DQGLZGHNDU Subhashini Sreekumar Devendra Bandiwdekar 6U0DQDJHU7HVWLQJ 'HSXW\0DQDJHU3URFXUHPHQW Believes that doing any small thing to He is associated with various social improve a life, Brings joy to those who do, activities in and outside Mastek. DVZHOODVWRWKRVHZKREHQH¿WIURPLW 131 ANNUAL REPORT 2014-2015 PEOPLE PRACTICES 2014-15: Creating an environment that would foster Mastek’s ideals and strengthen the vision 2020 through our actions by building empowered teams to set their own goals and free to make the decisions required to unleash their true potential. :HEHOLHYHWKDWLQGLYLGXDOVDQGWHDPVQHHGWRVWUHWFKEH\RQGWKHLUFRPIRUW]RQHWRSHUIRUPGHYHORSDQGJURZ,QDQHQGHDYRUWRHQDEOHWHDPVWR HQKDQFHWKHLUSHUIRUPDQFHZHDUHVWUHQJWKHQLQJ(PSRZHUPHQWDQGEXLOGLQJDQHQYLURQPHQWRIWUXVWZKHUHHYHU\DFWLRQLVWDNHQZLWKUHVSRQVLELOLW\$V an Organization we are also committed to Individuals and Institutions being the best they can be! .H\,QLWLDWLYHVLQWKH¿QDQFLDO\HDUWKDWIDFLOLWDWHGXVWRDFKLHYHRXU*RDO Strengthening our Culture of Recognition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¶OLIH,WFUHDWHGERQGLQJDFURVVYDULRXV WHDPVDQGZDVDSHUIHFWSODWIRUPIRUHDFKRQHWRH[SUHVVWKHLUJUDWLWXGHDQGDSSUHFLDWLRQIRURQHDQRWKHU 7KHPRUHZHWDONDERXWWKHHYHQWV WKHOHVVLWLV:HVDZ0DVWHNHHUVHDJHUWRSDUWLFLSDWHLQHYHQWVOLNHWall of Fame, Spread a Smile, Attitude Awards Engaging & Leveraging our Top Performers through Prism Club $VSDUWRIWKH3ULVP&OXELQLWLDWLYHZHFRQWLQXHWRGHVLJQDQGLPSOHPHQWSURJUDPVWKDWHQJDJHRXUWRSSHUIRUPHUVDQGHQDEOHWKHLUJURZWKDQGGHYHORSPHQW :LWKDYLVLRQWRUHFRJQL]H FHOHEUDWHWKHRXWVWDQGLQJSHUIRUPDQFHRIRXUWRSWDOHQWV3ULVP(YHQW±ZDVKHOGDW0DVWHN0DKDSHLQ6HSWHPEHU¶ IRUWKH3ULVP0HPEHUVDORQJZLWKWKHLUIDPLO\PHPEHUV7KHHYHQWZDVZHOOUHFHLYHGDQGZDVZLGHO\DSSUHFLDWHGE\0DVWHNHHUVDQGWKHLUIDPLOLHV Business HR in action @ Mastek 7KH%XVLQHVV+5WHDPJDLQHGVLJQL¿FDQWPRPHQWXPLQWKLV\HDUZLWKWKHLQQRYDWLYHLQLWLDWLYHVODXQFKHGLQWKHODVW\HDU $QLQLWLDWLYHQDPHGµ5HÀHFW¶WKDWZDVLQWURGXFHGODVW\HDUZKLFKJDLQHGPRPHQWXPDQGLQFUHDVHGSDUWLFLSDWLRQZLWKLQYROYHPHQWRI%XVLQHVVDQG&HQWHUV RI([FHOOHQFH/HDGHUV7KLVSURYLGHGYDOXDEOHIHHGEDFNWRLGHQWLI\WKHVFRSHRILPSURYHPHQWLQRUJDQL]DWLRQDOSURFHVVHVDQGQRUPVWRIDFLOLWDWHEHWWHU MXPSVWDUWWRQHZMRLQHHVDQGWKHQHFHVVDU\KDQGKROGLQJZDVIDFLOLWDWHGE\WKHUHVSHFWLYH&2(OHDGHUV7KLVDOVRKHOSHGXVJHWLQWRXFKZLWKH[SHFWDWLRQV RIQHZMRLQHHVDQGJDSV:RUNZLWKUHVSHFWLYHVWDNHKROGHUVWRPDNHRQERDUGLQJSOHDVDQWDQGPRUHHIIHFWLYH Talk Tuesdays and Top of Mind, two very innovative methods to understand the pulse of people that was launched last year to bring about a healthy and SRVLWLYHZRUNHQYLURQPHQWWKDWIRVWHU0DVWHN9DOXHVDQG&XOWXUHJDLQHGLWVIXOOPRPHQWXPZLWKWKHSURMHFWWHDPV0DVWHNHHUV8QLWHGDQLQKRXVHVSRUWV WHDPZRUNHGRQYDULRXVVSRUWVH[WUDYDJDQ]DVDPLGVWKLJKDGUHQDOLQHZLWKHQWKXVLDVWLFSDUWLFLSDWLRQDQGRXWVWDQGLQJIHHGEDFNWKURXJKWKH\HDUZKLFK H[HFXWHGDVXFFHVVIXOKDWWULFNFULFNHWWRXUQDPHQW QDPHG0DVWHN3UHPLHU/HDJXH03/ ,QGRRUVSRUWVDQG/$1JDPHVDQGD%DGPLQWRQWRXUQDPHQW 7KLVJDYH0DVWHNHHUVDQRSSRUWXQLW\WRERQGRXWVLGHZRUNWKDWZLOOKHOSEHWWHUZRUNSODFHHIIHFWLYHQHVVDQGH[SDQGFLUFOHRILQÀXHQFH7KLVKHOSHGFUHDWH higher levels of engagement and energy. )XQ -R\ )Q- KHOSHGDFKLHYHKLJKOHYHORIHQJDJHPHQWDFURVVORFDWLRQVDQGIDQWDVWLFIHHGEDFNRQYDULRXVHYHQWV0DVWHNRIIVKRUHKDVH[SHULHQFHGKLJK OHYHORIHQHUJ\DQGHQWKXVLDVPZLWKIXOOHVWRISDUWLFLSDWLRQLQFHOHEUDWLRQVDQGFRPSHWLWLRQ)XQ -R\KDVKHOSHG0DVWHNHHUVQRWRQO\UHMXYHQDWHIURP WLPHWRWLPHEXWDOVRHQFRXUDJHVWDOHQWVRIDOONLQGV+LJKOLJKWVRIWKH\HDUKDYHEHHQ'LZDOL&HOHEUDWLRQV FHOHEUDWHGLQDXQLTXHZD\E\DZDNHQLQJRI WKHJRXUPHWFKHIZLWKLQHDFKLQGLYLGXDOE\SXWWLQJIRRGVWDOOVIRU0DVWHNHHUVWRUHOLVK &KLOGUHQ¶V'D\&KULVWPDV1DYUDWUL :RPHQ¶V'D\FHOHEUDWLRQV to name a few. &RPSHQVDWLRQ %HQH¿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µ6H[XDO+DUDVVPHQWDWZRUNSODFH¶ $OOH[LVWLQJ+5 3ROLFLHV UHODWHG WR HPSOR\HH ZHOIDUH DQGEHQH¿WV FRQWLQXHWR EH UHYLHZHG RQD SHULRGLFEDVLVDQGFKDQJHVZKHUHYHU UHTXLUHG DUH incorporated 132 PEOPLE PRACTICES (Contd.) Learning & Development @ Mastek 7KH/HDUQLQJDQG'HYHORSPHQW-RXUQH\DW0DVWHNFRQWLQXHVWREHH[FLWLQJDQGLQQRYDWLYHZLWKWKHVXSSRUWRIYDULRXVSUDFWLWLRQHUV&HQWUHVRI([FHOOHQFH This year again we saw tremendous involvement of our employees in various learning initiatives. Their continuous inputs and recommendations helped XVGHVLJQIRFXVHGOHDUQLQJHYHQWV7KHLUGLUHFWLQYROYHPHQWLQRXULQLWLDWLYHVOLNH³ To list few important initiatives this year, 9 ³%HDXWLIXO&RGH´ZRUNVKRSVZHUHRUJDQL]HGZLWKDVSHFL¿FSXUSRVHRIPDNLQJRXUGHYHORSHUFRPPXQLW\DZDUHRILPSRUWDQFHRIZULWLQJTXDOLW\FRGH 9/HDUQLQJHYHQWVZHUHRUJDQL]HGDURXQGYDULRXVWHFKQRORJ\WUDFNV LQFOXGLQJ8,0LFURVRIW$JLOH%LJ'DWDDQG7HVWLQJ7KHUHZDVLQYROYHPHQWRI SUDFWLWLRQHUVLQWHUQDOO\DVZHOODVIURP,QGXVWU\$OOWKHVHHYHQWVUHFHLYHGHQWKXVLDVWLFSDUWLFLSDWLRQIURPHPSOR\HHVDQGWKHUHZDVDUHDOEX]] around it and caught the attention of a sizable number of developers 97KHUHZDVDJRRGKHDGZD\WRZDUGV(QWHUSULVH$JLOHRQHRIRXUV WUDWHJLFLQLWLDWHDWRUJOHYHO7KHWHDPVIRFXVHGRQPDNLQJ$JLOHEHKDYLRUVKDSSHQ RQWKHJURXQG±ZLWKWUDLQLQJSURJUDPVHYHQWVWRUDLVHDZDUHQHVVDURXQG$JLOLW\DVDZD\RIOLIHFRQWHVWVDURXQGGDLO\VWDQGXSDQGWDONV 9$JLOH2O\PSLDGZDVWKH¿UVW/LYH4XL]VKRZZKLFKZDVKHOGZLWK ORWRIWHDPVSDUWLFLSDWLQJ7KHHYHQWJDYHDGLIIHUHQWIRUPWROHDUQLQJDQGFUHDWHG DZDUHQHVVDURXQG$JLOH 97KHUHZDVDOVRDELJGULYHDURXQG$JLOHLQWHUQDOFHUWL¿FDWLRQV 7RGD\ZHKDYHDOPRVWRIRXURUJDQL]DWLRQWUDLQHGDQGFHUWL¿HGRQ$JLOH 97KLV\HDUWRRZHKDGORWRIIRFXVRQ&HUWL¿FDWLRQV7KHUHZHUH H[FOXVLYHZRUNVKRSVRUJDQL]HGRQWKHSRSXODUFHUWL¿FDWLRQVOLNH303063,7,/ ,674%DQGVRRQ:HKDYHDOVRGHYHORSHGLQWHUQDO6HOHQLXPFHUWL¿FDWLRQFRXUVHVWKLV\HDUZLWKDXWRPDWLRQEHLQJDNH\ZRUGLQWHVWLQJLQGXVWU\ 9,QWKH,QVXUDQFH'RPDLQRXUHPSKDVLVKDVEHHQRQEXLOGLQJXSRX UFDSDELOLWLHVRQWKH3 &LQVXUDQFHSURGXFWDQGWRRONLW 9:HODXQFKHGDQHZSODWIRUP³6SHDNHUV&DIp´WRDOOWKRVHZKRZDQ WWRHQKDQFHWKHLUDELOLW\WRSUHVHQWWKHLUWKRXJKWVGHYHORSVNLOOVLQDIXQ HQYLURQPHQWJDPHVDQGDFWLYLWLHV6SHDNHUV&DIpDOVRODXQFKHGDSURJUDPRQ*UDPPDUHVVHQWLDOVZKLFKZDVZHOOUHFHLYHG $OORIWKLVKDVEHHQVXFFHVVIXOLQLQVWLOOLQJDQGHQKDQFLQJVNLOOVDQGLQFXOFDWLQJWKHGHVLUHWROHDUQPRUH7RVXPPDUL]HKDVEHHQDQH[FLWLQJ OHDUQLQJ\HDUIRU0DVWHN:HDUHQRZSRLVHGWRPRYHLQWRDIXWXUHZKHUHZHZLOOFRQWLQXHWRVWULYHWREXLOGDFXOWXUHRIHPSRZHUHGWHDPVDQGOHDUQLQJ organization. 133 ANNUAL REPORT 2014-2015 SUSTAINABILITY REPORT Sustainability Initiatives Mastek has always considered sustainability from a long term perspective. From the time sustainability initiatives were introduced in the organization in 2009-10, Mastek has consistently taken steps to reduce the carbon footprint through a planned approach which include both short term and long term measures. Environment Management System 0DVWHNZDVFHUWL¿HGE\'HW1RUVNH9HULWDV '19 IRUWKHLPSOHPHQWDWLRQRI,62 DQLQWHUQDWLRQDOO\UHFRJQL]HGVWDQGDUGIRU(QYLURQPHQW 0DQDJHPHQW6\VWHPDWRXU0DKDSHIDFLOLW\LQ)HEUXDU\7KHFHUWL¿FDWLRQLVYDOLGIRUDSHULRGRIWKUHH\HDUVDQGDVXUYHLOODQFHDXGLWZDVFRQGXFWHG E\'19LQ'HFHPEHUZKLFKZDVFOHDUHGVXFFHVVIXOO\ Health & Safety 0DVWHNZDVDOVRFHUWL¿HGE\'19IRUWKHLPSOHPHQWDWLRQRI2+6$6 DQLQWHUQDWLRQDOO\UHFRJQL]HGVWDQGDUGIRU2FFXSDWLRQDO+HDOWKDQG6DIHW\ 0DQDJHPHQW6\VWHPLQ)HEUXDU\$VXUYHLOODQFHDXGLWZDVFRQGXFWHGIRU2+6$6E\'19LQ'HFHPEHUZKLFKZDVFOHDUHGVXFFHVVIXOO\ 7KH,62DQG2+6$6FHUWL¿FDWLRQVKDYHEHHQDPLOHVWRQHDFKLHYHPHQWLQRXUMRXUQH\RQVXVWDLQDELOLW\ Sustainability Reporting $ORQJWHUP6XVWDLQDELOLW\5RDGPDSKDVEHHQSUHSDUHGE\ZKLFK0DVWHNSODQVWRUHSRUWYROXQWDULO\WKHLQLWLDWLYHVLQVXVWDLQDELOLW\RQVRFLDOHFRQRPLF DQGHQYLURQPHQWDUHDVDVSHU*5,*JXLGHOLQHV0DVWHNKDVDSSRLQWHG560*&WRJXLGHDQGVXSSRUWXVIRUWKHSUHSDUDWLRQRIWKLVVXVWDLQDELOLW\UHSRUW $IWHULGHQWLI\LQJWKHJDSVWKHQHZSROLFLHVDQGSURFHGXUHVZLOOEHLPSOHPHQWHGGXULQJ)<:HH[SHFWRXU¿UVWVXVWDLQDELOLW\UHSRUWDVSHU*5, *JXLGHOLQHVWREHSXEOLVKHGLQ$SULO Reduction in Power Consumption (QHUJ\FRVWVKDYHEHHQLQFUHDVLQJRYHUWKH\HDUVDQGDFFRXQWIRUDURXQGRIWKHWRWDOIDFLOLW\H[SHQVHV:HKDYHWDNHQVHYHUDOPHDVXUHVGXULQJWKH ODVW\HDUWRUHGXFHRXUHQHUJ\FRVWV:HKDYHUHSODFHG&)/OLJKWLQJZLWK/('OLJKWLQJDWRXU01'&EXLOGLQJDW0DKDSH7KLVZDVLPSOHPHQWHGLQ-XO\ DQGZHKDYHEHHQDEOHWRDFKLHYHRQDQDYHUDJHRYHUVDYLQJVLQWKHOLJKWLQJHQHUJ\FRQVXPSWLRQ :HKDYHUHSODFHGDLUFRROHGFKLOOHUVZKLFKSURYLGHDLUFRQGLWLRQLQJWRWKH01'&EXLOGLQJZLWKWKHPRUHHI¿FLHQWZDWHUFRROHGFKLOOHUV7KLVZDVDPDMRU SURMHFWZKLFKZDVLQLWLDWHGLQ7KHZDWHUFRROHGFKLOOHUVDUHH[SHFWHGWRUHGXFHWKH+9$&HQHUJ\FRQVXPSWLRQE\DURXQG7KHXVDJHRI9)' RQWKHVHFKLOOHUVZLOOKHOSWREDODQFHWKHORDGRQWKHFKLOOHUVGHSHQGLQJRQWKHDLUFRQGLWLRQLQJORDGLQWKHEXLOGLQJWKXVOHDGLQJWREHWWHUHI¿FLHQF\DQG ORZHUHQHUJ\FRQVXPSWLRQ7KHQHZZDWHUFRROHGFKLOOHUVZHUHFRPPLVVLRQHGLQ0DUFKDQGZHH[SHFWWKHVDYLQJVWREHUHDOL]HGZLWKHIIHFWIURP $SULO7KH0DVWHN0LOOHQLXP&HQWUHEXLOGLQJKDVDQDJLQJ959DLUFRQGLWLRQLQJV\VWHPZKLFKZHDUHSODQQLQJWRUHSODFHZLWKQHZXQLWVGXULQJ )<DQG)<7KHQHZV\VWHPVZLOOKDYHPRUHHQYLURQPHQWIULHQGO\JDVDQGFRRODQWVDVDJDLQVWWKRVHRIWKHH[LVWLQJXQLWVWKHUHE\ UHDI¿UPLQJRXUFRPPLWPHQWWRZDUGVVXVWDLQDELOLW\DQGUHGXFLQJLPSDFWRIRXURSHUDWLRQVRQWKHHQYLURQPHQW MASTEK LIMITED PROXY FORM CIN: L74140GJ1982PLC005215 5HJG2I¿FH 804/805, President House, Opp. C. N. Vidyalaya, Near Ambawadi Circle, Ambawadi, Ahmedabad-380006; Email:[email protected]; website: www.mastek.com; Phone:+91-79-2656 4337 I/We being the member(s) holding …………...….. shares of the above named company hereby appoint: (1) Name: ...... Address: ...... E-mail id: ……………...... …………… Signature: ...... or failing him; (2) Name: ...... Address: ...... E-mail id: ……………...... …………… Signature: ...... or failing him; (3) Name: ...... Address: ...... E-mail id: ……………….....…………… Signature: ...... as my/our proxy to attend and vote (on a poll) for me /us and on my/our behalf at the 33rd Annual General Meeting of the company, to be held on Monday, August 17, 2015 at 11.00 a.m. at Ahmedabad Management Association Hall V H. T. Parekh Hall, AMA Fomplex, ATRA, Dr.Vikram Sarabhai Marg, Ahmedabad 380015 or at any adjournment thereof in respect of the resolutions as are indicated below: Resolution No. RESOLUTIONS Vote/s given Ordinary Business For Against 1. Adoption of Financial Statements for the year ended March 31, 2015. 2. $SSURYDORI)LQDO'LYLGHQGIRUWKH\HDUHQGHG0DUFKDQGFRQILUP,QWHULP Dividend declared and paid during the year. 3. Re-appointment of Mr. Ashank'HVDL, who retires by rotation and being eligible, offers himself for re appointment. 4. Ratification of Appointment of M/s. Price Waterhouse, Chartered Accountants, LLP as Statutory $XGLWRUVDQG¿[LQJWKHLUUHPXQHUDWLRQ 6SHFLDO%XVLQHVV6SHFLDO5HVROXWLRQ 5. Payment of Certain Benefits / Prequisites to Mr. Ashank Desai Signed this………………..day of …………………2015 $I¿[ Revenue Signature of Shareholder…………………………………..Stamp Signature of Proxy holder(s)…………………………………….. of `1/- 1RWH 1. 7KLVIRUPRISUR[\LQRUGHUWREHHIIHFWLYHVKRXOGEHGXO\FRPSOHWHGVLJQHGDQGGHSRVLWHGDWWKHUHJLVWHUHG RI¿FHRIWKH&RPSDQ\QRWOHVVWKDQKRXUVEHIRUHWKHFRPPHQFHPHQWRIWKH0HHWLQJ 2. For the notes, Resolutions and Explanatory Statement, please refer to the Notice of the 33rd Annual General Meeting. 3. It is optional to put number of votes in the appropriate column against the Resolutions indicated in the Box, so that the Proxy should vote accordingly. If you leave the ‘For’ or ‘Against’ column blank against any or all Resolutions, your proxy will be entitled to vote in the manner as he/she thinks appropriate. Please note that the total number of votes given cannot exceed the number of shares held for each and every resolution. 4. Please complete all details of member(s) in the above box before submission. !"#$%&! "''()!* +' ,! -. ! %