Zensar Technologies Ltd Management Discussions.

Global Economy

Annual global GDP growth is 2.9% in 20191. The global economy growth was buoyed by positive market sentiment that had been boosted by positive signs from an increase in manufacturing activity and global trade, a broad-based shift toward accommodative monetary policy and diminished fears of a hard Brexit supported by investors risk appetite.

Moreover, monetary policy easing continued into the second half of 2019 in several economies. Additionally, due to central bank rate cuts the economy had shown early signs of stabilisation reinforcing financial market sentiment. Equities continued to advance in the large advanced economies over the fall; core sovereign bond yields rose from their September low; and portfolio flows to emerging market economies strengthened, particularly to bond funds.

Review of Key Market Economies

United States: The US economy grew by 2.3% during the year backed by strong consumer spending, spurred by rising wages and household wealth. Business investment is also improved to rebound as several of the factors that weighed on businesses previous year started to abate.2

EURO Area: Euro area registered a growth of 1.2% during the year. The euro area economy has expanded since 2014, helped by accommodative monetary policy, mild expansionary fiscal policy and a recovering global economy. GDP growth is projected to slow somewhat, but to remain strong as compared to recent historic growth rates.3

South Africa: South Africa grew by 0.2% in CY 2019 on the back of reforms introduced by the government. Reforms such as allocation of the telecommunications spectrum, removing barriers to mining investment, and reviewing visa requirements to boost tourism has helped the economy to grow. Household and government consumption expenditure remained a key driver of growth during the year. The economy also experienced a decrease in Inflation to 4.4% in 2019 as compared to 4.7% in 2018. The government is further taking steps to improve investments, revitalizing townships and build industrial parks for driving business growth.

1 OECD Economic Outlook

2 https://www.npr.org/2020/01/30/800985774/u-s-economy-slowed-in-2019-to-2-3

3 https://www.oecd.org/economy/euro-area-and-european-union-economic-snapshot/


Due to the outbreak of COVID-19 across the world, with uncertainty and debates over exact growth levels in 2020. The adverse effects of this health hazard have been felt across the globe, including the direct disruption of global supply chains, weaker demand for imported goods and services, and regional declines in international tourism and hospitality sector. However, governments around the world are taking immediate, effective and well-resourced public health measures to prevent infection and contagion to implement targeted policies that support health care systems as well as health workers. Supportive macroeconomic policies and bailout packages to several countries by international financial institutions will help restore confidence, aid demand recovery and support economic recovery. However, the economy is expected to contract in the near term but with these measures in place, it is projected to revive in 2021, registering a growth of 5.4%.

Indian Economy Overview

Indian economy is the 5th largest economy in the world in terms of GDP The economy faced multiple headwinds and grew by 4.2% in FY 2019-20, registering a decline as compared to the previous year. This decline was primarily driven by a mix of both internal as well as external factors such as synchronised global slowdown, plummeting domestic automobile sales, flattening of core sector growth and declining investment in construction and infrastructure. Moreover, due to the recent outbreak of COVID-19, which led to an economy wide lockdown to curtail the spread of the virus, outlook of the Indian economy has been altered. The economy is further expected experience slowdown and is projected to contract by 4.5% in FY 2020-21. However, the government of India and the RBI are continuously working in tandem to revive the economy. Fiscal as well as monetary measures have been introduced and are expected to decelerate this slowdown and will help the economy grow in future. With these measures in place, the economy is expected to register a growth of 6% in FY 2021-22.

Industry Overview

The global technology industry (excl. hardware) stood at US $1.5 trillion, growing at 5.6% Y-o-Y4. The growth was mainly driven by rising demand for services and a shift from traditional services to digital technologies, DevOps and ‘As-a-service models. The global sourcing industry reached US $ 213 billion, growing at 7.6% Y-o-Y4. The sourcing market continues to develop, backed by higher growth in BPM services and an uptick in growth for digital and IT services across leading geographies.

The major economies in the Asia Pacific (APAC) region, including China, Japan, India, Australia, and Singapore, have heavily invested in emerging technologies like cloud computing, Artificial Intelligence, 3D printing, SMAC (Social, Mobility, Analytics, and Cloud) and Blockchain technologies. Furthermore, the region also holds a strong competitive advantage over advanced economies owing to its robust and cost-efficient model, trained workforce and flexible regulations and policies.

4 NASSCOM Annual Report on Techade

The Indian IT-BPM industry is estimated to grow at 7.7% in FY2020 to reach US $ 191 billion on a constant currency basis, as the industry is cautiously optimistic about its future prospects3. The growth in this sector is driven by increasing focus on digital transformation, with businesses across the globe expanding their digital capacities and services. In FY2019, the IT-BPM Industry accounts for over 7.9% relative share in Indias GDP and has played a significant role in reducing Indias import bill on IT services4. The industry is estimated to employ 4.36 million people with the addition of 2.05 lakh jobs in FY20204.

The past decade (FY2009-FY2019) saw the industry cross USD 150 billion in revenues (FY2016 being the watershed year) and stood at USD 177 billion in FY2019. Employee addition was close to 2 million people, representing a 1.8X growth over FY2009 levels.

Mega Trends in coming decade (2020-2030)

The decade of 2020-2030 will foresee non-linear transformations, manifesting as global megatrends that will generate opportunities at a rapid speed and scale, necessitating on-time response agility. The mega trends expected to accelerate growth of this sector are:

1. Data Led Economy: Tech-driven economy and mass urbanisation will lead to a rapid growth of technology across the globe. Global data has been doubling every three years and is estimated to reach 175 Zettabytes (ZBs) by 2030. Nearly two-thirds of the data will be machine-to-machine data and out of that, more than one-third will need real-time analysis and decision-making at source. Edge IoT and Edge Analytics shall play a major role in saving data transmission, storage, and post-fact analysis costs.

2. Future of work: With technology playing its part, the future of work will evolve according to changing requirements. The rise of a gig economy is changing the work culture and is opening avenues for remote working. Besides, the future of work will be disrupted with rising automation and machines doing their work effectively without errors and minimal human intervention, through technology-assisted tools.

3. Mass Urbanisation and Hyper-Personalisation: Rapid urbanisation will require cities that are digitally connected, to develop interconnected business models. Two-thirds of the world population will live in small cities, with population of up to 1 million, and are estimated to grow faster than the global megacities. Megacities, at their end, will sustain 50 per cent of global GDP within them, each worth USD 3 trillion in size. As a downside, such mass but, unorganised urbanisation will push the environment beyond its limits.

4. Environmental Sustainability Stress: Climate change, urbanisation, natural resource degeneration and shrinking arable land will push more than 3 billion people to the verge of severe food and water scarcity. Technology on the other hand, can be a boon for such stress and help to ensure sustainability through low-compute, decentralised, and realtime processing capabilities.

Industry Spends and Insights

Most companies across the globe are focused on ‘Going digital. This philosophy not only helps to increase efficiency, but also optimizes processes and reduces operating costs. Companies all over the world are increasingly investing in emerging technologies that are reshaping the modus operandi of organisations. These emerging technologies like Big Data and Analytics (BDA), Cloud Computing, Cybersecurity, Artificial Intelligence (AI), Internet of Things (loT), 3D Printing, Robotics, Blockchain and Immersive Media will create opportunities of up-to US $ 33 trillion and play a critical role in solving business issues4.

Company Overview

Zensar is a leading digital solutions and technology services company that assists global organisations across industries on their path to Digital success. The Company has a presence across the globe with 25+ offices around the world. Its primary markets comprise of US, UK and South Africa, with Mexico and Germany added in its portfolio recently.

The Company communicates and collaborates with its employees and clients through digital platforms that increase operational productivity, enable smart decision making and enhances customer partnership. The Company thrives on a culture of transparency and openness, with a constant commitment towards people and community.

Analytics Application Transformation Cloud and Infrastructure Digital Experience Enterprise Applications Testing Unified Digital Commerce
Advanced Analytics Agile Hybrid IT CRM Oracle Game Testing Digital Commerce Consulting
Analytics Strategy and Consulting Application Development Cybersecurity Digital Channels SAP One Touch Testing Digital Fulfilment
Data Insights DevOps Digital Workplace Digital Marketing Services SFDC Outcome Based Testing Digital Commerce Development
Data Management Enterprise Architecture Intelligent Command Center Experience Services Pega Alliance Performance Engineering Managed Commerce Services
Cloud Applications Third-Party Maintenance Services Front End Development Product Testing Sierra - Automated Functional Testing
Connected Intelligence Unified IT Rush Hour Testing Sierra - Volume and Performance Testing

Smart Application Development and Maintenance (SmartADM)

With the Companys focus on Return on Digital (RoD), it has widened its scope to strengthen offerings with the launch of SmartADM, a complete suite of Application Services that enable Intelligent Application Services through Al-enabled Cloud Native development, Agile, DevSecOps, Legacy Modernisation, Application Support & Maintenance, Micro-services and API. The Company provides customers with improved efficiencies across automation led processes, zero-risk transition management with integrated application management and increased stability of applications across enterprises. The suite enables enterprises to undergo digital transformation from an environment that is fragmented, replete with incongruent solutions, and rely heavily on human intervention. Going forward, businesses that thrive on Artificial Intelligence solutions will create an impact and drive operations, to successfully move towards a future ready environment.

Augmenting Customer Experience

The Companys recent acquisitions in key markets of the US and Europe have not only widened its client base, but has also strengthened its service offerings. The synergies derived from these collaborations have helped to create unique customer experiences. With its customer centric approach, the Company offers Al with Experience Design Research (EDR) framework and RPA to enhance customer experience & satisfaction by delivering superior quality services. Backed by its strong track record of innovation and reliable investments in digital solutions, the company is committed to serve its existing client base and leverage its experience to attract potential clients and establish a stronger market presence.

Living AI Philosophy

Artificial Intelligence (AI), is already widely used in business applications, including automation, data analytics, and natural language processing. AI, when applied with the layers of experience, can drastically improve prediction & automation, delivering path breaking results to stimulate an organisations functionality.

AI applied with Data science and machine learning can help to make decisions in auto mode, for various business operations. AI when collaborated with right tools, helps develop solutions that enable organisations to take better decisions, resulting in maximum Return on Investment (ROI) for companies. AI in research help companies to process data quickly with faster insights and enhanced data protection. IoT and Edge computing in Research AI aids the Company to revolutionize their business, enabling them to take the next leap of progress. The Company has also been mentioned as an “Innovator” in Applied AI and Advanced Analytics service category by Radarview™ Report in 2019.

Operational Overview

Zensars phenomenal journey from a Living Digital company to a Living AI company today, lays the very foundation upon which it delivers technologies and solutions to its partners, offering measurable business outcomes. Zensars approach to Return on Digital with New and Exceptional Technologies (RoD NeXT), with a continuous focus on newer digital offerings, is in sync with its proprietary solutions that have helped to empower customers across the globe.

In its endeavor to drive digital transformation on a large-scale, with minimum human intervention, the Company embarked on the ‘Living AI journey to help its clients outperform and be future ready Among a plethora of emerging technologies, Artificial Intelligence (AI) has gained significant prominence with multiple opportunities to deliver value to the end-user. The Company has pivoted its next- level growth on the ‘Living AI philosophy to deliver best-in-class solutions to its customers, enabling them to transform multiple business functions.

At the beginning of Companys digital transformation journey, the goal was to create an agile and relevant enterprise focused on creating value through digitally empowered associates. Leveraging the current level of maturity achieved by ‘Living Digital, the Company is looking forward to the next phase: ‘Living AI. It is constantly investing in technology to pursue remarkable outcomes, an effort driven by in-house team at Zenlabs. Taking the technological transformation forward, ZenAIR Labs have a dedicated research team involved in building AI-led solutions. The living AI philosophy compels to provide an AI-enabled digital ecosystem for customers, enabling to utilize AI in three aspects- Experience AI, Decision AI and Research AI.

Zensars comprehensive range of digital and technology services and solutions enables its clients to achieve new thresholds of business performance. Zensar, with its experience in delivering excellence and superior client satisfaction, through myriad technology solutions, is uniquely positioned to help its clients surpass challenges and run businesses efficiently, to help in legacy transformation and planning for business expansion and growth in innovative ways.

The Company continues to focus on clients present in Insurance, Retail, Hi-tech, Manufacturing and Financial services sector. Acquisitions in the past have brought synergies in the existing service portfolio, enabling cross-selling and allowing us to acquire larger clients. These acquisitions come with expertise and services that align to the Companys vision, bringing efficiency, innovation and sustained financial performance on the Board.

The Company is determined to create maximum value for its customers through AI enabled digital transformation engagements in a complex IT environment with highly integrated tools.

Enterprise Risk Management

Zensar has established a robust Enterprise Risk Management program, through which risks are assessed and managed at various levels with a top-down and bottom-up approach covering the enterprise, the business units, the geographies, and the functions. The ERM program covers compliance with applicable government and regulatory requirements, potential risk areas in various economic, social, and industrial environments Zensar operates in.The ERM framework encompasses all the risks that the organisation is facing under different categories, such as Strategic, Operational, Financial, Compliance, and Cyber Security with each of these categories having internal or external dimensions. Systematic and proactive identification of risks and mitigations thereof enable effective and timely decision-making.

Key Components of ERM Framework

The Company adopted an integrated ERM framework that is being implemented across the organisation by the Chief Risk Officer and ERM team.

The Risk Management program covers end-to-end Risk governance processes, including identification, prioritisation, monitoring and reporting of risks affecting various business units and geographies. The Risk governance framework has been designed seeking professional advice from experts in risk advisory domain to ensure the framework is updated and aligns with the achievement of strategic objectives of the organisation.

Risk Governance

The Company has established a multi-level governance structure to monitor and report risks and risk mitigation activities. The Chief Risk Officer heads the Enterprise Risk Management function, which is responsible for formulation and deployment of risk management policies and procedures. This function provides periodic updates to the Executive Committee and quarterly updates to the Risk Management Committee on risks to key business objectives and their mitigation. It involves working closely with mitigation action owners in deploying mitigation measures and monitoring their effectiveness.

The Risk Council which has been formed with representation across functions and geographies, is responsible for ensuring the robustness, quality, and effectiveness of mitigation measures. It is also responsible for periodically evaluating and reporting impact of the mitigation plans, and identification of emerging risks for assessment and planning.

Risk Champions are responsible for identifying and mitigating the risks for their respective business units, functions, and geographies. They periodically evaluate outcomes of risk mitigation efforts and identify and report any emerging risks in their functions/units.

Enterprise level Risk Register

The ERM function has defined and implemented a multi-layered Risk Register. This includes risks at Organisational level, BU/ Function level, and Regional level. The common Risk Register at the Company level is available on the digital platform which provides role-based access, to enable risk-based decision making and reviews.

Risk Categories

Strategy and Strategy Execution: Risks arising out of strategy definition and successful execution of these strategies are covered in this category. For example, risks associated with the choice of the target markets, the Companys market offerings, and business models. Details of the Companys strategy are described in other sections of this document.

Operational: Risks arising out of internal and external factors affecting policies, procedures, people, and systems thereby impacting service delivery- for example, risk of business disruption due to natural calamities, and biological warfare/terrorist attacks with physical damage to assets & resources.

Compliance/Regulatory: Risks arising from potential litigations, violations to laws, regulations, and major regulatory/geopolitical changes.

Cyber Security: Risks arising out of potential breach of Companys network and possible impact on its operations. This includes risks of cyberattacks and data privacy breaches.


In order to effectively respond to the COVID-19 pandemic, Zensar set up a cross-functional core governance team chaired by the Managing Director and Chief Executive Officer, with representation from relevant functions within the organisation, and from global regions through the formation of Emergency Response Teams. The Company has used its in-house digital platform to provide features for Employees to mark themselves, as safe on the platform and seek help from Emergency Response Teams, if needed. All support has been extended to the associates impacted by this pandemic, including those who tested positive for COVID-19. Initiatives were also launched focusing on the overall wellness of associates, including online consultation and Telemedicine services, as well as weekly mindfulness sessions.

To effectively manage the operations during this crisis, the Company triggered its Business Continuity Management program, to ensure service continuity with minimal impact on service deliverables/delivery. With extreme agility the Company enabled 100% Remote Working for its associates across all regions globally, with heightened emphasis on the obligations and responsibilities of Associates when working remotely, and on the Information Security and Data Privacy requirements. It effectively used collaborative tools and digital platforms to ensure no disruption to associates/ clients engagement.

Travel and immigration related challenges faced by associates were resolved with utmost priority by the Global Mobility and Travel teams, in line with the guidelines issues by the local authorities. While revised policies were rolled out to enable remote working, the Internal Communications Team kept associates constantly informed on the rapidly changing health and safety, travel, and business continuity decisions. Associate learning and development continued to be a focus area with introduction of new modules for Virtual instructor-led VILT sessions.

As a part of its CSR initiative in the communities wherein your Company operates, it has contributed to various COVID-19 relief programs across the regions. A contribution framework was also established for associates to extend their support towards COVID-19 relief efforts.

Risk Management

During the year, the focus was on strengthening ERM framework across the organisation and institutionalising the risk management practices. Listed below are some of the key risks, anticipated impact and mitigations:

Key Risk Impact on Organisation Mitigations
Loss of Revenue/Cash flows and Market share, due to gaps in strategy identification and implementation Dynamically changing business environment and business consumption patterns, changes in client requirement portfolio, necessitates agile strategy identification and deployment. Failure to cope, may result in market share loss and adverse impact on business growth. • Defined strategy components and measurable KPIs on real-time basis which help drive course correction.
• Established mechanism for immediate and real time internal and external feedback.
• Strategy for new growth sectors, categories and offerings is reviewed, modified and updated on regular basis.
Risk of loss of revenue and market share due to damage to Companys reputation Reputational risk due to ethical behavioural issues, fraudulent activities, and sexual misbehaviour especially by senior management, and misrepresentation of facts due to malicious intention by external entities. Such reputational impact may result in business loss, losing customer trust, and negative impact on talent attraction index. • Mechanism of identified response team for dealing with such matters.
• Practice of regular and periodic internal communication on business ethics and Code of Conduct.
• Regular ethical/behavioural trainings and global compliance sign-offs.
• Succession plans for all key roles in place and regular reviews thereof.
• Strategy for appropriate communication plan for Media, Analysts, Investors, and Compliance regulators.
Risk of Business disruption due to natural and human- made disasters Impact on operations of the Company business as well as customer business. Customer technology spending may get affected leading to adverse impact on business growth, uncontrolled peaks in operational costs, if not controlled with agility. • Process in place for instating an approved Business Continuity Plan(s) for all major natural and people- made disasters.
• Protocols for formation of Regional Emergency Response Teams.
• Periodic training protocols for all/ managerial associates, internal and vendor communications for preparedness and awareness.
• Mechanism for post disaster support to affected associate(s), immediate plan for restoring any losses to physical and/or intellectual property(ies).
• Broad-based business mix and diversification across industry verticals. Companys offerings and propositions target different stakeholders in the customer organisation, covering discretionary as well as non-discretionary spends.
Impact upon growth objectives due to unsuccessful acquisitions Acquisition of companies with significant negative cashflow and P&L variation or nonalignment with overall Company strategy and growth outlook can lead to derailment of overall growth objective and business loss. • Established framework for evaluation of target companies.
• Process of joint creation of integration strategy/ roadmap for integrating solutions for Go-to-Market during due diligence phase.
• Well-defined framework for tracking of business metrics vs the objectives of acquisition.
• Course correction, as needed based on defined triggers in the business plan.
Loss of business and reputation due to violation of data security and privacy (Cybersecurity) In addition to impact on business operations, violation or security breach could result in reputational damage, penalties, and legal and financial liabilities. • Continual implementation and maintenance of industry best practices, data security and data privacy management system.
• Detailed program for employee awareness across the organisation on Information Security and Data Privacy requirements.
• Vulnerability Assessment and penetration testing in place for IT infrastructure and applications to strengthen overall cybersecurity posturing.
• Regular implementation of new security solutions to continuously enhance security posture based on security architecture using industry best practices.
Risk associated with geopolitical changes including labour and visa regulations. Fast changing regulatory environments in global market bring operational and resource provisioning challenges. Failure to comply will not only bring penalties and reputational damages but also directly impact business due to inability in timely fulfilment. • Appropriate measures to reduce exposure in place with the help of experts from professional agencies.
• Strategies to source local talent as required have also been put in place by the Company
High dependency on certain key customers With high client concentration, revenue growth may not be sustainable, and a change in customers strategy would have a far reaching impact on revenue, margin, and market share. • Processes in place to monitor customer strategies and align with customer priorities including technological change in customer environment.
• Constant de-risking by soliciting customers from different verticals and geographies.
Risk of regulatory noncompliance in absence of defined framework across geographies The fast pace of change in the regulatory environment creates operation challenges, and failure to comply, may lead to penalties or revocation of permission to do business in a territory or geography. • Deployment of global compliance program to monitor compliance and take necessary actions to mitigate risk with assistance from professional experts.
Risk of business obsolescence due to frequent changes in technology and business models Rapidly evolving technologies and consumption patterns are giving rise to new business models, hence increasing the demand on the Companys agility to keep pace with the changing customer expectations. Failure to cope may result in loss of market share and impact business growth. • Investment in building differentiated capabilities on emerging / digital technologies through reskilling, external hiring and regular involvement in events which would help understand market trend.
• Mechanisms to stay aligned to customers needs by constantly launching new service lines and technology solutions.
• Customer connect with trust factor - regular customer touchpoints to understand spends and relevance of Companys digital portfolio for long term and shortterm horizon.
• Suitable acquisitions and alliance partner ecosystems to fill the technology skill gaps.

Financial Performance

Zensars consistent performance in an otherwise competitive IT sector is a reflection of its ability to continuously create solutions that exceed customer aspirations. A visible and consistent growth in the Companys digital business has resulted in stable and consistent growth in the past fiscal coupled with its legacy business performance.

(INR in Lakhs)

Particulars FY 2019-20 FY 2018-19
Revenue 418,168 396,633
EBITDA 50,706 47,944
Return on net worth 12.6% 16.1%
EPS (Basic) 11.7 13.9
EPS (Diluted) 11.5 13.7
Debtor Turnover 5.4 5.2
Interest coverage ratio 7.2 12.9
Current Ratio 2.0 2.0
Debt Equity ratio 0.2 0.2
Operating Profit Margin 12.1% 12.1%
Net Profit Margin 6.5% 8.0%

Accounting principles consistently used in the preparation of financial statements are also consistently applied to record income and expenditure in individual segments.


Revenue for the year ended March 31,2020 is as under:


SEGMENT FY 2019-20 FY 2018-19
Application Management Services 351,518 334,692
Infrastructure Management Services 66,650 61,941
Total 418,168 396,633


Geography FY 2019-20 FY 2018-19
United States of America 307,023 298,239
Europe 66,301 56,865
Rest of the World 44,844 41,529
Total 418,168 396,633

Other Income

Other Income comprises dividends from mutual fund investments, interest on bank deposits, profit on sale of investments, net gain on financial assets mandatorily measured at fair value, interest on security deposit, net foreign exchange gain & loss on share buyback liability. Other income during the current year was INR 8,842 Lakhs as against INR 9,268 Lakhs in the previous year.

Share Capital

During the year, Company has allotted total 2,32,050 equity shares fully paid up of INR 2 each. Out of these, 22,000 equity shares were allotted under “2002 Employees Stock Option Scheme” and 2,10,050 numbers of equity shares were allotted under “2006 Employees Stock Option Scheme”.

Reserves And Surplus

The Companys Reserves and Surplus as on March 31, 2020 were INR 201,118 Lakhs as against INR 187,430 Lakhs in 2018-19. The Companys Other Reserves as on March 31, 2020 were INR 3,373 Lakhs as against INR 2,302 Lakhs in 2018-19.

Non-Current Borrowings

As of March 31, 2020, Non-current (long-term) borrowings were INR 6,537 Lakhs (Previous year INR 10,221 Lakhs).

The portion of current maturities of long-term loan amounting to INR 4,298 Lakhs (Previous year: INR 4,255 Lakhs) which is payable within twelve months, is shown under Other financial Liabilities.

Current Borrowings

As of March 31,2020, Current borrowings (Short term) borrowings is INR 22,321. Previous year ended March 31, 2019, it was INR 15,560.

Fixed Assets

During the year there is an addition of INR 6,569 Lakhs in Gross Block of Tangible Fixed Assets and addition of INR 1,969 Lakhs in Gross Block of Intangible Assets.

Return On Capital Employed

The return on capital employed (ROCE) for the year 2019-20 is 19.9%.


The position of outstanding debtors was:

Particulars FY 2019-20 FY 2018-19
Considered Good 66,564 87,621
Considered Doubtful 8,894 10,331
Allowances for Credit losses (8,894) (10,331)
Total Receivables 66,564 87,621

Cash and Bank Balances

The Cash and Bank Balances represent the Companys balances in banks in India and overseas. The Company also retains funds in the Exchange Earners Foreign Currency (EEFC) account in India, which is mainly used to meet the remittance requirements of the Companys branches and also for travel purposes. The Company possessed cash and bank balances (India and overseas excluding unpaid dividend) of INR 48,834 Lakhs as on March 31,2020.

Other Current Assets

Other Current Assets of INR 21,663 Lakhs (Previous Year: INR 32,781 Lakhs) consist mainly of unbilled revenue, prepaid expenses, advances to suppliers and statutory receivables as on March 31,2020.

Other Current Financial Assets

The Other Current Financial Assets comprise unbilled revenue, foreign exchange forward contracts and security deposits amounting to INR 29,762 Lakhs (Previous Year: INR 26,444 Lakhs) as on March 31,2020.

Other Current Liabilities

Other Current liabilities amounting to INR 8,485 Lakhs (Previous Year: INR 14,422 Lakhs) represent mainly unearned revenue, employee contributions towards provident & pension fund, statutory taxes.

Tax Expense

The Companys income-tax expenses is INR 10,419 Lakhs (Previous Year: INR 12,673 Lakhs).

Contingent Liabilities

Contingent Liabilities have been disclosed in Note 31 in the “Consolidated Financial Statement - Notes to the Accounts”.

Accounting principles consistently used in the preparation of financial statements are also consistently applied to record income and expenditure in individual segments.

Human Resources

The Company continues to offer professional development programmes for its employees, emphasizing on skill development and enhancing opportunities for career growth. Its Talent Management practices focus on engaging, developing and retaining the talent pool. With rapid changes in the industry, the Company is geared to make a mark, focusing on its vision, strategy and values:

Vision: Leaders in business transformation.

Mission: We will be the best in delivering innovative industry- focused solutions with measurable business outcomes.

Values: Customer Centricity; Commitment to People and Community and Continuous Innovation and Excellence.

HR Digitalisation

The Company embarked on a journey to make HR 100% digitalised. This has ensured that all HR process are available to associates on handheld devices at all the time. It also provides leaders access to HR metrics to make informed decision.

Organisation and Management Review

OMR is a comprehensive process to review the organisation structure and incumbents of key roles in the structure to ensure alignment to the overall strategy of the Company. This process also includes succession planning of key roles and development planning for Top talent that gets identified through this process.

Employer of Choice

Over the last few years, significant steps have been taken towards making Zensar- an Employer of Choice and thereby measure associate engagement. The Company partnered with Great Place to Work Institute, a globally recognised and widely used platform, to measure associate engagement. The Great Place to Work model measures engagement levels of associates through the levels of Trust, Pride, Respect, Fairness and Camaraderie prevalent in the organisation.

Associate Engagement Framework

It is a framework that identifies the drivers of Associate Engagement in the Company. These drivers work to build a sense of connect between associates and the organisation. Each driver of Associate Engagement is reflected in a list of actions that associates can expect to experience across locations, countries and regions.

Celebrating Diversity

Zensars philosophy on Diversity is to Include and Impact: Aligning Business, Diverse Talent and Societal Impact Goals. On this front, the Company decided to focus on one of the biggest challenges of the organisation - to build Leadership Pipeline with Diverse talent.

The diversity program embraces associates of different gender, age, nationality, backgrounds, experiences and physical ability and supports them to work collaboratively by creating a culture of Inclusivity. Diversity in the workplace is a norm and seen as an investment towards building a better business. As an organisation where one of the core values is Commitment to People and Community the diversity program embraces associates of different gender, age, nationality, backgrounds, experiences, physical ability, skill sets, expertise and supports them to work collaboratively by creating a culture of Inclusivity.

Diversity is implemented through the following key initiatives:

• Hiring of diverse workforce

• Developing Women Leadership

• Inroads to People with Special Abilities and LGBTQ+

• ENLIVEN to bring the Women in technology back in careers.

• Women mentoring

• Global Diversity & Inclusion Council

Key Achievements

ilnspire award for Best Practices in Gender Diversity in 2019

• Zensar featured in the 100 Best Company for Women in 2019 Working Mother & Avtar Best Companies for Women in India and ‘Exemplar of Inclusion in the Working Mother & Avtar Most Inclusive Companies in India (MICI) in 2018 and 2019

• Zensars ‘Women in Workplace case study won UN Global Compacts 3rd Best Innovative Practices Awards in March 2020

• Zensar Woman Leader awarded ‘Tech Beacon in WEQUITY Awards in February 2020

• Zensar Women leaders invited as speakers in Women In Data Science (WiDS)

• Hosted Round Table in partnership with WILL Forum in February 2020

• Participated McKinseys Women in Workplace study in 2019

• Active member is Women In Technology (WiT) Chapters in India and US

• Zensar partnered with WiT and presented RODNext and Gender Inclusion practices on ‘The Demo Day in June 2019 No Dot Policy - that ensures theres no Team without Gender Diversity in the organisation

Cautionary Statement

This Report to the Members is in compliance with the Corporate Governance Standard incorporated inter-alia, in the SEBI Regulations and as such cannot be construed as holding out for any forecasts, projections, expectations, invitations, offers, etc. within the meaning of applicable securities laws and regulations. This Report furnishes information as laid down within the different headings provided under the sub-head Management Discussion and Analysis, inter-alia, to meet the regulatory requirements.

For and on behalf of the Board of Directors
Place: Mumbai H.V. Goenka
Date: July 23, 2020 Chairman