cyient.com
th Global Headquarters 25 Annual Report Cyient Limited, Plot No. 11, Software Units Layout, Infocity, Madhapur, Hyderabad - 500081, India | T: +91 40 6764 1000 2015-16
1 Annual Report 2015-16 cyient.com 25 Years of Tomorrow Designing Together
2 Annual Report 2015-16 cyient.com Founder &Executive Chairman on our25 pleasure to writeto you It gives meimmense Dear Shareholders, the Future Envisioning B.V.R. the year. company updatesthrough through various industryand With thisletmetake you all forever. an organization thatwilllast to newer heightsandbuild motivated to scaleCyient We are now even more our goalsandaspirations. years andrealized many of company over thelast25 that we builtasustainable silver jubilee.We are proud when Cyient celebrates its MOHANREDDY th anniversary, 3 3 Annual Report 2015-16 cyient.com has historically beenahubofcreative mindsand India, andDefence Procurement Policy (DPP).India new initiatives: Make in India,Smart Cities, Digital has beenembracing theshiftsintechnology with Indian Government Initiatives: The government entrepreneurs. IT-BPM companies andthesenew-generation a strong synergistic relation between thegiant products andserviceswithmore value. We see existing businessmodelsandcreating new hub ofIndia.These startups are disrupting wave ofstartups have become theinnovation challenge traditional market leadership. The fresh opportunities for new entrepreneurs andcan Automation, andInternetofThings (IoT) provide Printing, ArtificialIntelligence,DeepLearning, Social, Mobility, Analytics andCloud(SMAC), 3D diversified scalabledestination. sourcing sector andhasemerged asthelargest continues to gainmarket share intheglobal companies thatare builtontechnology. India of technology, consumers oftechnology, and see three types ofbusinessesemerge: producers its growth trajectory. Inthedigitalworld, we will over, willcontinue to seeIT-BPM industrystay on adoption ofdigitaltechnologiesbyclientsworld billion milestone inexport revenues. The rapid it over thelastsixyears andcrossing the$100 industry clocked $143billioninFY2016,doubling and issustainingitsdouble-digitgrowth. The still beenableto grow from strength to strength economic environment, theIT-BPM industryhas Indian IT-BPM Industry: Amidstavolatile global growth inourbusiness. from themacroeconomic perspective, we see scarcity ofresources innew technologies. Overall, because ofBrexit, challengeswithwage hikes and talent, weakening ofUKpoundandother currencies challenges: protectionism for free movement of surpassing China.However, we didface someglobal emerged astherecipient ofthehighestFDIinflows 7.6% anddisplayed strong financialdisciplineand large economy withGDPgrowth ofmore than 2016. Lastyear, Indiawas thefastest growing in 2015andisprojected to grow by3.4%during economies. The globaleconomy grew by3.1% while amodestrecovery continued inadvanced growth declinedfor thefifth consecutive year, economies whichaccount for 70%ofglobal subdued. Emerging markets anddeveloping In 2015,globaleconomic activity remained industry verticals andinmany new geographies. opportunities alike withexisting clients, new technologies are creating challengesand when clientexpectations driven bydigital Macroeconomic Environment: We live intimes manufacture for ourclients. Rangsons Electronics ishelpingusdesignas well as strategic acquisitionsover thepasttwo years. of ourgrowth initiatives, we completed several ambitious goalsfor ourcompany by2020.Aspart Mergers andAcquisitions: We have very clearand engines for thefuture. robotics, andadditive manufacturing asgrowth Things, mechatronics, analytics, automation and for 2020.Cyient hasidentified areas like Internetof journey, we have definedourstrategy and roadmap Manufacturing Company. To track andexecute this boundaries to positionourselves asaDesignLed based roles andresponsibilities, andpushingthe restructuring ourleadership to have more vertical- redefining ourbusinessinlinewithS3strategy, our businessonseven industryverticals. We are running initiatives to transform Cyient byfocusing Strategy: To ridethistideofchange,we are confirms thatourinterventions are bearing results. overwhelming response to ourAnnualInvestor Day engagement significantly improved last year and the orders from existing clientsremain high;associate have beenequitableto allstakeholders. Repeat satisfaction surveys gives usconfidence that we the results ofclient,associate,andinvestor the change.The continuous improvement in further improvement to make sure we are leading best practices andhave beenpersistent on investors, andsociety. We have created industry key stakeholders: clients, associates(employees), always madesure thatwe created value for our 25 years ofCyient. Over thelast25years, we have positive impactfor Cyient inthecoming years. boosting domesticindustrywhichshouldcreate a defence programs worth $30billionaimedat direction. The government hasalsocleared new Procurement Policy (DPP)are stepsintheright export strategy andrelease ofthenew Defense in defense procurement. Creation ofdefense There isincreased actionfrom thegovernment the ever-increasing populationinurbanareas. India iscreating therightinfrastructure to house Smart Citiesinitiative willhelpinmakingsure that that allcitizens have accessto essentialservices. will make itpossibleto reach thelastmileto ensure and create very positive socialimpact.DigitalIndia initiative hasthepotential to transform ournation examples ofthedesigntalent inIndia.DigitalIndia Cyient andother designengineeringplayers are supporting complex andhigh-value manufacturing. the designandinnovation huboftheworld, India hasthecapabilitiesandecosystem to become holistic view ofInnovate-Create-Make-Support. become highly impactfulifwe lookatitfrom the has anedgeintermsofdesigning.Make inIndiawill 4 Annual Report 2015-16 cyient.com from our Telecom andUtilitiesclients. The UTC delivery centerto supportfurtherrequirements coming quarters. Cyient isexpanding theSydney Czech Republic willbefully functionalover the Europe. Cyient’s new engineeringcenterinPrague, we recently establishedourpresence inEastern footprint ofover twenty globaldelivery centers, Global Delivery Centers: To strengthen our the lives ofmillionspeoplearound theworld. is well poisedto become aglobalbrand thattouches brand promise of“DesigningTomorrow Together” and ourassociatesare confident that Cyient’s Embedded Systems. The leadership teamatCyient Services, andan“Established andNiche”player in the newly-added segment,Mechanical Engineering Cyient asan“Established andExpansive” player in & Heavy Machinery industries. Italsomentions Transportation, Energy &UtilitiesandConstruction Cyient continues to betheleaderinAerospace, verticals. Asperindependentanalyst firmZinnov, partner for globalOEMs across several industry Maintain thatdifferentiates Cyient asaone-stop reinforce ourvalue proposition ofDesign-Build- Industry Analyst Ratings:We continue to institutionalise “Innovation@Cyient”. journals. Incoming years, ourendevour would beto year, we published 38papers indifferent industry that were independently filedby Cyient. Duringthe 16 patentsduringFY15-16includingfour patents innovation andIPcreation withclients. We filed our innovation culture andemphasizing co- 3D Printing Lab,andIoTLab.We are accelerating ‘Innovation @Cyient’ andincubatesourLegoLab, world-class ExperienceCenter thatexemplifies exercise to generate ideas. We establisheda week’s time;andLEGOWar: arapid prototyping developing working IoT-based prototypes ina technologies; InternetofThings Hackathon: Tango: aimedtowards virtual reality andsensing organization-wide innovation challengeslike Project across allourfocus industries. We have launched and perceptible progress inenablinginnovation innovative solutions. We have madesignificant our engineers have always delightedclientswith Innovation: Innovation isinCyient’s DNAand will create apositive traction for ourbusiness. confident thatstartingthis year theseacquisitions exercise iscomplete andtheteamsare very Build andMaintain strategy. The integration thought through andare inlinewithourDesign, components. These acquisitionswere very well repairs, development, andvalidation ofaero engine Pratt &Whitney Singapore) ishelpingusprovide aerospace aftermarket servicesbusinessof in allverticals inbigdataandanalytics. GSE (the Cyient Insightsiscreating synergistic opportunities innovative supplierfor thethird consecutive year. Pratt &Whitney recognized Cyient astheirmost by ourtop clients over many years. In2015, exceptional serviceshasbeenacknowledged its clientsthrough high-quality deliverables and Awards andAccolades: Cyient’s ability to delight Business Responsibility Report. financial disclosures through thepublicationof plans. We have alsoincreased ourfocus onnon- and inpursuit we have created new stock option committed to healthy motivation ofitsassociates board committee interactions. Your company is and are leveraging technology solutionsto enhance provide more efficientinformation flow totheboard Chairman. We have implementedsystems that Committees, Individual Directors, andthe directors for systematic appraisal oftheBoard, by holdingseparate meetingsofindependent of Cyient andlastyear we furtherreinforced this corporate governance have beenacornerstone Corporate Governance: The higheststandards of during weekends andholidays. volunteering hours through various CSR activities 2500 Cyient associateshave contributed 9000+ literacy inover 50,000communities intheMandal. 20,000 underprivileged children andwillfoster IT and openupnew possibilitiesto more than Cyient willprovide accessto digitalknowledge transformation ofsociety. This CSR initiative of world, Cyient wants to beasupporterofdigital surrounding BPLcommunity. Inthisdisruptive gateway for theunderprivileged students andthe library, andNDLM)are envisioned asthedigital Telangana. These CDLCs (computer center, digital Centers (CDLCs) across Serilingampally Mandal, an initiative to setup54Cyient DigitalLearning To celebrate thesilver jubileeyear, Cyient isrunning District, Telangana. students inLingampally Mandal inRanga Reddy 54 government schoolsbenefiting over 20,000 water, sanitationandhygiene (WASH) facilities in Telangana-Swachh Pathashala campaignto provide Initiative, Cyient Foundation introduced theSwachh Mission (NDLM)centers. UndertheSwachh Bharat schools andsupportsfive NationalDigitalLiteracy Foundation hasimplementeddigitallibraries intwo from primaryeducationthrough highschool.Cyient our facilities andsupportsover 10,500children Foundation hasadopted16schoolsinandaround Corporate Social Responsibility (CSR): Cyient resource availability, cost, andinclusiveness. we are judiciously balancingbetween clientneeds, in Warangal, Telangana. Insetting upthesecenters, expanded. Cyient isbuildinganew delivery center Engineering CenterinEast Hartford isalsobeing 5 5 Annual Report 2015-16 cyient.com Design, Innovation, andClientCentricity. needs. Today Cyient hasbecome synonymous with any challengeoradaptingourselves to market journey was tough. We never shiedaway from facing pure play engineeringservicesfrom India.This Services Outsourcing, andbecametheleaderin created anew industrysegment—Engineering OverConclusion: thepast25years, Cyient has Engineering Servicesindustry. Cyient astheBest Tech Brand for 2015intheITand performance. The Economic Times recognized the Best Supplier Award from ABBfor allround Design-Led Manufacturing (DLM)businessreceived Excellence Award 2015for thefirst time.Also, our third timeandBoeingGoldLevel Performance Year Award 2015intheservicecategoryfor the Cyient hasbeenawarded Boeing’s Supplier ofthe BVR MohanReddy Wish you allthebest! successful technology brand. Cyient into aninnovation-driven andglobally new phaseofexceptional growth thatwilltransform for creating socialimpact,we are embarkingona clients, astrong investor base,andwithapassion that with13,000+talentedassociates, 300+active coming decade.However, Ifeel very confident I canenvision theworld beingvery different inthe solving tomorrow’s even more complex problems. unleash theircreativity, innovation andfocus on We willcontinue to attract thebesttechnicalminds, positioned asadesignandmanufacturing company. an engineeringandtechnology leader, uniquely Looking to thefuture, Cyient envisions itselfas 6 Annual Report 2015-16 cyient.com Governance Report onCorporate & Analysis Report Management Discussion Report Business Responsibility Directors’ Report Meeting Notice ofAnnualGeneral Corporate Information Director’s Message Lead Independent CEO’s Message Managing Director & Senior Leaders Board ofDirectors & Cyient ataGlance Highlights of2015-16 Key Milestones The Journey Contents Our Objectives future growth. problems we willbecome more profitable andwell-positioned for closely withthemto develop innovative solutionsto solve complex Together’. By reinforcing ourlongstandingcommitment to working market asacompany whohelpsourclientsin‘DesigningTomorrow Such astrategy ismade possiblebyournew positioninginthe partner. and differentiate Cyient asanend-to-end “concept to solution” across ourstakeholder community andintheprocess position We believe thatS3willresonate anddeliver value atmany levels across industries. evolving mixofServices, Systems, andSolutions to various clients next five years around ourS3Strategy ofoffering arobust and Operations andData,we are basingourgrowth aspiration for the To buildonourstrong heritageofDesignEngineering,Networks, 83 61 42 33 26 24 22 18 16 14 12 10 07 Proxy Form Attendance Slip ECS Mandate Slip Global Presence Route Map to AGMVenue Share Price Movements Shareholder Handbook Significant Milestones Ratio Analysis Financial Analysis Historical Data Statements Consolidated Financial Financial Statements Standalone Abridged 207 205 203 201 200 199 196 193 191 187 186 129 108 7 7 Annual Report 2015-16 cyient.com The Journey the western world. The only engineeringwork intellectual property were not robust enoughfor services company. In1991,Indianlaws protecting realize ourinitialgoalofcreating anengineering right decision.Butitactually took usawhileto lead rather thanfollow anditturned outto bethe we went down aroad lesstraveled. We choseto opportunities inthebroader ITservicesspace, While mostofourpeers inIndiaconcentrated on connected Indiato theglobal economy. by leveraging the‘broadband disruption’ thathad realized we hadanopportunity to address thisgap a supply gapinskilledtalentfor engineering.We industrial growth inthewestern world hadcreated the windsofchange.The demandthatwas driving The Internetrevolution hadarrived andIsensed reforms towards liberalization andglobalization. becoming aglobaleconomy, encouraged byseveral In 1991,Indiawas takingitsfirst steps towards of buildingaglobalengineeringservicescompany. home withfour engineers whobelieved inmy dream Enterprises from thediningtableinmy modest Cyient starteditsjourney in1991asInfotech GIS Start-Up (Cyient 1.0)–Laying theFoundation: especially intimesofdifficulty. made ussuccessful.This hasstood usingoodstead should beequitableto every stakeholder whohas organization’s culture. We always believed thatwe their behavior andbehavior inturn determinesthe of individuals andteamsinanorganization define Respect, Sincerity andTransparency. The values FIRST whichisanacronym for Fairness, Integrity, where itistoday. We always say ourValues come and thatfoundation hasbrought thecompany to Built onValues: Cyient was builtonstrong values thoughts for thefuture. transformed ourorganization over timeandsome with you somereflections onourjourney, how we As Cyient completes 25years, Iwanted to share last 25years andbeyond. (employees), investors, andthesociety -for over value to allfour stakeholders -clients, associates business modelwhichhasdelivered substantial see thatwe have beenableto create asustainable the 1920sto just15years today. Ifeel delightedto than 50years inthelastcentury, from 67years in of leadingUScompanies hasdecreased bymore lifespan ofacompany listedintheS&P500index any organization. Research shows thattheaverage Completing 25years isasignificantmilestone for gave businesssustainability atscale. contracts withETAK, Navionics, andothers that in theGISspace.We signedseveral long-term projects andstartedto earnbrand recognition GIS solutions. Thereafter, we secured more large Inc. Ithelpedusinvest inaplatform for futuristic of a$5mn+GIScontract from Analytical Surveys clients. The first breakthrough cameinthe form innovation to bringeven more productivity to our quality. Afterthat, we concentrated onprocess to scaleourbusinesswithoutcompromising on build therightcapability. These efforts allowed us spending asmuch11%ofourrevenues to We madesignificantinvestments intraining, certifications like ISO9001:2000. an obsessive focus to quality andbacked thatwith unique andgave usover 99%accuracy. We brought digitization anddeveloped arobust tool thatwas processes. We cameupontheideaofdouble-entry invested intechnology andbuiltrobust production we trained andmotivated. We simultaneously We focused onrecruiting therightpeoplewhom Tools, Technology, andTraining. strategy –theacronym standsfor People, Process, strategy thatcameto beknown asCyient’s “PPT” made ussuccessfulwas executing anoperational achieve therightquality atscale.Whateventually tremendous opportunity, itwas initially tough to knowledge. Whilewe instinctively senseda mapping standards andcombine thatwithdomain to beintelligent.Itwas importantto understand The mapdatabaseswe produced alsoneeded geographic datafrom papermapsaccurately. Map digitization required technicalskillsto capture opportunity. business model.Andwe madethemostof the rightmarket attherighttimewith infrastructure, andassets. We found ourselves in to invest ingeographic information related to land, the first steps towards becoming digitalandbegan early 90s, government andindustrywere taking maps for geographic information systems. Inthe an interesting adjacency-theneedto digitize We continued to scan themarket andsoonfound services company. we could not getCyient startedasanengineering hard to justifyreturn oninvestment, whichmeant drawings andthevolume was insignificant.It was available was thelow-end digitization ofpaper 8 Annual Report 2015-16 cyient.com Swisscom, Telstra, FUGRO, andVWT. signed landmarkcontracts withKPNTelecom, globally. Cyient becameatrustedbrand andwe intensely addressing utilitiesandtelecom markets with GISsystems asthebackbone.We started solutions for assetutilization andclientsatisfaction offerings, which could provide comprehensive moved upthevalue chain.We put inplay service By thistimeourGISbusinesshadsystematically that level ofaccreditation. saw usjoinaselectlistofITcompanies inIndiawith software development centerinHyderabad that was followed bySEICMMlevel 5certification for the associate satisfaction to judgeourperformance. It which measured quality, clientsatisfaction, and Cyient evolved anew quality system calledBESt This periodalsobrought more focus onquality and delivery centers inPuerto Rico andFrostburg, VA. in Bangalore, andVizag. Beyond India,we opened our pan-Indiaoperations withengineeringcenters Manikonda campusinHyderabad. We expanded invested intenacres oflandthatdeveloped into the our businessoutpacinginfrastructure and to accommodate 4000engineers. We soonsaw a state-of-the-art delivery centerinHyderabad the year 2000onwards. That year we inaugurated Our operational infrastructure grew rapidly from Airbus, Alstom Transport andseveral others. like Bombardier, Hamilton Sundstrand, Boeing, engineering servicescontracts withglobalOEMs strategic investor inCyient. Thereafter, we secured affordable cost and Pratt soondecided to become a the client’s trustbydelivering quality ontimeatan with was now transforming into reality. We earned Services’ dream thatthefounding teamhadstarted Master ServiceAgreement. The initial‘Engineering UTC) andwe signedamulti-year multi-milliondollar breakthrough withPratt &Whitney (a division of Our persistence helpedusachieve amajor inflection pointinourjourney. at justover US$10mnandwere approaching abig year 2000,we were a1000associateswithrevenues at theendofCyient’s first decadeinbusiness. By the company. We persisted andachieved abreakthrough sight ofourvisionto buildanengineeringservices map digitization servicesuntil2000,we never lost The Accelerator: Whilethebusinessgrew around The EngineeringPlayer (Cyient 2.0)- UK, andCartographic SciencesIndia. clients whichledusto acquire Dataview Solutions to gainmarket footprint andaddmore businessand expansion. Duringthisperiodwe were alsolooking We went publicin1997to raise fundsfor our us transform into Cyient 3.0. engaged businessconsultants andexperts to help different options. We took cognizance ofthisand We hadto make therightchoicesfrom anumberof ourselves andgearupfor thenext phaseofgrowth. It was acrucialjuncture where we hadto redefine and aglobalbrand inengineeringand GISservices. and experienced leadership, 250+active clients the company. We hadhugepooloftalent,strong completed 20+years ofcommitted service with Pratt andBombardier, etc.Many ofourassociates several customers: 20+yrs withTomTom, 15+yrs locations. We created longlastingrelationships with associates andwere operating from 25+global (around 2014)aswe hadgrown to asize of10,000+ This was another inflectionpoint for Cyient business. became alogicalprogression for ourengineering prototyping andmanufacturing capability andthose its portfolio, many ofourclientsbeganaskingfor Recognizing Cyient’s ability andintentto broaden decided onaBusinessUnitbasedoperating model. for afocused approach for eachvertical andwe Equipment, Hi-Tech, Oil&GasandEnergy. Itcalled also recognized asanestablishedplayer inHeavy Transportation, Telecom, andUtilities. We were position infocus industrieslike Aerospace, (Cyient 3.0),we hadalready grown into leadership second phaseofgrowth andthestartofthisphase Solution” Partner: Towards thetailendofour The Cyient Brand (Cyient 3.0)–“Concept to 7500+ employee duringthesameperiod. associate strength grew five timesfrom 1500 to $10mn+ in2000to $200mn+in2010andour this period,we multipliedrevenues 20timesfrom engineering servicesbrand from India.During being aGISservicescompany to awell-recognized by GISandEngineering.We graduated from just This was anaccelerated growth phasepowered Tech/Semiconductor space. and Time to Market to accelerate entryinto theHi- focus onengineeringandGISservicesinEurope, software (AGS) Germany andMap CentricUKto to expand ourUSfootprint, advanced graphics and capabilities, Daxcon EngineeringandWellsco acquired TeleAtlas Indiato scaleourGISbusiness client needsandstrengthen market presence we To keep pacewithskillsrequirement, address Japan, andMalaysia. Germany, Singapore, Melbourne, Dubai,Canada, to ourclients. We openedofficesinthe US, UK, our salesanddelivery teamsto geteven closer Our growing baseofclientsandprojects required 9 9 Annual Report 2015-16 cyient.com that corporations spend2percent oftheir Much before theGovernment ofIndiamandated the years to come. schemes. People willcontinue to beourstrength for wealth withwealth creators through stock option and retrained thebestoftalent.We shared day one.We have recruited, retained, rewarded, People have beentheCyient’s strength from even more confident aboutthefuture. organization becauseofthatandcantherefore be on ourjourney. Ibelieve we are afar more resilient and ourability to learnfrom themhaskept usgoing of ourassociatesto overcome thosechallenges, of difficulties. Our value system, the commitment Over thepast25years Cyient hasfaced itsshare years inZinnov’s independentsurvey. engineering servicesproviders for five consecutive and hasbeenrated amongglobal the‘Leader’ Outsourcing Companies intheworld’ byIAOP called TPDDL),was ranked amongthe‘Top 30 2011, The Edison Award 2008 for NDPL(now Telecommunications atGeospatialWorld Forum Whitney, GeospatialWorld Excellence Award for three ‘Supplier Innovation’ awards from Pratt & ‘Supplier oftheYear’ awards from Boeing, for excellence incorporate governance, three accolades includingthe‘GoldenPeacock’ Award In thecourse ofour journey Cyient has won several Taiwan, andCzech Republic. business Cyient openedofficesin South Korea, To accessnew markets andclients new data andanalytics. management/assurance andInvati Insightsfor big capabilities byacquiringSoftential for service our ‘Maintain (Support)’ offering. We addednew repair engineeringfacility inSingapore to reinforce Rangsons Electronics. We acquired Pratt’s GSE To addmanufacturing capability, we acquired sharp andmore pinpointedtowards ourgoals. All theseinitiatives have helpedusbecome very proposition to complement ourDesign-Build-Maintain value and addmanufacturing into ourserviceportfolio growth strategy (Services-Systems-Solutions), accountable andleanstructure, articulateourS3 focus, restructure ourorganization into an Infotech Enterprises, consolidate ourindustry Cyient 3.0hasseenusrebrand ourselves from Founder &Executive Chairman B.V.R. MohanReddy journey! Wish allofyou avery successfulandfulfilling Cyient intheyears to come. significant achievements andmilestones await four stakeholders, Iamconfident that even more With thestrong andunwavering supportofall of ourtalentandigniteexponential growth for us. with thesetechnologieswillunleashthecreativity new businesspossibilities. Cyient’s strong connect Learning, ArtificialIntelligence,andIoTare creating Technologies like Automation, 3D printing,Deep has become agreat placefor complex innovation. a very robust organization whichisscalableand accelerate Cyient’s growth. Allofyou have built brand. We are attherightinflectionpoint to becoming awell-recognized globaltechnology a halfdecadesandwe are now onthepathto We have come alongway over thepasttwo and 13,000+ professionals. direct employment opportunities for more than Cyient anditssubsidiarycompanies have created Boeing, Pratt &Whitney, Philips, andCaterpillar. billion to globalFortune 100clientslike Airbus, contributing cumulative exports inexcess ofUS$2 with operations inmore than38globallocations, US$ 800million).Cyient today istruly multinational capitalization ofaround INR5500+crores (approx. (close to US$500million)withamarket earning revenues ofaround INR3,000+crores grown into avibrant multinationalorganization employees andastrong entrepreneurial spirithas The Cyient Ifounded 25years agowithfour volunteerism. not only through ourfundingbutalsothrough citizens byrelentlessly supportingthecommunity affordable. We will continue to begood corporate helping uscontribute to society bymakingeye care Social innovation alignedto businessinnovation is thousand schoolchildren inourneighborhoods. government schoolsto touched thelives ofseveral primary education,we have adoptedanumberof on CSR activities. Through ourinitiatives in was spending1.0to 1.5percent ofitsprofit profits on corporate social responsibility, Cyient 10 Annual Report 2015-16 cyient.com History ofthecompany Key Milestones inThe ISO9002f Focus onprocesstogetquality Initial publico er ET Co Inc ISO9001for sof and Ca SRG lnfotech, DataviewSolutionsLimited, Focus ontechnologytoachieveproductivity Pa inCalifornia Set upaUSsubsidiary AK/ TeleAtlas/ rtnered with IBM for enterprise-wide information withIBMfor systems enterprise-wide rtnered ntra eption oflnfotech Enterprises ct rt ographic SciencesPvt.Ltd. withAnalyticalSur or co To nv tw mT ersion services are developmentservices om –Long-term relationship veys, In c. (ASI)toprovideGISser vices ISO 9001:2000cer FAPCCI Aw for the Ad SEI CMMLe company inGISsec Ranked 5 Ranked VA Map Dev Engineering centerinBengaluru Softwa BS 7799 Strategic businessrelationshipwith L Signed upwithFUGROandKPN Telecom diversity Focus togetindustry onexpertise ong-term contra RGIS, aGIScompany intheUS vanced GraphicsSo elopment centerinP Ce re developmentcenterinM Ye ntric, aleadingindependentGISdistributorinEurope th ar 2000-2001 among top ten exporters fromAndhraPradesh amongtoptenexporters ard f vel 5f or BestIn or So ct ti cation; Become the rst certi ed ti cation; Becomethe rstcerti ed to withBombardier r ft ft ware GmbH,specializingin3DCAD/CAM ware Development & Services Division ware Development&Services fo uer rmation to Ri co adhapur Technology Company (IT) Pr Tr att & Whitney ansportation , Hyderabad
11 Established o cesinSingapor Sundstrand (nowUTAS) Inaugurated Geospatialproduction facilityat Engineering centerin Vizag Japan, andMalaysia Mar Long-term engineeringser GIS contra Engineering designagreementwithAlstom Set uplnfotech HALLimited,ajointventurewith localizationofwork Decision tobeginactive Included inthe fo TTM; 74% stakeinGeospatiallntegr Daxcon Engineeringand Wellsco intheUS Tele AtlasIndia yland, USA ray intothe ct withGEfor Swisscom Fo rbes AsiaListof200BestunderaBillion Hit ech ver vices contra tical a e, Melbourne, Dubai,Canada, ct withHamilton Tr fo Fr ansportation ansportation rc ostbur e g,
ln Soft to producehigh- MoU withIITHy technologies MoU with manufacturing MoU withDeak Chairman ofNASSCOM for 2015-16 Cyient Executive Chairman,BVRMohan Reddy, as elected Pr Engineering Ser providers for consecutiveyear the fth byZinnovasaleaderamongglobalengineeringservice Ranked ICSI National amongtop30outsourcingcompaniesintheworldbyIAOPRanked Aw Golden Peacock Pr capabilities inintegratedengineering Electronics, strengtheningend-to-end Majority stakeinRangsons in Laid thefoundation ofatechnologydevelopmentcenter and Sydney Engineering centersinDallas Global designcenterinBengalurufor SMEC Experience centerinHyderabad,India New o cesinSilicon Valley, Taiwan, SouthKorea,andAfrica New developmentcenterinSEZat to par employable andempowerneighborhoodcommunities Cyient Foundation announcedprogramstomakeengineers Completes 25yearsofoperations Rebranded toC vati I att & Whitney. Alsowonthisawardin 2014,2013and2011 att & Engineering Asia,Singapore Whitney GlobalServices Wa arded ‘Supplier oftheYear ential, Inc. rangal ticipate ac nsights TNB andUNITENfor jointresearchonsmartgrid (T Aw elecom) in for jointresearchonmedicaladditive yient derabad toenabletechnicalinstitutes vices SupplierInnovationawardfrom tively indigitalIndia ard for Excellence in Aw quality andready-t ard f or ex ’ byB cellence in (A erospace), oeing Ka o- Co , design,andproduction kinada, Andhra kinada, employ talent rporate Governanc Co Pr rporate Governance ague (T ransportation), ransportation), Pr adesh e ISO9002f Focus onprocesstogetquality Initial publico er ET Co Inc ISO9001for sof Pa inCalifornia Set upaUSsubsidiary and Ca SRG lnfotech, DataviewSolutionsLimited, Focus ontechnologytoachieveproductivity AK/ TeleAtlas/ rtnered with IBM for enterprise-wide information withIBMfor systems enterprise-wide rtnered ntra eption oflnfotech Enterprises ct rt ographic SciencesPvt.Ltd. withAnalyticalSur or co To nv tw mT ersion services are developmentservices om –Long-term relationship veys, In c. (ASI)toprovideGISser vices ISO 9001:2000cer FAPCCI Aw for the Ranked 5 Ranked VA Map Dev Engineering centerinBengaluru Softwa BS 7799 SEI CMMLe company inGISsec Ad L Signed upwithFUGROandKPN Telecom diversity Focus togetindustry onexpertise Strategic businessrelationshipwith ong-term contra RGIS, aGIScompany intheUS vanced GraphicsSo elopment centerinP Ce re developmentcenterinM Ye ntric, aleadingindependentGISdistributorinEurope th ar 2000-2001 among top ten exporters fromAndhraPradesh amongtoptenexporters ard f vel 5f or BestIn or So ct ti cation; Become the rst certi ed ti cation; Becomethe rstcerti ed to withBombardier r ft ft ware GmbH,specializingin3DCAD/CAM ware Development & Services Division ware Development&Services fo uer rmation to Ri co adhapur Technology Company (IT) Pr Tr att & Whitney ansportation , Hyderabad
11 Annual Report 2015-16 cyient.com Included inthe fo TTM; 74% stakeinGeospatiallntegr Daxcon Engineeringand Wellsco intheUS Tele AtlasIndia Mar Inaugurated Geospatialproduction facilityat Engineering centerin Vizag Japan, andMalaysia Established o cesinSingapor Sundstrand (nowUTAS) Long-term engineeringser GIS contra Engineering designagreementwithAlstom Set uplnfotech HALLimited,ajointventurewith localizationofwork Decision tobeginactive yland, USA ray intothe ct withGEfor Swisscom Fo rbes AsiaListof200BestunderaBillion Hit ech ver vices contra tical a e, Melbourne, Dubai,Canada, ct withHamilton Tr fo Fr ansportation ansportation rc ostbur e g,
Engineering centersinDallas Global designcenterinBengalurufor SMEC Experience centerinHyderabad,India New o cesinSilicon Valley, Taiwan, SouthKorea,andAfrica New developmentcenterinSEZat to par employable andempowerneighborhoodcommunities Cyient Foundation announcedprogramstomakeengineers Completes 25yearsofoperations Rebranded toC Golden Peacock in Laid thefoundation ofatechnologydevelopmentcenter and Sydney Aw ICSI National amongtop30outsourcingcompaniesintheworldbyIAOPRanked to producehigh- MoU withIITHy technologies MoU with manufacturing MoU withDeak Chairman ofNASSCOM for 2015-16 Cyient Executive Chairman,BVRMohan Reddy, as elected Pr Engineering Ser providers for consecutiveyear the fth byZinnovasaleaderamongglobalengineeringservice Ranked ln Soft Pr capabilities inintegratedengineering Electronics, strengtheningend-to-end Majority stakeinRangsons vati I att & Whitney. Alsowonthisawardin 2014,2013and2011 att & Engineering Asia,Singapore Whitney GlobalServices Wa arded ‘Supplier oftheYear ential, Inc. rangal ticipate ac nsights TNB andUNITENfor jointresearchonsmartgrid (T Aw elecom) in for jointresearchonmedicaladditive yient derabad toenabletechnicalinstitutes vices SupplierInnovationawardfrom tively indigitalIndia ard for Excellence in Aw quality andready-t ard f or ex ’ byB cellence in (A erospace), oeing Ka o- Co , design,andproduction kinada, Andhra kinada, employ talent rporate Governanc Co Pr rporate Governance ague (T ransportation), ransportation), Pr adesh e 12 Annual Report 2015-16 cyient.com Transportation. added servicesfor ourclientsin better collaboration andvalue- Technical Centre atCyient for We alsoinaugurated theBogies wide variety ofindustrysectors. engineering solutions, across a with specialized near-shore designed to serve ourclients Czech Republic. The centeris engineering centerinPrague, We recently openedanew GLOBAL PRESENCE FOOTPRINT EXPANDING OUR Highlights 2015 -16 Digital Literacy Mission in Nellore andaNational the Akshara Vidyalaya School a DigitalLibrary Initiative at arm ofCyient Ltd.) launched Cyient Foundation (theCSR SOCIETY and SOCIETY EDUCATIOn investing in AWARD talent inConnecticut. manufacturing engineering College, Hartford to develop engagement withGoodwin signed acollaborative resources. We alsorecently of high-quality educational gain accessto repositories underprivileged students district withtheaimofhelping (NDLM) Centre inRangareddy performance. Award from ABBfor all-round received theBest Supplier Manufacturing (DLM)business success story, ourDesignLed Award −2015.Continuing our Level Performance Excellence category andBoeingGold Year Award −2015inservice the Boeing Supplier ofthe consecutive year. We alsowon supplier for 2015for thethird Cyient astheirmostinnovative Pratt &Whitney recognized CLIENTS FROM KEY RECOGNITION 13 13 13 13 Annual Report 2015-16 cyient.ccyient.comom category. the ITandEngineeringServices Tech Brand for theyear 2015,in Times recognized usastheBest feather inourcap,Economic Chicago Chapter. To addanother Society ofAmerica(PRSA) category bythePublic Relations and Brand Management Skyline Award intheReputation We alsowere awarded the International Public Relations. campaign inthecategoryof of Chicagofor ourrebranding Award earned ustheGoldenTrumpet grabbed quiteafew eyeballs and Our rebranding initiative STRENGTHENING EXPERTISE portfolio. growing aerospace services to furtherstrengthen our Aftermarket capabilities facility willexpand ourexisting (GSE Asia)inQ2FY16.The of Pratt &Whitney Singapore aftermarket servicesbusiness We acquired Aerospace CAPABILITIES AFTER MARKET CYIENT BRAND CYIENT WINNING AS BRAND bythePublicity Club touch, andlearnaboutproducts and components thatwe design. gives ourengineers, clients, andprospects theability to see, inHyderabad,the-art ‘ExperienceCenter’ Indialastyear which concepts andvalidate theirideas. We inaugurated thestate-of- Center-Lego Lab,where associatescangive shapeto their We recently addedonemore labto theCyient Experience SUSTAINED FOCUS ONINNOVATION INNOVATION and Niche’player inembeddedsystems. player inmechanicalengineeringservices, andan‘Established Zinnov alsocategorized usasan‘Established andExpansive’ and Heavy Machinery industriesfor thethird successive year. ranked asaleaderintheEnergy andUtilities, andConstruction for thefifth consecutive year. Furthermore, we continued to be leadership positionintheAerospace andTransport segments research andadvisory firm,Zinnov, continued to placeusinthe The 2015GlobalServiceProvider Ratings (GSPR) byindustry PROVIDERS GLOBAL ENGINEERINGSERVICE CATEGORIZED ASALEADERAMONG Distinction 14 Annual Report 2015-16 cyient.com relationships. each project. This isthebasisfor ourgrowing innovations andintellectual property on grow together. We share ourknowledge, and eachother, we buildideastogether and their industrysowell. So, withourclients into theirorganization becausewe know able to make ourprocesses fitseamlessly We’re onthesamesideasourclients. We are Together their holiday. more reliable energy supply orabetter mapfor from aquieterflightorsafer train ride, to a large andsmall.The result could beanything for thembysolving theireveryday problems, design. We’re here to shapeabetter tomorrow people whoactually benefitfrom what we We never losesightofwhoreally matters-the Tomorrow reach further. on ourclients-allowing themto domore and solve complex problems thathave abigimpact industry knowledge and expertise creatively to networks andoperational services. We useour Cyient designssolutionsacross engineering, Designing customers business andthelives ofyour working withyou to improve your describe ouruniqueapproach of Three simplewords that Together Tomorrow Designing Glance Cyient ata 15 15 Annual Report 2015-16 cyient.com 13 locations and21nationalities Associates across 38global Networks andOperations Data Analytics, Geospatial,and Engineering, DesignLedManufacturing, Service Portfolio Comprehensive Respect, Sincerity, Transparency Our guidingprinciple:Fairness, Integrity, Values First Total Clients 310 Revenue $ Across 10Industries and Techno Tools Rangsons Electronics (ESDM), Cyient Insights(Datasciences), Our Portfolio ofBrands Expertise 472 , 500 Mn 29 Fortune 500Clients + $ Operating Profit 65 Mn 16 Annual Report 2015-16 cyient.com Senior Leaders 1991 |R&I Executive Chairman B.V.R. Mohan Reddy Board ofDirectors Affairs &Infrastructure President -Corporate B. AshokReddy Chief Financial Officer Ajay Aggarwal 2014 |R&I Managing Director &CEO Krishna Bodanapu Transportation BU Sr. VP-Rail Prabhakar Atla 1997 |A&L Independent Director M.M. Murugappan & Natural Resources BU Sr. VP-Industrial,Energy Katie Cook 2009 |A,L,R&I Independent Director K. Ramachandran President -NorthAmerica Sr. VP-UTCAccount & Tom Edwards 2012 |C&S Independent Director Harsh Manglik Marketing Sr. VP-Strategy & NJ Joseph 2014 |S&A Independent Director Som Mittal BU &President -APAC Sr. VP-Communications Sanjay Krishnaa 17 Note: The year indicatesthetimeofjoiningBoard L: A: AuditAndRiskManagement Committee |C:Customer EngagementCommittee |I:Stakeholder Engagement Committee Legend: Geospatial BU Sr. VP-Utilities& Sunil Kumar Makkena 17
Leadership, NominationAndRemuneration Committee |R: CSR Committee |S: Strategy Committee
Annual Report 2015-16 cyient.com2014 |C&L Independent Director Andrea Bierce Resources Sr. VP-GlobalHuman PNSV Narasimham 2014 |C&S Independent Director John Paul Paterson & CEO -Rangsons Electronics Sr. VP - Design Led Manufacturing Dr. Venkatesh Padmanabhan
2010 |C&S Non-Executive Director Alain DeTaeye Defense BU Sr. VP-Aerospace & Anand Parameswaran 2013 |A&L Non-Executive Director Thomas W. Prete
BU &President EMEA President -Utilities&Geospatial John Renard Thomas W. Prete Alternate Director to John Wiedemer Sr. VP-BusinessExcellence Rajendra Velagapudi Sr. VP-Medical Tech BU Brian Wyatt 18 Annual Report 2015-16 cyient.com delivers accelerated growth. sustainable organization that newer horizons to builda forefront ofaddressing bright andCyient isatthe services industrylooks engineering andtechnology when thefuture ofthe this milestone atatime gratifying to becelebrating are today. Itisparticularly the uniqueorganisation we half decadesto become journey across two and It marksourincredible moment inCyient’s history. anniversary, apivotal be celebrating our25th I feel extremely proud to Dear Shareholders, Shared Value Creating Managing Director &CEO KRISHNA BODANAPU 19 19 Annual Report 2015-16 cyient.com industry segmentsorBusiness Units(BU) andwe was anincrease innew clientadditions across all our 5+Mn,10+Mnand20+Mnclientbase.There dollar clientinFY16.We saw additions across mark for thefirst time. We hadourfirst 100Mn opportunity pipelinecrossed thebillion-dollar saw usachieve several significant‘firsts’. Our Despite thechallengeswe faced lastyear italso days andeffective tax rate was lowest at23.9%. Outstanding (DSO) was thelowest ever at79 and consistent dividend payouts. Days Sales INR 7,742Mn($117Mn)despitefour acquisitions record ourhighestever cashbalanceat improve ourcashposition.This year saw us capital expenditure we were ableto significantly strong focus oncollections andoptimizing our dropped 7.6%to INR29from INR31.5.With margins. Consequently, Earnings perShare (EPS) lower utilization contributed to lower operating fluctuations, increased onsitedemandand down by7.6%from theprevious year. Currency fiscal year. Netprofit stood at INR 3,262.3Mn stood at13.7%against14.7%for theprevious by 5.9%year onyear andouroperating margin profit stood atINR4,248.6Mn which ishigher nature ofthatpartthebusiness. Operating not perform to expectation given thecyclical newly acquired Manufacturing business did growth (constant currency) was 10.2%.Our account currency fluctuations, our revenue 6% over theprevious year. Aftertakinginto our revenue was $472.1Mnanincrease of of 13.1%over theprevious year. Indollarterms, the year stood atINR30,955.7Mnanincrease number ofinitiatives. Consolidated revenue for opportunities thatwe addressed through a but atthesametimeitpresented uswithnew The lastfinancial year (FY16) was challenging, and supportofitsFounder &Chairman. to furtheraccelerate growth withtheguidance world-class managementteamthatismotivated today. Iamhappyto report thatwe now have a the 13,000plusglobalorganization thatwe are aspiring start-up withfour employees in1991to execution thattransformed usfrom an it isMr. Mohan Reddy’s extraordinary visionand Reflecting on Cyient’s history, you willagree that rated in engineering services asa“Leader” and accolades we receive. Lastyear,Cyient was for ourstakeholders isreflected inthe awards Our leadership andcommitment to create value drivers. made significantprogress onallengagement in-class employer, Iamhappyto report thatwe to doto reach ourstatedgoalofbeingabest- by 5%,to 61%.Whilewe stillhave somework Associate engagement(ASAT) score improved all clientlevels, businessunitsandregions. Our industry average of56.3.This increase isacross improved by10%to a57.6score againstthe concerns. Customer Satisfaction (CSAT) index a numberofinitiatives thatwilladdress these I would like to assure you thatwe are executing especially around revenue andprofitability and We understand thekey concerns ofinvestors, execution andfinancialperformance dipped. and communication whileourscore onstrategy investors continue to rate ushighly onleadership 7-point scalecompared to 5.32lastyear. Our satisfaction (ISAT) score stood at5.06ona party assessments. For FY16,ourinvestor engagement andsatisfaction through third- continuously improving ourstakeholder importance to Cyient andwe focus on associate) satisfaction isofparamount Stakeholder (shareholder, customer and future. is expected to beasignificant contributor inthe This subsidiaryisnow generating revenue and setting upasubsidiaryinPrague, Czech Republic. established ourpresence inEastern Europe by industry. To expand delivery footprint, we services to clientsintheRail Transportation center for Bogies for providing value added Asia). We alsomadeinvestments inatechnical business ofPratt &Whitney Singapore (GSE acquired theAerospace aftermarket services enhancing Cyient’s technicalcompetency, we presence. Inlinewithourstrategy ofconstantly areas to enhanceourcapabilities, andglobal Last year saw usmake investments instrategic through theyear. added anumberofMustHave Accounts (MHA) 20 Annual Report 2015-16 cyient.com units thatcanmore successfully execute S3 and investments into well-defined andefficient client experience, resources, industrypractices allows usto concentrate ourdomainexpertise, focused BusinessUnits(BU). The BU structure We have reorganized ourselves into industry- led thinking. Things (IoT), additive manufacturing anddesign- emerging technologieslike analytics, Internetof capability into oursolutionsbyleveraging customer needs, we are alsobuildingdigital Recognizing industrytrends andanticipating Maintain partnerfor ourindustriesandclients. to differentiate Cyient asaDesign-Build- actively transforming ourindustryportfolios developed theS3strategy andhave been Over thepasttwo years we articulatedand become by2020. transform Cyient into thebusinesswe want to anticipates thesechangesandwillhelp strategy (Services, Systems, andSolutions) is alsochangingrapidly. We believe thatourS3 disruptions, theway we manageourbusiness us. Withtheonsetofdigitaltechnologiesand very cognizant ofthefast changingworld around As we stepinto thenew financial year, we are improvements anddelivery excellence. various categorieslike innovation, process receive numerous awards from ourclientsin Public Relations. Additionally, theyear saw us Campaign inthecategoryofInternational the Publicity ClubofChicagofor ourRebranding were alsoawarded theGoldenTrumpet Award by Society ofAmerica(PRSA) ChicagoChapter. We Management categorybythePublic Relations “Skyline Award” intheReputation andBrand Cyient rebranding initiative was awarded a supplier in2015for thethird consecutive year. Whitney recognized usasthemostinnovative Engineering Servicessub-category. Pratt and Brand byEconomic Times in2015theITand We were alsorecognized astheBest Tech research andanalyst firm,Zinnov Consulting. Energy &Utilities, Telecom andHi-techbythe in four categories:Aerospace, Railways, for ouremployees. This year, along with are committed to buildingarewarding workplace core to Cyient’s performance andwell being.We Engaged Employees: Employee engagementis budgeted numbers inthesefocus areas. initiatives andare committed to meeting strengthen ourofferings andgo-to-market accounts andnew clients. We continue to significant growth potential across existing and Analytics: Each presents Cyient with New Focus Areas –DLM,MedicalTechnology Account Plan execution withourtop clients. revenue. We willredouble ourfocus onKey wallet share withtheseclientsandmaximize identified anumberofopportunities to increase impact onoverall group revenue. We have Growth across theseaccounts hasasignificant clients account for about65%ofourrevenue. Growth through Key Accounts: Ourtop 20 and improve utilization. improvement andfocus onbetter spanofcontrol will furtherenhanceourrigoraround efficiency our businessanddeliver profitable growth. We efficiency is extremely important tosustain Operational Efficiency: Focus onoperational These are ourkey objectives for FY17: these actions. measure progress very clearly againsteachof meet ourFY17objectives. This willenableusto This year we articulatedspecificactions to raising thebaronstakeholder satisfaction. on delivering strong financial performance and aspirations. OurFY17objectives are focused our objectives andsettargets to realize our2020 As we move forward, itisimportantfor usto align technologically complex products. and helpourcustomers competitively deliver to drive designthinkinginto manufacturing Design-Led Manufacturing (DLM)withtheintent Product Realization businesshave beenrenamed for theirrespective industries. Rangsons and 21 21 Annual Report 2015-16 cyient.com achieve further. motivates usto aimhigher, work harder and and isgreatly cherished.Itisyour trustthat constant source ofstrength for theorganization that ourstakeholders placeinushasbeena things have changedover thisperiod,thetrust my prideinwhatwe have achieved. Whilemany over thepast25years andIknow you willshare Cyient hasenjoyed extraordinary successes into FY17pipelineandrevenue. will beoncontributions from theseopportunities across asetofstrategic opportunities, ourfocus around execution. AsourBusinessUnitsexecute structure ishelpingusbuildstrong momentum between strategy andthenew organization Execution ofS3Strategy: The closealignment culture. discussions andbuildingacollaborative work employee experience, providing forums for and retention, we willfocus onenhancing investments intraining, leadership development Managing Director &CEO Krishna Bodanapu Here’s to another fantastic 25years. support. our shareholders for theirunwavering trustand we lookforward to convey Cyient’s gratitude to Meeting (AGM) on29thAugust2016,where I request your presence attheAnnualGeneral great momentto reflect onourjourney andmay next twenty five. Milestones like theseare alsoa eclipse thembywhatwe accomplish over the the pasttwenty five years, ourambitionis to Cyient’s achievements andmilestones over While we canlookbackwithsatisfaction at Reflections of Lead Independent Director
M.M. MURUGAPPAN Independent Director
23 23 Annual Report 2015-16 cyient.com these subjects. interactions withthetop management about meetings. Also, there are regular ongoing which report to theBoard atitsquarterly agenda. Itisdonethrough specific committees governance policieshave alsobeenonthe satisfaction, fiscaldiscipline, compliance, and in Indiaandacross theworld, stakeholder In additionto adaptationto changingregulations client engagement,and leadership development. and seniormanagementonlong-termstrategy, actively withtheChairman,Managing Director, its committees, members have beenengaging Apart from statutory meetings oftheboard and well inplace. company to onewithatruly globalperspective is towards atransition from amulti-national across theseregions oftheworld, theapproach and Asia.Withseniormanagementalsospread members are locatedinNorthAmerica,Europe, international perspective-considering thatthe blend ofexperience andexpertise, alongwithan remained unchanged,anditremains agood satisfying year 2015-16.Itscomposition The Board ofCyient hashadabusy and Independent Director M.M. Murugappan Leadership teamintheiruntiringeffort. the Chairman,Managing Director, andthe Board’s role is to ensure thiswhilesupporting sound values andgoodgovernance. The do soinanaccelerated mannerwhilemaintaining management ability, andgeographical spread to well-positioned intermsitsfinancialstrength, transform itselfasrequired. The company is that thecompany willmeetitsgoalsand As Cyient turns 25,theboard isconfident introspect, andfacilitate actionasrequired. appreciates theiropennessto receive feedback, supportive oftheseprocesses, andtheBoard and theLeadership teamhave beengreatly aspirations. The Chairman,Managing Director, leadership requirements to fulfillsuchgoalsand view ofCyient’s strategic direction, andthe performance andtook aconstructively critical discuss theevaluation oftheboard anddirectors’ The independentdirectors metincamera to 24 Annual Report 2015-16 cyient.com Tel: +914023540822 Hyderabad –500033 Banjara Hills HUDA Layout,RoadNo.2 ‘Cyber Heights’,PlotNo.13 Flat No.603,6thFloor G.P. Associates Tax Advisors Tel: +914023413376 Ameerpet, Hyderabad-500 016 Sampathji Apartments, #6-3-855/10/A, Flat No. 4A, S. Chidambaram Secretarial Auditor Tel: +914067362000 Madhapur, Hyderabad–500081 Oval Office,18,iLabsCenter, Ernst &YoungLLP Internal Auditors Tel: +914040312600 Secunderabad –500003 ‘Gowra Grand’,SardarPatelRoad 1-8-384 and385,3rdFloor Deloitte Haskins&Sells Auditors Tel: +914067641000 Hyderabad –500081 Infocity, Madhapur, 11, Software UnitsLayout, 4th Floor, ‘A’ Wing, Cyient Limited Registered Office Corporate Information Tel: +914067161562 Hyderabad –500032 Financial District,Gachibowil, Karvy Selenium,TowerB,PlotNo31&32 Karvy ComputersharePrivateLimited Registrar &ShareTransferAgents Tel: +914067641322 Madhapur, Hyderabad–500081 11, SoftwareUnitsLayout,Infocity 4th Floor,‘A’Wing, Sudheendhra Putty Compliance Officer Company Secretary& Tel: +914027704935 Secunderabad –500003 Sarojini DeviRoad 9-1-129/1, ‘OxfordPlaza’ Oriental BankofCommerce Tel: +914040005720 Secunderabad –500003 Sardar PatelRoad ‘Queens Plaza’,1stFloor Citibank N.A. Tel: +914066162077 Hyderabad –500082 Somajiguda 6-3-1107 &1108,RajBhavanRoad Corporation Limited The HongkongandShanghaiBanking Bankers
25 25 Corporate Information Tel: +914067161562 Hyderabad –500032 Financial District,Gachibowil, Karvy Selenium,TowerB,PlotNo31&32 Karvy ComputersharePrivateLimited Registrar &ShareTransferAgents Tel: +914067641322 Madhapur, Hyderabad–500081 11, SoftwareUnitsLayout,Infocity 4th Floor,‘A’Wing, Sudheendhra Putty Compliance Officer Company Secretary& Tel: +914027704935 Secunderabad –500003 Sarojini DeviRoad 9-1-129/1, ‘OxfordPlaza’ Oriental BankofCommerce Tel: +914040005720 Secunderabad –500003 Sardar PatelRoad ‘Queens Plaza’,1stFloor Citibank N.A. Tel: +914066162077 Hyderabad –500082 Somajiguda 6-3-1107 &1108,RajBhavanRoad Corporation Limited The HongkongandShanghaiBanking Bankers
25 25 Annual Report 2015-16 cyient.ccyient.comom Confederation ofIndianIndustry(CII) Director General Chandrajit Banerjee association withCyient inthedays to come. giant company. CIIwould love to have acontinued andlongterm We wishyou andCyient allthebestinmakingitatruly global on society. environment protection whichhave madeapositive impact development especially inthearea ofprimaryeducationand Vidyalaya campaigninTelangana anditscontribution to social CII alsorecognizes Cyient’s supportto Swachh Bharat-Swachh endeavors. to greater heights, andwe wishyou allthebestinyour future many more importantroles to play thatwould take thecountry As apassionateindustryleader, we are sure thatyou willhave with Cyient. in 2008-09,andwe greatly value ourlongtermassociation CII hashadtheprivilege ofyour leadership inSouthern Region, of success. 13,000 strong, Cyient teamfor completing 25gloriousyears behalf, we extend ourheartiestcongratulations to you andyour On behalfofConfederation ofIndianlndustryandmy personal Dear Mr. Reddy, 26 26 Annual Report 2015-16 cyient.com Notice ofAnnualGeneralMeeting .Toreceive,considerandadopt: 1. Ordinary Business business: Hyderabad -500032,Telangana,totransactthefollowing (Company's Campus),PlotNo.2,ITPark,Manikonda, Monday, 29August2016at3.00p.m.L&DCentre of theshareholderscompanywillbeheldon .ToappointaDirectorinplace ofMr.KrishnaBodanapu 4. ToappointaDirectorinplaceofMr.B.V.RMohanReddy 3. Toconfirmthefirstandsecond interimdividendspaid 2. Notice isherebygiventhatthe25 Notice .TheRegisterofMembersandthe ShareTransferBooks 2. Ashareholderentitledto attendandvoteattheAnnual 1. Notes .theauditedconsolidatedfinancialstatementsof b. theauditedfinancialstatements ofthecompany a. himself forre-appointment. (DIN 05301037),whoretiresbyrotationandoffers himself forre-appointment. (DIN 00058215),whoretiresbyrotationandoffers 2015-16. on equitysharesforandduringthefinancialyear with theAGM. to 29August2016(bothdays inclusive)inconnection of thecompanywillremainclosed from25August2016 other shareholder. rights, thensuchproxyshallnotactasaforany the totalsharecapitalofcompanycarryingvoting appointed byashareholderholdingmorethan10%of of thecompany.Incaseaproxyisproposedtobe aggregate notmorethan10%ofthetotalsharecapital exceeding fifty(50)innumberandholdingthe person canactasproxyonbehalfofshareholdersnot hours beforethecommencementofAGM.A the RegisteredOfficeofcompanynotlessthan48 elsewhere intheannualreport)shouldbedepositedat proxy neednotbeamember.Theform(available to attendandvoteonapollbehalfofhimthe General Meeting(AGM)isentitledtoappointaproxy auditors thereon. 31 March2016,togetherwiththereportof the companyforfinancialyearended directors andtheauditorsthereon together withthereportsofboard for thefinancialyearended31March2016 th AnnualGeneralMeeting .TheBoardofDirectorsthecompanyhaddeclared 3. Website: Email: Secretary Company CIN: L72200TG1991PLC013134 Telangana Madhapur, Hyderabad500081 Software UnitsLayout,Infocity, 4th Floor,AWing,PlotNo.11, Registered Office 21April2016 : Date Hyderabad : Place .Shareholders/proxies arerequestedtobringtheir 5. TherelevantdetailsasrequiredbyRegulation36ofthe 4. .Toconsiderandifthoughtfittopasswithorwithout 5. conclusion ofthe26 Annual GeneralMeeting(AGM),toholdofficeuntilthe an interimdividendof the companyandauditors." be mutuallyagreedbetweentheboardofdirectors out-of-pocket, travellingandlivingexpenses,asmay in theyear2017atsuchremunerationplusservicetax, of 60%onfacevalue confirmed attheAGM. 2016 respectively.Thesaidinterimdividendsaretobe same waspaidon4November2015and31March October 2015and17March2016respectively.The at therateof80%onfacevalue AGM. Copies oftheAnnualReportwill notbeprovidedatthe attendance slipdulyfilledin for attendingtheAGM. copies oftheAnnualReport totheAGMand 3 and4aboveareannexedhereto. seeking re-appointmentasDirectorsunderItemNos. Institute ofCompanySecretariesIndia,persons Standard onGeneralMeetings(SS2)issuedbythe Requirements) Regulations,2015andSecretarial SEBI (ListingObligationsandDisclosure 008072S) asauditorsofthecompany,madeat23 & Sells,CharteredAccountants(FirmRegistrationNo. ratifies theappointmentofM/s.DeloitteHaskins as amendedfromtimetotime,thecompanyhereby Companies Act,2013andtheRulesframedthereunder, 139 andallotherapplicableprovisions,ifany,ofthe "RESOLVED thatpursuanttotheprovisionsofsection resolution modifications(s), thefollowingresolutionasanordinary [email protected] www.cyient.com th AGMoftheCompanytobeheld ` 3.00 pershare ` 5eachand ByOrderoftheBoard Sudheendhra Putty ` 4 pershare ` i.e., attherate 5eachon15 i.e., rd 26 27 Annual Report 2015-16 cyient.com 1 Inaccordance withtheMCA's"GreenInitiativein 11. Thecertificatefromtheauditors ofthecompanyunder 10. Shareholderswhowishtoclaimunclaimeddividends 9. IntermsofScheduleItheSEBI(LODR)Regulations, 8. Shareholdersholdingsharesinphysicalformmaywrite 7. Shareholdersdesirousofobtaininganyinformation 6. documents withshareholdersintheelectronicmode, Regulations, 2015,thecompanyissharingall Obligations andDisclosureRequirements) mode andRegulation36oftheSEBI(Listing documents withitsshareholdersintheelectronic Corporate Governance"allowingcompaniestoshare the shareholdersatAGM. 2014, asamended,willbeavailableforinspectionby SEBI (ShareBasedEmployeeBenefit)Regulations, Protection Fund. 1956, betransferredtotheInvestorEducationand provisions ofSection205AtheCompaniesAct, company's UnpaidDividendAccount,willasperthe claimed within7yearsfromthedateoftransferto requested tonotethatdividendsnotencashedor company's registeredoffice.Shareholdersare Mr. N.RaviKumar,DeputyCompanySecretary,atthe of thepastyears,arerequestedtocorrespondwith Transfer Agent. their bankdetails,totheCompany’sRegistrarand securities inphysicalformmaysendarequestupdating their depositoryparticipants.Shareholdersholding mode arerequestedtoupdatetheirbankdetailswith Accordingly, shareholdersholdingsecuritiesindemat making paymentslikedividendtotheshareholders. ECS), NationalElectronicFundTransfer(NEFT)for (Local ECS)/RECS(RegionalECS)/NECS(National such asElectronicClearanceService(ECS),LECS Bank ofIndia’sapprovedelectronicmodepayment 2015, listedcompaniesarerequiredtousetheReserve their correctaddresses,whereapplicable. enable thecompanytodispatchdividendwarrantsat to theirdepositoryparticipantsimmediatelysoas holding sharesinelectronicformmayinformthesame in theiraddressandbankmandates;shareholders to thecompany/company'sR&Tagentsforanychange requested maybemadeavailable. before thedateofAGM,sothatinformation registered officeofthecompanyatleastsevendays company arerequestedtosendtheirqueriesthe concerning theaccountsandoperationsof Email: Secretary Company CIN: L72200TGP1991PLC013134 Telangana Madhapur, Hyderabad500081 Software UnitsLayout,Infocity, 4th Floor,AWing,PlotNo.11, Registered Office 21April2016 : Date Hyderabad : Place Website: 4 Alldocumentsreferredtointheaccompanyingnotice 14. PursuanttoSection72oftheCompaniesAct,2013, 13. TheSecuritiesandExchangeBoardofIndia(SEBI)has 12. 25 days uptothedateofdeclarationresult of theCompanyduringbusinesshoursonallworking will beavailableforinspectionattheRegisteredOffice available onrequest. Agent oftheCompany.Theseformswillbemade send theirrequestsinFormNo.SH-14,totheR&T Capital andDebentures)Rules,2014,arerequestedto pursuant totheRule19(9)ofCompanies(Share members desirousofcancelling/varyingnomination 13, totheR&TAgentofCompany.Further, are requestedtosendtheirrequestsinFormNo.SH- Companies (ShareCapitalandDebentures)Rules,2014 nomination, pursuanttotheRule19(1)of of sharesheldbythem.Membersdesirousmakinga members areentitledtomakeanominationinrespect details tothecompany/company’sR&TAgents. holding sharesinphysicalformmaysubmittheirPAN maintaining theirdemataccounts.Shareholders to theirDepositoryParticipantswithwhomtheyare format, therefore,arerequestedtosubmittheirPAN market. Shareholdersholdingsharesinelectronic Number (PAN)byeveryparticipantinsecurities mandated thesubmissionofPermanentAccount communications. e-mail addressesforreceivingelectronic this greeninitiativebyregistering/updatingtheir shareholders. Shareholdersarerequestedtosupport wherever thesamehasbeenagreedtoby [email protected] th AGMoftheCompany. www.cyient.com ByOrderoftheBoard Sudheendhra Putty 26 28 Annual Report 2015-16 cyient.com )Thefacilityforvoting throughballotpaperwillbemade d) Theshareholderswhohavecasttheirvotebyremote c) )Anyperson,whoacquiressharesofthecompanyand b) Theremotee-votingperiodcommenceson a) transparent manner. Scrutineer toscrutinizethevotingprocessinafairand (Membership No.FCS3935)hasbeenappointedasthe Mr. S.Chidambaram,PractisingCompanySecretary Electronic Voting'(e-voting) other thanthevenueofAGMistermedas'Remote shareholders usinganelectronicvotingsystemfromaplace set forthinthisNotice.Thefacilityofcastingvotesby Computershare PrivateLimited,inrespectofallresolutions through thee-votingservicesprovidedbyKarvy are providedwiththefacilitytocasttheirvoteelectronically, Disclosure Requirements)Regulations,2015,shareholders and Regulation44oftheSEBI(ListingObligations (Management andAdministration)AmendmentRules,2015 Administration) Rules,2014asamendedbytheCompanies Act, 2013,theCompanies(Managementand Pursuant totheprovisionsofsection108Companies Electronic Voting ID andpasswordbysendingarequestat who havenotcasttheirvoteelectronically, byremote the AGMvenuethroughballot paper.Shareholders remote e-votingwillbeableto exercisetheirrightat attending theAGM,whohave notcasttheirvoteby available attheAGMvenueandshareholders but willnotbeentitledtocasttheirvoteagain. e-voting priortotheAGMmayalsoattend option availableon' password byusing'ForgotUserDetails/Password' vote. Ifyouforgetyourpassword,canresetthe your existinguserIDandpasswordforcasting registered withKarvyfore-voting,thenyoucanuse [email protected] However,ifyouarealready subsequently orcastthevoteagain. shareholder willnotbeallowedtochangeit vote onaresolutioniscastbytheshareholder, be disabledbyKarvyforvotingthereafter.Oncethe votes electronically.Theremotee-votingmodulewill off dateof physical formorindematerializedform,asonthecut- shareholders ofthecompany,holdingshareseitherin 28 August2016 off date of thenoticeAGMandholdssharesasoncut- becomes ashareholderofthecompanyafterdispatch 25 August2016 i.e. Monday,22August2016,mayobtainuser Monday, 22August2016, (5.00pmIST).Duringthisperiod, (9.00 amIST)andendson https://evoting.karvy.com' maycasttheir Thursday, Sunday, )ThevotingresultsdeclaredalongwiththeScrutineer's h) ImmediatelyaftertheconclusionofvotingatAGM, g) AttheAGM,atendofdiscussiononresolutions f) Thevotingrightsofshareholderswillbeinproportion e) )PleasecontacttollfreeNo.1-800-34-54-001ormail i) Guidelines fore-voting: ballot paper. e-voting, mayonlycasttheirvoteattheAGMthrough Report willbeplacedonthecompany'swebsite result ofthevoting. authorized bytheChairman,whowillthendeclare shall bemadetotheChairmanoranyotherperson three daysaftertheconclusionofAGM.Thisreport votes castinfavouroragainst,ifany,notlaterthan prepare aconsolidatedScrutineer'sReportofthetotal in theemploymentofcompany.TheScrutineerwill e-voting inthepresenceofatleasttwowitnessesnot and thereafterunblockthevotescastthroughremote the ScrutineerwillfirstcountvotescastatAGM using theremotee-votingfacility. at theAGMbuthavenotcasttheirvoteselectronically ballot paperforallthoseshareholderswhoarepresent assistance ofscrutineer,willordervotingthrough on whichvotingistobeheld,theChairman,with Monday, 22August2016. to thesharesheldbythem,asoncut-offdateof e-mail: [email protected] /Mr.RaviKumarNukala, to Mr.MohdMohsinUddin,e-mail: Ltd. andNationalStockExchangeofIndia results willalsobeimmediatelyforwardedtotheBSE Chairman orapersonauthorizedbytheChairman.The immediately afterthedeclarationofresultby www.cyient.com andonthewebsiteofKarvy further assistance/clarifications. )Openyourwebbrowserduringthe votingperiod i) follows: The procedureandinstructionsfore-votingareas i Enterthelogincredentials(i.e.,user-id& ii) and navigateto User – ID For sha For User – ID Your folio/DPClientIDwillbeyourUser-ID. password) mentionedonthePostalBallotForm. [email protected] forany )ForCDSL:-16digitsbeneficiary b) ForNSDL:-8CharacterDP ID a) Demat Form:- followed by8DigitsClientID ' https://evoting.karvy.com' reholders holdingsharesin 26 29 Annual Report 2015-16 cyient.com Client IDnumbersorFolio foreaseofidentification. Shareholders whohavebeensent softcopiesofAnnualReportbye-mailarerequestedto showtheDPIDnumbersand You mayalsosendyourrequests byemailto Cell: +91-9246536439 are requestedtocontactMr.K.TirupathiReddyonorbefore 26August2016(by6.00pm)atthefollowingnumber: Monday, 29August2016toenableyoureachthevenueof theAGMcomfortably.Thosewhowishtoavailofthisfacility Your companywillbeprovidingtransportfacilityfromvarious strategiclocationsacrossthetwin-citiesat1.00p.m.on i)IfyouareholdingsharesinDematformandhad vii) Onsuccessfullogin,systemwillprompttoselect vi) Youneedtologinagainwiththenewcredentials. v) Incaseoffirstlogin,shareholdersholdingshares iv) Afterenteringthesedetailsappropriately,clickon iii) ath Enter Captcha Yo Password existing loginidandpasswordaretobeused. cast yourvoteearlierforanycompany,then logged onto"https://evoting.karvy.com"and the 'Event'i.e.,'CompanyName'. utmost caretokeepyourpasswordconfidential. your passwordwithanyotherpersonandtake forget it.Itisstronglyrecommendednottoshare choice toretrieveyourpasswordincaseyou enter theSecretQuestionandanswerofyour number, emailIDetconfirstlogin.Youmayalso and updateanycontactdetailslikemobile System willpromptyoutochangeyourpassword Company onwhichtheyareeligibletovote. holders forvotingresolutionofanyother note thatthispasswordcanbeusedbytheDemat numeric value(0-9)andaspecialcharacter.Kindly one uppercase(A-Z),lower(a-z), minimum eightcharactersconsistingofatleast new passwordfield.Thehastobe mandatorily changetheirloginpasswordinthe Change menuwhereintheyarerequiredto in Demat/PhysicalformwillnowreachPassword "LOGIN". Transport arrangementstoattendtheAnnual GeneralMeeting notice forwarded throughtheelectronic the PostalBallotForm/viaemail security reasons. exact wayastheyaredisplayedfor enter thelettersandnumbersin )IDForshareholdersholdingshares c) ur Uniquepasswordisprintedon in PhysicalForm:- the Verificationcode company Number registeredwiththe Event no.followedbyFolio [email protected]. Your requestsmustreachuslatestby26August2016. [email protected]. i.e. , please Website: www.cyient.com Email: [email protected] Secretary Company CIN: L72200TG1991PLC013134 Telangana Madhapur, Hyderabad500081 Software UnitsLayout,Infocity, 4th Floor,AWing,PlotNo.11, Registered Office 21April2016 : Date Hyderabad : Place i Corporate/InstitutionalMembers(corporate/ xi) Onceyou'CONFIRM'yourvoteontheresolution, x) Afterselectingtheresolutionyouhavedecided ix) viii) On On viii) to Board resolutiontotheScrutineerthroughe-mail required tosendscan(PDFformat)oftherelevant Fls/Flls/Trust/Mutual Funds/Banks,etc)are you willnotbeallowedtomodifyyourvote. "CANCEL" andaccordinglymodifyyourvote. click on"OK",elsetochangeyourvote, will bedisplayed.Ifyouwishtoconfirmyourvote, to voteon,clickon"SUBMIT".Aconfirmationbox 'ABSTAIN' shareholder doesnotwanttocast,select not exceedyourtotalshareholding.Ifthe number in'FOR/AGAINST'takentogethershould in 'FOR'andpartially'AGAINST',butthetotal alternatively youmaypartiallyenteranynumber votes) under'FOR/AGAINST/ABSTAIN'or number ofshares(whichrepresents 'FOR/AGAINST/ABSTAIN' forvoting.Enterthe Description andagainstthesameoption format "CorporateName_Eventno." the BoardResolutionshouldbeinnaming [email protected] the votingpage,youwillseeResolution [email protected] withcopyto file/scanned imageof ByOrderoftheBoard Sudheendhra Putty 26 30 Annual Report 2015-16 cyient.com inclusive growth,CyientFoundation launchedaDigital underprivileged children.Topromote digitaleducationand initiative, Cyienttouchesthelivesofover10,000 community, stateandnation.Throughits"Adopt-a-School" of manyindividualsandisanacknowledgedcontributorto Responsibility (CSR)hasmadeanincrediblemarkonthelives Mohan Reddy'sdedicatedcommitmenttoCorporateSocial 2014. National AwardforExcellenceinCorporateGovernance coveted ICSI(InstituteofCompanySecretariesIndia) Fellow ofTheInstituteEngineers(India).Cyientwonthe KL University,Vaddesaram,Vijayawada.MohanReddyisa Visakhapatnam, andDoctorofScienceHonorisCausafrom Doctor ofSciencefromtheAndhraUniversity, Technological University,Hyderabad,Honorarydegreeof an HonoraryDoctorate(Ph.D.)fromtheJawaharlalNehru Management Association(HMA)in2016.Healsoreceived conferred theLifetimeAchievementAwardbyHyderabad achievements ofexceptionalmerit.MohanReddywas given bytheIITtoitsalumniinrecognitionoftheir Institute ofTechnology(IIT)Kanpur.Itisthehighestaward conferred theDistinguishedAlumnusAwardbyIndian Indian andtheseventhrecipientglobally.MohanReddywas global awardforengineeringandMohanReddywasthefirst Mohan Reddyin2011.Thisistheindustry'smostprestigious division conferredthedistinguishedLeadershipAwardon The AmericanSocietyofMechanicalEngineers(ASME)CIE 10 heavyequipmentcompaniesareCyient'scustomers. 2 ofthetop5globalsemiconductorcompanies,7 aerospace companies,5ofthetopglobalrail India aspertheZinnovannualreport.7oftop10global high valueresearchanddevelopment(R&D)servicesfrom report. Cyientisalsothelargestindependentexporterof services exportersfromIndiaaspertheNASSCOMannual clients. Cyientisconsistentlyrankedamongthetop15IT manufacturing (CAD/CAM)solutionsservinginternational Reddy pioneeredcomputer-aideddesign/computer-aided Limited (formerlyInfotechEnterprises)in1991,Mohan development (ER&D)services.HavingestablishedCyient the globalmapforleading-edgeengineeringresearchand B.V.R. MohanReddyisavisionarywhohasplacedIndiaon Item No.3 issued bytheInstituteofCompanySecretariesIndia Statement providedpursuanttotheprovisionsofSecretarialStandard2onGeneralMeetings BRIEF PROFILESOFDIRECTORSSEEKINGRE-APPOINTMENT out atItemNo.3above. or interested,financiallyotherwise,intheresolutionset Personnel ofthecompanyandtheirrelativesisconcerned relatives, noneoftheotherDirectors/KeyManagerial Except MohanReddyandKrishnaBodanaputheir normal businesshours. inspection attheregisteredofficeofcompanyduring which MohanReddyisadirector/memberareavailablefor company. Thenamesofcompaniesandthecommitteesin Mohan Reddyholds1,46,14,888equitysharesinthe Board ofNationalSkillDevelopmentCorporation(NSDC). Mohan ReddyhasalsobeenappointedasaDirectoronthe Hyderabad for2012-15andre-nominated2015-18. Reddy astheChairmanofBoardGovernors,IIT- as theVisitorofIIT-Hyderabad,hasnominatedMohan Kakinada. TheHonorablePresidentofIndiainhiscapacity lIlT, Hyderabad,andMemberofExecutiveCouncilJNTU, Member ofCentreforInnovationandEntrepreneurshipat Member ontheBoardofNIITUniversity,Neemrana; education inIndia.Towardsthis,MohanReddyservesas Mohan Reddyhasimmensepassiontowardspromoting in Indiaforstart-upssetupbyGovernmentofTelangana. Founding DirectorofT-Hub,thelargestincubationcentre Southern Region(2008-2009).MohanReddyisalsoa Chairman oftheConfederationIndianIndustry(CII), Connect program.MohanReddyhasalsoservedasthe services. AtNASSCOM,heestablishedtheMember of initiatives,includinginstitutingindustryresearchonER&D engineering servicescouncil(ER&DForum)througharange Mohan ReddylaidthefoundationofNASSCOM's member oftheExecutiveCouncilsince2003.AtNASSCOM, 2016, asViceChairmanduring2014-2015,andhasbeena Mohan ReddyservedasChairmanofNASSCOMfor2015- Trustees ofLVPrasadEyeInstitute,Hyderabad. Kakinada alone.MohanReddyisaMemberofBoard Kakinada andhascreatedover1,000technologyjobsin towns ofAndhraPradeshsuchasVisakhapatnamand growth storybysettingupdevelopmentcentersinTier-2 Andhra Pradesh.CyientcontinuestocontributeIndia's Library attheAksharaVidyalayaSchoolinNelloreDistrict, 26 31 Annual Report 2015-16 cyient.com forum fortheadvancementofengineeringthatembraces Engineers Australia.Australiaisthenational In July2014Krishnawasconferredwith"Fellowship"of verticals. several keycustomersinengineeringservicesacross for therelationshipbuildingandaccountmanagementof engagements. AsKeyAccountManager,hewasresponsible and wasanintegralpartofmanysuccessfulcustomer he engagedwithmanyofCyient'skeyaerospacecustomers vertical andKeyAccountManager.AsMarketingManager the dualrolesofMarketingManagerforAerospace services inEurope.HelatermovedtoIndia,whereheheld he joinedasaSalesManager,drivingsalesofengineering Krishna Bodanapu'sjourneyatCyientbeganin2001,when new markets. opportunities andextendingcurrentserviceofferingsto excellence. Heisalsoresponsibleforidentifyingnewgrowth delivery, sales,marketing,strategyandorganizational this role,hemanagesallbusinessoperationsincluding Krishna BodanapuisManagingDirector&CEOatCyient.In Item No.4 4 above. financially orotherwise,intheresolutionsetoutatItemNo. company andtheirrelativesisconcernedorinterested, of theotherDirectors/KeyManagerialPersonnel Except KrishnaandMohanReddytheirrelatives,none hours. registered officeofthecompanyduringnormalbusiness is adirector/memberareavailableforinspectionatthe names ofcompaniesandthecommitteesinwhichKrishna Krishna holds18,50,760equitysharesinthecompany.The Management atNorthwesternUniversity. in BusinessAdministrationfromKelloggSchoolof Engineering fromPurdueUniversityandaMaster'sdegree Krishna BodanapuhasaBachelor'sdegreeinElectrical company's flagshipproductline,APEX. Jose, California.AtAltera,hewasresponsibleforthe a leadingsemiconductormanufacturingcompany,inSan Prior tojoiningCyient,KrishnawaswithAlteraCorporation, diverse bodywithover100,000members. all disciplineofengineeringandisthelargestmost 26 32 Annual Report 2015-16 cyient.com President, NASSCOM R. Chandrashekhar the industry. of NASSCOM activities andiswidely respected across Mr. Reddy hasbeenclosely involved across theentire spectrum WKHƬUVWVWUDWHJ\UHSRUWIRUWKHVHFWRU$V&KDLUPDQ1$66&20 founder oftheNASSCOM EngineeringForum andhelpedideate closely withNASSCOM andkey members. Mr. Reddy was the Reddy hasalways focused onexpanding theindustry, working around product design,andanalytics. The leadership ledbyMr. highway withemphasisonendto endsolutioncapabilities upcoming Hyderabad Metro. Itisalready onboard thedigital infrastructure growth story- examples includeDelhiMetro, focused onIndiandomesticmarket –acrucialpillar inIndia’s Besides focusing oninternationalmarkets, ithasalsoremained QHZPDUNHWVtDUROHPRGHOIRUQLFKHƬUPVDLPLQJWRVFDOHXS of organic andinorganic, helpingaddcapabilities, andtarget and semiconductors usingahybrid growth strategy -amix across industriessuchasaerospace, transportation, utilities, grew inhigh-endengineeringresearch &designservices- ,QIRUPDWLRQ6\VWHPV DVDVHUYLFHRƪHULQJLQ,QGLD&\LHQW the demandfor mobility andpioneered GIS(Geographical at theoutset,andfocused onwhitespaces. Itanticipated &\LHQWWRRNWKHURDGOHVVWUDYHOHGGLƪHUHQWLDWHGLWVHOIULJKW 26 33 Annual Report 2015-16 cyient.com FINANCIAL HIGHLIGHTS the financialyearended31March2016. Finance Cost EBIDTA Total Income Your directorshavepleasureinpresentingthe25 Dear Shareholders, Directors’ Report Interim dividendpaid( Depreciation Paid upEquityShareCapital Final dividendrecommended( Diluted Earningspershare( Basic Earningspershare( Profit afterTax Interest Minority Share ofprofitinassociatecompany Deferred Tax MAT Credit Tax pertainingtoearlieryears Current Tax Profit beforeTax Exceptional items Reserves your companyhadliquidassets of its operationsandstrategicobjectives. Asat31March2016, Your companymaintainssufficient cashreservestomeet LIQUIDITY as comparedto39.5%inthepreviousyear. distribution tax)asapercentageofprofitaftertaxis40.6% 2016 respectively.Totaldividend(including dividends weredeclaredon15October2015and17March 1 dividends of140%theparvalueequityshare.The During theyearcompanyhasdeclaredandpaidtwointerim Dividend APPROPRIATIONS value of equity share(80%)onparvalueof st Particulars interimdividendwas ` 5pershare.The2 ` /Share) ` ` 3perequityshare(60%)onpar ) ` nd ) interimdividendwas ` /Share) ` 5pershare.Theinterim ` 5,746.7millionas th Directors'Reportonthebusinessandoperationsofyourcompany,for ` 4per 051 041 051 2014-15 2015-16 2014-15 2015-16 20112,7. 350613,969.5 13,590.6 28,577.0 32,041.1 18,535.7 ,9. ,2. ,3. 4,053.6 3,635.0 5,225.9 5,292.9 ,6. ,3. ,3. 2,711.6 2,334.5 3,532.0 3,430.5 3,262.5 2,873.0 4,455.5 4,134.0 ,3. 1,023.6 1,139.4 (133.3) (30.3) 178.8 28.96 29.01 893.0 120.3 562.4 the company. in thempursuanttotheextant StockOptionSchemesof upon exerciseofanequalnumber ofstockoptionsvested each totheassociatesofcompanyanditssubsidiaries Your companyhasallotted1,22,312equitysharesof Allotment ofShares SHARE CAPITAL 31 March2016. no amountofprincipalorinterestwasoutstandingason Your companyhasnotacceptedanydepositsandassuch, FIXED DEPOSITS funds withscheduledbanksanddebtbasedmutualfunds. funds havebeeninvestedinshorttermdepositsandmutual against (5.7) 7.00 87.2 10.3 Consolidated - ` 4,760.6millionatthepreviousyearend.These 78881,6. 15,244.3 16,267.7 17,878.8 31.37 150.4 31.48 712.8 561.8 (1.4) 57.6 50.1 3.00 5.00 22.4 24.0 - (45.7) (30.3) 20.73 20.76 688.0 614.5 562.4 71.6 7.00 2.3 Standalone (Amount in - - - - ` Million) 24.09 24.17 618.1 707.6 561.8
(2.0) 12.0 3.00 5.00 - 5.1 1.3 ` - - 5 26 34 Annual Report 2015-16 cyient.com customers andprospects.This ope testing, certificationand high-value realizationfor support conceptualizing,system engineering,prototyping, This businessunitfocuseson buildingcapabilitiesthat Product Realization group -3,944. the totaloperatingrevenues.Numberofemployeesinthis in anincreaseof0.5%.Thisverticalcontributed57.3% as againstlastyear'srevenuesof The operatingunitgeneratedrevenuesof engineering costsandimprovetimetomarket. want todesigninnovativeproductsfaster,optimizetheir Cyient ispositioningitselfasanidealpartnerforclientswho application knowhowandinnovativebusinessmodels, knowledge combinedwithengineeringexpertise, Consumer, andMedicalindustries.Withdeepdomain Equipment, Oil&Gas,Energy,Mining,Semiconductors, Aerospace &Defense,Transportation,Industrial through productrealizationtoaftermarketservices,across support, fromproductideationanddesignengineering, This operatingunitprovidescompleteproductlifecycle Engineering group -5,343. vertical contributed42.6%.Numberofemployeesinthis rate of9.0%.Asapercentageoperatingrevenues,this as againstpreviousyear's This operatingunitgeneratedrevenuesof across the"Plan-BuildOperate"lifecycleofourcustomers. Operations groupprovidesspecializedservicesspanning Providers andUtilitiesasourcustomers,thisNetwork& With someoftheworld'slargestCommunicationService itself asanendtodatatransformationbusiness. data toalsodevelopinginsightsfromthedata,positioning Transformation grouphasmovedfromcreatingofspatial technology andmappingindustry.Overtheyears,thisData experience inprovidingvariedservicesthegeospatial In theDataTransformation,wehaveover2decadesof addressed. in theindustrywithmarquecustomerssectors enabled thecompanytoemergeasarenownedorganization ranging long-termcustomerengagements,thathas and Operations(DNO)grouphasbeenengagedinwide- customer's valuechain,theDataTransformation,Network With agoaltoprovidespecializedsolutionsacrossour DNO STATE OFAFFAIRS/COMPANY'SPERFORMANCE ` the companyincreasedfrom112,361,065equitysharesof In viewoftheaboveallotments,outstandingshares 5eachto112,483,377equitysharesof ` 5,833.5million,atadegrowth ` 7,106.5million,resulting rating unitgenerated ` 5each. ` ` 7,138.8million 5,308.0million 3D CAD/CAM,e-solutionsoftware andapplicationprovider. Graphics Software(AGS)inLeonberg, Germany,in1992-a solutions inGermany.Itwas establishedasAdvanced Cyient GmbHoffersworld-class engineeringservicesand Cyient GmbH(CG) ensures efficientprojectmanagementinEurope. its parentorganization,itmaintainsclientrelationshipsand organization. Leveragingtheglobalexecutioncapabilityof The companyisanISO9001and27001certified services tocustomersacrosstheEuropeanUnion. Republic wascreatedtoprovideengineeringanddata at theDubaiOffice.InSeptember2015,CyientSRO,Czech Switzerland, whiletheMiddleEastoperationsaremanaged Schweiz GmbHprovidessupporttoourbusinessin support toourbusinessintheBeneluxregion,Cyient Cyient BeneluxBV,basedinBreda,theNetherlandsprovides foundation oftrustandreliability. of itspartnersandcustomershasbuiltastrong The companyenjoyslong-termrelationshipswithseveral design servicesaswellbigdataandanalyticscapabilities. commercial businesses.Inadditionitprovidesengineering 2 telcos,largeutilitycompanies,publicsectoragencies,and Its servicesaredesignedtocaterleadingtier-1andtier- became apartoftheInfotechGroupin1999. Incorporated inLondonasDataviewSolutions1992,it Cyient EuropeLimited(CEL) Cyient whileexecutingprojectsintheAmericasregion. CI leveragesboththelocalandglobaldeliverycapabilityof provinces. of over$230Mworkingacross40statesand6Canadian federal governmentagencies.CIgeneratesannualrevenues companies tosmallorganizationsandlocal,state, CI caterstoabroadspectrumofclients,fromFortune500 working withclientsinNorthAmerica. across theUSandCanada,withover1,600associates engineering servicesinNorthAmerica.CIhas23offices Headquartered inEastHartford,Connecticut,CIprovides Cyient, Inc.(CI) SUBSIDIARIES and customizingproductforemergingmarkets. systems partnerships,acceleratedproductdevelopment Led ProductRealizationforitscustomersbyprovidingsub Industrial, thisbusinessunitofthecompanyoffersDesign Focused onAerospace&Defense,Medical,Railand operating revenues.Numberofemployeesinthisgroup-23 revenues of ` 8.8mil lion andcontributed0.1%ofthetotal . 26 35 Annual Report 2015-16 cyient.com & Industrialbusinesssegments. REPLpossessesand Defence, RailTransportation,Medical Technology,Telecom Mechanical Manufacturing Services inAerospace& a marketleaderinHigh-Mix, High-TechElectronic& in Mysore,Karnatakawith3manufacturingfacilitiesREPLis life cyclesolutionsettoitscustomers.Establishedin1993 expression ofitsS3strategytoprovideacompleteproduct In 2015CyientacquiredamajorityinterestinREPLasan Rangsons ElectronicsPrivateLimited(REPL) manufacturing andenergymarkets. growth. Particularfocusisonsemiconductor, huge potentialthattheChinamarketbringstoitsfuture to supportitsglobalcustomersinChinabutalsocapture Beijing. CEBLseesChinaashavinglongtermmarketnotonly Cyient establisheditspresencebysettingupasubsidiaryin Cyient Engineering(Beijing)Limited(CEBL) region. entity becomesveryimportantforthefuturegrowthin CSPL hasastrongcustomerbaseintheregionandthis its customersfromtheengineeringcentreinSingapore. transportation. CSPLhascloseto100engineerssupporting as aerospace,telecommunications,utilitiesandrail provides servicesandsolutionstodiverseindustriessuch Cyient SingaporeistheSouthEastAsiaheadquarter.CSPL Cyient SingaporePteLimited(CSPL) Australia wideandacrosstheAPACregion. delivery centresinSydneyandMelbournewithoperations Pacific customers.CAPLsupportsitscustomersfromglobal network operationsservicestodiverseindustriesitsAsia during thecurrentyear.Itprovidesengineering,dataand year 2014-15,CAPLcommencedcommercialoperations Headquartered inMelbourneandincorporatedduringthe Cyient AustraliaPtyLimited(CAPL) managing projectslocally. organisation, whilemaintainingclientrelationshipsand CKK leveragestheglobaldeliverycapabilityofparent industries. to-end engineeringservicesandsolutionstomanufacturing engineering serviceproviderinJapan.CKKprovidesend- Established in2008CentralTokyo,CKKisaleading Cyient KK(CKK) management. clients withoffshorecostadvantageandonsiteproject CG provideshigh-qualityservicesandsolutionstothe Owing tothelargepoolofengineering,GIS,ITresources, its forayintootherserviceareaslikeGISandITsolutions. After becomingapartofCyientGroupin2000,itextended applications. software developmentfor military,industrialand including aerospaceengineering, mechanicaldesignand We alsoprovideengineering andsupplychainservices, Cyient andPratt&Whitney,apioneerinflighttechnology. Generation Industries.IASIisaassociatecompanybetween professional servicestoDefense,Aerospace,andPower Services Inc.providesengineeringoutsourcingandother Established in2003PuertoRico,InfotechAerospace Infotech AerospaceServicesInc.(IASI) executing projects. Energy &NaturalResourcesitsglobaldeliverymodelin Transportation, Medical,Telecommunications,Utilities, such asAerospace&Defence,HeavyEngineering, CIPL leveragesCyient'srelationshipsindifferentverticals model. add valuetocustomerswiththeprovenglobaldelivery machines anddevices,theunmatchedcommitmentto the vastamountofdatageneratedbysensorsembeddedin the uniqueapproachinacquiring,managingandanalyzing analytics andactionableintelligence.CIPLpridesitselfon deliver quantifiablebusinessresultsthroughsmartdata CIPL enablescustomersdrivebusinessinnovationand subsequently renamedCyientInsightsPrivateLimited. Datasciences CompanyinOctober2014.Thecompanywas Limited, Hyderabad,IndiaandTroy,Michigan,USAbased Cyient acquiredamajoritystakeinInvatiInsightsPrivate Cyient InsightsPrivateLimited(CIPL) September 2015. The Companydisinvestedits100%stakeinIEITSPLon16 Private Limited(IEITSPL) Infotech EnterprisesInformationTechnologyServices Telangana andAndhraPradeshdated2March2016. Court ofJudicatureatHyderabadforthestates merged effective1April2015videorderoftheHon'bleHigh IGIPL, awhollyownedsubsidiaryofthecompany,was Infotech GeospatialIndiaPrivateLimited(IGIPL) manufacturing, sourcinganddesignsolutions. engineered productsderivedfromacombinationof addressed byasetofseasonedexpertstodelivervalue- emerging marketatdifferentfeature/pricepoint)are pricing pressure,suppliercostescalationorneedtoenter techno-commercial stresspointsfacedbyclients(e.g., solutions totheirclientsaroundtheworld.Inmanycases, units ofCyienttoextendDesignLedManufacturing Since acquisition,REPLisbeingalignedwiththe7business electro-mechanical productstoclientsintheseindustries. thatenableittosupply maintains qualitycertifications 26 36 Annual Report 2015-16 cyient.com regulatory policy,shoulddoso inaresponsiblemanner. Principle 7:Business,whenengaged ininfluencingpublicand efforts torestoretheenvironment. Principle 6:Businessshould respect, protect,andmake rights Principle 5:Businessesshouldrespectandpromotehuman who aredisadvantaged,vulnerableandmarginalized. be responsivetowardsallstakeholders,especiallythose Principle 4:Businessesshouldrespecttheinterestsof,and employees. Principle 3:Businessesshouldpromotethewellbeingofall their lifecycle. that aresafeandcontributetosustainabilitythroughout Principle 2:Businessesshouldprovidegoodsandservices themselves withEthics,TransparencyandAccountability. Principle 1:Businessesshouldconductandgovern company arebrieflydescribedasfollows: The nineareasofbusinessresponsibilityadoptedbythe Corporate Affairs(MCA). Responsibilities ofBusiness'issuedbytheMinistry Guidelines onSocial,EnvironmentalandEconomical The companyhas BUSINESS RESPONSIBILITYREPORT enclosed elsewhereinthisreport. statements ofcompany'ssubsidiariesinFormAOC-1is statement containingsalientfeaturesofthefinancial Pursuant tosection129(3)oftheCompaniesAct,2013,a program fromvariousoriginalequipmentmanufacturers. IHL iswellpositionedtoundertakeworkunderoffset aerospace domain. performance analysisandmaintenancemonitoringinthe publications, repairdesign,servicebulletins,testing, after marketengineeringandsupportservices,i.e.,technical Aeronautics Limited.IHLdeliversengineeringaswell IHL isajointventurebetweenCyientandHindustan development andsoftwareapplications. up, testingandanalysis,controlsystemdesign, dynamics, combustionstudies,preparationofdigitalmock and rotordynamicanalysis,aeronautics,computationalfluid thermo andmechanicaldesign,structural,stress,thermal offers designservicesinthefieldofaerospace,viz.,aero through ManufacturingProgrammeManagement.IHL systems andcomponents,prototypingsupplyofthese conceptual design,re-designandderivatesofmodules, IHL aimstoprovidecomprehensivesolutionsinvolving Infotech HALLimited(IHL) suomoto adoptedthe'NationalVoluntary beyond charityandbelievesthat asaresponsiblecompany needs ofallstakeholders.Thecompany's CSRinitiativegoes Corporate SocialResponsibility (CSR)aimsatbalancingthe measure thatisproportionate toitssuccessinbusiness. The companybelievesingiving backtosocietyinsome CORPORATE SOCIALRESPONSIBILITY all itsforms,includingextortionandbribery. Principle 10: Anti-Corruption environmentally friendlytechnologies. Principle 9: environmental responsibility;and Principle 8: approach toenvironmentalchallenges;· Principle 7: Environment employment andoccupation. Principle 6: Principle 5: compulsory labour;· Principle 4: collective bargaining;· association andtheeffectiverecognitionofrightto Principle 3: Labour rights abuses. Principle 2: protection ofinternationallyproclaimedhumanrights;and· Principle 1: Human Rights United NationsGlobalCompact: iscommitted tocomplywiththefollowingprinciplesof a memberoftheGlobalCompactNetwork,company labour standards,theenvironmentandanti-corruption.As influence, asetofcorevaluesintheareashumanrights, embrace, supportandenact,withintheirsphereof Compact. TheUNGlobalCompactaskscompaniesto India –theIndianarmofUnitedNations’Global The companyisamemberoftheGlobalCompactNetwork Global CompactNetworkIndia Annexure 'A'. The businessresponsibilityreportisenclosedas to theircustomersandconsumersinaresponsiblemanner. Principle 9:Businessshouldengagewithandprovidevalue equitable development. shouldsupportinclusivegrowthand Principle 8:Business makesurethattheyarenotcomplicitinhuman theeffectiveabolitionofchildlabour;and· the eliminationofdiscriminationinrespect encourage thedevelopmentanddiffusionof Businessesshouldupholdthefreedomof undertakeinitiativestopromotegreater Businesses shouldsupportandrespectthe Businesses shouldsupportaprecautionary Businesses shouldworkagainstcorruptionin the eliminationofallformsforcedand 26 37 Annual Report 2015-16 cyient.com accountability, evaluationofboard membershelpsin: performance andeffectiveness. Inadditiontogreaterboard directors toassesstheir individual andcollective company, evaluationsprovide anongoingmeansfor greater boardaccountability andeffectiveness.Forthe potentially effectivewaytorespondthedemandfor and oftheindividualdirectors,onanannualbasis,isa The companybelievesthatformalevaluationoftheboard Board evaluationandassessment governance. details ofwhichformpartthereportoncorporate During theyear,fivemeetingsofboardwereheld, Number ofboardmeetingsduringtheyear report, whichformspartofthisreport. of theActhavebeendisclosedincorporategovernance remuneration andothermattersprovidedinsection178(3) The Company'spolicyondirectors'appointmentand other details Policy ondirectors'appointmentandremuneration the year. There isnochangeinthekeymanagerialpersonnelduring contributions duringhistenureasdirector. appreciation andgratitudetohimforhisvaluable from 6August2015.Yourdirectorsplaceonrecordtheir Mr. ShankarNarayananceasedtobeaDirectorwitheffect Cessations ensuing AGM. Board. Therearenonewappointmentsbeingmadeinthe During theyearnoadditionaldirectorswereinductedon as anannexuretothenoticeconveningAGM. directors whoareproposedtobere-appointedprovided General MeetingsissuedbyICSI,briefparticularsofthe Pursuant totheprovisionsofSecretarialStandard2on appointment. Annual GeneralMeeting(AGM)andofferthemselvesforre- Mr.Krishna Bodanapuretirebyrotationattheensuing Companies Act,2013,Mr.B.V.R.MohanReddyand company andtheprovisionsofsection152 Pursuant toArticle56oftheArticlesAssociationyour Appointments/Re-appointments and DisclosureRequirements)Regulations,2015 provisions oftheActorunderSEBI(ListingObligations None ofthedirectorscompanyisdisqualifiedunder BOARD OFDIRECTORS&KEYMANAGERIALPERSONNEL Report isenclosedasAnnexure'B'. conducted throughCyientFoundation.TheCSRAnnual tomorrowtogether.TheCSRinitiativesare designing it shouldtakeintoaccountitsimpactonsocietyasmuch Stock OptionPlansinoperation forgrantingstockoptions During theyearcompany hadtheInfotechAssociate EMPLOYEE STOCKOPTION PLANS which formspartofthisreport (Annexure'C'). Report ofthesecretarialauditorisgivenasanannexure contain anyqualifications,reservationsoradverseremarks. The auditors'reportandsecretarialdonot REPORT AUDITORS' REPORTANDSECRETARIAL resolution formspartofthenoticeconveningAGM. their appointmentateveryAGM.Accordingly,requisite AGM tobeheldintheyear2019,subjectratificationof company heldon17July2014tilltheconclusionof28 process coversthefollowingaspects: has overallstewardshipfortheprocess.Theevaluation The Leadership,Nomination&RemunerationCommittee board assessmentandevaluationprocessduring2015-16. improves. Inthisbackground,theboardundertookaformal and overalllevelofparticipationengagementalso performance, thecompanyensuresthatcommunication By focusingontheboardasateamanditsoverall company fromtheconclusionof23 Accountants, wereappointedasstatutoryauditorsofthe rules framedthereunder,DeloitteHaskins&Sells,Chartered Pursuant totheprovisionsofsection139Actand AUDITORS discussed andacteduponaccordinglyattheboard. provides feedbacktotheExecutiveChairman.Thesameis deliberations attheboard.TheLeadIndependentDirector strategy, riskmanagementandqualityofdiscussion also seeksfeedbackonboardandcommitteecharters, induction oftheboardtoeffectivenessandgovernance.It in ajudiciousmanner-rangingfromcompositionand The evaluationprocesselicitsresponsesfromthedirectors relations Improved Chairman-ManagingDirectorBoard responsibilities and Greater claritywithregardtomembers'rolesand Better collaborationandcommunication More effectiveboardprocesses Feedback onmanagementsupporttotheBoard the Chairman,and Feedback fromtheNon-ExecutiveDirectorsto of BoardCommittees Evaluation oftheperformanceandeffectiveness of theboard Evaluation oftheperformanceandeffectiveness Peer andself-evaluationofDirectors rd AGMofthe th 26 38 Annual Report 2015-16 cyient.com at the24 based onthespecialresolutionpassedbyshareholders scheme named'CyientAssociateStockOptionPlan2015' During theyearcompanyputinplaceanewstockoption as Annexure'D'. Disclosures pursuanttotheaboveRegulationsareenclosed (Share BasedEmployeeBenefits)Regulations,2014. accordance withtheSecuritiesExchangeBoardofIndia to theassociatesofcompanyanditssubsidiaries,in i theyhavedevisedproper systemstoensure vi. they havelaiddowninternalfinancialcontrolstobe v. theyhavepreparedtheannualaccountsonagoing iv. iii. theyhaveselectedsuchaccountingpoliciesand ii. inthepreparationofannualaccounts, i. knowledge andability,confirmthat: (‘the Act’)theboardofdirectors,tobesttheir Pursuant toSection134(5)oftheCompaniesAct,2013, DIRECTORS' RESPONSIBILITYSTATEMENT Annexure 'F'. on ManagementDiscussion&Analysisisenclosedas Schedule VoftheSEBI(LODR)Regulations,2015,areport Pursuant totheprovisionsofRegulation34readwith MANAGEMENT DISCUSSION&ANALYSIS The detailsareenclosedasAnnexure'E'. EXCHANGE EARNINGSANDOUTGO DEVELOPMENT, TECHNOLOGYABSORPTION,FOREIGN CONSERVATION OFENERGY,RESEARCHAND year. been grantedbythecompanyfromthisschemeduring National StockExchangeofIndiaLimited.Nooptionshave principle approvalfortheschemefromBSELimitedand effectively. and thatsuchsystemswereadequate andoperating compliance withtheprovisions ofallapplicablelaws controls areadequateandoperating effectively; followed bythecompanyandsuchinternalfinancial concern basis; preventing anddetectingfraudotherirregularities; safeguarding theassetsofcompanyandfor accordance withtheprovisionsofActfor maintenance ofadequateaccountingrecordsin they havetakenproperandsufficientcareforthe profit ofthecompanyforthatperiod; Company attheendoffinancialyearand a trueandfairviewofthestateaffairs estimates thatarereasonableandprudentsoastogive applied themconsistentlyandmadejudgments and therearenomaterialdepartures; applicable accountingstandardshavebeenfollowed th AGM.Companyhassinceobtainedthein- .Thepercentageincreaseinremunerationofeach b. Theratiooftheremunerationeachdirectorto a. given below: Remuneration ofManagerialPersonnel)Rules,2014are with rule5(1)oftheCompanies(Appointmentand The informationrequiredunderSection197oftheActread Particulars ofemployees Annexure 'H'. under theprovisionsofsection92Actisenclosedas The extractoftheannualreturninFormMGT9asrequired EXTRACT OFANNUALRETURN(MGT9) enclosed asAnnexure'G'. (Accounts) Rules,2014aregiveninFormAOC-2andis 134(3)(h) oftheActreadwithrule8(2)Companies transactions withrelatedpartiespursuanttosection scope ofsection188(1)theAct.Informationon None ofthetransactionswithrelatedpartiesfallsunder RELATED PARTYTRANSACTIONS been disclosedinthefinancialstatements. The particularsofloans,guaranteesandinvestmentshave INVESTMENTS PARTICULARS OFLOANS,GUARANTEESAND Company Secretaryintheirreports. remarks madebythestatutoryauditors/Practising Further, therearenoqualifications,reservationsoradverse Sudheendhra Putty Ajay Aggarwal Krishna Bodanapu inthefinancialyear B.V.R MohanReddy Secretary Company and Officer % increase in Officer, ChiefFinancial Directors, ChiefExecutive officer, companysecretaryinthefinancialyear: director, chiefexecutiveofficer,financial Andrea Bierce John Paterson Harsh Manglik Som Mittal K. Ramachandran M.M. Murugappan Independent Directors RatiotoMedian Krishna Bodanapu B. V.R.MohanReddy Directors Executive Company forthefinancialyear: median remunerationoftheemployees 12% 84.7% remuneration 13% -9.0% remuneration 108.21 85.92 2.00 2.00 2.00 4.30 4.30 2.00 26 39 Annual Report 2015-16 cyient.com i. .PercentageincreaseordecreaseinthemarketquotationsofsharesCompanycomparisontorateat h. VariationsinthemarketcapitalisationofCompany,priceearningsratioasatclosingdatecurrent g. Theexplanationontherelationshipbetweenaverage e. Thenumberofpermanentemployees ontherollsof d. Thepercentageincreaseinthemedianremuneration c. j Comparisonofremunerationthekeymanagerialpersonnelagainstperformance oftheCompany: . Average percentileincreasealreadymadeinthesalariesofemployeesotherthanmanagerialpersonnel Remuneration (as%ofPBT) Profit beforeTax(PBT) revenues Remuneration as%of Revenue One bonusshareissueforevery2sharesof Remuneration Particulars which theCompanycameoutwithlastpublicoffer: Price EarningsRatio Market Capitalization(` Particulars financial yearandpreviousyear: reflects companyperformance,theperformancepay countries. Inordertoensurethatremuneration is inlinewiththemarkettrendsrespective varying from1%to3%.Theincreaseinremuneration Employees outsideIndiareceivedwageincrease 4 %to14%,basedonindividualperformance. of 8%inIndia.Theindividualincrementsvariedfrom On anaverage,employeesreceivedannualincrease increase inremunerationandCompanyperformance: Company: of employeesinthefinancialyear: Market Price(NSE) Market Price(BSE) Increase inthemanagerialremunerationforyearwas24.4%. 8%, afteraccountingforpromotionsandothereventbasedcompensationrevisions. The averageannualincreasewasaround8%.However,duringthecourseofyear,totalisapproximately thereof andpointoutifthereareanyexceptionalcircumstancesforincreaseinthemanagerialremuneration: last financialyearanditscomparisonwiththepercentileincreaseinmanagerialremunerationjustification Sub divided1shareof * Adjustedfor1:1bonusissuein2002and2010 13,123 ` 426.7 425.4 IPODate March 31,2016 10into2sharesof lks 7,6 6,0 -15.30 566,603 479,967 lakhs) ...MhnRdyKihaBdnp jyAgra Sudheendhra Putty Aggarwal Ajay Bodanapu Krishna B.V.R. MohanReddy 12,455,620,209 2,873,032,762 8% 51,663,911 Executive Chairman September 30,1998 September 25,1997 ` 1.80% 0.41% 5in2006 ` 5eachin2006 March 31, 2016 March 31, 2015 % Change % March31,2015 March 31,2016 05 08 -1.50 20.86 20.55 .Comparisonoftheremunerationkey f. 5016512,949,163 65,061,685 MD & CEO (as %ofPBT) Remuneration ofKMP Profit beforeTax(PBT) (as %ofrevenue) Remuneration ofKMPs Revenue managerial personnel(KMP)inFY16 Aggregate remunerationofkey Company: managerial personnelagainsttheperformanceof an individual'sperformance. is alsolinkedtoorganizationperformance,apartfrom IPO Price Adjusted IPO price by % Change % AdjustedIPOpriceby Price IPO 2.010.36 7.31 124.30 87.70 2.26% 0.52% Chief Financial considering CA* Officer 0.45% 0.10% 12,455,620,209 2,873,032,762 (Amount in 32,950,356 4019 5719 Secretary 2,126,663 Company 0.07% 0.02% 1.1 0.3 ` ) 26 40 Annual Report 2015-16 cyient.com n. Affirmationthattheremunerationisasper m. Theratiooftheremunerationhighestpaid l. Thekeyparametersforanyvariablecomponentof k. prevention ofundesiredbehaviour. AnInternal down theguidelinesforidentification, reportingand at preventionofharassment ofemployeesandlays Sexual Harassment(POSH)at Workplacewhichaims Your Companyhasadopteda policyonPreventionof and harassmentincludingsexualharassment. provide anenvironmentthatisfreefromdiscrimination practices. Companyalwaysendeavourstocreateand working initspremisesthroughvariouspoliciesand and harassmentfreeworkplaceforeveryindividual Your Companyhasalwaysbelievedinprovidingasafe Redressal) Act,2013 Women atWorkplace(Prevention,Prohibitionand Particulars relatingtotheSexualHarassmentof copy ofthesamemaywritetoCompanySecretary. Company. Anyshareholderinterestedinobtaininga open forinspectionattheRegisteredOfficeof In termsofSection136theAct,saidannexureis sent tothemembersexcludingaforesaidannexure. report. Further,thereportandaccountsarebeing provided inaseparateannexureformingpartofthis Remuneration ofManagerialPersonnel)Rules,2014,is Rule 5(2)oftheCompanies(Appointmentand required underSection197(12)oftheActreadwith The statementcontainingparticularsofemployeesas its remunerationpolicy. The companyaffirmsthattheremunerationisasper remuneration policyoftheCompany: None. highest paiddirectorduringtheyear: directors butreceiveremunerationinexcessofthe director tothatoftheemployeeswhoarenot matters otherthanatmeetings. meetings, aswellthetimespentonoperational and contributionattheboardcertaincommittee the non-executivedirectorsbasedontheirattendance & RemunerationCommitteeanddistributedamongst on therecommendationsofLeadership,Nomination is decidedeachyearbytheboardofdirectors,based applicable provisionsoftheAct.Thesaidcommission net profitsofthecompanyascomputedunder non-executive directorswithintheceilingof1% October 2014approvedpaymentofcommissiontothe The membersofthecompanyvidepostalballotin remuneration availedbythedirectors: www.cyient.com/investors/corporate-governance). is availableonthewebsite oftheCompany Policy fordeterminingmaterial subsidiariesoftheCompany governance). (http://www.cyient.com/investors/corporate- directors areavailableonthewebsiteofCompany Details ofthefamiliarizationprogrammeindependent DISCLOSURE REQUIREMENTS enclosed asAnnexure'I'. compliance ofconditionscorporategovernanceis where inthereport.TheAuditors'Certificateregarding under SEBI(LODR)Regulations,2015ispublishedelse the provisionsofCorporateGovernanceCodestipulated practices. AreportonCorporateGovernancepursuantto Corporate Governanceandimplementthebestgovernance The companywillcontinuetoupholdthetruespiritof CORPORATE GOVERNANCE analysis reportpublishedelsewhereintheannualreport. company ispublishedinthemanagementdiscussionand A moredetailedanalysisoftheriskmanagementin reviewed. mechanism hasbeenputinplaceandthesameisregularly controls. Acomprehensiveenterpriseriskmanagement additional oversightintheareaoffinancialrisksand ensuring itseffectiveness.Theauditcommitteehas responsible forreviewingtheriskmanagementplanand risk managementinthecompany.Thecommitteeis committee toidentify,evaluate,mitigateandmonitorthe The boardofdirectorshasformedariskmanagement RISK MANAGEMENT during 2015-16. There werenocomplaintsreceivedunderthepolicy During theyearcompany: and followstheguidelinesprovidedinPolicy. redressal ofcomplaintsrelatedtosexualharassment constituting themajority)whichisresponsiblefor the seniormanagement(withwomenemployees Complaints Committee("ICC")hasbeensetupfrom for allassociates. created anonlinetrainingprogrammeonPOSH this page&educatethemselvesaboutPOSH. with amailertoallassociatesthelinkview created apageinCompany'sinternalportalalong more awarenessaboutPOSH&itsprocesses at eachlocationtoconnectwiththem&create organized hourlysessionsforfemaleassociates (http:// 26 41 Annual Report 2015-16 cyient.com Note: Exceptasotherwisestated,allthenumbersinDirectors'Reportareonstandalonebasis. enclosed Annexure'K'. Regulation 17oftheSEBI(LODR)Regulations,2015is The CEO/CFOcertificationtotheboardpursuant Annexure 'J'. the CodeofConductcompanyisenclosedas personnel ofthecompanyhaveaffirmedcompliancewith members oftheboardandseniormanagement Director &CEOofthecompanydeclaringthatall (LODR) Regulations,2015,adeclarationbytheManaging Pursuant totheprovisionsofRegulation17SEBI CEO's DECLARATION investors/corporate-governance). (LODR) Regulations,2015(http: provisions ofthesection177(9)ActandSEBI concerns. Theprovisionsofthispolicyareinlinewiththe including directorsoftheCompanytoreportgenuine Blower PolicytoprovideVigilMechanismforemployees The CompanyhasformulatedandpublishedaWhistle investors/corporate-governance). on thewebsiteofCompany Policy ondealingwithrelatedpartytransactionsisavailable (http://www.cyient.com/ //www.cyient.com/ of thecompanyatalllevels. appreciation forthecommittedservicesofassociates Your directorswishtoplaceonrecordtheirdeepsenseof and lookforwardtotheirsupportinallfutureendeavours. Exchange BoardofIndia,theStockExchangesandothers of CorporateAffairs/RegistrarCompanies,Securitiesand Ministry ofCommerce,theReserveBankIndia, Technology, theDirectandIndirecttaxauthorities, Department ofCommunicationandInformation Parks ofIndia,DevelopmentCommissioners-SEZ, State Governments,particularlytheSoftwareTechnology extended bythevariousDepartmentsofCentraland directors wouldliketomakeaspecialmentionofthesupport for theirsupporttothecompanyduringyear.Your company's customers,shareholders,vendorsandbankers The boardofdirectorsexpressesitsthankstothe ACKNOWLEDGMENTS ae:21April2016 : Date Hyderabad : Place For andonbehalfoftheBoard B.V.R. MohanReddy Executive Chairman (DIN-00058215) 26 42 Annual Report 2015-16 cyient.com Business ResponsibilityReport .Listthreekeyproducts/services thattheCompany 8. Sector(s)thattheCompanyisengagedin:Engineering, 7. FinancialYearreported:2015-16 (1April2015to31 6. E-mailid:[email protected] 5. Website:www.cyient.com 4. Registeredaddress:4thFloor,'A' Wing,PlotNo.11, 3. NameoftheCompany:CyientLimited(Formerly 2. Corporate IdentityNumber(CIN)oftheCompany 1. Section A:GeneralInformationabouttheCompany Annual BusinessResponsibilityReport-2015-16 Nations’ GlobalCompact. Global CompactNetworkIndia-theIndianarmofUnited company hasalsodiscernedtheprinciplesenunciatedby Institute ofCompanySecretariesIndia(ICSI).The the GRIguidelinesandsalutaryguidanceprovidedby preparation oftheReport,companyhaslargelyfollowed Report asenvisagedunderthesaidguidelines.In What followshereunderistheBusinessResponsibility Government ofIndia,MinistryCorporateAffairs. Economic ResponsibilitiesofBusiness",issuedbythe "National VoluntaryGuidelinesonSocial,Environmentaland corporate citizen,thecompanyhassuomotoadopted To thisendandindischargeofitsresponsibilitiesasagood in thelongterm. simultaneously toensureasmoothcontinuityofbusiness environmental sustainabilitymustbesatisfied sustainability canonlysucceedintheshortterm;socialand believes thatasinglemindedfocusoneconomic meet theneedsoffuturestakeholders.Thecompany communities andsoon)withoutcompromisingitsabilityto shareholders, associates,clients,pressuregroups, and indirectstakeholdersofthecompany(including For thecompany,itmeansmeetingneedsofdirect the social,culturalandeconomicenvironment. account everydimensionofhowthebusinessoperatesin towards thenaturalenvironment,butalsobytakinginto associate valuebynotonlycreatingagreenstrategyaimed is abusinessapproachthatcreateslongtermcustomerand companythatcorporatesustainability It isthecredoof manufactures/provides (as inbalancesheet)- realization. geospatial servicesandsolutions andproduct March 2016) - 500081 Software UnitsLayout,Infocity,Madhapur,Hyderabad Infotech EnterprisesLimited) :L72200TG1991PLC013134 . Forthecompany,good governanceisanintrinsicpart 1.1 Ethics, TransparencyandAccountability. Businesses shouldconductandgovernthemselveswith Principle 1. Doanyotherentity/entities(e.g.suppliers, 3. DotheSubsidiaryCompany/Companies participatein 2. 4 1 Section C:OtherDetails .Totalnumberoflocationswherebusinessactivityis 9. 3. 2. PaidupCapital( 1. Section B:FinancialDetailsoftheCompany MarketsservedbytheCompany-International 10. . . Total profitaftertaxes( Total Turnover( disclosure. upon anethosoftransparency, accountabilityand Governance practicesinthecompany arepredicated operations andfairness to allstakeholders. accountability tostakeholders, transparencyin the company'sphilosophyoncorporategovernanceis on thetransparencyofoperations.Thecornerstone of itsfiduciaryresponsibility,andhence,emphasisis Yes-More than60% entities? [Lessthan30%,30-60%,More60%] If yes,thenindicatethepercentageofsuchentity/ with, participateintheBRinitiativesofCompany? distributors etc.)thattheCompanydoesbusiness Yes; 9 indicate thenumberofsuchsubsidiarycompany(s)- the BRInitiativesofparentcompany?Ifyes,then Companies? -Yes. (CSR) -( Total SpendingonCorporateSocialResponsibility i NumberofNationalLocations-Hyderabad, ii. NumberofInternationalLocations:Fulllist i. undertaken bytheCompany-38locations. realization. segments, bothinpublicandprivaterealmproduct analytics servicestotheutilityandtransportation telecom sectors,aswelldatatransformationand verticals; geospatialservicestotheutilitiesand engineering, manufacturingandinfrastructure Engineering servicesaddressingsolutionsinthe Does theCompanyhaveanySubsidiaryCompany/ Bangalore, Noida,Kakinada,VizagandWarangal provided elsewhereintheAnnualReport ` ) 4.76crores ` ` ) 56.24crores ) 1,246crores ` ) 233crores Annexure-A 26 43 Annual Report 2015-16 cyient.com . Thecompanyhasdesignedandimplementedacode 1.3 Thecompany'svaluesoperateontheFIRSTprinciple- 1.2 and confidentialityobligations, competitionandfair of conflictsinterests,legalcompliances, disclosures such mattersashonestandethical conduct,avoidance Fairness andPursuitofExcellence. Thecodecovers Teamwork, CustomerDelight, LeadershipbyExample, upholds andlivesby:IntegrityTransparency, encompasses thecorevaluesthatcompany of conductforitsassociates.Thecode company. clients andassociateshelpsbuildatrustworthy decision making.Encouragingfeedbackfromthe information requiredforcooperationandcollective processes andensuresavailabilityofrelevant to success.Thecompanybelievesinclearbilling believes thatafairandopencommunicationisthekey Transparency - ahead. commitments andpromisesstrivesforthesame utmost reliabilityandaccountabilityforallits realistic goals.Thecompanyhasalwaysdemonstrated and actingtrulyaboutthecompany'svision quality, costdeliveryandvaluesystemsspeaking which establishesprofessionalism,dedicationtowards Sincerity - performance. recognizes andrewardsthemfortheirhardwork and treatedwithrespectdignity;thecompany productive environmentiswhereassociatesarevalued Respect - customers. honesty andintegrityfromitsassociates organization andlawofthelandexpectssame committed tothemoralandethicalvaluesof and deliverswhatitpromises.Thecompanyis dimensions ofwork,alignsitsactionswithwords professional standardsandvalues.Thecompanyinall Integrity - objectives. associates tomeettheirpersonalandorganizational encouraging andmotivatingambiencewhichenables backgrounds. Thecompanybelievesinprovidingan environment, irrespectiveoftheircultural associates andcustomersexperienceanunbiased Fairness - continuous basis. company andallrelevantstakeholdersonaholistic Transparency. Thesearearticulatedacrossthe Fairness, Integrity,Respect,Sincerityand isacommitmenttopresentworkplace meansequityandsolidaritywherethe thecompanybelievesthatmost cultivatesthedevelopmentofhigh isanopendoorpolicy.Thecompany . Thecompanyiscommitted tocontinuouslyimprove 2.1 cycle. safe andcontributetosustainability throughouttheirlife Businesses shouldprovidegoodsandservicesthatare Principle 2. Inrecognitionofitsexemplary andlaudablecorporate 1.7 Thecompany recognizesthatindividualshavean 1.6 Withaviewtoprovidinggreaternon-financial 1.5 Thecompanyhasdesignedandimplementedavigil 1.4 policies onanti-briberyandcorruption. transparency. Besides,thecompanyalsohasinplace directors buttressingthesameprinciplesofethicsand applicable forseniormanagementandtheboardof dealing. Thereisamorestringentcodeofconduct its SafetyStandards,Sustainability andEnvironmental Excellence inCorporateGovernance. company wontheGoldenPeacockAwardfor of IndiainDecember,2014.Priortothat,2012,the Governance bytheInstituteofCompanySecretaries 14th NationalAwardforExcellenceinCorporate governance practices,thecompanywasawarded intended toachievenearlyuniversalcompliance. provides commoncorevalues,policiesandprocedures company anditssubsidiariesoperate.Thepolicy data privacyandsecurityrequirementsinwhichthe reinforce itscommitmenttocomplywithapplicable the companyintroducedaDataPrivacyPolicyto inappropriate useordisclosure.Infurtheranceofthis, dealing withthecompanywillbeprotectedfrom expectation thatpersonaldataprovidedduringtheir Non-Financial Disclosures. complies withtheguidancenoteissuedbyICSIon Company SecretariesofIndia(ICSI)andsubstantially secretarial standardsissuedbytheInstituteof disclosures, thecompanyhasvoluntarilyadopted good faith. from reprisalsorvictimizationforwhistleblowingin necessary safeguardsforprotectionofassociates communication. Further,thepolicyalsoprovides legal businessconductanditscommitmenttoopen the highestpossiblestandardsofethical,moraland concerns, inlinewiththeCompany'scommitmentto associates, customersandvendorsanavenuetoraise objective oftheWhistleBlowerPolicyistoprovide unethical behaviourandactualorsuspectedfraud.The of thecompanyandmakeprotectivedisclosuresabout including subsidiariestoapproachtheOmbudsperson formal mechanismforallassociatesofthecompany mechanism (whistleblowerpolicy)thatprovidesa 26 44 Annual Report 2015-16 cyient.com . Thecompanyencouragestheusageofelectronic 2.5 Thecompanyhastiedup withapollutioncontrolboard 2.4 Thecompanyhascanteen/pantryservicesatits 2.3 Thecompanyensuresthatthevarioussupport 2.2 l l l l l l l l below: Management Systemthroughprocessesdefined paper isusedmeticulously. Every paperisusedtotheoptimum andone-sided and society,ingeneral)minimizes theuseofpaper. mode forallitsactivities(withassociates,customers Rules, 2011. compliance withtheE-WasteManagement&Handling agency tohandlethee-wastegeneratedbyitin certified electricalandelectronicwastedisposal pollution. environment friendlymannerwithnocontributionto food wasteisdisposedoffbythecontractorinan associates. Thesaidservicesareoutsourcedandthe various locationstocatertheneedsofits pollution byminimizingtransportation. entrepreneurship andreducingenvironmental of thecompany.Thishelpsinencouraginglocal sourced fromagenciesinthevicinityofoperations in asustainablemanner.Inparticular,theservicesare pantry, transportationareallsourcedandmaintained services suchashousekeeping,securityservices, contractors. among alltheassociates,vendorsand Promoting environmentalandsafetyawareness environmental objectives&targets Setting, maintainingandmonitoringthe processes and non-hazardousmaterials,components Promotion &adoptionofenvironmentalfriendly Reduction ingenerationofidentifiedwastes. hazardous materialintheprocesses. applicable) andcontinuousreductionof using environmentfriendlychemicals(where Prevention ofpollutiontoair,waterandlandby aspects. other requirementsrelatedtoenvironmental Compliance toapplicablelegalrequirementsand sustainable resources. Encouraging useofrenewable/replenishable/ chemicals andnaturalresources. Minimizing theconsumptionofelectricalenergy, 3.1 AtCyient,talentisakeycomponent ofthecompany's employees. Businesses shouldpromote thewellbeingofall Principle 3. non-traditional users. cost technologiesrelevanttomultiplecarescenariosand healthcare, throughthedevelopmentofdisruptive,low- serve thepeopleinworldwithlittletonoaccess and buildingsustainablehealthcareproductsthataimsto Cyient'sMedTech BUworkswithitscustomersondesigning in designingnext-generationRailcars. Cyient workswithworld'sleadingRailTransportationOEMs contribute toattracttravelersawayfromroadtransport- polluting ofthemotorizedtransportationmodes,can change. Rail,asoneofthemostenergyefficientandleast term impactsontheenvironment,healthandclimate pollutants. Thiswillneedtochangeinorderavoidlong- energy sources,generatinggreenhousegasesand Currently transportationdependsheavilyonfossil-based people, andabout70%ofthemwillbelivinginurbanareas. By 2050,itisestimatedthattherewillbemorethan9billion importance asairtravelsurgesinpopularity. sky. Suchsustainabilityadvanceswillonlymagnifyin experience forpeopleonthegroundandpassengersin quieter enginealsomeansaquieter,moreenjoyable engine opensdoorstoincreasedairtravelatairports.A With a75percentreductioninoverallnoisefootprint,the flights anddifferentroutesforplacespeoplewanttogo. can saveairlinesmillions,creatingopportunitiesforcheaper reduction inregulatedemissions.TheGTF'sfuelefficiency consumption by16percentanddeliversa50overall both intheairandonground.Theenginereducesfuel Turbofan alsoaimstoprovidetangiblebenefitsforpeople, focus onlyonperformance.ButthePurePowerGeared - dubbed"TheGreenEngine"Manyaerospaceengines & Whitney'sPurePower®GearedTurbofan™(GTF)engine Over thelast4yearsCyienthasworkedondesigningPratt Case Study: Thecompanyconductstraining programmesonFirst 2.7 ThecompanydisposesthepaperwastetoITC,which 2.6 strategy forsustainablegrowth. Peoplerepresentthe leadership activelyparticipated. 2015-16 duringwhichallassociatesincludingsenior drills atallourlocationsareorganizedduringtheyear emergency situationduringofficehours.Evacuation [Emergency ResponseTeam]memberstohandle Aid andfirefightingtrainingprogramtoERT products. is renownedforpreparationofrecyclingpaper 26 45 Annual Report 2015-16 cyient.com . Associatesatisfactionlevelsplaysaprimeroleat 3.2 keep theassociateengagementlevelshighatCyient. Cyient, therearenumerousactivitiestomeasureand comprise thefollowing: business goals;andthehumanresourcepriorities importance ofaligningitshumanresourceswith most importantasset;thecompanyemphasizes l l l l l l l l u u u various fitness/wellnessrelatedactivities. across theglobeassociatesparticipatedin Cyient HealthMonth: activities and wellness.Belowaresomeengagement we havehadaveryhighfocusonemployeehealth development, floorconnectsandcommunication by 6%.Inadditiontointensifyingleadership A-Sat survey&theengagementscoreimproved of 86%,and10,184associatesrespondedtothe This year,theresponseratereceivedanewhigh working onthoseareasforeffectiveengagement. helps thecompanytoevaluatefeedbackandstart associates providetheirgenuinefeedback.This associate satisfactionsurveyisconductedwhere Associate satisfactionsurvey: initiatives Management andpersonaleffectiveness associate development. human resourcefunctioncontinuedtobe over 12,000associates,theprimeobjectiveof development andtrainingforacompanywith Nurturing astrongworkforcethroughleadership line withorganizationalobjectives Attracting, retainingandengagingassociatesin customers address theneedsofinternalandexternal Integration andprioritizationofapproachesto business needs through systemsandprocessalignedtostrategic Providing pro-activeHRServicedelivered empowering associatestoexcel Building highperformingtalentandteamsby Pledge totakestairs of sixmonths were rewardedforlosingweight overperiod Weight losschallengewhereassociates dental checkups,nutrionistcounseling Health camps-Generalcheck-up,Eye& InNovember2015wherein Everyyear . Thecompany hascontinuousengagementwithits 4.2 Thecompanyvaluesthesupportofitsstakeholders 4.1 are disadvantaged,vulnerableandmarginalized. responsive towardsallstakeholders,especiallythosewho Businesses shouldrespecttheinterestsof,andbe Principle 4. l l l l l same isanalysedforfurtherimprovement. the feedbackofrespective stakeholdersandthe Satisfaction Surveyareconducted eachyeartogauge Associate EngagementSurveyandInvestor their requirements.CustomerSatisfactionSurvey, as documented/detailedelsewhere,caterstoeachof associates, investors,customersandthesociety importance andvalueofthefourkeystakeholders,viz., in aneffectivemanner.Thecompanyrecognizesthe assess theirrequirementsandrespondtoneeds various stakeholderstounderstandtheirconcernsand value-based servicestothestakeholders. towards it.Thecompanyanditsassociatesprovide and respectstheinterestsconcernstheyhave Increaseparticipationandexcitement - Improvecredibilityinselectionprocessby - Createastrongersenseofprideinthe - Instituted Chairman'sAward Badminton, Basketball&Volleyballcourts Campus Branding-Upgradestocafeteria, league online engagementplatformslikeCyientFantasy Participation inVariousCycleraces organization. Plan toextendthisinitiativerestofthe sponsoring associatesparticipatinginMarathons. Hyderabad Marathon.Wehavebeenactively Cyient runforwellness u u Walk amile fitness andfood Blogging onindividualsexperienceswith apart fromManagernomination mechanism forselfandpeernomination amongst associatesbyprovidinga nominees having anindependentjuryevaluatethe etc. increasing visibilitythroughouttheprocess awards -rebrandingtoChairman'sAwards, - 250associatesranthe 26 46 Annual Report 2015-16 cyient.com . Thecompanyintegratesrespectforhumanrightsin 5.2 Thecompanyappreciatesthathumanrightsare 5.1 Businesses shouldrespectandpromotehumanrights Principle 5. TheCompanyiscommittedtoresolvedifferenceswith 4.7 Asagoodgovernancepracticeandtoenhancethe 4.6 Withaviewtoenhancingshareholderdemocracy,the 4.5 Thecompanyproactively engageswithandresponds 4.4 Thecompanyisconsciousoftheimpactitspolicies, 4.3 and actualorsuspectedfraud. make protectivedisclosuresabout unethicalbehaviour approach theOmbudsperson ofthecompanyand associates ofthecompanyincluding subsidiariesto has devisedawhistleblowermechanism toenableall redressal mechanisms.Tothisextent,thecompany impacted bythebusinesshaveaccesstogrievance management systemsandensurethatallindividuals guidelines oftheInternationalBillHumanRights. strive toadherethehumanrightslawsand company's policiesandsystems.TheCompanyshall shall, asfarpracticable,beimbibedinallthe Principles ofStatePolicytheIndianConstitution nature. ThespiritofFundamentalRightsandDirective inherent, universal,indivisibleandinterdependentin stakeholders inajust,fairandequitablemanner. in theAGM.Thisisbeingimplementedthisyeartoo. of theshareholderswhodonotattendandparticipate process willenablethecompanytoassessviews AGMs in2013,2014and2015respectively.This included fortransactionattheand22nd,23rd24th provide theirconsent/dissentontheresolutions internet asachannelforshareholderstoinformally introduced anon-mandatoryballotthroughthe levels ofcorporatedemocracy,thecompany shareholders isnotreflectedinthesame. the requisitemajority,aholisticresponseof that theresolutionsproposedthereatarepassedwith Meeting (AGM)ofthecompanyanddespitefact shareholders donotattendtheAnnualGeneral Further, thecompanyrecognizesfactthatall company extendse-votingaspartofpostalballot. underdeveloped. attention tostakeholdersinareasthatare vulnerable andmarginalized.Itshallalsogivespecial to thosesectionsinthesocietythataredisadvantaged, welfare ofthestakeholders. actions whichadverselyaffectthehealth,safetyand operations onthestakeholdersandshallavoidsuch decisions, productsandservicesassociated ..Thecompanyhasbeencertified asperISO14001- 6.2. Thecompanycomplieswithallapplicablelegal/ 6.1. restore theenvironment. Business shouldrespect,protect,andmakeeffortsto Principle 6. . Policyonsexualharassment: 5.6 Thecompany,withinitssphereofinfluence,promotes 5.5 Thecompanyrecognizestheindividualrightsof 5.4 Thecompanyrecognizesandrespectsthe human 5.3 5.6.1 of allthelocationsinIndia. constituted undertheAct,havebeensetupinrespect Internal ComplaintsCommittees,asrequiredtobe 2004 (EnvironmentalManagement System)standard sustainable development. protection, pollutioncontrol managementand regulatory requirementsrelatedtoenvironment Equality andtheEmpowermentofWomen). against Women(UnitedNationsEntityforGender on theEliminationofallFormsDiscrimination this policyalsomakesuscomplianttotheConvention complaints ofsexualharassment.Implementation place. Thepolicyfurtherprovidesfortheredressalof prevent andprohibitsexualharassmentatthework company hasadoptedandimplementedaPolicyto (Prevention, ProhibitionandRedressal)Act,2013,the Sexual HarassmentofWomenatWorkplace principles ofValuesFIRSTandcomplianceThe commitment totheadoptionofbestpractices, therefore, punishable.Inkeepingwithouravowed place ifinvolvingassociatesisagraveoffenceandis, Sexual harassmentattheworkplaceorotherthan with dignity. associates ofthecompany,haverighttobetreated harassment. Thecompanyalsobelievesthatall without fearofprejudice,genderbiasandsexual working environmentthatenablesemployeestowork provider andiscommittedtocreatingahealthy The companyisanequalemploymentopportunity its valuechain. the awarenessandrealizationofhumanrightsacross safeguards thesameinlinewithadataprivacypolicy. associates abouttheir"personalinformation"and whatsoever andisanequalopportunityemployer. discriminate againstpeopleonanygrounds marginalized groups.Assuch,thecompanydoesnot communities, consumersandvulnerable and beyondtheworkplace,includingthatof rights ofallrelevantstakeholdersandgroupswithin 26 47 Annual Report 2015-16 cyient.com 6.11. Thecompanyspeciallyfocusesonthereductionof 6.9. 6.8. ThecompanyinaphasedmannerisimplementingLED 6.7. Thecompanyinthelast 6.6. Thecompanyalsodisposespaperwastethroughan 6.5. 6.4. Thecompanyisdeterminedtofocusitsattention 6.3. 6.10. commitment toenvironmentalconservation. This certificationtestifiesthecompany'scontinued for fourlocations-twoinIndiaandAustralia. conservation measuresinclude: energy sourcesinitspremises.Thevarious energy usageandencouragestheofalternative the vegetation. levels. Dripirrigationisalsoencouragedforirrigating Allamanda thataidintheconservationofgroundwater adapted plantspeciessuchasCyperusalternifoliusand Regarding conservationofwater,thecompanyhas natural resourcesandalsoman-maderesources. optimization andcontinualreductioninutilizationof commits itselftotakeallnecessaryinitiativestowards Environmentally responsiblecitizen,thecompany varied businessoperationsandactivities.Beingan objectives ofsustainabledevelopmentthroughits achieve economic,ecologicalandsocialresponsibility The companyhasapronouncedcommitmentto resulting in40%reduction. Manikonda andKakinada)towaterlandscapingarea water fromSTP(SewageTreatmentPlantat consumption ofgroundwaterbyusingthetreated The companyhasbeensuccessfulinreducing consumption. lighting inallfacilitiesitsendeavourtoreduceenergy energy, therebyreducingcarbonfootprint. to 40%ofitselectricityconsumptionfromsolar related informationisleakedout. environment toensurethatnocustomerandcompany paper waste,alldocumentsareshreddedinasecured authorized vendorforrecycling.Beforethedisposalof disposal ofe-waste. MoU withaVendorauthorizedbyGovt.ofIndiaforsafe dispose electronicwaste.Thecompanyhassigneda The companyhasestablishedrobustprocessto resources toavoiddepletionofnatural is committedtoputeffortstowardsrenewable its operationsforsustainabledevelopment.Company achieve thegoalof"Reduce,ReuseandRecycle"inall l l l High performance Air conditioningsystems. High performance Occupancy sensorsinallthefeasible areas. Energy Efficientlighting year hasbeenabletouseup ..AsaCorporateCitizen,thecompany understandsits 7.1. regulatory policy,shoulddosoinaresponsiblemanner. Business, whenengagedininfluencingpublicand Principle 7. 6.14. 6.13.The companypromotesthere-cyclingofwaste.The 6.13.The 6.12. WithaviewtofocusingonachievingHigh Indoor l l l l l l l and pollutionisalsominimized. so thattheyareencouragedandtransportationcosts Further, thesearesourcedfromlocalmanufacturers applicable provisionsoflaws. They shallalsoabideby the legal/regulatoryframework andcomplywithallthe boundaries. Thecompanyand itsassociatesrespect provide forcertaindesirable restrictionsand other regulators,whichguide theirgrowthandalso policy frameworksprescribedbytheGovernmentand businesses operatewithinthespecifiedlegislativeand and theconstitutionalframework.Itrecognizesthat responsibility tofunctionwithinthedemocraticsetup usage ofvirginmaterial.Thisincludes: usage ofre-cycledcontentmaterialsoastoreducethe for sandfills.Thecompanyactivelypromotesthe re-cyclable wasteissegregatedandothersent premises. Themeasuresinthisregardinclude: adequate freshairandUseofdaylightingatitsvarious Productivity ofOccupants,thecompanyprovidesfor Environment QualityandConditionsforEnhanced S.No. Falseceiling Vitrifiedtiles StructuralSteel 7 ACP 6 Glass 5 MDF 4 UltimaMineralFibreTile 3 2 1 wellbeing &Productivity Outside Viewtothebuildingspacesforoccupants thermal comfort&productivity Temperature &RHcontrolsforoccupants Visual Comfort&Productivity Individual ControllabilityofLightingforoccupants wellbeing &productivity ASHRAE 62.1&CO2monitoringforoccupants' Adequate supplyoffreshair-30%extrathan Reducing ODP&GWP Eco-Friendly Refrigerants Efficient supplyfans Products withrecycledcontent 26 48 Annual Report 2015-16 cyient.com ..The 7.3. In 7.2. ..The 8.1. development. Business shouldsupportinclusivegrowthandequitable Principle 8. 7.6. 7.5. Thecompany maintainscordialrelationswithbodies 7.4. Chambers ofCommerce&Industry Companies (NASSCOM) following bodies: policies containedintheCode. to policyadvocacyconsistentwiththeprinciplesand mandates, itshallseekredressalofthesameandresort l l l l l l l l l l l benefit itselfaloneoraselectfewinpartisanmanner. good anddoesnotadvocateanypolicychangeto that policyadvocacymustpreserveandexpandpublic to thebusinessofcompany.Thecompanybelieves the policies,procedures,rulesandregulationsrelating that promotethewellbeingof society. It innovatesandinvestsintechnologies andprocesses appropriate actiontominimize thenegativeimpacts. economic development,and respondsthrough Companies (Amendement)Bill,2015. The companypresenteditscommentsonthe Reddy wastheChairmanofNASSCOMfor2015-16. The ExecutiveChairmanoftheCompany,Mr.Mohan constituted bythegovernmentonregulatorymatters. represented onvariouscommitteesandboards The seniormanagementofthecompanyisalso universities andeducationalinstitutions. and theInstituteofDirectors,besidesseveral of India,theInstituteCharteredAccountantsIndia School ofBusiness,InstituteCompanySecretaries such astheIndianInstituteofTechnology, case ofanygrievancewithlegislative/regulatory company understandstheimpact onsocialand company isanactivemember,interalia,ofthe Investor RelationsSocietyofIndia Global CompactNetworkIndia International CorporateGovernanceNetwork Association ofGeospatialIndustries National AerospaceLaboratories Indo-American chamberofcommerce Hyderabad ManagementAssociation National HRDNetwork The FederationofTelangana&AndhraPradesh National AssociationofSoftwareandServices Confederation ofIndianIndustry(CII) ..ProgramImplementation: 8.3. 8.2.1 8.2.2 . Strategy: 8.2 retention andenhancedpassoutrate. aim toincreasestudentenrolment,attendance,and library, labs,teachingaidsandstaffwithan infrastructure supportlikebrickandmortarbuildings, the preferredplacetolearn.Toachievethis,weprovide The goalistomaketheadoptedGovernmentschools l literacy. and supportingeducation,sanitationdigital community aroundusbybeingcommittedtocreating Achieving long-term,holisticdevelopmentofthe CSR mission: Participateininnovativebusiness-aligned o Providequalityeducationtounderprivileged o CSR vision: and inspiresthemtowardssuccessinlife. to alltheCyientadoptedschoolchildrenandmotivates offered includesnotebooks,schoolbagsanduniforms bringing equitableandinclusivegrowth.Support around theadoptedschoolshasgreatlyhelpedin and improvingthedigitalliteracyincommunities schools, adoptionofgovernmentpolytechniccolleges schemes suchasmid-daymealsandadoptingunaided of CSRinitiatives.Hisenthusiasticsupportfor The company'sChairmanhasbeenanactivechampion Neighbourhoods: Cyient FoundationDigitally Empowering students &helpthemacquireindustry-relevantskills. Employable, intentbeingtogroomengineering Foundation takestheleadinmakingmoreEngineers literacy. ThroughSkillDevelopmentinitiative,Cyient to empowerneighbourhoodcommunitieswithdigital also runningNationalDigitalLiteracyMissioncentres technology productsfordiagnosingeyediseases.Itis engineering capabilitiestodeveloplowcost healthcare systemsanddigitalliteracy.Itleveragesits where itcanuseourskillsset-specificallyonpublic In recenttimes,Cyienthasstartedexploringareas children fromprimaryeducationtohighschooling. around itsfacilitiesandpresently,supports10,500+ CYIENT Foundationhadadopted16schoolsinand education throughadoptionofGovernmentschools. The company'sintentistoimprovethequalityof Mission) NDLMCenters: Cyient Foundation(National DigitalLiteracy projects children 26 49 Annual Report 2015-16 cyient.com Support extendedtoPublicHealth FoundationofIndia(PHFI),indevelopinganinnovation centerinHyderabad. and isspreadoverthecenters atHyderabad,Bhubaneswar,VisakhapatnamandVijayawada. Through Srujana,researchisbeing conductedby18basicresearchersincollaborationwith over40clinicalcolleagues, to supportinthedevelopmentofnewproductsfordiagnosing eyediseases. We committedtodonateRs.2.5croresoveraperiodoffive yearsfrom2013andalsoleverageengineeringcapabilities Cyient FoundationfundedforSrujana:Innovation@LVPEI Social InnovationalignedtoBusinessInnovation: Asondate,morethan30%oftheyouth were employedintheFY2015-16. - CyientFoundationtrainedmorethan150+ unemployedruralyouthonjobskills. - CyientFoundationinassociationwithSwarnaBharat Trustinitiatedskilldevelopmentcenterforunemployedyouth - Cyient Foundationskillingforruralemployment Cyient FoundationSkillDevelopmentInitiative: l l l l S.No. .NDLMCenter-Gachibowli 1. DMCne apvrmKakinada NDLMCenter-Sarpavaram 4 NDLMCenter-Konda 3 NDLMCenter-Khajaguda 2 TodateCyientFoundationhasstarted4NDLMCentersandsofar1000+communitymembershavebenefited - L2: L1+traineeswillbetrainedtoeffectivelyinteractwiththeGovernment L1: ThebasiclevelITLiteracyTraining NDLM CentersprovidesL1andL2levelcertificationtrainingtothecommunitymembers. schools insuburbanHyderabad. for under-servedcommunities.TheinitialphaseoftheprogramwouldfocusonCyientFoundationadopted primarily withchildren,youthandwomentheprogramwouldgeneratesocial,culturaleconomicadvantages Foundation alsopartneredwithanNGOspecializedinexecutingcommunitydevelopmentprograms.Engaging developed inassociationwithNASSCOM,coveringcontentonhealth,education,literacyandlivelihood.TheCyient for information,send/receiveemailsandaccessvariouse-governanceservices.Trainingmoduleswouldbe would betrainedtooperateacomputerordigitalaccessdevice(suchastablet),andusetheInternetsearch digitally-enabled citizenservices.Aspartoftheprogramme,4000communitymembers,onefromeachfamily, NDLM Centersaimstoempowerneighbourhoodcommunitieswithdigitalliteracy,andfacilitatedeploymentof in Nellore. the FY2015-16. 3 PhaseTrainingprovidedthemwithplacementsassistance.Morethan40%ofthestudentswereplacedinjobs Mechanical ProductdesignandIT/ITESskillstrainingin3phaseswhiletheyarecolleges. Selected 3536studentsfrom19tier-2engineeringcollegesinandaroundHyderabadprovidedthemintensive Cyient Foundationtooktheleadinmakingmoreengineersemployable. tools tohelpstudentswiththeirclasswork,andprovideeducationalmaterialinanumberofinterestingformats. These arefirstofitskindmodelsdevelopedinAndhraPradeshandTelanganaequippedwithe-learning to repositoriesofhigh-qualityeducationalresources. Cyient FoundationinitiatedtwoDigitalLibrarieswiththeaimofhelping1000+underprivilegedstudentsgainaccess Cyient FoundationDigitalLibraries: Training Program through thisinitiative.Itistargetedtodigitallyliterate4000communitymembersinthespanoffouryears. pur yeaa 7 L1 371 Status Beneficiaries Hyderabad Location yeaa 6 L1 467 Hyderabad Hyderabad 107 63 L1 &L2Training Completed &L2Training L1 L1 TrainingCompleted &L2Training Completed &L2Training Completed 26 50 Annual Report 2015-16 cyient.com . CyientFoundationActivitiestoimprove thenew 8.5 8.4.2Empowering 8.4.2Empowering Foundationhasmaderemarkableprogressby 8.4.1Cyient CyientFoundationProgressin supporting 8.4 l l l Impactingmorethan18,000studentsin - AspartofSwachhBharatInitiative,Cyient - SwachhPathashala Cyient FoundationmakingSwachhTelangana- CyientFoundationisdevelopingRoads,helpingin - CyientFoundationadopted MokshaGundam - Smart Villages: Cyient FoundationTakentheLeadinMaking Community Development: enabling deliveryofbetterprimaryhealthcareinIndia. healthcare andstrengtheningofhealthsystems,for Our fundingtosupportintheareaofpreventive form ofprojects/studies/programs/activities). on scientificresearch(thatmaybeundertakeninthe CYIENT FOUNDATIONfundingtowardsexpenditure admissions andreducethedropouts: facilities inHyderabad,KakinadaandNoida. adopting 16schoolsintheneighbourhoodofour underprivileged children: schools inourneighborhood underprivileged childrenacross16adopted Till date,wehavesupportedover10,500 after completingtheirSSC. show sustainableearningsources tothechildren Volunteers conductcareerguidance programsto and itssocialimpactforachild'sfuture. community inbringingawarenessoneducation meetings withchildren,parentsandthelocal Cyient Associatesvolunteertoconductvarious Telangana. Lingampally MandalinRangaReddyDistrict, government schools. sanitation andhygiene(WASH)facilitiesin54 SwachhPathashala campaigntoprovidewater, Foundation introducedtheSwachhTelangana- education anddrinkingwater. provision ofsanitationfacilities,primaryhealth, Government. Smart WardprogramdesignedbyAPState development commitmentsofSmartVillage- Village andisworkingonthe20non-negotiable Underprivileged Children . CyientFoundationActivitiesinprovidingquality 8.6 . CyientFoundationActivities in improvingthenew 8.7 education: admissions andpasspercentageofgirlstudents: l l l l l l l l l l l l l l & ceilingfansforthecomfortofstudents. Restored powerconnectionandprovidedlights atmosphere. by publicthuscreatingacongenialschool premises byproperfencingtoavoidtrespassing Developed playareasandsecuredtheschool higher classesinadoptedSchools. Constructed sevenadditionalclassroomsfor 23% from13%. from 15%andthenewadmissionsimprovedto Results: TheoverallDropoutsreducedto4% classes tokeepthemagile. snacks tothechildrenwhoattendextra Provide nutritiousfoodsupplementsandsupply fellowships, grantsetc. higher educationthroughscholarships, Provide assistancetotheneedycontinuetheir etc. higher educationthroughScholarships,grants Provide assistancetotheneedycontinuetheir the girlchildrenaftercompletingtheirSSC. programs toshowsustainableearningsources Female Volunteersconductcareerguidance Provided qualityuniformstothegirlstudents. Cyient constructedseparatewashroomsforgirls. to 83%from28%. Results: Theoverallpassoutratehasimproved and encouragechildrenwithprizes. latent talentinchildrenasanongoingexercise writing, elocutionandpaintingtobringoutthe Conducted variouscompetitionslikeessay every academicyear. Uniforms andTeachingAidstoschoolchildrenfor Distributed NoteBooks,ExamKitsSchoolBags, students. Conducting specialclassesfor9th&10thclass Mathematics andEnglishsubjects. Appointed 36qualifiedteachingstaffforScience, 26 51 Annual Report 2015-16 cyient.com . Celebrate successes: 8.9 Detailsofinnovativepractices,productsandservicesthatparticularlyenhanceaccessallocationresourcesto 8.8 properly. Surprise visitsarealsoconductedtoensurethattheamountspentonqualityofeducationisreachingchildren To havethelong-termsustainability,weeklyandmonthlyauditswereconductedbydedicatedCSRResources. Monitoring mechanismforQuality: monthly basis.QualifiedteachingstafffromnearbyB.Ed.institutionswerehiredforthispurpose. The trainingwasundertakenbythecompanydirectlyandsalariespaidtoteachingstaffon Faculty augmentationandtraining: sessions bytheexternalfacultiesandvisitors. Provided thebestoflearningmaterialandpartneredwithvariousvoluntarygroups.Therewasperiodictraining Training andCurriculum: the poorandmarginalizedgroupsofsociety l l Our passion:Improvingeducationforgirls: l l l l l l oyehi olg 9023 2685 19 2032 1980 18 52 13 16 48 13 13 36 10 4% 21% 13 25 21% 10 4% 13 24 20% 82% 4% 5 10 21% 82% 24 4% 2 18% 10 81% 11 Local CommunityandGovernmentsupportinCyientFoundation CSRactivitiestoimprovethequalityofEducation. 5% 15% Community Engagement: 79% 10 6% 3 Polytechnic College 13% 71% 4500 No. ofstudentsinCyient 4 14% Watch &Ward 1370 57% No. ofVidyaVolunteers 35% No. ofstudentsinschools No. ofschooladopted Girl StudentEnrollment New Admission% Mid YearDropout% Pass %inCyientschools Recruited qualifiedteachingstaff Female volunteer'sconductedparentalawarenesssessionsandcareerguidancecounselingprograms and highlightthesuccessofthese initiativesthatgivetheprogrammes(CyientCSRActivities) arealmeaning To sustainthemomentumof our CSRprogramme,weinvolvetheactiveparticipationof the companyleadership holds monthlymeetings(with parentsandguardians)toencouragethemsendtheirchildren toschool. To bringawarenessamongparentsofschoolchildrenandthe localcommunityaboutCyientCSRinitiatives, Parent meetsinCyientAdoptedSchools: with extended supporttoCyientAdoptedSchoolsinbuilding12additional classroomsin3oftheCyientAdoptedSchools With thefollowupofCyientFoundationonrequestsraised foradditionalClassRooms,GovernmentofTelangana Government participationinCyientFoundationEvents: Pass percentageofgirlstudentsimprovedfrom31%to75%. Enrollment ofgirlstudentsimprovedfrom20%to52.5%. Girl studentdropoutsdecreasedfrom13%to4%. ` 0.72Crores 080 091 001 011 021 031 041 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 YF YF YF YFY FY FY FY FY FY FY FY 2 5 1 3 1 2 52.5% 52% 51% 43% 31% 25% 22% 4050 0080 8010580 8800 8000 7000 5500 5400 26 52 Annual Report 2015-16 cyient.com 8.11 ShareandCommunicateCSRvaluetocompany 8.10 l l l l l l l impacted. the societyatlargewhereourschoolsarelocated schools. WithCyientinvolvementthecommunityand imparted tounderprivilegedchildreninadopted Cyient aimsatimprovingthequalityofeducation Impact oftheCyientSchoolAdoptionProgramme: community: distributing asoundcorporateresponsibilityplan designated CSRTeam,whichallowsfor platform (CorporateAffairs)andcreated Global workplace,createdmulti-functioningHR encourage andmaintainaclearcohesive Cohesive GlobalCSRPlatform-Inorderto programmes andfloorwalksmeetings vision andmissionthroughinduction enlighten theassociatesaboutcompany’sCSR Training andDevelopment-Educate to buildmoreawareness. corporate newslettersandothermediareleases published bywayofemailannouncements, practices. Theseeventsareshowcasedand and encouragingcommunityinvolvement back forCSRVolunteers)charitablecontributions implementing rewardprogrammesfor(pat-on- Relations throughourHRteamincludes Community Relations-Encouraging participates in,localissues company takesanactiveinterestin,and would knowthatinadditiontoprovidingjobs,the region withinthecompany.Thelocalpopulation creates anunderstandingofthecultureseach Additionally, thepublicityaroundthesesuccesses sound corporateHRpracticestoenablethem implementation ofCSRinitiatives,butalsoallows celebration ofthesesuccessesnotonlydrivesthe In therapidlyexpandingglobalworkplace, children whohavebeendeprived ofeducationfor is speciallyintendedtoimpart educationtogirl Special focusontheGirlChild: CyientFoundation of 2015-16,52.5%ourstudents aregirls. total enrolmentattheCyientAdopted Schoolsas and maximumenrolmentofgirlchildren.Ofthe quality ofeducationimpartedtodisadvantaged the programmemainlyfocusesonimproving primarily instateswhereCyientoperatesIndia, reach outtothecommunity.Presentlyoperating Cyient AdoptedSchoolAdoptionisdrivento Reaching outtotheUnderprivileged: .4Generation 8.14 onCommunity: 8.13.Impact ImpactonTeaching-Learning: 8.12 ImpactonCommunity:Therehasbeenan - ImpactonTeaching-Learning:CyientFoundation - SpecialfocusontheGirlChild:CyientFoundation - our schoolsarelocated: employment opportunitiesinthecommunitywhere The CyientCSRactivitiesalsohelpedingenerating ReachingouttotheUnderprivileged:Cyient - teacher meetings,etc. and communitymembersinschoolevents,parent Cyient Volunteeringactivities,participationofparents that havebeencreatedbyouractivities,suchasthe participation becauseofthevariousconnectionpoints There hasbeenanincreasedparentandcommunity 16 withSSCoverallpasspercentageas83%. students haveshownsignificantimprovementin2015- agents ofchangeinthesociety.Thelearninglevels experiential learninghelpingstudentsemergeas Cyient Activitiesfocusonholistic,conceptualand Adopted schools). maintain idealteachertostudent ratioinCyient (Cyient Foundationappointed vidya volunteersto Recruitment oflocalqualified youthasteachers sources. guidance programstoshowsustainableearning children parents&localcommunity.Career Cyient CSRVolunteerstoconductmeetingswith increased parentandcommunityparticipation. teaching staff. experiential learning.Appointed30qualified Activities focusonholistic,conceptualand children. is speciallyintendedtoimparteducationgirl higher education. provide assistancetotheneedycontinuetheir amenities andfacilities.CyientFoundationto reach outtothecommunitybyprovidingvarious Foundation School/CollegeAdoptionisdrivento parents tosendtheirdaughtersschool. volunteers havebeenputinplacetoencourage sensitization campaignsthroughCyient one femaleteacherineachshiftandspecial designed girl-childpolicy,separatetoiletforgirls, girl childrenfromattendingschool.Specially attempt toovercomethechallengesthatprevent long. Throughaninbuiltstrategy,ourinitiatives of Employment: 26 53 Annual Report 2015-16 cyient.com .6CYIENTAssociatesparticipation: 8.16 InnovativePracticesAdopted: 8.15 approach ofworkingwithour customers toimprovetheirbusinessandthelivesofcustomers. ‘Designing tomorrowtogether’ isourvisionandthebasisofbrandpromise.Thesethree simplewordsdescribeourunique Respect, SincerityandTransparency. interactions withourcustomers arebasedonastrongfoundationofour'ValuesFirst' philosophyofFairness,Integrity, We useourknowledgeandskillstocreatesolutionsthatare futurefacing,imaginativeandpracticalforourcustomers.All faster developmentatlowercosts.Thefinaldesignoftheengine is14%morefuelefficientand50%lessnoisy. program. Wehavecontributedto27%ofthedesigneffort andproposedmorethan100designconceptsresultedin Quieter andgreenerskies-Foroneofouraerospaceclients, weparticipatedindevelopmentofanext-generationaeroengine the capacitytocapturevitalhealthparameters,sendingthem tothepatienthealthrecordssystemsthroughwirelessnetwork. Affordable healthtrackingsystemforcostsensitivemarkets -Developedane-healthproductfortheIndianmarketthathas Human Value: cities inarecordtime,with70%reducedfieldsurveycosts and 40%savingsindeploymentcosts for infrastructureplacementsandutilizingexisingductroutes,wehaveenableddeliveryofFTThto300,000homes in 22 the clientaddressdeploymentchallenges.ByanalyzingexistingFTThareas,optimizingfibercableroutes FTTh marketneedsanddesignanoptimizedfibernetwork.Wehaveimplementedaholisticplansolutionto help Innovations innetworkplanningandDesign:LeadingserviceproviderNetherlandswasfindingitdifficulttoanalyze the Business Value: time. optimizations, theteamwassuccessfulinreducingweightofproductby30%whilecompletingprojectwithin frame andtomeetroadabilityrequirementsofallstatesinUSA.Throughtheusealternatematerialsdesign Product Costreduction-Partneredindevelopmentofheavydutytruckusedtheconstructionindustry,11month time Technical Value: business andhuman.Afewinstances/casestudies: We arecontinuouslyfocusedondeliveringvaluetoourcustomers.lookateveryprojectfromthreeperspectives:technical, Business shouldengagewithandprovidevaluetotheircustomersconsumersinaresponsiblemanner. Principle 9. Activities ontheirweekoffsandholidaysinFY2015-16 Cyient Volunteering:Associateshadspent8800+volunteeringhoursthroughparticipationinvariousCSR the learningsessionsonessaywriting,paintingandelocutioncompetitions. competitions toraisethecompetitivespiritamongstschools.Cyientcustomersfromvariouscountriesconducted Children weregivenaccesstothequalityofeducationandcontinuousmonitoringbyvolunteersteam.Interschool computer learningsessionsfortheSchoolChildren. Implemented E-LearningfacilitiesinCyinetAdoptedSchools.Thevolunteersfromthecompanyhaveconductedvarious o fCRVlner 56 83 261 65 145 35 Volunteering Hours No. ofCSRVolunteers School Bags,NoteBooks,Examinationkits&Uniformsetc.,arealsoprocuredfromlocalsuppliers. The Mid-DayMealSupplementvendorsarecommunitymembers,especiallyparentsofstudentsinourschools. Hiring oflocalsasschoolwatchmenandcleaners. Hiring oflocalsasschoolmaids(caretakers) 080 091 001 011 021 031 041 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 YF YF YF YFY FY FY FY FY FY FY FY 3 1824 1264 8878 6946 6192 2543 2108 339 5 5 5020 2685 2102 1540 650 557 26 54 Annual Report 2015-16 cyient.com .Thecompanybelievesinthephilosophyofreturning 1. Date : 21 April 2016 (Managing Director & CEO) (Chairman-CSR Committee) (Chairman-CSR CEO) & Director (Managing Date :21April2016 Place :Hyderabad The CSRCommitteeconfirmsthattheimplementation andmonitoringoftheCSRPolicy,isincompliancewith 7. Incasethecompanyhasfailedto spendthetwopercentofaveragenetprofitlastthreefinancialyearsorany 6. Annual ReportonCSRActivities .Skill 5. Healthcare 4. ITLiteracyto 3. Community 2. ImproveQuality 1. orActivity CSRProject No. Sl. (2) (1) Total Initiative Development to theNeedy Community Development of Education identified accessed at The CSRpolicy,projectsandprogrammesmaybe through educationandhealthcaresystems." programmes thatbringaboutsustainablechanges around usbybeingcommittedtocreatingandsupporting Achieving long-term,holisticdevelopmentofcommunity The company'sCSRmissionis: corporate-social-responsibility vision includes: charity andenhancesocialimpact.Thecompany'sCSR social responsibility(CSR)aimstoextendbeyond taken fromit.Inviewofthis,thecompany'scorporate to societyasameasureofgratitudeforwhatithas objectives andPolicyofthecompany. part thereof,thecompanyshallprovidereasonsfornot spendingtheamountinitsBoardreport-NotApplicable innovation To participateinprojectswithbusinessaligned quality ofeducationand To helpunderprivilegedchildrentoaccessthe Development Initiative through itsSkill Cyient Foundation Care innovation inHealth Business aligned Support extendedto Digital libraries. Mission) Centersand (National DigitalLiteracy Foundation NDLM through Cyient Community members Digital Literacyto Hygiene facilities Vidyala -Sanitation& Swatch Bharat Smart Village Village Adoption- Colleges Adopted Schools& Cyient Foundation Support Extendedto Project iscovered Sector inwhichthe (3) http://www.cyient.com/about-us/ - AndhraPradesh Telangana ;NelloreDistrict Rangareddy District- Telangana; Rangareddy &Hyderabad- Kakinada -AndhraPradesh Telangana; EastGodavari& Rangareddy &Hyderabad- District -Telangana Pradesh; Rangareddy Prakasam District-Andhra Kakinada -AndhraPradesh Telangana; EastGodavari& Rangareddy &Hyderabad- or programsundertaken and districtwhereprojects (2) Specifythestate (1) LocalAreaorOther Projects orprograms (4) rsn oaauK.Ramachandran Krishna Bodanapu ( or programwise (budget) project Amount outlay (5) ` ) Lakhs .DetailsofCSRspentduringthefinancialyear. 5. PrescribedCSRExpenditure(twopercent.ofthe 4. Averagenetprofitofthecompanyforlastthree 3. TheCSRcommitteeofthecompanyiscomprisedof: 2. 119 158 479 48 83 71 a Totalamounttobespentforthefinancialyear: (a) amount asinitem3above):476Lakhs financial years: Infrastructure isapermanentinviteetothecommittee. Mr. B.AshokReddy,President-CorporateAffairs& Mr. KrishnaBodanapu. Mr. B.V.R.MohanReddyand Mr. K.Ramachandran c Mannerinwhichtheamountspentduring (c) Amountunspent,ifany;Nil (b) ` financial yearisdetailedbelow. 476Lakhs on projectorprograms. (1) Directexpenditure Sub-heads: projects orprograms Amount spentonthe (6) (2) Overheads:( ` 23,799Lakhs 122 158 476 42 83 71 ` ) Lakhs period ( reporting upto the expenditure Cumulative (7) Lakhs Annexure-B 122 158 476 42 83 71 ` ) agency implementing through Direct or Amount Spent: (8) Hyderabad Eye Foundation Foundation NASSCOM Research Through Through Direct Direct Direct 26 55 Annual Report 2015-16 cyient.com i)ForeignExchange (iv) The DepositoriesAct,1996andtheRegulations (iii) (ii) TheCompaniesAct,2013(theAct)andtherulesmade (i) according totheprovisionsof: Company" forthefinancialyearendedon31stMarch,2016 returns filedandotherrecordsmaintainedby"the I haveexaminedthebooks,papers,minuteformsand to thereportingmadehereinafter: mechanism inplacetotheextent,mannerandsubject Company hasproperBoard-processesandcompliance- the statutoryprovisionslistedhereunderandalsothat the financialyearendedon31stMarch,2016compliedwith opinion, thecompanyhas,duringauditperiodcovering conduct ofsecretarialaudit,Iherebyreportthatinmy officers, agentsandauthorizedrepresentativesduringthe provided anddeclarationsmadebytheCompany,its maintained bythecompanyandalsoinformation minute books,formsandreturnsfiledotherrecords Based onmyverificationoftheCompany'sbooks,papers, thereon. conducts/statutory compliancesandexpressingmyopinion me areasonablebasisforevaluatingthecorporate Secretarial Auditwasconductedinamannerthatprovided Enterprises Limited)(hereinaftercalledthecompany). corporate practicesbyCyientLimited(formerlyInfotech applicable statutoryprovisionsandtheadherencetogood I haveconductedthesecretarialauditofcompliance (Formerly InfotechEnterprisesLimited) Cyient Limited The Members, To, (Appointment andRemunerationPersonnel)Rules,2014] [Pursuant tosection204(1)oftheCompaniesAct,2013andruleNo.9 FOR THEFINANCIALYEARENDED31STMARCH,2016 SECRETARIAL AUDITORS’REPORT Investment andExternalCommercialBorrowings; Foreign DirectInvestment,Overseas and regulationsmadethereundertotheextentof Bye-laws framedthereunder; ('SCRA') andtherulesmadethereunder; The SecuritiesContracts(Regulation)Act,1956 thereunder; Management Act,1999andtherules vi)The (viii) TheEmployeesProvidentFundsandMiscellaneous (vii) Employees' StateInsuranceAct,1948andEmployees' (vi) andGuidelinesprescribed ThefollowingRegulations (v) i)TheContractLabour(RegulationandAbolition) Act, (ix) h TheSecuritiesand ExchangeBoardofIndia (h) TheSecuritiesandExchangeBoardofIndia (g) TheSecurities andExchangeBoardofIndia (f) TheSecuritiesandExchangeBoardofIndia(Issue (e) SEBI(ShareBasedEmployeeBenefits) (d) TheSecuritiesandExchangeBoardofIndia(Issue (c) TheSecuritiesandExchangeBoardofIndia (b) Funds Scheme,1952; Provisions Act,1952andTheEmployees'Provident State Insurance(General)Regulations,1950; TheSecuritiesandExchangeBoardofIndia (a) 1992 ('SEBIAct'):- under theSecuritiesandExchangeBoardofIndiaAct, Bonus Rules,1965; Abolition) Central Rules, 1971; Abolition) CentralRules, 1970 andtheContractLabour(Regulation Payment ofBonusAct,1965andthe (Buyback ofSecurities)Regulations,1998; and (Delisting ofEquityShares)Regulations,2009; and dealingwithclient; Regulations, 1993regardingtheCompaniesAct (Registrars toanIssueandShareTransferAgents) and ListingofDebtSecurities)Regulations,2008; Regulations, 2014; Regulations, 2009; of CapitalandDisclosureRequirements) (Prohibition ofInsiderTrading)Regulations,1992; Regulations, 2011; (Substantial AcquisitionofSharesandTakeovers) Annexure-C 26 56 Annual Report 2015-16 cyient.com Guidelines, Standards,etc. with theprovisionsofAct,Rules,Regulations, During theperiodunderreviewCompanyhascomplied TheListingAgreementsenteredintobytheCompany (ii) SecretarialStandardsissuedbyTheInstituteof (i) of thefollowing: I havealsoexaminedcompliancewiththeapplicableclauses xv The (xiv) xi)TheContractLabour(RegulationandAbolition)Act, (xiii) A.P.ShopsandEstablishmentAct,1988; (xii) ServiceTaxAct,1994andrulesmadethereunder; (xi) IncomeTaxAct,1961andrulesmadethereunder; (x) Limited/SEBI (LODR)Regulations,2015,asapplicable; with BSELimitedandNationalStockExchangeofIndia Company SecretariesofIndia; thereunder; Abolition) CentralRules,1971; 1970 andtheContractLabour(Regulation Special EconomicZonesAct,2005andrulesmade ae:20April2016 : Date Hyderabad : Place minutes. members' viewsarecapturedandrecordedaspartofthe Majority decisioniscarriedthroughwhilethedissenting Act. were carriedoutincompliancewiththeprovisionsof Directors thattookplaceduringtheperiodunderreview Directors. ThechangesinthecompositionofBoard Directors, Non-ExecutiveDirectorsandIndependent is dulyconstitutedwithproperbalanceofExecutive I furtherreportthatTheBoardofDirectorstheCompany Practicing CompanySecretary S. Chidambaram FCS No.3935 C PNo:2286 26 57 Annual Report 2015-16 cyient.com Details ofStockOptionspursuanttoSEBIregulations Infotech AssociateStockOptionPlan(InfotechASOP) Sl.No. 2 Employeewisedetailsofoptionsgrantedto Totalno.ofoptionsexcercisableat 12. Totalno.ofoptionsoutstandingat 11. 10. 3 Diluted EPSasper 13. .MoneyrealizedbyexerciseofOptions ( Variationoftermsoptions 9. Optionslapsed 8. Totalno.ofsharesarisingas 7. Optionsexercised 6. Optionsvested 5. 4. formula Pricing Optionsgrantedduring 3. Numberofoptionsoutstandingat 2. 1. )SeniorManagerialPersonnel: i) i)Identifiedemployeeswhoweregranted options, duringany iii) Anyotheremployeewhoreceivedagrant inanyoneyearofoptions ii) of thecompanyattimegrant: (excluding outstandingwarrantsandconversions) equal toorexceeding1%oftheissuedcapital Venkatesh Padmanabhan Brain Wyatt Rajendra Velagapudi John Renard Anand Parmeswaran Sunil KumarMakenna Sanjay Krishnaa NJJoseph Tom Edwards Katie Cook Ajay Aggarwal amounting to5%ormoreofoptionsgrantedduringtheyear: Accounting Standard20(INR) the year ecito ASOP Description a resultofexerciseoptions the beginingofperiod the endofperiod the endofperiod ` ) one year, (Share BasedEmployeeBenefits) Market priceasdefinedinSEBI Regulations, 2014 Annexure-D 21,003,228 276,071 122,312 581,970 637,383 130,400 318,750 122,312 10,000 10,000 81,000 15,000 5,000 5,000 7,500 5,000 5,000 5,000 5,000 5,000 20.73 2008 Nil Nil Nil 26 58 Annual Report 2015-16 cyient.com ae:21April2016 : Date Hyderabad : Place 4 )Methodofcalculationemployee i) 14. )Dsrpino h ehdadsgiiat:TheBlackScholesoptionpricingmodelwasdevelopedfor : significant and method the of Description v) i ThemainassumptionsusedintheBlackScholesoption-pricingmodelduring theyearwereasfollows: vi) v Weightedaverageexercisepriceandfairvalueofstockoptionsgranted: iv) iii) The Impact of this difference on profits and on : Profit After Tax (PAT) Tax After Profit : TheImpactofthisdifferenceonprofitsand iii) i ifrnebtenteepoe opnain: Differencebetweentheemployeecompensation ii) supin sddrn h ert siaeteestimatingfairvalueoftradedoptionsthathaveno following weightedaverageinformation the including options, the of value fair assumptions usedduringtheyeartoestimate Dividend yield(%) Expected life of options from the date(s) of grant : 3-4 years 3-4 Expected volatility(%) : Expected lifeofoptionsfromthedate(s)grant rate (%) Risk freeinterest tc pin egtdaeaeWihe vrg ClosingmarketpriceatNSE average Weighted average Weighted Options Stock compensation cost compensation if ithadusedthefairvalueofoptions compensation costthatshallhavebeenrecognized cost socomputedat(i)aboveandtheemployee EPS of the company Less: Additional employee Additional Less: EPS ofthecompany rne nexerciseprice(in on granted 13/06/11 19/10/11 17/10/13 12/06/14 16/07/15 14/01/16 22/03/11 02/02/11 23/10/10 16/07/10 15/04/10 02/07/10 142.00 118.00 184.00 324.00 559.00 487.00 161.00 165.00 165.00 169.00 350.00 188.00 ` fairvalue(in ) 8.29-8.40 : 1.53 - 2.64 : 40.00 - 58.29 : TheCompanyhascalculatedtheemployee : vesting restrictionsandarefullytransferable.Sinceoption reliable measureoffairvalueoptions. The optionpricingmodelsdonotnecessarilyprovidea pricing changes therein changes therein Adjusted EPS fair value compensation costbasedon ` Adjusted PAT stock options compensation costusingtheintrinsicvalueof 9.74Million(increase) 141.90 115.00 184.45 325.00 531.50 466.50 175.72 78.44 76.93 76.34 82.99 87.81 models requireuseofsubstantiveassumptions, ` can materiallyaffectfairvalueofoptions. onthedateofgrant(in ) On behalfoftheBoardDirectors ` ` ` ` B.V.R. MohanReddy Executive Chairman ,2.6million 2,324.76 million 2,334.50 162.95 142.25 162.90 115.50 184.45 325.00 531.95 468.35 165.00 170.50 186.60 362.30 20.64 (DIN-00058215) .4million 9.74 ` ) 26 59 Annual Report 2015-16 cyient.com .Research&DevelopmentandBenefitsthereon 2. Aspartoftheconservationnaturalresources, ConservationofEnergy 1. EARNINGS ANDOUTGO ADAPTATION ANDINNOVATIONFOREIGNEXCHANGE CONSERVATION OFENERGYTECHNOLOGYABSORPTION, challenges likeProjectTangochallenge: aimedtowards Company haslaunchedorganization wideinnovation of actionandfocus. current portfolioandtodeterminethefuturecourse existing portfoliotodeterminemacrotrendsinthe management. Thisvaluationincludedauditofthe patent valuationtoimprovetheintellectualproperty We reviewedtheentireIPportfoliobyperforming while 12IPassestswereco-createdwithourclients. FY 2015-16.Ofthese,4werefiledindependentlybyus clients. Thecompanyfiled16patentsduringthe emphasizing onco-innovationandIPcreationwiththe accelerating andsustaininginnovationculture, growth inenablinginnovationacrossbusinessunitsand The companyhasmadeasignificantandperceptible projects. of-the-art TechnologyCentreworkingonvariousR&D The companyhasamodernR&Dfacilitywithstate Responsiblity Report. More informationisavailableintheBusiness recycling ofpaperformakingrecycledproducts. paper wastefromthelocationsisgiventoITCfor Pollution ControlBoard. printers] relatedassetsaresoldtoafirmapprovedby company, theE-Waste[oldsystems,harddisks, locations. Also,aspartoftheinitiativetakenby company isreplicatingthebestpracticesatother to theorganization.Afteranalysisofsavings, observations. Thishasresultedinconsiderablesavings hours andduringweekendssendingmailerson by sendingmailers,continuousmonitoringafteroffice LED lightingfixtures,creatingawarenesstoassociates level byreplacingtheexistingconventionallightingwith implementing energysavingspracticesatorganization conservation, companyhasinitiatedtheprocessof for Manikondalocationonly.Also,aspartofenergy consumption, 75%energyfromSolarPowerisused Power forManikondalocation.Outoftheoverallunits conservation. Inthisregard,companyisavailingSolar implement thebestpracticesinareasofenergy It isthecontinuousendeavourofcompanyto .Technology Absorption,AdaptationandInnovation 3. remain anareaoffocus.As always thereisstrong The useofInformationTechnology continuesto Information Technology including taxbenefits. recognition willbringusmanycollaborativebenefits Industrial Research(DSIR),GovernmentofIndia.This which isrecognizedbyDepartmentofScientificand designs. Experiencecenteristhein-houseR&D engineers toexplore,experimentandprototypetheir focused on'Innovation@Cyient'whichwillhelpthe lab andIoTatExperiencecenterwereestablished World classinnovationlabssuchasLegolab,Dassault saving 406,000efforthoursandUSD8,515,000. to developmentof376incrementalproductivityaids, harvested 1,016ideasfromtheassociateswhichled 38 papersindifferentindustrydomains.Thedrivehas For theFY2015-16,companyfacilitatedpublishingof year withclient. first co-innovationprojectonaugmentedrealitythis & VR.Companyhasbeensuccessfulincompletingthe commercial technologydevelopmentslikeUAV's,IoT Microsoft, Verisae,etc.forco-innovationin leading researchorganizationslikeBoeing,IBM, also proposedpartnershipswithsomeoftheworld's transformational businessopportunities.Companyhas emerging technologiesandhinttowards to educateandimpartknowledgeassociateson papers werepreparedonUAVsand'InternetofThings' to seeaservicelineemergingsoon.Afewposition generated sometractionwithclientsandarehopeful for ideasetc.Theseinternalinnovationcampaignshave a week'stimeLEGOwar:rapidprototypingexcerise about developingworkingonIoTbasedprototypesin VR andSensingtechnologies,IoTHackathon:tobring Particulars Total Revenue percentage of R&D Expenditureas Expenditure R&D Total Capital Expenditure Expenditure Revenue ac 1 06March31,2015 March 31,2016 ereddYearended Year ended 61 66.51 56.13 5.314.69 56.13 .5 0.51% 0.45% 51.82 – Annexure-E ( ` inmillion) 26 60 Annual Report 2015-16 cyient.com compliances. tool totrack,monitorandensurestatutory the companyimplemented‘compliancemanager’to contract managementrespectively.Duringtheyear, expenses &forbettersuppliermanagementand ‘Concur’ and‘Ariba’packagesforstreemliningofall operational efficiencies.Thecompanyisrollingout superior userexperiencewhilstsimultaneouslydriving around datamanagement,reportingwillprovidea (HCM) platform.Workdaywithitsadvancedcapabilities move totheWorkday,HumanCapitalManagement become thefirstIndiaheadquarteredcompanyto corporate applicationsperspectiveasweareslatedto The comingyearalsopromisestobeexcitingfroma operational needs. of theartdatacenteratManikondatocaterits objectives. Thecompanyiscurrentlybuildingastate organization thatiswellalignedtotheorganizational investments toensurethatithasascalableIT The companyisalsomakingthenecessary at alllevels. complemented byinvestmentsinlatesttechnologies organization. Theprocessrigoraroundsecurityis emphasis onCyberandDatasecuritythroughoutthe .ForeignExchangeEarningsandOutgo 4. ae:21April2016 : Date Hyderabad : Place Exchange EarningsandOutgoareasfollows: carried productpromotionactivities.DetailsofForeign your companyparticipatedinvariousexhibitionsand income. Inordertopromoteproductsalesandservices, year,export earningsaccountedfor94.1%ofthetotal of EngineeringandSoftwareServices.Duringthe Most ofyourcompany'searningsarefromtheexport Foreign ExchangeOutgo Foreign ExchangeEarning
Particulars On behalfoftheBoardDirectors ac 1 06March31,2015 March 31,2016 ereddYearended Year ended 175012,181.2 11,715.0 ,6. 2,184.6 2,064.5 B.V.R. MohanReddy Executive Chairman (DIN-00058215) ( ` inmillion) 26 61 Annual Report 2015-16 cyient.com MANAGEMENT DISCUSSIONANDANALYSIS situation anditsimpactonthe globaleconomy. to thisheadwindsaretheconcerns relatedtotheBrexit has increasedtherisksofweaker growthprospects..Adding normalize gradually.However,thescenarioofuncertainty while thesituationindevelopingeconomiesstartsto is projectedin2017,basedprimarilyonemergingmarket the globalgrowthexpectedtobeat2.9%in2016.Arecovery projected growthtoremainmodestthroughtheyearwith witnessed atthebeginningofyear.Weexpect to getbackonitsfeetfromtheroughstartthatwas The globaleconomyhasstruggledoverthelastfewmonths 4.3% whileEurozonegrewat1.5%in2015. in manufacturing.Developingcountriesgrewatarateof by growthintheservicessectorthatoffsetslowdown the growthinregion.Chinagrewat6.9%2015driven residential investmentsoutsideofenergysectorimpacted domestic demand,weakexports,andadeclineinnon- of 2015from2.5%forthefirsthalfyear.Weaker Growth intheUnitedStatesfellto1.4%fourthquarter especially USalongwithJapanandotherAsianeconomies. year wasaresultofsloweractivityinadvancedeconomies- 2.8%. Theunexpectedweaknessinthesecondhalfof with asizeableslowdowninthesecondhalfofyearat The worldeconomygrewat3.1%throughtheyearin2015 Global Economy challenges. terms ofperformance,withitssharesuccessesand through theyear.Overall,thishasbeenamixedyearin improvements inclientandassociatesatisfactionlevels crossing overtotheUS$100Mnsegment.Wewitnessed increase inourmilliondollarclientbasewithone addressed wasthelargestever.Thisyearalsosawan was thelowesteverat79daysandouropportunitypipeline Mn) despitefouracquisitionsanddividendpayout.OurDSO generate highestevercashbalanceatINR7,742Mn($117 of thebusiness.Onotherhand,thisyearsawus per expectations.Wefacedchallengesduetocyclicalnature called DesignLedManufacturing(DLM)-didnotperformas investments wemade.Ourmanufacturingbusiness-now flat. Wefacedsignificantheadwindsinsomeofthe through theyearindollarterms,ourcorebusinessremained initiallyexpected. Whileourrevenueimprovedby6% but therevenueforyearwaslowerthanwhatwe growth andprofitability.WehadconsistentQ-o-Qgrowth, FY16 hasbeenamixedyearforCyientintermsofrevenue Business PerformanceOverview aftermarket servicesisexpectedtodriverevenuegrowth. of technicaldocumentationandintegratedplatformfor manufacturing andaftermarketwithafocusondigitization in manufacturingengineeringespeciallyadditive in defensebudgetsofkeynationsaroundtheworld.Growth aircraft deliveries,increasedspendonsecurity,andgrowth growth in2016isexpectedtobefuelledbyincreasescivil revenues intheUnitedStatesdefensesubsector.The because oftheindustrybeinglargelyimpactedbydecreased positive stridefollowingyearsofdecliningrevenuegrowth with estimated3%growththroughtheyear.Thisisa In 2016,theindustryisexpectedtoreturnstronggrowth quarter oftheyear. Global ServicesEngineeringAsia(GSEA)duringthesecond we acquiredPrattandWhitney'saftermarketbusiness portfolio andexpandourexistingaftermarketcapabilities, key clients.Also,tofurtherstrengthenouraerospace manufacturing support,andpartstransitionforsomeofour continued toseestronggrowthinservicesliketooling, business modelsbyourclientsthroughtheyear.We analytics. Wealsosawariseindemandforrisksharing engineering, manufacturingsupport,aftermarket,and business inNorthAmericawithafocusonserviceslikevalue months. Wesawstrongtractionincommercialaerospace growth throughtheyearwithastrongpipelinefornext12 Aerospace andDefensebusinessunitcontinuedtowitness Aerospace andDefense global leaderinthisspace,is wellpoisedtotapintothis drive thisparadigmshiftand areconfidentthatCyient,a that theindustryneedsreliableglobalpartnersuppliersto Webelieve automation ofrailengineeringandoperations. modularization, standardization,digitization,and now moredriventolookforcost-optimalsolutionsspanning APAC. Furthermore,theOEMsandrailoperatorsalikeare of investmentsbytheOEMsinemergingmarketsincluding internationalization thatisevidentfromthegrowingnumber The industryisalsowitnessinganincreasedpaceof €15 Bnin2019. expected togrowataCAGRof3.1%from€14Bnin2016 Bn in2016to€552019,whiletherailcontrolmarketis segment isexpectedtogrowataCAGRof2.2%,from€51 enhancement ofexistingprojects.Theglobalrollingstock investments acrosstheworldinnewprojectsand The RailTransportationindustryiswitnessingsignificant Transportation Annexure-F 26 62 Annual Report 2015-16 cyient.com The GlobalSemiconductor market witnessedsoftened Semiconductor address DLMopportunitiesinthesegment. focus wouldbeondevelopingcapabilitiesinelectronicsand services forindustrialproducts.Forthecomingyear,our few years.WearealsowitnessingalotofmomentuminDLM monitoring andpreventivemaintenanceareaforthenext Electronics andTelematics).Thefocuswillbeonequipment investments inASSET(Advance,Software,Sensor, growth intheindustrywillbepredominantlydrivenby projects aredownowingtocapitalexpenditureissues.The and constructionindustry.Allmajorproductdevelopment slowdown inthenextfewyearswithamining The globalindustrialmarketisexpectedtowitnessa through theyear. we expectthegrowthtoremainmutedforbusiness meeting government'sregulatoryexpectations.Asaresult, shortages, executingcapitalprojectsefficiently,and is alsofacingsignificantchallengesintermsofskill control andshort-termliquiditymanagement.Thesector to continuethrough2016withcompaniesfocusingoncost Similarly, theslowdowninminingindustryisexpected pressure onourkeyclientsintheindustry. year. Currentmarketconditionscontinuetoputfinancial the equipmentsideisexpectedtocontinuethrough capital expenditurecutsandcostreductions,especiallyon investments withafocusonlong-term.Thepressure However, refiningandretailsegmentcontinuestosee exploration andproductionprojectsbeingputonhold. expenditures inexplorationhavebeencut,withlarge dropping oilpricesthroughtheyear2016.Thecapital The globalenergymarketisexpectedtobeimpactedby Industrial, EnergyandNaturalResources the short-term. pipeline, despiteanticipatedcurrencyrelatedchallengesin strong long-termrelationshipsandhealthyopportunity for thisbusinesscontinuestobepositive,supportedbyour contribution fromthiscenterinthenearfuture.Ouroutlook expect asteadyprogressionofvalueandvolume requirements acrossourkeycustomersintheindustry.We The centerwillactasanearshoretoaddress recently openedanearshoreengineeringcenterinPrague. to furtherouraspirationsontheS3strategy.Wehave opportunities tobolsterourexpertiseinthedomainandalso We areactivelyexploringorganicandinorganic continue tobeourprincipalfocusareasinthedomain. opportunity. Rollingstock,railcontrol,andoperationswill in theglobalsemiconductorarena. helps uspositionourselvesamongtheleadingbusinesses unique achievementforanIndianservicescompanyand is upformassproductioninthecomingmonths.Thisa first producthasbeensuccessfullytested,andthe lifecycle ofanASICchipforaclient.Theprototypethe Semiconductor. Wetookownershipofthecomplete reached amajormilestoneinourS3strategyfor and competenciestoaddressthisindustry.Thisyearwe year. However,wecontinuetoinvestinbuildingcapabilities expect toseeslowgrowthinthebusinessunitthrough activity, dropincapitalandR&Dinvestments.Withthis,we industry isalsowitnessingconsolidationwithrapidM&A grow asamarketandstrongcenterofinfluence.The be fuelledbyChinaasagrowthengine.isexpectedto 2018. GrowthintheSemiconductormarketisprojectedto accounting forapproximately80%ofthemarketin2017and regions areexpectedtowitnessthehighestgrowthrate, rate projectedforallregions.TheAmericasandAPAC year-on-year inboth2017and2018withapositivegrowth and 2018.Themarketisforecasttowitnessagrowthof~2% The growthintheindustryisexpectedtoreturnonly2017 2016, withthelargestbeinginAmericas. geographies, thedeclineisexpectedacrossallregionsin industry to2.4%in2016withmarketatUS$327Bn.For growth throughtheyear.Wefurtherexpectdegrowthin M2M, dataanalytics,cloudcomputing, andtheoverarching The industrywillwitnesscontinued focusonkeyareaslike Communications our corporateventuringinitiative. solutions, wehaveinvestedintwomedicalstartupsthrough further strengthenourcapabilitiesandfocusoninnovative there istremendousopportunitytoaddressthismarket.To Overall, theindustryiswitnessingexcitinginnovationsand solutions forpredictiveandpreventivemaintenance. our capabilityinconnecteddevicesandprovideanalytics provide solutionstoclients.Ourfocuswillalsobeonbuilding devices andon-remotemonitoringIOTplatformto industry isalsoexperiencingstrongdemandforsmart cost andvaluelow-costmanufacturingservices.The our focuswillbeonprovidingsolutionsarounddesignfor low-cost solutionsand"value"alternatives.Toaddressthis, emerging markets.Thisisexpectedtoleadtheneedfor market willbemainlydrivenbyrisingvolumesandbooming forward, weexpectthegrowthtoslowdown~4%.The growth ofover8%inthepastcoupleyears.Going The globalmedicaldevicesmarketwitnessedastrong Medical TechnologyandHealthcare 26 63 Annual Report 2015-16 cyient.com indoor mapping.Autonomousvehiclesandhighly on mobilesolutionsaswellareassuchAR,3D,and growing B2BandB2Cbusinesses.Theirfocusisincreasingly and thelocationisnowcriticaltomanyofworld'sfastest geospatial, manynewentrantsarecomingintothemarket, Alongside Governmentandothertraditionalusersof the Governmentsectorfastestgrowingspender. The globalgeospatialmarketisalsocontinuingtogrow,with placed tohelptheutilitiesbenefitfromthesetrends. coupled withourfocusongridcontrolsolutions,wearewell- core utilitynetworkandassetdatamanagementskills force isgainingmomentumintheindustry.Throughour wireless technologiestoimprovetheefficienciesoffield enabling asmartgrid.Finally,thedeploymentofmobileand modernize meterreadinganddatacollectionsystem,thus of AutomatedMeteringInfrastructure(AMI)inamoveto advancements arecoupledwithanincreasingpenetration distributed generation,andrenewables.These being thelargeinvestmentsinsmartgridtechnologies, tremendous technologicaladvances,thekeyamongthem over thenextfiveyears.Theindustryisgoingthrough The globalutilitiesmarketispoisedtogrowatarateof8% Utilities andGeospatial these requirementsintheregion. logical network(ISP),wearewell-positionedtoaddress capabilities intelecomengineeringphysical(OSP)and increase inFTTHrollouttheregion.Withstrong in thecomingyear.TheAPACmarketwillseearemarkable rollout programsareexpectedtodriveopportunitiesforus services continues.IntheEuropeanmarket,largefiber build thesenetworksandthegeneralpublicdemandfor the governmentfundingcontinuestoprovideresources We seethistrendcontinueforatleastthenextfiveyearsas will drivesignificantopportunitiesforusinthecomingyears. investment infiberdeploymentthroughCAFIIinitiative.It broadband basedonfiber.TheUSmarketwillseecontinued 2017. Therewillalsobeahugeinvestmentinfixed be akeytrendgloballywith5Grollouttakingplaceinlate Internet ofThings(IoT).4Gupgrade/LTEdeploymentwill in thebusinesscomingyear. geospatial industries,weexpecttoseedouble-digitgrowth With ourexperienceandcapabilitiesintheutilities world andbringingupmanyopportunities. automated drivingarefurtherdisruptingthegeospatial growth inthisbusinessthecomingyear. and pipeline,weareconfidentofdeliveringgreaterthan50% of thisbusinessinthepastyearwithstrongorderbacklog business. Whilewedidgetimpactedbythecyclicalnature Defense segmentintheregionwilladdtoourgrowth with this,ourexpansionintoIsraeltotapAerospaceand expected todrivegrowthforusinthecomingyear.Along Defense, Industrial,andMedicalTechnology.Thisis in thisbusinessdrivenbycustomersAerospaceand Over thelastyear,wehavebeenwitnessingstrongtraction help clientsbuildtechnologicallycomplexproducts. focuses onbringingdesignthinkingintomanufacturingto manufacturing capabilities.DesignLedManufacturing Design LedManufacturing)tostrengthenour with thisstrategy,weacquiredRangsons(renamedto maintain partnerforclientsinourfocusindustries.In-line portfolio todifferentiateourselvesasadesign-build- S3 strategyandhavebeenactivelytransformingour Over thepasttwoyears,wearticulatedanddeveloped Design LedManufacturing double-digit earningsgrowthfortheyear. margins. Consequently,wearefocusedondeliveringa improvement andSG&Amanagementtocontrolour strengthen ourrigoraroundoperationalefficiency marginally positivethroughtheyear.Thisyear,wewillalso business. However,marginsareexpectedtoremainflat greater than50%growththroughourmanufacturing double-digit growththroughourservicesbusinessand financial performancethroughtheyear.Weexpecttoseea and orderbacklog,weareconfidentondeliveringastrong Our outlookforFY17isverystrong.Withahealthypipeline Business OutlookforFY17 26 64 Annual Report 2015-16 cyient.com Cyientis committedtodeliver innovativesolutionsthat Quality Policy beginning withastatedgoal. Our qualityimplementation effortsareallpervasive, and enhancethelevelofbusinessprofitability. services andsolutionsthatexceedcustomerexpectations Cyient iscommittedtocreatinganddeliveringengineering Quality Threats, RisksandConcerns restrictions Outsourcing Compliance risks cyber security Data privacyand Acquisitions Mergers & Integration risksin Competition risks Cost pressures uncertainty Global economic volatility Foreign currency Risk description those countries. may haveanimpactonthebusinessfrom also leadingtotighteningofvisanorms.This outsourcing toIndiafromUSandUK There maybelegislationsrestricting laws andregulationsofmultiplecountries Being aglobalcompany,weareexposedto reputation. leading tolossofdataanddamage extremely vulnerabletocyberattacks, In aconnectedworld,businessesare the strategicobjectivesofacquisition integration mayresultinfailuretoachieve Inappropriate acquisitionsormismanaged to pricingpressures there maybesevereimpactonmarginsdue In thishighlycompetitiveenvironment, on margins operating expensesmaycreatepressures Increase inemployeecostsandother business sentiments. be volatileandsuchvolatilitymayaffect Overall economicenvironmentcontinuesto the demandforourservices. economics likeUSandEuropecanimpact Economic uncertaintiesinleading impact ouroperatingresults. rupee andotherforeigncurrenciesmay Volatility inexchangeratesbetweenIndian our expensesareinIndianrupees. foreign currenciesandsignificantportionof A majorportionofourrevenuesarein Risk impact Quality Objectives: delight customersthroughdeploymentofrobustprocesses technologies andmethodologies. Deliver solutions/servicesbased oncuttingedgetools, active employeeengagement. Attract, trainandretaintalented professionalsthrough Delight customersthroughdeliveryexcellence. to mitigatetheimpact. We evaluateourbusinessmixanddeliverymodel industry bodiesinIndia. We continuetorepresentourcasethrough internally. specialist consultantsandcirculatesthesame receives updatesonchangesinregulationsfrom which monitorsglobalcompliances.Theteam The companyhasanin-housecomplianceteam external agencies. There arealsoauditsconductedperiodicallyby encryption, databackupmechanism,patchesetc. The companyalsohasinplacefirewalls,data incidents. policy whichensurestimelyresolutionof The companyhasastringentCyberSecurity are reportedtotheBoard is aperiodicreviewoftheactivitiesandsame merger integrationwithwelllaidoutplans.There There isadedicatedteammonitoringthepost- We arealsogettingintonewbusinessmodels. differentiated services There isfocusonprovidinghighervalueand pyramid correction. possible. Thereisaregularprocessofemployee Offshoring ofservicesisalsoexploredwherever productivity andemployeeutilization. There isacontinuousfocusonincreasing impact onourbusiness. across geographiesallowsustominimizethe Broad-based andwelldiversifiedbusinessmix helps inminimizingtheimpact. against adverseforeignexchangemovements which isreviewedperiodically.Prudenthedging There isBoard-approvedhedgingpolicyinplace, Risk mitigation 26 65 Annual Report 2015-16 cyient.com (Union desIndustriesFerroviairesEuropéennes). The Business ManagementSystems. IRISisheadedbyUNIFE recognized standarduniquetorail sectorforevaluationof International RailwayIndustry Standard(IRIS)isaglobally IRISRev 2.0(InternationalRailwayIndustryStandard): Cyient iscertifiedtoAS9100CbyDQS,India Group). been preparedbyIQAG(InternationalAerospaceQuality statutory andregulatoryrequirements.Thestandardhas products thatmeetorexceedcustomerandapplicable organizations produceandcontinuallyimprovesafe,reliable standard ensuresthataviation,spaceanddefence implementing anISO9001:2008-basedqualitysystem.The quality managementsystemthatmustbeaddressedwhen AS9100C definesadditionalareaswithinanaerospace Defence Organizations AS 9100C:QMSRequirementsforAviation,Spaceand Cyient iscertifiedbyBureauVeritasCertification,India. and clientinformationisprotectedmaintained. confidentiality, integrityandavailabilityofvitalcorporate security management.Itgivesassurancethatthe This isthemostwidelyrecognizedstandardforinformation System ISO 27001:2013InformationSecurityManagement Veritas Certification,India. satisfaction. CyientiscertifiedtoISO9001:2008byBureau quality managementsystemtoenhancecustomer for GISservices.ISO9001specifiestherequirementsfora Cyient isthefirstIndiancompanytogainISOcertification Requirements ISO 9001:2008-QualityManagementSystem A briefonthestandardsthataremeticulouslyfollowed: 2004 ,BS-OHSAS18001-2007andCMMI-DEVVersion1.3. C, ISO13485:2003,IRISRev2.0,TL9000R5.5,14001- and modelslikeISO9001:2008,27001:2013,AS9100 aligned withtheinternationallyrenownedqualitystandards and optimizedwithexperiencesbestpracticesthatare quality managementsystem(QMS)isatestimonyderived always assuredthemoftimelydefect-freedeliverables.The Our clientstrustthestrengthofqualityprocessesthathave reputation forprovidingourclientswithworld-classquality. True toourimageasaglobalplayer,wehavedeveloped Our Credentials capitalize onmarketopportunities. receive highqualityproductsandservicesthathelpthem improvement inallspheresofactivity,weensurethatclients By emphasizingandreinforcingtheneedforcontinuous operational excellence. Continuous processimprovementandachieve Engineering services. Certification underProductcategory 7.2.1.1-FixedNetwork Cyientis certifiedtoTL9000 R5.5byBureauVeritas performance oftheproductsand services and costbasedmetricsthatmeasure reliabilityandquality products andservices.IncludedinTL9000isperformance production, delivery,installationandmaintenanceof quality systemrequirementsforthedesign,development, purpose ofTL9000istodefinethetelecommunications system standardsandmodelsforthetelecomindustry.The performance bypromotingaharmonizedglobalsetofquality It aimsatcontinuallyimprovingthetelecomindustry on ISO9001anditsqualityprinciples. communication technologies(ICT)industry.TL9000isbuilt quality requirementsoftheglobalinformationand system (QMS)tomeetthesupplychainandoperational QuEST ForumdevelopedtheTL9000qualitymanagement TL 9000R5.5-TheTelecomQualityManagementSystem: Cyient partneredwithQAIIndiaLimitedforCMMIappraisal. units. Development projectsofEngineeringandDNOoperations scope ofappraisalcoversFullLifecycleSoftware Cyient isappraisedatCMMI-DEV,Version1.3-Level5.The quality model. adopted worldwidebyleadingITcompaniesasabenchmark manage risksandmakestructureddecisions.Itisbeing strengthen softwareengineeringprocesses,butalso Software EngineeringInstitute.Itenablesnotonlyto (CMM) thatintegratesvariousframeworkscreatedby CMMI isanenhancedversionofCapabilityMaturitymodel organization's processes. thequalityandmaturityofan CMMI modeldemonstrates Integration): CMMI-DEV Version1.3Level5(CapabilityMaturityModel Cyient iscertifiedtoISO13485:2003byDQS,India. international market. model forqualitymanagementsystemrequirementsinthe The maingoalofISO13485:2003istoprovideaharmonized used bymedicaldevicemanufacturers/serviceproviders. requirements foraqualitymanagementsystemthatcanbe ISO13485:2003 isaninternationalstandardthatspecifies Systems- Requirementsforregulatorypurposes: ISO 13485:2003-MedicalDevices-QualityManagement Cyient iscertifiedtoIRISRev2.0byDQS,India. requirements oftherailwayindustry. IRIS isbasedonISO9001:2008,withadded,specific rail sectorforsupplierselection. database,which isusedbyoperatorsandmanufacturersin organizations certifiedtoIRISgetsregisteredinUNIFE 26 66 Annual Report 2015-16 cyient.com operating effectively. financial reportingareexisting andthatsuchcontrolswere 2016 andhaveopinedthatadequate internalcontrolsover financial controlsover reportingasonMarch31, The auditorshavealsoindependently auditedtheinternal of itskeyobservationsfromtimetotime. in thecompanyandkeepsboardofdirectorsinformed alia, theirviewsontheadequacyofinternalcontrolsystems meets thecompany'sstatutoryauditorstoascertain,inter implementation ofcorrectiveactions.Thecommitteealso considered andtheauditcommitteefollowsupon the internalauditors.Suggestionsforimprovementare The AuditCommitteereviewsauditreportssubmittedby corporate governancereport. Directors, thedetailsofwhichhavebeenprovidedin The companyhasanAuditCommitteeoftheBoard significant areasofthecompany'sglobaloperations. the adequacyofinternalcontrolchecksandcoversall Committee. Theinternalauditprocessisdesignedtoreview auditors (M/sDeloitteHaskins&Sells)andtheAudit is reviewedeachyearinconsultationwiththestatutory financial year2015-16basedonaninternalauditplan,which M/s Ernst&YoungLLPcarriedouttheinternalauditfor information. which connectstodifferentlocationsforexchangeof consolidation andmanagementinformationpurposes, system, globally,torecorddataforaccounting, approving revenueandexpenditure.ThecompanyusesSAP has awell-definedmanualfordelegationofauthority ensuring complianceofcorporatepolicies.Thecompany executing transactionswithproperauthorizationand safeguarding assetsfromunauthorizeduseorlosses, operational information,complyingwithapplicablestatutes, with regardtorecordingandprovidingreliablefinancial These havebeendesignedtoprovidereasonableassurance commensurate withitssizeandthenatureofoperations. in placeadequatesystemsofinternalcontrol have arobustinternalcontrolsframework.Thecompanyhas and largeassociatestrengthmakesitimperativeforusto The Company'sglobalpresenceacrossmultiplecountries Internal Controlsandadequacy and BSOHSAS18001:2007standards. (EOHSMS) iscertifiedinaccordancewithISO14001:2004 performance. Cyient'sEOHSManagementSystem accidents, aidlegislativecomplianceandimproveoverall and controlhealthsafetyrisks;reducethepotentialfor framework thathelpsorganizationstoconsistentlyidentify safe andhealthyworkingenvironmentbyprovidinga improve healthandsafetyperformance.EOHSpromotesa The EOHSManagementSystemisintendedtocontroland Occupational Health&Safety(EOHS) Environmental and analysed andimprovementsareimplemented. Satisfaction Surveyandtheresultsofsurveyare external agencytocarryoutanindependentInvestor Investor Dayatitspremises.Thecompanyalsoengagesan and investorconferences.Thecompanyhostsanannual senior managementteam,participateinvariousroadshows investor relationsdepartment,alongwiththecompany's channels forthispurpose.Thecompany'sdedicated financial performance.Weengagemultiplecommunication investor communityisasimportanttimelyandreliable structured manner.Webelievethatcommunicationwiththe strategies andnewinitiativestoitsinvestorsinaregular The companycommunicatesthebusinessoutlook, Investor Engagement Audit Committee. company's internalauditorsandareportispresentedtothe is periodicallycarriedoutbyErnst&YoungLLP,the risks, EmployeerisksandCustomerrisks.TheauditofERM criteria likeFinancialrisks,ReputationRegulatory covers variousoperationsofthecompanyaswellkey The frameworkisbasedonbest-in-classstandardsand The companyhasanorganization-wideERMframework. Enterprise RiskManagement(ERM) aftermarket servicesfortheaerospace industry. its growthstrategyfortheAsia Pacificregion,specificallyin 2015.Through thistransaction, Cyientcontinuestobuildon Engineering Asia,Singapore, onSeptember1, The companyacquiredthebusiness ofGlobalServices 1,2015. ThisismainlytosimplifytheoperationsinIndia. subsidiary, InfotechGeospatialIndiaPvtLtdw.e.fApril The companyamalgamatedwithitselfitswholly-owned services. strategy tofocusonengineeringandnetworkoperations September 16,2015.Thiswasinlinewiththecompany's Enterprises InformationTechnologyServicesPvtLtdon The companydisinvestedits100%stakeinInfotech Acquisitions /Amalgamations malpractice withinthecompany. without fear,toreportanywrong-doing,improprietyor public. ThestakeholdercanapproachtheOmbudsman, not correctwithinthecompanythatiseitherprivateor information oractivitythatisdeemedillegal,unethical, behaviour. Thisallowsstakeholderstoexposeanykindof standards ofprofessionalism,honesty,integrityandethical fair andtransparentmannerbyadoptinghighest believes intheconductofaffairsitsconstituentsa ensuring transperancyandaccountability.TheCompany organization-wide Whistle-Blowerpolicyisasteptowards Integrity, Respect,Sincerity,Transperancy)andthe Cyient firmlybelievesinValuesFIRST(FIRST=Fairness, Whistle-blower policy 26 67 Annual Report 2015-16 cyient.com Revenue byGeography portfolio. focus onawell-diversifiedbusinessandgeography revenue forthecompanyhasmorethandoubleddrivenby compounded annualgrowthrate(CAGR)of21%.The momentum inthelast5yearswithanimpressive The companyhassustainedrobustrevenuegrowth Revenue Growth and prudentcapexstrategy. of thefocusonreceivablesmanagement,taxoptimization The freecashgenerationhasimprovedsignificantlyinview improved overlast5yearsfrom12%inFY12to30%FY16. over thelast5years.Dividendpayouthassubstantially growth inrevenueandprofitof21%18%respectively creation overtheyears.Thishasresultedinsignificant The companyhasworkedtowardsshareholdervalue Shareholder ValueCreation strongly acrossallthegeographies andindustrysegments. Operating Units(OU)andeach oftheunithavegrown The companyhadbeenoperating bythreedifferent Revenue byOperatingUnits overall growthforthecompany. by (EMEA)andemergingmarkets(APACOthers)ledthe geographies. Largestgeobyrevenue(Americas),followed The companyhasdeliveredrobustgrowthacrossall opportunities. customers andgeneratingmoreup-sellcross-sell improving revenuepercustomerbyfocusingonstrategic same period.Thecompanywillcontinuetofocuson customers as%ofrevenueisupfrom43%to50%forthe US$ 1.5MninFY'16andrevenuefromNon-Top10 per clientforthecompanyisupfromUS$0.9MninFY'11to initiatives toimproveitsclientminingcapabilities.Revenue business fromexistingclientsandhastakenspecific The companyunderstandsimportanceofgettingmore Net Profitgrewata5yearCAGRof18% achieved significantgrowthonallmeasuresofprofitability. concomitant withbetterprofitability.Thecompany The companyfocusedonstrategyofrevenuegrowth Profits Trend + ChangesinWorkingCapital-Capex * FreeCashflowDefinition:PBT+ DepreciationandAmortization capital expenditure. outstanding, achievinglowertaxrateandoptimizingthe company's specificfocusonimprovingdayssales in FY'14to80%FY'16.FCFimprovementdrivenby Company's FCFas%ofoperatingprofitincreasedfrom53% FCF at3,378mnagainstgeneratedinFY'152,968Mn. 3 years.InFY'16,thecompanygenerateditshighestever cash flow(FCF)generationcapabilitiesofthebusinessinlast The companyhasachievedsignificantimprovementinfree Business FreeCashFlow(FCF)Generation 26 68 Annual Report 2015-16 cyient.com buyback strategyandrobustinternalcapexcontrol. focus onanassetlightmodel,implementationofleaseand capex spendas%ofrevenuewhichisdrivenbycompany's ` The companyendedtheFY'16withcapitalexpenditureof Capex 3 yearsfornewbusiness. The companyhasaddedcloseto~3,000peopleinSEZlast improved by70bpsfrom24.6%inFY'15to23.9%FY'16. in last3years.Effectivetaxratefortheorganizationhas strategy, thecompanyhasrealizedsubstantialtaxreduction Driven bySpecialEconomicZone(SEZ)deployment Tax Rate (Quarterly AnnualizedRevenue*90) * DSOCalculation:Totalreceivablesattheendofquarter/ is confidentofcontinuedimprovementinDSO. improved by4daysinFY'16toreach79Days.Thecompany on bettercollectioncyclemanagement.TotalDSO Days SalesOutstanding(DSO)inlast3yearsowingtofocus The companyhasdeliveredconsistentimprovementin Days SalesOutstanding(DSO) 778mn,whichis2.5%oftotalrevenue.Itthelowestever the currentdividendpayoutratiotobemaintained. improved substantiallyinlast5years.Thecompanyexpects Dividend: Dividendpaymenttrendforthecompanyhas Return toinvestors from Net worthofthecompanyhasgrownby65%inlast5years Net worth has improvedsignificantly Market capitalization:capitalizationofthecompany organic andinorganicinitiatives. profitable growthineachofthelastyears,drivenbyboth ` 11,575Mnto ` 19,098Mn.Itcanbeattributedtothe 26 69 Annual Report 2015-16 cyient.com mainly duetolowerrealizedgain onforwardcontracts. compared to Other incomefortheyear wasat Other income grew acrossgeographiesandmajoroperatingunits. The growthinconstantcurrencyis10.2%.company Analysis ofrevenuegrowth REVENUE (B) ANALYSIS .FINANCIALRESULTS A. financial statements. Significant accountingpoliciesusedforpreparationofthesefinancialstatementsaredisclosedinthenotestoconsolidated The discussionmentionedbelowrelatestoconsolidatedfinancialstatementsandthesamebereadtogetherwithsame. FINANCIAL PERFORMANCEFORTHEYEAR2015-16(CONSOLIDATED) Total growth Impact ofexchangerate Price increase Volume growth Growth attributableto Employee benefitsexpense Expenses Total Income Other income Income fromoperations Particulars Depreciation Finance costs Operating, administrationandotherexpenses Changes ininventory Cost ofmaterialconsumed Total expenses Profit fortheyear Share oflossattributabletominorityinterest Share ofprofitfromassociatecompany attributable tominorityinterest Profit aftertaxbeforeshareofprofit/(loss) associate andminorityinterest Profit aftertax,beforeshareofprofitin Exceptional item and minorityinterest Profit beforetax,shareofprofitassociate Tax expense Profit afterexceptionalitemandbeforetax ` 1,218millionlastyear.Thedecrease was ` 1,085 millionas 10.2 4.2 0.0 6.0 % 0961002,5 100.0 27,359 18,081 100.0 32,041 30,956 27,820 1,085 6,780 3,262 3,268 3,148 4,221 4,134 1,881 ` ` Employee benefitsexpense has increasedby7.9%from and otherfundsstaffwelfare expenses. fixed andvariablecomponents,contributiontoretirement Employee benefitsexpenseincludessalarieswhichhave Employee benefitsexpense acquisitions andforeignexchange impact. in manpower,salaryincreases, fullyearimpactof follows : The movementofRupeeagainstmajorcurrencieswasas
16,756millionto GBP EUR USD il%ofRevenue Mill 120 179 893 986 March 31,2016 (6) 87 6 21.9 8416,756 58.4 10.5 10.6 10.2 13.6 9924,121 89.9 13.4 ` 3.5 0.0 0.0 0.4 3.2 0.6 2.9 0.2 6.1 18,081million,mainlydueto increase lsn vrg lsn Average Closing Average Closing 50 87 24 98.57 92.46 98.73 95.09 51 22 75 77.52 67.51 61.14 72.29 62.59 75.10 65.47 66.33 EMrh21 YEMarch2015 YE March2016 28,577 1,218 6,136 3,532 3,510 3,359 1,097 4,455 4,455 ` March 31,2015 Ml %ofRevenue Mill 168 150 713 291 22 58 - 22.4 61.2 12.9 12.8 12.3 16.3 88.2 16.3 4,5 0.6 0.5 0.2 4.0 2.6 0.1 1.1 - 26 70 Annual Report 2015-16 cyient.com Operating, administrationandotherexpenses The profitbeforetaxhasdecreasedby7.2%from Profit beforetax revenue isat2.9%. computers andsoftware.Depreciationasapercentageof to additionsfixedassetsduringtheyear,mainly year to Depreciation hasincreasedby25%from Depreciation subsidiaries andimpactofacquisitions. ` Finance costshaveincreasedfrom Finance costs revenues ascomparedto22.4%ofrevenuelastyear. Other operatingexpenseshavebeenlowerat21.9%of March 31,2015to The paid-upcapitalhasincreased from Share capital (CONSOLIDATED) FINANCIAL POSITIONASATMARCH31,2016 also impactedduetoanexceptionalitem. million lastyearto ` Share ofprofitfromassociatecompanyhasdecreased Share ofprofitfromassociatecompany(IASI) business inspecialeconomiczones. 23.9% in2016.Thereductionisduetodeploymentofnew The effectivetaxratehasreducedfrom24.6%in2015to Tax expense also impactedduetoanexceptionalitem. million lastyearto company increase isonaccountofissueof ASOPstoassociatesofthe The profitaftertaxhasdecreasedby7.6%from Profit aftertax TOTAL Others maintenance Repairs and charges Subcontracting Travel Rent 179 millionthisyear,mainlyonaccountofborrowingsin 150millionlastyearto ` 893millionthisyear.Thisincreaseisattributable ` ` ` 562.4millionasatMarch31,2016. The 3,262millionincurrentyear.Thiswas 4,134millionincurrentyear.Thiswas ,8 1961622.4 6,136 21.9 6,780 ,9 . ,0 4.4 1,203 3.5 1,094 ,5 . ,4 6.0 1,648 5.3 1,652 ,2 . ,4 7.8 2,147 8.8 2,721 ` ` ac 1 06March31,2015 March 31,2016 120millioninthisyear.
1 . 2 1.6 429 1.7 519 9 . 0 2.6 709 2.6 794 il%of Mill eeu Revenue ` 58millionlastyearto ` 561.8 millionasat ` 713millionlast `
il%of Mill Revenue ` ` 3,532 4,455 March 31,2015to ` Goodwill onconsolidationasatMarch31,2016stood subsidiaries. purchase considerationovernetassetsofacquired Goodwill onconsolidationrepresentstheexcessof Goodwill onconsolidation computer softwareaswellinfrastructurefacilities. block offixedassets.Theadditionsaremainlytowards There hasbeenanadditionof Fixed assets tax thereon)inthepreviousyear. due toprovisionforproposeddividend(including Short termprovisionsdecreasedfrom Short-term provisions revenue. is inlinewithincreasebusinessandsteadyat10%of year 2015-16. account ofshareprofitfrom associatecompanyforthe Increase innon-currentinvestments of Non-current investments acquisitons andhencethereduction ingoodwill. general reservehasbeenadjustedforthegoodwillthese Infotech Geospatial(India)PvtLtdwithCyientLtd,the to amalgamationofSoftentialIncwithCyientand Securities premiumaccountincreasedby million ascomparedto Reserves andsurplusasatMarch31,2016stood Reserves andSurplus million asatMarch31,2015to Foreign currencytranslationreserveincreasedfrom stood at Balance inprofitandloss,afterappropriationofdividend, account ofpremiumonissueASOPs. The short-termborrowingsincreasedfrom Short termborrowings translation reserve. difference whichisaccumulatedinforeigncurrency assets &liabilitiesatclosingrates)givesrisetoexchange for translation(income&expensesataverageratesand during theyear2015-2016.Useofdifferentexchangerates 2016, duetomovementinexchangeratesofcurrencies goods andservicesstoodat Trade payablesconsistoftowardspurchase Trade payables company ininterestarbitrage. mainly utilizationofborrowinglimits,whichalsohelps This relatestoshort-termborrowingsinoursubsidiary, at March31,2015to`1,147millionas2016. 31, 2016( 2,708million( ` ` 8,915million(
2,754millionasatMarch31,2015).Theincrease `
4263 millionasatMarch31,2015).Pursuant ` 579millionasatMarch31,2016,mainly ` ` 17,879millionasatMarch31,2015. 8,181millionasatMarch31,2015). ` ` 494millionasatMarch31, ` 778milliontothegross 3,107millionasatMarch ` ` 120millionison 956millionasat ` ` 813 millionas 20millionon ` 18,536 ` 268 26 71 Annual Report 2015-16 cyient.com funds, haveincreasesfrom Current investments,comprisingofinvestmentinmutual Current investments ` Short-term loansandadvanceshavedecreasedfrom Short-term loansandadvances collection ofdues. days asatMarch31,2016duetofocusedapproachin a reductioninDSOfrom83daysasatMarch31,2015to79 mainly duetoincreaseinbusiness.However,therehasbeen as atMarch31,2015to The tradereceivableshaveincreasedfrom Trade receivables acquisitions anddividendpayoutin2015-16. This wasthehighestevercashpositiondespitefour to experience andsuccess. engagement that,inturn, leadstoimprovedclient is tocreateanenvironment withhighemployee new learningandgrowthopportunities. Ourcontinuedfocus HR functions,fromrecruiting thebesttalenttoproviding incorporate healthytalentmanagementpracticesacrossall and nurturinghigh-qualitytalent.Weconsistentlytryto Tomorrow Together'workstowardsattracting,retaining, Our HRteam,insyncwiththecompanyvisionof'Designing We strivetomaintainourpositionastheemployerofchoice. Becoming theEmployerofChoiceforaGlobalWorkforce: HR Highlights collectively alongwithtradereceivables. close watchonunbilledrevenue,separatelyaswell due toincreaseinunbilledrevenue.Thecompanykeepsa at March31,2015to Other currentassetshaveincreasedfrom Other currentassets arising outofforeigncurrencyhedging. March 31,2016mainlyduetodecreaseinderivativeassets Total cashandequivalents: 31, 2016,mainlyduetoinvestmentinbankdeposits. million asatMarch31,2015to The cashandbankbalanceshaveincreasedfrom Cash andbankbalances 1,356millionasatMarch31,2015to aacs6916,229 6,951 Total Mutual funds Investment in balances Cash andbank ` 790millionasatMarch31,2016. ` 1,993millionasatMarch31,2016, ` ac 1 06March31,2015 March 31,2016 6,145millionasatMarch31,2016 ` 336millionasatMarch31,2015 ` 6,951millionasatMarch 7,742 791 ` 1,089 millionasat ` 1,834millionas 5,336 million ` 5,336
` ( 6,565 ` 6,229 Mill) 336 LEARNING &DEVELOPMENT the overalleffectivenessofhiringefforts. The talentacquisitionteamtookupinitiatvestoenhance TALENT ACQUISITION 2015-16 Major initiativesImplementedDuringtheFiscalYear challenges whileimplementingleadingpractices. opportunities topracticeandaddressingthe advance andutilizetheclassroomtimetodiscuss have trainingcontentsharedwiththeparticipantsin training hasbeenintroducedfromthisyearwhichwill participants forELPand54BLP.Flip programs continuedfor2015-16aswellwith27 and MyManagerIndex.Theseflagshipleadership BLP indicateshighAssociateSatsifaction(ASAT)score enhancement. Ontheotherhand,impactevaluationof improvement inemployeeretentionandrole expert. ImpactevaluationofELPindicates classroom trainingandguidancefromaseniorleader/ Development Plan,learning-in-action,e-learning, positions internally.ELPandBLPcompriseofIndividual leadership pipelineandhelpsbusinessfill BLP hasbeenspeciallydesignedtobuildastrong shoulder higherresponsibilitiesatanacceleratedpace. talent earlyon,inthecareers,andnurturethemto and 53globalassociatesrespectively.ELPaimstospot Program (BLP)batcheswerecompletedcovering35 Emerging LeaderProgram(ELP)andBusiness to joinratio.Thisresultedin80%turnoutthisyear. Campus Connectprogramrefinedtoincreasetheoffer 6% increaseinfromlastyear. increase sourcingthroughreferrals.Thisresultedin Enhanced referralschemeswereintroducedto of 88% focus andtheimprovedprocessleadtoajoiningratio Post offerengagementofcandidateswasanarea resulted inreducedTATofnearly10%. towards hiriingthetalentwithimprovedtimelines.This Team wasrestructuredonthebasisofskillsfocussed self-initiated actions,seeking experienceby being executedoverayearperiod. TheIDPincludes prepared IndividualDevelopment Plans(IDP)whichis feedback forseniorleadership, 56leadershave After completingassessments including360-degree Systems APAC. Rishi Rana,FounderManagingDirector,SumTotal Krishna Ella,ManagingDirector,BharatBiotech&Mr encircling industryleaderknowledgesharingbyDr each) conductedbyDrBVRMohanReddy,also workshop series(comprisingsixsessionsof2-hours leaders, weintroduced'ValueBasedLeadership' In ourendeavortodevelophighpotentialemerging 26 72 Annual Report 2015-16 cyient.com associates aviewtotheirtotalrewardeligibilityandbrought and wellappreciatedbytheassociates.Thisprovided compensation wasanotherexercisethatundertaken associates ofthetotalrewardratherthanonly Compensation andBenefits:Thecommunicationto transparent andobjective. entire processwasaimedatmakingthewholemore review byajurypanelbeforetheawardswerefinalised.The There wasamajorrevampoftheprocessnomination, financial yearwerereviewedfortheChairman'sawards. top 1%ofthecontributionsassociatesinprevious process andrevampingtheMarkofExcellenceaward.The Rewards andRecognition:InstitutingtheChariman'saward highlighted below: of thechangesmadeinourmethodengagementsare engage ourassociatesthroughavarietyofmeansandsome for themtocontributetheirbesthasbeenourfocus.We At Cyient,itsprovidingtheassociatesrightatmosphere EMPLOYEE ENGAGEMENT delivery. colleages covering180studentsthroughremote Engineering forJNTU-Kakinadaandfewother delivered full-courseonAdvancedComputerAided efforts tosupportthesocietiesthatweoperatein, SAT scoreProjectsfortheYear".Incontinuationtoour project groupsalsobecamepartof"MostImprovedC- communication ofmanagerswithclients.These increasing customersatisfactionlevelonthe project groupsinDNOdeliveryunitwhichhelped senior managersandabovelevelsinacrossmultiple program is"Communicatetolead"coveringover100 business verticalsandleadershiplevels.Onesuch This FYhasseenseveralcustomizedprogramsforthe modules forallbusinessunitsandfuncitonsinFY17. were wellreceivedpavingwayforfull-fledgedonline launched onpilotmodeacrosstheorganisation.These process globally,10onlineinductionmoduleswere With aviewtounifytheinduction&on-boarding status ofIDPactions. fro alltheseactionsandmonitoredonthecompletion training programs.Leadershipmembersaresupported through coachingormentoringandparticipatinginthe performing differenttasks/roles,seekingexposure from suchexpectations,whetherexpressedorimplied. applicable lawsandregulations.Actualresultsmaydiffer "forward lookingstatements"withinthemeaningof Certain statementsmadeinthisreportmayconstitute Cautionary statement year. Associate Engagementindexby6%comparedtothelast The resultoftheaboveisseeninimprovement significant participation. Health monthwerelaunchedduringFY15-16andsaw Other Initiatives:SeveralinitiativeslikeSpiritofCyient, benefit packageduringthisfinancialyear. reviewed inareasaroundinsurancecoverageandflexible compensation andbenefits.Thecurrentbenefitswerealso in betterclaritytheirunderstandingoftotal OTHER METRICS 2015-16 er Female 2014-15 Years %>1Year 2015-16 <1year 2014-15 Experience New Hires 2015-16 2014-15 Attrition 183%28 4 3273 64% 3877 2085 68% 36% 2646 1188 32% 1231 20% 21% soitsGEOLocalHires Associates Voluntary 19.55% 19.67% 13% 11% Total % 26 73 Annual Report 2015-16 cyient.com .Detailsofmaterialcontractsorarrangementtransactionsatarm'slengthbasis 2. Detailsofcontractsorarrangementstransactionsnotatarm'slengthbasis 1. proviso thereto to insub-section(1)ofsection188theCompaniesAct,2013includingcertainarmslengthtransactionsunderthird Form fordisclosureofparticularscontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferred (Pursuant toclause(h)ofsub-section(3)section134theActandRule8(2)Companies(Accounts)Rules,2014) ae:21April 2016 : Date Hyderabad : Place a Name(s)oftherelatedpartyandnaturerelationship (a) arm’s lengthduringfinancialyear2015-16. The companyhasnotenteredintoanycontractorarrangementtransactionwithitsrelatedpartieswhichisat f Amountpaid asadvances,ifany: (f) Date(s)ofapprovalbythe Board,ifany: (e) Salientterms ofthecontractsorarrangementstransactionsincludingvalue,ifany: (d) Durationofthe contracts/arrangements/transactions (c) Natureofcontracts/arrangements/transactions (b) Cyient 1 Entity 1CyientSingaporePrivateLimited, 11 CyientAustraliaPty Ltd, Australia CyientKK, Japan 10 CyientAB,Sweden 9 CyientGmbH,Germany 8 CyientSRO,CzechRepublic 7 CyientSchweizGmbH,Switzerland 6 CyientBeneluxBV,Netherlands 5 CyientEuropeLimited,UK 4 CyientCanadaInc., 3 2 of thebusiness. The paymenttermsofeachprojectaspertheintercompany agreementsenteredwiththerespectivesubsidiaries. tripartite agreement. To provideITEnabledEngineeringServices&Geospatial totheclient/customerscompanyasa Intercompany agreementsenteredintowithsubsidiarycompanies, asamendedandongoing. Stepdownsubsidiary IT EnabledEngineeringServices&GeospatialServices. * yettocommencecommercialoperations InfotechEnterprisesInformationTechnologyServicesGmbH,Germany 21 Services PrivateLimited,India InfotechEnterprisesInformationTechnology 20 InfotechGeospatial(India)PrivateLimited 19 InfotechAerospaceServicesInc.,Puerto 18 InfotechHALLimited,India 17 TechnoToolsPrecisionEngineeringPrivateLimited,India 16 Limited, India RangsonsElectronicsPrivate 15 CyientInsights,LLC 14 Limited, India CyientInsightsPrivate 13 Limited, China* CyientEngineering(Beijing) 12 Inc. Nil Notapplicableastheseareatarmslengthbasisandintheordinary course Form No.AOC-2 Rico For andonbehalfoftheBoard Step downsubsidiary Joint Venture Joint Step down subsidiary down Step Step downsubsidiary Step down subsidiary Step down subsidiary Relationship Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Step down subsidiary Step down subsidiary down Step Associate Subsidiary B.V.R. MohanReddy Executive Chairman Annexure-G (DIN-00058215) 26 74 Annual Report 2015-16 cyient.com I PRINCIPALBUSINESSACTIVITIESOFTHECOMPANY II. .REGISTRATIONANDOTHERDETAILS: I. Rules, 2014] [Pursuant tosection92(3)oftheCompaniesAct,2013andrule12(1)(ManagementAdministration) vii) Name, Address and Contact details of Karvy Computershare Private Limited Private Computershare Karvy Name,AddressandContactdetails of 4thFloor,A,Wing,PlotNo.11,SoftwareUnitsLayout,Infocity, vii) Whetherlistedcompany vi) Company CompanyLimitedbyshares/IndianNon-Government office Registered the of Address Company the v) of Category/Sub-Category Name of iv) the Company Date Registration iii) CIN ii) i) Software EnabledEngineeringand main products/services Name andDescriptionof n otc eal Madhapur,Hyderabad500081,Telangana. Limited Cyient Unit: Registrar andTransferAgent,ifany and contact details EXTRACT OFANNUALRETURNasonthefinancialyearended31March2016 GIS services Form No.MGT-9 28 August1991 L72200TG1991PLC013134 Website: www.karvycomputershare.com E-mail: [email protected] Ph: 040-67161562 Contact Person:Mr.MohdMohsinUddin,Manager-CorporateRegistry Nanakramguda, Hyderabad–500032,Telangana. Karvy SeleniumTowerB,Plot31-32,GachibowliFinancialDistrict, Tel: 040-67641322;Fax:040-66624368 E-mail: [email protected];Website:www.cyient.com Yes Cyient Limited(FormerlyInfotechEnterprisesLimited) I oeo h rdc/evc % to total turnover NIC CodeoftheProduct/service 72200 of thecompany Annexure-H 100 26 75 Annual Report 2015-16 cyient.com I.PARTICULARSOFHOLDING, III. No. l NameoftheCompany Sl. 1CyientEngineering(Beijing)Limited 21 4CyientAB 14 1Cin cwi mHSizradNtApial Step down InfotechEnterprisesInformation Applicable Not 15 Switzerland CyientSRO 12 CyientSchweizGmbH 11 CyientBenelux 10 20 Infotech Aerospace Services Inc. Puerto Rico Not Applicable Not PuertoRico InfotechAerospaceServicesInc. 20 CyientAustraliaPtyLtd, 19 CyientSingaporePrivateLimited 18 TechnoToolsPrecisionEngineering 17 CyientKK 16 CyientGmbH 13 CyientCanadaInc. 8 CyientEuropeLimited 7 CyientInc. U72200TG2013PTC087527 6 U31909KA1993PTC014470 India InfotechHALLimited 3 CyientInsightsPrivateLimited India 2 Rangsons ElectronicsPrivateLimited 1 InfotechEnterprisesInformation 5 CyientInsights,LLC 9 InfotechGeospatial(India) 4 5 4 3 2 1 Private Limited Technology ServicesGmbH Technology ServicesPrivateLimited Private Limited 2016. Thesaidsubsidiarywasnotconsideredforconsolidation. The Companyisyettocommencecommercialoperationsandthere arenofinancialtransactionsfortheyearendedMarch31, ` Singapore PrivateLimitedcommencedcommercialoperationsduring theyearpursuanttoCompanyinvestinganamountof On May07,2015,theCompanyincorporatedawhollyownedsubsidiary, CyientSingaporePrivateLtd,inSingapore. commercial operationsduringtheyear. wholly-owned subsidiaryCyientEuropeLimited(formerlyInfotech EnterprisesEuropeLimited).CyientSROhascommenced On September30,2015,theCompanyincorporatedawhollyowned subsidiary,CyientSRO,inCzechRepublic,throughits wholly-owned subsidiary,InfotechEnterprisesInformationTechnology ServicesGmbH,Germany,onSeptember16,2015. The Companydisinvestedits100%stakeinInfotechEnterprisesInformationTechnologyServicesPrivateLimited,Indiaand was mergedwiththeCompanyeffectiveApril1,2015. Pursuant toaresolutionoftheBoardDirectorsandorderHighCourtJudicature,AndhraPradesh&Telangana,IGIL
238,179,600. 3 1 VNtelnsNot Netherlands BV utai Australia Australia 2 4 SUBSIDIARY ANDASSOCIATECOMPANIES 5 2 wdnNot Sweden emn Not Germany aa o plcbe Step U29200KA2007PLC043691 NotApplicable India Japan Not Germany aaaNot Canada ..NotApplicable Not U.K. U.S.A. ni 720G08T011 Subsidiary U72200TG2008PTC061416 India zc eulcNot Applicable Czech Republic Subsidiary U72200TG2006PTC049449 India hn NotApplicable China Not Singapore .. Not U.S.A Incorporation Country of Country India o plcbe usday10 Sec. 2(87) 100% Subsidiary Not Applicable U29200KA2007PLC043691 CIN/GLN plcbeStepdown Applicable plcbeSe onN Sec. 2(87) NA Stepdown Applicable Stepdown Applicable Applicable plcbeStepdown Applicable Applicable plcbe usday10 Sec. 2(87) 100% Subsidiary Applicable plcbeSe on5%Sec. 2(87) 51% Stepdown Applicable Step down Ascae49% Associate Subsidiary/ usday100% Subsidiary usday100% Subsidiary usday100% Subsidiary usday51% 74% Subsidiary Subsidiary usday100% subsidiary 100% subsidiary subsidiary 100% subsidiary Joint Venture 31 Associate subsidiary 100% subsidiary 100% subsidiary subsidiary Holding/
usday10 Sec.2(87) 100% Subsidiary usday100% Subsidiary on7%Sec.2(87) 74% down 50% Extent of tSection Holding asat ASec.2(87) NA ASec.2(87) NA March 2016 Sec. 2(87) Sec. 2(6) Sec. 2(6) Sec. 2(87) Sec. 2(87) Sec. 2(87) Sec. 2(87) Sec. 2(87) Sec. 2(87) Sec. 2(87) Sec. 2(87) Sec. 2(87) Sec. 2(87) Applicable 26 76 Annual Report 2015-16 cyient.com V )SHAREHOLDINGPATTERN(EquityshareCapitalBreakupaspercentageofTotalEquity) i) IV. 2 NON-INSTITUTIONS (2) Others QualifiedForeignInvestor (i) ForeignVentureCapitalInvestors (h) ForeignInstitutionalInvestors (g) InsuranceCompanies (f) VentureCapitalFunds (e) (d) CentralGovernment/State FinancialInstitutions/Banks (c) MutualFunds/UTI (b) INSTITUTIONS (a) PUBLICSHAREHOLDING (1) (B) Others QualifiedForeignInvestor (e) Institutions (d) BodiesCorporate (c) Individuals (NRIs/ForeignIndividuals) (b) FOREIGN (a) (2) Others FinancialInstitutions/Banks (e) BodiesCorporate (d) (c) CentralGovernment/State Individual/HUF (b) INDIAN (a) PROMOTERANDGROUP (1) (A) Code 2 Public PromoterandGroup (2) (1) Sharesheldbycustodians,againstwhich (C) QualifiedForeignInvestor (d) Others (c) Individuals BodiesCorporate (b) (a) Category of GRAND TOTAL(A+B+C): i Individualsholdingnominalshare (i) (ii) Individualsholdingnominalshare Shareholder Depository Receiptshavebeenissued Total (A+B): Total B=B(1)+B(2): Sub-Total B(2): Trusts Non ResidentIndians Clearing Members Foreign Bodies Foreign Collaborators Foreign Nationals NBFCs registeredwithRBI Sub-Total B(1): Government(s) Total A=A(1)+A(2) Sub-Total A(2): Sub-Total A(1): Government(s) capital inexcessof capital upto `
1 lakh `
1 lakh oo hrsi Noofsharesin No ofsharesin Demat form Physical form Physical Demat form 1389 027 1316 112361065 1002270 111358795 1389 027 1316 112361065 1002270 111358795 16792960 452602922 22 467802994 22 -0.01 22.20 24969748 0 24969748 22.21 24952226 0 24952226 605910208483 77 6341965 71697.00.01 -0.13 77.80 28.40 87513629 31945934 976158 975958 86537471 30969976 77.79 28.53 87408839 32052916 1002270 0.13 1002070 86406569 49.40 31050846 55567695 200 55567495 -0.01 49.27 55355923 22.20 24969748 200 0 -0.01 55355723 22.20 24969748 24969748 22.21 0 24952226 0 24969748 22.21 24952226 24952226 0 24952226 15280733 40049123 328 040476342 861 728542346 0.41 4.66 5246203 379288 4866915 4.25 4777683 405400 4372283 430 430 1.32 1483901 0 1483901 256 50568846 5303802 4.69 5266868 1500 5265368 702 100360328 706 100398528 0.02 2.84 3197865 417000 2780865 2.82 3167023 417000 2750023 550100329 .3339 65 32303 -0.03 0.30 339243 16050 323193 0.33 372590 16050 356540 25867 29771 0 0 0 610122 0.14 162120 162120 0 0 0 0 0 .000000 0.00 0.00 0 0 0 0.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 begning oftheyear(1April2015) No. of sharesheldatthe 0 04333.444570220 35.64 40049323 200 0 0 0 0 0 0 0 56 .221135 0.02 25867 0 0 0 0 69901.516792960 14.95 16792960 0 0 0 0 310204 0.03 29771 0 0 0 0 0 0 58731.010976140 13.60 15280733 0 0 0 0 oa oo hrsi Noofsharesin Noofsharesin % of total Total 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0.00 0 0.00 0 0.00 0.00 0 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.0111507219 100.00 0.0111507219 100.00 shares Demat form Physical form Physical Dematform shares 0.00 9890807 .9-0.53 0.79 890879 0 890879 3 610125 .40.00 0.14 162658 162120 538 2 2 .00.00 0.00 620 620 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 end oftheyear(31March2016) No. ofsharesheldatthe 718112483377 976158 71812837 112483377 976158 50503247 0.03 4.72 5305302 1500 0 47403.23.98 39.62 44570420 200 0 0 0 0 0 0 0 0 0 13 .20.00 0.02 21135 0 0 00 .1-0.02 0.01 10204 0 69901.3-0.02 14.93 16792960 0 0 0 0 0 0 071097 -3.84 9.76 10976140 0 0 0 0 0 0 0 oa % of total Total .00.00 0.00 0 .00.00 0.00 0 0.00 0.00 0 .00.00 0.00 0 0.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 0.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 0.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 0.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 .00.00 0.00 0 100.00 0.00.00 100.00 hrsthe year shares % Change during 0.00 0.00 0.00 26 77 Annual Report 2015-16 cyient.com Note: i)Change iii) ShareholdingofPromoters ii) IV. l o Nameofthe Promoter No. Sl. Sl. No. B.Ashok Reddy 9 A.AmalaReddy 8 B.V.S.RatnaKumari 7 CarolAnnReddy 6 Reddy D.Nageswara 5 B.SriVaishnavi 4 B.G.V.Krishna 3 B.Sucharitha 2 Reddy B.V.R.Mohan 1 B.Ashok Reddy A.AmalaReddy 9 B.V.S.RatnaKumari 12.99 8 CarolAnnReddy 7 D.Nageswara Reddy 6 14,597,366 B.SriVaishnavi 5 Krishna B.G.V. 4 Sucharitha B. 3 B.V.R.MohanReddy 2 1 The decreaseof%theindividual holdingisduetoissueoffurthersharesuponexercise ofstockotpionsbythe associates. At theendofyear At theendof Increase/Decrese duringtheyear At theendof the year Increase/Decrese duringtheyear At theendof the year Increase/Decrese duringtheyear At theendof the year Increase/Decrese duringtheyear At theendofyear Increase/Decrese durin Increase/Decrese duringtheyear At theendof Increase/Decrese duringtheyear At theendof Increase/Decrese duringtheyear At theendof Increase/Decrese duringtheyear Total Shareholder's name in promoters’shareholding(Pl.specify,ifthereisnochange) h er15200.10 115,200 the year h er3000 0.01 3,000 0.03 15,600 38,400 the year the year the year h er1,2 0.05 17,522 g theyear
o fsae fttl%o hrsN.o hrs%o oa % of shares % of total No.ofshares % of shares % of total No. ofshares 24,952,226 651205.82 6,541,200 170401.59 1.65 1,790,400 1,850,760 15200.10 115,200 3,0 0.03 38,400 1,0 0.01 15,600 3000.01 3,000 Shareholding atthebeginning 300.00 300 of theyear(1April2015) o fsae fttlsae o fsae %oftotalshares No.ofshares %oftotalshares No. ofshares 4573613.04 14,597,366 ,9,0 1.6 1.65 1,790,400 5.84 1,850,760 6,541,200 einn fteya attheendofyear year the of beginning 1,0 0.1 115,200 Shareholding at the Cumulative shareholding Cumulative Shareholding atthe shares of the pledged/ shares ofthe 38,400 15,600 opn encumbered Company 3,000 300 22.21 Nil Nil Nil Nil Nil Nil Nil Nil of theCompany to totalshares 0 651205.82 6,541,200 0 0 170401.59 1,790,400 0 0 1,1,8 12.99 14,614,888 0 0 180701.65 1,850,760 0 15200.10 115,200 0 0.03 0.01 0.01 Nil Nil Nil Nil Nil Nil Nil Nil 0 4997822.21 24,969,748 3,0 0.03 38,400 1,0 0.01 15,600 3000.01 3,000 4648812.99 14,614,888 end oftheyear(31March2016) 300.00 300 ,9,0 1.59 1.65 1,790,400 5.82 1,850,760 6,541,200 Shareholding atthe 300 shares of the pledged/ shares ofthe
Company of theCompany to totalshares encumbered 0 0 0 0 0 0 0 0 0 0 26 78 Annual Report 2015-16 cyient.com )ShareholdingofDirectorsandKeymanagerialPersonnel v) v ShareholdingPatternoftoptenShareholders(otherthanDirectors,PromotersandHoldersGDRs iv) Note: Sl. No. Name of the Directors and KMP Shareholding at the at Shareholding NameoftheDirectorsandKMP No. Sl. l o NameoftheTop10 No. Sl. Note: 0NationalWestminsterBankPlc 10 SudheendhraPutty(CS) 3 AjayAggarwal(CFO) 2 M.M.Murugappan (Director) 1 IciciPrudentialLifeInsurance LavenderInvestmentsLtd 5 DeutscheSecuritiesMauritiusLtd 4 FirstCarlyleVenturesMauritius 3 Carrier InternationalMauritiusLtd 2 1 T.RowePriceInternational 9 Reliance CapitalTrusteeCo.Ltd 8 AmansaCapitalPteLimited 7 OppenheimerInternational 6 ADRs): .Thedetailsofdatewiseincrease/decreasewillbe providedattherequestofshareholder. 2. ThesharesoftheCompanyaretradedonadailybasisstockexchangesandhencedatewiseincrese/ 1. At theendofyear Increase/Decrese durin At theendof Increase/Decrese duringtheyear Mr. KrishnaBodanapuhasbeendisclosedundertheheading of‘shareholdingpromoters’. None oftheotherdirectorsholdanysharesincompany. TheshareholdingofMr.B.V.R.MohanReddyand Increase/Decrese duringtheyear At theendofyear Discovery Fund A/C Relianceequit A/C AmansaHoldings Small CompanyFund Company Ltd decrease inshareholdingisnotprovided. h er3,0 0.26 30,000 the year Shareholders Shareholding at the Cumulative shareholding Cumulative Shareholdingatthe Shareholders h er-5,800 g theyear o fsae fttlsae o fsae %oftotalshares No.ofshares %oftotalshares No. ofshares o fsae fttlsae o fsae %oftotalshares No.ofshares %oftotalshares No. ofshares 1094698 109469.87 13.6 11,099,416 15,292,960 9.88 13.61 11,099,416 15,292,960 ,3,0 .1472114.21 4.85 4,732,101 5,456,277 4.21 4.86 4,732,101 5,456,424 1,399,043 ,7,8 .8254362.29 3.18 3.69 2,574,316 4.48 3,581,556 2.38 4.27 4,155,404 2.60 5,040,320 3.85 2,673,785 4,806,297 4.10 2,921,225 4.18 4,326,252 4,603,554 4,694,674 beginning oftheyear einn fteya attheendofyear year the of beginning 0000.27 30,000 5,900 Nil 0 0 of theCompany of theCompany .52,719,104 1.25 Nil 0 0 0 Cumulative shareholding Cumulative 100 during theyear 0 of theCompany of theCompany 2.42 0 0 26 79 Annual Report 2015-16 cyient.com Sl.No. REMUNERATIONOFDIRECTORSANDKEYMANAGERIALPERSONNEL VI. INDEBTEDNESS V. Sl.No. iAndreaBierce vi SomMittal iv i ShankarNarayanan iii Harsh Manglik iii OtherNon-ExecutiveDirectors 2 IndependentDirectors 1 Others,pleasespecify 5 Commission SweatEquity 4 StockOptions 3 2 Grosssalary 1 JohnPaterson v iTomPrete ii K.Ramachandran ii AlainDeTaeye i M.M.Murugappan i Company hasnotavailedanyloansduringtheyearandisadebtfreecompany .Remunerationtootherdirectors: B. Remunerationto ManagingDirector,Whole-timeDirectorsand/orManager: A. Ceiling aspertheAct c rft nle fslr ne eto 73 i i Nil Nil Nil Profitsinlieuofsalaryundersection17(3) (c) Particulars ofRemuneration Total (1) Total (A) Others,Specify (b) as%ofProfit (a) Valueofperquisitesu/s17(2)Income-tax (b) Total Managerial Remuneration (A Total ManagerialRemuneration Overall CeilingaspertheAct Total (B)=(1+2) Total (2) a aaya e rvsos otie nscin1()NlNlNil Nil Nil Salaryasperprovisionscontainedinsection17(1) (a) Particulars ofRemuneration Incometax Act,1961 of theIncome-taxAct,1961 +B) c,914,860,000 Act,1961 xctv himnMD & CEO Chairman Executive B.V.R. MohanReddy
51,663,911 28,761,178 46,289,685 75,050,863 46,289,685 28,761,178 8027318,042,733 Name ofMD/WTD/Manager Nil Nil Nil Nil Krishna Bodanapu 50165116,725,596 65,061,685 4840032,926,733 14,884,000 ,8,0 3,888,000 Nil Nil Nil Nil 293,364,012 126,701,928 Notclaimed (Amount in (Amount in Not claimed Not claimed Commission 29,336,401 1,200,000 2,588,166 1,200,000 1,200,000 1,200,000 9,976,332 9,976,332 2,588,166 8,748,000 Total Nil Nil Nil Nil Nil ` ` ) ) 26 80 Annual Report 2015-16 cyient.com I.PENALTIES/PUNISHMENT/COMPOUNDINGOFOFFENCES: VII. Sl.No. opudn NIL NIL Compounding Punishment Penalty NIL NIL Compounding Punishment Penalty NIL NIL Compounding Punishment Penalty Type Type yeSectionof Type Others,pleasespecify 5 Commission SweatEquity 4 No.ofStockOptionsgrantedduring 3 2 Grosssalary 1 .RemunerationtoKeyManagerialPersonnelOtherthanManagingDirector,Whole-timeDirectorsand/or C. .OTHEROFFICERSINDEFAULT C. DIRECTORS B. .COMPANY A. Total (A) c Profitsinlieuofsalaryundersection17(3) (c) Valueofperquisitesu/s17(2) (b) b Others,Specify (b) as%ofProfit (a) a Salaryasperprovisionscontainedin (a) atclr fRmnrto jyAgra uhedr ut Total SudheendhraPutty AjayAggarwal Particulars ofRemuneration Manager: Incometax Act,1961 Income-tax Act,1961 Act,1961 section 17(1)oftheIncome-tax Section of Section of opne ecito uihetcmonig{DNL/if any {RD/NCLT/ punishment/compounding Description Companies if any {RD/NCLT/ punishment/compounding Description Companies opne ecito uihetcmonig{DNL/if any {RD/NCLT/ punishment/compounding Description Companies Act Act Act NIL NIL NIL h Brief the Brief the h Brief the NIL NIL NIL NIL NIL NIL NIL NIL NIL h er1,0 i 10,000 Nil 10,000 the year Chief Financial Officer Company Secretary Company Chief FinancialOfficer Details ofPenalty/ Details ofPenalty/ Details ofPenalty/ Name ofKMPotherthanMD/WTD/Manager fees imposed fees imposed fees imposed NIL NIL NIL NIL NIL NIL NIL NIL NIL 12,949,162 11,720,743 ,2,1 5,2 1,485,239 256,820 1,228,419 Nil Nil Nil Nil Nil Authority Authority Authority OR}(givedetails) COURT} (givedetails) COURT} OR}(givedetails) COURT} NIL NIL NIL NIL NIL NIL NIL NIL NIL ,2,6 15,075,824 2,126,662 ,6,4 13,590,585 1,869,842 Nil Nil Nil Nil Nil Appeal made, Appeal made, Appeal made, (Amount in NIL NIL NIL NIL NIL NIL NIL NIL NIL NIl NIl NIl NIl NIl ` ) 26 81 Annual Report 2015-16 cyient.com conditions ofCorporateGovernance Auditors' Certificateregardingcomplianceof .ThecomplianceofconditionsCorporateGovernance 2. Wehaveexaminedthecomplianceofconditions 1. Hyderabad (formerly InfotechEnterprisesLimited) Cyient Limited The Membersof To CEO's Declaration their affirmationofcompliancewiththeCodeConduct the Company,forfinancialyearended31March2016. (LODR) Regulations,2015allthemembersofBoardand SeniorManagementPersonneloftheCompanyhavefurnished I, KrishnaBodanapu,ManagingDirector&CEOdoherebydeclare thatpursuanttotheprovisionsofScheduleVSEBI ae:18April 2016 : Date Hyderabad : Place Company. expression ofopiniononthefinancialstatements Corporate Governance.Itisneitheranauditnor ensuring compliancewiththeconditionsof implementation thereof,adoptedbytheCompanyfor examination waslimitedtotheproceduresand is theresponsibilityofManagement.Our from December01,2015toMarch31,2016. of ScheduleVtheListingRegulationsforperiod clauses (b)to(i)ofregulation46(2)andparaC,DE Regulations 17to27(excludingregulation23(4))and 2015 toMarch31,2016and Listing Regulations)fortheperiodfromSeptember02, Disclosure Requirements)Regulations,2015(the Regulation 23(4)oftheSEBI(ListingObligationsand from April01,2015toSeptember2015. Company withthestockexchange(s)forperiod Clause 49(VII)(E)oftheListingAgreements the periodfromApril01,2015toNovember30,2015. Agreements oftheCompanywithstockexchange(s)for Clause 49(excludingclause49(VII)(E))oftheListing stipulated in: Company"), fortheyearendedon31March2016,as Corporate GovernancebyCyientLimited("the ae 1Arl21 (MembershipNo.:201193) 21 April 2016 Date: Place :Secunderabad Westatethatsuchcomplianceisneitheranassurance 5. Inouropinion andtothebestofourinformation 4. WehaveexaminedtherelevantrecordsofCompany 3. has conductedtheaffairsofCompany. efficiency oreffectivenesswithwhichtheManagement as tothefutureviabilityofCompanynor ended March31,2016. as specifiedunderparagraph1above,duringtheyear Regulations fortherespectiveperiodsofapplicability 46(2) andparaC,DEofScheduleVtheListing regulation 17to27andclauses(b)(i)of as stipulatedinClause49oftheListingAgreementand complied withtheconditionsofCorporateGovernance Management, wecertifythattheCompanyhas representations madebytheDirectorsand and theexplanationsgiventous according toourexaminationoftherelevantrecords Accountants ofIndia. Governance issuedbytheInstituteofChartered Guidance NoteonCertificationofCorporate Standards inIndia,totheextentrelevant,andasper in accordancewiththeGenerallyAcceptedAuditing (Firm’s RegistrationNo.008072S) For Managing Director&CEO Deloitte Haskins&Sells Chartered Accountants Ganesh Balakrishnan For Krishna Bodanapu Annexure-J (DIN-05301037) Annexure-I Cyient Limited Partner 26 82 Annual Report 2015-16 cyient.com .Wehavereviewedfinancialstatementsandthecashflowstatement(standaloneconsolidated)foryear2015-16 A. This istocertifythat 16 April2016 Hyderabad. Cyient Limited The BoardofDirectors SEBI (LODR)Regulations,2015 CEO/CFO Certificationpursuantto .Wehaveindicatedtotheauditorsandauditcommittee D. Weacceptresponsibilityforestablishingandmaintaininginternalcontrols forfinancialreportingandthatwehaveevaluate C. There are,tothebestofourknowledgeandbelief,notransactionsenteredintobycompanyduringyearwhichare B. 2 thesestatementstogetherpresentatrueandfairviewofthecompany'saffairsareincompliancewithexisting (2) thesestatementsdonotcontainanymateriallyuntruestatementoromitmaterialfact (1) and thattothebestofourknowledgebelief: 3 thattherearenoinstancesofsignificantfraudwhichwehavebecomeawareandtheinvolvementtherein,ifany, (3) significantchangesinaccountingpoliciesduringtheyearandthatsamehavebeendisclosednotesto (2) significantchangesininternalcontroloverfinancialreportingduringtheyear; (1) are awareandthestepswehavetakenorproposetotakerectifythesedeficiencies. the auditorsandauditcommittee,deficienciesindesignoroperationofsuchinternalcontrols,ifany,whichwe the effectivenessofinternalcontrolsystemscompanypertainingtofinancialreportingandwehavedisclosed fraudulent, illegalorviolativeofthecompany'scodeconduct. accounting standards,applicablelawsandregulations. that mightbemisleading; reporting. the managementoranemployeehavingasignificantroleincompany'sinternalcontrolsystemoverfinancial financial statements;and Managing Director & CEO Chief Financial Officer Financial Chief Managing Director&CEO (Krishna Bodanapu) (Ajay Aggarwal) (Ajay (KrishnaBodanapu) (DIN-05301037) Sub: Certificate pursuanttoRegulation17(8)oftheSEBI(LODR)Regulations,2015 Annexure-K d 26 83 Annual Report 2015-16 cyient.com Report onCorporateGovernance include: and implements-voluntarilysomeofthemostrobust laudablegoodgovernancepracticesacrosstheboard.These The companyconstantlyraisesthebarinitsrelentlesspursuit ofcorporateandbusinessexcellence.Assuch,itadopts,adapt Best GovernancePractices The company'sphilosophyoncorporategovernanceiseffectivelycapturedbelow: Corporate governanceisintertwinedwiththebusinessofcompanyandprinciplesaredovetailedintoitsactivities. the following: Corporate governanceinthecompanyispredicateduponanethosoftransparency,accountabilityandfairness.Itaimsat stakeholders andoptimizethegrowthparadigm disclosure practicesisa global investors,statutorydisclosuresandreportingnormsarenotsufficientvoluntaryadherencetobestinternational emphasis isontransparencyofoperations.Thecompanyrecognizesthatattract,meetandsurpasstheexpectations Good corporategovernanceisanintrinsicpartofthecompany'sfiduciaryresponsibilityasaresponsiblecitizen.Assuch, beyond therealmsoflaw. It ensuresadherencetothemoralandethicalvalues,legalregulatoryframeworkadoptionofgoodpractices governance practices.Thecompanybelievesthatcorporateisanintegralmeansfortheexistenceofcompany. vendors, regulatorsandshareholdersatalltimes.Itisinthisbackgroundthatthecompanywholeheartedlyembracesgood the companytodelivervalueinallofitsdealingswithawidegroupstakeholdersencompassingassociates,customers, Corporate governanceisaboutinternalizingandmanifestingafirmcommitmenttotheadoptionofethicalpracticesacross Company's PhilosophyonCorporateGovernance Adherence toethicalstandards Compliance oflawinletterandspirit Application ofbestmanagementpractices Discharge ofsocialresponsibility Effective managementanddistributionofwealth Sustainable developmentofallstakeholders l l l Following allthesecretarialstandards issuedbytheInstituteofCompanySecretariesIndia sustainability initiativethathelps ineaseandpaceofdecisionmaking Paperless andinteractivecommunication amongstthedirectorsthroughacustomized webbasedportal-a and attheannualgeneralmeeting Leveraging technologytoincreasecompany-shareholderinterface byfacilitatinge-votingaspartofpostalballot Complying withallapplicablelawsandregulatoryrequirements Caring fortheenvironmentandlocalcommunity Taking careoftheinterestsassociates Maintaining excellentrelationswithcustomersandsuppliers Fulfilling long-termstrategicgoals sine quanon .These practicesenablethecompanytoestablishenduringrelationshipswithall its dealingswithstakeholders Ensuring fairness,integrity,respect,sincerityandtransparency inall and maintainingthesocio-economicbalance Enhancing valuetoallstakeholdersbyappropriatecomplianceoflaw Excellence infunctioningpermeateseverylevelofthecompany entire societyandcontributingtoitswelfare Company takesaholisticapproachtostakeholdersbyincludingthe wealth creationcapabilitiestopromotesustainability created forprovidingmaximumbenefittoallstakeholders;itenhances Company maximizeswealthandjudiciouslydeploystheso sustainable basis Company ensuresthegrowthofallthoseassociatedwithitona s 26 84 Annual Report 2015-16 cyient.com vi protectionofminorityshareholders fromabusiveactionsby,orintheinterestof,controlling shareholdersactingeither (vii) adequatemechanismtoaddress thegrievancesofshareholders. (vi) exerciseofownershiprightsbyallshareholders, includinginstitutionalinvestors. (v) opportunitytoaskquestionstheboardofdirectors,place itemsontheagendaofgeneralmeetings,andtopropose (iv) beinginformedofthe (iii) opportunitytoparticipate effectivelyandvoteingeneralshareholdermeetings. (ii) righttoparticipatein,andbesufficientlyinformed of,decisionsconcerningfundamentalcorporatechanges. (i) The companyprotectsandfacilitatestheexerciseofrights ofshareholders: The rightsofshareholders: avowed objectives. The companylivesbytheprinciplesofcorporategovernanceandimplementstheminamannersoastoachievefollowing Disclosure Requirements)Regulations,2015andprovisionsoferstwhileclause49listingagreementwithstockexchanges. The companycomplieswiththecorporategovernanceprovisionsasspecifiedinchapterIVofSEBI(ListingObligations & Peacock AwardforExcellenceinCorporateGovernancetheyear2012. Excellence inCorporateGovernancebytheInstituteofCompanySecretariesIndia2014.ThecompanywonGolden In recognitionofitsexemplarycorporategovernancepractices,thecompanywasawardedcovetedNationalAward for transparent operations.Theseinclude: in allitsoperationsanddealings.Towardsthis,thecompanyhasadoptedseveralpoliciesguidelinesforethical responsible manner.ThecompanylivesbytheethosofValuesFIRST-Fairness,Integrity,Respect,SincerityandTransparency The companyconstantlystrivestoconductitsbusinessandstrengthenrelationshipsinadignified,distinctive Good governancepolicies l l l l l l l l l l l l l l l l l l l directly orindirectly,andeffective meansofredress. resolutions, subjecttoreasonableandstatutorylimitations. Environment, healthandsafetypolicy Policy onboarddiversity Whistle blowerpolicy/vigilmechanism Data privacypolicyand Policy onmaterialsubsidiaries Policy onrelatedpartytransactions Prevention ofsexualharassmentpolicy Code ofPractices&Proceduresfordisclosureunpublishedpricesensitiveinformation Code ofConductforpreventioninsidertrading Anti-corruption andbriberypolicy Code ofbusinessconductforallassociates Code ofconductforboarddirectorsandseniormanagement Designation ofleadindependentdirectorandseparatemeetingsdirectors All boardcommitteesheadedbyindependentdirectors Internal Auditconductedbyindependentprofessionals Publication ofbusinessresponsibilityreportonvoluntarybasis Policies andproceduresfordisclosuredisseminationofinformationbythecompany Investor, vendorandassociatesatisfactionsurveysconductedtoelicitfeedbackfromallstakeholders in theelectronicmode Increased boardandcommitteeinteractionthroughoptimumuseoftechnology-conductmeetings rules, includingvotingproceduresthatgoverngeneralmeetings. 26 85 Annual Report 2015-16 cyient.com )monitortheeffectivenessofcompany'sgovernance practices,environmentalandsocial b) guide,reviewandapprovecorporatestrategyfinancial planning,includingmajorcapitalexpenditures,acquisitions a) generating sustainablevalueoverthelongterm.Infulfilling theirroleeffectively,boardofdirectorsthecompany: At thecompany,boardisaccountabletoshareholders and relevantstakeholdersisresponsibleforprotecting and ensuresitmeetsitsobligationstoshareholdersothers. necessary financialandhumanresourcesperformancereview. Theboardalsosetsthecompany'svaluesandstandards, The roleoftheboard,includesresponsibilitiesforentrepreneurial leadership,riskmanagement,strategy,securingthe benefit ofshareholders,whilehavingregardtoallrelevantstakeholders. The boardactsonaninformedbasisandinthebestinterests ofthecompanywithgoodfaith,careanddiligence,for Board ofDirectors Minutesofthemeetingaremaintainedexplicit (iii) Channelsfordisseminatinginformationprovideequal,timelyandcostefficientaccesstorelevantby (ii) Informationispreparedanddisclosedinaccordancewiththeprescribedstandardsofaccounting,financial andnon- (i) ownership, andgovernanceofthelistedentity,infollowingmanner: The companyensurestimelyandaccuratedisclosureonallmaterialmattersincludingthefinancialsituation,performance, Disclosure andtransparency: Thecompanyhasdevisedaneffectivewhistleblowermechanism enablingstakeholders,includingindividualemployees (iv) Stakeholdersshallhaveaccesstorelevant,sufficientandreliableinformationonatimelyregularbasisenable (iii) Stakeholdershavetheopportunitytoobtaineffectiveredressforviolationoftheirrights. (ii) Thecompanyrespectstherightsofstakeholdersthatareestablishedbylaworthroughmutualagreements. (i) The companyrecognisestherightsofitsstakeholdersandencouragesco-operation: Role ofstakeholdersincorporategovernance: Proceduresadoptedbythecompanydonotmakeitundulydifficultorexpensivetocastvotes. (vi) Processesandproceduresforgeneralshareholdermeetingsallowequitabletreatmentofallshareholders. (v) Thecompanyhasdevisedandimplementedaframeworktoavoidinsidertradingabusiveself-dealing. (iv) Exerciseofvotingrightsbyforeignshareholdersisfacilitated. (iii) (ii) Allshareholdersofthesameseriesaretreatedequally. (i) The companyensuresequitabletreatmentofallshareholders,includingminorityandforeignshareholders: Equitable treatment: the issuestobediscussedatmeeting. information concerningthedate,locationandagendaofgeneralmeetings,aswellfulltimelyregarding The companyprovidesadequateandtimelyinformationtoshareholders,includingbutnotlimitedsufficient Timely information: adhere toapplicablelaws; and divestments; users. financial disclosure. and theirrepresentativebodies,tofreelycommunicateconcernsaboutillegalorunethicalpractices. them toparticipateincorporategovernanceprocess. members ofboarddirectors,isfacilitated. Effective shareholderparticipationinkeycorporategovernancedecisions,suchasthenominationandelectionof ly recordingdissentingopinions,ifany. 26 86 Annual Report 2015-16 cyient.com )Thenamesandcategoriesofthedirectorsonboard,theirattendanceatboardmeetingsheldduringyear a) the CompaniesAct,2013andSEBI(LODR)Regulations,2015 directors. Allindependentdirectorshaveprovidedanaffirmationoftheirindependenceasrequiredundertheprovisions of all companiesinwhichhe/sheisadirector.Thenecessarydisclosuresregardingcommitteepositionshavebeenmadeby the None ofthedirectorsonboardisamembermorethan10committeesorChairman5committees,across governance arrangementstoensureitalwaysactsinawaythatwillgeneratesustainablevalueforthecompany. processes andsystemsinplaceassuchgeneratestrustsupportamongitsstakeholders.Itmaintainsrobust effectively toboarddiscussionsanddecisions.Thedemonstratesthatithasthenecessarygovernancepolicies, attendance. Boardmembersareawareofthebusiness,itsoperationsandseniormanagementwellenoughtocontribute The boardmeetsregularlytodischargeitsdutiesanddirectorsallocateadequatetimemeetingpreparation and stakeholders asappropriate. The boardalsomakesavailablecommunicationchannelsforperiodicdialogueongovernancematterswithshareholdersand conductanobjectiveboardevaluationonaregularbasis,consistentlyseekingtoenhanceeffectiveness. j) alignCEOandseniormanagementremunerationwiththelongerterminterestsofcompanyitsshareholders; i) appointthechiefexecutiveofficer(CEO)anddevelopsuccessionplans; h) ensureaformal,fairandtransparentprocessfornomination,electionevaluationofdirectors; g) overseetheimplementationofeffectiveriskmanagementandproactivelyreviewapproach f) overseetheintegrityofcompany'saccountingandreportingsystems,itscompliancewithinternationallyaccepted e) overseethemanagementofpotentialconflictsinterest,suchasthosewhichmayarisearoundrelatedparty d) embodyhighstandardsofbusinessethicsandoverseetheimplementationcodesconductthatengendera c) DIN 07102549 Mr. JohnPaterson DIN 00074842 Mr. SomMittal DIN 01461387 Mr. HarshManglik DIN 00193357 Mr. K.Ramachandran DIN 00170478 Mr. M.M.Murugappan MD & DIN 05301037 Mr. KrishnaBodanapu DIN 00058215 Promoter, Mr. B.V.R.MohanReddy Name oftheDirector 31 March2016aregivenhereinbelow: the numberofdirectorshipsandcommitteechairmanships/membershipsheldbytheminotherpubliccompaniesason and policies annuallyorwithanysignificantbusinesschange; standards, theeffectivenessofitssystemsinternalcontrol,andindependenceexternalauditprocess; transactions; corporate cultureofintegrity; aeoyHl tedd Attended Held Category o-xctv rsn 4 4 9 – Non-Executive Present Independent, Non-Executive 5 Independent, Non-Executive Independent, 5 Non-Executive Independent, Non-Executive Independent, Executive Chairman Executive CEO 5 5 rsn – – – – – – Present 1 3 – 5 Present 4 5 bet–2–– – – – 2 – – – Absent Absent 3 3 5 5 rsn – – 1 – Present 5 5 Board Meetings attended rsn 1 – 3 – Present AGM Last himnDrco himnMember Chairman Director Chairman No. ofdirectorships in otherpublic companies positions heldinother No. ofcommittee public companies (Contd.) 26 87 Annual Report 2015-16 cyient.com Name oftheDirector )Meetingsheldduring thefinancialyear2015-16: b) The companydoesnothaveany'materialnon-listedsubsidiarycompany'asdefinedunderSEBIRegulations Stakeholder EngagementCommittees. companies incorporatedoutsideIndia.Chairmanship/MembershipofcommitteesincludeonlyAuditandShareholders/ limited companies,companiesregisteredundersection8ofCompaniesAct,2013/section251956and of In theabovetablenumberofdirectorshipsdoesnotincludecompanyalternatedirectorships,private * Resignedasdirectorw.e.f6August2015 DIN 00219212 Non - Independent, Mr. ShankarNarayanan* Non-Independent, Mr. ThomasPrete) (Alternate Directorto DIN 06719021 JayantSabnis Mr. Independent, - Non DIN 06634086 Independent, - Non Mr. ThomasWPrete DIN 03015749 Mr. AlainDeTaeye DIN 06997266 Mrs. AndreaBierce to promoteinconductingitsbusiness.Inparticularit: board developsandpromotesitscollectivevisionofthecompany'spurpose,culture,valuesbehaviouritwishes company withinaframeworkofprudentandeffectivecontrolswhichenablesriskstobeassessedmanaged.An represent andprotecttheinterestsofallstakeholders.Theboard'sroleistoprovideentrepreneurialleadership the An effectiveboardisakeyfeatureofthegovernancejourneytobuildingsuccessfulcompany.Theduty isto Board Effectiveness l (Meetingheldon17March2016wasbyAudioVisualmeans) '16 March to '16 January October '15toDecember July '15toSeptember April '15toJune Quarter l l l l l regulatory regimes; creates therightframeworkfor helpingdirectorsmeettheirstatutorydutiesunderthe relevantstatutoryand makes wellinformedandhighqualitydecisionsbasedonaclear lineofsightintothebusiness; destruction; creates aperformanceculturethatdrivesvaluecreationwithout exposingthecompanytoexcessiveriskofvalue the cultureandvaluesithasdefinedforcompany; demonstrates ethicalleadership,displaying-andpromoting throughoutthecompany-behaviourconsistentwith lays downstrategyandvision; provides directionformanagement; aeoyHl tedd Attended Held Category o-xctv betN AN NA – NA – – NA – – NA – – Absent – – – – 2 – – Absent 2 – – Absent 1 – Present 1 Non-Executive 3 Present 3 5 Non-Executive 5 5 Non-Executive 5 Non-Executive Non-Executive Independent, Board Meetings No. of Meetings 2 1 1 1 attended AGM Last himnDrco himnMember Chairman Director Chairman No. ofdirectorships in otherpublic companies Jan 14andMarch17,2016 2015 15, October Dates onwhichheld July 16, 2015 April 23, 2015 23, April positions heldinother No. ofcommittee public companies 26 88 Annual Report 2015-16 cyient.com for theprocess.Theevaluationprocesscoversfollowing aspects: and evaluationprocessduring2015-16.TheLeadership,Nomination&RemunerationCommitteehasoverallstewardship level ofparticipationandengagementalsoimproves.Inthisbackground,theboardundertookaformalassessment By focusingontheboardasateamanditsoverallperformance,companyensuresthatcommunication to greaterboardaccountability,evaluationofmembershelpsin: provide anongoingmeansfordirectorstoassesstheirindividualandcollectiveperformanceeffectiveness.Inaddition effective waytorespondthedemandforgreaterboardaccountabilityandeffectiveness.Forcompany,evaluations The companybelievesthatformalevaluationoftheboardandindividualdirectors,onanannualbasis,isapotentially Board EvaluationandAssessment website ofthecompany. Details ofthefamiliarizationprogrammeforNon-ExecutiveDirectorsandtheirletterappointmentarepublishedon the on changesinpoliciesandprogrammes,lawsthegeneralbusinessenvironment. that investmentinboarddevelopmentstrengthenstheaswellindividualdirectors.Directorsareregularlyupdated The companyseesdirectorinductionasafirststepoftheboard'scontinuingimprovement.Itiscompany'sfirmbelief responsibilities. The companyensuresthatdirectorsareinductedthroughafamiliarizationprocesscomprising,interalia,theirrolesand details ofsubsidiariesandjointventures,boardproceduresprocessesmajorrisksriskmanagementstrategies. Non-executive directorswhoareinductedontheboardgivenanorientationaboutcompany,itsoperations,services, Training ofboardmembers up to5years.Aspercompanypolicy,theretirementagefordirectorsis70 appointment/re-appointment ofexecutiveandnon-executivedirectors.Independentdirectorsareappointedforaterm accordance withtheprovisionsofAct.Theboardonrecommendationsnominationscommitteeconsiders directors areappointedbytheshareholdersforaperiodoffiveyearsattime,but,theyeligiblere-appointmentin As pertheprovisionsofCompaniesAct,2013(Act)onethirdboardmembersretireeveryyear.Theexecutive Term ofBoardmembership checks andbalanceswhicheffectivegovernancedemands. chairman, whoseroleincorporategovernanceisfundamentalanditscollectiveabilitytoprovideboththeleadership The board'seffectivenessismeasuredbythewayinwhichmembersofboardasawholeworktogetherunder the ExecutiveChairman.Thesame isdiscussedandacteduponaccordinglyattheboard. management andqualityofdiscussion anddeliberationsattheboard.TheLeadIndependent Directorprovidesfeedbackto of theboardtoeffectivenessandgovernance.Italsoseeks feedbackonboardandcommitteecharters,strategy,risk The evaluationprocesselicitsresponsesfromthedirectors inajudiciousmanner-rangingfromcompositionandinduction l l l l l l l l l l l Peer andself-evaluationofDirectors Improved Chairman-ManagingDirectorBoardrelations Greater claritywithregardtomembers'rolesandresponsibilities Better collaborationandcommunication More effectiveboardprocesses thinks carefullyaboutitsgovernancearrangementsandembracesevaluationoftheireffectiveness. is accountable,particularlytothosethatprovidethecompany'scapital;and Feedback onmanagementsupporttotheBoard Feedback fromtheNon-ExecutiveDirectorstoChairman, and Evaluation oftheperformanceandeffectivenessBoardCommittees Evaluation oftheperformanceandeffectivenessboard 26 89 Annual Report 2015-16 cyient.com effectiveness. and recommendstheappointmentofnewdirectors.ThecommitteealsooverseesconductannualreviewBoard The Leadership,Nomination&RemunerationCommitteereviewsandassessesboardcompositiononbehalfofthe Board membershipcriteria These include: of theboard.Thecompanyfollowsbestpracticesinconveningandconductingmeetingsboarditscommittees. of theboardenablediscussionsonmattersplacedbeforethemandfacilitatedecisionmakingbasedcollectivejudgment Decisions relatingtothepolicyandoperationsofcompanyarearrivedatmeetingsboardheldperiodically.Meetings agenda, conductingthemeetings,decisionmakingatadequacyofminutesandworkingboardcommittees. and controlofthecompany.Boardsystemsproceduresbroadlycompriseconveningmeetings,contents the The processesfacilitateandreinforcetheroles,responsibilitiesauthoritiesofboardingovernance,management follows. Ithasinplacerobustpracticesandprocessesthatcontributetotheeffectiveefficientperformanceofboard . The companybelievesthattheeffectivenessofboardisreinforcedbyitsstructuresandprocessesprocedures it Board processes,proceduresandpractices internal controlsystems. significant risksitiswillingtotakeinachievingitsstrategicobjectives.Theboardalsomaintainssoundriskmanagementa required tobepresentedbystatutoryrequirements.Theboardisresponsiblefordeterminingthenatureandextentof responsibility extendstointerimandotherprice-sensitivepublicreportsregulatorsaswellinformation The boardpresentsafair,balancedandunderstandableassessmentofthecompany'spositionprospects.This Board accountability l l sufficiently inadvanceofthemeetings. of timeallocatedforeachitem. Theagendaismadeavailabletothedirectorsalong with supportingdocuments such thatroutineandadministrative mattersdonotconsumetoomuchboardtime.Theagenda alsoshowstheamount It strikesafinebalancebetweenthereviewsofpastperformance andforwardlookingissues.Theagendaisstructured Board agenda meetings. exceeding fourmonths.Meetingsofthecommitteesarealso plannedandscheduledtobeheldalongwiththeboard A minimumoffourboardmeetingsisheldeachyearwith thetimegapbetweenanytwosuccessivemeetingsnot Frequency ofmeetings are alsoheldattheotherdevelopmentcentresofcompany. The meetingsoftheboarddirectorsareusuallyheldat registeredofficeinHyderabad.Attimes,somemeetings Meeting location well aswithinthecompanyitself.Further,itensuresthatboarddecisionscanbemeasuredagainstcharter. committees andtheseniormanagement.Thishelpsinbettermanagement,governancecontrolwithinboardas A boardcharterispreparedsettingouttherespectiveroles,responsibilitiesandauthoritiesofboard,various Board Charter time managementofandfortheboardbesidesaidingtheirefficiency. tasks arescheduledinadvancesothateveryoneconcernedcanplantheirworksystematically.Thisalsoenablesbetter The annualboardcalendarisdrawnupayearinadvancetogetherwithwellthoughtoutactionplannerfortheyear.All Annual Calendar against objectivecriteriaandwithdueregardforthebenefitsofdiversityonboard. In identifyingsuitablecandidatesforappointmenttotheboard,committeeconsidersonmerit to enableitdischargeitsdutiesandresponsibilitieseffectively. differences intheskills,regionalandindustryexperience,background,race,genderotherdistinctions,order In reviewingboardcomposition,thecommitteeconsidersbenefitsofallaspectsdiversityincluding, nd 26 90 Annual Report 2015-16 cyient.com .Showcause,demand,prosecutionnoticesandpenalty whicharemateriallyimportant. 8. Theinformationonrecruitment andremunerationofseniorofficersjustbelowtheboard level,including 7. Generalnoticesofinterestreceivedfromdirectors. 6. Minutesofthemeetingssubsidiarycompanies. 5. Minutesofmeetingsauditcommitteeandothercommitteestheboard. 4. Quarterlyresultsforthecompanyanditsoperatingdivisionsorbusinesssegments. 3. Capitalbudgetsandanyupdates. 2. Annualoperatingplansand budgetsandanyupdates. 1. The followinginformation, ensuring goodinformationflowswithintheboardaswellbetweenseniormanagementandnon-executivedirectors. discharge itsduties.Undertheadviceanddirectionofchairman,companysecretary'sresponsibilityincludes The boardshouldbesuppliedinatimelymannerwithinformationformandofqualityappropriatetoenableit Availability ofinformationtotheboard board- committeeinteractions.Itusestheworld'smostwidelyuseddigitalboardsolution. place systemsthatprovidemoreefficientinformationflowtotheboardandleveragestechnologysolutionsenhance The companyleveragestechnologyandsynergizesitwiththegreeninitiativestooptimum.hasputin E-Initiatives and compriseafaircorrectsummaryoftheproceedingsconductedthereat. summarize thedeliberationsandrationalefortakingdecision.Theminutesaredraftedinunambiguousterms being abarerecordofdecisionsandfullaccountthediscussions.Theymentionbriefbackgroundproposal, The minutesofthemeetingsboardandcommitteesaredraftedsuchthattheystrikerightbalancebetween Board Minutes On acasetobasis,externalexpertsandconsultantsarealsoinvitedmakepresentationstheboardasrequired. meetings toprovidethebusinessperspective. Besides, headsofthebusinessunits,geographyandsubsidiaryheads,keyexecutivesalsoparticipateinboard On matterswhereadirectorisconcernedorinterested,he/shedoesnotparticipate. occasions, whereadirectorisnotphysicallypresent,thecompanyarrangesforteleconorWebextoenableparticipation. All thedirectorsparticipate,discussanddeliberate,threadbareproposalsmattersputuptoit.Onsome Directors’ participation items, inparticular,strategicissues. board andensuringitseffectiveness.Thechairmanensuresthatadequatetimeisavailablefordiscussionofallagenda The chairman'sroleinsecuringgoodcorporategovernanceiscrucial.chairmanresponsibleforleadershipofthe constructive relationsamongthedirectors.Constructivediscussionsarefacilitatedleadingtoeffectivedecisionmaking. The boardfollowsacultureofopennessanddebatebyfacilitatingeffectivecontributionalldirectorsensuring Decision makingprocess crisp andsuccinctfacilitatedecisionmaking. on howtoeffectivelyaddresstheissueandprovidemanagement'sviewwhatactiontake.Thebriefingpapersare an executivesummarywithfurtherdetailsannexedthereto.Thepaperspresenttheissuefordiscussion,offersolutions information ispresentedinanorderlymanner.Theboardpapersassociatedwithaparticularagendaitemaresetoutas grasp andfocusonthemoresignificantissuesinpreparationforboardmeetings.Relevantcomplete Board materials,includingthenotesonagendaaresummarizedandformattedinsuchawaythatdirectorscanreadily Briefing papers appointment orremovalofChief FinancialOfficerandtheCompanySecretary,ifany. interalia,isprovidedtothedirectorsofcompany: 26 91 Annual Report 2015-16 cyient.com c assessedthequality,quantityandtimelinessofflow informationbetweenthemanagementandboard of (c) reviewed theperformanceofexecutivechairman thecompany,takingintoaccountviewsofnon- (b) reviewedtheperformance ofnon-independentdirectorsandtheboardasawhole; (a) met once.Atthesaidmeeting,independentdirectors: exchanging valuableviewsontheissuestoberaisedatboard meetings.Duringtheyear,independentdirectors business relatedissuesandnewinitiatives.Thesemeetings affordanopportunitytotheindependentdirectorsfor The companyfacilitates/enablestheconductofseparatemeetings oftheindependentdirectorstoupdatethemonall Meetings ofIndependentDirectors returns, minutes,transmissionofshares,passingresolutions bycirculation,affixingofcommonsealandboard'sreport. of goodgovernance,voluntarilyadoptedandcompliedwith theICSIsecretarialstandardsondividend,registersand voluntarily adoptedandcompliedwiththestandardsforlastseveralyears.Further,companyhasalsoasameasure Although thesecretarialstandardsonboardandgeneralmeetingsaremandatoryfrom1July2015,companyhas governance, hasissuedsecretarialstandardsonvariousimportantfacetsofcorporatefunctioningandmanagement. The InstituteofCompanySecretariesIndia(ICSI),astatutorybodythatisintheforefrontpromotingcorporate Secretarial Standards systematically putuptotheboardatfollowingmeetingforitsinformation. various levelsinthecompany.Anactiontakenreportondecisionsofboardatitspreviousmeetingis The companyhasputinplaceMISprocessesforthepromptdisseminationofdecisionstakenbyboardto Action TakenReport implementation ofthesame. good faith.Ombudspersonshavebeennominatedforthevariousgeographiesandboardoversees policy providesnecessarysafeguardsforprotectionofassociatesfromreprisalsorvictimization,whistleblowingin of unethicalbehaviour,actualorsuspected,fraudviolationtheCompany'scodeconductpolicy.Further, Ombudsperson/Chairman oftheAuditCommitteeCompanyto,interalia,reporttomanagementinstances The companyhasformulatedaWhistleBlowerPolicywithviewtoprovidemechanismforassociatesapproachthe Whistle blowerpolicy/VigilMechanism Legalcompliancereportsanddetailsofpaymentstatutorydues. 18. Non-complianceofany regulatory,statutoryorlistingrequirementsandshareholdersservicesuchasnon-payment 17. Quarterlydetailsofforeignexchangeexposuresandthestepstakenbymanagement tolimittherisksofadverse 16. Saleofmaterialnature,investments,subsidiaries,assets,whichisnotinnormalcoursebusiness. 15. Significantlabourproblemsandtheirproposedsolutions.AnysignificantdevelopmentinHumanResources/ 14. Transactionsthatinvolvesubstantialpaymenttowardsgoodwill,brandequity,or intellectual property. 13. Detailsofanyjointventureorcollaborationagreement. 12. Anyissue,whichinvolvespossiblepublicorproductliabilityclaimsofsubstantialnature,includinganyjudgment 11. Anymaterialdefaultinfinancialobligationstoandbythecompany,orsubstantial non-payment forservicessold 10. Fatalorseriousaccidents,dangerousoccurrences,anymaterialeffluentpollutionproblems. 9. directors thatisnecessaryfor theboardtoeffectivelyandreasonablyperformitsduties. executive directors; of dividend,delayinsharetransfer. exchange ratemovement,ifmaterial. any. Industrial Relationsfrontlikesigningofwageagreement,implementationVoluntaryRetirementScheme,etc.,if enterprise thatcanhavenegativeimplicationsonthecompany. order which,mayhavepassedstricturesontheconductofcompanyortakenanadverseviewregardinganother by thecompany. 26 92 Annual Report 2015-16 cyient.com director effectiveness.Theroleincludes: The chairmanrunstheboardandsetsagenda-heispivotalincreatingconditionsforoverallindividual expectations intermsofcultureandvalues,aswellthestyletoneboarddiscussions. lives andupholdsthehigheststandardsofintegrityprobityinsideoutsideboardroom,throughsettingclear The chairmanisresponsibleforleadershipoftheboardandensuringitseffectivenessonallaspectsrole. Role oftheChairman remains informedandrelevant. directors seekconstantlyto develop andrefreshtheirknowledgeskillstoensurethat theircontributiontotheboard being well-informedaboutthecompany,andhavingastrong commandofissuesrelevanttothebusiness.Non-executive Non-executive directorsmakesufficienttimeavailabletodischarge theirresponsibilitieseffectively.Inevitably,thisinvolv Non-executive directorsconstructivelychallengeandhelp develop proposalsonstrategy. Role ofNonExecutiveDirectors proposals, especiallywhenissuesofjudgementareconcerned. executive directorsisanessentialaspectofgoodgovernance andencouragethenon-executivecolleaguestoprobe exercising judgement,particularlyonmattersofstrategy. TheCEOappreciatesthatconstructivechallengefromnon- He hasthemostintimateknowledgeofcompanyand its capabilities.Thisisevidencedwhenmakingproposalsand of discussionintheboardroom. The CEOencouragesdirectorstoexpresstheirviewsfranklyandchallengeconstructivelyinorderimprovethestandard the appropriatestandardsofgovernancepermeatedowntoalllevelsorganisation. the businessexpectationsofboardinrelationtocompany'sculture,valuesandbehaviours,forensuring that The CEO,withthesupportofexecutiveteam,hasprimaryresponsibilityforcommunicatingtopeopleworkingwithin set outinwritingandagreedwiththeboard.Particularattentionispaidtoareasofpotentialoverlap. chair isthekeydynamicthatunderpinseffectivenessofboard.TheresponsibilitieschairmanandCEO are The CEOisvestedwithoperationalresponsibilityfordeliveringthecompany'sstrategy.CEO'srelationship the Role ofManagingDirector&CEO l l l l l l l l l l made awareoftheviewsmajorinvestors. ensuring effectivecommunicationwithshareholdersandotherstakeholdersthatalldirectorsare taking theleadonissuesofdirectordevelopmentandactingresultsboardevaluation; having regardtothebenefitsofdiversity; ensuring effectiveprocessesareestablishedrelatingtosuccessionplanningandthecompositionofboard, consulting theseniorindependentdirectoronboardmattersconsistentwithregulations; respecting executiveresponsibility; developing, inparticular,aproductiveworkingrelationshipwiththeCEO,providingsupportandadvicewhile and oversightofsignificantrisks; boardroom -betweenthenon-executivedirectorsandexecutiveteam,inparticularwithregardtoidentification building effectiverelationshipsfoundedonmutualrespectandopencommunication-bothinsideoutsidethe skills, experience,knowledgeand,whereappropriate,independence; encouraging theactiveengagementofallboardmembersinandcommitteemeetings,drawingfullyontheir are properlystructuredwithappropriatetermsofreference; making certainthataneffectivedecision-makingprocessisinplacetheboard,andboard'scommittees and extentofthesignificantrisksboardiswillingtoembraceinimplementationitsstrategy; ensuring thatissuesrelevanttothisobjectivearereservedforboardconsideration,includingdeterminingthenature and valuecreation; setting aboardagendawhichisprimarilyfocusedonbusiness,strategy,accountability,competitiveperformance es 26 93 Annual Report 2015-16 cyient.com The LNRcommitteeisentrustedwiththetaskofsuccession planningfortheboard.Thiscommitteeisresponsiblefor: any businesschallengesthatmaybeencountered. appoint newdirectorsquicklyinastructuredmanner,andthe boardcancontinueitsbusinesswithoutdisruption,meeting identifying andsourcingpotentialboardmemberswhocan fulfillkeyrequirementsisessential.Thissuccessionplanhelps challenges ofgrowtheffectivelyandsuccessfully.Foraconscious board,asuccessionplanthatprovidesguidanceon The companyusessuccessionmanagementandplanningto ensurethatitidentifiesanddevelopsfutureleaderstofacethe Succession planningattheboard: Effective andgooddecision-makingattheboardisfacilitatedby: Decision makingattheboard Mr. M.M.Murugappanistheleadindependentdirector.Hisroleincludesfollowing: Role ofLeadIndependentdirector performance. director. Suchopinionsandjudgmentsarevaluableinprovidingdifferentperspectivesofthecompany'sprogress stakeholders -eitherdirectlyorasconveyedtothembythechair,CEOor,inspecialcircumstances,leadindependent At Cyient,non-executivedirectorssupplementtheirknowledgeofthebusinesswithviewsshareholdersandother the issuespriorto,andinformeddebatechallengeat,boardmeetings. accurate, clearandcomprehensiveinformationbeingprovidedsufficientlyinadvancetoenablethoroughconsiderationof Because oftheimportanceprocessdecision-makingtoworkboard,non-executivedirectorsinsiston in theboardroomandbeyond. probity, andsupportingthechairexecutivedirectorsinembeddingofappropriateculture,valuesbehaviours Non-executive directorsmaintainconfidenceinthegovernanceofcompanybyupholdinghighstandardsintegrityand business whilemonitoringtheirconduct. in ordertopromotemutualrespect.This,turn,allowsthemsupportexecutivedirectorstheirmanagementofthe non-executive directors-supportedbythechairandCEObuildrecognitionamongexecutiveoftheircontribution As partoftheprocesslearningmoreaboutbusinessandbecomingeffectiveboardroomcontributorsincompany, undergoing aperiodofparticularlyincreasedactivity,suchasinthecaseanacquisitionortakeover. to spendonthecompany'sbusiness,andindicatespossibilityofadditionaltimecommitmentwhencompanyis The letterofappointmentissuedtothenon-executivedirectorsstatestimedirectorwillberequired l l l l l l l l l l l l l Ensuring eachnewBoardmember receivesinductionandtraining. Recommending candidatesto theboardand Interviewing potentialcandidates Developing adatabaseofeligibleboardcandidatesoncontinuous basis providing clarityforexecutivesontheactionsrequired. achieving timelyclosureondecisionstaken;and allowing timefordebateandchallenge,especiallycomplex,contentiousorbusiness-criticalissues; ensuring thatdirectorsareaffordedadequatetimetoprepareformeetings; carrying outtheevaluationofchairmaninconjunctionwithothernon-executivedirectors ensuring thatthechairmanispayingsufficientattentiontosuccessionplanning; conveyed tothefullboard ensuring thatthechairmanispassingonviewsofshareholders,andespeciallyanyconcernsarebeing ensuring theviewsofotherdirectorsareconveyedtochairman; providing supportforthechairmanindeliveryofhisobjectives; 26 94 Annual Report 2015-16 cyient.com Details ofremunerationtotheExecutiveDirectors: component) toExecutiveChairmanandManagingDirector& CEOasapprovedbytheshareholdersofcompany. The companypaysremunerationbywayofsalary,perquisites andallowances(fixedcomponent)commission(variable @ Details ofremunerationtotheNon-ExecutiveDirectors whether asthatofchairmanormember,areconsidered.TheletterappointmenttotheNEDscomprisesotherdetails committees thereof,theircontributionsatthemeetingsorotherwise,andonpositioninvariousofboard, of remunerationtoNEDs.WhiledeterminingtheNEDs,theirattendanceatmeetingsboard or Act, 2013.Consistentwithgloballyacceptedgovernancepractices,thecompanyhasusheredinflexibilityrespectofpayment board andthecompanyhasundergonesignificantchangesoveraperiodoftime.ThisisalsoaccentuatedbyCompanies Withchangesinthecorporategovernancenorms,roleofNEDsanddegreequalitytheirengagementwith the Criteria formakingpaymenttoNon-ExecutiveDirectors to directorsindividually. commission ispaidonthebasisoftheirattendanceandcontributionatBoard.Theboardapproves company, aspertheresolutionpassedbyshareholdersofcompanythroughpostalballotonOctober30,2014.The The non-executivedirectors(NEDs)areeligibleforcommissionnotexceedinganaggregateof1%thenetprofits shareholders attheirmeetings. statements. Theannualcompensationoftheexecutivedirectorsisapprovedbyboardwithinoveralllimitsset company successfully.Allboardlevelcompensationisapprovedbytheshareholdersanddisclosedseparatelyinfinancial Levels ofremunerationaredeterminedsuchthattheyattract,retainandmotivatedirectorsthequalityrequiredtorun Remuneration PolicyofDirectors the functionsprescribedunderCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014. responsibleto theBoardforensuringthatproceduresarecompliedwith.Inaddition,CompanySecretarydischarges assisting withprofessionaldevelopment.Alldirectorshaveaccesstotheadviceandservicesofcompanysecretarywhois the boardanditscommittees,betweenseniormanagementnon-executivedirectors,aswellfacilitatinginduction Under thedirectionofchairman,companysecretary'sresponsibilitiesincludeensuringgoodinformationflowswithin presentation ofboardinformationwhich-bybeingaccurate,clearandcomprehensiveassistshigh-qualitydecisionmaking. The companysecretaryhasakeyroletoplayinfacilitatingtheeffectivefunctioningofboardthroughtimely Role ofcompanysecretaryinoverallgovernanceprocess *waived theamount.Paymentofsittingfeewasdiscontinued fromtheFY2015-16onwards Mr. AlainDeTaeye* Mr. ThomasWPrete* Mr. ShankarNarayanan* Mr. AndreaBierce Mr. JohnPaterson Mr. SomMittal Mr. HarshManglik Mr. K.Ramachandran Mr. M.M.Murugappan Name oftheDirector r rsn oaau 1,8,0 4,8,8 17800 2100065,061,685 2,160,000 51,663,911 2,700,000 1,728,000 46,289,685 separate actuarialvaluation/premium paidarenotavailablefortheexecutivechairmanand managingdirector&CEO. 2,160,000 The aboveamountsdonotinclude provisionsforencashableleave,gratuityandpremium paid forGroupHealthInsuranceas 14,884,000 28,761,178 Bodanapu Krishna Mr. 18,042,733 Reddy Mohan B.V.R. Mr. Name oftheDirector Excluding ServiceTax aayCmiso FSprnuto Total Superannuation PF Commission Salary @ : Commission (Amount 2,588,166 2,588,166 1,200,000 1,200,000 1,200,000 1,200,000 ` 0 0 0 ) (Amount ` ) 26 95 Annual Report 2015-16 cyient.com The specificcharterofthecommitteeis: 177 oftheCompaniesAct,2013andSEBI(LODR)Regulations. The committeehasbeenconstitutedinaccordancewithandderivesthetermsofreferencefromprovisionssection committee isanefficientmechanismforfocusingonissuesrelevanttotheintegrityofcompany'sfinancialreporting. reporting. Thecommitteefunctionsasaliaisonbetweentheboardofdirectorsandauditors-internalexternal. The confidence intheintegrityofprocesses,proceduresandpracticesrelatingtointernalcontrolscorporatefinancial The committeeisavitalcoginthewheelofgoodcorporategovernance.Ithasbeenestablishedwithaimenhancing Audit &RiskManagementCommittee: During theyear2015-16,companyhad, mechanism totheboard. describes thepurposeofcommittee,itsmembershipcomposition,authority,majorareasresponsibilityandreporting terms ofreference/charterforeachcommitteesocreated.Thereferencecomprise,aclearstatementwhich The boardidentifiestherequirementsofcommitteetosupportitsworkandresponsibilities.Assuch,itlaysdown the board'stimeandallowin-depthscrutinyfocusedattention.Thecompanyisofviewthatcommittees: work fordecisionmakingandreportatthesubsequentboardmeetings.Further,committeesenablebettermanagementof specialized andtechnicallyorienteddiscussionsarerequired.Thecompanybelievesthatcommitteespreparetheground statutory aswellnon-statutory,ameansofimprovingboardeffectivenessandefficiencywheremorefocused, Board committeesarepillarsofcorporategovernance.Inthisbackground,theboardhasconstitutedvariouscommittees, Board committees any shares,convertibleinstrumentsorstockoptionsinthecompanyason31March2016. Except Mr.M.M.Murugappanwhoholds30,000equityshares(0.02%)inthecompany,noothernon-executivedirector Bodanapu, ManagingDirector&CEO,holds18,50,760equityshares(1.65%). Mr. B.V.R.MohanReddy,ExecutiveChairmanholds1,46,14,888equityshares(12.99%)intheCompanyandKrishna Shareholding oftheDirectorsinCompanyason31March2016 Reviewthe statutoryauditscopeandplanforvariouslocationsbeforecommencement oftheaudit;provideinputs o Examineinternalauditreporttofocus onsignificantfindings,followupactionsinplace, internalinvestigations, o Revieweffectivenessofinternalauditfunction,reportingstructure,scopecoverageandfrequency audit o Evaluatetheindependenceofauditorsandtheirareasun-resolvedconcernsifany. o Recommendappointmentandremuneration;evaluateperformanceoftheauditorseffectiveness oftheaudit o Audit: l l l l l l l l l and areasoffocusifany. highlight thesame. conclusions arrived,failures or irregularitiesintheinternalcontrolsframeworkand reportssubmittedto process. Customer EngagementCommittee Strategy Committee Corporate SocialResponsibilityCommittee Stakeholder EngagementCommittee Leadership, Nomination&RemunerationCommittee Audit &RiskManagementCommittee Provide anobjectiveandindependentinsightintoboard'sfunctioningjudgment Manage issueswithgreaterefficiencybyhavingexpertsfocusingonspecificmatters Review informationingreaterdetailbeforeitisplacedtheboard inter alia , thefollowingboardcommittees 26 96 Annual Report 2015-16 cyient.com The ChairmanoftheAuditCommitteewaspresentat24 The companysecretaryactsasofthecommittee. IFCS. In addition,thecommitteemeton31March2016byaudio-visualmeanstoevaluateitsreadinessforrolloutofIndAS and Mr. SomMittal Mr. K.Ramachandran Murugappan Mr. M.M. Name oftheMember The compositionanddetailsofthemeetingsCommitteeason31March2016arefollows: The committeealsoreviewscorporategovernance,processesandprocedures. systems. Itreviewsthequarterly,half-yearlyandannualfinancialresultsbeforetheirsubmissionadoptionbyboard. Further, thecommitteereviewsadequacyofinternalcontrolsoverfinancialreportingandcompanylevelcontrol l l l The roleofthecommittee, Leadership, Nomination&Remuneration(LNR)Committee: Representatives ofthestatutoryandinternalauditorsattend themeetingsofauditcommittee. basis, theheadsofbusinessunits,HRandotherfunctions arealsoinvitedandattendthemeetingsofcommittee. The ExecutiveChairman,ManagingDirector&CEOandCFO arepermanentinviteestothecommittee.Onacase Devising andadministeringapolicy onBoarddiversity Formulation ofcriteriaforevaluation ofIndependentDirectorsandtheBoard to theBoardapolicy,relating to theremunerationofdirectors,keymanagerialpersonnel andotheremployees Formulate thecriteriafordeterminingqualifications,positive attributesandindependenceofadirectorrecommend ToreviewthefunctioningofWhistle Blowermechanism o Tolookintothereasonsforsubstantialdefaultsinpaymenttodepositors,debentureholders,shareholders o Valuationofundertakingsorassetsthe company,whereveritisnecessary; o Scrutinyofinter-corporateloansandinvestments; o Approvaloranysubsequentmodification oftransactionsthecompanywithrelatedparties; o Reviewingwiththemanagement,annualandquarterlyfinancialstatementsauditor'sreportthereonbefore o Oversightofthecompany'sfinancialreportingprocessanddisclosureitsinformationtoensure o Financial Review: Overseeingtheintegrityofcompany'sgovernanceframeworkoperationalcontrolswithrespecttolegaland o Overseeingtheriskmanagement,complianceandcontrolactivitiesofcompany,includingbutnotlimitedto o Assessingandprovidingoversighttomanagementwithregardstheidentificationevaluation,ofmajor o Risk Management: Summarizethefindingsofstatutoryauditreport;understandprocessgaps,mitigationplansimplementedto o (in caseofnon-paymentdeclareddividends)andcreditors; submission totheboardforapproval that thefinancialstatementiscorrect,sufficientandcredible; regulatory compliance the developmentandexecutionbymanagementofstrategiestomitigaterisks; control processeswithrespecttosuchrisks; strategic, operational,regulatory,informationandexternalrisksinherentinthebusinessofCompany address thesame. inter alia Member Chairman Position Member , includesthefollowing: Meetings held during the year Meetings attended Meetings Meetings heldduringtheyear th AnnualGeneralMeeting(AGM). 4 4 4 3 4 4 26 97 Annual Report 2015-16 cyient.com The compositionofthisCommitteeisasfollows: of balancesheetandnon-receiptdeclareddividend.The committee alsooverseestheworkofR&Tagents. redressal ofshareholderandinvestorcomplaintssuchastransfer ofshares,issueduplicatesharecertificates,non-receipt of theCompaniesAct,2013andSEBI(LODR)Regulations,2015,thiscommitteeisformedtospecificallylookinto the to assisttheboardinhandlingshareholders'grievancesandtheirimmediateredressal.Asperitscharter,derivedsection 178 committee hasbeenconstitutedtohandleinvestorcorrespondence/grievances.Theprimaryfunctionofthe is Shareholders aretheultimateownersofcompanyandboardisaccountabletothem.Theshareholdersgrievance Stakeholder EngagementCommittee: experience, independenceandknowledgewhichtheBoardasawholerequirestobeeffective. andwhen possiblearebalancedappropriately.AllBoardappointmentsmadeonmerit,inthecontextoftheskills, distinctionsbetween Directors.ThesedifferencesareconsideredindeterminingtheoptimumcompositionofBoard and makegooduseofdifferencesintheskills,regionalindustryexperience,background,race,genderother an essentialelementinmaintainingacompetitiveadvantage.ThecompanybelievesthattrulydiverseBoardwillinclude The companyrecognisesandembracesthebenefitsofhavingadiverseBoard,seesincreasingdiversityatBoardlevelas Board Diversity considered bytheboardandappointmentismadeasawhole. the companytodischargetheirresponsibilitieseffectively.Therecommendationsofnominationscommittee are strategy, performance,resourcesandstandardsofconduct.Thedirectorsarealsoexpectedtoallocatesufficienttime to The specificcriteriaconsidered,include,interalia,theirabilitytobringanindependentjudgmentbearontheissues of that thecalibreofindependentdirectorsissuchtheyenhanceandmaintainstandardscorporategovernance. objective criteriaandwithdueregardtothediversityofboard.Inparticular,committeehasaresponsibilityensu the board.Thesearchforboardappointeesisconducted,andappointmentsrecommended,basedonmerit,against The nominationscommitteeadoptsaformalandtransparentprocessfortheappointmentofnewindependentdirectorson Criteria forselectionandappointmentofindependentdirectors Ms. AndreaBierce Mr. M.M.Murugappan Mr. K.Ramachandran Name oftheMember The compositionoftheCommitteeanddetailsmeetings/attendanceduringyearareasfollows: company. committee worksintandemwiththeboardtoplanforanappropriatesuccessionofleadershipwithinand In additionthecommitteealsoconsidersandtransactsitemslistedoutinSEBI(LODR)Regulations,2015.The l l l l officer inrespectofothermatters. Mr. SudheendhraPuttyisthedesignated complianceofficerundertheSEBIregulations.Mr. N.RaviKumaristhecompliance During theyear,committee metonce. The Chairmanofthiscommitteeisanindependentdirector. Mr. KrishnaBodanapu Mr. B.V.R.MohanReddy Mr. K.Ramachandran Name oftheMember Review ofSuccessionPlanning Reviewing LeadershipDevelopmentprogrammes with thecriterialaiddown,andrecommendtoBoardtheirappointmentremoval. Identifying personswhoarequalifiedtobecomedirectorsandmaybeappointedinseniormanagementaccordance Discussing andevaluatingbestpracticesinLeadershipDevelopment,SuccessionPlanningExecutiveCompensation. himn21 2 Member Member Chairman Position Member Chairman Position Member Meetings held during the year Meetings attended Meetings Meetings heldduringtheyear 2 2 2 2 re 26 98 Annual Report 2015-16 cyient.com ensure thosestrategiesresult insustainableandprofitablerevenuegrowth. and tacticstostrengthencompany’s relationshipswithexistingclients,develop withprospectiveclientsand The overallobjectiveoftheClient EngagementCommitteeistoprovideguidancethemanagement teamaroundstrategies Customer EngagementCommittee: During theyear,committeemetfourtimes. Mr. JohnPaterson Mr. AlainDeTaeye Mr. HarshManglik Mr. SomMittal Name oftheMember The compositionofthecommitteeason31March2016is follows: execution andvariousacquisitiontargets. manufacturing. Thecommitteeperiodicallyguidedthemanagementteamonmacrotrends,long-rangeplanning,strategy strategies, inorganicgrowthplans,long-rangefinancialplanningandemergingopportunitiesindataanalyticsdesign-led company's executioninitiativesoverthecourseofFY2015-16.Thecommittee'sdeliberationscoveredindustry-specific development ofCyient'sS3strategythepreviousfinancialyear,StrategyCommitteeBoardfocusedon the A strategycommitteeoftheboardhasbeencreatedtoreviewandadviseonorganizationstrategy.Following the Strategy Committee: During theyear,committeemetonce. Mr. KrishnaBodanapu Mr. B.V.R.MohanReddy Mr. K.Ramachandran Name oftheMember Details ofShareholderComplaints/ServiceRequestsreceivedduringtheyear2015-16 The compositionofthecommitteeason31March2016isfollows: monitortheCorporateSocialResponsibilityPolicyofcompanyfromtimetotime. (c) recommendtheamountofexpendituretobeincurredonactivitiesspecified and (b) formulateandrecommendtotheBoard,aCorporateSocialResponsibilityPolicywhichshallindicateactivitiesbe (a) The CompanyhassetupaCSRcommitteetointeralia Corporate SocialResponsibility(CSR)Committee: the endoffinancialyear. All thecomplaintswereresolvedtosatisfactionofshareholdersandtherearenosharetransferswhichpendingat Sl. No. Change/CorrectionofBankMandate RequestforECSFacility 4 3 NonReceiptofSecurities 6 NonReceiptofAnnualReports 5 NonReceiptofDividendWarrants 2 Change/CorrectionofAddress 1 DividendWarrantsforRevalidation 7 IssueofduplicateDividendwarrants 8 undertaken bythecompanyasspecifiedlaw atclr eevdDisposed Received Particulars TOTAL Position Position Member Member Chairman Member Member Chairman Member 101 08 05 01 03 44 10 15 15 101 05 08 01 44 03 15 10 15 26 99 Annual Report 2015-16 cyient.com its quarterly,half-yearly andannualresultsin leadingnewspapersinIndia. Theresultsarealsodisplayed ontheCompany's meetings andannualgeneral ensureadirectinteractionwiththemanagement team. Thecompanyalsopublishes institutional investors&analysts. Additionally,regularconferencecalls,management interviews,facetoinvestor information intheformofannual reports,quarterlyearningsinvestorreleasesand investorpresentationsmadeto on pillarsoftrustandtransparency. Toensureinformeddecisionsbyinvestors,thecompany providescomprehensive The companyrecognizestheinvestor communityasakeystakeholderofthebusiness,and aimstobuilditsinvestorrelations Investor Relations Special Resolutionspassedthroughpostalballotduringthe year2015-16:Nil No Extra-OrdinaryGeneralMeetingoftheshareholderswas heldduringtheyear. process. Detailsofthesamearepublishedelsewherein annualreport. resolutions intheelectronicmode.Thiswillalsoenableagreater numberofshareholderstoparticipateinthegeneralmeetin mandatory votingprocessthroughinternet.Thisisanadditionalfacilityprovidedtotheshareholdersvoteon AGM ---- do --- For thethirdyearinsuccession,companyhasbeenprovidingE-votingfacilitytoitsshareholdersparticipatea no 3 ---- do --- AGM 22nd 2:30 p.m. on Thursday, AGM 23rd L&DCentre(company'sCampus), 24th AGM Meeting Annual General The boardusestheannualgeneralmeetingasameanstocommunicatewithinvestorsandencouragetheirparticipation. General Meetings The committeereviewsandprovidesrecommendationsonthefollowing: The compositionofthecommitteeisasfollows: Mr. AlainDeTaeye Mr. JohnPaterson Ms. AndreaBierce Name oftheMember and theRulesmadethereunderapplicableregulations. Company willconductthepostalballot,whererequired,inaccordance withtheprovisionsofCompaniesAct,2013 Procedure forpostalballot: During theyear,committeemettwice. Mr. HarshManglik client satisfactionsurveymethodologyandresultsensurekeyinsightsaretakentranslatedtoaction. key successparameters(clientsatisfaction,revenuegrowth,profitability,relationshipdepth,etc) defined clientprofiles. understanding theclientmindset,challengesandprioritiesworktoalignexperiencebenefits etc) andproviderecommendations. new initiativestostrengthenclientperformanceengagement(clientadvisoryboard,communitiesorforums, reporting, newsletters,socialmediaconnect,onboarding,etc.) the clientexperienceandCyient’scommunicationstrategy,touchpointsexecution(relationshiphealth expectations. thekey accountplanningprocessandrepresentativeplansrecommendmanagementdirectionperformance ltN.2 TPr,Nnkagd,July16,2015 Manikonda, Hyderabad-500032 Plot No.2,ITPark,Nanakramguda, Venue Member Chairperson Position Member Member & Date No. of special of No. Time, Day&Date July 18,2013 July 17,2014 :0pm nTusa,3 2:30 p.m.onThursday, :0pm nTusa,Nil 2:30 p.m.onThursday, resolutions passed n- g 100 26 Annual Report 2015-16 cyient.com spirit tovariouscodesandguidelines: commitment togoodcorporategovernanceisbulwarkedontheValuesFIRSTphilosophyandassuch,adheresinletter and The companyiscommittedtomakedisclosuresandabidebytheobligationsunderapplicablelaws.company's Company's philosophyonDisclosureandtransparency to onpriority. [email protected]. In ordertofacilitatespeedierredressalofinvestors'grievances,thecompanyhasanexclusiveemail ID with bothStockExchangeswherethecompany'ssharesarelisted. with transferendorsementshavebeenissuedbythecompanywithinstipulatedtimeperiods.Thiscertificateisalso filed intervals, certifyingthatthesharetransferrequestscompleteinallrespectshavebeenprocessedandcertificates The CompanyobtainsaCertificateofCompliancefromMr.S.Chidambaram,SecretaryinPractice,athalf-yearly document andaone-stop-shopforallqueriesoftheshareholders. The companyhasinplaceshareholderhandbookandthesameisavailableoncompany'swebsite.Thisacomprehensive Handbook company isincompliancewiththissystem. web basedcomplaintsredressalsystem.Thesystemprocessesinacentralizedmechanism. The SecuritiesExchangeBoardofIndiahasinitiatedaplatformforredressingtheinvestorgrievancesthroughSCORES, Scores in thecomingyears. company wishestoalignitselfbetterwithinvestorexpectationssothatitcandelivergreaterandpositivevalueitsinves The insightsbasedoninvestorsfeedbackwerepresentedtothemanagementandboard.BasedISATsurvey, is viaanannualsurvey.Thecompanypartneredwithindependentresearchfirmforcarryingoutthissurveyduring2016. In thecompany'scontinuedquesttoimproveinvestorsatisfaction,oneofwaysmeasureInvestorSatisfaction(ISAT) Investor SatisfactionSurvey frequency ofmanagementinteractionswithinvestors. "Investor SatisfactionSurvey","AnnualInvestors'Day",focusoninvestorreturnmetrics,improveddisclosures,andincreased out severalinitiativesinpursuitofaneffectivetwowaycommunicationchannelwithinvestors.Theseinclude website "www.cyient.com".Thecompanyhasbeentakingcontinuousinitiativestomeetinvestorexpectations,androlled j Periodicfilings,reports, statements,documentsandinformationreports containinformationthatenableinvestors (j) Filings,reports,statements, documentsandinformationwhichareevent basedorarefiledperiodicallycontainall (i) Thecompanymakesthespecifieddisclosuresandfollowsitsobligations inletterandspirittakingintoconsideration (h) Thecompany abidesbyalltheprovisionsofapplicablelawsincludingsecuritiesandalsosuchother (g) TheChannelsfordisseminatinginformationbythecompany provideforequal,timelyandcostefficientaccessto (f) Thecompanyprovidesadequate andtimelyinformationtostockexchange(s)investors. (d) The companyensuresthatdisseminationsmadeareadequate,accurate,explicit,timelyandpresentedinasimple (c) Thecompanyimplementstheprescribedaccountingstandardsinletterandspiritpreparation offinancial (b) Informationispreparedanddisclosedinaccordancewithapplicablestandardsofaccountingfinancialdisclosure. (a) investors toassess thecurrentstatusof company to tracktheperformanceof companyoverregularintervalsoftimeandprovidesufficient informationtoenable the relevantinformation. the interestofallstakeholders. and asmaybeapplicable. guidelines asmaybeissuedfromtimetobyanyregulatory authorityandthestockexchange(s)inthisregard relevant informationbyinvestorsatlarge. bourses andinvestorsisnotmisleading. language. Itrefrainsfrommakingandavoidsmisrepresentation andensuresthattheinformationprovidedto by anindependent,competentandqualifiedauditor-DeloitteHaskins&Sells. statements takingintoconsiderationtheinterestofallstakeholdersandensuresthatannualauditisconducted ShareholdersmaylodgetheirqueriesaddressedtothisemailIDwhichwouldbeattended tors 101 26 Annual Report 2015-16 cyient.com Disclosures Means ofCommunication )Mr.KrishnaBodanapuisthesonofB.V.R.MohanReddy.Thereareno j) Theseniormanagementhaveaffirmedtotheboardofdirectorsthattherearenomaterial,financialandcommercial i) ThecompanyiscompliantwiththeprovisionsofapplicablelawsandSEBI(LODR)Regulations,2015 h) NopenaltiesorstrictureswereimposedonthecompanybyStock Exchanges,SEBIorotherstatutoryauthorities g) Theboardregularlydiscussesthesignificantbusinessrisksidentifiedbymanagementandmitigationprocess f) Theboardofdirectorshaslaid-downa'CodeConduct'(Code)forallthemembersandseniormanagement e) AcompliancereportofallapplicablelawsandregulationsdulysignedbytheExecutiveChairman,ChiefFinancial d) TherewerenopecuniarytransactionswithanyoftheNon-ExecutiveDirectors,exceptpaymentcommission. c) TherearenomateriallysignificantrelatedpartytransactionspleaserefernoteNo.39oftheconsolidatedfinancial b) )TheManagingDirector&CEOandChiefFinancialOfficerhavegivenaCertificate totheBoardascontemplatedin a) )Thewebsiteofthecompanygivescomprehensive informationaboutthemanagement,vision,mission, policies, f) Thecompanyalsoreleasesallprice sensitiveinformationsimultaneouslytoNSE(NEAPS)/BSEandthe media. e) Apartfromthefinancialresults,allpressreleasesofCompanyandpresentationsmadetoinstitutional d) Aquarterlyinvestorupdateissenttoalltheshareholdersinelectronicmode.Thisprovidesaqualitative c) Statutoryadvertisementsandfinancialresultsofthecompany(Quarterly,Half-yearlyAnnual) arenormally b) )Thecompanyhasa"CorporateDisclosurePolicy"and"CodeofPracticesProceduresforFair a) transactions, wheretheyhavepersonalinterestthatmayapotentialconflictwiththeofcompany. listing agreementwiththestockexchanges,asapplicable. on anymatterrelatedtocapitalmarketsduringthelastthreeyears. and ManagementDiscussionAnalysisannexedtotheDirectors'Report. being takenup.AdetailednoteontheriskidentificationandmitigationisincludedinRiskManagementReport SEBI (LODR)Regulations,2015,ispublishedelsewhereintheAnnualReport. from everyassociatecoveredbytheCode.ThedeclarationofManagingDirector&CEO,asrequiredunder personnel ofthecompanyandthisCodeispostedonwebsiteCompany.Annualdeclarationobtained pending beforethevariouscourts/judicialforumsisalsoputuptoboardonaquarterlybasis. the steps/actiontakenbycompanyinthisregard.Astatusreportofmateriallegalcasesanddisputedliabilities The Boardconsidersmateriallyimportantshowcause/demandnoticesreceivedfromstatutoryauthoritiesand compliance ofalltheapplicablelawsandgivesappropriatedirectionswherevernecessary. Officer andtheCompanySecretaryisplacedatperiodicintervalsforreviewbyBoard.TheBoardreviews statements, formingpartofthisAnnualReport SEBI (LODR)Regulations,2015.Thisispublishedelsewhereinannualreport. shareholding pattern,information relatingtoR&Tagentsandfrequentlyaskedquestions fortheshareholders. on 'InvestorRelations'serves toinformtheshareholders,bygivingcompletefinancial results,pressreleases, corporate governance, sustainability,investorrelations,salesnetwork,updates andnews.Thesection investors andanalysts,ifany,areplacedontheCompany's website -www.cyient.com and variousotheroperationalmetrics. insight intothecompany'sperformance,financialandbusiness highlights,amessagefromthemanagement regional languagedailies(Telugu). published in'BusinessStandard',or'FinancialExpress'newspapers inEnglishand'AndhraPrabha'/'NavaTelangana' of mediumdisclosureanddissemination. and coordinatingdisclosure,respondingtomarketrumours,timelyreportingofchangesinshareholdingdetails information. Thispolicydealswithpromptdisclosureofpricesensitiveinformation,parametersforoverseeing Unpublished PriceSensitiveInformation"eachwithanobjectiveofensuringtimelyandadequatedisclosure any otherdirectors. interse relationshipsbetweenandamong 102 26 Annual Report 2015-16 cyient.com General ShareholderInformation insider trading. The CompanyhasadoptedthecodeofinternalproceduresandconductforlistedcompaniesnotifiedbySEBIprohibiting Compliance ofInsiderTradingNorms internal controlandsystems,arediscussedinthesaidreport.Thereportalsocontainsasectiononriskmanagement. structure anddevelopments,opportunitiesthreats,segment/productwiseperformance,outlook,risksconcerns, The ManagementDiscussionandAnalysisReportformspartoftheDirectors'Report.Allmatterspertainingtoindustry Management DiscussionandAnalysisReport h) Registrar and Transfer Agents : Karvy Computershare Private Limited Private Computershare Karvy : RegistrarandTransferAgents h) )SokCd S 532175 : BSE Marketpricedata:High/Lowduringeachmonthinthefinancialyear2015-16andperformancecomparisonto g) StockCode BSELtd.,P.J.Towers,DalalStreet,Fort,Mumbai-400001 1April2015to31March2016 f) NA August 25toAugust29,2016(bothdaysinclusive) : : : : Exchanges Stock on Listing e) DividendPaymentDate d) DateofBookClosure Monday,August29,2016at3.00p.m. c) Year Financial : b) TimeandVenue AGM-Date, a) a-6460 9.02496 33.8400 9.077.07035.10 6825.80 7777.60 7241.50 7600.45 396.00 7972.55 7551.05 369.25 440.00 7979.30 7714.15 406.00 444.00 23133.18 7930.65 8116.10 462.00 548.00 22494.61 25479.62 7539.50 8336.30 480.00 23839.76 501.90 25002.32 8055.00 7667.25 398.70 525.15 26197.27 24867.73 539.95 8315.40 8621.55 370.50 536.65 642.75 25451.42 446.00 26256.42 8654.75 7940.30 404.00 526.00 26168.71 614.95 442.95 26824.30 8467.15 496.20 7997.15 462.00 24833.54 547.15 604.75 27618.14 Mar-16 8144.75 8489.55 575.45 501.10 480.00 25298.42 26471.82 500.00 Feb-16 8844.80 525.00 27416.39 460.00 615.00 28417.59 538.80 Jan-16 545.00 458.00 28578.33 26307.07 569.85 641.00 Dec-15 527.05 543.20 27968.75 26423.99 612.45 Nov-15 496.30 26897.54 598.00 28071.16 Oct-15 503.50 574.55 29094.61 Sep-15 460.00 613.45 Aug-15 458.35 568.50 Jul-15 543.55 Jun-15 May-15 Apr-15 Month erHg Low High & Year broad basedindicessuchasBSESensexandNiftyisfollows: BSE ( ` ) est www.karvycomputershare.com [email protected];[email protected] +91-40-67161562 : : : Website Email Tel Gachibowli, FinancialDistrict, Nanakramguda, Hyderabad-500032. Plot No.KarvySeleniumTower B,Plot31-32, Unit: CyientLimited SN:INE136B01020 L72200TG1991PLC013134 : ISIN : CYIENT/EQ CIN : NSE exchanges. The companyhaspaidtheannuallistingfeestoeachofstock Bandra-kurla Complex,Bandra(East),Mumbai-400051 National StockExchangeofIndiaLtd.,Plaza, Manikonda, Hyderabad500032,Telangana L &DCentre,PlotNo.2,ITPark, ihLwHg o ihLow High Low High Low High SENSEX NSE ( ` ) NIFTY 103 26 Annual Report 2015-16 cyient.com )DistributionofShareholding j) ShareTransferSystem i) Sl. No. The DistributionofshareholdingtheCompanyasonMarch31,2016isfollows: Karvy ComputersharePrivateLimitedistheCommonR&TAgentforbothphysicalanddematerialisedmode. transfers areprocessedandapprovedintheelectronicformbyNSDL/CDSLthroughtheirdepositoryparticipants. pending formorethanafortnight.AstheCompany'ssharesarecurrentlytradedindematerializedform, the ShareTransferCommitteemeetsasoftenrequired.Adequatecareistakentoensurethatnotransfersare concerned withinaweekfromthedateofapprovaltransfersbyShareTransferCommittee.Forthispurpose, the documentsareclearandcompleteinallrespects.Thesharesdulytransferreddispatchedtoshareholders Shares lodgedforphysicaltransferareregisteredwithinaperiodof8daysasagainstservicestandard15days,if Shareholding pattern: Sl. No. po50 16,375 5000 upto 1 01-10000 - 5001 2 001&ABOVE & 100000 100001 - 50000 50001 - 8 40000 40001 - 7 30000 30001 - 6 20000 20001 - 5 10001 4 3 2NonResidentIndians NBFC 12 11 4ResidentIndividuals 14 MutualFunds 10 5Trusts 15 Company Promoters 13 Banks 1 ClearingMembers 2 Employees 3 ForeignNationals ForeignInstitutionalInvestors 6 ForeignCollaborators 5 4 BodiesCorporates H U F 9 ForeignPortfolioInvestors 8 7 ecito ae Shares Cases Description aeoyCss%of Cases Category TOTAL TOTAL 17,756 153 105 378 605 61 37 42 776124337100.00 112,483,377 17,756 0.0524685100.00 562,416,885 100.00 16,033 ae Amount Cases 92.22 .6532,541,410 0.86 0.59 2.13 0.34 0.21 0.24 3.41 212 368 284 610 917,542,416 25 49 527,028,004 55 910,976,140 49 024,969,748 10 48 3 5 16,792,960 2 3 2,629,420 5,436,315 5,305,302 3,197,865 9,771,220 4,656,810 1,710,605 1,497,140 5,620,978 4,173,965 162,658 442,655 339,243 21,135 73,449 10,204 620 % Amount % Equity 15.60 24.03 14.93 22.20 94.69 0.83 0.02 0.30 0.27 0.39 9.76 1.74 0.47 0.96 0.30 0.00 0.14 0.74 4.72 5.00 2.84 0.07 0.01 104 26 Annual Report 2015-16 cyient.com )OutstandingGDRs/ADRs/Warrants oranyotherconvertibleinstruments,conversiondateandlikelyimpacton l) Dematerializationofsharesandliquidity k) Amansa HoldingsPrivate Limited Lavender InvestmentsLimited ICICI PrudentialLifeInsurance Oppenheimer InternationalSmallCompanyFund Deutsche SecuritiesMauritius Limited B. Sucharitha First CarlyleVentures Mauritius B.V.R. MohanReddy Carrier InternationalMauritius Name oftheShareholder Shareholders holdingmorethan1%ofshares: T. Rowe Price International Discovery Fund T. RowePriceInternational National WestminsterBank B.G.V. Krishna Reliance CapitalTrusteeCo.Ltd Bodanapu SriVaishnavi SBI MagnumTaxgainScheme Tele AtlasData‘SHertogenboschBV are nooutstandingconvertibleinstrumentswhichwillimpact theequity. The CompanyhasnotissuedanyGDRs/ADRs/Warrants/convertible debenturesduringtheyear2015-16andthere equity: the endofMarch31,2016,99.13%outstandingequitysharescompanyareinelectronicform. Central DepositoryServices(India)Limited(CDSL)toestablishelectronicconnectivityforscriplesstrading.Asat Accordingly, thecompanyhasenteredintoagreementswithNationalSecuritiesDepositoryLimited(NSDL)and As perSEBIguidelinesoninvestorprotection,theCompany'ssharesaretobetradedonlyindematerializedmode. also totheStockExchanges. with NSDLandCDSL.Thisreconciliationisdoneonaquarterlybasisreportedtotheboardofdirectors agreement withthetotalnumberofsharesinphysicalformanddematerialisedheld the totalissued/paidupcapitalandlistedcapital.Theauditconfirmsthatisin with NationalSecuritiesDepositoryLimited(NSDL)andCentralServices(India)(CDSL) Mr. S.Chidambaram,CompanySecretaryinPracticecarriedoutanaudittoreconcilethetotaladmittedcapital Reconciliation ofShareCapital Plc Company Ltd t 5229013.60 15,292,960 Ltd No. of equity shares % of shareholding of % No. of equity shares 109469.87 12.99 11,099,416 14,614,888 ,5,7 4.85 4,155,404 5.82 4,732,101 5,456,277 6,541,200 4,806,297 2,574,316 1,850,760 1,790,400 1,490,761 1,500,000 2,022,434 2,719,104 5,040,320 4.21 4.27 3.69 2.29 2.42 1.65 1.80 4.48 1.59 1.33 1.33 105 26 Annual Report 2015-16 cyient.com )Equitysharesinthesuspenseaccount: o) )DevelopmentFacilities m) )Addressforcorrespondence andcontactpersonsforinvestors'queries n) the suspense account lying as on 31 March2016 the suspenseaccountlyingason Aggregate numberofshareholdersandtheoutstandingshares in eeomn aiiisLocation Development Facilities shares inthesuspenseaccountas on 1April2015 Aggregate numberofshareholdersandtheoutstanding Hyderabad the rightfulownerofsuchshares claimstheshares. The votingrightsontheshares outstandinginthesuspenseaccountasonMarch31,2016 shallremainfrozentill account duringtheyear Shareholders towhomsharesweretransferredfromthesuspense from suspenseaccountduringtheyear Shareholders whoapproachedtheCompanyfortransferof shares following detailsinrespectofequityshareslyingthesuspenseaccount: In accordancewiththerequirementofScheduleVSEBI(LODR)Regulations,2015Companyreports The CompanyhasSoftwareDevelopmentfacilities,theparticularsofwhichareasfollows: atclr shareholders Particulars Bangalore Kakinada Visakhapatnam Noida E-mail : Infocity, Madhapur,Hyderabad-500081Tel:+91-40-2311-2296/67641322Fax:+91-40-6662-4368, at theRegisteredOfficeofCompany4thFloor,'A'Wing,PlotNo.11,SoftwareUnitsLayout, to thefinancialstatementsofCompanymaybeaddressedMr.AjayAggarwal,ChiefFinancialOfficer Investors' correspondencemaybeaddressedtoMr.SudheendhraPutty,companysecretaryandanyqueriesrelating Company's website. *Complete listofdevelopmentcentres,subsidiariesandotherofficesisavailableelsewhereintheAnnualReport/ [email protected] / [email protected] .Plot 1. .D.No. 1. .PlotNo.11, 1. .PlotNo.110A&110B,Phase-I,ElectronicsCity,AdjacenttoE.City, 1. .PlotNo.6,Survey1,IDAUppal,Hyderabad-500039 3. PlotNo.2,ITPark,Nanakramguda,Manikonda,Hyderabad-500032. 2. .PritechParkSEZ,FirstFloor,Wing-B,Block–9, 2. .PlotNos.1,2,3,4&5A,APIICSEZ,Sarpavaram,Kakinada-533001 2. .PlotNo.7,NSEZ,PhaseII,NOIDA-201305 2. Hyderabad -500081 Madhuravada (V),Visakhapatnam-530007 Survey No.410,Plot14,SEZUnits,Hill3,Rushikonda, Sarjapur MarthahalliRingRoad,Bellandur,Bangalore-560103 Fire Station,HosurMainRoad,Bangalore-560100 Road, Opp.:ApolloHospitals,Kakinada-533001; No.8, 9,10&11,SoftwareUnitsLayout,Infocity,Madhapur, 13-1-61/64, 4th5th&6thFloors,KatyayaniHi-techComplex,Main [email protected]. Block "B",Sector63,NOIDA-201301 ubro Numberof Number of 114 119 5 5 equity shares 76,040 23,225 99,265 23,225 106 26 Annual Report 2015-16 cyient.com Sl.No. iaca erRt fDvdn iied(aeo G)the dividend Dividend(DateofAGM) RateofDividend Year Financial Details ofdividenddeclarationdatesandduetransfertoInvestorEducationProtectionFund(IEPF): 2008-2009 2011-12 (Interim) 2011-12 2010-2011 2009-2010 2012-13(Interim) (Final) 2011-12 2013-14 (Interim) 2013-14 2012-13 (Final) 2012-13 2014-15 (Interim) 2014-15 (Final) 2013-14 2014-15 (Final) 2014-15 051 1titrm 60% 2015-16 (1stinterim) Status ofimplementationnon-mandatoryrequirementsisasfollows: Compliance ReportonDiscretionaryRequirementsunderRegulation27(1)ofSEBI(LODR)Regulations,2015 they aretransferredtotheIEPF. The companysendsreminderstotheshareholdersconcernedclaimunclaimedandunpaiddividendsbefore 80% forms withtheRegistrarofCompanies,Telangana. For thefinancialyear2007-08,companyhastransferredunclaimeddividendtoIEPFandfiledrelevant 2015-16 (2ndinterim) Theinternalauditormay reportdirectlytothe 5 Thelistedentitymayappointseparatepersons 4 Thelisted entitymaymovetowardsaregime 3 Ahalf-yearlydeclarationoffinancial 2 Anon-executivechairpersonmaybeentitled 1 Requirement audit committee. director orchiefexecutiveofficer. to thepostofchairpersonandmanaging opinion. of financialstatementswithunmodifiedaudit sent toeachhouseholdofshareholders. significant eventsinlastsix-months,maybe performance includingsummaryofthe performance ofhisduties. reimbursement ofexpensesincurredin entity's expenseandalsoallowed to maintainachairperson'sofficeatthelisted 30% 25% 40% 25% 50% 25% 40% 60% 40% 60% 100% July July July July 16,2015 July July 18,2012 July 18,2013 November 7, 2012 7, November October 27,2011 July 17,2014 October 17,2013 September 29,2014 October 15, 2015 aeo elrto fDue date to claim Date ofDeclaration March 17,2016 March 20, 2011 14, 2010 01, 2009 has thedirectaccesstoAudit Committee to theAuditCommitteeandinternalauditor The Internalauditordirectlymakesapresentation Director &CEOaredifferent The officesofExecutiveChairmanandManaging reports areall'cleanreports/unmodifiedopinions' towards thisanduntilnowthecompany'saudit The companyhasconstantlyendeavoured electronic mode business andoperationsupdate.Thisissentinthe the shareholderscomprisingkeyfinancial, The companysendsaquarterlyinvestorupdateto chairman Not applicableasthecompanyhasanexecutive Status ofimplementation August 22,2022 August 24, 2019 24, August August 24, 2020 24, August December 3,2018 August 23, 2021 23, August November 23, 2020 23, November August 26,2018 August 20,2017 August 07,2016 December 13, 2019 November 21,2022 October 28,2021 April 23,2023 107 26 Annual Report 2015-16 cyient.com Association) &VPand Centre Head,Infor India Ltd President, HYSEA (Hyderabad Software Enterprises Ranga Pothula more laurels intheyears to come! 25years ofitsjourney. We wishCyient andits entire teammany Our hearty congratulations onceagainto Cyient oncompleting excelling intheircore competency. development for sustainable communities, inadditionto Outreach programs. Itunderlinestheircommitment to holistic VLJQLƬFDQWO\WR+<6($&65)RUXPpV(GXFDWLRQDQG&RPPXQLW\ through theirAdopt– a–schoolinitiative andhave contributed has beeninthearea ofCSR. They have donecommendable work map oftheworld, anothernoteworthy contribution ofCyient In additionto putting Hyderabad andthecountry ontheGIS as itsPresident from 1993to 1999. role played byMr. BVR Mohan Reddy duringtheformative years, Jubilee year ofitsformation, we fondly recollect theimportant HYSEA, NASSCOM, andCII.AsHYSEA too celebrates theSilver the stateandnationally byactively leadingindustrybodies like he hashelpedbuildafavorable businessecosystem bothin in engineeringservicesacross industriesunderhisleadership, WKHƬHOGRIWHFKQRORJ\ZKHUH&\LHQWKDVFDUYHGDQLFKHIRULWVHOI Cyient, isonesuchkey person. Apartfrom theachievements in Mr. BVR Mohan Reddy, theFounder andExecutive Chairmanof and theproactive stategovernments thatwe have had. the contribution ofseveral key individuals andorganizations acknowledge thatthissuccesshasbeenpossibledueto IT industryhasgrown byleapsandbounds, we should As theimpactandcontribution ofthestateto theglobal more than4,00,000professionals directly. from thestatetoday standatINR75,070crores, employing are amature andaglobalcompetitive force. IT/ITES exports Industry intheearly 1990s, today Telangana ITandITES industry EHHQVSHDUKHDGLQJWKHJURZWKLQRXUVWDWH)URPDƮHGJOLQJ For thepasttwo andhalfdecades, information technology has 108 26 Annual Report 2015-16 cyient.com April 21,2016 SECUNDERABAD Theseabridged financialstatementshavebeenpreparedbytheCompanyinaccordancewithFormAOC-3,pursuantto (ii) i WehaveexaminedtheabridgedBalanceSheetof (i) CYIENT LIMITED TO MEMBERSOF THE ON ABRIDGEDFINANCIALSTATEMENTS INDEPENDENT AUDITORS'REPORT Management. the yearthenended,togetherwithnotesthereon.ThesefinancialstatementsareresponsibilityofCompany's Company') asatMarch31,2016,theabridgedStatementofProfitandLossCashFlowfor attached hereto. Companies Act,2013andcoveredbyourreportdatedApril21,2016tothemembersofCompany,whichis the yearendedMarch31,2016preparedinaccordancewithprovisionsofsub-section(1)Section136 Rule 10oftheCompanies(Accounts)Rules,2014andarebasedonauditedfinancialstatementsCompanyfor (formerly InfotechEnterprisesLimited) CYIENT LIMITED(FormerlyINFOTECHENTERPRISESLIMITED) For (Firm's RegistrationNo.008072S) DELOITTE HASKINS&SELLS (GANESH BALAKRISHNAN) (Membership No.201193) CharteredAccountants (Partner) ('the 109 26 Annual Report 2015-16 cyient.com require thatwecomplywithethical requirementsandplan specified underSection143(10) oftheAct.ThoseStandards statements inaccordancewith theStandardsonAuditing We conductedourauditofthestandalonefinancial the Orderundersection143(11)ofAct. provisions oftheActandRulesmadethereunder required tobeincludedintheauditreportunder accounting andauditingstandardsmatterswhichare We havetakenintoaccounttheprovisionsofAct, standalone financialstatementsbasedonouraudit. Our responsibilityistoexpressanopiniononthese Auditor's Responsibility material misstatement,whetherduetofraudorerror. statements thatgiveatrueandfairviewarefreefrom preparation andpresentationofthesestandalonefinancial completeness oftheaccountingrecords,relevantto were operatingeffectivelyforensuringtheaccuracyand maintenance ofadequateinternalfinancialcontrols,that are reasonableandprudent;design,implementation accounting policies;makingjudgmentsandestimatesthat other irregularities;selectionandapplicationofappropriate of theCompanyandforpreventingdetectingfrauds with theprovisionsofActforsafeguardingassets maintenance ofadequateaccountingrecordsinaccordance Act, asapplicable.Thisresponsibilityalsoincludes Accounting Standardsprescribedundersection133ofthe principles generallyacceptedinIndia,includingthe flows oftheCompanyinaccordancewithaccounting of thefinancialposition,performanceandcash standalone financialstatementsthatgiveatrueandfairview ("the Act")withrespecttothepreparationofthese matters statedinSection134(5)oftheCompaniesAct,2013 The Company'sBoardofDirectorsisresponsibleforthe Statements Management's ResponsibilityfortheStandaloneFinancial policies andotherexplanatoryinformation. then ended,andasummaryofthesignificantaccounting Profit andLosstheCashFlowStatementforyear the BalanceSheetasatMarch31,2016,Statementof ENTERPRISES LIMITED) statements of We haveauditedtheaccompanyingstandalonefinancial Report ontheStandaloneFinancialStatements LIMITED CYIENT TO THEMEMBERSOF INDEPENDENT AUDITORS'REPORT CYIENT LIMITED(formerlyINFOTECH (formerlyInfotechEnterprisesLimited) ("theCompany"),whichcomprise .AsrequiredbySection143(3)oftheAct, wereport 1. Report onOtherLegalandRegulatoryRequirements flows fortheyearendedonthatdate. Company asatMarch31,2016,anditsprofitcash generally acceptedinIndia,ofthestateaffairs and fairviewinconformitywiththeaccountingprinciples required bytheActinmannersoandgiveatrue standalone financialstatementsgivetheinformation according totheexplanationsgivenus,aforesaid In ouropinionandtothebestofinformation Opinion opinion onthestandalonefinancialstatements. sufficient andappropriatetoprovideabasisforouraudit We believethattheauditevidencewehaveobtainedis overall presentationofthefinancialstatements. made bytheCompany'sDirectors,aswellevaluating used andthereasonablenessofaccountingestimates evaluating theappropriatenessofaccountingpolicies are appropriateinthecircumstances.Anauditalsoincludes a trueandfairviewinordertodesignauditproceduresthat preparation ofthestandalonefinancialstatementsthatgive internal financialcontrolrelevanttotheCompany's making thoseriskassessments,theauditorconsiders financial statements,whetherduetofraudorerror.In of therisksmaterialmisstatementstandalone depend ontheauditor'sjudgment,includingassessment standalone financialstatements.Theproceduresselected evidence abouttheamountsanddisclosuresin An auditinvolvesperformingprocedurestoobtain misstatement. whether thefinancialstatementsarefreefrommaterial and performtheaudittoobtainreasonableassuranceabout )TheBalanceSheet,theStatement ofProfitand c) Inouropinion,properbooksofaccountas b) Wehavesought andobtainedalltheinformation a) that: account. this Reportareinagreement withthebooksof Loss, andtheCashFlowStatement dealtwithby books. so farasitappearsfromourexaminationofthose required bylawhavebeenkepttheCompany purposes ofouraudit. knowledge andbeliefwerenecessaryforthe and explanationswhichtothebestofour 110 26 Annual Report 2015-16 cyient.com )Withrespecttotheothermattersbeincluded g) Withrespecttotheadequacyofinternal f) Onthebasisofwrittenrepresentations e) Inouropinion,theaforesaidstandalonefinancial d) .TheCompanyhasdisclosedtheimpactof i. given tous: information andaccordingtotheexplanations 2014, inouropinionandtothebestof of theCompanies(AuditandAuditors)Rules, in theAuditor'sReportaccordancewithRule11 internal financialcontrolsoverreporting. operating effectivenessoftheCompany's unmodified opinionontheadequacyand "Annexure A".Ourreportexpressesan controls, refertoourseparateReportin Company andtheoperatingeffectivenessofsuch financial controlsoverreportingofthe of Section164(2)theAct. 2016 frombeingappointedasadirectorinterms of thedirectorsisdisqualifiedasonMarch31, taken onrecordbytheBoardofDirectors,none received fromthedirectorsasonMarch31,2016, Act, asapplicable. Standards prescribedundersection133ofthe statements complywiththeAccounting to thefinancialstatements. its financialstatements-ReferNote21.1(i) pending litigationsonitsfinancialpositionin April 21,2016 Secunderabad, .Asrequiredbythe Companies(Auditor'sReport) 2. specified inparagraphs3and4oftheOrder. give in"AnnexureB"astatementonthematters Government intermsofSection143(11)theAct,we Order, 2016("theOrder")issuedbytheCentral iii. TheCompanydidnothaveanylong-term ii. the Company. Investor EducationandProtectionFundby amounts, requiredtobetransferred,the There hasbeennodelayintransferring statements. losses -ReferNote24tothefinancial which therewereanymaterialforeseeable contracts includingderivativefor For (Firm's RegistrationNo.008072S) DELOITTE HASKINS&SELLS GANESH BALAKRISHNAN (Membership No.201193) Chartered Accountants Partner 111 26 Annual Report 2015-16 cyient.com internal financialcontrolsover financialreporting,assessing financial reportingincludedobtaining anunderstandingof effectiveness. Ourauditofinternal financialcontrolsover controls systemoverfinancialreportingandtheiroperating evidence abouttheadequacyofinternalfinancial Our auditinvolvesperformingprocedurestoobtain all materialrespects. and maintainedifsuchcontrolsoperatedeffectivelyin financial controlsoverreportingwasestablished reasonable assuranceaboutwhetheradequateinternal requirements andplanperformtheaudittoobtain the GuidanceNoterequirethatwecomplywithethical an auditofinternalfinancialcontrols.ThoseStandardsand the ActandGuidanceNote,toextentapplicable Standards onAuditingprescribedunderSection143(10)of our audit.Weconductedauditinaccordancewiththe internal financialcontrolsoverfinancialreportingbasedon Our responsibilityistoexpressanopinionontheCompany's Auditor's Responsibility financial information,asrequiredundertheAct. accounting records,andthetimelypreparationofreliable frauds anderrors,theaccuracyandcompletenessof safeguarding ofitsassets,thepreventionanddetection including adherencetoCompany'spolicies,the ensuring theorderlyandefficientconductofitsbusiness, internal financialcontrolsthatwereoperatingeffectivelyfor design,implementation andmaintenanceofadequate "Guidance Note").Theseresponsibilitiesincludethe bythe InstituteofCharteredAccountantsIndia(the Internal FinancialControlsOverReportingissued internal controlstatedintheGuidanceNoteonAuditof by theCompanyconsideringessentialcomponentsof internal controloverfinancialreportingcriteriaestablished and maintaininginternalfinancialcontrolsbasedonthe The Company'smanagementisresponsibleforestablishing Controls Management's ResponsibilityforInternalFinancial statements oftheCompanyforyearendedonthatdate. 2016 inconjunctionwithourauditofthestandalonefinancial ENTERPRISES LIMITED reporting of We haveauditedtheinternalfinancialcontrolsover of theCompaniesAct,2013("theAct") Reporting underClause(i)ofSub-section3ofSection143 Report ontheInternalFinancialControlsOver (Referred toinparagraph1(f)under'ReportonOtherLegalandRegulatoryRequirements'ofourreportevendate) ANNEXURE "A"TOTHEINDEPENDENTAUDITORS' CYIENT LIMITED ) ("theCompany")asofMarch31, (formerly INFOTECH compliance withthepoliciesor proceduresmaydeteriorate. because ofchangesinconditions, orthatthedegreeof control overfinancialreporting maybecomeinadequate periods aresubjecttotheriskthatinternalfinancial internal financialcontrolsoverreportingtofuture not bedetected.Also,projectionsofanyevaluationthe material misstatementsduetoerrororfraudmayoccurand collusion orimpropermanagementoverrideofcontrols, controls overfinancialreporting,includingthepossibilityof Because oftheinherentlimitationsinternalfinancial Financial Reporting Inherent LimitationsofInternalFinancialControlsOver a materialeffectonthefinancialstatements. use, ordispositionofthecompany'sassetsthatcouldhave prevention ortimelydetectionofunauthorisedacquisition, company; and(3)providereasonableassuranceregarding authorisations ofmanagementanddirectorsthe of thecompanyarebeingmadeonlyinaccordancewith accounting principles,andthatreceiptsexpenditures statements inaccordancewithgenerallyaccepted recorded asnecessarytopermitpreparationoffinancial (2) providereasonableassurancethattransactionsare transactions anddispositionsoftheassetscompany; reasonable detail,accuratelyandfairlyreflectthe that (1)pertaintothemaintenanceofrecordsthat,in financial reportingincludesthosepoliciesandprocedures principles. Acompany'sinternalfinancialcontrolover purposes inaccordancewithgenerallyacceptedaccounting the preparationoffinancialstatementsforexternal assurance regardingthereliabilityoffinancialreportingand reporting isaprocessdesignedtoprovidereasonable A company'sinternalfinancialcontrolover Reporting Meaning ofInternalFinancialControlsOver over financialreporting. opinion ontheCompany'sinternalfinancialcontrolssystem sufficient andappropriatetoprovideabasisforouraudit We believethattheauditevidencewehaveobtainedis error. standalone financialstatements,whetherduetofraudor assessment oftherisksmaterialmisstatement depend ontheauditor'sjudgement,including control basedontheassessedrisk.Theproceduresselected evaluating thedesignandoperatingeffectivenessofinternal the riskthatamaterialweaknessexists,andtesting 112 26 Annual Report 2015-16 cyient.com April 21,2016 Secunderabad, stated intheGuidanceNote. considering theessentialcomponentsofinternalcontrol financial reportingcriteriaestablishedbytheCompany as atMarch31,2016,basedontheinternalcontrolover controls overfinancialreportingwereoperatingeffectively system overfinancialreportingandsuchinternal material respects,anadequateinternalfinancialcontrols to theexplanationsgivenus,Companyhas,inall In ouropinion,tothebestofinformationandaccording Opinion For DELOITTEHASKINS&SELLS (Firm's RegistrationNo.008072S) (Membership No.201193) Chartered Accountants Ganesh Balakrishnan Partner 113 26 Annual Report 2015-16 cyient.com of evendate) (Referred toinparagraph2under'ReportonOtherLegalandRegulatoryRequirements'sectionofourreport ANNEXURE "B"TOTHEINDEPENDENTAUDITORS'REPORT i.Accordingtotheinformationandexplanationsgivenus,inrespectofstatutorydues: vii. HavingregardtothenatureofCompany'sbusiness/activities,reportingunderclause(vi)CARO2016is not vi. Accordingtotheinformationandexplanationsgivenus,Companyhasnotaccepted anydepositduringtheyear v. Inouropinionandaccordingtotheinformationexplanationsgivenus,Companyhascomplied withthe iv. Accordingtotheinformationandexplanationsgivenus,Companyhasgrantedloans,unsecured,companies iii. TheCompanydoesnothaveanyinventoryandhencereporting underclause(ii)oftheCARO2016isnotapplicable. ii. .InrespectoftheCompany'sfixedassets: i. b There werenoundisputedamountspayableinrespect ofProvidentFund,Employees'StateInsurance,Income- (b) TheCompanyhasgenerallybeenregularindepositingundisputedstatutorydues,including ProvidentFund, (a) applicable. 2016 isnotapplicable. and doesnothaveanyunclaimeddepositsasatMarch31,2016 andtherefore,reportingunderclause(v)oftheCARO and securities,asapplicable. provisions ofSections185and186theActinrespectgrantloans,makinginvestmentsprovidingguarantees Thereisnooverdueamountremainingoutstandingasattheyear-end. (c) Thescheduleofrepaymentprincipalandpaymentinteresthasbeen stipulatedandrepaymentsorreceiptsof (b) Thetermsandconditionsofthegrantsuchloansare,inouropinion,primafacie,notprejudicialtoCompany's (a) covered intheregistermaintainedundersection189ofAct,respectwhich: c Accordingtotheinformationandexplanationsgivenusrecordsexaminedbybasedon (c) Someofthefixedassetswerephysicallyverified duringtheyearbyManagementinaccordancewitha (b) TheCompany hasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituation (a) of legalformalitiesrelatingtoconveyance. in theagreement.IncaseofoneleaseholdlandCompanyisyettoreceivetitlewhichpendingcompletion in thefinancialstatements,leaseagreementsarenameofCompany,whereCompanyislessee In respectofimmovablepropertieslandandbuildingsthathavebeentakenonleasedisclosedasfixedasset admeasuring 10acres. Village, Nanakramguda Freehold landlocatedat land freehold Particulars ofthe applicable totheCompany. at March31,2016foraperiod ofmorethansixmonthsfromthedatetheybecamepayable. Excisedutyisnot tax, SalesTax,ServiceCustoms Duty,ValueAddedTax,cessandothermaterialstatutory duesinarrearsas material statutoryduesapplicabletoittheappropriateauthorities. ExcisedutyisnotapplicabletotheCompany. Employees' StateInsurance,Income-tax,SalesTax,Service Tax,CustomsDuty,ValueAddedcessandother principal amountsandinteresthavebeenregularasperstipulations. interest. Company asatthebalancesheetdate,exceptfollowing: comprising alltheimmovablepropertiesoflandandbuildingswhicharefreehold,heldinname examination oftheregisteredsaledeed/conveyanceprovidedtous,wereportthat,titledeeds, and discrepancies,ifany,notedwouldbedealtwithintheyearwhichsuchreconciliationiscompleted. intervals. Accordingtotheinformationandexplanationsgivenus,Companyisinprocessofreconciliation programme ofverification,whichinouropinionprovidesforphysicalverificationallthefixedassetsatreasonable of fixedassets. Gross Block as March 31, 2016 March 31, 2016 31, March March31,2016 3,947,700 sa Remarks NetBlockasat at 3,947,700 legal formalitiesrelating to conveyance. to Pending completionof 114 26 Annual Report 2015-16 cyient.com April 21,2016 SECUNDERABAD v.TheCompanyisnotrequiredtoberegisteredunder section45-IoftheReserveBankIndiaAct,1934. xvi. Inouropinionandaccordingtotheinformation andexplanationsgiventous,duringtheyearCompanyhasnot xv. DuringtheyearCompanyhas xiv. ii Inour xiii. TheCompanyis notaNidhiCompanyandhencereportingunderclause(xii)oftheCARO2016Orderisapplicable. xii. Inouropinionandaccordingtotheinformationexplanationsgivenus,Companyhasprovidedmanagerial xi. Tothebestofourknowledgeandaccordingtoinformationexplanationsgivenus,nofraudbyCompany x. TheCompanyhasnotraisedmoneysbywayofinitialpublicofferorfurther(includingdebtinstruments) ix. TheCompany hasnottakenanyloansorborrowingsfromfinancialinstitutions,banksandgovernmentissued viii. convertible debenturesandhencereportingunderclause(xiv)ofCARO2016isnotapplicabletotheCompany. 192 oftheActarenotapplicable. entered intoanynon-cashtransactionswithitsdirectorsorpersons connectedwithhimandhenceprovisionsofsection transactions havebeendisclosedinthefinancialstatementsasrequiredbyapplicableaccountingstandards. 177 and188oftheAct,whereapplicable,foralltransactionswithrelatedpartiesdetailsparty c DetailsofduesSalesTax,ServiceandValueAddedTaxwhichhavenotbeendepositedasonMarch31, (c) V totheAct. remuneration inaccordancewiththerequisiteapprovalsmandatedbyprovisionsofsection197readSchedule and nofraudontheCompanybyitsofficersoremployeeshasbeennoticedreportedduringyear. term loansandhencereportingunderclause(ix)oftheCARO2016Orderisnotapplicable. any debentures.Hencereportingunderclause(viii)ofCARO2016isnotapplicabletotheCompany. nhaPaehValue Added Tax Value Added Andhra Pradesh iac c,19 evc a Central Tax Service Finance Act,1994 Tax Act,2005 a c,15 (including Sales Tax where Forum Tax Act,1956 NatureofDues Central Sales Statute of Name applicable totheCompany. There arenoduesofIncome-tax,CustomsDutyasonMarch31,2016accountdisputes.Excisedutyisnot 2016 onaccountofdisputesaregivenbelow: opinion andaccordingtotheinformationexplanationsgivenusCompanyisincompliancewithSection icuigpnly Service (including penalty) (including penalty) not madeanypreferentialallotmentorprivateplacementofsharesfullypartly penalty) edn h mut(in theamount Dispute ispending Sales Tax Appellate Tribunal Appellate Tribunal Sales Tribunal a pelt 2004-05to Tax Appellate xiead2006-07 Excise and Tax 2009-10 2009-10 2005-06 & 2012-13 relates 2013-14 Period to which Amount Unpaid Amount which to Period For (Firm's RegistrationNo.008072S) to to DELOITTE HASKINS&SELLS DELOITTE GANESH BALAKRISHNAN (Membership No.201193) CharteredAccountants 108,924,169 ` 1,964,650 7,656,660
) Partner 115 26 Annual Report 2015-16 cyient.com A EQUITY ANDLIABILITIES (A) Abridged BalanceSheetasatMarch31,2016 Statement containingsalientfeaturesofBalanceSheetaspersection136(1)theCompaniesAct,2013 Chartered Accountants For In termsofourreportattachedonabridgedfinancialstatements abridged financialstatements See accompanyingnotesformingpartof B ASSETS (B) Ganesh Balakrishnan Partner ae:April21,2016 Date : Place Deloitte Haskins & Sells & Haskins Deloitte Non-current liabilities Share applicationmoneypendingallotment Reserves andsurplus Share capital Shareholders' funds Short-term loansandadvances Cash andbankbalances Current liabilities Trade receivables Trade investments Current Current assets Long-term loansandadvances investments Non-current Other currentassets Deferred taxassets(net) Fixed assets Non-current assets Secunderabad Surplus Long-term provisions Long-term reserves Revenue Equity Trade payables nagbeast ne eeomn 89999 ,4,9,2 899993,118,857,243 8,999,949 2,840,598,325 8,999,949 Intangible assetsunderdevelopment Capital work-in-progress Short-term provisions Short-term Other currentliabilities Intangible assets Intangible assets Tangible small enterprises small Dues tomicroenterprisesand TOTAL TOTAL enterprises micro enterprisesandsmall Dues tocreditorsotherthan
2,802,351,179 9,254,343,038 4,956,259,869 2,584,072,342 1,187,078,250 ,1,6,0 1,3,2,2 563000615,806,092,020 5,683,080,036 16,830,125,929 7,013,366,006 790,478,924 105,950,270 1,885,563,996 777,176,286 2,129,824,729 777,176,286 1,885,563,996 105,950,270
589,479,877 241,206,542 749,279,335 986509 0269436 ,3,8,0 9,719,463,645 1,132,386,202 10,296,994,356 998,625,049 562,416,885 6,319,492 3,055,599 For andonbehalfoftheBoardDirectors Executive Chairman Executive B.V.R. MohanReddy (DIN –00058215) ae:April21,2016 Date Chief FinancialOfficer Ajay Aggarwal lc : Place March 31,2016 Hyderabad As at 19,267 19,267 4,587,229,191 1,485,801,697 550,169,003 56,523,359 1,288,000 ,146,928 ,146,928 2,983,916,788 9,561,206,659 4,424,552,331 2,647,686,377 336,076,496 561,805,325 846,367,698 502,158,865 438,416,490 842,531,828 23,754,427 4,121,880 Managing Director&CEO Company Secretary Company (DIN –05301037) Sudheendhra Putty Krishna Bodanapu Krishna March 31,2015 As at 18,408,511,694 18,408,511,694 4,460,291,860 1,103,974,970 (Amount in 472,594,945 5,923,976 ` - ) 116 26 Annual Report 2015-16 cyient.com ae:April21,2016 Date lc : Place Partner Ganesh Balakrishnan Chartered Accountants For In termsofourreportattachedonabridgedfinancialstatements Tax expense Profit beforetax Exceptional items Profit beforeexceptionalitemsandtax TOTAL EXPENSES EXPENSES INCOME Abridged StatementofProfitandLossfortheyearendedMarch31,2016 Statement containingsalientfeaturesofProfitandLossaspersection136(1)theCompaniesAct,2013 (Equity shares,parvalueof Earnings pershare Profit fortheyear TOTAL INCOME -Diluted -Basic abridged financialstatements See accompanyingnotesformingpartof -Diluted -Basic Weighted averagenumberofequityshares Deloitte Haskins & Sells & Haskins Deloitte Depreciation andamortisationexpense Finance costs Finance Operating, administrationandotherexpenses d Deferred tax(net) (d) MATcreditentitlement (c) Taxpertainingtoearlieryears (b) tax Current (a) Employee benefitsexpense Other income(net) Revenue fromoperations Secunderabad Income fromservices ` 5 each) 5 For andonbehalfoftheBoardDirectors ae:April21,2016 Date lc : Place Chief FinancialOfficer Ajay Aggarwal (DIN –00058215) Chairman Executive B.V.R. MohanReddy Hyderabad o h ereddFortheyearended For theyearended ac 1 06March31,2015 March 31,2016
13,590,558,0 12,455,620,209 10,645,896,181 2,873,032,762 2,944,661,858 2,334,504,308 1,134,937,830 3,652,440,434 6,303,128,894 (45,675,899) (30,312,167) 614,516,520 112,637,613 688,048,943 112,442,098 71,629,096 2,277,910 20.73 20.76 39 - Managing Director&CEO Company Secretary Company (DIN –05301037) Sudheendhra Putty Krishna Bodanapu Krishna 12,940,137,647 10,538,999,835 13,969,460,418 3,430,460,583 3,430,460,583 2,711,589,299 1,029,322,771 3,476,409,497 6,439,413,053 (Amount in 112,182,127 112,578,995 707,603,747 618,053,423 (2,009,229) 11,955,005 5,123,862 1,321,761 24.17 24.09 ` - ) 117 26 Annual Report 2015-16 cyient.com ae:Arl2,21 ae:April21,2016 Date :April21,2016 Date : Place Partner Ganesh Balakrishnan Chartered Accountants For In termsofourreportattachedonabridgedfinancialstatements foreign currencycashandequivalents Effect ofexchangedifferencesontranslation Cash andcashequivalentsatthebeginningofyear Particulars Cash and cash equivalents at the end of the year (Refer Note (i) below) (i) (Refer Note Cash andcashequivalentsattheendofyear Net increase/(decrease)inCashandcashequivalents Net cashflow(usedin)financingactivities Net cash(usedin)investingactivities Net cashflowfromoperatingactivities Abridged CashFlowfortheyearendedMarch31,2016 See accompanyingnotesformingpartofabridgedfinancial statements Statement containingsalientfeaturesofCashFlowaspersection136(1)theCompaniesAct,2013 eoteHsis&SlsForand onbehalfoftheBoardDirectors Sells & Haskins Deloitte i ReconciliationofCashandcashequivalentswiththe (i) Notes: i)Theearmarkedaccountbalanceswithbankscanbeutilisedonlyforthespecificidentifiedpurposes. (ii) Secunderabad Cash andbankbalancesasperBalanceSheet Balance sheet TOTAL Remittancesintransit (c) Balanceswithbanks (b) Cashonhand (a) *Comprises: Cash andcashequivalentsattheendofyear* Less: Inearmarkedaccounts(ReferNote(ii)below) ii Indepositaccounts (iii) InEEFCaccounts (ii) i Incurrentaccounts (i) guarantees Balances heldasmarginmoney/securityforbank Unpaid dividendaccounts jyAgra SudheendhraPutty Secretary Company (DIN–05301037) Managing Director &CEO : Place Bodanapu Krishna Chief FinancialOfficer Ajay Aggarwal (DIN –00058215) Chairman Executive B.V.R. MohanReddy Hyderabad o h ereddFortheyearended For theyearended ac 1 06March31,2015 March 31,2016 (1,599,421,854) 4,916 4,916,338,339 4,916,338,339 4,039,424,129 4,956,259,869 2,578,318,562 4,395,843,117 (762,643,662) 436,827,791 396,156,375 304,242,176 216,253,046
43,695,160 11,852,464 28,069,066 ,338,339 234,884 (3,058,714,406) (1,618,986,919) 4,395,843,117 3,784,520,864 4,424,552,331 5,784,527,366 2,163,501,109 4,395,843,117 4,395,843,117 (723,773,622) (Amount in 313,799,947 297,394,454 230,302,670 21,623,908 7,085,306 127,852 ` - ) 118 26 Annual Report 2015-16 cyient.com .RelatedPartyTransactions 2. CorporateInformation 1. Notes totheabridgedfinancialstatements 2.1 (Refer toNoteNo.29ofthestandalonefinancialstatements) of theBoardDirectorsandShareholdersthroughpostalballot. The CompanychangeditsnamefromInfotechEnterprisesLimitedtoCyientw.e.f.May07,2014postapproval telecommunications, transportation&logistics,localgovernmentandfinancialservicesmarkets. analytics andimplementation.Cyientspecialisesinsoftwareservicessolutionsforthemanufacturing,utilities, engineering, reverseengineeringapplicationsoftwaredevelopment,productsconsulting, photogrammetry, computeraideddesign/engineering(CAD/CAE),designandmodelling,repairdevelopment Germany, Japan,Australia,SingaporeandIndia.Cyient'srangeofservicesincludedigitisationdrawingsmaps, and servesaglobalcustomerbasethroughitssubsidiariesinUnitedStatesofAmerica(USA),Kingdom(UK), in geospatial,engineeringdesignandITsolutions.TheCompanyhasitsheadquartersdevelopmentfacilitiesIndia Cyient Limited('Cyient'or'theCompany')isengagedinprovidingglobaltechnologyservicesandsolutionsspecialising (Refer toNoteNo.1ofthestandalonefinancialstatements) i Duringthepreviousyear,Companyacquired51%stakeinInvatiInsightsPrivateLimitedonOctober15, (i) Note: (Refer Note(viii)below) Cyient Engineering(Beijing)Limited (Refer Note(v)below) Cyient SingaporePrivateLimited ii Duringthepreviousyear, (iii) i)During thepreviousyear,onSeptember05,2014, the Companyincorporatedawhollyownedsubsidiary, (ii) Services PrivateLimited,(IEITS)(Refernote Infotech EnterprisesInformationTechnology Cyient AustraliaPtyLimited(ReferNote(ii)below) Private Limited)(ReferNote(i)below) Cyient InsightsPrivateLimited(formerlyInvati (Refer Note(vii)below) Infotech Geospatial(India)PrivateLimited,(IGIL) Cyient GmbH(formerlyInfotechEnterprises (Refer Note(iii)below) Rangsons ElectronicsPrivateLimited Japan Cyient KK(formerlyInfotechEnterprisesJapanKK) (Refer Note(iv)below) Cyient Inc.,(formerlyInfotechEnterprisesAmericaInc.) (formerly InfotechEnterprisesEuropeLimited) Cyient EuropeLimited Name of the Subsidiary Subsidiaries: List ofrelatedpartiesonwhichtheCompanyisabletoexercisecontrol. 2014. Theacquisitionwasexecutedthroughasharepurchase agreementforaconsiderationof The acquisitionwasexecuted throughasharepurchaseagreementforconsiderationof and itswhollyownedsubsidiary, TechnoToolsPrecisionEngineeringPrivateLimitedonFebruary 04,2015. operations duringtheyear.The Companyinvestedanamountof Cyient AustraliaPtyLimited,inMelbourne,Australia. AustraliaPtyLimitedcommencedcommercial Cyient InsightsPrivateLimited. USA onOctober16,2014.Consequenttotheacquisition, Invati InsightsPrivateLimitedwasrenamedto Subsequent totheacquisition,InvatiInsightsPrivateLimited acquired100%stakeinInvatiInsightsLLC, Company acquired74%stake inRangsonsElectronicsPrivateLimited,India v)blw India (vi) below) mH Germany GmbH) noprto (%) incorporation onr fEtn fhligExtentofholding Extentofholding of Country Singapore Australia China India India India USA UK ` 46,265. ac 1 06March31, 2015 March 31,2016 100% 100% 100% 100% 100% 100% 100% 74% 51% - - as at ` 2,925,310,754. (%) asat ` 100% 100% 100% 100% 100% 100% 100% 87,938,018. 74% 51% - - 119 26 Annual Report 2015-16 cyient.com yetSO zc eulc10 - Extent ofholding Extentofholding 100% of Country Republic Czech Cyient AB(formerlyInfotechEnterprises 100% Extent ofholding Name of the Subsidiary Extentofholding Subsidiary ofCyientGmbH(formerlyInfotechEnterprises GmbH) of Country 100% 49% subsidiary, CyientSROinPrague,CzechRepubliconSeptember 30,2015. *The Company'swholly-ownedsubsidiary,CyientEuropeLimited, UK,incorporatedawholly-ownedstepdown Cyient SRO* 50% Extent ofholding Enterprises GmbH) Extentofholding Cyient SchweizGmbH(formerlyInfotech Canada Enterprises BeneluxBV) 49% Cyient BeneluxBV(formerlyInfotech of Country 50% Extent of holding Name of the Subsidiary Extentofholding Subsidiary ofCyientEuropeLimited(formerlyInfotechEnterprisesLimited): USA of Country Software SolutionsCanadaInc.) Cyient CanadaInc.,(formerlyInfotech India Name of the Subsidiary Subsidiary ofCyientInc.(formerlyInfotechEnterprisesAmericaInc.): Infotech AerospaceServicesInc. holding of Extent holding of Extent Name of the Associate of Country Associate: Infotech HALLimited Name oftheJointVentureCompany Joint Venture: On (viii) TheCompanymergeditswholly-ownedsubsidiaryInfotechGeospatial(India)PrivateLimited,Indiawith (vii) TheCompanydisinvestedits100%stakeinInfotechEnterprisesInformationTechnologyServicesPrivate (vi) OnMay07,2015,theCompanyincorporatedawhollyownedsubsidiary,CyientSingaporePrivateLimited, (v) Duringthepreviousyear,witheffectfromApril01,2014,Companyacquired100%stakeinSoftential (iv) Limited, inBeijing,China,whichhasnotcommencedcommercialoperationsduringtheyear. effect fromApril1,2015. and September15,2015werenotmaterial. financial resultsw.e.fSeptember01,2015forconvenienceasthetransactionsbetween Germany, onSeptember16,2015.TheCompanyceasedtoconsolidatetheseentitiesfromitsconsolidated Limited, Indiaanditswholly-ownedsubsidiary,InfotechEnterprisesInformationTechnologyServicesGmbH, Company investedanamountof in Singapore.CyientSingaporePrivateLimitedcommencedcommercialoperationsduringtheyear.The Inc, mergedwithCyientInc.(formerlyInfotechEnterprisesAmericaInc.)effectfromApril01,2015. Inc, throughitswholly-ownedsubsidiaryCyientInc.(formerlyInfotechEnterprisesAmericaInc.).Softential March 25,2016,theCompanyincorporatedawhollyownedsubsidiary,CyientEngineering(Beijing) ` 238,179,600. B wdn10 100% 100% Sweden AB) noprto (%) incorporation (%) incorporation (%) incorporation (%) incorporation (%) incorporation ehrad 0%100% 100% Netherlands wteln 0%100% 100% Switzerland ac 1 06March31,2015 March 31,2016 March31,2015 March 31,2016 March31,2015 March 31,2016 March31,2015 March 31,2016 March31, 2015 March 31,2016 sa (%)asat as at (%)asat at as sa (%)asat as at (%)asat as at (%)asat as at 120 26 Annual Report 2015-16 cyient.com aeo h usdayCutyo xeto odn Extentofholding Extentofholding of Country Name of the Subsidiary Subsidiary ofRangsonsElectronicsPrivateLimited: Insights, LLCw.e.fNovember18,2015. # Extentofholding Extentofholding of Country Name of the Subsidiary Subsidiary ofInfotechEnterprisesInformationTechnologyServicesPrivateLimited: Limited) acquired100%stakeinInvatiInsightsLLC,USA. *During thepreviousyear,onOctober16,2014,CyientInsightsPrivateLimited(formerlyInvati Techno ToolsPrecisionEngineeringPrivate Name of the Subsidiary Country of Nature of Nature Wholetimedirector(UptoApril,2014) Designation of Country Chairman Executive Sucharitha B B VRMohanReddy Name Key ManagerialPersonnel: Charitable Trust) Cyient Foundation(formerlyInfotechEnterprises Name oftheSubsidiary Other relatedparty: Limited anditswhollyownedsubsidiary,TechnoToolsPrecisionEngineeringPrivateLimited. * Duringthepreviousyear,onFebruary04,2015,Companyacquired74%stakeinRangsonsElectronicsPrivate .AhkRdyPresident-CorporateAffairs ChiefFinancialOfficer ManagingDirector &CEO B. Ashok Reddy Relative ofExecutiveChairmanandManagingDirector&CEO Aggarwal Ajay Bodanapu Krishna Name of the Subsidiary Subsidiary ofCyientInsightsPrivateLimited(formerlyInvatiLimited): Information TechnologyServicesPrivateLimited. Information TechnologyServicesGmbH,Germanythroughitswhollyownedsubsidiary,InfotechEnterprises *During thepreviousyear,onMarch23,2015,Companyacquired100%stakeinInfotechEnterprises Services GmbH*(ReferNote 2.1(vi)) Infotech EnterprisesInformationTechnology Cyient InsightsLLC*(formerlyInvatiLLC) Invati InsightsLLC,USA(awhollyownedsubsidiaryofCyientPrivateLimited,India)wasrenamedas iie India Limited * (Ceased tobeadirectorw.e.f17thJuly2014) # noprto (%) incorporation noprto (%) incorporation noprto (%) incorporation onr fEtn fhligExtentofholding Extentofholding of Country Germany USA ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 noprto relationship incorporation ni Controlledtrust India 51% 4 74% 74% - sa (%)asat as at sa (%)asat as at as at (%) asat 100% 51% 121 26 Annual Report 2015-16 cyient.com . Summaryofthetransactionsandbalanceswithaboverelatedpartiesareasfollows: 2.2 charges Subcontracting emusmn fCyientInc.(formerlyInfotech Expenses of Reimbursement Nature of the Party name For the For the For the For name Party Revenue transaction Nature ofthe Transactionsduringtheyear: (a) Enterprises BeneluxBV) Cyient BeneluxBV(formerlyInfotech Enterprises EuropeLimited) Cyient EuropeLimited(formerlyInfotech Enterprises AmericaInc.) Cyient Inc.(formerlyInfotech Cyient AustraliaPtyLimited Infotech HALLimited (Refer Note2.1(vii)) Infotech Geospatial(India)PrivateLimited Software SolutionsCanadaInc.) Cyient CanadaInc.(formerlyInfotech Cyient AB(formerlyInfotechEnterprises v) (Refer Note2.1(vi)) Services PrivateLimited Infotech EnterprisesInformationTechnology (formerly InvatiInsightsPrivateLimited) Cyient InsightsPrivateLimited (Refer Note2.1(vii)) Infotech Geospatial(India)PrivateLimited Software SolutionsCanada Cyient CanadaInc.(formerlyInfotech Cyient AB(formerlyInfotech Enterprises AB) Cyient KK(formerlyInfotechEnterprisesJapanKK) Cyient GmbH(formerlyInfotechEnterprisesGmbH) Cyient KK(formerlyInfotechEnterprisesJapanKK) Cyient GmbH(formerlyInfotechEnterprisesGmbH) (Refer Note2.1(vii)) Infotech Geospatial(India)Private Limited Software SolutionsCanadaInc.) Cyient CanadaInc.(formerlyInfotech Cyient AB(formerlyInfotechEnterprises Enterprises GmbH) Cyient GmbH(formerlyInfotech Enterprises BeneluxBV) Cyient BeneluxBV(FormerlyInfotech Infotech EnterprisesEuropeLimited) Cyient EuropeLimited(formerly Enterprises AmericaInc.) Enterprises GmbH) Cyient SchweizGmbH(formerlyInfotech Enterprises BeneluxBV) Cyient BeneluxBV(formerlyInfotech Enterprises EuropeLimited) Cyient EuropeLimited(formerlyInfotech America Inc.)(ReferNote2.1(iv)) Cyient Inc.(formerlyInfotechEnterprises Inc.) B AB) AB) ac 1 06March31,2015 March 31,2016 ,9,5,0 3,011,235,005 3,090,853,509 150,086,015 117,040,455 584,640,906 277,914,544 956,628,383 260,180,558 ereddyearended year ended 6,7,6 329,424,657 264,878,667 174,381,024 19,486,078 15,054,070 11,981,928 1733815,604,731 11,743,358 5097756,777,709 45,049,727 2825926,759,321 52,822,509 5123155,293,485 65,112,371 36,275,271 6,431,067 5,367,600 7,876,166 5,947,258 7,869,305 7,631,301
260,841 -11,704,655 - - - - - 1,081,549,687 (Amount in 114,201,113 119,879,611 149,465,507 257,232,214 683,794,337 17,784,436 19,686,196 11,307,678 5,837,288 7,476,291 9,602,853 1,880,238 8,346,347 3,312,163 2,717,003 4,366,367 821,959 10,000 ` ) - 122 26 Annual Report 2015-16 cyient.com relative ofKMP's aeo se oB Sale ofassetto iiedt M' B V Dividend toKMP's # # Subsidiaries Disposal of dac ie InfotechGeospatial(India)PrivateLimited (recovered) Advance given / oprt urne Rangsons guarantee Corporate transaction Transactions duringtheyear Nature of the Party name Party Nature ofthe Loans given Loans S xedtr CyientFoundation(formerly Infotech Infotech HAL Expenditure CSR Other Income from loantoKMP ie osbiir' CyientInc.(formerlyInfotechEnterprises bankers given tosubsidiary's on eoee Infotech HAL Limited Private Insights Cyient Interest onLoansgiven Loans Recovered eueaint e B V Managerial Personnel Remuneration toKey B Ashok Interest recovered B by KMP Repayment ofLoan netet nCyientInsightsPrivateLimited Subsidiaries in Investments Commitments indemnity claim,definedbytheshare purchaseagreement. 2 Doesnotincludeprovisionforcompensated absences. 1 Adjustedforanamountof #2 (Refer Ajay Aggarwal Krishna Bodanapu B Sucharitha B AshokReddy Ajay Aggarwal Krishna Bodanapu Cyient AustraliaPty Cyient SingaporePrivate Limited Infotech HALLimi Cyient KK(formerlyInfotechEnterprisesJapanKK) B Sucharitha(ReferNote2.1) (Refer Note2.1(vi)) Technology ServicesPrivateLimited (Refer Note2.1(vi)) Technology ServicesPrivateLimited Infotech EnterprisesInformation Rangsons ElectronicsPrivate Limited Limited) (formerly InvatiInsightsPrivate Cyient InsightsPrivateLimited Charitable Trust) Infotech EnterprisesInformation Rangsons ElectronicsPrivateLimited Cyient SingaporePrivate Limited America Inc.) Rangsons ElectronicsPrivate Limited Limited) (formerly InvatiInsightsPrivate (formerly InvatiInsightsPrivate Financial supporttoasubsidiary Cyient InsightsPrivateLimited ` Ashok Reddy Ashok Reddy
67,588,534 receivedfromthepromoters ofRangsonsElectronicsPrivateLimited,bywayan R MohanReddy R MohanReddy (Contd.) Note 2.1(vii)) Reddy Electronics PrivateLimited Limited Limited ted Limited Limited) #1 ac 1 06March31,2015 March 31,2016 3,210,300,000 ereddyearended year ended 6,8,3)2,925,310,754 (67,588,534) 7,3,8 87,584,196 175,238,480 238,179,600 150,000,000 0,1,4 688,498,800 636,795,840 401,314,045 2291011,104,560 39,247,200 22,209,120 78,494,400 2991312,914,163 35,227,616 10,135,515 12,949,163 65,061,685 10160(20,591,059) 31,071,690 6665226,000,000 36,686,522 1639156,751,883 51,663,911 7574135,118,562 47,567,491 For the For ,3,8 (10,856,459) 5,930,883 3,294,667 1,717,808 4,349,520 3,947,622 (100,000) 426,693 727,644 46,265 4,367 1,200 1,203 - - - - - (Amount in 479,323,840 For the For 87,938,018 9,770,693 2,812,500 2,898,094 2,091,747 (227,888) 121,176 417,489 727,644 25,800 12,048 ` ) ------123 26 Annual Report 2015-16 cyient.com b Balancesattheyear-end: (b) nildRvneCyientInc.(formerlyInfotech Revenue Unbilled rd aalsCyientInc.(formerlyInfotech payables Trade aac March As at As at CyientInc.(formerly InfotechEnterprises name Party Receivables Trade Balance Nature ofthe (Refer Note2.1(vii)) Infotech Geospatial(India)PrivateLimited Software SolutionsCanadaInc.) Cyient CanadaInc.(formerlyInfotech Cyient AB(formerlyInfotechEnterprises Cyient SingaporePrivate Limited Rangsons ElectronicsPrivate Limited Invati InsightsPrivateLimited) Cyient InsightsPrivateLimited(formerly Enterprises GmbH) Cyient GmbH(formerlyInfotech Cyient AB(formerlyInfotech Enterprises AB) Infotech EnterprisesGmbH) Cyient SchweizGmbH(formerly Enterprises BeneluxBV) Cyient BeneluxBV(formerlyInfotech Infotech EnterprisesEuropeLimited) Cyient EuropeLimited(formerly Enterprises AmericaInc.) Enterprises GmbH) Cyient GmbH(formerlyInfotech Infotech EnterprisesGmbH) Cyient SchweizGmbH(formerly (formerly InvatiInsightsPrivate Cyient InsightsPrivateLimited Cyient KK(formerlyInfotechEnterprises JapanKK) Cyient AustraliaPty Cyient KK(formerlyInfotechEnterprisesJapanKK) Cyient KK(formerlyInfotechEnterprisesJapanKK) Enterprises BeneluxBV) Cyient BeneluxBV(formerlyInfotech Enterprises EuropeLimited) Cyient EuropeLimited(formerlyInfotech Enterprises AmericaInc.)(ReferNote Cyient AustraliaPtyLimited Infotech HALLimited 2.1 (vi)) Services PrivateLimited(ReferNote Infotech EnterprisesInformationTechnology Enterprises BeneluxBV) Cyient BeneluxBV(formerlyInfotech Enterprises EuropeLimited) Cyient EuropeLimited(formerlyInfotech America Inc.)(ReferNote 2.1 (iv)) Enterprises GmbH) Cyient GmbH(formerlyInfotech Limited Limited) . i) 1,9,3 90,694,598 319,691,137 2.1 (iv)) B 92,610,159 AB) 228,766,976
160,795,725 1,7,9 69,311,851 117,576,591 548,874,844 101,592,155 76,960,788
18,298,529 8196987,400,279 98,109,679 17,465,863 19,914,920 32,975,555 154,975,887 98,811,802 8399017,427,346 38,379,970 33,521,802 24,433,190 27,551,532 26,897,557 49,267,351 59,823,016 21,191,187 3,377,849 485,423 792,081 1 06March31,2015 31, 2016 1,387 -13,151,351 - -
- -
(Amount in 199,190,355 395,602,017 343,120,321 98,919,137 48,250,373 81,965,489 96,377,382 14,983,950 2,970,585 3,602,715 1,795,478 311,306 251,352 ` ------) 124 26 Annual Report 2015-16 cyient.com .EarningsPerShare(EPS) 3. Weighted averagesharesoutstanding Number ofsharesoutstandingatthe year end Basic: Earnings PerShare( outstanding (includingdilution) Weighted averagenumberof equity shares options outstanding Effect ofpotentialequityshares onemployeestock Diluted: Profit AfterTax( Particulars (Refer toNoteNo.31ofthestandalonefinancialstatements) Balancesat (b) Earnings PerShare( ie osbiir' America CyientInc.(formerlyInfotechEnterprises given tosubsidiary's guarantee Corporate aac March As at As at bankers name Party Balance Nature ofthe Commitments usadn on CyientInsightsPrivateLimited(formerlyInvati loans Outstanding subsidiaries to Advance usadn on Invati Insights Private outstanding loans Interest on aal oKPKrishna BVR payable toKMP Balance Outstanding ` the year-end: ) ` ` ) ) Infotech HAL Limited Solutions CanadaInc.) Cyient CanadaInc.(formerlyInfotechSoftware Services Private Limited (Refer Note 2.1 (vi)) Services PrivateLimited(ReferNote Infotech EnterprisesInformationTechnology Cyient SingaporePrivate Limited Rangsons ElectronicPrivateLimited (Refer Note2.1(vii)) Infotech Geospatial(India)PrivateLimited Enterprises GmbH) Cyient GmbH(formerlyInfotech Enterprises EuropeLimited) Cyient EuropeLimited(formerlyInfotech Infotech HAL Limited Financial supporttoasubsidiarycompany Rangsons ElectronicsPrivate Limited B AshokReddy Insights PrivateLimited) 2.1 (vi)) Services PrivateLimited(ReferNote Infotech EnterprisesInformationTechnology (Refer Note2.1(vii)) Infotech Geospatial(India)PrivateLimited Japan KK) Rangsons ElectronicPrivateLimited Cyient InsightsPrivateLimited(formerly Cyient KK(formerlyInfotechEnterprises (Contd.) Mohan Reddy Bodanapu Inc.) Limited) ac 1 06March31,2015 March 31,2016 ereddYearended Year ended 2,334,504,308 112,637,613 112,442,098 112,483,377 195,515 3,210,300,000 1,462,640,445 20.73 20.76 621,827,440 297,045,760 166,888,676 330,420,200 171,634,201 3,7,5 479,323,840 533,178,050 150,000,000 82,613,278 113,684,968 10,809,457 2665226,000,000 62,686,522 8711817,528,507 35,057,014 28,761,178 28,761,178 8,331,287 1,717,808 4,767,009 295,856 1 06March31,2015 31, 2016 - - - 40,000,000 - 31,347,462 -
2,711,589,299 1,001,452,800
(Amount in (Amount in
112,578,995 112,182,127 112,361,065 3,677,283 3,631,158 4,383,665 396,868 426,693 417,489 24.09 24.17 ` ` ) ------) 125 26 Annual Report 2015-16 cyient.com .StockOptionPlans 5. SegmentInformation 4. .ContingentLiabilitiesandCommitments 6. .TheCompanyhasdisputed variousdemands(includingdraftnoticeofdemand)raisedbyIncomeTaxauthorities a. Guarantees(ReferNote (ii) (Accounts) Rules,2014. (AS 17)onSegmentReportingspecifiedunderSection133oftheCompaniesAct,2013,readwithRule7 Segment informationhasbeenpresentedintheConsolidatedFinancialStatementsaspermittedbyAccountingStandard (Refer toNoteNo.28ofthestandalonefinancialstatements) i ClaimsagainsttheCompanynotacknowledged asdebt (i) (Refer toNoteNo.21ofthestandalonefinancialstatements) the stockexchanges.Undersaidscheme,1,200,000equitysharesof by themembersofCompanyattheirmeetingheldonJuly16,2015.hasgotin-principleapprovalfrom The CompanyinstitutedAssociateStockOptionPlan2015foralleligibleemployeesinpursuanceoftheresolutionpassed Associate StockOptionPlan-2015(ASOP2015) ASOP 2008 ASOP 2004 ASOP 2002 In 1998-99,theCompanysetupESOPplanandallotted80,900equitysharesof Infotech EmployeeStockOfferScheme1999(ESOPPlan) (Refer toNoteNo.35ofthestandalonefinancialstatements) otnetlaiiis(oteetn o rvddfr ac 1 06March 31, 2015 March 31, 2016 Contingent liabilities(totheextentnotprovidedfor) Plan Options Outstanding: 30% attheendofthirdyear. end ofthefirstyear,15%atoneandhalfyears,20%aftertwo25%years grant. Theseoptionsvestoveraperiodrangingfromonetothreeyearsthedateofgrant,startingwith10%at options willbeissuedtoemployeesatanexercisepricewhichshallnotlessthanthemarketondateof The CompanycurrentlyhasthreeASOPplans-2002,2004and2008.Undereachoftheseschemes, Associate StockOptionPlans(ASOPPlan) 2006-07 and2010-11respectively. the numberofoptionsandexercisepriceonaccountbonusissuestocksplitcumduring2002-03, transfers theequitysharesinnameofselectedemployees.TheCompanymodifiedESOPPlanandadjusted share totheInfotechESOPtrust.Thetrustonrecommendationofmanagementanduponreceiptfullpaymentupfront yet tobegrantedeligibleemployees. .TheCompanyhasdisputedvariousdemandsraised bytheServiceTaxauthoritiesforfinancialyears 2006-07 c. TheCompanyhasdisputedvariousdemandsraisedbytheSalesTaxauthoritiesfor financialyears2004-05to b. various stagesofappeals.Theaggregateamountdisputed taxnotprovidedforis for theassessmentyears1997-98to2010-11(March31,2015 -1997-98to2010-11).Theordersarependingat (Refer Note(a),(b),(c),(d)&(e)below) - to 2013-14(March31,2015-2006-07 to2012-13).TheCompanyhasfiledappeals,which arependingwiththe include showcausenoticesreceived bytheCompany. 2015 - with theappropriateauthorities. Theaggregateamountofdisputedtaxnotprovidedforis 2009-10 and2012-13(March31,20152004-05to2009-10). TheCompanyhasfiledappeals,whicharepending ` 138,351,334).TheCompanyisconfidentthattheseappeals willbedecidedinitsfavour. ` 20,096,061). TheCompanyisconfident thattheseappealswillbedecidedinitsfavour.Theabove does not (f) below) ac 1 06March31,2015 March 31,2016 ` As at As at 5,796,822,286 5eachhavebeenearmarked.Theoptionsare 433,959,229 318,750 ` 10 eachatapremiumof –– –– ` 155,897,185(March31,2015 ` 20,098,231(March31, As at As at 1,505,387,236 (Amount in 356,391,935 ` 637,383 100 per 100 ` ) 126 26 Annual Report 2015-16 cyient.com .Cash&BankBalances: 7. .Duringthepreviousyear,CompanyreceivedanorderfromProvidentFund(PF)authoritiesregardingPFpayment d. Cash FlowStatement and cashequivalentsasperAccounting Standard-3 Of theabove,balancesthatmeet thedefinitionofcash TOTAL Remittance intransit In earmarkedaccounts Balance withbanks Cash onhand The detailsofcashandbankbalancesattheyearendareasfollows: (Refer toNoteNo.14ofthestandalonefinancialstatements) i) Commitments: i)Duringthepreviousyear,Companyacquired74%ofsharecapitalRangsonsElectronicsPrivateLimited iii) i Financialsupporttoa ii) Particulars Particulars .TheGovernmentofIndianotifiedanamendmenttothePaymentBonusAct,1961wherebyapplicableslabs e. .Corporateguaranteegiventosubsidiary'sbankersobtainlineofcredit f. ` appealed againsttheorderandsameispendingbeforeProvidentFundAppellateTribunal.TheCompanypaid on certainallowancesgivenbytheCompanytoitsemployeesforyears2010-112012-13.The include showcausenoticesreceivedbytheCompany. ` appropriate authorities.Theaggregateamountofdisputedtaxnotprovidedforis Intangible assets(Refer Note below) Tangible assets capital accountandnotprovidedfor(netofadvances) Estimated amountofcontractsremainingtobeexecutedon (Refer Noteii for bankguarantees In depositsheldasmarginmoney/security Unpaid dividendaccount In depositsaccounts(ReferNoteibelow) In EEFCaccounts In currentaccounts 31, 2015- the custodian. the acquisition.ThesebalancesharesarecurrentlyplacedinanEscrowaccountwitharegisteredescrowagentas Company hasanoptiontoacquirethebalance26%ofsharecapital,onorbeforesevenyearsfromdate on February4,2015(ReferNote2.1(iii)).AccordingtoconditionsstipulatedintheInvestmentAgreement, Note: Commitmenttowardsintangibleassetsincludesoftwareandrelatedpurchases pertaining tothefinancialyear2014-15,notprovidedfor,is Judicature atHyderabadforthestatesofTelanganaandAndhraPradesh.Theaggregateamountliability contested theretrospectiveapplicabilityofamendmentforfinancialyear2014-15inHighCourt as wellcoveragelimitwasenhanced.ThesaidamendmentmadeeffectiveApril1,2014.Companyhas ` 5,136,244(March31,2015- 1,505,387,236). 172,263,324).TheCompanyisconfidentthattheseappealswillbedecidedinitsfavour.abovedoesnot ` 25,681,216). below) subsidiary Company ` 5,136,244)underprotest,being20%ofthetotaldemand ` 92,177,948. ac 1 06March31,2015 March 31,2016 March31,2015 March 31,2016 4,916,338,339 As at As at 4,956,259,869 ,3,2,2 3,784,520,864 4,039,424,129 139,524,000 9,5,7 297,394,454 313,799,947 396,156,375 436,827,791 533,178,050 0349549,137,538 60,324,945 43,695,160 11,852,464 28,069,066 3,8 127,852 234,884 ` 5,796,822,286(March31,2015- ` 140,104,649(March31,2015- ` 25,681,216(March As at As at 4,395,843,117 4,424,552,331 (Amount in (Amount in 479,323,840 21,623,908 21,326,862 7,085,306 ` ` ) - ) 127 26 Annual Report 2015-16 cyient.com 0 Amalgamation: 10. Employeebenefitsexpense 9. BookvalueandMarketValueofQuotedInvestments: 8. TOTAL Staff welfareexpen Gratuity Social securityandotherbenefits for overseasemployees Particulars filing ofrelevantdocumentswithRegistrarCompanies. issued toeffecttheAmalgamation.IncreaseinAuthorisedsharecapitalofCompanyonamalgamationispending Infotech Geospatial(India)PrivateLimitedwasawhollyownedsubsidiaryoftheCompany,noadditionalshareswere - 14.Accordingly,theassets,liabilitiesandreserveshavebeentakenoverattheirbookvaluesinsameform.As The amalgamationhasbeenaccountedforunderthe"PoolingofInterests"methodasprescribedbyAccountingStandard all theAssets,LiabilitiesandReservesstandtransferredvestedinCompanyretrospectivelyfromApril1,2015. Telangana videitsorderdatedMarch02,2016andfiledwithRegistrarofCompanieson31,2016.Consequently Date") pursuanttoSchemeofAmalgamationapprovedbytheHon'bleHighCourtJudicature,AndhraPradesh& Infotech EnterprisesLimited)("theCompany")wasamalgamatedwiththeCompanyw.e.f.April1,2015("Appointed During theyear,InfotechGeospatial(India)PrivateLimited(IGIL),awhollyownedsubsidiaryofCyient(formerly (Refer toNoteNo.40ofthestandalonefinancialstatements) Contribution toprovident and otherfunds Salaries andbonus Particulars (Refer toNoteNo.18ofthestandalonefinancialstatements) Aggregate marketvalueof quoted investments investments Aggregate costofquoted Particulars (Refer toNoteNo.12ofthestandalonefinancialstatements) Note: te urn ses65,154 5,973,589 2,974,798 740,368 Other currentassets Short-term loansandadvances Cash andcashequivalents Trade receivables Current Assets Net currentassets Long-term loansandadvances Deferred Tax Fixed assets Value ofassetsandliabilitiesamalgamated: i Balanceswithbanksincludedepositsamountingto (i) i)Includesdepositsplacedinlienforcreditfacilitiesaggregating (ii) monies amountingto and marginmoniesamounting than 12monthsfromtheBalanceSheetDate. ses ` 6,231,438(March31,2015- ` 6,231,438(March31,2015- ` 1,991,241(March31,2015- ` 1,414,970)whichhaveanoriginalmaturityofmore ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ereddYear ended Year ended ` As at 6,303,128,894 ,6,7,9 5,622,608,015 5,560,975,494 1,414,970). ` 9,6,6 336,079,777 336,076,496 790,566,064 790,478,924 305,538,628 277,791,922 21,837,628(March31,2015- 87,309,917 71,512,933 ` 1,663,581)andmargin March 31,2016 `` As at As at 6,439,413,053 (Amount in (Amount in ` 158,581,848 274,907,886 308,258,207 20,212,938) 75,057,097 12,200,751 7,122,137 4,923,484 (Contd.) ` ` ) ) 128 26 Annual Report 2015-16 cyient.com 3 ExceptionalItem 13. 2 Depreciation&amortisation 12. ofInvestmentinInfotechEnterprisesInformationTechnologyServicesPrivateLimited Disposal 11. 4 CorporateSocialResponsibility(CSR) 14. 5 Regrouping/Reclassification 15. ae:Arl2,21 ae:April21,2016 Date :April21,2016 Date lc : Place Less : Carrying value of investments in the Company 43,600,000 * CapitalReservehasbeenadjustedtothegeneralreserveofCompanyonamalgamationasatAppointedDate. Difference consideredascapitalreserve* Less :CarryingvalueofinvestmentsintheCompany TOTAL P&L Account General reserve Long-term provisions Particulars consequent tothechangeinusefullifeofassets. The depreciationexpenseintheStatementofProfitandLossforyearendedMarch31,2015waslowerby Reserves andSurplus. (5,376,720) (net ofdeferredtax remaining usefullifeoftheassetwasdeterminedtobeNilasonApril1,2014,andhasadjustedanamount Companies Act,2013,theCompanyhasfullydepreciatedcarryingvalueofassets,netresidualvalue,where During thepreviousyearendedMarch31,2015,pursuanttotransitionprovisionsprescribedinScheduleII (Refer toNoteNo.41ofthestandalonefinancialstatements) 16, 2015.Anamountof and itswholly-ownedsubsidiary,InfotechEnterprisesInformationTechnologyServicesGmbH,Germany,onSeptember The Companydisinvestedits100%stakeinInfotechEnterprisesInformationTechnologyServicesPrivateLimited,India, (Refer toNoteNo.39ofthestandalonefinancialsstatements) Short-term provisions Other currentliabilities Trade payables Current Liabilities Value ofassetsandliabilitiesamalgamated: to Exceptional itemrelatestoprovisionmadetowardsbonuspayablefortheperiodofAprilDecember2015amounting (Refer toNoteNo.43ofthestandalonefinancialstatements) on SaleofLong-terminvestment. (Amendment) Act,2015).Theliabilityfortheyear2014-15hasbeendisclosedasacontingentliability. 'Operating, administrationandotherexpenses'- other socialprojects.ExpensesincurredonCSRactivities arechargedtotheStatementofProfitandLossunder been formedbytheCompany.TheareasforCSRactivities are promotingeducation,adoptionofschools,medicaland (formerly InfotechEnterprisesCharitableTrust).AsperSection135oftheCompaniesAct,2013,aCSRcommitteehas The CompanycontributestowardsCorporateSocialResponsibility(CSR)activitiesthroughitstrust,CyientFoundation (Refer toNoteNo.38ofthestandalonefinancialstatements) classification /disclosures. Previous year'sfigureshavebeenregrouped/reclassifiedwherever necessarytocorrespondwiththecurrentyear's (Refer tonoteNo.45ofthestandalonefinancialstatements) Secunderabad ` 71,629,096 consequenttotheamendmentPaymentofBonusAct,1965(i.e ` ` 5,716,126)againsttheopeningSurplusbalanceinStatementofProfitandLossunder 98,184,877,beingexcessofsaleconsiderationovertheinvestment,wasrecognisedasProfit ` 47,567,491(2014-15- jyAgra SudheendhraPutty Secretary Company (DIN–05301037) Managing Director &CEO : Place Bodanapu Krishna Chief FinancialOfficer Ajay Aggarwal (DIN –00058215) Chairman Executive B.V.R. MohanReddy For andonbehalfoftheBoardDirectors Hyderabad ` 35,118,562) (44,733,368) (65,138) March 31,2016 `` As at (40,421,317) (3,600,000) ` ` 56,796,389 40,000,000 11,314,383 52,919,089 (246,486) (374,958) 129 26 Annual Report 2015-16 cyient.com statements of Report ontheConsolidatedFinancialStatements CYIENT LIMITED TO THEMEMBERSOF INDEPENDENT AUDITORS'REPORT provisions oftheAct,accounting andauditingstandards conducting theaudit,wehave takenintoaccountthe consolidated financialstatements basedonouraudit.While Our responsibilityistoexpressanopiniononthese Auditor's Responsibility Holding Company,asaforesaid. consolidated financialstatementsbytheDirectorsof been usedforthepurposeofpreparation misstatement, whetherduetofraudorerror,whichhave that giveatrueandfairviewarefreefrommaterial preparation andpresentationofthefinancialstatements and completenessoftheaccountingrecords,relevantto that wereoperatingeffectivelyforensuringtheaccuracy and maintenanceofadequateinternalfinancialcontrols, are reasonableandprudent;thedesign,implementation accounting policies;makingjudgmentsandestimatesthat irregularities; theselectionandapplicationofappropriate Group andforpreventingdetectingfraudsother provisions oftheActforsafeguardingassets adequate accountingrecordsinaccordancewiththe jointly controlledentityareresponsibleformaintenanceof companies includedintheGroupandofitsassociate Act, asapplicable.TherespectiveBoardofDirectorsthe Accounting StandardsprescribedunderSection133ofthe principles generallyacceptedinIndia,includingthe controlled entityinaccordancewiththeaccounting flows oftheGroupincludingitsAssociateandJointly consolidated financialperformanceandcash true andfairviewoftheconsolidatedfinancialposition, Act, 2013(hereinafterreferredtoas"theAct")thatgivea statements intermsoftherequirementsCompanies for thepreparationoftheseconsolidatedfinancial The HoldingCompany'sBoardofDirectorsisresponsible Financial Statements Management's ResponsibilityfortheConsolidated as "theconsolidatedfinancialstatements"). and otherexplanatoryinformation(hereinafterreferredto ended, andasummaryofthesignificantaccountingpolicies the ConsolidatedCashFlowStatementforyearthen 31, 2016,theConsolidatedStatementofProfitandLoss, comprising oftheConsolidatedBalanceSheetasatMarch Group") itsassociateandjointlycontrolledentity, Company anditssubsidiariestogetherreferredtoas"the Holding Company")anditssubsidiaries(the ENTERPRISES LIMITED We haveauditedtheaccompanyingconsolidatedfinancial CYIENT LIMITED (formerly InfotechEnterprisesLimited) )(hereinafter referredtoas"the (formerly INFOTECH March 31,2016,totalrevenuesof statements reflecttotalassetsof subsidiaries, andajointlycontrolledentity,whosefinancial We didnotauditthefinancialstatementsoffifteen Other Matters date. their consolidatedcashflowsfortheyearendedonthat entity asatMarch31,2016,andtheirconsolidatedprofit affairs oftheGroup,itsassociateandjointlycontrolled generally acceptedinIndia,oftheconsolidatedstate and fairviewinconformitywiththeaccountingprinciples required bytheActinmannersoandgiveatrue consolidated financialstatementsgivetheinformation according totheexplanationsgivenus,aforesaid In ouropinionandtothebestofinformation Opinion financial statements. provide abasisforourauditopinionontheconsolidated Matters paragraphbelow,issufficientandappropriateto their reportsreferredtoinsub-paragraph(a)oftheOther audit evidenceobtainedbytheotherauditorsintermsof We believethattheauditevidenceobtainedbyusand the consolidatedfinancialstatements. Directors, aswellevaluatingtheoverallpresentationof estimates madebytheHoldingCompany'sBoardof policies usedandthereasonablenessofaccounting includes evaluatingtheappropriatenessofaccounting that areappropriateinthecircumstances.Anauditalso give atrueandfairviewinordertodesignauditprocedures preparation oftheconsolidatedfinancialstatementsthat internal financialcontrolrelevanttotheHoldingCompany's making thoseriskassessments,theauditorconsiders financial statements,whetherduetofraudorerror.In of therisksmaterialmisstatementconsolidated depend ontheauditor'sjudgment,includingassessment consolidated financialstatements.Theproceduresselected evidence abouttheamountsanddisclosuresin An auditinvolvesperformingprocedurestoobtain financial statementsarefreefrommaterialmisstatement. reasonable assuranceaboutwhethertheconsolidated requirements andplanperformtheaudittoobtain Those Standardsrequirethatwecomplywithethical on AuditingspecifiedunderSection143(10)oftheAct. We conductedourauditinaccordancewiththeStandards thereunder. report undertheprovisionsofActandRulesmade and matterswhicharerequiredtobeincludedintheaudit statements. Theconsolidated financialstatementsalso on thatdate,asconsideredin theconsolidatedfinancial cash flowsamountingto `
414,440,363 fortheyearended ` 9,380,005,156andnet ` 7,270,070,544asat 130 26 Annual Report 2015-16 cyient.com .AsrequiredbySection143(3) oftheAct,wereport,to 1. Report onOtherLegalandRegulatoryRequirements the otherauditors. respect toourrelianceontheworkdoneandreportsof below isnotmodifiedinrespectoftheabovematterswith our reportonOtherLegalandRegulatoryRequirements Our opinionontheconsolidatedfinancialstatements,and reports oftheotherauditors. jointly controlledentityandassociate,isbasedsolelyonthe and disclosuresincludedinrespectofthesesubsidiaries, financial statements,insofarasitrelatestotheamounts by theManagementandouropiniononconsolidated by otherauditorswhosereportshavebeenfurnishedtous audited byus.Thesefinancialstatementshavebeen associate, whosefinancialstatementshavenotbeen consolidated financialstatements,inrespectofan the yearendedMarch31,2016,asconsideredin include theGroup'sshareofnetprofit )Onthebasisofwrittenrepresentations e) Inouropinion,the aforesaidconsolidatedfinancial d) TheConsolidatedBalanceSheet,the c) Inouropinion,properbooksofaccountas b) Wehavesoughtandobtainedalltheinformation a) the extentapplicable,that: company incorporatedinIndia, noneofthe subsidiary companiesandjointlycontrolled and thereportsofstatutoryauditorsits by theBoardofDirectorsHoldingCompany Company asonMarch31,2016takenrecord received fromthedirectorsofHolding Act, asapplicable. Standards prescribedunderSection133ofthe statements complywiththeAccounting statements. preparation oftheconsolidatedfinancial books ofaccountmaintainedforthepurpose by thisReportareinagreementwiththerelevant the ConsolidatedCashFlowStatementdealtwith Consolidated StatementofProfitandLoss, other auditors. examination ofthosebooksandthereports been keptsofarasitappearsfromour aforesaid consolidatedfinancialstatementshave required bylawrelatingtopreparationofthe consolidated financialstatements. purposes ofouraudittheaforesaid knowledge andbeliefwerenecessaryforthe and explanationswhichtothebestofour ` 120,324,634for EUDRBDPartner 201193) No. (Membership April 21,2016 SECUNDERABAD )Withrespecttotheothermattersbeincluded g) Withrespecttotheadequacyofinternal f) iii. TheGroup,itsassociateandjointly ii. Theconsolidatedfinancialstatements i. given tous: information andaccordingtotheexplanations 2014, inouropinionandtothebestof of theCompanies(AuditandAuditor's)Rules, in theAuditor'sReportaccordancewithRule11 jointly controlledcompanyincorporatedinIndia Holding company,subsidiarycompaniesand financial controlsoverreportingofthe and operatingeffectivenessoftheinternal expresses anunmodifiedopinionontheadequacy company incorporatedinIndia.Ourreport subsidiary companiesandjointlycontrolled auditors' reportsoftheHoldingcompany, our Reportin"AnnexureA",whichisbasedonthe operating effectivenessofsuchcontrols,referto financial controlsoverreportingandthe of theAct. appointed asadirectorintermsofSection164(2) disqualified asonMarch31,2016frombeing controlled companyincorporatedinIndiais directors oftheGroupcompaniesandjointly controlled entityincorporatedinIndia. companies, associatecompanyandjointly the HoldingCompanyanditssubsidiary Investor EducationandProtectionFundby amounts, requiredtobetransferred,the There hasbeennodelayintransferring 33 totheconsolidatedfinancialstatements. including derivativecontracts-ReferNote foreseeable lossesonlong-termcontracts controlled entitydidnothaveanymaterial consolidated financialstatements. entity -ReferNote31.1(i)tothe Group, itsassociateandjointlycontrolled the consolidatedfinancialpositionof disclose theimpactofpendinglitigationson For (Firm's RegistrationNo.008072S) DELOITTE HASKINS&SELLS GANESH BALAKRISHNAN CharteredAccountants 131 26 Annual Report 2015-16 cyient.com evidence abouttheadequacy oftheinternalfinancial Our auditinvolvesperforming procedurestoobtainaudit operated effectivelyinallmaterial respects. was establishedandmaintained andifsuchcontrols adequate internalfinancialcontrolsoverreporting audit toobtainreasonableassuranceaboutwhether comply withethicalrequirementsandplanperformthe Those StandardsandtheGuidanceNoterequirethatwe an auditofinternalfinancialcontrolsoverreporting. the ActandGuidanceNote,toextentapplicable Standards onAuditing,prescribedunderSection143(10)of our audit.Weconductedauditinaccordancewiththe internal financialcontrolsoverreportingbasedon Our responsibilityistoexpressanopinionontheCompany's Auditor's Responsibility financial information,asrequiredundertheAct. accounting records,andthetimelypreparationofreliable of fraudsanderrors,theaccuracycompleteness the safeguardingofitsassets,preventionanddetection including adherencetotherespectivecompany'spolicies, ensuring theorderlyandefficientconductofitsbusiness, internal financialcontrolsthatwereoperatingeffectivelyfor the design,implementationandmaintenanceofadequate of India(the"GuidanceNote").Theseresponsibilitiesinclude Reporting issuedbytheInstituteofCharteredAccountants on AuditofInternalFinancialControlsOver components ofinternalcontrolstatedintheGuidanceNote established bytheCompanyconsideringessential based ontheinternalcontroloverfinancialreportingcriteria for establishingandmaintaininginternalfinancialcontrols which arecompaniesincorporatedinIndia,responsible its subsidiarycompaniesandjointlycontrolledcompany, The respectiveBoardofDirectorstheHoldingcompany, Controls Management's ResponsibilityforInternalFinancial companies incorporatedinIndia,asofthatdate. companies andjointlycontrolledcompany,whichare referred toas"theHoldingCompany")anditssubsidiary (formerly INFOTECHENTERPRISESLIMITED) controls overfinancialreportingof March 31,2016,wehaveauditedtheinternalfinancial statements oftheCompanyasandforyearended In conjunctionwithourauditoftheconsolidatedfinancial of theCompaniesAct,2013("theAct") Reporting underClause(i)ofSub-section3Section143 Report ontheInternalFinancialControlsOver (Referred toinparagraph1(f)under'ReportonOtherLegalandRegulatoryRequirements'ofourreportevendate) ANNEXURE "A"TOTHEINDEPENDENTAUDITORS'REPORT CYIENT LIMITED (hereinafter material misstatementsdueto errororfraudmayoccurand collusion orimpropermanagement overrideofcontrols, controls overfinancialreporting, includingthepossibilityof Because oftheinherentlimitations ofinternalfinancial Financial Reporting Inherent LimitationsofInternalFinancialControlsOver a materialeffectonthefinancialstatements. use, ordispositionofthecompany'sassetsthatcouldhave prevention ortimelydetectionofunauthorisedacquisition, company; and(3)providereasonableassuranceregarding authorisations ofmanagementanddirectorsthe of thecompanyarebeingmadeonlyinaccordancewith accounting principles,andthatreceiptsexpenditures statements inaccordancewithgenerallyaccepted recorded asnecessarytopermitpreparationoffinancial (2) providereasonableassurancethattransactionsare transactions anddispositionsoftheassetscompany; reasonable detail,accuratelyandfairlyreflectthe that (1)pertaintothemaintenanceofrecordsthat,in financial reportingincludesthosepoliciesandprocedures principles. Acompany'sinternalfinancialcontrolover purposes inaccordancewithgenerallyacceptedaccounting the preparationoffinancialstatementsforexternal assurance regardingthereliabilityoffinancialreportingand reporting isaprocessdesignedtoprovidereasonable A company'sinternalfinancialcontrolover Reporting Meaning ofInternalFinancialControlsOver over financialreporting. opinion ontheCompany'sinternalfinancialcontrolssystem is sufficientandappropriatetoprovideabasisforouraudit reports referredtointheOtherMattersparagraphbelow, are companiesincorporatedinIndia,termsoftheir subsidiary companiesandjointlycontrolledcompany,which audit evidenceobtainedbytheotherauditorsof We believethattheauditevidencewehaveobtainedand financial statements,whetherduetofraudorerror. assessment oftherisksmaterialmisstatement depend ontheauditor'sjudgement,including control basedontheassessedrisk.Theproceduresselected evaluating thedesignandoperatingeffectivenessofinternal the riskthatamaterialweaknessexists,andtesting internal financialcontrolsoverreporting,assessing financial reportingincludedobtaininganunderstandingof effectiveness. Ourauditofinternalfinancialcontrolsover controls systemoverfinancialreportingandtheiroperating 132 26 Annual Report 2015-16 cyient.com EUDRBDPartner 201193) No. (Membership April 21,2016 SECUNDERABAD of suchcompaniesincorporatedinIndia. India, isbasedonthecorrespondingreportsofauditors controlled company,whicharecompaniesincorporatedin to three(3)subsidiarycompaniesandone(1)jointly financial controlsoverreportinginsofarasitrelates the adequacyandoperatingeffectivenessofinternal Our aforesaidreportunderSection143(3)(i)oftheActon Other Matters Guidance Note. the essentialcomponentsofinternalcontrolstatedin reporting criteriaestablishedbytheCompanyconsidering March 31,2016,basedontheinternalcontroloverfinancial over financialreportingwereoperatingeffectivelyasat over financialreportingandsuchinternalcontrols respects, anadequateinternalfinancialcontrolssystem are companiesincorporatedinIndia,have,allmaterial subsidiary companiesandjointlycontrolledcompany,which to theexplanationsgivenus,HoldingCompany,its In ouropinion,tothebestofinformationandaccording Opinion compliance withthepoliciesorproceduresmaydeteriorate. because ofchangesinconditions,orthatthedegree control overfinancialreportingmaybecomeinadequate periods aresubjecttotheriskthatinternalfinancial internal financialcontrolsoverreportingtofuture not bedetected.Also,projectionsofanyevaluationthe For (Firm's RegistrationNo.008072S) DELOITTE HASKINS&SELLS GANESH BALAKRISHNAN CharteredAccountants 133 26 Annual Report 2015-16 cyient.com ae:April21,2016 Date Chartered Accountants For In termsofourreportattached lc : Place Partner Ganesh Balakrishnan ()EQUITY &LIABILITIES (A) B ASSETS (B) Consolidated BalanceSheetasatMarch31,2016 of theConsolidated See accompanyingnotesformingpart accounting policies Corporate informationandsignificant Deloitte Haskins & Sells & Haskins Deloitte ogtr rvsos7 5,6,5 582,353,713 1,400,828,645 200,034,788 5,923,050,865 466,774,083 50,521,417 955,769,664 6,675,537,579 812,891,299 579,396,795 653,462,750 1,842,792,615 11 90,384,087 10 681,033,262 Fixed assets 561,805,325 41,757,880 9 Non-current assets 1,146,570,215 provisions Short-term 8 Other currentliabilities 7 562,416,885 6 18,440,591,495 5 Trade payables 42.2 17,878,786,170 Short-term borrowings 19,098,078,626 3 18,535,661,741 Current liabilities provisions Long-term 4 Other long-termliabilities Deferred taxliability(net) borrowings Long-term Non-current liabilities Minority Interest allotment Share applicationmoneypending Reserves andsurplus capital Share Shareholders' funds te o-urn ses1 219801,840,800 5,335,859,590 65,238,912 6,228,505,537 675,415,332 336,076,496 1,365,652,386 1,356,069,068 15,696,376,519 4,263,450,299 1,833,802,279 17,946,919,669 1,993,347,741 2,119,870 6,145,005,861 21 17 6,950,843,360 187,487,613 18 790,478,924 795,739,966 1,645,444,637 1,088,663,899 19 2,708,166,755 16 20 Other currentassets Short-term loansandadvances 15 Cash andbankbalances receivables Trade 42.2 Inventories 13 14 investments Current Current assets 35 Other non-currentassets Long-term loansandadvances Deferred taxassets(net) investments Non-current Goodwill (onconsolidation) Secunderabad nagbeast 2 866331465,255,860 55,154,079 3,156,352,714 27,369 4,121,880 47 846,643,321 3,128,824,979 23,745,440 12B 12A 12C 2,749,439,377 development Intangible assetsunder 3,055,599 work-in-progress Capital assets Intangible assets Tangible 3,103,722,355 TOTAL enterprises andsmall Dues tocreditorsotherthanmicro enterprises small Dues tomicroenterprisesand OA 27,369 TOTAL
financial statements 1 and2 Note 5 ,8,0 - 1,288,000 55 7,7,8 606,063,549 978,579,884 45397 ,8,1,8 4,1,7 3,717,677,431 40,914,778 4,083,717,687 84,503,947 For andonbehalfoftheBoardDirectors ae:April21,2016 Date lc : Place Chairman Executive B.V.R. MohanReddy Chief FinancialOfficer Ajay Aggarwal (DIN –00058215) March 31,2016 Hyderabad As at 180403122,325,318 128,054,013 561725,785,651,679 ,596,197 561725,785,651,679 ,596,197 Managing Director&CEO Company Secretary Company (DIN –05301037) Sudheendhra Putty Krishna Bodanapu Krishna March 31,2015 As at (Amount in ` ) 134 26 Annual Report 2015-16 cyient.com ae:Arl2,21 ae:April21,2016 Date :April21,2016 Date : Place Partner Ganesh Balakrishnan Chartered Accountants For In termsofourreportattached Cost ofmaterialsconsumed Finance costs Operating, administrationandotherexpenses work inprogress Changes ininventoriesoffinishedgoodsand Depreciation andamortisationexpense Consolidated financialstatements See accompanyingnotesformingpartofthe Corporate informationandsignificantaccountingpolicies Employee benefitsexpense EXPENSES TOTAL INCOME Other income(Net) Revenue fromoperations(Net) Revenue fromoperations(Gross) Consolidated StatementofProfitandLossfortheyearendedMarch31,2016 (Equity shares,parvalueof Earnings pershare of theCompany Profit fortheyearattributabletoshareholders Minority interest (Less)/add: Shareof(profit)/lossattributableto attributable toMinorityinterest Profit aftertaxbeforeshareof(profit)/loss TOTAL EXPENSES INCOME -Diluted -Basic Weighted averagenumberofequityshares Share inprofitofassociatecompany company andminorityinterest Profit aftertax,beforeshareinprofitofassociate company andminorityinterest Profit beforetax,shareinprofitofassociate Exceptional item(net) associate companyandminorityinterest Profit beforeexceptionalitem,tax,shareinprofitof eoteHsis&SlsForand onbehalfoftheBoardDirectors Sells & Haskins Deloitte Less: Exciseduty - Diluted - - Basic a Currenttax (a) Tax expense: d Deferredtax(net) (d) c MATcreditentitlement Taxpertainingtoearlieryears (c) (b) Secunderabad ` 5each) 1and2 oeFrteya ne Fortheyearended Fortheyearended Note jyAgra SudheendhraPutty Secretary Company (DIN–05301037) Managing Director &CEO : Place Bodanapu Krishna Chief FinancialOfficer Ajay Aggarwal (DIN –00058215) Chairman Executive B.V.R. MohanReddy 42.3 42.1 42.2 42.5 12D 41 26 56 28 22 23 25 24 27 Hyderabad ac 1 06March31,2015 March 31,2016 27,819,962,812 32,041,092,325 31,036,176,405 30,955,698,122 18,080,838,009 1,139,437,176 3,262,492,046 3,268,220,741 3,147,896,107 4,133,974,107 4,221,129,513 1,085,394,203 1,881,181,192 6,780,164,675 (133,316,517) (30,312,167) 178,830,786 120,324,634 892,954,866 112,637,613 112,442,098 (5,728,695) 10,269,508 87,155,406 80,478,283 5,993,284 29.01 28.96 24,121,445,992 28,576,987,546 27,365,103,096 27,359,329,811 16,756,048,085 3,532,036,414 3,509,647,638 3,359,272,680 4,455,541,554 4,455,541,554 1,023,585,606 1,217,657,735 6,136,430,253 (Amount in 112,182,127
150,374,958 291,098,173 712,775,106 167,536,224 112,578,995 (1,427,883) 50,148,807 22,388,776 23,962,344 57,558,151 5,773,285 31.48 31.37 ` - ) 135 26 Annual Report 2015-16 cyient.com Particulars .CASHFLOWFROMINVESTINGACTIVITIES B. A. CASH FLOWFROMOPERATINGACTIVITIES CASH A. Consolidated CashFlowStatementfortheyearendedMarch31,2016 scs n aheuvlns 0,8,7 (498,326,792) 2,541,159 406,984,174 1,250,153 15,133,645 (1,024,179,533) (818,496,491) Net cashflow(usedin)investing activities as cashandequivalents Movement inBankbalancesnotconsidered 5,379,842 Rental incomefromoperatingleases Dividend incomereceived Interest received (1,287,216,621) Sale ofNon-currentinvestments Purchase oflong-terminvestments Current investments Proceeds fromsaleoffixedassets capital advances(ReferNote(iii)below) Capital expenditureonfixedassets,including Net cashflowfromoperatingactivities Net incometaxpaid Cash generatedfromoperations Adjustments forincrease/(decrease)inoperatingliabilities: Adjustments for(increase)/decreaseinoperatingassets: Changes inworkingcapital: Operating profitbeforeworkingcapitalchanges Adjustments for: Profit beforetax usdais 81487- 452,874,958 (4,518,552,376) 18,616,967 356,757,944 - 2,023,853,418 98,184,877 24,859,146 (1,185,020,559) 730,618,131 194,883,067 2,676,156 561,768,467 85,354,896 (212,696,330) - Othersdividendfrommutualfunds 241,782 200,948,748 - Others (95,183,209) 83,853,237 - Subsidiaries 442,301,162 45,637,997 43,486,078 - Subsidiaries (109,650,701) 286,105,686 (124,121,515) - Proceedsfromsale (322,669,851) - Purchased - (372,516,335) (279,070) (185,314,969) (1,005,776,590) 41,252,715 (101,231,841) 82,441,827 (13,751,115) Long-term provisions (18,616,967) Other LongtermLiabilities 57,558,151 Short-term provisions - (230,302,670) (489,965,130) Other currentliabilities 493,542 (68,325,805) payables Trade (39,307,150) 136,337,700 Other non-currentassets (2,541,159) Other currentassets Long-term loansandadvances Short-term loansandadvances (24,859,146) 652,572 178,830,786 Inventories (304,242,176) (330,988,437) Trade receivables 198,722,189 (86,585,256) 712,775,106 (23,135,239) (1,250,153) Unrealised forex(gain)/loss foreign currencycash&equivalents Effects ofexchangedifferenceontranslation (972,424) Unrealised gainontranslationdifferences Bad debtswrittenoff (77,090,644) loans andadvances 892,954,866 Provision fordoubtfultradeandotherreceivables, Profit onsaleoflongterminvestments Liabilities/provisions nolongerrequiredwrittenback Rental incomefromoperatingleases income Dividend income Interest Finance costs (Gain) /lossonsaleoffixedassets(net) Depreciation andamortisationexpense A 27465793,617,104,689 2,784,665,749 (A) B (4,0,1)(5,281,925,823) (848,202,913) (B) 41394174,455,541,554 4,133,974,107 o h ereddFortheyearended For theyearended ac 1 06March31,2015 March 31,2016 47947814,453,884,938 4,739,467,821 ,0,4,8 4,788,573,227 3,808,845,282 (1,959,570,311) (Amount in (1,171,468,538) ` ) 136 26 Annual Report 2015-16 cyient.com See accompanyingnotesformingpartofthefinancialstatements Purchaseoffixedassetsincludespaymentsforitems incapitalwork-in-progressandadvancesforpurchaseoffixe (iii) Theearmarkedaccountbalanceswithbankscanbeutilisedonly forthespecificidentifiedpurposes. (ii) i ReconciliationofCashandcashequivalentswiththe (i) Notes: (Refer Note(i)below) Cash andcashequivalentsattheendofyear Net increase/(decrease)inCashandcashequivalents(A+B+C) Net cashflow(usedin)financingactivities(C) Particulars .CASHFLOWFROMFINANCINGACTIVITIES C. Consolidated CashFlowStatement(Contd.) ae:April21,2016 Date lc : Place Partner Ganesh Balakrishnan Chartered Accountants For In termsofourreportattached Deloitte Haskins & Sells & Haskins Deloitte Adjustments forincrease/decreaseincurrentliabilitiesrelatingtothe acquisitionoffixedassetshasbeenmadetotheextent identified. Less: Inearmarkedaccounts(refernote(ii)below) Cash andbankbalancesasperBalanceSheet(ReferNote19) Balance sheet c Remittancesintransit (c) Balanceswithbanks (b) currency Cashandcashequivalents Effect ofexchangedifferencesontranslationforeign subsidiaries duringtheyear Cash andcashequivalentson(sale)/acquisitionof Cash andcashequivalentsatthebeginningofyear Tax ondividend Dividends paid Finance costs Movement inlongtermborrowings(net) a Cashonhand (a) *Comprises: the year* Cash andcashequivalentsattheendof Movement inshorttermborrowings(net) Share applicationmoneyreceived Proceeds fromissueofequityshares Secunderabad - Unpaiddividendaccounts ii Indepositaccounts (iii) InEEFCaccounts (ii) Incurrentaccounts (i) guarantees bank - Balancesheldasmarginmoney/securityfor For andonbehalfoftheBoardDirectors ae:April21,2016 Date lc : Place Chief FinancialOfficer Ajay Aggarwal (DIN –00058215) Chairman Executive B.V.R. MohanReddy (1,344,348,075) (178,868,113) (275,087,097) 335,034,464 333,678,916 Hyderabad 21,003,228 1,288,000 o h ereddFortheyearended For theyearended ac 1 06March31,2015 March 31,2016
(1,107,298,677)
4,060,483,483 1,818,305,091 5,703,851,435 6,833,173,432 6,950,843,360 6,833,173,432 6,833,173,432 829,164,159 855,228,186 105,817,464 304,242,176 (4,084,338) 98,645,573 11,852,464 511,099 (669,507,255) (114,846,593) (55,613,296) 409,713,252 Managing Director&CEO Company Secretary Company (DIN –05301037) Sudheendhra Putty Krishna Bodanapu Krishna 45,344,327 65,704,088 - (1,984,026,611) (Amount in
5,703,851,435 5,703,851,435 3,790,671,247 1,538,525,967 6,886,377,478 6,228,505,537 (319,205,477) 5,703,851,435 334,722,030 517,568,796 230,302,670 571,197,898 39,635,106 7,085,306 297,085 d assets. ` ) 137 26 Annual Report 2015-16 cyient.com .Significantaccountingpolicies 2. .Corporateinformation 1. Notes formingpartoftheConsolidatedfinancialstatements Shareholder throughpostalballot. 2014, postapprovaloftheBoardDirectorsand Enterprises LimitedtoCyientw.e.f.May07, The CompanychangeditsnamefromInfotech government andfinancialservicesmarkets. telecommunications, transportation&logistics,local services andsolutionsforthemanufacturing,utilities, implementation. CyientGroupspecialisesinsoftware development, consulting,analyticsand application softwaredevelopment,products repair developmentengineering,reverseengineering design/engineering (CAD/CAE),designandmodelling, drawings andmaps,photogrammetry,computeraided Cyient Group'srangeofservicesincludedigitisation (UK), Germany,Japan,Australia,SingaporeandIndia. in theUnitedStatesofAmerica(USA),Kingdom serves aglobalcustomerbasethroughitssubsidiaries its headquartersanddevelopmentfacilitiesinIndia automotive anddefenceindustries.TheCompanyhas and machiningofcomponentsforaerospace, and aerospaceapplications,includingmanufacturing industrial, automotive,telecommunications,defence manufacturing solutionsinthefieldsofmedical, started operatingintheareasoftotalelectronics analytics. Duringthepreviousyear,grouphasalso in geospatial,engineeringdesign,ITsolutionsanddata global technologyservicesandsolutionsspecialising referred toas'theGroup')isengagedinproviding subsidiaries, jointventureandassociate(collectively Cyient Limited('Cyient'or'theCompany')andits . Basisofaccountingandpreparationthe 2.1 )ThefinancialstatementsoftheGrouphave i) consolidated financialstatements except whereanewlyissued accounting Accounting policiesareconsistently applied Limited). Limited (formerlyInfotech Enterprises up tothesamereportingdate asatCyient companies usedinconsolidationaredrawn The financialstatementsofthesubsidiary basis underthehistoricalcostconvention. statements havebeenpreparedonaccrual (Accounts) Rules2014.Thefinancial read withRule7oftheCompanies Section 133oftheCompaniesAct,2013, Accounting Standardsprescribedunder India (IndianGAAP)tocomplywiththe Generally AcceptedAccountingPrinciplesin been preparedinaccordancewiththe . Principlesofconsolidation 2.2 iv) Minority interest in the net assetsof Minorityinterestinthe iv) iii) Theconsolidatedfinancialstatements ii) TheAccountingpoliciesadoptedinthe ii) )Thefinancial statementsoftheCompany i) prepared onthefollowingbasis: The consolidatedfinancialstatementshavebeen of investment. share oftheequity,subsequent tothedates Company andfuturemovements inthe investments aremadeinthe subsidiary shareholders atthedate onwhich amount ofequityattributabletotheminority consolidated subsidiariesconsistsofthe financial statements. 'Reserves andSurplus'intheconsolidated Consolidation) andincludedunderthehead recognised asCapitalReserve(on of theinvestmentGroup,itis the dateofinvestmentisinexcesscost of equityinthesubsidiarycompaniesason statements. Alternatively,wheretheshare being anassetintheconsolidatedfinancial recognised asGoodwill(onConsolidation), which theinvestmentsaremade,is over itsshareoftheequityatdateson investments initssubsidiarycompanies The excessofcosttotheGroupits is adjustedtothecostofinvestment. method asperwhichtheshareofprofit/loss Company, whichareaccountedunderEquity include theshareofprofit/lossassociate losses havebeenfullyeliminated. transactions andunrealisedprofits expenses. Inter-Companybalancesand items ofassets,liabilities,incomeand a line-bylinebasisbyaddingtogetherlike and itssubsidiarieshavebeencombinedon previous year. consistent withthosefollowedinthe preparation ofthefinancialstatementsare statements. is dulydisclosedintheconsolidatedfinancial effect alongwiththeimpactofsuchchange circumstances, detaileddisclosurestothat necessitated duetochanged Where achangeinaccountingpolicyis change inaccountingpolicyhithertouse. an existingaccountingstandardrequiresa standard isinitiallyadoptedorarevisionto 138 26 Annual Report 2015-16 cyient.com . Revenuerecognition 2.4 . Useofestimates 2.3 )Ondisposal ofasubsidiary,theattributable v) when theproducthasbeen delivered,in Revenue fromsaleofequipment isrecognised estimated. loss becomesprobableand can bereasonably engagements ismadeinthe year inwhichsuch Provision forestimatedlossesonsuch year inwhichthechangebecomesknown. percentage ofworkcompletedisreflectedinthe impact ofanyrevisioninestimatesthe percentage completionmethod.Thecumulative recognised overthelifeofcontractusing contracts. Revenuefromsucharrangementsis days/man hoursspentaspertermsofthe specified milestonesand/oronthebasisofman- customers arebilled,basedoncompletionof fixed-price" arrangements,underwhich The Groupalsoperformsworkunder"Timebound when servicesareperformed. "time andmaterial"basisisrecognisedas Revenue fromsoftwareservicesperformedona price" basis. on "Timeandmaterial"oraboundfixed- arrangements withthecustomerwhichareeither Revenue recognitiondependsonthe Income fromServices: are disclosedinthefinancialstatements. period inwhichresultsareknownand,ifmaterial, are reflectedinthefinancialstatements The effectsofchangesinaccountingestimates Future resultscoulddifferfromthoseestimates. financial statementsareprudentandreasonable. estimates usedinpreparationoftheconsolidated discounts etc.Themanagementbelievesthatthe contingencies, provisionforwarranties/ assets, provisionsforimpairment,provision provision fortaxation,usefullivesofdepreciable doubtful debts,provisionforemployeebenefits, during theyear.Examplesincludeprovisionsfor reported amountsofincomeandexpenditure consolidated financialstatementsandthe contingent liabilitiesasatthedateof of assetsandliabilitiesdisclosuresrelatingto assumptions consideredinthereportedamounts requires theManagementtomakeestimatesand statements inconformitywithIndianGAAP The preparationoftheconsolidatedfinancial the profitandlossondisposal. goodwill isincludedinthedeterminationof . Inventories 2.5 manufacturing overheads. material, labouranda proportion of necessary tomakethesale.Cost includesdirect costs ofcompletionand estimated costs in theordinarycourseofbusiness, lessestimated Net realizablevalueistheestimatedsellingprice Cost isdeterminedonaweightedaveragebasis. WorkinProcess&FinishedGoods-AtCost iii) StoresandSpares-AtCost. ii) RawMaterials&Consumables-At Costor i) Accounting Standardandareasunder: method ofvaluationprescribedunderthe arevaluedinaccordancewiththe Inventories benefits areaccountedonaccrualbasis. Export benefitsunderDEPBlicenseandexcise sales taxandvalueaddedtax. customers. Salesincludeexcisedutybutexclude generally coincideswiththedispatchofgoodsto and rewardsofownershiptothebuyer,which trade discounts,ontransferofsignificantrisks Revenue isrecognizednetofsalesreturnsand Sale ofProducts: end. manufacturing incomeisrecognizedasatyear- recorded atinvoicevalueandaccrued Manufacturing incomeandservicechargesare provision forestimatedlosses. estimated allowancesforuncertaintiesand in accordancewithcontracttermsandisnetof based onservicesperformedinadvanceofbillings Unbilled revenuerepresentsamountsrecognised performed arerecordedasunearnedrevenue. Amounts receivedorbilledinadvanceofservices of applicableindirecttaxes. based onthetermsofcontractsandalsonet incentives whichareestimatedandaccountedfor Revenue isnetofvolumediscounts/price service towhichitrelates. under revenuealongwithrecognitionofsale Reimbursement ofexpenditureisrecognised of thecontractinwhichservicesarerendered. contracts arerecognisedpro-rataovertheperiod Revenues fromfixed-pricemaintenance title istransferredtothecustomer. accordance withthesalescontractandwhen or NetrealizableValuewhicheverisless. Net realizableValuewhicheverisless. 139 26 Annual Report 2015-16 cyient.com . Depreciation&amortisation 2.8 Fixedassets,intangibleassetsandcapitalwork-in-progress 2.7 Otherincome 2.6 utmrrgt 3 years 3 life Useful 3 28 5 years years 10 are fullydepreciatedinthe life Useful Depreciation ischargedonpro-rata basisfromthedateofcapitalisation.Individualassets costing Overtheperiodofrespectiveproject year andtheamortisationperiod isrevisedtoreflectthechangedpattern,ifany. The estimatedusefullifeofthe intangibleassetsandtheamortisationperiodarereviewedat theendofeachfinancial Overtheleaseperiodof6-79years Customer rights Software purchasedforuseintheprojects Shorter ofleaseperiodorestimatedusefullives Software Type ofasset Intangible assetsareamortisedovertheirestimateduseful life onstraightlinemethodbasisasfollows: * ExceptasubsidiaryCompany Computers Tools &Equipment Plant andEquipment* Improvements Leasehold Building Land Leasehold Type ofasset technological changes,manufacturerswarrantiesandmaintenancesupport,etc.: the estimatedusageofasset,operatingconditionspasthistoryreplacement,anticipated life oftheassetshasbeenassessedasunderbasedontechnicaladvise,takingintoaccountnatureasset, in ScheduleIItotheCompaniesAct,2013exceptrespectoffollowingcategoriesassets,whosecase Depreciation ontangiblefixedassetshasbeenprovidedthestraight-linemethodasperusefullifeprescribed residual value. Depreciable amountforassetsisthecostofanasset,orothersubstitutedcost,lessitsestimated assets underdevelopmentwheresucharenotyetreadyfortheirintendeduse. Expenditure incurredtowardsdevelopment(ReferNote2.11)eligibleforcapitalizationarecarriedasintangible Intangible assetsunderdevelopment: accumulated amortisationandimpairment. Intangible assetsarerecordedattheconsiderationpaidforacquisitionofsuchandcarriedcostless Intangible assets (CWIP). Asset underinstallationorconstructionasatBalancesheetdateareshownCapitalWorkinProgress and Loss. from thestatedvaluesandresultinggainslossesarerecognisedinConsolidatedStatementofProfit The costandtheaccumulateddepreciationforfixedassetssold,retiredorotherwisedisposedoffareremoved the previouslyannouncedstandardsofperformance. purchase iscapitalisedonlyifsuchexpensesresultsinanincreasethefuturebenefitsfromassetsbeyond incurred tobringtheassetsitspresentlocationandcondition.Subsequentexpensesonfixedafter Fixed Assetsarestatedatactualcost,lessaccumulateddepreciationandimpairment.Costincludesallexpenses Dividend incomeisrecognisedwhentheCompany'srighttoreceivedividendestablished. rate applicableinthetransaction. Income frominterestisrecognisedonatimeproportionbasistakingintoaccounttheamountoutstandingand year ofacquisition. years years years ` 5,000orless 140 26 Annual Report 2015-16 cyient.com .1Research 2.11 Investments 2.10 Impairmentof assets 2.9 project isdemonstrated, future economic unless technicalandcommercial feasibilityofthe Development costsareexpensed asincurred Research costsareexpensed asincurred. Profit andLoss. is creditedtotheConsolidatedStatementof investments andanyreversalofsuchreduction reduction inthecarryingvalueoflong-term duties. Provisionismadetorecogniseany acquisition chargessuchasbrokerage,feesand such investment.Costofinvestmentsinclude diminution, otherthantemporary,inthevalueof cost lessprovisionmadetorecogniseany Long-term investmentsarecarriedindividuallyat individually atthelowerofcostandfairvalue. investment. Currentinvestmentsarecarried / Management'sintentatthetimeofmaking long-term basedontheirnature/holdingperiod Investments areeitherclassifiedascurrentor the carryingamountofeachassetinunit. other assetsoftheunitpro-rataonbasis goodwill allocatedtotheunitandthen allocated firsttoreducethecarryingamountof amount oftheunit,impairmentlossis the cashgeneratingunitislessthancarrying impairment annually.Iftherecoverableamountof which goodwillhasbeenallocatedaretestedfor synergies ofacquisition.Cash-generatingunitsto generating unitsexpectedtobenefitfromthe is allocatedtoeachoftheGroup'scash- For thepurposeofimpairmenttesting,goodwill the ConsolidatedStatementofProfitandLoss. such reversalofimpairmentlossisrecognisedin period nolongerexistsormayhavedecreased recognised foranassetinearlieraccounting When thereisindicationthatimpairmentloss specific totheasset. assessment oftimevaluemoneyandtherisk discount ratethatreflectsthecurrentmarket discounted totheirpresentvalueusingapre-tax use oftheassetandfromitsdisposalare future cashflowsexpectedfromthecontinuing use. Inassessingvalueinuse,theestimated higher ofanassets'netsellingpriceandvaluein impairment loss.Recoverableamountisthe estimated inordertodeterminetheextentof exists, therecoverableamountofassetis those assetswereimpaired.Ifanysuchindication determine whetherthereisanyindicationthat reviews thecarryingamountofitsassetsto At eachbalancesheetdate,theManagement and development .2Foreigncurrencytransactions/translations 2.12 income orasexpensefortheperiod. forward exchangecontract isrecognisedas arising oncancellationorrenewal ofsucha change. Gain/Lossonsettlement oftransaction reporting periodinwhichthe exchangerates Consolidated StatementofProfitandLossinthe forward exchangecontractsarerecognisedinthe the contract.Exchangedifferencesonsuch is amortisedasexpenseorincomeoverthelifeof discount arisingattheinceptionofcontract hedge theforeigncurrencyrisk,premiumor commitment orahighlyprobableforecast)to forward exchangecontract(otherthanforafirm financial instrumentsthatisinsubstancea In caseofforwardexchangecontractoranyother purposes. does notusethosefortradingorspeculation risk orcosttotheCompanyand foreign exchangeforwardcontractsreducesthe foreign exchangefluctuations.Theuseofthese contracts tohedgeitsexposuremovementsin The Companyusesforeignexchangeforward under foreigncurrencytranslationreserve. The netimpactofsuchchangeisaccumulated assets andliabilitiesareconvertedatclosingrate. expenses aretranslatedataverageratesandthe For thepurposesofconsolidation,incomeand those ofheadoffice. using thesameprinciplesandproceduresas statements ofthesebranchesaretranslated Company areintegralinnatureandthefinancial The operationsofforeignbranchesthe currency translationreserve. foreign operationareaccumulatedina an enterprise'snetinvestmentsinanon-integral a monetaryitemthat,insubstance,formpartof Profit andLoss.Exchangedifferencesarisingon recognised intheConsolidatedStatementof cost andtheexchangegainsorlossesare rate. Non-monetaryitemsarecarriedathistorical Sheet datearerestatedatyearendexchange derivative contracts)outstandingasatBalance Foreign currencymonetaryitems(otherthan rate prevalentonthedateoftransaction. by theCompanyareaccountedatexchange The transactionsinforeignexchangeenteredinto making theassetreadyforitsintendeduse. consistent basistocreating,producingand attributed orallocatedonareasonableand comprises expenditurethatcanbedirectly expenditure iscapitalised.Theamountcapitalised costs aremeasurereliably,inwhichcasesuch and abilitytocompleteusetheasset benefits areprobable,theCompanyhasintention 141 26 Annual Report 2015-16 cyient.com .3Derivativeinstrumentsandhedgeaccounting 2.13 recognised intheStatementof ProfitandLoss. Unrealised gains,ifany,onsuch derivativesarenot dealt withintheStatementof ProfitandLoss. Sheet dateandtheunrealised losses,ifany,are market, whereeverrequired, asattheBalance cash flowhedgingrelationshiparemarkedto Derivative contractsthatarenotdesignatedina Profit andLoss. immediately transferredtotheStatementof recognised in"Hedgingreserveaccount"is expected tooccur,thenetcumulativegainorloss If theforecastedtransactionisnolonger retained untiltheforecastedtransactionoccurs. recognised inthe"Hedgingreserveaccount"is cumulative gainorlossonthehedginginstrument accounting. Forforecastedtransactions,any or exercised,nolongerqualifiesforhedge hedging instrumentexpiresorissold,terminated, Hedge accountingisdiscontinuedwhenthe forecasted transactionaffectsprofitandloss. Loss inthesameperiodsduringwhich StatementofProfitand are reclassifiedtothe accumulated inthe"Hedgingreserveaccount" the StatementofProfitandLoss.Amounts ineffective portionisrecognisedimmediatelyin applicable deferredincometaxesandthe account" underReservesandSurplus,netof recognised directlyinthe"Hedgingreserve futurecashflowsare effective ashedgesof forward contractsthataredesignatedand Changes infairvalueoftheseforeignexchange stated atthefairvalueeachreportingdate. transactions. Thesederivativecontractsare commitments andhighlyprobableforecast currency fluctuationsrelatingtocertainfirm used tohedgeitsrisksassociatedwithforeign contracts, designatedinahedgingrelationship, issued byICAIinrespectofsuchderivative - RecognitionandMeasurement"(AS-30)as in AccountingStandard30"FinancialInstruments applying thehedgeaccountingprinciplessetout contracts inacashflowhedgingrelationshipby The Companydesignatessuchderivative instruments forspeculativepurposes. Company doesnotusederivativefinancial Company's riskmanagementstrategy.The financial derivativesconsistentwiththe by theCompany'spoliciesonuseofsuch foreign exchangeforwardcontractsisgoverned probable forecasttransactions.Theuseof relating tocertainfirmcommitmentsandhighly associated withforeigncurrencyfluctuations contracts (derivativecontracts)tohedgeitsrisks The Companyusesforeignexchangeforward .4Employeebenefits 2.14 entitlement. TheGroupmeasures theexpected renders theservicesthat increasethis absences intheperiodwhich theemployee Group recordsanobligation forcompensated unutilised accruedcompensated absence.The retirement orterminationofemploymentforthe periods orreceivecashcompensationat compensated absenceandutiliseitinfuture carry-forward aportionoftheunutilisedaccrued compensated absences.Theemployeescan The employeesoftheGroupareentitledto Compensated absences and Lossintheperiodwhichtheyoccur. losses arerecognisedintheStatementofProfit projected unitcreditmethod.Actuarialgainsand actuary asatthebalancesheetdatebasedon actuarial valuationmadebyanindependent accounts foritsliabilitytowardsGratuitybasedon benefits intheformofgratuity.TheCompany The Companyalsoprovidesforotherretirement Defined benefitplans Enterprises AmericaInc.). Directors ofCyientInc.,(formerlyInfotech the CompanyisatdiscretionofBoard plan isanexternalagency.Thecontributionfrom Enterprises AmericaInc.)whilethetrusteefor administered byCyientInc.(formerlyInfotech to allofitseligibleemployees.Theplanis Enterprises AmericaInc.)401(K)RetirementPlan benefit throughtheCyientInc.(formerlyInfotech America Inc.)providesadefinedcontributionplan Cyient Inc.(formerlyInfotechEnterprises rendered bytheemployees. required tobemadeandwhenserviceare an expensebasedontheamountofcontribution Insurance CorporationofIndiaandarechargedas to afundadministeredandmanagedbytheLife which isadefinedcontributionscheme,aremade Contributions underthesuperannuationplan when servicearerenderedbytheemployees. amount ofcontributionrequiredtobemadeand India andarechargedasanexpensebasedonthe administered andmanagedbytheGovernmentof contribution schemes,aremadetoafund Fund andPensionwhicharedefined Contributions inrespectofEmployeesProvident Defined contributionplans absences. scheme, gratuityfundandcompensated superannuation fund,employee'sstateinsurance Employee benefitsincludeprovidedfund, 142 26 Annual Report 2015-16 cyient.com .5Taxes 2.15 normal incometaxduringthe specified period.In convincing evidencethatthe Companywillpay as anassetonlywhenandto the extentthereis Minimum AlternateTax(MAT)credit isrecognised MAT credit date fortheirrealisability. tax assetsarereviewedateachbalancesheet legally enforceablerightforsuchsetoff.Deferred same governingtaxlawsandtheCompanyhasa items relatetotaxesonincomeleviedbythe Deferred taxassetsandliabilitiesareoffsetifsuch income willbeavailabletorealisetheassets. certainty existsthatsufficientfuturetaxable losses onlytotheextentthatreasonable unabsorbed depreciationandcarryforward for timingdifferencesofitemsotherthan differences. Deferredtaxassetsarerecognised Deferred taxliabilitiesarerecognisedforalltiming substantively enactedasatthereportingdate. using thetaxratesandlawsenactedor subsequent periods.Deferredtaxismeasured period andarecapableofreversalinoneormore and theaccountingincomethatoriginateinone being thedifferencebetweentaxableincome ontimingdifference, Deferred taxisrecognised deferred tax. expense forayearcomprisesofcurrenttaxand considering taxallowancesandexemptions.Tax annually, basedontaxliabilitycomputed,after regulations. Aprovisionismadeforincometax is calculatedinaccordancewiththerelevanttax For subsidiariesthecurrentchargeforincometax domiciled. applicable incountrieswheresuchoperationsare is determinedinaccordancewithtaxlaws 1961. Taxexpenserelatingtoforeignoperations rates andtheprovisionsofIncomeTaxAct, determined inaccordancewiththeapplicable jurisdictions. IncometaxpayableinIndiais on incomefromoperationsinIndiaandforeign Current incometaxexpensecomprisesoftaxes employee rendersservice. are recognisedduringtheperiodwhen exchange fortheservicesrenderedbyemployees performance incentivesexpectedtobepaidin overseas socialsecuritycontributionsand Other short-termemployeebenefits,including Other short-termemployeebenefits method. the balancesheetdateonprojectedunitcredit madebyanindependentactuaryasat valuation cost ofcompensatedabsencebasedonactuarial on Income .8Earningspershare(EPS) 2.18 WarrantyCosts 2.17 Leases 2.16 weighted averagenumber of equityshares effect ofextraordinaryitems, ifany)bythe the profit/(loss)aftertax(including thepost-tax Basic earningspershareiscomputed bydividing as andwhenrequired. are reviewedperiodicallyandrevisionsmade estimates usedforaccountingwarrantycosts Consolidated StatementofProfitandLoss.The recognition ofrevenueandisincludedinthe respect ofwarrantycostsintheyear Provision ismadefortheestimatedliabilityin technical evaluationandpastexperienceofcosts. estimated bytheManagementonbasisof Post-sales clientsupportandwarrantycostsare WheretheCompanyislessor- (b) WheretheCompanyislessee (a) and liabilityonnetbasis. jurisdiction andtheintentionistosettleasset income taxprovisionarisinginthesame Sheet afteroff-settingadvancetaxpaidand taxes arepresentedintheConsolidatedBalance Advance taxesandprovisionsforcurrentincome normal incometaxduringthespecifiedperiod. evidence totheeffectthatCompanywillpay to theextentthereisnolongerconvincing the carryingamountofMATCreditEntitlement same ateachBalanceSheetdateandwritesdown Credit Entitlement'.TheCompanyreviewsthe Statement ofProfitandLossshownas'MAT is createdbywayofacredittotheConsolidated Alternate Tax,issuedbytheICAI,saidasset Accounting forCreditAvailableunderMinimum the provisionscontainedinGuidanceNoteon to berecognisedasanasset,inaccordancewith the MATcreditbecomeseligible the yearinwhich Consolidated StatementofProfitandLoss. recognised asanexpenseinthe Costs, includingdepreciation,are of ProfitandLossovertheleaseperiod. recognised intheConsolidatedStatement included infixedassets.Leaseincomeis Assets subjecttooperatingleasesare over theleaseterm. of ProfitandLossonastraight-linebasis recognised intheConsolidatedStatement rentals underoperatingleasesare recognised asoperatingleases.Lease substantially vestwiththelessor,are rewards incidentaltoownershipofanasset Lease arrangementswheretherisksand 143 26 Annual Report 2015-16 cyient.com 2.20 Associates 2.19 A provisionisrecognisedwhen theGrouphasa Contingent Assets Provisions, Contingent liabilities and Profit andLoss. to bechargedtheConsolidatedStatementof granted asabovethereisnocompensationcost value methodandconsideringthatalloptionsare employee stockoptionschemeusingtheintrinsic measures compensationcostrelatingto on thesaiddateisconsidered.TheCompany exchange wherethereishighesttradingvolume more thanonestockexchange,thenthe Company arelisted.Iftheshareslistedon on thestockexchangewhichsharesof in whichoptionsaregranted/sharesissued, the dateofmeetingBoardDirectors equals thelatestavailableclosingprice,priorto Guidelines fromtimetotime.i.e.marketprice is themarketpriceasdefinedinSEBI The exercisepriceundertheaforesaidschemes Share-Based payments,issuedbyICAI. Guidance noteonAccountingforEmployee Securities ExchangeBoardofIndiaandthe Regulations, 2014,asamended,issuedby 1999 /SEBI(ShareBasedEmployeeBenefits) Employee StockPurchaseScheme)Guidelines SEBI (EmployeeStockOptionSchemeand per theaccountingtreatmentprescribedunder established afterJune19,1999areevaluatedas Company undervariousStockOptionSchemes Stock optionsgrantedtotheassociatesof appropriate. / reversesharesplitsandbonusshares,as dilutive equitysharesareadjustedforsharesplits The numberofequitysharesandpotentially independently foreachperiodpresented. potential equitysharesaredetermined value oftheoutstandingshares).Dilutive actually issuedatfairvalue(i.e.averagemarket the proceedsreceivablehadsharesbeen dilutive potentialequitysharesareadjustedfor unless theyhavebeenissuedatalaterdate.The converted asatthebeginningofperiod, Dilutive potentialequitysharesaredeemed conversion ofalldilutivepotentialequityshares. equity shareswhichcouldhavebeenissuedonthe share andalsotheweightedaveragenumberof shares consideredforderivingbasicearningsper shares, bytheweightedaveragenumberofequity or incomerelatingtothedilutivepotentialequity dividend, interestandotherchargestoexpense extra ordinaryitems,ifany)asadjustedfor after tax(includingthepost-taxeffectofany share iscomputedbydividingtheprofit/(loss) outstanding duringtheyear.Dilutedearningsper Stock Options .42.24 BorrowingCosts 2.23 Servicetaxinputcredit 2.22 Cashandcashequivalents(forthepurposeof 2.21 assets andliabilitiesascurrent andnon-current. 12 monthsforthepurposeof classificationof itsoperatingcycleas the grouphasdetermined and theirrealisationincashor cashequivalents, the normaltimebetweenacquisition ofassets Based onthenatureofactivitiesgroupand of suchassetisaddedtothecostassets. of qualifyingassetsuptothedatecapitalisation occur. Borrowingcosts,allocatedtoacquisition Statement ofprofitandlossintheperiodthey acquisition ofqualifyingassetsarechargedtothe to theextentnotdirectlyrelated Costs inconnectionwiththeborrowingoffunds uncertainty inavailing/utilisingthecredits. rendered isaccountedandwhenthereno books intheperiodwhichunderlyingservice Service taxinputcreditisaccountedforinthe on theavailableinformation. activities oftheCompanyaresegregatedbased cash flowsfromoperating,investingandfinancing of pastorfuturecashreceiptspayments.The of non-cashnatureandanydeferralsoraccruals and taxisadjustedfortheeffectsoftransaction whereby profit/(loss)beforeextraordinaryitems Cash flowsarereportedusingindirectmethod, of changesinvalue. cash equivalentsaresubjecttoinsignificantrisk the dateofpurchase,tobecashequivalents.Such original maturitiesofthreemonthsorlessfrom which arereadilyconvertibleintocashandhave considers allhighlyliquidfinancialinstruments, demand depositswithbanks.TheCompany Cash comprisescashonhand,inbankand Consolidated CashFlowStatement) in theconsolidatedfinancialstatements. the Notes.Contingentassetsarenotrecognised estimates. Contingentliabilitiesaredisclosedin and adjustedtoreflectthecurrentbest These arereviewedateachbalancesheetdate settle theobligationatbalancesheetdate. determined basedonbestestimaterequiredto discounted toitspresentvalueandare (excluding retirementbenefits)arenot which reliableestimatecanbemade.Provisions required tosettletheobligation,inrespectof is probablethatanoutflowofresourceswillbe present obligationasaresultofpasteventandit Operating Cycle 144 26 Annual Report 2015-16 cyient.com Note .Sharecapital 3. .Rights,preferencesandrestrictionsattachedtoequityshares: b. .Detailsofsharesheldbyeachshareholderholdingmorethan5%aggregateequity: c. .Reconciliationofthenumbersharesandamountoutstandingatbeginningendyear: a. Notes: Equity sharesof Authorised capital: Equitysharesof paid-up capital: Issued andsubscribedfully B Sucharitha The Companyhasonlyoneclassofequityshareshavingaparvalue BVR MohanReddy Name oftheshareholder exercise ofstockoptions Equity sharesallottedpursuantto balance Opening Equity shares Particulars First CarlyleVenturesMauritius Carrier InternationalMauritiusLtd equity shareholdersareeligibletoreceivetheremainingassetsofCompanyinproportiontheirshareholding. shareholders intheensuingAnnualGeneralMeeting,exceptcaseofinterimdividend.Ineventliquidation, The dividendproposedbytheBoardofDirectorsissubjecttoapproval ofthe entitled toonevotepershare. Closing balance ` ` 5 each (Refer Note 35 (v)) 270,000,000 1,350,000,000 270,000,000 1,350,000,000 270,000,000 1,350,000,000 270,000,000 5each(ReferNote35(v)) 5 each
1,8,7 524685 1,6,6 561,805,325 112,361,065 562,416,885 112,483,377 124337 6,1,8 123105561,805,325 112,361,065 562,416,885 112,483,377 shares held 123105 6,0,2 119463559,823,065 111,964,613 561,805,325 112,361,065 ubro Amount in Number of Amount in Number of Number of 9,6 36% 5229013.61% 15,292,960 13.60% 11,099,416 15,292,960 14,614,888 6,541,200 sa ac 1 06AsatMarch31,2015 As atMarch31,2016 sa ac 1 06AsatMarch31,2015 As atMarch31,2016 For theyearended 1232 1,6 36421,982,260 396,452 611,560 122,312 hrsshares shares shares shares March 31,2016 1,350,000,000 562,416,885 29% 4573612.99% 14,597,366 12.99% .2 5.82% .7 11,099,416 9.87% ` 5 pershare.Eachholderofequitysharesis Numberof % ` ` shares held ubro Amount in Number of Amount in Number of 6,541,200 For theyearended March 31,2015 1,350,000,000 (Amount in 561,805,325 5.82% 9.88% % ` ` ` ) 145 26 Annual Report 2015-16 cyient.com d. Aggregate numberandclassofsharesallottedasfullypaidupbywaybonusduring5yearsimmediately Aggregate d. .Detailsofsharesreserved forissue: f. DetailsofsharesallottedunderAssociateStockOptionPlans(ReferNote46.1) e. As at March 31, 2016 - 55,552,348 (March 31, 2015 - 55,552,348) equity shares of As atMarch31,2016-55,552,348(March201555,552,348)equitysharesof preceding theBalanceSheetdate: i Sharesaggregating1,200,000(March31,2015-Nil),reservedforissueunderASOPscheme(ReferNote ii. Sharesaggregating318,750and637,383asatMarch31,20162015respectively,reservedfor i. 807,571(AsatMarch31,2015-685,259) equitysharesof (v) 3,296,545(AsatMarch31,2015-3,296,545)equitysharesof (iv) 2,123,507(AsatMarch31,2015-2,123,507)equitysharesof (iii) 1,650,630(AsatMarch31,2015-1,650,630)equitysharesof (ii) 80,900(AsatMarch31,2015-80,900)equitysharesof (i) (Refer Note46.2). bonus sharesbycapitalisingfreereservesoftheCompanyduring5yearsimmediatelypreceedingsaiddates 46.1) issue underAssociateStockOptionPlanScheme2008(ReferNote46.1). Company pursuanttotheAssociateStockOptionPlan-2008(ASOP2008) the CompanypursuanttoAssociateStockOptionPlan-2004(ASOP2004) the CompanypursuanttoAssociateStockOptionPlan-2002(ASOP2002) the CompanypursuanttoAssociateStockOptionPlan-2001(ASOP2001) pursuant totheInfotechEmployeeStockOfferScheme-1999(ESOP1999) ` 10 eachfullypaid-upwasallotedtoInfotechESOPtrust ` 5 eachfullypaid-upwasallottedtoassociatesofthe ` ` ` 5 eachfullypaid-upwasallottedtoassociatesof 5 eachfullypaid-upwasallottedtoassociatesof 5 eachfullypaid-upwasallottedtoassociatesof ` 5 eachasfullypaid-upbywayof 146 26 Annual Report 2015-16 cyient.com .Reserves andSurplus 4. Note: )Contingencyreserve d) )SurplusinConsolidatedStatementof e) )Capitalreserve g) )Hedgingreserve(ReferNote33) c) )Securitiespremiumaccount a) )Currencytranslationreserve f) )Generalreserve b) i Theamountrepresentsshareoflossattributable toMinorityInterestonconsolidationofasubsidiary asabsorbedby (i) Less: Adjustmentofaccount Balance atthebeginningofyear Balance attheendofyear Less: LossestransferredtoConsolidated Less: Adjustmentofaccount Add: Add: Less: Depreciationontransitionto Balance atthebeginningofyear Profit andLoss Additions/(deletions) duringthe year Balance attheendofyear Balance atthebeginningofyear Balance attheendofyear Add: Balance atthebeginningofyear Less: Transferredtogeneralreserve Amalgamation Adjustment(ReferNote35(v)) Less: InfotechGeospatial(India)PrivateLimited Amalgamation Adjustment(ReferNote35(v)) Consolidated StatementofProfitandLoss Less: MinorityInterest(ReferNote(i)below) Infotech Geospatial(India)PrivateLimited Reserve (ReferNote50) Transferred fromContingency Balance attheendofyear Less: InterimDividend Appropriations: Balance at the beginning of the year Balance atthebeginningof Balance attheendofyear the Company. TOTAL Balance attheendofyear Add: Transferredfromsurplusin Balance atthebeginningofyear Cyient Limited(formerlyInfotech Geospatial (India)PvtLtdwith amalgamation ofInfotech transactions during the year (net) 459,585,048 transactions duringtheyear(net) occurrence offorecastedhedge Statement ofProfitandLosson (Refer Note35(i)) Enterprises AmericaInc.) with CyientInc.(formerlyInfotech amalgamation ofSoftentialInc. cashflow hedges(net) effective portionofoutstanding Changes inthefairvalueof Profit fortheyear (Net ofdeferredtax)(ReferNote54) with Nilremainingusefullife Act, 2013ontangiblefixedassets Schedule IIoftheCompanies during theyear Premium onsharesissued Enterprises Limited)(ReferNote35(v)) Tax ondividend distributed toequityshareholders Dividend proposedtobe 9,862,085,814 Amount availableforappropriation Transfer togeneralreserve Residual DividendTax (ReferNote50) 1,535,063,820 3,262,492,046 8,180,960,195 3,809,658,543 5,158,392,065
787,362,639 139,442,027 226,276,767 459,585,048 160,288,507 267,576,052 20,391,668 46,302,607 3,600,000 (229,198) 246,486 March 31,2016 As at ------
18,535,661,741 5,155,038,551 8,914,663,866 3,830,050,211 139,442,027 493,852,819 2,614,267 -
9,469,052,011
3,532,036,414 5,972,309,590 3,744,508,666 4,780,292,065 (187,150,178)
217,100,000 161,000,000
161,000,000 207,993,639 161,000,000 561,805,325 217,100,000 336,397,269 454,726,230 459,585,048 207,993,639 172,198,503 11,389,934
23,904,059 65,149,877 590,719 March 31,2015 As at - - - - 17,878,786,170 5,158,392,065 8,180,960,195 3,809,658,543 (Amount in 459,585,048 267,576,052 2,614,267 ` - ) 147 26 Annual Report 2015-16 cyient.com .Long-termborrowings* 5. *Current maturitiesonlong-termborrowingshavebeendisclosedundertheheadOthercurrentliabilities(ReferNote10). Term Loans i)TermsofRepayment: (ii) NatureofSecurity: (i) TermLoansofRangsonsElectronicsPrivateLimited: 5.1 . TermLoanofCyientSingaporePrivateLimited: 5.2 . TermLoanofCyientInc.(formerlyInfotechEnterprises AmericaInc.): 5.3 TOTAL Secured Unsecured a. Guarantees:CorporateGuaranteeofCyientLimited Secondpari-passuchargeoncurrentassetsandothermovableassetoftheCompany. ii. ii. Firstpari-passucharge onallexistingandfuturefixedassetsoftheBorrower,tobesharedwithterm i. Term LoansareborrowedfromStateBankofMysore&HDFCLimited,andsecuredby- Nature ofSecurity&TermsRepayment: b. c. d. During theyearCyientSingaporePrivateLimitedavailedaterm loanof as atMarch31,2016is secured byacorporateguaranteefromCyientLimited(formerly InfotechEnterprisesLimited).Outstandingbalance a CyientInc.(formerlyInfotechEnterprisesAmericaInc.)availedatermloanof (a) From Others(ReferNote5.4below) (Refer Notes5.1,5.2&5.3below) From Banks Term Loanof lenders. 2015 : Rate ofinterest3.00%p.a.aboveBaseRate.OutstandingbalanceasatMarch31,2016is Repayable in48monthlyvariableinstallmentscommencingfromMay2011.LastinstallmentdueApril2015. Rate ofinterest3.00%p.a.aboveBaseRate.OutstandingbalanceasatMarch31,2016is Repayable in60monthlyvariableinstallmentscommencingfromMay2013.LastinstallmentdueApril2018. Term Loan- 31, 2015: (March 31,2015: 2019. Rateofinterest3.00%p.a.aboveBaseRate.OutstandingbalanceasatMarch31,2016is Repayable in60monthlyinstallmentscommencingfromNovember2014.Lastinstallmentdue Term Loan- above BaseRate.OutstandingbalanceasatMarch31,2016 is Repayable in54monthlyequatedinstallmentscommencingfromMarch2016.Rateofinterest1.30%p.a. Term Loan- ` Rate onthetermLoanisLIBOR+1.25%p.apayablemonthly. AmountoutstandingasonMarch31,2016 taken fromHSBCBankonApril1,2014repayableinquarterly installmentsoveraperiodof4years.Interest payable onthistermloanhasbeen fixedat2.2825%perannum.ThisloanfromHSBCBank, USAissecuredby with HSBCBanktoconvertthe floatingrateintoafixedrate.Accordingly,theinterest and swapcharges LIBOR, CyientInc.(formerlyInfotech EnterprisesAmericaInc.)hasenteredintoanInterest SWAPagreement 373,106,250(USD5,625,000) (March31,2015: ` 1,523,731). ` 34,300,000). ` ` `
` 55,000,000: 90,000,000: 150,000,000: 60,000,000: ` ` 218,395,568(March31,2015- 84,000,000) March 31,2016 ` 508,543,750(USD8,125,000)). Tocoverthefluctuationsin ` As at Nil). 681 644,831,988 36,201,274 ,033,262 ` 3,334,686(March31,2015 ` 238,249,710(USD3,600,000).Thisloanis ` 601,000,000(USD10,000,000) March 31,2015 As at ` 23,500,000(March ` ` Nil (March 31, Nil). (Amount in 466,774,083 434,368,750 ` 32,405,333 66,000,000 ` ) 148 26 Annual Report 2015-16 cyient.com .Short-termborrowings 8. Long-termProvisions 7. . a WorkingCapitalLoan ofRangsonsElectronicsPrivateLimited: (a) 8.1 .Long-termliabilities 6. Unsecured Secured (Refer Note36.2(ii)) Provision forcompensatedabsences Provision forgratuity(net)(ReferNote Provision foremployeebenefits TOTAL TOTAL i StateBankofMysore: (i) TOTAL Non-current portionofUnearnedRevenue Deposits Security . LoanfromothersofCyientInsightsPrivateLimited(formerly InvatiInsightsPrivateLimited): 5.4 from otherparties(ReferNote8.2below) (Refer Note8.1below) Working capitalloans .Guarantees:CorporateGuaranteeof CyientLimited (formerlyInfotechEnterprisesLimited). i. Nature ofSecurity: Loan outstandingbalanceason March31,2016is b CyientInc.(formerlyInfotechEnterprisesAmericaInc.)availedatermloanof (b) ` Unsecured loansavailedfromothersandoutstandingasatMarch31,2016 32,405,333). ` Rate onthetermLoanisLIBOR+1.25%p.apayablemonthly.AmountoutstandingasMarch31,2016 taken fromHSBCBankonMay21,2015repayableinquarterlyinstallmentsoveraperiodof3years.Interest Limited (formerlyInfotechEnterprisesLimited). a standbyletterofcreditfromHSBCBank,Indiawhichinturn,issecuredbycorporateguranteeCyient (formerly InfotechEnterprisesLimited). of creditfromHSBCBank,Indiawhichinturn,issecuredbyacorporateguaranteeCyientLimited term loanhasbeenfixedat2.175%perannum.ThisfromHSBCBank,USAissecuredbyastandbyletter Bank toconvertthefloatingrateintoafixedrate.Accordingly,interestandswapchargespayableonthis Inc. (formerlyInfotechEnterprisesAmericaInc.)hasenteredintoanInterestSWAPagreementwithHSBC 275,269,500(USD4,150,000)(March31,2015: 62i)36.2(i)) 8,6,2 323,400,417 389,160,729 264,302,021 ` March 31,2016 March 31,2016 March 31,2016 572,932,023(March31,2015 - ` Nil(USDNil)).TocoverthefluctuationsinLIBOR,Cyient As at As at As at 1,146,570,215 ,4,7,1 1,146,570,215 653,46 5,6,5 5,5,9 582,353,713 258,953,296 653,462,750 88,200,858 90,384,087 2,183,229 2,750 - ` 36,201,274(March31,2015- ` ` 349,470,000 (USD5,500,000) 599,807,958) March 31,2015 March 31,2015 March 31,2015 As at As at As at (Amount in (Amount in (Amount in
196,891,366 582,353,713 200,034,788 812,891,299 769,372,061 43,519,238 3,143,422 ` ` ` ) ) ) 149 26 Annual Report 2015-16 cyient.com 0 Othercurrentliabilities 10. Trade payables 9. . b WorkingCapitalfacilityofCyientSingaporePrivateLimited: (b) 8.1 Note: . c WorkingCapitalfacilityofCyientGmbH(formerlyInfotechEnterprisesGmbH): (c) 8.1 . d Loan ofCyientInc.(formerlyInfotechEnterprisesAmericaInc.): (d) 8.1 . UnsecuredLoanofRangsonsElectronicsPrivateLimited: 8.2 Other payables Interest Accruedbutnotdueonborrowings Unclaimed dividends(ReferNotebelow) i)HDFCBank: (ii) Current maturitiesoflong-termdebt enterprises andsmall enterprises Dues tocreditorsotherthanmicro enterprises (ReferNote32) Dues tomicroenterprisesandsmall Unearned revenue Unearned TOTAL TOTAL repaid duringtheyear. Interest freeLoanfromDirectorsoftheSubsidiaryCompanyinpreviousyearanddueonJuly31,2015wasfully There arenoamountsdueand outstandingtobecreditedInvestorEducationandProtection Fund. - SecurityDeposit - Advancefromcustomers - DerivativeLiability(ReferNote33.1) - Statutoryremittancesandothers(net) - Otherliabilities - Payablesonpurchaseoffixedassets Loan outstandingbalanceasonMarch31,2016is .Guarantees:CorporateGuaranteeofCyientLimited(formerlyInfotechEnterprisesLimited). i. Nature ofSecurity: Loan outstandingbalanceasonMarch31,2016is Working capitalfacilityoutstandingasonMarch31,2016 ` ` During theyearCyientInc.(formerlyInfotechEnterprisesAmericaInc.)borrowedshorttermloansaggregating Infotech EnterprisesLimited). letter ofcreditfromHSBC,IndiawhichinturnissecuredbyacorporateguranteeCyientLimited(formerly Infotech EnterprisesLimited). letter ofcreditfromCitiBank,IndiawhichinturnissecuredbyacorporateguaranteeCyientLimited(formerly the endoffinancialyearunderalinecreditarrangedwithCitiBankNA.Thisloanissecuredbystand Nil).ThisloanissecuredbyacorporateguaranteefromCyientLimited(formerlyInfotechEnterprisesLimited). 696,465,000 (USD10,500,000)(March31,2015- ` March 31,2016 March 31,2016 ` 428,041,147(March31,2015- ` 1,054,665,000 (USD17,250,000))andrepaidthesamebefore 145,597,045(SGD2,962,300)fromHSBC(March31,2015- As at As at ` Nil(March31,2015- 1,842,792 3,106,777,954 3,103,722,355
370,453,857 314,774,016 194,214,831 803,341,190 61,183,798 35,572,044 11,850,934 46,095,482 3,398,935 1,907,528 3,055,599 ,615 ` 993,512)issecuredbyastand ` 168,570,591) March 31,2015 March 31,2015 As at As at 1,400,828,645 2,753,561,257 2,749,439,377 (Amount in (Amount in 514,226,266 498,760,347 193,998,731 141,045,330 35,786,908 3,745,832 3,232,386 7,031,045 1,944,855 1,056,945 4,121,880 ` ` ) ) 150 26 Annual Report 2015-16 cyient.com 1 Short-termprovisions 11. [Net ofadvance Provision fortaxation Provision -others: Provision foremployeebenefits (As atMarch31,2015: TOTAL RfrNt 62i) 142489 9,1,4 158418157,641,592 145,834,118 196,317,148 184,224,849 equity dividend Provision fortaxonproposed Provision forproposedequitydividend Provision forwarranty(ReferNote45) (Refer Note 36.2(ii)) Provision forcompensatedabsences (Refer Note36.2(i)) Provision forgratuity(net) ` 1,892,408,824 ` 1,668,309,906)] 2022911,807,474 12,092,299 March 31,2016 As at 579,3 378,844,391 4,235,256 96,795 – – March 31,2015 As at (Amount in 115,716,178 561,805,325 115,027,787 955,769,664 5,578,782 ` ) 151 26 Annual Report 2015-16 cyient.com
12. FIXED ASSETS (Amount in `) GROSS BLOCK ACCUMULATED DEPRECIATION/AMORTISATION NET BLOCK
DESCRIPTION Asat AcquisitionsAdditions Deletions/Deletions onTranslation BalanceAs at AcquisitionsOther adjustments/For the Deletions/eletions D onranslation T BalanceAs at As at April 1, 2015 through during AdjustmentsSale of exchangeMarch 31, 20162015 April 1, through business Transitionyear adjustment AdjustmentsSale of exchangeMarch 31, 2016 March 31, 2016 March 31, 2015 business the year Business difference combinationrecorded against Surplus Business difference combination (Refer (Refer Note 35) balance in Statement (Refer (Refer Note 35) Note 51) of Profit and Loss Note 51)
A. Tangible Assets a. Land (Refer Note (i) below) - Freehold 15,571,954 - - - - - 15,571,954 ------15,571,954 15,571,954 (15,571,954) (-) (-) (-) (-) (-) (15,571,954) - (-) (-) (-) (-) (-) (-) (-) (15,571,954) (15,571,954) - Leasehold (Refer Note (ii) below) 149,219,020 - - - - - 149,219,020 36,007,497 - - 4,433,528 - - - 40,441,025 108,777,995 113,211,523 (149,219,020) (-) (-) (-) (-) (-) (149,219,020) (31,573,969) (-) (-) (4,433,528) (-) (-) (-) (36,007,497) (113,211,523)5,051) (117,64 b. Buildings (Refer Note (iii) below) 1,944,938,531 - 15,076,544 3,991,669 - 879,181 1,955,144,225 419,359,515 - - 68,708,73685,948 5 26,238 - 487,456,065 1,467,688,160 1,525,579,016 (1,877,457,204) (-)(69,726,362) (2,245,035) (-) (-) (1,944,938,531) (353,361,762) (-) (-) (67,118,763) (1,121,010) (-) (-)9,359,515) (41 (1,525,579,016) (1,524,095,442) c. Leasehold improvements 121,607,191 - 3,014,810 584,200 - 6,552,672 130,590,473 82,909,942 - - 9,510,374 228,930 - 4,729,766 96,921,152 33,669,321 38,697,249 (103,495,862) (10,113,579) (-) (4,410,705) (-) (3,587,045) (121,607,191) (2,921,145) (55,379,877) (-) (22,131,487) (-) (-)477,433) (2, (82,909,942) (38,697,249) (48,115,985) d. Computers 1,784,532,046 - 139,742,801 69,888,154 9,579,027 645,806 1,845,453,472 - 1,549,566,973 - 124,880,587 69,836,628176,915 (578,870) 4, 1,599,855,147 245,598,325 234,965,073 (1,643,611,327)(28,263,070) (136,032,187) (24,101,007)(-) (726,469) (1,784,532,046) (1,410,711,551) (-) (21,562,551) (129,600,178) (13,448,550) (-) (1,141,243) (1,549,566,973) (234,965,073) (232,899,776) e. Plant and equipment 1,281,963,903 - 81,365,484 2,908,417 - 1,140,928 1,359,280,042 667,633,627 - - 96,460,525 2,454,045442 - 241, 761,398,665 597,881,377 614,330,276 (761,391,911)(433,901,500) (90,916,231) (-) (4,245,739) (-) (1,281,963,903) (392,025,331) (212,598,232) (-) (65,414,828)4,764) (2,40 (-) (-) (667,633,627) (614,330,276) (369,366,580) f. Office equipment 522,112,385 - 65,958,824 1,448,170 7,086,436 16,690,467 - 596,227,070 - 370,754,021 56,647,295 1,336,888 2,497,356 14,067,495 437,634,567 158,592,503 151,358,365 (439,992,620) (14,716,553) (65,299,823) (-) (1,104,736) 998,653 (522,112,385) (5,731,779) (288,642,634) (17,106,060)73) (52,614,4 3,369,691 (-) (3,289,384) (370,754,021) (151,358,365) (151,349,986) g. Furniture and fixtures 531,264,484 * - 95,551,432 2,542,996 4,723,641 4,088,891 - 623,638,170 - 303,311,546 51,300,4074,253 2,51 1,435,497 2,982,369 353,644,572 269,993,598 227,952,938 (431,552,587) (55,740,603) (46,877,592) (-) (1,338,424)(4,244,722) (531,264,484) (239,985,271) (-) (17,751,593) (48,649,269)(4,238,658) (-) (1,164,071) (303,311,546) (227,952,938) (191,567,316) h. Electrical installations 439,626,180 - 22,359,880 504 2,045,991 230,290 460,169,855 - 229,858,748 - 42,059,046 - 355,866,072 271,650,00088 188,519,855 209,767,432 (398,580,281) (19,727,196) (21,491,836) (-) (153,576)(326,709) (439,626,180) (7,963,999) (185,278,306) (-) (36,884,991)103) (318, (-) (49,555) (229,858,748) (209,767,432) (213,301,975) i. Vehicles 15,257,272 - 22,299,404 2,315,763 - - 35,240,913 4,959,989 - - 2,881,396 2,315,763 - - 5,525,622 29,715,291283 10,297, (7,973,105) (268,997) (7,995,608) (-) (504) (980,942) (15,257,272) (4,683,497) (249,880) (-) (1,007,050) (980,438) (-) (-)959,989) (4, (10,297,283) (3,289,608) j. Tools and Equipment 48,060,135 - 4,171,331 - - - 52,231,466 33,438,529 - - 5,976,337 - - - 39,414,866 12,816,600 14,621,606 (-) (48,127,071) (816,092) (-) (883,028) (-) (48,060,135) - (32,756,025) (-) (1,254,752) (572,248) (-) (-) (33,438,529),606) (14,621 (-) k. Borewell 150,813 - - - - - 150,813 150,813 ------150,813 - - (-) (150,813) (-) (-) (-) (-) (150,813) - (127,999) (-) (22,814) (-) (-) (-) (150,813) (-) (-)
TOTAL 6,854,303,914 - 449,540,510 83,679,873 25,455,204 28,208,126 7,222,917,473 - 3,697,951,200 - 462,858,231 79,272,4551,288,832 8,733,314 4,094,092,494 2 3,128,824,979 3,156,352,714 Previous year (5,828,845,871) (611,009,382) (443,566,436) - (6,910,754)(36,028,529) (6,854,303,914) (2,961,642,198)03) (17,106,060) (301,663,2 (429,132,133) (19,714,080) (-) (8,121,686) (3,697,951,200) (3,156,352,714) (2,867,203,673)
B. Intangible Assets a. Computer software 2,315,592,641 - 236,737,986 - 2,006,426 12,057,440 2,562,381,641 - 1,882,988,134 - 331,141,398 - 633,128,326,637 11 2,224,823,041 337,558,600 432,604,507 (2,024,867,806) (21,194,452) (268,621,832) (-) (255,050) 653,501 (2,315,592,641) (1,600,352,939) (-) (18,702,681) (262,344,984) 125,270 (-) (1,462,260) (1,882,988,134) (432,604,507) (424,514,867) b. Other intangible assets 147,805,287 - 577,437,216 - - - 725,242,503 115,153,934 - - 98,955,237 - - 2,048,611 216,157,782 509,084,721 32,651,353 (122,569,805) (-)(25,235,482) (-) (-) (-) (147,805,287) (71,858,825) (-) (25,235,482) (18,059,627) (-) (-) (-) (115,153,934)32,651,353) ( (50,710,980)
TOTAL 2,463,397,928 -814,175,202 - 2,006,426 12,057,440 3,287,624,144 - 1,998,142,068 - 430,096,635 - 633,128 2,440,980,823 13,375,248 846,643,32165,255,860 4 (2,147,437,611) (21,194,452) (293,857,314) (-) (255,050) 653,501 (2,463,397,928) (1,672,211,764) (25,235,482) (18,702,681)0,404,611) (28 125,270 (-) (1,462,260) (1,998,142,068) (465,255,860) (475,225,847)
Grand Total 9,317,701,842 - 1,263,715,712 83,679,87340,265,566 27,461,630 10,510,541,617 5,696,093,268 - - 892,954,866455 79,272, 9,366,442 34,664,080 6,535,073,317 3,975,468,300 3,621,608,574 Previous year (7,976,283,482) (632,203,834) (737,423,750) (-) (35,375,028)(7,165,804) (9,317,701,842) (4,633,853,962) (42,341,542) (320,365,884) (709,536,744) (19,588,810) (-) (9,583,946) (5,696,093,268) (3,621,608,574) (3,342,429,520) *Including Interior Work Notes: (i) Includes `3,947,700 (31.03.2015: `3,947,700) in respect of which land allocation letters have been received, pending completion of legal formalities relating to conveyance. (ii) Includes `9,283,720 (31.03.2015: `9,283,720) in respect of which land allocation letter has been received, pending completion of legal formalities relating to conveyance. (iii) Includes `779,663,326 (31.03.2015: `779,663,326) relating to Building constructed on leasehold land. (iv) Figures in brackets relate to the previous year As at As at For the year endedFor the year ended March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 C. Capital work-in-progress : D. Depreciation and amortisation expense: Construction related contracts - 3,408,035 Depreciation and amortisation on Other fixed assets 23,745,440 51,746,044 Tangible assets and Intangible assets 892,954,866 709,536,744 Amortisation of goodwill on consolidation – 3,238,362 TOTAL 23,745,440 55,154,079 TOTAL 892,954,866 712,775,106 152 26 Annual Report 2015-16 cyient.com 13. Non-Current Investments -Trade Non-Current 13. 4 Longtermloansandadvances 14. Aggregate provisionfordiminution Aggregate costofunquotedinvestments Note: )Prepaidexpenses,consideredgood employees Loansandadvancesto d) c) a InvestmentinAssociateCompany (a) Unquoted Investments )Securitydeposits Capitaladvances,consideredgood b) a) (Unsecured) )MATcreditentitlement,considered f) Advanceincometaxes(netof e) b Otherentities (b) )BalanceswithGovernmentauthorities g) Infotech AerospaceServicesInc.,USA TOTAL Add :Shareofprofit each fullypaid) (March 31,2015:490sharesof$0.01 490 sharesof$0.01parvaluefullypaid-up i CanestaInc.,USA (i) i)TrafficmasterPlc., (ii) es rvso o obfldpst 1,0,0 173635 62000117,636,512 16,200,000 157,306,385 16,200,000 Less: Provisionfordoubtfuldeposits good (ReferNote42.5) (As atMarch31,2015: provisions Considered good Government Authorities Considered doubtful-Balanceswith aacswt oenetAtoiisTOTAL - BalanceswithGovernmentAuthorities Less :Provisionforotherdoubtful value ofinvestment Less: Provisionfordiminutionin GBP 1eachfullypaid) (March 31,2015:35,088sharesof each fullypaid-up 35,088 ordinarysharesofGBP1 $ 0.19275eachfullypaid) (March 31,2015:10,000sharesof each fullypaid-up 10,000 sharesof$0.19275parvalue osdrddutu 1,0,0 16,200,000 16,200,000 doubtful Considered Considered good ` 3,550,986,486 United Kingdom ` 2,806,816,516) 5,0,8 173,506,385 157,306,385 665,146,690 665,599,249 7,1,1 675,210,116 2,2,3 120,324,634 ,5,9 6,551,990 6,659,000 452,559 5,5 651660 5,5 613,222,625 452,559 665,146,690 452,559 March 31,2016 March 31,2016 As at As at 1,64 599,477,140 104,476,400 795,739,966 795,739,966 9,3,5 103498675,210,116 150,374,958 795,534,750 32,863,855 23,853,040 2311762,321,127 5,444,637 6,551,990 0,1 65190107,010 6,551,990 107,010 98,206
133,836,512 117,636,512 613,222,625 613,675,184 524,835,158 6,659,000
452,559 March 31,2015 March 31,2015 As at As at 1,365,652,386 (Amount in (Amount in 461,876,077 675,415,332
675,415,332
88,120,442 33,902,926 48,342,116 2,551,688
6,551,990 98,206 ` ` ) ) 153 26 Annual Report 2015-16 cyient.com 6 CurrentInvestments 16. Othernon-currentassets 15. 45,766 (31.03.2015-Nil)Units of 47,951 (31.03.2015-Nil)Units of TOTAL Long-term Deposits,considered good (Unsecured) Nil (31.03.2015-3,857,933)Unitsof Nil (31.03.2015-40,222)Unitsof Investment inmutualfunds: (at lowerofcostandfairvalue) Quoted tradeinvestments Nil (31.03.2015-3,492,720)Unitsof Nil (31.03.2015-44,999)Unitsof Nil (31.03.2015-40,611)Unitsof 406,722 (31.03.2015-Nil)Unitsof 45,942 (31.03.2015-Nil)Unitsof 47,822 (31.03.2015-Nil)Unitsof 50,004 (31.03.2015-Nil)Unitsof 499,961 (31.03.2015-Nil)Unitsof 50,223 (31.03.2015-45,191)Unitsof Nil (31.03.2015-39,581)Unitsof Nil (31.03.2015-43,885)Unitsof Pioneer LiquidFund-PlanADaily DividendReinvestment ICICI PrudentialLiquidFundRegularPlanDailyDividend L&T Liquidfund-Dailydividend reinvestmentplan al iied RglrPa) 40,240,224 - - DailyDividend-(RegularPlan) IDFC MoneyManagerFund-InvestmentPlan pinDvdn enetet 45,246,472 45,010,820 - - 40,239,009 - Institutional DailyDividendReinvestment Taurus LiquidFund-ExistingPlanSuper Option DividendReinvestment Reliance LiquidFund-CashPlanDailyDividend JM HighLiquidityFund-DailyDividendOption(39) enetet4,7,9 - - 46,177,198 48,751,678 - 45,000,000 45,241,872 40,041,669 35,056,430 Reinvestment 50,021,648 IDBI LiquidFundRegularPlanDailyDividend - Reinvestment 50,284,356 UTI-Liquid CashPlanInstitutionalDailyDividend 50, - - Axis LiquidFund-DailydividendReinvestment Birla SunLifeCashPlus-DailydividendRegularplan Religare InvescoLiquidFund-DailyDividend L&T Liquidfund-DailyDividendReinvestmentPlan - PlanADailyDividend-Reinvestment Baroda PioneerTreasuryAdvantageFund Daily DividendOptionReinvestment Sundaram UltraShort-termFundRegular ` ` ` ` ` ` ` ` ` ` 1000 each 1000 1000 each 1000 1000 each 1000 each 1000 1000 each 1000 each 1000 each 1000 each 1000 each 1000 1000eachBaroda ` ` 100 each 100 each 100 ` ` 10 each 10 10 each 10 ` 1000 each 1000 ac 1 06March31,2015 March 31,2016 March31,2015 March 31,2016 As at As at 45,817,467 40,698,051 48,508,419
2,119,870 2,119,870 9,4 - 093,549 As at As at (Amount in (Amount in 1,840,800 1,840,800 (Contd.) ` ` - - - ) ) 154 26 Annual Report 2015-16 cyient.com 8 Tradereceivables 18. Inventories(Refernotebelow) 17. Note: Note: Consumables &Stores Finished Goods Work-In-Process Less: Provision for doubtful trade receivables 262,071,930 722,008,641 119,234,124 483,899,683 119,234,124 722,008,641 262,071,930 Other tradereceivables,considered Less:Provisionfordoubtfultrade receivables 43,629 (31.03.2015-Nil)Unitsof 3,917,754 (31.03.2015-Nil)Unitsof 98,181 (31.03.2015-Nil)Unitsof 40,391 (31.03.2015-Nil)Unitsof 4,298,654 (31.03.2015-Nil)Unitsof 30,062 (31.03.2015-Nil)Unitsof 45,919 (31.03.2015-Nil)Unitsof were dueforpayment exceeding sixmonthsfromthedatethey Trade receivablesoutstandingforaperiod (Unsecured) Materials Raw 45,050 (31.03.2015-Nil)Unitsof Aggregate marketvalueofquotedinvestments Aggregate costofquotedinvestments TOTAL TOTAL DSP BlackLiquidFundInstitutionalPlanDaliyDividend LIC NomuraMFLiquidFundDividendPlan DCLqi udDvdn al enetet 0,2,4 - - 100,126,546 40, HDFC LiquidFundDividendDailyReinvestment Kotak FloaterShortTermDailyDividendRegularPlan 45,940,419 Option Reinvestment Sundaram MoneyFundRegularDailyDividend Option DividendReinvestment Reliance LiquidFundCashPlanDailyDividend IDFC Cashfund-DailydividendRegularplan Considered good Considereddoubtful TOTAL MHg iudt udDiyDvdn pin 08292- 40,862,962 JM HighLiquidityFundDailyDividendOption InventoriesarecarriedatthelowerofCostandNetrealisablevalue. ` ` ` ` ` ` 1000 each 1000 1000 each 1000 each 1000 each 1500 each 1000 1000 each 1000 ` ` good 10each 10 each 10 262,071,930 984,080,571 722,008,641 March 31,2016 March 31,2016 As at As at ac 1 06March31,2015 March 31,2016 6,14
5,422,997,220 978,5 As at 807,283,624 790,478,924 790,566,064 790,478,924 79, 45,077,619 67,928,255 23,397,051 47,905,038 33623- - 43,396,203 45,957,130 5,005,861 970,954 6,4 - 860,641 79,884
119,234,124 603,133,807 483,899,683 March 31,2015 March 31,2015 As at As at As at 5,335,859,590 4,851,959,907 (Amount in (Amount in (Amount in 606,063,549 113,599,323 439,950,082 336,076,496 336,079,777 336,076,496 40,293,170 12,220,974 ` ` ` - - ) ) ) 155 26 Annual Report 2015-16 cyient.com Notes : 9 Cashandbankbalances 19. 0 Short-termloansandadvances 20. i Balances with banksincludedepositsaggregatingto (i) TOTAL Accounting Standard3CashFlowStatement definition ofcashandequivalentsasper Of theabove,balancesthatmeet Balances withbanks(ReferNote(i)below) Other loansandadvances Balances withGovernmentauthorities, Derivative Asset(ReferNote33.1) Prepaid expenses,consideredgood Less: Provisionfordoubtfuldebts Loans andadvancestoemployees Security deposits,consideredgood (Unsecured) Cash on hand Less : i)Includesdepositsplacedinlienforcreditfacilitiesaggregating (ii) ii Depositsin (iii) In depositaccounts(ReferNote(i)below) In EEFCaccounts Remittance intransit In currentaccounts amounting to In earmarkedaccounts(ReferNote(iii)below) OA 1,088, TOTAL Considered doubtful good Considered good Considered Considereddoubtful Consideredgood from theBalanceSheetDate. margin moniesamounting Softential Inc.whichwasreleasedtothepromotersofonfulfullmentSPAtermsandconditions. of thepurchaseconsiderationpaidbyCyientInc.(formerlyInfotechEnterprisesAmericaInc.)towards Provision fordoubtfulloansand advances (Refer Note(ii)below) security forbankguarantees In depositsheldasmarginmoney/ Unpaid dividendaccounts earmarked accountsincludesamountplacedinEscrow ` 6,231,438(March31,2015- ` 6,231,438(March31,2015- 4,060,483,483 1,818,305,091 ` 189,742,859 189,269,032 855,228,186 1,414,970)whichhaveanoriginalmaturityofmorethan12months 0,1,6 105,817,464 46,971,025 46,735,307 1824411,852,464 473,827 235,718 473,827 2578 67537 3,1 58,502,133 235,718 46,735,307 235,718 March 31,2016 March 31,2016 ` 1,991,241(March31,2015- ` As at As at 1,414,970). 6,833,173,432 6,950,843,360 6,851,686,688 517,568,796 6,188,573,346 517,568,796 6,851,686,688 587,322,419 175,014,071 ` 8,6,3 7,2 130,353,712 473,827 189,269,032 21,837,628(March31,2015- 98,645,573 90,173,070 ` Nil(March31,2015- 150,000 511,099 663,899
3,790,671,247 1,538,525,967 130,827,539 334,722,030 130,353,712 ` 58,737,851 58,502,133 1,663,581)andmarginmonies 7,085,306 473,827 235,718 March 31,2015 March 31,2015 ` 62,590,000)beingpart As at As at ` 20,212,938)and 5,703,851,435 6,228,505,537 1,356,069,068 (Amount in (Amount in 617,686,755 462,817,433 86,519,035 39,635,106 297,085 190,000 ` ` ) ) 156 26 Annual Report 2015-16 cyient.com 1 Othercurrentassets 21. 3 Otherincome(net) 23. RevenuefromOperations 22. TOTAL TOTAL Less :Exciseduty and translations(net)(ReferNote33.2) Net gainonforeigncurrencytransactions Dividend incomefromcurrentinvestments Revenue fromOperations(Gross) Other operatingrevenues Others .Interestincomecomprisesof: i. Note: TOTAL Other non-operatingincome(ReferNote (ii) below) Profit onSaleofLongTermInvestments(ReferNote51) Interest income(ReferNote (i) below) Sale ofproducts Sale ofservices,ManufacturingIncomeandServiceCharges Interestaccruedondeposits Unbilled revenue i Othernon-operatingincomecomprisesof: ii. Total interestincome Others Interest onIncometaxrefund Interest frombanksondeposits Liabilities/provisions nolongerrequiredwrittenback Totalothernon-operatingincome Rental Incomefromoperating lease Miscellaneous income Miscellaneous Profit/(loss) onsaleoffixedassets (net) March 31,2016 As at o h ereddFortheyearended For theyearended o h ereddFortheyearended For theyearended 1,
1,661,875,323 ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 214,798,850
993,347,741 116,673,568 31,036,176,405 30,955,698,122 849963026,787,479,644 28,489,936,380 2,545,451,513 1,085,394,203
149,770,345 556,641,036
330,988,437 3,8,3 489,965,130 330,988,437 322,429,338 149,770,345 70,457,124 80,478,283 77,090,644 23,135,239 24,859,146 7,900,889
1,250,153 788,512 972,424 658,210 March 31,2015 As at 27,359,329,811 27,365,103,096 1,217,657,735 1,833,802,279 1,467,084,920 (Amount in (Amount in (Amount in 596,869,391 489,965,130 112,206,247 224,274,284 577,607,394 142,443,075 471,369,846 112,206,247 23,732,404 86,585,256 16,420,497 18,616,967 5,773,285 2,174,787 2,541,159 (652,572) 16,058 ` ` ` - ) ) ) 157 26 Annual Report 2015-16 cyient.com 5 Costofmaterialsconsumed 25. Employeebenefitsexpenses 24. 7 Operating, administrationandotherexpenses 27. Changesininventoriesoffinishedgoods 26. Less: Capitalised(ReferNote47(b)) Staff welfareexpenses Consumables &storesconsumed Insurance Rates andtaxes Gratuity Net decrease Closing Stock: Advertisement expenses Marketing Power andfuel Printing andstationery Travelling andconveyance Communication Sub contractingcharges Excise dutyonclosingstockoffinishedgoods(net) Factory rent Rent includingleaserentals(ReferNote40) Opening Stock: Add :Purchases Opening stock Stock onacquisition(ReferNote35(iii)) Social securityandotherbenefitsforoverseasemployees Salaries andbonus and work-in-progress Less :Closingstock Contribution toprovidentandotherfunds TOTAL iihdgos67,928,255 Finished goods Work-in-progress Work-in-progress iihdgos 1,9,2 113,599,323 Finished goods TOTAL
99094147,899,209 79,970,954 153,892,493 40,293,170 o h ereddFortheyearended For theyearended Fortheyearended For theyearended o h ereddFortheyearended For theyearended Fortheyearended For theyearended ac 1 06March31,2015 March 31,2016 March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 March31,2015 March 31,2016 18,08 16,116,498,658 1 2,248,514,734 1,651,936,509 1,094,233,204 ,881,181,192 (21,200,954)
212,128,584 807,283,624 893,077,656 236,415,151 439,950,082 498,028,349 289,664,988 107,043,197 710,225,466 177,918,790
42,525,240 21,073,140 49,287,836 92,572,195 73,207,977
1,415,617 0,838,009 5,993,284 5,327,426 - 113,599,323 158,839,747 162,588,970 40,293,170 14,920,201,448 16,756,048,085 1,647,505,952 1,203,026,108 (Amount in (Amount in (Amount in (Amount in (13,287,312) 164,927,148
153,892,493 321,428,717 476,313,179 750,303,587 254,735,076 185,660,693 228,280,674 439,950,082 425,477,935 282,602,171 167,536,224 291,098,173 188,174,375 651,301,043 72,856,971 40,053,549 90,111,004 3,340,522 7,580,656 5,659,556 448,413 (Contd.) ` ` ` ` - ) ) ) ) 158 26 Annual Report 2015-16 cyient.com 8 Financialcosts 28. TOTAL 6,7 269,019,833 2,707,363 44,248,701 819,358 308,535,098 279,224,996 - 12,432,085 48,342,880 35,578,562 395,571,760 82,441,827 - 37,380,304 494,979,911 47,567,491 89,692,855 134,681,848 493,542 i. 39,902,254 - Note: 786,485,132 TOTAL (89,692,855) expenses Miscellaneous 36,806,023 Purchase ofcomputersoftware 1,655,852 Training anddevelopment Recruitment expenses (35,150,171) Freight Outwards Auditors' remuneration(ReferNote(i)below) Loss ondiscardoffixedassets Less: Reversalofprovisionfordoubtfuldebts Trade receivableswrittenoff(net) Provision fordoubtfuldebts Bad debts/advanceswrittenoff Legal &Professionalcharges (Refer Note48) Expenditure forCorporateSocialResponsibility Directors remuneration: Repairs andmaintenance Interest Expenseson Total Auditors'remuneration As auditors-statutoryaudit Subsidiaries Reimbursement ofexpenses For servicesrenderedbyaffiliatesofstatutoryauditors For otherservices As auditors-statutory Company Auditors' remuneration(netofservicetax)comprisesof: tes 5476583,764,037 4,511,839 19,789,845 605,421,205 95,407,685 7,303,632 6,690,539 9,913,833 688,641,953 9,976,332 Directors sittingfees Non executivedirectorscommission - Others Machinery - - Buildings tes Others Working Capitaldemandloans Term Loans audit o h ereddFortheyearended For theyearended o h ereddFortheyearended For theyearended ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 178,830,786 39,902,254 95,789,768 20,501,367 80,164,675 50,971,219 32,069,799 52,635,473 1,128,747 4,475,000 7,297,140 6,500,000 6,136,430,253 (Amount in (Amount in 23,855,853 37,380,304 57,558,151 16,059,691 23,534,167 17,964,293 41,752,330 3,875,000 2,669,794 6,500,000 479,657 ` ` ) ) 159 26 Annual Report 2015-16 cyient.com 0 ListofSubsidiaries,AssociateandJointVentureconsideredforConsolidation: 30. 29. .CyientInc.,(formerlyInfotechEnterprises 4. .InfotechHALLimited 1. InfotechAerospaceServicesInc. 1. CyientBeneluxBV(formerlyInfotech 2. CyientEuropeLimited(formerlyInfotech 1. .InfotechGeospatial(India)PrivateLimited(IGIL) 9. 8 CyientSingaporePrivateLimited 18. .CyientSchweizGmbH(formerlyInfotech 3. statutory authoritiestoalignthenameofparentCompany. following subsidiarycompanieshavechangedtheirnamesuponreceiptofappropriateapprovalsfromrespective Subsequent tochangeinthenameofparentCompanyfromInfotechEnterprisesLimitedCyient l Name of the Company No. Sl. .CyientAB(formerlyInfotechEnterprisesAB) 8. .CyientGmbH(formerlyInfotech 7. 4 RangsonsElectronicsPrivateLimited 14. .CyientCanadaInc.(formerlyInfotechSoftware 5. 9 CyientSRO 19. 6 InfotechEnterprisesInformationTechnology 16. TechnoToolsPrecisionEngineeringPrivateLimited 15. CyientInsights LLC(formerlyInvatiInsights 13. CyientInsightsPrivateLimited(formerly Japan 12. CyientKK(formerlyInfotechEnterprisesJapanKK) 10. 1 InfotechEnterprisesInformationTechnology 11. 7 CyientAustraliaPtyLimited 17. .SoftentialInc. 6. Invati InsightsLLC Invati InsightsPrivateLimited Infotech EnterprisesJapanKK Infotech EnterprisesAB Infotech EnterprisesGmbH Infotech SoftwareSolutionsCanadaInc. Infotech EnterprisesAmericaInc. Infotech EnterprisesGmbH Infotech EnterprisesBeneluxBV Infotech EnterprisesEuropeLimited Subsidiary Name Joint Venture Associate 100% 100% U.K Enterprises BeneluxBV) Enterprises EuropeLimited) Subsidiaries Enterprises GmbH) Solutions CanadaInc.) Services GmbH(IEITSGmbH) Invati InsightsPrivateLimited) Services PvtLimited(IEITS) @13 @3 @1 @10 @2 @1 @8 @11 @8 @6 @9 Enterprises GmbH) @12 @7 America Inc.) @4 @5 )@6 @7 zc eulc100% Czech Republic Incorporation ehrad 100% Netherlands wteln 100% Switzerland onr fEtn fhligExtentofholding Extentofholding of Country igpr 100% Singapore emn 100% Germany Germany utai 100% Australia Sweden Canada U.S.A U.S.A U.S.A U.S.A India India India India India India Cyient KK Cyient Cyient AB Cyient GmbH Cyient EuropeLimited New Name Cyient Benelux BV Cyient Canada Inc. Cyient Inc. Cyient InsightsPrivateLimited Cyient Schweiz GmbH Cyient InsightsLLC ac 1 06March31,2015 March 31,2016 % sa (%)as at (%) asat 100% 100% 100% 100% 49% 51% 50% 74% 74% 51% - - - - 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 49% 51% 50% 74% 74% 51% - - - 160 26 Annual Report 2015-16 cyient.com 1 ContingentLiabilitiesandCommitments 31. @ 11ContingentLiabilities 31.1 Note: @ @ @ @ @ @ @ @ @ @ @ @ 13 12 11 10 9 8 7 6 5 4 3 2 1 ii Othermoneyforwhich (iii) Guarantees(ReferNote (ii) commercial operationsduringtheyear. wholly-owned subsidiaryCyientEuropeLimited(formerlyInfotechEnterprisesLimited).SROhascommenced On September30,2015,theCompanyincorporatedawhollyownedsubsidiary,CyientSRO,inCzechRepublic,throughits ` Singapore PrivateLimitedcommencedcommercialoperationsduringtheyearpursuanttoCompanyinvestinganamountof On May07,2015,theCompanyincorporatedawhollyownedsubsidiary,CyientSingaporePrivateLtd,inSingapore. an amountof Australia. CyientAustraliaPtyLimitedcommencedcommercialoperationsduringtheyearpursuanttoCompanyinvesting On September05,2014,theCompanyincorporatedawhollyownedsubsidiary,CyientAustraliaPtyLimited,inMelbourne, group isincludedintherespectiveschedulestheseconsolidatedfinancialstatements.(ReferNote44). liabilities, incomeandexpensesofthejointventureasadjustedforeliminationfromtransactionswithvariouscompaniesinthe accordance withtheAccountingStandard27"FinancialReportingofInterestsinJointVentures".Cyient'sshareassets, The 50%intheJointVenturei.e.,InfotechHALLimitedhasbeenaccountedforusingproportionateconsolidationmethod for thethreemonthsendedMarch31,2015and2016. statements includeauditedfiguresoftheassociateforyearendedMarch31,2016aftermakingadjustmentsoperatio The Company'sassociateInfotechAerospaceServicesInc.followscalendaryearasitsreportingperiod.consolidatedfinanc as thetransactionsbetweenSeptember01,2015and16,werenotmaterial. Company ceasedtoconsolidatetheseentitiesfromitsconsolidatedfinancialresultsw.e.fSeptember01,2015forconvenience wholly-owned subsidiary,InfotechEnterprisesInformationTechnologyServicesGmbH,Germany,onSeptember16,2015.The The Companydisinvestedits100%stakeinInfotechEnterprisesInformationTechnologyServicesPrivateLimited,Indiaand shareholding inInfotechEnterprisesInformationTechnologyServicesGmbH,GermanyonMarch23,2015. Infotech EnterprisesInformationTechnologyServicesPrivateLimited,awhollyownedsubsidiaryoftheCompanyacquired100% convenience astherewerenomaterialtransactionsbetweenFebruary01,2015&04,2015.(ReferNote35(iii)) Precision EngineeringPrivateLimited),onFebruary04,2015andthesamehasbeenconsolidatedfrom01,for The Companyacquired74%shareholdinginRangsonsElectronicsPrivateLimited(anditswhollyownedsubsidiary,TechnoTools Invati Insights,LLC)onOctober16,2014(ReferNote35(ii)).Theseentitieshavebeenconsolidatedfrom2014. 15, 2014.Subsequenttotheacquisition,InvatiInsightsPrivateLimitedacquired100%stakeinCyientLLC(Formerly The Companyacquired51%shareholdinginCyientInsightsPrivateLimited(formerlyInvatiLimited)onOctober was mergedwiththeCompanyeffectiveApril1,2015(ReferNote35(v)). Pursuant toaresolutionoftheBoardDirectorsandorderHighCourtJudicature,AndhraPradesh&Telangana,IGIL Wholly ownedbyCyientLimitedthroughitswhollysubsidiaryGmbH(formerlyInfotechEnterprisesGmbH). America Inc.)witheffectfromApril01,2015(ReferNote35(i)). Inc. (formerlyInfotechEnterprisesAmericaInc.).SoftentialwasmergedwithCyient With effectfromApril01,2014,theCompanyacquired100%stakeinSoftentialInc,throughitswholly-ownedsubsidiaryCyient Wholly ownedbytheCompanythroughitswhollysubsidiaryCyientInc.(formerlyInfotechEnterprisesAmericaInc.) Limited) Wholly ownedbytheCompanythroughitswhollysubsidiaryCyientEuropeLimited(formerlyInfotechEnterprises Notes: ClaimsagainsttheCompanynotacknowledged asdebt (i) The saidsubsidiarywasnotconsideredforconsolidation. Company isyettocommencecommercialoperationsandtherearenofinancialtransactionsfortheyearendedMarch31,2016. Particulars During theyear,Companyincorporatedawhollyownedsubsidiary,CyientEngineering(Beijing)Limited,inChina.The
238,179,600. (Refer Note(h)&(i)below) .The Companyhasdisputedvariousdemands(includingdraftnotice ofdemand)raisedbyIncomeTaxauthoritiesfor a. (Refer Note(a),(b),(c),(d),(e)&(f)below) ` stages ofappeals.Theaggregate amountofdisputedtaxnotprovidedforis the assessmentyears1997-98to 2010-11(March31,2015-1997-98to2010-11).Theordersarepending atvarious 138,351,334). TheCompanyisconfidentthatthese appealswillbedecidedinitsfavour. ` 46,265. the Groupiscontingentlyliable (g) below) ac 1 06March31,2015 March 31,2016 ,9,2,8 1,505,387,236 5,796,822,286 587,147,494 As at ` 155,897,185 (March31,2015- - (Amount in 490,940,457 As at 23,500,000 ` ns ial ) 161 26 Annual Report 2015-16 cyient.com 12Commitments 31.2 i Estimatedamountofcontractsremaining tobeexecutedon (i) ii Duringthepreviousyear,Companyacquired74%ofshare capitalofRangsonsElectronicsPrivate (iii) Note: Financialsupport toa (ii) Particulars .CyientInc.(formerlyInfotechEnterprisesAmericaInc.)hascertainobligationstowardsrevenueauthoritiesforits i. AsubsidiaryCompanyhassub-leasedoneofitsleasedfacilitieswitheffectfromFebruary1,2015tillJune30,2017, h. .Corporateguaranteegiventosubsidiary'sbankers obtainlineofcredit g. TheGovernmentofIndianotifiedanamendment tothePaymentofBonusAct,1961wherebyapplicableslabsas f. .DifferentialamountofCustomsDuty(excludinginterest)inasubsidiaryCompanyrespectmachineryimported e. .Duringthepreviousyear,Company receivedanorderfromProvidentFund(PF)authoritiesregardingPFpayment d. .TheCompanyhasdisputedvariousdemandsraisedbytheServiceTaxauthoritiesforfinancialyears2006-07to c. .TheCompanyhasdisputed various demandsraisedbytheSalesTaxauthoritiesforfinancialyears2004-05to b. registered escrowagentasthe custodian. years fromthedateofacquisition. ThesebalancesharesarecurrentlyplacedinanEscrow accountwitha Agreement, theCompanyhasanoptiontoacquirebalance 26%ofthesharecapital,onorbeforeseven Limited onFebruary4,2015(ReferNote35(iii)).According toconditionsstipulatedintheInvestment Intangible assets Tangible assets capital accountandnotprovidedfor(netofadvances) Commitmenttowardsintangibleassetsincludesoftwareand relatedpurchases. ` April 01,2012).Pendingfurtherevaluation,anamountof step downsubsidiaryWellscoInc.(amalgamatedwithCyient(formerlyInfotechEnterprisesAmericaInc.)w.e.f the renttooriginallandlordforbalanceperiodofleasefromdatesuchdefault. based onatripartiteagreement.Intheeventofsub-lessee'sdefault,subsidiaryCompanyshallbeliabletopay ` to thefinancialyear2014-15,notprovidedfor,is Judicature atHyderabadforthestatesofTelanganaandAndhraPradesh.Theaggregateamountliabilitypertaining contested theretrospectiveapplicabilityofamendmentforfinancialyear2014-15inHighCourt well ascoveragelimitwasenhanced.ThesaidamendmentmadeeffectiveApril1,2014.Companyhas under variousexportpromotionschemes 2015 -` ` appealed againsttheorderandsameispendingbeforeProvidentFundAppellateTribunal.TheCompanypaid on certainallowancesgivenbytheCompanytoitsemployeesforyears2010-112012-13.The 2015 - 2011-12 (March31,2015-2011-12).Theaggregateamountofdisputedtaxnotprovidedforis A subsidiaryCompanyhasdisputedservicetaxdemandsraisedbytheServiceTaxauthoritiesforfinancialyears show causenoticesreceivedbytheCompany. ` appropriate authorities.Theaggregateamountofdisputedtaxnotprovidedforis` 2013-14 (March31,2015-2006-07to2012-13).TheCompanyhasfiledappeals,whicharependingwiththe include showcausenoticesreceivedbytheCompany. 2015 -` with theappropriateauthorities.Theaggregateamountofdisputedtaxnotprovidedforis 2009-10 and2012-13(March31,20152004-05to2009-10).TheCompanyhasfiledappeals,whicharepending 2008-09 to2009-10.TheaggregateamountofdisputedtaxnotprovidedforisNil(March31,2015- A subsidiaryCompanyhasdisputedincometaxliabilitiesraisedbyIncomeTaxauthoritiesfortheassessmentyears 23,500,000)hasbeenprovidedinthebookstowardsadjustmentofanyliabilitiespertainingsuchobligation. 1,505,387,236). Theamountoutstandingagainstsuch guarantees is` 5,136,244 (March31,2015- 172,263,324).TheCompanyisconfidentthattheseappealswillbedecidedinitsfavour.abovedoesnotinclude ` 592,349). 20,096,061). TheCompanyisconfidentthattheseappealswillbedecidedinitsfavour.abovedoes not 25,681,216). subsidiary Company ` 5,136,244) underprotest,being20%ofthetotaldemand` ` 152,595,916.(March31,2015- ` 92,177,948(March31,2015- ` 50,808,780(March31,2015- ac 1 06March31,2015 March 31,2016 2,817,785,048. 3,2,0 25,588,497 533,178,050 139,524,000 As at 0349560,179,835 60,324,945 ` 129,989,853). ` ` 5,796,822,286 (March31,2015- Nil) 140,104,649(March31,2015- ` 20,098,231 (March31, 25,681,216(March31, ` ` 592,349 (March31, 15,916,183 netof (Amount in ` 479,323,840 As at 3,966,320). ` ) 162 26 Annual Report 2015-16 cyient.com 3 DerivativeInstruments andHedging-Company 33. DisclosuresrequiredunderSection22oftheMicro,SmallandMediumEnterprisesDevelopmentAct,2006: 32. i)Interestduethereonremainingunpaidtoanysupplierasatthe (ii) 33.1 Principalamountremainingunpaidtoanysupplierasattheend (i) 31.3 ii Theamountofinterestpaidalongwiththeamounts (iii) v Theamountofinterestaccruedandremainingunpaidatthe (v) Theamountofinterestdueandpayablefortheyear (iv) basis ofinformationcollectedbytheManagement.Thishasbeenrelieduponauditors Dues toMicroandSmallEnterpriseshavebeendeterminedtheextentsuchpartiesidentifiedon Theamountoffurtherinterestdueandpayableeveninthe (vi) Company: Outstanding forwardexchangecontractsasonMarch31,2016: Non-current Particulars urnyNo of USD Currency Current EURO GBP end oftheaccountingyear gain aggregating outstanding contractsasonMarch31,2016,thatweredesignatedandeffectivehedgesofthefuturecashflows, relating tocertainfirmcommitmentsandhighlyprobableforecasttransactions.Accordingly,inrespectofallsuch contracts, designatedinahedgingrelationship,usedtohedgeitsrisksassociatedwithforeigncurrencyfluctuations 30 "FinancialInstruments-RecognitionandMeasurement"(AS-30)asissuedbyICAIinrespectofsuchderivative The CompanyanditssubsidiarieshaveappliedthehedgeaccountingprinciplessetoutinAccountingStandard- foreign exchangeforwardcontractstomanageitsexposureinrates. The Companyanditssubsidiaries,inaccordancewithriskmanagementpoliciesprocedures,entersinto oftheaccountingyear obtain extensionsasapplicable. The Managementisconfidentofmeetingtheseobligations/commitmentswithinthestipulatedperiodtimeor The Companyhascertainoutstandingexportobligations/commitmentsasatMarch31,2016and2015. The fairvaluesofsuchderivativecontractsdesignatedasCashFlowhedgesoutstandingarefollows: Reserve account(ReferNote4c). Particulars AUD end oftheaccountingyear payment madetothesupplierbeyondappointedday as aboveareactuallypaid succeeding year,untilsuchdatewhentheinterestdues Contracts `
139,442,027 (net)(March31,2015- 12 14 24 17 foreign currency muti Amount in Amount in 250005,081,070,000 72,500,000 400001,873,880,000 24,000,000 5,800,000 7,200,000 7,1,7 6,1,3 552043,232,386 35,572,044 462,817,433 175,014,071 ac 1 ac 1 ac 1 March31, March31, March31, March 31, Derivative Asset 0621 062015 2016 2015 2016 - ` 459,585,048) hasbeenrecognisedundertheHedging 613,763,000 365,106,000 ac 1 06March31,2015 March 31,2016 ` - As at 3,055,599 Buy/Sell Derivative Liability Derivative Sell Sell Sell Sell ------Cross currency (Amount in (Amount in Rupees Rupees Rupees Rupees As at 4,121,880 ` ` ------) ) 163 26 Annual Report 2015-16 cyient.com 33.3 33.2 contracts underprinciplesofAS-30. As atMarch31,2016: Company: given below: The year-endforeigncurrencyexposuresthathavenotbeenhedgedbyaderivativeinstrumentorotherwiseare Company: Outstanding forwardexchangecontractsasonMarch31,2015: No of Currency Subsidiary: A 204392- (4)(319 (37,947) (12,957) 298,224 (93,159) - 195,320 (744) - - 2,421,085 - (12,957) (113,845) - 5,811,826 (101,879) - - 631,306 (25,407) 2,006,253 2,636,809 (298,764) - (150) - (285,414) 822,504 2,565,004 - 298,224 (39,131) 3,8531,393 928,820 - - - - (59,701) (344,380) - 1,070,556 - 3,952 317,313,184 (64,963) (5,768,214) - (59,701) - 76,450 - 187,311 6,898,513 22,195,434 - (5,450) - - - 52,004 (25,385) - 4,187,063 (150) - (2,585) - (69,320) 11,506,005 4,409,734 72,173,654 - 6,755,485 - - - 784,093 - - - - - 1,423,620 4 - - 1,086,281 ZAR - USD 502,299 649,222 TWD 237,139 (1,117,062) 827,954 (67,458,024) 79,035 (96,320) 101,264 SGD 132,235,921 8,746,258 (1,030,710) - 195,316 685,587 - (255,124) SEK 5,719,351 - 811,480 - (283,671) 537,821 27,000 SAR 10,682 1,676,406 - 31,255 (894,685) 3,630,868 2,380,062 PLN - - 1,832,328 PHP - - 3,312,474 2,180,477 - NZD 62,251,295 - 289,863 254,824,750 - NOK 3,306,792 9,966,312 MYR 2,528,549 522,654 - - KRW (576,890) - 776,799 - JPY - (792,247) HKD GBP 6,503,440 - EUR 137,517 2,246,555 DKK 1,271,521 CNY 1,313,933 CHF 1,213,622 CAD BND AUD AED Cash Currency No of USD Currency USD ` EURO GBP There werenooutstandingforwardexchangecontractswithSubsidiariesasatMarch31,2015. Other incomefortheyearincludes AUD Equivalent qiaet sesrcialsliabilities receivables assets equivalents 7,5,4 ,3,1,8 5,2,2 ,2,5,9 535612 143464 4,655,928,597 (154,384,624) (583,536,122) 2,528,251,392 952,025,922 1,135,414,582 778,157,447 Contracts Contracts ahavne urn te aalscretTotal current Payables other current advances Cash n Loans& and 12 12 26 12 6 Current andNon-current 3,0 ,5 6,0 355 1,717,870 (3,505) - 267,402 5,250 235,101 foreign currency foreign currency `
346,447,613 (2014-15- muti Amount in Amount in muti Amount in Amount in 500005,590,020,000 85,000,000 400002,006,300,000 24,000,000 1,500,000 2,400,000 7,200,000 te Tradeand Other `
586,511,680) towardsgainonsettlementofderivative 253,286,000 403,098,000 1,369,573 uoBuy/Sell Euro ` 766 5,029,712 (17,686) (325,658) rd Other Trade Buy/Sell Sell Sell Sell Sell Sell Cross currency Cross currency Rupees Rupees Rupees Rupees Euro (Amount) 164 26 Annual Report 2015-16 cyient.com USD 3,495,501 5,603,275 8,405,255 22,511,165 (3,017,150) (618,941) 36,379,105 (618,941) (3,017,150) 22,511,165 8,405,255 5,603,275 3,495,501 USD TWD SGD SEK SAR U 11101 7,5 26290 ,3,5 (3,8) 5423 8,418,279 (594,243) (333,185) 5,138,253 2,642,910 NZD 373,453 1,191,091 GBP EUR EUR PHP GBP QAR SGD NOK PLN GBP EUR DKK PLN SEK NOK CZK AUD JPY urnyCurrency R 8,2,6 1,2,7 55,941,875 11,924,475 84,321,862 MYR KRW JPY CHF CAD U 20793 0,1 23477 ,9,5 (,0,7) 6437 7,395,526 NOK (624,317) (3,303,175) 6,794,857 2,394,777 105,411 DKK 2,027,973 BND AUD AUD Subsidiaries: ` AED Cash Currency As atMarch31,2015: DKK CHF USD SGD USD CHF TRY JPY Equivalent qiaet sesrcialsliabilities receivables assets equivalents 0,5,4 1,6,7 8,4,9 ,8,2,9 486241 135971 3,994,940,517 (153,559,721) (438,602,471) 2,680,728,893 987,846,690 414,769,779 503,757,347 2437 885 ,4 2700 1190 (082 216,344 (90,862) 17,004,679 (191,960) (738,210) 247,080 (365,666) 15,501,754 8,844 1,416,247 243,743 18,865 946,811 224,377 7842 5,7 12973 ,9,3 (36,357) 4,299,232 1,229,763 253,374 798,462 197,916 7301 4,3 781,351 148,832 773,081 nFrincrec (Amount in in Foreigncurrency 78,487 10,217 25,902 10,217 84,010 47,276 7,299 86,699 2,390 232,096 (19,145) 232,096 2,390 86,699 7,299 ahavne urn te aalscretTotal current Payables other current advances Cash n Loans& and (69,249,584) Receivable/ (2,449,152) (8,921,964) (6,334,688) (5,775,100) (1,420,475) 11,307,610 (Payable) ------2,069,764 (414,000) (153,188) (115,116) 414,200 629,261 64,134 35,542 Current andNon-current (519) 1463 As atMarch31,2016 122 419 ------113,075 103,918,933 (33,424,138) (2,518,717) 68,089,153 (2,518,717) (33,424,138) 103,918,933 113,075 4,694 - 77,738 - - 661,299 1,074,854 (397,014) 1,074,854 661,299 - - - - - te Tradeand Other 555628 (565,526,278) (232,885,410) (475,706,600) eevbe Receivable/ (24,858,375) (46,309,368) (94,224,195) 155,429,989 750,066,549
(Payable) (7,351,150) (1,549,417) (7,952,476) 7,354,701 6,098,353 2,455,325 - 2,186,189 (95,727) (71,978) 2,018,484 (71,978) (95,727) 2,186,189 - - 496,527 (259,065) 496,527 - - 369,534 (74,720) - 369,534 - - - - 258,912 (78,509) 258,912 - - (26,367) 371,642 21,287 34,320 5,996 - - - - i oeg urny(Amount in inForeign currency `) - - - (54,313) -
- (14,100) - - 2149 (3,7)879,987 (531,778) (291,499) - 137708 (95,247,931)(163,717,008) - 4,4,2)(309,391,707) (42,748,422)
(1,003,752) Receivable/ 73967 (494,155,670) (7,319,697) 65537 (50,795,507) (170,385,734) (6,565,357) (1,842,823) 70101 (440,701,885) (7,041,001) (aal)(Payable) (Payable)
(164,546)
,2,6 434,048,676 6,429,360 ,4,9 334,284,609 5,340,795 (302,241) 2423 (18,877,789) (294,253) 159,459 840,040
369,645 rd Other Trade 77,336 As atMarch31,2015 (122) - (150) (150) (150) - - - (143,053) (60,621) (143,053) ------237,462 - - 309,339 - - (18,194) - - 197,916 - -6,544,474 - - (14,100) - 311,689 - - 1,417,626 - Receivable/ - 294,814 - (7,821,035) (2,718,656) 23,714,557 3,675,854 1,434,334 6,499,309 (523,055) (106,776,727) (5,543) (Amount) ------` ) 165 26 Annual Report 2015-16 cyient.com 4 Disclosurerequiredintermsofclause13.5AChapterXIIIonGuidelinesforpreferentialissue,SEBI 34. (Disclosure andInvestorProtection)Guidelines,2000. i TheCompanyhadissued2,724,000Compulsorily ConvertiblePreferenceShares("CCPS")withafacevalue (i) Notes: Net Outstadingunutilised Capital Utilisation forWorking of 2,724,000 Compulsorilyconvertiblepreferenceshares(CCPS) Particulars 1,166,420 equitysharesof Cyprus Limited, Investments Global GA to issued share 4,417,277 equitysharesof (Refer Note(i)below) Balance Total amountutilised Working Capital Investment inRangsonsElectronicsPvt Limited Bank Mercantile Repayment ofoutstandingTermLoanwithTamilnadu ucaeo ie ses 628368662,833,608 662,833,608 Limited Kalyani NetVentures Sale ofInvestmentin10%stake 5,750,000 Income fromtemporaryinvestmentofuntilisedfunds: 5,750,000 Investment inwholly-ownedsubsidiaryCyientInc. capital authorised increasing for fee of Payment assets 419,911,200 fixed of Purchase (A) Amounts utilisedoutoftheabove: 419,911,200 Total amountreceivedonpreferentialissueofshares Mauritius Limited, Mauritius International Carrier to issued share Total NetBalance Total Interest accruedbutnotreceived, included above Interest receivedoninvestments(Net) Short-Term Depositswithvariousbanks Investment/Utilisation ofbalancefunds Investment in 10% stake in Kalyani Net VenturesLim Investment in10%stakeKalyani Information TechnologyPrivate Limited Investment inwholly-ownedsubsidiaryTTMInstituteof Investment inwholly-ownedsubsidiaryTTM(India)PrivateLimited Dividend receivedoninvestments `
360 eachissuedtoGAGlobalInvestmentsLimited,Cyprus of The Companyalteredthecapital clauseoftheMemorandumAssociationbydeleting referencetothe such, therearenopreference sharesintheCompanypostaboveconversion. Company allotted2,724,000equity sharesof GA Globalinvestmentsexercised theoptiontoconvertCCPSandinpursuanceof thisexercisethe option isexercised,thesame shall beautomaticallyconvertedintoequitysharesattheend of18months. equity shareswithinaperiodof18monthsfromthedate allotmentattheoptionofAllotteeandifno of memberstheCompanyheldonJune23,2007.TheCCPS weretobeconvertedintoequalnumberof the guidelinesissuedbySEBI,RBIetc.,andSpecialResolution passedintheExtraordinaryGeneralMeeting to theprovisionsofAgreemententeredintobetween AllotteeandtheCompany,datedJune28,2007, conditions oftheissuetheseCCPSincludingrighttoconvert theCCPSintoEquitySharesweresubject `
360 onJuly6,2007toM/s.GAGlobalInvestmentsLimited ("GA"or"theAllottee").Thetermsand ` ` funds
5 eachatapremiumof 5 eachatpremiumof Ltd (E) = (C)= ` `
355 per `
5 each,atapremiumof
ited 355 per (A) -(B) C ()13377901,351,298,026 1,303,707,970 (C) +(D) D ,0,0,7 1,178,172,963 1,303,707,970 (D) B ,9,7,2 2,817,645,857 2,990,770,920 (B) 15029701,590,219,720 1,590,219,720 225259242,522,539 242,522,539 2,990,770,920 ac 1 06March31,2015 March 31,2016 508,553,272 1,303,707,970 ,5,8,9 1,016,238,936 1,055,680,093 ,3,7,8 1,331,079,085 173,125,063 231,145,706 980,640,000 As at 16,882,171 0723340,742,353 40,742,353 26,065,000 `
355 eachonDecember9,2008. As 0,0 100,000 100,000 - - - - 1,331,079,085 1,351,298,026 2,990,770,920 1,351,298,026 (Amount in 173,125,063 (86,093,850) 980,640,000 508,553,272 231,145,706 As at 16,882,171 26,065,000 ` - - ) 166 26 Annual Report 2015-16 cyient.com 5 Goodwill(OnConsolidation) 35. i AmalgamationofSoftentialInc. (i) Net Goodwill ii Goodwill (iii) Less:Amortisation Gross Goodwill Less: Onaccountofacquisition Add: Opening Balance Particulars i)Goodwillarising onacquisitionofCyientInsightsPrivateLimited(formerlyInvatiLimited)and (ii) 100% stakeinSoftentialInc.Thetotalcostofacquisitionwas On April01,2014,thewhollyownedsubsidiaryCyientInc.(formerlyInfotechEnterprisesAmericaInc.)acquired ii Duringtheyear,Company (iii) TheCompanydoesnotmaintainaseparatebankaccounttomanagethesefundsreceivedonpreferential (ii) Electronics PrivateLimitedand itswhollyownedsubsidiary,TechnoToolsPrecisionEngineering PrivateLimited. On February04,2015,theCyient Limited(formerlyInfotechEnterprisesLimited)acquired 74%stakeinRangsons Techno ToolsPrecisionEngineering PrivateLimited. On November18,2015Invati Insights LLCrenameditselftoCyientLLC. Particulars Particulars as follows: in InvatiInsightsLLC,USA.Goodwillonconsolidationofthis stepdownsubsidiaryamountedto On October16,2014,CyientInsightsPrivateLimited(formerly InvatiInsightsPrivateLimited)acquired100%stake Consequent toacquisition,InvatiInsightsPrivateLimitedwas renamedtoCyientInsightsPrivateLimited. Goodwill Less :51%ofnetassetsasonOctober15,2014 Consideration paid goodwill hasbeenadjustedwiththereserves. reserves havebeentakenoverattheirbookvaluesandinthesameform.Consequenttoamalgamation, "Pooling ofInterests"methodasprescribedbyAccountingStandard-14.Accordingly,theassets,liabilitiesand Enterprises AmericaInc.)retrospectivelyfromApril1,2015.Theamalgamationhasbeenaccountedforunderthe Consequently alltheAssets,LiabilitiesandReservesstandtransferredvestedinCyientInc.(FormerlyInfotech Softential Inc.mergedwithCyientInc(InfotechEnterprisesAmericaInc.)effectfromApril01,2015. Goodwill Less :100%ofnetassetsasonApril1,2014 Consideration paid Insights PrivateLimited.Thetotalcostofacquisitionwas On October15,2014,theCyientLimited(formerlyInfotechEnterprisesLimited)acquired51%stakeinInvati its whollyownedsubsidiaryInvatiInsightsLLC. Adjustments onamalgamation issue forworkingcapitalpurpose. basis. TheaboveallocationisbasedonManagement'sinformationsystems. through postalballot)onJune1,2010. the RegistrarofCompanies,AndhraPradesh,notifyingsaidalteration(asapprovedbymembers as thesaidCCPSwereissuedin2007andhavesincebeenconvertedintoequityshares.Form5wasfiledwith clauses pertainingtoCompulsorilyConvertiblePreferenceShares(CCPS).Thewerenolongerrelevant arising onacquisitionofRangsons ElectronicsPrivateLimited(REPL)anditswhollyowned subsidiary of subsidiaries has utilisedanamountof ` 87,938,018.Thegoodwillhasbeendeterminedasfollows: ` `
1,503,404,833. Thegoodwillhasbeendetermined
1,476,833,033 fromproceedsofthepreferential o h ereddFortheyearended For theyearended ac 1 06March31,2015 March 31,2016 (1,555,283,544) ,0,6,5 4,263,450,299 2,708,166,755 ,0,6,5 4,266,688,661 23,291,076 2,708,166,755 4,263,450,299 - 4,243,397,585 - `
10,788,183. 1,535,063,820 1,503,404,833 (Amount in (Amount in (Amount in (31,658,987) 89,280,971 (1,342,953) 87,938,018 3,238,362 ` ` ` - ) ) ) 167 26 Annual Report 2015-16 cyient.com i)Goodwillarisingon (iv) v AmalgamationofInfotechGeospatial (India)PrivateLimited. (v) acquisition was Limited acquired100%stakeinInfotechEnterprisesInformationTechnologyServicesGmbH.Thetotalcostof On March23,2015,thewhollyownedsubsidiaryInfotechEnterprisesInformationTechnologyServicesPrivate Particulars The totalcostofacquisitionwas hr-empoiin (5,376,720) 65,154 5,973,589 2,974,798 740,368 Short-term provisions Other currentliabilities Trade payables Current Liabilities Other currentassets Short-term loansandadvances Cash andcashequivalents receivables Trade Current Assets Net currentassets Long-term loansand advances Deferred Tax Fixed assets Value ofassetsandliabilitiesamalgamated: Particulars Particulars * Fullyamortisedinthepreviousyear. Goodwill* Less :100%ofnetassetsasonMarch23,2015 Consideration paid Engineering PrivateLimited,India.Goodwillonconsolidationofthisstepdownsubsidiaryamountedto On January06,2015,RangsonsElectronicsPrivateLimitedacquired100%stakeinTechnoToolsPrecision Goodwill Less :74%ofnetassets as onFebruary 4, 2015 Consideration paid amalgamation ispendingfilingdocumentswithRegistrarofCompanies. additional shareswereissuedtoeffecttheAmalgamation.IncreaseinAuthorisedsharecapitalofCompanyon same form.AsInfotechGeospatial(India)PrivateLimitedwasawhollyownedsubsidiaryoftheCompany,no Standard -14.Accordingly,theassets,liabilitiesandreserveshavebeentakenoverattheirbookvaluesin amalgamation hasbeenaccountedforunderthe"PoolingofInterests"methodasprescribedbyAccounting Liabilities andReservesstandtransferredvestedintheCompanyretrospectivelyfromApril1,2015.The dated March02,2016andfiledwithRegistrarofCompanieson31,2016.ConsequentlyalltheAssets, of AmalgamationapprovedbytheHon'bleHighCourtJudicature,AndhraPradesh&Telanganavideitsorder Enterprises Limited)("theCompany")wasamalgamatedwiththeCompanyw.e.f.April1,2015pursuanttoScheme Infotech Geospatial(India)PrivateLimited(IGIL),awhollyownedsubsidiaryofCyient(Formerly * CapitalReservehasbeenadjusted tothegeneralreserveofCompanyonamalgamation asatAppointedDate. Difference consideredascapital reserve* Less :Carryingvalueofinvestments intheCyientLimited Share CapitalofInfotechGeospatial (India)PrivateLimited of ProfitandLoss Adjusted againstSurplusinConsolidated Statement Amortisation ofGoodwilltill March 31, P&L Account General reserve Long-term provisions `
1,837,118. Thegoodwillhasbeendeterminedasfollows. acquisition ofInfotechEnterprisesInformationTechnologyServicesGmbH. `
2,925,310,754. Thegoodwillhasbeendeterminedasfollows: 05(10,493,782) 2015 (44,733,368) (65,138) ` March 31,2016 2,577,794,454 2,925,310,754 (Amount in (Amount in Amount in (40,421,317) 347,516,300 ` As at (3,600,000) 56,796,389 43,600,000 40,000,000 46,302,607 12,200,751
30,303,146. 7,122,137 4,923,484 1,670,107 1,837,118 (246,486) (374,958) 167,011 ` ` ` ) ) ) 168 26 Annual Report 2015-16 cyient.com 6 Employeebenefits: 36. 36.1 Defined 36.1 The employeebenefitschemesareasunder: 62DefinedBenefitPlans 36.2 atsriecs 120,230 - (Excluding Plan assetsatthebeginningofyear Change inPlanassets of theyear Projected benefitobligationattheend Past servicecost Benefits paid Actuarial (gain)/loss Interest cost Current servicecost i a Superannuationfund-India (a) ii. Expected returnonplanassets (Excluding (Excluding Projected benefitobligationatthebeginningofyear Change inbenefitobligation Provident Fund: i. Particulars .Gratuity i. b Superannuationfund-Australia (b) ` they areincurred.Totalexpenserecognisedduringtheyearaggregated of India.ThemonthlycontributionsarechargedtotheConsolidatedStatementProfitandLossinperiod fund thebenefits.ThesecontributionsaremadetoFundadministeredandmanagedbyGovernment subsidiaries andthejointventurearerequiredtocontributeaspecifiedpercentageofpayrollcosts contribution retirementbenefitplansforqualifyingemployees.Underthescheme,Company, The Company,fourofitssubsidiariesandajointventuremakesprovidentfundcontributionswhicharedefined March 31,2015fortheCompanyanditssubsidiaryinIndia: The followingtablesetsouttheDefinedBenefitPlan-asperactuarialvaluationatMarch31,2016and Insurance CorporationofIndia. is administeredbytheCompany'sowntrustwhichhassubscribedto"GroupGratuityScheme"ofLife and arechargedtotheConsolidatedStatementofProfitLossinperioddetermined.Thegratuityplan employees. Liabilitieswithregardtosuchgratuityplanaredeterminedbyanindependentactuarialvaluation joint ventureprovidesforgratuity,adefinedretirementbenefitplan(the'GratuityPlan')coveringeligible In accordancewiththe'PaymentofGratuityAct,1972'India,Company,fouritssubsidiariesanda
255,832,417). incurred. Totalexpenserecognisedduringtheyearaggregated contributions arechargedtotheConsolidatedStatementofProfitandLossinperiodthey made toafundadministratedbyLifeInsuranceCorporationofIndia.TheCompany'smonthly contribution inbetween5%to15%ofthebasicsalarycoveredemployee.Thesecontributionsare defined contributionschemewhereintheemployeehasanoptiontochoosepercentageof The qualifyingemployeesoftheCompanyreceivebenefitunderaSuperannuationschemewhichis ` and Lossintheperiodtheyareincurred.Totalexpenserecognisedduringyearaggregated the employee.TheCompany'smonthlycontributionsarechargedtoConsolidatedStatementofProfit superannuation schemewithvarioussuperfunds.TheCompanycontributes9.5%ofthebasicsalary The employeesattheAustraliabranch&SubsidiaryofCompanyarealsocoveredundera contribution plans ` `
99,904,960 (2014-15-
10,626,112 onaccountofdisinvestmentsubsidiary) 517,842 on account of disinvestment of subsidiary) 517,842 onaccountofdisinvestment `
75,057,097). o h ereddFortheyearended For theyearended ac 1 06March31,2015* March 31,2016 ` 2,1,7 467,338,108 524,214,471 4,1,0)(37,144,749) (45,715,704) 5,1,9 335,853,022 456,711,996 147,286,065
22,737,403 (2014-15- 3891731,757,449 57,467,842 33,859,147 71,578,410 11,906,873 ,8,2 79,284,314 7,780,622 `
266,927,585 (2014-15- ` (Amount in
26,769,754). 79,550,143 9,449,664 (Contd.) ` ) 169 26 Annual Report 2015-16 cyient.com end ofperiod Fair valueofplanassets, Gratuity Net costrecognisedintheConsolidatedStatementofProfitandLoss Liability recognisedintheBalanceSheet Fair valueofplanassetsatthe end oftheyear Projected benefitobligationattheend Amount recognisedinthebalancesheet Actual returnonplanassets Plan Assetsattheendofyear Asset loss Benefits payment Employer contribution Current servicecost Cost ofemployeebenefitsfortheyear Particulars Mortality table Mortality (%) Attrition Long termrateofcompensationincrease(%) Expected returnonplanassets (%) rate Discount Actuarial AssumptionsusedinaccountingfortheGratuityPlan Experience adjustments *Includes impactofacquisitionmadeduringthepreviousyear. The abovetableexcludesprovisionforgratuitymadeatoverseassubsidiaries. Note: Expected Companycontributionsfor thenextyear estimated termoftheobligation. rate isbasedontheprevailing marketyieldsofGovernmentIndiasecuritiesasatBalance Sheetdateforthe seniority, promotionandother relevantfactorssuchasdemandandsupplyintheemployment market.Thediscount The estimatesoffuturesalaryincreasesconsideredinthe actuarialvaluationtakeaccountofpriceinflation, end ofperiod Projected benefitobligation, Interest cost Total (gain)/loss (Surplus)/deficit intheplan Expected returnonplanassets ses(8,8) 24, (184,584) 4,085,284 Experience (gains)/lossesonPBO assumptions (Gains)/losses duetochangein assets Experience adjustmentsonplan Net actuarial(gain)/lossrecognised during theyear 3,9,7 131,299,379 2,1,7 524,214,471 9,1,9 392,915,092 fteya 2,1,7 467,338,108 524,214,471 of theyear ac 1 ac 1 ac 1 ac 1 March31, March31, March31, March31, March 31, ,8,2 7,780,622 ,9,3 55, 3,695,338 0621 0421 2012 2013 2014 2015 2016 150,156,159 466,313,228 313,618,809 79,284,314 (583,841) 238,376 556,896 o h ereddFortheyearended For theyearended 2,2,4)(69734 (17,317,064) (46,987,384) (29,829,644) 1,2,7)2,1,6 (8,537,801) 28,716,265 (15,122,671) 1,0,7)(57369 (8,779,263) (75,703,649) (14,706,973) 2,7,7 0,6,2 293,820,370 302,362,828 325,173,176 5,5,5 5,7,6 270,552,136 253,670,467 255,154,957 008294,9,6 23,268,234 48,692,361 70,018,219 ac 1 06March 31,2015* March 31,2016 ,1,4 8,2 (863,656) 589,222 1,211,347 .0 70%5.00%-17.00% 5.00% -17.00% AM(060)IALM(2006-08) IALM (2006-08) .0%-79%7.80%-7.81% 7.70 %-7.97% .0 .5 8.00% - 9.00% 8.00% - 8.85% 5.00% -9.00% 5.00% -10.00% 5.00% -9.00% 5.00% 112939 (147,803,907) (131,299,379) 392,915,092 147,803,907 131,299,379 101,495,890 4,1,0)(45,715,704) (11,906,873) 172296,090,797 99,710,169 11,722,289 18,006,729 71,578,410 33,859,147 86,032,850 7,965,206 1454 (3,358,867) (184,584) Ultimate (Amount in (Amount in 319,534,201 162,370,785 (37,547,202) (9,449,664) 57,188,091 31,757,449 82,874,909 72,936,753 Ultimate ` ` ) ) 170 26 Annual Report 2015-16 cyient.com 8 SegmentInformation 38. 401(K)benefitplan : 37. )LongServiceLiability-Australia c) i )Compensatedabsences–India: a) ii. segment. The CyientGrouphasidentified businesssegmentsasitsprimarysegmentandgeographic segmentsasitssecondary Geographic segmentsoftheCyient GroupareIndia,NorthAmerica,EuropeandRestofthe world. new segmentandtherehasbeen noreclassificationonaccountofadditionthisnewsegment. During thepreviousyear,Company addedanewsegmentProductRealisation(PR)toits business.Thisisacompletely Operations (DNO).Therehasbeennoreclassificationonaccount ofchangename. During thepreviousyear,CompanyrenameditsNetwork &ContentEngineering(N&CE)verticalasDataNetwork specific requirementsofcustomersintheirrespectiveuser segments. (DNO), Engineering,Manufacturing,IndustrialProducts(EMI) andProductRealisation(PR).Thebusinessescatertothe The CyientGroupclassifiesitsoperationsintothreevertically orientedbusinesssegments:Data&NetworkOperations indicators bybusinessverticalsandgeographicalsegmentation ofcustomers. Management evaluatesCyientGroup'sperformanceandallocates resourcesbasedonananalysisofvariousperformance ` The amountpayabletowards401(K)benefitplaninCyientInc.,(formerlyInfotechEnterprisesAmericaInc.)was
19,146,397 (March31,2015- estimated termoftheobligation. rate isbasedontheprevailingmarketyieldsofGovernmentIndiasecuritiesasatBalanceSheetdatefor seniority, promotionandotherrelevantfactorssuchasdemandsupplyintheemploymentmarket.Thediscount The estimatesoffuturesalaryincreasesconsideredintheactuarialvaluationtakeaccountpriceinflation, the perioddetermined. determined byanindependentactuarialvaluationandchargedtotheConsolidatedStatementofProfitLossin employees atyear-endasperCompany'spolicy.Thevalueofsuchleavebalanceeligibleforcarryforward,is The accrualforunutilisedleaveisdeterminedtheentireavailablebalancestandingtocreditof employer andareregulatedbyrespectivestatelaws.Anamountof associates areentitledto.Theselongserviceleavesdependentonthetenureofemployeewithsame Branch andSubsidiary.Theaccrualoflongserviceleaveisinadditiontothecompensatedabsenceswhich The regulationsoflongserviceleaveareapplicabletotheassociatesCompanyemployedatitsAustralia CompensatedAbsences–OverseasBranchesandSubsidiaries: b) wise compositionoftheplanassetsisnotavailable Plan assetscompriseof100%insurermanagedfunds.FundisbyLICasperIRDAguidelines,category- Composition ofplanassets towards suchlongserviceleave. xetdrtr npa sesN NA 17.00% 5% NA 17.00% NA 5% 6.00%to8.00% 6.00%to8.00% NA Attrition escalation Salary Expected returnonplanassets Discount rate absences compensated long-term for assumptions Actuarial Leave availmentratio Attrition escalation Salary Expected returnonplanassets Discount rate absences compensated long-term for assumptions Actuarial `
15,370,941). o h ereddFortheyearended For theyearended Fortheyearended For theyearended `
17,022,204 hasbeenrecognisedasliability ac 1 06March31,2015 March 31,2016 March31,2015 March 31,2016 .0 o90%4.00%to6.00% 2.00% to9.00% 5.00% .5 7.80% 7.75% 7.80% 7.70% 5.00% 171 26 Annual Report 2015-16 cyient.com I.ProductRealisation(PR) III. Engineering,Manufacturing,IndustrialProducts(EMI) II. Data&NetworkOperations(DNO) I. esitrsgetrvne - - - - 10,347, - - Un-allocable income Segment results Total revenue Less inter-segmentrevenues - External revenue For theyearendedMarch31,2015 - Un-allocable income Segment results Total revenue Less inter-segmentrevenues External revenue For theyearendedMarch31,2016 The segmentdisclosures forthepreviousyear havebeenreclassifiedtoconform tothecurrentyear'spresentation. Profit fortheyear Minority interest(loss) associate Company Share ofprofitin associate Companyandminority interest Profit aftertaxbeforeshareof profitin Tax expense Profit beforetax Profit fortheyear Minority interest(gain) associate Company Share ofprofitin associate Companyandminorityinterest Profit aftertaxbeforeshareofprofitin Tax expense Profit beforetax Segment revenue Business Segment reasonable basishavebeenincludedunder"unallocablerevenue/expenses/assets/liabilities". Revenue, expenses,assetsandliabilitieswhichrelatetotheGroupasawholearenotallocablesegmentson /fair valuefactors. Inter-segment revenueisaccountedonthebasisoftransactionswhichareprimarilydeterminedbasedmarket on thebasisoftheirrelationshiptooperatingactivitiessegment. Segment revenue,segmentexpenses,assetsandliabilitieshavebeenidentifiedtosegments The accountingpoliciesadoptedforsegmentreportingareinlinewiththeofGroup. disclosures relatingtototalassetsandliabilitiessinceameaningfulsegregationoftheavailabledataisonerous. those relatedtoPRsegment)andmanagementbelievesthatitiscurrentlynotpracticableprovidesegment Assets andLiabilitiesusedintheCyientGrouparenotidentifiedtoanyofreportablesegments(otherthan Revenue inrelationtotheseverticalsiscategorizedbasedonitemsthatareindividuallyidentifiablevertical. components foraerospace,automotiveanddefenceindustries. automotive, telecommunications,defenceandaerospaceapplicationsincludingmanufacturemachiningof PR verticalservicesisengagedinprovidingelectronicmanufacturingsolutionsthefieldsofmedical,industrial, technical publicationsandotherstrategiccustomers. industrial andcommercialproducts,engineeringdesign,embeddedsoftware,ITSolutions,manufacturingsupport, EMI verticalservicescustomersinindustriessuchasaerospace,automotive,off-highwaytransportationand photogrammetry andITservices. The CyientGroupserviceofferingstotheDNOverticalincludedataconversion,maintenance, DNO verticalservicescustomersinindustriessuchaspower,gas,telecom,transportationandlocalgovernment. (netofun-allocableexpenses) (net ofun-allocableexpenses) 10,356, 03716991,4,3,1 7,5,6 27,359,329,811 571,850,167 16,440,332,715 10,347,146,929 30,955,698,122 2,572,987,167 18,026,099,156 10,356,611,799 ,8,0,9 ,0,4,9 637164,013,560,478 26,307,186 2,107,044,899 1,880,208,393 4,070,586,870 (740,464) 2,664,888,978 1,406,438,356 4,2 640327551801727,359,329,811 571,850,167 16,440,332,715 146,929 1,9 8060916252971730,955,698,122 2,572,987,167 18,026,099,156 611,799 DNO DNO M PR EMI EMI RTotal PR 3,532,036,414 3,262,492,046 3,359,272,680 1,096,268,874 4,455,541,554 3,147,896,107 4,133,974,107 (Amount in (Amount in 150,374,958 441,981,076 120,324,634 986,078,000 (5,728,695) 22,388,776 63,387,237 Total ` ` ) ) 172 26 Annual Report 2015-16 cyient.com TOTAL Allocable Segment Liabilities Segment Allocable Segment Liabilities Total Assets Dividend Unpaid deposits on accrued Interest Assets Tax Goodwill Unallocable: Fixed Deposits & Margin Money Margin & Deposits Fixed Allocable SegmentAssets Segment Assets Particulars Segment AssetsandLiabilities(AsatMarch31,2015) Liabilities Total Dividend Unclaimed borrowings on accrued Interest Long Term and Short Term Borrowings Term Short and Term Long Liabilities Tax Unallocable: Total Assets Dividend Unpaid deposits on accrued Interest Assets Tax Goodwill Unallocable: Allocable Segment Liabilities Segment Allocable Segment Liabilities Money Margin & Deposits Fixed Allocable SegmentAssets Segment Assets Particulars Segment AssetsandLiabilities(AsatMarch31,2016) Rest of World of Rest Europe America North India Location Geographic Revenue Segment Geographic Segments Note: Liabilities Total Dividend Unclaimed borrowings on accrued Interest Long Term and Short Term Borrowings Term Short and Term Long Liabilities Tax Unallocable: identifiable assetsandliabilitiespertainingtoPRsegmenthave beendisclosedseparately. segments, astheassetsandsupportservicesareusedinterchangeably betweenthesesegments.The Assets usedintheCompany'sbusinessorliabilitiescontracted havenotbeenidentifiedtoitsDNOandEMI 9,250,885,400 25,785,651,679 14,975,223,7599,250,885,400 1,559,542,520 ,7,7,0 17,0 2,470,770,701 594,462,992 4,979,394,267 1,648,877,607 7,222,734,867 4,979,394,267 1,648,877,607 594,462,992 ,5,4,2 14,975,223,759 1,559,542,520 ,7,7,0 17,076,003,154 2,470,770,701 9,6,9 4,979,394,267 594,462,992 938,928,676 4,626,508,656 2,576,738,226 8,142,175,558 4,626,508,656 2,576,738,226 938,928,676 9898664,626,508,656 938,928,676 REIDOUnallocable EMI/DNO PR REIDOUnallocable EMI/DNO PR ------14,804,403,080 2,931,020,310 76,003,154 4,937,812,195 ac 1 06March31,2015 March 31,2016 095681227,359,329,811 30,955,698,122 ereddYear ended Year ended ,8,6,3 7,325,360,806 8,282,462,537 2,0,7 420,602,271 - 420,602,271 6,3,9 166,237,595 - 166,237,595 ,6,5,9 4,263,450,299 4,263,450,299 - ,0,6,5 2,708,166,755 2,708,166,755 - 1,5,3 11,850,934 11,850,934 - ,3,4 7,031,045 7,031,045 - ,8,0 7,085,306 7,085,306 - 1,5,6 11,852,464 11,852,464 - 2,6,7 529,666,677 529,666,677 - ,0,2 1,907,528 1,907,528 - 1,2,0 819,828,608 819,828,608 - ,4,5 1,944,855 1,944,855 - 4,4,7 142,443,075 142,443,075 - 1,7,6 116,673,568 116,673,568 - - 4,308,240,043 4,308,240,043 4,308,240,043 - - 2,142,377,493 2,142,377,493 2,142,377,493 - - 4,166,300,947 4,166,300,947 4,166,300,947 - - 1,473,664,113 1,473,664,113 1,473,664,113 - ,2,2,4 27,3 7,822,822,342 16,534,766,279 - 19,546,773,855 - 5,565,437,332 - 5,573,857,259 - 13,980,079,482 1,038,433,706 5,015,455,817 (Amount in (Amount in (Amount in 69,596,197 Total Total ` ` ` ) ) ) 173 26 Annual Report 2015-16 cyient.com 9 RelatedPartyTransactions 39. 39.1 .KeyManagerialPersonnel: c. Otherrelatedparty: c. Geographic Location Geographic Segment Assets North America India Location Geographic Segment CapitalExpenditure TOTAL World of Rest Europe America North India TOTAL Rest ofWorld Europe .JointVenture: a. Cyient Grouphastransactionswiththefollowingrelatedparties: .Associate: b. B Ashok Reddy Name Relative ofExecutiveChairman andManagingDirector&CEO Aggarwal Ajay Bodanapu Krishna Sucharitha B B VRMohanReddy Name Enterprises Charitable Cyient Foundation(formerlyInfotech USA Entity Infotech AerospaceServicesInc., Associate Name of the Infotech HALLimited Venture Company Name of the Joint rs)India Trust) incorporation incorporation onr fEtn fhligExtentofholding Extentofholding of Country onr fEtn fhligExtentofholding Extentofholding of Country Managing Director&CEO Designation Designation Whole timedirector(UptoApril,2014)Ceasedbea w.e.f Executive Chairman Executive President -CorporateAffairs Chief FinancialOfficer 17th July2014) India onr ficroainNature of relationship Country ofincorporation 30341542,260,957,384 3,033,441,544 3119741130,602,094 3,161,907,461 38368364,386,840,171 3,853,608,396 956738516,534,766,279 19,546,773,855 ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ereddYear ended Year ended 1,275,896,248 ,9,1,5 9,756,366,630 9,497,816,454 (%) (%) 491,419,667 133,594,826 633,214,169 As at 17,667,586 49% 50% as at as at Controlled trust (%) asat (%) asat (Amount in (Amount in 762,630,479 681,065,975 As at 49% 50% 47,794,740 31,312,044 2,457,720 ` ` ) ) 174 26 Annual Report 2015-16 cyient.com 40. Cyient Groupundernon-cancellableoperatingleasesareas follows: recognised asanexpenseintheConsolidatedStatementof Profit andLoss.Thefutureminimumleasecommitmentsof Later thanfiveyears than fiveyears Later thanoneyearbutnotlater Not laterthanone Maximum obligationsonlong-termnon-cancellableoperating leases: Lease expensesincurredunderoperatingleasesaggregating b Balancesattheyear-end: (b) a Transactionsduringtheyear: (a) Summaryofthetransactions 39.2 TOTAL Other Income Rental expenses Dividend toKMP #Does notincludeprovisionforcompensatedabsences. relative ofKMP Sale ofassetto payable toKMP usadn aac BVR balance Outstanding on eoee Infotech Loans recovered KMP Repayment ofLoanby S xedtr CyientFoundation(formerly B Expenditure CSR from loantoKMP Interest recovered aaeilPronl B B V Managerial Personnel# Remuneration toKey usadn on B Ashok Outstanding loans dac eevbeInfotech Advance receivable Nature ofthe Advances given/(recovered) Share ofProfitsfrom transaction Nature ofthe Associate Balance er405,678,652 year Party name Party B V B B Ajay Aggarwal Krishna Bodanapu B Sucharitha Party name Party B AshokReddy Ajay Aggarwal Krishna Bodanapu Krishna Bodanapu Infotech EnterprisesCharitableTrust) B AshokReddy Infotech HAL n. 120,324,634 Infotech AerospaceServicesInc., Infotech Ashok Reddy Ashok Reddy Sucharitha Sucharitha and balanceswiththeaboverelatedpartiesareasfollows: R MohanReddy R MohanReddy Mohan Reddy Reddy HAL Limited HAL Limited HAL Limited iie ,4,2 2,898,094 3,947,622 Limited `
498,028,349 (2014-15- o h ereddFortheyearended For theyearended March 06March 31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ,0,6,2 1,197,246,154 1,002,362,821 175,238,480 7,3,2 476,438,026 120,246,143 As at As at 22,209,120 78,494,400 10,135,515 12,949,163 65,061,685 28,761,178 28,761,178 51,663,911 47,567,491 2,508,000 ,3,8 4,383,664 8,331,287 1 06March31,2015 31, 2016 426,693 727,644 1,200 1,203 4,367 - - - `
425,477,935) havebeen (Amount in (Amount in 372,593,776 137,677,482 150,374,958 686,974,896 As at As at 11,104,560 39,247,200 12,914,163 35,227,616 87,584,196 17,528,507 35,057,014 56,751,883 35,578,562 6,019,200 2,812,500 9,770,693 2,091,747 426,693 121,176 727,644 25,800 12,048 ` ` - ) ) 175 26 Annual Report 2015-16 cyient.com 2 Provisionfortaxation 42. EarningsperShare(EPS) 41. Diluted: 21Curren 42.1 Weighted averagenumberofequitysharesoutstanding(includingdilution) Effect ofpotentialequitysharesonemployeestockoptionsoutstanding Earnings pershare(` Weighted averagenumberofequityshares Number ofsharesoutstandingat the yearend Basic: Profit aftertaxation Particulars 22DeferredTaxes 42.2 Earnings pershare( i AsofMarch 31,2015,Deferredtaxonimpactofchangeinusefullivescertainclassfixedassetsis ii. i)Others (ii) Employeebenefits (i) Deferredtaxasset (B) Depreciation& (i) Deferredtax(liability) (A) An amountof Subsidiaries: operations takingintoaccounttherelevantrulesandregulationsasapplicableinrespectivecountries. March 31,2016.Further,theManagementhasassessedCompany'staxpositioninrespectofitsoverseas The Companyhasmadeprovisiontowardscurrenttaxinrespectofitsdomesticoperationsfortheyearended Company: Company: the subsidiariesofCompany. Particulars Net Deferredtaxassets/(liability)[(A) .DeferredtaxliabilityasonMarch31,2016includesamountof i. Note: (Refer Note35(v)) ` Sub-Total (B) Sub-Total (A)
5,716,126 (ReferNote54) t tax ` `
524,920,656 (2014-15-
)
) Amortisation + (B)] `
316,563,205) hasbeenincludedunderCurrenttaxexpenseinrespectof `
4,923,484 onaccountofIGILAmalgamation ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ereddYearended Year ended ,6,9,4 3,532,036,414 3,262,492,046 162972 (173,117,617) (166,209,712) 162972 (173,117,617) (166,209,712) 222,733,071 112,442,098 112,483,377 112,637,613 184,381,125 As at 56,523,359 38,351,946 195,515 29.01 28.96 (Amount in (Amount in 179,041,593 112,182,127 112,361,065 112,578,995 154,332,121 As at 24,709,472 5,923,976 396,868 31.48 31.37 ` ` ) ) 176 26 Annual Report 2015-16 cyient.com 3 ResearchandDevelopmentExpenses-Company 43. 23Taxpertainingtoearlieryears 42.3 25MinimumAlternate 42.5 Transferpricing 42.4 Industrial Research(DSIR)forapprovalofR&Dcentresandthe sameispendingapproval. ` Revenue expenditurepertainingtoresearchanddevelopment chargedtotheStatementofProfitandLossamounts
56,129,089 (2014-15- tax assessmentofonesubsidiary Tax pertainingtoearlieryearsrelatesadjustmentmadetaxprovisionforyeararisingfromtheIncome * IncludesDeferredtaxbalancesonaccountofacquisitionsmadeduringthepreviousyear. Net Deferredtaxassets/(liability)[(A) ii Others (iii) i)FixedAssets (ii) Employeebenefits (i) Deferredtaxasset (B) Closing MATcreditentitlement Less: utilisedduring theyear Add: madeduringtheyear Opening MATcreditentitlement Particulars FixedAssets (ii) Employeebenefits (i) Deferredtax(liability) (A) The breakupofdeferredtaxassets/liabilitiesisasfollows: Subsidiaries: ii Others (iii) impact onthefinancialstatements,particularlytaxexpenseandprovisionfortaxation. transactions areatarm'slengthmaintainedbytheCompanyandthataforesaidlegislationwillnothaveany the opinionthatallnecessarydocumentsasprescribedbyIncomeTaxAct,1961,toprovethese The Companyhasenteredintointernationaltransactionswithrelatedparties.Inthisregard,theManagementisof the Companyandonesubsidiary). Particulars Sub-Total (B) Sub-Total (A) ` Tax (MAT)creditentitlement
14,687,303). TheCompanyhasmadeanapplicationtothe DepartmentofScientificand `
10,269,508 (2014-15 + (B)] `
23,962,344, arisingfromIncometaxassessmentsof ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015* March 31,2016 (41,757,880) 130,964,254 (38,759,739) 111,396,610 As at 32,863,855 89,206,374 18240 - (1,195,741) (1,802,400) 20,085,628 30,312,167 ,5,8 1,123,805 2,551,688 (517,984) - (Amount in (Amount in (50,521,417) (11,633,648) (38,887,769) As at 59,314,936 50,258,989 2,551,688 8,793,519 6,488,660 2,009,229 2,567,287 581,346 ` ` ) ) 177 26 Annual Report 2015-16 cyient.com 4 InvestmentinJointVenture:InfotechHALLimited 44. 5 Detailsof provisions 45. Of theabove,followingamountsareexpectedtobeutilised /reversewithinayear: Particulars Particulars Particulars Tax Finance costs Balance Sheet: following amountstowardsCyient'sshareintheJointVenture: The notesformingpartoftheConsolidatedBalanceSheetandStatementProfitLossinclude the amountitestimatestoincurmeetsuchobligations,detailsofwhicharegivenbelow: The Companyhasmadeprovisionforvariouscontractualobligationsanddisputedliabilitiesbasedonitsassessmentof Depreciation andAmortisation Other expenses Employee benefitsexpense Other Income Income fromservices Deferred taxassets(net) Fixed assets Other currentliabilities Long-term provisions Short-term provisions Reserves andsurplus Closing Balance Utilisation/Reversal Additions duringtheyear Opening Balance Trade payables Long-term loansand advances Cash andbankbalances Trade receivables Statement ofProfitandloss: advances Short-term loansand Other currentassets Provision forwarranty Particulars expense ac 1 06March31,2015 March 31,2016 March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016 ereddYearended Year ended As at As at As at 83012 (13,315,089) (8,340,112) 0222330,018,705 15,890,650 30,282,213 23,050,987 10,478,711 19,132,435 4,235,256 ,3,5 5,578,782 4,235,256 ,0,7 8,177,220 9,809,671 ,7,8 4,097,989 5,578,782 3,173,898 6,049,152 2,671,681 4,705,626 6,6 134,946 463,168 109,079 246,461 294,863 388,855 173,892 876,351 48,562 21,522 - (Amount in (Amount in (Amount in (Amount in As at As at As at 18,577,488 13,754,317 10,740,638 5,578,782 6,326,595 2,281,291 4,845,802 1,442,517 6,393,007 245,802 668,786 98,503 33,750 59,994 12,625 46,875 11,083 ` ` ` ` - ) ) ) ) 178 26 Annual Report 2015-16 cyient.com 46.1 As atMarch31,2016,2,123,507(March2015-2,123,507)equitysharesof years, 20%aftertwo25%attheendofandhalfyears30%thirdyear. from onetothreeyearsthedateofgrant,startingwith10%atendfirstyear,15%andhalf exercise price,whichshallnotbelessthanthemarketpriceondateofgrant.Theseoptionsvestoveraperiodranging account ofstocksplitcumbonusissueduring2006-07.UnderASOP2002,optionswillbeissuedtoemployeesatan employees underASOP.TheCompanymodifiedASOP2002andadjustedthenumberofoptionsexercisepriceon As atMarch31,2016,1,650,630(March2015-1,650,630)equitysharesof years, 20%aftertwo25%attheendofandhalfyears30%thirdyear. from onetothreeyearsthedateofgrant,startingwith10%atendfirstyear,15%andhalf exercise price,whichshallnotbelessthanthemarketpriceondateofgrant.Theseoptionsvestoveraperiodranging account ofstocksplitcumbonusissueduring2006-07.UnderASOP2001,optionswillbeissuedtoemployeesatan employees underASOP.TheCompanymodifiedASOP2001andadjustedthenumberofoptionsexercisepriceon Associate StockOptionPlans shares of In 1998-99,theCompanysetupInfotechEmployeeStockOfferScheme(ESOPPlan)andallotted80,900equity Infotech EmployeeStockOfferScheme1999(ESOPPlan) of optionsduringtheyear. As theoptionsweregrantedto theemployeesatmarketpriceondateofgrantthere isnocostrelatingtogrant 25% attheendoftwoandhalf yearsand30%attheendofthirdyear. the dateofgrant,startingwith 10%attheendoffirstyear,15%oneandhalf years,20%aftertwo less thanthemarketpriceondateofgrant.Theseoptions vestoveraperiodrangingfromonetothreeyears employees underASOP.UnderASOP2008,optionswillbeissued toemployeesatanexerciseprice,whichshallnotbe As atMarch31,2016,3,296,545(March2015-3,296,545) equitysharesof years, 20%aftertwo25%attheendofandhalfyears and30%attheendofthirdyear. from onetothreeyearsthedateofgrant,startingwith 10%attheendoffirstyear,15%oneandhalf exercise price,whichshallnotbelessthanthemarketpriceon thedateofgrant.Theseoptionsvestoveraperiodranging on accountofstocksplitcumbonusissueduring2006-07.UnderASOP2004,optionswillbeissuedtoemployeesatan the employeesunderASOP.TheCompanymodifiedASOP2004andadjustednumberofoptionsexerciseprice As atMarch31,2016and2015,80,900equitysharesof restriction onsellingsuchstocktotheTrust. been consideredasthevestingperiod.However,TrustandCompanyhaveadiscretionarypowertowaive allocated tosuchemployeestandstransferredtheTrustatapredeterminedprice.Hence,lock-in-periodhas it differsfromoffertooffer.WhentheemployeeleavesCompanybeforeexpiryoflock-in-periodoptions These equitysharesareunderlock-inperiod(i.e.,thedateoftransferfromTrusttoemployee)and price onaccountofbonusissueandstocksplitcumduring2002-03,2006-072010-11respectively. name ofselectedemployees.TheCompanymodifiedtheESOPPlanandadjustednumberoptionsexercise recommendation oftheManagementanduponreceiptfullpaymentupfronttransfersequitysharesin shares of under ASOP2004plan.Accordingly,options(netofcancellations) foratotalnumberofNil(March31,2015-Nil)equity shares of under ASOP2002plan.Accordingly,options(netofcancellations)foratotalnumberNil(March31,2015-Nil)equity shares of under ASOP2001plan.Accordingly,options(netofcancellations)foratotalnumberNil(March31,2015-Nil)equity The CompanyinstitutedASOP2001inAprilandearmarked225,000equitysharesof Associate StockOptionPlan-2001(ASOP2001) trust. The CompanyinstitutedASOP2004inOctoberandearmarked1,150,000equitysharesof Associate StockOptionPlan-2004(ASOP2004) The CompanyinstitutedASOP2002inOctoberandearmarked575,000equitysharesof Associate StockOptionPlan-2002(ASOP2002) The CompanyinstitutedASOP2008inJulyandearmarked 1,000,000equitysharesof Associate StockOptionPlan-2008(ASOP2008) ` ` ` `
5 eachwereoutstandingasatMarch31,2016. 5 eachwereoutstandingasatMarch31,2016. 5 eachwereoutstandingasatMarch31,2016.
10 eachatapremiumof `
100 persharetothe"InfotechESOPTrust"("Trust").TheTrust,on `
10 eachhavebeenallottedtotheInfotechESOP ` ` `
5 eachhasbeenallottedtotheassociates 5 eachhasbeenallottedtotheassociates 5 eachhasbeenallottedtotheassociates ` `
` 10 eachforissuetothe
10 eachforissuetothe 5 eachforissuetothe `
10 eachforissueto 179 26 Annual Report 2015-16 cyient.com earnings persharewouldhavebeenasfollows: at thedateofgrantinaccordancewithBlackScholesmodel,proformaamountsCompany'snetprofitand Scheme) Guidelines,1999,hadthecompensationcostforStockOptionplansbeenrecognizedbasedonfairvalue In accordancewithSecuritiesExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeePurchase Proforma EPS yet tobegrantedeligibleemployees. Particulars .EarningsPerShare B. .ProfitAfterTax A. Granted Options outstandingatthebeginningofyear Particulars Changes innumberofoptionsoutstandingwereasfollows: the stockexchanges.Undersaidscheme,1,200,000equitysharesof by themembersofCompanyattheirmeetingheldonJuly16,2015.hasgotin-principleapprovalfrom The CompanyinstitutedAssociateStockOptionPlan2015foralleligibleemployeesinpursuanceoftheresolutionpassed Associate StockOptionPlan-2015(ASOP2015) 637,383) equitysharesof under ASOP2008plan.Accordingly,options(netofcancellations)foratotalnumber318,750(March31,2015- As atMarch31,2016,807,571(March2015-685,259)equitysharesof to theassociates. associates ofsubsidiarycompanies.DuringtheyearCompanyhasgranted81,000options(2014-15105,000options) Out ofthetotaloutstandingoptions,132,500(March31,2015-125,000)optionspertaintogranted Exercised Forfeited Options outstandingatthe Proforma( - EPSasreported( Weightedaveragenumberof - - Diluted ProformaEPS( - ProformaEPS( - EPSasreported( Weightedaveragenumberof - - Basic Asreported( - ` ) ` ) ` ` ` ) )
` ` 5 eachwereoutstandingasatMarch31,2016. end ofyear ) ) shares shares `
5 eachhavebeenearmarked.Theoptionsare ` ac 1 06March31,2015 March 31,2016 ac 1 06March31,2015 March 31,2016
5 eachhasbeenallottedtotheassociates ereddYearended Year ended ,6,9,4 3,532,036,414 3,262,492,046 ,5,5,7 3,525,078,669 3,252,754,674 112,637,613 112,442,098 As at (277,321) (122,312) 637,383 318,750 81,000 28.88 28.93 29.01 28.96 112,578,995 112,182,127 As at (396,452)
956,144 (27,309) 105,000 637,383 31.31 31.42 31.48 31.37 180 26 Annual Report 2015-16 cyient.com 49. 51. 50. 48. Intangibleassets underdevelopment 47. 46.2Bonus each foreveryoneequityshareof in contingencyreserveasatMarch31,2016 Limited) w.e.fNovember1,2014.Thistransactionhasnoimpact ontheconsolidatedfinancialstatements. Enterprises GmbH)situatedinUKwastransferredtoCyient EuropeLimited(formerlyInfotechEnterprises During thepreviousyear,consequenttoaninternalreorganisation, theBristolbranchofCyientGmbH(formerlyInfotech issue hasbeenappliedtoalltheoutstandingoptionsasatdateofmember'sapproval. date ofsale,wasrecognisedas ProfitonSaleofLongTermInvestments. Amountsincurredbythe Company'swhollyownedsubsidiarypursuanttoanagreementwithacustomertowards (b) 16, 2015.Anamountof and itswholly-ownedsubsidiary,InfotechEnterprisesInformation TechnologyServicesGmbH,Germany,onSeptember The Companydisinvestedits100%stakeinInfotechEnterprises InformationTechnologyServicesPrivateLimited,India, Company transferred from taxappellateauthoritieswithrespecttovariousassessment years.Asaresult,duringthepreviousyear Contingency reserverelatestocertaintaxliabilities.During the previousyear,Companyreceivedfavourableorders 'Operating, administrationandotherexpenses'- other socialprojects.ExpensesincurredonCSRactivitiesarechargedtotheStatementofProfitandLossunder been formedbytheCompany.TheareasforCSRactivitiesarepromotingeducation,adoptionofschools,medicaland (formerly InfotechEnterprisesCharitableTrust).AsperSection135oftheCompaniesAct,2013,aCSRcommitteehas The CompanycontributestowardsCorporateSocialResponsibility(CSR)activitiesthroughitstrust,CyientFoundation AmountsincurredbytheCompanypursuanttoanagreementwithacustomer toreengineeranddesigncertain (a) Intangible assetsunderdevelopmentincludes: supply arrangements.SubsequenttothecompletionofprojectsamountswouldbecapitalisedasIntangibleassets. Intangible assetsunderdevelopmentincludeamountsincurredbytheCompanytoacquirerightuse/exclusive The membersoftheCompanyduringyear2010-11approvedBonusIssueatrateoneequityshare Exercise price( The followingassumptionswereusedforcalculationoffairvaluegrants: Grant Dateshareprice( Dividend yield(%) Particulars 2004, theassumptionshavenotbeenchanged. As nograntsweremadeduringtheyearendedMarch31,2016and2015inrespectofASOP2002 During theyearCompanyhasgranted81,000optionstoassociatesinrespectofASOP2008 Expected term(inyears) Risk-free interest(%) Expected volatility(%) ` efficiency improvementincertainequipmentonarisk/rewardsharingmodel to thecustomerovercontractedperiod equipment forwhichtheCompanywouldacquirearighttoexclusivemanufactureandsupplyofsuch
31,914,829) Issue ` ) (ASOP2008) `
161,000,000 fromcontingencyreservetogeneralreserve,based onprofessionaladvice.Balance ` `
) 23,135,239, beingexcessofsaleconsiderationoverthecarrying valueofthenet-assetsason `
5 eachheldontherecorddateforfinancialyear2010-11.Theeffectofbonus `
Nil (March31,2015 ` `
8,999,949(March31,2015- 47,567,491 (2014-15- `
Nil). `
ac 1 06March31,2015 March 31,2016 35,578,562) lc-coe Black-Scholes Black-Scholes ` Model
As at 8,999,949). 185-531.5 1.53-2.64 40-58.29 184-559 8.29-8.4 `
75,503,998 (March31,2015- 3-4 Model As at 1.53-2.64 185-325 184-324 8.29-8.4 40-47 3-4 `
5 181 26 Annual Report 2015-16 cyient.com 57. 56. 55. 54. 53. 52. Intangible Asset,tobeamortisedoveraperiodoffouryearsfromthedateacquisition. which hasnotyetcommencedcommercialoperationsduringtheyear. The Companyincorporatedawholly-ownedsubsidiaryinChina,CyientEngineering(Beijing)Limited,onMarch25,2016, ` Exceptional itemrelatestoprovisionmadetowardsbonuspayablefortheperiodofAprilDecember2015 The Companyhasreceivedanamountof remaining usefullifeoftheassetwasdeterminedtobeNilasonApril1,2014,andhasadjustedanamount Companies Act,2013,theCompanyhasfullydepreciatedcarryingvalueofassets,netresidualvalue,where During thepreviousyearendedMarch31,2015,pursuanttotransitionprovisionsprescribedinScheduleII Australia. TheCompanypaid The CompanyacquiredtherightstoperformGISandFieldvalidationservicesaTelecomServicesin a considerationof Cyient SingaporePrivateLimitedacquiredthebusinessof"GlobalServicesEngineeringAsia"onSeptember1,2015for The Companyincorporatedawholly-ownedsubsidiaryinSingapore,CyientSingaporePrivateLimited,onMay7,2015. contract. four years.TheCompanyrecognizedthesaidamountasanIntangibleassettobeamortisedoverperiodof providing theservicestothiscustomer.TheserviceagreementwaseffectiveDecember18,2015,validforaperiodof ` The depreciationexpenseintheConsolidatedStatementofProfitandLossforpreviousyearwaslowerby Reserves andSurplus. as contingentliability. Act, 2015)inrelationwiththeCompanyandtwoofitssubsidiaries.Theliabilityforyear2014-15hasbeenrecognised (net ofdeferredtax Plan (ASOP)2008. allotment. TheshareapplicationmoneyrelatestoreceivedfromassociatespursuantAssociateStockOption
87,155,406 consequenttotheamendmentPaymentofBonusAct,1965(i.e(Amendment) 54,981,117 consequenttothechangeinusefullifeofassets. `
528,463,604. Consequenttotheacquisition,anamountof `
5,741,806) againsttheopeningSurplusinConsolidatedStatementofProfitandLossunder `
26,496,640 toacquirerightsfromanotherCompanyinAustraliawhichwasalready `
1,288,000 (March31,2015- `
Nil) towardsshareapplicationmoneypending `
528,463,604 wererecognizedasan `
11,389,934 182 26 Annual Report 2015-16 cyient.com
58. Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial Statements to Schedule III to the Companies Act, 2013 Net assets, i.e., total assets Net assets, i.e., total assets Share of profit or (loss) Share of profit or (loss) minus total liabilities - March 16 minus total liabilities - March 15 - March 16 - March 15 Name of the entity As % of Amount As % of Amount As % of Amount As % of Amount consolidated (in `) consolidated (in `) consolidated (in `) consolidated (in `) net assets net assets profit or loss profit or loss Parent Company Cyient Limited (formerly Infotech Enterprises Limited) 87.43% 16,811,273,944 83.59% 15,517,043,417 69.26% 2,259,454,617 76.77% 2,711,589,299 Subsidiaries Indian 1. Infotech Geospatial India Private Limited (Refer Note 35(v)) 0.00% - -0.16% (29,438,246) 0.00% - -0.23% (8,004,872) 2. Infotech Enterprises Information Technology Services Private Limited (Refer Note 51) 0.00% - 0.36% 66,000,579 0.27% 8,865,873 0.26% 9,114,087 3. Cyient Insights Private Limited (formerly Invati Insights Private Limited) -0.90% (173,252,279) -0.26% (47,971,440) -3.74% (121,992,884) -1.31% (46,150,555) 4. Rangsons Electronics Private Limited 1.30% 249,305,819 1.31% 244,010,262 0.68% 22,033,431 0.02% 865,369 Minority Interests in all subsidiaries Minority Interest of Cyient Insights Private Limited (formerly Invati Insights Private Limited) 0.00% - 0.00% - 0.00% - 0.64% 22,613,771 Minority Interest of Rangsons Electronics Private Limited -0.67% (128,054,018) -0.66% (122,325,318) -0.18% (5,728,695) -0.01% (224,996) Foreign 1. Cyient Inc(formerly Infotech Enterprises America Inc.) 2.68% 515,759,991 8.71% 1,617,187,178 14.39% 469,369,952 15.07% 532,279,538 2. Cyient Europe Limited(formerly Infotech Enterprises Europe Limited) 1.39% 267,954,057 0.46% 85,947,328 8.40% 274,061,929 4.73% 167,020,081 3. Cyient GmbH(formerly Infotech Enterprises GmbH) 4.21% 808,636,128 3.65% 678,035,701 1.43% 46,568,667 -0.44% (15,396,628) 4. Cyient KK(formerly Infotech Enterprises Japan KK) -0.43% (81,896,162) -0.52% (96,295,677) 0.85% 27,716,294 0.13% 4,627,999 5. Cyient Australia Pty Limited 0.88% 168,676,973 0.00% - 4.74% 154,656,865 0.00% - 6. Cyient Singapore Private Limited 0.07% 12,993,548 0.00% - 0.07% 2,186,386 0.00% - Associates (Investment as per the equity method) Foreign Infotech Aerospace Services Inc. 4.08% 784,362,750 3.58% 664,038,116 3.69% 120,324,634 4.26% 150,374,958 Joint Ventures (as per proportionate consolidation) Indian Infotech HAL Limited -0.04% (8,340,112) -0.07% (13,315,089) 0.15% 4,974,976 0.09% 3,328,361 Note 1 : Step down subsidiary figures have been consolidated with respective subsidiary. Note 2 : Cyient Australia Pty Limited was not considered for consolidation in the previous year. 183 26 Annual Report 2015-16 cyient.com 9 Regrouping/Reclassification 59. classification /disclosures. Previous year'sfigureshavebeenregrouped/reclassifiedwherevernecessarytocorrespondwiththecurrent jyAgra SudheendhraPutty Secretary Company (DIN–05301037) :April21,2016 Date ManagingDirector&CEO : Place Bodanapu Krishna Chief FinancialOfficer Ajay Aggarwal (DIN –00058215) Chairman Executive B.V.R. MohanReddy For andonbehalfoftheBoardDirectors Hyderabad 184 26 Annual Report 2015-16 cyient.com
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures (Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014 - AOC I) Part "A": Subsidiaries Name of the subsidiary Cyient Inc., Cyient Europe Cyient Cyient KK Cyient Cyient Cyient Rangsons Limited GmbH Australia Pty Singapore Insights Electronics Ltd Private Limited Private Limited Private Limited Reporting period for the subsidiary concerned, if different from the holding company’s reporting period April to March April to March April to March April to March April to March April to March April to March April to March Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign Subsidiaries. USD66.33 GBP95.09 EUR75.10 JPY0.59 AUD50.80 SGD49.15 INR INR Share capital 21,450,000 1,850,000 600,000 9,000,000 1,000 5,085,360 19,994,780 13,670,000 Reserves & surplus 4,690,485 4,060,107 11,989,826 (139,692,441) 3,320,325 24,977 (194,590,011) 387,509,576 Total assets 72,236,596 22,722,098 28,483,360 334,927,215 11,800,672 16,750,709 24,546,017 2,584,746,526 Total Liabilities 46,096,111 16,811,991 15,893,534 465,619,656 8,479,347 11,640,372 199,141,248 2,183,566,951 Investments 1,928 1,949 ------Turnover 230,677,035 35,631,092 22,334,171 546,936,506 22,797,902 8,410,859 36,433,600 2,564,442,577 Profit before taxation 10,937,775 3,368,826 1,107,283 52,086,188 4,743,322 (154,023) (121,994,840) (102,345,865) Provision for taxation 4,893,035 651,771 351,526 6,801,600 1,422,997 (179,000) (1,956) (33,043,450) Profit after taxation 6,044,740 2,717,055 755,757 45,284,588 3,320,325 24,977 (121,992,884) (69,302,415) Proposed Dividend ------% of shareholding 100% 100% 100% 100% 100% 100% 51% 74%
Notes: 1. Cyient Engineering (Beijing) Limited, China was incorporated during the year 2015-16. It has not yet started commercial operations. 2. Names of subsidiaries which have been merged or sold during the year - (a) Infotech Geospatial(India) Private Limited (Merged with holding company) (b) Infotech Enterprises Information technology services Private Limited (Sold) 185 26 Annual Report 2015-16 cyient.com .Reasonwhytheassociate/joint 4. Description of how there is 3. Infotech HAL Limited , India InfotechAerospaceServicesInc.,USA SharesofAssociate/JointVentures 2. LatestauditedBalanceSheetDate 1. Venture Associate/Joint of Name Part "B":AssociatesandJointVentures .Profit/Lossfortheyear 6. Networthattributableto 5. .Namesofassociatesorjointventureswhichhavebeenliquidatedsoldduring-None. 2. Namesofassociatesorjointventureswhichareyettocommenceoperations-None. 1. significant influence significant No. i. held bythecompanyonyearend i.ExtentofHolding% iii. AmountofInvestmentin ii . consolidated venture isnot .Cniee nCnoiaini) ConsideredinConsolidation i. audited BalanceSheet Shareholding asperlatest i o osdrdi osldto i - ii) Consolidation in Considered Not ii. Associates/Joint Venture )490 i) i)49% iii) $ 15,582,329 There isnosignificantinfluence ii) NA ` ` 11,172,000 120,324,634 March 31, 2016 theextentofshareholding NA .2,000,000 i. ` i) i.50% iii. There issignificantinfluenceto ii. i - ii) 11,659,888 ` ` 20,000,000 4,974,977 March 31, 2016 186 26 Annual Report 2015-16 cyient.com
A 10 Year Historical Prespective - Standalone (` Millions except per share data, other information and ratios) Particulars 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 For the year Total Revenue 3,549.40 4,540.86 5,438.11 6,079.50 6,774.24 9,173.78 10,888.66 12,769.19 13,969.46 13,590.56 EBITDA 988.77 1,091.92 1,123.29 1,960.04 1,667.73 2,645.64 3,196.24 3,967.31 4,053.64 3,634.99 Financial charges 3.61 28.70 35.14 4.71 0.80 5.65 0.85 3.61 5.12 2.28 Depreciation & Amortization 222.69 343.03 426.64 407.07 375.48 411.59 563.23 648.66 618.05 688.05 Provision for Income Tax 100.08 94.30 110.00 125.70 125.78 714.59 699.14 763.12 706.92 584.20 Deferred Tax (1.34) 25.02 (174.10) 154.92 9.76 (72.15) 71.45 2.77 11.96 (45.68) Fringe Benefit Tax 13.27 15.29 17.00 ------Profit Before Exceptional item 650.45 585.57 708.62 1,267.65 1,155.91 1,585.96 1,861.56 2,549.15 2,711.59 2,406.13 Exceptional items - - - - (22.89) - 18.12 - - 71.63 Profit after tax from ordinary activities 650.45 585.57 708.62 1,267.65 1,178.80 1,585.96 1,843.45 2,549.15 2,711.59 2,334.50 Dividend 51.92 62.55 82.84 222.00 138.97 278.54 585.50 559.26 898.79 787.13 As at the end of the year Share capital 230.77 1,241.28 276.15 277.50 556.38 557.08 558.01 559.82 561.81 562.42 Reserves and surplus 2,504.56 5,014.97 6,622.86 7,760.85 8,523.12 9,792.34 11,108.27 13,298.26 15,244.29 16,267.71 Net Worth 2,735.33 6,256.25 6,899.01 8,038.35 9,079.50 10,349.42 11,666.28 13,858.09 15,806.09 16,830.13 Share application money pending allotment ------3.92 1.43 - 1.29 Loan funds 151.74 380.54 186.67 ------Gross block 2,323.50 3,703.78 4,542.28 4,836.26 5,350.39 5,976.23 6,810.10 7,226.05 7,806.43 8,162.00 Capital investment 644.06 1,380.27 838.50 293.99 514.12 625.84 833.87 415.95 580.38 355.57 Net Curent assets 1,046.02 1,766.40 3,203.98 2,651.53 4,495.57 5,438.16 6,230.26 8,523.76 7,589.22 8,411.43 Debt - equity ratio 0.055 0.061 0.027 ------Market capitalization Per share data Bonus/Capital History 1:1 Basic earnings from ordinary activities (`) (EPS) 14.18 11.54 13.30 11.45 10.60 14.24 16.53 22.81 24.17 20.76 Dividend Per Share (`) (DPS) 1.13 1.20 1.50 2.00 1.25 2.50 4.50 5.00 8.00 7.00 Dividend (%) 22.5% 24.0% 30.0% 40.0% 25.0% 50.0% 90.0% 100.0% 160.0% 140.0% Dividend Pay-out (%) 8.0% 10.7% 11.7% 17.5% 11.8% 17.6% 27.2% 21.9% 33.1% 33.7% Book Value (`) 59 120 125 72 82 93 105 124 141 150 Face Value (`) 555555555 5 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Figures for FY 10-11 have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure. The Company sub divided it `10 share into 2 shares of `5 each. Post that 1 Bonus share was issued for every 2 shares held. 187 26 Annual Report 2015-16 cyient.com
Financial Analysis – Standalone Balance Sheet (` Million and Percentage) 2015-16 % 2014-15 % 2013-14 % 2012-13 % 2011-12 % SOURCES OF FUNDS Shareholders' Funds Share Capital 562.42 3.24 561.81 3.45 559.82 3.94 558.01 4.65 557.08 5.19 Reserves and Surplus 16,267.71 93.59 15,244.29 93.65 13,298.26 93.61 11,108.27 92.53 9,792.34 91.21 Net worth 16,830.13 96.83 15,806.09 97.10 13,858.09 97.55 11,666.28 97.18 10,349.42 96.40 Share application money pending allotment 1.29 0.01 - - 1.43 0.01 3.92 0.03 - - Loan Funds Secured ------Unsecured ------Total debt ------Long Term Liabilities Long Term Provisions 550.17 3.17 472.59 2.90 346.58 2.44 334.94 2.79 386.41 3.60 TOTAL 17,381.58 100.00 16,278.69 100.00 14,206.09 100.00 12,005.14 100.00 10,735.83 100.00 APPLICATION OF FUNDS Fixed Assets Gross 8,162.00 46.96 7,806.43 47.95 7,226.05 50.87 6,810.10 56.73 5,976.23 55.67 Depreciation & Amortization 5,321.40 30.62 4,687.57 28.80 4,061.80 28.59 3,464.11 28.86 2,924.36 27.24 Net block 2,840.60 16.34 3,118.86 19.16 3,164.25 22.27 3,345.99 27.87 3,051.87 28.43 Non Current Investments 4,587.23 26.39 4,460.29 27.40 1,447.04 10.19 1,447.04 12.05 1,447.04 13.48 Deferred Tax Assets 56.52 0.33 5.92 0.04 12.16 0.09 14.93 0.12 86.38 0.80 Long Term loans & Advances 1,485.80 8.55 1,104.39 6.78 1,058.88 7.45 966.91 8.05 712.37 6.64 Other Non Current Assets ------Current Assets Current Investment 790.48 4.55 336.08 2.06 400.36 2.82 609.77 5.08 222.49 2.07 Trade Receivables 2,802.35 16.12 2,983.92 18.33 2,664.47 18.76 1,802.63 15.02 1,813.01 16.89 Cash & Cash Equivalents 4,956.26 28.51 4,424.55 27.18 5,807.91 40.88 4,248.05 35.39 3,908.31 36.40 Short Term Loans and Advances 749.28 4.31 842.53 5.18 703.35 4.95 590.89 4.92 251.88 2.35 Other Current Assets 998.63 5.75 1,131.97 6.95 961.56 6.77 814.06 6.78 477.50 4.45 Total Current assets 10,296.99 59.24 9,719.05 59.70 10,537.65 74.18 8,065.40 67.18 6,673.19 62.16 Less: Current Liabilities 1,885.56 10.85 2,129.82 13.08 2,013.89 14.18 1,835.14 15.29 1,235.03 11.50 Net current Assets 8,411.43 48.39 7,589.22 46.62 8,523.76 60.00 6,230.26 51.90 5,438.16 50.65 TOTAL 17,381.58 100.00 16,278.69 100.00 14,206.09 100.00 12,005.14 100.00 10,735.83 100.00 188 26 Annual Report 2015-16 cyient.com
Financial Analysis – Standalone
Profit and Loss Summary (` Million and Percentage) 2015-16 % 2014-15 % 2013-14 % 2012-13 % 2011-12 % INCOME Revenue from Operations 12,455.62 91.65 12,940.14 92.63 12,244.89 95.89 10,515.56 96.57 8,638.00 94.16 Other Income 1,134.94 8.35 1,029.32 7.37 524.30 4.11 373.10 3.43 535.79 5.84 Total Income 13,590.56 100.00 13,969.46 100.00 12,769.19 100.00 10,888.66 100.00 9,173.78 100.00 EXPENDITURE Employee Benefits Expense 6,303.13 46.38 6,439.41 46.10 5,716.49 44.77 4,994.72 45.87 4,247.76 46.30 Operating, Administration And Other Expenses 3,652.44 26.87 3,476.41 24.89 3,085.39 24.16 2,697.70 24.78 2,280.38 24.86 Finance Costs 2.28 0.02 5.12 0.04 3.61 0.03 0.85 0.01 5.65 0.06 Depreciation And Amortisation Expenses 688.05 5.06 618.05 4.42 648.66 5.08 563.23 5.17 411.59 4.49 Total Expenditure 10,645.90 78.33 10,539.00 75.44 9,454.14 74.04 8,256.51 75.83 6,945.39 75.71 Profit before exceptional items and tax 2,944.66 3,430.46 3,315.04 2,632.15 2,228.40 24.29 Exceptional items 71.63 0.53 - - - - 18.12 0.17 - - Profit after exceptional items and before tax 2,873.03 21.14 3,430.46 24.56 3,315.04 25.96 2,614.03 24.01 2,228.40 24.29 Provision for Income Tax 584.20 4.30 706.92 5.06 763.12 5.98 699.14 6.42 714.59 7.79 Deferred Tax (45.68) (0.34) 11.96 0.09 2.77 0.02 71.45 0.66 (72.15) (0.79) Fringe Benefit Tax ------PROFIT AFTER TAX 2,334.50 17.18 2,711.59 19.41 2,549.15 19.96 1,843.45 16.93 1,585.96 17.29 189 26 Annual Report 2015-16 cyient.com
Financial Analysis – Consolidated
Balance Sheet (` Million and Percentage) 2015-16 % 2014-15 % 2013-14 % 2012-13 % 2011-12 % SOURCES OF FUNDS Shareholders' Funds Share Capital 562.42 2.72 561.81 2.86 559.82 3.43 558.01 4.09 557.08 4.60 Reserves and Surplus 18,535.66 89.57 17,878.79 90.91 15,323.44 93.90 12,663.51 92.76 11,017.74 91.05 Net worth 19,098.08 92.29 18,440.59 93.77 15,883.27 97.33 13,221.53 96.85 11,574.81 95.65 Share application money pending allotment 1.29 0.01 - - 1.43 0.01 3.92 0.03 - - Loan Funds Secured 681.03 - 466.77 ------Total debt 681.03 3.29 466.77 2.37 ------Long term Liabilities 90.38 0.44 3.14 0.02 Long term Provisions 653.46 3.16 582.35 2.96 381.71 2.34 380.84 2.79 493.14 4.08 Minority Interest 128.05 0.62 122.33 0.62 ------Deferred Tax Liability 41.76 0.20 50.52 0.26 51.76 0.32 45.07 0.33 33.06 0.27 TOTAL 20,694.06 100.00 19,665.71 100.00 16,318.17 100.00 13,651.37 100.00 12,101.02 100.00 APPLICATION OF FUNDS Fixed Assets Gross 13,326.96 64.40 13,386.58 68.07 7,998.49 49.02 7,555.77 55.35 6,810.63 56.28 (Including Goodwill) Depreciation & Amortization 6,535.07 31.58 5,405.45 27.49 4,561.90 27.96 3,973.39 29.11 3,345.16 27.64 Net block 6,791.88 32.82 7,981.13 40.58 3,436.59 21.06 3,582.38 26.24 3,465.47 28.64 Non Current Investments 795.74 3.85 675.42 3.43 525.04 3.22 372.99 2.73 243.94 2.02 Deferred Tax Assets 187.49 0.91 65.24 0.33 73.54 0.45 38.40 0.28 63.22 0.52 Long term loans and advances 1,645.44 7.95 1,358.96 6.91 1,068.43 6.55 912.45 6.68 734.70 6.07 Other non-current assets 2.12 0.01 1.84 0.01 2.08 0.01 0.19 0.00 - 0.00 Current Assets Current Investment 790.48 3.82 336.08 1.71 400.36 2.45 609.77 4.47 222.49 1.84 Inventories 978.58 4.73 606.06 3.08 - - Trade Receivables 6,145.01 29.69 5,335.86 27.13 4,799.79 29.41 4,007.48 29.36 3,674.97 30.37 Cash and cash equivalents 6,950.84 33.59 6,228.51 31.67 6,912.70 42.36 4,983.51 36.51 4,559.85 37.68 Short-term loans and advances 1,088.66 5.26 1,362.76 6.93 710.06 4.35 589.25 4.32 352.57 2.91 Other current assets 1,993.35 9.63 1,833.80 9.32 1,624.84 9.96 1,003.57 7.35 719.24 5.94 Total Current Assets 17,946.92 86.72 15,703.07 79.85 14,447.76 88.54 11,193.58 82.00 9,529.12 78.75 Current Liabilities 6,675.54 32.26 6,119.94 31.12 3,235.25 19.83 2,448.63 17.94 1,935.44 15.99 Net current Assets 11,271.38 54.47 9,583.13 48.73 11,212.50 68.71 8,744.95 64.06 7,593.68 62.75 TOTAL 20,694.06 100.00 19,665.71 100.00 16,318.17 100.00 13,651.37 100.00 12,101.02 100.00 190 26 Annual Report 2015-16 cyient.com
Financial Analysis – Consolidated
Profit and Loss Summary (` Million and Percentage) 2015-16 % 2014-15 % 2013-14 % 2012-13 % 2011-12 % INCOME Revenues from Operations 30,955.70 96.61 27,359.33 95.74 22,064.33 99.24 18,730.63 98.01 15531.33 98.88 Other Income 1,085.39 3.39 1,217.66 4.26 169.40 0.76 381.10 1.99 175.30 1.12 Total Income 32,041.09 100.00 28,576.99 100.00 22,233.73 100.00 19,111.73 100.00 15,706.63 100.00 EXPENDITURE Employee Benefits Expenses 18,080.84 56.43 16,756.05 58.63 13,677.78 61.52 11,405.99 59.68 9525.70 60.65 Cost of materials consumed 1,881.18 5.87 291.10 1.02 Changes in inventories of finished goods and work in progress 5.99 0.02 167.54 0.59 Operating, Administration And Other Expenses 6,780.16 21.16 6,136.43 21.47 4,284.27 19.27 3,901.05 20.41 3314.56 21.10 Finance Costs 178.83 0.56 57.56 0.20 13.67 0.06 2.87 0.02 7.34 0.05 Depreciation And Amortisation Expenses 892.95 2.79 712.78 2.49 719.98 3.24 635.50 3.33 494.13 3.15 Total Expenditure 27,819.96 86.83 24,121.45 84.41 18,695.71 84.09 15,945.41 83.43 13,341.74 84.94 Profit before exceptional items and tax 4,221.13 13.17 4,455.54 15.59 3,538.02 15.91 3,166.33 16.57 2,364.90 15.06 Exceptional Items 87.16 0.27 - 0.00 - 0.00 18.12 0.09 15.92 0.10 Profit after exceptional items and before tax 4,133.97 12.90 4,455.54 15.59 3,538.02 15.91 3,148.21 16.47 2,348.98 14.96 Provision for Income Tax 1,119.39 3.49 1,046.12 3.66 1,037.77 4.67 930.83 4.87 866.00 5.51 Deferred Tax (133.32) -0.42 50.15 0.18 (7.72) -0.03 35.84 0.19 -30.67 -0.20 Profit Before Extraordinary Item 3,147.90 9.82 3,359.27 11.76 2,507.97 11.28 2,181.54 11.41 1,513.66 9.64 Share of Profit in Associate Company 120.32 0.38 150.37 0.53 152.05 0.68 129.05 0.68 100.09 0.64 Minority Interest (5.73) - 22.39 ------POST TAX PROFIT 3,262.49 10.18 3,532.04 12.36 2,660.02 11.96 2,310.59 12.09 1,613.75 10.27 191 26 Annual Report 2015-16 cyient.com Book value( Cash Earningspershare( Basic earningspershare( Per ShareData Net Profit(%) (%) EBIDTA (%) expenses Operating (%) revenue Total Revenue fromOperationsrevenue(%) Ratios -Growth* Assets Total Revenue/Average Total Assets Fixed Net Revenue/Average Total (%) block gross Depreciation/Average Cash &cashequivalents/Totalrevenue(%) Cash &cashequivalents/Totalassets(%) ratio Current (Days) turnover Debtors ratio Debt-equity 94.16 Ratios- Balancesheet (%) employed) capital (PBIT/Average ROCE 96.57 Net Profit(PAT)/Averagenetworth(%) (%) revenues (PAT)/Total Profit Net 95.89 (%) revenue EBIDTA/Total (%) TAX/PBT 92.63 (%) revenue Tax/Total (%) revenue Charges/Total Financial 91.65 (%) revenue Depreciation/Total (%) revenue expenses/Total Operating (%) revenue expenses/Total Administration (%) revenue cost/Total Employee (%) revenue Income/Total Other (%) revenue Operations/Total from Revenue Ratio -FinancialPerformance Ratio analysisfortheyearendedMarch31 Ratio Analysis-Standalone o fSaeOttniga nMrh3,(nMlin) 1.8 1.6 1.6 1.0111.42 149.30 111.60 170.15 111.96 325.80 112.36 504.27 112.48 426.70 Dividend PerShare( No. ofShareOutstandingasonMarch31,(inMillions) Share priceasonMarch31(NationalStockExchange) year of end value, Price/Book Price/Cash Earning,endofyear year of end Price/Earning, Dividend (%) ` ) ** ` ) ` ` ) ) (39) .7 82 1.434.54 16.24 38.28 6.37 (13.91) (03) .8 48 2.158.64 20.81 24.83 2.18 (10.33) 196 106 137 145 92.89 104.53 123.77 140.67 149.62 (.1 94 1.7 86 35.42 18.69 17.27 9.40 (2.71) (.4 56 1.5 17 33.37 21.74 16.45 5.68 (3.74) 1.8 94 1.6 69 17.29 16.93 19.96 19.41 17.18 2.7 96 2.6 15 17.93 14.24 21.56 16.53 28.56 22.81 29.63 24.17 26.87 20.76 2.2 40 3.1 06 34.51 30.69 35.81 24.04 25.72 1.8 70 1.1 .98.33 10.49 7.89 10.29 11.41 14.28 17.02 20.86 15.88 20.55 3.7 16 4.8 90 45.03 39.01 45.48 31.67 16.33 36.47 16.75 19.97 18.28 14.31 7.5 09 6.3 06 71.16 70.65 68.93 70.98 73.25 2.7 48 2.6 47 24.86 24.78 24.16 24.89 26.87 2.3 06 2.2 67 32.07 26.75 23.02 20.61 20.33 2.2 90 3.7 91 28.84 29.19 31.07 29.02 26.22 1.6 31 2.0 39 23.00 23.92 26.00 23.16 18.06 46.30 45.87 44.77 46.10 46.38 140% 0621 0421 2012 2013 2014 2015 2016 00 00 00 00 0.06 0.01 0.03 0.04 0.02 28 35 26 16 1.61 1.63 2.63 3.58 2.85 70 80 50 45 2.50 4.50 5.00 8.00 7.00 5.40 4.39 5.23 4.56 5.46 43 50 59 64 7.79 6.42 5.98 5.06 4.30 50 44 50 51 4.49 5.17 5.08 4.42 5.06 83 73 41 34 5.84 3.43 4.11 7.37 8.35 04 1.6 44 1.327.84 17.83 14.42 7.27 12.66 8.81 0.40 9.24 8.22 8.62 07 08 08 08 0.83 0.84 0.85 0.81 0.72 45 44 39 34 3.16 3.40 3.92 4.45 4.56 8 8 7 6 77 63 79 84 82 - 6%10 0 50% 90% 100% 160% - - - - 192 26 Annual Report 2015-16 cyient.com iied % 140% 1.44 10.30 1.44 7.89 8.21 15.52 2.30 38.45 6.45 13.69 43.18 32.74 3.07 10.79 149.30 16.02 15.12 12.27 13.35 2.51 27.33 170.15 30.70 14.71 32.78 22.34 11.55 19.80 325.80 20.60 (7.63) 1.28 1.20 4.92 504.27 - 17.16 Dividend (%) 17.80 112.48 99 4.53 1.24 426.7 Dividend PerShare( 4.57 28.11 Bonus Issue 24.00 - No. ofShareOutstandingasonMarch31,(inMillions) 5.32 95 16.07 1.24 4.47 13.14 Share priceasonMarch31(NationalStockExchange) Price /Bookvalue,endofyear 6.29 1.21 2.57 - 87 Price/Cash Earning,endofyear year of end 30.45 Price/Earning, 8.11 34.07 6.84 1.16 2.69 Book value( 35.56 83 0.03 26.08 Cash Earningspershare(` 8.77 30.95 9.06 Basic earningspershare( 30.71 31.09 10.27 Per ShareData 0.04 14.76 35.35 18.25 79 9.26 21.70 Net Profit(%) 29.11 21.80 12.09 (%) EBIDTA 18.64 24.15 19.91 25.56 6.67 (%) Expenses Operating 0.05 24.60 21.69 11.96 (%) Revenue Operating 18.28 25.40 19.21 24.41 6.69 Ratios -Growth* 23.85 0.02 12.36 Assets 20.58 Total Revenue/Average 18.29 1.12 26.30 Assets Fixed Net Revenue/Average 3.15 60.65 10.18 0.06 17.38 16.52 Depreciation &Amortization/Averagegrossblock(%) 23.44 1.99 Cash &Equivalents/TotalRevenue(%) 59.68 3.33 Cash &Equivalents/TotalAssets(%) 0.20 0.76 ratio Current 61.52 3.24 (Days) turnover Debtors 0.56 21.10 ratio 58.63 Debt-equity 4.26 2.49 Ratios- Balancesheet 20.41 56.43 employed) capital (PBIT/Average ROCE 3.39 (%) Worth Net Profit/Average Net 2.79 19.27 (%) Revenue Profit/Total Net (%) Revenue EBIDTA/Total 21.47 (%) TAX/PBT (%) Revenue Charges/Total Financial 21.16 (%) Revenue Amortization/Total & Depreciation Operating &Administrationexpenses/TotalRevenue(%) (%) Revenue cost/Total Employee (%) Revenue Income/Total Other Ratio -FinancialPerformance Ratio analysisfortheyearendedMarch31 Ratio Analysis-Consolidated ` 197 141 118 184 103.89 118.47 141.86 164.12 169.79 ) ` 70 80 50 45 2.50 4.50 5.00 8.00 7.00 ) ` 3.4 77 3.9 64 18.92 26.40 30.19 37.78 36.94 ) 2.1 14 2.0 07 14.49 20.72 23.80 31.48 29.01 ) 0621 0421 2012 2013 2014 2015 2016 6.0 0.0 00%50.00% 90.00% 100.00% 160.00% 1.6119 111.60 111.96 112.36 111.42 193 26 Annual Report 2015-16 cyient.com Significant MilestonesinthehistoryofCompany 2001 2000 2000 1999 1998 1997 1995 1991 November October November September August July June October April April May April January September September January December March August August group, FUGRO Infotech Enterpriseswinsamultimillion dollarGISprojectfromtheDutchmulti-national company specializingin3DCAD/CAM Software GmbH(AGS).AGSisnine-year-oldmechanicalengineering softwareandservices Infotech EnterprisesannouncestheacquisitionofaGerman company, AdvancedGraphics division ofUnitedTechnologiesCorporation,aFortune100company approximate costof of issue ofequity/optionallyconvertibledebenturesaggregatingto11,50,000equityshares Infotech EnterprisessignedashareholderagreementwithWaldenNikkoandGECapitalfor months Surveys Inc.-US Infotech EnterprisesacquiresCartographicSciencesPvt.Mumbai-IndiafromAnalytical the nexttwoyears cash paymentofUS$1.80millionandissuestockInfotechfor$1.80over company- DataviewSolutionsLimited.Thecompanyacquiredwithanupfront Infotech EnterprisesannouncesacquisitionofEuropebasedGISsoftwaresolution in thebusinessofsupplyingcomputersoftwareandrelatedservices in theUnitedstatesofAmericastateCalifornia.TheCorporationisprimarilyengaged Infotech EnterprisesestablishesawhollyownedsubsidiarySoftwareSolutionsInc. software servicesfromInfotechEnterprises Infotech andASIsignalongtermcontractfortosourceUS$33millioninconversion seamless marineelectronicchartsfordigitizationandConversionservices and MappingservicesworthUS$5.5milliontoAnalyticalSurveys,Inc.(ASI) developers, creatinganindependentprofitcentre Infotech EnterprisesdiversifiesintoBusinesssoftwaredevelopmentbyadding50 Partner inDevelopmentwithIBMfordevelopingEnterprisewideInformationSystem. of expertise the companyassets,customers,technologies,employeesandover500personyears services inOracleandVisualbasicclientserverenvironments.Theacquisitionbroughtinto Acquisition ofSRGInfotech,a16-year-oldlocalsoftwarecompanyproviding in allmajorstockexchangesIndia services distributor inEurope Infotech EuropeacquiresEuropean GISdistributorMapCentric-aleadingindependent Infotech EnterprisesentersintoaMasterServicesAgreement withPratt&Whitney,a Merger ofCartographicScienceswiththeCompany sq.ft. areainInfocity-Hyderabad.Thestate-of-the-artdevelopment centrebuiltatan Inauguration ofthestate-of-the-artsoftwaredevelopment centre spreadacross130,000 for completionofaprestigiousGISprojectatBhartiTelenetLimitedinrecordtimefive Infotech EnterprisesearnedthecovetedFastTrackAwardfromSmallworldPte.Ltd.U.K. Infotech EnterprisesreceivesanISO9001foritssoftwaredevelopmentservices Infotech EnterprisesentersintoanagreementwithNavionicsItalytheworldleaderin Infotech Enterprisessignsabreak-throughcontracttoprovideGISconversion,Consulting Re-organized asapubliclimitedcompany;IPOofEquitysharesat The companyreceiveditsfirstISO9002certificationfromBVQiLondonforconversion Infotech Enterpriseswasincorporatedasaprivatelimitedcompany ` 10eachatapriceof ` 12croreandcanaccommodate4,000softwareengineers ` 350each ` 20pershareandlisted 194 26 Annual Report 2015-16 cyient.com 2005 2004 2003 2002 2006 December March October September July May April March March September September July January April August April February May September September September April December November August July June May Infotech Enterprisesopensbranch officeatCanada Signs amajorGIScontractwith GEforSwisscom Completed 5yearsofrelationship withPratt&Whitney Wins alandmarkGIScontractfromKPNTelecomandalsosigns a5-yearmajorEngineering Infotech EnterprisesopensbranchofficeinDubai Inaugurated GeospatialproductionfacilityatFrostburg,Maryland, USA Infotech EnterprisesopensbranchofficeinMelbourne,Australia Infotech EnterprisesopensbranchofficeinSingapore Infotech EnterprisesacquiresTeleAtlasIndiaPvt.Ltd. Atlas(Netherlands)joinsasa Infotech EnterprisesconferredwithBS7799standards Infotech Enterprisesdivests51%ofitsstakeinAerospaceServicesInc.favour Change inBusinessModel.Verticalizationbroughtintoplace Infotech EnterprisesacquiresVARGIS-aGISCompanyintheUS Infotech Enterprisesattainsthebestprocessimprovementmodel-"TheLevel5ofCMMi Infotech Enterprisesbags a majorGIScontractfromKPNTelecom,thelargest Infotech Enterprises’BoardrecommendsissueofBonusSharesat1:1ratio Division ofUTC.Pratt&Whitneytoparticipatewithup~18%equitystakeinInfotech, Infotech EnterprisesAnnouncesstrategicbusinessrelationshipwithPratt&Whitney Infotech EnterprisesbagsacontractworthUS$7milliontoprovidePhotogrammetryservice Design AgreementwithAlstomTransport strategic partnerwithpreferentialallotmentofshares of UnitedTechnologiesCorporation to provideEngineeringServicesinIndia Infotech EnterprisessignslongtermoutsourcingcontactwithBombardierTransportation Rico toprovideengineeringdesignservices Infotech EnterprisesannouncestheinaugurationofanewdevelopmentcenterinPuerto Version 1.1fortheSW/SE/SSdisciplines" Pradesh (2001-2002) (FAPCCI) AwardforBestInformationTechnology(IT)CompanyinthestateofAndhra Company bagstheFederationofAndhraPradeshChambersCommerce&Industry telecommunications companyintheNetherlands,toprovidespatialdatamanagementservices. Division Infotech EnterprisesachievesSEICMMLevel5foritsSoftwareDevelopment&Services demonstrating longtermpartneringintentandendorsingInfotechBusinesscompetence facility inBangalore,India Infotech Enterprisesannouncestheopeningofstate-of-the-artEngineeringservices business byBVQiLondon Infotech EnterprisesreceivesISO9001:2000forSoftwareandEngineeringServiceslinesof development centreatInfocity,Hyderabad Infotech EnterprisesattainsthecovetedSEICMMLEVEL4certificationforitssoftware companies inIndiaandthefirstcompanyGISsector Infotech EnterprisesachievestheISO9001:2000fromBVQiandjoinslistoftopfew Manikonda, Hyderabad. Infotech Enterprisesacquires10-acresoflandtosetupasoftwaredevelopmentcampusat 2000-2001 Infotech Enterprisesranks5thamongTopTenExportersfromAndhraPradeshfortheYear to Triathlon,aleadingfullfledgedgeomaticscompanyinCanada 195 26 Annual Report 2015-16 cyient.com 2016 2015 2014 2013 2013 2012 2011 2010 2009 2008 2007 July September August June March February October August July April January December October August May April March March November September April January October October November May August January January December December October Preferential allotmentofsharestoGAGlobalInvestmentsLimited&CarrierInternational (India) Limited and Technology,GovernmentofIndia R&D UnitrecognisedbyDepartmentofScientificandIndustrial Research,MinistryofScience Launched NationalDigitalLiteracyMissionCentre Companies (NASSCOM) Sundstrand the MinistryofDefence,atBangalore Set upInfotechHALLimited,aJointVentureCompanywithHAL,NavaratnaPSUunder Mauritius Limited Acquires 74%stakeinGeospatialIntegraandrenamedthecompanyasInfotech Set upasubsidiaryinChina Management Association 'Lifetime AchievementAward' conferredonMr.B.V.R.MohanReddybyHyderabad Established stateoftheartdevelopment centreinWarangal,Telangana Set upstepdownsubsidiaryinCzechrepublic Launched DigitalLibraryInitiative Limited, awhollyownedsubsidiary Divested entirestakeinInfotechEnterprisesInformation Technology ServicesPrivate Acquired Pratt&WhitneyGlobalServicesEngineeringAsia,Singapore Mr. B.V.R.MohanReddyelectedChairmanofNationalAssociation ofSoftwareServices ElectronicsPvt. Ltd.,Mysore Acquired 74%stakeinRangsons Won the14thICSINationalAwardforExcellenceinCorporateGovernance Set upsubsidiaryinAustralia. Acquired 51%stakeinInvatiInsightsPvt.Ltd.,Hyderabad Re-branding completed,newlogolaunchedandCompany’snamechangedtoCyient Mr. KrishnaBodanapuappointedManagingDirector&CEO Commenced processfornamechangeandre-branding Acquired SoftentialInc., Set upbranchinSouthAfrica Set upbranchinTaiwan Opened officeinSiliconValley Inaugurated NewDevelopmentCentreinSEZatKakinada Won GoldenPeacockAwardforexcellenceinCorporateGovernance Set upbranchinSouthKorea IGIL becomesawhollyownedsubsidiary Awarded ‘Supplieroftheyear’byBoeing Acquired WellscoInc.,USA(Stepdownsubsidiary) Acquired DaxconEngineeringInc.,USA(Stepdownsubsidiary) Infotech EnterprisessignsalongtermengineeringservicescontractwithHamilton Infotech EnterprisesopensbranchofficeinMalaysia Established whollyownedsubsidiaryinJapan Acquired TTM(India)PrivateLimitedandInc;madeforayintoHitechVertical 196 26 Annual Report 2015-16 cyient.com are publishedelsewhereinthisAnnualReport. The companyisheadquarteredinHyderabad,Indiaandhasa globalpresenceacross38locations.Fulldetailsofthelocations Where isthecompanylocated? l l l l The companymadeitsmaidenpublicofferinMarch1997atapriceof When didtheCompanyhaveitsInitialPublicOffer(IPO)andatwhatprice? The foundermembersofthecompanyare:Mr.B.V.R.MohanReddy,Mrs.B.Sucharitha,andK.RajanBabu. Who arethefoundermembersofcompany? actively promoteeducationandinclusivegrowthinitiativesincommunitiesaroundus. traded, andwehaveasoundtrackrecordofgrowthprofitability.Wearecommittedtodevelopingsustainablesociety and We employover13,500peopleacross38locationsinNorthAmerica,Europe,andtheAsia-Pacificregion.Ourstockispublicly sustained withsomeoftheleadingnamesintheseindustries. goals, culture,andcorevaluesofourclients.Thisreflectsinthedeep,long-standingrelationshipswehavedeveloped gas, communications,utilities,geospatial,semiconductorandmedicaltechnology.Wealigncloselywiththebusinessneeds, Our industryfocusincludesaerospace,defense,railtransportation,off-highway&industrial,powergeneration,mining,oil We callitDesigningTomorrowTogether. transformation, andanalytics.Wecollaboratewithourclientstohelpthemachievemoretogethershapeabetterfuture. Cyient isanacknowledgedleaderinengineeringdesignservices,design-ledmanufacturing,networksandoperations,data What isthecompany'sareaofoperations? 2014 thecompanychangeditsnametoCyientLimited. Companies Act,1956.TheCompanywasconvertedintoaPublicLimitedcompanyvideresolutiondated21April1995.InMay The companywasincorporatedasInfotechEnterprisesLimited-aPrivateonAugust28th,1991underthe When wasthecompanyfounded? Shareholder Handbook What aretheQualityObjectivesofcompany? To deliverinnovativesolutionsthatdelightcustomersthroughdeploymentofrobustprocesses. What istheQualityPolicyofcompany? Respect, SincerityandTransparency. In ourrelationshipswithcustomers,stakeholders,andassociates,weareguidedbyValuesFIRST-Fairness,Integrity, What arethevaluesofcompany? unique approachofworkingwithyoutoimproveyourbusinessandthelivescustomers. Designing TomorrowTogether.Thisisourvisionandthebasisofbrandpromise.Threesimplewordsthatdescribe What istheVisionStatementofcompany? issue wasleadmanagedbyIndustrialDevelopmentBankofIndia(IDBI),Madras.Theoversubscribed1.56times. Continuous processimprovementandachieveoperationalexcellence. Deliver solutions/servicesbasedoncuttingedgetools,technologies andmethodologies. Attract, trainandretaintalentedprofessionalsthroughactive employeeengagement. Delight customersthroughdeliveryexcellence. ` 10eachforcashatapremiumof ` 10pershare.The 197 26 Annual Report 2015-16 cyient.com On17March2016theBoardofDirectorsCompanydeclaredandpaid2 ^ 2015-16 (BSE: 532175). The company'sequitysharesare listedinIndiaontheNationalStockExchange(NSE:CYIENT) andtheBombayStockExchange In whichstockexchangesare thecompany’sshareslistedandwhatarecodes? investors w.e.f.August28,2000. Exchange BoardofIndiahasissueddirectivesthattradinginthe scripoftheCompanywouldbeincompulsorydematformbyall Transfer ofsharesinelectronicformareeffectedthrough your depositoryparticipant.PleasenotethattheSecuritiesand www.karvycomputershare.com [email protected];[email protected] : : +91-40-67161562 Website : Email Tel 1:1 Gachibowli, FinancialDistrict,Nanakramguda,Hyderabad- 500 032. Plot No.KarvySeleniumTowerB,31-32, Unit: CyientLimited Karvy ComputersharePrivateLimited 1:2 Registrars/the Company- To transfersharesinphysicalformandgeneralcorrespondenceregardingshares,shareholdersmaywritetotheCompany's How doesaShareholdergoabouttransferinghisshares/havingrelatedcorrespondence? 1:1 further details,investorsmaycontacttheR&TAgentsofCompany. Yes. NominationfacilityisavailabletotheShareholders.Shareholdersareadvisedmakeuseofnominationfacility. For Is nominationfacilityavailabletotheshareholders? 1: No. ofShareholders Year ended31March What isthenumberofshareholdersincompanylastfiveyears? 2012 1: 2012 2011 15October2015theBoard ofDirectorstheCompanydeclaredandpaid1 *On 1994-95 7 :5 Dividend (%) Year What istheDividendHistoryofCompanyforlastfiveyears? ratio issue Bonus Year What isthehistoryofBonusissueSharesatCompany? Statutory Auditors:DeloitteHaskins&Sells Internal Auditors:Ernst&YoungLLP Who arethecompany’sauditors? The CompanyfollowsafinancialyearthatbeginsonApril1andendsMarch31. What isthecompany'sfinancialyear? Infocity, Madhapur,Hyderabad-500081,Telangana Plot No.11,SoftwareUnitsLayout, 4th Floor,'A'Wing The RegisteredOfficeofthecompanyislocatedat What istheaddressofcompany'sregisteredoffice? 5 5 5 0 0 0 0 0 0%6%80% 60% 100% 60% 60% 40% 50% 40% 25% 25% 25% Itrm Fnl Itrm Fnl Itrm Fnl Itrm Fnl (1 (Final) (Interim) (Final) (Interim) (Final) (Interim) (Final) (Interim) 0321 0421 0521 06 2016^ 2016* 2015 2015 2014 2014 2013 2013 959 969 020 060 2010-11 2006-07 2002-03 1996-97 1995-96 17,756 2016 5089509971,2 11,038 11,723 9,977 9,520 15,028 0521 0321 2011 2012 2013 2014 2015 nd st interimdividendof80%forthefinancialyear2015-16. interimdividendof60%forthefinancialyear st nei)(2 Interim) nd Interim) 198 26 Annual Report 2015-16 cyient.com issues ofstorageandrisklosspapercertificatesbutalso ensureautomaticcreditingofdividendstoyourbankaccount. Also, youmightconsiderdematerializingyourholdingsthrough aDepositoryParticipant.Thiswouldnotonlyeliminatethe bank accountofyourchoice.Toavailthisfacility,give requesttoourR&Tagentinwriting. To avoidthisprobleminthefuture,youcanuseECSfacility inwhichthedividendamountisautomaticallycreditedto case ofdematerializedholdings.Afterverification,theywillissue afreshinstrument. Please writetoourR&TAgent,withdetailsoffolionumbers (in thecaseofphysicalholdings)orDPIDandClientint If dividendchequeislost/wasneverreceived/hasexpired,howtogetafreshre-issued? for aconfirmationthattheirrecordsreflectthenewaddress. In thecaseofdematerializedholdings,pleasewritetoyourDepositoryParticipant(DP)intimatingthemchangeand ask change inourrecords. shares youowntoourR&Tagents.Anacknowledgementwillbesentyournewaddressconfirmingtheupdationof the For physicalholdings,pleasesendaletter,dulysignedbythefirstholder,statingnewaddressandfolionumbersof the How doesashareholderrecordchangeintheaddress? The Companydoesnotacceptfixeddeposits. Does thecompanyacceptfixeddepositsfrompublic? exchanges andappropriateadvertisementsarealsoissuedinthenewspapers. Information aboutthecompanyisavailableonitswebsite.Further,allinformationthatmaterialinnaturenotifiedtos How canashareholderaccessinformationaboutthecompany? that providesbrokerageservicesattheBSEorNSE. The company'ssharescanbepurchasedintheopenmarketIndiathrougheitherastockbrokeroranyfinancialinstitution How doesapersonbuythecompany'sshares? details ofthedate,timeandvenue,alongsideAnnualReport. page ofourwebsite,closertotheevent.Ifyouareashareholder,willreceiveformalnoticemeeting,containing The AnnualGeneralMeeting(AGM)istypicallyheldinmid-July.formalannouncementwillbepublishedontheInvestors When istheAGMheld? earnings release.Duringthisperiod,thecompany'smanagementrefrainsfromcommunicatingwithmarketparticipants. The quietperiodatthecompanybegins14daysbeforedateofboardmeetingandlastsuntildayafterquarter's Does thecompanyhaveaquietperiod?Whenisthat? and availableontheBSENSEwebsites. on ourwebsite.Thesedetailsarealsonotifiedtothestockexchangessamedayofannouncementdividend You canfindtherecorddate/paymentdateforlastannounceddividendinAnnouncementssectionofInvestorpage What istherecorddateandpaymentofinterim/finaldividend? As ofMarch31,2016,thecompanyhad112,483,377sharesoutstanding. How manysharesareoutstanding? Infotech Enterprises'ISINcodeisINE136B01020 What isthecompany'sISINcode? tock he 199 26 Annual Report 2015-16 cyient.com Share PriceMovements E-mail: [email protected] Fax: +91-4066624368 Tel: +91-4067641322 Hyderabad -500081,India Infocity, Madhapur 4th Floor,‘A’Wing,PlotNo:11,SoftwareUnitsLayout, Cyient Limited Company Secretary Mr. SudheendhraPutty Shareholders Queriesmaybeaddressedto: potential futurestockpriceperformance. Company cautionsthatthestockpriceperformanceshown inthegraphsaboveshouldnotbetakentoindicativeof 10,000 10,500 12,000 11,000 11,500 9,000 9,500 Share Price (In INR)
1-Apr 15 100 200 300 400 500 600 700 0 1-Apr 15 1-May 15 1-May 15 Stock PriceMovements-CyientClosing(BSE)VsBSEITIndex
1-June 15 Close Price Stock PriceMovements-CyientClosing(BSE)
Date 1-June 15 S TIndex BSE IT 1-July 15 1-July 15 Vs BSEITIndex01/04/14to31/03/15 Share PriceMovementsontheNSE Share PricemovementontheNSE from 01/04/15to31/03/16
1-Aug 15 1-Aug 15 from 01/04/2015to31/03/2016 01/04/2015 to31/03/2016 1-Sept 15 1-Sept 15
Date 1-Oct 15 Date 1-Oct 15 E-mail: Ajay.Aggarwal@ Fax: +91-4066624368 Tel: +91-4023124004 Hyderabad -500081,India Infocity, Madhapur 4th Floor,‘A’Wing,PlotNo:11, SoftwareUnitsLayout, Cyient Chief FinancialOfficer Mr. AjayAggarwal may besentto: Queries relatingtofinancialstatementsoftheCompany 1-Nov 15 1-Nov 15 Limited 1-Dec 15 1-Dec 15
oa Traded Quantity Total 1-Jan 16
cyient 1-Jan 16 1-Feb 16 .com
Cyient 1-Feb 16 1-Mar 16
1-Mar 16 0 200000 400000 600000 800000 1000000 1200000 1400000 0 100 200 300 400 500 600 700
Volume 200 26 Annual Report 2015-16 cyient.com Route MaptoAGMVenue
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ICICI Bank
Microsoft
ISB Wipro ISB Road
Old Mumbai Highway
IDBI IIIT Circle BANK
DLF
ORR
Gachibowli Miyapur Road
Gachibowli X Roads 201 26 Annual Report 2015-16 cyient.com Tel: +82237824936 Seoul 100-768 136 Sejong-daero, Jung-gu 21 FSeoulFinance Centre Cyient Ltd. South Korea 188 Quay Street, Auckland Level 27,PWCTowers Cyient Ltd. (Virtual Offi New Zealand Tel: +61894298812 West Perth, WA 6005 45 Ventnor Avenue Cyient Ltd. Tel: +61288964338 NSW -2153 Baulkham Hills, Sydney 4 Columbia Ct Level 5/Nexus Norwest Cyient Ltd. Tel: +61386054815 Melbourne, Victoria 3000 Level 1,350Collins Street Cyient Ltd. Brisbane, Queensland4000 Level 7,320AdelaideStreet Cyient Ltd. Australia APAC Tel: +914067641000 Telangana, India Hyderabad -500081 Infocity, Madhapur Software UnitsLayout Plot No. 11, Cyient Ltd. Global Headquarters Global Presence ce) Tel: +6563372472 Singapore 179094 High Street Centre #19-04/05 1 NorthBridgeRoad Cyient Ltd. Singapore Tel: +63-2817-9704 Makati City, 1227 Salcedo Village Tordesillas Street Corner 326 DeLaCosta Street Le Metropole Building Ground Floor Cyient Ltd. Philippines Tel: +60322987321 59200 Kuala Lumpur Lingkaran Syed Putra Mid Valley City The Gardens South Tower Level 28 Cyient Ltd. Malaysia Tel: +81335279825 Tokyo 103-0027 Chuo-Ku, 3-14-5, Nihonbashi Sho-Building 6F Cyient K.K. Japan Tel: +88636685522 County 30264 Zhubei City Hsinchu St. No. 262,Zhuangjing6th Cyient Ltd. Taiwan 417 56Göteborg Lindholmspiren 3B Cyient AB Sweden Tel: +442074040640 London WC1V6RL 52-54 HighHolborn High HolbornHouse Cyient Europe Ltd. Tel: +441454809700 BS20 7AW Portishead, Bristol Marine View Offi 43/44 Martingale Way Cyient Europe Ltd. UK Tel: +31765722966 Breda 4817 ZPBreda Oost, Minervum 7491 Cyient BV Netherlands Tel: +41313825082 3008 Bern Güterstrasse 22 Franzelli C/o AAAServicesMeier + Cyient Schweiz GmbH Switzerland EMEA Tel: +861053796130 Chaoyang district,Beijing No.16 Chaowai Street, China Life Tower, Room 90S, 5/F, (Beijing) Limited Cyient Engineering China ce Park 202 26 Annual Report 2015-16 cyient.com Tel: +971506867045 P.O. Box 54713,Dubai (DAFZA) Authority Dubai AirportFree Zone Cyient Ltd. UAE Pretoria -0186 Kilnerpark 255 AnnaWilsonStreet Cyient South Africa Tel: +420277008201 Holesovice -17000 Prague 7 Jankovcova 1603/47A Cyient SRO Czech Republic Tel: +33130611673 Saint-Germain-en-Laye 78100 18, RueSaintVincent Cyient GmbHFrance France Tel: +49715294520 71229 Leonberg Mollenbachstr. 37 Cyient GmbH Germany Tel: +18605285430 East Hartford CT 06108 Suite 102 330 Roberts Street Cyient, Inc. Tel: +13096975975 Peoria IL61615 Street 8001 NorthUniversity Cyient, Inc. United States ofAmerica North America Tel: +918028522341 Bangalore -560100 Hosur Road Phase 1, Electronics City Plot No- 110A&110B Infotech ITPark Cyient Ltd. India Tel: +514489-0370 H4T 1V6 St. Laurent, Québec Suite 500 7575 Trans-Canada Hwy. Cyient CanadaInc. Canada Tel: +18664763836 Reston, VA 20170 607 HerndonPkwy Cyient, Inc. Erie PA 16501 1001 State St., Suite 602 Cyient, Inc. Tel: +18172689501 Arlington TX76011 Expressway 1401 NolanRyan Cyient, Inc. Tel: +19093213760 San DimasCA 91773 510 E.Foothill #201 Cyient, Inc. Tel: +18702361080 Paragould AR72450 1707 Linwood Drive Cyient, Inc. Andhra Pradesh Rushikonda, Vizag Madhurawada(V) Hill No:3, Plot No: 14,SEZUnit Survey No:410 Cyient Ltd. Tel: +911204161000 Noida -201307 B-11, Sector 63 Cyient Ltd. Andhra Pradesh Kakinada -533005 Kakinada Rural Mandal IT SEZ,Sarpavaram Plot No:1,2,3,4&5A Cyient Ltd. Tel: +914067043434 Telangana Hyderabad –500039 IDA Uppal, Plot No. 6,Survey No. 1 Block No. 1 Center NSL SEZArena Town Cyient Ltd. Tel: +914067489100 Telangana Hyderabad -500032 Gachibowli Nanakramguda, Plot No. 2,ITPark Cyient Ltd. Tel: +918067727200 Bangalore -560103 Road, Bellandur Sarjapur Marthahalli Ring 1st Floor, WingB, Block9, Pritech Park SEZ, Cyient Ltd. 203
26 Annual Report 2015-16 cyient.com Electronic Clearing Services (ECS) MandateFormat Electronic ClearingServices(ECS) $ submitted toyourDepositoryParticipant. Note: Client Id DP. ID For sharesheldinelectronicform $ Folio Regd. For sharesheldinphysicalform Please TICK and inENGLISHONLY. FORM FORELECTRONICCLEARINGSERVICESPAYMENTOFDIVIDENDpleasefill-intheinformationinCAPITALLETTERS Dear Sir, Gachibowli, FinancialDistrict,Nanakramguda,Hyderabad-500032. Plot No.KarvySeleniumTowerB,31-32, Unit :CyientLimited Karvy ComputershareLimited To Branch Code Branch Name Bank Name First Holder: Name of ae ______(SignatureofFirstholder) ______Date: ute netk oifr theCompanyanychangeinmyBank/branchandaccount number. I furtherundertaketoinform held responsible.IagreetoavailtheECSfacilityprovidedby RBI, asandwhenimplementedbyRBI/Company. for reasonsofincompletenessorincorrectnessinformation suppliedasabove,KarvyComputershareLimited,willnotbe I herebydeclarethattheparticularsgivenabovearecorrectand complete.Ifanytransactionisdelayedornoteffectedatal Account type Mandate Effective dateofthis in thechequebook) A/c No.(asappearing No. Onde-materializationofexistingphysicalshares,forwhichyouhaveavailedECSfacility,thisformneedstobere- 3 code number. copy ofablankchequeyourbankdulycancelledforensuringaccuracythebanksname,branchnameand (9 DigitCodeNumberappearingontheMICRbandofchequesuppliedbyBank)Pleaseattachaphoto awhereverapplicable. ______(Infotech EnterprisesLimited) aig Current Savings ECS Ref.No. ------For Office Use Only------Use Office ------For ______Cash Credit l 204 26 Annual Report 2015-16 cyient.com
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26 Annual Report 2015-16 cyient.com ! 1. Note: Number ofsharesheld:______Or DP/ClientIDNo.______Regd. FolioNumber: Signature ofproxy:______Signature ofshareholder:______(to befilledinifproxyattends) Name oftheproxy:______(in blockletters) Name oftheattendingshareholder:______Centre, PlotNo.2,ITPark,Manikonda,Hyderabad-500032,India,or/anyadjournmentthereof. presence attheAnnualGeneralMeetingofCompanyheldonMonday,29thdayAugust,20163:00p.m.L&D I herebystatethatamaregisteredshareholder/proxyfortheshareholderofCompany.recordmy ! .Shareholdersareinformedthatnoduplicate attendanceslipswillbeissuedatthevenueofmeeting. 2. Regd. Office:4 come tothemeetingandhandthemoveratgate,affixing theirsignatureonthem. Shareholders/proxy holdersarerequestedtobringtheAttendance Slipswiththemdulycompletedwhenthey th Floor,AWing,PlotNo.11,SoftwareUnitsLayout,Infocity,Madhapur,Hyderabad500081 Website :www.cyient.com,Email:[email protected] 25 Tel: 914067641322Fax:66624368 th Cyient Limited (To bepresentedattheentrance) ANNUALGENERALMEETING CIN :L72200TG1991PLC013134 ATTENDANCE SLIP 206 26 Annual Report 2015-16 cyient.com
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26 Annual Report 2015-16 cyient.com !NOTE: Signature ofShareholder...... ofProxyholder(s)...... Signed this...... dayof...... 2016 ToratifytheappointmentofM/s.DeloitteHaskins&Sells,CharteredAccountants, asStatutoryAuditors. 5. ToappointaDirectorinplaceofMr. KrishnaBodanapu(DIN05301037),whoretiresbyrotationandoffershimselffor 4. ToappointaDirectorinplaceofMr.B.V.R.MohanReddy,(DIN00058215), whoretiresbyrotationandoffershimselffor 3. Toconfirm the firstandsecondinterimdividendspaidonequitysharesforduringfinancialyear2015-16. 2. Toreceive,consider andadopt,theauditedstatementsofprofitlossforfinancialyearendedon31March2016 1. Ordinary Business: Hyderabad -500032,anyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow: company atMonday,29August20163.00p.m.L&DCentre(company'sCampus),PlotNo.2,ITPark,Manikonda, As my/ourproxytoattendandvote(onapoll)forme/usonbehalfatthe25thAnnualGeneralMeetingof the Name:...... Email id:...... 3. Name:...... Email id:...... 2. Folio No./ Name:...... Email id:...... 1. ofCyientLimited,herebyappoint I/We beingthemember(s)of...... Shares E-mail id:...... Name andAddressoftheShareholder(s)...... ! re-appointment. re-appointment. the balancesheetasatthatdate(standaloneandconsolidated)reportsofboarddirectorsauditorsthereon. Signature :...... Address :...... Or failinghim Signature :...... Address :...... Or failinghim Signature :...... Address :...... The proxyformmustbedeposited attheRegisteredOfficeofCompanynotlessthan48 hoursbeforethemeeting. Regd. Office:4 (Pursuant toSection105(6)oftheCompaniesAct,2013andRule19(3) th Floor,AWing,PlotNo.11,SoftwareUnitsLayout,Infocity,Madhapur,Hyderabad500081 Website :www.cyient.com,Email:[email protected] (Management andAdministration)Rules,2014) Tel: 914067641322Fax:66624368 Cyient Limited CIN :L72200TG1991PLC013134 PROXY FORM Dpid &Clientid:...... Revenue Stamp Affix 208 26 Annual Report 2015-16 cyient.com
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cyient.com
th Global Headquarters 25 Annual Report Cyient Limited, Plot No. 11, Software Units Layout, Infocity, Madhapur, Hyderabad - 500081, India | T: +91 40 6764 1000 2015-16