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KPIT Technologies Ltd.

BSE: 542651 Sector: IT
BSE 00:00 | 03 Feb 776.25 -11.25






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OPEN 787.80
VOLUME 151947
52-Week high 812.80
52-Week low 440.00
P/E 72.89
Mkt Cap.(Rs cr) 21,280
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 787.80
CLOSE 787.50
VOLUME 151947
52-Week high 812.80
52-Week low 440.00
P/E 72.89
Mkt Cap.(Rs cr) 21,280
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KPIT Technologies Ltd. (KPITTECH) - Director Report

Company director report

Dear Members

The Directors are pleased to present the Fifth Annual Report togetherwith the Audited Accounts of the Company for the Financial Year ended March 31 2022.

Performance of the Company

(In million)

Particulars Standalone 2021-22 Consolidated 2021-22
Revenue from operations 159.42 11809.88 328.35 24323.86
Profit before Tax (PBT) 37.33 2765.72 46.51 3445.44
Profit after Tax (PAT) 32.14 2381.20 37.29 2762.43

Result of Operations

During the year under review the total revenues from operations(consolidated) increased to f 24323.86 million (previous year f 20357.41 million) agrowth of over 19.5% of the previous year. Earnings before interest tax depreciation andamortization was f 4385.45 million on consolidated basis with growth of 41.4% overprevious year. Net profit after tax (consolidated) increased by 87.79% to f 2762.43million (previous year f 1471.03 million).

In US Dollar terms revenues from operations for the year onconsolidated basis was $ 328.35 million as against $ 274.77 million during the previousyear a growth of 19.5%. Average realization rate was f 74.08 per US Dollar.

Standalone sales for the financial year 2021-22 grew by 47.10% to reachf 11809.88 (previous year f 8028.48 million). Net profit after tax increased by 154.60%to f 2381.20 (previous year f 935.26 million).


During the year the Board of Directors of the Company declared andpaid Interim Dividend of f 1.25/- per equity share of face value of f 10/- each (at12.50%). The Directors are also pleased to recommend a final dividend of f 1.85/- perequity share of face value of f 10/- each (at 18.50%) on the paid-up equity share capitalof the Company for the year under review. The total payout for the final dividend willamount to f 849.84 million including dividend distribution tax.

The Company had amended its Dividend Distribution Policy by increasingthe Annual Dividend Payout Ratio up to 35% in coming two to three years. The said DividendDistribution Policy is uploaded on the website of the Company (

Awards & Recognition

From Clients

• KPIT won the ‘Indirect Souring Partner' Supplierof the year award from one of its long-standing Tier-1 client.

• A European OEM in the premium car segment recognized KPIT as a‘Software Integration Partner for AUTOSAR'.

• Leading Commercial Vehicle OEM recognized KPIT as a trusted‘Partner for Autonomous Simulation Technology' in its journey towardsAutonomous Driving.

From Partners and Industry Forums

• KPIT won the ‘Service Delivery Excellence of the Year2021' Award by NASSCOM for two marquee engagements with leaders in Mobility inthe areas of Electrification and Autonomous Driving.

- KPIT demonstrated service delivery excellence as a softwaretechnology partner to an Automotive OEM for Autonomous Driving.

This engagement powered OEM to launch the world's first Level 3autonomous vehicle. Scale multiple SW components partnerships powered this delivery thatwill extend up to 2030 on multiple vehicle programs.

- KPIT demonstrated service delivery excellence as a Software Tier-1for the Charging Control Unit (CCU) program of a leading German OEM. In an exclusivearrangement the OEM Tier-1 & KPIT have a triparty arrangement to deliver softwarevariants for 11 carlines through a unique menu- based software delivery on-demand modelresulting in significant software re-use & cost benefits.

• Frost & Sullivan selected KPIT for the prestigious 2021Global Over-the-air (OTA) and Cloud Platform Technology Innovation Leadership Award.

• KPIT won the ‘Transformation Initiative in TreasuryManagement' Award in the 4th edition of the Financial Leadership Awards organizedby Kamikaze B2B Media.

• KPIT is recognized as a Leader in the Everest Group PEAKMatrix Assessment for Autonomous Connected Electric and Shared (ACES) MobilityAutomotive Engineering Services 2021.

KPIT achieved re-certification of Automotive SPICEOrganizational Process Maturity Level 5 for its Pune and Bengaluru campuses.

• KSAR Classic - KPIT's flagship AUTOSAR stack achievedASIL-D Safety Certification.

• KPIT won the 1st prize for Workplace Excellence under thecategory of ‘Sustainability' at the 6th edition of Workplace ExcellenceAwards by iNFRHA Pune Chapter.

Quality Productivity and Innovation

Delivering Zero Defects is one of our key strategies to achieve ourMission of becoming a leading software integration partner in mobility. To achieve thisobjective of ensuring zero defect delivery to our customers we had designed acomprehensive quality framework covering key initiatives in the areas of People Processand Technology with a focus on improving performance at Project/Program level Practicelevel and Unit level. We took up key initiatives for the year from this framework put adetailed plan for each defined processes keeping sustenance and scalability in mindimproved it through pilots and then deployed across all projects through rigorous trackingand support. Initiatives that were deployed during the previous year were sustainedthrough strong governance.

Katapult framework that was developed and deployed for code qualityimprovement was enhanced to include test quality performance and deployed across all theprojects. This has resulted in significant benefits to customer in terms of achievingproduct quality on a continuous basis.

Competency and Knowledge Management initiative that was deployedacross all projects during previous year was enhanced with a complete automated integratedsystem. The system will aid with a heatmap on skill gaps at project practice individuallevel and provides a mechanism to plan skill gap ramp down and track competencyimprovement. Migration to new system is in progress across all projects. This helps inimproving competency at individual level project level and practice level therebyresulting better quality output to our customers.

To improve on quantitative management the measurement system wasenhanced with refinement to ‘First Time Right' and ‘Zero DefectDelivery' KPIs for better insight. Tools were enhanced to address this change anddeployment is in progress across all projects. The focus is on achieving First Time Rightmindset which in turn will result in improving Zero Defect Delivery to our Customers.Project Management and Program Management trainings have been enhanced to drive thismindset.

For productivity improvement tools and systems were put in place tomeasure and track productivity at individual level and at project level. To becomecompetitive on tools cost and improve utilisation standardisation was done on engineeringtools at practice level.

All these initiatives helped us in driving zero defect delivery andresulted in exceeding the goal on CSAT rating from customer with a consistent highercoverage in all quarters during the year. This also resulted in downward trend onhigh-risk projects.

To sustain quality with our scalability there is more dependence onour processes tools and systems. Continuous improvement is our focus to achieveefficiency in our processes and to keep pace with new trends. These improvements comethrough learnings in the projects feedback from customers and ideas from the employees.During the year we took up many such improvements upgraded our processes and deployedacross projects. The focus is on keeping the processes efficient and lean.

Our commitment to quality is improvised by our consistent endeavour incertifying ourselves to the best standards in the Industry. We continue to sharpen ourquality focus through internal initiatives and by certifying against internationalstandards. We underwent recertification assessment on Automotive SPICE and achievedOrganisational Process Maturity Level 5 thereby continuing to hold this certificationfrom 2007. We completed recertification audit on ISO9001. We achieved ASIL D for AUTOSARClassis product. We continue to maintain our certification on Business ContinuityManagement (ISO 22301) and Information Security Management (ISO/IEC 27001).

Share Capital

The issued subscribed and paid-up capital of the Company as on March31 2022 is Rs 2741.43 million consisting of 27414380 8 equity shares of Rs 10/- each.

Institutional Shareholding

As on March 31 2022 the total institutional shareholding in theCompany was 28.31% to the total share capital.

ICRA Ratings

ICRA has assigned the (ICRA) A1+ as short-term rating and (ICRA) AAwith the "Stable" outlook as the Longterm rating.

Information about the Subsidiary & Associate Companies

As on March 31 2022 the Company had fourteen subsidiaries and threeassociate companies.

In accordance with Section 129(3) of the Companies Act 2013(hereinafter referred to as "the Act") the Company has prepared consolidatedfinancial statements of the Company and all its subsidiary & associate companieswhich forms a part of the Annual Report. A statement containing salient features of thefinancial statements of the subsidiary Companies in Form AOC-1 is annexed to this Reportas "Annexure 1".

In accordance with Section 136(1) of the Act the Annual Report of theCompany containing the standalone and the consolidated financial statements and all otherdocuments required to be attached thereto have been placed on the website of the

Further a report on the highlights of performance of subsidiaries andtheir contribution to the overall performance of the Company has also been placed on thewebsite of the Company. Ministry of Corporate Affairs (MCA) vide General Circular nos.14/2020 dated April 8 2020 17/2020 dated April 13 2020 and 02/2021 dated January 132021 provided certain relaxations for companies including conducting ExtraordinaryGeneral Meeting (EGM) through Video Conferencing (VC) or through other audio - visualmeans (OAVM) for passing of special and ordinary resolution by Company on account ofthreat posed by COVID-19. Further MCA vide General Circular 2/2022 dated May 5 2022& Securities and Exchange Board of India vide circular SEBI/HO/CFD/ CMD1/CIR/P/2020/79dated May 12 2020 SEBI/HO/ CFD/CMD2/CIR/P/2021/11 dated January 15 2021 andSEBI/HO/CFD/CMD2/CIR/P/2022/62 dated May 13 2022 has extended these relaxations toAnnual General Meeting of companies to be conducted during the calendar year 2022. Themembers interested in obtaining a soft copies of the audited annual accounts of theCompany and it's subsidiary companies may visit investor section on website of theCompany


In accordance with Section 152 of the Act Mr. S. B. (Ravi) Panditretires by rotation at the ensuing annual general meeting and being eligible offershimself for re-appointment. The Board recommends his re-appointment.

Mr. Anup Sable has been appointed as an Additional & ExecutiveDirector (Whole-time Director) with effect from December 22 2021 who shall hold officeupto the date of the ensuing annual general meeting. A resolution is being put up for theapproval of the shareholders at the ensuing annual general meeting for his appointment.

Mr. Chinmay Pandit has been appointed as an Additional & ExecutiveDirector (Whole-time Director) with effect from July 26 2022 who shall hold office uptothe date of the ensuing annual general meeting.

A resolution is being put up for the approval of the shareholders atthe ensuing annual general meeting for his appointment.

Ms. Bhavna Doshi and Prof. Rajiv Lal were appointed as an Additional& Independent Directors of the Company with effect from September 15 2021 andNovember 1 2021 respectively who shall hold office upto the date of the ensuing annualgeneral meeting. The resolutions are being put up for the approval of the shareholders atthe ensuing annual general meeting for their appointments.

Due to the urgent personal pressing engagements Ms. ShubhalakshmiPanse has resigned from the post of directorship of the Company with effect from June 172021. The Board places on record its appreciation for valuable services provided by Ms.Panse during her tenure.

Independence of the Board

The Board of Directors of the Company comprises of optimum number ofIndependent Directors. In the opinion of the Board the independent directors possessintegrity expertise and experience (including the proficiency). Based on theconfirmation/disclosures received from the Directors and on evaluation of therelationships disclosed the following Non-Executive Directors are Independent in terms ofRegulation 16(1) (b) of the Securities and Exchange Board of India (Listing Obligationsand Disclosure Requirements) Regulations 2015 and Section 149(6) of the Act:

1. Mr. Anant Talaulicar

2. Mr. B V R Subbu

3. Prof. Alberto Sangiovanni VincenteUi

4. Dr. Nickhil Jakatdar

5. Ms. Bhavna Doshi

6. Prof. Rajiv Lal

Key Managerial Personnel

The following persons have been designated as Key Managerial Personnelof the Company pursuant to Sections 2(51) and 203 of the Act read with the Rules framedthere under:

1. Mr. Kishor Patil - Chief Executive Officer (CEO) and ManagingDirector;

2. Ms. Priyamvada Hardikar - Chief Financial Officer;

3. Ms. Nida Deshpande - Company Secretary.

Board Meetings

Ten meetings of the Board of Directors were held during the year. Moredetails about the meetings are available in the Report on Corporate Governance whichforms a part of this Annual Report.

Committees of Board

The details regarding the Committees of the Board of Directors of theCompany are given in the report on Corporate Governance which forms a part of this AnnualReport.

Company's Policy on Directors' appointment and compensation

The Nomination and Remuneration Policy of the Company provides rolesand responsibilities of the Nomination and Remuneration (HR) Committee and the criteriafor evaluation of the Board and compensation of the Directors and senior management.Further as per the policy the said Committee shall identify potential candidates forbecoming members of the Board and determining the composition of the Board based on theneed and requirements of the Company from time to time to bring out diversity in the Boardand also identify persons to be recruited in the senior management of the Company andensure the Companies compensation packages and other human resource practices areeffective in maintaining a competent workforce and make recommendations relating thereto.Pursuant to the provisions of Section 134(3) (e) of the Act the said policy of theCompany on the appointment and compensation of Directors including criteria fordetermining qualifications positive attributes independence of a director and othermatters provided under Section 178(3) of the Act is available on Company's website atthe link: https://

Audit Committee Recommendations

During the year all the recommendations of the Audit Committee wereaccepted by the Board. The composition of the Audit Committee is as mentioned in theReport on Corporate Governance which forms a part of this Annual Report.

Corporate Social Responsibility

KPIT's Corporate Social Responsibility ("CSR") isaligned to have a stronger commitment towards the community. KPIT demonstrate itscommitment across all the regions of KPIT's global presence. It also aims to createlong-lasting impact across the focus areas of education environment and employeeengagement. KPIT firmly believe through technology and innovation KPIT can addsignificant values to the communities worldwide. The Company had constituted a CorporateSocial Responsibility (CSR) Committee and has framed the Policy on Corporate SocialResponsibility as per the provisions of section 135 of the Companies Act 2013 andCompanies (Corporate Social Responsibility Policy) Rules 2014. The CSR Policy includingannual action plan is available on Company's website at the link: The initiatives taken by the Company onCSR during the year as per the said rules has been annexed to this Report as"Annexure 5".

Vigil mechanism/whistle blower policy

The Company has established a vigil mechanism/ whistle blower policy asper Regulation 22 of the SEBI (LODR) Regulations 2015 for Directors and employees toreport their genuine concerns. The details of the same are explained in the Report onCorporate Governance. The Policy on Vigil Mechanism & whistle blower may be accessedon the Company's website at the link:


Pursuant to the provisions of Section 139(1) of the Act read with theCompanies (Audit and Auditors) Rules 2014 M/s. B S R & Co. LLP CharteredAccountants were appointed as the Statutory Auditors of the Company in the Annual GeneralMeeting held on August 29 2018 for a period of five years.

The Notes on financial statements referred to in the Auditors'Report are self-explanatory and do not call for any further comments. The report does notcontain any qualification reservation or adverse remark.

The Board of Directors of the Company appointed Dr. K. R. ChandratrePracticing Company Secretary as the Secretarial Auditor to conduct audit for the yearunder review. The Secretarial Auditor's report for the year under review is annexedto this Report as "Annexure 6". The report does not contain any qualificationreservation or adverse remark.

Internal Control Systems and Adequacy of Internal Financial Controls

The internal control systems of the Company are adequate consideringthe nature of its business size and complexity. The Statutory Auditors of the Companyhave expressed their opinion on adequacy of internal financial controls with reference tofinancial statements for the year under review and operating effectiveness of suchcontrols.

Corporate Governance

A separate section on Corporate Governance with a detailed compliancereport thereon forms a part of this Report. The Auditors' Certificate in respect ofcompliance with the provisions concerning Corporate Governance forms a part of thisAnnual Report as required under the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 (hereinafter referred to as"the SEBI (LODR) Regulations 2015").

Management Discussion and Analysis

A Management Discussion and Analysis Report giving detailed informationon operations performance and future outlook of the Company and its business forms a partof this Report.

Particulars of Employees

A statement containing the names of every employee employed throughoutthe financial year and in receipt of remuneration of f 1 crore 2 lakhs or more oremployed for part of the year and in receipt of f 8.5 lakh or more a month and otheremployees as required under Rule 5(2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 is annexed to this Report as "Annexure 3(a)".

The ratio of the remuneration of each director to the medianemployee's remuneration and other details prescribed in Section 197(12) of the Actread with Rule 5(1) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 are annexed to this Report as "Annexure 3 (b)".

Employees Stock Option Schemes (ESOSs)

In compliance with Regulation 14 of the Securities and Exchange Boardof India (Share Based Employee Benefits) Regulations 2014 information relating to ESOSsof the Company is annexed to this Report as "Annexure 4".

Disclosure under the Sexual Harassment of Women at Workplace(Prevention Prohibition and Redressal) Act 2013

The Company has a policy on prevention of sexual harassment atworkplace and has put in place a redressal mechanism for resolving complaints receivedwith respect to sexual harassment and discriminatory employment practices for all genders.The Company has constituted Internal Complaints Committee which is responsible forredressal of complaints related to sexual harassment. During the year under review nocase was filed with the POSH committee. Thus there were no complaints pending as on March31 2022.

The Company has taken various measures to create awareness amongstemployees such as sending emails and communication to all employees conducted awarenesssessions with new joiners and deploying e-learning module for all KPIT Employees etc. forprevention of Sexual Harassment of Women at Workplace.

Details of application made or any proceeding pending under theInsolvency and Bankruptcy Code 2016 during the year along with their status.

The Company has not made any application under the Insolvency andBankruptcy Code 2016 during the financial year 2021-22.

Details of difference between amount of the valuation done at the timeof one-time settlement and the valuation done while taking loan from the Banks orFinancial Institutions along with the reasons thereof.

The provision regarding difference between amount of the valuation doneat the time of one-time settlement and the valuation done while taking loan from the Banksor Financial Institutions is not applicable to the Company during the financial year2021-22.

Fixed Deposits

The Company has not accepted any deposits as on March 31 2022.

Information on conservation of energy technology absorption andforeign exchange earnings and outgo stipulated under Section 134(3)(m) of the Act readwith Rule 8 of the Companies (Accounts) Rules 2014

Conservation of Energy

Energy conservation has always been a focus of KPIT. HVAC consumesaround 50% of energy hence focus was on HVAC operations to maximize efficiency.

Having efficient HVAC VRF system gives more efficiency and flexibilityto control smaller areas as per operational requirement. Due to COVID-19 Pandemicconditions most of the employees were continued working from home hence there was lowoccupancy in office therefore new process and practices were implemented such as ACtemperature settings monitoring of AC system w.r.t occupancy cross ventilation and maxair changes seasonal temperature setting for ACs shutting down unused lights andequipment with rigorous monitoring regular monitoring of consumption and taking measuresmonitoring meeting room discussion rooms lights and AC working.

An open car parking lot of more than 8000 sq. meters was convertedinto solar power parking lot with an object to generate green energy and which alsoovercome the leading concerns of heating vehicles in summers.

The solar power parking lot providing double benefits as to cover 240four wheelers and 350 two wheelers and capacity of generating energy upto 661.65 kWp whichis indented to produce 960 thousand Units of power annually. 75% of the energy requirementof the sunny hours is fulfilled by solar plant and 47% of overall consumption is generatedthrough solar energy. The said plant was commissioned in the month of August 2021. Theplant was setup through BOT with zero capex investment and will save around Rs 30 lacsannually. No capital investment on energy conservation was made by the Company in FY2021-22.

During the year under review KPIT continues with its commitment forgreener world and has successfully covered around 4 acres of land as green belt withplantation of 1333 native trees shrubs and flowering plants which has increased thefreshwater requirements.

In FY 2021-22 as some of the employees have resumed office there wasa marginal increase in consumption of power by 18% due to usage of hardware as well asthere was an increase in water consumption around 44% as compared to previous financialyear where all the employees were working from home.

Green Initiatives

The following initiatives were undertaken at the Company level tocreate awareness about importance of environmental protection and reducing pollution:

• In the state of Maharashtra the Koyna-Chandoli corridor hasbeen a host of KPIT's afforestation efforts in association with the WildlifeResearch & Conservation Society (WRCS). Continuing our previous year'sefforts we aligned our afforestation activities with the onset of monsoon. Due to theCOVID-19 pandemic our volunteers have not been able to participate physically in theplantation activities this year. With the help of local villagers and full-time activistsof WRCS we planted a total of 3000 saplings. With this a cumulative of 48900saplings were planted in an area of 252 acres with an overall survival rate of 80 percent.

• Staying true to our commitment towards a cleaner worldwe at KPIT observed Environment month and inspired all the KPITians to take steps towardsenvironment protection from the comfort of their homes (considering COVID-19 restrictions)and by following eco-friendly practices. Events included various talks andworkshops on Upcycling plastic Home composting Terrace gardening and Toxic freelifestyle.

• To create awareness about eco-friendly lifestyle KPIT organizedworkshops on Eco-friendly Ganesha making and Handmade Diwali lanterns. We also invitedguest speakers to talk on COVID-19 impact on wildlife Understanding rivers & floodseffects of air pollution and SWACHH BHARAT.

• Mr. Anup Sable Board Member of KPIT inaugurated and handed overa drinking water well to villagers of Vatunde-Nigadimal in Dhangar Vasti about 60km from Pune. Construction of this well started last year. This well is created to helpabout 100 beneficiaries. Going forward they shall no longer be required to fetchwater from long distances and will always have easy access to clean drinking water.

• KPIT collaborated with 14 Trees Foundation (14TF) andEcological Society Pune for building sustainable carbon-footprint-neutral ecosystemsthrough reforestation. Efforts are being made to restore uncultivable barren land at the14TF Vetale site near Rajguru Nagar (60km from Pune) with native species like mangobanyan neem jamun umber etc. This has also created employment for the locals. Withthe help of local villagers and full-time activists of 14TF KPIT planted a total of 632saplings.

Our Chairman Mr. S. B. (Ravi) Pandit along with his familyvisited this project during monsoon.

He appreciated and encouraged efforts of 14TF team towardsprotection of the environment and towards generating structured livelihood for the locals.KPIT has also inspired its clients to be part of the afforestation efforts. Supportingthese efforts KPIT along with a few celebrated their work anniversaries byplanting the no. of trees equivalent to their years of partnership.

KPITians from the Pune office participated in the ongoing Mula rivercleaning activity at Aundh in association with our NGO partner Jeevitnadi-Living RiverFoundation. It was an early morning activity with a lot of hard but satisfying work.They cleaned the riverbank collected and segregated garbage. They also indulgedin bird watching and observed nature to the fullest. Employees with their family membersenjoyed the activity.

Occupational Health and Safety Assessment Series (OHSAS)

KPIT had a robust annual calendar with a wide range of activities forensuring health and wellbeing of our employees. The programs were carried in allgeographies where KPITians work in collaboration with our wellness partners. The followingactivities were carried out by the Company for ensuring health and safety of our employeesin the year 2021-22.

• Wellness calendar with focus on nutrition wellness stressmanagement infectious disease prevention mental health childcare pain managementmeditation e.g. ‘Diet for Boosting Immunity' ‘Relaxation Techniques forEmotional Wellbeing' ‘Behavioral Ways to Cope-up with Anxiety' etc.

• Extensive webinars on COVID-19 Prevention and Precautions.

• Live virtual Health Studio with doctors and teleconsultationexclusively for women of KPIT.

• Specially organized Financial Wellbeing Webinar along withconsultation.

• Dedicated 2 full months of yoga sessions for senior managementon the occasion of International Yoga Day.

• For better mental health & emotional intelligence awebinar- ‘Connecting in a Crisis For Better Wellbeing & Joy' that explainedhow our connections have a deep impact on our overall wellbeing and happiness.

• 73rd Republic Day celebrated with flag hoisting funtakshari andBharat Quiz organized for employees along with their family and friends.

• Engagement through Talent Show and Quiz Competitions. Postlockdown celebrated Children's Day by inviting all employees with their families toChildren's Carnival - an offline event at KPIT Pune & Bangalore office. (AllCOVID-19 guidelines were thoroughly followed.)

• A full week dedicated to women's health through webinarsZumba sessions Diet & Nutrition selfdefense meditation healthy relationships etc.

Specific preventive measures taken for safety of employeesduring COVID-19 pandemic:

• KPIT partnered with various Hospitals for providing Covishieldvaccination to 1900 KPITians and 1100 immediate family members.

• KPIT have also facilitated to get parents/in-laws vaccinated ondiscounted payment basis.

• General physician and counsellor are available for any medicalconsultation or counselling for KPITian or anyone of family member.

• Cab shuttle service from KPIT's Hinjawadi Phase 3 officePune to KPIT's Hinjawadi Phase 2 office Pune during evening.

• Implemented 96% Work From Home (WFH) to reduce risk of spread ofCOVID-19.

• Weekly COVID-19/RTPCR tests from renowned lab for all employeesand 3rd party staff.

• Vaccination mandatory for all above 45 years. Temperaturemonitoring was done by keeping the air-conditioning at more than 25 degrees in Pune and 23degrees in Bengaluru Office.

• Sanitizers were kept at all common places.

• Alternate wash basin and Urinal are closed to maintaindistancing in washrooms.

• Daily windows are kept open for one hour before and after officehours for cross ventilation.

• Formed cross functional team across the globe for safetywell-being and communication.

• Deep cleaning and sanitization of office premises includingincreased frequency of cleaning - all touch points like doorknobs switches etc.throughout the day.

• Wearing mask made mandatory for everyone in the office and forall third-party staff face masks and gloves were mandatory in the week leading to thelockdown.

• Operations are being resumed with limited employees in staggeredmanner.

• Social distancing measures at all times from commuting officework cafeteria and reduced the number of chairs in the cafeteria. Only 4 people couldsit on one table initially and later only 2 people were seated on a table meant for 6.Face to Face seating was discontinued.

• Personal hygiene and Safety First being followed all the time.

• Temperature checks and Status checks on Aarogya Setu appmandatory at office entry points.

• All doors including that of ODCs were kept open to reduce thetouch points.

• Restricted use of elevator and only stairs to be allowed.

• Restrictions on use of Gym recreation and resting rooms as perdirections of the government.

• Recommended QR code-based payments in cafeteria.

• COVID warrior at every floor to oversee enforcement.

• Continuous awareness among employees through leadership videosmyWorld banners and communication.

Technology Absorption

During the year under review multiple technological improvementinitiatives were rolled out. These initiatives helped to improve the systems andapplications performance and reduction of cost.

H Business Continuity Planning (BCP) - Enabling Secured WFH

Given the unprecedented nature of COVID-19 crisis KPIT is vigilant andworking towards anticipating and planning for various scenarios. Business ContinuityPlanning team will keep track assess incidents and work with client teams to build andexecute specific plans.

Objectives of BCP:

• Implementing a set of measures for avoiding possible failures.

• Prioritization of Key services and providing for alternateservice delivery.

• Educating the users of their responsibility before during andafter the business interruptions.

• Providing an orderly and efficient transition from normal toemergency condition and back to normal maintaining consistency in action.

• Readiness for hybrid working:

Uniform security checks / controls / policies for employees workingfrom home or office.

Solution: Secure Work from Home (BCP) Enablement

Considering secure & successful working from home module KPIT hascreated solution considering highly trusted technologies Process & People framework.

As the remote working process got matured multiple security tools andcontrols were introduced to cover the modern attack vectors.

Access to KPIT network over Next Generation Firewall Global ProtectIPSec VPN:

• Secure Access through multifactor authentication overactivedirectory credentials to ensure access by an authorized individual only.

• Before granting access - Validating KPIT systems with HIPS forSecurity Certificate Antivirus Anti threat protections.

• KPIT Laptops with hardened OS & with latest securitypatches.

• Virtual desktop infrastructure in applicable scenarios withhardened OS images with latest security patches and controls.

• Endpoint protection using McAfee endpoint protection to detectand prohibit suspicious or malicious activity.

• Endpoint ATP using advance threat and anti-exploit protection.

• Endpoint Device DLP for threat monitoring logging andrestriction on USB storage ports.

• Data exchange over end-to-end encryption with IPSEC tunnel fromendpoint till secure gateway.

• Web-content filtering to protect against web malware.

• Collaboration using Microsoft Teams Cisco WebEx.

Remote working environment enhancements

During the year under review remote working environment was furtherstrengthened with below points:

• MFA (Multi Factor Authentication) enabled for publishedapplications.

• Deep packet inspection in effect for all the publishedapplications.

• Enhanced web content filtering solution deployed to arrest newage threats.

• Remote security updates and patch management deployment furtherenhanced covering all corporate assets.

• Data Encryption enabled for all the critical end points.

• Capacity enhancements completed for additional virtual desktopsfor rapidly growing development and engineering teams.

Process and Policy controls for BCP:

• Strict adherence to KPIT Information Security Policy.

• User acceptance of Work from Home undertaking.

• Re-iteration of individual roles and responsibilities byDelivery Management.

• Setting up of BCP Command center.

- Open-Source Platform enhancements

During the year under review KPIT has further enhanced state of theart open-source platform to OKD 4.8 (OpenShift's Open-Source Community Distribution)to cater to all the CI/CD pipeline. Platform is based on Kubernetes and it isarchitecturally highly available auto scalable Open- Source Platform for DigitalTechnologies. To cater the need of data services we deployed highly available open-sourcedatabase clusters of MongoDB PostgreSQL and Percona XtraDB for MySQL. With zerosurprises all the corporate applications and data is migrated from an Enterprise Platformto new Opensource Platform. This helped organization in saving considerable yearlysubscription cost.

Solution and Technology Deployed:

Considering hefty year on year subscription cost KPIT decided toexplore Open-Source option for an Enterprise Platform which was already in use.Identifying & creating a robust open-source platform without compromising featuresprovided by earlier platform was difficult task. Also it was not related to setting up arobust platform alone but building capability to support open-source technology was verycritical. DevOps Team effectively took this challenge by deploying highly available andscalable OKD 4.5 on Fedora CoreOS with Kubernetes at its heart. DEV Team recoded all theapplications and seamlessly migrated to the new platform with zero surprises. End userexperience with applications running on new platform is further enhanced.

- Virtual Platform for Vehicle simulation & Validation

One of the key challenges faced in ADAS and AD development isVerification and Validation. Given the safety- critical nature of ADAS/AD it'simportant to ensure high levels of accuracy for this. This is where Virtual Simulation forValidation comes into play.

Solution and Technology deployed:

Deployed highly resilient Kubernetes platform along with KAFKA clusterswith Kerberos. The solution has built in load balancer for optimum workload distribution.This platform contains Jenkins for CI/CD which allows continues delivery cycle.

- Smart Campus Platform

KPIT has begun the Smart Campus initiative and rolled out various"Smart Applications" for Employees. These applications were aimed at changingthe user experience while optimizing the energy consumption. KPIT has pursued thisinitiative further and taken it to the next level by deploying "Smart Campus"platform and has integrated fourteen different systems and sensor driven devices that comeunder the aegis of Building Management System (BMS). Traditionally all these BMS systemssuch as Access control CCTv Fire alarm system and air-conditioning systems operatewithin their own silos and use legacy (often proprietary) protocols. The siloed approachleads to an absence of ability to conduct common monitoring and controlling.

Solution and Technology Deployed:

KPIT has brought in higher level of automation in all these 14 systemsby use of various control panels and adaptors and have got them integrated to ourplatform. This has enabled the Company to provide accurate instantaneous reporting data ofall these systems along with control functionality in a single dashboard. We are gettingmore visibility on electrical consumption across floors buildings with clarity on whichsystem is consuming how much electricity how it can be effectively optimized. Automationin various pumps and Fan system gives more operational efficiency for the operations teamand reduction in human errors along with reduction in electrical usage. Operations team isnow better equipped to see all the systems in single dashboard. Because of instantaneousalerts mapped on various gateways (SMS/E-mail) they are now better equipped to managevarious BMS systems effectively this also helps them in taking care of employee safety atwork.

- Hyper-Converged Infrastructure

KPIT is an early adopter of Hyper-converged infrastructure and reapingits benefits since last 2 years. In our pursuit of continual services optimizationCompany has adopted Hyper-converged Infrastructure from all the three OEM solutions -HPNutanix Acropolis Cisco HyperFlex and EMC vxRAIL.

Scaling out HCI cluster is helping us to suffice dynamic businessrequirements quick customer on boarding & On the fly resource upgradation fordeployed workloads. Inbuilt deduplication capabilities are helping us in effective storagemanagement.

Solution and Technology Deployed:

KPIT was looking for an agile solution which will help us in makingoperations simpler could be commissioned much faster could be scaled on demand and couldbe effectively managed by skilling existing human resources.

Hyper-converged infrastructure addressed these issues. We couldimplement hyper-converged solution within a few hours. This infrastructure is helping usin adding capacity on demand without vendor lockdown. Even achieving disaster Recovery(dR) is much simpler and it even supports multi-hypervisor environments. Besides easingdatacenter migrations Company do not have to make upfront investments now.

Following Environmental Returns are achieved: HyperconvergedInfrastructure has helped us in saving power cooling and space by an additional 30%. Wecould also optimize the asset ratio from 7 to 1 for the same compute capacity in thedatacenter. We continued investing into this technology last year too and the organizationis reaping its benefits.

- Virtual Desktop Environment

Like majority of business organizations globally KPIT also relies onits internal IT implementations to make processes more efficient increase automation anddeploy IT to make collaboration across geographies easier. The Company has deployed themost advanced technologies for its processes. These deployments are scalable and futureready to support changing work styles information security criteria and the changingusage patterns of computing devices.

Solution: KPIT decided to shift from conventional desktoptechnology to Virtual Desktop Interface (VDI). Following operational aspects wereconsidered while implementing the VDI solution: deliver on- demand services for usersIncrease IT efficiency Simplify management Ensure software compliance. Though KPIT wasalready evaluating a virtualization solution that was deployed in a limited environmentit had not explored the idea of transitioning the core ERP processes onto the virtualizedenvironment but had transitioned only the less critical ones. Taking a step further towardoptimizing energy requirement and consumption KPIT decided to increase use ofvirtualization technology.

Solution and technology deployed:

HCI (Nutanix CISCO HPE) & VMware View based infrastructureplatforms VMware Horizon View Virtual Desktop Infrastructure (VDI) Thin client

Following Environmental Returns were achieved after deployment of VDI:

1. Energy savings: More than 60% reduction in energy consumption wasachieved by moving to the private cloud platform (including new technologies like hyperconverged) with vdI as compared to using conventional computers. Cisco Unified ComputingSystem which is included as part of the private cloud platform delivers high-memorycapacity to support a large number of virtual machines on each blade server thus reducingthe amount of physical equipment to be powered and cooled. The desktop computers thatconsume around 150 watts of electricity were replaced with very small devices called thinclients that consume just 30 watts. This has resulted in energy savings of approximately300000 units per year amounting to 375 MT of Co2 emission.

2. Reduction in e-waste: Almost 90% reduction in e-waste generation wasachieved due to the increased IT hardware refreshment cycle for desktops laptops andworkstations. Lifespan of the above-mentioned hardware is about five years due to highresource requirement capacity and performance demand and due to newer operatingsystems application software and tools. Being a technology provider it is extremelyimportant for us to update our IT hardware platform and ready it for next generationdevelopment tools. The thin client on the other hand has more than eight years oflifespan. Till that time it does not require upgrades or replacement as all the resourcessuch as computing power memory and disk space are accessed through VDI setup hosted inthe datacenter. Under this infrastructure we deployed 600 VDIs for the business users.

3. Reduced IT Asset Ratio from 1.20:1 to 1.10:1: VDI environmentenables multiple users to access their accounts using a single machine withoutcompromising on the security aspect. Before deploying the virtual desktop environment theasset-to-employee ratio was 1.20:1. This meant that much of the IT infrastructure wasunderutilized and was consuming more natural resources. After the deployment of thePrivate Cloud platform with VDI the asset ratio has reduced to 1.10:1 thereby reducingthe computer hardware consumption by 10%.

4. Workplace utilization increased by 10%: The VDI helped in improvingthe utilization and flexibility of IT assets. Users can access their desktop applicationsand data from any location without compromising on the security of the system. Inaddition employees can connect to corporate resources using any of the personal deviceslike iPads Windows and Android based mobiles thus enabling Consumerization of IT. Thishas led to workplace flexibility and optimal utilization of workspaces.

5. Reduction in travel across locations: KPIT has deployed best of thesolutions such as Cisco Telepresence (Audio/Video conferencing) & Microsoft Teamsacross the offices and Cisco WebEx for better collaborations. With these solutions ourusers can have conference meetings from anywhere and through any device. Even our businessreviews recruitment and customer meeting are conducted using these technologies. It hasbeen observed that overall business travels across the globe has reduced by 25%. As thisis a unified collaboration platform end user productivity is also substantially improved.This solution hugely enabled remote collaborations during COVID-19 in big way.

Research and Development (R&D) Activity

During current year the Company has not claimed any weighted deductionunder section 35(2AB) of Income Tax Act 1961 for in-house R&D expenditure as the sameis not available with effect from April 1 2020.

Foreign Exchange Earnings and Outgo

Total foreign exchange earnings during the year have been f 11035.68million (previous year f 6993.48 million) and foreign exchange outgo (including imports)has been f 87.25 million (previous year f 166.86 million).

Particulars of loans guarantees or investments under Section 186 ofthe Act

Particulars of loans guarantees or investments made during the yearunder review pursuant to the provisions of Section 186 of the Act are as below:

Sr. No. Name of the subsidiary Nature of transaction Duration Rate of Interest (%) Amount (in million) Purpose
1 ThaigerTec Co. Ltd. Investment in subsidiary NA NA 0.12 This is consequent to the transfer of investment from a wholly owned subsidiary KPIT Technologies Pte Limited Singapore.
2 PathPartner Technology Private Limited Investment in subsidiary NA NA 890.00 Acquisition of controlling stake.
3 PathPartner Interior Sensing Private Limited * Investment in subsidiary NA NA 2.52 This is consequent to the acquisition of controlling stake in PathPartner Technology Private Limited.

* Divested with effect from April 1 2022.

Particulars of contracts or arrangements with related parties referredto in Section 188(1) of the Act

Pursuant to the provisions of Section 134(3)(h) of the Act theparticulars of contracts or arrangements with related parties referred to in Section188(1) of the Act and prescribed in Form AOC-2 of Companies (Accounts) Rules 2014 isannexed to this Report as "Annexure 2".

Update on Merger & Acquisition

During the year under review on June 15 2021 the Company hasreceived approval from Hon'ble Mumbai Bench of National Company Law Tribunalapproving the scheme of merger by absorption of Impact Automotive Solutions Limited awholly owned subsidiary with KPIT Technologies Limited and their respective shareholderswith an appointed date of April 1 2019. As defined in the Scheme it became effective onJune 22 2021 by filing the said order with Registrar of Companies.

During the year under review the Company had entered into an agreementwith PathPartner Technology Private Limited ("PathPartner") an entity based inBengaluru and its promoters for acquiring majority stake in PathPartner.

Further on September 22 2021 the Board of Directors has approved topurchase 25% shareholding in Future Mobility Solutions GmbH (‘FMS'). Over aperiod of three years KPIT will acquire the balance shareholding. Majority shareholdingis expected to be acquired in the last quarter of the Financial Year 2022-23.

Material changes and commitments affecting the financial position ofthe Company

During this period of global crisis our priority was to ensure thesafety and wellbeing of our employees while helping our customers maintain seamlessbusiness service continuity. The Company scaled up fast to adopt social distancing normsadopting new policies and restricting travel while enabling remote working for ourassociates.

We enabled multilevel communication with clients backed by atechnology engagement plan covering detailed steps across various aspects of each program.We helped clients with their BCP anticipating challenges in their business whileaddressing them with technological solutions. Customers have appreciated the swiftness ofour response quality control data protection and the level of support to ensure businesscontinuity.

Parallelly the safety of our employees and their families is ofparamount importance to us. KPIT partnered with various Hospitals for providingvaccination to KPITians and their immediate family members. We also facilitated to getparents/in-laws vaccinated on discounted payment basis. We are in constant communicationwith our teams across the globe for any assistance that they might need. We alsoprioritized the wellness of our associates for which various sessions such as consultationthrough doctors and psychologists yoga trainer talk with leading nutritionist etc. wereconducted.

We are equipped to support the communities we serve and the ones ourpeople inhabit. It is our commitment to help citizens live and work sustainably andconfidently in an ever-changing digital landscape.

Significant and material orders

There are no significant and material orders passed by the regulatorsor courts or tribunals impacting the going concern status and Company's operations infuture.

Enterprise Risk Management Policy

A policy to identify assess monitor and mitigate various risks to keybusiness objectives of the Company is in place. A detailed information on Enterprise RiskManagement is included in this Annual Report.

Annual Return

The Annual Return of the Company for the financial year 2020-21 in FormMGT-7 has been uploaded on website of the Company i.e.

Responsibility Statement of the Board of Directors

To the best of their knowledge and belief and according to theinformation and explanations obtained by them your Directors state that:

i) in the preparation of the annual accounts for the year ended March31 2022 the applicable accounting standards have been followed along with properexplanation relating to material departures if any;

ii) they have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Company as at March 31 2022 andof the profit of the Company for the year ended March 31 2022;

iii) they have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;

iv) the annual financial statements have been prepared on a goingconcern basis;

v) they have laid down internal financial controls to be followed bythe Company and that such internal financial controls are adequate and are operatingeffectively and

vi) they have devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems are adequate and operatingeffectively.

CEO & CFO Certification

Certificate by Mr. Kishor PatiL CEO & Managing Director and Ms.Priyamvada Hardikar Chief Financial Officer pursuant to the provisions of regulation17(8) of the SEBI (LODR) Regulations 2015 for the year under review was pLaced beforethe Board of Directors of the Company at its meeting held on April 27 2022.

A copy of such certificate forms a part of the Report on CorporateGovernance.

Cost Records

The Company is not required to maintain cost records under theprovisions of Section 148(1) of the Companies Act 2013.

Directors & Officers Insurance Policy

The Company has in place an insurance policy for its Directors &Officers with a quantum and coverage as approved by the Board.


We take this opportunity to thank all the shareholders of the Companyfor their continued support.

We thank our customers vendors investors and bankers for theircontinued support during the year. We place on record our appreciation of the contributionmade by our employees at all levels. Our consistent growth was made possible by their hardwork soLidarity co-operation and support.

We further thank the governments of various countries where we have ouroperations. We also thank the Government of India particularly the Ministry ofCommunication and Information Technology the Ministry of Commerce the Ministry ofFinance the Ministry of Corporate Affairs the Customs and Excise Departments the IncomeTax Department the Reserve Bank of India the State Governments the Software DevelopmentCenters (SDCs)/SpeciaL Economic Zones (SEZs) - Bengaluru Pune and aLL other governmentagencies for their support and Look forward for their continued support in future.

For and on behaLf of the Board of Directors
Pune S. B. (Ravi) Pandit
JuLy 26 2022 Chairman of the Board