Mastek Annual Report 2018-19
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Corporate overview 1 Annual Report 2018–19 Expect more Contents Expect more Corporate overview We have proven excellence in engineering 2 Our investors trust, we deliver innovation solutions and delivery track record 4 Our employees perform, we reward spanning over more than three decades. We 6 Our customers ask, we serve believe that digital transformation should be 8 Our society supports, we give back defined by customer experience and quality 10 At a glance of innovation, and not by the race to develop 12 Key performance highlights technology at a low cost. Organisations across 14 Vision 2020 and core values the globe put their trust in Mastek because they 16 Our clients know we deliver what we promise, and have 18 Milestones confidence in the quality of our delivery. 20 Awards and recognition 22 Vice chairman and managing director’s message By building a sustainable infrastructure; fine-tuning 24 Chief executive officer’s message our processes; hiring the right people; involving 28 Turning heritage into a transformation journey the right management team; and increasing 30 Empowering every Mastekeer the confidence amongst our investors, we have 36 Transforming public sector services through digital solutions earned the rights of passage to anchor ourselves 38 Our defence against cyber threats as a leader in Enterprise Digital Transformations. 40 Our sustainability and development goals With our core values in place, we have evolved 44 Board of directors into a strong and consistent entity, creating 46 Financial and operational review value for all our stakeholders. At Mastek, all 48 Financial highlights our stakeholders can EXPECT MORE from us. 49 Corporate information Statutory reports 50 Management discussion and analysis To our investors 69 Corporate social responsibility initiatives Expect more as we continue to consistently execute 74 Directors’ report our Vision 2020 strategy. 106 Report on corporate governance To our Mastekeers Financial statements Expect more as our belief in employee 138 Standalone financial statements empowerment and core values remain fundamental to any decisions that we make. 184 Consolidatetd financial statements Shareholder information To our customers 234 Frequently asked questions (FAQ’s) Expect more game-changing outcomes as we continue to deliver what we promise. 240 Notice 253 Proxy form To our society 255 E-communication registration form Expect more as our work continues to transform lives and impact communities. To view Annual Report 2019 Online, visit: www.mastek.com Forward looking statement This Annual report contains ‘forward-looking cannot guarantee that these are accurate or statements’, identified by words like ‘plans’, will be realised as these statements are subject ‘expects’, ‘will’, ‘anticipates’, ‘believes’, to known and unknown risks, uncertainties ‘intends’, ‘projects’, ‘estimates’ ‘endeavours’ and other factors, which may cause actual and so on and are based on our current results or outcomes to differ materially from expectations, assumptions, estimates and those projected in any forward-looking projections about the Company, our industry, statements. In light of these and other economic conditions in the markets in which uncertainties, you should not conclude that we operate, and certain other matters. All the results or outcomes referred to in any statements that address expectations or of the forward-looking statements will be projections about the future, but not limited achieved. All forward-looking statements to the Company’s strategy for growth, included in this Annual Report are based future operations, margins, market position, on information available to us on the date profitability, liquidity and capital resources, hereof, and we do not undertake to update are forward-looking statements. Since these forward-looking statements unless these are based on certain assumptions and required to do so by law. For any further expectations of future events, the Company clarification, please contact Mastek Limited. 2 Mastek Limited Report & Accounts 2019 Corporate overview 3 Our investors trust, we deliver Nothing ever stands still at Mastek. Our financial year 2018-19 saw us make solid progress against our three year Vision 2020 strategy to reposition Mastek as a major player in the enterprise digital transformation market. We have now delivered 12 consecutive quarters of revenue growth and exceeded the financial objectives we set out for financial year 2018-19. The Vision 2020 strategy, which we introduced in 2017-18 laid out a clear strategy to grow the business. In year one (2017-18) we focused on fixing any underlying issues and ensuring we had a solid platform to grow the business from. 2018-19 saw the focus move to ‘grow’ as we looked to add new client logos and ramp up revenue and profit growth. We now move into the third year of the strategy which will see us focus on accelerating our growth and solidifying our market reputation. What we have achieved 12th quarter What we plan to achieve By the end of FY 2018–19, we have delivered With new technological advancements such of consecutive revenue growth consistent and predictable financial as Artificial Intelligence (AI), Robotic Process performance across last 12 quarters. Our Automation (RPA), Machine learning and the geographical revenue spread now includes Internet of Things (IoT), we aim to be leading the UK (73.9%), the US (24.5%) and India 26.4% yearly the way in deploying these technologies to (1.6%). We have also solidified our presence solve our customers’ business challenges. As in key focus markets including UK central revenue growth we continue to grow, we plan to implement government, financial services and retail. strategies that will further balance our Our growth, across each of these verticals, geographical concentration, especially by is testimony to the growing confidence our widening our presence in the US. We will customers are placing in us. explore inorganic acquisitions which will enhance and build on our core capabilities and will also monetise non-core assets to further invest in our core business. Apart from this, we plan to continue investing in Digital Technologies and monetise our non – core assets to further invest into growing our core business. 4 Mastek Limited Report & Accounts 2019 Corporate overview 5 Our employees perform, we reward Guided by our mission to empower every Mastekeer, we have focused on executing our ‘Fix, Win and Grow’ gameplay. This has enabled us to align our services with our values, along with the evolving needs of our workforce and our growth goals. The year began on an exciting note for our Mastekeers across the globe, when we all celebrated, in one synchronised event, 36 years of Mastek’s inception. Even though we are an IT company, we are strongly focused on developing our in-house talent. As we continue to invest in high- end technologies, we see the importance of simultaneously investing in our talent, ‘configuring’ them to live up to the industry’s dynamic challenges. At Mastek, we have 2,069 employees across 11 offices located in the UK, the US and India. We expect to see this count doubling over the next 2 years. To enable our employees to deliver their work As people are at the core of everything we do, directly to customers, we have eliminated our employee development and recruitment management layers through our initiative Aim to be an Won “Best learning strategy of the ‘Check-in to Mastek’ to acquaint process play a very important role. Fuelled Mastek 4.0 – resulting in only three layers “Employer of Choice” year” award at the future of new joiners across geographies with by our passion to improve the opportunities of management separating our front-line L&D summit and awards 2019 our culture, values and strengths available to graduates in the IT sector, we developers from the CEO. The entire company have developed a Digital Learning Centre, is organised to empower self-managed Work-from-home policy to Learn Anytime Anywhere initiative Launched Young Mastekeers Guide which is available to students through our teams with the ability to set their own keep up with the evolving to offer tailor made high-quality to acquaint new Mastekeers with Graduate Development Programme. goals. Eliminating the traditional supervisory needs of our workforce online learning material our vision and values, learning appraisal process, we have instituted a team avenues, clientele, global presence, based self-appraisal system, incentivising the facilities and Tech Gurus top performing teams. HR handbook to outline all policies, Project Enhance workshops to Partnered with Gallup to assess procedures and benefits improve presentation skills, learn employee engagement scientifically 2,069 employees about UK culture and the art of with industry benchmarks across 11 global offices public speaking Flagship program ‘Women Leadership Development program Wellness workshops to encourage Empowered by Mastek’ to achieve a to enhance managerial competency the physical, financial, social and Won “Best learning strategy of gender ratio of 60:40 by 2020 and improve leadership capability emotional wellbeing of Mastekeers the year” award at the future of Collaboration with the Hellen Keller Re-energised MastApp by L&D summit and awards 2019 Institute to encourage a more adding 2 new applications diverse workforce – Insight and Reach 6 Mastek Limited Report & Accounts 2019 Corporate overview 7 Our customers ask, we serve As a reliable, dependable agile partner for digital transformation projects, we are trusted by over 200 organisations across the UK, US and India. Our customers, from commercial sector to the public sector, expect us to consistently create, modernise and recover IT projects. They have full faith in our ability to deliver game-changing outcomes, no matter where, when or how difficult the challenge. We enable them to deliver digital change, provide pragmatic analytics for business priorities, provide robust, scalable and secure applications, bridge the gap between the business and IT, while also having an iterative, agile testing approach to satisfy every customer’s need.