BOARD OF DIRECTORS Mr. Ashwani Lal : Whole Time Director Mr. Krishna Chandra Reddy : Whole Time Director Ms. Lydia Gayle Brown : Director Company Secretary Mr. Parveen Jain Chief Financial Officer Mr. Jitendra Grover Statutory Auditors T R Chadha & Co. LLP CONTENTS 1. Board’s Report .........................................................................................1-26 2. Auditor’s Report & Standalone Financial Statements as per Ind AS . .27-76 3. Auditor’s Report & Consolidated Financial Statements as per Ind AS ............................................77-126 Aricent Technologies (Holdings) Limited Annual Report 2019-20 Board’s Report Dear Members, with a portfolio of high-profile clients, extensive sector expertise and in-depth understanding of industrial business processes and The Board of Directors hereby submits the 14th Annual Report operational technologies. of Aricent Technologies (Holdings) Limited (referred to herein as the “Company”) along with the audited financial statements of the Capgemini offers its clients an unmatched and unique value Company for the financial year ended March 31, 2020. proposition to address their transformation and innovation needs and works alongside its clients, from initial concept stage through Financial Highlights industrialization, to invent the products and services of tomorrow and The highlights of the Company’s standalone financial results for the boost the value of clients’ organization. Capgemini has been working financial year ended March 31, 2020 alongwith the corresponding with major players in many sectors like Automotive, Aeronautics, figures for the previous financial year are as follows: Space, Defence & Naval, Communications, Semiconductor & Electronics, Software & Internet, etc. and utilizes its global network (in INR million) of world-class experts, a cost-cutting industrial supply chain, and its Particulars Year ended Year ended customized tools to deliver clients business goals in an ever more March 31, 2020 March 31, 2019 challenging environment. Revenue from operations 24,544 22,764 The acquisition of Aricent in 2018 by the Altran group and the subsequent acquisition of Altran group, including the Company, Other Income 865 609 enabled Capgemini to strengthen its competencies and solutions in Total Income 25,409 23,373 digital, based on intellectual property developed by Aricent, extended over time and benefiting from a strategic positioning on emerging Operating expenditure 20,332 19,191 technologies such as artificial intelligence, cognitive systems and the Profit before Interest, 5,077 4,182 Internet of Things (IoT). The Company offers end to end capabilities Depreciation and Taxes right from design to software and hardware product development and testing to product support services offering Deployment and TAC Interest 193 10 services. Depreciation and Amortization 1,397 702 The Company provides outsourced product development, product Profit before Tax 3,487 3,470 support services and licensable software frameworks and solutions. The Company’s service offerings provide a comprehensive product Provision for Income Tax (2,937) 1,425 life-cycle services for communications networks, as well as Prior year Tax adjustment (603) (1) connected devices, applications and mobile services. In addition, the Company has an unrivalled portfolio of unique software frameworks Profit after Tax 7,027 2,046 that accelerates the product development process thereby creating significant time to market advantage for its clients. Industrialized During the FY 2019-20, your Company clocked a revenue of Rs. GlobalShore® model of Altran, is strengthened by the acquisition of 24,544 million on standalone basis, thereby witnessing an increase the Company by Altran. Industrialized GlobalShore® relies on the of around 7.82% over the previous years’ revenue. The Profit before Company’s ER&D teams located in Global Engineering Centers Interest, Depreciation & Taxes for FY 2019-20 was Rs. 5,077 million located in India. The Company offers competitive ER&D services, registering an increase of 21.40% over Rs. 4,182 million recorded providing businesses with diversified and global expertise while during the previous year. meeting the highest quality standards. This solution offers great Dividend flexibility and is adaptable to the specific needs, level of maturity and geographical footprint of each client. No Dividend has been recommended by the Directors for the financial year ended March 31, 2020. Change in the nature of business Deposits During the year under review, there was no change in the nature of the Company’s business. Your Company has never accepted any deposits from the Public in terms of Section 73 and 76 of the Companies Act, 2013 (the “Act”), Quality read with the relevant applicable Rules and as such, no amount on During the year under review, the Company has upgraded TL9000 account of principal or interest on deposits was outstanding as on certification to R6.1/R 5.5 at the corporate level and plans to March 31, 2020. complete AS 9100 Certification for Aerospace BU in the coming Share Capital year. The Company also has the distinction of being one among Top 5 companies globally to get assessed to CMMI 2.0 Dev/Services During the year under review, there was no change in the Share multimodal assessment in December 2019. Capital of the Company. The Company is committed to ensure highest levels of quality by Business Review investing in tools, ensuring timely reviews and Institutionalised robust Capgemini SE acquired Altran Technologies SAS (formerly known early warning mechanism. To strengthen Project Management as Altran Technologies SA) (the former Ultimate Parent company practices and measurement system, the Company had rolled out of your Company) at a global level in the first half of the calendar tools like QTrack & Spirateam and continued to have continuously year 2020. Pursuant to the said acquisition, all the Altran group focused on enhancing these tools to meet changing business companies, including your Company are now a part of the Capgemini demands. The Company also strengthened the client interaction/ group. Your Company is now a step-down subsidiary of Capgemini feedback mechanism by Participating in Client reviews for all its SE, a listed entity formed and registered under the laws of France. critical customers which has helped it to reflect holistic view to management. To enhance project performance and save effort, Lean/ Following the acquisition of Altran group, Capgemini now ranks as the Kanban methodologies were rolled out and have been successfully undisputed world leader in Engineering and R&D services (“ER&D”), deployed across various business units. 1 To meet the time to market demands of the customer, Agile practices Transfer to General Reserve have been deployed and coverage under Agile methodology has During the year under review, no amount has been transferred to been improved. We implemented a new DevAgility Initiative to General Reserve of the Company. ensure standardisation and mandatory usage of core tools across the organisation resulting in excellent results. All these initiatives Conservation of Energy, Research and Development, have helped the Company exceed its Customer Satisfaction Index Technology Absorption, Foreign Exchange Earnings and Outgo and Net Promoter Scores (NPS) ratings of last fiscal. Information in accordance with Section 134(3)(m) of the Act, read Directors and Key Managerial Personnel with Rule 8(3) of the Companies (Accounts) Rules, 2014 is set out in ‘Annexure B’ to this Report. The management of your Company has always thrived to adhere to the statutory requirements not only in letter but also in spirit. Your Company Particulars of Employees recognizes the importance of diversity and independence and thus has The particulars of employees as required by the Companies an optimum combination of independent, non-executive and executive (Appointment and Remuneration of Managerial Personnel) directors to separate its functions of governance and management. Amendment Rules, 2016 are set out in ‘Annexure C’ to this Report. During the year under review, there was no change in the constitution Extract of Annual Return of the Board of the Company. However, after the closure of financial year, the terms of Mr. Vinay Mittal and Ms. Nipun Gupta Jain, The extract of the Annual Return in Form MGT 9, as per the Independent Directors of the Company came to an end w.e.f. April provisions of Section 92(3) of the Act, is attached as ‘Annexure D’ 10, 2020 and June 22, 2020 respectively and the Board underwent to this Report. certain changes consequently. The Board placed on record, its Directors’ Responsibility Statement appreciation for the valuable contributions made by them during their long association with the Company towards its growth.The Company Pursuant to Section 134 of the Act, the Board of Directors, to the best is in the process of appointing new Directors on its Board which of their knowledge and belief, state that: shall be subject to the approval of the shareholders in the immediate (a) in the preparation of the annual accounts, the applicable next Annual General Meeting (“AGM”) of the Company after their accounting standards have been followed and that no material appointment. departures have been made from the same; In accordance with Section 152 of the Act, Ms. Lydia Gayle Brown, (b) they have selected such accounting policies and applied them Non-Executive Director, will retire by rotation at the ensuing AGM consistently and made judgments and estimates that are of the Company, and being eligible, has offered her candidature for reasonable and prudent, so as to give a true and fair view of the re-appointment.The proposal of her re-appointment is included in the state of affairs of the Company at the end of the financial year Notice of the AGM. and of the profit or loss of the Company for that period; There are many functional and business heads who are key (c) they have taken proper and sufficient care for the maintenance of managerial personnel, however, for the purpose of the Companies adequate accounting records in accordance with the provisions Act, 2013 Mr. Ashwani Lal, Mr.