Robust. Relevant. Responsive
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Robust. Relevant. Responsive. Robust. Relevant. Responsive. Strengthening Relations. Ensuring Stability. Zensar Technologies Ltd Annual Report 2019-20 About RPG Group Established in 1979, the RPG Group is a diversified conglomerate with interests in the areas of infrastructure, tyres, information technology, pharmaceuticals, energy and plantations. Founded by Dr. R P Goenka, the group’s lineage dates back to the early 19th century. Today, the group has several companies in diverse sectors and the most prominent among them being Zensar Technologies, CEAT, KEC International, and RPG Life Sciences. Built on a solid foundation of trust and tradition, the RPG name is synonymous with steady growth and high standards of transparency, ethics and governance. hello happiness Happiness is intrinsic to life at RPG. Be it in our product innovations, business challenges, people policies or in our community outreach programmes. Our Vision tenets clearly outline the path we collectively traverse – to be an organisation where dreams are not constrained by fences, and each one of us is encouraged to reach for happiness that is within our grasp. “hello happiness”, is a bold statement that helps us open our doors to a world of opportunities and possibilities; a statement that signifies our intent to touch and enrich the lives of others, and work collectively towards a common goal that makes each of us rise beyond our limitations. To remain relevant and responsive, we are resolutely focused on unveiling opportunities amidst challenges. Underpinned with myriad opportunities for growth and development, challenges are inherent to success. As we tide Index through unprecedented events, adapting and adjusting to changing norms, we continue to unearth Corporate Overview solutions that ensure stability and strengthen relations. Zensar at a Glance ---------------- 2 Key Financial Metrics ------------ 4 Strategic Highlights -------------- 5 Zensar’s robust attitude and relentless pursuit of delivering Chairman’s Message ------------- 6 groundbreaking digital transformations have helped reinvent CEO’s Message -------------------- 8 strategies that foster intelligent solutions. With an overwhelming Board of Directors ----------------- 10 need to continuously embrace dynamic yet sustainable Leadership Team ------------------ 11 solutions, we are establishing unique capabilities to address Robust ------------------------------- 12 challenges and ensure long-term transformations. Relevant ----------------------------- 13 Resting on innovative and sustainable solutions we endeavour to Responsive -------------------------- 14 ensure relevance, creating a favourable eco-system for new-age Testament to Our Commitment 16 processes like AI to thrive and succeed. While remaining relevant An Empowered Workforce ------ 18 is the need of the hour, building responsive solutions hold the Creating Value Beyond key to success in an agile and unpredictable environment. As we Business ----------------------------- 20 acknowledge novel challenges and derive exceptional solutions to Innovate & Thrive in stay in touch with our partners, we are enthused to elucidate answers Enterprise 4.0 ----------------------- 22 that are Robust, Relevant and Responsive. Notice and Statutory Reports Notice --------------------------------- 25 Board’s Report & Annexures --------------------------- 33 Financial Statements Standalone Financial Statements -------------------------- 119 Scan this code with a QR reader app Consolidated Financial on your smartphones or tablets and Statements -------------------------- know more about us. 190 2 ZENSAR TECHNOLOGIES LTD ANNUAL REPORT 2019-20 Zensar at a Glance We are a ‘Living’ digital and technology company, offering reliable and measurable digital solutions that help transform the digital environment of enterprises. We are a part of 3 USD billion RPG Enterprises Group and the 40 USD billion APAX Portfolio Company. Zensar Technologies is one of the very few technology companies globally, to be publicly listed on stock exchange(s) for over 56 years. Who we are Operating statistics Zensar Technologies, a leading digital In our endeavour to drive digital solutions and technology services transformation on a large scale with company, continues to deliver minimum human intervention, we 9524 excellence and superior customer embarked on the ‘Living AI’ journey Employees across all offices as on satisfaction through its diverse service to help our clients outperform and be March 31, 2020 offerings. At a time when organisations future-ready. In the last few years, a are looking for elevated experiences plethora of emerging technologies in a digital landscape, our expertise, like Artificial Intelligence (AI) have strong innovation capabilities and gained significant prominence with + credible investment in building digital multiple opportunities to deliver value 25 solutions have helped us emerge as a to the end-user. Zensar, has pivoted Offices across the globe trusted partner for our customers. its next-level growth on the ‘Living AI’ philosophy to provide best-in-class Building on the foundation of digital solutions to our customers, enabling solutions and technologies, we them to transform multiple business 10+ have today excelled in delivering functions. convenience and efficiency to offer Countries of presence measurable business outcomes. Our approach to Return on Digital ® With New and Exponential Technologies (RoD NeXT), along with the continuous 280+ advancement of newer digital offerings Read more about our Active customers that are in sync with our proprietary ‘Living AI’ philosophy solutions, have empowered customers on page (13) Digital revenues form across the globe. 52.4% of the total revenue for FY20 15.2% 74.7% UK and Europe USA Where we operate Headquartered in Pune (India), Zensar serves leading multinationals 10.1% and global companies with offices in South Africa India, UK, Europe, South Africa and the US. ZENSAR AT A GLANCE CORPORATE OVERVIEW 3 What we do Services At Zensar, we strive to create a digital eco-system that delivers excellence with digital tools embedded in Digital Digital Digital Digital Digital platforms and processes, and Infrastructure Experience Workplace Operations Enterprise adopted by our people. In our Management Services Security mission to transform customer experiences across industries, domains and technologies, we continue to first implement tools within our eco-system and then take them to our AI & DevOps and Modernisation Cloud Enterprise customers. In the process, Analytics Agile Applications Applications we learn, adapt and ensure that we deliver a complete suite of end-to-end solutions, integrated to accelerate the Solutions digital transformation journey of our clients. Wired Wired Intelligent User First ZenCare Autonomous Experience SOC Modern Cloud Workplace Connected Digital Smart Blockchain ZenTrust Intelligence Assurance ADM Customers across sectors Hi-Tech & Consumer Banking, Financial Manufacturing Services Services and Insurance What drives us Our Our Our Vision Mission Values Leaders in business We will be the best in delivering Customer Centricity transformation innovative, industry-focused Commitment to People and the solutions with measurable business Community outcomes Continuous Innovation and Excellence 4 ZENSAR TECHNOLOGIES LTD ANNUAL REPORT 2019-20 Key Financial Metrics Revenue (INR Million) 2017-18 31,077.4 Quick facts on 2018-19 39,663.3 stakeholder engagement 2019-20 41,816.8 Area of focus and Impact in FY20 action points CAGR Integrated digital % % Customers 80.3 16.0 transformation services that Repeat business from consistently ensure quality existing clients EBITDA (INR Million) Government Provide regular 2017-18 3,649.3 and Regulatory and transparent 3327 2018-19 4,794.4 authorities information Job creation Gross Headcount added 2019-20 5,070.6 Fair and sustainable in FY20 business practices % CAGR 17.9 Communities Support key community development INR 53 Million programmes Contribution to community Make responsive (INR Million) development initiatives PAT contribution to community interests 2017-18 2,464.8 and needs 2018-19 3,186.5 2019-20 2,716.1 Suppliers and Long-term partners relationships with 4717* efficient payment Active vendors on-board 5.0% CAGR cycle *as on March 31, 2020 Digital Revenue as % (in %) of total revenue Revenue by Sector Emerging Hi-Tech & 3.3 53.6 Manufacturing Banking, Financial 52.4 Consumer Services and 15.4 Services 27.7 Insurance Revenue per Gross cash Book value employee (INR Million) per share 38.1 (INR Million) (INR) 4.4 7,839 93.77 3.4 4,497 74.80 2017-18 2019-20 2017-18 2019-20 2017-18 2019-20 2017-18 2019-20 KEY FINANCIAL METRICS | STRATEGIC HIGHLIGHTS CORPORATE OVERVIEW 5 Strategic Highlights Quarter FY20 Apr 1 Sponsored the 2019 edition of the Started operations in Mexico City, Mexico, Participated in Nutanix’s annual .'NEXT prestigious International Women’s to grow and sustain market presence in Americas' conference to showcase the Hackathon, organised by HackerEarth (the North America benefits of Zensar's multi-cloud solutions world’s largest developer communities) Keystone Logic, a Zensar Company, Sponsored the ISG Digital Business Hosted first, among many, Conclave sponsored the Manhattan Associates Summit in London to showcase Zensar's May Annual Analyst and Advisor Meet in Momentum 2019 Conference as a Gold human-led experience solutions Boston, USA. Eminent analysts and Partner Entered into a global partnership advisors were invited