2020-21 | ANNUAL REPORT Sascan the Sas-Can Spirit
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2020-21 | ANNUAL REPORT SasCan The Sas-Can spirit The strength of character is tested when we are challenged. This fiscal year has stress tested the human spirit of endurance. In our humble way, at Sasken, we endured, with a resolve to emerge stronger. We take pride in calling this mettle as the ‘Spirit of SasCan’. This spirit is embodied in our ability to adapt and embrace the new normal. Our situational awareness and speed of response combined with the yen for continuous learning ensured that we remained valued partners for our customers. The ability to take on challenges and stay profitable despite adversity eschews our commitment to our shareholders. Our sustained efforts in ensuring the wellbeing of our employees and social responsibility programs, holds testimony to our people centricity. The ‘Spirit of SasCan’ permeates every Sasian and provides the fuel to serve all our stakeholders with efficacy. Table of Contents Overview 03 Board of Directors 04 Letter to Shareholders 07 Technology and Markets 15 Sasken CSR Initiatives 17 Sasken People 19 Board’s Report 25 Annexure to Board’s Report Financial Statements 57 The Year at a Glance – Consolidated (Non GAAP) 58 Financial Performance – a 7 Year Snapshot 60 Auditor’s Report on Standalone Financial Statements 69 Standalone Balance Sheet 70 Standalone Statement of Profit & Loss 71 Standalone Statement of Changes in Equity 72 Standalone Statement of Cash flows 73 Notes to the Standalone Financial Statements 114 Auditor’s Report on Consolidated Financial Statements 120 Consolidated Balance Sheet 121 Consolidated Statement of Profit & Loss 122 Consolidated Statement of Changes in Equity 123 Consolidated Statement of Cash Flows 124 Notes to the Consolidated Financial Statements 167 Statement pursuant to Section 129(3) of the Companies Act, 2013 168 Management Discussion & Analysis Report 1 Highlights of FY 21 ` 44,484 lakhs Consolidated Annual Revenue ` 11,455 lakhs Consolidated PAT 1400+ Sasians 2 Board of Directors Directors Mr. Rajiv C. Mody Mr. Pranabh D. Mody Chairman, Managing Director & CEO Director Ms. Neeta S. Revankar Mr. Sanjay M. Shah Whole Time Director & CFO Director Mr. Bharat V. Patel Mr. Sunirmal Talukdar Director Director Ms. Madhu Khatri Dr. G. Venkatesh Director Director Overview Company Secretary Bankers Mr. S. Prasad Citibank NA Union Bank of India Statutory Auditors M/s. MSKA & Associates Registered and Corporate Office Chartered Accountants No. 139/25, Ring Road, Domlur Bengaluru 560 071, India Committees of the Board CIN: L72100KA1989PLC014226 Audit Committee Corporate Social Responsibility Committee Nomination and Remuneration Committee Stakeholders Relationship Committee Strategy, Business and Marketing Review Committee 3 Rajiv C. Mody Chairman, Managing Director & CEO Message from Chairman I am overwhelmed by the resolve to Dear Shareholder, be tenacious, flexible, agile, capable It is often said that climacteric events happen once or maybe and service oriented on the part of twice in every century. One such defining moment is the on- going COVID-19 pandemic. As I look back over the last twelve every Sasian despite the unprecedented months, one thing is clear - those who are resilient and have the self-belief, will chart out the pathways to see the positive challenges faced due to the global and emerge stronger. For Sasken, this ‘can-do’ spirit has kept pandemic. A true ‘SasCan’ spirit. This all Sasians motivated. Our reigning motto has been to adapt, be agile, and adopt innovative methods of delivering value. provides me and the management team the motivation to lead & deliver with I am delighted to inform you that we have proactively and seamlessly transitioned to the new normal. Your Company confidence. was amongst the first to achieve close to a hundred percent transition to work from home/anywhere. This is a testimony to our forward thinking practises, use of technology, coordination & teamwork, and well-orchestrated enablement. 4 Our cross functional Emergency Response Team has been scale our business. From the lens of operationalising these efficiently and effectively enabling the work from home strategies we are creating a sense of urgency and have put in transition necessitated by the pandemic. place an environment where everyone internalises that we are firm on the ‘need to perform’. Our first priority was to ensure the safety and well-being of employees in a proactive and transparent manner. This laid Our response to the challenges in our business environment the foundation of creating a safe workplace for business has been one of maintaining fiscal prudence by rigorously continuity. Secondly, we emphasised on the creation of an monitoring our performance both on revenue and cost fronts. effective two-way communication channel. This platform However, being a company that is committed to ‘people- got together all stakeholders and provided a reliable & centricity’ we ensured that no jobs were lost on account of dependable means of coordination and dialogue, whilst the uncertain environment in which we operate in. eliminating misinformation. Thirdly, our goal was to embrace the new normal and build resilience at all levels. This included DIVIDEND DATA our risk assessment and preparedness, which helped us The Board of Directors has recommended a final dividend anticipate and respond to the crisis as it played out. Fourthly, of Rs.15.00 per equity share for the year ended March 31, our business recovery and forecasting methodology helped 2021. The payment is subject to approval of shareholders in build a predictive model that kept it business as usual despite the ensuing Annual General Meeting of the Company. Once a vastly decentralised mode of work. approved, the cumulative dividend for the year will amount to Rs.25.00 per equity share (including interim dividend Our focus in the current financial year has been to embark payment of Rs.10.00 declared on October 21, 2020). I trust on a business transformation with the aim of driving growth that you would be happy to note that your Company has that is characterized by longer term annuity contracts of maintained its track record of paying dividends since its reasonable scale. This process has begun well and will listing in 2005. remain our focus in the coming financial year by which we expect to have internalised this transformation. As part of We remain cautiously optimistic and are mindful that we this business renewal, we have a two-pronged approach to continue to operate in a Volatile, Uncertain, Chaotic, and grow engagements with existing customers and win scalable Ambiguous environment also known as the VUCA world. business from new customers. We are making significant The market recovery is not uniform across geographies and investments to strengthen our global sales teams who will verticals which we serve; in short the environment we operate spearhead our engagements with both our marquee and in presents us with a mixed bag. We will continue to be prospective customers with a single minded focus to move vigilant in terms of monitoring & mitigating risks and sharpen our relationships to the realm of strategic partnerships. As our business and delivery processes to be able to handle before, we recognise that our engineering capabilities in exigencies should they arise. We are confident that we have Finland in the areas of hardware & RF design including full built a resilient organisation backed by sound management product development is our key differentiator. We are making principles and a commitment to upholding the highest concerted efforts to integrate these capabilities and bring to standards of ethical conduct & corporate governance. My our customers turnkey product development services. management team and I wish to thank you for the continued confidence that you have placed in us over the last three To achieve our growth objectives, we are strengthening our decades and look forward to better times ahead. front line, client partners, and solutions engineering teams at both the leadership and operational levels. Our portfolio of Thanking you, offerings are being enhanced and in parallel we are creating Rajiv C. Mody newer offerings in response to market needs. These initiatives Chairman, Managing Director, and CEO will allow us to offer a compelling value proposition and help 5 In our journey of over three decades, we have helped launch many products. Building a product for a customer involves combining existing competencies with newly acquired ones through a process of continuous learning & experimentation. This is the seed from which innovation is born. Ensuring our capabilities remain world-class despite the enormous disruption was a priority which we took to and addressed with confidence. Our ability to deliver the critical phases of system integration, testing and product design handover for a range of satellite terminals, bears testimony to the fact that our technical capability is among the best. The result is a first-of-a-kind achievement for Team Sasken as it marked the delivery of a range of high-speed next generation satellite Capability terminals. 6 Tech & Markets Overview Global enterprises across all the sectors we serve continue to to intelligence, the evolution from native to cloud; all these be active consumers of both product engineering and digital stands validated in our three decade long journey. services. COVID 19 has had an impact on the expenditure towards new product development and as a consequence we At Sasken, we leverage our longstanding relationships with see that product launches have been somewhat curtailed or leading silicon providers, to offer our customers a compelling moved out during the last 12 months. The broad consensus value proposition to profit from this world of ‘Connected is that industry recovery will be led by certain sectors and Living & the Experience Economy’. Our customers span in addition via larger investments to accelerate the process multiple segments - consumer electronics, automotive of digitalization. Across the board, enterprises are focusing electronics, industrials, satellite communications, on business continuity, risk identification and mitigation telecommunications.