Birlasoft prides itself as a reliable partner for the business and digital
transformation of its customers across multiple sectors globally. The Company combines the
blended power of domain expertise, enterprise, and emerging technologies to reimagine
business processes for customers and their ecosystem. Birlasofts consultative and
design-thinking approach makes societies more productive by helping customers run
businesses. With its 12,000+ employees, Birlasoft, part of the multi-billion dollar CK
Birla Group, is dedicated to carrying forward its 161-year old tradition of building
sustainable communities.
The CK Birla Group is a diversified $ 2.9 billion conglomerate that has enduring
relationships with renowned global companies. With over 30,000 employees, 46 manufacturing
facilities, and numerous patents and awards, the Groups businesses are present across
five continents. The Group operates in three industry clusters: technology and automotive,
home and building, healthcare and education. The CK Birla Group companies are strengthened
by shared guiding principles that focus on long-term value creation, trust-based
relationships, and benefit to society. Each business is transforming to build on the
collective strength and synergies of the Groups size and span.
Birlasoft has, over the years, been able to differentiate itself as a leading player
within the Indian IT Services and Solutions industry with a wide spectrum of offerings and
capabilities. The Company derives most of its revenues from the export markets, where it
serves customers chiefly in the Banking, Financial Services and Insurance (BFSI),
Manufacturing, Lifesciences, and Energy & Utility (E&U) sectors. Birlasofts
offerings are characterised by capabilities across the key service lines of Digital,
Cloud, Data & Analytics, ERP, and IT Infrastructure. The Company operates in a highly
competitive environment and is also subject to both tailwinds as well as headwinds
emanating from macroeconomic factors.
Review of the macro-environment
Global Economy
In recent years, the world economy has been heavily burdened by significant
macroeconomic pressures ranging from the COVID-19 pandemic to the Russia-Ukraine conflict,
supply chain disruptions and resulting inflationary pressures that have then led to
monetary tightening by central banks. These factors tend to affect consumer and market
sentiment, leading to greater caution as corporations and individuals alike seek evidences
of sustained economic expansion or revival.
In the US, partly due to tighter monetary and fiscal policy and partly on account of
relatively subdued consumer sentiment, economic growth during the Calendar Year (CY) 2023
is expected to be weaker than in CY 2022. Europes economy too has been exhibiting a
similar trend, as high energy costs and lower output is affecting overall growth. Provided
energy costs ease off, employment growth remains healthy, and supply chain issues are
resolved, then the recessionary environment in the western economy, which contribute much
of the Companys revenues, can witness some revival. Improved household income and
increase in savings should then drive demand and economic growth.
The emerging economies, encouragingly, appear to be outperforming developed economies
in terms of growth rates, with India proving to be particularly resilient.
Indian economy
The Indian economy continued to demonstrate remarkable recovery after the
pandemic-affected period in the face of weakness in the global economic environment.
Propelled by robust domestic demand and sustained government spending, economic activity
in India has remained elevated and the country has been spearheading the global economys
recovery. Moreover, the Indian governments emphasis on increasing the disposable income
of taxpayers in the Union Budget of FY 2023-24 is likely to support discretionary
spending, which in turn should drive consumption. Additionally, the governments strong
push for capital expenditure, with an increased capex outlay of 37.4% compared to the
fiscal year 2022-23, is anticipated to stimulate growth, investments, and job creation.
Strong domestic demand and supportive government policies are likely to sustain Indias
status as one of the worlds fastest-growing major economies. Given that Birlasofts
operations have a global delivery model, the Company has an extensive delivery footprint
in India with a majority of its human resources sourced from and based in multiple cities
across the country.
Review of the Indian IT Services industrys performance and outlook
Over the past two years, the Indian technology sector has strengthened its position as
a leading service provider and has remained at the helm of remarkable digital
transformation journeys across the world. While FY22 was a year of strong growth amid
resurgence, FY23 has seen continued revenue growth with a focus on bolstering industry
fundamentals and enhancing competencies.
The Indian technology industry body NASSCOM estimates Indias technology industry
sales, including hardware, to have reached $ 245 billion in FY 2023, up by $ 19 billion
from the previous fiscal, an 8.4% year-on-year (YoY) increase. With $ 194 billion in
exports, growth during FY23 is expected to be 9.4% in reported currency terms and 11.4%
in constant currency terms. The IT Services segment is estimated to register a growth of
8.3% during FY23, with IT Services exports growing faster at 8.9% to $ 103.7 billion.
The sector continued to add employees during FY23, and NASSCOM estimates that it will
touch a total of 5.4 million (5.7% YoY increase) people, thereby further reiterating
Indias position as the ‘Digital Talent Nation for the entire world1.
Technology remains a strategic enabler, essential for organisations to drive
operational and financial efficiency while also supporting innovation, competitiveness,
and transformation. Enterprises are increasingly relying on technology to scale up
automation, humanize user experience, streamline their supply chain, improve cyber
resilience, and achieve their sustainability goals.
Amidst signs of deceleration, a 2.9%2 global growth is anticipated during CY
2023. Volatility and corporate resilience are expected to coexist in an uncertain global
economic landscape. Businesses around the world are expected to face some challenges,
including demand contraction in some sectors and decision-making delays, as a result of
this uncertainty. While this might result in some shifts in priorities in the medium term,
organisations are likely to leverage technology to better differentiate themselves in the
marketplace, optimise operations, and transform to meet the demands of an evolving
consumer base.
Even as cost takeout and optimisation engagements gain some traction given the macro
environment, digital transformation of businesses are likely to remain a key long-term
strategic focus for enterprises worldwide. This should drive demand for integrated use
cases and greater value realisation from tech spends, with businesses leveraging
enterprise solutions and technologies like cybersecurity, cloud, AI, and analytics. New
themes such as hyper-automation and virtual experiences are gaining prominence. As
businesses become more responsive to the end-users, they are expected to demand higher
purpose-driven collaboration and domain specialisation from their technology partners. The
recent emergence of Generative AI will further help in driving significant productivity
and efficiency improvements operationally as well in the value delivered to the end
customers. A majority of, if not all, service providers are evaluating specific business
cases in areas of customer experience, delivery automation, business operating model and
other functions to enhance value for both internal and external stakeholders.
The coming year is likely to see technology providers benefit from lower attrition
rates and improved utilisation, through consolidation and strengthening of existing
competencies and make early moves into new opportunities. Sustained focus on
digitalisation and digital UX/CX, cloudification, cloud-enabled services, data analytics,
and cybersecurity are expected to be key growth drivers for the information technology
industry. Access to and retention of high quality talent will continue to be a key
underlying theme, highlighting the importance of specialised skills in emerging tech
fields like Cloud, Artificial Intelligence, Machine Learning and related areas. Therefore,
reskilling and upskilling is likely to remain the norm for the industry. Among the other
key themes that are likely to unfold over the next few years and will be relevant for
players in the information technology industry are (1) demand shifts, geopolitical
dynamics, and tech regulations; (2) transition from being service providers to partners in
digital transformation; (3) differentiation through digital expertise and innovation; and
(4) trust, resilience, inclusive talent, and sustainability for enhanced competitiveness.
These key themes are likely to create substantial opportunities and also present risks for
those that do not adapt in a timely or meaningful manner.
Birlasoft:
Driving growth with a bold, agile and ambitious mindset
Birlasoft has, over the years, built strong domain expertise in its chosen verticals of
focus along with distinct capabilities across a set of service lines that enable a high
degree of differentiation and superior customer satisfaction. These industry verticals are
Manufacturing, BFSI (Banking, Financial Services, and Insurance), Lifesciences, and Energy
& Utilities. The Companys competitive advantages in these industry verticals is
driven by its micro-verticalization, domain specialization, established track-record, and
investments in a wide range of competencies. Birlasoft stands unmatched amongst
similar-sized firms on account of its ability to offer comprehensive end-to-end solutions
and services to its clients on the back of scaled-up capabilities throughout the full
stack from Digital to Cloud, Data & Analytics, Infrastructure Management, and ERP.
Leveraging its strengths in platforms and processes such as SAP, Oracle, J.D. Edwards,
Microsoft, Amazon Web Services (AWS), Google Cloud, Salesforce.com, and ServiceNow, among
others, the Company has been able to attract, retain, and grow multiple marquee customers.
Birlasoft has also been accumulating significant depth in emerging technologies that
include Robotic Process Automation (RPA), Machine Learning/AI/ML, and Generative AI. As a
consequence of its delivery capabilities as well as its ability to stay in sync with new
technologies, the Company enjoys multi-year relationships with several of its customers,
including many of its largest ones.
Birlasoft is now undergoing a significant transition, led by a refreshed leadership
team, as it embarks upon the next phase of its growth trajectory. The Companys strategies
are centred around driving growth through relevant and scaled up tech capabilities, a
sharp focus on select industry verticals and service lines, and an organisational culture
that prioritises innovation and exceptional service delivery to customers.
On the organisational front, during the year under review the Company inducted Angan
Guha as Chief Executive Officer and Managing Director. Angan has extensive experience in
scale and business transformation, brand building, strong customer engagement, and
building high-performing teams – all of which align well with the Companys growth
ambitions. Additionally, the Company has taken measures to strengthen both its front-end
market-facing team as well as the service lines, delivery operations, and enabling
functions, with multiple new leaders being inducted. These new leaders come with deep
domain experience and extensive experience.
As the Company re-invents itself to sharpen its go-to-market focus and build a growth
mindset, significant changes have been initiated along these key dimensions: (i) to become
sharply focused on its chosen industry verticals and service lines, (ii) to culturally
become more nimble and execution-oriented, and (iii) to be region-aligned to be closer to
the markets it serves.
Initiatives to build a growth-oriented organisation
Among the measures undertaken to drive better growth in the coming years is a
restructuring of the Companys organisation, with its operations now aligned by industry
verticals. The revamped organisational structure should enable greater synergies,
efficiencies, and predictability. With a focus on capability building, technology
excellence, pre-sales, and solutions building, the key initiatives that are being or
already have been rolled out are summarised as under:
• The front-end team and back-end leadership is being reinforced, with a mix of
external hires and internal promotions.
• The organisation has been redesigned to optimise its cultural transformation
initiatives around six key tenets: High ‘Say-Do Ratio, Be Bold, Customer Centricity,
Quick Decision-making, Employee Centricity, and Organisation First. The objective is to
ensure greater accountability and swifter action.
• At the back-end, a new COO (Chief Operating Officer) role has been created,
which will be responsible for all back-end operations – leading delivery, building up
capabilities from a service lines perspective, and running the Companys CIO/InfoSec and
CTO functions. Consequently, the Company now has a single, unified delivery organisation.
The organisations new structure is expected to yield better efficiencies, with operations
aligned by verticals, enabling a more focused approach. With a single unified delivery
system, the Company can ensure consistency and quality of its services across all
verticals. Additionally, the establishment of horizontals/service lines has enabled a
greater focus on capability building and technology excellence, providing the organisation
with a competitive advantage.
The team and leadership reinforcements have brought in fresh perspectives and new
ideas, resulting in a more dynamic and growth-oriented organisation. At the same time, a
healthy mix of external hires and internal promotions has ensured continuity, contributed
to a diverse and inclusive workforce, and is fostering a culture of accountability and
meritocracy.
The Organisation First approach encourages better and effective collaboration while the
focus on employee centricity has resulted in a motivated and engaged workforce, which is
getting reflected in both employee satisfaction as well as improving attrition rates.
These changes are leading to a more future-ready organisation, deeply committed to
solving customer challenges with multi-tower engagements and build upon its multiple 10+
years client relationships. The organisation is gearing up to address the opportunities
around large-scale business transformations, new technologies, and changing business
models.
These initiatives, which should start yielding results over the course of the year,
would position Birlasoft strongly to capitalize upon the bounce-back in demand once macro
headwinds ease up.
Review of operating and financial Performance
(in Rs million)
Particulars |
Year ended March 31, 2023 |
Year ended March 31, 2022 |
| Revenue from operations |
47,948 |
41,304 |
| Employee benefits expense |
28,131 |
23,689 |
| Other expenses |
14,612 |
11,214 |
| Total expenses |
42,743 |
34,903 |
| Earnings before interest, tax, depreciation & amortization |
5,205 |
6,401 |
| Depreciation and amortization expense |
823 |
765 |
| Earnings before interest & tax |
4,382 |
5,636 |
| Other income (Net) |
228 |
662 |
| Finance costs |
186 |
130 |
| Profit Before Tax (PBT) from continuing operations |
4,424 |
6,167 |
| Tax expense |
1,108 |
1,530 |
| Profit After tax (PAT) |
3,316 |
4,636 |
Birlasofts performance during the year under review reflects its inherent strengths as
well as some initial impact from the changes that the renewed leadership has been making.
The Companys consolidated revenue for the year registered a growth of 16.1% to H 47,948
million. This growth was led by its top customers, with Top-10 accounts recording a growth
of 17% year-on-year, and was achieved despite the discontinuation of revenue contribution
from a US-based customer Invacare Corporation that had to file a petition for relief under
Chapter 11 of Bankruptcy Code in the US Bankruptcy Court. This development also resulted
in a one-time provision amounting to about H 1,510 million during the year against the
outstanding receivables and contract assets pertaining to that customer. While this matter
has been put to rest now, after the settlement that was amicably entered into with
Invacare recently, it did affect the Companys reported earnings for the year under
review. Consolidated EBITDA for the year under review stood at H 6,715 million translating
into an EBITDA margin of 14%, after excluding the afore-mentioned one-time provision.
Profit After Taxes (PAT) for the year stood at H 3,316 million.
From a verticals perspective, BFSI continued to do well and registered a strong growth
of 17.9% year-on-year while Manufacturing grew by 11.9% during the year. The Energy &
Utilities vertical too recorded a growth during the year and was up 3.4%. The Lifesciences
vertical registered a decline of 8.0% in revenues, mainly on account of discontinuation of
revenues from Invacare. Among the horizontals, the Business and Technology Transformation
service line, with an increase of 19.2%, drove the Companys revenue performance during
the year under review. It contributed 40.8% to overall revenues. The Cloud & Base
Services service line was up 8.7% during FY23 while the Enterprise Solutions service line
which includes the ERP offering de-grew 4.3% owing in part to discontinuation of revenues
from Invacare and some sluggishness in this service line. The Company is undertaking
measures to enhance its market orientation, offerings capabilities, and executive team
bandwidth to drive better growth across these verticals and service lines.
As noted elsewhere in this Report, the financial and operating performance of the
Company for the year under review reflect the discontinuance of revenues from a customer
(Invacare Corporation) that filed for bankruptcy protection under Chapter 11 of the United
States Bankruptcy Code. In February 2023, Invacare, a US-based customer of the Company,
had filed a petition for relief under Chapter 11 of Bankruptcy Code in the United States
Bankruptcy Court. As a precautionary accounting measure, Birlasoft then created a
provision of H 1,510 million against its outstanding receivables and contract assets as on
December 31, 2022. Further to that, after consultations, the Company reached a Settlement
and Mutual Release Agreement and the parties mutually provided releases and waiver from
claims in the Settlement Agreement, which was approved on April 24, 2023. The Company will
receive $ 2 million for Disengagement Services ending on May 31, 2023.
The fundamentals of the business remain robust and that is evident in both the quantum
of deal wins during the year, which at $ 869 million is 24.8% higher than what was
recorded in the preceding year, as well as in the cash flow generated that at $ 84.1
million has been about 100% of adjusted EBITDA. The Companys billed Days of Sales
Outstanding (DSO), at 53 days, is best-in-class. As a result of consistent strong cash
flows, even after concluding a share buy-back program and paying out an interim dividend
during the course of the year, Birlasoft had cash and cash equivalents of H 11,278 million
at the end of FY23.
Revenues
The Companys consolidated revenue for the Financial Year under review (FY23) stood at
Rs 47,948 million as against Rs 41,304 million in the preceding year FY22, representing a
growth of 16.1%. This was achieved despite discontinuance of revenue contribution from
Invacare, from which revenues were recognised only in the first three quarters of FY23.
This growth performance therefore reflects the underlying strengths of the Companys
overall business.
The Companys Other income (net) was lower at H 228 million compared to Rs 662 million
in FY 2022. This was due to lower interest income during the year, given the lower amount
of cash after share buy back and interim dividend payouts, and forex loss on account of
restatement of assets.
Expenses
Total expenses of the Company increased by 18.1%, from Rs 34,902 million in FY22 to H
41,233 million in FY23. This was driven by higher employee benefit expenses that were
higher by 18.8% during the year, rising from Rs 23,689 million in FY22 to Rs 28,131
million in FY23.
Other expenses during FY23 were Rs 13,102 million, an increase of 16.8% from Rs 11,214
million in FY22.In addition to this, the Companys operating margins for the year reflect
the one-time provision of Rs 1,510 million on account of Invacare.
Tax Expenses
The Companys Tax Expense for FY23 were lower at Rs 1,108 million and comprised 25% of
the Profit Before Tax (PBT), compared to H 1,530 million in FY22. The effective tax rate
has thus been stable year-on-year.
In the Income-tax Act, 1961, the Government of India added a new section 115BAA (the
‘new tax regime) on September 20, 2019, through the Taxation Laws (Amendment) Act
2019. This section gave domestic companies the option to pay income taxes at a lower tax
rate (25.17%, inclusive of surcharge and cess), subject to the rules/conditions outlined
in the said section. The Company evaluated the underlying assumptions in light of the
business reality and made the decision to choose the new tax system, which took effect
from FY 2021.
Analysis of the Balance Sheet
Sources of Funds
The balance sheet size of the Company was Rs 31,873 million on March 31, 2023 compared
to Rs 33,833 million as on March 31, 2022, led by the aforementioned one-time provision
taken during the year.
The net worth of the company decreased from Rs 25,831 million as on March 31, 2022 to
Rs 24,483 million as on March 31, 2023, reflecting the reduced share capital after share
buyback as well as the one-time provision. The equity share capital of the Company
comprising 274.87 million equity shares of Rs 2 each, decreased from Rs 559 million at the
end of FY22 to Rs 550 million by the end of FY23.
The Company has no borrowings and is debt-free as on March 31, 2023.
Other financial liabilities decreased by 20.5% year-on-year, from Rs 1,725 million in
FY22 to Rs 1,371 million in FY23 due to lower accrued employee costs.
Application of funds
The Companys Fixed assets (including capital work in progress) remained stable at the
end the year under review at Rs 1,488 million compared to Rs 1,485 million at the end of
FY22.
Goodwill amount for the Company increased by 7% from Rs 4,568 million at the end of
FY22 to Rs 4,896 million by the end of FY23, reflecting foreign exchange fluctuations.
The Companys investment in high-rated bonds and target maturity funds increased 37%
from Rs 541 million in FY22 to Rs 741 million in FY23. This reflects better cash
generation and the Companys pivot towards high-rated bonds and target maturity funds to
improve yield on cash.
The Companys Other Financial Non-Current Assets rose from Rs 162 million in FY22 to
Rs 273 million in FY23. This was mainly driven by higher fixed deposits with banks.
Working Capital Management
The Companys Current Investments decreased from Rs 7,861 million as on March 31, 2022
to Rs 4,890 million as on March 31, 2023, reflecting cash outflow for the share buy back
concluded during the year under review.
Trade receivables (billed) were up by 7.4% from Rs 6,812 million as on March 31, 2022
to Rs 7,316 million as on March 31, 2023.
Billed Days of Sales Outstanding (DSO) improved from 58 days in FY22 to 53 days in
FY23.
Other balances and deposits with banks decreased from Rs 922 million as on March 31,
2022 to Rs 866 million as on March 31, 2023 as a result of outflows related to the share
buyback.
Other financial current assets of the Company declined from Rs 203 million as on March
31, 2022 to Rs 60 million as on March 31, 2023, on account of lower security deposits and
accrued interest as well as the absence of forward contracts designated as cash flow
hedges.
The Companys Other Current Assets were lower by 45.8% from Rs 3,954 million as on
March 31, 2022 to Rs 2,141 million as on March 31, 2023. This was chiefly due to a
significant reduction in contract assets from fixed price contracts.
Cash and cash equivalents chiefly reflecting current account balances increased 60.7%
from Rs 2,906 million at the end of FY22 to Rs 4,669 million at the end of FY23. Overall
cash and cash equivalents including liquid assets such investments and deposits stood at
Rs 11,278 million on March 31, 2023. The robust cash balance provides the Company with the
financial flexibility to pursue growth opportunities and withstand any economic headwinds.
To support growth, Birlasoft has a disciplined approach to managing its finances. The
Company focuses on generating strong cash flows and maintaining a robust balance sheet.
Revenue by Industry Verticals
Verticals |
% of Revenue |
|
FY22 |
FY23 |
| Manufacturing |
44.8% |
46.8% |
| BFSI |
17.6% |
19.3% |
| Energy & Utilities |
14.8% |
14.3% |
| Lifesciences |
22.8% |
19.6% |
TOTAL |
100.0% |
100.0% |
Revenue by Client Geography |
|
|
Revenue by Geography |
% of Revenue |
|
FY22 |
FY23 |
Americas |
82.1% |
84.5% |
Europe |
11.0% |
9.5% |
Rest of the World |
6.9% |
6.0% |
TOTAL |
100.0% |
100.0% |
Ratios |
|
|
Key Financial Ratios |
FY22 |
FY23 |
EBITDA Margin % |
15.5% |
10.9% |
Operating/EBIT Margin % |
13.6% |
9.1% |
Net Profit Margin % |
11.2% |
6.9% |
Return on Equity (ROE) |
19.2% |
13.5% |
Return on Capital Employed (ROCE) |
21.8% |
16.9% |
Days Sales Outstanding - Billed |
58 |
53 |
Note: Margins for FY23 reflect the impact of one-time provision created during
the year amounting to Rs 1,510 million against the outstanding receivables and
contract assets pertaining to Invacare Corporation, a customer in the US that had filed a
petition for relief under Chapter 11 of Bankruptcy Code in the United States Bankruptcy
Court on February 01, 2023. FY23 EBITDA margin excluding that one-time provision was
14.0%.
Human resources
Birlasoft considers its people to be the cornerstone of its success and its human
resources initiatives are driven by a strong set of values and policies. Mirroring its
emphasis on maintaining and nurturing a professional, merit-driven, healthy and harmonious
work environment at all levels, the Company continues to implement measures that allow its
people to realise their full potential. The Company is dedicated to fostering a working
environment that is ideal for incubating an innovative mindset, a value driven culture and
high priority for aligning individual objectives with that of the organisation.
Birlasoft has been certified as a Great Place to Work? and reiterates the Companys
commitment towards creating a conducive working environment that is free from bias and
believes in offering equal opportunities to its people. The Company attributes its
relentless growth to the strength of its talented workforce and prioritizes
employee-centric initiatives that help to create a sense of belonging.
The Companys workforce consists of 12,193 employees as on March 31, 2023, with women
employees making up 23% of that. Attrition rate, on a Last Twelve Month (LTM) basis, stood
at 22.1% at the end of FY23, a noticeable improvement from 29.4% registered at the end of
the preceding financial year.
Business outlook
The Company believes that customers will continue to spend on IT, looking for better
value from their IT spend and a deeper relationship with service providers. Birlasoft has
built lasting relationships with clients and continues to build capabilities in high
potential domains. However, the macro-economic environment has remained relatively subdued
with challenges in the global banking sector that manifested in the latter part of FY23
adding to the prevalent headwinds. This could result in sustained slower client
decision-making by customers and prospects, as their priorities shift in response to
changes in their own business landscape. Consequently, the outlook for the coming year is
one of growth although the gap created due to the absence of contribution from Invacare
implies that on reported basis the overall revenue performance might appear relatively
muted. On the margin front, while the Company is making investments for long term growth,
some of which has already happened, it is also taking measures to improve profitability
during FY24. Over the long term, the Company should be able to deliver industry-leading
performance as its strategic initiatives begin to yield results.
Internal control systems and their adequacy
For internal controls, Birlasoft has a well-established system that is appropriate for
the size and scope of its business. These were created to offer a reasonable level of
assurance regarding the recording and provision of accurate financial and operational
data, compliance with applicable laws, protection of assets from unauthorised use,
execution of transactions with the appropriate authorization, and adherence to corporate
policies. Birlasoft records data for accounting, consolidation, and Management Information
System (MIS) purposes using a cutting-edge ERP system that links all areas of the Company.
When it comes to approving contracts, operational budgets, and capital expenditures, the
corporation has well defined authority limitations. The management evaluated the efficacy
of internal controls over financial reporting at the organisation.
Ernst & Young LLP has been appointed by Birlasoft to supervise and conduct an
internal audit of its operations. The audit is based on an internal audit plan that is
approved by the audit committee and reviewed annually. The internal audit team
periodically performs audits across the organisation, including an evaluation of the
operational efficacy of internal controls. When necessary, the business hires outside
consultants to conduct particular audits or reviews.
According to Section 133 of the Companies Act, 2013, Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015, the Companies (Indian Accounting Standards) Amendment
Rules, 2016, and other provisions of the Companies Act, 2013, the audited consolidated
financial statements have been prepared in accordance with the Indian Accounting Standards
("IndAS") as specified therein. The consolidated financial statements of the
Company for the year ended March 31, 2023 have been audited by the Companys statutory
auditors. They have published an unaltered view on the subject without modification.
Discussion of risks, risk management, and mitigation
Birlasoft employs an organised and consistent approach to assessing risks and
developing mitigation strategies, as per acceptable Governance, Risks, and Compliance
(GRC) practices. The Company utilises analytical approaches to evaluate and manage risks
at different levels and on a regular basis across the organisation, including business
units, geographic regions, delivery functions, and enabling activities. Birlasoft adheres
to the highest standards of transparency with its stakeholders and hence, publishes a list
of major risks and steps being taken to mitigate them.
Please refer to the section on Enterprise Risk Management for a discussion of Risks and
Mitigation Plan.
Cautionary statement
This report contains certain forward-looking statements that are not historical facts.
These forward-looking statements include our financial and growth estimates as well as
declarations of our objectives, plans, strategies, and beliefs with regard to our Company
and the markets we serve. These assertions are based on information currently accessible,
and we disclaim any obligation to update them as events or circumstances warrant. These
forward-looking statements could be considerably different from actual results due to
risks and uncertainties. These risks include but are not limited to, the level of demand
in the market for our services, the intense competition in the market for the types of
services that we offer, market conditions that could cause our customers to lower their
spending for our services, our ability to create, acquire and build new businesses and to
grow our existing businesses, our ability to attract and retain qualified personnel,
currency fluctuations and market conditions in India and elsewhere around the world, and
other risks not specifically mentioned herein but those that are common to the industry.
+91-9892691696
