Dear Members,
On behalf of the Board of Directors, I am happy to present the 35th Board's
Report of your Company with the Balance Sheet and the Statement of Profit and Loss for the
year ended March 31, 2023.
FINANCIAL PERFORMANCE
The Company's financial performance for the year ended March 31, 2023 as compared to
the previous financial year ended March 31, 2022 is summarized below:
(Rs In Crores)
Particulars |
Consolidated |
Standalone |
|
2022-23 |
2021-22 |
2022-23 |
2021-22 |
Revenue from operations |
1459.19 |
1201.05 |
733.27 |
578.51 |
Operating Profit before Other Income, Interest, Depreciation and
Tax |
242.56 |
193.27 |
120.99 |
101.86 |
Other Income |
38.71 |
26.33 |
28.80 |
20.87 |
Interest |
2.91 |
2.89 |
1.87 |
1.21 |
Profit before Depreciation and Tax |
278.36 |
216.71 |
147.92 |
121.52 |
Depreciation |
34.95 |
33.30 |
12.57 |
11.83 |
Share of profit of Joint Venture |
- |
(0.03) |
- |
- |
Profit Before Exceptional Items and Tax |
243.41 |
183.38 |
135.35 |
109.69 |
Exceptional items |
- |
8.67 |
- |
33.75 |
Profit Before Tax |
243.41 |
192.05 |
135.35 |
143.44 |
Provision for Taxation |
58.07 |
36.65 |
32.22 |
32.33 |
Profit After Tax |
185.34 |
155.40 |
103.13 |
111.11 |
Share of Minority Interest in Profit/(Loss) for the year |
(3.61) |
(2.08) |
- |
- |
Profit for the year |
188.95 |
157.48 |
103.13 |
111.11 |
The Company has prepared the financial statements in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015
read with Section 133 of the Companies Act, 2013, (the 'Act') and other relevant
provisions of the Act.
There are no material departures from the prescribed norms stipulated by the Accounting
Standards in preparation of the Annual Accounts. Accounting policies have been
consistently applied except where a newly issued accounting standard or a revision to an
existing accounting standard requires a change in the accounting policy hitherto in use.
Management evaluates all recently issued or revised accounting standards on an ongoing
basis. The Company discloses consolidated and standalone financial results on a quarterly
basis which are subjected to limited review and publishes consolidated and standalone
audited financial results on an annual basis.
OVERVIEW OF COMPANY'S FINANCIAL PERFORMANCE
The Company is a Digital Technologies, Operations, and Experiences company that
provides intelligent solutions for data- driven businesses to increase productivity and
enhance the customer experience. With a complete digital approach, Datamatics portfolio
spans across Digital Technology Solutions,
Business Process Management and Engineering Services powered by Artificial
Intelligence. It has established products in Robotic Process Automation, Intelligent
Document Processing, Business Intelligence and Automated Fare Collection. Datamatics does
business with global customers across Banking, Financial Services, Insurance, Healthcare,
Manufacturing, International Organizations, and Media & Publishing.
On a Consolidated basis, your Company achieved revenue from operations of ' 1459.19
crores, increased by 21.5% as compared to ' 1201.05 crores in the previous year.
Consolidated Operational profits were at ' 242.56 crores as compared to ' 193.27 crores
resulting into to an increase of 25.5%.
The revenue from operations on a standalone basis is ' 733.27 crores, increased by
26.8% as compared to ' 578.51 crores in the previous year.
Standalone Operational profits were at ' 120.99 crores as compared to ' 101.86
resulting into increase by of 18.8%.
DIVIDEND
The Company's Board has recommended total dividend of ' 5/- per equity share (i.e 100%)
of the face value of ' 5/- each which includes ' 3.75/-final dividend and ' 1.25/-
special dividend per share for the financial year ended March 31, 2023.
The recommended final and special dividend are in accordance with the Dividend
Distribution Policy of the Company approved by the Board at its meeting held on May 26,
2021 and is in terms of Regulation 43A of the SEBI Listing Regulations is available on the
Company's website at https://www.datamatics.com/hubfs/Investors/Corporate-
Governance/Dividend-Distribution-Policy.pdf.
TRANSFER TO RESERVES
During the year under review, the Company has not transferred any amount to General
Reserve out of the amount available for appropriation. However, credit balance of Profit
and Loss of ' 480.48 crores is transferred to Balance Sheet under the head 'Reserves and
Surplus.'
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
In terms of Section 125 of the Companies Act, 2013 ("the Act"), unclaimed or
unpaid Interim Dividend relating to the financial year 2015-2016 is transferred on 21st
April, 2023, further unclaimed or unpaid Final Dividend relating to the financial year
2015-2016 is due for transfer on 21st October, 2023 to the IEPF established by
the Central Government. More details are available on https://www.datamatics.com/about-us/investor-
relations/unpaid-unclaimed-dividend.
The Shareholders of the Company who have not received or encashed their dividend
warrants are requested to claim the unpaid/unclaimed dividend from the Company before its
transfer to IEPF.
The Members, whose unclaimed dividends/shares have been transferred to IEPF, may claim
the same by making an online application to the IEPF Authority in web Form No. I EPF-5
available on www.iepf.gov.in.
ACCEPTANCE OF DEPOSITS
The Company has not accepted any deposits during the Financial Year 2022-23 in terms of
Chapter V of the Companies, Act.
SUBSIDIARY COMPANIES
The Company has the following Indian subsidiaries (including the step-down
subsidiaries) as on March 31, 2023:
1. Datamatics Information Solutions Limited
2. Lumina Datamatics Limited
3. Datamatics Staffing Services Limited
4. LDR eRetail Limited
5. Datamatics Robotics Software Limited
6. Datamatics Foundation
7. Datamatics Cloud Solutions Private LimitedA
A Datamatics Cloud Solutions Private Limited was incorporated as JV Company with
CloudGrowth Pvt. Ltd. w.e.f. 15.12.2022.
Lumina Datamatics Limited acquired 100% stake in Diacritech Technologies Private
Limited on 30.04.2023 and accordingly Diacritech Technologies Private Limited become
step-down subsidiary of Datamatics Global Services Limited.
The Company has the following overseas subsidiaries (including the step down
subsidiaries) as on March 31, 2023:
1. Datamatics Global Services, Inc. (US)
2. Datamatics Infotech Limited (UK)
3. Datamatics Global Services Pty Limited (Australia)
4. Datamatics Global Technologies Limited (Mauritius)
5. Datamatics Global Technologies AG (Switzerland)
6. Datamatics Global Services FZ-LLC (Dubai)
7. Datamatics Global Services Corp. (Philippines)
8. Datamatics Robotics Software I nc. (US)
9. Lumina Datamatics Inc. (US)
10. Lumina Datamatics GmbH (Germany)
11. RJ Globus, Inc. (US)
12. Datamatics Global Services BV (Netherlands)
13. Lumina Datamatics UK Limited#
14. Sunrise Setting Limited (UK.)##
15. Lumina Datamatics Corp (Philippines)###
16. Datamatics Technologies FZ-LLC (UAE) $
#Lumina Datamatics UK Limited was incorporated as a wholly owned subsidiary of Lumina
Datamatics Limited w.e.f 06.06.2022.
##Lumina Datamatics UK Limited has acquired 70% stake in UK- based Sunrise Setting Ltd
w.e.f. 01.12.2022.
###Lumina Datamatics Corp was incorporated as a wholly owned subsidiary of Lumina
Datamatics Inc. w.e.f 18.01.2023.
$ Datamatics Technologies FZ-LLC (UAE) was incorporated as a wholly owned subsidiary of
Datamatics Global Services Limited w.e.f 17.03.2023.
Lumina Datamatics Limited acquired 100% stake in Diacritech Technologies Private
Limited (DTPL") on 30.04.2023 and accordingly DTPL become Wholly Owned
Subsidiary of Lumina Datamatics Limited and Diacritech Inc. (a subsidiary of DTPL) become
step down subsidiary of Lumina Datamatics Limited w.e.f. 30.04.2023.
None of the subsidiary companies other than Lumina Datamatics Limited is a Material
Subsidiary, within the meaning of Material Subsidiary as defined under the SEBI LODR
Regulations, as amended from time to time.
During the Financial year, the Company in partnership with CloudGrowth has incorporated
a Joint Venture Company viz. 'Datamatics Cloud Solutions Private Limited' ("Joint
Venture Company") on December 15, 2022 to bring their respective competencies
together and to jointly provide the services using Salesforce CRM platform and such other
related services through the said Joint Venture Company. The Company holds 77% of the
paid-up equity share capital of the aforesaid Joint Venture Company.
During the financial year, your Company has incorporated a wholly owned subsidiary
company Datamatics Technologies FZ-LLC" in Ras Al Khaimah Economic Zone
(RAKEZ), UAE on 17.03.2023.
In accordance with Section 129 (3) of the Act, the statement containing salient
features of the financial statements of the subsidiaries in Form AOC-1 is given in the
financials section.
Pursuant to the provisions of Section 136 of the Act, the Financial Statements of the
Company including Consolidated Financial Statements along with relevant documents and
separate Audited Financial Statements in respect of subsidiaries are available on the
website of the Company www.datamatics.com.
SHARE CAPITAL
As on March 31, 2023, the paid-up share capital of the Company is Rs 29.48 crores
divided into 5,89,49,337 equity shares of Rs 5/- each fully paid up. During the year,
there has been no change in the paid- up share capital of the Company.
The authorized share capital of the Company as on March 31, 2023 is Rs 98.15 crores.
Reclassification of certain promoters of the Company to public shareholders
The Board of Directors of the Company had received a request letter dated May 09, 2022
from Mrs. Aneesha Dalmia and Mrs. Amrita Bhogilal, persons forming part of promoter group
seeking re-classification of their shareholding from 'Person belonging to the Promoter
group' to 'Public' category under Regulation 31A of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI
Listing Regulations") as amended and other rules, regulations and guidelines as
applicable in this regard.
The Board of Directors of the Company at their meeting held on May 12, 2022, considered
and approved the re-classification request of Outgoing Promoters and filed
reclassification application with Stock Exchanges for their approval in compliance with
SEBI Listing Regulations. Subsequently, the Company has withdrawn the said application
filed with Stock Exchanges and intimation was given to Stock Exchange regarding this
withdrawal on June 27, 2022.
EMPLOYEE STOCK OPTION SCHEME
The Company currently has one Employee Stock Option Scheme in force, namely,
"Datamatics Global Service Limited's Performance Based Employee Stock Option Plan
2022 ("PSOP 2022") which was approved by the members of the Company by way of
Postal Ballot through remote e-voting process on March 14, 2022.
PSOP 2022 is in compliance with SEBI (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021 ("ESOP Regulations"), as amended from time to time.
The disclosures in compliance with Section 62 of the Companies Act, 2013 read with Rule
12 of Companies (Share Capital and Debentures) Rules, 2014 and ESOP Regulations is
available o n t h e w e b s i t e o f t h e C o m p a n y a t https://www.datamatics.com/about-us/investor-
relations/financials
The Certificate from M/s Tushar Shridharani, Secretarial Auditor of the Company as
required under ESOP Regulations confirming that the Company's PSOP 2022 has been
implemented in accordance with the ESOP Regulations and resolutions passed by the members
of the Company, is provided as "Annexure C" to this Report.
BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Retirement by Rotation
In accordance with the provisions of the Act and the Articles of Association of the
Company, Dr. Lalit S. Kanodia (DIN - 00008050) - Chairman & Whole-time Director,
retires by rotation at the ensuing Annual General Meeting ("AGM") and being
eligible offers himself for re-appointment.
Change in Directors
Brief particulars and expertise of directors seeking appointment/re-appointment
together with their other directorships and committee memberships have been given in the
annexure to the Notice of the 35th AGM of the Company in accordance with the
requirements of the Listing Regulations and Secretarial Standards.
Mrs. Asha L. Kanodia has tendered her resignation as NonExecutive Director of the
Company effective from closing of business hours on April 28, 2022.
Key Managerial Personnel (KMP)
During the year under review, there was no change in the Key Managerial Personnel of
the Company.
In terms of the Companies Act, 2013, the following are the KMPs of the Company as on
March 31, 2023:
Dr. Lalit S. Kanodia, Chairman and Whole-time Director
Mr. Rahul L. Kanodia, Whole-time Director designated as Vice Chairman and CEO
Ms. Divya Kumat, EVP, Chief Legal Officer & Company Secretary
Mr. Sandeep Mantri, EVP & Chief Financial Officer Declaration by Independent
Directors
The Company has received declarations from all the Independent Directors of the Company
confirming that they met the criteria of independence as prescribed under Section 149 (6)
of the Act and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ("SEBI Listing Regulations").
The Board of Directors of the Company is of the view that all the Independent Directors
fulfils the criteria of independence and they are independent from the management of the
Company. All Independent Directors of the Company have confirmed that they have registered
themselves with Independent Directors' Database of IICA and will appear for the online
proficiency test of IICA, if applicable.
MEETINGS OF THE BOARD
During the financial year, five meetings of the Board of Directors were held, the
details of which are given in the Corporate Governance Report of the Company, which forms
part of this Report. The maximum interval between any two meetings did not exceed 120 days
as prescribed under the Act.
BOARD AND COMMITTEE EVALUATION
The Companies Act, 2013 and SEBI Listing Regulations contains broad provisions on Board
Evaluation i.e. evaluation of the performance of (i) the Board as a whole, (ii) individual
Directors (including Independent Directors and Chairman) and (iii) various Committees of
the Board.
Pursuant to the said provisions, the Board has carried out the annual performance
evaluation of the entire Board, its Committees and all the Directors based on the
parameters specified in the Report of Corporate Governance.
A separate meeting of Independent Directors was held to discuss the performance of
Non-Independent Directors, Board as a whole and the Chairman after considering the views
of Executive Directors and Non-Executive Directors.
Company's policy on Director's appointment and remuneration:
The Nomination and Remuneration Committee had laid down criteria for determining
Directors Qualification, Attributes and Independence of a Director, remuneration of
Directors, Key Managerial Personnel and other employees and criteria for evaluation of
Directors, Chairman, Non-Executive Directors and Board and the evaluation process of the
same. The policy may be accessed on the Company's website at https://www.datamatics.com/hubfs/Investors/Corporate-Governance/Nomination-and-Remuneration-Policy.pdf
FUTURE GROWTH STRATEGY
With businesses returning to normalcy, there is a robust demand environment across
segments and industries Datamatics operates. Datamatics priorities for the coming year
include supply and talent integration, focus on the US market, and tightly managing cash
flows.
Supply and talent integration is an important piece to driving future growth. The whole
IT sector today is going through a challenging time regarding people and talent
availability. The company has taken several steps in stepping up its recruitment efforts
and continues to invest in hiring, training, and upskilling all the employees.
Focus on the US market - Datamatics has extended the US sales force to focus on digital
transformation opportunities, including intelligent automation products, TruBot RPA and
TruCap+ IDP. The company has recently received excellent ratings from global customers
operating in the space. Basis this, it remains confident of the market opportunities in
intelligent automation as a critical driver for growth.
Diving deep in Digital - Digital transformation is omnipresent across enterprises,
geographies, and industries. Datamatics will align its solutions under three pillars -
Digital Operations, Digital Technologies, and Digital Experiences.
Datamatics will deploy deep technologies to enhance and drive digital operations in
areas like finance & accounting, banking process management, insurance process
management, publishing, etc., to increase productivity and customer experience.
Datamatics has established Centre of Excellence in deep digital technologies, such as
Cloud, Digital Workplace, DevOps, Intelligent Automation, Artificial Intelligence, etc.
The company will continue to strengthen its footprint in these technologies in the years
to come.
Datamatics will continue to invest in developing and updating its IP solutions in the
digital technology space. It is expanding its partner network and believes that the
evolving partner ecosystem will increase the sales momentum and ensure smooth
implementation and support for Datamatics IP solutions globally.
Datamatics has also been focusing on new-age Digital Technologies like the open loop,
NFC, contactless mobile ticketing in Automatic Fare Collection, and Smart transport as
growth areas across the globe and will continue the focus.
With Digital Experiences, Datamatics helps enterprises take significant strides toward
their digital and customer experiences goals.
Datamatics will scale talent globally, invest in employees and accelerate innovation
and digital capabilities to capitalize on the expanding market opportunities. The company
sees enormous potential to engage and partner with customers to help them go 'deep in
digital' to enable transformation.
KEY BUSINESS DRIVERS FOR DATAMATICS IN FY 2022-23
Products & Platforms: Datamatics Intelligent Automation Platform (IAP) is a
unified platform to automate a series of tasks, processes, and unstructured and
semi-structured data in documents. The IAP combines the capabilities of TruBot for Robotic
Process Automation (RPA), TruCap+ for Intelligent Document Processing (IDP) along with
artificial intelligence (AI)/machine learning (ML) models developed by Datamatics. Apart
from this, Datamatics has developed iPM for end-to-end workflow management, TruBI
for business intelligence & data visualization, and TruFare for Automatic Fare
Collection. All these products and platforms are getting good traction in the market.
Automatic Fare Collection (AFC): This has been a focus area for Datamatics, with
it being the only Indian company to have highly evolved AFC, Smart Gates, and Contactless
Gates service offerings. Datamatics sees this as a vast opportunity in the US and emerging
economies worldwide, including India. Recently Phase 1 of Mumbai Metro (Line 2A and 7) has
become operational, for which Datamatics has implemented Automatic Fare Collection (AFC)
system. Datamatics has made significant progress on phase 2 of Mumbai Metro (Line 2A and
7) and Memphis Area Transit Authority (MATA), the public transportation provider for the
Memphis area, USA. In FY 21-22, Datamatics won the AFC contracts for Delhi - Meerut RRTS
Corridor by National Capital Region Transport Corporation (NCRTC) and for Kolkata Metro by
Rail Vikas Nigam Limited.
Digital Solutions - Intelligent Automation, Digital Experiences, Cloud:
Datamatics is well-positioned to implement digital technologies, such as Intelligent
Document Processing, Robotic Process Automation, Digital Experiences, Analytics, Cloud,
and Artificial Intelligence for its customers. Datamatics, with its experience and
expertise, has carved a niche for itself towards becoming a strategic partner to its
valued customers and offering intelligent solutions that will enable businesses to further
evolve by improving productivity and enhancing customer satisfaction. In FY 23, Datamatics
continued to make significant efforts and investments to strengthen its digital footprint.
Account Penetration: Datamatics has customers across industries;many of these
are Fortune 500 companies. Datamatics focuses on deeper penetration within the customer
accounts through account management for cross-selling and up-selling through its
integrated sales and marketing efforts.
Branding & Marketing: Datamatics has been investing in marketing and
branding efforts for increasing visibility, strengthening digital footprint and geographic
reach. In FY23 Datamatics engaged with prospects and customers through virtual seminars
and digital campaigns.
QUALITY
Quality forms the backbone of everything we do. It is an unnegotiable ingredient of the
way a process, service and product is conceived, designed and delivered. A relentless
focus on Customer delight, continuous process improvements and lean and efficient
processes have been the hallmarks of the company for years. This is what provides us an
edge over our competition, far and wide. A look at the average duration a customer has
been happily associated with Datamatics is an eloquent testimony to our untiring
commitment to quality. In the challenging and constraining Covid 19 and post Covid times,
our team members stepped up their efforts and left no stone unturned to ensure that the
customers continue to receive same level of stellar support as the previous normal times.
Quality at Datamatics is a legacy that is being ably carried forward by the present team
as well. The industry has also been recognizing the company's performance. This year too,
your company and its personnel featured prominently at various platforms by winning
prestigious awards.
Your Company is the first and the only I.T. Company to have won the "International
Asia Pacific Award" for Quality in services sector in the year 2007. The Award was
won against competition from hundreds of companies from 38 countries spread across the
world, including the US, Japan, Australia, New Zealand, Russia,
Canada, China, Israel, South Korea, Peru and Mexico. Your Company also won the
prestigious "IMC IT Award for Quality" in January 2014. We have won the Global
Quality Challenge award of one of the fortune 100 organizations for the ninth time.
Further significant initiatives of the Company towards quality are:
1) Certifications
The Company's quality management systems (QMS) that forms the backbone of all the
processes and the way day-to-day operations are carried out is a very comprehensive and
robust standard that draws from a host of international standards and benchmarks. This
includes ISO 9001:2015, SEI CMMI, ITIL, Agile, ISO 20000 and so on. Your Company has been
recommended assessment at the highest maturity level, Level 5 for CMMI Ver 2.0 SVC model.
This covers almost all the locations and services that we cater to. The QMS has also been
successfully assessed and certified for ISO 9001:2015. During all the surveillance
periodic assessment audits, there has been no major non-conformity observed. All the new
centers that we added in the financial year have also been successfully assessed and
certified to the above international standards.
As you are aware, with the growing complexity of the digital economy and the present
pandemic situation where we have been forced to switch significantly to work from Home
model, the threat on the information security and data also increases in terms of
complexity and impact. Your company is fully aware of this challenge and we constantly
keep upgrading our information security management systems (ISMS). Our operations and ISMS
have been successfully assessed and are compliant to ISO 27001:2013, SSAE 16 SOC 1 and
SOC2 requirements. As you would be aware, these standards are extremely important for
Financial, Insurance and Healthcare industries. The Livonia and Philippines operations
have also been successfully assessed and certified to PCI-DSS requirements. The IPR
products, TruCap+ and TruBot have also been successfully assessed for SOC2+ requirements.
Our commitment to ensure a robust information security management system for our
customers has been bolstered by these certifications. We have implemented Security
Information and Event Management (SIEM) solution as well which will further strengthen the
Information security management. During the COVID 19 lockdown and remote working
methodology, there has been a palpable increase in the threat to information and data
security. Pre-empting such threats we have secured our networks further, addressed end
point vulnerabilities and implemented mechanisms and tools to address advanced persistent
threats (APTs) from all kind of malware attacks. The company recently implemented EDR (End
point Detection and Response) and MDR (Manage Detection and Response) solutions to further
enhance our preparedness to any malware threats. We also implemented (MFA) Multiple Factor
Authentication solutions to further enhance access and security controls around sensitive
data and information being processed by the company. Vulnerability and penetration tests
(VA/PT) are carried out regularly through internal as well as external agencies to make
sure that our networks and servers are robust to any malicious attacks. There is an
increased focus on employee awareness around information security as well for proactive
and preventive measures to thwart any malicious attack. There is a conscious thrust on
risk management as an organization strategy and the risks and mitigation plans are
reviewed regularly at all pertinent levels.
A lot of thrust has also been put in enhancing the overall project management skills of
our project managers through formal PMP certification from PMI, USA.
GDPR REGULATIONS AND DATA PRIVACY ACT
As you would be aware, General Data Protection Regulations (GDPR), the most important
regulation around data privacy in the European Union region came into force a couple of
years back. All our contracts with the customers in the EU region have been revised to
incorporate the requirements of GDPR. Our processes have been further strengthened around
the GDPR requirements. A dedicated Data Protection Officer (DPO) has been appointed to
address issues, if any, raised around GDPR compliance. All the relevant employees and
management have been trained on GDPR principles and requirements. GDPR awareness is an
integral part of the employee induction program.
We are also gearing our processes to address all the requirements of the Data Privacy
Act of India. We plan to get assessed and certified to Data Privacy standard, ISO 27701.
2) Customer Satisfaction Tracking
As you're aware, your Company conducts customer satisfaction surveys at the end of
every major milestone to assess customer's perception of our services. The wholly
automated survey asks the customers their feedback on a range of parameters that measure
their near and long term perception about the Company.
We feel proud to share with you that we continue a stellar performance on this count.
Your company scored 5.4 on overall satisfaction rating on a scale of 1-6, 1 being the
lowest and 6 being the highest. Another highlight of this survey has been that 87% of the
respondents have rated us in the top 2 boxes of the rating i.e. extremely satisfied and
Delighted. 64 customers have rated us as delighted on all the parameters. 66% of
respondents expressed "Insist and "Prefer" to work with Datamatics
on Quality of Engagement questionnaire. We believe that in the modern environment Customer
Experience i.e. the impression that our customers make during their interaction with us,
is extremely critical. Customer Experience, apart from the feedback on the hard
deliverables, is an integral part of these surveys. We are glad to share that the results
are extremely positive on this front.
Apart from this, the more frequent and real time Customer Feedback Capture mechanism
that captures feedback through other formal and informal channels also reports an
improving trend in the customer sentiment towards our processes and performance.
3) Continuous Improvement - Lean Six Sigma
The Company has a mature and well-entrenched continuous improvement program. This
program is based on the principles of Lean, Six Sigma and Kaizen. The program focusses on
making our processes more efficient, productive, accurate and cost effective. The program
continues to deliver significant benefits to the organization with improvements in
productivity, efficiency, accuracy and customer satisfaction. Overall 480 Lean Six Sigma
projects and 2080 Kaizens were successfully completed since 2007.
The Company has about 30 Six Sigma Green Belt and 60 Six Sigma White Belt certified
professionals along with 6 Six Sigma Black Belt and 1 Six Sigma Master Black Belt
certified professionals.
HUMAN RESOURCE MANAGEMENT
In 2022-2023, we continued to make positive headway in a challenging year of 'Great
Resignation' and the hybrid ecosystem being established across the organization. As a
leading technology company, we attract diverse, skilled, educated, and certified
people across the globe. As of March 31, 2023, Datamatics employed more than 9100
employees worldwide.
Human resources oversee the most complex component of a successful business - a
trained, productive and thriving workforce. Business success is directly proportional to
people's success.
Our Global Annual Climate Survey was conducted with 87% participation, higher than last
year's 85% participation. Clear positive strides in terms of Organizational Culture and a
healthy work environment were made as Datamaticians recognized as an 'Employee Friendly'
organization three years in a row.
Committed to the cause of Upskilling and taking our Campus Connects a step ahead, we
took consistent steps for a more sustainable Industry-Academia collaboration to explore
possible synergies. The Datamatics Leadership team, local HR teams and identified
institutions of repute connected, invested time and collaborated to work towards a
Fellowship Association in India (across locations) and the Philippines.
Our consistent efforts were recognized on diverse platforms globally:
Datamatics won the prestigious WEPs Awards to promote Transparency and Reporting
Initiatives as Private Sector Champions (2nd runners-up in UN Women WEP - India).
In the Philippines - Circle of Excellence for 'Wellness Company of the Year' at
the 13th Asia CEO Awards
In India - Maharashtra State Best Employer Award was conferred to Datamatics, a
team AWARD (Winner for Best Employee Engagement Strategies) and a recognition for Best use
of Tech in HR across multiple Industry Summit and Conclaves.
TALENT ACQUISITION
The Financial Year 2022-23 has been better as compared to the previous financial year
in terms of lower volatility and higher stability. The demand of talent and aggressive
acquisition strategies by the industry players, and volume hiring by bigger organizations
has stabilized to some extent.
The team has managed to sustain and further increase the hiring numbers, maintained
good SLAs and productivity. Hiring of Gig workers has increased as compared to the
previous year. The US market has stabilized considerably, however niche and key talent
continue to remain in high demand.
The team delivered on the strategies adopted and planned initiatives to meet the
defined goals. On Sourcing, the team continued to prioritize in connecting with maximum
candidates through a variety of sourcing channels, both traditional and emerging. Hiring
managers were engaged and the team managed to yield maximum interviews from them, right
from increasing daily interviews to planning virtual interview drives.
The candidate engagement process was strengthened to build enthusiasm and excitement
for the candidate. Every potential or offered candidate was finely engaged at an
individual level regularly by the team.
The team continued to add new vendor partners across geographies. The network has been
actively utilized to maximize the spread of required closures.
The Talent Acquisition (TA) Team has continued to leverage the data & analysis
build up on the talent mapping exercise of the competitors related to the DGSL service
offerings, products and vertical specialization. This has been executed for all business
offerings i.e. IT services, BPM, Intelligent Automation, Engineering
Services, CMS and Market Research.
The TA Team has continued to execute regular real-time data analysis of the industry
data, candidate expectations, market trends and alternatives and inform the hiring
managers time to time, for them to be able to take quick decisions around hiring.
The team on-boarded a total of 4688 resources in 2022-23. Compared to the industry, the
team managed an exceptional offer-joining ratio higher than the industry index.
The team has stayed ahead of the curve, with eminent industry practices relevant to
resume sourcing, assessments, interviewing, background verification, negotiations and
candidate engagement. Innovation has been the guiding principle towards relentless
improvement, and the team has employed avant-garde strategies like brand-driven job posts,
video interviewing, passive candidate engagement, research, social media usage, industry
intelligence and effective referral programs. It has also been a continuous effort to
establish Datamatics as an Employer of Choice, through powerful messaging around the key
Employee Value Proposition.
LEARNING & DEVELOPMENT
Datamatics DAT (Develop-Aspire-Transform), our learning buddy, has provided us with a
plethora of learning opportunities and continued to enable and deliver world-class
learning experiences for us to leverage on. Enlightening our learning pathway with focused
business & product sessions, our daily Learning Web Series, various Learning
interventions, our in-house LMS platform and many more. L&D has continued to reinforce
and strengthen the learning culture globally.
Prominent learning interventions have been (Sr) Leadership Executive coaching and
assertiveness for the identified seniors has strengthened the coaching culture and
reiterated the importance and nuances of Performance Conversations #Thinking Differently
workshop focused on making our leaders think differently, especially when the industry
space requires a different mindset altogether covering over 150+ employees. SEED The
Structured Employee Education & Development (SEED) program targeted freshers's
equipping them with essential learnings on C#, SQL, Angular, Corporate Etiquette, Time
management, Effective Communication and Email Etiquette. Employees benefitted from the
session and leveraged the opportunity.
Digital Learning
Learning Management System: Our in-house LMS platform eShiksha has been renamed
to "Elevate"- Limitless Learning! It comes with a sleek user friendly interface,
Learning Badges, dynamic dashboards and easy navigation. Elevate continues to offer over
150+ learning modules available on Pulse 24/7 for us to leverage.
Future Skills Prime (FSP) continues to bring together best-inclass global
providers of content and learning along with renowned subject matter experts from the
industry for a seamless and continuous learning experience for all our learners in India.
We currently have over 2128 employees registered and utilizing the platform, where 516
badges were procured. Datamatics Product modules (TruBot Designer & TruBot Cockpit)
are live on the FSP platform
Learning Web Series (LWS): conducted daily theme-based sessions encompassing all
development programs and learning activities with over 269 sessions conducted. These
efficient & effective outputs of sessions helped employees to have a robust learning
culture.
With the objective to stay up-to-date with the current industry trends by
enhancing the Site core JSS and SQL Server Reporting Services (SSRS) Training on the topic
of the Power BI, which has helped our employees understand/pick up the latest technology
trends quickly and thus achieve faster turnarounds and providing the knowledge to create
SSRS reports which resulted in productivity improvement.
Learning@Datamatics continues to stay compliant by successfully completing various
external audits, i.e. IQA, ISO, Client Audits, ISMS Audits, CMMi SVC L5 2.0 etc.
Learning & Development function saw a 128% increase in overall person Learning
hours achieved, which is 3,74,149 person-hours compared to 2,93,437 person-hours of last
FY with average feedback of 4.3 out of 5.
TALENT MANAGEMENT
Throughout the year, the HR Centre of Excellence continued to focus on building
Diversity, Equity & Inclusion (DEI) in the workplace, Employer Branding and CSR
initiatives while supporting all aspects of 'Talent Management' internally.
Towards a performance-driven culture focused on development - We launched the
pilot Datamatics Mentoring Program (DMP) as the Support Squad for some of our key Talent
globally. Cohort-based Focused Leadership Workout sessions were conducted for the
Leadership team by partnering with Industry and Assessment experts. Competency-based focus
and sessions for all key Talent interventions.
'Appreciate with Badges', through our online peer-to-peer recognition platform,
globally, more than 2000+ unique Datamaticians were appreciated with 7000+ badges which
have been well accepted and appreciated by the Talent@Datamatics.
D&I :
'Coffee, Cakes and Candid Chats', a DDC initiative conducted by CHRO, the IWD
theme #BreaktheBias at our US and Philippines offices.
'Welcome Back: Post Maternity second innings' with CHRO, in-person interactive
sessions with our returning mothers and valued professionals, with a token of
appreciation, as they return to Corporate from their Maternity break.
Focused (Wo)Mentoring sessions with International speakers were structured in a
hybrid setup.
Multidimensional Datamatics Wheel of Wellbeing for all, with focused sessions
including Emotional and Mental Wellbeing were organized throughout the year.
Investing in our Campus Engagement and Outreach Programs across geographies
(including the US and the Philippines) to get the best young Talent while aiding
employability.
The team maintained regular positive communication, ensuring positive visibility
and increasing Datamatics' social across all existing channels, themes like DEI, CSR &
Mental Health
CORPORATE HR
At Datamatics, we value and engage our people to make them feel respected and valued.
Employee relations generally remained cordial during the year. The successful
transition to a hybrid workforce was the hallmark of focusing on employee
engagement. Increased collaboration between various LOS, corporate functions, and amongst
all levels of employees has been adopted.
The key initiatives undertaken during the year are highlighted as follows:
Datamatics continued its focus on promoting the Apprentice Program: In addition
to the NAPS apprenticeship, we launched the Board of Apprenticeship Training (BOAT)
apprenticeship model across the organisation. Both BOAT and NAPS consist of basic and on-
the-job training (OJT)/practical training at the workplace. The organization also
participates in the state-level apprenticeship program in Maharashtra to train new job
seekers through Employment Promotion Programme (EPP). As of 31 March 2023, the company had
trained 1863 apprentices across various locations.
The company has seamlessly transitioned to the Hybrid workforce and is
leveraging it with the enablement of the remote on-boarding process and weekly employee
connect program.
Regular employee connects sessions with the remote employee ensured the closing
of 17,500 queries.
The HR function has been successfully using the ticketing system to resolve
employee's queries.
MPOWER session was organized for Project and Delivery Managers across the
location. The program empowered the managers to reflect on key insightful data to handle
the team and provided tools to become better managers.
The Bonding Time session was institutionalized across the locations. The session
with the new joiners helped the organisation to bridge the identity gap with the remotely
working employees. Being a socially conscious and Community driven organization, we
welcomed New Joiners with a canvas bag from the Shraddha Charitable Trust, Mumbai, which
provides vocational training to autistic & mentally challenged young adults.
Employee-friendly flexi components were introduced in the CTC structure. It
brings an attractive tax-saving avenue to plan the CTC pay-outs for the year effectively.
Monthly engagement activities were organized across locations throughout the
HRBPs. The Women's Day celebration received enthusiastic participation. The
company-sponsored picnic ensured great Team bonding and spirit throughout the year.
The focus on the R&R program and Euphoria were the key drivers for the
employee engagement.
This year, the focus for HR automation was Key internal HR processes. The New
Joiner Portal, Employee Separation, and FFS modules were enhanced. The employment letter
issued at the time of exit was digitized.
Excellent Scores in the PS Client audit ensured our commitment to the client
service standards.
US and Overseas HR Operations
US HR continues to be a strategic business partner for all lines of business while
providing US-based knowledge to maintain compliance with US laws and support global
business needs.
The US team continues to deliver a significant chunk of the business, specifically in
our Tax area, which profits increased significantly in 2022. The USHR team supports such
Talent recruitment, on boarding, retention, and rewards. US looks to increase our
overall brand awareness intensely. USHR partnered and successfully delivered PSI business.
Process audits were conducted, and improvements were implemented to save company costs.
Under compliance, policies were updated, pay practices monitored, and benefits
administration enhanced. USHR moved to a hybrid model for the workforce, 3 days a week,
hoping to re-energize the talent. USHR continues to support and reward talent through
various internal resources.
Philippines Human Resource Operations
The BPO and IT-BPM industry in the Philippines has become a significant driver of the
country's economic growth, providing employment opportunities, boosting foreign
investment, and contributing to the nation's GDP. With its skilled workforce, cost
competitiveness, and strong government support, the Philippines continues to be a
preferred outsourcing destination for global businesses, positioning itself as a global
leader in the BPO and IT-BPM industry.
Roadmap/Growth Forecast: The BPO industry in the Philippines is expected to continue
its upward trajectory, driven by increasing demand for outsourcing services, continued
investment in technology and infrastructure, expansion into emerging markets, and
upskilling of the workforce, positioning the Philippines as a top BPO destination in the
global market
Datamatics Global Services Corp as a Customer Management Solutions provider has
contributed to the BPO industry through its customer-centric approach, state-of-the-art
technology, and highly skilled workforce. It has helped businesses improve their customer
service operations, increase customer satisfaction, and enhance their overall customer
experience, contributing to the growth and success of the BPO industry in the Philippines.
HR Operations
HR Operations has achieved significant milestones from April 2022 to March 2023,
showcasing their dedication and commitment to enhancing various areas of HR operations. In
the realm of data management, establishing and implementing the New Joiner's Portal
process in Pulse has streamlined the onboarding experience for new hires, enabling them to
access mandatory courses efficiently. Additionally, implementing the HB6 and BVF process
for background checking has enhanced the hiring process.
In the domain of Compensation and Benefits, HR Operations has successfully conducted
the HDMF Loyalty Card Onsite ID Capturing and Annual Physical Exam for employees across
all sites. Timely processing of sickness and maternity reimbursements, R1A, ER2 for new
joiners, and ESC issuance for all movements highlights the department's commitment to
employee well-being.
The Employee Relations team has demonstrated their efficiency in handling employee
issues, with no lost labour cases and timely completion of clearance deadlines.
Collaboration with the IT team to establish a retrieval process and assist in covering and
resolving all IRs across departments and campaigns showcases their proactive approach.
The Payroll team has implemented efficient processes for timesheet management, final
pay computation, and submission of CTC reports on time. Additionally, their prompt
assistance with clients' queries and compliance with BIR deadlines highlight their
attention to detail.
Overall, the HR Operations' achievements demonstrate their commitment to operational
excellence, employee well-being, and efficient data management, significantly impacting
the organisation as a whole.
Learning and Development & Employee Engagement
The Learning and Development (L&D) achievements for FY 202223 have been remarkable,
with the entire L&D team at CMS and Datamatics driving significant progress in
employee development and engagement. The year started with a focus on compliance courses,
particularly Corporate ISMS, followed by creating content for the Prevention of Sexual
Harassment in the Workplace for the Philippine region. The integration of AccessFares Hub
to CMS in the Philippines and India streamlined processes and improved efficiency.
L&D's contributions in designing and implementing language proficiency assessments
for team recruitment, creating comprehensive policies, and facilitating training sessions
on leadership and professional development have been instrumental in enhancing the skills
and knowledge of employees. The successful implementation of Alison.com as an additional
platform for self-improvement and professional development has provided employees with
access to valuable resources at no cost. The pilot sessions for client ETS and the
recognition of Datamatics CMS Philippines as the Wellness Company of the Year at the Asia
CEO Awards are noteworthy achievements.
The Professional Development Convocations, newsletters, and training evaluations have
highlighted employees' dedication to enhancing their skills and knowledge. The Fit to Lead
Bootcamp is a strategic initiative to prepare future supervisors with essential skills and
certifications. Overall, the L&D achievements in FY 2022-23 have positively impacted
employee development, engagement, and satisfaction, contributing to the success and growth
of CMS and Datamatics. The continued commitment to learning and development will propel
organisations to achieve greater heights.
Employee Engagement
April to August 2022 was a period of exciting and engaging activities for CMS
Philippines employees. From hiking at Mount Kulis to tree planting at La Mesa Nature
Reserve, from celebrating Women's empowerment to promoting LGBTQ+ inclusion during Pride
Month, from financial wellness webinars to nutrition sessions, and from smoking cessation
seminars to employee recognition and sports events, CMS Philippines prioritised the
well-being and engagement of its employees.
These activities provided opportunities for relaxation and bonding and promoted a
healthy lifestyle, personal development, and a positive work environment. CMS Philippines
showed its commitment to employee engagement and wellbeing through these initiatives,
recognising the importance of creating a workplace where employees feel valued, supported,
and motivated to perform at their best.
The participation and enthusiasm shown by CMS Philippines employees in these events
highlight the organisation's strong team spirit and camaraderie. The company's efforts to
provide a conducive environment for employees to grow personally and professionally have
undoubtedly contributed to a positive work culture and improved employee morale.
As CMS Philippines continues to prioritise employee engagement and well-being, it is
evident that these initiatives significantly impact employees' overall satisfaction and
productivity. By fostering a positive and inclusive work environment, CMS Philippines
demonstrates its commitment to its employees' success and happiness.
Talent Acquisition
The talent acquisition team has achieved significant accomplishments in various hiring
areas. They have successfully processed several high-volume hirings, niche position
hirings, support function hirings, and back-to-back hirings, showcasing their ability to
handle diverse hiring needs. The team's impeccable adherence to schedule resulted in a
100% adherence rate, ensuring all hiring activities were completed as planned. With a
remarkable 95% fill rate, the team was able to fill critical positions, demonstrating
their efficiency in identifying and securing top talent. The high job offer acceptance
rate of 95% is a testament to the team's ability to attract and retain quality candidates.
Additionally, the team's timely hiring contributed to the successful start of new
projects, highlighting their impact on the organisation's overall productivity and
success. Overall, the talent acquisition team's achievements highlight their exceptional
performance and effectiveness in acquiring top talent for the organisation.
Corporate Social Responsibility
Corporate social responsibility (CSR) activities have become increasingly important for
companies to create a positive impact on society and the environment while contributing to
sustainable development. Datamatics' CSR activities reflect a commitment to social
responsibility, employability and environmental sustainability. The company's initiatives
include relief operations for those affected by natural disasters, providing access to
clean water, and promoting education.
Campus partnership, our initiative in building connections with reliable campuses and
universities and extending our help to prepare and shape students to become ready for the
corporate world will benefit not just Datamatics but also our next generation of corporate
workers. Datamatics Philippines will focus on increasing employability among individuals
in remote rural areas who need better employment opportunities. Sharing our expertise in
BPO and Contact Center will help young people gain the skills and work experience they
need to get full-time employment in the outsourcing sector. Datamatics Philippines Academy
will help disadvantaged youth in the community find an outsourcing job and develop the
skills and motivation to grow in their chosen careers as young professionals. This way, we
are ensuring continuous availability of a talent pool for Datamatics and providing equal
involvement of rural youth from socially and economically marginalized communities,
thereby promoting an inclusive culture in society.
We plan to develop the following collaborative activities
Capability building
Curriculum development and enhancement;
Course design and development;
On-the-job training of students;
Career guidance and recruitment;
Faculty and Staff immersion;
Faculty and Staff development programs;
Research collaboration; and
Promote other academic and industry cooperation as mutually agreed upon.
Finally, the Let the Earth Breathe Tree Planting Activity shows Datamatics' commitment
to environmental sustainability. By conducting a tree planting activity at the La Mesa
Watershed, the company contributes to preserving the forest and addressing climate change.
Overall, Datamatics' CSR activities demonstrate a commitment to positively impacting
society and the environment while contributing to sustainable development. These
initiatives benefit the community and enhance the company's reputation and promote a
culture of social responsibility within the organization.
New Site Inauguration
Datamatics Philippines inaugurated the third omnichannel customer support centre at
Pasig City, Manila, Philippines. The office was inaugurated by the Indian Ambassador to
the Philippines - H. E. Mr Shambhu Kumaran.
The inauguration event was also graced by the presence of industry leaders, including
Mr Mitch Locsin, President of CCAP (Contact Centre Association of the Philippines);Ms
Celeste Ilagan, Chief Policy & Regulatory Officer at IBPAP (IT & Business Process
Association of the Philippines) and Ms Roseann Miller, CEO at TCC.
The new office expansion further enables Datamatics to accelerate its growth in the
Customer Management Solutions space. Technology coupled with the 'Filipino Way' of
Empathy, Commitment, Sensitivity and Hospitality will help provide a competitive edge to
global clients. We wish great progress to Datamatics Philippines and thank all the
dignitaries for their presence, for gracing the event, and for being part of our Growth
Journey.
Internal and External Branding
Datamatics Philippines is a company that values its internal and external branding
efforts. The internal branding initiatives of Datamatics Philippines include consistently
publishing employee engagement activities through various channels such as Buzz, social
media, Euphoria, and posting on bulletin boards. These initiatives aim to increase
employee retention by keeping employees engaged and motivated. By regularly updating the
employees about the company's initiatives, Datamatics Philippines aims to create a sense
of community and belonging among its employees.
In addition to its internal branding initiatives, Datamatics Philippines is actively
involved in external branding efforts. The company has joined various sessions arranged by
CCAP and IBPAP to represent itself in the BPO and IT-BPM industries. Datamatics
Philippines has also submitted an article about the New Site Inauguration to CCAP, IBPAP,
and the Indian Embassy to gain wider exposure and networking opportunities.
Datamatics Philippines has also participated in roadshows as a sponsor, arranged by the
Indian Business Forum and Indian Embassy, to showcase the company's contributions to the
BPO business in the Philippines and the opportunities available. By joining these events,
Datamatics Philippines aims to create awareness about the company's brand and services and
to connect with potential clients and partners.
Datamatics Philippines has also submitted entries to awardgiving bodies such as Asia
CEO Awards. By participating in these awards, Datamatics Philippines aims to showcase its
employee initiatives and best practices and gain recognition for its efforts.
Overall, Datamatics Philippines is committed to its internal and external branding
efforts. Through its initiatives, the company aims to create a strong sense of community
and belonging among its employees and gain wider exposure and recognition for its brand
and services.
CORPORATE SOCIAL RESPONSIBILITY
With the continued focus on supporting Communities through COVID in the last year, we
went back to our roots of CSR philosophy - Environment and Employability, with an
overarching focus on Empowerment.
Datamatics CMS proactively protects the environment in the Philippines by
advocating recycling, conserving energy, organizing re-forestation excursions and using
environment-friendly technologies.
'Let the Earth Breathe' a tree planting exercise was conducted at the La Mesa
Nature Reserve, Philippines. An enthusiastic group of employees, along with the Leadership
team embarked on planting the Malapapaya (Polyscias nodosa) seedlings in the designated
area. By planting trees in La Mesa Nature Reserve, we are preserving the last remaining
forest in Metro Manila, also protecting the watershed. The La Mesa Nature Reserve absorbs
5% of the carbon emissions of Metropolitan Manila and is the primary source of drinking
water for 12 million Filipinos. While we may not see or feel the activity's immediate
impact, everyone will benefit from this in the future. In two months, the saplings show
good growth, and in about six years, they grow very tall and are also used for the
production of chopsticks. We are happy to partner with the local Authorities and the
Forest Officer in this eco-friendly mission.
Enabling Employability in Tier 3 Cities - we continue to support employment
opportunities in Tier 3 cities in India, including flexible working options. We respect
the flexibility needs that capable and aspiring Talent, especially women, might have. Some
roles offer flexible second innings and the opportunity to come 'Back to the Front'
phase-wise, with experience and training adding to future employability.
DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT
WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013
The Company always endeavours to create and provide an environment that is free
from discrimination and harassment, including sexual harassment. The Company is actively
involved in ensuring that the employees/resources are aware of the provisions of the POSH
Act and the rights thereunder.
The Company has constituted an Internal Committee (IC) as required under POSH
Act, and the committee's constitution complies with the said Act.
The Company has also adopted an Anti-Sexual Harassment Policy, in line with
requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and
Redressal) Act, 2013, and is fully committed to upholding and maintain the dignity of
every woman executive working in the Company.
Number of complaints pending as of the beginning of the financial year: 0
Number of complaints filed during the financial year: 1
Number of complaints pending as of the end of the financial year: 1
AWARDS & ACHIEVEMENTS
During the year, the Company (including Subsidiaries & Group Companies) and
its employees received several awards and recognition, some of which are:
Datamatics named as 'Leader' in the IAOP 2023 Global Outsourcing 100 List
Datamatics & Axis Bank won ET Ascent Business Leader of the Year 2022, under
the category 'Leveraging IT for Business Performance'
Datamatics featured in the Circle of Excellence Awardee for the Wellness Company
of the Year 2022 in the 13th Asia CEO Awards Philippines
Datamatics TruCap+ won Bronze Stevie Award at the American Business Awards 2022
Datamatics awarded for best use of Tech in HR at the UBS Forum's HR Tech Summit
and Awards 2022
Lumina Datamatics awarded Excellence in Customer Service Award and Excellence in
Process Optimization Award by BPO Innovation Awards 2023
Lumina Datamatics won Best Employer Award by Employer Branding Awards 2022
Lumina Datamatics won Excellence in CSR Award by National Award for Excellence
2022
PARTICULARS OF EMPLOYEES
Disclosures with respect to the remuneration of Directors and employees as required
under Section 197 of the Act read with Rule 5(1) of Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 are annexed as "Annexure - A"
to this Report.
In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3)
of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a
statement showing the names of top ten Employees in terms of remuneration drawn and name
and other particulars of Employees drawing remuneration in excess of the limits set out in
the said Rules are required to be part of the report. However, having regard to the
provisions of the first proviso to Section 136(1) of the Act, the Annual Report excluding
the aforesaid information is being sent to the Members of the Company. The said
information is available for inspection at the Registered Office of the Company during the
working hours. Any member interested in obtaining such information may write to the
Company Secretary, at the Registered Office and the same will be furnished on request.
DATAMATICS' INSIDER TRADING POLICY FOR REGULATION OF TRADING BY INSIDERS
Datamatics has formulated an Insider Trading Policy for Directors and employees in
compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015.
The policy lays down guidelines, which advises the insiders on procedures to be
followed and disclosures to be made, while dealing with the Company's securities. The
policy clearly specifies, among other matters, that "Designated Persons"
including Directors of the Company can trade in the Company's securities only when the
'Trading Window' is open. The trading window is closed during the time of declaration of
financial results, dividend and other important events as mentioned in the policy.
The Insider Trading Policy for Regulation of Trading by Insiders is available on our
website at https://www.datamatics.com/about-us/investor-
relations/corporate-governance.
STRUCTURED DIGITAL DATABASE FOR PREVENTION OF INSIDER TRADING PRACTICE
In accordance with the Securities and Exchange Board of India (Prohibition of Insider
Trading) Regulations, 2015, ('SEBI PIT Regulations') as amended, the Company has
customized a secure Insider Trading Compliance Tool (InsiderLens Software) which is
maintained in house to prohibit insider trading activity. The Company has in place a
structured digital database wherein details of persons with whom UPSI is shared on a need
to know basis and for legitimate business purposes is maintained with time stamping and
audit trails to ensure non-tampering of the database.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of their
knowledge confirms that:
(i) in the preparation of the annual accounts for the year ended March 31, 2023, the
applicable accounting standards read with requirements set out under Schedule III to the
Act, have been followed and there are no material departures from the same;
(ii) they have selected such accounting policies and applied them consistently and made
judgements and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial year and of the
profit of the Company for the year ended on that date;
(iii) they have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) they have prepared the annual accounts on a 'going concern' basis;
(v) they have laid down internal financial controls to be followed by the Company and
that such internal financial controls are adequate and are operating effectively; and
(vi) they have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems are adequate and operating effectively.
SECRETARIAL STANDARDS
The Company has complied with secretarial standards issued by the Institute of Company
Secretaries of India on Board Meetings and Annual General Meetings.
Secretarial Auditor
The Company had appointed M/s Tushar Shridharani, Practicing Company Secretary, to
conduct the secretarial audit for the financial year 2022-23. The Secretarial Audit Report
for the financial year ended March 31, 2023 is annexed as "Annexure - B1" to
this Report.
As per the requirements of the Listing Regulations, M/s Tushar Shridharani, Practicing
Company Secretary, have undertaken secretarial audit of Lumina Datamatics Limited,
material subsidiary of the Company for the FY 2022-23. The Secretarial Audit Report for
the financial year ended March 31, 2023 is annexed as "Annexure - B2" to this
Report.
Annual Secretarial Compliance Report
In compliance with the Regulation 24A of the Listing Regulations and the SEBI circular
CIR/CFD/CMD1/27/2019 dated February 8, 2019, the Company has undertaken an audit for the
Financial Year 2022-23 for all applicable compliances as per Securities and Exchange Board
of India Regulations and Circulars/Guidelines issued thereunder. The Annual Secretarial
Compliance Report duly issued by M/s Tushar Shridharani, Practicing Company Secretary has
been submitted to the Stock Exchanges within the prescribed timelines.
INFORMATION ON AUDITORS' OBSERVATIONS
1) Statutory Auditors:
The report of the Statutory Auditors on Standalone and Consolidated Financial
Statements forms part of this Annual Report. There are no qualifications, reservations or
adverse remarks made by the Statutory Auditors in their report.
2) Secretarial Auditor:
The secretarial auditors have stated in the Secretarial Audit Report and Annual
Secretarial Compliance Report that the Company has complied with the provisions of the
Act, Rules, Regulations, Guidelines, Secretarial Standards etc. to the extent applicable,
subject to the following observation,
The audio recording of the meeting held with the Analysts on 1st August,
2022 was reported to the Stock Exchange at nd 3.28 p.m. on 2 August, 2022 instead
of reporting the same before the opening of trading hours on 2nd August, 2022,
pursuant to provisions of regulation 30 of Securities Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
The Management's reply:
It was a procedural un-intentional delay on the part of the Company. The Company will
remain more meticulous in future.
STATUTORY AUDITORS
The Statutory Auditors M/s. M L Bhuwania and Co LLP, Chartered Accountants (Firm
Registration No. 101484W/W100197), was reappointed as Statutory Auditors of the Company
for second consecutive term of 5 (five) years from the conclusion of 34th Annual
General Meeting till conclusion of 39th Annual General Meeting at remuneration
to be decided by the Board.
During the year, the statutory auditors have confirmed that they satisfy the
independence criteria required under the Companies Act, 2013 and other applicable
provisions of law.
MAINTENANCE OF COST RECORDS AS SPECIFIED BY THE CENTRAL GOVERNMENT UNDER SUB-SECTION
(1) OF SECTION 148 OF THE COMPANIES ACT, 2013
As per provisions of sub section (1) of Section 148 of the Companies Act 2013, the
Company is not required to maintain cost records.
DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SUB SECTION (12) OF SECTION 143
OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT
No frauds were reported by auditors under sub-section (12) of Section 143 of the
Companies Act, 2013.
CORPORATE GOVERNANCE
Pursuant to the SEBI Listing Regulations, Report on Corporate Governance for the year
under review, is presented in a separate section. A certificate from M/s. M L Bhuwania and
Co LLP, Chartered Accountants, Statutory Auditors of the Company, confirming compliance of
conditions of Corporate Governance, as stipulated under the SEBI Listing Regulations, is
annexed to this report.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE
COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH
THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company
have occurred between the end of the financial year of the company to which the financial
statements relate and the date of this report.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management's Discussion and Analysis Report for the year under review, as
stipulated under Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, is part of this annual report.
COMPOSITION OF THE COMMITTEES OF THE BOARD
There are currently five Committees of the Board, as under:
Audit Committee;
Nomination and Remuneration Committee;
Stakeholders' Relationship Committee;
Corporate Social Responsibility Committee;
Risk Management Committee.
Details of all the Committees along with their charters, composition and meetings held
during the year, are provided in the "Report on Corporate Governance", which
forms part of this Annual Report.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
Details of loans, guarantees and investments covered under the provisions of Section
186 of the Companies Act, 2013, are provided in the Notes to Financial Statements, which
forms part of this Annual Report.
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
All contracts, arrangements and transactions entered by the Company with related
parties during FY 2022-23 were in the ordinary course of business and on an arm's length
basis. During the year, the Company did not enter into any transaction, contract or
arrangement with related parties that could be considered material in accordance with the
Company's policy on related party transactions.
Accordingly, the disclosure of related party transactions in Form AOC-2 is not
applicable. However detailed disclosure on related party transactions as per IND AS-24
containing name of the related party and details of the transactions have been provided
under financial statements.
The Company has formulated a Policy on Related Party Transactions which is also
available on Company's website at https://www.datamatics.com/hubfs/Investors/Corporate-
Governance/Related-Partv-Transaction-Policv-Final.pdf The Policy intends to ensure
that proper reporting, approval and disclosure processes are in place for all transactions
between the Company and Related Parties.
POLICIES
The SEBI Listing Regulation mandated the formulation of certain policies for all Listed
Companies. In compliance with the above requirement, all our policies are available on our
website (https://www.datamatics.com/about-us/investor- relations/corporate-governance).
The policies are reviewed periodically by the Board and updated based on need and new
compliance requirement.
In addition to its Code of Conduct, Key policies that have been adopted by the Company
are as follows:
Name of the Policy |
Brief Description |
Web Link |
Risk Management Policy |
The policy provide framework for management of risks and mitigation
of threats arising out of environment under which the Company operates. |
https://www.datamatics.com/hubfs/Inv estors/Corporate-Governance/Risk-
Management-Policy.pdf |
Whistle Blower/Vigil Mechanism |
The Company has formulated and adopted a Whistleblower Policy/Vigil
Mechanism for its Directors and Employees to report concerns about unethical behavior,
actual or suspected fraud or violation of Company's Code of Conduct and ethics. |
https://www.datamatics.com/hubfs/Inv estors/Corporate- Governance/Whistleblower-Policy.pdf |
Corporate Social Responsibility (CSR) Policy |
The Policy outlines the Company's strategy for bringing about a
transformation in the quality of life of people in the society through social upliftment
programs. The CSR activities of the Company will focus on Employability, Education &
Training, Health and Environment". |
https://www.datamatics.com/hubfs/Inv estors/Corporate- Governance/DGSL
Corporate%20Social %20Resposibility%20Policy.pdf |
Policy on Material Subsidiaries |
The Policy is framed to determine Material subsidiaries of the
Company and to provide governance framework for such subsidiaries of the Company. |
https://www.datamatics.com/hubfs/Inv estors/Corporate-Governance/Policy-
for-Material-Subsidiaries.pdf |
Related Party Transaction Policy |
Related Party Transactions Policy is framed to ensure the proper
approval and reporting of transactions between the Company and its related parties. |
https://www.datamatics.com/hubfs/Inv estors/Corporate-Governance/Related-
Party-Transaction-Policy-Final.pdf |
Insider Trading Policy |
The Policy provides the framework in dealing with the securities of
the Company. |
https://www.datamatics.com/hubfs/Inv estors/Corporate-Governance/Insider-
Trading-Policy-1.pdf |
Policy for determination and Disclosure of Materiality of Events |
The Policy is framed to provide an overall governance framework for
determination of materiality of events / information and to ensure timely and adequate
disclosures of material events / information fully, fairly, correctly and transparently to
the concerned authorities. |
https://www.datamatics.com/hubfs/Inv estors/Corporate-Governance/Policy-
on-Determination-and-Disclosure-of- Materiality-of-Events.pdf |
Document Retention and Archival Policy |
The Policy is framed to outline the guidelines for retention and
archival for corporate records / documents of the Company. |
https://www.datamatics.com/hubfs/Inv estors/Corporate- Governance/Document-Retention-
Archival-Policy-Final-Policy.pdf |
Dividend Distribution Policy |
This policy sets out principles to determine the amount that can be
distributed to equity shareholders as dividend. The policy is framed to achieve dual
objectives of appropriately rewarding shareholders through dividends and retaining capital
in order to maintain a healthy capital structure to support its future capital and growth
requirements. |
httDs://www.datamatics.com/hubfs/I nvestors/Coroorate- Governance/Dividend-Distribution-
Policy.odf |
INTERNAL FINANCIAL CONTROLS
The Board has adopted policies and procedures for ensuring orderly and efficient
conduct of its business, including adherence to the Company's policies, safeguarding its
assets, prevention and detection of frauds and errors, accuracy and completeness of the
accounting records and timely preparation of reliable financial disclosures.
The Audit Committee is responsible for implementing and maintaining the internal
control and periodically reviews the adequacy and effectiveness of the Company's internal
control environment and monitors the implementation of audit recommendations, including
those relating to strengthening of the Company's risk management policies and systems.
The Company has adopted accounting policies which are in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards)
Rules, 2015 read with Section 133 of Companies Act, 2013, (the 'Act') and other relevant
provisions of the Act.
RISK MANAGEMENT POLICY
Risk Management is embedded in Datamatics operating framework. The Company has a duly
approved Risk Management Policy, which lays down broad guidelines for the appropriate
authority to identify, assess, categorize and prioritize risks in a timely manner and
formulate plans for mitigation of such risks.
Pursuant to SEBI (Listing Obligation and Disclosure Requirements) (Second Amendment)
Regulations, 2021, the Risk Management Committee was reconstituted to frame, implement and
monitor the risk management policy for the Company. The composition of the Committee is in
conformity with the Listing Regulations, with majority members being Directors of the
Company. The Committee shall be responsible for monitoring and reviewing the risk
management plan and ensuring its effectiveness. The Audit Committee has additional
oversight in the area of financial risks and controls. The major risks identified by the
businesses and functions shall be systematically addressed through mitigating actions on a
continuing basis.
The details of composition of the Risk Management Committee and its terms of reference,
is provided in the section titled 'Report on Corporate Governance', which forms part of
this Annual Report.
CORPORATE SOCIAL RESPONSIBILITY ("CSR")
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company
and the initiatives undertaken by the Company during the financial year 2022-23 are
annexed as "Annexure - D" to this Report in the format prescribed in the
Companies (Corporate Social Responsibility Policy), Rules, 2014.
SCHEME OF AMALGAMATION
The Board of Directors of the Company, at its meeting held on March 04, 2022, had
considered and approved a scheme of amalgamation ("Scheme") pursuant to Sections
230 to 232 and other applicable provisions of the Companies Act, 2013 and the rules and/
or regulations made thereunder, providing for the merger of its holding Company, Delta
Infolutions Private Limited ("Delta"/"Transferor Company") with and
into Datamatics Global Services Limited ('the Company'/ Transferee Company') and
their respective shareholders.
The proposed Amalgamation will result in the promoters of the Company directly holding
shares in Delta, which will lead not only to simplification of the shareholding structure
and reduction of shareholding tiers but also demonstrate the promoter group's direct
commitment to and engagement with the Company. There would be no change in the paid-up
share capital and the financial position of the Company post Amalgamation.
As mentioned in the last Annual Report of your Company, the Scheme is subject to
receipt of the approval of the requisite majority of the public shareholders and creditors
(if applicable) of the Companies, the Stock Exchanges, the Securities and Exchange Board
of India, National Company Law Tribunals, Mumbai and other regulatory authorities, as may
be applicable.
The Company had received in principle approval from both the stock exchanges conveying
their no objection to the Scheme and subsequently the parties to the Scheme inter alia
filed a 'Company Scheme Application' with before National Company Law Tribunal ('NCLT')
seeking direction for convening the meeting of the shareholders for approval of the scheme
of Amalgamation. The NCLT vide its Order dated June 22, 2023 directed to hold a meeting of
Equity Shareholders of the Company on August 08, 2023.
Thereafter, a meeting of Equity Shareholders was held on August 08, 2023, wherein the
Scheme of Amalgamation was approved by requisite majority of shareholders in accordance
with the provisions of the Section 230 and 232 of the Companies Act, 2013 and SEBI Master
Circular No. SEBI/HO/CFD/POD-2/P/CIR/2023/93 dated June 20, 2023, as amended from time to
time.
Post receipt of the said shareholders' approval, the parties to the Scheme filed a
'Company Scheme Petition' before the Hon'ble NCLT Mumbai Bench seeking sanction of the
Scheme. The NCLT order on the same is awaited.
SIGNIFICANT/MATERIAL ORDERS PASSED BY THE REGULATORS
There are no significant/material orders passed by the Regulators or Courts or
Tribunals impacting the going concern status of the Company and its operations in future.
ANNUAL RETURN
Pursuant to Section 92(3) of the Act read with Section 134(3)(a) of the Act, the Annual
Return as on March 31, 2023 is available on the website of the Company at https:/
/www.datamatics.com/ about-us/investor- relations/financials.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Details relating to conversation of energy, technology absorption and foreign exchange
earnings and outgo as required under Section 134(3)(m) of the Act read with Rule 8(3) of
the Companies (Accounts) Rules, 2014, are mentioned hereunder:
A. CONSERVATION OF ENERGY:
i) Our Company being in IT & ITeS industry, our operations are not energy
intensive. Adequate measures have been taken to conserve energy.
ii) The Company has not taken any steps for utilising alternate sources of energy.
There was no additional capital investment on energy consumption equipments and
proposals if any, being implemented for reduction of consumption of energy as the nature
of the Company's operations entails a very low level of energy consumption.
B. TECHNOLOGY ABSORPTION:
i) Every effort is made by the Company to update the technological skills of its
technical staff in order to ensure that they possess adequate skills to enable them to
service the Company's clients.
ii) The Company has not imported any technology during the year under review.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
Foreign Exchange Earned in terms of Actual Inflows : Rs 343.07 crores
Foreign Exchange Outgo in terms of Actual Outflows: Rs 54.36 crores
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
The Business Responsibility and Sustainability Report for the year ended March 31, 2023
as stipulated under Regulation 34 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 is annexed as "Annexure - E" which forms part of
this Annual Report.
ACKNOWLEDGEMENTS
The Directors wish to express their appreciation for the continued support of bankers,
financial institutions, customers, and various Government agencies. The Directors also
wish to thank all the employees for their contribution, support and continued cooperation
throughout the year.
|
For and on Behalf of the Board |
|
For Datamatics Global Services Limited |
|
Sd/- |
|
Dr. Lalit S. Kanodia |
Place: Mumbai |
Chairman |
Date: April 28, 2023 |
DIN: 00008050 |
Annexture - A
Information required under Section 197 of the Companies Act, 2013 read with Rule 5(1)
of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is as
under:
(I) Ratio of the remuneration of each Director to the median remuneration of the
Employees of the Company for the financial year 2022-23:
Sr. Particulars No. |
Ratio to Median remuneration |
Executive Directors |
|
1. Dr. Lalit S. Kanodia |
115.40 |
2. Mr. Rahul L. Kanodia |
135.16 |
Non-Executive Directors |
|
3. Mr. Sameer L. Kanodia |
0 |
4. Mr. Dilip Dandekar |
5.60 |
5. Mr. Vinay Aggarwal |
5.60 |
6. Mrs. Mona Bhide |
5.38 |
(II) The percentage increase in remuneration of each Director, Chief Executive Officer,
Chief Financial officer and Company Secretary in the financial year 2022-23:
Sr. Particulars No. |
% increase in remuneration In the FY |
1. Dr. Lalit S. Kanodia |
15.77 |
2. Mr. Rahul L. Kanodia |
28.79 |
3. Mr. Sameer L. Kanodia |
0 |
4. Mr. Dilip Dandekar |
64.71 |
5. Mr. Vinay Aggarwal |
48.15 |
6. Mrs. Mona Bhide |
66.05 |
7. Ms. Divya Kumat, Company Secretary |
13.85 |
8. Mr. Sandeep Mantri, Chief Financial Officer |
20.34 |
(III) The percentage increase in the median remuneration of employees in the financial
year: 10.65%
(IV) The number of permanent employees on the rolls of Company: 6789
(V) The explanation on the relationship between average increase in remuneration and
Company performance:
On an average, employees received an annual increase of 10.9%. The individual
increments varied from 1% to 18%, based on individual performance. The increase in
remuneration is in line with the market trends in the respective countries. In order to
ensure that remuneration reflects Company performance, the performance pay is also
linked to organization performance, apart from an individual's performance.
(VI) Comparison of the remuneration of the Key Managerial Personnel against the
performance of the Company;
Aggregate remuneration of Key Managerial Personnel (KMP) in FY 2023
(Rs in crores) |
8.35 |
Revenue (Rs in crores) |
733.27 |
Remuneration of KMPs (as % of Revenue) |
1.14% |
Profit before tax (PBT) ) (Rs in crores) |
135.35 |
Remuneration of KMP (As % of PBT) |
6.17% |
(VII) Variations in the market capitalization of the Company, price earnings ratio as
at the closing date of the current financial year and previous financial year:
Particulars |
March 31,2023 |
March 31, 2022 |
%Change |
Market Capitalization (Rs in Crores) |
1674.75 |
1766.12 |
(-) 5.17% |
Price Earnings Ratio |
16.24 |
15.89 |
2.17% |
(VIII) Percentage increase or decrease in the market quotations of the shares of the
Company in comparison to the rate at which the Company came out with the last public
offer:
Particulars |
March 31,2023 |
IPO Date (May 07 2004) |
% Change |
Market Price (BSE) |
284.10 |
110.00 |
158.27% |
Market Price (NSE) |
282.20 |
110.00 |
158.36% |
(IX) Average percentile increase already made in the salaries of employees other than
the managerial personnel in the last financial year and its comparison with the percentile
increase in the managerial remuneration and justification thereof and point out if there
are any exceptional circumstances for increase in the managerial remuneration:
The average annual increase was around 11%
Increase in the managerial remuneration for the year was 21%
(X) Comparison of the each remuneration of the Key Managerial Personnel against the
performance of the Company:
Particulars |
Dr. Lalit S. Kanodia |
Mr. Rahul L. Kanodia |
Mr. Sandeep Mantri |
Ms. Divya Kumat |
Remuneration in FY 2023 (Rs in crores) |
2.89 |
3.38 |
1.01 |
1.08 |
Revenue (Rs in crores) |
|
733.27 |
|
|
Remuneration as % of revenue |
0.39% |
0.46% |
0.14% |
0.15% |
Profit before tax (PBT) (Rs in crores) |
|
135.35 |
|
|
Remuneration of KMP (As % of PBT) |
2.13% |
2.50% |
0.74% |
0.80% |
(XI) The key parameters for any variable component of remuneration availed by the
Directors:
The key parameters for the variable component of remuneration to the Directors are
approved by the Board as per suggestions of the Nomination and Remuneration Committee.
a) Commission to Chairman & Vice - Chairman: The Commission payable to Dr.
Lalit S. Kanodia and Mr. Rahul L. Kanodia is upto 1% of the net profits of the Company as
computed in accordance with the provisions of the Companies Act, 2013.
b) Commission to Non - Executive Directors: The
Members have, at the AGM of the Company held on August 13, 2019 approved the payment of
commission upto the limit of 0.25% of its net profits of the Company as computed under the
applicable provisions of the Act. The said commission is decided each year by the
Board of Directors and distributed amongst the Non-Executive Directors based on their
attendance and contribution at the Board and certain Committee meetings, as well as the
time spent on operational matters other than at meetings.
(XII) There are no employees who receive remuneration in excess of the highest paid
Director of the Company.
(XIII) Affirmation that the remuneration is as per the remuneration policy of the
Company:
Pursuant to Rule 5 (1) (xii) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, it is affirmed that the remuneration paid to the
Directors, Key Managerial Personnel and senior management is as per the Remuneration
Policy of your Company.
|