Annual Report 2016 17

Board of Directors

S. B. (Ravi) Pandit Auditors Chairman & Group CEO B S R & Co. LLP Chartered Accountants Kishor Patil 7th & 8th Floor, CEO & Managing Director Business Plaza, Westin Hotel Campus, Sachin Tikekar 36/3-B, Koregaon Park Annex, Whole-time Director Mundhwa Road, Pune - 411001

Lila Poonawalla Director

Dr. R. A. Mashelkar Legal Advisors Director AZB & Partners AZB House, Adi Engineer Peninsula Corporate Park, Director Ganpatrao Kadam Marg, Lower Parel, Prof. Alberto Sangiovanni Vincentelli Mumbai - 400013 Director

Anant Talaulicar Director Financial Institutions B V R Subbu - State Bank of India Director - HDFC Bank Limited - The Hongkong & Shanghai Banking Sanjay Kukreja - Corporation Limited Director - Citibank N.A. - Axis Bank Limited Anil Patwardhan - BNP Paribas &KLHI)LQDQFLDO2IÀFHU - Deutsche Bank - ICICI Bank Limited Sneha Padve - DBS Bank Limited Company Secretary - Kotak Mahindra Bank

Contents Letter from the Chairman and Group CEO...... 1 Joint Letter from the CEO and Managing Director and Whole-time Director ...... 3 Financial Highlights ...... 8 Board’s Report ...... 10 Management Discussion and Analysis ...... 50 Enterprise Risk Management Report ...... 57 Report on Corporate Governance ...... 61 Additional Shareholders Information ...... 79 R & D Activities ...... 87 Community Initiatives ...... 90 Business Responsibility Report ...... 107 Standalone Financial Statements ...... 117 Consolidated Financial Statements ...... 185 Green Initiative ...... 261 Notice ...... 262 Letter from the Chairman and Group CEO

Dear Fellow KPites, horizon continuously and to keep us up-to-date on the latest We completed another year of transformation for the Company WHFKQRORJ\ RIIHULQJV (TXDOO\ LPSRUWDQWO\ ZH KDYH IRUWLÀHG amidst the fast-changing industry scenario and geo-political our PDFs (Product Development Forums) to ensure that environment. I would like to use this letter to explain the every practice in every SBU reviews its technology roadmap industry and KPIT performance, the world as we see today and and investments on a quarterly basis with a view to gain our actions and plans for the subsequent years. leadership position. We will continue to focus on Innovation through multiple activities coordinated by SBUs as well as the CTO function. We have seen good sustainable success in new “The year that went by” offerings around Digital Transformation (especially IoT and IT Overall Financial Snapshot / OT applications), Application / Infrastructure management services (revolving around AI and automation) and engineering In FY17, our revenues grew by 3.0% in ` terms, whereas the beyond the automotive verticals (energy and life sciences). We bottom line declined by 15.1%. In US Dollar terms, the overall KDYHPDGHVLJQLÀFDQWSURJUHVVLQWKH3URGXFWVDQG3ODWIRUPV UHYHQXH ZDV ÁDWWLVK ZLWK D JURZWK RI 7KH VHUYLFHV unit and expect a couple of new products to hit the market revenue showed a modest growth of 0.5% in US Dollar terms during the current year. while there was a growth of 10.2% in the products revenue, albeit on a smaller base. People & Processes: Over the last one and half years, we have invested in our training infrastructure, not only for freshers but 2XU RSHUDWLQJ SURÀWDELOLW\ IRU )< ZDV ORZHU DV FRPSDUHG across all levels in the organization. With the fast-changing ZLWKWKHSUHYLRXV\HDU,ZRXOGOLNHWRGHWDLOKHUHWKHVSHFLÀF industry requirements, training to and trainability of the people UHDVRQVIRUWKHORZHUSURÀWDELOLW\,QVXEVHTXHQWVHFWLRQRIWKLV KDVEHFRPHDQHYHQPRUHVLJQLÀFDQWIDFWRULQWKH&RPSDQ\ letter, I will also talk about the actions we have already taken operations. We realize the importance of this and are focussing to improve the same. even more sharply on imparting the right training to the right We continued our investment in global account management SHRSOHWRHQVXUHVPRRWKÁRZRIRSHUDWLRQV and strengthening of the front end with subject matter experts. 3URÀWDELOLW\ 3URGXFWLYLW\:KLOHWKHSURÀWDELOLW\ZDVORZHU 2YHUWKHODVWPRQWKVZHKDYHDGGHGDOPRVWDFFRXQW during the year due to reasons mentioned earlier, we have managers globally, mostly in the US. As one would appreciate, PDGHVLJQLÀFDQWSURJUHVVRQWKHSURGXFWLYLW\IURQW:HKDYH these investments take some time to show actual, on-the- in-house developed best-in-class productivity improvement ground results. We also continued our fresher hiring policy DQGDXWRPDWLRQSODWIRUPVEDVHGRQVHOIOHDUQLQJDQGDUWLÀFLDO and thus ended the year with a net headcount increase of intelligence algorithms. These platforms are comparable, and more than 1,000 people, as compared with the last year. Most in some cases, better than similar competitive platforms in the of these net additions were freshers and thus their absorption PDUNHW:HKDYHJDLQHGVLJQLÀFDQWWUDFWLRQDQGQHZ$06ZLQV on revenue generating projects was limited, resulting in with these platforms. We will continue to improve these further lower offshore utilization. Hence, higher market investments and deploy them in the market. and lower utilization, coupled with additional one-time legal H[SHQVHVWKHRSHUDWLQJSURÀWDELOLW\VXIIHUHGGXULQJ)< 7HFKQRORJ\DQG,QQRYDWLRQ ,Q )< ZH KDG ODLG GRZQ SULRULW\ DUHDV WR IRFXV RQ YL] Last year, we created a separate CTO function, targeted to Growth through Account Acquisition & Mining, Leadership in have a consolidated view of technologies across the Company. 2IIHULQJV3HRSOH 3URFHVVHVDQG3URÀWDELOLW\ 3UHGLFWDELOLW\ The CTO function not only works with all the SBUs to create innovative leadership offerings but also works extensively Growth through Account Acquisition & Mining: The focus outside the Company to nurture a culture of innovation within on industry verticals has yielded us good results. Over 90% and outside the organization. This provides a platform for of our revenues come from our focus verticals and we are attracting innovative minds and bringing forward bright ideas gaining more traction because of our specialization. We have to develop smart, safe and sustainable solutions. PDGH VLJQLÀFDQW LQYHVWPHQWV LQ DFFRXQW PLQLQJ DQG ZH DUH FRQÀGHQWRIJHWWLQJWKHULJKWUHWXUQVIURPWKHVHLQYHVWPHQWV We have successfully completed the third edition of .3,7 in the years to come, starting this year. Our new account Sparkle, an annual national design and development acquisition strategy is also much focussed on the right quality innovation contest. KPIT Sparkle 2017 aimed at fostering a RI HQWHUSULVH FXVWRPHUV IRU ORQJ WHUP PXWXDOO\ EHQHÀWWLQJ culture of innovation and critical thinking among engineering UHODWLRQVKLSV 7KRXJK WKH RYHUDOO UHYHQXHV ZHUH ÁDWWLVK ZH and science students across colleges in India. The theme of had decent growth in our strategic accounts. the competition this year was ‘Smart Cities and centered around creating solutions for Smart Transportation and Smart Leadership in offerings: We are a technology company and Infrastructure using Technology’. Sparkle received 1,500 technology is at the heart of everything that we do. Our purpose innovative ideas from over 10,500 students across 300 colleges is to provide the most appropriate technology solutions for LQ,QGLD7KHÀQDOLVWVZHUHHYDOXDWHGIRUQRYHOW\RIWKHLULGHDV GLUHFWEXVLQHVVEHQHÀWVWRRXUFXVWRPHUVDQGDWWKHVDPHWLPH FRPSOHWHQHVVRISURWRW\SHIXOÀOOPHQWRIVRFLHW\·VH[SHFWDWLRQV create a positive impact on the world at large. It is therefore / problem statement and technical knowledge at a grand essential that we keep a sharp focus on achieving leadership exhibition held at Deccan College ground, Pune. Some of the in our offerings. We have done a decent job in this area as projects were in areas like urban mobility, autonomous vehicles, evident by the global leadership that we have in automotive DOWHUQDWHHQHUJ\VROXWLRQVDQGHIÀFLHQWZDVWHPDQDJHPHQW engineering, JD Edwards, SAP HANA, SucessFactors, Hybris, 6+$1$2UDFOH0'0DQG270:HKDYHVWUHQJWKHQHGRXU 7KHWRWDOQXPEHURISDWHQWVÀOHGE\.3,7DVDWWKHHQGRI)< CTO organization with a mandate to scan the technological VWRRGDWLQFOXGLQJSDWHQWVZLWKFRPSOHWHVSHFLÀFDWLRQV

Annual Report 2016-17 1 As at the year end, we have 30 granted patents across different 3URÀWDELOLW\2XUSURÀWDELOLW\LPSURYHPHQWDFWLRQVZLOOVWDUW geographies. Most of these patents are in the domain of VKRZLQJUHVXOWVIURP+)<7KHPDMRULW\RIWKHDFWLRQVDUHDV hybrid technology, along with other areas of VLSI and High IRUSURÀWDELOLW\LPSURYHPHQWDUH Performance computing 1. Revenue and headcount alignment 'LJLWDO#.3,7 2. Automation led productivity improvement Over the last couple of years, we have been investing in digital 3. Increase in realized onsite billing rate technologies to create business solutions for our customers. With expertize and leadership in engineering, IoT is the 0RUHRIIVKRUHUHYHQXHV leading area of digital for the Company. Our digital approach &RQWLQXHGULJRULQFDVKÁRZ to market hovers around four major areas viz. Smart Factory, Asset Optimization, Supply Chain Management and Digital 'HOLYHU\([FHOOHQFH We have created a centralized delivery Customer Experience. Business driven digital solutions are excellence function to ensure on-time and zero defect delivery. focused on connected manufacturing, digital supply chain 'HOLYHU\H[FHOOHQFHJRDOVZLOOEHDFKLHYHGWKURXJK and digital marketing. The technology driven digital solutions 1. Increased customer experience / satisfaction through mainly involve big data & analytics, middleware and integration delivery excellence services, cloud deployment, mobility solutions and testing & Rigor on Multi Level Reviews, weekly cadence with customers validation. 2. 3. Delivery led growth in large accounts While we take these services to our customers, it is important that we change our own organization and help transform the ,PSURYHGSURJUDPPDQDJHPHQWVNLOOVDQGJRYHUQDQFH way 12,000+ employees perform their work. To spearhead our 5. Clear documentation and communication for effective fast evolution as a digital organization, we have created a new risk management UROHRIWKH&KLHI'LJLWDO2IÀFHU &'2 7DVNHGZLWKWKHJRDORI building ‘intelligence everywhere’, the CDO function will aim People & Processes: We will continue to improve our at simplifying & automating business processes, build digital processes and focus on people development and retention infrastructure and fuel continuous innovation. The capabilities WKURXJKHPSKDVLVRQ that will get built under the CDO will supplement the digital 1. Cross skilling of selected people on new technologies efforts of various units across the organization. Another key objective is to create ‘#ThinkDigital Culture’ amongst &UHDWLRQ RI &KLHI 'LJLWDO 2IÀFHU &'2 IRU LQFUHDVLQJ employees across all levels. A digitally enabled workforce will digital awareness thus set the tone towards improving people productivity. We 3. Clear, simple and nimble processes across the organization ZLOODOVRFRLQQRYDWHZLWKVWDUWXSVDQGERXWLTXHÀUPVDQGIRUP 5HGXFWLRQLQWRSEORFNDWWULWLRQHVSHFLDOO\LQJURZWKDUHDV a conducive business ecosystem that fosters new relationships with customers. 5. Becoming a H1 independent company. .3,70LVVLRQ 3XUSRVH “The Year Ahead” At KPIT, our mission and purpose is clear. We envision a Our growth over the last 3 years has been at the lower end FOHDQHUJUHHQHULQWHOOLJHQWZRUOGDZRUOGWKDWLVVHOIVXIÀFLHQW of the industry. As a Company, we have a DNA of growth and VXVWDLQDEOH DQG HIÀFLHQW :H SURYLGH WHFKQRORJLHV WKDW KHOS thus we target to get back on the growth path, this year. We our customers make high quality, less costly products that use have guided for a constant currency revenue growth of 6% less energy or fewer materials. We strive to improve the state WRGXULQJ)<DVFRPSDUHGWRWKHODVW\HDU7KLVJURZWK of the industries we serve, by making customer operations will be more balanced throughout the year and thus we will HIÀFLHQWXVLQJWHFKQRORJ\DQGWKXVFUHDWHYDOXHIRUERWKWKH H[SHULHQFHTXDUWHURQTXDUWHUJURZWKVWDUWLQJIURPWKHÀUVW customer and KPIT. It is our mission to provide Technologies quarter itself. for a Better World. ,Q WKH FRPLQJ \HDU ZH KDYH VSHFLÀF IRFXV RQ *URZWK DQG 0RUHDERXW.3,7·V0LVVLRQ 3XUSRVH KWWSZZZNSLWFRP Delivery Excellence, while we continue to deliver on People and company/about-us/mission-purpose). 3URÀWDELOLW\ , ZRXOG OLNH WR VSHQG VRPH WLPH H[SODLQLQJ WKH We have gone through tough times before and we have always WKRXJKWSURFHVVDQGWKHLQLWLDWLYHVZHZRXOGSXUVXH come out stronger and better. I am certain we will do this again Growth: As stated earlier, over the last 2 years, we have because of a core, committed team within KPIT and continued invested in growth, both for account mining as well as new support from stakeholders like yourself, over the years. I regard DFFRXQWDFTXLVLWLRQ2XUJURZWKIRU)<ZLOOEHGULYHQE\ this highly and appreciate it thoroughly. 1. Engineering, Digital and SAP I know, with your continued support, we will return to 2. Improved alignment of practice and pre-sales VXVWDLQDEOHSURÀWDELOLW\DQGJURZWKDQGWRJHWKHUEXLOGDPRUH robust KPIT. 3. Focus on large enterprise customers (revenue in excess of Warm Regards, $ 5Bn) Sincerely yours, %HVW LQ FODVV RIIHULQJV WKURXJK SUDFWLFH GHYHORSPHQW IRUXPVDQG&722IÀFH S. B. (Ravi) Pandit 5. Growth in Product Business Chairman & Group CEO

Annual Report 2016-17 2 Joint Letter from the CEO and MD and Whole-time Director

Dear Stakeholders, offerings, we are working on digital transformation, application/ infrastructure management services and engineering solutions FY16-17 was another challenging, yet transformational year for beyond the automotive vertical. We are also focusing on WKH&RPSDQ\:KLOHWKH&RPSDQ\UHSRUWHGÁDWWLVKUHYHQXHV including automotive software security, technology for secured, for the year as compared to the last year, there were a lot of shared and synchronized data across multiple networks and qualitative improvements during the year. Our focus on digital advanced control techniques for complex systems like HEV/ technologies continued to get us newer projects in the latest EV. Our industry focus, domain expertise and investment in technology areas. The investments in Products & Platforms 5 'IRULQQRYDWLYHSURGXFWVJLYHVXVWKHFRQÀGHQFHRIJRRG further took us closer to introducing two new products to growth in this area in the years to come. the market. The investments in account management and strengthening of the front end with industry experts got settled In Extended Product Lifecycle Management (ePLM) area, DQGZHDUHFRQÀGHQWRIEHWWHUUHWXUQVIURPWKHVHLQYHVWPHQWV we are positioning ourselves under one ePLM umbrella by in the years to come. Our leadership in automotive embedded XQLI\LQJRXUVWUHQJWKVRILQGXVWU\VSHFLÀFEXVLQHVVSURFHVVHV electronics was further strengthened during the year and will engineering thought leadership & IT technology, and extending continue to lead the growth for us in the near future. our offerings across the life cycle. We are re-organizing our offerings into 3 buckets to align with the changing needs viz. Globally, the overall markets were facing tough times due to Value Harvesting, Smart PLM and Integrated Solutions. We technology disruptions, reduced deal sizes and geo-political have formed a SmartPLM group which is offering rapid Proof dynamics. These factors brought about a substantial change of concept and R&D services in new PLM areas such as cloud, in customer expectations. While on one side, customers were XVHU H[SHULHQFH DQG LQGXVWU\ VSHFLÀF DQG UROH EDVHG DSSV curtailing their budgets on traditional ERP technologies, on the store. We see good traction in Software Engineering Process other side there was higher adoption of digital, IoT, Cloud and transformation for automotive & medical devices industry, other emerging technologies. smart connected product design, PLM-ERP integrations, ALM Looking back at the highs and lows of the year, we saw upgrade and data migrations. growth in engineering, digital and products and platforms business. There has been good traction in these business %86,1(66,7 units throughout the year and we expect this momentum to SAP SBU grew by 5% on a Y-o-Y basis with revenue share at continue. We have also been making necessary investments ZKLOH,(66%8GHFOLQHGE\ZLWKUHYHQXHVKDUHDW on strengthening our offerings portfolio and sales efforts. With VLJQLÀFDQWHPHUJHQFHLQFORXGEDVHG,R7DQGGLJLWDORIIHULQJV In SAP, we have aligned our offerings with SAP’s business we have closed new deals in these areas. However, we faced strategy and we are working towards strengthening our overall FHUWDLQFKDOOHQJHVRQWKHSURÀWDELOLW\VLGHGXULQJWKH\HDU7KH digital capabilities. We have created our go-to-market around operating margins were lower as compared to last year, mainly HANA, Hybris, SuccessFactors and IoT. We have witnessed good GXHWRORZHUXWLOL]DWLRQDQGFURVVFXUUHQF\ÁXFWXDWLRQV traction in all these areas and these will continue to be our key growth drivers. 0DUNHW UHVHDUFK ÀUP ,'& KDV UHFRJQL]HG We will discuss the business performance and the markets as .3,7DVDOHDGHULQ6$3+$1$IRUWKHVHFRQG\HDULQDURZ we see them, in detail, in the ensuing paras. With greater adoption of HANA enabled solutions, we have structured our HANA go-to-market along with major solution BUSINESS UPDATE RIIHULQJVOLNH6+$1$1HW1HZ 0LJUDWLRQV6+$1$ &HQWUDO )LQDQFH IRU VKDUHG ÀQDQFLDO VHUYLFHV (QWHUSULVH 'DWD (1*,1((5,1* Warehouse solutions and IoT, Big Data & Analytics offerings. PES SBU grew by 7% on a Y-o-Y basis with revenue share at Amongst solutions, we see interest for our Simple Commerce and CPQ Accelerator for manufacturing and IM&C industry, M&A solutions to integrate and roll out IT and business 7KH$XWRPRWLYHYHUWLFDOLVKHDYLO\LQYHVWLQJLQEURDGWKHPHV processes for M&A activities, IP tools such as HANAtization Green, Autonomous and Connected. We have been creating toolkit and EDW. solutions around these themes and saw good traction in Autonomous driving solutions, ADAS, Infotainment & clusters, In Oracle, there is good interest around our cloud based Powertrain, AUTOSAR, Telematics and Diagnostics practices tools and offerings, mainly from customers undergoing across markets. To leverage the future growth opportunities, ERP transformation. Our I2D cloud based platform caters we are making investments to enhance our capabilities and to complete life cycle of upgrade and can be leveraged for strengthen our go-to-market solutions in these areas. We are implementation, roll outs and maintenance phases in future. DOVR LQFXEDWLQJ QHZ WHFKQRORJLHV WR UHPDLQ WKH ÀUVW SRUW RI +RZHYHULQWKHODVW\HDUGXHWRVLJQLÀFDQWFKDQJHLQWKLVPL[ call for embedded electronics in automotive. In terms of new in favor of cloud and perceived uncertainty around JDE, there

Annual Report 2016-17 3 was postponement of larger deals. There is good momentum Application Services, North America evaluates 20 service for transportation and logistics management, AMS around providers’ capabilities to deliver Oracle application JDE, EBS upgrade and surround applications. Our capabilities implementation and management services in North in Oracle EBS combined with emergence in EDGE Cloud America. (MDM, VCE) is opening opportunities in HCM Cloud and .3,7 ZDV DZDUGHG 2UDFOH ([FHOOHQFH DZDUG IRU ERP Cloud. We have built automation tools around SMART VSHFLDOL]HG 3DUWQHU RI WKH \HDU 0RELOLW\ 1RUWK AMS, which is helping customers to do more with less. This $PHULFDThis award recognizes our success in integrating LV JDLQLQJ VLJQLÀFDQW LQWHUHVW LQ HQHUJ\ DQG PDQXIDFWXULQJ enterprise mobility technology. verticals. In JDE, we have added focus on upgrade offering and enhancement of automation tool (IMPACTA), enabling ',*,7$/75$16)250$7,21 '7 and coaching resources on upgrade methodology and best practices. In asset management, we are using IoT, Mobility DT SBU’s revenue share stood at 10% with Y-o-Y growth of 5%. and wearables technology and built solutions around Oracle Our overall Digital Revenues (DT SBU plus Digital revenues in Real Time Service Execution. We have received recognition 6$3DQG2UDFOH DUHDURXQGRIWKHWRWDOUHYHQXHV from Oracle for the same. With Infor expanding its focus on Our digital practice revolves around Asset Management, micro verticals, we have also strengthened our collaboration to Customer & Supplier experience, Employee experience drive next generation IoT / Analytics based industry solutions. and Supply Chain Management with ICAMS as enabling We are focusing on enhancing overall customer, supplier and technologies for these business solutions. In the IoT space, we employee experience through our focused digital led solutions see traction across verticals like grid monitoring, distribution and services. and production in E&U, Asset tracking, medical device In Infrastructure Management Services (IMS) the key growth tracking, connected car & customer experience. There is areas are digitization, IoT, Cloud and platform transformation, also good momentum across predictive analytics, warranty application and infrastructure integrated run services and cost management and content management. We are already security offerings. We are continuously expanding our offerings working towards integration of IoT with business applications portfolio on the platform services and have IaaS, PaaS as well DQG KDYH LGHQWLÀHG LQGXVWU\ VSHFLÀF XVH FDVHV RU VFHQDULRV DV6DD6RIIHULQJVZLWKÁH[LEOHELOOLQJPRGHOV:HDUHRIIHULQJ where we can implement such solutions. Some areas for this Application and Infrastructure Managed Services (AIMS) to are connected vehicles, and smart cities or remote monitoring enable integrated service delivery. We have created an IoT and and diagnostics in industrial manufacturing or tracking and Engineering integrated command center for monitoring and tracing of movable and immovable assets. We are creating PDQDJLQJVHQVRUVDQGVKRSÁRRU,7:LWK,760DQGSURFHVV solutions in ‘Smart Manufacturing’ which encompasses IoT, compliance as one of the major focus in all enterprises, we Cloud, Big Data and Analytics, Robotics, Augmented Reality, have developed a strong ITSM consulting team with best of the System Integration, Simulation and Cyber Security. Our breed, tools stack. Security is another upcoming growth area offerings also include packaged solution for asset tracking, DQGZHDUHGHYHORSLQJQHZFDSDELOLWLHVRQ$UWLÀFLDO,QWHOOLJHQFH PDWHULDOV UDWLRQDOL]DWLRQ ZRUNIRUFH SUHGLFWLRQ ÀHOG VHUYLFHV and security services, as key differentiators. automation, asset diagnostics & prognostics, wearable diagnostics and connected consumer. Recognitions: 352'8&76 3/$7)2506 3 3 .3,7 KDV EHHQ SRVLWLRQHG E\ *DUWQHU ,QF LQ WKH ´&KDOOHQJHUVµ quadrant in the recently published P&P SBU grew by 13% Y-o-Y growth and has a revenue share “Magic Quadrant for SAP Application Services, RI 1RUWK $PHULFDµ Gartner’s “Magic Quadrant for SAP We have witnessed reasonable growth in products and Application Services, North America” report evaluated 20 platforms business during the year. There is good momentum service providers’ capabilities to deliver SAP application for our diagnostics and ITS offerings. Our diagnostics solution implementation and management services in North has been doing well, with strong growth registered during America. The report is focused on the full life cycle the year and we expect the momentum to continue. Our of SAP application services, spanning project-based LQWHJUDWHG,76VROXWLRQLVKHOSLQJÁHHWRSHUDWRUVWRLPSURYH implementation and multiyear Application Management WKH SDVVHQJHU WUDYHOOLQJ H[SHULHQFH DQG RYHUDOO HIÀFLHQF\ RI Services (AMS). their operations. In this space, we are trying to create a market .3,7KDVEHHQSRVLWLRQHGE\*DUWQHU,QFLQWKH´1LFKH segment which will be more robust and sustainable in nature. 3OD\HUVµ quadrant in the recently published “Magic 2XU,76SURMHFWIRU3XQH6PDUW&LW\ZDVODXQFKHGE\3ULPH 4XDGUDQW IRU 2UDFOH $SSOLFDWLRQ 6HUYLFHV 1RUWK 0LQLVWHU0U1DUHQGUD 0RGL RQ -XQH WK and we $PHULFDµ Gartner’s Magic Quadrant for Oracle DUHDOVRZRUNLQJRQDWUDIÀFPDSSLQJLQLWLDWLYHIRUVPDUWFLWLHV

Annual Report 2016-17 4 with a leading smart city, as a part of our overall ITS portfolio. Data, Mobility and Robotics. We offer expertise in operations During this year, we achieved another milestone for ITS PRQLWRULQJDQGVKRSÁRRUWRWRSÁRRULQWHJUDWLRQ:HKDYH portfolio with successful installation and deployment of 1,000 solutions for customer / supplier integrations through supplier EXVHV ÀWWHG ZLWK *36 GHYLFHV IRU 3030/ 3XQH 0DKDQDJDU portals, communities’ portal and digital customer experience. Parivahan Mahamandal Ltd.). We were engaged on a BRTS In life sciences industry, there is increased focus on product project with a North Indian smart city for providing our end and service innovation. We are assisting life science companies to end ITS solution (including On Bus ITS, Command Center, in reducing their SG&A costs with smart managed application Passenger Information Systems, Mobile Apps). This will help and infrastructure services. We are also offering various cloud us build credibility for upcoming BRTS projects in smart cities. With growing environmental concerns, there is strong interest based solutions which help companies in complying with the regulatory mandates of life sciences industry. WRZDUGVHOHFWULÀFDWLRQRISXEOLFWUDQVSRUWLQPDQ\,QGLDQFLWLHV During this year, we completed a successful pilot of REVOLO EV In Utilities, there is major trend in IT / OT convergence, Digital with Karnataka State Tourism Department at Bandipur National Transformation, CRM, BI and Customer Relationship & Billing Park by using an electric bus for safari rides at the park. The (CR&B) Solution. We are already recognized as a leader in 5(92/2 SRZHUHG HOHFWULF EXV FRPSOHWHG D GD\ WULDO ZLWK solutions such as SAP HANA for the utilities vertical. 76 safaris and covering 2,700 kilometers. We are looking forward to a formal launch for REVOLO EV during the next In Energy vertical, we are helping our customers reduce the year. Over the last few years, we have put in lots of investments overall opex by converging IT and OT programs, leveraging and efforts in developing our products business and we are out Engineering and IT skills, involving digital technologies gradually reaching the stage where these investments would and analytical capabilities. We are helping in automation of start delivering expected returns. business processes to increase productivity and reduce costs and combining these with outcome based business models. 5HFRJQLWLRQVDQG.H\'HYHORSPHQWV .3,7ZDVUHFRJQL]HGZLWK´&HUWLÀFDWHRI$SSUHFLDWLRQµ GEOGRAPHY UPDATE for its indigenous electric bus technology – 5(92/2E\ During the year FY2017, APAC was the highest growing 8QLWHG 1DWLRQV 'HSDUWPHQW RI (FRQRPLF DQG 6RFLDO geography for us with Y-o-Y growth of 17% and revenue share $IIDLUV *UDQW RQ (QHUJ\ ,W ZDV QRPLQDWHG DPRQJ at 15%. US, which is our largest geography, with revenue share ÀQDOLVWVIURPLQWHUQDWLRQDODSSOLFDQWVIRUWKLVJUDQWRQ DWJUHZE\RQD<R

Annual Report 2016-17 5 Robotics for Automatic Factories and Repairs, 3D Printing, Social ÁDJVKLSJUDGXDWHHQJLQHHUWUDLQHHSURJUDPDQGLWLVUXQDFURVV Solutions and Crowd Sourcing and Service as a Product. With SBU’s to ensure that freshers go through technical and soft skill the new administration pushing to revive the manufacturing training before being inducted into projects. We have made sector and retaining jobs in the US, the sector looks optimistic certain changes in this program to focus on “Project Based / with traction seen across digital transformation, wearables, Problem Based Learning” which will make the program more warranty management and customer experience. practical and ensure more involvement of the SBU practices in training of freshers. The European market is currently undergoing transition post Brexit. In FY17, our revenues from Europe also took hit, mainly The competency needs of SBUs are extremely diverse & GXH WR FURVV FXUUHQF\ ÁXFWXDWLRQV +DYLQJ VDLG WKDW (XURSH complex. This has paved the way for our Flagship Employee continues to be an important market for us - mainly for WUDLQLQJ DQG FHUWLÀFDWLRQ SURJUDP .$,=(1 IRFXVLQJ RQ automotive and manufacturing customers. The key technology developing 6 competency dimensions namely technical, WUHQGVLQWKLVJHRJUDSK\DUH(OHFWULÀFDWLRQRIYHKLFOHVDGRSWLRQ domain, process, project management, and professional and of stricter safety standards, push towards smart factories and OHDGHUVKLSVNLOOV:HKDYHDOUHDG\FRYHUHGFORVHWRHOLJLEOH smart manufacturing, enhanced focus on cyber security and employees in the Oct’15 - Sep’16 cycle. Along with offshore, we faster adoption of newer digital technologies. Germany and KDYHQRZODXQFKHGFHUWLÀFDWLRQSURJUDPIRURQVLWHHPSOR\HHV UK are the leading markets for us within Europe. The recent across USA, Europe, UK, Japan & Singapore. We have covered acquisition of stake in MicroFuzzy has further strengthened 1,350+ employees across 25+ accounts. our presence in Germany - both in terms of engineering Leaders in the Making Program (LMP) focuses on equipping resources, especially for eMobility, as well as ability to further employees to enhance their managerial capabilities. Another penetrate in marquee automotive customers. We also see SURJUDPWLWOHG3URMHFWDQG3URJUDP0DQDJHPHQW&HUWLÀFDWLRQV momentum in Oracle cloud and have started initial pilots in (PMPD) was launched exclusively for Project Leads, Project Digital Transformation especially in supply chain and remote Managers & Program Managers and is well aligned with asset management. Thus, with these developments, we expect international standard such as PMI PMP®. It replaced the Europe to get back to growth during the next year. HUVWZKLOH35206FHUWLÀFDWLRQSURJUDP2XU+LJKHU(GXFDWLRQ Initiative is designed as a collaborative program with well- PEOPLE INITIATIVES known Universities, to provide an opportunity to our employees Human capital is extremely critical especially in the phase of WR DFTXLUH NQRZOHGJH DQG KLJKHU TXDOLÀFDWLRQ &XUUHQWO\ transformation of IT Industry. As an organization, we have we have formed a partnership with Coventry University, UK been making investments and efforts to strengthen our people which is offering M.Tech in Automotive Electronics and MBA function in terms of developing our learning process, training in Strategic Engineering Management. The program comprises programs, new initiatives for employee engagement and well- RI&RXUVHVD3URMHFWWRFRPSOHWH0DVWHU·V'HJUHHRYHU EHLQJ'XULQJ)<ZHUHFHLYHGWKHIROORZLQJUHFRJQLWLRQV years. ´5HJLRQDO %HVW (PSOR\HU $ZDUGµ IRU )< at the During this year, we launched a new job rotation program - 11th Employee Branding awards. ‘ASPIRE’, to provide a platform through which employees can share their aspirations and work towards their aspired role. 0V9DLVKDOL9DLG 9LFH3UHVLGHQW+HDG+5 ZRQWKH´+5 Through this program, we will be enabling 3 types of job 6XSHU$FKLHYHU$ZDUGµIRUWKH:HVWHUQ5HJLRQ¶0RVW rotations – Career Path / Function area change, Customer LQÁXHQWLDO+5OHDGHUVLQ,QGLD·award by the World HRD account change and Technology change. We also introduced Congress and :RPHQ/HDGHUVKLS$FKLHYHPHQWDZDUG another initiative of mentoring and coaching - ‘SPACESHIP’, DWWKHth World Women Leadership Congress & Award ZKHUHLQ VHOHFWHG OHDGHUVKLS PHPEHUV DUH LGHQWLÀHG IRU (WWLCA). mentoring. This covers strategy, operations and personal effectiveness aspects for the mentees. Under our learning organization unit (ECoDe) we have introduced some new initiatives and training programs Employee engagement is important to ensure higher which will further accelerate the learning culture within the productivity and our framework aims to make sure that we RUJDQL]DWLRQ 67(3 ,1 ZH UHYDPSHG RXU IUHVKHU LQGXFWLRQ can stay in constant touch with our employees and address process in tune with current requirements. Under Program WKHLU FRQFHUQV DV LGHQWLÀHG LQ YDULRXV IRUXPV :H IROORZ DQ for Academic Collaboration and Engagement (PACE) initiative, open communication approach through one-on-one connect we have now partnered with 22 colleges across India which or group connect, where employees can interact with the enables us to get Day 0 slots from these partner colleges to executive leadership team and business leaders and align their engage, attract and nurture young freshers. GENESIS is our roles and responsibilities with the organization’s goals.

Annual Report 2016-17 6 OPERATIONAL UPDATE new facility in Pune Hinjewadi, Phase III and the construction ZLOOKDSSHQLQWZRSKDVHV7KHÀUVWSKDVHZKLFKZLOOKDYHD During FY17, we have launched a business transformation seating capacity of 1,000 seats is currently nearing completion LQLWLDWLYH QDPHG ¶6LPSOLÀFDU· ,Q DOLJQPHQW ZLWK RXU VWUDWHJ\ DQGZHLQWHQGWRRFFXS\WKHVDPHGXULQJ)< RIUROOLQJRXWDQ´,QWHOOLJHQW(53µZHKDYHVHOHFWHG6$36 HANA as our application stack for the ‘Systems of Record’ BUSINESS OUTLOOK and we are building a next generation ‘Engagement System’ using the latest digital technologies. As we are progressing in Even though the growth rate for the year FY17 was modest, our digital transformation journey, cyber security will be very there was substantial progress in second half of the year which important and hence we have invested in the next generation JLYHVXVDJRRGYLVLELOLW\RIPRGHUDWHJURZWKIRU)<%DVHG DSSOLFDWLRQDZDUH ÀUHZDOOV DQG DGYDQFH WKUHDW SURWHFWLRQ on this visibility we expect constant currency growth in the solutions. In the same vein, we have also implemented UDQJHRILQ)<RYHU)< solutions like ‘network as a sensor / enforcer’ that monitors We expect growth across all our business units during next and blocks possible attacks proactively. year with digital, engineering, SAP and products and platform Next year, we will have increased focus on innovative digital business, being the key growth drivers. We need to work more solutions, which will help transform our customer operations. DJJUHVVLYHO\RQWKHSURÀWDELOLW\DVSHFWSULPDULO\LQDUHDVRI We are setting up digital labs, which will showcase our digital utilization improvement through absorption of freshers onto prowess by way of demo of use cases relevant to our industry projects and delivery excellence with focus on automation. verticals. We see a lot of opportunities in the digital space and :LWKIRFXVRQSURÀWDELOLW\ZHZLOOFRQWLQXHWRLQYHVWLQJURZWK introduced a strategic initiative called ‘Think Digital’ across areas. Despite the challenges, we are excited at the prospect of the organisation. This initiative has a two-pronged agenda of us being at forefront of disruption and be a change agent in digital skills development and driving digital culture within the the industry. organisation. We will continue to enhance the development of the smart campus solution. Best Regards, INFRASTRUCTURE Sincerely Yours, As at FY17 end, we have total seating capacity of 10,300+ seats LQ,QGLDRIZKLFKVHDWVDUHRFFXSLHG'XULQJWKLV\HDU ZH VKLIWHG RXU 0XPEDL DQG &KHQQDL RIÀFH WR QHZ IDFLOLWLHV Kishor Patil Sachin Tikekar with total seating capacities of 1,000+. We are developing a CEO & Managing Director Whole-time Director

Annual Report 2016-17 7 Financial highlights

(` in million) )< )< &2162/,'$7(',1&20(67$7(0(17 Sales ($ million) Sales 33,233.61 *URVV3URÀW EBITDA* Interest Depreciation / Amortization 691.25 Other Income (Net of Exchange gain / loss) 206.60 250.91 3URÀW%HIRUH7D[ 2,991.17 3URÀW$IWHU7D[

&2162/,'$7('%$/$1&(6+((7 Share Capital 376.39 375.65 Reserves & Surplus Total Shareholder’s Funds Non-controlling Interest - Non- Current Liabilities Current Liabilities 7RWDO(TXLW\ /LDELOLWLHV Fixed Assets Goodwill on Consolidation Other non-current assets Current Investments Trade Receivables Cash and cash equivalents Other Current Assets 3,061.70 Total Assets

.H\5DWLRV Revenue growth 3.00% 7.91% EBITDA Growth 30.37% PAT Growth (15.09%) *URVV3URÀW0DUJLQ 32.15% EBITDA Margin 13.11% PAT Margin SG&A to Revenue ROE 16.07% 20.96% Return on Capital 16.36% Debt to Equity 0.21 Cash / Total Assets 15.03% 13.10% Basic Earnings Per Share (`) *EBITDA before exchange gain / loss and other income

Annual Report 2016-17 8 Revenue (₹ million) Profit After Tax (₹ million)

35,000 32,264 33,234 3,000 2,809 29,899 2,490 30,000 26,940 2,500 2,370 2,385

25,000 22,386 1,990 2,000 20,000 1,500 15,000 1,000 10,000

5,000 500

- - FY 13 FY 14 FY 15 FY 16 FY 17 FY 13 FY 14 FY 15 FY 16 FY 17

Revenues by Geography - FY 2017 Basic Earning Per Share (₹)

16 14.69 Rest of World 14 13.30 15% 12.49 12.44 12 10.86

8 Europe 17% 6

4 USA 68% 2

0 FY 13 FY 14 FY 15 FY 16 FY 17

Revenues by Strategic Business Units - FY 2017 Customers - Revenue run rate of $ 1 Mn+ Products & Platform 4% 100 92 90 Digital 87 90 Transformation 80 10% 80 74 Integrated 70 Enterprise Solutions 29% 60 50 40 30 SAP 23% 20 Product 10 Engineering Services 34% 0 FY 13 FY 14 FY 15 FY 16 FY 17

Revenues by Industry Verticals - FY 2017

Others 9%

Energy & Utilities 15%

Automotive & Transportation 40%

Manufacturing 35%

Annual Report 2016-17 9 Board’s Report

Dear Members, The Directors are pleased to present the Twenty Sixth Annual Report together with the Audited Accounts of the Company for the Financial Year ended March 31, 2017.

3HUIRUPDQFHRIWKH&RPSDQ\ (In million) Particulars Standalone 2016-17 Consolidated 2016-17 USD ` USD ` Revenue from operations 196.72 13,223.23 33,233.61 3URÀWEHIRUH7D[ 3%7 2,991.17 3URÀWDIWHU7D[ 3$7 25.19

Result of Operations LQFUHDVLQJWKHVFRSHRIRXUH[LVWLQJFHUWLÀFDWLRQV'XULQJWKH During the year under review, the total revenues from year under review, the Company has successfully completed operations (consolidated) increased to ` 33,233.61 million, a VXUYHLOODQFH DXGLW RI ,62 4XDOLW\ 0DQDJHPHQW growth of 3% over the previous year. Earnings before interest, Systems). tax, depreciation and amortization was ` PLOOLRQ :HDOVRFRQWLQXHWRPDLQWDLQFHUWLÀFDWLRQVIRU,62 RQ FRQVROLGDWHG EDVLV 1HW SURÀW DIWHU WD[ FRQVROLGDWHG (Information Security Management Systems) and ISO GHFUHDVHGE\WR`PLOOLRQ %XVLQHVV &RQWLQXLW\ 0DQDJHPHQW :H KDYH In US Dollar terms, revenues from operations for the year on successfully completed our surveillance audits for the above consolidated basis was ` PLOOLRQ DV DJDLQVW ` WZR FHUWLÀFDWLRQV LQ WKLV \HDU 7KH &RPSDQ\ FRQWLQXHV WR PLOOLRQGXULQJWKHSUHYLRXV\HDUDJURZWKRI$YHUDJH maintain the highest level of process maturity at Level 5 for realization rate was ` 67.22 per US Dollar. CMMI-DEV® V1.3 (Development) and the Automotive SPICE ® organization maturity Level 5. 6WDQGDORQHVDOHVIRUWKHÀQDQFLDO\HDUJUHZE\ to reach `PLOOLRQ1HWSURÀWDIWHUWD[GHFUHDVHGE\ Our customers and market place are changing at an 16.67% to `PLOOLRQ unprecedented speed and it is imperative for the Company to align with the changes in the market by utilizing tools Dividend and governance mechanisms which can adapt and facilitate 7KH 'LUHFWRUV DUH SOHDVHG WR UHFRPPHQG D ÀQDO GLYLGHQG RI change with ease. Keeping this in mind, we have adopted ` 2.20/- per equity share of face value of ` 2/- each (110%)on industry leading project management tool which has enhanced the paid-up equity share capital of the Company for the year IHDWXUHVOLNHPRELOHVXSSRUWFXVWRPZRUNÁRZGHÀQLWLRQDQG under review. The total pay-out will amount to ` 522.95 million Agile support apart from being a platform for aggregating including dividend distribution tax. information and data to offer consolidated engineering analytics. We also continue to strengthen its Business IT 6KDUH&DSLWDO delivery through focus on automation levers across SBUs and The issued, subscribed and paid-up capital of the Company as Practices. on March 31, 2017 is `PLOOLRQFRQVLVWLQJRI 3URGXFWLYLW\ equity shares of ` 2/- each. To enhance productivity, a key initiative has been taken to &5,6,/5DWLQJV create a RAD (Rapid Application Development) Framework – For the bank loan limits of ` PLOOLRQ &5,6,/ KDV named FoundationK, which has been developed to address the assigned the long term credit rating of AA-/ Negative. need of the market which is trending towards Agile, rapid go WR PDUNHW DQG DFKLHYH VLJQLÀFDQW QRW MXVW LQFUHPHQWDO 4XDOLW\DQG,QIRUPDWLRQ6HFXULW\ productivity improvements. This is Transformational and Our focus on quality and innovation has helped us deliver Disruptive application development framework which has increased value to our customers. We continue to focus on equipped our developers to build Scalable, Secure, High strengthening our commitment to quality by sustaining and Performance, Reliable, Responsive UI and Multilingual

Annual Report 2016-17 10 application with a framework which has fundamental In accordance with Section 152 of the Act, Mr. S. B. (Ravi) Pandit components available eliminating the effort to develop retires by rotation at the forthcoming Annual General Meeting IURP VFUDWFK 7KLV KDV SURYLGHG VLJQLÀFDQW LPSURYHPHQW LQ and being eligible, offers himself for re-appointment. The SURGXFWLYLW\JUHDWHUUHGXFWLRQLQWLPHWRPDUNHWDQGVLJQLÀFDQW Board recommends his re-appointment. code quality improvement leading to enhanced customer satisfaction. Ms. Lila Poonawalla, Dr. R. A. Mashelkar, Mr. Adi Engineer, Prof Alberto Sangiovanni Vincentelli were appointed as Additional Our process improvement drive continues to be strengthened & Independent Directors for a period of 5 years w.e.f April 1, E\ OHYHUDJLQJ ZRUNÁRZ RSWLPL]DWLRQ VL[ VLJPD DQG OHDQ 2017, subject to approval of the shareholders. The proposal for principles. We are committed to support the dynamic the same is being made to the shareholders for their approval business needs of our customers through continuous focus on at the forthcoming Annual General Meeting. operational and quality excellence. .H\0DQDJHULDO3HUVRQQHO ,QVWLWXWLRQDO6KDUHKROGLQJ The following persons have been designated as Key Managerial As on March 31, 2017, the total Institutional shareholding in Personnel of the Company pursuant to Sections 2(51) and 203 WKH&RPSDQ\ZDVRIWKHWRWDOVKDUHFDSLWDO RIWKH$FWUHDGZLWKWKH5XOHVIUDPHGWKHUHXQGHU

,QIRUPDWLRQDERXWWKH6XEVLGLDU\&RPSDQLHV 0U .LVKRU 3DWLO &KLHI ([HFXWLYH 2IÀFHU &(2 DQG Managing Director; As on March 31, 2017, the Company had 15 subsidiaries, including step-down subsidiaries. 0U$QLO3DWZDUGKDQ&KLHI)LQDQFLDO2IÀFHU &)2

During the year under review, KPIT medini Technologies AG 3. Ms. Sneha Padve - Company Secretary. was sold to ANSYS Germany GmbH on November 2, 2016. Also MicroFuzzy Industrie - Elektronic GmbH, a German based Auditors company was acquired through KPIT Technologies GmbH, Pursuant to the provisions of Section 139(1) of the Act, read effective November 30, 2016. ZLWK WKH &RPSDQLHV $XGLW DQG $XGLWRUV 5XOHV 0V B S R & Co. LLP, Chartered Accountants, were appointed as In accordance with Section 129(3) of the Companies Act, the Statutory Auditors of the Company in the Annual General 2013, (hereinafter referred to as “the Act”) the Company has 0HHWLQJKHOGRQ-XO\IRUDSHULRGRIÀYH\HDUVVXEMHFW SUHSDUHG FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV RI WKH &RPSDQ\ WRUDWLÀFDWLRQE\WKHPHPEHUVLQHYHU\$QQXDO*HQHUDO0HHWLQJ and all its subsidiary companies, which forms a part of the Based on the recommendation of the Audit Committee, the Annual Report. A statement containing salient features of the %RDUG UHFRPPHQGV UDWLÀFDWLRQ RI WKH DSSRLQWPHQW RI % 6 5 ÀQDQFLDOVWDWHPHQWVRIWKHVXEVLGLDU\FRPSDQLHVLQ)RUP$2& & Co. LLP, as the Statutory Auditors of the Company, at the 1 is annexed to this Report as “Annexure 1”. ensuing Annual General Meeting.

In accordance with Section 136(1) of the Act, the Annual 7KH1RWHVRQÀQDQFLDOVWDWHPHQWVUHIHUUHGWRLQWKH$XGLWRUV· Report of the Company, containing the standalone and the Report are self-explanatory and do not call for any further FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV DQG DOO RWKHU GRFXPHQWV FRPPHQWV 7KH UHSRUW GRHV QRW FRQWDLQ DQ\ TXDOLÀFDWLRQ required to be attached thereto have been placed on the reservation or adverse remark. website of the Company, www.kpit.com. Further, a report on the highlights of performance of subsidiaries and their The Board of Directors of the Company appointed Dr. K. R. contribution to the overall performance of the Company has Chandratre, Practicing Company Secretary, as the Secretarial also been placed on the website of the Company. Members Auditor to conduct audit for the year under review. The interested in obtaining a printed copy of the audited annual Secretarial Auditor’s report for the year under review is annexed accounts of the subsidiary companies may write to the to this Report as “Annexure 2”. The report does not contain any &RPSDQ\6HFUHWDU\DWWKH&RPSDQ\·VUHJLVWHUHGRIÀFH TXDOLÀFDWLRQUHVHUYDWLRQRUDGYHUVHUHPDUN

Directors &RUSRUDWH*RYHUQDQFH During the year, Mr. Sachin Tikekar, Whole-time Director of A separate section on Corporate Governance with a detailed the Company was re-appointed for a period of 5 years w.e.f compliance report thereon forms a part of this Report. October 20, 2016. 7KH $XGLWRUV· &HUWLÀFDWH LQ UHVSHFW RI FRPSOLDQFH ZLWK WKH provisions concerning Corporate Governance, forms a part

Annual Report 2016-17 11 of this Annual Report, as required under the Securities and (PSOR\HHV6WRFN2SWLRQ3ODQ (623V Exchange Board of India (Listing Obligations and Disclosure Information relating to ESOPs of the Company is annexed Requirements) Regulations, 2015 (hereinafter referred to as WR WKLV 5HSRUW DV ´$QQH[XUH µ 7KH LQIRUPDWLRQ LV EHLQJ “the SEBI (LODR) Regulations, 2015”). SURYLGHG LQ FRPSOLDQFH ZLWK 5HJXODWLRQ RI WKH 6HFXULWLHV 0DQDJHPHQW'LVFXVVLRQDQG$QDO\VLV DQG([FKDQJH%RDUGRI,QGLD 6KDUH%DVHG(PSOR\HH%HQHÀWV A detailed review of the operations, performance and future 5HJXODWLRQV outlook of the Company and its business is given in the 'LVFORVXUH XQGHU WKH 6H[XDO +DUDVVPHQW RI :RPHQ DW Management Discussion and Analysis Report, which forms a :RUNSODFH 3UHYHQWLRQ 3URKLELWLRQ DQG 5HGUHVVDO $FW part of this Report. Awards & Recognition The Company has in place a policy on prevention of sexual .3,7·V (OHFWULF %XV WHFKQRORJ\ 5HYROR VHOHFWHG DV D harassment and has put in place a redressal mechanism Finalist for United Nation’s Energy Grant for sustainable for resolving complaints received with respect to sexual development; harassment and discriminatory employment practices for all genders. One case of sexual harassment was reported and due .3,7UHFRJQL]HGDVD´&KDOOHQJHUµLQ*DUWQHU·V0DJLF diligence was followed as part of the process. The case was Quadrant for SAP Application Services, North America; closed post investigation by the internal committee. .3,7:RQ´1HZFRPHURIWKH

Annual Report 2016-17 12 *UHHQ,QLWLDWLYHV +HDOWK FKHFN²XSV GLDJQRVWLF VXSSRUW WR HPSOR\HHV KPIT is committed towards giving our future generations a DQGWKHLUIDPLOLHV VXVWDLQDEOHZRUOGWKURXJKHIÀFLHQF\LQRXUEXVLQHVVRSHUDWLRQV o Subsidized health check-up package offered for and conservation of natural resources. Highlights from 2016- employee + family LQFOXGH

UDLQZDWHUKDUYHVWLQJIDUPSRQGVFUHDWHGGHVLOWHGLQ o Negotiated discounts on expensive tests for Alladahalli (Nelmangala Taluka), Karnataka and Ranza employee + family (Shivapur) Village, Maharashtra. ,QLWLDWHG KRVSLWDO WLH XSV IRU GLVFRXQWHG FKHFNXSV IRU :HOO H[FDYDWLRQ FRQVWUXFWLRQ DW *XKLQL 0HWSLODZDU OPD and other tests (addition to diagnostic centers); Village, District Pune resulting in a capacity to store 2.5 $ZDUHQHVV&RPPXQLFDWLRQRQ´:RUOG+HDOWK2UJDQL]DWLRQ million litres of water. (WHO) Days”; :LGHQLQJ DQG GHHSHQLQJ RI ZDWHU FDQDO DW :DMHJKDU Village, District Pune, creating a water reservoir of 10 (QJDJHPHQW7KURXJK:HOOQHVV million litres of capacity. o Laughter sessions 6RLO'DPDW9DURWL 3DVDOL'LVWULFW3XQHZLWKDFDSDFLW\ o Special Pranayama sessions for International Yoga WRFRQVHUYHPLOOLRQOLWUHVRIZDWHU Day &HPHQW 1DOD %XQG &1% DW 6KHOJDRQ 9LOODJH 'LVWULFW o Tug of War Osmanabad, enabling a water corridor of 22m x 600m x 2m. This will result in a storage of 16 million litres of water. o Random blood sugar testing on World Diabetes Day

$IIRUHVWDWLRQ HIIRUWV OHG WR SODQWLQJ RI VDSOLQJV DW o Dental check-up camps Bengaluru and Pune locations, with an overall survival UDWHRISHUFHQW o Eye check-up camps on campus for employees

$V D SDUW RI =HUR *DUEDJH SURMHFW LQ DVVRFLDWLRQ ZLWK o Meditation activity conducted as a mark of “Healthy Janwani, Pune - a total of 1,069 awareness programs have Mind” been conducted across Pune city. o Balloon blowing activity on the World Heart Day 6LQFH ZH KDYH EHHQ FHOHEUDWLQJ WKH (QYLURQPHQW Week on the occasion of “World Environment Day”. In the o Awareness session linked to the WHO days year 2016-17, Environment Week was celebrated from June 1 to June 6, at all our locations in India. o Awareness sessions exclusively on alternate therapies

0U5DYL3DQGLWKDVEHHQQRPLQDWHGDVD1DWLRQDOH[SHUW 7HFKQRORJ\$EVRUSWLRQ on ‘Technology Evaluation Committee for Solid & Liquid This year, we took a goal of improving the organizational Waste and Water Supply’. productivity and enhanced end user experience. In pursuit 2FFXSDWLRQDO+HDOWKDQG6DIHW\$VVHVVPHQW6HULHV 2+6$6 of this goal, we have undertaken a strategic initiative The following activities were carried out by the Company under FDOOHG ¶6LPSOLÀFDU· ZKLFK DLPV IRU SURFHVV VWDQGDUGL]DWLRQ 2+6$6LQ VLPSOLÀFDWLRQ DQG DFWLRQDEOH EXVLQHVV LQVLJKWV VSDQQLQJ RUJDQL]DWLRQZLGHEXVLQHVVSURFHVVHV6$36+DQDKDVEHHQ )UDPHZRUN FUHDWHG WR PRYH DZD\ IURP D ZHHN RI chosen as the ERP application and will be the mainstay of the health and wellness to annual approach for “Health and “System of Records”. We have also initiated the development Wellness”; of ‘Next Generation Engagement Systems’ which will &KRLFH RI ZRUNRXW SURYLGHG FRQVLGHULQJ WKH SRSXODULW\ integrate with the System of Records. The constituents of the DQGWUHQG\ZD\VRIH[HUFLVH ‘Engagement systems’ are being developed using the Agile application development methodology. The engagement R ,QWURGXFWLRQRI=XPED systems that are being designed, leverage various cognitive o Introduction of Yoga technologies that will improve user experience on one hand

Annual Report 2016-17 13 and pursue process optimization on the other. Some key customers to co-innovate with us using the lab infrastructure. features of the ‘Engagement System’ include responsive UX, We have realized the important role of digital technology Device Agnostic UI, highly personalised Context and Persona on every business unit / function and our customers. We are based content delivery that gives proactive insights which focusing on creating ‘Think Digital’ culture and initiating steps would improve ‘In the moment effectiveness’. This will be a towards propagation of digital skills across the organization. true blue “conversational system” with a focus on ‘Experience 5HVHDUFKDQG'HYHORSPHQW 5 ' $FWLYLW\ ÀUVW· We have received an “Order of Merit“ Award at the Businessworld Last year, we also rolled out an initiative to implement integrated Smart Cities Conclave & Awards for its Intelligent Transport collaboration platform using Cisco’s WebEx technology. This System - A solution that enables higher ridership in buses by has led to substantial cost reductions vis a vis traditional audio PDNLQJLWVDIHUVPDUWHUDQGPRUHHIÀFLHQW%XVLQHVVZRUOG6PDUW conferencing services while providing a seamless meeting Cities Conclave & Awards is a platform that recognizes the experience that is greatly enhanced by features like ‘one solutions that address problems posed by rapid urbanization touch audio / video calling’ from any device, application and in the domain of transportation for the cities. presentation sharing, personalised meeting rooms for relevant KPIT’s innovative and indigenous electric bus technology - users, meeting recording and sharing etc. We also invested Revolo was featured in the UN ‘Energy Grant’ list. substantially in securing our infrastructure against cyber security threats. The implementation of the Next Generation .3,7ZDVQRPLQDWHGDPRQJÀQDOLVWVIURPLQWHUQDWLRQDO )LUHZDOO DQG :LOGÀUH SODWIRUPV IURP 3DOR $OWR 1HWZRUNV DUH applicants for the prestigious 2016 UN-DESA (United Nations major steps taken in this direction and have helped in securing Department of Economic and Social Affairs) Grant on Energy, business applications and infrastructure from advance threats. themed around ‘Energy for Sustainable Transport.’ KPIT was In the same vein, we have also implemented ‘TRAPs’ from UHFRJQL]HGZLWKD¶&HUWLÀFDWHRI$SSUHFLDWLRQ·IRULWVLQGLJHQRXV Palo Alto networks for Advance Threat Protection solutions electric bus technology — Revolo — that enables clean urban on end points. This solution protects end user devices mobility. against Advance Malwares and Exploits. All these preventive VHFXULW\WHFKQRORJLHVKDYHOHGWRXVUXQQLQJD¶=HUR,QFLGHQW· KPIT was invited to the United Nations HQ in New York, on infrastructure in the last year. 'HFHPEHU IRU D VSHFLDO HYHQW RUJDQL]HG E\ WKH secretariat entity. We focused not only digitizing IT infrastructure but also invested in making the campus infrastructure ‘Smart’. Using We bagged the ‘Promising Transport Innovation Award’ at the our Smart Campus platform, last year we rolled out many International Transport Forum (ITF) 2016 Summit in Leipzig, applications like Smart Parking that uses automatic number Germany. KPIT won the award for its technology ‘REVOLO’ that enables clean urban mobility. plate recognition technologies, Smart Cafeteria uses location aware solution, provides online ordering of food and uses The ITF Promising Transport Innovation Award recognizes e-payments. Our Smart Asset Management application LQQRYDWLRQV WKDW KDYH WKH SRWHQWLDO WR VLJQLÀFDQWO\ LPSURYH provides real time inventory of all the assets while the Smart the quality, performance, user experience, accessibility, Incident Management application helps our employees initiate sustainability or inter-modality of the transport. It is instituted a ‘one click’ reporting of incidents by scanning the QR codes by ITF, an inter-governmental organization which acts as a designated to common areas. These apps have improved think tank for transport policy with 57 member nations. employee experience and productivity. We are also in process of digitizing all campus infrastructure like HVAC, CCTV, pumps, REVOLO is a versatile system, designed to work across different water level controllers, elevators, power meters, D.G sets, bus formats. The key components of the system are lithium ion access control etc. and bringing real time insights on our batteries, electric motors, a power transmission unit and smart campus platform. electronic control units. The Smart Electric buses have multiple features like Intelligent Transport Systems, Mobile Phone Next year, we aim to focus on setting up Digital Labs and a App for journey planning and ticketing, Wi-Fi Infotainment Centre of Excellence (CoE) that will showcase transformational etc. which provide a superior ride experience that can help use cases using digital technologies. The CoE would enable our encourage adoption of public transport.

Annual Report 2016-17 14 7KHWRWDODPRXQWVSHQWRQ5 'DFWLYLWLHVLVJLYHQEHORZ

5 'H[SHQVHVIRUWKH\HDUHQGHG0DUFK

Particulars Amount Key Project Details (` in million)

([SHQVHGLQWKHVWDWHPHQWRI3URÀWDQG/RVV 5HIHU1RWH Solar,Bus_Program (HEV), ITS Eng, Innovation Capital work-in-progress 230.22 ADAS, Autosar, K-SAR, BUS, CREST, Powertrain

Assets capitalized during the year Total 457.44

1RWHV 1. Out of total R & D expenditure of `PLOOLRQHOLJLEOH5 'UHYHQXHH[SHQGLWXUHXQGHU6HFWLRQ $% RIWKH,QFRPH7D[ Act, 1961, for the Company is ` 125.61 million.

A separate section on R & D activities forms a part of this relationships disclosed, the following Non-Executive Directors Annual Report. are Independent in terms of Regulation 16(1)(b) of the SEBI /2'5 5HJXODWLRQVDQG6HFWLRQ RIWKH$FW )RUHLJQ([FKDQJH(DUQLQJVDQG2XWJR Given the global nature of the business of the Company, exports 1. Ms. Lila Poonawalla always form its thrust. Total foreign exchange earnings during 2. Dr. R. A. Mashelkar the year have been `PLOOLRQ SUHYLRXV\HDU` 9,900.37 3. Mr. Adi Engineer million) and foreign exchange outgo (including imports) has been 3URI$OEHUWR6DQJLRYDQQL9LQFHQWHOOL ` PLOOLRQ SUHYLRXV\HDU`PLOOLRQ 5. Mr. Anant Talaulicar Board Meetings &RPSDQ\·V 3ROLF\ RQ 'LUHFWRUV· DSSRLQWPHQW DQG Six meetings of the Board of Directors were held during the UHPXQHUDWLRQ year. More details about the meetings are available in the Report on Corporate Governance, which forms a part of this 3XUVXDQWWRWKHSURYLVLRQVRI6HFWLRQ H RIWKH$FWWKH Annual Report. policy of the Company on the appointment and remuneration RI 'LUHFWRUV LQFOXGLQJ FULWHULD IRU GHWHUPLQLQJ TXDOLÀFDWLRQV &RPPLWWHHVRI%RDUG positive attributes, independence of a director and other The details regarding Committees of the Board of Directors of PDWWHUVSURYLGHGXQGHU6HFWLRQ RIWKH$FWLVDQQH[HGWR the Company are given in the report on Corporate Governance, this Report as “Annexure 5”. which forms a part of this Annual Report. 3DUWLFXODUV RI ORDQV JXDUDQWHHV RU LQYHVWPHQWV XQGHU ,QGHSHQGHQFHRIWKH%RDUG 6HFWLRQRIWKH$FW The Board of Directors of the Company comprises of optimum Particulars of loans, guarantees or investments made during QXPEHURI,QGHSHQGHQW'LUHFWRUV%DVHGRQWKHFRQÀUPDWLRQ the year under review, pursuant to the provisions of Section disclosures received from the Directors and on evaluation of the RIWKH$FWDUHDVEHORZ

Sr. Name of the subsidiary Nature of Duration Rate of Interest Amount Purpose No. transaction (%) (` in million) 1 KPIT Technologies (UK) Guarantee Till April 30, NA For setting up the Limited 2017 credit facilities 2Impact Automotive Acquisition NA NA 500.10 Equity infusion Solutions Limited

Annual Report 2016-17 15 3DUWLFXODUV RI FRQWUDFWV RU DUUDQJHPHQWV ZLWK UHODWHG VXSHUYLVLRQRI&(2DQG&)2RIÀFHDQGHIIHFWHGDQGDSSURYHGE\ SDUWLHVUHIHUUHGWRLQ6HFWLRQ RIWKH$FW the Board of Directors and management to provide reasonable 3XUVXDQWWRWKHSURYLVLRQVRI6HFWLRQ K RIWKH$FWWKH DVVXUDQFH UHJDUGLQJ WKH UHOLDELOLW\ RI ÀQDQFLDO UHSRUWLQJ DQG particulars of contracts or arrangements with related parties WKHSUHSDUDWLRQRIÀQDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHV UHIHUUHGWRLQ6HFWLRQ RIWKH$FWDQGSUHVFULEHGLQ)RUP in accordance with Indian Accounting Standard (IND-AS) and $2&RI&RPSDQLHV $FFRXQWV 5XOHVLVDQQH[HGWRWKLV LQFOXGHVWKRVHSROLFLHVDQGSURFHGXUHVWKDW Report as “Annexure 6”. 3HUWDLQWRWKHPDLQWHQDQFHRIUHFRUGVWKDWLQUHDVRQDEOH 0DWHULDOFKDQJHVDQGFRPPLWPHQWVDIIHFWLQJWKHÀQDQFLDO GHWDLO DFFXUDWHO\ DQG IDLUO\ UHÁHFW WKH WUDQVDFWLRQV DQG SRVLWLRQRIWKH&RPSDQ\ dispositions of the assets and liabilities of the Company; There are no material changes and commitments affecting WKH ÀQDQFLDO SRVLWLRQ RI WKH &RPSDQ\ ZKLFK KDYH RFFXUUHG 3URYLGH UHDVRQDEOH DVVXUDQFH WKDW WUDQVDFWLRQV DUH EHWZHHQWKHHQGRIWKHÀQDQFLDO\HDURIWKH&RPSDQ\WRZKLFK UHFRUGHGDVQHFHVVDU\WRSHUPLWSUHSDUDWLRQRIÀQDQFLDO WKHÀQDQFLDOVWDWHPHQWVUHODWHDQGWKHGDWHRIWKLV5HSRUW statements in accordance with IND-AS and that receipts and expenditures of the Company are being made only 6LJQLÀFDQWDQGPDWHULDORUGHUV in accordance with authorizations of management and 7KHUH DUH QR VLJQLÀFDQW DQG PDWHULDO RUGHUV SDVVHG E\ WKH Directors of the Company; and regulators or courts or tribunals impacting the going concern status and Company’s operations in future. 3URYLGH UHDVRQDEOH DVVXUDQFH UHJDUGLQJ SUHYHQWLRQ RU timely detection of unauthorized acquisition, use or 5LVN0DQDJHPHQW3ROLF\ disposition of the Company’s assets that could have a A mechanism to identify, assess, monitor and mitigate various PDWHULDOHIIHFWRQWKHÀQDQFLDOVWDWHPHQWV risks to key business objectives of the Company is in place. A write-up on Enterprise Risk Management is included in this $XGLW&RPPLWWHH5HFRPPHQGDWLRQV Annual Report. During the year, all the recommendations of the Audit ,QWHUQDO &RQWURO 6\VWHPV DQG $GHTXDF\ RI ,QWHUQDO Committee were accepted by the Board. The composition of the )LQDQFLDO&RQWUROV Audit Committee is as mentioned in the Report on Corporate The internal control systems of the Company are adequate Governance, which forms a part of this Annual Report. considering the nature of its business, size and complexity. &RUSRUDWH6RFLDO5HVSRQVLELOLW\ &65 The Statutory Auditors as well as the Internal Auditors of the Company review the same on periodical basis. Further, The Policy on Corporate Social Responsibility of the Company VLJQLÀFDQWREVHUYDWLRQVLIDQ\DQGDFWLRQWDNHQUHSRUWVRQWKH and the details about the development of CSR Policy and same are considered by Audit Committee at their meeting. initiatives taken by the Company on CSR during the year as per the Companies (Corporate Social Responsibility Policy) Rules, The Act has made it mandatory for the Directors in their KDVEHHQDQQH[HGWRWKLV5HSRUWDV´$QQH[XUHµ Responsibility Statement in the Board’s Report to state that “the directors, in the case of a listed company, had laid down )RUPDO$QQXDO(YDOXDWLRQE\WKH%RDUG LQWHUQDOÀQDQFLDOFRQWUROVWREHIROORZHGE\WKH&RPSDQ\DQG A separate meeting of the Independent Directors of the WKDW VXFK LQWHUQDO ÀQDQFLDO FRQWUROV DUH DGHTXDWH DQG ZHUH Company was held on February 17, 2017, in which a formal RSHUDWLQJ´HIIHFWLYHO\µ7KHDERYHVWDWHPHQWKDVWREHDIÀUPHG to by the Statutory Auditors in their Audit Report. evaluation of performance of the Board, Committees and the individual Directors was carried out. The performance $V SHU H[SODQDWLRQ SURYLGHG WR 6HFWLRQ H RI WKH $FW HYDOXDWLRQZDVFRQGXFWHGEDVHGRQWKHFULWHULDVSHFLÀHGLQWKH ´LQWHUQDOÀQDQFLDOFRQWUROVµPHDQV´WKHSROLFLHVDQGSURFHGXUHV Act, Regulation 17 of the SEBI (LODR) Regulations, 2015 and DGRSWHGE\WKH&RPSDQ\IRUHQVXULQJWKHRUGHUO\DQGHIÀFLHQW Guidance Note on Board Evaluation issued by SEBI. conduct of its business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and The feedback based on evaluation was discussed with the detection of frauds and errors, the accuracy and completeness Chairman of the Board and given to the Directors. of the accounting records, and the timely preparation of 9LJLOPHFKDQLVP UHOLDEOHÀQDQFLDOLQIRUPDWLRQµ The Company has established a vigil mechanism as per &RPSRQHQWV RI LQWHUQDO FRQWURO GHÀQH LQWHUQDO FRQWURO RYHU Regulation 22 of the SEBI (LODR) Regulations, 2015 for ÀQDQFLDO UHSRUWLQJ DV D SURFHVV GHVLJQHG E\ RU XQGHU WKH Directors and employees to report their genuine concerns. The

Annual Report 2016-17 16 details of the same are explained in the Report on Corporate &(2 &)2&HUWLÀFDWLRQ Governance. The Policy on Vigil Mechanism may be accessed &HUWLÀFDWHE\0U.LVKRU3DWLO&(2 0DQDJLQJ'LUHFWRUDQG RQ WKH &RPSDQ\·V ZHEVLWH DW WKH OLQN KWWSZZZNSLWFRP 0U $QLO 3DWZDUGKDQ &KLHI )LQDQFLDO 2IÀFHU SXUVXDQW WR WKH company/investors/corporate-governance). SURYLVLRQVRI5HJXODWLRQ RIWKH6(%, /2'5 5HJXODWLRQV 2015, for the year under review was placed before the Board of ([WUDFWRI$QQXDO5HWXUQ Directors of the Company at its meeting held on April 26, 2017. The details forming part of the extract of the Annual Return in )RUP0*7LVDQQH[HGWRWKLV5HSRUWDV´$QQH[XUHµ $ FRS\ RI VXFK FHUWLÀFDWH IRUPV D SDUW RI WKH 5HSRUW RQ Corporate Governance. 5HVSRQVLELOLW\6WDWHPHQWRIWKH%RDUGRI'LUHFWRUV To the best of their knowledge and belief and according to $FNQRZOHGJPHQWV the information and explanations obtained by them, your We take this opportunity to thank all the shareholders of the 'LUHFWRUVVWDWHWKDW Company for their continued support. i) in the preparation of the annual accounts for the year We thank our customers, vendors, investors and bankers for ended March 31, 2017, the applicable accounting their continued support during the year. We place on record standards have been followed along with proper our appreciation of the contribution made by our employees explanation relating to material departures, if any; at all levels. Our consistent growth was made possible by their hard work, solidarity, co-operation and support. ii) they have selected such accounting policies and applied them consistently and made judgments and estimates We further thank the governments of various countries where that are reasonable and prudent so as to give a true and we have our operations. We also thank the Government fair view of the state of affairs of the Company as at March of India, particularly the Ministry of Communication and DQGRIWKHSURÀWRIWKH&RPSDQ\IRUWKH\HDU Information Technology, the Ministry of Commerce, the ended March 31, 2017; Ministry of Finance, the Ministry of Corporate Affairs, the Customs and Excise Departments, the Income Tax Department, LLL WKH\ KDYH WDNHQ SURSHU DQG VXIÀFLHQW FDUH IRU WKH the Reserve Bank of India, the State Governments, the Software maintenance of adequate accounting records in 'HYHORSPHQW&HQWHUV 6'&V 6SHFLDO(FRQRPLF=RQHV 6(=V accordance with the provisions of the Act, for safeguarding – Navi Mumbai, Chennai, Bengaluru, Hyderabad, Noida, Pune the assets of the Company and for preventing and and all other government agencies for their support and look detecting fraud and other irregularities; forward for their continued support in future. LY WKHDQQXDOÀQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGRQD going concern basis; For and on behalf of the Board of Directors Y WKH\ KDYH ODLG GRZQ LQWHUQDO ÀQDQFLDO FRQWUROV WR EH IROORZHGE\WKH&RPSDQ\DQGWKDWVXFKLQWHUQDOÀQDQFLDO controls are adequate and are operating effectively and Pune S. B. (Ravi) Pandit vi) they have devised proper systems to ensure compliance April 26, 2017 Chairman & Group CEO with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Annual Report 2016-17 17 76 00 . . 0 nol- KPIT 359 ogies Tech- (Refer (Refer UDWLRQ below) Corpo- note ‘d’ note ‘d’ Canada

30 02 75 . . . 0 13 20 14 15 (For- fuzzy Brazil merly /7'$ /7'$ (Refer (Refer Brazil) Global Global below) Micro- note ‘d’ note ‘d’ nologia SYSTIME SYSTIME KPIT Tec- Solutions

) 75 95 . . 91 . 20 72 76 Em Brazil nologies LFD/WGD Solucoes ‘c’ below) ‘c’ Informat- in million except exchange rate) exchange in million except KPIT Tech- (Refer note (Refer `

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96 62 . . 17 10 11 12 330 UAE KPIT (Refer (Refer Infos- below) ystems ystems note ‘g’ note ‘g’ 0()=(

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01 63 . . ing 331 201 (Refer (Refer Sparta below) note ‘b’ Consult- ,QF86$

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( 60 11 . . 917 262 , gies (UK) KPIT (Refer (Refer 1 below) note ‘f’ Limited Limited Technolo-

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9 Total assets Total (excluding below) Share capital Share Reserves & surplus Reporting period for the subsidiary concerned, if from different the holding company’s reporting period Reporting and currency exchange as on the rate of last date the relevant ÀQDQFLDO\HDU in the case foreign of subsidiaries Sr. No.Sr. 1 2 Name of the Name of subsidiary $QQH[XUH )RUP$2& 6WDWHPHQWFRQWDLQLQJVDOLHQWIHDWXUHVRIWKHÀQDQFLDOVWDWHPHQW 3XUVXDQWWRÀUVWSURYLVRWRVXEVHFWLRQ RI6HFWLRQUHD Part “A”: Subsidiaries Part “A”:

Annual Report 2016-17 18 - % 100 nol- KPIT ogies Tech- (Refer (Refer UDWLRQ below) Corpo- note ‘d’ note ‘d’ Canada - ) % 23 . 51 . 5 19 100 ( 14 15 (For- fuzzy Brazil merly /7'$ /7'$ (Refer (Refer Brazil) Global Global below) Micro- note ‘d’ note ‘d’ nologia SYSTIME SYSTIME KPIT Tec- Solutions -

) % 90 . 0 100 ( Em Brazil nologies LFD/WGD Solucoes ‘c’ below) ‘c’ Informat- in million except exchange rate) exchange in million except KPIT Tech- (Refer note (Refer ` - -

( % 35 20 . . 0 75 310 tronic tronic Indus- *PE+ Germany trie-Elek- ‘e’ below) ‘e’ (Refer note (Refer MicroFuzzy MicroFuzzy

) ) ) % 66 . 17 53 71 . . . 6 0 6 100 ( 563 KPIT (Refer (Refer below) *PE+ note ‘e’ note ‘e’ Germany Solutions - -

( )( % 62 13 . . 21 . 0 100 10 11 12 232 159 UAE KPIT (Refer (Refer Infos- below) ystems ystems note ‘g’ note ‘g’ 0()=( ( - -

) ) % 76 . 01 01 . . 100 91 91 395 ( ( Auto- Impact Impact motive motive Limited Solutions - - -

- % 100 ing (Refer (Refer Sparta below) note ‘b’ Consult- ,QF86$ - -

% 51 . 100 737 KPIT Tech- (Refer (Refer below) *PE+ note ‘a’ nologies Germany - - % 100 USA er Cor- SYSTIME SYSTIME Comput- SRUDWLRQ - -

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) % 65 22 99 . . . 97 . 100 4 5678 217 106 179 , , 130 USA 5 Incor- systems 13 SRUDWHG KPIT Info- ( -

- % 27 01 . . ncorporated, USA ncorporated, 62 16 100 I ncorporated, USA ncorporated, gies (UK) KPIT I (Refer (Refer below) note ‘f’ Limited Limited Technolo- - - ) ) ) ) % 03 12 21 15 . . . . 3 100 ( 10 70 13 nfosystems nfosystems ( ( I KPIT ogies nfosystems nfosystems France ME Computer Corporation, USA ME Computer I T I Technol- I T Technologies GmbH, Germany T Technologies T Technologies (UK) Limited T Technologies T T Technologies (UK) Limited Filial (UK) Limited T Technologies I I I I - - )( - - % 00 . 100 10 ( hai) KPIT China ogy Co. (Shang- /LPLWHG Technol- 6RIWZDUH

% owned by KP 5 % owned by SYST % owned by KP % owned by KP % owned by KP 99 . ncludes branch KP 100 100 I 99 100 100 above) 6 nvestments nvestments Proposed Proposed Dividend 3URÀW /RVV after taxation Provision for Provision taxation I (except in case of in investment subsidiaries) Total liabilities Total (excluding & Turnover % of share- % of holding 3URÀW /RVV tax- before ation Sr. No.Sr. 1 2 Name of the Name of subsidiary d. e. f. h. in KP has sold its stake the Company During the year, J ,QFOXGHEUDQFKHV.3,7,QIRV\VWHPV0()=($XVWUDOLDEUDQFKDQ c. b. 1RWHV a.

Annual Report 2016-17 19 Part “B”: Associates and Joint Ventures

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Sr. No. Name of Associates / Joint Ventures Yantra Digital Services Private Limited* 1 Latest audited Balance Sheet date March 31, 2017 2 Shares of associate / joint ventures held by the Nil Company on the year end No. Amount of investment in associates / joint venture Extend of holding (%) 3 'HVFULSWLRQRIKRZWKHUHLVVLJQLÀFDQWLQÁXHQFH $VSHU,1'$6SDUDLIDQHQWLW\KROGVGLUHFWO\RULQGLUHFWO\ (e.g. through subsidiaries), 20% or more of the voting power of the LQYHVWHHLWLVSUHVXPHGWKDWWKHHQWLW\KDVVLJQLÀFDQWLQÁXHQFH unless it can be clearly demonstrated that this is not the case. Conversely, if the entity holds, directly or indirectly (e.g. through subsidiaries), less than 20% of the voting power of the investee, LWLVSUHVXPHGWKDWWKHHQWLW\GRHVQRWKDYHVLJQLÀFDQWLQÁXHQFH XQOHVVVXFKLQÁXHQFHFDQEHFOHDUO\GHPRQVWUDWHG$VXEVWDQWLDO or majority ownership by another investor does not necessarily SUHFOXGH DQ HQWLW\ IURP KDYLQJ VLJQLÀFDQW LQÁXHQFH $V ,PSDFW Automotive Solutions Limited (a wholly owned subsidiary of KPIT Technologies Limited) holds 50% share of Yantra Digital Services 3ULYDWH/LPLWHGKHQFHVLJQLÀFDQWLQÁXHQFHLVHVWDEOLVKHG Reason why the associate / joint venture is not We follow equity method of accounting as per IND AS, hence, only consolidated VKDUHRISURÀWRUORVVLVFRQVLGHUHG 5 Networth attributable to shareholding as per latest N.A. audited Balance Sheet 6 3URÀW /RVV IRUWKH\HDU (` 2.57 million) i Considered in consolidation (` 0.05 million) ii Not considered in consolidation (` 2.52 million)

* Associate of Impact Automotive Solutions Limited. As of March 31, 2017, Impact Automotive Solutions Limited holds 50% equity LQWHUHVWLQ

For and on behalf of the Board of Directors

Pune S. B. (Ravi) Pandit April 26, 2017 Chairman & Group CEO

Annual Report 2016-17 20 $QQH[XUH

Secretarial Audit Report (v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 6(%,$FW ³ [Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of (a) The Securities and Exchange Board of India Managerial Personnel) Rules, 2014] (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; To (b) The Securities and Exchange Board of India The Members (Prohibition of Insider Trading) Regulations, 2015; KPIT Technologies Limited 35 & 36, Rajiv Gandhi Infotech Park, (c) The Securities and Exchange Board of India (Issue of MIDC, Phase - I, Hinjawadi Capital and Disclosure Requirements) Regulations, 3XQH 2009 (Not applicable to the Company during the Audit Period); I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good (d) The Securities and Exchange Board of India (Share corporate practices by KPIT Technologies Limited (hereinafter %DVHG(PSOR\HH%HQHÀWV 5HJXODWLRQV called the Company). Secretarial Audit was conducted in a (e) The Securities and Exchange Board of India (Issue manner that provided me a reasonable basis for evaluating the DQG /LVWLQJ RI 'HEW 6HFXULWLHV 5HJXODWLRQV corporate conducts / statutory compliances and expressing my (Not applicable to the Company during the Audit opinion thereon. Period); %DVHG RQ P\ YHULÀFDWLRQ RI WKH &RPSDQ\·V ERRNV SDSHUV (f) The Securities and Exchange Board of India PLQXWH ERRNV IRUPV DQG UHWXUQV ÀOHG DQG RWKHU UHFRUGV (Registrars to an Issue and Share Transfer Agents) maintained by the Company and also the information SURYLGHGE\WKH&RPSDQ\LWVRIÀFHUVDJHQWVDQGDXWKRUL]HG Regulations, 1993 regarding the Companies Act and representatives during the conduct of Secretarial Audit, I dealing with client; hereby report that in my opinion, the Company has, during the (g) The Securities and Exchange Board of India (Delisting DXGLW SHULRG FRYHULQJ WKH ÀQDQFLDO \HDU HQGHG RQ 0DUFK of Equity Shares) Regulations, 2009 (Not applicable 2017 (‘Audit Period’) complied with the statutory provisions listed hereunder and also that the Company has proper Board- to the Company during the Audit Period); and processes and compliance-mechanism in place to the extent, (h) The Securities and Exchange Board of India (Buyback LQWKHPDQQHUDQGVXEMHFWWRWKHUHSRUWLQJPDGHKHUHLQDIWHU RI6HFXULWLHV 5HJXODWLRQV(Not applicable to I have examined the books, papers, minute books, forms and the Company during the Audit Period). UHWXUQVÀOHGDQGRWKHUUHFRUGVPDLQWDLQHGE\WKH&RPSDQ\IRU (vi) , IXUWKHU UHSRUW WKDW having regard to the compliance WKHÀQDQFLDO\HDUHQGHGRQ0DUFKDFFRUGLQJWRWKH system prevailing in the Company and on examination of SURYLVLRQVRI the relevant documents and records in pursuance thereof, (i) The Companies Act, 2013 (the Act) and the rules made the Company has complied with the following laws thereunder; DSSOLFDEOHVSHFLÀFDOO\WRWKH&RPSDQ\

(ii) The Securities Contracts (Regulation) Act, 1956 (SCRA) (a) The Information Technology Act, 2000. and the rules made thereunder; I have also examined compliance with the applicable FODXVHVRIWKHIROORZLQJ (iii) The Depositories Act, 1996 and the Regulations and Bye- laws framed thereunder; (i) Secretarial Standards issued by The Institute of Company Secretaries of India. (iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign (ii) The Securities and Exchange Board of Direct Investment, Overseas Direct Investment and India (Listing Obligations and Disclosure External Commercial Borrowings; Requirements) Regulations, 2015.

Annual Report 2016-17 21 During the period under review, the Company has All decisions at Board Meetings and Committee Meetings complied with the provisions of the Act, Rules, Regulations, were carried out unanimously as recorded in the minutes Guidelines, Standards, etc. mentioned above. of the meetings of the Board of Directors or Committees of the Board, as the case may be. ,IXUWKHUUHSRUWWKDW The Board of Directors of the Company is duly constituted , IXUWKHU UHSRUW WKDW there are adequate systems and with proper balance of Executive Directors, Non-Executive processes in the Company commensurate with the size Directors and Independent Directors. There was no and operations of the Company to monitor and ensure change in the composition of the Board of Directors compliance with applicable laws, rules, regulations and during the audit period. guidelines.

Adequate notice is given to all directors to schedule the ,IXUWKHUUHSRUWWKDWduring the audit period, there was Board Meetings, agenda and detailed notes on agenda no event which had bearing on the Company’s affairs. were sent at least seven days in advance, and a system exists for seeking and obtaining further information and FODULÀFDWLRQVRQWKHDJHQGDLWHPVEHIRUHWKHPHHWLQJDQG Dr. K R Chandratre 3ODFH3XQH for meaningful participation at the meeting. )&61R&31R 'DWH$SULO

Annual Report 2016-17 22

OHVVWKDQ WOHVVWKDQ nfosystems nfosystems I T I ndia Private Limited ndia Private ncorporated Fujitsu Consulting I KP I Kirtane & Pandit LLP, LLP, Kirtane & Pandit Chartered Accountants LLP, Kirtane & Pandit Chartered Accountants Particulars of previous previous Particulars of employment ) 35 70 13 . . . 27 31 25 received received in million ` ( Remuneration Remuneration Joining Date of of Date -DQ 6HS 'HF $SU 19 23 (Yrs.) Experience 5HPXQHUDWLRQRI0DQDJHULDO3HUVRQQHO 5XOHV RXWWKHÀQDQFLDO\HDUDQGDUHLQUHFHLSWRIUHPXQHUDWLRQRIQRW WRIWKHÀQDQFLDO\HDUDQGDUHLQUHFHLSWRIUHPXQHUDWLRQRIQR nternational Finance) nternational I Chartered Accountant & Chartered Accountant, CWA Chartered Accountant, CWA & MS (Management) 4XDOLÀFDWLRQ Vice President MBA CEO & Managing Director Whole-time DirectorManagement (Strategic MBA Chairman & CEO Group Designation 55 67 Age (Yrs.) SP SDLQDJJUHJDWH 3DUW%3DUWLFXODUVRIHPSOR\HHVZKRZHUHLQHPSOR\PHQWIRUSDU ` Vishal Jain Employee Employee Name Kishor Patil Sachin Tikekar 3DUW$3DUWLFXODUVRIHPSOR\HHVZKRZHUHLQHPSOR\PHQWWKURXJK ` S.B. (Ravi) Pandit Notes: perquisites. of allowances and taxable value salary, comprises basic Remuneration gratuity. of fund and actuarial valuation provident contribution to does not include Company’s Remuneration the Company. of any director to employees is related the above None of cases. employment is contractual in all the above of The nature the Company. capital of up equity share the paid of or more hold two percent the employees None of $QQH[XUH D 6WDWHPHQWRIHPSOR\HHVFRYHUHGXQGHU&RPSDQLHV $SSRLQWPHQWDQG

Annual Report 2016-17 23 S. B. (Ravi) Pandit nfosystems nfosystems I ndustries Limited I ndia T I I ncorporated nfosys Limited Kirtane & Pandit LLP, LLP, Kirtane & Pandit Chartered Accountants LLP, Kirtane & Pandit Chartered Accountants KP I I The Automotive Association Research of Praj Hexaware Private Technologies Limited Smith Software CG Limited Consultancy Tata Services H=HVW6ROXWLRQV Limited Particulars of previous previous Particulars of employment Chairman & Group CEO Chairman & Group ) 65 51 35 05 70 13 ...... 9 27 31 25 received received in million ` ( Remuneration Remuneration For and on behalf of the Board of Directors of the Board For and on behalf of 15 13 10 90 6 -Jan- -Nov- -May- Joining Date of of Date 2FW )HE 6HS 2FW 6HS 'HF 33 2329 5 26 6 27 2727 1 $SU 23 35 (Yrs.) Experience U 5HPXQHUDWLRQRI0DQDJHULDO3HUVRQQHO 5XOHV nternational Finance) nternational I Chartered Accountant & B.Tech B.E. (Mechanical) Bachelor in Physics, Diploma in Engineering B.E. (Civil) M.Tech Science) PHD (Computer Chartered Accountant, CWA Chartered Accountant, CWA & MS (Management) 4XDOLÀFDWLRQ Chartered Accountant CEO & Managing Director Whole-time DirectorManagement (Strategic MBA and Chief People 2SHUDWLRQV2IÀFHU CTO EVP & CTO- Team Senior Vice President Head SBU - Global Senior Vice President Head SBU - Global Senior Vice President Team - CTO Senior Vice President Team - CTO Chairman & Group Chairman & Group CEO Designation 55 &KLHI)LQDQFLDO2IÀFHU 55 53 67 Age (Yrs.)

2017 , 26 Employee Employee Name Kishor Patil Sachin Tikekar Abhishek Sinha Anup Sable Anil Patwardhan Nataraj N Rajesh Janwadkar Shrikrishna Patwardhan Hemant Pande S.B. (Ravi) Pandit 7RSWHQHPSOR\HHVLQWHUPVRIUHPXQHUDWLRQGUDZQGXULQJWKH\HD ,QIRUPDWLRQDVSHU5XOH RIWKH&RPSDQLHV $SSRLQWPHQWDQG Notes: perquisites. of allowances and taxable value salary, comprises basic Remuneration gratuity. of fund and actuarial valuation provident contribution to does not include Company’s Remuneration the Company. of any director to employees is related the above None of cases. employment is contractual in all the above of The nature the Company. capital of up equity share the paid of or more hold two percent the employees None of Pune April

Annual Report 2016-17 24 $QQH[XUH E

7KHUDWLRRIWKHUHPXQHUDWLRQRIHDFK'LUHFWRUWRWKHPHGLDQHPSOR\HH·VUHPXQHUDWLRQDQGRWKHUGHWDLOVLQWHUPVRI6HFWLRQ RIWKH$FWUHDGZLWK5XOH RIWKH&RPSDQLHV $SSRLQWPHQWDQG5HPXQHUDWLRQRI0DQDJHULDO3HUVRQQHO 5XOHV Sr. Particulars Disclosure No. i. The ratio of the remuneration of each Director to the median remuneration Mr. S. B. (Ravi) Pandit# RIWKHHPSOR\HHVIRUWKHÀQDQFLDO\HDU Mr. Kishor Patil# Mr. Sachin Tikekar# Ms. Lila Poonawalla Dr. R. A. Mashelkar 2.96 Mr. Adi Engineer Prof. Alberto Sangiovanni Vincentelli Mr. B V R Subbu #Remuneration does not include amount of Provident Fund. The Company decides the remuneration of its Managerial Personnel on the basis of Cost to Company (CTC), whereas, under the provisions of the Act, the managerial remuneration is calculated as per Income 7D[$FW7KHUHSRUWHGÀJXUHVORRNVKLJKHURUORZHUGHSHQGLQJ on the components of the CTC. The salaries of the all 3 Whole-time Directors are in close descending order. ii. The percentage increase in remuneration of each Director, CFO, CS in the Mr. S. B. (Ravi) Pandit$ ÀQDQFLDO\HDU Mr. Kishor Patil$ Mr. Sachin Tikekar$ 102.30 Ms. Lila Poonawalla -33.93 Dr. R. A. Mashelkar Mr. Adi Engineer Prof. Alberto Sangiovanni Vincentelli -20.30 Mr. B V R Subbu -33.29 Mr. Anil Patwardhan (CFO) 21.22 Ms. Sneha Padve# (CS) Not Applicable $ The Company decides the remuneration of its Managerial Personnel on the basis of CTC, whereas, under the provisions of the Act, the managerial remuneration is calculated as per Income Tax $FW7KHJURZWKLQWKHÀ[HGVDODU\IRUWKHPGXULQJWKH\HDU under reporting is around 15%. Actual remuneration includes VPI paid for H2 of previous year and H1 of current year. 1RWDSSOLFDEOHDVÀJXUHVIRUDUHIRUSDUWRIWKH\HDU iii. 7KHLQFUHDVHLQWKHPHGLDQUHPXQHUDWLRQRIHPSOR\HHVLQWKHÀQDQFLDO\HDU iv. The number of permanent employees on the rolls of the Company 9,395 employees as on March 31, 2017. v. Average percentile increase already made in the salaries of employees other Average percentage increase in salaries of employees other than WKDQWKH0DQDJHULDO3HUVRQQHOLQWKHODVWÀQDQFLDO\HDUDQGLWVFRPSDULVRQ Managerial Personnel is 5% ZLWKWKHSHUFHQWLOHLQFUHDVHLQWKHPDQDJHULDOUHPXQHUDWLRQDQGMXVWLÀFDWLRQ thereof and point out if there are any exceptional circumstances for increase Average increase in the remuneration of Directors and other Key in the managerial remuneration Managerial Personnel is 71.72% vi. ,WLVDIÀUPHGWKDWWKHUHPXQHUDWLRQSDLGLVDVSHUWKH5HPXQHUDWLRQ3ROLF\RIWKH&RPSDQ\

For and on behalf of the Board of Directors

Pune S. B. (Ravi) Pandit April 26, 2017 Chairman & Group CEO

Annual Report 2016-17 25 years years 3 5 f shares f shares 2015 , 000 , years from the years from 19 3 500 , to 1 August Maximum period of Maximum period of grants. of the date from Maximum period of of vesting of the date from options granted. D )RU 9HVWHG 2SWLRQV E )RU ([HUFLVH RI 2SWLRQV Closing Market Price of the Price of Closing Market on equity share Company’s which has Exchange the Stock on highest trading volumes, of the date the day prior to Options. grant of date of grant. of date (QGRI

Maximum period of Maximum period of grants. of the date from Maximum period of of vesting of the date from options granted. ` D )RU 9HVWHG 2SWLRQV E )RU ([HUFLVH RI 2SWLRQV The Exercise Price shall be The Exercise shares of face value equal to i.e. date of grant. of date (QGRI

Annual Report 2016-17 26 00 70 70 70 00 00 00 00 70 00 70 70 70 70 ...... NA NA NA NA 103 Price Exercise Exercise Average Average Weighted Weighted 0 0 0 0 000 103 700 103 150 103 500 103 500 103 500 103 , , , , , , 051 091 051 , , , No. of No. of Options 00 1 00 0 0 00 1 00 290 00 965 00 0 0 00 0 0 00 0 0 00 0 0 00 00 39 00 1 00 0 0 00 0 103 ...... NA NA NA NA 2 Price Exercise Exercise Average Average Weighted Weighted 0 00 000 2 000 2 000 2 000 000 2 000 000 000 2 000 2 000 2 000 2 , , , , , , , , , , , 5 60 10 10 155 395 150 155 No. of No. of Options 00 0 0 53 0 0 60 0 0 21 0 0 37 300 27 25 51 5 ...... NA NA NA NA 37 79 102 Price Exercise Exercise Average Average Weighted Weighted 953 667 000 151 326 326 179 102 953 602 602 77 , , , , , , , , , 176 657 752 176 269 , , , No. of No. of Options 65 00 60 5 60 60 00 30 60 0 0 60 269 66 60 752 60 252 60 60 5 60 ...... NA NA NA NA 70 70 70 70 30 70 70 70 Price Exercise Exercise Average Average Weighted Weighted 00 00 902 70 206 206 70 750 70 , , , , 2 20 271 271 No. of No. of Options Particulars ESOP 2004 Scheme ESOP 2006 Scheme ESOP 2014 Scheme ESOP 2015 Scheme ) ) ` ` Number of Options Outstanding at Number of the year the end of No. of Options Outstanding at the No. of the year beginning of Options Granted during the year Options Granted Number of Options vested and Options vested Number of the year at the end of exercisable Money realised by exercise of options of by exercise Money realised ( Number of Options Outstanding at Number of the year the end of Options Lapsed during the year arising as a shares number of Total options of exercise of result Options Exercised during the year Options Exercised Money realised by exercise of options of by exercise Money realised ( Options Lapsed during the year Options Granted during the year Options Granted during the year Options Exercised Options Forfeited / Surrendered Options Forfeited / Surrendered during the year Total number of shares arising as a shares number of Total options of exercise of result Options Forfeited / Surrendered Options Forfeited / Surrendered during the year No. of Options Outstanding at the No. of the year beginning of Number of Options exercisable at the Options exercisable Number of the year end of 3 1 2 9 7 6 5 7 2 5 3 6 1 9 Sr. Sr. No II. Option Movement during the year ended March 2017 ended March during the year II. Option Movement Option Movement during the year ended March 2016 ended March during the year Option Movement

Annual Report 2016-17 27 ) 00 00 00 00 00 Nil . . . . . ` 0 D\PHQW Exercise Exercise Price ( Scheme Scheme ESOP 2015 ESOP 2015 Scheme L ESOP 2015 I QJRXWVWDQGLQJ 00 0 00 0 00 0 0000 0 Nil Nil . . . . . 0 granted Scheme Scheme ESOP 2014 ESOP 2014 No. of Options No. of Scheme ESOP 2014 ) 00 0 00 00 0 00 0 36 0 19 ...... ` 119 Exercise Exercise Price ( Scheme Scheme ESOP 2006 ESOP 2006 LN I N 00 0 00 0 00 59 00 0 00 0 00 ...... Scheme 0 0 0 0 0 0 ESOP 2006 granted Scheme Scheme ESOP 2004 ESOP 2004 No. of Options No. of 6 . ) ` Scheme Exercise Exercise Price ( % or more of the options granted during the year the options granted of % or more )DLU9DOXH0HWKRGLQDFFRUGDQFHZLWK,QG$66KDUHEDVHGS 5 HQGHG0DUFKZKRVH HQGHG0DUFKZKRVH DUWR 20 % of the issued capital of the Company at the time of grant during the year at the time of the Company the issued capital of % of 1 QH\HDUHTXDOWRRUH[FHHGLQJRIWKHLVVXHGFDSLWDO H[FOXGL PRXQWLQJWRRUPRUHRIWKHRSWLRQVJUDQWHGGXULQJWKH\HDU 30000 151 granted No. of Options No. of ) ` Exercise Exercise Price ( L I granted None of the employees were granted more than more granted were the employees None of None of the employees were granted more than more granted were the employees None of 2017 2016 Name of employeeName of Options granted No. of Options granted No. of employeeName of Options granted No. of Options granted No. of Options granted No. of Options granted No. of Options granted No. of Options granted No. of Method of Accounting Method of Diluted Earnings Per Share pursuant to issue of shares on exercise of of on exercise shares issue of pursuant to Share Earnings Per Diluted (AS) with Accounting Standard in accordance options calculated ParticularsParticulars Particulars ESOP 2004 Particulars(PSOR\HHZLVHGHWDLOVRIRSWLRQVJUDQWHGGXULQJWKHÀQDQFLDO\H ESOP 2004 Scheme ESOP 2006 Scheme ESOP 2014 Scheme ESOP 2015 Scheme Name of employeeName of Options No. of Hemant Pande N :HLJKWHG$YHUDJH)DLU9DOXHRI2SWLRQVJUDQWHGGXULQJWKH\HDU The Weighted Average Market Price of Options exercised during the year ended Options exercised Price of Market Average The Weighted March :HLJKWHG$YHUDJH)DLU9DOXHRI2SWLRQVJUDQWHGGXULQJWKH\HDU The Weighted Average Market Price of Options exercised during the year ended Options exercised Price of Market Average The Weighted March ZDUUDQWVDQGFRQYHUVLRQV RIWKH&RPSDQ\DWWKHWLPHRIJUDQW VI (i) Senior managerial personnel (b) price than market price is greater Exercise (c) price price is less than market Exercise (a) price price equals market Exercise IV (b) price than market price is greater Exercise (c) price price is less than market Exercise (a) price price equals market Exercise V III LL (PSOR\HHVZKRZHUHJUDQWHGGXULQJDQ\RQH\HDURSWLRQVD Sr. Sr. No. Sr. No. Sr. No. Sr. No. LLL ,GHQWLÀHGHPSOR\HHVZKRZHUHJUDQWHGRSWLRQGXULQJDQ\R

Annual Report 2016-17 28 00 00 00 00 00 00 33 ...... 110 Average Scheme Weighted Weighted ESOP 2015 LYH 00 0 00 0 00 0 00 0 00 0 00 0 ...... UHFHGLQJWKHGDWHRI 0 ODWLOLW\GXHWRSXEOLFO\ UDPDWXULW\HTXDOWRWKH Average Scheme 0DU 0DU Weighted Weighted ESOP 2014 60 0 73 0 60 0 76 0 29 0 . . . . . Average Scheme Weighted Weighted ESOP 2006 00 151 00 151 00 0 00 00 3 00 7 ...... 0 0 0 0 0 0 Average Scheme ESOP 2004 ) ` DWHRIJUDQWKDVEHHQFRQVLGHUHG ODWHGDVDQDYHUDJHRIGLYLGHQG\LHOGVIRUÀYHÀQDQFLDO\HDUVS LVWKHSHULRGIRUZKLFKWKH&RPSDQ\H[SHFWVWKHRSWLRQVWREHO FRQVLGHUHG 3URÀWRU/RVVIRUWKHSHULRG RULFYRODWLOLW\DGMXVWHGIRUDQ\H[SHFWHGFKDQJHVWRIXWXUHYR QVLGHUHGIRUWKHFDOFXODWLRQLVWKHLQWHUHVWUDWHDSSOLFDEOHIR Variables Weighted nterest Rate nterest I Employee Option Plan expense the period liability at the end of Total Particulars . the option grant ( at the time of in market the underlying share Price of . Exercise Price . Exercise . Expected Volatility . Expected . Life (in years) Expected . Risk Free Free . Risk 6 5 'LYLGHQG

Annual Report 2016-17 29 ndian ndian ndian I I I XODWLRQVDUH Service Service Service , 62 / 61 L L L L L L I I I I I I N N N Details Details ` T Technologies Employees Welfare Trust Employees Welfare T Technologies I , Bhosale Saptasur Apts, Plot N- HDQWIRUWKHSXUSRVHRIDGPLQLVWHULQJWKHVFKHPHVXQGHUWKHUHJ 6KDLOHVK6RFLHW\*DQHVK1DJDU3XQH $PLW%ORVVRPWK/DQH3UDEKDW5RDG3XQH 101 %KRVDOH1DJDU3XQH Mr. Sudheer Tilloo Mr. Mr. Shriharsh Ghate Mr. Mr. Suhas Deshpande Mr. 2 1 3 Sr. No.Sr. Name Address Occupation Nationality 7KHGHWDLOVLQFRQQHFWLRQZLWKWUDQVDFWLRQVPDGHE\WKH7UXVWP Percentage of paid up equity paid of Percentage the capital as at the end of SUHYLRXVÀQDQFLDO\HDU Secondary acquisition N i) General Information of the Scheme i) General Information of Particulars by the Trust transactions in shares ii) Brief details of Particulars Name of the TrustName of the Trustee(s) Details of KP held at the shares Number of the year beginning of 1XPEHURIVKDUHVDFTXLUHGGXULQJWKH\HDUWKURXJK Primary issuance N Amount of loan disbursed by loan Amount of in the / any company company during the year group, outstanding loan Amount of / any company to (repayable as at the in the group) company the year end of taken if any, loan, Amount of for any other source from / any company which company any has provided in the group security or guarantee Any other contribution made N IX Trust to Details related

Annual Report 2016-17 30 00 00 12 . . . 0 0 0 T Technologies Employee Welfare Trust (“Trust”), is (“Trust”), Trust Employee Welfare T Technologies I Purpose for transfer of shares to the employees / sold the employees to shares Purpose for transfer of during the year KP activities, which a trust formed for employee welfare Employee our Company’s includes, administration of its Option Plan (“ESOP”) Schemes. As part of Stock by the Company shares is allotted operations, the Trust in and the Trust, open market from shares or it acquires administration of in the course of turn, sells such shares and the sale of shares the ESOP schemes. The holding of the employees. is done on behalf of by the Trust, shares $VDSHUFHQWDJHRISDLGXSHTXLW\FDSLWDODVDW0DUFK WKHHQGRIWKH\HDULPPHGLDWHO\SUHFHGLQJWKH \HDULQZKLFKVKDUHKROGHUV·DSSURYDOZDVREWDLQHG L L I I Number of shares transferred to the employees / sold the employees to transferred shares Number of during the year Sold during the year the employees to Transferred during the year the year Held at the end of N Number of shares transferred transferred shares Number of the employees / sold along to with the purpose thereof LLL ,QFDVHRIVHFRQGDU\DFTXLVLWLRQRIVKDUHVE\WKH7UXVW Particulars shares Number of Number of shares held at the shares Number of the year end of the Held at the beginning of year during the yearAcquired N

Annual Report 2016-17 31 $QQH[XUH

Nomination and Remuneration Policy DXWKRULW\WRXQGHUWDNHVXFKRWKHUVSHFLÀFGXWLHVDVWKH%RDUG prescribes from time to time. The below mentioned roles and 2EMHFWLYH responsibilities are derived from the terms of reference of the The Nomination and Remuneration (HR) Committee of KPIT Committee as determined and approved by the Board. Technologies Limited (“Company”) will be a Board Committee and shall broadly play a dual role of 6SHFLÀFUHVSRQVLELOLWLHVRIWKH&RPPLWWHHLQFOXGH 1. Criteria for appointment as a Director - Identifying potential candidates for becoming members of the Board and determining the composition of the The Committee shall formulate criteria for determining Board based on the need and requirements of the TXDOLÀFDWLRQVVNLOOVH[SHUWLVHTXDOLWLHVSRVLWLYHDWWULEXWHV Company from time to time to bring out diversity in the required to be a Director of the Company. The criteria to Board and also identify persons to be recruited in the EH IRUPXODWHG ZLOO EH EHQHÀFLDO WR WKH &RPSDQ\ DQG senior management of the Company and; also take into consideration the qualities and expertise essential for the Company to operate going forward in - Ensuring the Companies compensation packages and a changing business environment. The Committee shall other human resource practices are effective in maintaining develop and recommend to the Board for its approval, a competent workforce and make recommendations criteria to be considered for nomination / appointment of relating to compensation of the Managing Director, a Director. Whole-time Directors and the senior management of the Company from time to time. ,GHQWLÀFDWLRQ DQG QRPLQDWLRQ RI SHUVRQV ZKR DUH TXDOLÀHGWREH'LUHFWRUV &RQVWLWXWLRQ 7KH&RPPLWWHHVKDOOLGHQWLI\SHUVRQVZKRDUHTXDOLÀHGWR The Committee shall comprise of at least three Directors, become Directors and who satisfy the criteria laid down. all of whom shall be Non-Executive Directors and at least 7KH SURFHVV RI LGHQWLÀFDWLRQ VKDOO LQFOXGH DVFHUWDLQLQJ half shall be Independent Directors, the Chairperson being meeting, screening and reviewing candidates for an Independent Director. The Chairperson of the Company appointment as Directors, whether Independent, Non- (whether or not a Non-Executive Director) may be a member Executive or Executive. The existing Directors who of the Committee but shall not chair such Committee. The continue to satisfy the Criteria may also be considered by Chairperson of this Committee or in case of his absence, the Committee for re-appointment. any other person authorised by him shall attend the general meetings of the Company. The Committee may meet, convene The Committee on satisfaction of a potential candidate and conduct Committee meetings through video conferencing meeting the Criteria and having completed the or audio visual means, as may be provided by the Company. LGHQWLÀFDWLRQ DQG VHOHFWLRQ SURFHVV ZLOO UHFRPPHQG such persons’ candidature to the Board for appointment 0HDQLQJRI7HUPV8VHG as a Non-Executive Director or Independent Director or a. “Act” means the Companies Act, 2013 including the rules, Executive Director, as the case may be. VFKHGXOHV FODULÀFDWLRQV DQG JXLGHOLQHV LVVXHG E\ WKH Ministry of Corporate Affairs from time to time. The Committee may recommend the candidates to the %RDUGZKHQ b. “Board” refers to Board of Directors of KPIT Technologies Limited. $Q\YDFDQF\LQWKH%RDUGLVUHTXLUHGWREHÀOOHGGXH to retirement or resignation or c. “Company” refers to KPIT Technologies Limited pursuant to this Policy. - Any vacancy arises out of annual Board performance evaluation or d. “Rules” means Companies (Meetings of Board) Rules, LQFOXGLQJDQ\PRGLÀFDWLRQVRUDPHQGPHQWVWKHUHRI - Any vacancy arises as a result of end of tenure in accordance with the Act, Rules and SEBI (Listing :RUGVDQGH[SUHVVLRQVXVHGDQGQRWGHÀQHGLQWKHVHUXOHVEXW Obligations & Disclosure Requirements) Regulations, GHÀQHGLQWKH$FWVKDOOKDYHWKHVDPHPHDQLQJVUHVSHFWLYHO\ 2015 or assigned to them in the Act. - Any change is required in the Board on account of 5ROHDQG5HVSRQVLELOLWLHV diversity The role and responsibility of the Committee shall be to XQGHUWDNH VSHFLÀF GXWLHV OLVWHG EHORZ DQG LW ZLOO KDYH WKH - Any change is required by law

Annual Report 2016-17 32 $SSURYDO RI FULWHULD LGHQWLÀFDWLRQ RI SHUVRQV DQG 6. Compensation of Senior Management QRPLQDWLRQ RI FDQGLGDWHV UHTXLUHG IRU VHQLRU The Committee shall evaluate the performance of the management positions senior management of the Company, i.e. the members The Committee shall lay down criteria including of the Executive Council of the Company, as presented TXDOLÀFDWLRQV VNLOOV H[SHUWLVH DQG TXDOLWLHV UHTXLUHG IRU by the Managing Director & CEO. The Committee shall senior management positions like Managing Director also provide an overview of the remuneration payable &(2 &KLHI )LQDQFLDO 2IÀFHU DQG &RPSDQ\ 6HFUHWDU\ WR.H\0DQDJHULDO3HUVRQVDVGHÀQHGXQGHUWKH$FWDQG and members of the Executive Council of the Company. senior management of the Company. The Committee The Committee shall play a consultative role to Board shall ensure that the remuneration to the Key Managerial and make recommendations to the Board regarding Persons and Senior Management involves a balance the appointments, removal and changes to the senior EHWZHHQÀ[HGDQGLQFHQWLYHSD\UHÁHFWLQJVKRUWDQGORQJ management positions of the Company. term performance objectives appropriate to the working of the Company and its goals. 4. Evaluation of the performance of the Board The Committee shall determine a process for evaluating 7. Commission to the Non-Executive Directors the performance of every Director, Committees of the The Committee shall determine the Commission payable Board and the Board on an annual basis. The Committee to the Non-Executive Directors after taking into account shall also review its own performance on an annual basis. their contribution and participation as chairman / The Committee may seek the support and guidance of member to the decision making at meetings of the Board external experts and agencies for this purpose. / Committees well as providing strategic inputs and The Committee may evaluate the directors on following supporting highest level of Corporate Governance and IDFWRUV Board effectiveness. It shall be within the overall limits À[HGE\WKHVKDUHKROGHUVRIWKH&RPSDQ\ a) Attendance at Board meetings and Board Committee meetings, 3RZHUV2I7KH&RPPLWWHH 7KH&RPPLWWHHVKDOOKDYHLQWHUDOLDIROORZLQJSRZHUV b) Chairmanship of the Board and Board Committees, - Conduct studies or authorise studies of issues within the c) Contribution and deployment of knowledge and scope of the Committee and will have access to necessary expertise at the Board and Committee meetings, books, records, facilities and personnel of the Company.

d) Guidance and support provided to senior - Retain or seek advice of consultants and experts for management of the Company outside the Board performance of their role under this Policy and the costs meetings, relating thereto shall be borne by the Company. e) Independence of behaviour and judgment and - Delegate its powers or form sub-committees to perform I ,PSDFWDQGLQÁXHQFH any of its functions or role under this Policy, subject to approval of the Board. 5. Compensation and evaluate the performance of the Managing Director and / or Whole-time Director and Meetings the Executive Director The Committee shall meet at such frequency as it may deem The Committee shall recommend to the Board the appropriate. Minutes of the meeting shall be circulated to the compensation package of the Managing Director, Whole- Committee. The Committee shall report to the Board regarding time Director/s and Executive Director/s on evaluation of its actions and make necessary recommendations to the Board. performance in light of the short term and long term goals The Committee shall be governed by the same rules regarding of the Company and overall performance of the Company. meetings as are applicable to the Board. The Committee shall also ensure that the compensation packages are in accordance with applicable law, in line Minutes with the Company’s objectives, shareholders interests, The Committee will maintain written minutes of its meetings, with industry standards and have an adequate balance LQFOXGLQJIRUPDOWHOHSKRQLFPHHWLQJVZKLFKZLOOEHÀOHGZLWK EHWZHHQÀ[HGDQGYDULDEOHFRPSRQHQW the minutes of the meetings of the Board.

Annual Report 2016-17 33 $QQH[XUH

)RUP$2&

)RUPIRUGLVFORVXUHRISDUWLFXODUVRIFRQWUDFWVDUUDQJHPHQWVHQWHUHGLQWRE\WKH&RPSDQ\ZLWKUHODWHGSDUWLHVUHIHUUHGWR LQVXEVHFWLRQ RI6HFWLRQRIWKH&RPSDQLHV$FWLQFOXGLQJFHUWDLQDUP·VOHQJWKWUDQVDFWLRQVXQGHUWKLUGSURYLVR thereto 3XUVXDQWWRFODXVH K RIVXEVHFWLRQ RI6HFWLRQRIWKH$FWDQG5XOH RIWKH&RPSDQLHV $FFRXQWV 5XOHV 1. Details of contracts or arrangements or transactions not at arm’s length basis: Nil 2. Details of material contracts or arrangements or transactions at arm’s length basis:

Name(s) of the Nature of contracts Duration of Salient terms of the Date(s) of approval Amount related party / arrangements / the contracts / contracts or arrangements E\WKH%RDUGLI paid as and nature of transactions arrangements / or transactions including any DGYDQFHVLI relationship transactions WKHYDOXHLIDQ\ any (a) (b) (c) (d) (e) (f) KPIT Infosystems Contract for Contract shall be - KPIT India will carry out Not required. Nil Incorporated (KPIT providing off- effective from the software development Contract was US) shore software April 1, 2016 and and consultancy work as entered in ordinary [Wholly Owned development shall remain valid per the requirements of course of business Subsidiary of KPIT and consultancy until terminated KPIT US; and therefore Technologies services to KPIT US by either party by - KPIT US will pay to KPIT approval by the Limited (KPIT JLYLQJGD\V· India 95% of the fees that Board was not India)] notice to other is due to KPIT US, under required. party. its contract with the end customer for provision of such services.

For and behalf of the Board of Directors

Pune S. B. (Ravi) Pandit April 26, 2017 Chairman & Group CEO

Annual Report 2016-17 34 $QQH[XUH

Annual Report on Corporate Social Responsibility (CSR) Activities 1. A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs. 7KH&RPSDQ\KDVDVWURQJVRFLDOFRPPLWPHQWWRWKHFRPPXQLW\ZHOLYHLQ:HIXOÀOOWKLVFRPPLWPHQWERWKE\HPSOR\HH SDUWLFLSDWLRQ DQG ÀQDQFLDO FRQWULEXWLRQ :H VHHN WR IRFXV RQ D IHZ DUHDV RI VRFLDO LQLWLDWLYHV ZKHUH ZH EHOLHYH WKURXJK WHFKQRORJ\RXUVSHHGRILQQRYDWLRQDQGHPSOR\HHSDUWLFLSDWLRQZHFDQDGGVLJQLÀFDQWYDOXHWRRXUFRPPXQLW\ZRUOGZLGH KWWSZZZNSLWFRPFRPSDQ\LQYHVWRUVFRUSRUDWHJRYHUQDQFH 'XULQJWKH\HDUWKH&RPSDQ\KDVXQGHUWDNHQIROORZLQJSURMHFWV 1) Water Conservation Program 2) Afforestation Program =HUR*DUEDJH3URMHFW &KKRWH6FLHQWLVWV 5) Teach for India 6) Smart India HACKATHON 7) Sparkle

7KHFRPSRVLWLRQRIWKH&65&RPPLWWHH7KH&RPPLWWHHFRQVLVWVRIWKUHHPHPEHUVLQFOXGLQJDQ,QGHSHQGHQW'LUHFWRUDVEHORZ

Sr. No. Name of the Committee Member Nature of Directorship in the Company 1 Mr. S.B. (Ravi) Pandit (Chairman) Whole-time Director 2 Mr. Sachin Tikekar (Member) Whole-time Director 3 Mr. Adi Engineer (Member) Independent Director

$YHUDJHQHWSURÀWRIWKH&RPSDQ\IRUWKHODVWWKUHHÀQDQFLDO\HDUV`

3UHVFULEHG&65([SHQGLWXUH WZRSHUFHQWRIWKHDPRXQWDVLQLWHPDERYH `

'HWDLOVRI&65VSHQWGXULQJWKHÀQDQFLDO\HDUDUHLQFOXGHGLQ1RWHVWR$FFRXQWVLQ6WDQGDORQH)LQDQFLDO6WDWHPHQWV 5HIHU QRWH 7KHWRWDODPRXQWVSHQWUHIHUUHGLQWKHDQQH[XUHEHORZLQFOXGHVGLUHFWVSHQGRI`DQGHPSOR\HH participation cost of `

0DQQHULQZKLFKWKHDPRXQWVSHQWGXULQJWKHÀQDQFLDO\HDULVGHWDLOHGEHORZ (1) (2) (4) (5) (6) (7) (8) Sr. CSR project or 6HFWRULQZKLFKWKH Projects or Amount outlay Amount spent Cumulative Amount spent: No. DFWLYLW\LGHQWLÀHG project is covered programs (1) Local (budget)project on the projects expenditure up Direct or through area or other RUSURJUDPZLVH or programs to the reporting implementing (2) Specify the Sub-heads: period agency state and district 1. Direct ZKHUHSURMHFWVRU expenditure SURJUDPVZHUH on projects or undertaken programs. 2.Overheads 1 Water Environmental Pune (Maharashtra) $JHQF\-QDQD Conservation sustainability Prabodhini Program 2 Afforestation at Environmental Bangalore 200,000 $JHQF\

Annual Report 2016-17 35 (1) (2) (4) (5) (6) (7) (8) Sr. CSR project or 6HFWRULQZKLFKWKH Projects or Amount outlay Amount spent Cumulative Amount spent: No. DFWLYLW\LGHQWLÀHG project is covered programs (1) Local (budget)project on the projects expenditure up Direct or through area or other RUSURJUDPZLVH or programs to the reporting implementing (2) Specify the Sub-heads: period agency state and district 1. Direct ZKHUHSURMHFWVRU expenditure SURJUDPVZHUH on projects or undertaken programs. 2.Overheads 3 Shivanahalli Environmental Bangalore 300,000 $JHQF\

Annual Report 2016-17 36 (1) (2) (4) (5) (6) (7) (8) Sr. CSR project or 6HFWRULQZKLFKWKH Projects or Amount outlay Amount spent Cumulative Amount spent: No. DFWLYLW\LGHQWLÀHG project is covered programs (1) Local (budget)project on the projects expenditure up Direct or through area or other RUSURJUDPZLVH or programs to the reporting implementing (2) Specify the Sub-heads: period agency state and district 1. Direct ZKHUHSURMHFWVRU expenditure SURJUDPVZHUH on projects or undertaken programs. 2.Overheads Vidya Poshak Promoting Hubli & Dharwad 500,000 500,000 500,000 $JHQF\9LG\D Susnadhi Project education (Karnataka) Poshak 19 Girls Education Promoting Rayagada (Orissa) 100,000 50,000 50,000 $JHQF\1<6$6'5, Program for education NYSASDRI 20 Surajya Promoting Pune (Maharashtra) 50,000 50,000 50,000 $JHQF\6XUDM\D Sarwangin Vikas education Sarwangin Vikas Prakalpa Prakalpa 21 Navkshitij Special education Pune (Maharashtra) 50,000 $JHQF\1DYNVKLWLM for differently abled 22 Rashtra Gaurav Promoting Bangalore 30,000 30,000 30,000 $JHQF\ Samrakshana education (Karnataka) Rashtra Gaurav Pratishthan Samrakshana Pratishthan 23 Donation to Training to promote Pune (Maharashtra) 3,300,000 3,300,000 3,300,000 $JHQF\06/7$ MSLTA Olympic Sports (Maharashtra State Lawn Tennis Association) TOTAL

:HKHUHE\DIÀUPWKDWWKH&65SROLF\DVDSSURYHGE\WKH%RDUGKDVEHHQLPSOHPHQWHGDQGWKH&65FRPPLWWHHPRQLWRUVWKH implementation of the CSR projects and activities in compliance with our CSR objectives and CSR policy.

For and on behalf of the Board of Directors

Pune S.B. (Ravi) Pandit Kishor Patil April 26, 2017 Chairman of CSR Committee CEO & Managing Director

Annual Report 2016-17 37 $QQH[XUH

)RUP1R0*7 ([WUDFWRI$QQXDO5HWXUQ DVRQWKHÀQDQFLDO\HDUHQGHG0DUFK >3XUVXDQWWR6HFWLRQ RIWKH&RPSDQLHV$FWDQG5XOH RIWKH&RPSDQLHV 0DQDJHPHQWDQG$GPLQLVWUDWLRQ 5XOHV@ , 5(*,675$7,21$1'27+(5'(7$,/6 i) &,1 /313/& ii) 5HJLVWUDWLRQ'DWH 'HFHPEHU iii) 1DPHRIWKH&RPSDQ\ KPIT Technologies Limited iv) &DWHJRU\6XE&DWHJRU\RIWKH&RPSDQ\ Public Company / Limited by shares v) $GGUHVVRIWKH5HJLVWHUHGRIÀFHDQGFRQWDFWGHWDLOV 35 & 36, Rajiv Gandhi Infotech Park, Phase – I, MIDC, +LQMDZDGL3XQH²0DKDUDVKWUD,QGLD 7HOHSKRQH )D[ vi) :KHWKHUOLVWHGFRPSDQ\ Yes vii) Name, Address and Contact details of Registrar Link Intime India Private Limited DQG7UDQVIHU$JHQWLIDQ\ Block No. 202, 2nd Floor, Akshay Complex, Off Dhole Patil 5RDG3XQH² 7HOHSKRQH )D[

,, 35,1&,3$/%86,1(66$&7,9,7,(62)7+(&203$1< Sr. Name and description of main products / services NIC Code of the % to total turnover of No. product / service the Company 1 Computer programming, consultancy and related activities 62011

,,, 3$57,&8/$562)+2/',1*68%6,',$5<$1'$662&,$7(&203$1,(6 Sr. Name and address of the company CIN / GLN Holding / % of the Applicable No. Subsidiary / shares held Section Associate 1Impact Automotive Solutions Limited U35923PN2010PLC137191 Subsidiary 100 LL 35 & 36, Rajiv Gandhi Infotech Park, Phase - I, 0,'&+LQMDZDGL3XQH²0DKDUDVKWUD India. 2 KPIT Technologies (UK) Limited N.A. Subsidiary 100 LL Ground Floor, The Annexe Hurst Grove, Sandford Lane, Hurst, Berkshire RG10 0SQ, UK. 3 KPIT Technologies France N.A. Subsidiary 100 LL $YHQXH)UDQNOLQ'5RRVHYHOW3DULV France. KPIT Technologies GmbH N.A. Subsidiary 100 LL Adams-Lehmann-Straße 109, Germany.

Annual Report 2016-17 38 Sr. Name and address of the company CIN / GLN Holding / % of the Applicable No. Subsidiary / shares held Section Associate 5 KPIT Technologies Netherlands B.V. N.A. Subsidiary 100 LL :HVWHUGRNVGLMN%;$PVWHUGDP The Netherlands. 6 KPIT Infosystems Incorporated N.A. Subsidiary 100 LL 7KRUQDOO6WUHHW(GLVRQ1-86$ 7 KPIT Technologies Corporation N.A. Subsidiary 100 LL 6WUHHW6XUUH\%&9:5&DQDGD Systime Computer Corporation N.A. Subsidiary 100 LL 7KRUQDOO6WUHHW(GLVRQ1-86$ 9 KPIT Technologies Soluções em Informática N.A. Subsidiary 100 LL Ltda. Av. Angélica, 1920 – 2º andar – Consolação &(3²6mR3DXOR63%UDVLO 10 MicroFuzzy KPIT Tecnologia LTDA, N.A. Subsidiary 100 LL (Formerly Systime Global Solutions Ltda) 5XD-DPHV:DWW²DQGDU²-DUGLP(GLWK &(3²6mR3DXOR63²%UDVLO 11 Sparta Consulting Inc. N.A. Subsidiary 100 LL 111, Woodmere Road, Suite 200, Folsom, California 95630, USA. 12 KPIT (Shanghai) Software Technology Co., N.A. Subsidiary 100 LL Limited. 7RZHU % &HQWUDO 7RZHUV Langao Road, Shanghai 200333, PRC. 13 .3,7,QIRV\VWHPV0()=( N.A. Subsidiary 100 LL 'XEDL$LUSRUW)UHH=RQH$UHD:HVW:LQJ 2IÀFH:32%R['XEDL8$( KPIT Solutions GmbH N.A. Subsidiary 100 LL Detmolder Straße 235, 33605, Bielefeld, Germany. 15 MicroFuzzy Industrie-Elektronic GmbH N.A. Subsidiary 75 LL 7DXQXVVWU0XQLFK*HUPDQ\

Annual Report 2016-17 39 ,9 6+$5(+2/',1*3$77(51 L &DWHJRU\ZLVHVKDUHKROGLQJ Sr. Category of No. of shares held at the beginning of the year No. of shares held at the end of the year % change No. Shareholders Demat Physical Total % of total Demat Physical Total % of total during shares shares the year A PROMOTERS (1) INDIAN a Individual / HUF - - (0.10) b Central Government ------c State Government(s) ------d Bodies Corporate - - 2.22 e Bank & FII ------f Any Other ------Sub-Total (A)(1) - 16.80 - 2.12 (2) FOREIGN aNRIs - Individuals - 0.02 - 0.02 - b Other - Individuals ------c Bodies Corporate ------d Banks & FII ------e Any Other ------Sub-Total (A)(2) - 0.02 - 0.02 - TOTAL - 16.82 - 2.11 SHAREHOLDING OF PROMOTERS (A) = (A)(1) + (A)(2) B PUBLIC SHAREHOLDING (1) Institutions a Mutual Funds 12,000 12,000 (0.33) b Banks / FI 2,000 0.21 2,000 0.10 (0.11) c Central Government ------d State Government(s) ------e Venture Capital ------Funds f Insurance ------Companies gFIIs 52,032,299 - 52,032,299 26.35 25,555,066 - 25,555,066 h Foreign Venture ------Capital Funds i Others (i) Foreign Portfolio - 22.39 - 16.32 Investor (Corporate) (ii) Foreign Mutual - 1.19 - 0.23 Fund Sub-Total (B)(1) 51.61

Annual Report 2016-17 40 Sr. Category of No. of shares held at the beginning of the year No. of shares held at the end of the year % change No. Shareholders Demat Physical Total % of total Demat Physical Total % of total during shares shares the year (2) Non-Institutions a Bodies Corporate i Indian 2.31 22,000 3,905,711 (0.33) ii Overseas - 6.51 7,776,000 - 7,776,000 (2.57) b Individuals i Individual 629,237 12.05 605,237 22,006,130 (0.91) Shareholders holding nominal share capital upto ` 1 lakh ii Individual 90,000 90,000 2.53 (0.75) Shareholders holding nominal share capital in excess of ` 1 lakh c Others i Clearing Members 397,221 - 397,221 0.20 - 0.22 ii Market Maker - 0.01 - 0.01 - iii Non Resident - - 1.31 (0.07) Indians iv Friends & Associates 0.27 0.27 - v Foreign Nationals - 0.22 - 0.10 (0.12) vi Hindu Undivided - 696,019 - 696,019 0.35 (0.03) Families vii Trusts 105,556 - 105,556 0.05 - - - - (0.05) Sub-Total (B)(2) 26.67 22.05 (4.62) Total Public 78.28 Shareholding (B) = (B)(1) + (B)(2) C SHARES HELD BY ------CUSTODIAN FOR ADRs AND GDRs D Non Promoter- - - 4.71 Non Public (KPIT Technologies Employees Welfare Trust) GRAND TOTAL 100 100 - (A+B+C+D)

Annual Report 2016-17 41 ii) Shareholding of Promoters Sr. Shareholder Name Shareholding at the beginning of the year Shareholding at the End of the year % change No. No. of % of total No. of % of shares No. of % of total No. of % of shares in shares shares shares pledged / shares shares shares pledged / shareholding of the pledged encumbered of the pledged encumbered during the Company to total Company to total year shares shares 1 Mr. S. B. (Ravi) Pandit 0.22 -- 0.22 - - - 2 Ms. Nirmala Pandit 235,000 0.12 --235,000 0.12 - - - 3 Mr. Chinmay Pandit 0.02 -- 0.02 - - - Ms. Prachi Pandit 0.00 -- 0.00 - - - 5 Mr. Kishor Patil 1.51 1,950,000 0.99 1.51 2,300,000 1.16 - 6 Ms. Anupama Patil 122,330 0.06 --122,330 0.06 - - - 7 Mr. Shrikrishna 1,100,000 0.56 --1,100,000 0.56 - - - Patwardhan Mr. Ajay Bhagwat -- - - - 9 Ms. Ashwini Bhagwat 0.02 -- 0.02 - - - jointly held with Mr. Ajay Bhagwat 10 Mr. Sachin Tikekar 0.51 -- - - (0.10) 11 Ms. Saroj Tikekar 37,000 0.02 --37,000 0.02 - - - jointly with Mr. Sachin Tikekar 12 3URÀFLHQW)LQVWRFN 12.27 3,350,303 1.70 2.22 LLP 13 K and P Management 300,910 0.15 --300,910 0.15 - - - Services Private Limited Ms. Hemlata Shende 0.02 -- 0.02 - - - Total 16.82 8.40 2.12 iii) Change in Promoters’ Shareholding Sr. For each of the Promoters Shareholding at the beginning Cumulative shareholding No. of the Year during the year No. of shares % of total shares No. of shares % of total shares of the Company of the Company 1 Mr. S. B. (Ravi) Pandit At the beginning of the year 0.22 0.22 Increase / Decrease during the year - - 0.22 At the end of the year 0.22 2 Ms. Nirmala Pandit At the beginning of the year 235,000 0.12 235,000 0.12 Increase / Decrease during the year - - 235,000 0.12 At the end of the year 235,000 0.12 3 Mr. Chinmay Pandit At the beginning of the year 0.02 0.02 Increase / Decrease during the year - - 0.02 At the end of the year 0.02

Annual Report 2016-17 42 Sr. For each of the Promoters Shareholding at the beginning Cumulative shareholding No. of the Year during the year No. of shares % of total shares No. of shares % of total shares of the Company of the Company Ms. Prachi Pandit At the beginning of the year 0.00 0.00 Increase / Decrease during the year - - 0.00 At the end of the year 0.00 5 Mr. Kishor Patil At the beginning of the year 1.51 1.51 Increase / Decrease during the year - - 1.51 At the end of the year 1.51 6 Ms. Anupama Patil At the beginning of the year 122,330 0.06 122,330 0.06 Increase / Decrease during the year - - 122,330 0.06 At the end of the year 122,330 0.06 7 Mr. Shrikrishna Patwardhan At the beginning of the year 1,100,000 0.56 1,100,000 0.56 Increase / Decrease during the year - - 1,100,000 0.56 At the end of the year 1,100,000 0.56 Mr. Ajay Bhagwat At the beginning of the year Increase / Decrease during the year - - At the end of the year 9 Ms. Ashwini Bhagwat jointly held with Mr. Ajay Bhagwat At the beginning of the year 0.02 0.02 Increase / Decrease during the year - - 0.02 At the end of the year 0.02 10 Mr. Sachin Tikekar At the beginning of the year 0.51 0.51 ,QFUHDVH'HFUHDVHGXULQJWKH\HDU Sale on June 7, 2016 (35,000)(0.02) Sale on June 9, 2016 (95,000)(0.05) Sale on June 10, 2016 (70,000) At the end of the year 11 Ms. Saroj Tikekar jointly with Mr. Sachin Tikekar At the beginning of the year 37,000 0.02 37,000 0.02 Increase / Decrease during the year - - 37,000 0.02 At the end of the year 37,000 0.02

Annual Report 2016-17 43 Sr. For each of the Promoters Shareholding at the beginning Cumulative shareholding No. of the Year during the year No. of shares % of total shares No. of shares % of total shares of the Company of the Company 12 3URÀFLHQW)LQVWRFN//3 At the beginning of the year 12.27 12.27 ,QFUHDVH'HFUHDVHGXULQJWKH\HDU Purchase on March 27, 2017 2.22 At the end of the year 13 K and P Management Services Private Limited At the beginning of the year 300,910 0.15 300,910 0.15 Increase / Decrease during the year - - 300,910 0.15 At the end of the year 300,910 0.15 Ms. Hemlata Shende At the beginning of the year 0.02 0.02 Increase / Decrease during the year - - 0.02 At the end of the year 0.02

LY 6KDUHKROGLQJ3DWWHUQRIWRSWHQVKDUHKROGHUV RWKHUWKDQ'LUHFWRUV3URPRWHUVDQG+ROGHUVRI*'5VDQG$'5V Sr. For each of the Top 10 shareholders Shareholding at the beginning Cumulative shareholding No. of the year during the year No. of shares % of total shares No. of shares % of total shares of the Company of the Company 1 Warhol Limited At the beginning of the year Increase / Decrease during the year - - At the end of the year 2 KPIT Technologies Employees Welfare Trust At the beginning of the year Increase / Decrease during the year (0.19) At the end of the year 3 Fidelity Puritan Trust-Fidelity Low- priced Stock Fund At the beginning of the year 9,000,000 9,000,000 Increase / Decrease during the year - - 9,000,000 At the end of the year 9,000,000 Van Dyck At the beginning of the year 7,776,000 7,776,000 Increase / Decrease during the year - - 7,776,000 At the end of the year 7,776,000 5 New Horizon Opportunities Master Fund At the beginning of the year 6,500,000 3.29 6,500,000 3.29 Increase / Decrease during the year - - 6,500,000 3.29 At the end of the year 6,500,000 3.29

Annual Report 2016-17 44 Sr. For each of the Top 10 shareholders Shareholding at the beginning Cumulative shareholding No. of the year during the year No. of shares % of total shares No. of shares % of total shares of the Company of the Company 6 Acacia Partners, LP At the beginning of the year 3.10 3.10 Increase / Decrease during the year (0.67) At the end of the year 7 Smallcap World Fund, INC At the beginning of the year 2.96 2.96 Increase / Decrease during the year At the end of the year CX Partners Fund 1 Limited# At the beginning of the year 2.57 2.57 Increase / Decrease during the year (2.57)-- At the end of the year - - 9 Acacia Institutional Partners, LP At the Beginning of the year Increase / Decrease during the year (0.13) 2.33 At the end of the year 2.33 10 Acacia Conservation Fund LP At the beginning of the year Increase / Decrease during the year - - At the end of the year 11 Acacia Banyan Partners* At the beginning of the year Increase / Decrease during the year - - At the end of the year

&HDVHGWREHLQWKHOLVWRI7RSVKDUHKROGHUVDVRQ0DUFK7KHVDPHLVUHÁHFWHGDERYHVLQFHWKHVKDUHKROGHUZDV one of the Top 10 shareholder as on April 1, 2016.

1RWLQWKHOLVWRI7RSVKDUHKROGHUVDVRQ$SULO7KHVDPHKDVEHHQUHÁHFWHGDERYHVLQFHWKHVKDUHKROGHUZDVRQHRI the Top 10 shareholder as on March 31, 2017. v) Shareholding of Directors and Key Managerial Personnel Sr. For each of the Directors and KMP Shareholding at the beginning Cumulative shareholding No. of the year during the year No. of shares % of total No. of shares % of total shares of the shares of the Company Company 1 Mr. S. B. (Ravi) Pandit At the beginning of the year 0.22 0.22 Increase / Decrease during the year - - 0.22 At the end of the year 0.22 2 Mr. Kishor Patil At the beginning of the year 1.51 1.51 Increase / Decrease during the year - - 1.51 At the end of the year 1.51

Annual Report 2016-17 45 Sr. For each of the Directors and KMP Shareholding at the beginning Cumulative shareholding No. of the year during the year No. of shares % of total No. of shares % of total shares of the shares of the Company Company 3 Mr. Sachin Tikekar At the beginning of the year 1,003,800 0.51 1,003,800 0.51 Increase / Decrease during the year: Sale on June 7, 2016 (35,000)(0.02) 968,800 0.49 Sale on June 9, 2016 (95,000)(0.05)873,800 0.44 Sale on June 10, 2016 (70,000)(0.04)803,800 0.41 At the end of the year 803,800 0.41 4 Ms. Lila Poonawalla At the beginning of the year 114,000 0.06 114,000 0.06 Increase / Decrease during the year: Allotment on November 10, 2016 16,000 0.01 130,000 0.07 At the end of the year 130,000 0.07 5 Dr. R. A. Mashelkar At the beginning of the year 56,000 0.03 56,000 0.03 Increase / Decrease during the year - - 56,000 0.03 At the end of the year 56,000 0.03 6 Mr. Sanjay Kukreja At the beginning of the year 32,400 0.02 32,400 0.02 Increase / Decrease during the year - - 32,400 0.02 At the end of the year 32,400 0.02 7 Mr. Anil Patwardhan (Key Managerial 3HUVRQQHO²&KLHI)LQDQFLDO2IÀFHU At the beginning of the year 103,920 0.05 103,920 0.05 Increase / Decrease during the year - - 103,920 0.05 At the end of the year 103,920 0.05 8 Ms. Sneha Padve (Key Managerial Personnel - Company Secretary) At the beginning of the year ---- Increase / Decrease during the year: Purchase on August 4, 2016 10 0.00 10 0.00 Purchase on August 10, 2016 50 0.00 60 0.00 At the end of the year 60 0.00

Annual Report 2016-17 46 9 ,1'(%7('1(66 ,QGHEWHGQHVVRIWKH&RPSDQ\LQFOXGLQJLQWHUHVWRXWVWDQGLQJDFFUXHGEXWQRWGXHIRUSD\PHQWLVDVIROORZV (Amount in ` million) Secured Loans Unsecured Deposits Total excluding Loans Indebtedness Deposits Indebtedness at the EHJLQQLQJRIWKHÀQDQFLDO\HDU i) Principal Amount -- ii) Interest due but not paid -- iii) Interest accrued but not due - - - - Total (i+ ii +iii) -- &KDQJHLQ,QGHEWHGQHVVGXULQJWKHÀQDQFLDO\HDU $GGLWLRQ 12.23 - 1,295.29 5HGXFWLRQ ---- Net Change 12.23 - ,QGHEWHGQHVVDWWKHHQGRIWKHÀQDQFLDO\HDU i) Principal Amount 11.97 - ii) Interest due but not paid 1.29 0.27 - 1.56 iii) Interest accrued but not due 7.01 --7.01 Total (i + ii + iii) 12.24 - &KDQJHLQLQGHEWHGQHVVGXULQJWKHÀQDQFLDO\HDULVFRQVLGHUHGRQQHWEDVLV

9, 5(081(5$7,212)',5(&7256$1'.(<0$1$*(5,$/3(56211(/ $ 5HPXQHUDWLRQWR0DQDJLQJ'LUHFWRU:KROHWLPH'LUHFWRUVDQGRU0DQDJHU (Amount in ` million) Sr. Particulars of Remuneration* Name of MD / WTD / Manager Total No. Mr. S. B. Mr. Kishor Mr. Sachin (Ravi) Pandit Patil Tikekar** 1. Gross Salary (a) Salary as per provisions contained in Section 27.35 17(1) of the Income Tax Act, 1961 (b) Value of perquisites under Section 17(2) of the - 0.70 - 0.70 Income Tax Act, 1961 F 3URÀWVLQOLHXRIVDODU\XQGHU6HFWLRQ RI ---- the Income Tax Act, 1961 2. Stock Option - - - - 3. Sweat Equity - - - - Commission DVRISURÀW ---- - others - - - - 5. Others - - - - Total (A) 28.05 25.45 86.68 Ceiling as per the Act EHLQJRIQHWSURÀWRIWKH&RPSDQ\FDOFXODWHGDV SHU6HFWLRQRIWKH&RPSDQLHV$FW

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Annual Report 2016-17 47 B. Remuneration to other Directors: (Amount in ` million) Sr. Particulars of Remuneration Name of Directors Total No. Ms. Lila Dr. R. A. Mr. Adi Prof. Mr. Anant 3RRQDZDOOD Mashelkar Engineer Alberto Talaulicar Sangiovanni Vincentelli 1Independent Directors )HHIRUDWWHQGLQJERDUG 0.33 0.10 0.30 0.11 - 0.84 committee meetings &RPPLVVLRQ 2.23 2.16 2.65 - 2WKHUV ------Total (1) 2.56 2.46 2.76 - Sr. Particulars of Remuneration Mr. B V R Subbu Mr. Sanjay Kukreja Total No. 2 Other Non-Executive Directors )HH IRU DWWHQGLQJ ERDUG 0.12 - 0.12 committee meetings &RPPLVVLRQ 1.61 - 1.61 2WKHUV - - - Total (2) - Total (B) = (1+2) 11.46 Total Managerial Remuneration Overall Ceiling as per the Act EHLQJRIQHWSURÀWRIWKH&RPSDQ\FDOFXODWHGDVSHU6HFWLRQRIWKH Companies Act, 2013).

C. Remuneration to Key Managerial Personnel other than MD / Manager / WTD: (Amount in ` million) Sr. Particulars of Remuneration Key Managerial Personnel Total No. Chief Executive Company Chief Financial Director Secretary 2IÀFHU 1 Gross Salary (a) Salary as per provisions contained in Section 27.35 17(1) of the Income Tax Act, 1961 (b) Value of perquisites under Section 17(2) of the 0.70 --0.70 Income Tax Act, 1961 (c) 3URÀWVLQOLHXRIVDODU\XQGHU6HFWLRQ RI ---- the Income Tax Act, 1961 2 Stock Option - - - - 3 Sweat Equity - - - - Commission DVRISURÀW ---- - others - - - - 5 Others - - - - Total 28.05

Annual Report 2016-17 48 9,, 3(1$/7,(6381,6+0(17&203281',1*2)2))(1&(6 Type Section Brief Details of Authority Appeal of the Description Penalty / [RD / NCLT / PDGH Companies Punishment / COURT] if any Act Compounding fees imposed A. COMPANY Penalty Punishment NIL Compounding B. DIRECTORS Penalty Punishment NIL Compounding C. OTHER OFFICERS IN DEFAULT Penalty Punishment NIL Compounding

For and on behalf of the Board of Directors

Pune S. B. (Ravi) Pandit April 26, 2017 Chairman & Group CEO

Annual Report 2016-17 49 Management Discussion & Analysis

GLOBAL OUTLOOK blockchain technology will be further developed and adopted The year gone by, 2016, was another mixed year for global by innovative manufacturing companies. This can prove to be a markets. There were several events which impacted economies secure approach to creating more agile supply chains that can all over the world for good and at the same time for bad. DXWRPDWLFDOO\ QHJRWLDWH DQG FORVH QHZ ÀQDQFLDO DQG VXSSO\ The year started on a sketchy note with risk assets selling off, side partnership deals, ensure IP protection, provide trusted RLO IDOOLQJ WR SHU EDUUHO DQG JURZLQJ LQYHVWRU FRQFHUQV SURRI RI SURGXFW SURYHQDQFH DQG FHUWLÀFDWLRQ DQG UDWLI\ regarding China devaluing its currency. This was followed by material traceability and transparency. UK voting to leave EU (Brexit) and Mr. Donald Trump winning ,R7As per popular estimates, the total IoT market size in 2015 the US presidential elections. However, the major impact of was around $900 million, growing up to $3.7 billion by 2020 these economic and geopolitical changes would largely be felt with CAGR of 32.6%. The IoT market is expected to grow from during calendar 2017 and thus 2017 is not expected to be a big DQLQVWDOOHGEDVHRIELOOLRQGHYLFHVLQWRELOOLRQ improvement on 2016. devices in 2020. IoT has been well adapted across industries On the technology front, the key disruptive trends for 2016 like manufacturing, distribution including asset management, LQFOXGHG DXJPHQWHG DQG YLUWXDO UHDOLW\ DUWLÀFLDO LQWHOOLJHQFH logistics, supply chain management and marketing. data visualization, blockchain and crypto-tech and IoT. These ,1'8675<*52:7+(67,0$7(6 trends are expected to mature further and become more prominent, going into the next year. :RUOGZLGH,7VSHQGLQJLVSURMHFWHGWRWRWDOWULOOLRQLQ DLQFUHDVHIURP $XJPHQWHGDQGYLUWXDOUHDOLW\ Previously it was considered as a set of consumer gaming technologies, however the 7KH HQWHUSULVH VRIWZDUH VSHQGLQJ LV HVWLPDWHG WR UHDFK perception changed in 2016 with many companies searching $351 billion in 2017 as compared to $332 billion in 2016, for ways to make data accessible and easier to understand. a growth of 5.5%. 7KHEHQHÀWVRIWKHVHWHFKQRORJLHVDUHQRWUHVWULFWHGWRVRPH 7KH,7VHUYLFHVVSHQGLQJLVHVWLPDWHGWRUHDFKELOOLRQ VSHFLÀF LQGXVWULHV EXW FRXOG EH XVHG DFURVV RUJDQL]DWLRQV LQDJDLQVWELOOLRQLQDJURZWKRI and roles such as viewing digital dashboards for knowledge The growth in IT services will be driven by investments workers or providing a digital overlay that displays equipment LQ GLJLWDOL]DWLRQ DXWRPDWLRQ DUWLÀFLDO LQWHOOLJHQFH DQG health to a factory manager. Automotive manufacturers are optimization of services. However, there is an air of caution also using AR / VR to improve product designs. due to uncertain macro-economic circumstances. $UWLÀFLDO,QWHOOLJHQFH $, 2016 saw this technology evolving 7KHJOREDOWHFKQRORJ\LQGXVWU\VDZDJURZWKRILQ in a big manner and in 2017 it is expected to just get bigger. with global IT-BPM market (excl hardware) at $1.2 trillion in 7KHUHLVDVLJQLÀFDQWLQFUHDVHLQLWVLQYHVWPHQWDQGDGRSWLRQ 2016. The sub-segment with fastest growth was packaged E\ HQWHUSULVHV $V SHU D VXUYH\ DOPRVW RI HQWHUSULVHV software which grew by 6.2%. were using AI in 2016. This is expected to grow up to 62% by FY17 Outlook for Indian IT-BPM Industry $QRWKHUUHVHDUFKKDVSUHGLFWHGWKHLQYHVWPHQWVLQ$,WR grow by more than 300% in 2017 as compared to 2016. It is 7KH LQGXVWU\ LV H[SHFWHG WR JURZ DURXQG LQ IURP H[SHFWHG WKDW WKH PDUNHW IRU $, ZLOO JURZ IURP ELOOLRQ LQ ELOOLRQLQ)<WRELOOLRQ WRELOOLRQLQ$ORWRIWHFKQRORJLFDOUHVHDUFKLV 7KH,QGLDQ,7%30H[SRUWVLVH[SHFWHGWRJURZE\WR going on to make our machines better and over the next few reach $117 billion in FY2017. years we could be approaching human level intelligence with 7KH,7%30GRPHVWLFPDUNHWLVOLNHO\WRJURZE\WR these systems. ELOOLRQ H[FOH&RPPHUFH 'DWD YLVXDOL]DWLRQ Regarding Big Data, one of the most (Data Source: Gartner, NASSCOM, Industry Reports) important aspect is the ability to properly interpret and analyze the gathered data and draw meaningful conclusions. Many ,1'8675<75(1'6 companies have sprung up to aggregate, project, visualize and Digital technology has taken over our focus industries, be interpret data on behalf of non-professional data analysts to it manufacturing, automotive or energy & utilities. The make Big Data little more practical for businesses. manufacturing industry has continued to push through Blockchain - Blockchain is a specialized way of sending, WKH IRXUWK LQGXVWULDO UHYROXWLRQ NQRZQ DV ,QGXVWU\ 1HZ receiving and processing information, which made it the technologies like Cybersecurity, advanced materials, 3D ideal way to track the “crypto currency” of BitCoin. In 2017, printing, predictive analytics and collaborative robots were

Annual Report 2016-17 50 some of the most commonly discussed topics within the regulatory front, the key focus areas during the year would be industry during 2016. During CY2017, these technologies are cybersecurity, drug and device safety, IP protection, managing expected to become more advanced. the menace of counterfeit drugs and corruption. Consumer As manufacturers adopted connectivity and became more engagement has greatly increased in this sector with increase dependent on digital infrastructure for their day-to-day in data and information access, mobile applications and operations, they also exposed themselves to new business risk personal health devices. Pharma companies are collaborating in the form of cyber threats. There is a need to make these with consumers, using data analytics to provide better tools systems more secure as any such attack will bring the business and detailed information about the drugs they are using. Data to a standstill. Therefore, cyber security would be a crucial analytics is helping companies at various functional levels like area of investment by manufacturers during 2017. 3D printing R&D, commercial, risk and compliance and supply chain. Cloud already soared high during last year and calendar 2017 could computing has helped life sciences companies to modernize see its adoption on a large scale. New additive manufacturing their business processes and this year the adoption will be systems and materials have made their way into manufacturers’ higher leading to transformation within the industry. facilities across the world. As the selection of materials In the automotive industry, some of the major trends that will continues to expand and the accuracy of these machines be particularly visible during 2017 include in-car connectivity, improve, industrial manufacturers are starting to realize the shared transportation, open source 3D printing for better huge potential of this technology. It helps in the manufacturing costs and driverless cars. For the new set of consumers in this operations by ensuring less materials and weight coupled industry, digital capabilities are becoming a key differentiator. A with overall cost savings. Predictive analytics is another area premium range of apps and digital functions are now expected wherein manufacturers are still in the early stages of adoption. as standard, with the latest models still selling primarily on This area could see a big uptick during calendar 2017. Through power and weight. Many new regulations and mandates by the entire network of connected machines, manufacturers JRYHUQPHQWVDFURVVWKHJOREHE\DUHRQWKHWRSRIWKH can utilize predictive analytics to monitor and analyze their mind of auto manufacturers. In the US, it will be mandatory to manufacturing processes. The software will analyze the data have a rear-view camera. For most manufacturers, rear cameras uploaded by the machine and immediately notify management DUHDOUHDG\DSULRULW\%\RIDOOPDQXIDFWXUHGFDUV or the maintenance staff of any potential disturbances, thereby will have one. Back-up cameras are included on around half of reducing the probability of stoppage of work. It could be used all new cars sold in the US today. Wi-Fi hotspots in vehicles are to ensure timely maintenance of machines and equipments, becoming a standard, with 20% of car manufacturers planning with less troubleshooting, no stoppages and overall more to provide WLAN hotspots in vehicles in 2017. Our smart devices HIÀFLHQF\ %\ DGRSWLQJ SUHGLFWLYH DQDO\WLFV PDQXIDFWXUHUV are getting connected to the in-car infotainment systems thus can do away with preventative maintenance schedules which facilitating many innovative features for the users like playing greatly increase the amount of uptime. In advanced robotics multimedia content simultaneously, with more than 5 devices. technology, the trend that caught maximum interest from Augmented reality solutions are expected to play an important manufacturers is Collaborative robots, which offer the unique role during this year, starting with smart head-up displays and EHQHÀW RI DQ DXWRPDWHG V\VWHP ZLWK WKH DELOLW\ WR ZRUN infotainment displays followed by apps for repair shops. With alongside human employees. New safety standards have been growing connectivity and more data available, the predictive put in place for them. This will lead to Co-bots of all kinds to be analytics tools will also play a pivotal role in dealing with a widely-used technology, for manufacturers. cost pressures, competition, globalization, market shifts and In life sciences industry, the global healthcare spend is expected volatility. They could provide real time insights about customer WR LQFUHDVH VLJQLÀFDQWO\ WR UHDFK WULOOLRQ E\ 7KLV preferences to Original Equipment Manufacturers (OEMs) thus growth is expected to be driven by increasing demand from helping them manage their production schedules, marketing, an ageing population and the prevalence of chronic diseases. inventory and supply chain in a more organized manner. They As we enter CY2017, the industry is looking at cost pressures, could also help consumers through cheaper insurance for safe regulatory challenges, changed political environments and drivers to fewer break downs also helping eventually for the emerging consumer behavior. The R&D budgets are shrinking vehicle to last longer. for companies and there is also the pressure to maintain or :LWK JURZLQJ YHKLFXODU WUDIÀF DQG SROOXWLRQ RQ WKH ULVH WKH reduce their cost. To optimize cost, companies are increasing concept of e-hailing and networking for car pools is garnering a RSHUDWLRQDOHIÀFLHQF\WKURXJKGLJLWDOVXSSO\QHWZRUNV2QWKH lot of interest. It is expected that going forward a part of private

Annual Report 2016-17 51 vehicle sales will decline but the case for shared vehicles will particularly in offshore environment due to less resources. go up. Thus, auto companies have also started to collaborate Drone technology can help in this scenario as an inspection outside their traditional market space and looking for ways to VROXWLRQWRLQVSHFWUHPRWHDQGGLIÀFXOWWRUHDFKRQODQGDVVHWV PDNHQHZSURÀWVIURPVXFKGLVUXSWLQJWUHQGV'SULQWLQJLQ or offshore rigs. This data can be then integrated with backbone automotive industry is expected to become big this year in asset management and workforce management software to areas such as basic car construction as its cost effectiveness schedule relevant maintenance actions. Overall, organizations will challenge today’s fundamental car designing. Through 3D with leaner IT systems and emerging technologies are well printing the industry could build cars with solid chassis with placed to adapt new business strategies to grow their share in an outer body designed for a single crash which could be the market. There is a big increase in the use of analytics within replaced later cost effectively while leaving the basic vehicle RSHUDWLRQEXVLQHVVXQLWVHQDEOHGE\DÁH[LEOHGLJLWDOVWUDWHJ\ structure in place. This could disrupt the concept of accident through resorting to the cloud. repair. The concept of autonomous vehicles is going steady in Globally, in the utility industry, the demand for energy, water the automotive ecosystem with various tests being conducted and transportation resources is outpacing the available supply. for technology features like self-parking and adaptive cruise. Consumers are facing increasing prices and fewer choices of These technologies could be soon made available across a energy sources from their utilities. To meet these demands, wide range of new vehicles by almost every OEM. Another the industry is moving from centralized to decentralized example which will be a step forward in this direction is high HQHUJ\ SURGXFWLRQ FRQYHQWLRQDO WR UHQHZDEOH HQHUJ\ À[HG SURÀOHWULDORIWHFKQRORJLHVOLNHSODWRRQLQJLQZKLFKFRQYR\RI WRÁH[LEOHUHVRXUFHVHOHFWULÀFDWLRQRIWUDQVSRUWDWLRQV\VWHPV driverless vehicles follow each other to reduce congestion on and from passive to active customers. Customer engagement KHDY\WUDIÀFURDGV is a very critical trend which involves providing relevant and The global spending in oil & gas is expected to increase in 2017 timely information to customers for better management of IRUWKHÀUVWWLPHLQ\HDUV$VSHUHVWLPDWHVJOREDOLQYHVWPHQW their energy consumption. There is also the rise of energy in the exploration and production of oil and gas will rise by prosumer i.e. set of customers who take control of their own QH[W\HDUWR86ELOOLRQLVSUHVHQWLQJQHZVHWRI energy management including generation via Distributed opportunities for the energy industry as organizations need to Energy Resources (DER). Companies are now adhering to balance budget cuts and reduced headcounts and extract more various channels, using mobile, digital or social media to value from the existing opportunities. The industry considers offer customized services to consumers by bridging the digitization as the way forward. The use of fossil fuels will communication gap and improving the overall customer continue to grow alongside renewables. Digital tools will help experience. Increasing customer expectations along with the industry get more out of wind and solar, and software will digitally aware workforce is also pushing utilities to make KHOSQHZDQGH[LVWLQJIRVVLOIXHOSODQWVEHFRPHPRUHHIÀFLHQW investments in technologies delivered to their crews in the As per estimates, global IT spending in the Oil & Gas industry ÀHOGDQGRSHUDWRUVLQWKHSODQWV8WLOLWLHVDUHPRYLQJWRKLJK ZLOOEHZRUWKELOOLRQE\$NH\JURZWKGULYHUZLOO speed communication infrastructure to meet real-time data EHWKHHQKDQFHGHIÀFLHQF\RIDOOUHVRXUFHV1HZWHFKQRORJLHV requirements. They are exploring ways to improve situational such as Internet of Things (IoT) have become more affordable. awareness through head up displays and wearables. This 7KLVHQDEOHVQRWRQO\WKHELJFRPSDQLHVEXWDOVRVPDOOHUÀUPV provides means for workforce to interconnect within the utility, to transform their Enterprise Asset Management systems and just like social media platforms. Various utility systems like increase uptime. With their early adoption of sensor technology, AMI, CIS, OMS are capturing vast amount of customer and the industry has been collecting large volumes of data. This will operational data, which is being built into focused analytics use KHOSWKHPWREXLOGVPDUWHUÀQDQFLDOPRGHOVOLNHFRQVXPSWLRQ FDVHVIRUXOWLPDWHFRQVXPHUEHQHÀW&ORXGEDVHGDSSOLFDWLRQV and performance based pricing, rather than rigid fees. With will gain more acceptance as reliability, availability and unpredictability prevailing in this sector, the companies have performance is demonstrated by early adopters. Cybersecurity reduced their spending on large scale maintenance and concerns will require utilities and providers to demonstrate DVVHW PRGLÀFDWLRQ EXW KDYH QRW VWRSSHG RSHUDWLQJ DQG DUH adequacy of their systems and procedures. therefore looking at effective use of reduced headcounts and (Data Source: Industry Reports) contingent labour. Agile technologies with application based approach including modules for operational planning, crew 285675$7(*< rotation and workforce scheduling is therefore the need of the Our key expertise lies in the art of convergence - converging hour. There is an increasing maintenance gap being created Engineering, Operations and Information Technology. This

Annual Report 2016-17 52 KHOSV RUJDQL]DWLRQV OHYHUDJH WKH ÁRZ RI LQIRUPDWLRQ EHWWHU Analytics, Manufacturing Execution Systems, Connectivity Over the past few years, we have been making long term and IoT based solutions. We have developed our offerings investments for sustainable growth. These investments include competency around Industrial IoT. We are proposing solutions strengthening of our front-end team by adding account to our customers leveraging Digital Transformation. We have managers, subject matter experts and new sales for our focus offerings around supply chain solutions with ERP systems, verticals and specialized offerings across geographies. We have VKRS ÁRRUWR WRS ÁRRULQWHJUDWLRQ DQGFXVWRPHU H[SHULHQFH also been investing in creation of technologies for software management solutions. In Hi-Tech we are largely focusing on automation, smart AMS, digital transformation, products and offering IT transformation, cloud, mobility, Big Data & Analytics SODWIRUPV DQG LQGXVWU\ VSHFLÀF VROXWLRQV LQ HQJLQHHULQJ DQG and product engineering solutions. In life sciences, there is business IT. rising customer expectations on value added services and The automotive industry continues to move forward in the margin pressure created by commodization of medical devices. direction of a convergence between automotive and digital We are thus working with customers to help them bring down world. These are being driven by mega trends like innovative their operating costs by leveraging digital with operational powertrain technologies, stricter regulations, changing technologies. With rising M&A deals, there is growing demand consumer needs and increasing demand for connectivity and for consolidation of ERPs. This has helped us in winning deals digitalization. We are enhancing our practice capabilities to in SAP consolidation and migration projects. There is higher leverage the growth opportunities in areas such as Connected adoption of cloud based solutions in regulatory compliance Vehicle, Autonomous Vehicles, Powertrain (traditional sensitive areas like serialization, track & trace, Unique Device and alternate fuel technologies), Software Architecture ID (UDI), Global Trade Management (GTM) and PLM. Standardization and Diagnostics. We are focusing on revenue The changing customer expectation is driving the IT spend growth in existing accounts through sharpened practice IRU XWLOLW\ LQGXVWU\ :H DUH RIIHULQJ EHVW ÀW VROXWLRQV IRU WKH focus, cross selling opportunities, tapping new geographies industry, leveraging our engineering, digital and Business IT and offering IT + Engineering + Digital integrated solutions. capabilities. With large number of connected devices, there is We are also leveraging our platform / products and services a vast amount of data being generated and it is leading to engagement model across OEMs, Tier Is, Tier IIs and technology more emphasis on predictive technologies. We are leveraging providers. Apart from engineering, we are also witnessing our HANA capabilities in this space. Through SuccessFactors good traction for Extended Product Lifecycle Management and other work management solutions, we are enabling (ePLM) and new technology offerings in our existing utilities to manage better their skilled labour, contractors and automotive customers. With growing customer interactions, workforce forecasting. With growth in IT / OT convergence and we are creating a strong pipeline for Engineering and Digital LQFUHDVLQJVLJQLÀFDQFHRIPRELOHGHYLFHVXWLOLW\FRPSDQLHVDUH transformation solutions with KPIT being positioned well for moving from software platform alignment to best of breed and transformational engagements. disparate solutions. In the mobility area, we have capabilities to In manufacturing vertical, we work with industrials, Hi-Tech deliver custom and off the shelf mobile solutions catering to all and Life Sciences sub vertical customers. As most of our business needs. We are offering digital transformation using customers are largely in discreet manufacturing and they sell Big Data and analytics with focus on HADOOP and predictive products which have intelligence, our ability of engineering methods. Our wind energy operational intelligence and action plus business IT plus digital, presents a special advantage to platform and omnichannel engagements and customer these customers. Globally the industry is under cost pressure segmented marketing offerings are greatly appreciated leading to our customers looking for faster, leaner and less E\ RXU XWLOLWLHV FXVWRPHUV 2XU K\EULV TXDOLÀFDWLRQV DOORZ expensive solutions in their operations. We have developed development of omnichannel engagement for consumer and various solutions which are cost effective in nature by usage prosumer. We are also exploring opportunities to bring our RI SUHFRQÀJXUHG DQG SHUFHUWLÀHG VROXWLRQV 7KLV KHOSV product engineering capabilities to the utilities domain. reduced SG&A costs and measuring operations effectiveness. With gloomy market conditions, the energy industry continues Our solutions for the manufacturing vertical cover the entire to be under cost pressure. Thus, they are looking for innovative range of requirements from product design, manufacturing emerging technologies which will help them manage their processes, supply chain management, after market and cost and contribute towards lower emissions. We are working customer experience. We are developing the roadmap for with companies to reduce their overall operating costs by integrated offerings, leveraging our capabilities in Predictive optimizing overall delivery model, vendor consolidation and

Annual Report 2016-17 53 improve productivity by leveraging offshore and outsourcing. our Solutions and Services business while Products & Platform There is higher traction around initiatives in areas of digital business grew by 10.2% on a Y-o-Y basis. transformation, IoT and data analytics capabilities. In digital Total Revenues )< )< Growth transformation, we have developed IoT solutions which make WKHLUEXVLQHVVRSHUDWLRQVPRUHSURGXFWLYHDQGFRVWHIÀFLHQW Sales in $ million We are already working with energy customers in JDE, Oracle, Sales in ` million 33,233.61 3.00% SAP and DT domains. We are focusing on vertical led solutions in In terms of geographies APAC was the leading growth the areas of asset management, rig management, productivity geography with Y-o-Y growth of 16% followed by US which improvement, cost reduction and process automation, grew by 2% while Europe geography saw an Y-o-Y decline of leveraging engineering, IT and digital technologies. ,Q$3$&ZHVDZJRRGWUDFWLRQIRURXUHQJLQHHULQJDQG +RUL]RQWDOO\ RXU VHUYLFHV DUH GLYLGHG LQWR ÀYH 6WUDWHJLF digital business which was the major growth driver for the Business Units (SBU) - Integrated Enterprise Solutions SBU market. US continues to be our largest market and we are which includes Oracle, JD Edwards and IMS offerings, PES SBU optimistic to keep growing in this geography. However Europe which offers engineering services and PLM offerings, P&P SBU got impacted by uncertainties following Brexit and cross which includes our products and platforms mainly catering FXUUHQF\ÁXFWXDWLRQVZKLFKUHVXOWHGLQDGHFOLQHLQUHYHQXHV to the automotive vertical, SAP SBU and DT SBU which offers 5HYHQXHVE\ )< )< Growth digital solutions and services. A detailed note on SBU update *HRJUDSK\ `PLOOLRQ has been covered in joint letter from the CEO & MD and US Whole-time Director. Europe 5,559.56 Though we saw modest growth during the year, the year ended on a positive note with a strong base and better business ROW 5,110.20 YLVLELOLW\IRU)<:HH[SHFWWKHJURZWKGULYHUVWRUHPDLQVDPH Amongst SBUs, there was growth across all SBUs except IES. for next year i.e. engineering, digital technologies and products Products & Platform SBU registered highest Y-o-Y growth of & platforms. A lot of work is required on the operations part 3(66%8JUHZE\6$36%8JUHZE\DQG'7 of our business, mainly in the areas of utilization improvement, 6%8JUHZE\7KHUHZDVDGHFOLQHRILQ,(66%8RQ employee pyramid and delivery excellence, to improve the a Y-o-Y basis. Engineering, Products & Platform and digital SURÀWDELOLW\ :H ZLOO FRQWLQXH WR LQYHVW LQ JURZWKRULHQWHG businesses have been the key growth drivers for us during this industry and operations technology solutions for our focus year. Due to macro-economic conditions we have experienced verticals. budget cuts and lower IT spend for traditional ERP, this is also fueled by growing acceptance of digital technologies. All these ),1$1&,$/3(5)250$1&( factors have created some pressure on the revenues for IES 5(9(18(6 SBU. 2XUUHYHQXHIRUWKH\HDUVWRRGDWPLOOLRQD<R< 5HYHQXHVE\%XVLQHVV )< )< Growth JURZWK RI DJDLQVW PLOOLRQ LQ )< 'XULQJ WKLV 6HJPHQW `PLOOLRQ year we divested a small business KPIT medini Technologies Integrated Enterprise AG which was focusing on functional safety products and Solutions the revenues from this business were only consolidated for 7 months of this FY. We also invested into a strategic Automotive 11,015.32 partnership in a German engineering services company, SAP 7,697.75 MicroFuzzy, focused on powertrain mainly electric powertrain. Others 3,100.70 7KH ÀQDQFLDOV RI 0LFUR)X]]\ ZHUH FRQVROLGDWHG GXULQJ ODVW The above mentioned tables of revenues by geography and quarter of the year which included revenue contribution to business segment has been prepared as per segment revenues ` terms revenue for the year was WKHWXQHRIPLOOLRQ,Q RIFRQVROLGDWHGÀQDQFLDOV `33,233.61 million as compared to `PLOOLRQD<R< growth of 3%. Our business could be divided into two broad 352),7$%,/,7< segments - Solutions & Services business (constitute 96% of Our PAT for the year stood at ` PLOOLRQ DJDLQVW total revenues) and Products & Platform business (constitute `PLOOLRQLQODVW\HDUD<R

Annual Report 2016-17 54 LQ)<DGLSRIESV:HJDYHZDJHKLNHVGXULQJWKH\HDU 6+$5(+2/',1*3$77(51 effective April 1, 2016. The average realized rate for the year Our shareholders include promoters, renowned domestic and ` ` was 67.22/$ against LQ)<7KHUHZHUHPDQ\IDFWRUV ÀQDQFLDO LQVWLWXWLRQDO LQYHVWRUV DQG LQGLYLGXDOV $V RQ 0DUFK which impacted EBITDA margin. During the year, our revenue RXUVKDUHKROGLQJVWUXFWXUHZDVDVIROORZV growth rate was slow, there was lower fresher absorption into SURMHFWVUHVXOWLQJLQÁDWXWLOL]DWLRQZLWKLQFUHDVHGZDJHFRVW Shareholding Paern as on March 31, 2017 as compared to last year. There was also some lateral hiring Employee during second half of the year in anticipation of new deal Welfare Trust 5% FORVXUHVZKLFKJRWSXVKHGWRQH[WÀVFDO$OVRZLWK0LFUR)X]]\ consolidation in the last quarter there were additional Warhol & Promoters LQWHJUDWLRQ UHODWHG H[SHQVHV ZKLFK LPSDFWHG SURÀWDELOLW\ Vandyck 19% 14% 7KH RWKHU LQFRPH ÀJXUH IRU WKH \HDU ZDV `206.6 million as compared to ` PLOOLRQ LQ )< 7KH H[FKDQJH JDLQ amount included in other income was `51.93 million in this ` year against PLOOLRQLQODVW\HDU7KHWD[H[SHQVHIRUWKLV Public year was `605.73 million against `PLOOLRQLQ)<7KH 18%

SURÀWRQVDOHRI.3,7PHGLQL7HFKQRORJLHVEXVLQHVVWRWKHWXQH Instuonal of `260.91 million was recorded as an exceptional item during 44% the year.

3URÀWV `PLOOLRQ )< )< Growth ,QVWLWXWLRQDO KROGLQJ RI PRUH WKDQ DV RQ 0DUFK EBITDA PAT (15.09%) )RUHLJQ,QVWLWXWLRQDO,QYHVWRUV 6+$5(+2/'(56·)81'6 Warhol Limited Ruane Cunniff & Goldfarb Inc. (Acacia Partners) Shareholder's Funds (` million) Fidelity Group 18,000 15,825 16,000 New Horizon Funds 13,854 14,000 12,736 12,954 Vanguard Funds 12,000 10,361 Small Cap World Fund Inc. 10,000 LSV Emerging Markets 8,000 6,000 American Funds Insurance Series Global Small Capitalization 4,000 Fund 2,000 Government Pension Fund Global - Grandeur Peak Fund FY 13 FY 14 FY 15 FY 16 FY 17 Blackrock Institutional Trust Company Dimensional Fund Advisors

Annual Report 2016-17 55 /,48,',7< 5LVNDQG&RQFHUQV The cash balance as at March 31, 2017 stood at `PLOOLRQ A separate report on Enterprise Risk Management is provided while total debt was ` PLOOLRQ FRPSULVLQJ RI `1,610.3 elsewhere in this Annual Report. ` million of term loan and 2,203.9 million of working capital Cautionary Statement loan. Thus the net cash balance as at March 31, 2017 stood Certain statements under ‘Management Discussion & Analysis’ at `PLOOLRQ2XUFDSH[IRUWKH\HDUZDV`PLOOLRQDV describing the Company’s objectives, projections, expectations ZHPDGHVLJQLÀFDQWFDSH[LQYHVWPHQWIRURXUQHZIDFLOLW\2XU may be forward looking statement within the applicable '62VWRRGDWGD\V:LWKFDSH[JRLQJGRZQIRUQH[W\HDUZH securities laws and regulations. Although the expectations are H[SHFWWRLPSURYHRXUFDVKÁRZ based on reasonable assumptions, the actual results could ,QWHUQDOFRQWUROV\VWHPVDQGWKHLUDGHTXDF\ differ materially from those expressed or implied, since the &RPSDQ\·VRSHUDWLRQVDUHLQÁXHQFHGE\H[WHUQDODQGLQWHUQDO 7KH&(2 &)2FHUWLÀFDWLRQSURYLGHGHOVHZKHUHLQWKLV$QQXDO factors beyond the Company’s control. The Company assumes Report discusses the adequacy of internal control systems and no responsibility to publicly amend, modify or revise any procedures in place. forward looking statements, on the basis of any subsequent 0DWHULDO GHYHORSPHQWV LQ KXPDQ UHVRXUFHV LQGXVWULDO developments, information or events. UHODWLRQVIURQWLQFOXGLQJQXPEHURISHRSOHHPSOR\HG

Employee Headcount

14,000 12,110 12,000 10,980 10,910

10,000 9,296 8,321 8,000

6,000

4,000

2,000

- FY 13 FY 14 FY 15 FY 16 FY 17

The above mentioned headcount does not include interns on stipend.

Annual Report 2016-17 56 Enterprise Risk Management

The currenW ÀVFDO \HDU ZLWQHVVHG JOREDO XQFHUWDLQWLHV adequacy of ERM framework. The executive management geopolitical instability, market volatilities and technological team of the Company is responsible for implementing ERM developments in digital world that has increased business under the direction of RMC. complexities. This has profoundly complicated the risk landscape, rendering it more challenging and unpredictable. As The Risk owners of business teams and enabling functions are WKHVHULVNHYHQWVJURZPRUHFRPSOH[DQGLQÁXHQFHFRUSRUDWH accountable for managing risks in their areas with delegated business models and strategies, the impetus on the Company responsibility to their respective line managers. will be to achieve better risk visibility for timely risk mitigation. 7KH 5LVN 2IÀFH LV UHVSRQVLEOH IRU RYHUDOO H[HFXWLRQ RI (50 Enterprise Risk Management (ERM) continues to enhance strategy. It works closely with Risk Owners for deploying risk management capabilities by adopting proactive, mitigating action plans and monitoring their effectiveness forward looking and fully integrated approach for increased and is also responsible for providing periodic updates to the performance, ensuring long term growth and business Management and RMC on risks to key business objectives. It is sustainability through effective risk management. entrusted to update risk register on need basis.

5LVNPDQDJHPHQWRYHUYLHZ 5LVN0DQDJHPHQW)UDPHZRUN The Company aspires to be valued as “Vertically focused Increased digitization, Internet of Things (IoT), restrictive cross Technology Company that cares”. To achieve this, it adopts border mobility etc. has introduced threats which mandates LQWHJUDWLRQRI(50SURJUDPZLWKLWVGHÀQHGVWUDWHJLFJRDOVYL] the Company to implement a resilient ERM framework – growth through account acquisition and mining, leadership vigilant to the global volatilities. ERM framework embeds risk LQ RIIHULQJV SHRSOH SURFHVVHV SURGXFWLYLW\ DQG SURÀWDELOLW\ management into all activities as an integral part of business. This approach has assisted the Company to align risk appetite This is to ensure existence of effective internal controls and tolerance with business strategy for each vertical viz-Auto related to risks that are reported on continuous basis to the and Transportation, Manufacturing, Energy & Resources and Board. ERM framework is formalized by implementation of Utilities. ERM policy which articulates the scope and objectives for ERM, overall risk approach (as explained below in detail), The verticals of the Company are exposed to risks viz-growth roles and responsibilities for execution of ERM activities, risk in manufacturing vertical is dampened due to political categorization, maintenance and updation of comprehensive uncertainties and margin pressures and auto vertical is risk register. Risk register is reviewed periodically and provides confronted with competition to launch autonomous vehicles. the Management a consolidated view of the risks being faced Energy and Resources vertical is impacted by volatility in oil by the Company and their potential impact. The framework prices and increasing competition while Utilities vertical is facing GHÀQHVIROORZLQJSURFHGXUHV challenges of growing customer expectations and stringent environmental regulations and compliances. These risks are 5LVN,GHQWLÀFDWLRQ mitigated and the risk management objectives are achieved 5LVN LGHQWLÀFDWLRQ LV D FRQWLQXRXV SURFHVV ZKHUHLQ through effective risk governance and implementation of systematic efforts are undertaken to generate a robust risk management framework. comprehensive list of threats and opportunities based on events that might enhance, prevent, degrade, accelerate 5LVN0DQDJHPHQW*RYHUQDQFH or delay the achievement of enterprise objectives. (IIHFWLYH JRYHUQDQFH SURYLGHV IRU LGHQWLÀFDWLRQ DQG management of risks from the Board level to business unit At KPIT, periodic assessment of various business processes, level. quarterly Internal Audits, need based Management Audits, monthly internal business review meetings, annual The Board retains overall accountability for risk governance RSHUDWLQJSODQVIRUEXVLQHVVDVVLVWLQLGHQWLÀFDWLRQRIULVNV and is committed to effective risk management in pursuit of impacting enterprise objectives. our strategic objectives. It is assisted by the Risk Management Committee (RMC) in discharging this responsibility. 7KHEURDGFDWHJRULHVRIULVNLGHQWLÀHGDUH²VWUDWHJLFULVN RSHUDWLRQDOULVNÀQDQFLDOULVNSK\VLFDODQGVHFXULW\ULVN RMC is responsible to review and assess ERM effectiveness and economic and political risk, legal and compliance risk and to ensure that the same complies with the relevant governance reputational risk. Refer to more details in “risk overview” requirements and standards. It also provides assurance for section.

Annual Report 2016-17 57 Risk Assessment risk is tracked by comparing actual growth in revenue Risk assessment includes risk analysis. For every risk, from targeted customers’ vis-à-vis planned growth from probability of occurrence (likelihood) and impact of risk these customers along with customer satisfaction scores. are determined, based on which risk is prioritized. Top ten In order to manage and mitigate this risk, the Company SULRULWL]HGULVNVDUHLGHQWLÀHGIRUFORVHPRQLWRULQJ continues to deepen relationship with strategic customers Risk Mitigation and Treatment through GAM (Global Account Management). GAM is an initiative under which a customer-wise strategy is devised Based on risk appetite, the Company either accepts for permeating each GAM customer, which has enabled or mitigates or avoids or transfers the risks. For review sustainable business growth in selected customer on status of risks, periodical updates to mitigating plan accounts. Further, the Company also envisage growth are obtained from risk owners and are presented to the through account acquisition and mining. Management for further discussions and approvals. Through accounts acquisition, those accounts are 5LVN0RQLWRULQJ targeted, that fall in category of focused verticals, have Risk monitoring is ongoing process and it provides reasonable size and the accounts wherein needs and assurance of effectiveness of mitigating actions opportunities resonates our abilities. Account mining undertaken to address the risks, change in status of risk refers to association with few customers but providing and identify new risks, if any. them full spectrum of services.

5LVN5HSRUWLQJDQG5HYLHZ This is realized by deployment of account managers, Comprehensive risks applicable to the Company are practice directors and sales coach, brand building through reviewed periodically in various business forums. This also webinars, tradeshows and growth of product business. includes review of risks by the Board annually and half 2. Maintaining gross margins yearly review by RMC. Based on such review, changes to the risk mitigation actions are done with the approval of Gross margins are pressurized mainly by increase the Management and changes to risks to be monitored in employee and other related costs which may not necessarily be commensurate with the realizations are done with the approval of RMC. from the customer. Maintaining requisite gross margins 6XPPDU\RI.H\5LVNV LV WKH NH\ IDFWRU IRU SURÀWDELOLW\ ,W FDQ EH DFKLHYHG E\ either increasing employee productivity and controlling Top ten risks are those risks that have direct potential impact on costs or enforcing customer reimbursable expenses and WKHDFKLHYHPHQWRINH\EXVLQHVVJRDOVDQGVLJQLÀFDQWO\DIIHFW receivables. This risk is measured by comparing actual business sustainability and execution of company strategy. gross margins against budgeted gross margins. These risks are monitored diligently by the Company. To mitigate this risk, gross margins are reviewed rigorously Continuous risk evaluation has resulted in inclusion of three risks with increased focus on engineering productivity as a part of top ten risks. These risks are - geo political factors improvement. Usage of automation and tools to increase (e.g. immigration), reputational risk, liquidity and funding risk. productivity, billed utilisation improvement, focus on These three risks are already included in comprehensive risks GHOLYHU\ H[FHOOHQFH SURÀWDELOLW\ LPSURYHPHQW IRU À[HG of the Company. priced projects, correction of employee pyramid, charge *URZWKLQGHÀQHGWDUJHWDFFRXQWV out ratio, enhanced governance and review mechanism for capturing and analyzing contribution etc. are some Risk of inadequate growth affects business sustainability of the important initiatives undertaken for increase in DQG SURÀWDELOLW\ 7R DFKLHYH JURZWK ZH FRQWLQXH WR SURGXFWLYLW\DQGSURÀWDELOLW\ concentrate on few cognate industries relating to manufacturing and energy with focus on technology 7DOHQWPDQDJHPHQW led Engineering plus Business IT solutions, as the core The risk of succession challenges and the ability to offerings to customers. Thus growth in business from attract and retain talent is prevailing concern for a targeted customers and managing relationship with them knowledge-based business like ours. The changing trends is critical and mandates for periodical monitoring. This in technology, increasing demands from customers etc.

Annual Report 2016-17 58 warrants the Company to focus on talent for its growth *URZWKLQHPHUJLQJOLQHRIEXVLQHVVYL]3URGXFWVDQG and existence. This risk is measured by tracking attrition Platform (P&P) of high performers and new recruits becoming high The Company continues to have rigorous focus on performers within year of joining. growth in engineering product business which comprise of Intelligent Transportation Systems (ITS), KPIT This risk is addressed by acquiring, developing and Diagnostics and Connectivity Platform (KDCP), KPIT In- retaining the right talent with requisite knowledge Vehicle Infotainment Platform (KIVI), Konnect (solution and skills, increased connect with top performers by for transforming automotive device connectivity), management, actions initiated on employee satisfaction Autosar and Revolo. In this line of business, the Company survey, etc. While the Company continues to focus lays special emphasis on innovation which has led to RQ IUHVKHU UHFUXLWPHQWV LW KDV DOVR PDGH VLJQLÀFDQW the creation of multiple cutting-edge technologies for investments in employee trainings. Kaizen is introduced, various industries, e.g. transportation industry. This risk ZKLFK LV D WUDLQLQJ DQG FHUWLÀFDWLRQ SURJUDP IRFXVLQJ is measured by comparing actual growth rate of P&P on developing technical, domain, project management, against its budgeted growth rate. professional and leadership skills of our associates. To develop competencies of employees by establishing For P&P business, the Company anticipates growth through collaborative educational partnerships, the Company has pre-devised strategy of providing effective delivery against signed higher education MOU with one of the reputed concrete projections, winning opportunities with large university in UK and has also introduced Program for corporates, expansion of offerings through partnerships Academic Collaboration & Engagement (PACE) which to win large deals and entry into new business segments is a university collaboration program to engage, attract for growth in Infotainment. and nurture young talent from campuses. The efforts undertaken has resulted in attrition numbers under 7. Operational liability control. In customer oriented business like ours, ambiguity in project scope and requirements, delayed executions, 4. Fluctuations in currencies GHÀFLHQWGHOLYHUDEOHVHWFPLJKWUHVXOWLQKLJKHUFRVWVWR The Company is exposed to volatility in foreign currency the Company or lower revenues from customer. This may exchange rates as considerable revenue is generated in also culminate in claims for damages from the customer, foreign currency, with major portion of costs incurred in adversely impacting operating margins. ,15&XUUHQF\ÁXFWXDWLRQVPD\KDYHDGYHUVHLPSDFWRQ operating results. This risk is measured by comparing )RU LGHQWLÀFDWLRQ RI SRWHQWLDO RSHUDWLRQDO OLDELOLW\ IHZ actual realized rate against planned rate. aspects like substantial delay in deliverables, low customer satisfaction ratings, defective deliverables, long disputed To mitigate this risk, the Company follows a prudent outstanding receivables etc. are considered for deriving forex hedging policy based on a consistent approach estimated amounts of claims. This risk is measured by to hedging. This policy is reviewed periodically by the FRPSDULQJSRWHQWLDOYDOXHRIFODLPVDJDLQVWSUHGHÀQHG Management and the Board. threshold claim limit.

5. Geopolitical risks This risk is mitigated by periodical review of operational The Company has existence in multiple geographies liability which includes scrupulous review of customer DQG JHRSROLWLFDO XQFHUWDLQWLHV FDQ VLJQLÀFDQWO\ LPSDFW contracts, reinforcing effective customer delivery achievement of strategic objectives of the Company. management, setting of realistic expectations with Impact on mobility of resources due to restrictive cross customers & business users in large IT projects and border legislations can result in increase in costs with implementing good project management practices. pressure on margins. The Company proposes to increase Further, the Company has also insured some of these focus on onsite hiring and its periodical monitoring, risks. enhancing skills for onsite talent through ECODE, effective manpower planning and deployment, exploring offshore work execution and building onsite global delivery centers.

Annual Report 2016-17 59 8. Management of large deal delivery RUJDQL]DWLRQ·VUHSXWDWLRQULVNZLOOKDYHVLJQLÀFDQWLPSDFW With rapid growth in size and our customer engagements on the Company revenues, trust of stakeholders and becoming large (in dollar value), complex (multi- sustainability of business. technology, cross-SBU) and global (presence in many To mitigate this risk, a committee comprising of cross countries), effective customer deliverables is crucial for functional teams is created and entrusted with the task successful business. While management of such large of review and strengthening the policies and procedures deals is complex and challenging process, inability to at the organizational level and ensuring compliance execute such deals effectively might erode margins and of core value systems. For violations, if any, root cause growth. analysis is done and corrective measures are undertaken. Further, through various forums, the Company has To address this risk, delivery excellence team of the strengthened periodical communication on expected Company has deployed robust framework of Program core values, including enforcement of employee safety, and Project Management Methodology which supports data protection, corporate branding etc. planning and execution of client engagements by creating value to them. This team is involved in all large ,QHIIHFWLYHFDSLWDOPDQDJHPHQWOLTXLGLW\DQGIXQGLQJ deals to ensure accurate scoping of deals, setting right &DSLWDO PDQDJHPHQW LV LQÁXHQFHG E\ XQDQWLFLSDWHG expectations with customers and ensuring qualitative changes in market variables, business terms with deliverables. Additionally, margins for large deal contracts customers and vendors, regulatory environment etc. are monitored meticulously and reviewed periodically by Ineffective capital management, liquidity and funding can the senior management. VLJQLÀFDQWO\DIIHFWRSHUDWLQJSURÀWDELOLW\RIWKHEXVLQHVV

5HSXWDWLRQDOULVN The Company focuses on optimizing working capital by The Company views that its reputation is vulnerable to effective deployment of funds, maintaining robust cash global and political changes, technology advancements ÁRZFRQWURORQ'D\V6DOHV2XWVWDQGLQJ '62 SHULRGLFDO including cyber-attacks, weak corporate governance, analysis and meticulous review of liquidity position to inadequate employee safety, poor brand perception HQVXUH DGHTXDF\ RI ZRUNLQJ FDSLWDO WR PHHW ÀQDQFLDO etc. The Company comprehends that damage to an obligations.

Annual Report 2016-17 60 Report on Corporate Governance

Corporate Governance Philosophy: ¾ Entrepreneurship and Innovation Teamwork and boundarylessness Corporate Governance entails managing business in a manner ¾ that is accountable and responsible to the shareholders. In a Our philosophy is aimed at conducting business ethically, wider interpretation, corporate governance includes company’s HIÀFLHQWO\DQGLQDWUDQVSDUHQWPDQQHUIXOÀOOLQJLWVFRUSRUDWH accountability to shareholders and other stakeholders such as responsibility to various stakeholders and retaining and employees, suppliers, customers and local community. enhancing investor trust and is based on the following SULQFLSOHV Corporate Governance implies an accurate, adequate and WLPHO\GLVFORVXUHRIUHOHYDQWLQIRUPDWLRQ(IÀFLHQWWUDQVSDUHQW 1. Compliance with the relevant provisions of securities and impeccable Corporate Governance is vital for stability, laws and conformity with globally accepted practices of SURÀWDELOLW\ DQG GHVLUHG JURZWK RI WKH EXVLQHVV RI DQ\ corporate governance, secretarial standards provided by organization. The importance of such corporate governance the Institute of Company Secretaries of India and laws of KDV QRZ EHFRPH PRUH LQWHQVLÀHG RZLQJ WR HYHUJURZLQJ ,QGLDLQWUXHVSLULW competition and rivalry in the businesses of almost all ,QWHJULW\ LQ ÀQDQFLDO UHSRUWLQJ DQG WLPHOLQHVV RI economic sectors, both at the national and international levels. GLVFORVXUHV Therefore, new Companies Act, 2013, has introduced some 3. Transparency in the functioning and practices of the new and innovative means to make corporate governance in %RDUG ,QGLD RSWLPDOO\ SURJUHVVLYH WUDQVSDUHQW DQG EHQHÀFLDO WR DOO the stakeholders. %DODQFHEHWZHHQHFRQRPLFDQGVRFLDOJRDOV (TXLWDEOHWUHDWPHQWDQGULJKWVRIVKDUHKROGHUV Corporate Governance is basically an approach of managing 6. Maintenance of ethical culture within and outside the HIÀFLHQWO\ DQG SUXGHQWO\ DOO WKH DFWLYLWLHV RI D FRPSDQ\ LQ RUJDQL]DWLRQ RUGHUWRPDNHWKHEXVLQHVVVWDEOHDQGVHFXUHJURZWKRULHQWHG PD[LPDOO\ SURÀWDEOH WR LWV VKDUHKROGHUV DQG KLJKO\ UHSXWHG 7. Establishing better risk management framework and risk and reliable among all customers and clients. The Company is mitigation measures and directed and controlled in a way in order to achieve the goals 8. Maintaining independence of auditors. DQGREMHFWLYHVWRDGGYDOXHWRWKH&RPSDQ\DQGDOVREHQHÀW the stakeholders in the long term. The Board Structure and We seek to protect the shareholders’ rights by providing Top Management are directly and exclusively responsible for WLPHO\DQGVXIÀFLHQWLQIRUPDWLRQWRWKHVKDUHKROGHUVDOORZLQJ such governance. For these purposes, the top management effective participation in key corporate decisions and by PXVWKDYHÁDZOHVVDQGHIIHFWLYHFRQWURORYHUDOODIIDLUVRIWKH providing adequate mechanism to address the grievances organization, regular monitoring of all business activities and of the shareholders. This ensures equitable treatment of all transactions, proper care and concern for the interest and shareholders including minority and foreign shareholders. We EHQHÀWRIWKHVKDUHKROGHUVDQGVWULFWFRPSOLDQFHVWRUHJXODWRU\ HQVXUH WLPHO\ DQG DFFXUDWH GLVFORVXUH RQ VLJQLÀFDQW PDWWHUV and governmental regulations. Thus, corporate governance is LQFOXGLQJ ÀQDQFLDO SHUIRUPDQFH RZQHUVKLS DQG JRYHUQDQFH VWULFWDQGHIÀFLHQWDSSOLFDWLRQRIDOOEHVWPDQDJHPHQWSUDFWLFHV of the Company. We implement the prescribed accounting and corporate & legal compliances, amid the contemporary VWDQGDUGV LQ OHWWHU DQG VSLULW LQ WKH SUHSDUDWLRQ RI ÀQDQFLDO and continually changing business scenarios. statements taking into account the interest of the stakeholders and the annual audit is conducted by an independent and We, have been practicing corporate governance to ensure TXDOLÀHG DXGLWRU ,QYHVWRU XSGDWHV DUH XSORDGHG RQ WKH transparency in our corporate affairs and are committed to Company’s website on quarterly basis and also intimated to continuously scale up the corporate governance standards. the stock exchanges for its stakeholders. Further, additional updates are provided to the stakeholders on any matter that Our corporate governance framework has been built on a value concerns them, as and when the circumstances arise. system which has evolved over a period of time. This value system has been abbreviated as CRICKET, which illustrates the Our Board of Directors periodically reviews its corporate Company’s attributes as follows: strategies, annual budgets and sets, implements and monitors corporate objectives. It effectively monitors the Company’s ¾ Customer Focus governance practices and ensures transparent Board processes. ¾ Respect for Individual Further, it appoints and compensates the key executives and also monitors their performance. It strives to maintain overall ¾ Integrity LQWHJULW\RIWKHDFFRXQWLQJDQGÀQDQFLDOUHSRUWLQJV\stems. ¾ Community Initiative ¾ Knowledge Worship

Annual Report 2016-17 61 I. BOARD OF DIRECTORS ,QGHSHQGHQW 1RQ([HFXWLYH 'LUHFWRUV DQG WKUHH DUH ([HFXWLYH 'LUHFWRUV 7KH 1RQ([HFXWLYH 'LUHFWRUV FRPH A. Size and composition of the Board from diverse background and possess rich experience In order to maintain independence of the Board, we and expertise in various industries such as automotive, KDYH D MXGLFLRXV PL[ RI ([HFXWLYH 1RQ([HFXWLYH HQHUJ\ XWLOLWLHV PDQXIDFWXULQJ HOHFWURQLFV ÀQDQFH and Independent Directors on the Board which is and research. The Board periodically evaluates the need for increasing or decreasing its size. The composition of essential to separate the two main Board functions viz. the Board and the number of directorships held by each governance and management. Out of the total strength Director both in the Company as well as outside the of ten Directors as on March 31, 2017, seven are Company is detailed in Table 1.

Table 1: The composition of the Board and the number of directorships held by them as on March 31, 2017

Sr. Name of Director Category of Relationship No. of No. of No. of No. Directorship at with the Director Committee Chairmanship KPIT Directors ships held Membership in in in Public Companies@ Committees@ Companies* 1 Mr. S. B. (Ravi) Pandit, Chairman Executive None 42Nil 2 Mr. Kishor Patil, CEO & Managing Director Executive None 42Nil 3 0U6DFKLQ7LNHNDU:KROHWLPH'LUHFWRU Executive None 1 Nil Nil 4 Ms. Lila Poonawalla Independent None 72 2 5 Dr. R. A. Mashelkar Independent None 63 1 6 Mr. Adi Engineer Independent None 32Nil 7 Prof. Alberto Sangiovanni Vincentelli Independent None 1 Nil Nil 8 Mr. Anant Talaulicar Independent None 2 2 Nil 9 Mr. B V R Subbu 1RQ([HFXWLYH None 2 Nil Nil 10 Mr. Sanjay Kukreja 1RQ([HFXWLYH None 2 Nil Nil

* including directorship in KPIT Technologies Limited. @ includes only Audit Committee & Stakeholders Relationship Committee in all public limited companies including KPIT Technologies Limited.

B. Independent Directors: b. who is or was not a Promoter of the Company or its 1. Independent Director VXEVLGLDU\RUDVVRFLDWHFRPSDQLHV $OO RXU ,QGHSHQGHQW 'LUHFWRUV IXOÀOO WKH FULWHULD RI c. who is not related to Promoters or Directors in the independence as prescribed under Regulation 16 of &RPSDQ\RULWVVXEVLGLDU\RUDVVRFLDWHFRPSDQLHV the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, d. who, apart from receiving director’s remuneration, 2015 (hereinafter referred to as “the SEBI (LODR) has or had no material pecuniary relationship Regulations, 2015”) as explained below. with the Company or its subsidiary or associate companies, or their promoters, or Directors, during ,QGHSHQGHQW 'LUHFWRU VKDOO PHDQ D 1RQ([HFXWLYH WKH WZR LPPHGLDWHO\ SUHFHGLQJ ÀQDQFLDO \HDUV RU Director, other than a Nominee Director of the Company: GXULQJWKHFXUUHQWÀQDQFLDO\HDU

a. who, in the opinion of the Board of Directors, is a e. none of whose relatives has or had pecuniary person of integrity and possesses relevant expertise relationship or transaction with the Company or DQGH[SHULHQFH its subsidiary or associate companies, or their

Annual Report 2016-17 62 promoters, or Directors, amounting to two per 3. Maximum tenure of Independent Directors cent or more of its gross turnover or total income None of the Independent Directors has exceeded the RUÀIW\ODNKUXSHHVRUVXFKKLJKHUDPRXQWDVPD\ tenure prescribed under Regulation 25 of the SEBI (LODR) be prescribed, whichever is lower, during the two Regulations, 2015 and under Section 149 (10) of the LPPHGLDWHO\SUHFHGLQJÀQDQFLDO\HDUVRUGXULQJWKH Companies Act, 2013. FXUUHQWÀQDQFLDO\HDU 4. Formal letter of appointment to Independent I ZKRQHLWKHUKLPVHOIQRUZKRVHUHODWLYH V Directors (i) holds or has held the position of a key The Company has issued formal appointment letters to managerial personnel or is or has been an the Independent Directors which have been placed on the employee of the Company or its subsidiary or Company’s website. DVVRFLDWHFRPSDQLHVLQDQ\RIWKHWKUHHÀQDQFLDO \HDUVLPPHGLDWHO\SUHFHGLQJWKHÀQDQFLDO\HDU 5. Performance evaluation of Independent Directors LQZKLFKKHLVSURSRVHGWREHDSSRLQWHG The Nomination and Remuneration (HR) Committee (ii) is or has been an employee or proprietor or has laid down criteria for performance evaluation of D SDUWQHU LQ DQ\ RI WKH WKUHH ÀQDQFLDO \HDUV Independent Directors, which are given below: LPPHGLDWHO\ SUHFHGLQJ WKH ÀQDQFLDO \HDU LQ which he is proposed to be appointed, of– a) Attendance at Board meetings and Board Committee PHHWLQJV $ DÀUPRIDXGLWRUVRUFRPSDQ\VHFUHWDULHV in practice or cost auditors of the Company E &KDLUPDQVKLSRIWKH%RDUGDQG%RDUG&RPPLWWHHV RU LWV VXEVLGLDU\ RU DVVRFLDWH FRPSDQLHV or c) Contribution and deployment of knowledge and H[SHUWLVHDWWKH%RDUGDQG&RPPLWWHHPHHWLQJV % DQ\OHJDORUDFRQVXOWLQJÀUPWKDWKDVRU had any transaction with the Company d) Guidance and support provided to senior or its subsidiary or associate companies management of the Company outside the Board amounting to ten per cent or more of the PHHWLQJV JURVVWXUQRYHURIVXFKÀUP e) Independence of behaviour and judgment and (iii) holds together with his relatives two per cent or PRUHRIWKHWRWDOYRWLQJSRZHURIWKH&RPSDQ\ I ,PSDFWDQGLQÁXHQFH or 6. Separate meeting of the Independent Directors (iv) is a chief executive or director, by whatever QDPH FDOOHG RI DQ\ QRQSURÀW RUJDQL]DWLRQ 'XULQJ)<DVHSDUDWHPHHWLQJRIWKH,QGHSHQGHQW WKDW UHFHLYHV WZHQW\ÀYH SHU FHQW RU PRUH RI Directors of the Company was held on February 17, 2017. its receipts or corpus from the Company, any 7. Familiarization Programme for Independent Directors of its promoters, Directors or its subsidiary or associate companies or that holds two per Our Directors, at the time of their appointment, are cent or more of the total voting power of the provided with information about the Company and its &RPSDQ\ organization structure, business model, vision and values, latest published results and internal policies to enable (v) is a material supplier, service provider or them to familiarize themselves with the Company’s FXVWRPHURUOHVVRURUOHVVHHRIWKH&RPSDQ\ procedures and practices. The new Directors are also g. who is not less than 21 years of age. invited for meetings of Board of Directors and Board Committees held before their appointment which helps 2. Limit on number of directorships them to familiarize themselves with the Company and The number of companies in which each Independent its Board process. The details of such familiarization 'LUHFWRURIWKH&RPSDQ\KROGVRIÀFHDVDQ,QGHSHQGHQW programmes are uploaded on the website of the Company Director is within the limits prescribed under Regulation KWWSZZZNSLWFRPFRPSDQ\LQYHVWRUVFRUSRUDWH 25 of the SEBI (LODR) Regulations, 2015. governance).

Annual Report 2016-17 63 Further, at every Board meeting, there is a detailed and Prof. Alberto Sangiovanni Vincentelli for a term of business presentation made which is useful to the three years, from April 1, 2014. In the Annual General Directors in understanding the business. The presentation Meeting held on August 19, 2015, the Company appointed is made by the business leader so that the Directors are Mr. Anant Talaulicar as an Independent Director, for a term able to connect with the leader and ask him related of three years from October 21, 2014. During the year questions. XQGHUUHYLHZWKH%RDUGUHDSSRLQWHG0V/LOD3RRQDZDOOD Dr. R. A. Mashelkar, Mr. Adi Engineer and Prof. Alberto C. Responsibilities of the Chairman and other Executive Sangiovanni Vincentelli as Additional and Independent Directors 'LUHFWRUVRIWKH&RPSDQ\IRUIXUWKHUSHULRGRIÀYH\HDUV from April 1, 2017 subject to approval of shareholders in Mr. S. B. (Ravi) Pandit is the Chairman of the Board of the ensuing Annual General Meeting. 'LUHFWRUV 0U .LVKRU 3DWLO LV WKH &KLHI ([HFXWLYH 2IÀFHU (CEO) & Managing Director and Mr. Sachin Tikekar is a $VIRUWKH1RQ,QGHSHQGHQW'LUHFWRUVDWOHDVWWZRWKLUGV :KROHWLPH 'LUHFWRU DQG 3UHVLGHQW 7KH DXWKRULWLHV DQG RI WKHP VKDOO EH OLDEOH WR UHWLUH E\ URWDWLRQ 2QHWKLUG responsibilities of each of the above Directors are clearly of such directors as are liable to retire by rotation shall GHPDUFDWHGDVXQGHU UHWLUHHYHU\\HDUDQGLITXDOLÀHGVKDOOEHHOLJLEOHIRUUH appointment. Mr. Sanjay Kukreja, Nominee Director of The Chairman leads the team in overseeing Solutions one of the investors is not liable to retire by rotation as & Services business, assessment of new technologies, per the resolution of the shareholders appointing him as management of key external relationships and managing a Director. As such, Mr. S. B. (Ravi) Pandit, retires at the Board matters. He is a Promoter of the Company and forthcoming Annual General Meeting and being eligible, also plays a strategic role in Community Initiatives and VHHNVUHDSSRLQWPHQWDVD'LUHFWRU Corporate Governance. The Executive Directors are appointed by the shareholders 7KH &(2 0DQDJLQJ 'LUHFWRU LV LQFKDUJH RI WKH RI WKH &RPSDQ\ IRU D PD[LPXP SHULRG RI ÀYH \HDUV DW RYHUDOO PDQDJHPHQW RI WKH &RPSDQ\ +H LV VSHFLÀFDOO\ a time (subject to retirement by rotation as mentioned UHVSRQVLEOH IRU DOO GD\WRGD\ RSHUDWLRQDO LVVXHV OLNH KHUHLQDERYH EXW DUH HOLJLEOH IRU UHDSSRLQWPHQW XSRQ planning and executing business, reviewing and guiding completion of their respective term. WKHFRXQWU\RIÀFHVFXVWRPHUGHOLYHU\XQLWVDQGVXSSRUW IXQFWLRQVDQGHQVXULQJHIÀFLHQWDQGHIIHFWLYHIXQFWLRQLQJ E. Board & Committee Meeting Agenda and Minutes of the organization as a whole. Currently, he is focusing on creation and management of new Product Business Units, The Company Secretary receives details on the matters executive sponsorship of critical GAMs, management of which require the approval of the Board / Committees key external relationships in India & strategic infrastructure of the Board, from various departments of the Company, projects. well in advance, so that they can be included in the Board / Committee meeting agenda, if required. The information 7KH :KROHWLPH 'LUHFWRU DQG 3UHVLGHQW ZRUNV RQ WKH as required under the SEBI (LODR) Regulations, 2015, is overall strategy, operating systems, creation of some made available to the members of the Board / Committee. new solutions, executive sponsorship of the Key Global All material information is incorporated in the agenda Accounts and Partnerships along with Succession Planning papers for facilitating meaningful and focused discussions and Development of senior people in the organization. at the meetings. In compliance with the statutory requirements, the following items are discussed in the D. Membership Term quarterly meetings: As per the current laws in India, Independent Directors 0LQXWHVRIWKHSUHYLRXV%RDUGPHHWLQJDQGPHHWLQJV FDQ KROG RIÀFH IRU D WHUP RI XSWR ÀYH \HDUV ZKLFK FDQ of Board committees held in the previous calendar EH H[WHQGHG IRU DQRWKHU SHULRG RI ÀYH \HDUV E\ WKH TXDUWHU shareholders of the Company. In the Annual General Meeting held on July 25, 2014, the Company appointed 0LQXWHVRI%RDUGPHHWLQJVRIDOOVXEVLGLDULHVKHOGLQ Ms. Lila Poonawalla, Dr. R. A. Mashelkar, Mr. Adi Engineer WKHSUHYLRXVFDOHQGDUTXDUWHU

Annual Report 2016-17 64 4XDUWHUO\UHVXOWVRIWKH&RPSDQ\DQGLWVRSHUDWLQJ )DWDO RU VHULRXV DFFLGHQWV GDQJHURXV RFFXUUHQFHV GLYLVLRQVRUEXVLQHVVVHJPHQWV DQ\PDWHULDOHIÁXHQWRUSROOXWLRQSUREOHPV

$QQXDO RSHUDWLQJ SODQV DQG EXGJHWV DQG DQ\ $Q\PDWHULDOGHIDXOWLQÀQDQFLDOREOLJDWLRQVWRDQG XSGDWHV E\ WKH &RPSDQ\ RU VXEVWDQWLDO QRQSD\PHQW IRU JRRGVVHUYLFHVVROGE\WKH&RPSDQ\ &DSLWDOEXGJHWVDQGDQ\XSGDWHV $Q\LVVXHZKLFKLQYROYHVSRVVLEOHSXEOLFRUSURGXFW 3UHVHQWDWLRQRQWKHÀQDQFLDOUHVXOWVZKLFKJHQHUDOO\ liability claims of substantial nature, including any includes the following: judgment or order which, may have passed strictures ¾ Financials for the quarter and its analysis on the conduct of the Company or taken an adverse view regarding another enterprise that can have ¾ &DVKSURÀWJHQHUDWHGGXULQJWKHTXDUWHU QHJDWLYHLPSOLFDWLRQVRQWKH&RPSDQ\

¾ 3URÀWDELOLW\GULYHUV 7UDQVDFWLRQV WKDW LQYROYH VXEVWDQWLDO SD\PHQW towards goodwill, brand equity, or intellectual ¾ Utilization of resources SURSHUW\

¾ Peer group analysis and analyst coverage 6LJQLÀFDQW ODERXU SUREOHPV DQG WKHLU SURSRVHG VROXWLRQV $Q\ VLJQLÀFDQW GHYHORSPHQW LQ +XPDQ ¾ Mergers and acquisitions pursuits Resources / Industrial Relations front like signing ¾ Investments in the Company of wage agreement, implementation of Voluntary 5HWLUHPHQW6FKHPHHWF ¾ 6XEVLGLDULHV·ÀQDQFLDOVDQGRSHUDWLRQV 6DOHRIPDWHULDOQDWXUHRILQYHVWPHQWVVXEVLGLDULHV ¾ Statement on foreign exchange exposure and DVVHWVQRWLQQRUPDOFRXUVHRIEXVLQHVV related mitigating activities. 4XDUWHUO\GHWDLOVRIIRUHLJQH[FKDQJHH[SRVXUHVDQG 3UHVHQWDWLRQV RI 6WDWXWRU\ $XGLWRUV· $XGLW DQG the steps taken by management to limit the risks of /LPLWHG5HYLHZ5HSRUW DGYHUVHH[FKDQJHUDWHPRYHPHQWLIPDWHULDO 5HODWHG SDUW\ WUDQVDFWLRQV LQFOXGLQJ PDWHULDO 1RQFRPSOLDQFH RI DQ\ UHJXODWRU\ VWDWXWRU\ RU WUDQVDFWLRQVZLWKVXEVLGLDULHV listing requirements and any shareholders’ service &RUSRUDWH *RYHUQDQFH FRPSOLDQFHV DQG VWDWXWRU\ VXFK DV QRQSD\PHQW RI GLYLGHQG GHOD\ LQ VKDUH FRPSOLDQFHFHUWLÀFDWH transfer etc.

2WKHUVWDWXWRU\DJHQGDLQFOXGLQJDFWLRQWUDFNHURQ Every agenda and minutes of the meetings are implementation of decisions taken in previous Board prepared in compliance with the SEBI (LODR) PHHWLQJ V DQGSUHVHQWDWLRQE\,QWHUQDO$XGLWRUV Regulations, 2015 as well as the Companies Act, 2013 and the rules framed thereunder, in force from 7KHLQIRUPDWLRQRQUHFUXLWPHQWDQGUHPXQHUDWLRQRI time to time and the Secretarial Standards issued by VHQLRURIÀFHUVMXVWEHORZWKH%RDUGOHYHOLQFOXGLQJ the Institute of Company Secretaries of India. The DSSRLQWPHQW RU UHPRYDO RI &KLHI )LQDQFLDO 2IÀFHU draft minutes of the proceedings of the meetings of &)2 DQGWKH&RPSDQ\6HFUHWDU\LIDQ\ the Board as well as the Committees of the Board 6KRZ FDXVH GHPDQG SURVHFXWLRQ QRWLFHV DQG are circulated to all the Directors / Members of the SHQDOW\QRWLFHVZKLFKDUHPDWHULDOO\LPSRUWDQW Committee.

Annual Report 2016-17 65 F. Non-Executive Directors’ shareholding The Board meetings are generally held at the Registered The number of Equity Shares of the Company held by 2IÀFHRIWKH&RPSDQ\ORFDWHGLQ3XQH7KHDJHQGDIRU 1RQ([HFXWLYH'LUHFWRUVDVRQ0DUFKDUHJLYHQ each meeting is drafted by the Company Secretary in in Table 2. consultation with the Chairman of the Board and circulated to the Board members in advance of the meetings. The Table 2: Shareholding details of Non-Executive Directors Board meets at least once every quarter to review and approve the quarterly results and other items on the Sr. Name Shareholding agenda. In addition, the Board normally meets annually, No. No. of % of Total Paid IRUGLVFXVVLRQVRQWKHDQQXDORSHUDWLQJSODQDQGIRUPLG shares up Capital year review of the plan. Additional Board meetings are 1 Ms. Lila Poonawalla 130,000 0.07 held, whenever necessary. 2 Dr. R. A. Mashelkar 56,000 0.03 3 Mr. Sanjay Kukreja 32,400 0.02 During the year, six Board meetings were held on the Total 2,18,400 0.12 following dates:

'HWDLOV RI FRPSHQVDWLRQ SDLG SD\DEOH WR RWKHU 1RQ D $SULO Executive Directors are disclosed elsewhere in this Report. E -XQH G. Other provisions as to Board and Committees F -XO\ 1. Board meetings schedule: As a good practice, the dates of the Board meetings in a G 2FWREHU ÀQDQFLDO\HDUDUHGHFLGHGEHIRUHWKHVWDUWRIWKHÀQDQFLDO e) January 18, 2017 and year and circulated to all the Board members. These dates are also included in the ‘Additional Shareholder f) February 17, 2017. Information’, which forms a part of this Annual Report.

Table 3: Number of Board meetings and the attendance of Directors during FY 2016-17

Sr. Name of the Director No. of Board meetings held No. of Board meetings Attendance at No. during the tenure of each attended* the last AGM Director 1 Mr. S. B. (Ravi) Pandit, Chairman 66Yes 2 Mr. Kishor Patil, CEO & Managing Director 66Yes 3 0U6DFKLQ7LNHNDU:KROHWLPH'LUHFWRU 65Yes 4 Ms. Lila Poonawalla 66Yes 5 Dr. R. A. Mashelkar 64Yes 6 Mr. Adi Engineer 66Yes 7 Prof. Alberto Sangiovanni Vincentelli 65 8 Mr. Anant Talaulicar 61 9 Mr. B V R Subbu 65 10 Mr. Sanjay Kukreja 62

*Including attendance by videoconference or teleconference.

Annual Report 2016-17 66 2. Membership of Board committees 1. receipt, retention and treatment of complaints None of the Directors of the Company hold membership received by the Company regarding improper of more than ten committees nor is any Director a DFWLYLWLHVÀQDQFLDORURWKHUZLVHLQWKH&RPSDQ\DQG &KDLUPDQRIPRUHWKDQÀYHFRPPLWWHHVRIERDUGVRIDOO VXEPLVVLRQE\:KLVWOH%ORZHURQDFRQÀGHQWLDODQG the companies where he / she holds directorships. (Please or anonymous basis, of concerns regarding improper refer Table 1). activities.

3. Review of compliance reports The purpose of this policy is also to state clearly For monitoring and ensuring compliance with applicable and unequivocally that the Company prohibits laws by the Company and its subsidiaries located in and discrimination, harassment and / or retaliation against outside India and for establishing adequate management DQ\:KLVWOH%ORZHUZKR control over the compliances of all acts, laws, rules, 1. raises concerns against improper activities or regulations and regulatory requirements, the Company KDV VHWXS D UHJXODWRU\ FRPSOLDQFH SURFHVV ZLWKLQ WKH 2. provides information or otherwise assists in an RUJDQL]DWLRQ 7KH &RPSOLDQFH 2IÀFHU LV WKH SURFHVV investigation or proceeding regarding improper owner of this process and is responsible for obtaining activities. FRPSOLDQFHFHUWLÀFDWHVIURPDOOGHSDUWPHQWVDQGHQWLWLHV and reporting compliance to the Board of Directors. The Policy also aims to protect any Whistle Blower The CFO and the Company Secretary of the Company who legitimately and in good faith raises concerns WKHUHDIWHU SUHVHQWV D TXDUWHUO\ FRPSOLDQFH FHUWLÀFDWH or provides information against improper activities. before the Board of Directors of the Company which Everyone in the Company is responsible for reviews compliance reports of all laws applicable to the ensuring that the workplace is free from all forms Company on a quarterly basis in its Board Meetings. of discrimination, harassment and retaliation H. Code of conduct prohibited by this policy. No employee or Director of the Company has the authority to engage in any The Company has adopted a Code of Conduct for its conduct prohibited by this Policy. Board members, senior management and all employees and this Code has been posted on the Company’s J. Corporate Disclosure Policy website. All the Board members and senior management The Company has a Corporate Disclosure Policy SHUVRQQHODIÀUPFRPSOLDQFHZLWKWKH&RGHRQDQDQQXDO LQ SODFH 7KH &KLHI ,QYHVWRU 5HODWLRQV 2IÀFHU GHDOV basis. The declaration of the CEO & Managing Director to with dissemination of information and disclosure of this effect is provided in this Report. unpublished price sensitive information under the Policy

I. Whistle Blower Policy II. COMMITTEES OF THE BOARD In an effort to demonstrate the highest standards of transparency, the Company has adopted the ‘Whistle During the year, the Board of the Company had eight regular Blower Policy’, which has established a mechanism for committees – Audit Committee, Nomination and Remuneration employees to express and report their concerns to the (HR) Committee, Stakeholders Relationship Committee, meets management in a fearless manner about unethical DQQXDOO\4XDOLW\&RXQFLO,QQRYDWLRQ&RXQFLO(623$OORWPHQW behavior, fraud, violation of the code of conduct or Committee, Corporate Social Responsibility (CSR) Committee ethics. This mechanism also provides for adequate and Risk Management Committee. Most of these Committees safeguards against victimization of employees who DUH FKDLUHG E\ 1RQ([HFXWLYH,QGHSHQGHQW 'LUHFWRUV 7KH avail this mechanism and also provide direct access to %RDUG LV UHVSRQVLEOH IRU FRQVWLWXWLQJ FRRSWLQJ DQG À[LQJ the terms of reference for the committees. Normally, the the Chairman and members of the Audit Committee Audit Committee and Nomination and Remuneration (HR) in exceptional cases. This policy has been uploaded on Committee meet at least four times a year, Stakeholders the website of the Company for effective circulation and Relationship Committee meets annually, CSR Committee meets implementation. The purpose of this policy is to establish DWOHDVWWZLFHD\HDUDQGWKH,QQRYDWLRQ&RXQFLO4XDOLW\&RXQFLO procedures for the:

Annual Report 2016-17 67 and ESOP Allotment Committee meet as and when the need a) matters required to be included in the director’s arises. The Risk Management Committee met twice during responsibility statement to be included in the WKH\HDU([FHSWZKHUHDVWDWXWRU\TXRUXPKDVEHHQ %RDUG·V UHSRUW LQ WHUPV RI FODXVH F RI VXE prescribed, the quorum for committee meetings is either two section (3) of Section 134 of the Companies Act, PHPEHUVRURQHWKLUGRIWKHWRWDOVWUHQJWKRIWKHFRPPLWWHH whichever is higher. Draft minutes of the committee meetings b) changes, if any, in accounting policies and are circulated to the members of those committee for their SUDFWLFHVDQGUHDVRQVIRUWKHVDPH FRPPHQWV DQG WKHUHDIWHU FRQÀUPHG LQ LWV QH[W PHHWLQJ The Board of Directors also take note of the minutes of the c) major accounting entries involving estimates committee meetings held in the previous calendar quarter, at based on the exercise of judgment by its meetings. PDQDJHPHQW

A. Audit Committee G VLJQLÀFDQW DGMXVWPHQWV PDGH LQ WKH ÀQDQFLDO VWDWHPHQWVDULVLQJRXWRIDXGLWÀQGLQJV Composition The Company has set up an Audit Committee consisting e) compliance with listing and other legal of two Independent Directors and one Executive Director. UHTXLUHPHQWVUHODWLQJWRÀQDQFLDOVWDWHPHQWV 0V/LOD3RRQDZDOODLVWKH&KDLUSHUVRQRIWKLV&RPPLWWHH I GLVFORVXUHRIDQ\UHODWHGSDUW\WUDQVDFWLRQV Mr. Adi Engineer & Mr. S. B. (Ravi) Pandit are the other PHPEHUV$OOPHPEHUVRIWKLV&RPPLWWHHDUHÀQDQFLDOO\ J PRGLÀHGRSLQLRQ V LQWKHGUDIWDXGLWUHSRUW OLWHUDWH$EULHISURÀOHRIDOOWKH&RPPLWWHHPHPEHUVLV 5. reviewing, with the management, the quarterly provided in ‘Additional Shareholders Information’ section ÀQDQFLDOVWDWHPHQWVEHIRUHVXEPLVVLRQWRWKH%RDUG of this Annual Report. The CFO attends all the meetings of IRUDSSURYDO the Committee. The Company Secretary is the Secretary to the Committee. The Statutory Auditors and the Internal 6. reviewing, with the management, the statement of Auditors also make their presentations at the Committee uses / application of funds raised through an issue meetings. (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than Role and objectives those stated in the offer document / prospectus / 7KH &RPSDQ\ KDV GXO\ GHÀQHG WKH UROH DQG REMHFWLYHV notice and the report submitted by the monitoring of the Audit Committee on the same lines as provided agency monitoring the utilisation of proceeds of under Regulation 18(3) read with Schedule II of the SEBI a public or rights issue and making appropriate (LODR) Regulations, 2015, and the Companies Act, 2013, recommendations to the Board to take up steps in as amended from time to time. The role and objectives of WKLVPDWWHU WKH$XGLW&RPPLWWHHDVGHÀQHGE\WKH%RDUGRI'LUHFWRUV inter alia include: 7. reviewing and monitoring the auditor’s independence RYHUVLJKWRIWKHÀQDQFLDOUHSRUWLQJSURFHVVDQGWKH DQGSHUIRUPDQFHDQGHIIHFWLYHQHVVRIDXGLWSURFHVV GLVFORVXUHRILWVÀQDQFLDOLQIRUPDWLRQWRHQVXUHWKDW DSSURYDO RU DQ\ VXEVHTXHQW PRGLÀFDWLRQ RI WKH ÀQDQFLDO VWDWHPHQWV DUH FRUUHFW VXIÀFLHQW DQG WUDQVDFWLRQVRIWKH&RPSDQ\ZLWKUHODWHGSDUWLHV FUHGLEOH 2. recommendation for appointment, remuneration VFUXWLQ\RILQWHUFRUSRUDWHORDQVDQGLQYHVWPHQWV and terms of appointment of auditors of the 10. valuation of undertakings or assets of the Company, &RPSDQ\ ZKHUHYHULWLVQHFHVVDU\ 3. approval of payment to statutory auditors for any RWKHUVHUYLFHVUHQGHUHGE\WKHVWDWXWRU\DXGLWRUV HYDOXDWLRQ RI LQWHUQDO ÀQDQFLDO FRQWUROV DQG ULVN management systems 4. reviewing, with the management, the annual ÀQDQFLDO VWDWHPHQWV DQG DXGLWRU·V UHSRUW WKHUHRQ 12. reviewing, with the management, performance of before submission to the Board for approval, with statutory and internal auditors, adequacy of the particular reference to: LQWHUQDOFRQWUROV\VWHPV

Annual Report 2016-17 68 13. reviewing the adequacy of internal audit function, 26. statement of deviations: if any, including the structure of the internal audit a) quarterly statement of deviation(s) including GHSDUWPHQW VWDIÀQJ DQG VHQLRULW\ RI WKH RIÀFLDO report of monitoring agency, if applicable, heading the department, reporting structure submitted to stock exchange(s) in terms of FRYHUDJHDQGIUHTXHQF\RILQWHUQDODXGLW 5HJXODWLRQ

GLVFXVVLRQ ZLWK LQWHUQDO DXGLWRUV RI DQ\ VLJQLÀFDQW b) annual statement of funds utilized for purposes ÀQGLQJVDQGIROORZXSWKHUHRQ other than those stated in the offer document UHYLHZLQJWKHÀQGLQJVRIDQ\LQWHUQDOLQYHVWLJDWLRQV / prospectus / notice in terms of Regulation by the internal auditors into matters where there is 32(7). suspected fraud or irregularity or a failure of internal 7KH &KDLUSHUVRQ RI WKH $XGLW &RPPLWWHH FRQÀUPHG WR control systems of a material nature and reporting the Board that the Committee has carried out the role WKHPDWWHUWRWKH%RDUG assigned to it during the year under review. 16. discussion with statutory auditors before the audit Meetings commences, about the nature and scope of audit as ZHOODVSRVWDXGLWGLVFXVVLRQWRDVFHUWDLQDQ\DUHDRI 'XULQJ)<WKH$XGLW&RPPLWWHHPHWÀYHWLPHV FRQFHUQ – April 26 & 27, 2016, July 19 & 20, 2016, October 18 & 19, 2016, January 3, 2017 and January 17 & 18, 2017. The 17. to look into the reasons for substantial defaults in details of meetings and attendance are given in Table 4. the payment to the depositors, debenture holders, VKDUHKROGHUV LQ FDVH RI QRQSD\PHQW RI GHFODUHG Table 4: Audit Committee - meetings and attendance GLYLGHQGV DQGFUHGLWRUV Sr. Name of the No. of No. of 18. to review the functioning of the whistle blower No. Committee Member meetings meetings PHFKDQLVP held during attended DSSURYDO RI DSSRLQWPHQW RI FKLHI ÀQDQFLDO RIÀFHU the tenure DIWHU DVVHVVLQJ WKH TXDOLÀFDWLRQV H[SHULHQFH DQG 1 Ms. Lila Poonawalla – 55 EDFNJURXQGHWFRIWKHFDQGLGDWH Chairperson

20. carrying out any other function as is mentioned in 2 Mr. S. B. (Ravi) Pandit 55 WKHWHUPVRIUHIHUHQFHRIWKHDXGLWFRPPLWWHH 3 Mr. Adi Engineer 55

PDQDJHPHQW GLVFXVVLRQ DQG DQDO\VLV RI ÀQDQFLDO B. Nomination and Remuneration (HR) Committee FRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV Composition VWDWHPHQW RI VLJQLÀFDQW UHODWHG SDUW\ WUDQVDFWLRQV 7KH&RPSDQ\KDVVHWXSD1RPLQDWLRQDQG5HPXQHUDWLRQ DVGHÀQHGE\WKHDXGLWFRPPLWWHH VXEPLWWHGE\ (HR) Committee. The Committee consists of two PDQDJHPHQW ,QGHSHQGHQW 'LUHFWRUV RQH 1RQ([HFXWLYH 'LUHFWRU and one Executive Director. Mr. Adi Engineer, chairs this 23. management letters / letters of internal control Committee, Ms. Lila Poonawalla, Mr. S. B. (Ravi) Pandit ZHDNQHVVHVLVVXHGE\WKHVWDWXWRU\DXGLWRUV and Mr. Sanjay Kukreja are the other members of the 24. internal audit reports relating to internal control Committee. ZHDNQHVVHV Role and objectives 25. the appointment, removal and terms of remuneration The role and objectives of the Committee, as provided of the chief internal auditor shall be subject to review under Regulation 19(4) read with Schedule II of the SEBI E\WKHDXGLWFRPPLWWHH /2'5 5HJXODWLRQVDQGDVGHÀQHGE\WKH%RDUGRI the Directors of the Company, are as under:

Annual Report 2016-17 69 1. formulation of the criteria for determining and Mr. S. B. (Ravi) Pandit and Mr. Kishor Patil are the TXDOLÀFDWLRQVSRVLWLYHDWWULEXWHVDQGLQGHSHQGHQFH other members of the Committee. The meetings of the of a director and recommend to the Board of Committee are held to review and resolve only those Directors a policy relating to, the remuneration of cases which are pending for action for more than normal the directors, key managerial personnel and other processing period. The details of complaints received, HPSOR\HHV solved and pending from the shareholders / investors are given elsewhere in this Annual Report. The monthly 2. formulation of criteria for evaluation of performance review of the activities of Registrar & Share Transfer Agent RILQGHSHQGHQWGLUHFWRUVDQGWKHERDUGRIGLUHFWRUV is undertaken regularly by the CFO and the Company 6HFUHWDU\ZKRLVWKH&RPSOLDQFH2IÀFHURIWKH&RPSDQ\ GHYLVLQJDSROLF\RQGLYHUVLW\RI%RDUGRI'LUHFWRUV 7KH &RPSDQ\ KDV D GHGLFDWHG HPDLO DGGUHVV LGHQWLI\LQJ SHUVRQV ZKR DUH TXDOLÀHG WR EHFRPH [email protected] for communicating shareholders’ directors and who may be appointed in senior grievances. management in accordance with the criteria laid down, and recommend to the Board of Directors Role and objectives WKHLUDSSRLQWPHQWDQGUHPRYDO The role and objectives of the Committee as provided under Regulation 20(4) read with Schedule II of the SEBI 5. decide whether to extend or continue the term of /2'5 5HJXODWLRQV DQG DV GHÀQHG E\ WKH %RDUG appointment of the independent director, on the of Directors of the Company is to consider and resolve basis of the report of performance evaluation of the grievances of the security holders of the Company independent directors. including complaints related to transfer of shares, QRQUHFHLSW RI DQQXDO UHSRUW QRQUHFHLSW RI GHFODUHG Meetings dividends and approval of matter relating share transfers 7KH &RPPLWWHH PHW ÀYH WLPHV GXULQJ WKH \HDU ² $SULO except those which have been delegated to the Registrar 26, 2016, July 19, 2016, October 18, 2016, January 17, & Share Transfer Agent. 2017 and February 17, 2017. The details of meetings and Meetings attendance are given in Table 5. During the year, one meeting of the Stakeholders Table 5: Nomination and Remuneration (HR) Committee - Relationship Committee was held on February 17, 2017. meetings and attendance The details of the meeting and attendance are given in Table 6. Sr. Name of the No. of No. of No. Committee Member meetings meetings Table 6: Stakeholders Relationship Committee – meetings held during attended* and attendance the tenure Sr. Name of the No. of No. of 1 Mr. Adi Engineer – 55 No. Committee Member meetings meetings Chairman held during attended 2 Ms. Lila Poonawalla 55 the tenure 3 Mr. S. B. (Ravi) Pandit 55 1 'U5$0DVKHONDU 11 4 Mr. Sanjay Kukreja* 52 Chairman 2 Mr. S. B. (Ravi) Pandit 11 * Including attendance by videoconference or teleconference. 3 Mr. Kishor Patil 11 C. Stakeholders Relationship Committee D. Quality Council Composition Composition The Board has formed a Stakeholders Relationship &RPPLWWHH WR ORRN LQWR VKDUHKROGHUUHODWHG PDWWHUV 7KH 4XDOLW\ &RXQFLO HQDEOHV WKH %RDUG WR IRFXV RQ Dr. R. A. Mashelkar is the Chairman of the Committee qualitative aspects of the operations of the Company and resolve customer issues proactively. This is chaired

Annual Report 2016-17 70 by Mr. B V R Subbu and the other members being Prof. Meetings Alberto Sangiovanni Vincentelli, Mr. Kishor Patil and Ms. During the year, the Council met once on February 18, Lila Poonawalla. 2017. The details of the meeting and attendance is given in Table 8. Role and objectives Table 8: Innovation Council – meeting and attendance 7KHUROHDQGREMHFWLYHVRIWKH&RXQFLODVGHÀQHGE\WKH Board of Directors of the Company, is as under: Sr. Name of the No. of No. of No. Committee Member meetings meetings To suggest measures to enhance quality and productivity held during attended and the means to optimize the use of the Company’s resources. the tenure 1 Dr. R. A. Mashelkar – 11 Meetings Chairman The Council has met twice during the year – July 19, 2 Ms. Lila Poonawalla 11 2016 and January 17, 2017. The details of meetings and 3 Mr. S. B. (Ravi) Pandit 11 attendance are given in Table 7. 4 Mr. Kishor Patil 11 Table 7: Quality Council - meetings and attendance 5 Prof. Alberto 11 Sangiovanni Vincentelli Sr. Name of the No. of No. of 6 Mr. B V R Subbu 10 No. Committee Member meetings meetings held during attended* F. ESOP Allotment Committee the tenure The Company has an ESOP Allotment Committee for 1 Mr. B V R Subbu – 22 allotment of shares against options exercised under the Chairman Company’s Employee Stock Option Plans (ESOPs). 2 Ms. Lila Poonawalla 22 Composition 3 Mr. Kishor Patil 22 Mr. S. B. (Ravi) Pandit is the Chairman of the Committee 4 Prof. Alberto 22 and Mr. Kishor Patil and Mr. Sachin Tikekar are the other members of the Committee. Sangiovanni Vincentelli* Role and objectives *Including attendance by videoconference or teleconference. 7KHUROHDQGREMHFWLYHVRIWKH&RPPLWWHHDVGHÀQHGE\ the Board of Directors of the Company, is as under: E. Innovation Council Allotment of shares against options exercised under the The Innovation Council of the Board advises the Company Company’s Employee Stock Option Plans (ESOP) and on matters related to innovation. In addition to the Employee stock Option Schemes (ESOS) and matters PHPEHUVRIWKH&RXQFLOH[WHUQDOH[SHUWVIURPWKHÀHOGV incidental thereto. of interest to the Company from innovation point of view, are also invited for the meetings of the Council. Meetings The Council suggests measures to encourage innovation KPIT Technologies Employees Welfare Trust (the Trust) within the Company and foster a culture of innovation is a trust formed for employee welfare activities, which amongst employees of the Company. The Council includes, administration of Company’s Employee Stock reviews the status of various innovation projects being Option Plan (“ESOP”) Schemes. As a part of its operations, implemented by the Company. The Council helps develop the Trust is allotted shares by the Company or it acquires a strategy around innovation, particularly with respect shares from open market and the Trust, in turn, sells WR FRPPHUFLDOL]DWLRQ RI WKH EHQHÀWV RI LQQRYDWLRQ 7he such shares in the course of administration of the ESOP Council also evaluates and rewards innovative ideas of the schemes. The holding of shares and the sale of shares employees. by the Trust, is done on behalf of the employees. As per provisions of Securities and Exchange Board of India 6KDUH %DVHG (PSOR\HH %HQHÀWV 5HJXODWLRQV WKH total number of shares under secondary acquisition held

Annual Report 2016-17 71 E\WKH7UXVWVKDOODWQRWLPHH[FHHGÀYHSHUFHQWRIWKH required. A comprehensive Enterprise Risk Management paid up equity capital. To comply with these provisions, report is provided separately in this Report. shares are allotted during the year under ESOP scheme by way of transfer of shares from trust to concerned Composition employee and no fresh allotments were made by ESOP Committee. Thus, no meetings were held during the year. Ms. Lila Poonawalla is the Chairperson of the Committee and Mr. Adi Engineer and Mr. S. B. (Ravi) Pandit are the G. Corporate Social Responsibility (CSR) Committee other members of the Committee.

The Company has set up a Corporate Social Responsibility Role and objectives (CSR) Committee to oversee the discharge of Corporate Social Responsibility obligations, as required by Section 7KHUROHDQGREMHFWLYHVRIWKH&RPPLWWHHDVGHÀQHGE\ 135 of the Companies Act, 2013 and the relevant rules. the Board of Directors of the Company, is as under: The Committee consists of three directors including one Independent Director. To monitor & review the Risk Management Plan of the Company. Composition Mr. S. B. (Ravi) Pandit is the Chairman of the Committee. Meetings Mr. Sachin Tikekar and Mr. Adi Engineer are the other The Committee met twice during the year on July 19, members of the Committee. 2016 and February 17, 2017. The details of meetings and Role and objectives attendance are given in Table 10.

7KHUROHDQGREMHFWLYHVRIWKH&RPPLWWHHDVGHÀQHGE\ Table 10: Risk Management Committee - meetings and the Board of Directors of the Company, are as under: attendance

1. formulation and recommendation of CSR policy to Sr. Name of the No. of No. of WKH%RDUG No. Committee Member meetings meetings LGHQWLÀFDWLRQ RI DFWLYLWLHV WR EH XQGHUWDNHQ E\ WKH held during attended &RPSDQ\ the tenure 3. recommendation of amount of expenditure on CSR 1 Ms. Lila Poonawalla – 22 DFWLYLWLHV Chairperson 4. monitor the CSR policy from time to time. 2 Mr. Adi Engineer 22 3 Mr. S. B. (Ravi) Pandit 22 Meetings The Committee met twice during the year on April 26, 2016 and October 18, 2016. The details of meetings and III. SUBSIDIARY COMPANIES attendance are given in Table 9. 7KH &RPSDQ\ GRHV QRW KDYH DQ\ PDWHULDO QRQOLVWHG Indian Subsidiary company, as per the criteria given in Table 9: CSR Committee - meetings and attendance Regulation 16 of SEBI (LODR) Regulations, 2015. Sr. Name of the No. of No. of Brief details of the Company’s subsidiaries, including No. Committee Member meetings meetings VWHSGRZQVXEVLGLDULHVDUHJLYHQLQWKH%RDUG·V5HSRUW held during attended The updates of major decisions of the unlisted subsidiary the tenure companies are regularly presented before the Audit 1 Mr. S. B. (Ravi) Pandit – 22 Committee and the Board. Chairman 2 Mr. Adi Engineer 22 Following are the key matters relating to subsidiaries which are regularly taken up in the Audit Committee / 3 Mr. Sachin Tikekar 22 Board meeting: H. Risk Management Committee 0LQXWHV RI DOO WKH PHHWLQJV RI VXEVLGLDULHV KHOG LQ The Company has an integrated approach to managing WKHSUHYLRXVTXDUWHU the risks inherent in the various aspects of business. As a 5HYLHZRIWKHÀQDQFLDOVWDWHPHQWVWKHLQYHVWPHQWV part of this approach, the Company’s Board is responsible PDGHE\WKHVXEVLGLDULHV for monitoring risk levels according to various parameters and ensuring implementation of mitigation measures, if

Annual Report 2016-17 72 0DMRU GHDOLQJV RI VXEVLGLDULHV· LQYHVWPHQW À[HG Table 11: Remuneration paid to Executive Directors in FY DVVHWVORDQVHWF 2016-17 ` 6WDWHPHQW RI DOO VLJQLÀFDQW WUDQVDFWLRQV DQG (Amount in million) DUUDQJHPHQWV Name of Director Mr. S. B. Mr. Kishor Mr. Sachin / Remuneration (Ravi) Patil Tikekar* &RPSOLDQFHVE\VXEVLGLDULHVZLWKDOODSSOLFDEOHODZV Details Pandit of that country. Chairman CEO & Whole The Company has formulated a policy for determining Managing - time ‘material subsidiaries’ and the said policy has been Director Director uploaded on the Company’s website (http://www.kpit. Salary 11.54 8.04 9.10 FRPFRPSDQ\LQYHVWRUVFRUSRUDWHJRYHUQDQFH PF 1.48 0.70 0.33 IV. DISCLOSURES Leave Encashment 0.32 0.22 0.25 Variable Performance 19.84 18.39 15.75 A. Related Party Transactions Incentive The Company has formulated a policy on materiality Perquisites 0.70 of Related Party Transactions and also on dealing with Related Party Transactions and the same has been Bonus 0.02 uploaded on the Company’s website (http://www.kpit. Notice Period 6 months 6 months 6 months FRPFRPSDQ\LQYHVWRUVFRUSRUDWHJRYHUQDQFH 7KH Severance fees Notice pay Notice pay Notice pay related party transactions are placed before the Audit Committee and the Board on a quarterly basis for their Total 33.18 28.05 25.45 approval / noting as the case may be. There have been no *Does not include USD 4,800 paid to Mr. Sachin Tikekar by KPIT PDWHULDOO\VLJQLÀFDQWUHODWHGSDUW\WUDQVDFWLRQVSHFXQLDU\ ,QIRV\VWHPV,QFRUSRUDWHG86$GXULQJ)< transactions or relationships between the Company and Note: Managerial remuneration excludes provision for gratuity, its Directors, management, subsidiary or relatives except as separate actuarial valuation for the directors is not available. IRUWKRVHGLVFORVHGLQWKHÀQDQFLDOVWDWHPHQWVIRUWKH\HDU ended March 31, 2017. Details of all material transactions Under Section 197 of the Companies Act, 2013, a Director with related parties have been disclosed quarterly to the who is neither in the whole time employment of the stock exchanges along with the compliance report on &RPSDQ\ QRU D 0DQDJLQJ 'LUHFWRU ¶1RQ([HFXWLYH corporate governance. Directors’), may be paid remuneration by way of commission if the members of the Company, authorize B. Disclosure of Accounting Treatment such payment. However, the remuneration paid to all VXFK 1RQ([HFXWLYH 'LUHFWRUV WDNHQ WRJHWKHU VKRXOG The Company has adopted the prescribed accounting QRWH[FHHGRIWKHQHWSURÀWRIWKH&RPSDQ\LQDQ\ standards i.e. Indian Accounting Standards (Ind AS), for UHOHYDQW ÀQDQFLDO \HDULI WKH &RPSDQ\ KDV D 0DQDJLQJ SUHSDUDWLRQRIÀQDQFLDOVWDWHPHQWVGXULQJWKH\HDU RU D :KROHWLPH 'LUHFWRU RU PDQDJHU 7KH %RDUG RI Directors of the Company has approved a commission of C. Remuneration of Directors ` 10.50 (previous year `PLOOLRQ WRWKH1RQ([HFXWLYH Within the limits prescribed under the Companies Act, 'LUHFWRUVRIWKH&RPSDQ\IRUWKHÀQDQFLDO\HDU 2013 and by the shareholders’ resolutions, the Nomination 7KHUH LV QR RWKHU UHPXQHUDWLRQ WR WKH 1RQ([HFXWLYH and Remuneration (HR) Committee determines and Directors, except sitting fees for the meetings attended by recommends to the Company’s Board the remuneration WKHP7KHGHWDLOVRIUHPXQHUDWLRQWRWKH1RQ([HFXWLYH SD\DEOH WR ([HFXWLYH DQG 1RQ([HFXWLYH 'LUHFWRUV DQG 'LUHFWRUVIRUWKHÀQDQFLDO\HDUDUHJLYHQLQ7DEOH thereafter the Board considers the same for approval. 12. During the year under review, no ESOPs were granted to the Directors. The details of remuneration paid to the Executive Directors of the Company are given in Table 11.

Annual Report 2016-17 73 Table 12: Remuneration to Non-Executive Directors striving to strengthen the reporting system to take care of the continuously evolving compliance scenario. (Amount in ` million) Name of Director Commission Sitting Fees F. Reconciliation of Share Capital Ms. Lila Poonawalla 2.23 0.33 As stipulated by the Securities and Exchange Board of >&KDLUSHUVRQ$XGLW India (SEBI), a Practicing Company Secretary carries out Committee and Risk the audit of Reconciliation of Share Capital and provides Management Committee ] a report to reconcile the total admitted capital with the Dr. R. A. Mashelkar 1.850.10 National Securities Depository Limited (NSDL) and Central [Chairman – Innovation Depository Services (India) Limited (CDSL) and the total Council and Stakeholders issued and listed capital. This reconciliation is carried out Relationship Committee] every quarter and the report thereon is submitted to the Mr. Adi Engineer 2.16 0.30 stock exchanges and is also placed before the Board. >&KDLUPDQ1RPLQDWLRQ 7KH $XGLW LQWHUDOLD FRQÀUPV WKDW WKH WRWDO OLVWHG DQG & Remuneration (HR) paid up capital of the Company is in agreement with the Committee] aggregate of the total number of shares in dematerialized Prof. Alberto Sangiovanni 2.65 0.11 form (held with NSDL and CDSL) and total number of Vincentelli shares in physical form. Mr. B V R Subbu [Chairman 1.61 0.12 G. Shareholders ²4XDOLW\&RXQFLO@ i) Disclosure regarding appointment or re-appointment TOTAL 10.50 0.96 of Directors Basis for remuneration paid to Non-Executive Directors According to the provisions of the Companies Act, Remuneration Board Committee Committee DW OHDVW WZRWKLUG RI WKH 1RQ,QGHSHQGHQW 'LUHFWRUV DUH OLDEOH WR UHWLUH E\ URWDWLRQ 2QHWKLUG member Chairman member of the Directors who are liable to retire by rotation, Sitting Fees ` ` ` SHU retire at every Annual General Meeting and, if per meeting per meeting meeting HOLJLEOH DQG ZLOOLQJ PD\ EH UHDSSRLQWHG E\ WKH Commission The total amount of commission to be shareholders. Accordingly, Mr. S. B. (Ravi) Pandit SDLG WR WKH 1RQ([HFXWLYH 'LUHFWRUV IRU retires at the forthcoming Annual General Meeting )< LV ` 10.50. This is distributed of the Company and being eligible, offers himself DPRQJWKH1RQ([HFXWLYH'LUHFWRUVRQWKH IRU UHDSSRLQWPHQW 7KH %RDUG KDV UHFRPPHQGHG basis of their chairmanship / membership his reappointment. Detailed resume of Mr. S. B. of Board committees, duration of their (Ravi) Pandit is provided in ‘Additional Shareholders directorship during the year and their Information’ section in this Annual Report. general contribution to the Company ii) Communication to shareholders outside board / committee meetings. 7KH &RPSDQ\·V TXDUWHUO\ ÀQDQFLDO UHVXOWV LQYHVWRU D. Management Discussion & Analysis updates and other investor related information A detailed Management Discussion and Analysis is given are posted on the Company’s website (www.kpit. as a separate section in this Annual Report. During the FRP 7KHTXDUWHUO\ÀQDQFLDOUHVXOWVRIWKH&RPSDQ\ were published in Financial Express and Loksatta. \HDUWKHUHKDYHEHHQQRPDWHULDOÀQDQFLDODQGFRPPHUFLDO transactions made by the management, where they had Financial results and all material information are also regularly provided to the Stock Exchanges as per the SHUVRQDO LQWHUHVW FRQÁLFWLQJ ZLWK WKH LQWHUHVW RI WKH Company at large. requirements of the SEBI (LODR) Regulations, 2015. Any presentation made to analysts and others are E. Legal Compliance Reporting also posted on the Company’s website. The Company has installed a compliance tool which The details of correspondence received from the provides automated Statutory Compliance Report from shareholders / investors during the period April 1, various functions on PAN India basis for compliance with 2016 to March 31, 2017, are given in the ‘Additional laws applicable to the respective function. A consolidated Shareholder Information’ section in this Annual report on compliance with applicable laws is presented Report. to the Board every quarter. The Company is constantly

Annual Report 2016-17 74 iii) General body meetings Table 13: Details in respect of the last three Annual General Meetings (AGMs) of the Company Date of the Venue of the meeting Time Special Resolution Passed meeting(year) of the meeting July 25, 2014 KPIT Technologies Ltd. Auditorium SDB II, 35 10.30 A.M. 1) Appointment of Mr. S. B. (Ravi) Pandit as a 5DMLY *DQGKL ,QIRWHFK 3DUN 3KDVH I, :KROHWLPH'LUHFWRU 0,'&+LQMDZDGL3XQH 5HDSSRLQWPHQW RI 0U .LVKRU 3DWLO DV &KLHI ([HFXWLYH2IÀFHUDQG0DQDJLQJ'LUHFWRU 3) Revision of terms and conditions of appointment of Mr. Sachin Tikekar, Whole time Director. 4) Approval for entering into contract with (XURÀQDQFH 7UDLQLQJ 3ULYDWH /LPLWHG IRU availing marketing consultancy services. 5) Increase in the number of directors from ÀIWHHQ WRHLJKWHHQ DQGFRQVHTXHQW alteration of Articles of Association of the Company. 6) Approval for Foreign Institutional Investors (FIIs) to collectively hold not more than 80% of equity shares of the Company. August 19, 2015 KPIT Technologies Ltd. Auditorium SDB II, 35 10.30 A.M. 3D\PHQW RI &RPPLVVLRQ WR 1RQ([HFXWLYH 5DMLY *DQGKL ,QIRWHFK 3DUN 3KDVH I, Director. 0,'&+LQMDZDGL3XQH 2) Approval of KPIT Technologies Limited Employee Stock Options Plan 2015 and grant of Stock Options to the employees of the Company. 3) Grant of Stock Options to the employees of the Subsidiary Company(s) of the Company under KPIT Technologies Limited Employee Stock Options Plan 2015. 4) Approval of Acquisition of Secondary Shares through Employee Welfare Trust for the implementation of Employee Stock Option Plans of the Company. 5) Approval of extension of exercise period under Employee Stock Option Plan 2004. 6) Approval of extension of exercise period under Employee Stock Option Plan 2006. 7) Approval of extension of exercise period under Employee Stock Option Plan 2014. 8) To approve a scheme for provision of money by the Company to employee welfare trust / trustees for purchase of or subscription for IXOO\SDLGXSVKDUHVRIWKH&RPSDQ\IRUWKH EHQHÀWRIHPSOR\HHVXQGHUYDULRXV(PSOR\HH Stock Option Plans. 9) Adoption of new set of Articles of Association.

August 24, 2016 KPIT Technologies Ltd. Auditorium SDB II, 35 10.30 A.M. 5HDSSRLQWPHQWRI0U6DFKLQ7LNHNDU:KROH 5DMLY *DQGKL ,QIRWHFK 3DUN 3KDVH I, WLPH'LUHFWRUIRUDSHULRGRIÀYH\HDUV 0,'&+LQMDZDGL3XQH

Annual Report 2016-17 75 iv) Special Resolution through Postal Ballot VII. COMPLIANCE WITH MANDATORY During the year, the Company has not passed any 5(48,5(0(176 special resolution through postal ballot. The Company has complied with the mandatory v) The details of Investors’ / Shareholders’ Grievance requirements of the SEBI (LODR) Regulations, 2015. Committee are given in ‘Additional Shareholders Information’ section in this Report. VIII. C O M P L I A N C E A G A I N S T ',6&5(7,21$5<5(48,5(0(176 vi) The details of Share transfer system is given in OF THE SEBI (LODR) REGULATIONS, ‘Additional Shareholders Information’ section in this 2015 Annual Report. 1. The Company has appointed different persons for the post of Chairman and Managing Director / Chief vii) None of the Directors is related to any other Director. ([HFXWLYH2IÀFHU H. Dividend Distribution Policy 2. The Company prepares quarterly investor updates Pursuant to the SEBI (LODR) Regulations, 2015, the ZKLFKFRYHUVRSHUDWLRQDOGHWDLOVDSDUWIURPÀQDQFLDO Company has formulated Dividend Policy to state the details which are uploaded on the website of the guiding principles of dividend declaration by the Company Company and stock exchanges. Copies of the same and the same has been uploaded on the website of the are being provided on request. Company (https://www.kpit.com/company/investors/ 3. The Internal Auditor presents the internal audit FRUSRUDWHJRYHUQDQFH report to the Audit Committee.

V. CEO and CFO CERTIFICATION Training of Board members During the year, the Board members were provided a deep As required by Regulation 17(8) of the SEBI (LODR) and thorough insight to the business model of the Company 5HJXODWLRQV WKH &(2 DQG &)2 FHUWLÀFDWH WR WKH through detailed presentations on the operational aspects of Company’s Board is annexed to this Report. the Company’s business. At every Board meeting, there is a detailed business presentation made which is useful to the VI. COMPLIANCE Directors in understanding the business. The presentation is As required by Regulation 34(3) read with Schedule V of made by the business leader so that the Directors are able to WKH6(%, /2'5 5HJXODWLRQVWKH$XGLWRUV·FHUWLÀFDWH connect with the leader and also ask him related questions. on corporate governance is annexed to this Report. Efforts are also made to acquaint and train the Board members about the emerging trends in the industry. The internal Further, during the last three (3) years, there have been newsletters of the Company are regularly shared with the Board no penalties, strictures imposed on the Company by the PHPEHUVWRNHHSWKHPXSWRGDWHZLWKWKHGHYHORSPHQWVLQ stock exchanges and other statutory authorities, on any the Company, on a continuing basis. matter relating to capital markets. Corporate Sustainability Report Lastly, the Company has also made the necessary The Company has prepared a Corporate Sustainability Report GLVFORVXUHVDVUHTXLUHGLQVXESDUD WR RI3DUW&RI giving detailed information of the Company’s efforts towards Schedule V of the SEBI (LODR) Regulations, 2015. managing sustainable growth. The report can be accessed on the Company’s website.

Annual Report 2016-17 76 Business Responsibility Report DECLARATION OF THE CHIEF EXECUTIVE Pursuant to the provisions of Regulation 34 of the SEBI (LODR) OFFICER & MANAGING DIRECTOR Regulations, 2015, the Company has prepared a Business This is to certify that the Company has laid down code of Responsibility Report and the same has been given on page conduct for all the Board members and senior management no. 107 in this Annual Report. personnel of the Company and the same is uploaded on the Secretarial Standards issued by the Institute of Company website of the Company www.kpit.com. Secretaries of India )XUWKHUFHUWLÀHGWKDWWKHPHPEHUVRIWKH%RDUGRI'LUHFWRUV DQG VHQLRU PDQDJHPHQW SHUVRQQHO KDYH DIÀUPHG WKH The Institute of Company Secretaries of India (‘ICSI’), one of the compliance with the code applicable to them during the year premier professional bodies in India, has issued 10 Secretarial ended March 31, 2017. Standards. Out of which 2 Secretarial Standards have been made mandatory as per the provisions of the Companies Act, Pune Kishor Patil 2013. The Company adheres by these standards. April 26, 2017 CEO & Managing Director

$XGLWRUV·FHUWLÀFDWHRQ&RUSRUDWH*RYHUQDQFH To the Members of KPIT Technologies Limited

We have examined the compliance of the conditions of Corporate Governance by KPIT Technologies Limited (“the Company”) for the year ended on 31 March 2017, as stipulated in Chapter IV of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate *RYHUQDQFH,WLVQHLWKHUDQDXGLWQRUDQH[SUHVVLRQRIRSLQLRQRQWKHÀQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Regulations, as applicable.

:HIXUWKHUVWDWHWKDWVXFKFRPSOLDQFHLVQHLWKHUDQDVVXUDQFHDVWRWKHIXWXUHYLDELOLW\RIWKH&RPSDQ\QRUWKHHIÀFLHQF\RU effectiveness with which the Management has conducted the affairs of the Company.

For B S R & Co. LLP Chartered Accountants )LUP5HJLVWUDWLRQ1R::

Vijay Mathur Partner Membership No.047483

Place: Pune Date: 26 April 2017

Annual Report 2016-17 77 &KLHI([HFXWLYH2IÀFHU &(2 DQG&KLHI)LQDQFLDO2IÀFHU &)2 &HUWLÀFDWLRQ We, Kishor Patil, CEO & Managing Director and $QLO3DWZDUGKDQ&KLHI)LQDQFLDO2IÀFHU of KPIT Technologies Limited (“the &RPSDQ\µ WRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIFHUWLI\WKDW $ :HKDYHUHYLHZHGÀQDQFLDOVWDWHPHQWV FRQVROLGDWHGDQGVWDQGDORQH IRUWKH\HDU$SULOWR0DUFKDQGWRWKH best of our knowledge and belief:

(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might EHPLVOHDGLQJ

(2) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during the year i.e. April 1, 2016 to March 31, 2017 which are fraudulent, illegal or violative of the Company’s code of conduct.

& :HDFFHSWUHVSRQVLELOLW\IRUHVWDEOLVKLQJDQGPDLQWDLQLQJLQWHUQDOFRQWUROVIRUÀQDQFLDOUHSRUWLQJDQGWKDWZHKDYHHYDOXDWHGWKH HIIHFWLYHQHVVRILQWHUQDOFRQWUROV\VWHPVRIWKH&RPSDQ\SHUWDLQLQJWRÀQDQFLDOUHSRUWLQJDQGZHKDYHGLVFORVHGWRWKHDXGLWRUV DQGWKHDXGLWFRPPLWWHHGHÀFLHQFLHVLQWKHGHVLJQRURSHUDWLRQRIVXFKLQWHUQDOFRQWUROVLIDQ\RIZKLFKZHDUHDZDUHDQGWKH VWHSVZHKDYHWDNHQRUSURSRVHWRWDNHWRUHFWLI\WKHVHGHÀFLHQFLHV

D. We have indicated to the auditors and the Audit Committee

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Annual Report 2016-17 78 $GGLWLRQDO6KDUHKROGHU,QIRUPDWLRQ

1. 5HJLVWHUHGDQG&RUSRUDWH2IÀFH : 5DMLY*DQGKL,QIRWHFK3DUN0,'&3KDVHI, Hinjawadi, Pune – 7HO1R)D[1R Website: www.kpit.com. 2. Date of Incorporation : December 28, 1990 3. Registration No./CIN :L72200PN1990PLC059594 4. Date, Time and Venue of 26th AGM : August 23, 2017, 10.30 a.m. at Auditorium, KPIT Campus, 35 & 36, Rajiv *DQGKL,QIRWHFK3DUN3KDVHI, MIDC, Hinjawadi, Pune – 411057. The Notice of the Annual General Meeting is being sent to the Members along with this Annual Report. 5. Book Closure Dates : August 12, 2017 to August 23, 2017 (both days inclusive) 6. Dividend Payment Date : After August 23, 2017, but within the statutory time limit of 30 days, subject to shareholders’ approval. 7. Financial Year : $SULO0DUFK 8. Financial Calendar for 2017-2018 (tentative and subject to change) )LQDQFLDO UHSRUWLQJ IRU WKH ÀUVW TXDUWHU HQGLQJ : July 19, 2017 June 30, 2017 Financial reporting for the second quarter ending : October 31, 2017 September 30, 2017 Financial reporting for the third quarter ending : January 24, 2018 December 31, 2017 Financial reporting for the last quarter and year : April 25, 2018 ending March 31, 2018 Annual General Meeting for the year ending : August, 2018 March 31, 2018 9. The shares of the Company are listed on the following Stock Exchanges: National Stock Exchange of India Limited : ([FKDQJH 3OD]D 3ORW 1R & * %ORFN %DQGUD.XUOD &RPSOH[ Bandra (E), Mumbai – 400 051. NSE Code : KPIT BSE Limited : Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001. BSE Code: 532400 ISIN Number of the Company : INE836A01035

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10. Shareholders are requested to send all share transfers and correspondence relating to shares, dividend etc. to our Registrar & Share Transfer Agent at:

Link Intime India Private Limited, Contact Person: Mr. Bhagavant Sawant, Block No. 202, Akshay Complex, Off Dhole Patil Road, 1HDU*DQHVK7HPSOH3XQH²3KRQH(PDLO[email protected]. You can also contact 0V6QHKD3DGYH&RPSDQ\6HFUHWDU\DQG&RPSOLDQFH2IÀFHU1R([WQ²)D[1R (PDLO[email protected], in case you need any further assistance. For any kind of grievance and for their speedy redressal, the shareholders may send their grievances to [email protected].

11. Share transfer system:

The share transfer activities are carried out by our Registrar & Share Transfer Agent, the details of which are given above. The GRFXPHQWVDUHUHFHLYHGDWWKHLURIÀFHLQ0XPEDL3XQHDQGDOVRDWWKH5HJLVWHUHG2IÀFHRIWKH&RPSDQ\7KHVKDUHWUDQVIHUV DUHFDUULHGRXWZLWKLQDSHULRGRIÀIWHHQGD\VIURPWKHGDWHRIORGJPHQWSURYLGHGDOOWKHSDSHUVUHFHLYHGDUHLQRUGHU

Annual Report 2016-17 79 12. Dematerialization of shares and liquidity:

As on March 31, 2017, 99.41% of the total issued share capital was held in electronic form with National Securities Depository Limited and Central Depository Services (India) Limited.

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KPIT Technologies Employees Welfare Trust (“the Trust”) is a trust formed for employee welfare activities, which includes, administration of Company’s Employee Stock Option Plan (“ESOP”) Schemes. As part of its operations, the Trust is allotted shares by the Company or it acquires shares from open market and the Trust, in turn, sells such shares for administration of the ESOP schemes. The holding of shares and the sale of shares by the Trust, is done on behalf of the employees. As per provisions RI6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6KDUH%DVHG(PSOR\HH%HQHÀWV 5HJXODWLRQVWKHWRWDOQXPEHURIVKDUHVXQGHU VHFRQGDU\DFTXLVLWLRQKHOGE\WKH7UXVWVKDOODWQRWLPHH[FHHGÀYHSHUFHQWRIWKHSDLGXSHTXLW\FDSLWDO7RFRPSO\ZLWKWKHVH provisions, shares are allotted during the year under ESOP schemes by way of transfer of shares from trust to employee and no fresh allotments were made by ESOP Committee during the year.

14. Shareholding Pattern as on March 31, 2017: Category No. of shares held % of total share capital Promoters 37,391,122 18.93 Public 150,802,276 76.36 Mutual Funds 5,044,746 2.56 Foreign Institutional Investors 25,555,066 12.94 Foreign Portfolio Investors 76,450,920 38.71 Bodies Corporate 3,905,711 1.98 Foreign Company 7,776,000 3.94 1RQ5HVLGHQW,QGLDQ 2,585,808 1.31 Others 29,484,025 14.92 Non-Promoter – Non-Public 9,305,344 4.71 TOTAL 197,498,742 100.00

15. As on March 31, 2017, the top ten shareholders of the Company were as under: Sr. Name of the Shareholder No. of % of total paid Category No. Shares held up share capital 1 3URÀFLHQW)LQVWRFN//3 28,609,78214.49 Promoter 2 Warhol Limited 19,483,674 9.87 Foreign Institutional Investor 3 KPIT Technologies Employees Welfare Trust 9,305,344 4.71 1RQ3URPRWHU1RQ3XEOLF 4 )LGHOLW\3XULWDQ7UXVW)LGHOLW\/RZ3ULFHG6WRFN)XQG 9,000,000 4.56 Foreign Institutional Investor 5 Van Dyck 7,776,000 3.94 Foreign Company 6 New Horizon Opportunities Master Fund 6,500,000 3.29 Foreign Portfolio Investor (Corporate) 7 Acacia Partners, LP 4,800,000 2.43 Foreign Portfolio Investor (Corporate) 8 Acacia Institutional Partners, LP 4,597,575 2.33 Foreign Portfolio Investor (Corporate) 9 Acacia Conservation Fund LP 3,430,056 1.74 Foreign Portfolio Investor (Corporate) 10 Smallcap World Fund, Inc 3,036,444 1.54 Foreign Portfolio Investor (Corporate) TOTAL 96,538,875 48.90

Annual Report 2016-17 80 16. Distribution Schedule as on March 31, 2017:

Quantity of Shares Shareholders Face Value of % From - To Number % shares held (`) 56,597 96.99 27,064,764 6.85 833 1.43 61,81,934 1.57 3840.66 5,828,774 1.48 105 0.18 2,598,852 0.66 96 0.16 3,471,262 0.88 35 0.06 1,598,200 0.40 108 0.19 79,49,3862.01 1,00,001 & above 193 0.33 340,304,312 86.15 TOTAL 58,351 100.00 394,997,484 100.00

17. Monthly high / low and average of KPIT’s share prices on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE)

NSE BSE Total Volume High Low Average Volume High Low Average Volume NSE + BSE April ‘16 163.70 141.20 151.31 12,246,408 163.50 141.20 151.15 1,863,593 14,110,001 May ‘16 182.00 156.30 164.19 14,447,632 181.80 156.45 163.96 1,717,179 16,164,811 June ‘16 196.85 172.85182.02 25,327,194 196.60 173.10 181.92 3,103,933 28,431,127 July ‘16 166.45 130.60 142.50 38,739,821 166.60 130.55 142.36 5,238,565 43,978,386 Aug ‘16 138.00 125.05 129.76 19,823,875 137.90 125.10 129.79 2,558,68122,382,556 Sept ‘16 136.70 122.00 129.72 19,585,238 126.20 122.60 129.67 2,036,539 21,621,777 Oct ‘16 147.30 125.10 136.02 27,020,066 144.65 105.55 135.76 3,436,054 3,529,888 Nov ‘16 143.90 121.05 130.51 12,876,108 143.90 121.30 130.56 1,679,621 14,555,729 Dec ‘16 141.00 128.70 134.37 10,537,210 141.00 129.10 134.35 1,521,217 12,058,427 Jan ‘17 146.80128.80 137.77 16,263,071 146.90 129.30 137.71 2,061,930 12,599,140 Feb ‘17 144.00 128.10 133.61 9,631,651 143.70 128.30 133.52 838,892 10,470,543 Mar ‘17 142.00 129.30 132.92 13,504,489 142.00 129.40 132.92 5,334,002 18,838,491

18. Share performance chart of the Company in comparison to BSE Sensex and Nifty:

KPIT share price at BSE v/s BSE Sensex

35000 200

150 25000

100

BSE Sensex 15000

50 T share price BSE (Closing) T share I KP

5000 0 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Months Sensex KPIT Price

Annual Report 2016-17 81 KPIT share price at NSE v/s Nifty

9500 250

9000 200

8500 150 Nifty 8000 100 T share price NSE (Closing) T share I 7500 50 KP

7000 0 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17

Months Nifty KPIT Price

19. Details of dividend in the Unpaid / Unclaimed Dividend Accounts as on March 31, 2017 : (` in million) Year Balance Date of completion of 7 years* )RUWKHÀQDQFLDO\HDU 0.18 August 19, 2017 )RUWKHÀQDQFLDO\HDU 0.17 August 11, 2018 )RUWKHÀQDQFLDO\HDU 0.33 August 29, 2019 )RUWKHÀQDQFLDO\HDU 0.50 August 15, 2020 )RUWKHÀQDQFLDO\HDU 1.53 August 28, 2021 )RUWKHÀQDQFLDO\HDU 1.78 September 22, 2022 )RUWKHÀQDQFLDO\HDU ,QWHULP 0.70 May 4, 2023 )RUWKHÀQDQFLDO\HDU )LQDO 0.64 September 27, 2023

During the year, the Company transferred an amount of `EHLQJWKHXQFODLPHGGLYLGHQGSHUWDLQLQJWRWKHÀQDQFLDO \HDUWRWKH,QYHVWRUV(GXFDWLRQDQG3URWHFWLRQ)XQG ,(3) LQDFFRUGDQFHZLWKWKHSURYLVLRQVRI6HFWLRQRIWKH Companies Act, 2013.

*As per Section 124 of the Companies Act, 2013, any money transferred to the Unpaid Dividend Account of a Company in pursuance of this section which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the Company along with interest accrued, if any, thereon to IEPF. In view of this provision, the shareholders are NLQGO\UHTXHVWHGWRJHWWKHLUSHQGLQJGLYLGHQGZDUUDQWVLIDQ\SHUWDLQLQJWRWKHDERYHÀQDQFLDO\HDUVHQFDVKHGDWWKHHDUOLHVW Shareholders can send the unpaid dividend warrants to the Registrar & Share Transfer Agent of the Company for the purpose of revalidation / reissue.

Please note that pursuant to section 124 (6) read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer & Refund) Amendment Rules, 2016 (“Rules”) as amended from time to time, shares in respect of such dividend will be WUDQVIHUUHGLQWKHQDPHRI,(3)LQFOXGLQJDOOEHQHÀWVDFFUXLQJRQVXFKVKDUHV7KH&RPSDQ\KDVVHQWRXWLQGLYLGXDOFRPPXQLFDWLRQ to shareholders whose dividends remains unclaimed for seven years and published an advertisement in newspapers, inviting such shareholders to claim their dividend. The information in respect of such shares is uploaded on the website of the Company KWWSVZZZNSLWFRPFRPSDQ\LQYHVWRUVSROLFLHVUHSRUWVÀOLQJV 0HPEHUVFDQFODLPEDFNVXFKGLYLGHQGDQGVKDUHVLQFOXGLQJ DOOEHQHÀWVDFFUXLQJRQVXFKVKDUHVIURPWKH,(3)$XWKRULW\DIWHUIROORZLQJWKHSURFHGXUHSUHVFULEHGLQWKH5XOHV

Annual Report 2016-17 82 20. Details of correspondence received from the Shareholders / Investors during the period from April 1, 2016 to March 31, 2017:

Sr. Nature of request / complaints No. of pending No. of No. of requests No. of pending No. requests / requests / / complaints requests / complaints as on complaints processed complaints as on as on April 1, 2016 received March 31, 2017 1 Change of Address Nil 55 Nil 2 Bank Details / Mandate / Electronic Clearing Nil 17 17 Nil Services 3 Stop Transfer/ Procedure for Duplicate Share Nil 33 Nil 4 Revalidation of warrants / Replacement of Nil 127 127 Nil dividend warrant / Issue of fresh drafts 5 ,VVXHRI'XSOLFDWH6KDUH&HUWLÀFDWH Nil 11 Nil 6 Correction of Name Nil 11 Nil 7 SEBI Complaints Nil 22 Nil 8 Change of Signature Nil 11 Nil 9 ([FKDQJHRI6KDUH&HUWLÀFDWH Nil 11 Nil 10 Others Nil 77 Nil Total Nil 165 165 Nil

21. Outstanding GDRs / ADRs / Warrants or any convertible instruments, conversion date and likely impact on equity:

The Company has not issued any GDRs / ADRs / Warrants or any convertible instruments.

22. Unclaimed Shares

As mandated under Regulation 39(4) read with Schedule VI of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (hereinafter referred to as “the SEBI (LODR) Regulations, 2015”) for shares in demat form, the Company is required to transfer the unclaimed shares to a Demat Suspense Account maintained with a Depository Participant. Further, in case of shares in physical form, the Company shall transfer all the shares into one folio in the name of “Unclaimed Suspense Account” and shall dematerialize the shares held in Unclaimed Suspense Account with a Depository Participant. The Company has sent three reminder notices to the concerned shareholders in this regard. The details in terms of Regulation 34(3) read with Schedule V (F) of the SEBI (LODR) Regulations, 2015, are stated below:

Sr. Particulars No. of No. of shares No. shareholders (i) Aggregate number of shareholders and the outstanding shares in the Unclaimed 67 50,000 Suspense Account lying at the beginning of the year i.e. April 1, 2016 (ii) Number of shareholders who approached the issuer for transfer of shares from 21,000 shares in the Unclaimed Suspense Account during the year from April 1, 2016 to March 31, 2017 (iii) Number of shareholders to whom shares were transferred from shares in 21,000 the Unclaimed Suspense Account during the period from April 1, 2016 to March 31, 2017 (iv) Aggregate number of shareholders and the outstanding shares in the Unclaimed 65 49,000 Suspense Account at the end of the year from April 1, 2016 to March 31, 2017

Voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.

Annual Report 2016-17 83 23. Publication of results and presentation made to institutional investors & analysts:

The Company has been regularly publishing its quarterly and yearly results in newspapers, detailed below, as per the requirement of the SEBI (LODR) Regulations, 2015:

Date of Publication Particulars Newspaper April 29, 2016 $XGLWHG FRQVROLGDWHG ÀQDQFLDO UHVXOWV IRU The Financial Express & Loksatta the quarter and year ended March 31, 2016. July 22, 2016 8QDXGLWHGFRQVROLGDWHGÀQDQFLDOUHVXOWVIRU The Financial Express & Loksatta the quarter ended June 30, 2016. October 21, 2016 8QDXGLWHGFRQVROLGDWHGÀQDQFLDOUHVXOWVIRU The Financial Express & Loksatta the quarter and half year ended September 30, 2016. January 20, 2017 8QDXGLWHG FRQVROLGDWHG ÀQDQFLDO UHVXOWV The Financial Express & Loksatta for the quarter and nine months ended December 31, 2016. April 28, 2017 $XGLWHG FRQVROLGDWHG ÀQDQFLDO UHVXOWV IRU The Financial Express & Loksatta the quarter and year ended March 31, 2017.

The results and presentations made to institutional investors & analysts have also been regularly uploaded in Investor section of our website www.kpit.com.

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7KH %RDUG RI 'LUHFWRUV RI WKH &RPSDQ\ FRQVLVWV RI H[HFXWLYH DQG QRQH[HFXWLYH PHPEHUV 7KH SUHVHQW %RDUG FRQVLVWV RI following members:

Co-Founder, Chairman & Group CEO

Mr. S. B. (Ravi) PanditLVD&RIRXQGHU&KDLUPDQDQG*URXS&(2RI.3,77HFKQRORJLHV/LPLWHG+LVYLVLRQDVWKHIRXQGHURI.3,7KDV steered the Company towards achieving leadership position as product engineering, technology solutions and services provider. +HSRVVHVVHVH[WHQVLYHH[SHULHQFHLQWKHÀHOGVRI,7&RUSRUDWH6WUDWHJ\)RUPXODWLRQDQG0DQDJHPHQW&RQVXOWLQJ+HKDVEHHQ instrumental in shaping KPIT’s strategy based on the tenets of innovation and sustainable development. Widely respected for integrity, innovation and dynamism, Mr. Pandit has successfully established and grown partnerships with customers, partners DQGLQGXVWU\ERGLHVVHWWLQJEHQFKPDUNVLQFRUSRUDWHJRYHUQDQFHUHJLRQDOFRRSHUDWLRQDQGFRLQQRYDWLRQ)RUKLVFRPPLWPHQW to conducting business in an ethical manner and for the value KPIT partnership has brought to Cummins, Mr. Pandit has been honored with the J Irwin Miller Award of Excellence by Cummins. He has been awarded the Rotary Excellence Award for exemplary leadership and outstanding performance and honored with the Maharashtra Corporate Excellence (MAXELL) Awards for Excellence in Entrepreneurship and for his contribution to the economic and industrial development of Pune City. He was 3UHVLGHQWRIWKH0DKUDWWD&KDPEHURI&RPPHUFH,QGXVWULHVDQG$JULFXOWXUHGXULQJ+HKROGVD06 0DQDJHPHQW degree from Sloan School of Management, MIT, Cambridge, USA. He is a gold medalist and fellow member of the Institute of Chartered Accountants of India and an associate member of the Institute of Cost Accountants of India.

Co-Founder, CEO & Managing Director

Mr. Kishor PatilLVD&RIRXQGHU&(2DQG0DQDJLQJ'LUHFWRURI.3,7+HJXLGHVRYHUDOOPDQDJHPHQWRIWKH&RPSDQ\DQGLV UHVSRQVLEOHIRUFXVWRPHUGHOLYHU\XQLWVDQGVXSSRUWIXQFWLRQVDQGHQVXULQJHIÀFLHQWDQGHIIHFWLYHIXQFWLRQLQJRIWKHRUJDQL]DWLRQ DVDZKROH+HKDVDSDUWLFXODUIRFXVDQGYLVLRQIRUJURZLQJSURGXFWVDQGSODWIRUPV8QGHUKLVOHDGHUVKLS.3,7KDVÀOHGPRUH WKDQSDWHQWVKDVGHYHORSHGRYHU,3VLQFXWWLQJHGJHWHFKQRORJLHVLQLWVIRFXVDUHDVDQGKDVZRQVHYHUDOQDWLRQDODQG international awards including the Wall Street Journal Technology Innovation Award, and Knowledge@Wharton Technovation

Annual Report 2016-17 84 Award. Mr. Patil is a member of the Institute of Chartered Accountants of India and an associate member of the Institute of Cost $FFRXQWDQWVRI,QGLD,Q0U3DWLOZDVKRQRUHGZLWKWKH&$%XVLQHVV/HDGHU$ZDUG&RUSRUDWHDZDUGE\WKH,QVWLWXWH of Chartered Accountants of India. For his excellence in entrepreneurship, he was honored with the Maharashtra Corporate Excellence (MAXELL) Awards 2014. In 2013, Mr. Patil was named among the top 16 entrepreneurs in India by Ernst and Young in its Entrepreneur of the Year award program, recognized among the Top 50 CEOs of 2013 by The Entrepreneur Magazine, DQGDZDUGHGWKH5RWDU\([FHOOHQFH$ZDUG+HLVDSUROLÀFVSHDNHUDQGKDVSUHVHQWHGDWYDULRXVQDWLRQDODQGLQWHUQDWLRQDO forums including the World Economic Forum (WEF), on topics such as entrepreneurship, innovation, building high performance organizations, and business transformation.

President and Board Member

Mr. Sachin TikekarLVD&RIRXQGHURI.3,7DQGVHUYHVDV%RDUG0HPEHUDQG3UHVLGHQW&XUUHQWO\KHLVIRFXVLQJRQWKHJURZWK RI$VLD3DFLÀFVDOHVRYHUDOOVWUDWHJ\RSHUDWLQJV\VWHPVFUHDWLRQRIQHZVROXWLRQVDQGH[HFXWLYHVSRQVRUVKLSRINH\*OREDO Accounts and Partnerships along with succession planning and development of senior people in the organization. Mr. Tikekar IRUPHUO\VHUYHGDVWKH&KLHI3HRSOH2IÀFHUDQGWKH&KLHI2SHUDWLQJ2IÀFHURIWKH86RSHUDWLRQVRI.3,7+HLVLQWULQVLFDOO\ involved in building and growing strategic relationships and developing transformational solutions for key customers and partners. He holds a Masters’ degree in Strategic Management and International Finance from Temple University’s Fox School of Business and Management, Pennsylvania.

Non-Executive and Independent Directors

Ms. Lila Poonawalla was awarded the Padmashree in 1989 recognized for her exemplary contribution to the world of Engineering DQG,QGXVWU\6KHZDVWKH&KDLUSHUVRQDQG0DQDJLQJ'LUHFWRURI$OID/DYDO7HWUD3DN,QGLDDQGZDVWKHÀUVWZRPDQWRUHDFK the post of Managing Director in the Alfa Laval group. She is currently a Director on the Board of Bajaj Allianz General Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, VE Commercial Vehicles Limited, Blossom Industries Limited, Pragati Leadership Institute Private Limited, Noble Tek PLM Solutions Private Limited, Impact Automotive Solutions Limited and Nihilent Technologies Limited. She has been on the governing body of organizations such as the Confederation of Indian Industries (CII) and Technology Information Forecasting and Assessment Council formed by the Government of India (TIFAC). 6KHZDVDPHPEHURIWKH6FLHQWLÀF$GYLVRU\ERDUGRIWKH&HQWUDO&DELQHW 6$&& DQG&KDLUSHUVRQRIWKH+HUEDODQG)ORULFXOWXUH 7DVNIRUFHRI6$&&$FWLYHO\LQYROYHGLQVRFLDOLQLWLDWLYHVVKHLVRQWKHERDUGRIWUXVWHHVRIWZR3XQHEDVHG1RQ*RYHUQPHQWDO Organizations (NGOs). In 1994, she started the ‘Lila Poonawalla Foundation’ to promote education among women. She is presently a member of Executive Council of Maratha Chamber of Commerce Industries (MCCI), National Institute of Agricultural Extension Management and Top Management Consortium. She is also the Vice Chairperson of the Poona Blind Men’s Association.

Dr. R. A. Mashelkar is deeply committed to the world of Science and Engineering. Dr. Mashelkar has been hugely instrumental in propagating a culture of innovation and balanced intellectual property rights regime for over a decade. He is a Chancellor in the $FDGHP\RI6FLHQWLÀF ,QQRYDWLYHUHVHDUFK+HZDVWKHWKLUG,QGLDQHQJLQHHUWRKDYHEHHQHOHFWHGDVD)HOORZRI5R\DO6RFLHW\ )56 /RQGRQZDVWKHÀUVW,QGLDQ3UHVLGHQWRIWKH,QVWLWXWHRI&KHPLFDO(QJLQHHUV8.DQGWKHÀUVW,QGLDQ)RUHLJQ)HOORZRI $XVWUDOLDQ7HFKQRORJLFDO6FLHQFHDQG(QJLQHHULQJ$FDGHP\ 7ZHQW\HLJKWXQLYHUVLWLHVKDYHKRQRUHGKLPZLWKKRQRUDU\ doctorates, which include Universities of London, Salford, Pretoria, Wisconsin and Delhi. Dr. Mashelkar served as the Director *HQHUDORI&RXQFLORI6FLHQWLÀFDQG,QGXVWULDO5HVHDUFK &6,5 +HZDVDOVRWKH3UHVLGHQWRI,QGLDQ1DWLRQDO6FLHQFH$FDGHP\ +HLVFXUUHQWO\D'LUHFWRURQWKH%RDUGRI5HOLDQFH,QGXVWULHV/LPLWHG7KHUPD[,QGLD/LPLWHG7DWD0RWRUV/LPLWHG Piramal Enterprises Limited, Tal Manufacturing Solutions Limited, Vyome Biosciences Limited, Invictus Oncology Private Limited, 6DNDO3DSHU3ULYDWH/LPLWHG,QWHUQDWLRQDO/RQJHYLW\&HQWUH²,QGLD*KDUGD6FLHQWLÀF5HVHDUFK)RXQGDWLRQ*KDUGD0HGLFDO Advanced Technical Foundation. Dr. Mashelkar has won over 50 awards and medals at national and international levels and was honored by the President of India with Padma Vibushan award in the year 2014. Earlier, he was conferred Padma Shri award (1991) and Padma Bhushan award (2000), in recognition of his contribution to nation building.

Annual Report 2016-17 85 Mr. Adi Engineer is a Chartered Engineer by profession with a degree in Civil Engineering from the Pune University. He was associated with Tata group of companies for nearly three decades prior to joining KPIT board, which includes a stint as Managing Director of Tata Power Limited. In that role, he transformed the company by successfully launching various new initiatives that VXEVWDQWLDOO\OHGWRLPSURYHGSURÀWDELOLW\+LVFRPSDQ\DOVRVHFXUHGWKH´*RRG&RUSRUDWH&LWL]HQµDZDUGGXULQJKLVFKDUJH Prior to joining the Tata Group, Mr. Engineer had a successful 20 years stint with the ICI group where he held senior positions in the management team including setting up large chemical plant projects and later into operations and general management. 0U(QJLQHHUKDVVHUYHGDVWKH'LUHFWRURQWKHERDUGRIVHYHUDOFRPSDQLHVLQWKHÀHOGRIHQHUJ\LQIUDVWUXFWXUHDQGHQJLQHHULQJ Reckoned for his varied and differentiating experience, Mr. Engineer is a Director in Finolex Cables Limited and Impact Automotive Solutions Limited. The Confederation of Indian Industry (CII) had also appointed him as the Chairman of the Committee on Power for the year 2006. He has been a preferred and insightful spokesperson for the power sector at many media interactions. Having served the industry on numerous fronts, Mr. Engineer brings with him wide experience from more than a dozen boards of major companies.

Prof. Alberto Sangiovanni Vincentelli ZDV D FRIRXQGHU RI &DGHQFH DQG 6\QRSV\V WZR OHDGLQJ FRPSDQLHV LQ WKH DUHD RI Electronic Design Automation. He is the Chief Technology Adviser of Cadence and a member of its Board of Directors. He was a member of the HP Strategic Technology Advisory Board. He is currently a member of the Science and Technology Advisory Board of General Motors, as well as a member of the Technology Advisory Council of United Technologies Corporation. He is also a Professor in University of California, Berkeley and Department of Electrical Engineering & Computer Sciences.

Mr. Anant Talaulicar holds a B.E. (Mechanical) degree from Mysore University, M.S. degree from the University of Michigan in Ann Arbor and a MBA from Tulane University, USA. He is the President of the Cummins Components Group and Vice President and Managing Director of the Cummins India Area Business Organization. He has been serving Cummins for the past 20 years LQYDULHGÀHOGVOLNH)LQDQFH0DQXIDFWXULQJ3URGXFW0DQDJHPHQW6WUDWHJ\0DUNHWLQJDQG*HQHUDO0DQDJHPHQW+HKDVOHG the North and South American Commercial Power Generation business for Cummins with revenues of $300 million. Since 2004, Mr. Talaulicar has also led the Cummins India Foundation which has implemented sustainable community initiatives such as UXUDOHOHFWULÀFDWLRQDQGLPSURYLQJDFFHVVWRZDWHU+HVHUYHVDVDPHPEHURIWKH&RQIHGHUDWLRQRI,QGLDQ,QGXVWULHV6RFLHW\RI Indian Automobile Manufacturers and Automobile Components Manufacturers Association. Currently, he is the Chairman and Managing Director of Cummins India Limited.

Mr. B V R Subbu is an automotive industry expert and a thought leader. Mr. B V R Subbu holds a post graduate degree in Economics from Jawaharlal Nehru University and a post graduate diploma from the Indian Institute of Foreign Trade. He was the President of Hyundai India earlier. He was also extensively involved with the Tata Group holding various responsibilities, including responsibilities in Tata Motors’ Light Commercial Vehicles and Multi Utility Vehicles business.

Mr. Sanjay KukrejaLVDIXQGPDQDJHUE\SURIHVVLRQ+HMRLQHG&KU\V&DSLWDODIXQGPDQDJHPHQWÀUPLQ$SULO+HPDQDJHV the investments of ChrysCapital in business services sector. Mr. Sanjay Kukreja received his MBA from the Indian Institute of Management, Bangalore and graduated with a BA in economics from Delhi University.

Annual Report 2016-17 86 R&D Activities

&KLHI7HFKQRORJ\2IÀFH &72 .QRZVLWXDWLRQDOVSHHGOLPLWV Enabling Innovation, Technology, Research and Development .QRZURXWHULVNLQDGYDQFH 5 ' DW .3,7 WKH &KLHI 7HFKQRORJ\ 2IÀFH LV .3,7·V 5 ' 'LVWUDFWLRQOHVVGULYLQJ center. CTO drives R&D activities along three broad initiatives: R&D for customers, technology development and fostering 5HFHLYHDGYDQFHGLQWLPDWLRQV innovation. 6PDUW$06 6PDUW $SSOLFDWLRQ 0DQDJHPHQW 6HUYLFHV R&D for Customers Enabling Technology through SmartAMS KwikPick +DQGV )UHH $XJPHQWHG 5HDOLW\ 6ROXWLRQ RQ 7UDGLWLRQDO $06 LV LQHIÀFLHQW ULJLG ZLWK FRVW Smart Glass increasing year on year

.3,7·V “KwikPick” Hands Free Warehouse Picking %XVLQHVVGLVFRQQHFWH[LVWVXVLQJWUDGLWLRQDO$06 Solution with wearable Augmented Reality Smart Glasses SmartAMS is a service offering to reduce operational cost and help organizations to focus on business ,WLVPRUHSURGXFWLYHDQGFKHDSHUWKDQ9RLFH3LFNLQJ transformation

JRM -RXUQH\5LVN0DQDJHPHQWIRUVDIHDQGLQFLGHQWIUHH Key focus of SmartAMS is Automation to Automation transportation of petroleum & petrochemical products. (A2A) For the customer $XWRPDWLRQ WR UDLVH SURDFWLYH DOHUWV RU HYHQWV DV 3UHGLFWWKHMRXUQH\ soon as the warning or issue is detected

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6DIHGULYLQJSUDFWLFHV )RFXV RQ /HIW VKLIW /!/!/!8VHU DSSURDFK 3UHHPSWLQJLQFLGHQWV using technology to reduce operational cost 0LVDSSURSULDWLRQRIJRRGV SmartAMS is based on 3 key principles: 6KLSPHQWKHDOWK 6PDUWHU8VH$XWRPDWLRQWRUDLVHSURDFWLYHDOHUWVIRU prevention of issue )RUWKHÁHHWRSHUDWRU )DVWHU$XWRPDWHUHFXUULQJLVVXHUHVROXWLRQWLPH $XWR9HKLFOH/RFDWRU6\VWHP $GKHUHWRYDOLGURXWH $YRLGDQFH $YRLG WLFNHWV LVVXHV EHLQJ UDLVHG E\ user through Ticket Diagnostics $OHUWV QRWLÀFDWLRQV 6DIHGULYLQJSUDFWLFHV Technology Development Research &RPPXQLFDWLRQWRFXVWRPHU Projects )UHLJKWVHWWOHPHQW City Movement Modeling 8QGHUVWDQG7UDIÀF3DWWHUQV For the driver &KDQJLQJURDGWUDMHFWRULHV 8QGHUVWDQG WUDIÀF SDWWHUQV LQ FLW\ E\ DQDO\]LQJ anonymized mobile network data $FFLGHQWSURQH]RQHV 2ULJLQ'HVWLQDWLRQ$QDO\VLV 3HGHVWULDQGHQVLW\SODFHV In a geo fence area of interest, analyze people 6DIHUSODFHVWRVWRSSDUN movement to and from the area of interest at 0DQDJHIDWLJXHEUHDNVFKHGXOH different times of the day

Annual Report 2016-17 87 &RQJHVWLRQ,QVLJKWV 8QGHUVWDQG W\SLFDO WUDIÀF ERWWOHQHFN DUHDV E\ studying movement across different parts of the city by time zones

*DSVLQ3XEOLF7UDQVSRUW &RUHODWHFXUUHQWGHPDQGFDUU\LQJFDSDFLW\RISXEOLF transport to the estimated demand on a selected route

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8VHIXOGDWDIRUHFRPPHUFHFRPSDQLHVIRUORJLVWLFV Papers: Further to patents, we also have publications in different forums for the research work currently in progress. 03& ² 0RGHO 3UHGLFWLYH &RQWURO )RU 5HWURÀW +\EULG Number of Papers Published Per Year Electric Vehicle 120 104 5XOH EDVHG ORJLF ODFNV PHWKRGLFDO DQG FRQVLVWHQW 100 97 reduction in fuel consumption and emissions of 80 75 SUDFWLFDOUHWURÀW+(9 68

56 ([WUDFDOLEUDWLRQHIIRUWUHTXLUHGWRVXLWDEO\RSHUDWH 60 46 vehicle in various drive cycles 40

21 ,QFRQVLVWHQWIXHOHIÀFLHQF\EHQHÀWVREVHUYHGDFURVV 20 varied driving conditions 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 03& EDVHG VROXWLRQ LQYROYHV IUDPLQJ WKH UHWURÀW Number of Papers HEV system in terms of MPC architecture

3K\VLFV EDVHG G\QDPLF PRGHO RI SUDFWLFDO UHWURÀW HEV and its validation KPIT Sparkle 2017 This was the third year of KPIT Sparkle, a national design and 6XSHUYLVRU\FRQWUROOHURI(9UHWURÀW+(9EDVHGRQ development innovation contest for science and engineering MPC methodology students. The theme of the competition in this edition was on Smart Cities and centered on creating solutions for Smart 03&EDVHGDSSURDFKUHVXOWVLQRSWLPDOPRWRUWRUTXH Transportation and Smart Infrastructure using technology. (leading to optimal torque split) without sensing or This year, we received over 1,500 ideas from over 10,500 actuating any engine parameters students across 300 colleges in India with participation of 9 &RQVLVWHQW IXHO HIÀFLHQF\ EHQHÀWV REVHUYHG DFURVV premier institutes like IIT’s and NIT’s. The 35 shortlisted teams multiple drive cycles exhibited their solutions through working prototypes at the JUDQGÀQDOHKHOGRQFebruary 18 & 19, 2017, at the Deccan Fostering Innovation College Ground in Pune.

3DWHQWV 7KH SDWHQWLQJ SURFHVV EHJDQ LQ ZLWK RXU ÀUVW 2Q GLVSOD\ DW WKH ÀQDOV ZHUH VRPH LQWHUHVWLQJ DQG QRYHO SDWHQWÀOLQJ7KLV\HDUVL[QHZSDWHQWDSSOLFDWLRQVKDYHEHHQ projects in areas such as urban mobility, autonomous vehicles, ÀOHG DQG VL[ RI RXU SDWHQWV KDYH EHHQ JUDQWHG LQ YDULRXV VPDUW HOHFWULF YHKLFOHV DQG VHOIOHDUQLQJ ERWV FOHDQ DQG FRXQWULHVDFURVVWKHJOREH:HDOVRJRWRXUÀUVWSDWHQWJUDQW HIÀFLHQW IXHOV WHFKQRORJ\ VROXWLRQV WR UHFRYHU DQG FOHDQ RLO in India during the year. spills, coherent use of energy from plants, wind, solar and waste water and separation of plastics from waste.

Annual Report 2016-17 88 7KH ÀQDOLVWV ZHUH HYDOXDWHG IRU QRYHOW\ RI WKHLU LGHDV FRPSOHWHQHVVRISURWRW\SHIXOÀOOPHQWRIVRFLHW\·VH[SHFWDWLRQV / problem statement and technical knowledge.

The winners of the contest were evaluated by a panel of eminent jurors headed by Padma Vibhushan Dr. R. A. Mashelkar and announced at an award ceremony on February 19, 2017, where cash prizes of over ` 20 Lakhs were awarded to them.

The award ceremony was presided by Union Minister for Human Resources Development (HRD), Hon. Shri Prakash Javadekar as the Guest of Honor and Padma Shri Dr. Kiran Karnik, Former President, NASSCOM was the chief guest. Team Robo-Climb from College of Engineering, Pune (COEP) won the Silver Award 1 worth ` 2.5 Lakhs for their autonomous vehicle solution called Wall Climbing Robot, which can be used for transportation of goods as well as passengers over the distance.

Team AlphaGears from Mangalore Institute of Technology and Engineering won the Platinum award of ` 10 lakhs for their project on frictionless gear transmission system for vehicles using Polymagnets. This solution will overcome the drawbacks of present day mechanical gear system.

7HDP 7UDIÀF (\H from Birla Institute of Technology and Science (BITS), Pilani won the Silver award 2 worth ` 2.5LakhsIRUWKHLUSURMHFW7UDIÀF(\HWRFKHFNWUDIÀFYLRODWLRQV

Team Robo-X-Prime from R. C. Patel Institute of Technology, Shirpur, Maharashtra won the Gold award worth ` 5 Lakhs for developing a robot for cleaning and inspection of Power Transmission Line.

Annual Report 2016-17 89 &RPPXQLW\,QLWLDWLYHV

Transforming communities through Community Contribution is one of the seven core values at employee engagement .3,7 ,W KDV D VLJQLÀFDQW PHQWLRQ LQ RXU 0LVVLRQ DQG 9LVLRQ VWDWHPHQWVWRUHÁHFWRXUFRPPLWPHQWWRZDUGVLW&RQVLGHULQJ Community Initiatives have been a part of the DNA of KPIT since its formative days. Our philosophy and guiding principle our capabilities and the needs of the communities that we towards Community Contribution leverages our expertise serve, we have continued working within the following focus and knowledge in IT and Engineering, combined with the areas: volunteering efforts of our employees. We believe responsible volunteering has the ability to have a long lasting impact on 1. Environment: Making this planet a better place to live in. WKH VRFLHW\ WKXV PD[LPL]LQJ WKH RXWUHDFK WR EHQHÀFLDULHV within communities. At KPIT, we aim to create a more equitable 2. Energy: 'HYHORSLQJ LQQRYDWLYH VROXWLRQV IRU HIÀFLHQW and inclusive society by supporting communities that lead to energy consumption and renewable supply. sustainable transformation and social integration. 3. Education: Transforming lives through science and technology education.

4. Employee Engagement: Maximizing impact through responsible volunteering.

ENVIRONMENT KPIT is committed towards giving our future generations a VXVWDLQDEOHZRUOGWKURXJKHIÀFLHQF\LQRXUEXVLQHVVRSHUDWLRQV and conservation of natural resources. Volunteers from KPIT Pune at rice plantation activity

Annual Report 2016-17 90 ¾ Water Conservation through Mass Volunteering India has a long tradition of water harvesting. Many of the traditional water harvesting systems are no longer utilized or have lost their relevance due to their inability to meet the community demands. For agrarian villages located in arid DQGVHPLDULGUHJLRQVRI.DUQDWDND 0DKDUDVKWUDDQ\DFXWH shortage in rainfall can jeopardize agricultural yields, drinking water supplies, and the community’s entire existence.

KPIT Volunteers engaged in excavating farm ponds at Check dam construction at Pasali Village, District Pune Nelamangala, Karnataka KPIT, along with local farmers association, have taken up To expand on the water conservation projects, apart from the project “Krishi Honda” (farm pond), primarily with an aim to desilting of farm ponds and tree plantation started in 2012, we utilize rain water harvesting as a means to give a new lease of adopted few new and different models for water conservation life to the village of Alladahalli (Nelmangala Taluk), tainted by this year. We excavated new wells in the villages, constructed scorching summers. Check Dams and Cement Nala Bund (CNB), widening and Krishi Honda, are usually square or rectangular dug out ponds, deepening of water canal, with incentivizing land levelling surrounded by a small bund, which harvest rainwater and store activities. it for further use. Agricultural ponds have a variety of uses, ranging from providing water for irrigation, domestic purposes ¾ Farm Pond Activity (Nelamangala, Karnataka & Velha, and livestock, recharging the ground water, improving Maharashtra) drainage, among many others. The bunds can be used to Karnataka and Maharashtra, both being predominantly nurture vegetables and fruits, thus incrementing the source agrarian states, cultivation and sustenance of water, coupled of income of the villagers as well. KPIT has built three Krishi with unpredictable monsoons, has been a very pertinent issue. Hondas in Alladahalli Village, where close to 90 volunteers worked tirelessly to ensure that the villagers can reap the Often, even the meagre water received during the monsoons, EHQHÀWVRILWLQWKHGD\VWRFRPH just drains away. But if the rainwater is stored properly, the ground water table will be recharged and crops can get Year 2016 also accommodated construction of two farm ponds adequate water during critical conditions. in Ranza (Shivapur) village, near Pune, Maharashtra.

Farm Pond at Kerekathignur village, Nelamangal a, Karnataka

Annual Report 2016-17 91 ¾ Well Excavation & Construction at Guhini & Metpilawar Village, District - Pune This project is aimed at addressing the drinking water problem of Guhini & Metpilawar village. Geological survey was conducted in order to excavate the well and build it. Live spring ZDV LGHQWLÀHG DQG D ZHOO RI IW GHHS DQG IW LQ GLDPHWHU was developed around the spring and it was converted into a reservoir which has the capacity to store 25lakh litres of water. KPIT, in association with the local villagers & Jnana Prabodhini, volunteered towards this initiative. Nearly, 200 volunteers were part of this project. :DWHUÀOOHGZHOODW*XKLQL

¾ Widening and deepening of water canal at Wajeghar Village, District Pune Wajhegar has the only water resource in the form of a well which is located at the bank of canal. This water reserve dries out every year after the month of March, leaving villagers with QRZDWHUIRUWKHUHVWRIWKH\HDU%\GHVLOWLQJRIP[P x 8ft canal, we have created water reservoir of the capacity storage of 10 million litres of water lasting until monsoon.

Water canal at Wajeghar Village: Before (L) & After (R)

¾ Soil Dam at Varoti & Pasali, District Pune Construction of check dams enables to conserve water and at WKHVDPHWLPHKHOSWRSUHYHQWWKHRYHUÁRZRIZDWHUREVHUYHG GXULQJÁRRGV6XFKVLWXDWLRQSUHYDLOVLQWKHPRQVRRQVDQGWKH Volunteering activities in full swing at Metpilawar & Guhini ULYHUWHQGVWRRYHUÁRZGXHWRWKHKHDY\GRZQSRXU+HQFHZH adopted the method of construction of check dams on River Velvandi at Varoli & Pasali villages to support the villagers in conserving water. We conserved 8 million litres of water through active participation from nearly 300 volunteers from KPIT, our partner NGO Jnana Prabodhini volunteers, including villagers.

:DWHUÀOOHGZHOODW0HWSLODZDU Volunteering at Varoti

Annual Report 2016-17 92 ¾ Dr. Rajendra Singh visits KPIT’s Project sites

River Velvandi (Varoti) and the well on the river bank ¾ Shelgaon Village, District – Osmanabad – Cement Nala Bund (CNB) Project Osmanabad district is one of the worst drought affected regions in Maharashtra. As a long term solution to the drought situation in the village, KPIT, in association with Rashtriya Sarvanghin Gram Vikas Sanstha, embarked upon an ambitious project of building a CNB in the year 2016. About 20m x2.6m x2.6m CNB was constructed in the village, enabling a water corridor of 22m x 600m x 2m. This will result in a storage of 16 million litres of water. Dr. Rajendra Singh visits the projects initiated by the KPIT CSR Team

Dr. Rajendra Singh Rana also known as “The Water Man of India” visited our Water Conservation Project sites at four GLIIHUHQW YLOODJHV LQ 9HOKD 7HKVLO 3XQH +H LV D ZHOONQRZQ water conservationist from Rajasthan, India and has won the “Stockholm Water Prize“ (an award known as Nobel Prize for :DWHU IRU KLV VLJQLÀFDQW FRQWULEXWLRQ WRZDUGV UHMXYHQDWLQJ more than 10 rivers by constructing 11,000+ check dams & ponds. Dr. Rajendra Singh Rana was extremely delighted to know about KPIT’s efforts and initiatives towards water Cement Nala Bund (CNB) construction at Shelgaon, Pune conservation. He acknowledged and appreciated the work carried out by KPIT volunteers in association with our NGO partner, Jnana Prabodhini.

KPIT’s Rain Water Harvesting action, through multiple stakeholder approach, has yielded the below mentioned quantitative impact: 7RWDOQXPEHURIEHQHÀFLDULHV²OLYHV /DQGXQGHULUULJDWLRQ²DFUHV :DWHUFRQVHUYHG²PLOOLRQOLWUHVRIZDWHU 7RWDOQXPEHURIYLOODJHVFRYHUHG² :DWHUÀOOHG&HPHQW1DOD%XQG &1% DW6KHOJDRQ3XQH 7RWDOQXPEHURIHPSOR\HHVHQJDJHG²

Annual Report 2016-17 93 Koyna Chandoli Afforestation Corridor KPIT, as a socially responsible organization, has taken up the task of restoring forests, to bring back some semblance in the IRUHVWHG HQYLURQPHQW ,Q 0DKDUDVKWUD WKH .R\QD &KDQGROL corridor has been a host of KPIT’s afforestation efforts. Following up with previous year’s efforts, KPIT inclined its’ afforestation efforts with the monsoon, ensuring plantation of more 2,500 saplings aggregating with 7,500 previously planted with an overall survival rate of 80 percent.

Media Coverage of KPIT Water Conservation Projects

KPIT Volunteers at Koyna afforestation corridor In Bengaluru, the efforts have been replicated, with RK Mission at Shivanahalli and a group of villages in Nelamangala playing host to KPIT’s environmental efforts. KPIT planted and adopted ¾ Afforestation 1,000 saplings, over a period of two years, strengthening the buffer zones in the Bannerghatta National Park and the Encumbering forests in the name of development has slowly Nelamangala bypass corridor. EHHQ GHYRLGLQJ XUEDQ ,QGLD RI LWV OXQJ VSDFHV 7KH FXUUHQW projected development rate will only increase the rate of Plantation activities year round engaged 437 employees, all of carbon emisssion in the vicinity, thereby painting a worrisome whom supported the initiative in collectively ensuring a more picture for future generations. hospitable environment in our cities.

Annual Report 2016-17 94 Along with the coordination and support of KPIT, Janwani, a 3XQHEDVHG 9ROXQWDU\ 2UJDQL]DWLRQ KDV EHHQ VXFFHVVIXO LQ showing positive results of the project in all municipal wards. The total population reached was approx. 8,77,000 covering about 2,19,478 houses. The door step collection of waste in the wards has increased from 38% at the beginning of the project WRDWWKHHQGRIFXUUHQW\HDU7KHUHKDVEHHQDVLJQLÀFDQW increase in the practice of wet and dry waste segregation DW KRXVHKROG OHYHO ZKLFK ZDV UHFRUGHG WR EH DW WKH beginning of the project and 63% at the end of current year. The number of community bins has been reduced from 137 to 85 (62%) whereas, the chronic spots of mixed garbage at the roadsides and corners of the city have been reduced from 268 Volunteers from KPIT Bengaluru at Shivanahalli, during sapling to 142 (52%). plantation and maintenance Within the project, Janwani, along with KPIT, has conducted Consequentially, the following alterations in the micro climate total 1,069 awareness programs in the city. These programs could be witnessed: include street plays, puppet shows, poster presentations, &UHDWLQJR[\JHQKXEV multilevel meetings of the members of the Solid Waste 0DQDJHPHQW V\VWHP RI 3XQH ÀOP VFUHHQLQJV TXL] FRQWHVWV 5HGXFLQJWKHDWPRVSKHULFWHPSHUDWXUH etc. ,QFUHDVLQJWKHFDUERQVHTXHVWUDWLRQ 5LVHWRPLQLHFRV\VWHPV ,QFUHDVHLQELUGPLJUDWLRQ

¾ Zero Garbage Project In 2013, the Zero Garbage Project was initiated for increasing the livability of people within the city of Pune. The project over the years has been encouraging segregation of dry and wet waste at the source.

Our Chairman and Group CEO, Mr. Ravi Pandit, has been a deeply engaged mentor in execution of the Zero Garbage Project. Owing to the practicality and vision of Mr. Pandit in this project, he has been nominated as a National Expert on 'Technology Evaluation Committee for Solid & Liquid Waste and Water Supply'. The committee is formed by Government of Citizens and KPIT Volunteers at the Cleanliness and Awareness India, Ministry of Urban Development under the chairmanship Drives in Pune of Dr. Raghunath A. Mashelkar, who is also an honourable board member of KPIT.

Annual Report 2016-17 95 ENERGY ,QDELGWREHFRPHHQHUJ\LQGHSHQGHQW.3,73XQHRIÀFHKDVWXUQHGWRVRODUHQHUJ\UDLVLQJD.:URRIWRSVRODUSRZHUSODQW7KLV URRIWRSIDFLOLW\JHQHUDWHVXQLWVRIHOHFWULFLW\HYHU\GD\7KHJHQHUDWHGHOHFWULFLW\LVXWLOL]HGLQKRXVHWRZDUGV units / day of electricity consumption, thereby reducing the load of the main supply grid by more than 3%.

,QXSFRPLQJ\HDUV.3,7SODQVWRGRXEOHWKHFDSDFLW\WRXWLOL]HFOHDQHUDQGJUHHQHUHQHUJ\SURGXFHGLQVLWXSURPRWLQJHQYLURQPHQW friendliness at multiple levels.

,Q6LWXVRODULQVWDOODWLRQVDW.3,73XQHRIÀFH EDUCATION We aim to transform lives of people in our community through science and technology education. The focus on science and technology is because of our belief that technology can change lives and that science brings in rational thinking. Starting as early as KLJKVFKRRO.3,7LGHQWLÀHVLWVHOIZLWKWKHSURJUHVVLYHVWHSVWKDWOHDGSHRSOHWRZDUGVWKHDGRSWLRQRI6FLHQFH7HFKQRORJ\(QJLQHHULQJ & Maths (STEM) as a career choice and develops the acumen of an individual towards constant learning.

Annual Report 2016-17 96 ¾ Chhote Scientists Chhote Scientists walk into USA .3,7·VÁDJVKLSLQLWLDWLYHLQDVVRFLDWLRQZLWK-QDQD3UDERGKLQL $VSDUWRIWKH&65DFWLYLWLHVLQ&ROXPEXV86$ZHNLFNHGRII Chhote Scientists has been charting impactful engagement the Science Learning Event for kids (as an extension of our among government schools across Bengaluru, Mumbai, ‘Chhote Scientists’ initiative in India). There were 15 children Noida and Pune. Since 2012, almost 20,000 students have EHWZHHQWKHDJHJURXSRI\HDUVZKRSDUWLFLSDWHGLQWKH experienced science learning through the Chhote Scientists program and created small toys to understand the concepts program, with over 3000 employees having delivered the same of Sound. Based on the local requirements, Chhote Scientists WKURXJKKDQGVRQSHGDJRJ\ LVEHLQJVKDSHGLQWRDQHQJDJLQJKDQGVRQLQLWLDWLYHLQ86$ Chhote Scientists made strides in expanding its circle of knowledge sharing to Hubli and Dharwad in Karnataka, with Vidya Poshak, a Voluntary Organization, playing the host. 300+ FKLOGUHQ DFURVV VFKRROV QRZ VWDQGWR EHQHÀWIURP &KKRWH Scientists program.

Based on KPIT’s model of engaging graduating science students, Jalana College, was taken up as a pilot project. 25 student volunteers delivered 360 sessions across 25 schools RI -DODQD GLVWULFW EHQHÀWLQJ VWXGHQWV RI YDULRXV ORFDO Chhote Scientists USA at Columbus Public Library, USA government schools.

¾ vSolve Competition vSolve 2017, was the problem solving competition marking the culmination of Chhote Scientists calendar for the year. A Chhote Scientists session in progress

Following the teachers training model of Chhote Scientists SURJUDP D WZRGD\ ZRUNVKRS ZDV RUJDQL]HG KRVWLQJ teachers from Pune district. The teachers, post the workshop, have been instrumental in delivering the Chhote scientists program back in their respective schools. The model adopts a biannual training workshop, with one each in two terms of the annual calendar year.

To expand the reach of Chhote scientists, as a responsible corporate house, KPIT has been extending the boundaries Children from Government Model Primary School during of business partnerships to include social projects as well. So Y6ROYHÀQDOVDW.3,7%HQJDOXUX IDU 0HUFHGHV%HQ] 5HVHDUFK DQG 'HYHORSPHQW ,QGLD 3ULYDWH Limited and Excel Industries Limited have come forward in This year’s competition in Bengaluru saw all the four Chhote building a partnership and adopting Chhote Scientists into Scientists’ schools participate with enthusiasm and competitive their Corporate Social Responsibility circles. spirit. 42 participants representing 14 teams competed in a

Annual Report 2016-17 97 VFLHQFHJDPLQJFLUFXLWKDYLQJWRFRPSOHWHIRXUWKHPHEDVHG VXFFHVVLRQRIWKHUHOHDVHWKDWWRRNSODFHLQWKHÀUVWVHPHVWHU games, on a timed format. Earlier, children were shortlisted RIWKHDFDGHPLF\HDUZKHUHLQWKHÀUVWYROXPHDQGWKH&KKRWH WKURXJK WZR URXQGV RI VHOHFWLRQ SURFHVV 0XOWLSOH &KRLFH Scientists App was unveiled. 4XHVWLRQV 0&4 WHVWDQGVFLHQFHGHPRQVWUDWLRQV

Dr. Girish Bapat(L), Mr. Mr. Vivek Ponkshe (L) and Dr. The enthusiasm of the children peaked where records tumbled Aravind Paranjape(M) and L. S. Shashidhara (R) at the GXULQJWKHY6ROYHÀQDOVDW.3,7%HQJDOXUX Mr. Kishor Patil(R) at the unveiling of Chhote Scientists unveiling of Chhote Scientists Volume 2 The event at Pune saw 180 students across 36 government Volume 1 in 2016 schools from Maval & Mulshi Tehsil and Pune Municipal Corporation participate in the event. The competition saw participation by schools, wherein Chhote Scientists program was introduced through Daimler India’s CSR program in Pune. The competition also played host to students emerging out of Bharat Forge Limited’s Pradnya Vikas program.

The competition was formally inaugurated by Prof. L.S. Shashidhara, Chair of Biology, Indian Institute of Science Education and Research, Pune (IISER). Mr. Ravi Pandit, Chairman and Group CEO, KPIT, along with Mr. Vivek Ponkshe, Secretary (Education), Jnana Prabodhini presided the event. Mr. Pandit interacted extensively with the students to learn about their projects, before handing over the prizes to the winners.

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Based on respective problem statements given, class 8 students had to assemble a portable light source with the help of easily available materials like aluminum cans, battery, LED etc., while Class 9 students had to build a vacuum cleaner making use of pet bottles, DC motor, pipes etc. These events were ably conducted by a strong group of 100+ KPIT volunteers across the venues of Pune and Bengaluru.

The occasion also saw the second volume of Chhote Scientists syllabus being released, conceptualized and Media coverage of Chhote Scientists and vSolve 2017 designed exclusively by Jnana Prabodhini and KPIT. This is in

Annual Report 2016-17 98 ¾ Sparkle 2017 ¾ Smart India Hackathon 2017 - World’s Biggest Digital This was the third year of KPIT Sparkle, a national design and Movement! development innovation contest for science and engineering students. The theme of the competition in this edition was on Smart Cities and centered on creating solutions for Smart Transportation and Smart Infrastructure using technology. This year we received over 1,500 ideas from over 10,500 students across 300 colleges in India with participation of 9 premier institutes like IITs and NITs. The 35 shortlisted teams exhibited WKHLUVROXWLRQVWKURXJKZRUNLQJSURWRW\SHVDWWKHJUDQGÀQDOH KPIT, partnered with the Ministry of Human Resources held on February 18 and 19, 2017, at the Deccan College and Development (MHRD) in organizing the Smart India Ground in Pune. Total cash prizes amounting to ` 21 lakhs were +DFNDWKRQ¶SLWWHGDVZRUOG VODUJHVWGLJLWDOQDWLRQEXLOGLQJ given out to the winners of various categories at the event to initiative. The Hackathon aimed at harnessing the creativity support their innovative endeavors. and technical expertise of over 40,000 students from various technology institutes across the country. Approximately 16,000 college students participated in this event to solve problems listed by various Central Ministries.

Programmers at KPIT participated in the evaluation committee RI+DFNDWKRQ7KHHIIRUWZHQWLQWRVKRUWOLVWLQJWKHÀQDO entries based on description of ideas, the corresponding technology stack and the solution approach. 60 of KPIT’s employees volunteered as evaluators while 5 were engaged as MXGJHVLQWKHJUDQGÀQDOH

7KHÀQDOLVWVRI.3,76SDUNOHKHOGLQ3XQH The Grand Finale was hosted in 26 centers across India ZLWK VKRUWOLVWHG VWXGHQWV ,W ZDV D KRXUV QRQ stop challenge to win over digital challenges faced by the Government of India.

Panel of KPIT Evaluators and Judges interacting with participants at the Grand Finale of Hackathon Eminent dignitaries at KPIT Sparkle 2017

Annual Report 2016-17 99 EMPLOYEE ENGAGEMENT We use energy and spirit of our employees to bring in a positive change in the communities that we live in. One time community engagement activities bolster other focus areas by aligning employees’ time and interest. Be it disaster relief work, donation drives, volunteering drives or workshops, they all instill the commitment of our employees to society’s causes.

¾ Blood Donation Employees Location Partner NGOs Engaged 220 Pune Jankalyan Blood Bank & Deenanath Blood Bank 230 Bangalore Rashtrotthana Blood Bank 75 Mahape Samarpan Blood Bank 60 Noida Rotary Noida Blood Bank Figures represent the number of employees participated and associated Partner NGO

Employees donating blood at various blood donation drives across India KPIT, in association with various NGOs across multiple KPIT locations, organized blood donation camps to support hospitals and blood banks to tackle the blood shortage issue. The event camps received an appreciable response from employees across all locations resulting in 900 units of blood, EHQHÀWLQJOLYHV

Annual Report 2016-17 100 ¾ Annadaan (Food Grains Donation Drive) 2016. Employees participating in the challenge had to log their Food is the basic requirement for all living beings, including community contributions on the app to earn points. With a humans. considerable number taking part, the challenge emerged as a successful hosting platform for KPIT’s CSR activities. KPIT, each year, drives this unique initiative of Annadaan, ZKHUHLQWKHHPSOR\HHVDUHUHTXHVWHGWRVHWDVLGHDÀVWIXOORI grains every day for a period of three weeks. Employees across KPIT India locations participated in amassing 15 tons of food grains and groceries for this year, expected to feed nearly 4,300 EHQHÀFLDULHVDFURVV.3,7,QGLDORFDWLRQVDQGZLWKLQWKHLUYLFLQLW\

6QDSVKRWRIÀUVW&65$SS&KDOOHQJH Groceries contribution during the Food donation drive With an intent of growing people’s consciousness of their Location Collection in No. of No of surroundings and encouraged by previous challenge’s success, kgs Employees %HQHÀFLDULHV WKH VXEVHTXHQW 'HHG$'D\ &KDOOHQJH ORRNHG DW IXUWKHU Involved stimulating employees into a month long challenge with having to act and contribute everyday through the duration Bengaluru 3,000 600 1,000 of it. The challenge focused employees’ logs predominantly Mumbai 2,000 200 400 under community, environment and personal categories. Noida 1,000 200 400 Pune 9,000 1,500 2,500 15,000 2,500 4,300

Annadaan impact statistics from 2016-17

¾ KPIT CSR APP - Quarterly App Challenge In today’s world of smartphones, with increasing amount of time being spent on it, KPIT’s quarterly app challenge was LGHDWHG WR OHYHUDJH RQ WKLV DIÀQLW\ WR VPDUWSKRQH $V SDUW of our “ONE KPIT” initiative and in conjunction with our CSR efforts, we rolled out an interactive Smartphone app, “KPIT … IRUDEHWWHUZRUOGµ7KHDSSFUHDWHGLQDJDPHOLNHIRUPDWLV meant to recognize and encourage efforts of our employees participating in community activities within and outside of the Company.

7KH ÀUVW RI WKH FKDOOHQJHV &65 9ROXQWHHULQJ FKDOOHQJH ZDV Snapshots of second CSR App Challenge a time based challenge, run globally in the month of October

Annual Report 2016-17 101 ¾ Meet the Legends Mrs. Sindhutai Sapkal: Also known To inspire employees into social contribution, we invited as Mother of Orphans, is an Indian luminaries, who have achieved stupendous heights in social worker and social activist known particularly for her work for WKHLU UHVSHFWLYH DUHDV RI H[FHOOHQFH 6RFLDO (QWUHSUHQHXUV raising orphan children. Reformists, Environmentalists, Community Leaders and She has devoted her entire life International Athletes for athletes with special needs. This year, for orphans. As a result, she is KPIT at Pune hosted four such dignitaries – fondly called ‘Mai’(mother). She has nurtured over 1,050 orphaned Dr. Vikas Amte: ‘the Social children. Many of the children whom Mechanic’, as he likes to call VKH DGRSWHG DUH ZHOOHGXFDWHG KLPVHOI VRQ RI %DED $PWH DQ lawyers and doctors, and some, including her biological daughter, HQJLQHHUDWKHDUWWXUQHGPHGLFDO are running their own independent professional, carrying forward the orphanages. One of her children family’s legacy of service to the is doing a PhD on her life. She has society, rooted in indispensable been honored with over 273 awards culture and values. for her dedication and work. Mr. Sunil & Mrs. Nirupama Deshpande: The founders of COMMUNITY INITIATIVES, AMERICA Sampoorna Bamboo Kendra, ¾ Holiday Toy Collection Drive the two have been awarded Dr. Babasaheb Ambedkar ,Q'HFHPEHUWKH5DOHLJK1RUWK&DUROLQDRIÀFHRUJDQL]HG Samaj Bhushan Award and the D KROLGD\ WR\ GULYH LQ ZKLFK WR\V ZHUH FROOHFWHG WR EHQHÀW Madhya Pradesh government’s the Women’s Center of Wake County. With 15 volunteers Shri Agrasen Maharaj Rashtriya contributing, the group was able to collect over 40 new Samman Puruskar for their toys which were donated to a number of extremely thankful relentless work in tribal areas families. The Women’s Center of Wake County provides RI 0HOJKDW ZLWK D YLVLRQ RI FDVH PDQDJHPHQW ÀQDQFLDO DVVLVWDQFH FRXQVHOLQJ QXWULWLRQ Reestablishing Respect & Honor assistance, short term shelter and health education and testing for Artisans in Society. services for single women and women with families. Divyanshu Ganatra: is a clinical psychologist, corporate facilitator by profession, adventure sportsperson by passion and a Hello All!

VHOIPDGH VRFLDO HQWUHSUHQHXU On behalf of the Women’s Center of Wake County, I would like to thank known particularly for his work for each and everyone of you. For all that you have done this year to make our blind & differently abled people. Holiday Hopes program a su could not have done it without you and we Founder of Adventures Beyond appreciate you so much. Again, thanks for making it possible for our women %DUULHUV)RXQGDWLRQ $%%) DQRW and children to have a very Merry Christmas this year. I look forward to IRUSURÀWRUJDQL]DWLRQEDVHGRXW of Pune, to promote “inclusivity,” working with you again this upcoming year. We wish you Merry Christmas Divyanshu spreads awareness and a Happy New Year! that the spirit of adventure is not impeded by disability & Tameka Brown attempts to ward off common Intake & Service Coordinator / Housing Team Leader misconceptions about disability. He happens to be India’s 1st ´:LWKRXWFKDQJHWKHUHZLOOEHQREXWWHUÁLHVµ Blind Solo paragliding pilot where KH·V GHÀHG PHQWDO SK\VLFDO boundaries. A Thank you note for volunteering at Wake County Women Center, Raleigh, NC

Annual Report 2016-17 102 ¾ Senior Design Project and Recruitment Event As students in North America returned to school for the spring semester, the Raleigh team ramped up involvement with North &DUROLQD 6WDWH 8QLYHUVLW\ 1&68 SDUWLFLSDWLQJ LQ ERWK WKH NCSU Senior Design program and a private recruiting event JHDUHGVSHFLÀFDOO\WRZDUGVFRPSXWHUVFLHQFHPDMRUV

The Senior Design program allows corporations from across WKH QDWLRQ WR SURYLGH UHDOZRUOG OHDUQLQJ H[SHULHQFHV IRU .3,7YROXQWHHUVDQG1&68VWXGHQWVDWODXQFKRIÀUVWURERWDW NCSU students as part of the colleges required coursework, TechnoWolves 2017 CSC 492. Organizations provide a problem statement and a ¾ Clothing Donation at Columbus, Indiana mentor team, and the university provides talented students suited to the needs of the project. Under the direction of the Employees from KPIT donated clothes for the underprivileged Columbus community through San Souci, a volunteering Senior Design Center staff, the student teams follow a software organization in Columbus. The employees helped in sorting development methodology, develop project documentation and organizing the donated clothes to be distributed free / and present progress reviews. This unique academic and sold at a very nominal price to the poor and needy people experiential focus gives students the opportunity to enhance in the community. The drive spanning a couple of months their communication, collaboration, project management and engaged 20 of KPIT’s volunteers, supporting 200+ benefactors. OHDGHUVKLS VNLOOV 7KLV FUHDWHV D WUXH ZLQZLQ VLWXDWLRQ IRU both, company sponsors and NCSU students.

KPIT volunteers at the clothes donation drives for the underprivileged Columbus community

¾ Community Website Senior Design Project and recruitment event at NCSU KPIT, in Bartholomew County Financial Literacy Coalition (BCFLC), are helping build a website for the county to increase ¾ TechnoWolves 2017 awareness of Financial Management, among children and KPIT’s team at Raleigh continued their support of the VHQLRU SHRSOH DQG SHRSOHLQQHHG 7KH ZHEVLWH LV H[SHFWHG “TechnoWolves”, a local First Robotics Competition (FRC) WRUDLVHDZDUHQHVVRILQGHSHQGHQWÀQDQFLDOPDQDJHPHQWDQG team. While the robot was just unveiled, the competitions also facilitate basic transitioning. The website from the onset is began in March and continued for several months through the expected to reach an audience of at least 2,000 people and is championship battle. This year’s competition was called First expected to grow with future promotions and provisions. Steam Works and is inspired by steam punk. The competition LQYROYHV SLFNLQJ XS DQG VKRRWLQJ ZKLIÁH EDOOV WUDQVSRUWLQJ ¾ TechExchange gears from a loading station to a lift and climbing a rope (at TechExchange program of Bartholomew County collects the end of the game). Something particularly interesting about donations of used computers, printers, keyboards etc., repairs them and donates / sells at nominal price to poor and needy their robot is how they tackled the autonomous period of the people in the community. It also helps provide computer game. They mounted a camera on their robot, so that it could related service to the senior citizens. In a day long workshop, avoid other robots or unexpected obstacles created during this KPIT’s six employees engaged in disassembling the hardware period.

Annual Report 2016-17 103 components and assembling the repaired peripherals into a the Marathon event by distributing runner packets before the functional system. run and volunteering on the running track during the race day.

KPIT volunteers from Columbus at Mill Race Park clean up and marathon event

¾ Volunteering at Community Food Bank, New Jersey KPIT Volunteers engaged in recovering and reassembling computer hardware KPIT New Jersey volunteered at The Community Food Bank of New Jersey. Six of our volunteers bagged 227 lbs. of pasta, ¾ Volunteering at Urban Roots ATX, Austin which would help feed 900 people. ,Q $XJXVW DV SDUW RI WKH .3,7 $XVWLQ RIÀFH ORFDO &65 initiative, an organization called Urban Roots ATX was sought. Urban Roots ATX uses food and farming to transform the lives of young people and inspire, engage and nourish the community. They have an ongoing youth internship programs where 40% of their produce goes directly to local food pantries, the rest is sold to farmer’s markets.

The KPIT team worked hard physically for a day at the Urban Roots Farm preparing them for the end of the hot Texas KPIT Volunteers bagging pastas for children from community VXPPHU VHDVRQ *HUDUG %XIIRQH IURP .3,7 3DULV RIÀFH DOVR homes of New Jersey chipped in with a helping hand. AWARDS AND ACCOLADES

KPIT Honored with the ‘Special Jury Commendation Award' at FICCI CSR Summit and Awards, 2016

.3,7YROXQWHHUVIURP$XVWLQRIÀFHHQJDJHGLQIDUPERXQG volunteering Special Commendation Award at FICCI CSR Summit 2016 ¾ Mill Race Clean Up and Marathon In September 2016, a team of 8 volunteers from KPIT’s KPIT was specially recognized this year at the Federation of &ROXPEXVRIÀFHKHOSHGFOHDQWKH0LOO5DFH3DUNZDONLQJWUDLO Indian Commerce and Chamber of Industries (FICCI) CSR for the visitors and people in the community in association with Summit 2016 for persistence in its’ Water Conservation Project. United Way. Around 20 volunteers from KPIT, later helped in With an overall 139 entries shortlisted to 39, KPIT was one DPRQJWKHÀQDOWKUHHFRQWHVWDQWV

Annual Report 2016-17 104 Valued Partner Award VOICE OF VOLUNTEERS Youth for Seva, in Bengaluru, recognized KPIT as a valued partner in community development initiatives. This appreciation was conferred at the NGO’s Annual Day Convention on January 22, 2017. “I got involved in Company’s CSR initiative 12 months ago and have really enjoyed partnering with local organizations to make a difference in our community. I just know that we work for a company which is supportive of the local community and isn’t just concerned about how to grow business alone. I am looking forward to the continued work we are going to do next year and beyond.”

KPIT’s volunteers receiving the Valued Partner Recognition at - Erica Rose, Biz HR, KPIT North America Youth for Seva Annual Day in Bengaluru

(PSOR\HH (QJDJHPHQWV YV %HQHÀFLDULHV RI RXU &65 initiatives “Thank you KPIT CSR for encouraging people to take up voluntary responsibility for social and environmental causes, which has become alien to the modern society. I hope that the alert message would have reached the ignorant people at least now.”

- Viswa Narayanan S, volunteer, KPIT Bengaluru

“Everybody should involve in CSR activity As per our CSR guidelines, all practices and initiatives should EH PHWULFVGULYHQ IRU JUHDWHU WUDQVSDUHQF\ DQG WR HQVXUH ZKLFK LV XVHIXO LQ JDLQLQJ FRQÀGHQFH measurable results. We aim to achieve employee engagements enhancing your own skills and personality, equal to or greater than 1.5 times of the total employee strength spreading social awareness which in turn LQ D JLYHQ \HDU )RU WKH \HDU ZH UHDFKHG EH\RQG promotes us to think and work for the EHQHÀFLDULHVZLWKHPSOR\HHHQJDJHPHQWVLQWKH community initiatives. VRFLHW\DQGFRXQWU\ÀUVW:KDW,IHHOLV´7KH ultimate enormous of merriness is doing We, at KPIT, are proud to announce that, in adherence to our such an act which would be propitious for REMHFWLYH WR DFKLHYH HPSOR\HH HQJDJHPHQWV IRU WKH )< others.” ZHFRXOGVXFFHVVIXOO\UHDFKRXWWRPRUHEHQHÀFLDULHVDQG engage more number of employees in CSR initiatives than ever – Shreyas Thakre, volunteer, KPIT Pune before.

Annual Report 2016-17 105 VOICE OF BENEFICIARIES “The biggest advantage of these farm “We would like to thank KPIT for their ponds is that we are now less dependent on rain water. They also replenish ground involvement at our school, their business has water supplies, improve moisture levels in helped our students with opportunities and the soil and recharge borewells. We now job shadows. They have their doors open can have multiple crops. We are 100% for our students and staff to go over and EHQHÀWHGE\WKLVµ visit. They have been involved in working – Balasaheb Malekar, Mangdari village, with our students over their projects here Velha Taluk, Pune District, Maharashtra DWVFKRRODQGRXU5RERWLFVWHDPDQRWKHU fantastic opportunity for students of our “Feels good about Chhote Scientists nature and in our building. So thank you program. At school, we can understand again KPIT for your involvement at our VFLHQFHEHWWHUQRZ,WLVEHQHÀWWLQJDOOWKH school.” students at school. I would like to thank you all organizers for Chhote Scientists.” - David Schwenker, Principal, WAKE STEM – Sanjana Bhond, Pune Early College High School, NC State, USA.

Annual Report 2016-17 106 %XVLQHVV5HVSRQVLELOLW\5HSRUW

SECTION A: GENERAL INFORMATION ABOUT THE Sr. No. Region Country COMPANY 3 APAC China 1. Corporate Identity Number (CIN) of the Company: United Arab Emirates L72200PN1990PLC059594 Australia 2. Name of the Company: KPIT Technologies Limited Japan Korea 3. Registered address: 35 & 36, Rajiv Gandhi Infotech Park, Singapore Phase – I0,'&+LQMDZDGL3XQH 4 Africa South Africa 4. Website: www.kpit.com (b) Number of National Locations: 5. E-mail ID: [email protected] 1. Pune, Maharashtra 6. Financial Year reported 2. Mumbai, Maharashtra 7. Sector(s) that the Company is engaged in (industrial 3. Bengaluru, Karnataka activity code-wise): Computer programming, consultancy 4. Chennai, Tamil Nadu and related activity – Code 62011 5. Noida, Uttar Pradesh 8. List three key products / services that the Company manufactures / provides (as in balance sheet): 10. Markets served by the Company – Local / State / National / International: Company serves the Indian as KPIT business can be broadly divided into two buckets – well as international markets.

A. Services and Solutions Business (S&S) includes SECTION B: FINANCIAL DETAILS OF THE COMPANY 1. Paid up Capital (`) – 394.99 million i. Product Engineering 2. Total Turnover (`) – 13,223.23 million ii. Digital Transformation and 3. 7RWDOSURÀWDIWHUWD[HV `) – 1,692.94 million iii. Business IT and 4. Total spending on Corporate Social Responsibility (CSR) B. Product & Platforms (P&P). DVSHUFHQWDJHRISURÀWDIWHUWD[ ` 9. Total number of locations where business activity is The Company was required to spend 46.42 million (2% of undertaken by the Company (Major locations): WKHDYHUDJHQHWSURÀWRIWKH&RPSDQ\IRUWKUHHÀQDQFLDO years) towards CSR. During the year, the Company has (a) Number of International Locations: spent and paid ` 25.61 million. 5. List of activities in which expenditure in 4 above has Sr. No. Region Country been incurred – 1 USA United States of America 1) Water Conservation Program Canada Brazil 2) Afforestation program 2 Europe United Kingdom 3) Zero Garbage Project France 4) Chhote Scientists Germany 5) Teach for India Netherlands 6) Smart India HACKATHON Italy Sweden 7) Sparkle

Annual Report 2016-17 107 SECTION C: OTHER DETAILS 2. Do the Subsidiary Company / Companies participate in the BR Initiatives of the parent company? If yes, then 1. Does the Company have any Subsidiary Company / indicate the number of such subsidiary company(s). Companies? Yes, two subsidiaries take up BR initiatives in line with the Yes, the Company has the following subsidiaries: initiatives of the parent company.

Sr. Name of Subsidiary Nature 3. Do any other entity / entities (e.g. suppliers, distributors No. etc.) that the Company does business with, participate in 1 KPIT Technologies (UK) Limited Wholly owned subsidiary the BR initiatives of the Company? If yes, then indicate the 2 KPIT Technologies France Wholly owned subsidiary SHUFHQWDJHRIVXFKHQWLW\HQWLWLHV">/HVVWKDQ 3 KPIT Technologies GmbH Subsidiary of KPIT 60%, More than 60%] Technologies (UK) Limited Yes, i.e less than 30% 4 KPIT Technologies Netherlands Wholly owned subsidiary B. V. SECTION D: BR INFORMATION 5 KPIT Solutions GmbH Subsidiary of KPIT 1. Details of Director / Directors responsible for BR: Technologies GmbH 6 KPIT Infosystems Incorporated Wholly owned subsidiary (a) Details of the Director / Directors responsible for 7 Sparta Consulting Inc. Subsidiary of KPIT implementation of the BR policy / policies: Infosystems Incorporated 8KPIT Technologies Solucoes em Subsidiary of KPIT 1. DIN: 02918460 Informatica Ltda. Infosystems Incorporated 2. Name: Mr. Sachin Tikekar 9 SYSTIME Computer Wholly owned subsidiary Corporation 'HVLJQDWLRQ:KROHWLPH'LUHFWRU 10 KPIT Technologies Corporation Subsidiary of Systime Computer Corporation (b) Details of the BR head: 11 MicroFuzzy KPIT Tecnologia Subsidiary of Systime Ltda. Brazil (formerly SYSTIME Computer Corporation Sr. Particulars Details Global Solutions Ltda.) No. 12 KPIT (Shanghai) Software Wholly owned subsidiary 1 DIN 02918460 Technology Co. Limited 2 Name Mr. Sachin Tikekar 13 KPIT Infosystems ME FZE Wholly owned subsidiary 3 Designation :KROHWLPH'LUHFWRU 14 Impact Automotive Solutions Wholly owned subsidiary 4 Telephone number Limited 15 0LFUR)X]]\,QGXVWULH(OHNWURQLF Subsidiary of KPIT 5 (PDLO,' [email protected] GmbH Technologies GmbH

Annual Report 2016-17 108 3ULQFLSOHZLVH DVSHU19*V %53ROLF\SROLFLHV

(a) Details of compliance (Reply in Y / N) Sr. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 No. 1 Do you have a policy / policies for.... Y Y Y Y Y Y Y Y Y 2 Has the policy been formulated in Y Y YYY Y YYY consultation with the relevant stakeholders? 3 Does the policy conform to any national / Y Y YYY Y YYY international standards? If yes, specify? (50 words). These policies have been devised in FRQÀUPDWLRQ WR UHVSHFWLYH UHJXODWLRQV national standards that come into effect from time to time (like ISO 9001, ISO 14000, OHSAS 18000, OHSAS 27001:2005, ISO 20000:2011, ISO 22301:2012). These policies are revisited on regular basis and are updated as and when there is any change in the norms. 4 Has the policy been approved by the Y Y YYY Y YYY Board? If yes, has it been signed by MD / owner / CEO / appropriate Board Director? These policies are signed by the respective owners. 5 'RHV WKH FRPSDQ\ KDYH D VSHFLÀHG Y Y YYY Y YYY FRPPLWWHHRIWKH%RDUG'LUHFWRU2IÀFLDO to oversee the implementation of the policy? 6Indicate the link for the policy to be viewed Code of Available Available CSR POSH & Available Available CSR Code of online? conduct on our on our policy Whistler on our on our Policy conduct & intranet intranet Blower intranet intranet Whistler Policy Blower Policy 7 Has the policy been formally communicated Y Y YYY Y YYY to all relevant internal and external stakeholders? 8 'RHVWKHFRPSDQ\KDYHLQKRXVHVWUXFWXUH Y Y YYY Y YYY to implement the policy / policies. 9 Does the Company have a grievance Y Y YYY Y YYY redressal mechanism related to the policy / policies to address stakeholders’ grievances related to the policy / policies? 10 Has the company carried out independent Y Y YYY Y YYY audit / evaluation of the working of this policy by an internal or external agency?

Annual Report 2016-17 109 (b) If answer to the question at serial number 1 against any 2. Does it extend to the Group / Joint Ventures / Suppliers / principle, is ‘No’, please explain why: (Tick up to 2 options) Contractors / NGOs / Others?

Sr. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 The policy covers employees of the Company as well as No. its Subsidiaries, contractual service providers, contractors, 1 The company has customers & other third parties dealing with the Company. not understood the 3. How many stakeholder complaints have been received Principles LQ WKH SDVW ÀQDQFLDO \HDU DQG ZKDW SHUFHQWDJH ZDV 2 The company is not satisfactorily resolved by the management? If so, provide at a stage where details thereof, in about 50 words or so. LW ÀQGV LWVHOI LQ D position to formulate During the year, 3 complaints were registered with SEBI and implement the which were resolved successfully. SROLFLHV RQ VSHFLÀHG The Company’s Code of Conduct summarizes the conducts principles of its business in accordance with the requirements of 3 The company does Not Applicable all laws and regulations of the country and in a manner QRW KDYH ÀQDQFLDO RU consistent with the highest standards of business and manpower resources professional ethics. available for the task 4It is planned to be The KPIT Code of Conduct is applicable to all KPIT done within next 6 Technologies directors and employees (all KPIT managers months and employees, including managers and employees of its 5It is planned to be GLYLVLRQV VXEVLGLDULHV DQG RWKHU DIÀOLDWHV ZRUOGZLGH DV done within the next well as agents and contractors working on behalf of the 1 year &RPSDQ\LWVVXEVLGLDULHVDQGDIÀOLDWHV 6 Any other reason The scope of the Code is to outline and create a set of (please specify) values for all concerned people to behave in an ethical 3. Governance related to BR manner while working for and on behalf of the Company. It takes into account factors like regulatory compliance, (a) Indicate the frequency with which the Board of HTXDO HPSOR\PHQW RSSRUWXQLW\ QRQKDUDVVPHQW Directors, Committee of the Board or CEO to assess prevention of sexual harassment, prevention of use of the BR performance of the Company. Within 3 alcohol, illegal drug or medication, use of Company’s, PRQWKVPRQWKV$QQXDOO\0RUHWKDQ\HDU Customers’ and Suppliers’ resources and competition.

Annually Prevention of Sexual Harassment (POSH) policy: The policy framework aims at educating employees on any (b) Does the Company publish a BR or a Sustainability sort of harassment (including sexual harassment) and Report? What is the hyperlink for viewing this report? report about it appropriately when seen or experienced at How frequently it is published? : the workplace. All the cases are acted upon immediately DQGFRUUHFWLYHDFWLRQVDUHWDNHQ(OHDUQLQJRQ326+KDV The Company publishes the Sustainability report been mandated for all employees. yearly. The same is available on (https://www.kpit. FRPFRPSDQ\LQYHVWRUVFRUSRUDWHJRYHUQDQFH Principle 2

SECTION E: PRINCIPLE-WISE PERFORMANCE 1. List upto 3 of your products or services whose design has incorporated social or environmental concerns, risks and / Principle 1 or opportunities.

1. Does the policy relating to ethics, bribery and corruption KPIT business is broadly divided as Services and Solutions cover only the company? Business (S&S) and Products & Platforms (P&P) which does not have a direct impact on social and environment factors. No, it also covers the Subsidiary Companies.

Annual Report 2016-17 110 However, KPIT believes in reduction in carbon footprint 7RWDOXQLWVJHQHUDWHGWKURXJKWKLVSODQWZLOOEH being the major cause of global warming. As a result, KPIT 180,000 units p.a. KDVFRPHXSZLWKDKROLVWLFVROXWLRQIRUHIÀFLHQWWUDQVSRUW PDQDJHPHQW D 6PDUW (OHFWULF EXV D UHOLDEOH VDIH DQG 7KHVH XQLWV ZLOO VDYH XS WR RI WRWDO well suited commute for Indian road conditions. The aim consumption of SDB1 of this project is to develop indigenous, innovative and 7KLVLQVWDOODWLRQZLOOUHGXFHWKHLPSDFWRIGLUHFW pollution free transport. It enables clean mobility and is VXQOLJKWRQWKHURRIWRSRIFDIHWHULD7KHÁRRUV aligned with the Indian Governments initiatives of Make in below will be much cooler and employees will India and Swachh Bharat and KPIT’s moto for technologies get more comfort during summers for a better world.

2. For each such product, provide the following details in 7KLVV\VWHPLVGLUHFWO\FRQQHFWHGWRWKHPDLQ/7 respect of resource use (energy, water, raw material etc.) SDQHOIHHGHUVRZHZLOOJHWEHQHÀWLQUHGXFLQJ per unit of product (optional): the MSEDCL KWH units (a) Reduction during sourcing / production / distribution 7KHVH XQLWV ZLOO KDYH D À[HG UDWH IRU QH[W achieved since the previous year throughout the years resulting in a saving of ` 2 lakhs p.a. with value chain? existing rate of MSEDCL

(b) Reduction during usage by consumers (energy, E-waste Management: water) has been achieved since the previous year? We have a waste management policy in place, which The Smart Electric buses have multiple features like LV WKH GHÀQLQJ JXLGHOLQH IRU KDQGOLQJ DOO W\SHV RI Intelligent Transport Systems, Mobile Phone App for waste and complying with the Government and MRXUQH\ SODQQLQJ DQG WLFNHWLQJ :L)L ,QIRWDLQPHQW HWF Maharashtra Pollution Control Board (MPCB) norms. which provide a superior ride experience that can help encourage adoption of public transport. Hazardous Waste:

3. Does the company have procedures in place for Hazardous waste is disposed through authorized sustainable sourcing (including transportation)? agencies as per the guidelines of Ministry of (a) If yes, what percentage of your inputs was sourced Environment and Forests (MoEF). Additionally, all sustainably? Also, provide details thereof, in about the used printer cartridges are sent back to the 50 words or so. manufacturer under “Planet HP Take Back Program” to ensure proper recycling. Sustainable sourcing at KPIT represents contribution to the following areas namely: Solar Energy, 4. Has the company taken any steps to procure goods Waste Management, Environment Awareness and and services from local & small producers, including Occupational Health & Safety. communities surrounding their place of work?

Solar Energy: Solar Panel Installation (a) If yes, what steps have been taken to improve their capacity and capability of local and small vendors? We have initiated many projects to cut down energy and water consumption. The latest project The Company through its CSR activities contributes undertaken is to generate energy through solar to the society through its projects like Water & Forest power plant which has been installed on the roof top Conservation, Jalyukta Shivir Abhiyan, Zero Garbage, RI&RUSRUDWH2IÀFHDW3XQH Tree plantation, teaching the under privileged Highlights of the project: schools, donating school kits in association with agencies. 6RODU V\VWHP LV LQVWDOOHG RQ SRZHU SXUFKDVH model A stall of bamboo products was put up in the Company campus where the employees could buy 6\VWHP KDV SDQHOV LQVWDOOHG ZLWK D bamboo products made by people of Sampoorna generation capacity of 125KW

Annual Report 2016-17 111 Bamboo Kendra Melghat. The Company also 5. Do you have an employee association that is recognized organized Recycle Product stall and an Organic by management. Product stall in partnership with Youth for Seva. No. The Company makes sure that the housekeeping and security staff is hired from in and around the 6. What percentage of your permanent employees are areas where the Company is located, resulting in members of this recognized employee association? good opportunities for villages nearby. Through this Not applicable. the Company contributes to the society in which it exists. 7. Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual 5. Does the company have a mechanism to recycle products KDUDVVPHQWLQWKHODVWÀQDQFLDO\HDUDQGSHQGLQJDVRQ and waste? If yes, what is the percentage of recycling of WKHHQGRIWKHÀQDQFLDO\HDU products and waste (separately as 10%). Also, provide details thereof, in about 50 words or so. Sr. Category No. of No. of The Company has taken the following initiatives to recycle No. complaints complaints products and waste: ÀOHGGXULQJ pending as WKHÀQDQFLDO on end of 5HF\FODEOHZDVWHVXFKDVSDSHUSODVWLFFDUGSDSHU year WKHÀQDQFLDO steel, other metals, etc. are sent for recycling through year authorized scrap dealers 1 Child labour / NILNIL 2WKHUPL[HGGU\ZDVWHDUHVHQWWRDXWKRUL]HGGHDOHUV forced labour / for municipal disposal involuntary labour +D]DUGRXV ZDVWH DQG HZDVWH ² OLNH ZDVWH OXEH 2 Sexual harassment 10 RLO 836 EDWWHULHV DQG RWKHU HZDVWH JHQHUDWHG LQ 3 Discriminatory NILNIL the organization is disposed through government employment authorized recycler 8. What percentage of your under mentioned employees 3ULQWHU DQG WRQHU FDUWULGJHV DUH VHQW EDFN WR WKH were given safety & skill upgradation training in the last 2(0XQGHUSURGXFWWDNHEDFNDUUDQJHPHQW year? Principle 3 (a) Permanent Employees: 35% 1. Please indicate the total number of employees. (b) Permanent Women Employees: 11% 9,395 (c) Casual / Temporary / Contractual Employees: 0.2% 2. Please indicate the total number of employees hired on temporary / contractual / casual basis. (d) Employees with Disabilities: The company do not segregate the employees based on special ability RIHPSOR\HHVDUHKLUHGWKURXJKFRQWUDFWRUVDQGVXE but as need be they are given preferences as per contractors. needs. 3. Please indicate the number of permanent women employees. $OOHPSOR\HHVSDUWLFLSDWHLQWKHVDIHW\DQGPRFNÀUHGULOOV which take place at regular intervals. 24% are women employees We undertake several initiatives to upskill our employees. 4. Please indicate the number of permanent employees with Be it the campus recruits or the experienced hires, we disabilities. have tailored competency development plan for all the employees who need it. A few of them include: Less than 1%.

Annual Report 2016-17 112 3URJUDP IRU $FDGHPLF &ROODERUDWLRQ $FFRXQW0DQDJHPHQW(GXFDWLRQ3URJUDP Engagement (PACE): Organization has absolute focus to grow the GAM A strategic initiative to bridge the gap between accounts. In line with this business need we have academia and industry needs, KPIT has trained designed an exclusive offering, called ACE program, college students as well as conducted multiple for Account managers to build Account Management Faculty Development programs. We now have 17 competencies. PACE partner colleges where we go for campus hiring for our business units. (&R'H_.$,=(1

*(1(6,6 The Company believes that for employees to effectively perform their role appropriate skills, We ensure that campus hires at KPIT are adequately knowledge and competencies are needed. Thus, we trained and are made available in time for project FUHDWHG (&R'(_ .$,=(1 D &HUWLÀFDWLRQ IUDPHZRUN deployment. Genesis program has a robust training FRQVLVWLQJRI7UDLQLQJ &HUWLÀFDWLRQVFRQGXFWHGIRU and assessment structure and is completely driven employees on permanent roles from A – I grades, in house by a competent team of educators from the DFURVV VL[ FRPSHWHQFLHV 7HFKQLFDO 'RPDLQ respective academies. Process, Project management, Professional skills and /HDGHUVKLSGHYHORSPHQW7KH6%8VSHFLÀFDFDGHP\ We inducted and trained about 1,109 campus educators work closely with businesses to develop, UHFUXLWVWKLV\HDUZKLFKLQFOXGHVERWK%(DQGQRQ%( create and deliver these trainings. This program trainees. ZDVDOVRUROOHGRXWIRUWKHÀUVWWLPHWRRXURQVKRUH employees covering 800 employees worldwide. 3URIHVVLRQDO6NLOOV'HYHORSPHQW /HDGHUVKLS'HYHORSPHQW3URJUDPV $ ZHOOVWUXFWXUHG SURIHVVLRQDO VNLOO GHYHORSPHQW program, built around 5 core Competencies is ¾ LIFT: This program is run in collaboration with available to KPIT employees. We now have a bouquet HR. The details have been already highlighted of 20+ Professional skills development programs in the HR section. that can be offered to employees across the grades. ¾ Leaders in the Making Program (LMP): This 3URMHFW 0DQDJHPHQW 'HYHORSPHQW 3URJUDP is a Leadership development program for E & (PMDP): F grade employees, who have been promoted and will be taking up larger responsibilities Project Management being the core competency within the organization. It is a short burst requirement for the delivery excellence, we have program that helps these leaders learn key skills PXOWLSOHOHYHOVRI3URMHFW0DQDJHPHQWFHUWLÀFDWLRQV on People, Client, Operational and Financial under PMDP for the beginners, advanced, specialized Management. and leadership levels. Majority of these programs are internally developed and delivered and the ¾ 100 X 100 Leadership Program: This is a leadership level program is being delivered through leadership development program in planning the reputed management institution like IIMs. phase for G+ grade associates and is specially designed to highlight and reinforce the critical 7UDLQLQJVIRU6XSSRUW)XQFWLRQV “KPIT Leadership Mindset Tenets” to be developed amongst leaders. The program is The focus is also on competency development for being designed on the belief that if we develop support functions. Trainings are in place for Facilities at least 100 leaders who are seen as role models and Logistic Management team, Global Mobility in the company, we would have secured the Management team and will be extended to other future generation of leaders by strengthening enabling functions like ECoDe, Recruitment, HR. the KPIT DNA.

Annual Report 2016-17 113 Principle 4 iv) Employee Engagement: Maximizing impact through responsible volunteering 1. Has the company mapped its internal and external stakeholders? Yes / No For details please refer Community Initiatives which forms a part of this Annual Report. Yes. KPIT has mapped its internal and external shareholders and their mode of engagement is as below: Principle 5

1. Does the policy of the company on human rights cover Stakeholders Mode of Engagement only the company or extend to the Group / Joint Ventures / Government and Industry body / forums Suppliers / Contractors / NGOs / Others? regulatory authorities Employees Newsletters, employee The policies not only cover employees but also contractors, satisfaction survey and clients and others. various trainings, rewards and 2. How many stakeholder complaints have been received in recognitions, meeting with WKHSDVWÀQDQFLDO\HDUDQGZKDWSHUFHQWZDVVDWLVIDFWRULO\ eminent personalities and team resolved by the management? building activities Local community CSR activities No complaints received which in line with qualifying as Investors and Analyst calls, AGM and annual QRQFRPSOLDQFHWR+XPDQ5LJKWV shareholders report Principle 6 Bankers, customers & Visits vendors 1. Does the policy related to Principle 6 cover only the company or extends to the Group / Joint Ventures / 2XW RI WKH DERYH KDV WKH FRPSDQ\ LGHQWLÀHG WKH Suppliers / Contractors / NGOs / others. disadvantaged, vulnerable & marginalized stakeholders? 3ROLF\FRYHUVRQO\WKHDFWLYLWLHVLQ.3,7&RUSRUDWHRIÀFH Yes. Pune and does not extends to Group / Joint Ventures / Suppliers / Contractors / NGOs / others. 3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and 2. Does the company have strategies / initiatives to address marginalized stakeholders? If so, provide details thereof, global environmental issues such as climate change, in about 50 words or so. global warming, etc.? Y / N. If yes, please give hyperlink for webpage etc. Community Contribution is one of the seven core values DW .3,7,W KDV D VLJQLÀFDQW PHQWLRQ LQ RXU 0LVVLRQ DQG KWWSVZZZNSLWFRPFRPSDQ\LQYHVWRUVFRUSRUDWH 9LVLRQWRUHÁHFWRXUFRPPLWPHQWWRZDUGVLW&RQVLGHULQJ governance). our capabilities and the need of the communities that we 3. Does the company identify and assess potential serve, we have reassessed the focus of our CSR initiatives. environmental risks? Actions in line with CSR guiding principles, our strategies IRU WKH \HDU DUH IRFXVHG RQ NH\ LQLWLDWLYHV WR Yes. HQVXUHVLJQLÀFDQWLPSDFW7KHLQLWLDWLYHVDUHLPSOHPHQWHG through 4 focus areas: 4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, i) Environment: Making this planet a better place to in about 50 words or so. Also, if Yes, whether any live in HQYLURQPHQWDOFRPSOLDQFHUHSRUWLVÀOHG"

ii) Education: Transforming lives through science and Not applicable. technology education 5. Has the company undertaken any other initiatives on – iii) Energy: 'HYHORSLQJLQQRYDWHVROXWLRQVIRUHIÀFLHQW FOHDQ WHFKQRORJ\ HQHUJ\ HIÀFLHQF\ UHQHZDEOH HQHUJ\ energy consumption and renewable supply etc. Y / N. If yes, please give hyperlink for web page etc

Annual Report 2016-17 114

c. Hinjawadi Industries Association (HIA) :H KDYH D GHJUHH DSSURDFK ZKLOH DVVHVVLQJ DQ\ project. Thus, in line with this we have in place a committee 2. Have you advocated / lobbied through above associations or a team of experts outside the stakeholders involved for the advancement or improvement of public good? in the project. Dr. Rajendra Singh Rana also known as

Annual Report 2016-17 115 “The Water Man of India” visited our Water Conservation 2. Does the company display product information on Project sites at four different villages in Velha Tehsil, Pune. the product label, over and above what is mandated +HLVDZHOONQRZQZDWHUFRQVHUYDWLRQLVWIURP5DMDVWKDQ as per local laws? Yes / No / N.A. / Remarks (additional Dr. Rajendra Singh Rana was extremely delighted to information). know about KPIT’s efforts and initiatives towards water Not applicable. conservation. He acknowledged and appreciated the work carried out by KPIT volunteers in association with ,V WKHUH DQ\ FDVH ÀOHG E\ DQ\ VWDNHKROGHU DJDLQVW WKH our NGO partner, Jnana Prabodhini. Further, he also company regarding unfair trade practices, irresponsible guided us with his valuable suggestions. DGYHUWLVLQJ DQG RU DQWLFRPSHWLWLYH EHKDYLRXU GXULQJ WKHODVWÀYH\HDUVDQGSHQGLQJDVRQHQGRIÀQDQFLDO\HDU As a practice, we interview the local people where the If so, provide details thereof, in about 50 words or so. initiatives were conducted to ensure that the initiatives NIL. taken by the Company are successfully adopted and are EHQHÀWHGWRWKHVRFLHW\DWODUJH 4. Did your company carry out any consumer survey / consumer satisfaction trends? Principle 9 Yes, customers share their feedback quarterly (or at 1. What percentage of customer complaints / consumer GHÀQHG IUHTXHQF\ DJUHHG ZLWK FXVWRPHU WKURXJK D FDVHVDUHSHQGLQJDVRQWKHHQGRIÀQDQFLDO\HDU" ZHE EDVHG V\VWHP &6$7 6XUYH\ FRQVLGHULQJ YDULRXV SDUDPHWHUV OLNH 'HOLYHU\ 4XDOLW\ &RVW 5HVSRQVLYHQHVV NIL. etc.

Annual Report 2016-17 116 Independent Auditors’ Report

To the Members of KPIT Technologies Limited

Report on the Standalone Ind AS Financial Statements :HKDYHDXGLWHGWKHDFFRPSDQ\LQJVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWVRI.3,77HFKQRORJLHV/LPLWHG ´WKH&RPSDQ\µ ZKLFK FRPSULVHWKH%DODQFH6KHHWDVDW0DUFKDQGWKH6WDWHPHQWRI3URÀWDQG/RVV LQFOXGLQJ2WKHU&RPSUHKHQVLYH,QFRPH WKH &DVK)ORZ6WDWHPHQWDQGWKH6WDWHPHQWRI&KDQJHVLQ(TXLW\IRUWKH\HDUWKHQHQGHGDQGDVXPPDU\RIWKHVLJQLÀFDQWDFFRXQWLQJ policies and other explanatory information.

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Auditor’s Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW :HKDYHWDNHQLQWRDFFRXQWWKHSURYLVLRQVRIWKH$FWWKHDFFRXQWLQJDQGDXGLWLQJVWDQGDUGVDQGPDWWHUVZKLFKDUHUHTXLUHGWREH included in the audit report under the provisions of the Act and the Rules made thereunder. :HFRQGXFWHGRXUDXGLWRIWKHVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKWKH6WDQGDUGVRQ$XGLWLQJVSHFLÀHGXQGHU 6HFWLRQ RIWKH$FW7KRVH6WDQGDUGVUHTXLUHWKDWZHFRPSO\ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQDQGSHUIRUPWKHDXGLWWR REWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS ÀQDQFLDOVWDWHPHQWV7KHSURFHGXUHVVHOHFWHGGHSHQGRQWKHDXGLWRU·VMXGJPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKHULVNVRIPDWHULDO PLVVWDWHPHQWRIWKHVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU,QPDNLQJWKRVHULVNDVVHVVPHQWVWKH DXGLWRUFRQVLGHUVLQWHUQDOÀQDQFLDOFRQWUROUHOHYDQWWRWKH&RPSDQ\·VSUHSDUDWLRQRIWKHVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWV WKDWJLYHDWUXHDQGIDLUYLHZLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHV$QDXGLWDOVRLQFOXGHV evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the &RPSDQ\·V'LUHFWRUVDVZHOODVHYDOXDWLQJWKHRYHUDOOSUHVHQWDWLRQRIWKHVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWV :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIÀFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQWKH VWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWV

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For B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/ W-100022

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Annual Report 2016-17 118 Annexure A to the Independent Auditors’ Report – 31 March 2017 :LWKUHIHUHQFHWRWKH$QQH[XUHUHIHUUHGWRLQSDUDJUDSKRI5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWVRIWKH,QGHSHQGHQW $XGLWRUV·5HSRUWWRWKHPHPEHUVRIWKH&RPSDQ\RQWKHVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK ZHUHSRUWWKDW L D 7KH&RPSDQ\KDVPDLQWDLQHGSURSHUUHFRUGVVKRZLQJIXOOSDUWLFXODUVLQFOXGLQJTXDQWLWDWLYHGHWDLOVDQGVLWXDWLRQRIÀ[HG assets. E 7KH&RPSDQ\KDVDUHJXODUSURJUDPRISK\VLFDOYHULÀFDWLRQRILWVÀ[HGDVVHWVE\ZKLFKLWVÀ[HGDVVHWVDUHYHULÀHGLQD SKDVHGPDQQHUHYHU\\HDU,QRXURSLQLRQWKLVSHULRGLFLW\RISK\VLFDOYHULÀFDWLRQLVUHDVRQDEOHKDYLQJUHJDUGWRWKHVL]HRI WKH&RPSDQ\DQGWKHQDWXUHRILWVÀ[HGDVVHWV1RPDWHULDOGLVFUHSDQFLHVZHUHQRWLFHGRQVXFKYHULÀFDWLRQ F 7KHWLWOHGHHGVRIWKHLPPRYDEOHSURSHUWLHVDUHKHOGLQWKHQDPHRIWKH&RPSDQ\ LL 7KHLQYHQWRU\KDVEHHQSK\VLFDOO\YHULÀHGE\WKHPDQDJHPHQWGXULQJWKH\HDU,QRXURSLQLRQWKHIUHTXHQF\RIVXFKYHULÀFDWLRQ LVUHDVRQDEOHDQGWKHUHZHUHQRPDWHULDOGLVFUHSDQFLHVQRWHGGXULQJVXFKYHULÀ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ct during the year. Y 7KH&RPSDQ\KDVQRWDFFHSWHGDQ\GHSRVLWVIURPWKHSXEOLF YL 7KH&HQWUDO*RYHUQPHQWKDVQRWSUHVFULEHGWKHPDLQWHQDQFHRIFRVWUHFRUGVXQGHUVHFWLRQ RIWKH$FWIRUDQ\RIWKH VHUYLFHVUHQGHUHGRUSURGXFWVPDQXIDFWXUHGE\WKH&RPSDQ\ YLL D $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVDQGRQWKHEDVLVRIRXUH[DPLQDWLRQRIWKHUHFRUGVRIWKH &RPSDQ\DPRXQWVGHGXFWHGDFFUXHGLQWKHERRNVRIDFFRXQWLQUHVSHFWRIXQGLVSXWHGVWDWXWRU\GXHVLQFOXGLQJ3URYLGHQW IXQG,QFRPHWD[6HUYLFHWD[GXW\RIFXVWRPVGXW\RIH[FLVH6DOHVWD[(PSOR\HHV·6WDWH,QVXUDQFHDQGRWKHUPDWHULDO VWDWXWRU\GXHVKDYHJHQHUDOO\EHHQUHJXODUO\GHSRVLWHGGXULQJWKH\HDUE\WKH&RPSDQ\ZLWKWKHDSSURSULDWHDXWKRULWLHV $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVQRXQGLVSXWHGDPRXQWVSD\DEOHLQUHVSHFWRI3URYLGHQWIXQG ,QFRPHWD[6HUYLFHWD[GXW\RIFXVWRPVGXW\RIH[FLVH6DOHVWD[(PSOR\HHV·6WDWH,QVXUDQFHDQGRWKHUPDWHULDOVWDWXWRU\ GXHVZHUHLQDUUHDUVDVDW0DUFKIRUDSHULRGRIPRUHWKDQVL[PRQWKVIURPWKHGDWHWKH\EHFDPHSD\DEOH E $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKHUHDUHQRGXHVRI,QFRPHWD[6HUYLFHWD[6DOHVWD[YDOXH DGGHGWD[GXW\RIFXVWRPVDQGGXW\RIH[FLVHZKLFKKDYHQRWEHHQGHSRVLWHGE\WKH&RPSDQ\RQDFFRXQWRIGLVSXWHV H[FHSWIRUWKHIROORZLQJ Name of the Statute Nature of Dues Forum where the dispute is Period to which Amount Amount pending the amount demanded paid relates ` million ` Million ,QFRPH7D[$FW Income Tax Income Tax Appellate Tribunal ,QFRPH7D[$FW Income Tax &RPPLVVLRQHURI,QFRPH7D[ DQG Nil Appeals ,QFRPH7D[$FW Income Tax $VVLVWDQW&RPPLVVLRQHURI Nil Income Tax )LQDQFH$FW Service tax &HQWUDO([FLVH 6HUYLFH7D[ 2FWREHUWR Nil Appellate Tribunal 'HFHPEHU )LQDQFH$FW Service tax &RPPLVVLRQHURI6HUYLFH7D[ 2FWREHUWR 27.72 0DUFK &HQWUDO6DOHV7D[$FW Sales Tax 'HSXW\&RPPLVVLRQHURI6DOHV Nil 7D[ $SSHDOV

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For B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/ W-100022

Vijay Mathur 3ODFH3XQH 3DUWQHU 'DWH$SULO 0HPEHUVKLS1R

Annexure B to the Independent Auditors’ Report on the Standalone Ind AS Financial Statements of KPIT Technologies Limited 5HIHUUHGWRLQSDUDJUDSK I LQ5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWVRIWKH,QGHSHQGHQW$XGLWRUV·5HSRUWWRWKH PHPEHUVRI.3,77HFKQRORJLHV/LPLWHGRQWKHVWDQGDORQH,QG$6ÀQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

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Annual Report 2016-17 120 Auditor’s Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKH&RPSDQ\·VLQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJEDVHGRQRXUDXGLW :HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ WKH ´*XLGDQFH1RWHµ DQGWKH6WDQGDUGVRQ$XGLWLQJLVVXHGE\,&$,DQGGHHPHGWREHSUHVFULEHGXQGHUVHFWLRQ RIWKH&RPSDQLHV $FWWRWKHH[WHQWDSSOLFDEOHWRDQDXGLWRILQWHUQDOÀQDQFLDOFRQWUROVERWKDSSOLFDEOHWRDQDXGLWRI,QWHUQDO)LQDQFLDO&RQWUROV DQGERWKLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD7KRVH6WDQGDUGVDQGWKH*XLGDQFH1RWHUHTXLUHWKDWZHFRPSO\ ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUDGHTXDWHLQWHUQDOÀQDQFLDO FRQWUROVRYHUÀQDQFLDOUHSRUWLQJZDVHVWDEOLVKHGDQGPDLQWDLQHGDQGLIVXFKFRQWUROVRSHUDWHGHIIHFWLYHO\LQDOOPDWHULDOUHVSHFWV 2XUDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDGHTXDF\RIWKHLQWHUQDOÀQDQFLDOFRQWUROVV\VWHPRYHU ÀQDQFLDOUHSRUWLQJDQGWKHLURSHUDWLQJHIIHFWLYHQHVV2XUDXGLWRILQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJLQFOXGHGREWDLQLQJ DQXQGHUVWDQGLQJRILQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJDVVHVVLQJWKHULVNWKDWDPDWHULDOZHDNQHVVH[LVWVDQGWHVWLQJ DQGHYDOXDWLQJWKHGHVLJQDQGRSHUDWLQJHIIHFWLYHQHVVRILQWHUQDOFRQWUROEDVHGRQWKHDVVHVVHGULVN7KHSURFHGXUHVVHOHFWHGGHSHQG RQWKHDXGLWRU·VMXGJHPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHÀQDQFLDOVWDWHPHQWVZKHWKHUGXH to fraud or error. :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIÀFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQWKH &RPSDQ\·VLQWHUQDOÀQDQFLDOFRQWUROVV\VWHPRYHUÀQDQFLDOUHSRUWLQJ

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Opinion ,QRXURSLQLRQWKH&RPSDQ\KDVLQDOOPDWHULDOUHVSHFWVDQDGHTXDWHLQWHUQDOÀQDQFLDOFRQWUROVV\VWHPRYHUÀQDQFLDOUHSRUWLQJDQG VXFKLQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJZHUHRSHUDWLQJHIIHFWLYHO\DVDW0DUFKEDVHGRQWKHLQWHUQDOFRQWURO RYHUÀQDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHGE\WKH&RPSDQ\FRQVLGHULQJWKHHVVHQWLDOFRPSRQHQWVRILQWHUQDOFRQWUROVWDWHGLQWKH *XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI India.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/ W-100022

Vijay Mathur 3ODFH3XQH 3DUWQHU 'DWH$SULO 0HPEHUVKLS1R

Annual Report 2016-17 121 Balance Sheet

$PRXQWLQ`PLOOLRQ Note As at As at As at 31 March 2017 31 March 2016 01 April 2015 ASSETS Non-current assets 3URSHUW\SODQWDQGHTXLSPHQW 3A &DSLWDOZRUNLQSURJUHVV Intangible assets 3B Intangible assets under development )LQDQFLDODVVHWV Investments Loans 2WKHUÀQDQFLDODVVHWV 22.02 ,QFRPHWD[DVVHWV QHW 'HIHUUHGWD[DVVHWV QHW 7 2WKHUQRQFXUUHQWDVVHWV 37.12 10,510.08 8,916.79 8,675.28 Current assets Inventories )LQDQFLDODVVHWV Investments 10 Trade receivables 11 &DVKDQGFDVKHTXLYDOHQWV 12 2WKHUEDODQFHVZLWKEDQNV 12 Loans 13 Unbilled revenue 323.71 2WKHUÀQDQFLDODVVHWV 2WKHUFXUUHQWDVVHWV 8,689.74 7,996.76 8,450.18

TOTAL ASSETS 19,199.82 16,913.55 17,125.46

EQUITY AND LIABILITIES Equity (TXLW\VKDUHFDSLWDO 2WKHUHTXLW\ 32 13,743.20 12,191.27 10,727.77

Annual Report 2016-17 122 Balance Sheet

$PRXQWLQ`PLOOLRQ Note As at As at As at 31 March 2017 31 March 2016 01 April 2015 Liabilities Non-current liabilities )LQDQFLDOOLDELOLWLHV %RUURZLQJV 17 Provisions 1,251.66 1,903.19 833.40 Current liabilities )LQDQFLDOOLDELOLWLHV %RUURZLQJV Trade payables 20 2WKHUÀQDQFLDOOLDELOLWLHV 21 2WKHUFXUUHQWOLDELOLWLHV 22 Provisions 23 127.12 &XUUHQWLQFRPHWD[OLDELOLWLHV QHW 130.07 4,204.96 2,819.09 5,564.29

TOTAL EQUITY AND LIABILITIES 19,199.82 16,913.55 17,125.46

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As per our report of even date attached For B S R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants KPIT TECHNOLOGIES LIMITED Firm Registration Number: 101248W / W-100022

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Annual Report 2016-17 123 6WDWHPHQWRI3URÀWDQG/RVV

$PRXQWLQ`PLOOLRQ Note For the year ended For the year ended 31 March 2017 31 March 2016 Revenue from operations 2WKHULQFRPH Total income 13,382.63 12,917.93 Expenses &RVWRIPDWHULDOVFRQVXPHG 233.03 &KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVDQGZRUNLQSURJUHVV 27 (PSOR\HHEHQHÀWVH[SHQVH )LQDQFHFRVWV 'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH 3 ([FLVHGXW\ 2WKHUH[SHQVHV 30 Total expenses 11,400.19 10,424.16 3URÀWEHIRUHWD[ 1,982.44 2,493.77 Tax expense &XUUHQWWD[ MAT credit entitlement 'HIHUUHGWD[ EHQHÀW FKDUJH Total tax expense 289.50 462.09 3URÀWIRUWKH\HDU 1,692.94 2,031.68 Other comprehensive income ,WHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀWRUORVV 5HPHDVXUHPHQWVRIGHÀQHGEHQHÀWSODQV ,QFRPHWD[RQLWHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀWRUORVV 13.13

,WHPVWKDWZLOOEHUHFODVVLÀHGWRSURÀWRUORVV (IIHFWLYHSRUWLRQRIJDLQV ORVVHV RQKHGJLQJLQVWUXPHQWVLQFDVKÁRZKHGJHV ,QFRPHWD[RQLWHPVWKDWZLOOEHUHFODVVLÀHGWRSURÀWRUORVV 1.27 Total other comprehensive income 23.07 (32.87)

Total comprehensive income for the year 1,716.01 1,998.81

Earnings per equity share for continuing operations (face value per share ` 2 each) Basic 'LOXWHG 10.17 6LJQLÀFDQWDFFRXQWLQJSROLFLHV 1 1RWHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV As per our report of even date attached For B S R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants KPIT TECHNOLOGIES LIMITED Firm Registration Number: 101248W / W-100022

Vijay Mathur Anil Patwardhan S. B. (Ravi) Pandit Partner &KLHI)LQDQFLDO2IÀFHU &KDLUPDQ *URXS&(2 0HPEHUVKLS1R Sneha Padve Kishor Patil &RPSDQ\6HFUHWDU\ &(2 0DQDJLQJ'LUHFWRU

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Annual Report 2016-17 124 6WDWHPHQWRIFDVKÁRZV

$PRXQWLQ`PLOOLRQ PARTICULARS For the year ended For the year ended 31 March 2017 31 March 2016 A] CASH FLOW FROM OPERATING ACTIVITIES 3URÀWIRUWKH\HDU Adjustments for Income tax expense 3URÀW/RVVRQVDOHRIÀ[HGDVVHWV QHW 'HSUHFLDWLRQ$PRUWL]DWLRQ :ULWHGRZQRIVORZPRYLQJLQYHQWRU\ Interest expense Interest income 'LYLGHQGLQFRPH 8QUHDOLVHGIRUHLJQH[FKDQJHORVV JDLQ Provision for doubtful debts %DGGHEWVZULWWHQRII 0.02 Share based compensation expenses 30.73 2SHUDWLQJ3URÀWEHIRUHZRUNLQJFDSLWDOFKDQJHV Adjustments for changes in working capital: Trade receivables and unbilled revenue Inventories /RDQVRWKHUÀQDQFLDOVDVVHWVDQGRWKHUDVVHWV Trade Payables 2WKHUÀQDQFLDOOLDELOLWLHVRWKHUOLDELOLWLHVDQGSURYLVLRQV &DVKJHQHUDWHGIURPRSHUDWLRQV Taxes Paid Net cash from operating activities (A) 1,259.62 3,598.73

B] CASH FLOW FROM INVESTING ACTIVITIES 3XUFKDVHRI)L[HG$VVHWV 3URFHHGVIURP6DOHRI)L[HG$VVHWV ,QYHVWPHQWLQ(TXLW\6KDUHVRI6XEVLGLDULHV 3XUFKDVH 6DOHRILQYHVWPHQWVFDUULHGDWIDLUYDOXHWKURXJKSURÀWDQGORVV /RDQ JLYHQWR UHSDLGE\VXEVLGLDU\ Interest received 'LYLGHQGUHFHLYHG 3.21 )L[HG'HSRVLWZLWKEDQNV QHW KDYLQJPDWXULW\RYHUWKUHHPRQWKV Net Cash from /( used in ) investing activities (B) (1,541.21) (1,234.98)

Annual Report 2016-17 125 6WDWHPHQWRIFDVKÁRZV

$PRXQWLQ`PLOOLRQ PARTICULARS For the year ended For the year ended 31 March 2017 31 March 2016 C] CASH FLOW FROM FINANCING ACTIVITIES 3URFHHGVIURP/RQJWHUPORDQIURPEDQNV 5HSD\PHQWRI/RQJWHUPORDQIURPEDQNV 3URFHHGVIURP/RQJWHUPORDQIURPRWKHUWKDQEDQNV 5HSD\PHQWRI/RQJWHUPORDQIURPRWKHUWKDQEDQNV 3URFHHGVIURPLVVXHRI6KDUH&DSLWDODQGDSSOLFDWLRQPRQH\ 0.22 3URFHHGVIURP:RUNLQJ&DSLWDOORDQ 1HW 3URFHHGVIURP SD\PHQWVIRU VKDUHVLVVXHGSXUFKDVHGE\(PSOR\HH:HOIDUH7UXVW QHW 'LYLGHQGSDLGLQFOXGLQJFRUSRUDWHGLYLGHQGWD[ ,QWHUHVWDQGÀQDQFHFKDUJHV 1HWFDVKIURP XVHGLQ ÀQDQFLQJDFWLYLWLHV & 504.92 (2,704.67)

D] Exchange differences on translation of foreign currency cash and cash equivalents

Net Increase / (decrease ) in cash and cash equivalents (A + B+ C + D) 223.29 (339.40)

&DVK FDVKHTXLYDOHQWVDWFORVHRIWKH\HDU UHIHUQRWHEHORZ &DVK FDVKHTXLYDOHQWVDWEHJLQQLQJRIWKH\HDU UHIHUQRWHEHORZ &DVKVXUSOXV GHÀFLW IRUWKH\HDU 223.29 (339.40)

Note 1: Cash and cash equivalents include: &DVKRQKDQG 0.02 0.11 &KHTXHVLQKDQG 1.17 %DODQFHZLWKEDQNV ,QFXUUHQWDFFRXQWV ,QGHSRVLWDFFRXQW ZLWKRULJLQDOPDWXULW\RIPRQWKVRUOHVV 2.11 Total Cash and cash equivalents 1,332.29 1,109.00 Note 2: )LJXUHVLQEUDFNHWVUHSUHVHQWRXWÁRZVRIFDVKDQGFDVKHTXLYDOHQWV Note 3: 7KHDERYH&DVK)ORZ6WDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHLQGLUHFWPHWKRGDVVHWRXWLQ,QGLDQ$FFRXQWLQJ6WDQGDUG ,QG$V RQ6WDWHPHQWRIFDVKÁRZV As per our report of even date attached For B S R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants KPIT TECHNOLOGIES LIMITED Firm Registration Number: 101248W / W-100022

Vijay Mathur Anil Patwardhan S. B. (Ravi) Pandit Partner &KLHI)LQDQFLDO2IÀFHU &KDLUPDQ *URXS&(2 0HPEHUVKLS1R

Sneha Padve Kishor Patil &RPSDQ\6HFUHWDU\ &(2 0DQDJLQJ'LUHFWRU

3ODFH3XQH 3ODFH3XQH 'DWH$SULO 'DWH$SULO

Annual Report 2016-17 126 07 . 23 PLOOLRQ 376.13 375.65 376.39 ` Plans $PRXQWLQ QHWGHÀQHGEHQHÀW Remeasurement of the of Remeasurement (Refer note 31) note (Refer FDVKÁRZKHGJHV Effective portionEffective of earnings Retained Retained reserve amation 00 . 202 General reserve Amalg- reserve payment payment Share based based Share Reserves & surplus income other comprehensive of Items Total Securities premium reservepremium Capital reserve redemption Capital Reserve ------1,692.94 40.17 (17.10) 1,716.01 ------2,031.68 (2.40) (30.47) 1,998.81 0.63 19.40 40.00 3,904.43 110.33 354.00 51.40 7,332.16 33.74 (30.47) 11,815.62 7.65 19.40 40.00 3,849.17 56.59 152.00 51.40 6,139.29 36.14 - 10,351.64 Share money pending allotment application &KDQJHVLQHTXLW\VKDUHFDSLWDOGXULQJ 2016 Balance as at 31 March &KDQJHVLQHTXLW\VKDUHFDSLWDOGXULQJ 2017 Balance as at 31 March Balance as at 1 April 2015 Total comprehensive income for comprehensive Total the year 3URÀWIRUWKH\HDU2WKHUFRPSUHKHQVLYHLQFRPH QHW RIWD[ $FFXPXODWHGGHÀFLWRIHPSOR\HH ZHOIDUHWUXVW under shares on issue of Premium (623VFKHPH employees to payments based Share &KDQJHVGXULQJWKH\HDUBalance as on 2016 31 March 3URÀWIRUWKH\HDU2WKHUFRPSUHKHQVLYHLQFRPH QHW RIWD[ Balance as on 01 April 2015 income for comprehensive Total the year with owners Transactions in equity directly recognised 'LYLGHQGV'LYLGHQGGLVWULEXWLRQWD[ general reserve to Transfer Statement of changes in equity Statement of A capital Equity share equity B Other

Annual Report 2016-17 127 Plans QHWGHÀQHGEHQHÀW Remeasurement of the of Remeasurement 1 (Refer note 31) note (Refer FDVKÁRZKHGJHV Effective portionEffective of earnings Retained Retained reserve amation General reserve Amalg- &KLHI)LQDQFLDO2IÀFHUSneha Padve&RPSDQ\6HFUHWDU\ &KDLUPDQ *URXS&(2 &(2 0DQDJLQJ'LUHFWRU Kishor Patil reserve payment payment Share based based Share Reserves & surplus income other comprehensive of Items Total ÀQDQFLDOVWDWHPHQWV Securities premium reservepremium Capital reserve redemption Capital Reserve Share money pending allotment application 1RWHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKHVWDQGDORQH attached date even As per our report of For B S R & Co. LLPChartered Accountants Number:Firm Registration 101248W / W-100022 Vijay Mathur Partner 0HPEHUVKLS1R 3ODFH3XQH'DWH$SULO LIMITED KPIT TECHNOLOGIES of Directors of the Board For and on behalf of Anil Patwardhan 'DWH$SULO 3ODFH3XQH S. B. (Ravi) Pandit 6LJQLÀFDQWDFFRXQWLQJSROLFLHV Transactions with owners Transactions in equity directly recognised 'LYLGHQGV'LYLGHQGGLVWULEXWLRQWD[$FFXPXODWHGGHÀFLWRIHPSOR\HH ZHOIDUHWUXVW employees to payments based Share &KDQJHVGXULQJWKH\HDU 2017Balance as on 31 March 0.11 19.40 40.00 3,904.43 168.76 354.00 51.40 8,802.37 73.91 (47.57) 13,366.81 Statement of changes in equity Statement of

Annual Report 2016-17 128 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

Company Overview 7KHVH ÀQDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG RQ WKH .3,77HFKQRORJLHV/LPLWHG ´WKH&RPSDQ\µ LVDSXEOLFOLPLWHG KLVWRULFDO FRVW EDVLV H[FHSW IRU VKDUH EDVHG SD\PHQWV FRPSDQ\LQFRUSRUDWHGXQGHUWKH&RPSDQLHV$FWDQGLWV GHÀQHG EHQHÀW REOLJDWLRQV DQG FHUWDLQ ÀQDQFLDO VKDUHVDUHOLVWHGRQWKH1DWLRQDO6WRFN([FKDQJHDQG%RPED\ LQVWUXPHQWVZKLFKDUHPHDVXUHGDWIDLUYDOXHVDWWKHHQG 6WRFN([FKDQJH7KH&RPSDQ\·VUHJLVWHUHGRIÀFHLVLQ3XQHDQG RIHDFKUHSRUWLQJSHULRGDVH[SODLQHGLQWKHDFFRXQWLQJ it has subsidiaries across geographies. Most of the revenue is SROLFLHVEHORZ generated from the export of services. 8VHRIHVWLPDWHV 7KH &RPSDQ\ SURYLGHV 6RIWZDUH 'HYHORSPHQW JOREDO ,7 7KH SUHSDUDWLRQ RI VWDQGDORQH ÀQDQFLDO VWDWHPHQWV FRQVXOWLQJ DQG 3URGXFW (QJLQHHULQJ VROXWLRQV WR LWV FOLHQWV UHTXLUHV WKH PDQDJHPHQW RI WKH &RPSDQ\ WR PDNH SUHGRPLQDQWO\LQ$XWRPRWLYH 7UDQVSRUWDWLRQ0DQXIDFWXULQJ MXGJPHQWV HVWLPDWHV DQG DVVXPSWLRQV WKDW DIIHFW WKH DQG(QHUJ\ 8WLOLWLHVYHUWLFDOV7KH&RPSDQ\LVDOVRHQJDJHG reported balances of assets and liabilities and disclosures LQ WKH SURGXFWLRQ RI ,QWHJUDWHG 6\VWHPV XQGHU 3URGXFW relating to the contingent liabilities as at the date of the (QJLQHHULQJ6ROXWLRQVYHUWLFDO ÀQDQFLDO VWDWHPHQWV DQG UHSRUWHG DPRXQWV RI LQFRPH and expenditure during the year. Actual results could 7KHVH ÀQDQFLDO VWDWHPHQWV ZHUH DXWKRULVHG IRU LVVXH E\ WKH GLIIHUIURPHVWLPDWHV'LIIHUHQFHVEHWZHHQDFWXDOUHVXOWV &RPSDQ\·V%RDUGRI'LUHFWRUVRQ$SULO DQG HVWLPDWHV DUH UHFRJQL]HG LQ WKH \HDU LQ ZKLFK WKH 6LJQLÀFDQWDFFRXQWLQJSROLFLHV UHVXOWVDUHNQRZQPDWHULDOL]HG %DVLVRISUHSDUDWLRQRIVWDQGDORQHÀQDQFLDOVWDWHPHQWV &ULWLFDODFFRXQWLQJHVWLPDWHV 7KH VWDQGDORQH ÀQDQFLDO VWDWHPHQWV DUH SUHSDUHG LQ D 5HYHQXH5HFRJQLWLRQ DFFRUGDQFHZLWKWKH,QGLDQ$FFRXQWLQJ6WDQGDUGV ´,QG 7KH &RPSDQ\ XVHV WKH SHUFHQWDJHRIFRPSOHWLRQ $6µ DV VSHFLÀHG XQGHU 6HFWLRQ RI WKH &RPSDQLHV PHWKRG LQ DFFRXQWLQJ IRU LWV À[HGSULFH FRQWUDFWV $FWUHDGZLWKWKH5XOHRIWKH&RPSDQLHV ,QGLDQ 8VH RI WKH SHUFHQWDJHRIFRPSOHWLRQ PHWKRG $FFRXQWLQJ 6WDQGDUGV 5XOHV DQG &RPSDQLHV UHTXLUHV WKH &RPSDQ\ WR HVWLPDWH WKH HIIRUWV RU ,QGLDQ $FFRXQWLQJ 6WDQGDUGV $PHQGPHQW 5XOHV costs expended to date as a proportion of the total DQG WKH SURYLVLRQV RI &RPSDQLHV $FW 7KH HIIRUWV RU FRVWV WR EH H[SHQGHG (IIRUWV RU FRVWV VWDQGDORQHÀQDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQPLOOLRQV expended have been used to measure progress RI,QGLDQUXSHHVURXQGHGRIIWRWZRGHFLPDOSODFHVXQOHVV WRZDUGVFRPSOHWLRQDVWKHUHLVDGLUHFWUHODWLRQVKLS RWKHUZLVHVWDWHG EHWZHHQ LQSXW DQG SURGXFWLYLW\ 3URYLVLRQV IRU 7KH &RPSDQ\ DGRSWHG ,QG$6 IURP $SULO DQG HVWLPDWHG ORVVHV LI DQ\ RQ XQFRPSOHWHG FRQWUDFWV DFFRUGLQJO\ WKH WUDQVLWLRQ ZDV FDUULHG RXW IURP WKH DUH UHFRUGHG LQ WKH SHULRG LQ ZKLFK VXFK ORVVHV accounting principles generally accepted in India as become probable based on the expected contract VSHFLÀHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FW estimates at the reporting date. UHDG ZLWK 5XOH RI WKH &RPSDQLHV $FFRXQWV 5XOHV E ,PSDLUPHQWRIJRRGZLOO ,*$$3 LQDFFRUGDQFHZLWK,QG$6)LUVWWLPH *RRGZLOO LV WHVWHG IRU LPSDLUPHQW RQ DQ DQQXDO DGRSWLRQ RI ,QGLDQ $FFRXQWLQJ 6WDQGDUGV $FFRUGLQJO\ EDVLVDQGZKHQHYHUWKHUHLVDQLQGLFDWLRQWKDWWKH the impact on transition has been recorded in opening recoverable amount of a cash generating unit is UHVHUYHVDVDW$SULODQGDOOWKHSHULRGVSUHVHQWHG less than its carrying amount based on a number have been restated accordingly. Reconciliations and RI IDFWRUV LQFOXGLQJ RSHUDWLQJ UHVXOWV EXVLQHVV descriptions of the effect of the transition has been SODQV IXWXUH FDVK ÁRZV DQG HFRQRPLF FRQGLWLRQV VXPPDUL]HGLQ1RWHDQG The recoverable amount of cash generating units Accounting policies have been consistently applied except LVGHWHUPLQHGEDVHGRQKLJKHURIYDOXHLQXVHDQG ZKHUH D QHZO\ LVVXHG DFFRXQWLQJ VWDQGDUG LV LQLWLDOO\ IDLUYDOXHOHVVFRVWWRVHOO7KHJRRGZLOOLPSDLUPHQW adopted or a revision to an existing accounting standard WHVWLVSHUIRUPHGDWWKHOHYHORIWKHFDVKJHQHUDWLQJ UHTXLUHVDFKDQJHLQWKHDFFRXQWLQJSROLF\KLWKHUWRLQXVH XQLW RU JURXSV RI FDVKJHQHUDWLQJ XQLWV ZKLFK DUH EHQHÀWLQJIURPWKHV\QHUJLHVRIWKHDFTXLVLWLRQDQG

Annual Report 2016-17 129 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 130 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 131 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 132 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

WKHDVVHW·VIDLUYDOXHOHVVFRVWRIGLVSRVDODQG of conversion and other costs incurred in bringing the YDOXH LQ XVH )RU WKH SXUSRVH RI LPSDLUPHQW inventories to their present location and condition. In WHVWLQJ DVVHWV DUH JURXSHG WRJHWKHU LQWR WKH GHWHUPLQLQJWKHFRVWZHLJKWHGDYHUDJHFRVWPHWKRGLV VPDOOHVW JURXS RI DVVHWV FDVK JHQHUDWLQJ XVHG,QWKHFDVHRIPDQXIDFWXUHGLQYHQWRULHVDQGZRUNLQ XQLWRU&*8 WKDWJHQHUDWHVFDVKLQÁRZVIURP SURJUHVVÀ[HGSURGXFWLRQRYHUKHDGVDUHDOORFDWHGRQWKH continuing use that are largely independent of basis of normal capacity of production facilities. WKHFDVKLQÁRZVRIRWKHUDVVHWVRU&*8V /HDVHV ,QWDQJLEOHDVVHWVZKLFKDUHQRW\HWDYDLODEOHIRU D )LQDQFHOHDVH XVH DUH WHVWHG IRU LPSDLUPHQW DQQXDOO\ 2WKHU $VVHWVDFTXLUHGXQGHUÀQDQFHOHDVHVDUHUHFRJQL]HG DVVHWV WDQJLEOHDQGLQWDQJLEOH DUHUHYLHZHGDW DW WKH ORZHU RI WKH IDLU YDOXH RI WKH OHDVHG DVVHWV each reporting date to determine if there is any at inception of the lease or the present value of LQGLFDWLRQRILPSDLUPHQW)RUDVVHWVLQUHVSHFW the minimum lease payments. Lease payments are RI ZKLFK DQ\ VXFK LQGLFDWLRQ H[LVWV DQG IRU DSSRUWLRQHG EHWZHHQ WKH ÀQDQFH FKDUJH DQG WKH intangible assets mandatorily tested annually UHGXFWLRQRIRXWVWDQGLQJOLDELOLW\7KHÀQDQFHFKDUJH IRULPSDLUPHQWWKHDVVHW·VUHFRYHUDEOHDPRXQW is allocated to periods during the lease terms at a is estimated. constant periodic rate of interest on the remaining If at the Balance Sheet date there is an indication balance of the liability. that a previously assessed impairment loss no E 2SHUDWLQJOHDVH ORQJHU H[LVWV RU KDV GHFUHDVHG WKH DVVHWV RU &*8·V UHFRYHUDEOH DPRXQW LV HVWLPDWHG )RU /HDVH DUUDQJHPHQWV ZKHUH WKH ULVNV DQG UHZDUGV DVVHWV RWKHU WKDQ JRRGZLOO WKH LPSDLUPHQW LQFLGHQWDOWRWKHRZQHUVKLSRIDQDVVHWVXEVWDQWLDOO\ ORVV LV UHYHUVHG WR WKH H[WHQW WKDW WKH DVVHW·V YHVWZLWKWKHOHVVRUDUHFODVVLÀHGDVRSHUDWLQJOHDVHV carrying amount does not exceed the carrying /HDVHUHQWDOVXQGHURSHUDWLQJOHDVHVDUHUHFRJQL]HG DPRXQW WKDW ZRXOG KDYH EHHQ GHWHUPLQHG LQWKH6WDWHPHQWRI3URÀWDQG/RVVRQVWUDLJKWOLQH QHW RI GHSUHFLDWLRQ RU DPRUWL]DWLRQ LI QR EDVLVRYHUWKHWHUPRIWKHOHDVHXQOHVVWKHLQFUHDVH LPSDLUPHQWORVVKDGEHHQUHFRJQL]HG6XFKD LQUHQWDOVLVLQOLQHZLWKH[SHFWHGJHQHUDOLQÁDWLRQ UHYHUVDOLVUHFRJQL]HGLQWKH6WDWHPHQWRI3URÀW (DUQLQJVSHUVKDUH and Loss. Basic earnings per share are computed by dividing the LL *RRGZLOO QHWSURÀWIRUWKH\HDUDIWHUWD[E\WKHZHLJKWHGDYHUDJH &*8V WR ZKLFK JRRGZLOO KDV EHHQ DOORFDWHG QXPEHU RI HTXLW\ VKDUHV RXWVWDQGLQJ GXULQJ WKH \HDU DUH WHVWHG IRU LPSDLUPHQW DQQXDOO\ RU PRUH 'LOXWHG HDUQLQJV SHU VKDUH LV FRPSXWHG E\ GLYLGLQJ IUHTXHQWO\ ZKHQ WKHUH LV LQGLFDWLRQ IRU WKH QHW SURÀW IRU WKH \HDU DIWHU WD[ IRU WKH \HDU E\ WKH LPSDLUPHQW,IWKHUHFRYHUDEOHDPRXQWRID&*8 ZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJ LVOHVVWKDQLWVFDUU\LQJDPRXQWWKHLPSDLUPHQW GXULQJWKH\HDUDVDGMXVWHGIRUWKHHIIHFWVRIDOOGLOXWLYH ORVV LV DOORFDWHG ÀUVW WR UHGXFH WKH FDUU\LQJ SRWHQWLDOHTXLW\VKDUHVH[FHSWZKHUHWKHUHVXOWVDUHDQWL dilutive. DPRXQW RI DQ\ JRRGZLOO DOORFDWHG WR WKH XQLW DQG WKHQ WR WKH RWKHU DVVHWV RI WKH XQLW SUR )RUHLJQFXUUHQF\WUDQVDFWLRQV rata on the basis of the carrying amount of each D )XQFWLRQDODQGSUHVHQWDWLRQFXUUHQF\ asset in the unit. ,QGLDQ5XSHHLVWKH&RPSDQ\·VIXQFWLRQDODVZHOODV ,QYHQWRULHV presentation currency. ,QYHQWRULHV ZKLFK FRPSULVH UDZ PDWHULDOV ZRUNLQ SURJUHVV ÀQLVKHG JRRGV DQG VWRUHV DQG VSDUHV DUH b. Transactions in foreign currencies are translated FDUULHG DW WKH ORZHU RI FRVW DQG QHW UHDOL]DEOH YDOXH WR WKH IXQFWLRQDO FXUUHQF\ RI WKH &RPSDQ\ DW &RVWRILQYHQWRULHVFRPSULVHVDOOFRVWVRISXUFKDVHFRVWV the exchange rates prevailing on the date of the

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Annual Report 2016-17 134 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 135 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 137 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

is discharged or cancelled or expires. that include a net settlement feature in respect of ZLWKKROGLQJWD[HV G )DLUYDOXHRIÀQDQFLDOLQVWUXPHQWV 7KH &RPSDQ\ XVHV GLVFRXQWHG FDVK ÁRZ DQDO\VLV ,WFODULÀHVWKDWWKHIDLUYDOXHRIFDVKVHWWOHGDZDUGVLV PHWKRGIRUWKHIDLUYDOXHRILWVÀQDQFLDOLQVWUXPHQWV GHWHUPLQHGRQDEDVLVFRQVLVWHQWZLWKWKDWXVHGIRU H[FHSW IRU HPSOR\HH VWRFN RSWLRQV (623 ZKHUH HTXLW\VHWWOHG DZDUGV 0DUNHW EDVHG SHUIRUPDQFH %ODFN DQG 6FKROHV RSWLRQV SULFLQJ PRGHO LV XVHG FRQGLWLRQVDQGQRQYHVWLQJFRQGLWLRQVDUHUHÁHFWHG The method of assessing fair value results in general LQ WKH ¶IDLU YDOXHV· EXW QRQPDUNHW SHUIRUPDQFH approximation of value and such value may never conditions and service vesting conditions are DFWXDOO\EHUHDOL]HG UHÁHFWHG LQ WKH HVWLPDWH RI WKH QXPEHU RI DZDUGV H[SHFWHGWRYHVW$OVRWKHDPHQGPHQWFODULÀHVWKDW )RU DOO RWKHU ÀQDQFLDO LQVWUXPHQWV WKH FDUU\LQJ LIWKHWHUPVDQGFRQGLWLRQVRIDFDVKVHWWOHGVKDUH amount approximates fair value due to short EDVHG SD\PHQW WUDQVDFWLRQ DUH PRGLÀHG ZLWK WKH maturity of those instruments. UHVXOWWKDWLWEHFRPHVDQHTXLW\VHWWOHGVKDUHEDVHG SD\PHQW WUDQVDFWLRQ WKH WUDQVDFWLRQ LV DFFRXQWHG 5HFHQWDFFRXQWLQJSURQRXQFHPHQWV IRUDVVXFKIURPWKHGDWHRIWKHPRGLÀFDWLRQ)XUWKHU 6WDQGDUGVLVVXHGEXWQRW\HWHIIHFWLYH WKH DPHQGPHQW UHTXLUHV WKH DZDUG WKDW LQFOXGH ,Q 0DUFK WKH 0LQLVWU\ RI &RUSRUDWH $IIDLUV D QHW VHWWOHPHQW IHDWXUH LQ UHVSHFW RI ZLWKKROGLQJ LVVXHG WKH &RPSDQLHV ,QGLDQ $FFRXQWLQJ 6WDQGDUGV WD[HVWREHWUHDWHGDVHTXLW\VHWWOHGLQLWVHQWLUHW\ $PHQGPHQWV 5XOHV QRWLI\LQJ DPHQGPHQWV WR The cash payment to the tax authority is treated as if ,QG$66WDWHPHQWRIFDVKÁRZVDQG,QG$66KDUH LWZDVSDUWRIDQHTXLW\VHWWOHPHQW based payment. These amendments are in accordance 7KH &RPSDQ\ LV HYDOXDWLQJ WKH UHTXLUHPHQWV RI ZLWK WKH UHFHQW DPHQGPHQWV PDGH E\ ,QWHUQDWLRQDO the amendment and the impact on the standalone $FFRXQWLQJ6WDQGDUGV%RDUG ,$6% WR,$66WDWHPHQWRI ÀQDQFLDOVWDWHPHQWVLVEHLQJHYDOXDWHG FDVKÁRZVDQG,)566KDUHEDVHGSD\PHQWUHVSHFWLYHO\ 7KHDPHQGPHQWVDUHDSSOLFDEOHWRWKH&RPSDQ\IURP )LUVWWLPHDGRSWLRQRI,QG$6 April 2017. ([SODQDWLRQRIWUDQVLWLRQWR,QG$6

L $PHQGPHQWWR,QG$6 D 7KHVH DUH WKH &RPSDQ\·V ÀUVW VWDQGDORQH ÀQDQFLDO VWDWHPHQWVSUHSDUHGLQDFFRUGDQFHZLWK,QG$6 7KH DPHQGPHQW WR ,QG$6 UHTXLUHV WKH HQWLWLHV WRSURYLGHGLVFORVXUHVWKDWHQDEOHXVHUVRIÀQDQFLDO b. The accounting policies set out in Note 1 have statements to evaluate changes in liabilities arising EHHQ DSSOLHG LQ SUHSDULQJ WKH VWDQGDORQH ÀQDQFLDO IURP ÀQDQFLQJ DFWLYLWLHV LQFOXGLQJ ERWK FKDQJHV VWDWHPHQWVIRUWKH\HDUHQGHG0DUFKWKH DULVLQJ IURP FDVK ÁRZV DQG QRQFDVK FKDQJHV FRPSDUDWLYHLQIRUPDWLRQSUHVHQWHGLQWKHVHÀQDQFLDO VXJJHVWLQJLQFOXVLRQRIDUHFRQFLOLDWLRQEHWZHHQWKH VWDWHPHQWVIRUWKH\HDUHQGHG0DUFKDQGLQ opening and closing balances in the Balance Sheet WKHSUHSDUDWLRQRIDQRSHQLQJ,QG$6%DODQFH6KHHW IRUOLDELOLWLHVDULVLQJIURPÀQDQFLQJDFWLYLWLHVWRPHHW DVDW$SULO WKH&RPSDQ\·VGDWHRIWUDQVLWLRQ WKHGLVFORVXUHUHTXLUHPHQW F ,Q SUHSDULQJ LWV RSHQLQJ ,QG$6 %DODQFH 6KHHW 7KH &RPSDQ\ LV HYDOXDWLQJ WKH UHTXLUHPHQWV RI and in presenting the comparative information for the amendment and the impact on the standalone WKH \HDU HQGHG 0DUFK WKH &RPSDQ\ KDV ÀQDQFLDOVWDWHPHQWVLVEHLQJHYDOXDWHG DGMXVWHGDPRXQWVUHSRUWHGSUHYLRXVO\LQVWDQGDORQH ÀQDQFLDO VWDWHPHQWV SUHSDUHG LQ DFFRUGDQFH ZLWK LL $PHQGPHQWWR,QG$6 WKHDFFRXQWLQJVWDQGDUGVQRWLÀHGXQGHU&RPSDQLHV 7KH DPHQGPHQW WR ,QG$6 SURYLGHV VSHFLÀF $FFRXQWLQJ 6WDQGDUGV 5XOHV DV DPHQGHG JXLGDQFH WR PHDVXUHPHQW RI FDVKVHWWOHG DZDUGV DQG RWKHU UHOHYDQW SURYLVLRQV RI WKH $FW SUHYLRXV PRGLÀFDWLRQ RI FDVKVHWWOHG DZDUGV DQG DZDUGV *$$3 RU ,QGLDQ *HQHUDOO\ $FFHSWHG $FFRXQWLQJ

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3ULQFLSOHV ,*$$3 $Q H[SODQDWLRQ RI KRZ WKH ii. 'HHPHGFRVW WUDQVLWLRQ IURP ,*$$3 WR ,QG$6 KDV DIIHFWHG WKH 7KH &RPSDQ\ KDV DYDLOHG WKH H[HPSWLRQ XQGHU &RPSDQ\·VÀQDQFLDOSRVLWLRQÀQDQFLDOSHUIRUPDQFH ,QG$6 RQ GHHPHG FRVW ZKHUH LW KDV HOHFWHG DQGFDVKÁRZVLVVHWRXWLQWKHIROORZLQJWDEOHVDQG WR FRQWLQXH ZLWK WKH FDUU\LQJ YDOXH IRU DOO RI LWV notes. SURSHUW\ SODQW DQG HTXLSPHQW DQG LQWDQJLEOH DVVHWV PHDVXUHG DV SHU ,*$$3 DQG XVH WKDW DV LWV 2SWLRQDOH[HPSWLRQVDYDLOHGDQGPDQGDWRU\ GHHPHGFRVWDVDWWKHGDWHRIWUDQVLWLRQWR,QG$6 H[FHSWLRQV E 0DQGDWRU\ H[FHSWLRQV IURP IXOO UHWURVSHFWLYH ,Q SUHSDULQJ WKHVH ÀQDQFLDO VWDWHPHQWV WKH &RPSDQ\ DSSOLFDWLRQ has availed certain optional exemptions and mandatory L +HGJHDFFRXQWLQJH[FHSWLRQV H[FHSWLRQVLQDFFRUGDQFHZLWK,QG$6DVH[SODLQHG 7KH&RPSDQ\KDGIROORZHGKHGJHDFFRXQWLQJXQGHU EHORZ ,*$$3ZKLFKLVDOLJQHGWR,QG$6$FFRUGLQJO\WKH &RPSDQ\FRQWLQXHVWRDSSO\KHGJHDFFRXQWLQJRQ D 2SWLRQDOH[HPSWLRQVDYDLOHG DQGDIWHUWKHGDWHRIWUDQVLWLRQWR,QG$6 L 6KDUHEDVHGSD\PHQWV LL (VWLPDWHV 7KH&RPSDQ\KDVHOHFWHGWRDSSO\WKHVKDUHEDVHG $VSHU,QG$6DQHQWLW\·VHVWLPDWHVLQDFFRUGDQFH SD\PHQWH[HPSWLRQDYDLODEOHXQGHU,QG$6RQ ZLWK ,QG $6 DW WKH GDWH RI WUDQVLWLRQ WR ,QG $6 DW DSSOLFDWLRQRI,QG$6µ6KDUH%DVHG3D\PHQWµWR the end of the comparative period presented in the grants that are vested before the transition date. WKH HQWLW\·V ÀUVW ,QG $6 ÀQDQFLDO VWDWHPHQWV DUH $FFRUGLQJO\RQO\WKHXQYHVWHGRSWLRQVDVDWWKHGDWH FRQVLVWHQW ZLWK HVWLPDWHV PDGH IRU WKH VDPH GDWH RIWUDQVLWLRQWR,QG$6KDYHEHHQIDLUYDOXHG LQDFFRUGDQFHZLWKWKHSUHYLRXV*$$3XQOHVVWKHUH LV REMHFWLYH HYLGHQFH WKDW WKRVH HVWLPDWHV ZHUH LQ error. 5HFRQFLOLDWLRQV D 7KHEHORZPHQWLRQHGUHFRQFLOLDWLRQVSURYLGHWKHTXDQWLÀFDWLRQRIWKHHIIHFWRIVLJQLÀFDQWGLIIHUHQFHVDULVLQJRQWKHWUDQVLWLRQ IURP,*$$3WR,QG$6LQDFFRUGDQFHZLWK,QG$6

5HFRQFLOLDWLRQRI(TXLW\DVSUHYLRXVO\UHSRUWHGXQGHU,*$$3WR,QG$6 $PRXQWLQ`PLOOLRQ 3DUWLFXODUV 1RWH 0DUFK $SULO ,*$$3 (IIHFWVRI ,QG$6 ,*$$3 (IIHFWVRI ,QG$6 WUDQVLWLRQ WUDQVLWLRQ $66(76 Non-current assets 3URSHUW\SODQWDQGHTXLSPHQW &DSLWDOZRUNLQSURJUHVV 2WKHULQWDQJLEOHDVVHWV Intangible assets under development )LQDQFLDODVVHWV Investments Loans i 2WKHUÀQDQFLDODVVHWV ,QFRPHWD[DVVHWV QHW 'HIHUUHGWD[DVVHWV QHW ii 2WKHUQRQFXUUHQWDVVHWV i 20.00 17.12 37.12 8,945.58 (28.79) 8,916.79 8,706.24 (30.96) 8,675.28

Annual Report 2016-17 139 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ 3DUWLFXODUV 1RWH 0DUFK $SULO ,*$$3 (IIHFWVRI ,QG$6 ,*$$3 (IIHFWVRI ,QG$6 WUDQVLWLRQ WUDQVLWLRQ &XUUHQWDVVHWV Inventories )LQDQFLDODVVHWV Investments Trade receivables &DVKDQGFDVKHTXLYDOHQWV 2WKHUEDODQFHVZLWK EDQNV Loans LY 207.11 Unbilled revenue 2WKHUÀQDQFLDODVVHWV 2WKHUFXUUHQWDVVHWV i 7,918.81 77.95 7,996.76 8,393.62 56.56 8,450.18

TOTAL ASSETS 16,864.39 49.16 16,913.55 17,099.86 25.60 17,125.46

(48,7<$1'/,$%,/,7,(6 (TXLW\ (TXLW\VKDUHFDSLWDO 2WKHUHTXLW\ LLY 11,861.72 329.55 12,191.27 10,436.35 291.42 10,727.77 /LDELOLWLHV 1RQFXUUHQWOLDELOLWLHV )LQDQFLDOOLDELOLWLHV %RUURZLQJV iii Provisions 1,918.52 (15.33) 1,903.19 835.98 (2.58) 833.40 &XUUHQWOLDELOLWLHV )LQDQFLDOOLDELOLWLHV %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV LLLY 2WKHUFXUUHQWOLDELOLWLHV Provisions iv 127.12 &XUUHQWLQFRPHWD[OLDELOLWLHV 130.07 130.07 QHW 3,084.15 (265.06) 2,819.09 5,827.53 (263.24) 5,564.29

TOTAL EQUITY AND 16,864.39 49.16 16,913.55 17,099.86 25.60 17,125.46 LIABILITIES

Annual Report 2016-17 140 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

Reconciliation of total comprehensive income for the year ended on 31 March 2016, as previously reported under IGAAP to Ind-AS: $PRXQWLQ`PLOOLRQ 3DUWLFXODUV 1RWH 0DUFK ,*$$3 (IIHFWVRI ,QG$6 WUDQVLWLRQ Revenue from operations 2WKHULQFRPH i Total income 12,905.78 12.15 12,917.93 ([SHQVHV &RVWRIPDWHULDOVFRQVXPHG &KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVDQGZRUNLQSURJUHVV (PSOR\HHEHQHÀWVH[SHQVH YYL )LQDQFHFRVWV iii 'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH ([FLVHGXW\ 2WKHUH[SHQVHV LLLL Total expenses 10,443.02 (18.86) 10,424.16 3URÀWEHIRUHWD[ 2,462.76 31.01 2,493.77 7D[H[SHQVH &XUUHQWWD[ MAT credit entitlement 'HIHUUHGWD[ EHQHÀW FKDUJH ii Total tax expense 443.62 18.47 462.09 3URÀWIRUWKH\HDU 2,019.14 12.54 2,031.68 2WKHUFRPSUHKHQVLYHLQFRPH ,WHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀWRUORVV 5HPHDVXUHPHQWVRIGHÀQHGEHQHÀWSODQV vi ,QFRPHWD[RQLWHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀWRUORVV ii 13.13 13.13

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Total other comprehensive income - (32.87) (32.87)

Total comprehensive income for the year 2,019.14 (20.33) 1,998.81 Notes explaining the effects of transaction from IGAAP to Ind-AS: L (IIHFWRIIDLUYDOXDWLRQRIVHFXULW\GHSRVLWVDQGDPRUWLVDWLRQRIDGYDQFHUHQWDOVXQGHU,QG$6 LL (IIHFWRIGHIHUUHGWD[HVUHFRJQLVHGRQWKH,QG$6DGMXVWPHQWV LLL (IIHFWRIÀQDQFLDOOLDELOLWLHVLQLWLDOO\PHDVXUHGDWIDLUYDOXHDQGVXEVHTXHQWO\PHDVXUHGDWDPRUWLVHGFRVWZLWKWKHFRUUHVSRQGLQJ LPSDFWVRQWKH6WDWHPHQWRI3URÀWDQG/RVV LY 8QGHU,QG$6GLYLGHQGDQGGLYLGHQGGLVWULEXWLRQWD[LVUHFRUGHGDVDOLDELOLW\RQWKHGDWHRIDSSURYDOE\WKHVKDUHKROGHUVZKLOH XQGHU,*$$3LWLVUHFRJQLVHGLQWKHSHULRGWRZKLFKLWUHODWHV Y $VSHU,QG$6VKDUHEDVHGSD\PHQWVDUHPHDVXUHGDWIDLUYDOXHZKHUHDVXQGHU,*$$3WKH\DUHPHDVXUHGDWLQWULQVLFYDOXH YL $VSHU,QG$6DFWXDULDOJDLQV ORVVHV DUHUHFRUGHGLQRWKHUFRPSUHKHQVLYHLQFRPHDVLWHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀW or loss. YLL 8QGHU ,QG$6 WKH HIIHFWLYH SRUWLRQ RI JDLQV ORVVHV RQ KHGJLQJ LQVWUXPHQWV LQ FDVK ÁRZ KHGJHV DUH UHFRUGHG LQ RWKHU FRPSUHKHQVLYHLQFRPHDVLWHPVWKDWZLOOEHUHFODVVLÀHGWRSURÀWRUORVV &DVKÁRZVWDWHPHQW 7KHUHDUHQRPDWHULDOUHFRQFLOLDWLRQLWHPVWRWKHFDVKÁRZVWDWHPHQWDVSUHYLRXVO\UHSRUWHGXQGHU,*$$3DQG,QG$6

Annual Report 2016-17 141 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV 02 . 10 PLOOLRQ Total `

03 . 2 $PRXQWLQ 2IÀFH Equipments Vehicles Leased Owned

03 . 2 and Fixtures Furniture Furniture

30 01 . . 0 0 Plant and Equipment 356.09 60.60 7.21 6.05 201.37 1,443.54 356.09 6.05 7.21 60.60 201.37 356.09 60.60 7.21 6.05 201.37 1,443.54 356.09 6.05 7.21 60.60 201.37

01 . 12 JHGDVVHFXULW\IRUERUURZLQJV Leasehold improvements

02 . 0 Building

31 . 5.76 25.81 12.01 181.05 14.75 2.80 2.40 45.64 290.22 2.40 45.64 2.80 5.76 25.81 181.05 14.75 12.01 5.76 25.81 12.01 181.05 14.75 2.80 2.40 45.64 290.22 2.40 45.64 2.80 5.76 25.81 181.05 14.75 12.01 12.32 51.62 36.25 401.44 31.16 4.40 4.88 89.58 631.65 4.88 89.58 4.40 12.32 51.62 401.44 31.16 36.25 107 443.76 448.63 1,794.51 162.52 432.74 3.65 4.41 92.03 206.77 437.20 422.46 1,917.46 9.67 2.31 219.05 517.36 105.65 203.76 342.21 470.01 - 449.52 474.44 2,084.73 6.05 7.21 174.53 613.79 106.78 252.41 342.21 470.01 - 443.76 448.63 1,794.51 162.52 432.74 3.65 4.41 92.03 206.77 449.52 474.44 2,084.73 6.05 7.21 174.53 613.79 106.78 252.41 449.52 474.08 255.30 918.80 136.81 6.71 14.55 293.34 2,549.11 449.52 474.08 14.55 293.34 6.71 255.30 918.80 136.81 Land (Leasehold) Accumulated as at 31 depreciation 2017 March Carrying amount as at 1 April 2016 Carrying amount as at 31 2017 March Gross carryingGross amount as at 1 April 2015 Additions 'LVSRVDOUHWLUHPHQWV derecognition Gross carryingGross amount as 2016 at 31 March 'HSUHFLDWLRQ Accumulated as at 31 depreciation 2016 March Carrying amount as at 1 April 2015 Carrying amount as at 31 2016 March carryingGross amount as at 1 April 2016 Additions 'LVSRVDOUHWLUHPHQWV derecognition Gross carryingGross amount as 2017 at 31 March Accumulated as at 1 April depreciation 2016 'HSUHFLDWLRQ'LVSRVDOUHWLUHPHQWV derecognition 1RWH 5HIHUQRWHIRUGHWDLOVRISURSHUW\SODQWDQGHTXLSPHQWSOHG $ 3URSHUW\SODQWDQGHTXLSPHQW &KDQJHVLQWKHFDUU\LQJDPRXQWRISURSHUW\SODQWDQGHTXLSPHQW

Annual Report 2016-17 142 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

% ,QWDQJLEOHDVVHWV &KDQJHVLQWKHFDUU\LQJDPRXQWRIRWKHULQWDQJLEOHDVVHWV $PRXQWLQ`PLOOLRQ Internally Other than Total Generated Internally Generated Product Software Development Cost (Refer note (i)) Gross carrying amount as at 1 April 2015 211.68 293.51 505.19 Additions Gross carrying amount as at 31 March 2016 243.21 549.08 792.29 'HSUHFLDWLRQ Accumulated depreciation as at 31 March 2016 70.65 222.79 293.44 Carrying amount as at 1 April 2015 211.68 293.51 505.19 Carrying amount as at 31 March 2016 172.56 326.29 498.85

Gross carrying amount as at 1 April 2016 243.21 549.08 792.29 Additions 302.01 Gross carrying amount as at 31 March 2017 276.29 818.01 1,094.30 Accumulated depreciation as at 1 April 2016 70.65 222.79 293.44 'HSUHFLDWLRQ Accumulated depreciation as at 31 March 2017 185.24 473.51 658.75 Carrying amount as at 1 April 2016 172.56 326.29 498.85 Carrying amount as at 31 March 2017 91.05 344.50 435.55

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Annual Report 2016-17 143 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 1RQFXUUHQWLQYHVWPHQWV Investments (Unquoted) Investments in equity instruments of subsidiaries (at cost) 6\VWLPH&RPSXWHU&RUSRUDWLRQ86$ > 3UHYLRXV\HDU FRPPRQVWRFNRILVVXHGHTXLW\QRSDU value] .3,7,QIRV\VWHPV0()=(8$( > 3UHYLRXV\HDU HTXLW\VKDUHRIQRPLQDOYDOXHRI$('@ .3,77HFKQRORJLHV 8. /LPLWHG $ZKROO\RZQHGVXEVLGLDU\FRPSDQ\LQFRUSRUDWHGLQ8. 3UHYLRXV\HDU (TXLW\VKDUHVRI HDFKIXOO\ SDLGXS KPIT Infosystems Inc. $ZKROO\RZQHGVXEVLGLDU\FRPSDQ\LQFRUSRUDWHGLQ86$ 3UHYLRXV\HDU (TXLW\VWRFNZLWKRXWSDUYDOXHIXOO\SDLG up. .3,77HFKQRORJLHV)UDQFH6$6 $ZKROO\RZQHGVXEVLGLDU\FRPSDQ\LQFRUSRUDWHGLQ)UDQFH 3UHYLRXV\HDU (TXLW\VWRFNRI(XURHDFKIXOO\SDLG up. .3,7 6KDQJKDL 6RIWZDUH7HFKQRORJ\&R/LPLWHG $ZKROO\RZQHGVXEVLGLDU\FRPSDQ\LQFRUSRUDWHGLQ&KLQD 3UHYLRXV\HDU (TXLW\VKDUHVRI50%HDFKIXOO\ paid up .3,77HFKQRORJLHV1HWKHUODQGV%9 $ZKROO\RZQHGVXEVLGLDU\FRPSDQ\LQFRUSRUDWHGLQ1HWKHUODQGV 3UHYLRXV\HDU (TXLW\VKDUHVRI(XURHDFKIXOO\SDLGXS .3,77HFKQRORJLHV6ROXFRHV(0,QIRUPDWLFD/7'$ A subsidiary of KPIT Infosystems Inc 3UHYLRXV\HDU VKDUHVRI%UD]LOLDQ5HDVHDFKIXOO\SDLGXS Impact Automotive Solutions Limited 3UHYLRXV\HDU (TXLW\VKDUHVRI` 10 each fully SDLGXS Investments in equity instruments of other entities measured at fair YDOXHWKURXJK3URÀWDQG/RVV ,QYHVWPHQWLQ6DQNDOS6HPLFRQGXFWRUV3ULYDWH/LPLWHG 5HIHUQRWH 3UHYLRXV

Annual Report 2016-17 144 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

/RDQV

$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) Loans and advances to related parties (Refer note 38) /RDQWRGLUHFWRU 22.70 /RDQWR.3,7,QIRV\VWHPV,QFRUSRUDWHG86$ /RDQWR.3,77HFKQRORJLHV 8. /LPLWHG Loans and advances to other than related parties Security deposits 137.71 Loan to employees 118.68 78.14 848.74

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2WKHUÀQDQFLDODVVHWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) )L[HGGHSRVLWVZLWKEDQNV ,QWHUHVWDFFUXHGRQÀ[HGGHSRVLWV 0.13 22.02 10.94 11.62

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'HIHUUHGWD[DVVHWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Deferred tax assets 3URYLVLRQIRUGRXEWIXOGHEWVDQGDGYDQFHV 3URYLVLRQIRUOHDYHHQFDVKPHQW 3URYLVLRQIRUJUDWXLW\ MAT credit entitlement Deferred tax liabilities ([FHVVRIGHSUHFLDWLRQDPRUWLVDWLRQRQÀ[HGDVVHWVXQGHULQFRPHWD[ ODZRYHUGHSUHFLDWLRQDPRUWLVDWLRQSURYLGHGLQDFFRXQWV )RUZDUGFRQWUDFWVGHVLJQDWHGDVFDVKÁRZKHGJHV 2WKHUV Net deferred tax asset 502.96 430.51 390.99

Annual Report 2016-17 145 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

2WKHUQRQFXUUHQWDVVHWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) &DSLWDODGYDQFHV 2.77 Advance rentals 17.12 Prepaid expenses )ULQJHEHQHÀWWD[SDLGLQH[FHVVRISURYLVLRQ QHW %DODQFHLQ*URXS*UDWXLW\7UXVW$FFRXQW 96.55 103.78 37.12

,QYHQWRULHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Valued at the lower of cost and net realisable value) 5DZPDWHULDOV 5HIHUQRWH L EHORZ 73.32 :RUNLQSURJUHVV )LQLVKHGJRRGV 0.01 Stores and spares 74.99 307.24 207.66

Note : L 'XULQJWKH\HDUHQGHG0DUFKWKH&RPSDQ\KDVZULWWHQGRZQLWVVORZPRYLQJLQYHQWRU\RI`PLOOLRQZLWK FRUUHVSRQGLQJHIIHFWRQFRVWRIPDWHULDOVFRQVXPHGLQWKH6WDWHPHQWRI3URÀWDQG/RVV

&XUUHQWLQYHVWPHQWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Investments in equity instruments of other entities measured at fair YDOXHWKURXJK3URÀWDQG/RVV XQTXRWHG ,QYHVWPHQWLQ6DQNDOS6HPLFRQGXFWRUV3ULYDWH/LPLWHG 5HIHUQRWH 3UHYLRXV

Annual Report 2016-17 146 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

7UDGHUHFHLYDEOHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured) 7UDGHUHFHLYDEOHV 8QVHFXUHG &RQVLGHUHGJRRG &RQVLGHUHGGRXEWIXO /HVV$OORZDQFHIRUEDGDQGGRXEWIXOWUDGHUHFHLYDEOHV 5,005.65 3,648.21 4,690.91

Notes: L 7UDGHUHFHLYDEOHVIURPUHODWHGSDUWLHVDUHGLVFORVHGLQQRWH LL 7KH&RPSDQ\·VH[SRVXUHWRFUHGLWULVNFXUUHQF\ULVNDQGORVVDOORZDQFHUHODWHGWRWUDGHUHFHLYDEOHVDUHGLVFORVHGLQQRWH

&DVKDQGEDQNEDODQFHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 &DVKDQGFDVKHTXLYDOHQWV &DVKRQKDQG 0.02 0.11 0.21 &KHTXHVLQKDQG 1.17 %DODQFHVZLWKEDQNV ,QFXUUHQWDFFRXQWV ,QGHSRVLWDFFRXQWV ZLWKRULJLQDOPDWXULW\RIPRQWKVRUOHVV 2.11 2WKHU EDQN EDODQFHV LQFOXGHV XQFODLPHG GLYLGHQG RI ` PLOOLRQ 3UHYLRXV\HDU`PLOOLRQ 1,380.29 2,198.04 1,805.72

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/RDQV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) Loans and advances to related parties (Refer note 38) /RDQWR.3,7,QIRV\VWHPV,QFRUSRUDWHG86$ /RDQWRGLUHFWRU 'XHVIURPVXEVLGLDULHV 213.17 Loans and advances to other than related parties Other loans and advances /RDQWRHPSOR\HHV 6HFXULW\GHSRVLWV 2WKHUUHFHLYDEOHV 0.02 686.99 1,107.05 257.92

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Annual Report 2016-17 147 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

2WKHUFXUUHQWÀQDQFLDODVVHWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) )RUZDUGFRQWUDFWVGHVLJQDWHGDVFDVKÁRZKHGJHV 5HIHU1RWH 113.03 ,QWHUHVWDFFUXHGRQÀ[HGGHSRVLWV 1.72 114.75 60.40 59.04 1RWH L ,QIRUPDWLRQDERXWWKH&RPSDQ\·VH[SRVXUHWRLQWHUHVWUDWHULVNIRUHLJQFXUUHQF\ULVNDQGOLTXLGLW\ULVNLVGLVFORVHGLQQRWH

2WKHUFXUUHQWDVVHWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) Advance rentals (PSOR\HHDGYDQFHV &RQVLGHUHGJRRG &RQVLGHUHGGRXEWIXO 10.22 70.32 70.27 /HVV3URYLVLRQIRUGRXEWIXODGYDQFHV 10.22 Advance to suppliers Prepaid expenses 112.72 %DODQFHVZLWKVWDWXWRU\DXWKRULWLHV 325.68 366.50 404.93

6KDUHFDSLWDO $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Authorised: 3UHYLRXV\HDU HTXLW\VKDUHVRI` 2 each. 1,250.00 1,250.00 1,250.00 Issued subscribed and fully paid up: 3UHYLRXV\HDU HTXLW\VKDUHVRI` 2 each fully paid up 376.39 375.65 376.13

16.17KH&RPSDQ\GHFODUHVDQGSD\VGLYLGHQGVLQ,QGLDQUXSHHV7KHGLYLGHQGSURSRVHGWREHGLVWULEXWHGWRHTXLW\VKDUHKROGHUV for the year ended 31 March 2017 is `PLOOLRQLH`SHUVKDUH 3UHYLRXV\HDU`PLOOLRQLH`SHUVKDUH 7KHGLYLGHQGSURSRVHGE\WKH%RDUGRI'LUHFWRUVLVVXEMHFWWRWKHDSSURYDORIWKHVKDUHKROGHUVLQWKHHQVXLQJ$QQXDO*HQHUDO Meeting. 'LYLGHQGVGXULQJWKH\HDUHQGHG0DUFKLQFOXGH`SHUVKDUHWRZDUGVÀQDOGLYLGHQGIRUWKH\HDUHQGHG0DUFK 'LYLGHQGVGXULQJWKH\HDUHQGHG0DUFKLQFOXGH`SHUVKDUHWRZDUGVLQWHULPGLYLGHQGIRUWKH\HDUHQGHG 0DUFKDQG`SHUVKDUHWRZDUGVÀQDOGLYLGHQGIRUWKH\HDUHQGHG0DUFK

16.2,QWKHHYHQWRIOLTXLGDWLRQRIWKH&RPSDQ\WKHKROGHUVRIHTXLW\VKDUHVZLOOEHHQWLWOHGWRUHFHLYHDVKDUHLQWKHUHPDLQLQJDVVHWV RIWKH&RPSDQ\DIWHUGLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWV7KHGLVWULEXWLRQZLOOEHLQSURSRUWLRQWRWKHQXPEHURIHTXLW\ shares held by the shareholders.

Annual Report 2016-17 148 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

16.3 Reconciliation of the number of equity shares outstanding at the beginning and at the end of the year:

Paritculars As at 31 March 2017 As at 31 March 2016 Number of (` million) Number of (` million) shares shares Equity shares At the beginning of the year $GG 6KDUHV LVVXHG RQ H[HUFLVH RI HPSOR\HH VWRFN options /HVV ,QFUHDVH LQ VKDUHV KHOG E\ .3,7 7HFKQRORJLHV /LPLWHG(PSOR\HH:HOIDUH7UXVW 2XWVWDQGLQJDWWKHHQGRIWKH\HDU 188,193,398 376.39

16.47KH&RPSDQ\KDVRQO\RQHFODVVRIVKDUHVUHIHUUHGWRDVHTXLW\VKDUHVKDYLQJDSDUYDOXHRI`(DFKVKDUHKROGHURIHTXLW\ shares is entitled to one vote per share.

16.51XPEHURIHTXLW\VKDUHVKHOGE\HDFKVKDUHKROGHUKROGLQJPRUHWKDQVKDUHVLQWKH&RPSDQ\DUHDVIROORZV

Name of the shareholders Number of % of shares Number of % of shares shares as at held shares as at held 31 March 2017 31 March 2016 3URÀFLHQW)LQVWRFN//3 Warhol Limited

16.6$JJUHJDWHQXPEHURIHTXLW\VKDUHVDOORWWHGDVIXOO\SDLGXSE\ZD\RIERQXVVKDUHVIRUWKHSHULRGRIÀYH\HDUVLPPHGLDWHO\ SUHFHGLQJWKH%DODQFH6KHHWGDWH 3UHYLRXV\HDU

16.7 Capital Management 7KH&RPSDQ\·VREMHFWLYHLVWRVDIHJXDUGLWVDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQDQGWRPDLQWDLQLQYHVWRUFUHGLWRUDQGPDUNHW FRQÀGHQFHDQGWRPD[LPL]HVKDUHKROGHUYDOXH,QRUGHUWRIXOÀOLWVREMHFWLYHWKHPDQDJHPHQWRIWKH&RPSDQ\PRQLWRUVWKH UHWXUQRQFDSLWDODVZHOODVWKHOHYHORIGLYLGHQGVWRRUGLQDU\VKDUHKROGHUV

/RQJWHUPERUURZLQJV

Annual Report 2016-17 149 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

Notes: L 7KH(&%ORDQFRQVLVWVRIORDQVHFXUHGE\SDULSDVVXFKDUJHRYHU&RPSDQ\·V/DQGDQG%XLOGLQJORFDWHGDW3ORW1R 0,'&DUHDRI5DMLY*DQGKL,QIRWHFK3DUN3KDVH,+LQMDZDGLH[FOXGLQJFKDUJHRYHU5 '&HQWUHGHYHORSHGLQWKH SUHPLVHV7KHWHUPORDQFDUULHVLQWHUHVWUDWHRIPRQWKV/,%25EDVLVSRLQWV7KH(&%ORDQLVUHSD\DEOHLQHLJKWHTXDO VHPLDQQXDOLQVWDOOPHQWVRI86'PLOOLRQHDFKXSWR1RYHPEHU7KHSULQFLSDODPRXQWRIORDQRXWVWDQGLQJDVDWWKH %DODQFH6KHHWGDWHLV86'PLOOLRQ LL 7KH(&%ORDQFRQVLVWRIORDQVHFXUHGE\SDULSDVVXFKDUJHRYHU&RPSDQ\·V/DQGDQG%XLOGLQJORFDWHGDW3ORW1R5DMLY *DQGKL,QIRWHFK3DUN3KDVH,,,+LQMDZDGL7KHWHUPORDQFDUULHVLQWHUHVWUDWHRIPRQWKV/,%25EDVLVSRLQWV7KH(&% ORDQLVUHSD\DEOHLQHLJKWHTXDOVHPLDQQXDOLQVWDOOPHQWVRI86'PLOOLRQHDFKZLWKDPRUDWRULXPRI\HDUXSWR0DUFK 7KHSULQFLSDODPRXQWRIORDQRXWVWDQGLQJDVDWWKH%DODQFH6KHHWGDWHLV86'PLOOLRQ LLL 2WKHUWHUPORDQVIURPEDQNDUHVHFXUHGDJDLQVWÀ[HGDVVHWVREWDLQHGXQGHUWKHORDQDUUDQJHPHQW7KHORDQFDUULHVLQWHUHVW XSWRSDDQGLVUHSD\DEOHLQHTXDWHGPRQWKO\LQVWDOOPHQWVRI`PLOOLRQHDFKXSWR2FWREHU LY 7HUPORDQIURPRWKHUWKDQEDQNVLVVHFXUHGE\ZD\RIÀUVWDQGH[FOXVLYHFKDUJHRQÀ[HGDVVHWVDFTXLUHGXQGHUWKHORDQ DUUDQJHPHQW7KHORDQLVUHSD\DEOHLQWZRHTXDOLQVWDOOPHQWVRI`PLOOLRQHDFKXSWR0D\ Y 7HUPORDQIURPRWKHUWKDQEDQNVFRQVLVWRIXQVHFXUHGORDQFDUU\LQJLQWHUHVWUDWHRI7KHUHSD\PHQWRIORDQZLOOVWDUW IURP2FWREHUXSWR2FWREHU YL ,QIRUPDWLRQDERXWWKH&RPSDQ\·VH[SRVXUHWRLQWHUHVWUDWHULVNIRUHLJQFXUUHQF\ULVNDQGOLTXLGLW\ULVNLVGLVFORVHGLQQRWH 31.

/RQJWHUPSURYLVLRQV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 3URYLVLRQIRUHPSOR\HHEHQHÀWV &RPSHQVDWHG$EVHQFHV *UDWXLW\ 5HIHUQRWH 2WKHUSURYLVLRQV SURYLVLRQIRUZDUUDQW\ 5HIHUQRWH 266.35 249.88 205.32

6KRUWWHUPERUURZLQJV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Loans repayable on demand )URPEDQNV 6HFXUHG :RUNLQJFDSLWDOORDQVIURPEDQNV VHFXUHG 5HIHUQRWH L EHORZ :RUNLQJFDSLWDOORDQIURPEDQN XQVHFXUHG 5HIHUQRWH LL EHORZ /LDELOLW\IURPEDQNDJDLQVWELOOGLVFRXQWLQJ XQVHFXUHG 5HIHUQRWH LLL EHORZ )URPRWKHUWKDQEDQNV VHFXUHG 5HIHUQRWH LY EHORZ 13.03 1,876.29 553.81 3,489.31

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Annual Report 2016-17 150 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

LL 7KHORDQFDUULHGLQWHUHVWUDWHXSWRPRQWKV/,%25SOXVSD7KHORDQZDVUHSDLGGXULQJWKHSUHYLRXV\HDU

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Y ,QIRUPDWLRQDERXWWKH&RPSDQ\·VH[SRVXUHWRLQWHUHVWUDWHULVNIRUHLJQFXUUHQF\ULVNDQGOLTXLGLW\ULVNLVGLVFORVHGLQQRWH

7UDGHSD\DEOHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Trade payables 7RWDORXWVWDQGLQJGXHVRIPLFURHQWHUSULVHVDQGVPDOOHQWHUSULVHV 5HIHU 0.13 QRWH Total outstanding dues of creditors other than micro enterprises and small enterprises 588.76 492.25 648.37

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2WKHUFXUUHQWÀQDQFLDOOLDELOLWLHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 &XUUHQWPDWXULWLHVRIORQJWHUPGHEW IURPEDQNV VHFXUHG 5HIHU QRWH 7HUP ORDQ IURP EDQNV IRU GHWDLOV RI VHFXULW\ DQG UHSD\PHQWWHUPV IURPRWKHUV VHFXUHG 5HIHUQRWH7HUPORDQIURPRWKHUWKDQEDQNVIRUGHWDLOVRIVHFXULW\ DQGUHSD\PHQWWHUPV &XUUHQWPDWXULWLHVRIÀQDQFHOHDVHREOLJDWLRQV 5HIHUQRWH 2WKHUWKDQWUDGHSD\DEOHV Accrued employee costs Interest accrued and due 0.13 Interest accrued and not due 7.01 Unclaimed dividend 3D\DEOHVLQUHVSHFWRIÀ[HGDVVHWV 3D\DEOHWRVXEVLGLDULHV 5HIHUQRWH 3.73 Interim dividend payable Security deposits 1,228.72 1,202.42 880.26

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Annual Report 2016-17 151 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Unearned revenue Advances from customers 7.23 Statutory remittances Tax on interim dividend payable 2WKHUV 253.83 302.69 303.29

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$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 3URYLVLRQIRUHPSOR\HHEHQHÀWV &RPSHQVDWHG$EVHQFHV *UDWXLW\ 5HIHUQRWH 22.77 Provision for taxes )ULQJHEHQHÀWWD[ 2WKHUSURYLVLRQV 6HUYLFHWD[SD\DEOH QHWRIWD[SDLGXQGHUSURWHVW 5HIHUQRWH L E 3URYLVLRQIRUZDUUDQW\ 5HIHUQRWH 192.26 127.12 112.99

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Annual Report 2016-17 152 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

&RVWRIPDWHULDOVFRQVXPHG $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 Inventory of materials at the beginning of the year Purchases Inventory of materials at the end of the year 73.32 233.03 141.04

&KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVDQGZRUNLQSURJUHVV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 Finished goods Inventories at the beginning of the year 0.01 Inventories at the end of the year Work-in-progress Inventories at the beginning of the year Inventories at the end of the year 6.61 (8.01)

(PSOR\HHEHQHÀWVH[SHQVH $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 6DODULHVZDJHVDQGLQFHQWLYHV &RQWULEXWLRQWRSURYLGHQWIXQG 5HIHUQRWH 6KDUHEDVHGFRPSHQVDWLRQWRHPSOR\HHV 5HIHUQRWH 30.73 6WDIIZHOIDUHH[SHQVHV 7,965.40 7,175.02

)LQDQFHFRVWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 ,QWHUHVWH[SHQVH 5HIHUQRWH L EHORZ Net loss on foreign currency transactions and translations FRQVLGHUHGDVÀQDQFHFRVWV 85.39 106.42

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Annual Report 2016-17 153 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 7UDYHODQGRYHUVHDVH[SHQVHV QHW 7UDQVSRUWDQGFRQYH\DQFH QHW &RVWRIVHUYLFHGHOLYHU\ QHW &RVWRISURIHVVLRQDOVXEFRQWUDFWLQJ QHW Recruitment and training expenses 3RZHUDQGIXHO 5HQW 5HIHUQRWH 5HSDLUVDQGPDLQWHQDQFH EXLOGLQJV SODQW HTXLSPHQW RWKHUV Insurance 5DWHV WD[HV 7.12 &RPPXQLFDWLRQH[SHQVHV QHW Legal and professional fees 0DUNHWLQJH[SHQVHV 3ULQWLQJ VWDWLRQHU\ $XGLWRUVUHPXQHUDWLRQ QHWRIVHUYLFHWD[ $XGLWIHHV /LPLWHGUHYLHZRITXDUWHUO\UHVXOWV 1.20 1.20 )HHVIRURWKHUVHUYLFHV 2XWRISRFNHWH[SHQVHVUHLPEXUVHG %DGGHEWVZULWWHQRII 0.02 3URYLVLRQIRUGRXEWIXOGHEWVXQELOOHGUHYHQXHDQGDGYDQFHV QHW &RQWULEXWLRQVWRZDUGVFRUSRUDWHVRFLDOUHVSRQVLELOLW\ 5HIHUQRWH 0LVFHOODQHRXVH[SHQVHV QHW 2,370.73 2,403.57

Note &HUWDLQH[SHQVHVDUHQHWRIUHFRYHULHVUHLPEXUVHPHQWVIURPFXVWRPHUV

Annual Report 2016-17 154 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

)LQDQFLDO,QVWUXPHQWV 31.1 Financial Instruments by category 7KHFDUU\LQJYDOXHDQGIDLUYDOXHRIÀQDQFLDOLQVWUXPHQWVE\FDWHJRULHVDVRQ0DUFKDUHDVIROORZV $PRXQWLQ`PLOOLRQ Particulars Amortised Financial assets/ Financial assets/ Total Total fair cost liabilities at fair value liabilities at fair value carrying value WKURXJKSURÀWRUORVV through OCI value

Designated Mandatory Designated Mandatory upon initial upon initial recognition recognition Assets Investments Trade receivables &DVKDQGFDVKHTXLYDOHQWV 2WKHUEDODQFHVZLWKEDQNV Loans Unbilled revenue 323.71 323.71 323.71 2WKHUÀQDQFLDODVVHWV 113.03 Total Assets 7,539.06 - 777.68 - 113.03 8,429.77 8,429.77

Liabilities %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV Total Liabilities 4,679.08 - - - - 4,679.08 4,652.53

Liabilities %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV Total Liabilities 3,901.79 - - - - 3,901.79 3,880.59

Annual Report 2016-17 155 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

7KHFDUU\LQJYDOXHDQGIDLUYDOXHRIÀQDQFLDOLQVWUXPHQWVE\FDWHJRULHVDVRQ$SULOZHUHDVIROORZV

$PRXQWLQ`PLOOLRQ Particulars Amortised Financial assets/ Financial assets/ Total Total fair cost liabilities at fair value liabilities at fair value carrying value WKURXJKSURÀWRUORVV through OCI value Designated Mandatory Designated Mandatory upon initial upon initial recognition recognition Assets Investments Trade receivables &DVKDQGFDVKHTXLYDOHQWV 2WKHUEDODQFHVZLWKEDQNV Loans Unbilled revenue 2WKHUÀQDQFLDODVVHWV Total Assets 8,052.35 - 707.89 - 55.26 8,815.50 8,815.50

Liabilities %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV Total Liabilities 5,646.02 - - - - 5,646.02 5,637.72

31.2 Fair value hierarchy )LQDQFLDODVVHWVDQGOLDELOLWLHVLQFOXGHFDVKDQGFDVKHTXLYDOHQWVRWKHUEDODQFHVZLWKEDQNVWUDGHUHFHLYDEOHVORDQVXQELOOHG UHYHQXHRWKHUÀQDQFLDODVVHWVWUDGHSD\DEOHVDQGRWKHUÀQDQFLDOOLDELOLWLHVZKRVHIDLUYDOXHVDSSUR[LPDWHWKHLUFDUU\LQJDPRXQWV largely due to the short term nature of such assets and liabilities.

/HYHO4XRWHGSULFHV XQDGMXVWHG LQDFWLYHPDUNHWVIRULGHQWLFDODVVHWVRUOLDELOLWLHV

/HYHO²,QSXWVRWKHUWKDQTXRWHGSULFHVLQFOXGHGZLWKLQ/HYHOWKDWDUHREVHUYDEOHIRUWKHDVVHWRUOLDELOLW\HLWKHUGLUHFWO\ LH DVSULFHV RULQGLUHFWO\ LHGHULYHGIURPSULFHV

/HYHO,QSXWVIRUWKHDVVHWVRUOLDELOLWLHVWKDWDUHQRWEDVHGRQREVHUYDEOHPDUNHWGDWD XQREVHUYDEOHLQSXWV

7KHIROORZLQJWDEOHSUHVHQWVIDLUYDOXHKLHUDUFK\RIDVVHWVDQGOLDELOLWLHVPHDVXUHGDWIDLUYDOXHDVRQ0DUFK $PRXQWLQ`PLOOLRQ Particulars As at Fair value measurement 31 March 2017 Level 1 Level 2 Level 3 ,QYHVWPHQW LQ 6DQNDOS 6HPLFRQGXFWRUV 3ULYDWH Limited Investments in Mutual funds ,QYHVWPHQWLQHTXLW\LQVWUXPHQWVRIRWKHUHQWLWLHV 0.00* 0.00* 'HULYDWLYHÀQDQFLDODVVHWV 113.03 113.03 %RUURZLQJV

Annual Report 2016-17 156 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

7KHIROORZLQJWDEOHSUHVHQWVIDLUYDOXHKLHUDUFK\RIDVVHWVDQGOLDELOLWLHVPHDVXUHGDWIDLUYDOXHDVRQ0DUFK $PRXQWLQ`PLOOLRQ Particulars As at Fair value measurement 31 March 2016 Level 1 Level 2 Level 3 ,QYHVWPHQWLQ6DQNDOS6HPLFRQGXFWRUV3ULYDWH/LPLWHG ,QYHVWPHQWLQHTXLW\LQVWUXPHQWVRIRWKHUHQWLWLHV 0.00* 0.00* 'HULYDWLYHÀQDQFLDODVVHWV %RUURZLQJV

7KHIROORZLQJWDEOHSUHVHQWVIDLUYDOXHKLHUDUFK\RIDVVHWVDQGOLDELOLWLHVPHDVXUHGDWIDLUYDOXHDVRQ$SULO $PRXQWLQ`PLOOLRQ Particulars As at Fair value measurement 01 April 2015 Level 1 Level 2 Level 3 ,QYHVWPHQW LQ 6DQNDOS 6HPLFRQGXFWRUV 3ULYDWH Limited Investments in Mutual funds ,QYHVWPHQWLQHTXLW\LQVWUXPHQWVRIRWKHUHQWLWLHV 0.00* 0.00* 'HULYDWLYHÀQDQFLDODVVHWV %RUURZLQJV * Since denominated in ` million.

9DOXDWLRQWHFKQLTXHDQGVLJQLÀFDQWXQREVHUYDEOHLQSXWV

Level 2:

L 'HULYDWLYHÀQDQFLDODVVHWVDUHYDOXHGEDVHGRQLQSXWVWKDWDUHGLUHFWO\RULQGLUHFWO\REVHUYDEOHLQWKHPDUNHW

LL %RUURZLQJVDUHYDOXHGXVLQJWKHGLVFRXQWHGFDVKÁRZPHWKRGWKHQHWFDVKÁRZVH[SHFWHGWREHJHQHUDWHGDUHGLVFRXQWHG XVLQJWKHFRVWRIERUURZLQJWKDWDUHGLUHFWO\RULQGLUHFWO\REVHUYDEOHLQWKHPDUNHW

6LJQLÀFDQWLQFUHDVHLQGLVFRXQWUDWHVDQGVSUHDGVDERYHULVNIUHHUDWHLQLVRODWLRQZRXOGUHVXOWLQORZHUIDLUYDOXHV$VLJQLÀFDQW LQFUHDVHLQYRODWLOLW\LQUHYHQXHJURZWKUDWHVZLOOUHVXOWLQKLJKHUIDLUYDOXH

31.3 Financial risk management 7KHERDUGRIGLUHFWRUVKDVRYHUDOOUHVSRQVLELOLW\IRUWKHHVWDEOLVKPHQWDQGRYHUVLJKWRIWKH&RPSDQ\ULVNPDQDJHPHQWIUDPHZRUN 7KHERDUGRIGLUHFWRUVKDVHVWDEOLVKHGWKH5LVN0DQDJHPHQW&RPPLWWHHVZKLFKLVUHVSRQVLEOHIRUGHYHORSLQJDQGPRQLWRULQJ WKH&RPSDQ\·VULVNPDQDJHPHQWSROLFLHV

Annual Report 2016-17 157 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

7KH&RPSDQ\KDVH[SRVXUHWRWKHIROORZLQJULVNVDULVLQJIURPÀQDQFLDOLQVWUXPHQWV a. Credit risk &UHGLWULVNLVWKHULVNRIÀQDQFLDOORVVHVWRWKH&RPSDQ\LIDFXVWRPHURUFRXQWHUSDUW\WRÀQDQFLDOLQVWUXPHQWVIDLOVWR GLVFKDUJH LWV FRQWUDFWXDO REOLJDWLRQV DQG DULVHV SULPDULO\ IURP WKH &RPSDQ\·V UHFHLYDEOHV IURP FXVWRPHUV DPRXQWLQJ to ` PLOOLRQ ` PLOOLRQ DQG ` PLOOLRQ DQG XQELOOHG UHYHQXH DPRXQWLQJ WR ` PLOOLRQ `PLOOLRQDQG`PLOOLRQDVRQ0DUFK0DUFKDQG$SULOUHVSHFWLYHO\7RPDQDJHWKLV WKH&RPSDQ\SHULRGLFDOO\DVVHVVHVWKHNH\DFFRXQWVUHFHLYDEOHEDODQFHV$VSHU,QG$6)LQDQFLDO,QVWUXPHQWVWKH &RPSDQ\XVHVH[SHFWHGFUHGLWORVVPRGHOWRDVVHVVWKHLPSDLUPHQWORVVRUJDLQ 7KHFDUU\LQJDPRXQWRIWUDGHDQGRWKHUUHFHLYDEOHVDQGRWKHUÀQDQFLDODVVHWVUHSUHVHQWVWKHPD[LPXPFUHGLWH[SRVXUH i. Trade receivables 7KHPDQDJHPHQWKDVHVWDEOLVKHGDFFRXQWVUHFHLYDEOHSROLF\XQGHUZKLFKFXVWRPHUDFFRXQWVDUHUHJXODUO\PRQLWRUHG 7KH &RPSDQ\ KDV D GHGLFDWHG VDOHV WHDP DW HDFK JHRJUDSK\ ZKLFK LV UHVSRQVLEOH IRU FROOHFWLQJ GXHV IURP WKH FXVWRPHUZLWKLQVWLSXODWHGSHULRG7KHPDQDJHPHQWUHYLHZVVWDWXVRIFULWLFDODFFRXQWVRQDUHJXODUEDVLV ii. Impairment Movement in the allowance for impairment in respect of trade and other receivables

Particulars (Amount in ` million) Balance as on April 1, 2015 244.72 Impairment during the year Reversal of impairment on account of collection 8WLOLVDWLRQRIDOORZDQFH )RUHLJQH[FKDQJHWUDQVODWLRQ Balance as on March 31, 2016 295.71 Impairment during the year Reversal of impairment on account of collection 8WLOLVDWLRQRIDOORZDQFH )RUHLJQH[FKDQJHWUDQVODWLRQ 1.37 Balance as on March 31, 2017 81.50

Trade receivables that were not impaired

$PRXQWLQ`PLOOLRQ Particulars Carrying amount 31 March 2017 31 March 2016 01 April 2015 Neither past due nor impaired 3DVWGXHGD\V 3DVWGXHGD\V 3DVWGXHGD\V 302.30 0RUHWKDQGD\V

8QELOOHGUHYHQXHLVQRWRXWVWDQGLQJIRUPRUHWKDQGD\V

Annual Report 2016-17 158 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

iii. Cash and bank balances 7KH&RPSDQ\KHOGFDVKDQGEDQNEDODQFHVRI`PLOOLRQ`PLOOLRQDQG`PLOOLRQDVRQ 0DUFK0DUFKDQG$SULOUHVSHFWLYHO\7KHFDVKDQGEDQNEDODQFHVDUHKHOGZLWKEDQNV ZKLFKKDYHKLJKFUHGLWUDWLQJVDVVLJQHGE\LQWHUQDWLRQDOFUHGLWUDWLQJDJHQFLHV

iv. Guarantees 7KH&RPSDQ\·VSROLF\LVWRSURYLGHÀQDQFLDOJXDUDQWHHVRQO\RQEHKDOIRIVXEVLGLDULHV7KH&RPSDQ\KDVLVVXHG WKHJXDUDQWHHVWRFHUWDLQEDQNVLQUHVSHFWRIFUHGLWIDFLOLWLHVJUDQWHGWRLWVVXEVLGLDULHV

b. Liquidity risk /LTXLGLW\ULVNLVWKHULVNWKDWWKH&RPSDQ\ZLOOHQFRXQWHUGLIÀFXOW\LQPHHWLQJWKHREOLJDWLRQVDVVRFLDWHGZLWKLWVÀQDQFLDO OLDELOLWLHVWKDWDUHVHWWOHGE\GHOLYHULQJFDVKRUDQRWKHUÀQDQFLDODVVHW7KH&RPSDQ\·VDSSURDFKWRPDQDJLQJOLTXLGLW\LV WRHQVXUHDVIDUDVSRVVLEOHWKDWLWZLOOKDYHVXIÀFLHQWOLTXLGLW\WRPHHWLWVOLDELOLWLHVZKHQWKH\DUHGXHXQGHUERWKQRUPDO DQGVWUHVVHGFRQGLWLRQVZLWKRXWLQFXUULQJXQDFFHSWDEOHORVVHVRUULVNLQJGDPDJHWRWKH&RPSDQ\·VUHSXWDWLRQ 7KH&RPSDQ\KDVDYLHZRIPDLQWDLQLQJOLTXLGLW\DQGWRWDNHPLQLPXPSRVVLEOHULVNZKLOHPDNLQJLQYHVWPHQWV,QRUGHUWR PDLQWDLQOLTXLGLW\WKH&RPSDQ\LQYHVWVLWVH[FHVVIXQGVLQVKRUWWHUPOLTXLGDVVHWVOLNHOLTXLGPXWXDOIXQGV7KH&RPSDQ\ PRQLWRUVLWVFDVKDQGEDQNEDODQFHVSHULRGLFDOO\LQYLHZRILWVVKRUWWHUPREOLJDWLRQVDVVRFLDWHGZLWKLWVÀQDQFLDOOLDELOLWLHV 7KHOLTXLGLW\SRVLWLRQDWHDFKUHSRUWLQJGDWHLVJLYHQEHORZ $PRXQWLQ`PLOOLRQ Particulars 31 March 2017 31 March 2016 01 April 2015 &DVKDQGFDVKHTXLYDOHQWV 2WKHUEDODQFHVZLWKEDQNV ,QYHVWPHQWVLQ0XWXDOIXQGV TXRWHG )L[HGGHSRVLWVZLWKEDQNVLQFOXGLQJLQWHUHVWDFFUXHG Total 2,058.32 2,212.90 2,407.90

7KHIROORZLQJDUHWKHUHPDLQLQJFRQWUDFWXDOPDWXULWLHVRIÀQDQFLDOOLDELOLWLHVDVRQ0DUFK $PRXQWLQ`PLOOLRQ Particulars Less than 1-2 years 2-4 years 4-5 years Total 1 year %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV

Annual Report 2016-17 159 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

7KHIROORZLQJDUHWKHUHPDLQLQJFRQWUDFWXDOPDWXULWLHVRIÀQDQFLDOOLDELOLWLHVDVRQ$SULO $PRXQWLQ`PLOOLRQ Particulars Less than 1-2 years 2-4 years 4-5 years Total 1 year %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV

c. Market risk 0DUNHWULVNLVDULVNWKDWWKHIDLUYDOXHRUIXWXUHFDVKÁRZVRIDÀQDQFLDOLQVWUXPHQWZLOOÁXFWXDWHEHFDXVHRIFKDQJHVLQ PDUNHWSULFHV7KHREMHFWLYHRIPDUNHWULVNPDQDJHPHQWLVWRPDQDJHDQGFRQWUROPDUNHWULVNH[SRVXUHVZLWKLQDFFHSWDEOH SDUDPHWHUVZKLOHRSWLPL]LQJWKHUHWXUQ

i. Foreign currency risk 6LJQLÀFDQWSRUWLRQRIWKH&RPSDQ\·VUHYHQXHVDUHLQIRUHLJQFXUUHQFLHVZKLOHDVLJQLÀFDQWSRUWLRQRIWKHFRVWVDUHLQ ,QGLDQUXSHHLHIXQFWLRQDOFXUUHQF\RIWKH&RPSDQ\7KHIRUHLJQFXUUHQFLHVWRZKLFKWKH&RPSDQ\LVPDMRUO\H[SRVHG WRDUH86'ROODUV(XURVDQG3RXQG6WHUOLQJ

7KH&RPSDQ\HYDOXDWHVQHWH[FKDQJHUDWHH[SRVXUHEDVHGRQFXUUHQWUHYHQXHSURMHFWLRQVDQGH[SHFWHGYRODWLOLW\ LQWKHPDUNHWDQGFRYHUVLWVH[SRVXUHXSWRRQQHWEDVLV)RUWKLVSXUSRVHWKH&RPSDQ\XVHVIRUHLJQFXUUHQF\ GHULYDWLYHLQVWUXPHQWVVXFKDVIRUZDUGFRYHUVWRPLWLJDWHWKHULVN7KHFRXQWHUSDUW\WRWKHVHGHULYDWLYHLQVWUXPHQWV LVDEDQN7KH&RPSDQ\KDVGHVLJQDWHGFHUWDLQGHULYDWLYHLQVWUXPHQWVDVFDVKÁRZKHGJHWRPLWLJDWHWKHIRUHLJQ H[FKDQJHH[SRVXUHRIKLJKO\SUREDEOHIRUHFDVWHGFDVKÁRZV

Exposure to Currency Risk The following is the Company’s expRVXUHWRFXUUHQF\ULVNIURPÀQDQFLDOLQVWUXPHQWVDVRI0DUFK $PRXQWLQ`PLOOLRQ Particulars US Dollars Euros Pound Sterling Other Total currencies &DVKDQGFDVK 277.23 HTXLYDOHQWV Trade receivables 2WKHUÀQDQFLDODVVHWV LQFOXGLQJORDQ %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV Net assets/(liabilities) 560.37 21.70 329.55 662.43 1,574.05

Annual Report 2016-17 160 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

7KHIROORZLQJLVWKH&RPSDQ\·VH[SRVXUHWRFXUUHQF\ULVNIURPÀQDQFLDOLQVWUXPHQWVDVRI0DUFK $PRXQWLQ`PLOOLRQ Particulars US Dollars Euros Pound Sterling Other Total currencies &DVKDQGFDVK HTXLYDOHQWV Trade receivables 2WKHUÀQDQFLDODVVHWV LQFOXGLQJORDQ %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV Net assets/(liabilities) 604.81 376.36 353.79 586.68 1,921.64

7KHIROORZLQJLVWKH&RPSDQ\·VH[SRVXUHWRFXUUHQF\ULVNIURPÀQDQFLDOLQVWUXPHQWVDVRI$SULO $PRXQWLQ`PLOOLRQ Particulars US Dollars Euros Pound Sterling Other Total currencies &DVKDQGFDVK HTXLYDOHQWV Trade receivables 2WKHUÀQDQFLDODVVHWV LQFOXGLQJORDQ %RUURZLQJV Trade payables 2WKHUÀQDQFLDOOLDELOLWLHV Net assets/(liabilities) (142.75) 483.32 363.19 753.05 1,456.81

)RUWKH\HDUHQGHG0DUFKHYHU\DSSUHFLDWLRQGHSUHFLDWLRQRIWKHH[FKDQJHUDWHEHWZHHQUHVSHFWLYH IRUHLJQFXUUHQFLHVDQGWKH,QGLDQUXSHHZRXOGLPSDFWWKHRSHUDWLQJPDUJLQVE\DSSUR[LPDWHO\

LL 'HULYDWLYHDVVHWVDQGOLDELOLWLHVGHVLJQDWHGDVFDVKÁRZKHGJHV

,Q DFFRUGDQFH ZLWK LWV ULVN PDQDJHPHQW SROLF\ DQG EXVLQHVV SODQ WKH &RPSDQ\ KDV KHGJHG LWV FDVK ÁRZV 7KH &RPSDQ\HQWHUVLQWRGHULYDWLYHFRQWUDFWVWRRIIVHWWKHIRUHLJQFXUUHQF\ULVNDULVLQJIURPWKHDPRXQWVGHQRPLQDWHGLQ FXUUHQFLHVRWKHUWKDQLQ,QGLDQUXSHHV7KHFRXQWHUSDUW\WRWKH&RPSDQ\·VIRUHLJQFXUUHQF\FRQWUDFWVLVDEDQN7KHVH FRQWUDFWVDUHHQWHUHGLQWRWRKHGJHWKHIRUHLJQFXUUHQF\ULVNVRIÀUPFRPPLWPHQWV VDOHVRUGHUV DQGKLJKO\SUREDEOH IRUHFDVW WUDQVDFWLRQV +HGJH HIIHFWLYHQHVV LV GHWHUPLQHG DW WKH LQFHSWLRQ RI WKH KHGJH UHODWLRQVKLS DQG WKURXJK SHULRGLFSURVSHFWLYHHIIHFWLYHQHVVDVVHVVPHQWVWRHQVXUHWKDWDQHFRQRPLFUHODWLRQVKLSH[LVWVEHWZHHQWKHKHGJHG LWHPDQGKHGJLQJLQVWUXPHQWLQFOXGLQJZKHWKHUWKHKHGJLQJLQVWUXPHQWLVH[SHFWHGWRRIIVHWFKDQJHVLQFDVKÁRZV of hedged items.

Annual Report 2016-17 161 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

7KHIROORZLQJDUHWKHRXWVWDQGLQJ*%386'(85,15&XUUHQF\([FKDQJH&RQWUDFWVHQWHUHGLQWRE\WKH&RPSDQ\ ZKLFKKDVEHHQGHVLJQDWHGDV&DVK)ORZ+HGJHV Particulars 31 March 2017 31 March 2016 01 April 2015 Foreign ` (million) Foreign ` (million) Foreign ` (million) Currency Currency Currency (million) (million) (million) (85 86' *%3 1.00 1.10 1.20

7KHIRUZDUGFRQWUDFWVHQWHUHGKDYHPDWXULW\EHWZHHQGD\VWRPRQWKVIURPWKH%DODQFH6KHHWGDWH

7KHPRYHPHQWLQWKHKHGJLQJUHVHUYHIRUGHULYDWLYHVZKLFKKDYHEHHQGHVLJQDWHGDV&DVK)ORZ+HGJHVLVDVIROORZV Particulars 31 March 2017 31 March 2016 Balance at the beginning of the year *DLQV ORVVHV UHFRJQLVHGLQ2WKHU&RPSUHKHQVLYH,QFRPH 113.03 $PRXQWVUHFODVVLÀHGWR6WDWHPHQWRI3URÀWDQG/RVV 'HIHUUHGWD[RQIDLUYDOXHRIHIIHFWLYHSRUWLRQRIFDVKÁRZKHGJHV 1.27 Balance at the end of the year

iii. Interest rate risk ,QWHUHVWUDWHULVNLVWKHULVNWKDWWKHIDLUYDOXHRUIXWXUHFDVKÁRZVRIDÀQDQFLDOLQVWUXPHQWZLOOÁXFWXDWHEHFDXVHRIFKDQJHV LQPDUNHWLQWHUHVWUDWHV7KH&RPSDQ\·VH[SRVXUHWRWKHULVNRIFKDQJHVLQPDUNHWLQWHUHVWUDWHVUHODWHVSULPDULO\WRWKH &RPSDQ\·V GHEW REOLJDWLRQV ZLWK ÁRDWLQJ LQWHUHVW UDWHV DQG EDQN GHSRVLWV 7KH LQWHUHVW UDWH SURÀOH RI WKH &RPSDQ\·V LQWHUHVWEHDULQJÀQDQFLDOLQVWUXPHQWVLVDVIROORZV Particulars 31 March 2017 31 March 2016 01 April 2015 Fixed rate instruments )LQDQFLDODVVHWV )LQDQFLDOOLDELOLWLHV Variable rate instruments )LQDQFLDODVVHWV )LQDQFLDOOLDELOLWLHV

$FKDQJHRIEDVLVSRLQWVLQLQWHUHVWUDWHVDWWKHUHSRUWLQJGDWHZRXOGKDYHLQFUHDVHGRUGHFUHDVHGÀQDQFHFRVWVE\ `PLOOLRQ 3UHYLRXV\HDU`PLOOLRQ

Annual Report 2016-17 162 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

2WKHUHTXLW\ (i) Capital reserve $Q\SURÀWRUORVVRQSXUFKDVHVDOHLVVXHRUFDQFHOODWLRQRIWKH&RPSDQ\·VRZQHTXLW\LQVWUXPHQWVLVWUDQVIHUUHGWRFDSLWDO reserve. (ii) Capital redemption reserve 5HSUHVHQWVWKHQRPLQDODPRXQWRIWKHSUHIHUHQFHVKDUHFDSLWDORQUHGHPSWLRQRIFXPXODWLYHUHGHHPDEOH preference shares. (iii) Amalgamation reserve 5HSUHVHQWVWKHDPRXQWFUHGLWHGRQDFFRXQWRIFDQFHOODWLRQRIVWRFNRSWLRQVLVVXHGSXUVXDQWWRWKHVFKHPHRIDPDOJDPDWLRQ DQGDFTXLVLWLRQ (iv) Securities premium reserve 6HFXULWLHVSUHPLXPLVXVHGWRUHFRUGWKHSUHPLXPUHFHLYHGRQLVVXHRIVKDUHV,WLVXWLOLVHGLQDFFRUGDQFHZLWKWKHSURYLVLRQV RIWKH&RPSDQLHV$FW (v) Share based payment reserve 7KH&RPSDQ\KDVHVWDEOLVKHGYDULRXVHTXLW\VHWWOHGVKDUHEDVHGSD\PHQWSODQVIRUFHUWDLQFDWHJRULHVRIHPSOR\HHVRIWKH &RPSDQ\5HIHUQRWHIRUIXUWKHUGHWDLOV

33 $VDW0DUFKWKH&RPSDQ\KDVUHFHLYHGDQDPRXQWRI`1LO 0DUFK`PLOOLRQDQG$SULO` PLOOLRQ WRZDUGVVKDUHDSSOLFDWLRQPRQH\IRUVKDUHV1LO 0DUFKVKDUHVDQG$SULOVKDUHV DW a premium of `1LO 0DUFK`PLOOLRQDQG$SULO`PLOOLRQ

34 'LVFORVXUHDVSHUWKHUHTXLUHPHQWRIVHFWLRQRIWKH0LFUR6PDOODQG0HGLXP(QWHUSULVH'HYHORSPHQW$FW D 3ULQFLSDODPRXQWSD\DEOHWR0LFURDQG6PDOO(QWHUSULVHV WRWKHH[WHQWLGHQWLÀHGE\WKH&RPSDQ\IURPDYDLODEOHLQIRUPDWLRQ as at 31 March 2017 is `PLOOLRQ 3UHYLRXV\HDU`PLOOLRQ LQFOXGLQJXQSDLGDPRXQWVRI`1LO 3UHYLRXV\HDU `1LO RXWVWDQGLQJIRUPRUHWKDQGD\V(VWLPDWHGLQWHUHVWGXHWKHUHRQLV`1LO 3UHYLRXV\HDU`1LO b. Amount of payments made to suppliers beyond the appointed date during the year is `PLOOLRQ 3UHYLRXV\HDU` PLOOLRQ ,QWHUHVWSDLGWKHUHRQLV`1LO 3UHYLRXV\HDU`1LO DQGWKHHVWLPDWHGLQWHUHVWGXHDQGSD\DEOHWKHUHRQLV` 0.00 PLOOLRQ 3UHYLRXV\HDU`PLOOLRQ c. The amount of estimated interest accrued and remaining unpaid as at 31 March 2017 is `PLOOLRQ 3UHYLRXV\HDU `PLOOLRQ d. The amount of further estimated interest due and payable for the period from 1 April 2017 to actual date of payment or $SULO ZKLFKHYHULVHDUOLHU LV` Nil.

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Annual Report 2016-17 163 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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Actuarial Assumptions: FY 2016-17 FY 2015-16 'LVFRXQWUDWH 6DODU\(VFDODWLRQ

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Annual Report 2016-17 166 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

% /LVWRI.H\0DQDJHPHQW3HUVRQQHO .H\0DQDJHPHQW3HUVRQQHO .03 0U6% 5DYL 3DQGLW ([HFXWLYH'LUHFWRU Mr. Kishor Patil ([HFXWLYH'LUHFWRU 0U6DFKLQ7LNHNDU ([HFXWLYH'LUHFWRU 'U5DJKXQDWK$QDQW0DVKHONDU ,QGHSHQGHQW'LUHFWRU 0V/LOD3RRQDZDOOD ,QGHSHQGHQW'LUHFWRU 3URI$OEHUWR6DQJLRYDQQL9LQFHQWHOOL ,QGHSHQGHQW'LUHFWRU 0U6DQMD\.XNUHMD 1RQH[HFXWLYH'LUHFWRU 0U'ZD\QH$OOHQ XSWR0DUFK $OWHUQDWH'LUHFWRU Mr. Anant Talaulicar ,QGHSHQGHQW'LUHFWRU 0U$GL(QJLQHHU ,QGHSHQGHQW'LUHFWRU 0U%956XEEX 1RQH[HFXWLYH'LUHFWRU 0U$QLO3DWZDUGKDQ &KLHI)LQDQFLDO2IÀFHU 0U6ZDPLQDWKDQ5 XSWR-XO\ &RPSDQ\6HFUHWDU\ 0V6QHKD3DGYH ZHI-XO\ &RPSDQ\6HFUHWDU\

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No. Name of related party FY 2016-17 FY 2015-16 Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) Transactions with subsidiary companies* 1 KPIT Technologies (UK) Limited ,QYHVWPHQWLQHTXLW\ NIL NIL Loan granted to subsidiary NIL NIL Repayment of loan granted to NIL NIL NIL subsidiary** Interest income NIL Sales Reimbursement revenue 6RIWZDUHVHUYLFHFKDUJHV $GYDQFHJLYHQ QHW 5HLPEXUVHPHQWRIH[SHQVHV QHW

Annual Report 2016-17 167 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

No. Name of related party FY 2016-17 FY 2015-16 Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) 2 KPIT Technologies France ,QYHVWPHQWLQHTXLW\ NIL NIL Sales Reimbursement revenue 6RIWZDUHVHUYLFHFKDUJHV NILNIL $GYDQFHJLYHQ QHW 0.01 5HLPEXUVHPHQWRIH[SHQVHV QHW 3 KPIT Technologies GmbH, Germany Sales Reimbursement revenue 12.31 6RIWZDUHVHUYLFHFKDUJHV $GYDQFHJLYHQ QHW 10.03 12.73 5HLPEXUVHPHQWRIH[SHQVHV QHW 31.23 37.73 4 KPIT Infosystems Incorporated, USA ,QYHVWPHQWLQHTXLW\ NIL NIL Sales Reimbursement revenue 6RIWZDUHVHUYLFHFKDUJHV $GYDQFHJLYHQ QHW 5HLPEXUVHPHQWRIH[SHQVHV QHW Repayment of loan granted to subsidiary*** Loan granted to subsidiary NILNIL Interest income 20.20 5 Sparta Consulting Inc., USA $GYDQFHJLYHQ QHW 0.32 5HLPEXUVHPHQWRIH[SHQVHV QHW 2.71 Reimbursement revenue Sales 6RIWZDUHVHUYLFHFKDUJHV 0.01 0.12

Annual Report 2016-17 168 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

No. Name of related party FY 2016-17 FY 2015-16 Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) 6 KPIT (Shanghai) Software Technology Co. Limited, China ,QYHVWPHQWLQHTXLW\ NIL 32.00 Sales Reimbursement revenue 1.02 6RIWZDUHVHUYLFHFKDUJHV NILNIL $GYDQFHJLYHQ QHW NIL $GYDQFHWDNHQ QHW NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW 7 KPIT Technologies Corporation, Canada Sales Reimbursement revenue 6RIWZDUHVHUYLFHFKDUJHV NILNIL $GYDQFHWDNHQ QHW NIL $GYDQFHJLYHQ QHW NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW 8 KPIT Infosystems ME FZE, Dubai ,QYHVWPHQWLQ(TXLW\ NIL NIL Sales NIL NIL Reimbursement revenue NIL $GYDQFHJLYHQ QHW 5HLPEXUVHPHQWRIH[SHQVHV QHW 9 KPIT Infosystems ME FZE (Australia Branch) Sales Reimbursement revenue 6RIWZDUHVHUYLFHFKDUJHV NILNIL $GYDQFHJLYHQ QHW 1.37 5HLPEXUVHPHQWRIH[SHQVHV QHW 2.10

Annual Report 2016-17 169 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

No. Name of related party FY 2016-17 FY 2015-16 Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) 10 KPIT Infosystems ME FZE (Korea Branch) Sales Reimbursement revenue 0.32 6RIWZDUHVHUYLFHFKDUJHV NILNIL $GYDQFHJLYHQ QHW 5HLPEXUVHPHQWRIH[SHQVHV QHW 11 KPIT Technologies Netherlands B.V. ,QYHVWPHQWLQ(TXLW\ NIL NIL Sales Reimbursement revenue 1.01 $GYDQFHJLYHQ QHW 5HLPEXUVHPHQWRIH[SHQVHV QHW 12 KPIT Technologies Soluções EM Informática Ltda. ,QYHVWPHQWLQ(TXLW\ NIL NIL 6RIWZDUHVHUYLFHFKDUJHV 13 KPIT Technologies (UK) Limited (Sweden Branch) Sales Reimbursement revenue 3.13 6RIWZDUHVHUYLFHFKDUJHV NILNIL $GYDQFHJLYHQ QHW NIL $GYDQFHWDNHQ QHW 0.02 NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW 0.20 14 SYSTIME Computer Corporation, USA ,QYHVWPHQWLQ(TXLW\ NIL NIL Sales Reimbursement revenue 6RIWZDUHVHUYLFHFKDUJHV NILNIL $GYDQFHJLYHQ QHW 3.02 107.23 5HLPEXUVHPHQWRIH[SHQVHV QHW

Annual Report 2016-17 170 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

No. Name of related party FY 2016-17 FY 2015-16 Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) 15 Impact Automotive Solutions Limited ,QYHVWPHQWLQ(TXLW\ $GYDQFHJLYHQ QHW 5HLPEXUVHPHQWRIH[SHQVHV QHW 0.37 3XUFKDVHRI&RPSRQHQWV NIL 0.01 NIL 0.01 Rent and administration charges NIL NIL Sales 16 KPIT Solutions GmbH 5HLPEXUVHPHQWRIH[SHQVHV QHW NILNIL 17 CPG Solutions, LLC USA Sales NA NA NIL Reimbursement revenue NA 18 KPIT medini Technologies AG Purchase of license NIL 0.27 NIL 6RIWZDUHVHUYLFHFKDUJHV Transactions with Key Management Personnel 1 Mr. S. B. (Ravi) Pandit 6KRUWWHUPHPSOR\HHEHQHÀWV 31.70 NIL NIL 3RVWHPSOR\PHQWEHQHÀWV NIL NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW 2.37 NIL NIL 2 Mr. Kishor Patil 6KRUWWHUPHPSOR\HHEHQHÀWV NIL NIL 3RVWHPSOR\PHQWEHQHÀWV 0.70 NIL NIL 3HUTXLVLWHV 0.70 NIL NIL Loan given NIL 30.00 Repayment of loan granted Interest received NIL NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW NIL 3 Mr. Sachin Tikekar 6KRUWWHUPHPSOR\HHEHQHÀWV NIL NIL 3RVWHPSOR\PHQWEHQHÀWV 0.33 NIL 0.32 NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW NIL

Annual Report 2016-17 171 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

No. Name of related party FY 2016-17 FY 2015-16 Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) 4 Mr. Anil Patwardhan 6KRUWWHUPHPSOR\HHEHQHÀWV NIL NIL 3RVWHPSOR\PHQWEHQHÀWV 0.21 NIL NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW 0.32 NIL NIL 5 Mr. Swaminathan R (upto 21 July 2015) 6KRUWWHUPHPSOR\HHEHQHÀWV NA NA NIL 3RVWHPSOR\PHQWEHQHÀWV NA NA 0.03 NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW NA NA NIL 6 Ms. Sneha Padve (w.e.f 22 July 2015) 6KRUWWHUPHPSOR\HHEHQHÀWV 3.70 NIL 2.10 NIL 3RVWHPSOR\PHQWEHQHÀWV 0.12 NIL 0.07 NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW NILNIL 0.01 NIL 7 Dr. Raghunath Anant Mashelkar &RPPLVVLRQSDLG Share based compensation NIL NIL 0.23 NIL Sitting fees 0.10 0.11 8 Ms. Lila Poonawalla &RPPLVVLRQSDLG 3.12 Share based compensation NIL NIL 0.23 NIL Sitting fees 0.33 9 Prof. Alberto Sangiovanni Vincentelli &RPPLVVLRQSDLG Share based compensation NIL NIL 0.23 NIL Sitting fees 0.11 10 Mr. Anant Talaulicar Sitting fees NILNIL 0.02 NIL 11 Mr. Adi Engineer &RPPLVVLRQSDLG NIL NIL Sitting fees 0.30 12 Mr. B V R Subbu &RPPLVVLRQSDLG 2.32 2.20 NIL NIL Sitting fees 0.12 0.10

Annual Report 2016-17 172 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

No. Name of related party FY 2016-17 FY 2015-16 Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) Transactions with relative of Key Management Personnel 1 Mr. Chinmay Pandit 6KRUWWHUPHPSOR\HHEHQHÀWV NIL NIL 3RVWHPSOR\PHQWEHQHÀWV 0.11 NIL NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW NIL NIL 2 Ms. Jayada Pandit 6KRUWWHUPHPSOR\HHEHQHÀWV 1.72 NIL NIL 3RVWHPSOR\PHQWEHQHÀWV NIL NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW NILNIL 0.01 NIL 3 Mr. Shreyas Patwardhan 6KRUWWHUPHPSOR\HHEHQHÀWV NIL NIL 3RVWHPSOR\PHQWEHQHÀWV 0.02 NIL 0.02 NIL 5HLPEXUVHPHQWRIH[SHQVHV QHW NILNIL 0.00 NIL 7UDQVDFWLRQVZLWKHQWHUSULVHRYHUZKLFK.H\0DQDJHPHQW3HUVRQQHOKDYHVLJQLÀFDQWLQÁXHQFH 1 KP Corporate Solutions Ltd. Sales NILNIL NIL Professional fees 0.01 0.00 2 Kirtane & Pandit LLP Professional fees 0.03 NIL 3 3URÀFLHQW)LQ6WRFN//3 'HSRVLWVIRUUHDSSRLQWPHQWRIGLUHFWRUV NILNIL

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Annual Report 2016-17 173 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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1. Finance leases 7KH&RPSDQ\KDVWDNHQYHKLFOHVXQGHUÀQDQFHOHDVHIRUDSHULRGUDQJLQJIURPWR\HDUV8SRQSD\PHQWRIDOOVXPVGXH WRZDUGVWKHDJUHHPHQWWKH&RPSDQ\KDVWKHRSWLRQRIDFTXLULQJWKH9HKLFOHV'XULQJWKHOHDVHSHULRGWKH&RPSDQ\FDQ QHLWKHUVHOODVVLJQVXEOHWSOHGJHPRUWJDJHFKDUJHHQFXPEHURUSDUWZLWKSRVVHVVLRQRIWKHDVVHWVQRUFUHDWHRUDOORZ WRFUHDWHDQ\OLHQRQWKHYHKLFOHVWDNHQRQOHDVH

7KH&RPSDQ\KDVDOVRWDNHQODQGXQGHUÀQDQFHOHDVHDQGWKHOHDVHUHQWDORIZKLFKKDVEHHQSDLGLQLWVHQWLUHW\DWWKH commencement of the lease period.

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Particulars 31 March 2017 31 March 2016 01 April 2015 ` million ` million ` million )XWXUHPLQLPXPOHDVHSD\PHQWV QRWODWHUWKDQRQH\HDU ODWHUWKDQRQH\HDUDQGQRWODWHUWKDQÀYH\HDUV 2.00 ODWHUWKDQÀYH\HDUV NIL NIL NIL Total future minimum lease payments 2.00 Amount representing future interest 0.70 Present value of future minimum lease payments QRWODWHUWKDQRQH\HDU ODWHUWKDQRQH\HDUDQGQRWODWHUWKDQÀYH\HDUV ODWHUWKDQÀYH\HDUV NIL NIL NIL

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Annual Report 2016-17 179 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 180 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 183 1RWHVIRUPLQJSDUWRIWKHVWDQGDORQHÀQDQFLDOVWDWHPHQWV

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As per our report of even date attached For B S R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants KPIT TECHNOLOGIES LIMITED Firm Registration Number: 101248W / W-100022

Vijay Mathur Anil Patwardhan S. B. (Ravi) Pandit Partner &KLHI)LQDQFLDO2IÀFHU &KDLUPDQ *URXS&(2 0HPEHUVKLS1R

Sneha Padve Kishor Patil &RPSDQ\6HFUHWDU\ &(2 0DQDJLQJ'LUHFWRU

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Annual Report 2016-17 184 Independent Auditors’ Report

To the Members of KPIT Technologies Limited

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For B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/ W-100022

Vijay Mathur 3ODFH3XQH 3DUWQHU 'DWH$SULO 0HPEHUVKLS1R

Annual Report 2016-17 186 Annexure A to the Independent Auditors’ Report on the Consolidated Ind AS Financial Statements of KPIT Technologies Limited 5HIHUUHGWRLQSDUDJUDSK I LQ5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWVRIWKH,QGHSHQGHQW$XGLWRUV·5HSRUWWRWKH PHPEHUVRI.3,77HFKQRORJLHV/LPLWHGRQWKHFRQVROLGDWHG,QG$6ÀQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

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Auditor’s Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKH*URXS·VLQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJEDVHGRQRXUDXGLW:H FRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ WKH ´*XLGDQFH1RWHµ LVVXHGE\WKH,&$,DQGWKH6WDQGDUGVRQ$XGLWLQJLVVXHGE\,&$,DQGGHHPHGWREHSUHVFULEHGXQGHUVHFWLRQ RIWKH&RPSDQLHV$FWWRWKHH[WHQWDSSOLFDEOHWRDQDXGLWRILQWHUQDOÀQDQFLDOFRQWUROVERWKLVVXHGE\WKH,QVWLWXWHRI &KDUWHUHG$FFRXQWDQWVRI,QGLD7KRVH6WDQGDUGVDQGWKH*XLGDQFH1RWHUHTXLUHWKDWZHFRPSO\ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQ DQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUDGHTXDWHLQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJZDV HVWDEOLVKHGDQGPDLQWDLQHGDQGLIVXFKFRQWUROVRSHUDWHGHIIHFWLYHO\LQDOOPDWHULDOUHVSHFWV 2XUDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDGHTXDF\RIWKHLQWHUQDOÀQDQFLDOFRQWUROVV\VWHP RYHUÀQDQFLDOUHSRUWLQJDQGWKHLURSHUDWLQJHIIHFWLYHQHVV2XUDXGLWRILQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJLQFOXGHG REWDLQLQJDQXQGHUVWDQGLQJRILQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJDVVHVVLQJWKHULVNWKDWDPDWHULDOZHDNQHVVH[LVWV DQGWHVWLQJDQGHYDOXDWLQJWKHGHVLJQDQGRSHUDWLQJHIIHFWLYHQHVVRILQWHUQDOFRQWUROEDVHGRQWKHDVVHVVHGULVN7KHSURFHGXUHV VHOHFWHGGHSHQGRQWKHDXGLWRU·VMXGJHPHQWLQFOXGLQJWKHDVVHVVPHQWRIWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHFRQVROLGDWHG,QG $6ÀQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports UHIHUUHGWRLQWKH2WKHU0DWWHUVSDUDJUDSKEHORZLVVXIÀFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQWKH*URXS·V LQWHUQDOÀQDQFLDOFRQWUROVV\VWHPRYHUÀQDQFLDOUHSRUWLQJ

Meaning of Internal Financial Control Over Financial Reporting $FRPSDQ\·VLQWHUQDOÀQDQFLDOFRQWURORYHUÀQDQFLDOUHSRUWLQJLVDSURFHVVGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFHUHJDUGLQJWKH UHOLDELOLW\RIÀQDQFLDOUHSRUWLQJDQGWKHSUHSDUDWLRQRIFRQVROLGDWHG,QG$6ÀQDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHVLQDFFRUGDQFH ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV$FRPSDQ\·VLQWHUQDOÀQDQFLDOFRQWURORYHUÀQDQFLDOUHSRUWLQJLQFOXGHVWKRVHSROLFLHV DQGSURFHGXUHVWKDW SHUWDLQWRWKHPDLQWHQDQFHRIUHFRUGVWKDWLQUHDVRQDEOHGHWDLODFFXUDWHO\DQGIDLUO\UHÁHFWWKHWUDQVDFWLRQV DQGGLVSRVLWLRQVRIWKHDVVHWVRIWKHFRPSDQ\ SURYLGHUHDVRQDEOHDVVXUDQFHWKDWWUDQVDFWLRQVDUHUHFRUGHGDVQHFHVVDU\WR SHUPLWSUHSDUDWLRQRIFRQVROLGDWHG,QG$6ÀQDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVDQG that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors RIWKHFRPSDQ\DQG SURYLGHUHDVRQDEOHDVVXUDQFHUHJDUGLQJSUHYHQWLRQRUWLPHO\GHWHFWLRQRIXQDXWKRULVHGDFTXLVLWLRQXVHRU GLVSRVLWLRQRIWKHFRPSDQ\·VDVVHWVWKDWFRXOGKDYHDPDWHULDOHIIHFWRQWKHFRQVROLGDWHG,QG$6ÀQDQFLDOVWDWHPHQWV

Annual Report 2016-17 187 Inherent Limitations of Internal Financial Control Over Financial Reporting %HFDXVHRIWKHLQKHUHQWOLPLWDWLRQVRILQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJLQFOXGLQJWKHSRVVLELOLW\RIFROOXVLRQRU LPSURSHUPDQDJHPHQWRYHUULGHRIFRQWUROVPDWHULDOPLVVWDWHPHQWVGXHWRHUURURUIUDXGPD\RFFXUDQGQRWEHGHWHFWHG$OVR SURMHFWLRQVRIDQ\HYDOXDWLRQRIWKHLQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDOUHSRUWLQJWRIXWXUHSHULRGVDUHVXEMHFWWRWKHULVNWKDW WKHLQWHUQDOÀQDQFLDOFRQWURORYHUÀQDQFLDOUHSRUWLQJPD\EHFRPHLQDGHTXDWHEHFDXVHRIFKDQJHVLQFRQGLWLRQVRUWKDWWKHGHJUHH RIFRPSOLDQFHZLWKWKHSROLFLHVRUSURFHGXUHVPD\GHWHULRUDWH

Opinion ,QRXURSLQLRQWKH+ROGLQJ&RPSDQ\DQGLWVVXEVLGLDU\FRPSDQ\ZKLFKLVDFRPSDQ\LQFRUSRUDWHGLQ,QGLDKDYHLQDOOPDWHULDO UHVSHFWVDQDGHTXDWHLQWHUQDOÀQDQFLDOFRQWUROVV\VWHPRYHUÀQDQFLDOUHSRUWLQJDQGVXFKLQWHUQDOÀQDQFLDOFRQWUROVRYHUÀQDQFLDO UHSRUWLQJZHUHRSHUDWLQJHIIHFWLYHO\DVDW0DUFKEDVHGRQWKHLQWHUQDOFRQWURORYHUÀQDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHG E\WKH+ROGLQJ&RPSDQ\FRQVLGHULQJWKHHVVHQWLDOFRPSRQHQWVRILQWHUQDOFRQWUROVWDWHGLQWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO )LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD

Other Matters 2XUDIRUHVDLGUHSRUWXQGHU6HFWLRQ L RIWKH$FWRQWKHDGHTXDF\DQGRSHUDWLQJHIIHFWLYHQHVVRIWKHLQWHUQDOÀQDQFLDOFRQWUROV RYHUÀQDQFLDOUHSRUWLQJLQVRIDUDVLWUHODWHVWRRQHVXEVLGLDU\FRPSDQ\ZKLFKLVDFRPSDQ\LQFRUSRUDWHGLQ,QGLDLVEDVHGRQWKH FRUUHVSRQGLQJUHSRUWRIWKHDXGLWRURIVXFKFRPSDQ\LQFRUSRUDWHGLQ,QGLD

For B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/ W-100022

Vijay Mathur 3ODFH3XQH 3DUWQHU 'DWH$SULO 0HPEHUVKLS1R

Annual Report 2016-17 188 Consolidated Balance Sheet

$PRXQWLQ`PLOOLRQ Note As at As at As at 31 March 2017 31 March 2016 01 April 2015 ASSETS Non-current assets 3URSHUW\SODQWDQGHTXLSPHQW $ &DSLWDOZRUNLQSURJUHVV *RRGZLOO % 2WKHULQWDQJLEOHDVVHWV & Intangible assets under development Financial assets Investments Loans 2WKHUÀQDQFLDODVVHWV ,QFRPHWD[DVVHWV QHW 'HIHUUHGWD[DVVHWV QHW 2WKHUQRQFXUUHQWDVVHWV 10,582.17 9,049.82 9,606.12 Current assets Inventories Financial assets Investments Trade receivables &DVKDQGFDVKHTXLYDOHQWV 2WKHUEDODQFHVZLWKEDQNV Loans Unbilled revenue 2WKHUÀQDQFLDODVVHWV 2WKHUFXUUHQWDVVHWV 14,631.47 12,781.84 13,154.65

TOTAL ASSETS 25,213.64 21,831.66 22,760.77

EQUITY AND LIABILITIES Equity (TXLW\VKDUHFDSLWDO 2WKHUHTXLW\ Equity attributable to owners of the Company 1RQFRQWUROOLQJLQWHUHVW - - Total equity 15,841.49 13,854.38 12,795.68

Annual Report 2016-17 189 Consolidated Balance Sheet

$PRXQWLQ`PLOOLRQ Note As at As at As at 31 March 2017 31 March 2016 01 April 2015 Liabilities Non-current liabilities Financial liabilities %RUURZLQJV 2WKHUÀQDQFLDOOLDELOLWLHV Provisions 'HIHUUHGWD[OLDELOLWLHV QHW 20 1,696.41 2,243.82 1,467.93 Current liabilities Financial liabilities %RUURZLQJV Trade payables 22 2WKHUÀQDQFLDOOLDELOLWLHV 2WKHUFXUUHQWOLDELOLWLHV Provisions &XUUHQWLQFRPHWD[OLDELOLWLHV QHW 7,675.74 5,733.46 8,497.16

TOTAL EQUITY AND LIABILITIES 25,213.64 21,831.66 22,760.77

6LJQLÀFDQWDFFRXQWLQJSROLFLHV 1RWHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKHFRQVROLGDWHG ÀQDQFLDOVWDWHPHQWV As per our report of even date attached For B S R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants KPIT TECHNOLOGIES LIMITED Firm Registration Number: 101248W / W-100022

Vijay Mathur Anil Patwardhan S. B. (Ravi) Pandit Partner &KLHI)LQDQFLDO2IÀFHU &KDLUPDQ *URXS&(2 0HPEHUVKLS1R

Sneha Padve Kishor Patil &RPSDQ\6HFUHWDU\ &(2 0DQDJLQJ'LUHFWRU

3ODFH3XQH 3ODFH3XQH 'DWH$SULO 'DWH$SULO

Annual Report 2016-17 190 &RQVROLGDWHG6WDWHPHQWRI3URÀWDQG/RVV

$PRXQWLQ`PLOOLRQ Note For the For the Year Ended Year Ended 31 March 2017 31 March 2016 Revenue from operations 2WKHULQFRPH Total income 33,440.21 32,545.93 Expenses &RVWRIPDWHULDOVFRQVXPHG &KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVDQGZRUNLQSURJUHVV (PSOR\HHEHQHÀWVH[SHQVH Finance costs 'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH ([FLVHGXW\ 2WKHUH[SHQVHV Total expenses 30,709.90 28,778.44 3URÀWEHIRUHH[FHSWLRQDOLWHPVDQGWD[ 2,730.31 3,767.49 ([FHSWLRQDOLWHPV 5HIHUQRWH 3URÀWEHIRUHVKDUHRIHTXLW\DFFRXQWHGLQYHVWHHVDQGWD[ 2,991.22 3,654.51 6KDUHRISURÀW ORVV RIHTXLW\DFFRXQWHGLQYHVWHHV QHWRIWD[ - 3URÀWEHIRUHWD[ 2,991.17 3,654.51 Tax expense &XUUHQWWD[ MAT credit entitlement 'HIHUUHGWD[ EHQHÀW FKDUJH Total tax expense 605.73 845.48 3URÀWIRUWKH\HDU 2,385.44 2,809.03 Other comprehensive income ,WHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀWRUORVV 5HPHDVXUHPHQWVRIGHÀQHGEHQHÀWSODQV ,QFRPHWD[RQLWHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀWRUORVV

,WHPVWKDWZLOOEHUHFODVVLÀHGWRSURÀWRUORVV ([FKDQJHGLIIHUHQFHVLQWUDQVODWLQJWKHÀQDQFLDOVWDWHPHQWVRIIRUHLJQRSHUDWLRQV (IIHFWLYHSRUWLRQRIJDLQV ORVVHV RQKHGJLQJLQVWUXPHQWVLQFDVKÁRZKHGJHV ,QFRPHWD[RQLWHPVWKDWZLOOEHUHFODVVLÀHGWRSURÀWRUORVV Total other comprehensive income (250.72) 123.32 Total comprehensive income for the year 2,134.72 2,932.35 3URÀWDWWULEXWDEOHWR 2ZQHUVRIWKHFRPSDQ\ 1RQFRQWUROOLQJLQWHUHVWV - 3URÀWIRUWKH\HDU 2,385.44 2,809.03 Other comprehensive income attributable to 2ZQHUVRIWKHFRPSDQ\ 1RQFRQWUROOLQJLQWHUHVWV - - Other comprehensive income for the year (250.72) 123.32

Annual Report 2016-17 191 &RQVROLGDWHG6WDWHPHQWRI3URÀWDQG/RVV

$PRXQWLQ`PLOOLRQ Note For the For the Year Ended Year Ended 31 March 2017 31 March 2016 Total comprehensive income attributable to 2ZQHUVRIWKHFRPSDQ\ 1RQFRQWUROOLQJLQWHUHVWV -

Total comprehensive income for the year 2,134.72 2,932.35

Earnings per equity share for continuing operations (face value per share ` 2 each) %DVLF 'LOXWHG 6LJQLÀFDQWDFFRXQWLQJSROLFLHV 1RWHVUHIHUUHGWRDERYHIRUPDQLQWHJUDOSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV As per our report of even date attached For B S R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants KPIT TECHNOLOGIES LIMITED Firm Registration Number: 101248W / W-100022

Vijay Mathur Anil Patwardhan S. B. (Ravi) Pandit Partner &KLHI)LQDQFLDO2IÀFHU &KDLUPDQ *URXS&(2 0HPEHUVKLS1R

Sneha Padve Kishor Patil &RPSDQ\6HFUHWDU\ &(2 0DQDJLQJ'LUHFWRU

3ODFH3XQH 3ODFH3XQH 'DWH$SULO 'DWH$SULO

Annual Report 2016-17 192 Consolidated Statement of Cash Flows

$PRXQWLQ`PLOOLRQ PARTICULARS For the For the Year Ended Year Ended 31 March 2017 31 March 2016 A] CASH FLOW FROM OPERATING ACTIVITIES 3URÀWIRUWKH\HDU Adjustments for Income tax expense 3URÀW /RVVRQVDOHRIÀ[HGDVVHWV QHW 6KDUHRIORVVRIHTXLW\DFFRXQWHGLQYHVWHHV QHWRIWD[ - 'HSUHFLDWLRQ$PRUWL]DWLRQ'LPXQLWLRQ Write-down of slow moving inventory - Interest expense Interest income 'LYLGHQGLQFRPH ([FHSWLRQDOLWHPV Provision for doubful debts %DGGHEWVZULWWHQRII Share based compensation expenses 8QUHDOLVHGIRUHLJQH[FKDQJHORVV JDLQ Fair value changes in purchase consideration payable 2SHUDWLQJ3URÀWEHIRUHZRUNLQJFDSLWDOFKDQJHV Adjustments for changes in working capital: Trade receivables and unbilled revenue Inventories /RDQVRWKHUÀQDQFLDOVDVVHWVDQGRWKHUDVVHWV Trade Payables 2WKHUÀQDQFLDOOLDELOLWLHVRWKHUOLDELOLWLHVDQGSURYLVLRQV &DVKJHQHUDWHGIURPRSHUDWLRQV Income taxes paid Net cash from operating activities (A) 1,630.34 4,099.51

B] CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets 3URFHHGVIURPVDOHRIÀ[HGDVVHWV $FTXLVLWLRQRIVXEVLGLDU\ QHWRIFDVKDFTXLUHG - Proceeds from sale of subsidiary - 3XUFKDVHRILQYHVWPHQWVFDUULHGDWIDLUYDOXHWKURXJKSURÀWDQGORVV - 3URFHHGIURPVDOHRILQYHVWPHQWVFDUULHGDWIDLUYDOXHWKURXJKSURÀWDQGORVV - 3D\PHQWRIFRQWLQJHQWFRQVLGHUDWLRQIRUDFTXLVLWLRQRIVXEVLGLDULHV Interest received 'LYLGHQGUHFHLYHG )L[HG'HSRVLWZLWKEDQNV QHW KDYLQJPDWXULW\RYHUWKUHHPRQWKV Net Cash used in investing activities (B) (1,501.85) (1,456.66)

Annual Report 2016-17 193 Consolidated Statement of Cash Flows

$PRXQWLQ`PLOOLRQ PARTICULARS For the For the Year Ended Year Ended 31 March 2017 31 March 2016 C] CASH FLOW FROM FINANCING ACTIVITIES 3URFHHGVIURP/RQJWHUPORDQIURPEDQNV 5HSD\PHQWRI/RQJWHUPORDQIURPEDQNV 3URFHHGVIURP/RQJWHUPORDQIURPRWKHUWKDQEDQNV 5HSD\PHQWRI/RQJWHUPORDQIURPRWKHUWKDQEDQNV 3URFHHGVIURPLVVXHRI6KDUH&DSLWDODQGDSSOLFDWLRQPRQH\ 3URFHHGVIURP:RUNLQJ&DSLWDOORDQ QHW 3URFHHGVIURP SD\PHQWVIRU VKDUHVLVVXHGSXUFKDVHGE\(PSOR\HH:HOIDUH7UXVW QHW 'LYLGHQGSDLGLQFOXGLQJFRUSRUDWHGLYLGHQGWD[ ,QWHUHVWDQGÀQDQFHFKDUJHVSDLG 1HWFDVK XVHGLQ IURPÀQDQFLQJDFWLYLWLHV & 801.25 (3,065.36)

D] Exchange differences on translation of foreign currency cash and cash equivalents

Net Increase / (decrease ) in cash and cash equivalents (A + B+ C + D) 929.70 (420.99)

&DVK FDVKHTXLYDOHQWVDWFORVHRIWKH\HDU 5HIHUQRWHEHORZ &DVK FDVKHTXLYDOHQWVDWEHJLQQLQJRIWKH\HDU 5HIHUQRWHEHORZ &DVK6XUSOXV GHÀFLW IRUWKH\HDU 929.70 (420.99)

Note 1 : Cash and cash equivalents include: &DVKRQKDQG &KHTXHVLQKDQG %DODQFHZLWKEDQNV - In current accounts ,QGHSRVLWDFFRXQWV ZLWKRULJLQDOPDWXULW\RIPRQWKVRUOHVV Total Cash and cash equivalents 3,788.93 2,859.23 Note 2: )LJXUHVLQEUDFNHWVUHSUHVHQWRXWÁRZVRIFDVKDQGFDVKHTXLYDOHQWV Note 3: 7KHDERYH&DVK)ORZ6WDWHPHQWKDVEHHQSUHSDUHGXQGHUWKHLQGLUHFWPHWKRGDVVHWRXWLQWKH,QGLDQ$FFRXQWLQJ6WDQGDUG ,QG$6 RQVWDWHPHQWRIFDVKÁRZV As per our report of even date attached For B S R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants KPIT TECHNOLOGIES LIMITED Firm Registration Number: 101248W / W-100022

Vijay Mathur Anil Patwardhan S. B. (Ravi) Pandit Partner &KLHI)LQDQFLDO2IÀFHU &KDLUPDQ *URXS&(2 0HPEHUVKLS1R

Sneha Padve Kishor Patil &RPSDQ\6HFUHWDU\ &(2 0DQDJLQJ'LUHFWRU

3ODFH3XQH 3ODFH3XQH 'DWH$SULO 'DWH$SULO

Annual Report 2016-17 194

Total Total equity 376.13 375.65 376.39 PLOOLRQ ` 13,478.73 13,478.73

- 2,932.35 12,419.55

------Non- interest controlling controlling $PRXQWLQ - attributable to owners of ownersto of the Company

12,419.55 - Plans of the net of GHÀQHGEHQHÀW Remeasurement Remeasurement

------(Refer (Refer hedges note 33) Effective Effective FDVKÁRZ portion of ------36.14 ------ reserve Foreign Foreign currency currency translation -

- -

earnings Retained Retained - -

- 2,385.05 (273.48) 40.17 (17.41) 2,134.33 0.39 2,134.72

2,809.03 156.94 (2.40) (31.22) 2,932.35 -

- - Amalgama- tion reserve ------ reserve General - - -

------ Share Share based based reserve payment payment

------Reserves & surplus Income Other Comprehensive of Items Equity reserve premium premium Securities

------

- - - Capital reserve redemption redemption ------Capital Reserve ------Share Share money money pending pending allotment application application nd-AS I Balance as at 1 April 2015 &KDQJHVLQHTXLW\VKDUHFDSLWDOGXULQJ 2016 Balance as at 31 March &KDQJHVLQHTXLW\VKDUHFDSLWDOGXULQJ 2017 Balance as at 31 March Share based payments to to payments based Share employees 2WKHUDGMXVWPHQWVRQWUDQVLWLRQ to 2016Balance as on 31 March Balance as on 01 April 20163URÀWIRUWKH\HDU 0.63 2WKHUFRPSUHKHQVLYHLQFRPH 27.71 QHWRIWD[ 0.63 27.71 40.00 3,904.43 40.00 110.33 3,904.43 255.21 110.33 255.21 51.40 8,929.56 51.40 8,929.56 156.94 33.74 156.94 33.74 (31.22) 13,478.73 (31.22) 13,478.73 - - Total comprehensive income comprehensive Total for the year $FFXPXODWHGGHÀFLWRI trust employee welfare Transfer to general reserve to Transfer shares on issue of Premium XQGHU(623VFKHPH - $GMXVWPHQWXQGHUWKHVFKHPH RIDPDOJDPDWLRQ 5HIHUQRWH &KDQJHVGXULQJWKH\HDU 'LYLGHQGGLVWULEXWLRQWD[ Transactions with owners Transactions in equity directly recognised 'LYLGHQGV Total comprehensive income comprehensive Total for the year Balance as on 01 April 20153URÀWIRUWKH\HDU 2WKHUFRPSUHKHQVLYHLQFRPH QHWRIWD[ 7.65 27.71 40.00 3,849.17 56.59 53.21 51.40 8,297.68 - Consolidated Statement of Changes in Equity Consolidated Statement of A capital Equity share equity B Other

Annual Report 2016-17 195

Total Total equity

------Non- interest controlling controlling

- attributable to owners of ownersto of the Company

- Plans of the net of GHÀQHGEHQHÀW Remeasurement Remeasurement ------(Refer (Refer hedges note 33) Effective Effective FDVKÁRZ portion of ------reserve Foreign Foreign (116.54) 73.91 (48.63) 15,448.24 16.86 15,465.10 (116.54) 73.91 (48.63)16.86 15,448.24 currency currency translation - - - - earnings Retained Retained 11,091.88

- - -

Anil Patwardhan&KLHI)LQDQFLDO2IÀFHUSneha Padve&RPSDQ\6HFUHWDU\3ODFH3XQH &KDLUPDQ *URXS&(2 'DWH$SULO S. B. (Ravi) Pandit &(2 0DQDJLQJ'LUHFWRU Kishor Patil Amalgama- tion reserve ------reserve General ------ Share Share based based reserve payment payment - - - - -

- Reserves & surplus Income Other Comprehensive of Items Equity reserve premium premium Securities ------1 2-46 Capital reserve redemption redemption ------Capital Reserve ------Share Share money money pending pending allotment application application Partner Partner 0HPEHUVKLS1R 3ODFH3XQH 'DWH$SULO As per our report of even date attached date even As per our report of For B S R & Co. LLPChartered Accountants Number:Firm Registration 101248W / W-100022 Vijay Mathur LIMITED KPIT TECHNOLOGIES of Directors of the Board For and on behalf of $FFXPXODWHGGHÀFLWRI trust employee welfare &KDQJHVGXULQJWKH\HDU Changes in ownership interests in subsidiaries 2QDFTXLVLWLRQRIVXEVLGLDU\ 5HIHUQRWH 2017Balance as on 31 March 0.11 27.71 40.00 3,904.43 168.76 255.21 51.40 6LJQLÀFDQWDFFRXQWLQJSROLFLHV form an integral part the above to of referred Notes FRQVROLGDWHGÀQDQFLDOVWDWHPHQWV 'LYLGHQGGLVWULEXWLRQWD[ Share based payments to to payments based Share employees Premium on issue of shares shares on issue of Premium XQGHU(623VFKHPH Transactions with owners Transactions in equity directly recognised 'LYLGHQGV

Consolidated Statement of Changes in Equity Consolidated Statement of

Annual Report 2016-17 196 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 200 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 201 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 202 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 203 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 204 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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G )DLUYDOXHRIÀQDQFLDOLQVWUXPHQWV LQ WKH ¶IDLU YDOXHV· EXW QRQPDUNHW SHUIRUPDQFH 7KH*URXSXVHVGLVFRXQWHGFDVKÁRZDQDO\VLVPHWKRG FRQGLWLRQVDQGVHUYLFHYHVWLQJFRQGLWLRQVDUHUHÁHFWHG IRU WKH IDLU YDOXH RI LWV ÀQDQFLDO LQVWUXPHQWV H[FHSW in the estimate of the number of awards expected to IRU HPSOR\HH VWRFN RSWLRQV (623 ZKHUH %ODFN DQG YHVW $OVR WKH DPHQGPHQW FODULÀHV WKDW LI WKH WHUPV 6FKROHVRSWLRQVSULFLQJPRGHOLVXVHG7KHPHWKRGRI and conditions of a cash-settled share based payment assessing fair value results in general approximation of WUDQVDFWLRQDUHPRGLÀHGZLWKWKHUHVXOWWKDWLWEHFRPHV DQHTXLW\VHWWOHGVKDUHEDVHGSD\PHQWWUDQVDFWLRQWKH YDOXHDQGVXFKYDOXHPD\QHYHUDFWXDOO\EHUHDOL]HG transaction is accounted for as such from the date of )RUDOORWKHUÀQDQFLDOLQVWUXPHQWVWKHFDUU\LQJDPRXQW WKHPRGLÀFDWLRQ)XUWKHUWKHDPHQGPHQWUHTXLUHVWKH approximates fair value due to short maturity of those award that include a net settlement feature in respect LQVWUXPHQWV RIZLWKKROGLQJWD[HVWREHWUHDWHGDVHTXLW\VHWWOHGLQ LWVHQWLUHW\7KHFDVKSD\PHQWWRWKHWD[DXWKRULW\LV 5HFHQWDFFRXQWLQJSURQRXQFHPHQWV WUHDWHGDVLILWZDVSDUWRIDQHTXLW\VHWWOHPHQW 6WDQGDUGVLVVXHGEXWQRW\HWHIIHFWLYH 7KH *URXS LV HYDOXDWLQJ WKH UHTXLUHPHQWV RI WKH ,Q0DUFKWKH0LQLVWU\RI&RUSRUDWH$IIDLUVLVVXHGWKH amendment and the impact on the consolidated &RPSDQLHV ,QGLDQ $FFRXQWLQJ 6WDQGDUGV $PHQGPHQWV ÀQDQFLDOVWDWHPHQWVLVEHLQJHYDOXDWHG 5XOHVQRWLI\LQJDPHQGPHQWVWR,QG$66WDWHPHQW RIFDVKÁRZVDQG,QG$66KDUHEDVHGSD\PHQW7KHVH )LUVWWLPHDGRSWLRQRI,QG$6 amendments are in accordance with the recent amendments ([SODQDWLRQRIWUDQVLWLRQWR,QG$6 PDGHE\,QWHUQDWLRQDO$FFRXQWLQJ6WDQGDUGV%RDUG ,$6% D 7KHVH DUH WKH *URXS·V ÀUVW &RQVROLGDWHG )LQDQFLDO WR,$66WDWHPHQWRIFDVKÁRZVDQG,)566KDUHEDVHG 6WDWHPHQWVSUHSDUHGLQDFFRUGDQFHZLWK,QG$6 SD\PHQW UHVSHFWLYHO\ 7KH DPHQGPHQWV DUH DSSOLFDEOH WR WKH*URXSIURP$SULO E 7KHDFFRXQWLQJSROLFLHVVHWRXWLQ1RWHKDYHEHHQ L $PHQGPHQWWR,QG$6 DSSOLHG LQ SUHSDULQJ WKHVH FRQVROLGDWHG ÀQDQFLDO VWDWHPHQWV IRU WKH \HDU HQGHG 0DUFK WKH 7KH DPHQGPHQW WR ,QG$6 UHTXLUHV WKH HQWLWLHV WR FRPSDUDWLYHLQIRUPDWLRQSUHVHQWHGLQWKHVHÀQDQFLDO SURYLGH GLVFORVXUHV WKDW HQDEOH XVHUV RI ÀQDQFLDO VWDWHPHQWVIRUWKH\HDUHQGHG0DUFKDQGLQ statements to evaluate changes in liabilities arising the preparation of an opening consolidated Ind-AS IURP ÀQDQFLQJ DFWLYLWLHV LQFOXGLQJ ERWK FKDQJHV %DODQFH6KHHWDVDW$SULO WKH*URXS·VGDWHRI DULVLQJ IURP FDVK ÁRZV DQG QRQFDVK FKDQJHV WUDQVLWLRQ suggesting inclusion of a reconciliation between the RSHQLQJDQGFORVLQJEDODQFHVLQWKH%DODQFH6KHHWIRU F ,QSUHSDULQJLWVFRQVROLGDWHGRSHQLQJ,QG$6%DODQFH OLDELOLWLHVDULVLQJIURPÀQDQFLQJDFWLYLWLHVWRPHHWWKH Sheet and in presenting the comparative information GLVFORVXUHUHTXLUHPHQW IRU WKH \HDU HQGHG 0DUFK WKH *URXS KDV DGMXVWHGDPRXQWVUHSRUWHGSUHYLRXVO\LQFRQVROLGDWHG 7KH *URXS LV HYDOXDWLQJ WKH UHTXLUHPHQWV RI WKH ÀQDQFLDO VWDWHPHQWV SUHSDUHG LQ DFFRUGDQFH ZLWK amendment and the impact on the consolidated WKH DFFRXQWLQJ VWDQGDUGV QRWLÀHG XQGHU &RPSDQLHV ÀQDQFLDOVWDWHPHQWVLVEHLQJHYDOXDWHG $FFRXQWLQJ6WDQGDUGV 5XOHV DVDPHQGHG DQG RWKHU UHOHYDQW SURYLVLRQV RI WKH $FW SUHYLRXV *$$3 LL $PHQGPHQWWR,QG$6 RU ,QGLDQ *HQHUDOO\ $FFHSWHG $FFRXQWLQJ 3ULQFLSOHV 7KH DPHQGPHQW WR ,QG$6 SURYLGHV VSHFLÀF ,*$$3 $Q H[SODQDWLRQ RI KRZ WKH WUDQVLWLRQ IURP JXLGDQFH WR PHDVXUHPHQW RI FDVKVHWWOHG DZDUGV ,*$$3 WR ,QG$6 KDV DIIHFWHG WKH JURXS·V ÀQDQFLDO PRGLÀFDWLRQ RI FDVKVHWWOHG DZDUGV DQG DZDUGV SRVLWLRQ ÀQDQFLDO SHUIRUPDQFH DQG FDVK ÁRZV LV VHW that include a net settlement feature in respect of RXWLQWKHIROORZLQJWDEOHVDQGQRWHV ZLWKKROGLQJWD[HV 2SWLRQDOH[HPSWLRQVDYDLOHGDQGPDQGDWRU\H[FHSWLRQV ,WFODULÀHVWKDWWKHIDLUYDOXHRIFDVKVHWWOHGDZDUGVLV ,Q SUHSDULQJ WKHVH &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV determined on a basis consistent with that used for WKH *URXS KDV DYDLOHG FHUWDLQ RSWLRQDO H[HPSWLRQV DQG HTXLW\VHWWOHG DZDUGV 0DUNHW EDVHG SHUIRUPDQFH PDQGDWRU\ H[FHSWLRQV LQ DFFRUGDQFH ZLWK ,QG$6 DV FRQGLWLRQV DQG QRQYHVWLQJ FRQGLWLRQV DUH UHÁHFWHG H[SODLQHGEHORZ

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Annual Report 2016-17 208 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

5HFRQFLOLDWLRQV 7KH EHORZ PHQWLRQHG UHFRQFLOLDWLRQV SURYLGH WKH TXDQWLÀFDWLRQ RI WKH HIIHFW RQ WKH WUDQVLWLRQ IURP ,*$$3 WR ,QG$6 LQ DFFRUGDQFHZLWK,QG$6

5HFRQFLOLDWLRQRI(TXLW\DVSUHYLRXVO\UHSRUWHGXQGHU,*$$3WR,QG$6 $PRXQWLQ`PLOOLRQ Particulars Note 31 March 2016 01 April 2015 IGAAP Effects of Ind-AS IGAAP Effects of Ind-AS transition transition ASSETS Non-current assets 3URSHUW\SODQWDQGHTXLSPHQW i - &DSLWDOZRUNLQSURJUHVV - - *RRGZLOO ii - 2WKHULQWDQJLEOHDVVHWV i - Intangible assets under i - development Financial assets Investments - - Loans iii 2WKHUÀQDQFLDODVVHWV - - ,QFRPHWD[DVVHWV QHW - - 'HIHUUHGWD[DVVHWV QHW iv 2WKHUQRQFXUUHQWDVVHWV iii 9,293.53 (243.71) 9,049.82 9,639.73 (33.61) 9,606.12 Current assets Inventories - - Financial assets Investments - - Trade receivables - - &DVKDQGFDVKHTXLYDOHQWV - - 2WKHUEDODQFHVZLWKEDQNV - - Loans iii - Unbilled revenue - - 2WKHUÀQDQFLDODVVHWV - - 2WKHUFXUUHQWDVVHWV LLLY 12,777.46 4.38 12,781.84 13,148.91 5.74 13,154.65

TOTAL ASSETS 22,070.99 (239.33) 21,831.66 22,788.64 (27.87) 22,760.77

Annual Report 2016-17 209 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ Particulars Note 31 March 2016 01 April 2015 IGAAP Effects of Ind-AS IGAAP Effects of Ind-AS transition transition EQUITY AND LIABILITIES Equity (TXLW\VKDUHFDSLWDO - - 2WKHUHTXLW\ i-iv Equity attributable to owners of 13,807.54 46.84 13,854.38 12,961.50 (165.82) 12,795.68 the Company 1RQFRQWUROOLQJLQWHUHVW ------Total equity 13,807.54 46.84 13,854.38 12,961.50 (165.82) 12,795.68 Liabilities Non-current liabilities Financial liabilities %RUURZLQJV v 2WKHUÀQDQFLDOOLDELOLWLHV ii - - Provisions - - 'HIHUUHGWD[OLDELOLWLHV QHW - - 2,188.42 55.40 2,243.82 1,207.98 259.95 1,467.93 Current liabilities Financial liabilities %RUURZLQJV - - Trade payables - - 2WKHUÀQDQFLDOOLDELOLWLHV LLY 2WKHUFXUUHQWOLDELOLWLHV - - Provisions vi &XUUHQWLQFRPHWD[OLDELOLWLHV - - QHW 6,075.03 (341.57) 5,733.46 8,619.16 (122.00) 8,497.16

TOTAL EQUITY AND LIABILITIES 22,070.99 (239.33) 21,831.66 22,788.64 (27.87) 22,760.77

Annual Report 2016-17 210 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

Reconciliation of total comprehensive income for the year ended on 31 March 2016, as previously reported under IGAAP to Ind-AS: $PRXQWLQ`PLOOLRQ Particulars Note 31 March 2016 IGAAP Effects of Ind-AS transition Revenue from operations - 2WKHULQFRPH LLLLLL Total income 32,511.78 34.15 32,545.93 Expenses &RVWRIPDWHULDOVFRQVXPHG - &KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVDQGZRUNLQSURJUHVV - (PSOR\HHEHQHÀWVH[SHQVH YLLYLLL Finance costs LLY 'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH - ([FLVHGXW\ - 2WKHUH[SHQVHV LLLY Total expenses 28,754.13 24.31 28,778.44 3URÀWEHIRUHH[FHSWLRQDOLWHPVDQGWD[ 3,757.65 9.84 3,767.49 ([FHSWLRQDOLWHPV 5HIHUQRWH - 3URÀWEHIRUHVKDUHRIHTXLW\DFFRXQWHGLQYHVWHHVDQGWD[ 3,644.67 9.84 3,654.51 6KDUHRISURÀW ORVV RIHTXLW\DFFRXQWHGLQYHVWHHV QHWRIWD[ - - - 3URÀWEHIRUHWD[ 3,644.67 9.84 3,654.51 Tax expense &XUUHQWWD[ - MAT credit entitlement - 'HIHUUHGWD[ EHQHÀW FKDUJH iv Total tax expense 829.67 15.81 845.48 3URÀWIRUWKH\HDU 2,815.00 (5.97) 2,809.03 Other comprehensive income ,WHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀWRUORVV 5HPHDVXUHPHQWVRIGHÀQHGEHQHÀWSODQV viii - ,QFRPHWD[RQLWHPVWKDWZLOOQRWEHUHFODVVLÀHGWRSURÀWRUORVV iv -

,WHPVWKDWZLOOEHUHFODVVLÀHGWRSURÀWRUORVV ([FKDQJH GLIIHUHQFHV LQ WUDQVODWLQJ WKH ÀQDQFLDO VWDWHPHQWV RI i foreign operations (IIHFWLYH SRUWLRQ RI JDLQV ORVVHV RQ KHGJLQJ LQVWUXPHQWV LQ FDVK ix - ÁRZKHGJHV ,QFRPHWD[RQLWHPVWKDWZLOOEHUHFODVVLÀHGWRSURÀWRUORVV iv - Total other comprehensive income 145.44 (22.12) 123.32 Total comprehensive income for the year 2,960.44 (28.09) 2,932.35

Annual Report 2016-17 211 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ Particulars Note 31 March 2016 IGAAP Effects of Ind-AS transition 3URÀWDWWULEXWDEOHWR 2ZQHUVRIWKHFRPSDQ\ 1RQFRQWUROOLQJLQWHUHVWV - - - 3URÀWIRUWKH\HDU 2,815.00 (5.97) 2,809.03 Other comprehensive income attributable to 2ZQHUVRIWKHFRPSDQ\ 1RQFRQWUROOLQJLQWHUHVWV - - - Other comprehensive income for the year 145.44 (22.12) 123.32 Total comprehensive income attributable to 2ZQHUVRIWKHFRPSDQ\ 1RQFRQWUROOLQJLQWHUHVWV - - -

Total comprehensive income for the year 2,960.44 (28.09) 2,932.35

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Annual Report 2016-17 212 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV Total PLOOLRQ ` 2IÀFH $PRXQWLQ Equipments

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Building ------Land 5.76 25.81 23.34 215.24 23.57 2.84 2.41 55.14 354.11 5.76 25.81 23.34 215.24 23.57 2.84 2.41 55.14 354.11 12.32 51.62 57.62 500.48 45.45 4.42 9.02 104.60 785.53 342.21 470.01 27.61 422.39 91.82 7.22 6.04 232.07 1,599.37 449.52 474.43 203.14 717.61 142.26 7.26 6.05 287.39 2,287.66 443.76 448.62 437.20 422.45 179.80 502.37 228.39 118.69 604.25 137.82 4.42 2.32 3.64 10.48 232.25 1,933.55 230.86 2,073.77 342.21 470.01 443.76 448.62 449.52 27.61 474.43 179.80 422.39 502.37 91.82 203.14 118.69 717.61 7.22 4.42 142.26 6.04 3.64 7.26 232.07 232.25 1,599.37 6.05 1,933.55 287.39 2,287.66 449.52 474.07 286.01 1,104.73 183.27 6.74 19.50 335.46 2,859.30 (Leasehold) Foreign exchange translation exchange Foreign - 'LVSRVDOUHWLUHPHQWV derecognition Gross carryingGross amount as at 1 April 2015 Additions at 1 April 2016 Additions on account of Additions on account of business combinations Gross carryingGross amount as at 31 2016 March 'HSUHFLDWLRQ translation exchange Foreign - 'LVSRVDOUHWLUHPHQWV derecognition 'HSUHFLDWLRQ Foreign exchange translation exchange Foreign 'LVSRVDOUHWLUHPHQWV derecognition - Accumulated depreciation as Accumulated depreciation 2017 at 31 March Carrying amount as at 1 April 2016 Carrying amount as at 31 2017 March Accumulated depreciation as Accumulated depreciation 2016 at 31 March Carrying amount as at 1 April 2015 Carrying amount as at 31 2016 March carryingGross amount as at 1 April 2016 Additions on account of business combinations Additions - Foreign exchange translation exchange Foreign 'LVSRVDOUHWLUHPHQWV derecognition - Gross carryingGross amount as at 31 2017 March as Accumulated depreciation $ 3URSHUW\SODQWDQGHTXLSPHQW &KDQJHVLQWKHFDUU\LQJDPRXQWRISURSHUW\SODQWDQGHTXLSPHQW 1RWH 5HIHUQRWHIRUGHWDLOVRISURSHUW\SODQWDQGHTXLSPHQWSOHG

Annual Report 2016-17 213 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

% *RRGZLOO Changes in the carrying amount of goodwill Amount in ` million) 31 March 2017 31 March 2016 Carrying amount at the commencement of the year 3,846.99 5,162.20 $GMXVWPHQWXQGHUVFKHPHRIDPDOJDPDWLRQ 5HIHUQRWH - *RRGZLOORQVDOHRI.3,7PHGLQL7HFKQRORJLHV$* 5HIHUQRWH - *RRGZLOORQDFTXLVLWLRQRI0LFUR)X]]\,QGXVWULH(OHNWURQLF*PE+ 5HIHUQRWH - ,PSDLUPHQWORVV 5HIHUQRWH L EHORZ Foreign exchange translation Carrying amount at the end of the year 4,116.81 3,846.99

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& 2WKHULQWDQJLEOHDVVHWV Changes in the carrying amount of other intangible assets $PRXQWLQ`PLOOLRQ Internally Generated Other than Total Internally Generated Product Technical Software Development Knowhow Cost (Refer note (i)) Gross carrying amount as at 1 April 2015 211.68 9.51 312.83 534.02 Additions - Foreign exchange translation - 'LVSRVDOUHWLUHPHQWVGHUHFRJQLWLRQ - - Gross carrying amount as at 31 March 2016 251.22 9.51 580.53 841.26 Amortisation Foreign exchange translation - Accumulated amortisation as at 31 March 2016 78.66 3.80 237.59 320.05 Carrying amount as at 1 April 2015 211.68 9.51 312.83 534.02 Carrying amount as at 31 March 2016 172.56 5.71 342.94 521.21

Gross carrying amount as at 1 April 2016 251.22 9.51 580.53 841.26 Additions Foreign exchange translation -

Annual Report 2016-17 214 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ Internally Generated Other than Total Internally Generated Product Technical Software Development Knowhow Cost (Refer note (i)) 'LVSRVDOUHWLUHPHQWVGHUHFRJQLWLRQ - - Gross carrying amount as at 31 March 2017 330.26 9.51 874.14 1,213.91 Accumulated amortisation as at 1 April 2016 78.66 3.80 237.59 320.05 Amortisation Foreign exchange translation - 'LVSRVDOUHWLUHPHQWVGHUHFRJQLWLRQ - - Accumulated amortisation as at 31 March 2017 190.05 7.60 498.39 696.04 Carrying amount as at 1 April 2016 172.56 5.71 342.94 521.21 Carrying amount as at 31 March 2017 140.21 1.91 375.75 517.87

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Annual Report 2016-17 215 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Investments in equity accounted investees

/RDQV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) Loans and advances to related parties /RDQWR'LUHFWRU - Loans and advances to other than related parties Security deposits Loan to employees - 156.35 125.60 137.92

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'HIHUUHGWD[DVVHWV QHW $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Deferred tax assets -Provision for doubtful debts and advances -Provision for leave encashment -Provision for gratuity -Provision for depreciation 2WKHUV -MAT credit entitlement

Annual Report 2016-17 216 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Deferred tax liabilities ([FHVVRIGHSUHFLDWLRQDPRUWLVDWLRQRQÀ[HGDVVHWVXQGHULQFRPHWD[ ODZRYHUGHSUHFLDWLRQDPRUWLVDWLRQSURYLGHGLQDFFRXQWV )RUZDUGFRQWUDFWVGHVLJQDWHGDVFDVKÁRZKHGJHV 2WKHUV - Net deferred tax asset 963.16 954.92 819.98

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2WKHUQRQFXUUHQWDVVHWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) &DSLWDODGYDQFHV Advance rentals Prepaid expenses )ULQJHEHQHÀWWD[SDLGLQH[FHVVRISURYLVLRQ QHW %DODQFHLQ*URXS*UDWXLW\7UXVW$FFRXQW 104.25 108.82 37.39 ,QYHQWRULHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Valued at the lower of cost and net realisable value) 5DZPDWHULDOV 5HIHUQRWH L EHORZ :RUNLQSURJUHVV Finished goods Stores and spares 433.49 380.04 228.77 Note : L 'XULQJWKH\HDUHQGHG0DUFKWKH*URXSKDVZULWWHQGRZQLWVVORZPRYLQJLQYHQWRU\RI`PLOOLRQZLWK FRUUHVSRQGLQJHIIHFWRQFRVWRIPDWHULDOVFRQVXPHGLQWKH6WDWHPHQWRI3URÀWDQG/RVV 10 &XUUHQWLQYHVWPHQWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Investments in equity instruments of other entities measured at fair YDOXHWKURXJKSURÀWRUORVV XQTXRWHG ,QYHVWPHQWLQ6DQNDOS6HPLFRQGXFWRUV3ULYDWH/LPLWHG 5HIHUQRWH - - 3UHYLRXV

Annual Report 2016-17 217 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 XQLWV 3UHYLRXV\HDU1LOXQLWV 5HOLDQFH/LTXLG)XQG7UHDVXU\ - 3ODQ'DLO\'LYLGHQG2SWLRQ 1LOXQLWV 3UHYLRXV\HDU1LOXQLWV 6%,3UHPLHU/LTXLG)XQG5HJXODU - - 3ODQ'DLO\'LYLGHQG 1LO XQLWV 3UHYLRXV \HDU 1LO XQLWV .RWDN )ORDWHU 6KRUW 7HUP 'DLO\ - - 'LYLGHQG5HLQYHVWPHQW 1LO XQLWV 3UHYLRXV \HDU 1LO XQLWV '63 %ODFN5RFN /LTXLGLW\ )XQG - - ,QVWLWXWLRQDO3ODQ'DLO\GLYLGHQG XQLWV 3UHYLRXV\HDU1LOXQLWV ,&,&,3UXGHQWLDO/LTXLG - 5HJXODUSODQ'DLO\GLYLGHQG 2WKHUIXQG - 777.68 0.04 590.38 6LQFHGHQRPLQDWHGLQ` Million Note: L 7KHGHWDLOVRIDJJUHJDWHYDOXHRITXRWHGXQTXRWHGLQYHVWPHQWVDQGWKH*URXS·VH[SRVXUHWROLTXLGLW\ULVNDUHGLVFORVHGLQ QRWH

7UDGHUHFHLYDEOHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured) &RQVLGHUHGJRRG &RQVLGHUHGGRXEWIXO /HVV$OORZDQFHVIRUGRXEWIXOWUDGHUHFHLYDEOHV 7,843.39 6,860.87 6,978.71

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&DVKDQGEDQNEDODQFHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 &DVKDQGFDVKHTXLYDOHQWV &DVKRQKDQG &KHTXHVLQKDQG %DODQFHVZLWKEDQNV - In current accounts ,QGHSRVLWDFFRXQWV ZLWKRULJLQDOPDWXULW\RIPRQWKVRUOHVV 2WKHU EDQN EDODQFHV LQFOXGHV XQFODLPHG GLYLGHQG RI ` PLOOLRQ 3UHYLRXV\HDU`PLOOLRQ 3,901.81 3,953.27 3,637.54

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Annual Report 2016-17 218 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

/RDQV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) Loans and advances to related parties - Loan to director - Loans and advances to other than related parties Other loans and advances - Loan to employees - - Security deposits 2WKHUUHFHLYDEOHV - 93.88 119.50 57.41

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2WKHUFXUUHQWÀQDQFLDODVVHWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) ,QWHUHVWDFFUXHGRQÀ[HGGHSRVLWV )RUZDUGFRQWUDFWVGHVLJQDWHGDVFDVKÁRZKHGJHV 5HIHU1RWH 2WKHUUHFHLYDEOHV - 136.48 60.42 88.81

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$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 (Unsecured, considered good unless otherwise stated) Advance to suppliers (PSOR\HHDGYDQFHV &RQVLGHUHGJRRG &RQVLGHUHGGRXEWIXO /HVV3URYLVLRQIRUGRXEWIXODGYDQFHV %DODQFHVZLWKVWDWXWRU\DXWKRULWLHV Advance rentals Prepaid expenses 502.88 561.43 599.81

Annual Report 2016-17 219 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

16 6KDUHFDSLWDO $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Authorised: 3UHYLRXV\HDU HTXLW\VKDUHVRI`HDFK 1,250.00 1,250.00 1,250.00 Issued subscribed and fully paid up: 3UHYLRXV\HDU HTXLW\VKDUHVRI` 2 each fully paid up 376.39 375.65 376.13

16.17KH&RPSDQ\GHFODUHVDQGSD\VGLYLGHQGVLQ,QGLDQUXSHHV7KHGLYLGHQGSURSRVHGWREHGLVWULEXWHGWRHTXLW\VKDUHKROGHUV IRUWKH\HDUHQGHG0DUFKLV`PLOOLRQLH`SHUVKDUH 3UHYLRXV\HDU`PLOOLRQLH`SHUVKDUH 7KHGLYLGHQGSURSRVHGE\WKH%RDUGRI'LUHFWRUVLVVXEMHFWWRWKHDSSURYDORIWKHVKDUHKROGHUVLQWKHHQVXLQJ$QQXDO*HQHUDO 0HHWLQJ 'LYLGHQGVGXULQJWKH\HDUHQGHG0DUFKLQFOXGH`SHUVKDUHWRZDUGVÀQDOGLYLGHQGIRUWKH\HDUHQGHG0DUFK 'LYLGHQGVGXULQJWKH\HDUHQGHG0DUFKLQFOXGH`SHUVKDUHWRZDUGVLQWHULPGLYLGHQGIRUWKH\HDUHQGHG 0DUFKDQG`SHUVKDUHWRZDUGVÀQDOGLYLGHQGIRUWKH\HDUHQGHG0DUFK 16.2,QWKHHYHQWRIOLTXLGDWLRQRIWKH&RPSDQ\WKHKROGHUVRIHTXLW\VKDUHVZLOOEHHQWLWOHGWRUHFHLYHDVKDUHLQWKHUHPDLQLQJDVVHWV RIWKH&RPSDQ\DIWHUGLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWV7KHGLVWULEXWLRQZLOOEHLQSURSRUWLRQWRWKHQXPEHURIHTXLW\ VKDUHVKHOGE\WKHVKDUHKROGHUV 16.3 Reconciliation of the number of equity shares outstanding at the beginning and at the end of the year: Particulars As at 31 March 2017 As at 31 March 2016 Number of (` million) Number of (` million) shares shares Equity shares At the beginning of the year $GG 6KDUHV LVVXHG RQ H[HUFLVH RI HPSOR\HH VWRFN options /HVV ,QFUHDVH LQ VKDUHV KHOG E\ .3,7 7HFKQRORJLHV - - /LPLWHG(PSOR\HH:HOIDUH7UXVW 2XWVWDQGLQJDWWKHHQGRIWKH\HDU 188,193,398 376.39 16.47KH&RPSDQ\KDVRQO\RQHFODVVRIVKDUHVUHIHUUHGWRDVHTXLW\VKDUHVKDYLQJDSDUYDOXHRI`(DFKVKDUHKROGHURIHTXLW\ VKDUHVLVHQWLWOHGWRRQHYRWHSHUVKDUH 16.51XPEHURIHTXLW\VKDUHVKHOGE\HDFKVKDUHKROGHUKROGLQJPRUHWKDQVKDUHVLQWKH&RPSDQ\DUHDVIROORZV Name of the shareholders Number of % of shares Number of % of shares shares as at held shares as at held 31 March 2017 31 March 2016 3URÀFLHQW)LQVWRFN//3 Warhol Limited 16.6$JJUHJDWHQXPEHURIHTXLW\VKDUHVDOORWWHGDVIXOO\SDLGXSE\ZD\RIERQXVVKDUHVIRUWKHSHULRGRIÀYH\HDUVLPPHGLDWHO\ SUHFHGLQJWKH%DODQFH6KHHWGDWH 3UHYLRXV\HDU 16.7 Capital Management 7KH&RPSDQ\·VREMHFWLYHLVWRVDIHJXDUGLWVDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQDQGWRPDLQWDLQLQYHVWRUFUHGLWRUDQGPDUNHW FRQÀGHQFHDQGWRPD[LPL]HVKDUHKROGHUYDOXH,QRUGHUWRIXOÀOLWVREMHFWLYHWKHPDQDJHPHQWRIWKH&RPSDQ\PRQLWRUVWKH UHWXUQRQFDSLWDODVZHOODVWKHOHYHORIGLYLGHQGVWRRUGLQDU\VKDUHKROGHUV

Annual Report 2016-17 220 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Term loans )URPEDQNV 6HFXUHG ([WHUQDO&RPPHUFLDO%RUURZLQJ (&% 5HIHUQRWH L LL EHORZ 2WKHUORDQ 5HIHUQRWH LLL EHORZ )URPRWKHUWKDQEDQNV 5HIHUQRWH LY Y EHORZ - )URPEDQNV 8QVHFXUHG - - /RQJWHUPPDWXULWLHVRIÀQDQFHOHDVHREOLJDWLRQV 6HFXUHG 6HFXUHGDJDLQVWÀ[HGDVVHWVREWDLQHGXQGHUÀQDQFHOHDVHDUUDQJHPHQWV 5HIHUQRWH 985.38 1,657.36 776.11 Notes: L 7KH(&%ORDQFRQVLVWVRIORDQVHFXUHGE\SDULSDVVXFKDUJHRYHUWKH&RPSDQ\·V/DQGDQG%XLOGLQJORFDWHGDW3ORW1R 0,'&DUHDRI5DMLY*DQGKL,QIRWHFK3DUN3KDVH,+LQMDZDGLH[FOXGLQJFKDUJHRYHU5 '&HQWUHGHYHORSHGLQWKH SUHPLVHV7KHWHUPORDQFDUULHVLQWHUHVWUDWHRIPRQWKV/,%25EDVLVSRLQWV7KH(&%ORDQLVUHSD\DEOHLQHLJKWHTXDO VHPLDQQXDOLQVWDOOPHQWVRI86'PLOOLRQHDFKXSWR1RYHPEHU7KHSULQFLSDODPRXQWRIORDQRXWVWDQGLQJDVDWWKH %DODQFH6KHHWGDWHLV86'PLOOLRQ LL 7KH(&%ORDQFRQVLVWRIORDQVHFXUHGE\SDULSDVVXFKDUJHRYHUWKH&RPSDQ\·V/DQGDQG%XLOGLQJORFDWHGDW3ORW1R 5DMLY*DQGKL,QIRWHFK3DUN3KDVH,,,+LQMDZDGL7KHWHUPORDQFDUULHVLQWHUHVWUDWHRIPRQWKV/,%25EDVLVSRLQWV 7KH(&%ORDQLVUHSD\DEOHLQHLJKWHTXDOVHPLDQQXDOLQVWDOOPHQWVRI86'PLOOLRQHDFKZLWKDPRUDWRULXPRI\HDU XSWR0DUFK7KHSULQFLSDODPRXQWRIORDQRXWVWDQGLQJDVDWWKH%DODQFH6KHHWGDWHLV86'PLOOLRQ LLL 2WKHUWHUPORDQVIURPEDQNDUHVHFXUHGDJDLQVWÀ[HGDVVHWVREWDLQHGXQGHUWKHORDQDUUDQJHPHQW7KHORDQFDUULHVLQWHUHVW XSWRSDDQGLVUHSD\DEOHLQHTXDWHGPRQWKO\LQVWDOOPHQWVRI`PLOOLRQHDFKXSWR2FWREHU LY 7HUPORDQIURPRWKHUWKDQEDQNVFRQVLVWRIORDQVHFXUHGE\ZD\RIÀUVWDQGH[FOXVLYHFKDUJHRQÀ[HGDVVHWVDFTXLUHGXQGHU WKHORDQDUUDQJHPHQW7KHORDQLVUHSD\DEOHLQWZRHTXDOLQVWDOOPHQWVRI`PLOOLRQHDFKXSWR0D\ Y 7HUPORDQIURPRWKHUWKDQEDQNVFRQVLVWRIXQVHFXUHGORDQFDUU\LQJLQWHUHVWUDWHRI7KHUHSD\PHQWRIORDQZLOOVWDUW IURP2FWREHUXSWR2FWREHU YL ,QIRUPDWLRQDERXWWKH*URXS·VH[SRVXUHWRLQWHUHVWUDWHULVNIRUHLJQFXUUHQF\ULVNDQGOLTXLGLW\ULVNLVGLVFORVHGLQQRWH 2WKHUQRQFXUUHQWÀQDQFLDOOLDELOLWLHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 2WKHUWKDQWUDGHSD\DEOHV Purchase consideration payable ,QWHJUDWHG,QGXVWULDO,QIRUPDWLRQ,QF 5HIHUQRWH - - .3,7PHGLQL7HFKQRORJLHV$* 5HIHUQRWH - - .3,76ROXWLRQV*PE+*HUPDQ\ - 0LFUR)X]]\,QGXVWULH(OHNWURQLF*PE+ 5HIHUQRWH - - 131.67 70.73 263.69

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/RQJWHUPSURYLVLRQV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 3URYLVLRQIRUHPSOR\HHEHQHÀWV &RPSHQVDWHG$EVHQFHV *UDWXLW\ 5HIHUQRWH 2WKHUSURYLVLRQV 3URYLVLRQIRUZDUUDQW\ 5HIHUQRWH - 579.25 515.55 423.31

'HIHUUHGWD[OLDELOLWLHV QHW $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 ([FHVVRIGHSUHFLDWLRQDPRUWLVDWLRQRQÀ[HGDVVHWVXQGHULQFRPHWD[ ODZRYHUGHSUHFLDWLRQDPRUWLVDWLRQSURYLGHGLQDFFRXQWV Net deferred tax liabilities 0.11 0.18 4.82

6KRUWWHUPERUURZLQJV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Loans repayable on demand )URPEDQNV :RUNLQJFDSLWDOORDQVIURPEDQNV VHFXUHG 5HIHUQRWH L EHORZ :RUNLQJFDSLWDOORDQIURPEDQN XQVHFXUHG 5HIHUQRWH LL EHORZ - - )URPRWKHUWKDQEDQNV VHFXUHG 5HIHUQRWH LLL EHORZ - - 2,216.91 498.09 3,677.16 Note: L 7KHDERYHORDQLVVHFXUHGE\ZD\RIÀUVWFKDUJHE\ZD\RIK\SRWKHFDWLRQRI&RPSDQ\·VHQWLUHERRNGHEWVERWKSUHVHQW DQGIXWXUHRQSDULSDVVXEDVLVFDUU\LQJDQDYHUDJHLQWHUHVWUDWHXSWRPRQWKV/,%25SOXVSD LL 7KHORDQFDUULHGLQWHUHVWUDWHXSWRPRQWKV/,%25SOXVSD7KHORDQZDVUHSDLGGXULQJWKHSUHYLRXV\HDU LLL 7KHORDQIURPRWKHUWKDQEDQNVLVVHFXUHGE\ZD\RIÀUVWDQGH[FOXVLYHFKDUJHRQÀ[HGDVVHWVDFTXLUHGXQGHUWKHORDQ DUUDQJHPHQW7KHORDQLVUHSD\DEOHLQIRXUHTXDOLQVWDOOPHQWVRI`PLOOLRQHDFKXSWR0D\ LY ,QIRUPDWLRQDERXWWKH*URXS·VH[SRVXUHWRLQWHUHVWUDWHULVNIRUHLJQFXUUHQF\ULVNDQGOLTXLGLW\ULVNLVGLVFORVHGLQQRWH

7UDGHSD\DEOHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Trade payables 7RWDORXWVWDQGLQJGXHVRIPLFURHQWHUSULVHVDQGVPDOOHQWHUSULVHV 5HIHU QRWH Total outstanding dues of creditors other than micro enterprises and small enterprises 1,311.06 1,183.94 1,294.66 Note: L ,QIRUPDWLRQDERXWWKH*URXS·VH[SRVXUHWRLQWHUHVWUDWHULVNIRUHLJQFXUUHQF\ULVNDQGOLTXLGLW\ULVNLVGLVFORVHGLQQRWH

Annual Report 2016-17 222 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

2WKHUFXUUHQWÀQDQFLDOOLDELOLWLHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 &XUUHQWPDWXULWLHVRIORQJWHUPGHEW IURPEDQNV VHFXUHG 5HIHUQRWH7HUPORDQIURPEDQNVIRUGHWDLOVRIVHFXULW\DQG UHSD\PHQWWHUPV - from others 5HIHUQRWH7HUPORDQIURPRWKHUWKDQEDQNVIRUGHWDLOVRIVHFXULW\ DQGUHSD\PHQWWHUPV IURPEDQNV XQVHFXUHG - - 5HIHUQRWH7HUPORDQIURPEDQNVIRUUHSD\PHQWWHUPV &XUUHQWPDWXULWLHVRIÀQDQFHOHDVHREOLJDWLRQV 5HIHUQRWH 2WKHUWKDQWUDGHSD\DEOHV Purchase consideration payable ,QWHJUDWHG,QGXVWULDO,QIRUPDWLRQ,QF 5HIHUQRWH - - .3,7PHGLQL7HFKQRORJLHV$* 5HIHUQRWH - .3,76ROXWLRQV*PE+*HUPDQ\ 0LFUR)X]]\,QGXVWULH(OHNWURQLF*PE+ 5HIHUQRWH - - Accrued employee costs Interest accrued and due Interest accrued and not due Unclaimed dividend 3D\DEOHVLQUHVSHFWRIÀ[HGDVVHWV Security deposits - - Interim dividend payable - - 2,175.65 2,201.91 2,104.57

Note: L ,QIRUPDWLRQDERXWWKH*URXS·VH[SRVXUHWRLQWHUHVWUDWHULVNIRUHLJQFXUUHQF\ULVNDQGOLTXLGLW\ULVNLVGLVFORVHGLQQRWH

2WKHUFXUUHQWOLDELOLWLHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 Unearned revenue Advances from customers Statutory remittances Tax on interim dividend payable - - 2WKHUV - 1,054.58 1,062.84 988.01

Annual Report 2016-17 223 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

6KRUWWHUPSURYLVLRQV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 01 April 2015 3URYLVLRQIRUHPSOR\HHEHQHÀWV &RPSHQVDWHG$EVHQFHV *UDWXLW\ 5HIHUQRWH Provision for tax )ULQJHEHQHÀWWD[SD\DEOH 2WKHUSURYLVLRQV 6HUYLFH WD[ SD\DEOH QHW RI WD[ SDLG XQGHU SURWHVW 5HIHU QRWH L E 3URYLVLRQIRUZDUUDQW\ 5HIHUQRWH 316.78 235.08 192.19

5HYHQXHIURPRSHUDWLRQV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 Software services Sale of products Finished goods 33,233.61 32,264.08

2WKHULQFRPH $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 ,QWHUHVWLQFRPH 5HIHUQRWH L EHORZ 'LYLGHQGLQFRPHIURPFXUUHQWLQYHVWPHQWV )RUHLJQH[FKDQJHJDLQ QHW 5HIHUQRWH LL EHORZ 2WKHU QRQ RSHUDWLQJ LQFRPH QHW RI H[SHQVHV GLUHFWO\ DWWULEXWDEOH WR VXFK LQFRPH LQFOXGLQJPLVFHOODQHRXVLQFRPH 206.60 281.85

Note: L ,QWHUHVWLQFRPHLQFOXGHVDPRXQWRI`PLOOLRQ 3UHYLRXV\HDU`PLOOLRQ DVLQWHUHVWRQÀQDQFLDODVVHWVFDUULHGDW DPRUWLVHGFRVW

LL ,QFOXGHVJDLQV ORVVHV QHW RQIRUZDUGFRQWUDFWVGHVLJQDWHGDVFDVKÁRZKHGJHVWUDQVIHUUHGIURPFDVKÁRZKHGJLQJ reserve ` PLOOLRQ 3UHYLRXV\HDU` PLOOLRQ 5HIHUQRWH

&RVWRIPDWHULDOVFRQVXPHG $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 Inventory of materials at the beginning of the year Purchases Inventory of materials at the end of the year 360.13 172.27

Annual Report 2016-17 224 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

&KDQJHVLQLQYHQWRULHVRIÀQLVKHGJRRGVDQGZRUNLQSURJUHVV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 Finished goods Inventories at the beginning of the year Inventories at the end of the year Work-in-progress Inventories at the beginning of the year Inventories at the end of the year (104.02) (38.10)

)LQDQFHFRVWV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 ,QWHUHVWH[SHQVH 5HIHUQRWH L EHORZ 1HWORVVRQIRUHLJQFXUUHQF\WUDQVDFWLRQVDQGWUDQVODWLRQV FRQVLGHUHGDVÀQDQFHFRVWV - 135.98 165.41

Note: L ,QFOXGHVDPRXQWRI` PLOOLRQ 3UHYLRXV\HDU`PLOOLRQ SHUWDLQLQJWRÀQDQFHOHDVHREOLJDWLRQV

2WKHUH[SHQVHV $PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 7UDYHODQGRYHUVHDVH[SHQVHV QHW 7UDQVSRUWDQGFRQYH\DQFH QHW &RVWRIVHUYLFHGHOLYHU\ QHW &RVWRISURIHVVLRQDOVXEFRQWUDFWLQJ QHW Recruitment and training expenses Power and fuel 5HQW 5HIHUQRWH Repairs and maintenance - - buildings SODQW HTXLSPHQW - others Insurance 5DWHV WD[HV

Annual Report 2016-17 225 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

$PRXQWLQ`PLOOLRQ 31 March 2017 31 March 2016 &RPPXQLFDWLRQH[SHQVHV QHW Legal and professional fees 0DUNHWLQJH[SHQVHV /RVVRQVDOHRIÀ[HGDVVHWV QHW 3ULQWLQJ VWDWLRQHU\ $XGLWRUVUHPXQHUDWLRQ QHWRIVHUYLFHWD[ - Audit fees /LPLWHGUHYLHZRITXDUWHUO\UHVXOWV - Fees for other services 2XWRISRFNHWH[SHQVHVUHLPEXUVHG %DGGHEWVZULWWHQRII 3URYLVLRQIRUGRXEWIXOGHEWVXQELOOHGUHYHQXHDQGDGYDQFHV QHW &RQWULEXWLRQVWRZDUGVFRUSRUDWHVRFLDOUHVSRQVLELOLW\ 5HIHUQRWH 0LVFHOODQHRXVH[SHQVHV QHW 8,552.77 8,431.45

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)LQDQFLDO,QVWUXPHQWVE\FDWHJRU\ 7KHFDUU\LQJYDOXHDQGIDLUYDOXHRIÀQDQFLDOLQVWUXPHQWVE\FDWHJRULHVDVRQ0DUFKDUHDVIROORZV $PRXQWLQ`PLOOLRQ Particulars Amortised Financial assets/ Financial assets/ Total Total fair cost liabilities at fair value liabilities at fair value carrying value WKURXJKSURÀWRUORVV through OCI value (FVTPL) Designated Mandatory Designated Mandatory upon initial upon initial recognition recognition Financial assets Investments - - - Trade receivables - - - - &DVKDQGFDVKHTXLYDOHQWV - - - - 2WKHUEDODQFHVZLWKEDQNV - - - - Loans - - - - Unbilled revenue - - - 2WKHUÀQDQFLDODVVHWV - - 7RWDOÀQDQFLDODVVHWV 13,016.53 44.24 777.68 - 113.03 13,951.48 13,951.48 Financial liabilities %RUURZLQJV - - - - Trade payables - - - - 2WKHUÀQDQFLDOOLDELOLWLHV - - - 7RWDOÀQDQFLDOOLDELOLWLHV 6,753.46 - 67.21 - - 6,820.67 6,794.12

Annual Report 2016-17 226 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

7KHFDUU\LQJYDOXHDQGIDLUYDOXHRIÀQDQFLDOLQVWUXPHQWVE\FDWHJRULHVDVRQ0DUFKZHUHDVIROORZV $PRXQWLQ`PLOOLRQ Particulars Amortised Financial assets/ Financial assets/ Total Total fair cost liabilities at fair value liabilities at fair value carrying value WKURXJKSURÀWRUORVV through OCI value (FVTPL) Designated Mandatory Designated Mandatory upon initial upon initial recognition recognition Financial assets Investments - - - - Trade receivables - - - - &DVKDQGFDVKHTXLYDOHQWV - - - - 2WKHUEDODQFHVZLWKEDQNV - - - - Loans - - - - Unbilled revenue - - - - 2WKHUÀQDQFLDODVVHWV - - - 7RWDOÀQDQFLDODVVHWV 11,949.29 - 117.59 - 51.59 12,118.47 12,118.47 Financial liabilities %RUURZLQJV - - - - Trade payables - - - - 2WKHUÀQDQFLDOOLDELOLWLHV - -- 7RWDOÀQDQFLDOOLDELOLWLHV 5,449.15 - 162.88 - - 5,612.03 5,590.83

7KHFDUU\LQJYDOXHDQGIDLUYDOXHRIÀQDQFLDOLQVWUXPHQWVE\FDWHJRULHVDVRQ$SULOZHUHDVIROORZV $PRXQWLQ`PLOOLRQ Particulars Amortised Financial assets/ Financial assets/ Total Total fair cost liabilities at fair value liabilities at fair value carrying value WKURXJKSURÀWRUORVV through OCI value (FVTPL) Designated Mandatory Designated Mandatory upon initial upon initial recognition recognition Financial assets Investments - - - - Trade receivables - - - - &DVKDQGFDVKHTXLYDOHQWV - - - - 2WKHUEDODQFHVZLWKEDQNV - - - - Loans - - - - Unbilled revenue - - - - 2WKHUÀQDQFLDODVVHWV --- 7RWDOÀQDQFLDODVVHWV 11,927.95 - 815.10 - 55.26 12,798.31 12,798.31 Financial liabilities %RUURZLQJV - - - - Trade payables - - - - 2WKHUÀQDQFLDOOLDELOLWLHV - -- 7RWDOÀQDQFLDOOLDELOLWLHV 7,705.78 - 410.41 - - 8,116.19 8,109.45

Annual Report 2016-17 227 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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)LQDQFLDODVVHWVDQGOLDELOLWLHVLQFOXGHFDVKDQGFDVKHTXLYDOHQWVRWKHUEDODQFHVZLWKEDQNVWUDGHUHFHLYDEOHVORDQVXQELOOHG UHYHQXHRWKHUÀQDQFLDODVVHWVWUDGHSD\DEOHVDQGRWKHUÀQDQFLDOOLDELOLWLHVZKRVHIDLUYDOXHVDSSUR[LPDWHWKHLUFDUU\LQJDPRXQWV ODUJHO\GXHWRWKHVKRUWWHUPQDWXUHRIVXFKDVVHWVDQGOLDELOLWLHV /HYHO4XRWHGSULFHV XQDGMXVWHG LQDFWLYHPDUNHWVIRULGHQWLFDODVVHWVRUOLDELOLWLHV /HYHO²,QSXWVRWKHUWKDQTXRWHGSULFHVLQFOXGHGZLWKLQ/HYHOWKDWDUHREVHUYDEOHIRUWKHDVVHWRUOLDELOLW\HLWKHUGLUHFWO\ LH DVSULFHV RULQGLUHFWO\ LHGHULYHGIURPSULFHV /HYHO,QSXWVIRUWKHDVVHWVRUOLDELOLWLHVWKDWDUHQRWEDVHGRQREVHUYDEOHPDUNHWGDWD XQREVHUYDEOHLQSXWV 7KHIROORZLQJWDEOHSUHVHQWVIDLUYDOXHKLHUDUFK\RIDVVHWVDQGOLDELOLWLHVPHDVXUHGDWIDLUYDOXHDVRQ0DUFK $PRXQWLQ`PLOOLRQ Particulars As at Fair value measurement 31 March 2017 Level 1 Level 2 Level 3 ,QYHVWPHQWLQ6DQNDOS6HPLFRQGXFWRUV3ULYDWH/LPLWHG - - Investment in Lithium Urban Technologies Private - - Limited ,QYHVWPHQWLQHTXLW\LQVWUXPHQWVRIRWKHUHQWLWLHV - - ,QYHVWPHQWVLQ0XWXDOIXQGV TXRWHG - - 'HULYDWLYHÀQDQFLDODVVHWV - - %RUURZLQJV - - Purchase consideration payable - -

7KHIROORZLQJWDEOHSUHVHQWVIDLUYDOXHKLHUDUFK\RIDVVHWVDQGOLDELOLWLHVPHDVXUHGDWIDLUYDOXHDVRQ0DUFK $PRXQWLQ`PLOOLRQ Particulars As at Fair value measurement 31 March 2016 Level 1 Level 2 Level 3 ,QYHVWPHQWLQ6DQNDOS6HPLFRQGXFWRUV3ULYDWH/LPLWHG - - ,QYHVWPHQWLQHTXLW\LQVWUXPHQWVRIRWKHUHQWLWLHV - - ,QYHVWPHQWVLQ0XWXDOIXQGV TXRWHG - - 'HULYDWLYHÀQDQFLDODVVHWV - - %RUURZLQJV - - Purchase consideration payable - -

7KHIROORZLQJWDEOHSUHVHQWVIDLUYDOXHKLHUDUFK\RIDVVHWVDQGOLDELOLWLHVPHDVXUHGDWIDLUYDOXHDVRQ$SULO $PRXQWLQ`PLOOLRQ Particulars As at Fair value measurement 01 April 2015 Level 1 Level 2 Level 3 ,QYHVWPHQWLQ6DQNDOS6HPLFRQGXFWRUV3ULYDWH/LPLWHG - - ,QYHVWPHQWVLQ*$,$6\VWHP6ROXWLRQV,QF - - ,QYHVWPHQWLQHTXLW\LQVWUXPHQWVRIRWKHUHQWLWLHV - - ,QYHVWPHQWVLQ0XWXDOIXQGV TXRWHG - - 'HULYDWLYHÀQDQFLDODVVHWV - - %RUURZLQJV - - Purchase consideration payable - - 6LQFHGHQRPLQDWHGLQ`PLOOLRQ

Annual Report 2016-17 228 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

Reconciliation of fair value measurement: $PRXQWLQ`PLOOLRQ Particulars 31 March 2017 31 March 2016 i) 8QTXRWHGLQYHVWPHQWLQHTXLW\LQVWUXPHQWVFODVVLÀHGDV)973/ /HYHO 2SHQLQJEDODQFH Impairment loss - Additions during the year - Closing during the year 127.90 117.55 ii) 3XUFKDVHFRQVLGHUDWLRQSD\DEOHFODVVLÀHGDV)973/ /HYHO 2SHQLQJEDODQFH )DLUYDOXHFKDQJHVUHFRJQLVHGLQWKH6WDWHPHQWRI3URÀWDQG/RVV )LQDQFHFRVWVUHFRJQLVHGLQWKH6WDWHPHQWRI3URÀWDQG/RVV Paid during the year Closing during the year 67.21 162.88

9DOXDWLRQWHFKQLTXHDQGVLJQLÀFDQWXQREVHUYDEOHLQSXWV Level 2: L 'HULYDWLYHÀQDQFLDODVVHWVDUHYDOXHGEDVHGRQLQSXWVWKDWDUHGLUHFWO\RULQGLUHFWO\REVHUYDEOHLQWKHPDUNHW LL %RUURZLQJVDUHYDOXHGXVLQJWKHGLVFRXQWHGFDVKÁRZPHWKRGWKHH[SHFWHGQHWFDVKÁRZVDUHGLVFRXQWHGXVLQJWKHFRVW RIERUURZLQJWKDWDUHGLUHFWO\RULQGLUHFWO\REVHUYDEOHLQWKHPDUNHW

Level 3: Valuation techniques 6LJQLÀFDQWXQREVHUYDEOHLQSXWV )RUYDOXDWLRQRILQYHVWPHQWLQHTXLW\LQVWUXPHQWVGLVFRXQWHG %XGJHWHGUHYHQXHJURZWKUDWH FDVK ÁRZ PHWKRG LV XVHG WR FDSWXUH WKH SUHVHQW YDOXH RI H[SHFWHG IXWXUH HFRQRPLF EHQHÀWV 8QGHU WKH GLVFRXQWHG :HLJKWHGDYHUDJHFRVWRIFDSLWDO FDVK ÁRZ PHWKRG WKH QHW FDVK ÁRZV H[SHFWHG WR EH generated are discounted using the weighted average cost RIFDSLWDO The valuation of contingent consideration considers the 5LVNDGMXVWHGGLVFRXQWUDWHIRUUHVSHFWLYHHFRQRPLHV SUHVHQWYDOXHRIH[SHFWHGSD\PHQWGLVFRXQWHGXVLQJDULVN DGMXVWHGGLVFRXQWUDWH7KHH[SHFWHGSD\PHQWLVGHWHUPLQHG 3UREDELOLW\DVVLJQHGWRHDFKVFHQDULRRISURÀWEHIRUHWD[ E\FRQVLGHULQJWKHSRVVLEOHVFHQDULRVRISURÀWEHIRUHWD[WKH amount to be paid under each scenario and the probability RIHDFKVFHQDULR 6LJQLÀFDQWLQFUHDVHLQGLVFRXQWUDWHVDQGVSUHDGVDERYHULVNIUHHUDWHLQLVRODWLRQZRXOGUHVXOWLQORZHUIDLUYDOXHV$VLJQLÀFDQW LQFUHDVHLQYRODWLOLW\LQUHYHQXHJURZWKUDWHVZLOOUHVXOWLQKLJKHUIDLUYDOXH )LQDQFLDOULVNPDQDJHPHQW 7KHERDUGRIGLUHFWRUVKDVRYHUDOOUHVSRQVLELOLW\IRUWKHHVWDEOLVKPHQWDQGRYHUVLJKWRIWKH*URXS·VULVNPDQDJHPHQWIUDPHZRUN 7KHERDUGRIGLUHFWRUVKDVHVWDEOLVKHGWKH5LVN0DQDJHPHQW&RPPLWWHHVZKLFKLVUHVSRQVLEOHIRUGHYHORSLQJDQGPRQLWRULQJ WKH*URXS·VULVNPDQDJHPHQWSROLFLHV7KH*URXSKDVH[SRVXUHWRWKHIROORZLQJULVNVDULVLQJIURPÀQDQFLDOLQVWUXPHQWV a. Credit risk &UHGLWULVNLVWKHULVNRIÀQDQFLDOORVVHVWRWKH*URXSLIDFXVWRPHURUFRXQWHUSDUW\WRÀQDQFLDOLQVWUXPHQWVIDLOVWRGLVFKDUJH LWV FRQWUDFWXDO REOLJDWLRQV DQG DULVHV SULPDULO\ IURP WKH *URXS·V UHFHLYDEOHV IURP FXVWRPHUV DPRXQWLQJ WR ` PLOOLRQ`PLOOLRQDQG`PLOOLRQDQGXQELOOHGUHYHQXHDPRXQWLQJWR`PLOOLRQ`PLOOLRQDQG `PLOOLRQDVRQ0DUFK0DUFKDQG$SULOUHVSHFWLYHO\7RPDQDJHWKLVWKH*URXSSHULRGLFDOO\ DVVHVVHVWKHNH\DFFRXQWVUHFHLYDEOHEDODQFHV$VSHU,QG$6)LQDQFLDO,QVWUXPHQWVWKH*URXSXVHVH[SHFWHGFUHGLW ORVVPRGHOWRDVVHVVWKHLPSDLUPHQWORVVRUJDLQ

Annual Report 2016-17 229 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

i. Trade receivables 7KHPDQDJHPHQWKDVHVWDEOLVKHGDFFRXQWVUHFHLYDEOHSROLF\XQGHUZKLFKFXVWRPHUDFFRXQWVDUHUHJXODUO\PRQLWRUHG 7KH*URXSKDVDGHGLFDWHGVDOHVWHDPDWHDFKJHRJUDSK\ZKLFKLVUHVSRQVLEOHIRUFROOHFWLQJGXHVIURPWKHFXVWRPHU ZLWKLQVWLSXODWHGSHULRG7KHPDQDJHPHQWUHYLHZVVWDWXVRIFULWLFDODFFRXQWVRQDUHJXODUEDVLV)RUWKHGHWDLOVRIWKH *URXS·VH[SRVXUHWRFUHGLWULVNE\JHRJUDSKLFUHJLRQDQGUHYHQXHJHQDUDWHGIURPWRSFXVWRPHUUHIHUQRWH$ ii. Impairment Movement in the allowance for impairment in respect of trade and other receivables Particulars (Amount in ` million) Balance as on April 1, 2015 867.54 Impairment during the year Reversal of impairment on account of collection Utilisation of allowance Foreign exchange translation Balance as on March 31, 2016 1,087.45 Impairment during the year Reversal of impairment on account of collection Utilisation of allowance Foreign exchange translation Balance as on March 31, 2017 758.89

Trade receivables that were not impaired $PRXQWLQ`PLOOLRQ Particulars Carrying amount 31 March 2017 31 March 2016 01 April 2015 1HLWKHUSDVWGXHQRULPSDLUHG 3DVWGXHGD\V 3DVWGXHGD\V 3DVWGXHGD\V 0RUHWKDQGD\V

8QELOOHGUHYHQXHLVQRWRXWVWDQGLQJIRUPRUHWKDQGD\V iii. Cash and bank balances 7KH*URXSKHOGFDVKDQGEDQNEDODQFHVRI`PLOOLRQ`PLOOLRQDQG`PLOOLRQDVRQ 0DUFK0DUFKDQG$SULOUHVSHFWLYHO\7KHFDVKDQGEDQNEDODQFHVDUHKHOGZLWKEDQNV ZKLFKKDYHKLJKFUHGLWUDWLQJVDVVLJQHGE\LQWHUQDWLRQDOFUHGLWUDWLQJDJHQFLHV iv. Guarantees 7KH*URXS·VSROLF\LVWRSURYLGHÀQDQFLDOJXDUDQWHHVRQO\RQEHKDOIRIVXEVLGLDULHV7KH*URXSKDVLVVXHGWKH JXDUDQWHHVWRFHUWDLQEDQNVLQUHVSHFWRIFUHGLWIDFLOLWLHVJUDQWHGWRLWVVXEVLGLDULHV b. Liquidity risk /LTXLGLW\ULVNLVWKHULVNWKDWWKH*URXSZLOOHQFRXQWHUGLIÀFXOW\LQPHHWLQJWKHREOLJDWLRQVDVVRFLDWHGZLWKLWVÀQDQFLDO OLDELOLWLHVWKDWDUHVHWWOHGE\GHOLYHULQJFDVKRUDQRWKHUÀQDQFLDODVVHW7KH*URXS·VDSSURDFKWRPDQDJLQJOLTXLGLW\LVWR HQVXUHDVIDUDVSRVVLEOHWKDWLWZLOOKDYHVXIÀFLHQWOLTXLGLW\WRPHHWLWVOLDELOLWLHVZKHQWKH\DUHGXHXQGHUERWKQRUPDO DQGVWUHVVHGFRQGLWLRQVZLWKRXWLQFXUULQJXQDFFHSWDEOHORVVHVRUULVNLQJGDPDJHWRWKH*URXS·VUHSXWDWLRQ 7KH *URXS KDV D YLHZ RI PDLQWDLQLQJ OLTXLGLW\ DQG WR WDNH PLQLPXP SRVVLEOH ULVN ZKLOH PDNLQJ LQYHVWPHQWV ,Q RUGHU WRPDLQWDLQOLTXLGLW\WKH*URXSLQYHVWVLWVH[FHVVIXQGVLQVKRUWWHUPOLTXLGDVVHWVOLNHOLTXLGPXWXDOIXQGV7KH*URXS PRQLWRUVLWVFDVKDQGEDQNEDODQFHVSHULRGLFDOO\LQYLHZRILWVVKRUWWHUPREOLJDWLRQVDVVRFLDWHGZLWKLWVÀQDQFLDOOLDELOLWLHV

Annual Report 2016-17 230 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

7KHOLTXLGLW\SRVLWLRQDWHDFKUHSRUWLQJGDWHLVJLYHQEHORZ $PRXQWLQ`PLOOLRQ Particulars 31 March 2017 31 March 2016 01 April 2015 &DVKDQGFDVKHTXLYDOHQWV 2WKHUEDODQFHVZLWKEDQNV ,QYHVWPHQWVLQ0XWXDOIXQGV TXRWHG QRQWUDGH )L[HGGHSRVLWVZLWKEDQNV QRQFXUUHQWSRUWLRQ LQFOXGLQJLQWHUHVW accrued thereon Total 4,590.76 3,968.22 4,239.90

7KHIROORZLQJDUHWKHUHPDLQLQJFRQWUDFWXDOPDWXULWLHVRIÀQDQFLDOOLDELOLWLHVDVRQ0DUFK $PRXQWLQ`PLOOLRQ Particulars Less than 1 year 1-2 years 2-4 years 4-5 years Total %RUURZLQJV Trade payables - - - 2WKHUÀQDQFLDOOLDELOLWLHV - -

i. Foreign currency risk 6LJQLÀFDQWSRUWLRQRIWKH*URXS·VUHYHQXHVDUHLQIRUHLJQFXUUHQFLHVZKLOHDVLJQLÀFDQWSRUWLRQRIWKHFRVWVDUHLQ ,QGLDQUXSHHLHIXQFWLRQDOFXUUHQF\RIWKH*URXS7KHIRUHLJQFXUUHQFLHVWRZKLFKWKH*URXSLVPDMRUO\H[SRVHGWRDUH 86'ROODUV(XURVDQG3RXQG6WHUOLQJ

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Annual Report 2016-17 231 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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A) Geographical segments 6HJPHQWLQIRUPDWLRQLVEDVHGRQJHRJUDSKLFDOORFDWLRQRIFXVWRPHUV 31 March 2017 31 March 2016 USA UK & Rest of Total USA UK & Rest of Total Europe World Europe World ` ` ` ` ` ` ` ` (million) (million) (million) (million) (million) (million) (million) (million) a) Segment Revenue 5HYHQXHIURP([WHUQDO customers Inter Segment Revenue - - Total Segment Revenue

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c) Allocated Segment Assets Unallocated Segment Assets 8QDOORFDWHG&RUSRUDWH Assets Total Assets

d) Allocated Segment Liabilities Unallocated Segment Liabilities 8QDOORFDWHG&RUSRUDWH Liabilities Total Liabilities

e) Cost incurred during - - - -# - - - - the period to acquire Segment Non-current Assets

f) Depreciation / # Amortisation

g) Non cash expenses -# other than Depreciation / Amortisation

Annual Report 2016-17 235 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

B) Business segments 31 March 2017 31 March 2016 Auto IES SAP Others Total Auto IES SAP Others Total ` million ` million ` million ` million ` million ` million ` million ` million ` million ` million D Segment 11,015.32 11,141.97 7,697.75 3,378.57 33,233.61 10,189.37 11,608.41 7,344.43 3,100.70 32,242.91 Revenue E Segment 10,545.69* 8,813.62 Assets

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Sr. Name of entity Net assets i.e. total assets 6KDUHLQSURÀWRU ORVV Share in other Share in total No. minus total liabilities comprehensive income comprehensive income (OCI) (TCI) As % of Amount As % of Amount As % of Amount As % of Amount consolidated (` million) consolidated (` million) consolidated (` million) consolidated (` million) net assets SURÀWRU OCI TCI (loss) .3,77(&+12/2*,(662/8d¯(6 (0,1)250É7,&$/7'$ 6XEVLGLDU\RI.3,7,QIRV\VWHPV ,QFRUSRUDWHG86$ 6SDUWD&RQVXOWLQJ,QFRUSRUDWLRQ USA 6XEVLGLDU\RI.3,7,QIRV\VWHPV ,QFRUSRUDWHG86$ 0LFURIX]]\%UD]LO .3,77HFKQRORJLHV&RUSRUDWLRQ 6XEVLGLDU\RI6<67,0( &RPSXWHU&RUSRUDWLRQ86$ .3,7PHGLQL7HFKQRORJLHV$* - 6XEVLGLDU\RI.3,77HFKQRORJLHV *PE+*HUPDQ\ .3,76ROXWLRQV*PE+*HUPDQ\ 6XEVLGLDU\RI.3,77HFKQRORJLHV *PE+*HUPDQ\ZHI 0LFURIX]]\(OHFWURQLF,QGXVWULH *PE+ (B) 7,706.64 713.25 (52.86) 660.39 C Associate:

* During the year, KPIT Technologies GmbH sold the investment in KPIT medini Technologies AG, its subsidiary company. The transaction resulted in loss of control with effect from 1 November 2016.

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B. List of Key Management Personnel : Key Management Personnel (‘KMP’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ÀFHU 0U6ZDPLQDWKDQ5 XSWR-XO\ &RPSDQ\6HFUHWDU\ 0V6QHKD3DGYH ZHI-XO\ &RPSDQ\6HFUHWDU\

C. List of other related parties with whom there are transactions Relative of KMP 0U&KLQPD\3DQGLW 0V-D\DGD3DQGLW 0U6KUH\DV3DWZDUGKDQ (QWHUSULVHRYHUZKLFK.03KDYHVLJQLÀFDQWLQÁXHQFH .3&RUSRUDWH6ROXWLRQV/WG 3URÀFLHQW)LQ6WRFN//3 .LUWDQH 3DQGLW//3

Annual Report 2016-17 242 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

D. Transactions with related parties Sr. Name of related party FY 2016-17 FY 2015-16 No Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) Transactions with KMP 1 Mr. S. B. (Ravi) Pandit 6KRUWWHUPHPSOR\HHEHQHÀWV 1,/ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1,/ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1,/ 1,/ 2 Mr. Kishor Patil 6KRUWWHUPHPSOR\HHEHQHÀWV 1,/ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1,/ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1,/ 3HUTXLVLWHYDOXH 1,/ 1,/ Loan given 1,/ Repayment of loan granted Interest received 1,/ 1,/ 3 Mr. Sachin Tikekar 6KRUWWHUPHPSOR\HHEHQHÀWV 1,/ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1,/ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1,/ 4 Mr. Anil Patwardhan 6KRUWWHUPHPSOR\HHEHQHÀWV 1,/ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1,/ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1,/ 1,/ 5 Mr. R Swaminathan 6KRUWWHUPHPSOR\HHEHQHÀWV 1$ 1$ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1$ 1$ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1$ 1$ 1,/ 6 Ms. Sneha Padve 6KRUWWHUPHPSOR\HHEHQHÀWV 1,/ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1,/ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1,/ 1,/ 1,/ 7 Dr. Raghunath Anant Mashelkar &RPPLVVLRQSDLG Share based compensation 1,/ Sitting fees 1,/ 1,/ 8 Ms. Lila Poonawalla &RPPLVVLRQSDLG Share based compensation 1,/ Sitting fees 1,/ 1,/ 9 Prof. Alberto Sangiovanni Vincentelli &RPPLVVLRQSDLG Share based compensation 1,/ Sitting fees 1,/ 1,/ 10 Mr. Anant Talaulicar Sitting fees 1,/ 1,/ 1,/

Annual Report 2016-17 243 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

Sr. Name of related party FY 2016-17 FY 2015-16 No Amount of Balance as on Amount of Balance as on transactions 31 March 2017 transactions 31 March 2016 during the year Debit/(Credit) during the year Debit/(Credit) (` million) (` million) (` million) (` million) 11 Mr. Adi Engineer &RPPLVVLRQSDLG 1,/ 1,/ Sitting fees 12 Mr. B V R Subbu &RPPLVVLRQSDLG 1,/ 1,/ Sitting fees Transactions with relative of KMP 1 Mr. Chinmay Pandit 6KRUWWHUPHPSOR\HHEHQHÀWV 1,/ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1,/ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1,/ 1,/ 2 Ms. Jayada Pandit 6KRUWWHUPHPSOR\HHEHQHÀWV 1,/ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1,/ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1,/ 1,/ 1,/ 3 Mr. Shreyas Patwardhan 6KRUWWHUPHPSOR\HHEHQHÀWV 1,/ 1,/ 3RVWHPSOR\PHQWEHQHÀWV 1,/ 1,/ 5HLPEXUVHPHQWRIH[SHQVHV QHW 1,/ 1,/ 1,/ 1,/ Transactions with enterprise over which KMP KDYHVLJQLÀFDQWLQÁXHQFH 1 Kirtane & Pandit LLP Professional fees 1,/ 2 KP Corporate Solutions Limited Sales 1,/ 1,/ 1,/ Professional fees 3 3URÀFLHQW)LQ6WRFN//3 'HSRVLWVIRUUHDSSRLQWPHQWRIGLUHFWRUV 1,/ 1,/ Transactions with associate 1 Yantra Digital Services Private Limited Investment 1,/ 1$ 1$ Advance given 1$ 1$ Loan given 1,/ 1$ 1$ Repayment of loan including interest 1,/ 1$ 1$ Interest income on loan given 1,/ 1$ 1$

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Annual Report 2016-17 244 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 245 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

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Annual Report 2016-17 249 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

3 Employee Stock Option Plan – 2014 7KH%RDUGRI'LUHFWRUVDQGWKHVKDUHKROGHUVRIWKH*URXSDSSURYHGDQRWKHU(PSOR\HHV6WRFN2SWLRQ3ODQDWWKHLUPHHWLQJ LQ)HEUXDU\DQGLQ$SULOUHVSHFWLYHO\3XUVXDQWWRWKLVDSSURYDOWKH*URXSLQVWLWXWHG(6233ODQLQ$SULO 7KHFRPSHQVDWLRQFRPPLWWHHRIWKH*URXSDGPLQLVWHUVWKLV3ODQ(DFKRSWLRQFDUULHVZLWKLWWKHULJKWWRSXUFKDVHRQH HTXLW\VKDUHRIWKH*URXS7KH2SWLRQVKDYHEHHQJUDQWHGWRHPSOR\HHVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVDWDQH[HUFLVH price of `SHURSWLRQ7KHYHVWLQJRIWKHRSWLRQVLVDQGRIWRWDORSWLRQVJUDQWHGDIWHUHQGRIÀUVWVHFRQG DQGWKLUG\HDUUHVSHFWLYHO\IURPWKHGDWHRIJUDQW7KHPD[LPXPH[HUFLVHSHULRGLV\HDUVIURPWKHGDWHRIYHVWLQJ

1XPEHUDQGZHLJKWHGDYHUDJHH[HUFLVHSULFHVRIRSWLRQVJUDQWHGH[HUFLVHGDQGFDQFHOOHGODSVHGGXULQJWKHÀQDQFLDO\HDU Particulars FY 2016-17 FY 2015-16 No. of shares Weighted No. of shares Weighted average average exercise price exercise price 2SWLRQV RXWVWDQGLQJ DW WKH EHJLQQLQJ RI WKH year *UDQWHGGXULQJWKH\HDU - - )RUIHLWHGVXUUHQGHUHGGXULQJWKH\HDU - - ([HUFLVHGGXULQJWKH\HDU - - 2SWLRQVRXWVWDQGLQJDWWKHHQGRI\HDU 2SWLRQVH[HUFLVDEOHDWWKHHQGRIWKH\HDU

The weiJKWHGDYHUDJHVKDUHSULFHRIWKHRSWLRQVH[HUFLVHGXQGHU(PSOR\HHV6WRFN2SWLRQ6FKHPHRQWKHGDWHRI exercise during the year was ` 3UHYLRXV\HDU`1LO

The weigKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIHDUHDVIROORZV Range of Exercise Price FY 2016-17 FY 2015-16 Weighted No. of Options Weighted No. of Options average Outstanding average Outstanding contractual life contractual life (years) (years) ` 0 to ` `WR` 1,/ 1,/ 1,/ 1,/ `WR` 1,/ 1,/ 1,/ 1,/ `WR` 200 1,/ 1,/ 1,/ 1,/

The fDLUYDOXHRIHDFKRSWLRQLVHVWLPDWHGRQWKHGDWHRIJUDQWXVLQJ%ODFNDQG6FKROHVRSWLRQSULFLQJPRGHOZLWKWKH folloZLQJDVVXPSWLRQV Particulars FY 2016-17 FY 2015-16 ([HUFLVHSULFH ` 1,/ 3ULFHRIWKHXQGHUO\LQJVKDUHLQPDUNHWDWWKHWLPHRIWKHRSWLRQJUDQW ` 1,/ :HLJKWHGDYHUDJHIDLUYDOXHRIRSWLRQVJUDQWHG ` 1,/ ([SHFWHGOLIHRIWKHRSWLRQ \HDUV 1,/ 5LVNIUHHLQWHUHVWUDWH 1,/ ([SHFWHGYRODWLOLW\ 1,/ 'LYLGHQG\LHOG 1,/

Annual Report 2016-17 250 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

4 Employee Stock Option Plan – 2015 7KH%RDUGRI'LUHFWRUVDQGWKHVKDUHKROGHUVRIWKH*URXSDSSURYHGDQRWKHU(PSOR\HH6WRFN2SWLRQ3ODQDWWKHLUPHHWLQJ LQ$SULODQG$XJXVWUHVSHFWLYHO\3XUVXDQWWRWKLVDSSURYDOWKH*URXSLQVWLWXWHG(6233ODQLQ$XJXVW 7KHFRPSHQVDWLRQFRPPLWWHHRIWKH*URXSDGPLQLVWHUVWKLV3ODQ(DFKRSWLRQFDUULHVZLWKLWWKHULJKWWRSXUFKDVHRQH HTXLW\VKDUHRIWKH*URXS7KH2SWLRQVKDYHEHHQJUDQWHGWRHPSOR\HHVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVDWDQH[HUFLVH SULFHWKDWLVQRWOHVVWKDQWKHIDLUPDUNHWYDOXH7KHYHVWLQJRIWKHRSWLRQVLVDQGRIWRWDORSWLRQVJUDQWHG DIWHUHQGRIÀUVWVHFRQGDQGWKLUG\HDUUHVSHFWLYHO\IURPWKHGDWHRIJUDQW7KHPD[LPXPH[HUFLVHSHULRGLV\HDUVIURP WKHGDWHRIYHVWLQJ 1XPEHUDQGZHLJKWHGDYHUDJHH[HUFLVHSULFHVRIRSWLRQVJUDQWHGH[HUFLVHGDQGFDQFHOOHGODSVHGGXULQJWKHÀQDQFLDO\HDU Particulars FY 2016-17 FY 2015-16 No. of shares Weighted No. of shares Weighted average average exercise price exercise price 2SWLRQV RXWVWDQGLQJ DW WKH EHJLQQLQJ RI WKH - - year *UDQWHGGXULQJWKH\HDU - - )RUIHLWHGVXUUHQGHUHGGXULQJWKH\HDU ([HUFLVHGGXULQJWKH\HDU - - - - Lapsed during the year - - - - 2SWLRQVRXWVWDQGLQJDWWKHHQGRI\HDU 2SWLRQVH[HUFLVDEOHDWWKHHQGRIWKH\HDU - -

The weighted average share price of theRSWLRQVH[HUFLVHGXQGHU(PSOR\HHV6WRFN2SWLRQ6FKHPHRQWKHGDWHRI exercise during the year was `1LO 3UHYLRXV\HDU`1LO The weighted average remaining contracWXDOOLIHDUHDVIROORZV

Range of Exercise Price FY 2016-17 FY 2015-16 Weighted No. of Options Weighted No. of Options average Outstanding average Outstanding contractual life contractual life (years) (years) ` 0 to ` 1,/ 1,/ 1,/ 1,/ `WR` 1,/ 1,/ 1,/ 1,/ `WR` `WR` 200 1,/ 1,/ 1,/ 1,/

The fair value RIHDFKRSWLRQLVHVWLPDWHGRQWKHGDWHRIJUDQWXVLQJ%ODFNDQG6FKROHVRSWLRQSULFLQJPRGHOZLWKWKH following assumSWLRQV

Particulars FY 2016-17 FY 2015-16 ([HUFLVHSULFH ` 1,/ 3ULFHRIWKHXQGHUO\LQJVKDUHLQPDUNHWDWWKHWLPHRIWKHRSWLRQJUDQW ` 1,/ :HLJKWHGDYHUDJHIDLUYDOXHRIRSWLRQVJUDQWHG ` 1,/ ([SHFWHGOLIHRIWKHRSWLRQ \HDUV 1,/ 5LVNIUHHLQWHUHVWUDWH 1,/ ([SHFWHGYRODWLOLW\ 1,/ 'LYLGHQG\LHOG 1,/

Annual Report 2016-17 251 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

7KH*URXSUHFRUGHGDQHPSOR\HHFRPSHQVDWLRQFRVWRI`PLOOLRQ 3UHYLRXV\HDU`PLOOLRQ LQWKHVWDWHPHQWRI SURÀWDQGORVV 7KHH[SHFWHGSULFHYRODWLOLW\LVEDVHGRQWKHKLVWRULFYRODWLOLW\DGMXVWHGIRUDQ\H[SHFWHGFKDQJHVWRIXWXUHYRODWLOLW\GXHWR SXEOLFO\DYDLODEOHLQIRUPDWLRQ ,QFRPHWD[HV The income tax expense consists of following: Particulars FY 2016-17 FY 2015-16 ` million ` million Tax expense &XUUHQWWD[ MAT credit entitlement 'HIHUUHGWD[ EHQHÀW FKDUJH Total tax expense 605.73 845.48 7KHGHIHUUHGWD[UHODWHVWRRULJLQDWLRQUHYHUVDORIWHPSRUDU\GLIIHUHQFHV

The reconciliation of estimated income tax expense at Indian statutory income tax rate to income tax expense reported in 6WDWHPHQWRI3URÀWRU/RVVLVDVIROORZV Particulars FY 2016-17 FY 2015-16 ` million ` million 3URÀWEHIRUHWD[ Indian statutory income tax rate ([SHFWHGWD[H[SHQVH Tax Effect of adjustments to reconcile expected income tax expense to reported income tax expense (IIHFWRILQFRPHWD[KROLGD\H[HPSWLRQVDQGGHGXFWLRQV (IIHFWUHODWLQJWRSULRU\HDUV (IIHFWRISHUPDQHQWDGMXVWPHQWV (IIHFWRIGLIIHUHQWLDORYHUVHDVWD[UDWHV (IIHFWRIXQUHFRJQL]HGGHIHUUHGWD[DVVHWV 2WKHUV QHW Total income tax expense 605.73 845.48

'XULQJWKH\HDUHQGHG0DUFKDQG0DUFKWKH*URXSKDVFODLPHGZHLJKWHGWD[GHGXFWLRQRQHOLJLEOHUHVHDUFK DQGGHYHORSPHQWH[SHQGLWXUHVEDVHGRQWKHDSSURYDOUHFHLYHGIURP'HSDUWPHQWRI6FLHQWLÀFDQG,QGXVWULDO5HVHDUFK '6,5 RQ -XQHZKLFKKDVEHHQUHQHZHGHIIHFWLYH$SULO7KHZHLJKWHGWD[GHGXFWLRQLVHTXDOWRRIVXFKH[SHQGLWXUHV LQFXUUHG$OVRUHIHUQRWH $GGLWLRQDOO\WKH*URXSEHQHÀWVIURPWKHWD[KROLGD\DYDLODEOHIRUXQLWVVHWXSXQGHUWKH6SHFLDO(FRQRPLF=RQH$FW 6(= $FFRUGLQJO\XQLWVLQGHVLJQDWHG6(=DUHHOLJLEOHIRUDGHGXFWLRQRIRISURÀWVRUJDLQVGHULYHGIURPWKHH[SRUWRIVHUYLFHV IRUWKHÀUVWÀYH\HDUVIURPWKHÀQDQFLDO\HDULQZKLFKWKHXQLWFRPPHQFHGWKHSURYLVLRQRIVHUYLFHVDQGRIVXFKSURÀWVRU JDLQVIRUDIXUWKHUÀYH\HDUV&HUWDLQWD[EHQHÀWVDUHDOVRDYDLODEOHIRUDIXUWKHUÀYH\HDUVVXEMHFWWRWKHXQLWPHHWLQJGHÀQHG FRQGLWLRQV7KHWD[KROLGD\SHULRGEHLQJFXUUHQWO\DYDLODEOHWRWKH*URXSH[SLUHVLQYDULRXV\HDUVWKURXJKÀVFDO\HDU)URP $SULOXQLWVVHWXSXQGHU6(=VFKHPHDUHVXEMHFWWR0LQLPXP$OWHUQDWH7D[ 0$7 6RPHVXEVLGLDULHVRIWKH*URXSKDYHXQDEVRUEHGGHSUHFLDWLRQDQGORVVHVXQGHUUHVSHFWLYHORFDOWD[ODZVDQGLWLVQRWSUREDEOH WKDWWD[DEOHSURÀWVZLOOEHDYDLODEOHLQWKHIXWXUH+HQFHGHIHUUHGWD[DVVHWVRQWHPSRUDU\GLIIHUHQFHVKDYHEHHQUHFRJQL]HG RQO\WRWKHH[WHQWRIGHIHUUHGWD[OLDELOLWLHV7KHDPRXQWRIXQUHFRJQLVHGGHIHUUHGWD[DVVHWVLV`PLOOLRQ 3UHYLRXV\HDU `PLOOLRQ

Annual Report 2016-17 252 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

Deferred tax 7KHJURVVPRYHPHQWLQWKHGHIHUUHGLQFRPHWD[DFFRXQWIRUWKH\HDUHQGHG0DUFKDQG0DUFKLVDVIROORZV Particulars FY 2016-17 FY 2015-16 ` million ` million 1HWGHIHUUHGLQFRPHWD[DVVHWDWWKHEHJLQQLQJ Translation differences 0$7&UHGLWHQWLWOHPHQWIRUWKH\HDU &UHGLWV FKDUJH UHODWLQJWRWHPSRUDU\GLIIHUHQFHV Temporary differences on other comprehensive income 1HWGHIHUUHGLQFRPHWD[DVVHWDWWKHHQG

7KHFKDUJHUHODWLQJWRWHPSRUDU\GLIIHUHQFHVGXULQJWKH\HDUHQGHG0DUFKDUHSULPDULO\RQDFFRXQWSURYLVLRQIRU GRXEWIXOGHEWVDQGSURYLVLRQIRUOHDYHHQFDVKPHQWDQGEDGGHEWVUHVHUYHSDUWLDOO\RIIVHWE\FUHGLWRQDFFRXQWRISURSHUW\SODQW DQGHTXLSPHQWDQGSURYLVLRQIRUJUDWXLW\7KHFKDUJHUHODWLQJWRWHPSRUDU\GLIIHUHQFHVGXULQJWKH\HDUHQGHG0DUFK DUHSULPDULO\RQDFFRXQWRISURSHUW\SODQWDQGHTXLSPHQWDQGSURYLVLRQIRUGRXEWIXOGHEWVSDUWLDOO\RIIVHWE\FUHGLWRQDFFRXQW RISURYLVLRQIRUJUDWXLW\DQGOHDYHHQFDVKPHQW

2WKHUGLVFORVXUHVDQGH[SODQDWRU\QRWHV 1 'XULQJWKHSUHYLRXV\HDUWKHIDLUYDOXHRIDQLQYHVWPHQWKDGGHFOLQHGE\`PLOOLRQ7KLVORVVZDVUHFRUGHGXQGHU H[FHSWLRQDOLWHPVLQWKH&RQVROLGDWHG6WDWHPHQWRI3URÀWDQG/RVV 2 'XULQJ WKH \HDU WKH *URXS KDV GLVSRVHG RI LWV ZKROO\ RZQHG VXEVLGLDU\ .3,7 PHGLQL 7HFKQRORJLHV $* .3,7 PHGLQL 7HFKQRORJLHV$*ZDVHQJDJHGLQWKHEXVLQHVVRIIXQFWLRQDOVDIHW\SURGXFWV 7KHHIIHFWLYHGDWHRIGLVSRVDOLV1RYHPEHU Details of the disposal are as follows: A. Book values of net assets over which control was lost

Assets Amount (` million) 1RQFXUUHQWDVVHWV &DVKDQGFDVKHTXLYDOHQWV &XUUHQWDVVHWV H[FOXGLQJFDVKDQGFDVKHTXLYDOHQWV Total 163.75

Liabilities Amount (` million) &XUUHQWLQFRPHWD[OLDELOLWLHV QHW 2WKHUFXUUHQWOLDELOLWLHV Total 63.76

Net assets derecognised 99.99

Annual Report 2016-17 253 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

B. Gain on disposal of subsidiary: Difference between the total consideration received and the net assets derecognised Amount (` million) Total consideration /HVVYDOXHRIQHWDVVHWVGHUHFRJQLVHG /HVVJRRGZLOORQFRQVROLGDWLRQ /HVVLQFLGHQWDOH[SHQVHV Gain on disposal 260.91

7KHJDLQRQGLVSRVDORIVXEVLGLDU\LVUHFRUGHGXQGHUH[FHSWLRQDOLWHPVLQWKH&RQVROLGDWHG6WDWHPHQWRI3URÀWDQG/RVV

3 Acquisition of MicroFuzzy Industrie-Elektronic GmbH 2Q'HFHPEHUWKH*URXSWKURXJKLWVZKROO\RZQHGVXEVLGLDU\.3,77HFKQRORJLHV*PE+*HUPDQ\KDVDFTXLUHG VWDNH LQ 0LFUR)X]]\ ,QGXVWULH(OHNWURQLF *PE+ ´µ0LFUR)X]]\µµ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a. Consideration transferred (at the acquisition date fair values) Particulars Amount (` million) &DVK 'HIHUUHGFRQVLGHUDWLRQ Total 638.83

$FTXLVLWLRQUHODWHGFRVWRI`PLOOLRQLVUHFRJQLVHGXQGHURWKHUH[SHQVHVLQWKHVWDWHPHQWRISURÀWDQGORVVIRUWKH\HDU HQGHG0DUFK

b. The fair value of assets acquired and liabilities assumed as at the date of acquisition were: Particulars Amount (` million) Assets 3URSHUW\SODQWDQGHTXLSPHQW Investments Long-term loans and advances Trade receivables &DVKDQGEDQNEDODQFHV Short-term loans and advances 2WKHUFXUUHQWDVVHWV Total 464.17

Annual Report 2016-17 254 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

Particulars Amount (` million) Liabilities Trade payables 2WKHUFXUUHQWOLDELOLWLHV Short-term provisions Total 398.28 7RWDOLGHQWLÀDEOHQHWDVVHWVDWIDLUYDOXH 65.89

c. Non-controlling interest 7KH*URXSKDVHOHFWHGWRPHDVXUHWKHQRQFRQWUROOLQJLQWHUHVWLQWKH$FTXLUHHDWWKHSURSRUWLRQDWHVKDUHLQWKHUHFRJQLVHG DPRXQWVRIWKHLGHQWLÀDEOHQHWDVVHWV

d. Goodwill arising on acquisition Particulars Amount (` million) Purchase consideration $GG1RQFRQWUROOLQJLQWHUHVW /HVV)DLUYDOXHRILGHQWLÀDEOHQHWDVVHWVDFTXLUHG Goodwill arising on acquisition 589.41

The goodwill of ` PLOOLRQ FRPSULVHV WKH YDOXH RI H[SHFWHG V\QHUJLHV DULVLQJ IURP WKH DFTXLVLWLRQ 1RQH RI WKH JRRGZLOOUHFRJQLVHGLVH[SHFWHGWREHGHGXFWLEOHIRULQFRPHWD[SXUSRVHV

H 1HWFDVKRXWÁRZRQDFTXLVLWLRQRIVXEVLGLDU\ Particulars Amount (` million) &RQVLGHUDWLRQSDLGLQFDVK /HVV&DVKDQGFDVKHTXLYDOHQWVEDODQFHVDFTXLUHG 1HWFDVKÁRZ 441.85

f. )URPWKHGDWHRIDFTXLVLWLRQWKH$FTXLUHHKDVFRQWULEXWHG`PLOOLRQWRUHYHQXHDQG`PLOOLRQWRWKHSURÀW EHIRUHWD[IURPFRQWLQXLQJRSHUDWLRQVRIWKH*URXS,IWKHFRPELQDWLRQKDGWDNHQSODFHDWWKHEHJLQQLQJRIWKH\HDUWKH *URXS·VUHYHQXHZRXOGKDYHEHHQ`PLOOLRQDQGWKHSURÀWEHIRUHWD[ZRXOGKDYHEHHQ`PLOOLRQ

'LVFORVXUHRIÀQDQFLDOLQIRUPDWLRQRIVXEVLGLDULHVZLWKPDWHULDOQRQFRQWUROOLQJLQWHUHVW 7KHLQWHUHVWWKDWQRQFRQWUROOLQJLQWHUHVWKDYHLQWKH*URXS·VDFWLYLWLHVDQGFDVKÁRZV A. Proportion of equity interest held by non-controlling interest Name of the subsidiary Country of incorporation 31 March 2017 and operation 0LFUR)X]]\,QGXVWULH(OHNWURQLF*PE+ *HUPDQ\

B. Details of non-controlling interest Particulars 31 March 2017 (` million) Accumulated balance of non-controlling interest 3URÀWDQGORVVDOORFDWHGWRQRQFRQWUROOLQJLQWHUHVW

Annual Report 2016-17 255 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

C. Summarised balance sheet as on 31 March 2017 (before inter-company eliminations) Particulars Amount (` million) 1RQFXUUHQWDVVHWV &DVKDQGFDVKHTXLYDOHQWV &XUUHQWDVVHWV H[FOXGLQJFDVKDQGFDVKHTXLYDOHQWV Total 306.77 Trade payables &XUUHQWOLDELOLWLHV H[FOXGLQJWUDGHSD\DEOHV Total 240.29 Total equity 66.48 Attributable to: 2ZQHUVRIWKH*URXS 1RQFRQWUROOLQJLQWHUHVW

' 6XPPDULVHG VWDWHPHQW RI SURÀW DQG ORVV IRU WKH IRXU PRQWKV HQGHG RQ 0DUFK (before inter-company eliminations) Particulars Amount (` million) Revenue 2WKHULQFRPH Total income 311.41 (PSOR\HHEHQHÀWVH[SHQVH Finance costs 'HSUHFLDWLRQDQGDPRUWL]DWLRQ 2WKHUH[SHQVHV Total expenses 306.93 3URÀWEHIRUHWD[ 4.48 &XUUHQWWD[ 3URÀW /RVV IRUWKHSHULRG 1.55 2WKHUFRPSUHKHQVLYHLQFRPH - Total comprehensive income 1.55

( 6XPPDULVHGFDVKÁRZLQIRUPDWLRQIRUWKHIRXUPRQWKVHQGHGRQ0DUFK (before inter-company eliminations) Particulars Amount (` million) &DVKÁRZIURP 2SHUDWLQJDFWLYLWLHV Investing activities Financing activities 1HWLQFUHDVH GHFUHDVH LQFDVKDQGFDVKHTXLYDOHQWV

5 Disclosure of interest in associate 7KH*URXSKDVLQYHVWHGLQ

Annual Report 2016-17 256 1RWHVIRUPLQJSDUWRIWKHFRQVROLGDWHGÀQDQFLDOVWDWHPHQWV

A. Summarised balance sheet as on 31 March 2017 Particulars Amount (` million) 1RQFXUUHQWDVVHWV &DVKDQGFDVKHTXLYDOHQWV &XUUHQWDVVHWV H[FOXGLQJFDVKDQGFDVKHTXLYDOHQWV Total 202.23 Trade payables &XUUHQWOLDELOLWLHV H[FOXGLQJWUDGHSD\DEOHV Total 204.70 Total equity (2.47) 7KH*URXS VVKDUHLQHTXLW\ &DUU\LQJDPRXQWRIWKHLQYHVWPHQW DIWHUDGMXVWLQJWKHVKDUHRIORVVIURPDVVRFLDWH -

% 6XPPDULVHGVWDWHPHQWRISURÀWDQGORVVIRUWKH\HDUHQGHGRQ0DUFK Particulars Amount (` million) Revenue from operations - Finance costs 2WKHUH[SHQVHV Total expenses 2.57 3URÀW /RVV EHIRUHWD[ (2.57) &XUUHQWWD[ - 3URÀW /RVV IRUWKHSHULRG (2.57) 2WKHUFRPSUHKHQVLYHLQFRPH - Total comprehensive income (2.57) 7KH*URXS VVKDUHRIORVVIRUWKH\HDU 7KH*URXS VVKDUHRIORVVUHVWULFWHGWRWKHH[WHQWRILQYHVWPHQW C. Reconciliation of carrying amount of investment as on 31 March 2017 Particulars Amount (` million) Amount of investment in associate Share of loss from associate Carrying amount of investment in associate -

6 $FXVWRPHUKDVÀOHGDOHJDOVXLWDJDLQVWWKH&RPSDQ\DQGLWVVXEVLGLDULHVVHHNLQJYDULRXVGDPDJHVQRWOHVVWKDQ86' PLOOLRQSHUWDLQLQJWRVHUYLFHVRQDQ(53LPSOHPHQWDWLRQFRQWUDFW7KHVXEVLGLDU\KDVÀOHGDFRXQWHUFODLPDJDLQVWWKH FXVWRPHUVHHNLQJFRPSHQVDWRU\GDPDJHVUHOLHIFRVWVHWF7KHPDWWHULVFXUUHQWO\SHQGLQJZLWKWKH8QLWHG6WDWHV'LVWULFW &RXUW7KH&RPSDQ\DQGLWVVXEVLGLDULHVFRQWLQXHVWRSXUVXHLWVFODLPIRUGDPDJHVDQGGHIHQGDJDLQVWWKHFXVWRPHU·V FODLPV%DVHGRQLWVLQWHUQDODVVHVVPHQWWKH&RPSDQ\LVFRQÀGHQWRIEHLQJDEOHWRGHIHQGLWVH[SRVXUHRQWKLVFDVH 7A 7KH&RPSDQ\ZDVUHTXLUHGWRVSHQG`PLOOLRQWRZDUGV&RUSRUDWH6RFLDO5HVSRQVLELOLW\'XULQJWKH\HDUWKH&RPSDQ\ has spent and paid ` PLOOLRQ 3UHYLRXV \HDU ` PLOOLRQ WRZDUGV &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ LQ YDULRXV activitiHV DV VSHFLÀHG LQ 6FKHGXOH 9,, RI WKH &RPSDQLHV $FW UHDG ZLWK WKH 5XOHV WKHUHXQGHUDV GLUHFW VSHQG IRU SXUSRVHVRWKHUWKDQFRQVWUXFWLRQDFTXLVLWLRQRIDQ\DVVHW $OVRUHIHU$QQH[XUHRIWKH'LUHFWRU·V5HSRUW

Annual Report 2016-17 257 7B 'XULQJ WKH \HDUWKH &RPSDQ\ KDG 6SHFLÀHG %DQN 1RWHV 6%1V RU RWKHU GHQRPLQDWLRQ QRWHV DV GHÀQHG LQ WKH 0&$ QRWLÀFDWLRQ*65 ( GDWHG0DUFKRQWKHGHWDLOVRI6%1VKHOGDQGWUDQVDFWHGGXULQJWKHSHULRGIURP1RYHPEHU WR'HFHPEHU7KHGHQRPLQDWLRQZLVH6%1VDQGRWKHUQRWHVDVSHUWKHQRWLÀFDWLRQLVJLYHQEHORZ $PRXQWLQ` Particulars SBN Other Total %DODQFHDVRQ Receipts Payments 'HSRVLWHGLQEDQNV - Balance as on 30.12.2016 - 82,981 82,981

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The accounting of merger was done by using pooling of interest method and as per the articles of the Agreement and Plan RI0HUJHU 'LIIHUHQFHEHWZHHQWKHFRVWRILQYHVWPHQWDQGWKHYDOXHRIQHWLGHQWLÀDEOHDVVHWV CPG Amount I-cubed acquired as adjusted in Reserves : (USD million) Amount (USD million) &RVWRILQYHVWPHQW /HVVYDOXHRIQHWLGHQWLÀDEOHDVVHWVDFTXLUHG Adjusted in Reserves 12.98 13.64

As per our report of even date attached For B S R & Co. LLP For and on behalf of the Board of Directors of Chartered Accountants KPIT TECHNOLOGIES LIMITED Firm Registration Number: 101248W / W-100022

Vijay Mathur Anil Patwardhan S. B. (Ravi) Pandit Partner &KLHI)LQDQFLDO2IÀFHU &KDLUPDQ *URXS&(2 0HPEHUVKLS1R

Sneha Padve Kishor Patil &RPSDQ\6HFUHWDU\ &(2 0DQDJLQJ'LUHFWRU

3ODFH3XQH 3ODFH3XQH 'DWH$SULO 'DWH$SULO

Annual Report 2016-17 258 KPIT’s global presence

,QGLDRIÀFHV GGR TOWERS, Unit – II, Ground Floor, “Right Wing” Sy#18/2b, 5HJLVWHUHG &RUSRUDWH2IÀFH Ambalipura Village, Sarjapur Road, Bellandur gate, Bengaluru East Taluk, 35 & 36, Rajiv Gandhi Infotech Park, Bengaluru - 560103, Karnataka, India. Phase - I, MIDC, Hinjawadi, Phone: +91-80-6606 6202 Pune - 411057, Maharashtra, India. Phone: +91-20-6652 5000 GGR TOWERS, Unit – II, Fax: +91-20-6652 5001 Ground Floor, “Left Wing” Sy#18/2b, Software Development Centres Ambalipura Village, Sarjapur Road, Bellandur Gate, Bengaluru East Taluk, SEZ Premises Bengaluru - 560103, Karnataka, India. Phone: +91-80-6606 6202 SEZ Unit - I, 3rd Floor, IT-3 Building, Qubix Business Park Private Limited, Other Premises Plot No. 2, Blueridge Township, th Rajiv Gandhi Infotech Park, Phase - I, 6 Floor, SKCL Triton Square Hinjawadi, Pune - 411057, Maharashtra, India. C3 to C7, Thiru-Vi-Ka Industrial Estate Phone: +91-20-4203 7000 Guindy, Chennai – 600032, India. Phone: +91-44-2250 2371 SEZ Unit - III, Ground & First Floor, IT-9 Building, Plot No. 2, Blueridge Township, 5HVHDUFKDQG'HYHORSPHQW8QLW Rajiv Gandhi Infotech Park, Phase - I, 45, Rajiv Gandhi Infotech Park,Phase - I, MIDC, Hinjawadi, Hinjawadi, Pune - 411057, Maharashtra, India. Pune - 411057, Maharashtra, India. Phone: +91-20-4203 7000 Phone: +91-20-6652 5000 Custom Wing Unit, Fax: +91-20-6652 5001 Seepz SEZ, Andheri (E), Mumbai – 400096, India. 2YHUVHDVRIÀFHV Phone: +91-22-2829 6100 Fax: +91-22-2829 0126 8QLWHG6WDWHVRI$PHULFD IT-3 Unit, SDF VII, 379, Thornall Street, Edison, NJ 08837, Seepz SEZ, Andheri (E), United States of America. Mumbai – 400096, India. Phone: +732-321-0921 Phone: +91-22-2829 6200 Fax: +732-321-0922 Fax: +91-22-2829 0126 1266 Washington Street, No. 20 & 21, RMZ Ecoworld Infrastructure Private Limited - SEZ, Columbus, IN 47201, Sarjapur Outer Ring Road, United States of America. Deverabeesanahalli, Phone: +812-379-1811 / 1816 / 1308 / 1319 Bengaluru – 560103, Fax: +812-379-1812 Karnataka, India. 9720 Cypresswood Dr, Suite # 226 Phone: +91-80-3028 7500 Houston, TX 77070, Fax: +91-80-3026 0503 United States of America. Unit – II, Plot B, Campus 5B, 9th Floor, Phone: +1-281-241-6240 RMZ Ecoworld Infrastructure Private Limited, SEZ, Fax: +1-281-720-0293 Devarabeesanahalli Village, Sarjapur Outer Ring Road, 28001 Cabot DR, Suite 110 Bengaluru - 560103, Karnataka, India. Novi, MI 48377, Phone: +91-80-6606 6262 United States of America. 34 & 35, Noida Special Economic Zone, Phone: +248-215-0304 Phase – II, Noida – 201305, 111 Woodmere Road, Suite 200 Uttar Pradesh, India. Folsom, California 95630, Phone: +91-120-3073555 United States of America. Fax: +91-120-3073554 Phone: +1-916-985-0300 STPI Premises Fax: +916-985-0302 Building A, Plot No. EL-207/1, 920 Main Campus DR, TTC Industrial Area, Mahape, STE 400, Raleigh, Navi Mumbai – 400710, India. North Carolina 27606, Phone: +91-22-2778 3110 United States of America. Fax: +91-22-2768 2197 Phone: +919-755-5300

Annual Report 2016-17 259 Canada China 8120-128 Street, 1603-1604, Tower B, Surrey BC V3W 1R1, Central Towers, Canada. 567 Langao Road, Phone: +1-647-274-6979 Shanghai 200333, PRC. Phone: +86-21-5631-5785 2800 Skymark Avenue, Suite 203 Fax: +86-21-5631-3925 Mississauga, Ontario, L4W 5A7 Phone: +1-647-274-6979 Japan Brazil Muromachi CS Bldg. 5F, 4-6-5, Nihonbashi-Muromachi Chuo-ku, Av. Angélica, 1920 – 2º andar - Consolação Tokyo, Japan 103-0022 CEP 01228-200 – São Paulo / SP- Brasil Phone: +03-6913-8501 Phone: +55-11-3664-9918 Fax: +03-5205-2434 Rua James Watt, 84 – 8º andar – sala 2 - Jardim Edith Singapore CEP 04576-050 – São Paulo / SP – Brasil. Phone: +55-11-3664-9918 #11-07 Paya Lebar Square 60 Paya Lebar Road, Singapore 409 051 8QLWHG.LQJGRP Phone: +65 6822 7206 Ground Floor, 6RXWK$IULFD The Annexe, Hurst Grove, Sandford Lane, Hurst, 22 Wellington Road, Berkshire RG10 0SQ, Parktown, 2193, United Kingdom. South Africa. Phone: +44-118-934-5656 Phone: +27 (0) 11 488 1888 Fax: +44-118-934-1165 6RXWK.RUHD Sweden A-607, SAMHWANHIPEX, Sampyung-Dong, Box 1208, 240, Pangyoyeok-ro, 164 28 Kista, Sweden Budang-gu, Seongnam-si, Phone: +46-764362005 Gyeonggi-do 13493, Korea. Phone: +82-31-606-9996 Germany 8QLWHG$UDE(PLUDWHV Adams-Lehman-Str. 109, 80797 Munich, Germany Dubai Airport Free Zone Area, Phone: +49-89-3229-9660 :HVW:LQJ2IÀFH: Fax: +49-89-3229-9669 99 P.O. Box: 54931, Dubai, United Arab Emirates. Detmolder Straße 235, Phone: +971-4-2998842 33605 Bielefeld, Germany Fax: +971-4-2998843 Phone: +49-521-305665-0 Fax: +49-521-305665-19 $XVWUDOLD )UDQFH Level 36, Governor Phillip Tower One Farrer Place, Sydney NSW 2000 10 Avenue Franklin D. Roosevelt, Phone: +612-8823-3384 75008 Paris, France. Fax: + 61-451-351-771 Phone: +33-147178190 Fax: +33-147181 97 Italy The Netherlands Galleria Pattari, 2 (Piazza Duomo) 20122, Westerdoksdijk 423, Milan, Italy. 1013 BX, Amsterdam, Phone: +44-118-934-5656 The Netherlands. Fax: +44-118-934-1165 Phone: +31-0204190779

Annual Report 2016-17 260 .3,77HFKQRORJLHV/LPLWHG CIN: L72200PN1990PLC059594 5HJLVWHUHG &RUSRUDWH2IÀFH 5DMLY*DQGKL,QIRWHFK3DUN3KDVHI, MIDC, Hinjawadi, Pune – 411057, India. Tel.: +91–20–6652 5000 | Fax: +91-20-6652 5001 | Email: [email protected] | Website: www.kpit.com

6XEMHFW*UHHQ,QLWLDWLYHLQ&RUSRUDWH*RYHUQDQFH6KDUHKROGHUV·&RQVHQWWRUHFHLYHFRPPXQLFDWLRQLQ(OHFWURQLF)RUP

Dear Shareholder,

Thanking you, For .3,77HFKQRORJLHV/LPLWHG

Sneha Padve Company Secretary

Annual Report 2016-17 261 .3,77(&+12/2*,(6/,0,7(' CIN: L72200PN1990PLC059594 5HJLVWHUHG &RUSRUDWH2IÀFH 5DMLY*DQGKL,QIRWHFK3DUN3KDVH²I, MIDC, Hinjawadi, Pune – 411057, India. Tel.: +91 20 6652 5000 | Fax: +91 20 6652 5001 | Email: [email protected] | Website: www.kpit.com

NOTICE RESOLVED FURTHER THAT any of the key managerial personnel of the Company, be and is hereby authorized, NOTICE is hereby given that the Twenty Sixth Annual General to do all such acts, deeds, matters or things as may be Meeting of KPIT Technologies Limited will be held on necessary or desirable to give effect to this resolution.” Wednesday, August 23, 2017, at 10.30 a.m., at KPIT Auditorium, SDB – II, 35 & 36, Rajiv Gandhi Infotech Park, Phase – I, MIDC, 7RFRQVLGHUDQGLIWKRXJKWÀWWRSDVVZLWKRUZLWKRXW Hinjawadi, Pune – 411057, to transact the following business: PRGLÀFDWLRQ V WKH IROORZLQJ UHVROXWLRQ DV D 63(&,$/ 5(62/87,21 ORDINARY BUSINESS “RESOLVED THAT pursuant to Section 149 and Section 152, read with Schedule IV and all other applicable 1. To receive, consider and adopt the Audited Financial provisions of the Companies Act, 2013 and the Rules 6WDWHPHQWVIRUWKHÀQDQFLDO\HDUHQGHG0DUFK PDGHWKHUHXQGHULQFOXGLQJDQ\VWDWXWRU\PRGLÀFDWLRQ V together with the reports of the Auditors and the report or re-enactment thereof for the time being in force of the Board of Directors thereon. and as per the Securities and Exchange Board of India 2. To receive, consider and adopt the Audited Consolidated (Listing Obligations and Disclosure Requirements) )LQDQFLDO6WDWHPHQWVIRUWKHÀQDQFLDO\HDUHQGHG0DUFK Regulations, 2015, Dr. R. A. Mashelkar (DIN: 00074119), 2017, together with the reports of the Auditors thereon. who was appointed as an Additional Director of the Company and whose term expires at the ensuing Annual 7RGHFODUHGLYLGHQGIRUWKHÀQDQFLDO\HDUHQGHG0DUFK General Meeting, be and is hereby re-appointed as an 2017. ,QGHSHQGHQW'LUHFWRURIWKH&RPSDQ\IRUDSHULRGRIÀYH [The Board has recommended dividend at ` 2.20 per years from April 1, 2017, not liable to retire by rotation. ` equity share of 2/- each (at 110%)]. RESOLVED FURTHER THAT any of the key managerial 4. To appoint a Director in place of Mr. S. B. (Ravi) Pandit personnel of the Company, be and is hereby authorized, (DIN: 00075861), who retires by rotation and being to do all such acts, deeds, matters or things as may be eligible, offers himself for re-appointment. necessary or desirable to give effect to this resolution.” 5. To ratify the appointment of Statutory Auditors. 7RFRQVLGHUDQGLIWKRXJKWÀWWRSDVVZLWKRUZLWKRXW PRGLÀFDWLRQ V WKH IROORZLQJ UHVROXWLRQ DV D 63(&,$/ SPECIAL BUSINESS 5(62/87,21 “RESOLVED THAT pursuant to Section 149 and Section 7RFRQVLGHUDQGLIWKRXJKWÀWWRSDVVZLWKRUZLWKRXW 152, read with Schedule IV and all other applicable PRGLÀFDWLRQ V WKH IROORZLQJ UHVROXWLRQ DV D 63(&,$/ provisions of the Companies Act, 2013 and the Rules 5(62/87,21 PDGHWKHUHXQGHULQFOXGLQJDQ\VWDWXWRU\PRGLÀFDWLRQ V “RESOLVED THAT pursuant to Section 149 and Section or re-enactment thereof, for the time being in force 152, read with Schedule IV and all other applicable and as per the Securities and Exchange Board of India provisions of the Companies Act, 2013 and the Rules (Listing Obligations and Disclosure Requirements) PDGHWKHUHXQGHULQFOXGLQJDQ\VWDWXWRU\PRGLÀFDWLRQ V Regulations, 2015, Mr. Adi Engineer (DIN: 00016320), or re-enactment thereof for the time being in force and who was appointed as an Additional Director of the as per the Securities and Exchange Board of India (Listing Company and whose term expires at the ensuing Annual Obligations and Disclosure Requirements) Regulations, General Meeting, be and is hereby re-appointed as an 2015, Ms. Lila Poonawalla (DIN: 00074392), who was ,QGHSHQGHQW'LUHFWRURIWKH&RPSDQ\IRUDSHULRGRIÀYH appointed as an Additional Director of the Company years from April 1, 2017, not liable to retire by rotation. and whose term expires at the ensuing Annual General RESOLVED FURTHER THAT any of the key managerial Meeting, be and is hereby re-appointed as an Independent personnel of the Company, be and is hereby authorized, 'LUHFWRURIWKH&RPSDQ\IRUDSHULRGRIÀYH\HDUVIURP to do all such acts, deeds, matters or things as may be April 1, 2017, not liable to retire by rotation. necessary or desirable to give effect to this resolution.”

Annual Report 2016-17 262 7RFRQVLGHUDQGLIWKRXJKWÀWWRSDVVZLWKRUZLWKRXW 4. A person can act as a proxy on behalf of not more than PRGLÀFDWLRQ V WKH IROORZLQJ UHVROXWLRQ DV D 63(&,$/ ÀIW\PHPEHUVDQGKROGLQJLQDJJUHJDWHQRWPRUHWKDQWHQ 5(62/87,21 percent of the total share capital of the Company carrying voting rights. A member holding more than ten percent “RESOLVED THAT pursuant to Section 149 and Section of the total share capital of the Company carrying voting 152, read with Schedule IV and all other applicable rights may appoint a single person as a proxy and such provisions of the Companies Act, 2013 and the Rules person shall not act as a proxy for any other shareholder. PDGHWKHUHXQGHULQFOXGLQJDQ\VWDWXWRU\PRGLÀFDWLRQ V or re-enactment thereof for the time being in force 5. Proxies are requested to bring their valid photo identity and as per the Securities and Exchange Board of India proof at the meeting. (Listing Obligations and Disclosure Requirements) 6. The Register of Members and Share Transfer Books of Regulations, 2015, Prof. Alberto Sangiovanni Vincentelli the Company will remain closed from 6DWXUGD\$XJXVW (DIN: 05260121), who was appointed as an Additional WR :HGQHVGD\ $XJXVW ERWK GD\V Director of the Company and whose term expires at the LQFOXGHG ensuing Annual General Meeting, be and is hereby re- appointed as an Independent Director of the Company 7. Members holding shares in physical form are requested to IRUDSHULRGRIÀYH\HDUVIURP$SULOQRWOLDEOHWR communicate immediately any change in address to the retire by rotation. Registrar & Share Transfer Agent of the Company at Link Intime India Private Limited (Attention - Mr. Bhagavant RESOLVED FURTHER THAT any of the key managerial Sawant) Block No. 202, Akshay Complex, Off Dhole Patil personnel of the Company, be and is hereby authorized, Road, Near Ganesh Temple, Pune - 411001, Telephone: to do all such acts, deeds, matters or things as may be +91-20-26161629, E-mail: bhagavant.sawant@linkintime. necessary or desirable to give effect to this resolution.” co.in. Members holding shares in dematerialized form are requested to notify change in address, if any, to their By Order of the Board of Directors respective Depository Participants (DPs). For KPIT Technologies Limited 8. Members desirous of obtaining any information concerning the accounts and operations of the Company Pune Sneha Padve are requested to address their queries to the Chief April 26, 2017 Company Secretary )LQDQFLDO 2IÀFHU DW [email protected] or to the secretarial department at [email protected] so NOTES: as to reach them at least seven days before the date of 1. An Explanatory Statement pursuant to Section 102 of the the meeting, to enable the Company to make available the required information at the meeting, to the extent Companies Act, 2013, is annexed hereto. possible. 2. Pursuant to SS-2 i.e. Secretarial Standard on General 9. The Securities and Exchange Board of India (“SEBI”) Meetings as issued by the Institute of Company Secretaries has made it mandatory to distribute dividends through of India, the route map for reaching the Meeting venue National Electronic Clearing System (NECS). Members showing the prominent landmarks is given elsewhere holding shares in demat form are requested to notify in this Notice. Further, the Company has uploaded the change in their bank account details, if any, to their DPs above route map on its website at (http://www.kpit.com/ immediately and not to send the requests directly to the company/investors/corporate-governance). Company or to its Registrar & Share Transfer Agent.

3. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE Members holding shares in physical form are requested MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND to intimate change in their Bank account details, if any, to AND VOTE ON A POLL INSTEAD OF HIMSELF AND SUCH the Registrar & Share Transfer Agent of the Company. PROXY NEED NOT BE A MEMBER OF THE COMPANY. THE PROXY, IN ORDER TO BE EFFECTIVE, MUST BE DULY FILLED, 10. SEBI has mandated the submission of the Permanent STAMPED, SIGNED AND DEPOSITED AT THE REGISTERED Account Number (PAN) by every participant in the OFFICE OF THE COMPANY NOT LATER THAN 48 HOURS securities market. Members holding shares in electronic BEFORE THE COMMENCEMENT OF THE MEETING. form are, therefore, requested to submit their PAN to

Annual Report 2016-17 263 their DPs. Members holding shares in physical form are Members are requested to note that dividend which required to submit their PAN details to the Company, or are not encashed or claimed within seven years from to its Registrar & Share Transfer Agent. the date of transfer of the dividend to the Company’s Unpaid Dividend Account, will, as per Section 124 of 11. Members are requested to: the Companies Act, 2013, be transferred to the Investor TXRWHWKHLU5HJLVWHUHG)ROLRQXPEHULQFDVHRIVKDUHV Education and Protection Fund (“IEPF”). in physical form and DP ID and Client ID in case of shares in demat form, in their correspondence(s) to Please note that pursuant to Section 124(6) read with the Company. the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer & Refund) Amendment Rules, GLUHFWDOOFRUUHVSRQGHQFHUHODWHGWRVKDUHVLQFOXGLQJ 2016 (“Rules”) as amended from time to time, shares in consolidation of folios, if shareholdings are under respect of such dividend will be transferred in the name multiple folios, to the Registrar & Share Transfer RI ,(3) LQFOXGLQJ DOO EHQHÀWV DFFUXLQJ RQ VXFK VKDUHV $JHQWRIWKH&RPSDQ\RUWRWKH5HJLVWHUHG2IÀFHRI The Company has sent out individual communication to the Company. shareholders whose dividends remain unclaimed for seven EULQJFRSLHVRIWKH$QQXDO5HSRUWDQGWKH$WWHQGDQFH years and published an advertisement in newspapers, 6OLSGXO\ÀOOHGLQDWWKH$QQXDO*HQHUDO0HHWLQJ inviting such shareholders to claim their dividend. The information in respect of such shares is uploaded on the WDNHQRWHWKDW6(%,KDVLQFOXGHGWKHVHFXULWLHVRIWKH website of the Company (https://www.kpit.com/company/ Company in the list of companies for compulsory LQYHVWRUVSROLFLHVUHSRUWVÀOLQJV 0HPEHUV FDQ FODLP settlement of trades in dematerialized form for all the investors effective June 26, 2000. Accordingly, shares EDFN VXFK GLYLGHQG DQG VKDUHV LQFOXGLQJ DOO EHQHÀWV of the Company can be traded only in dematerialized accruing on such shares from the IEPF Authority after form with effect from June 26, 2000. Members following the procedure prescribed in the Rules. holding shares in physical form are, therefore, requested to get their shares dematerialized at the 14. The Company has transferred the unpaid or unclaimed earliest. GLYLGHQGV GHFODUHG XSWR ÀQDQFLDO \HDUV IURP time to time, to the Investor Education and Protection Corporate members intending to send their authorized Fund (IEPF) established by the Central Government. representatives to attend the meeting are requested WR VHQG D FHUWLÀHG FRS\ RI WKH UHVROXWLRQ RI WKH %RDUG 15. All documents referred to in any item of business authorizing their representative to attend and vote on hereinabove will be available for inspection at the their behalf at the meeting. &RPSDQ\·VUHJLVWHUHGRIÀFHRQDOOZRUNLQJGD\VH[FHSW holidays during business hours upto the date of the $FHUWLÀFDWHIURPWKH$XGLWRUVRIWKH&RPSDQ\FHUWLI\LQJ that the Company’s Employee Stock Option Plan 2004, Annual General Meeting. Employee Stock Option Plan 2006, Employee Stock 16. Members interested in availing transport facility (within Option Plan 2014 and Employee Stock Option Plan 2015 are being implemented in accordance with the SEBI (Share Pune) for attending the Annual General Meeting are %DVHG(PSOR\HH%HQHÀWV 5HJXODWLRQVDVDPHQGHG UHTXHVWHGWRUHJLVWHUWKHPVHOYHVDWOHDVWÀYHGD\VEHIRUH from time to time and in accordance with the resolutions the meeting by contacting Ms. Shalini Vishwakarma at passed at the general meeting(s) will be placed before the [email protected] at +91-20-6652-5000, members at the Meeting. Extn. – 2915.

13. Members wishing to claim the unpaid dividend, are 17. Pursuant to the provisions of Section 108 of the Companies requested to correspond with the Registrar & Share Act, 2013, the Rules made thereunder and Regulation Transfer Agent of the Company at Link Intime India Private 44 of the SEBI (Listing Obligations and Disclosure Limited (Attention - Mr. Bhagavant Sawant) Block No. Requirements) Regulations, 2015, the Company is 202, Akshay Complex, Off Dhole Patil Road, Near Ganesh providing an option to the shareholders to exercise their Temple, Pune - 411001. Telephone: +91- 20-26161629, right to vote by electronic means (e-voting). Instructions E-mail: [email protected]. for e-voting are attached to this notice.

Annual Report 2016-17 264 18. The Register of Directors and Key Managerial Personnel He does not hold any membership or chairmanship of any and their shareholding, maintained under Section 170 of committees in other Indian companies. the Companies Act, 2013, will be available for inspection At KPIT, Mr. Pandit is the Chairman of Corporate Social by the members at the Meeting. Responsibility Committee and ESOP Allotment Committee and 19. The Register of Contracts or arrangements in which the a member of Audit Committee, Nomination and Remuneration Directors are interested, maintained under Section 189 of (HR) Committee, Stakeholders Relationship Committee, Risk the Companies Act, 2013, will be available for inspection Management Committee and Innovation Council. by the members at the Meeting. 0U3DQGLWLVFXUUHQWO\KROGLQJRIÀFHDVD:KROHWLPH'LUHFWRU RI WKH &RPSDQ\ IRU D SHULRG RI ÀYH \HDUV IURP $SULO ADDITIONAL INFORMATION ON 2014, subject to retirement by rotation. Since the proposed DIRECTORS SEEKING RE-APPOINTMENT re-appointment is caused by his retirement by rotation and AT THE ANNUAL GENERAL MEETING the members have already approved his remuneration upto [Pursuant to Regulation 36 of the SEBI (Listing Obligations and March 31, 2019, no additional remuneration will be payable to Mr. Pandit consequent upon his re-appointment as a Director. Disclosure Requirements) Regulations, 2015 and Secretarial Standard on General Meetings (“SS-2”), issued by the Institute Mr. Pandit attended all 6 meetings of Board of the Company of Company Secretaries of India and approved by the Central during the year. Government] Mr. Pandit holds 430,500 shares in the Company as on March ,7(012 31, 2017. Mr. S. B. (Ravi) Pandit, aged 67 years, is a Director, Co-founder Mr. Pandit is not related to any other Director or key managerial and Chairman of the Company since inception. He is a gold personnel of the Company or the relatives of Directors or key medalist and fellow member of the Institute of Chartered managerial personnel. Accountants of India and an associate member of the Institute of Cost Accountants of India. With a Master’s degree from Mr. Pandit will be deemed to be concerned or interested in the Sloan School of Management, MIT, Cambridge, USA, he proposed resolution to the extent of the remuneration that the KDV H[WHQVLYH H[SHULHQFH RI RYHU IRXU GHFDGHV LQ WKH ÀHOGV RIÀFHRID:KROHWLPH'LUHFWRUPD\FDUU\ of information technology, corporate strategy formulation None of our Directors or key managerial personnel or relatives and management consulting, accounting and audit. From of Directors or key managerial personnel are concerned or his accounting roots, Mr. Pandit, along with his team, built interested in the proposed resolution. KPIT into a global technology company, with leadership in VKDUSO\GHÀQHGIRFXVDUHDV+HKDVSUHYLRXVO\ZRUNHGDVDQ ,7(012 Audit Professional at Alexander Grant & Co., USA, following Ms. Lila Poonawalla, aged 72 years, was appointed as a which he became a partner at Kirtane & Pandit LLP, Chartered Director since May 30, 2008 and as an Independent Director Accountants. Mr. Pandit possesses 42 years of experience. of the Company pursuant to the provisions of Section 149 of the Companies Act, 2013, with effect from April 1, 2014, for a The details of his directorships in other Indian companies are period of three years. as follows:

1DPHRIWKHFRPSDQ\ 'HVLJQDWLRQ Ms. Lila Poonawalla is a Mechanical Engineer and was awarded the Padmashree in 1989 in recognition of her exemplary Finolex Cables Limited Director contribution to the world of Engineering and Industry. She was K & P Capital Services Limited Director the Chairperson and Managing Director of Alfa Laval-Tetra Pak KP Corporate Solutions Limited Director ,QGLDDQGZDVWKHÀUVWZRPDQWRKROGWKHSRVWRI0DQDJLQJ Kirtane & Pandit Consulting Private Limited Director Director in the Alfa Laval group. She was also a member of Kirtane Pandit Foundation Private Limited Director WKH 6FLHQWLÀF $GYLVRU\ %RDUG RI WKH &HQWUDO &DELQHW 6$&& and Chairperson of the Herbal and Floriculture Taskforce of K & P Management Services Private Limited Director SAC-C. She has been on the governing body of organizations Aga Khan Rural Support Programme (India) Director like the Confederation of Indian Industries (CII) and Technology

Annual Report 2016-17 265 Information Forecasting and Assessment Council (TIFAC) of Nomination and Remuneration (HR) Committee, Quality formed by the Government of India. Actively involved in social Council Committee, and Innovation Council. initiatives, she is on the board of trustees of two Pune-based NGOs. In 1994, she started the ‘Lila Poonawalla Foundation’ to Ms. Poonawalla attended all 6 meetings of Board of the promote education among women. Ms. Poonawalla possesses Company during the year. 50 years of experience. Ms. Poonawalla holds 130,000 shares in the Company as on The Board of Directors of the Company, on the recommendation March 31, 2017. of the Nomination and Remuneration (HR) Committee, in its As per the provisions of the Companies Act, 2013, the re- meeting held on February 17, 2017, re-appointed Ms. Lila appointment of Independent Director(s) of the Company shall Poonawalla as an Additional & Independent Director w.e.f. be approved at the meeting of shareholders. Accordingly, it is $SULODQGVKHKROGVRIÀFHWLOOWKHGDWHRIWKHHQVXLQJ proposed to approve the re-appointment of Ms. Poonawalla Annual General Meeting and is eligible for re-appointment. as an Independent Director in the Annual General Meeting for The details of her directorships and membership of committees DSHULRGRIÀYH\HDUVIURP$SULOQRWOLDEOHWRUHWLUHE\ in other Indian companies are as follows: rotation. Ms. Poonawalla will be entitled to receive sitting fees and 1DPHRIWKHFRPSDQ\ 'HVLJQDWLRQ commission in the same manner as any other Independent Blossom Industries Limited Director Director is entitled to. The terms and conditions of Bajaj Allianz General Insurance Company Limited Director appointment are given more elaborately in the appointment Bajaj Allianz Life Insurance Company Limited Director letter of Independent Directors displayed on the website of VE Commercial Vehicles Limited Director the Company at (http://www.kpit.com/company/investors/ Impact Automotive Solutions Limited Director corporate-governance). Nihilent Technologies Limited Director The Company has received a notice in writing from a member Pragati Leadership Institute Private Limited Director along with a deposit of requisite amount under Section 160 NobleTek PLM Solutions Private Limited Director of the Companies Act, 2013, proposing Ms. Poonawalla’s FDQGLGDWXUHIRUWKHRIÀFHRID'LUHFWRURIWKH&RPSDQ\ Name of the 1DPHRIWKHFRPSDQ\ &KDLUSHUVRQ Ms. Lila Poonawalla has submitted a declaration of her committee 0HPEHU independent status as required under Section 149 of the Impact Automotive $XGLW&RPPLWWHH Chairperson Companies Act, 2013, which has been taken on record by the Solutions Limited 1RPLQDWLRQDQG Member Board of Directors of the Company. In the opinion of the Board Remuneration RI'LUHFWRUV0V3RRQDZDOODIXOÀOOVWKHFRQGLWLRQVVSHFLÀHGLQ Committee the Companies Act, 2013 and the rules made thereunder and Bajaj Allianz General $XGLW&RPPLWWHH Member the SEBI (Listing Obligations and Disclosure Requirements) Insurance Company 1RPLQDWLRQDQG Member Regulations, 2015, for being appointed as an Independent Limited Remuneration Director and Ms. Lila Poonawalla is independent of the Committee management. Bajaj Allianz Life $XGLW&RPPLWWHH Member &RQVLGHULQJ WKH TXDOLÀFDWLRQV H[SHULHQFH H[SHUWLVH WKH Insurance Company 1RPLQDWLRQDQG Member accomplishments alongwith the performance evaluation as Limited Remuneration an Independent Director of Ms. Lila Poonawalla, the Board of Committee Directors is of the view that appointment of Ms. Lila Poonawalla NobleTek PLM Solutions Audit Committee Member DV DQ ,QGHSHQGHQW 'LUHFWRU ZLOO EHQHÀW WKH &RPSDQ\ DQG Private Limited recommends the special resolution set forth as Item No. 6 of Blossom Industries Remuneration Member the Notice for the approval of the shareholders. Limited Committee Ms. Lila Poonawalla is not related to any other Director or key At KPIT, Ms. Poonawalla is the Chairperson of the Audit managerial personnel of the Company or relatives of Directors Committee and Risk Management Committee and a member or key managerial personnel.

Annual Report 2016-17 266 Ms. Lila Poonawalla will be deemed to be concerned or 1DPHRIWKHFRPSDQ\ 'HVLJQDWLRQ interested in the proposed resolution to the extent of the TAL Manufacturing Solutions Limited Director UHPXQHUDWLRQWKDWWKHRIÀFHRIDQ,QGHSHQGHQW'LUHFWRUPD\ carry. Piramal Enterprises Limited Director Vyome Bioscience Private Limited Director None of our Directors or key managerial personnel or relatives Sakal Papers Private Limited Director of Directors or key managerial personnel are concerned or interested in the proposed resolution. Invictus Oncology Private Limited Director International Longevity Centre - India Director ,7(012 (Section 8 Company) Dr. R. A. Mashelkar, aged 74 years, was appointed as a Director *KDUGD6FLHQWLÀF5HVHDUFK)RXQGDWLRQ Director since May 30, 2008 and as an Independent Director of the (Section 8 Company) Company pursuant to the provisions of Section 149 of the Gharda Medical & Advanced Technologies Director Companies Act, 2013, with effect from April 1, 2014, for a Foundation period of three years.

Dr. R. A. Mashelkar, a Chemical Engineer by profession, 1DPHRIWKHFRPSDQ\ Name of the Chairman / has been hugely instrumental in propagating a culture of committee 0HPEHU innovation and balanced intellectual property rights regime for Piramal Enterprises $XGLW 5LVN Member RYHUDGHFDGH+HLVWKH&KDQFHOORURI$FDGHP\RI6FLHQWLÀF Limited Committee & Innovative Research. He was the third Indian engineer Tata Motors Limited 6DIHW\+HDOWK Chairman to have been elected as a Fellow of Royal Society (FRS), and Environment /RQGRQWKHÀUVW,QGLDQ3UHVLGHQWRIWKH,QVWLWXWHRI&KHPLFDO (SHE) Committee (QJLQHHUV8.DQGWKHÀUVW,QGLDQWREHWKH)RUHLJQ)HOORZRI Australian Technological Science and Engineering Academy &RUSRUDWH6RFLDO Chairman (2008). Twenty-eight universities have honoured him with Responsibility honorary doctorates, which include Universities of London, (CSR) Committee Salford, Pretoria, Wisconsin and Delhi. Dr. Mashelkar served $XGLW&RPPLWWHH Member DVWKH'LUHFWRU*HQHUDORI&RXQFLORI6FLHQWLÀFDQG,QGXVWULDO 1RPLQDWLRQDQG Member Research (CSIR). He was also the President of Indian National Remuneration Science Academy (2005-2007). Dr. Mashelkar has won over 50 Committee awards and medals at national and international levels and was honoured by the President of India with Padma Vibushan 5LVN Member award in 2014. Earlier, he was conferred Padma Shri award Management (1991) and Padma Bhushan award (2000), in recognition of Committee his contribution to nation building. Dr. Mashelkar possesses Reliance Industries $XGLW&RPPLWWHH Member 48 years of experience. Limited &RUSRUDWH6RFLDO Member The Board of Directors of the Company, on the recommendation Responsibility of the Nomination and Remuneration (HR) Committee, in its (CSR) Committee meeting held on February 17, 2017, re-appointed Dr. R. A. 5HPXQHUDWLRQ Member Mashelkar as an Additional & Independent Director w.e.f. April Committee DQGKHKROGVRIÀFHWLOOWKHGDWHRIWKHHQVXLQJ$QQXDO TAL Manufacturing Nomination and Member General Meeting and is eligible for re-appointment. Solutions Limited Remuneration Committee The details of his directorships and membership of committees in other Indian companies are as follows: At KPIT, Dr. Mashelkar is the Chairman of Stakeholder 1DPHRIWKHFRPSDQ\ 'HVLJQDWLRQ Relationship Committee and Innovation Council. Reliance Industries Limited Director Dr. Mashelkar attended 4 meetings of Board of the Company Thermax India Limited Director during the year. Tata Motors Limited Director

Annual Report 2016-17 267 Dr. Mashelkar holds 56,000 shares in the Company as on March None of our Directors or key managerial personnel or relatives 31, 2017. of Directors or key managerial personnel are concerned or interested in the proposed resolution. As per the provisions of the Companies Act, 2013, the re- appointment of independent director(s) of the Company shall ,7(012 be approved at the meeting of shareholders. Accordingly, it is Mr. Adi Engineer, aged 79 years, was appointed as a Director proposed to approve the re-appointment of Dr. Mashelkar as since October 22, 2013 and as an Independent Director of an Independent Director in the Annual General Meeting for a the Company pursuant to the provisions of Section 149 of SHULRGRIÀYH\HDUVIURP$SULOQRWOLDEOHWRUHWLUHE\ the Companies Act, 2013, with effect from April 1, 2014, for a rotation. period of three years.

Dr. Mashelkar will be entitled to receive sitting fees and Mr. Adi Engineer is a Civil Engineer and was associated with commission in the same manner as any other Independent Tata group of companies for nearly three decades. Mr. Engineer Director is entitled to. The terms and conditions of was Managing Director of Tata Power Limited. In that role, he appointment are given more elaborately in the appointment transformed Tata Power by successfully launching various new letter of Independent Directors displayed on the website of LQLWLDWLYHVZKLFKOHGWRLPSURYHGSURÀWDELOLW\7DWD3RZHUDOVR the Company at (http://www.kpit.com/company/investors/ received “Good Corporate Citizen” award during his tenure. Mr. corporate-governance). Engineer possesses 57 years of experience.

The Company has received a notice in writing from a member The Board of Directors of the Company, on the recommendation along with a deposit of requisite amount under Section 160 of the Nomination and Remuneration (HR) Committee, in of the Companies Act, 2013, proposing Dr. R. A. Mashelkar’s its meeting held on February 17, 2017, re-appointed Mr. Adi FDQGLGDWXUHIRUWKHRIÀFHRID'LUHFWRURIWKH&RPSDQ\ Engineer as an Additional & Independent Director w.e.f. April DQGKHKROGVRIÀFHWLOOWKHGDWHRIWKHHQVXLQJ$QQXDO Dr. R. A. Mashelkar has submitted a declaration of his General Meeting and is eligible for re-appointment. independent status as required under Section 149 of the Companies Act, 2013, which has been taken on record by The details of his directorships and membership of committees the Board of Directors of the Company. In the opinion of in other Indian companies are as follows: WKH %RDUG RI 'LUHFWRUV 'U 0DVKHONDU IXOÀOOV WKH FRQGLWLRQV VSHFLÀHG LQ WKH &RPSDQLHV $FW DQG WKH UXOHV PDGH 1DPHRIWKHFRPSDQ\ 'HVLJQDWLRQ thereunder and the SEBI (Listing Obligations and Disclosure Finolex Cables Limited Director Requirements) Regulations, 2015, for being appointed as an Impact Automotive Solutions Limited Director Independent Director and Dr. R. A. Mashelkar is independent of the management. 1DPHRIWKHFRPSDQ\ Name of the Chairman / &RQVLGHULQJ WKH TXDOLÀFDWLRQV H[SHULHQFH H[SHUWLVH WKH committee 0HPEHU accomplishments alongwith the performance evaluation as Impact Automotive 1RPLQDWLRQDQG Chairman an Independent Director of Dr. R. A. Mashelkar, the Board of Solutions Limited Remuneration Directors is of the view that appointment of Dr. R. A. Mashelkar Committee DV DQ ,QGHSHQGHQW 'LUHFWRU ZLOO EHQHÀW WKH &RPSDQ\ DQG $XGLW&RPPLWWHH Member recommends the special resolution set forth as Item No. 7 of the Notice for the approval of the shareholders. At KPIT, Mr. Engineer is the Chairman of the Nomination and Remuneration (HR) Committee and a member of the Audit Dr. Mashelkar is not related to any other Director or key Committee, Corporate Social Responsibility Committee and managerial personnel of the Company or relatives of Directors Risk Management Committee. or key managerial personnel. Mr. Engineer attended all 6 meetings of Board of the Company Dr. R. A. Mashelkar will be deemed to be concerned or interested during the year. in the proposed resolution to the extent of the remuneration WKDWWKHRIÀFHRIDQ,QGHSHQGHQW'LUHFWRUPD\FDUU\ Mr. Engineer does not hold any shares in the Company as on March 31, 2017.

Annual Report 2016-17 268 As per the provisions of the Companies Act, 2013, the re- ,7(012 appointment of independent director(s) of the Company shall Prof. Alberto Sangiovanni Vincentelli, aged 69 years, was be approved at the meeting of shareholders. Accordingly, it is appointed as a Director since April 30, 2012 and as an proposed to approve the re-appointment of Mr. Engineer as Independent Director of the Company pursuant to the an Independent Director in the Annual General Meeting for a provisions of Section 149 of the Companies Act, 2013, with SHULRGRIÀYH\HDUVIURP$SULOQRWOLDEOHWRUHWLUHE\ effect from April 1, 2014, for a period of three years. rotation. Prof. Alberto Sangiovanni Vincentelli is an Engineer and was a Mr. Engineer will be entitled to receive sitting fees and co-founder of Cadence and Synopsys, two leading companies commission in the same manner as any other independent in the area of Electronic Design Automation. He is the Chief director is entitled to. The terms and conditions of Technology Adviser of Cadence. Prof. Alberto is a member appointment are given more elaborately in the appointment of the Board of Directors of Cadence. He was a member of letter of Independent Directors displayed on the website of the HP Strategic Technology Advisory Board. He is currently the Company at (http://www.kpit.com/company/investors/ a member of the Science and Technology Advisory Board corporate-governance). of General Motors, as well as a member of the Technology Advisory Council of United Technologies Corporation. He is The Company has received a notice in writing from a member also a Professor with University of California, Berkeley, and along with a deposit of requisite amount under Section 160 Department of Electrical Engineering & Computer Sciences. of the Companies Act, 2013, proposing Mr. Adi Engineer’s Prof. Alberto possesses 46 years of experience. FDQGLGDWXUHIRUWKHRIÀFHRID'LUHFWRURIWKH&RPSDQ\ The Board of Directors of the Company, on the recommendation Mr. Adi Engineer has submitted a declaration of his independent of the Nomination and Remuneration (HR) Committee, in its status as required under Section 149 of the Companies Act, meeting held on February 17, 2017, re-appointed Prof. Alberto 2013, which has been taken on record by the Board of Directors Sangiovanni Vincentelli as an Additional & Independent of the Company. In the opinion of the Board of Directors, Mr. 'LUHFWRU ZHI $SULO DQG KH KROGV RIÀFH WLOO WKH GDWH (QJLQHHU IXOÀOOV WKH FRQGLWLRQV VSHFLÀHG LQ WKH &RPSDQLHV of the ensuing Annual General Meeting and is eligible for re- Act, 2013 and the rules made thereunder and the SEBI (Listing appointment. Obligations and Disclosure Requirements) Regulations, 2015, for being appointed as an Independent Director and Mr. Adi Prof. Alberto does not hold any directorship and membership Engineer is independent of the management. of committees in other Indian companies.

&RQVLGHULQJ WKH TXDOLÀFDWLRQV H[SHULHQFH H[SHUWLVH WKH At KPIT, Prof. Alberto is a member of the Quality Council accomplishments alongwith the performance evaluation as Committee and Innovation Council. an Independent Director of Mr. Adi Engineer, the Board of Directors is of the view that appointment of Mr. Adi Engineer Prof. Alberto Sangiovanni Vincentelli attended 5 meetings of DV DQ ,QGHSHQGHQW 'LUHFWRU ZLOO EHQHÀW WKH &RPSDQ\ DQG Board of the Company during the year. recommends the special resolution set forth as Item No. 8 of the Notice for the approval of the shareholders. Prof. Alberto does not hold any shares in the Company as on March 31, 2017. Mr. Engineer is not related to any other Director or key managerial personnel of the Company or relatives of Directors As per the provisions of the Companies Act, 2013, the re- or key managerial personnel. appointment of independent director(s) of the Company shall be approved at the meeting of shareholders. Accordingly, it Mr. Adi Engineer will be deemed to be concerned or interested is proposed to approve the re-appointment of Prof. Alberto in the proposed resolution to the extent of the remuneration Sangiovanni Vincentelli as an Independent Director in the WKDWWKHRIÀFHRIDQLQGHSHQGHQWGLUHFWRUPD\FDUU\ $QQXDO*HQHUDO0HHWLQJIRUDSHULRGRIÀYH\HDUVIURP$SULO 2017, not liable to retire by rotation. None of our Directors or key managerial personnel or relatives of Directors or key managerial personnel are concerned or Prof. Alberto will be entitled to receive sitting fees and interested in the proposed resolution. commission in the same manner as any other independent director is entitled to. The terms and conditions of

Annual Report 2016-17 269 appointment are given more elaborately in the appointment Requirements) Regulations, 2015 and the Secretarial letter of Independent Directors displayed on the website of Standards issued by the Institute of Company Secretaries of the Company at (http://www.kpit.com/company/investors/ India, the Company is pleased to provide members facility corporate-governance). to exercise their right to vote on resolutions proposed to be considered at the Annual General Meeting (AGM) by The Company has received a notice in writing from a member electronic means and the business may be transacted along with a deposit of requisite amount under Section 160 of through e-voting. The facility of casting the votes by the Companies Act, 2013, proposing Prof. Alberto Sangiovanni the members using an electronic voting system from a Vincentelli’s candidature for the office of a Director of the place other than venue of the AGM (“remote e-voting” Company. or “e-voting”) will be provided by the National Securities Depository Limited (NSDL). Prof. Alberto has submitted a declaration of his independent status as required under Section 149 of the Companies Act, II. The facility for casting the vote through ballot paper 2013, which has been taken on record by the Board of Directors shall be made available at the AGM and the members of the Company. In the opinion of the Board of Directors, Prof. attending the meeting who have not cast their vote by Alberto Sangiovanni Vincentelli fulfills the conditions specified remote e-voting shall be able to exercise their right at the in the Companies Act, 2013 and the rules made thereunder meeting through ballot paper. and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for being appointed as an Independent III. The members who have cast their vote by remote e-voting Director and Prof. Alberto is independent of the management. prior to the AGM may also attend the AGM but shall not be entitled to cast their vote again. Considering the qualifications, experience, expertise, the accomplishments alongwith the performance evaluation as an IV. The remote e-voting period commences on Friday, Independent Director of Prof. Alberto Sangiovanni Vincentelli, August 18, 2017 (09:00 a.m.) and ends on Tuesday, August the Board of Directors is of the view that appointment of Prof. 22, 2017 (05:00 p.m.). During this period, members of the Alberto Sangiovanni Vincentelli as an Independent Director will Company, holding shares either in physical form or in benefit the Company and recommends the special resolution dematerialized form, as on the cut-off date i.e. Wednesday, set forth as Item No. 9 of the Notice for the approval of the August, 16, 2017, may cast their vote by remote e-voting. shareholders. The remote e-voting shall be disabled by NSDL after the remote e-voting period ends. Once the vote is cast, the Prof. Alberto is not related to any other Director or key Member shall not be allowed to change it subsequently. managerial personnel of the Company or relatives of Directors or key managerial personnel. V. The process and manner for remote e-voting are as under:

Prof. Alberto will be deemed to be concerned or interested in A. In case a Member receives an e-mail from NSDL [for the proposed resolution to the extent of the remuneration that members whose e-mail IDs are registered with the the office of an independent director may carry. Company / Depository Participant(s)]:

None of our Directors or key managerial personnel or relatives (i) Open e-mail and open PDF file viz; “remote of Directors or key managerial personnel are concerned or e-voting.pdf” with your Client ID or Folio No. as interested in the proposed resolution. password. The said PDF file contains your user ID and password / PIN for remote e-voting. INSTRUCTIONS FOR ELECTRONIC Please note that the password is an initial VOTING BY MEMBERS password. I. In compliance with the provisions of Section 108 of NOTE: Shareholders already registered with the Companies Act, 2013, Rule 20 of the Companies NSDL for e-voting will not receive the PDF file (Management and Administration) Rules, 2014, as “remote e-voting.pdf”. amended by the Companies (Management and (ii) Launch internet browser by typing the following Administration) Amendment Rules, 2015 and Regulation URL: https://www.evoting.nsdl.com/. 44 of the SEBI (Listing Obligations and Disclosure

Annual Report 2016-17 270 (iii) Click on Shareholder - Login. VI. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Members and remote e-voting user (iv) Put user ID and password as initial password / manual for Members available under the downloads PIN noted in step (i) above. Click Login. section of www.evoting.nsdl.com or contact Mr. Amit (v) When password change menu appears, please Vishal, Senior Manager at [email protected] or evoting@ change the password / PIN with new password nsdl.co.in or call on toll free no.: 1800-222-990. of your choice with minimum 8 digits / characters or combination thereof. It is strongly VII. If you are already registered with NSDL for remote recommended not to share your password with e-voting, then you can use your existing user ID and any other person and take utmost care to keep password / PIN for casting your vote. your password confidential. NOTE: (vi) Once the home page of remote e-voting opens, Shareholders who forgot the User Details / Password can click on “remote e-voting: Active Voting Cycles”. use “Forgot User Details/Password?” or “Physical User Reset (vii) Select “EVEN” of “KPIT Technologies Limited”. Password?” option available on www.evoting.nsdl.com. (viii) Now Cast Vote page opens. In case Shareholders are holding shares in demat mode, USER-ID is the combination of (DPID+ClientID). (ix) Cast your vote by selecting appropriate option and click on “Submit” and also “Confirm” when In case Shareholders are holding shares in physical mode, prompted. USER-ID is the combination of (EVEN No+Folio No). (x) Upon confirmation, the message “Vote cast VIII. You can also update your mobile number and e-mail ID in successfully” will be displayed. the user profile details of the folio which may be used for (xi) Once you have voted on the resolution, you will sending future communication(s). not be allowed to modify your vote. IX. The voting rights of members shall be in proportion to (xii) Institutional shareholders (i.e. other than the number of shares held by the member as on the cut- individuals, HUF, NRI, etc.) are required to send off date, i.e. Wednesday, August, 16, 2017. scanned copy (PDF / JPG format) of the relevant Board Resolution / Authority letter, etc. together X. Any person, who acquires shares of the Company and with attested specimen signature of the duly becomes a member of the Company after dispatch of authorized signatory(ies) who are authorized the notice and holds shares as of the cut-off date i.e. to vote, to the Scrutinizer through e-mail to Wednesday, August, 16, 2017, may obtain the login ID [email protected] with a copy marked to and password by sending a request at [email protected] [email protected]. or [email protected].

B. In case a Member receives physical copy of the However, if you are already registered with NSDL for Notice of AGM [for members whose e-mail IDs remote e-voting, then you can use your existing user are not registered with the Company / Depository ID and password for casting your vote. If you forget Participant(s)]: your password, you can reset your password by using (i) Initial password is provided at the bottom of the “Forgot User Details/Password?” or “Physical User Reset Attendance Slip for the AGM in the following Password?” option available on www.evoting.nsdl.com or manner: contact NSDL at the following toll free no.: 1800-222-990. EVEN (Electronic USER ID PASSWORD / XI. A member may participate in the AGM even after Voting Event PIN exercising his right to vote through remote e-voting but Number) shall not be allowed to vote again at the AGM.

XII. A person, whose name is recorded in the register (ii) Please follow all steps from Sr. No. (ii) to Sr. No. of members or in the register of beneficial owners (xii) above, to cast vote. maintained by the depositories as on the cut-off date only

Annual Report 2016-17 271 shall be entitled to avail the facility of remote e-voting as and thereafter unblock the votes cast through remote well as voting at the AGM through ballot paper. e-voting in the presence of at least two witnesses not in the employment of the Company and shall make, not XIII. The Company has appointed Mr. Jayavant Bhave, later than three days of the conclusion of the AGM, a Proprietor, J. B. Bhave & Co., Practicing Company consolidated scrutinizer’s report of the total votes cast in Secretaries, as the Scrutinizer to scrutinize the e-voting favor or against, to the Chairman or a person authorized process and ballot process in a fair and transparent by him in writing, who shall countersign the same and manner. declare the result of the voting forthwith.

XIV. The Chairman will, at the end of discussion on the XVI. The Results declared alongwith the report of the Scrutinizer resolutions on which voting is to be held, allow voting shall be placed on the website of the Company (www.kpit. by use of “Ballot Paper” for all those members who are com) and on the website of NSDL (www.evoting.nsdl. present at the AGM and have not cast their votes by com) immediately after the declaration of result by the availing the remote e-voting facility. Chairman or a person authorized by him in writing. The results shall also be immediately forwarded to the stock XV. The Scrutinizer shall, after the conclusion of voting exchanges where the shares of the Company are listed. DW WKH $*0 ÀUVW FRXQW WKH YRWHV FDVW DW WKH PHHWLQJ

Annual Report 2016-17 272 Road map of AGM venue - KPIT Technologies Limited

.3,77(&+12/2*,(6/,0,7(' CIN: L72200PN1990PLC059594 5HJLVWHUHG &RUSRUDWH2IÀFH 5DMLY*DQGKL,QIRWHFK3DUN3KDVH²I, MIDC, Hinjawadi, Pune – 411057, India. Tel.: +91 20 6652 5000 | Fax: +91 20 6652 5001 | Email: [email protected] | Website: www.kpit.com PROXY FORM [Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]

Name of the member(s):

Registered address:

E-mail Id:

Folio No / Client Id:

DP ID:

I / We, being the member(s) of ______shares of the above named Company, hereby appoint:

1) Name: ______Email Id: ______Address: ______Signature: ______or failing him / her

2) Name: ______Email Id: ______Address: ______Signature: ______or failing him / her

3) Name: ______Email Id: ______Address: ______Signature: ______as my / our proxy to attend and vote (on a poll) for me / us and on my / our behalf at the 26th Annual General Meeting of the Company to be held on Wednesday, August 23, 2017 at 10.30 a.m. at KPIT Auditorium, SDB-II, 35 & 36, Rajiv Gandhi Infotech Park, Phase - I, MIDC, Hinjawadi, Pune – 411057 and at any adjournment thereof in respect of such resolutions as are listed below: Resolutions: 7RUHFHLYHFRQVLGHUDQGDGRSWWKH$XGLWHG)LQDQFLDO6WDWHPHQWVIRUWKHÀQDQFLDO\HDUHQGHG0DUFKWRJHWKHUZLWKWKHUHSRUWVRIWKH Auditors and the report of the Board of Directors thereon. 7RUHFHLYHFRQVLGHUDQGDGRSWWKH$XGLWHG&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVIRUWKHÀQDQFLDO\HDUHQGHG0DUFKWRJHWKHUZLWKWKH reports of the Auditors thereon. 7RGHFODUHGLYLGHQGIRUWKHÀQDQFLDO\HDUHQGHG0DUFK 4. To appoint a Director in place of Mr. S. B. (Ravi) Pandit, who retires by rotation and being eligible, offers himself for re-appointment. 5. To ratify the appointment of Statutory Auditors. 6. To re-appoint Ms. Lila Poonwalla as an Independent Director. 7. To re-appoint Dr. R. A. Mashelkar as an Independent Director. 8. To re-appoint Mr. Adi Engineer as an Independent Director. 9. To re-appoint Prof. Alberto Sangiovanni Vincentelli as an Independent Director.

Signed this ______day of ______2017. $IÀ[ Revenue Signature of the shareholder Stamp

Signature of proxy holder(s) 1RWH A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote on a poll instead of himself and such SUR[\QHHGQRWEHDPHPEHURIWKH&RPSDQ\7KHSUR[\LQRUGHUWREHHIIHFWLYHPXVWEHGXO\ÀOOHGVWDPSHGVLJQHGDQGGHSRVLWHGDWWKHUHJLVWHUHG RIÀFHRIWKH&RPSDQ\QRWODWHUWKDQKRXUVEHIRUHWKHFRPPHQFHPHQWRIWKHPHHWLQJ

Notes Notes Notes Notes Corporate Leadership Team

S. B. (Ravi) Pandit Chairman & Group CEO

Kishor Patil CEO & Managing Director

Sachin Tikekar President & Board Member

Pawan Sharma CEO - Solutions & Services

Pankaj Sathe Head - Europe and CMO

Anup Sable Chief Technology Officer

Anil Patwardhan Chief Financial Officer

Abhishek Sinha Chief People and Operations Officer 35 & 36, Rajiv Gandhi Infotech Park, Phase - I, MIDC, Hinjawadi, Pune - 411057, India. Phone: +91-20-6652 5000 | Fax: +91-20-6652 5001 [email protected]