KPIT Annual Corporate Sustainability Report 2015-16

Technologies

for a better world

Annual Corporate Sustainability Report

2015-16

Dear Fellow Stakeholders,

Welcome to our Sixth Sustainability Report for the year

2015-16. This report encapsulates our efforts relating to

sustainability. At KPIT, sustainable development is at the

core of our business decisions and we align our

sustainability strategy with our business goals. This reflects

in our company's mission statement too, which is to create

'Technologies for a better world'. This means concern for

safety, environment and communities percolates in every

sphere of our business.

In this letter, I will take you through how we define KPIT, the

way we run our business, how we enable our customers be

successful and sustainable, how we empower our

employees and help communities around us.

From the Chairman's desk

KPIT - A technology company that caresCare and relationship forms the nucleus of KPIT's overall business strategy. In this regard, we

continue to deepen relationships with our strategic customers, employees, stakeholders and care

for the environment and the world at large. In order to do this efficiently, we use our technology

knowledge as we believe that technology alone has the power to create a more sustainable

future. And thus, KPIT focuses on envisioning and enabling a cleaner, greener, connected,

comfortable and intelligent world, a world that is self-sufficient, sustainable and efficient.

Our R&D (Research and Development) arm – CREST (Center for Research in Engineering Sciences and

Technology) is entrusted with the responsibility of pioneering technologies, products and solutions

that are not only innovative and efficient but also green, safe and sustainable. India's first ARAI

(Automotive Research Association of India) certified On-Bus Intelligent Transport System (ITS)

solution and Revolo- a plug-in, parallel hybrid solution developed by KPIT are a testimony to our

focus on innovating technologies that enable clean mobility.

How we run our business

KPIT's vertical focused approach and expertise in IT and Engineering is creating a better world with

solutions that are sustainable, safe and smart. We focus on industries that build intelligence into the

products they offer.

• Automotive and Transportation

• Consumer and Industrial Manufacturing

• Energy and Resources

• High Tech

• Life Sciences

• Utilities

As a Company, we do not consume non-renewable sources of energy and we ensure all the waste

generated as a result of our business process is treated and recycled for use or is disposed in a

responsible manner. Our upcoming facility in Phase 3 Hinjawadi (Pune) is built on a terrain that

merges into the hills and with minimum excavation to retain the natural topography. Aspects like

innovation, uniqueness, efficiency and purity were given preference while designing the campus.

With initiatives like green architecture, Virtual Desktop Interface (VDI), sewage treatment plant, waste

management system, energy efficient equipment, awareness campaigns and several others, we

continue to be a Company that is extremely conscious about the impact of our processes on the

environment.

How we partner with our customers

We focus on a customer-first approach and understand that business priorities evolve from time to

time and thus, believe in building a long-term partnership and trust with clients. This allows us to

understand their business better and provide innovative & environment friendly solutions that help

meet their dynamic needs, deliver value to the people that matter the most to them. We enable them

in their efforts to be sustainable and efficient by helping them produce products that are of high

quality, less costly, use less energy or fewer materials.

In order to stay relevant to our focus industries, we continue to invest in upgrading to latest

technologies. During the course of the year we will continue to invest in technologies (like Products &

Platforms and will focus on the development of AMS and next generation digital, IoT, Cloud &

analytics platforms) that will enable our customers to attain their business goals.

How we enable our Employees

Our employees are our torchbearers and hence their growth is one of our fore focus. Over the course

of FY16, we have been able to improve on our people productivity. We introduced a new performance

management system (KPMS) that entails a complete 'Role' based approach. A key essential of the

framework is to provide clearer career growth paths with the respective roles and provide clarity on

what a particular role entails in terms of expectations. This will enable our focus on developing and

growing people internally. We also have a renewed thrust on internal promotions on defined

guidelines and have made substantial investments in training and development.

How we enable our communities

We are also equally committed to helping our communities through numerous CSR activities, such as

Chhotte Scientists Program-an initiative to teach Science fundamentals to school children, Solid

Waste Management, Zero Garbage Drive-an initiative aimed towards promoting segregation of

organic and inorganic waste at source and several others.

We strongly believe that the future generation is governed by the way we grow today. We always aim

to align our growth path to make tomorrow cleaner, greener and more sustainable.

This report details our efforts and initiatives in that direction.

Happy Reading.

Introduction

We are glad to present you our Sixth Sustainability Report for the year 2015- 2016.

Sustainability is the epicenter of all our business processes. It is very dear to our heart and goes

beyond financial or operation sustainability. For us, it extends to include environmental and social

sustainability as well-while taking all our stakeholders along as we pursue our mission and goals. We

are passionate and committed to Sustainability, not just in the manner in which we own our business

but also in how we enable our customers to do it. The report encapsulates some of the sustainability

initiatives undertaken by us as well as the results achieved over the last year. It also covers the

economic, environmental and social dimensions of our sustainability strategy. This report presents

our vision of building a global technology company while staying committed to sustainability.

01About the Company1.1 The Goal

1.2 About the Company

1.3 Geographic Performance

1.4 Financial Performance

1.5 Information about the Subsidiaries

1.6 Enterprises Risk Management (ERM) Framework

1.7 Industry Recognition, Awards & Leadership

03Innovation at KPIT 3.1 Domain wise breakup of all patents filed

3.2 Sparke 2016

3.3 EV Bus Project

3.4 Award List

05Environment Initiatives at KPIT5.1 KPIT Green Campus

5.2 Power

5.3 Project undertaken at KPIT for reduction in

power consumption for desktops

5.4 Air Conditioning

5.5 Lighting

5.6 Water

5.7 Waste Management at KPIT Campus

5.8 Environment Awareness Campaigns

5.9 Occupational Health & Safety

5.10 New Campus coming up in Phase III

07Future Ahead

02Corporate Governance and Management practices2.1 Board Composition

2.2 Board Committees

2.3 Board and Senior Management Compensation

2.4 Whistle Blower Policy

04KPIT's way of giving back to the society4.1 Scope of our CSR initiatives

4.2 Environment

4.3 Education

4.4 Energy

4.5 Employee Engagement

4.6 Innovating, Inspiring, Appreciating

4.7 CSR initiatives in North America

4.8 Awards & Accolades

4.9 Graphical representation – Employee involvement

Vs No. of beneficiaries for CSR initiatives

06Employee Engagement at KPIT6.1 Employee Engagement

6.2 Employee Recreation

6.3 Other initiatives

6.4 Performance Appraisal

6.5 Rewards and Recognition

6.6 Employee Competency Development

6.7 Labour Practices Strategy and

Management Approach

6.8 Employment and compensation

6.9 Talent Acquisition

Index

01 ABOUT THE COMPANY

1.1 The Goal

1.2 About the Company

1.3 Geographic Performance

1.4 Financial Performance

1.5 Information about the Subsidiaries

1.6 Enterprises Risk Management (ERM) Framework

1.7 Industry Recognition, Awards & Leadership

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Annual Corporate Sustainability Report 2015-16

About The Company

1.1 The Goal:

As an organization our goal is to build a Vertically Focused Technology Company that cares…

Vertically Focused

We will continue to focus on the below mentioned industries:

1) Automotive & Transportation

2) Manufacturing:

• Industrial & Consumer products

• Hi Tech

• Life Sciences

3) Energy & Resources

4) Utilities

These industries create products or service customers through products which require intelligence

and we believe that we can work with our customers to create such products by leveraging our

electronics and engineering domain expertise.

Technology Company

We work towards developing technology that is cutting edge, pro-active, innovative and integrates

the capabilities of both IT and engineering to deliver smart solutions and products.

Care

Care and relationship forms the nucleus of our overall business strategy. We would like to work with a

few strategic customers for whom we could render services and solutions in our focused areas. We

care for our employees and we are making necessary investments for the overall development of our

people in alignment with their career path and organizational values. We care for all stakeholders and

society at large and we would continue to contribute to the environment by creating products and

solutions which are greener, safer and well connected.

1.2 About the Company:

We are a global technology company specializing in providing IT consulting and product engineering

solutions and services to Automotive, Manufacturing, Energy & Utilities and Life Sciences companies.

We currently partner with 200+ global organizations who are benefitting from our services and

technology. We have a strong client base of around 75 Automotive OEMs and Tier Is and 50+

manufacturing companies. We have a wide geographic presence with 10 development centers and

34 offices in 16 countries. Our domain expertise and capabilities in the areas of electronics and

engineering has helped us in winning around 9 Innovation awards in the last 4 years. We have a

strong team of 10,900+ people representing over 25 different nations who works at the forefront of

technologies and processes to help our customers become smarter, integrated and innovative

enterprises.

1.3 Geographic Performance:

During the year 2015-16, Europe geography was leading the growth path followed by US. The revenue share

for Europe increased from 15.35% in last year to 18.01% during this year and it grew by 26.53%. The revenue

share of US geography increased from 66.94% in last year to 68.38% during this year and it grew by 10.16%. In

APAC revenues for the year declined due to reduction in our products business mainly for Intelligent

Transportation Solutions (ITS) product. The revenue share for APAC, geography stood at 13.61% during this

year as against 17.71% in last year while revenue declined by 17.12%.

1.4 Financial Performance:

As we had stated, during the beginning of the year that growth was not the prime focus area for the Company

during the year. We were focusing on improving our profitability, business predictability and people

development in the same priority order and we have been successful in delivering well on these three areas

and we have also progressed well on the growth path.

Our Dollar revenues have been flattish during the year as they stood at $ 490.31 Million against $ 489 Million

in FY15. The services business grew by 4.52% on a Y-o-Y basis (7.5% in constant currency terms) while the

products business declined. In Rupee terms Company revenue grew by 7.8% Y-o-Y from ₹ 29,899.17 Million

in FY15 to ₹ 32,242.91 Million.

Sydney

SingaporeHyderabad

BangaloreChennai

Pune

Delhi

Johannesburg

Sao Paulo

Shanghai

Tokyo

Amsterdam

BerlinMunich

Stockholm

ParisLondon

Edison, NJ

Houston, Tx

Austin, TxNewport

Beach, CA

Folsom, CA

Portland, OR

Releigh, NC

Columbus, IN

Novi, MI

Milan

Seaoul

Dubai

Mumbai

Development center in US, Germany, India & Brazil

Global Offices

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Amongst the SBUs, Product Engineering Services (PES) SBU was the highest growing SBU with revenue share

at 27% and Y-o-Y growth of 33.46%. SAP SBU also recovered well from the issues faced during last year and

registered good growth during the year. SAP SBU grew by 14.82% on a Y-o-Y basis while its revenue share

stood at 22.9%. Integrated Enterprise Solutions (IES) SBU grew by 6.04% Y-o-Y with revenue share at 35.91%.

There was a decline of 11.23% in Digital Transformation SBU (DT erstwhile ES SBU) and its revenue share for

the year was 9.70%. We had a major decline in Products & Platform SBU (P&P) primarily due to the cyclical

business nature for Intelligent Transport Solutions (ITS) product however we achieved success and

recognition for some of our other products. The revenue share for this SBU came down to 4.51% with Y-o-Y

decline of 42.03%.

During the year, there was good growth across our verticals. Manufacturing vertical grew by 10.98%

contributing 35.91% to the revenues while Automotive & Transportation grew by 9.65% with revenue share

at 37.58%. Energy & Utilities vertical grew by 4.82% and it contributed 19.55% to the revenues. Amongst our

customers the Top 10 customers grew by 5.29% on a Y-o-Y basis while the Top 5 customers declined by

0.62%.

Our EBITDA Margins for the year increased to 13.15% against 10.85% in FY15. Profitability improvement was

the top priority area for us during the year and we have been able to improve it by taking certain steps and

actions related to operational efficiency, people productivity and delivery excellence. Net profit for the year

increased by 18.78% Y-o-Y to ₹ 2,815 Million from ₹ 2,369.87 Million in FY15. Our cash flow has also been

positive throughout the year.

1.5 Information about the Subsidiaries:

KPIT has set up wholly owned subsidiaries in Brazil, Canada, China, France, Germany, Netherlands, UAE,

United Kingdom and United States of America and branches in Singapore, Japan, South Africa, Australia,

South Korea ,Sweden and Italy in order to give its local presence in the countries where its customers operate

and also to service its customers more efficiently. Local presence has also helped KPIT in building a diverse

workforce.

1.6 Enterprises Risk Management (ERM) Framework:

The Company has Enterprise wise Risk Management (ERM) framework, which is iterative process of

continually identifying the risks that are threatening to Company's sustainability. There exists well defined

objective and quantitative framework for measuring risks and managing them. The Company maintains a

Risk Register and implements suitable risk mitigating plans for each risks identified therein. Top ten risks are

reviewed by the Risk Management Committee periodically.

ERM at Company involves risk identification, assessment, mitigation planning for strategic, operational,

finance and compliance related risks across all business units, functions and geographies.

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Risks monitored by ERM Framework are –

• Growth in defined target accounts

• Ability to maintain gross margins

• Talent Management

• Currency Appreciation

• Business Concentration

• Growth in emerging line of business

• Operational liability risk

• Management of large deal delivery

• Lack of traction in new offerings

• IT Infrastructure Risk Assessment

Please refer to separate section on Enterprise Risk Management in the annual report 2015-16 which

is available on www.kpit.com.

1.7 Industry Recognition, Awards & Leadership:

• Ms. Vaishali Vaid, VP & Head, Global HR, KPIT honored with the '100 Most Talented Global HR

Leaders Award' by CHRO Asia for the second time in a row.

• KPIT's Smart Electric Bus technology wins the 'One Globe Award for Excellence in Research &

Development'

• KPIT Won "Newcomer of the Year" Award at Annual SAP Hybris Summit

• KPIT Honored for Successful Digital Transformation with 'Jewels of Digital Maestro Award'

• KPIT's solution for Consul Neowatt Power Solutions wins SAP ACE Award for Customer Excellence in

Service

• KPIT Conferred with the Most Influential Marketing Leaders Awards

• KPIT Honored with the 'Best CSR Practice Award' by the World CSR Congress

• KPIT Featured as a "Niche Player" in Gartner's 2015 "Magic Quadrant for Oracle Application

Management Services, Worldwide"

02 CORPORATE GOVERNANCE

AND MANAGEMENT PRACTICES

2.1 Board Composition


2.3 Board and Senior Management Compensation

2.4 Whistle Blower Policy

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Corporate Governance and Management Practices

For KPIT, Corporate Governance stands as an approach of managing our operations efficiently and

prudently in order to make the business stable and secure, growth-oriented, maximally profitable to

our shareholders and be highly reputed and reliable among all customers & clients concerned. The

board structure and the top management are directly responsible for such governance and hence it is

utmost important that the top management has flawless and effective control over all affairs of the

organization, is regularly monitoring all business activities and transactions, interest and benefits of

the shareholders are considered and that there is strict compliance to regulatory and governmental

bodies . Thus, corporate governance is strict and efficient when application of all best management

practices is blended with corporate & legal compliances, amid the contemporary and continually

changing business scenarios.

KPIT has been practicing corporate governance to ensure transparency in its corporate affairs. The

Company is committed to continuously scaling up its corporate governance standards.

KPIT's corporate governance framework has been built on the value system evolved by the Company

over a period of time. This value system has been abbreviated as CRICKET, that illustrates the

Company's attributes as follows:

2.1 Board composition:

The composition of the Board is decided considering the following criteria:

1) Compliance with statutory and regulatory norms

2) Appropriate mix of Independent and Non-Independent Directors

3) Entrepreneurship

4) Diversity

5) Experience of working in a rapidly growing company.

6) Specialized knowledge in

The Company has a judicious mix of Executive, Non-Executive and Independent Directors. The Board

consists of 5 Independent Directors, 2 Non-Executive Directors and 3 Executive Directors.

• Customer Focus

• Respect for Individual

• Integrity

• Community Initiative

• Knowledge Worship

• Entrepreneurship and Innovation

• Teamwork and boundarylessness

a) Business strategy

b) Global markets

c) Technology and innovation

d) Financial Management

e) Accounting

f) Customer Relationship Management

g) Investment Banking

h) Human Resource Management

i) Operational excellence

j) Industries which are the focus areas for the Company.

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The Company has also laid down certain benchmarks for the qualification of the Board members.

There is a constant endeavor to align the qualifications of the Directors with the ongoing trends in

this arena. Before inducting any new member, the Board ensures that the new member conforms to

the qualification criteria laid down by the Company. The qualifications prescribed by the Company

are as follows:

• Thought leadership

• Specialized skills

• Knowledge of the business

• Knowledge of the industry in which the Company operates or in which the Company has significant

interests

• Independence attributes for Independent Directors

• Ability to devote necessary time

• Not holding membership in the board of our competitors.

The Independent Directors of the Company are chosen keeping in mind the definition of

'Independent Director' as defined in the Securities and Exchange Board of India (Listing Obligations

and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013. Apart from this, the

Company has well defined touchstones for selecting the Independent Directors. The Independent

Directors are prominent and distinguished figures from the Industry and have an astute knowledge

of the industry and business.

At KPIT, we have renowned personalities as Directors, who are doyens of their field and are truly

independent. They include:

Ms. Lila Poonawalla was awarded the Padmashree in 1989 for her exemplary contribution to the

world of Engineering and Industry. She was the Chairperson and Managing Director of Alfa Laval-

Tetra Pak India and was the first woman to reach the post of Managing Director in the Alfa Laval

group. She is currently a Director on the Board of Bajaj Allianz General Insurance Company Limited,

Bajaj Allianz Life Insurance Company Limited, VE Commercial Vehicles Limited, Blossom Industries

Limited, Pragati Leadership Institute Private Limited, Noble Tek PLM Solutions Private Limited, Impact

Automotive Solutions Limited and Nihilent Technologies Limited.

She has been on the governing body of organizations like the CII (Confederation of Indian Industries)

and TIFAC (Technology Information Forecasting and Assessment Council formed by the Government

of India). She was a member of the Scientific Advisory Board of the Central Cabinet (SAC-C) and

Chairperson of the Herbal and Floriculture Taskforce of SAC-C. Actively involved in social initiatives,

she is on the Board of trustees of two Pune-based NGOs. In 1994, she started the "Lila Poonawalla

Foundation" to promote education among women. She is presently a member of Executive Council of

Maratha Chamber of Commerce Industries (MCCI), National Institute of Agricultural Extension

Management and Top Management Consortium. She is also the Vice Chairperson of the Poona Blind

Men's Association.

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Dr. R. A. Mashelkar is deeply committed to the world of Science and Engineering, Dr. Mashelkar has

been hugely instrumental in propagating a culture of innovation and balanced intellectual property

rights regime for over a decade. He is a Chancellor in Academy of Scientific & Innovative research. He

was the third Indian engineer to have been elected as a Fellow of Royal Society (FRS), London and he

was the first Indian President of the Institute of Chemical Engineers, UK and the first Indian Foreign

Fellow of Australian Technological Science and Engineering Academy (2008). Twenty-eight

universities have honoured him with honorary doctorates, which include Universities of London,

Salford, Pretoria, Wisconsin and Delhi. Dr. Mashelkar served as the Director General of Council of

Scientific and Industrial Research (CSIR). He was also the President of Indian National Science

Academy (2005-2007). He is currently a Director on the Board of Reliance Industries Limited, Thermax

India Limited, Tata Motor Limited, Piramal Enterprises Limited, Tal Manufacturing Solutions Limited,

Vyome Biosciences Limited, Invictus Oncology Private Limited, Sakal Paper Private Limited,

International Longevity Centre–India, Gharda Scientific Research Foundation, Gharda Medical &

Advanced Technical Foundation. Dr. Mashelkar has won over 50 awards and medals at national and

international levels and was honoured by the President of India with Padma Vibushan award in the

year 2014. Earlier, he was conferred Padma Shri award (1991) and Padma Bhushan award (2000), in

recognition of his contribution to nation building.

Mr. Adi Engineer is a Chartered Engineer by profession with a Degree in Civil Engineering from the

Pune University. He was associated with Tata group of companies for nearly three decades prior to

joining KPIT Board, which includes a stint as the Managing Director of Tata Power Limited. In that

role, he transformed the company by successfully launching various new initiatives that substantially

led to improved profitability. His company also secured the "Good Corporate Citizen" award during

his charge. Prior to joining the Tata Group, Mr. Engineer had a successful 20 years stint with the ICI

group where he held senior positions in the management team including setting up large Chemical

plant projects and later into operations and general management. Mr. Engineer has served as the

Director on the Board of several companies in the field of energy infrastructure and engineering.

Reckoned for his varied and differentiating experience, Mr. Engineer is a Director in Finolex Cables

Limited and Impact Automotive Solutions Limited. The Confederation of Indian Industry (CII) had

also appointed him as the Chairman of the Committee on Power for the year 2006. He has been a

preferred and insightful spokesperson for the Power sector for many media interactions. Having

served the industry on numerous fronts, Mr. Engineer brings with him wide experience from more

than a dozen boards of major companies.

Prof. Alberto Sangiovanni Vincentelli, was a co-founder of Cadence and Synopsys, two leading

companies in the area of Electronic Design Automation. He is the Chief Technology Adviser of

Cadence and also a member of its Board of Directors. He was a member of the HP Strategic

Technology Advisory Board. He is currently a member of the Science and Technology Advisory Board

of General Motors, as well as a member of the Technology Advisory Council of United Technologies

Corporation. He is also a Professor with University of California, Berkeley and Department of

Electrical Engineering & Computer Sciences.

Mr. Anant Talaulicar holds B.E. (Mechanical) degree from Mysore University, M.S. degree from the

University of Michigan in Ann Arbor and a MBA from Tulane University, USA. He has been serving

Cummins for the past 19 years in varied fields like Finance, Manufacturing, Product Management,

Strategy, Marketing and General Management. He has led the North & South American Commercial

Power Generation business for Cummins with revenues of $ 300 million. Currently, he is Chairman and

Managing Director of Cummins India Limited.

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Mr. B V R Subbu is an automotive industry expert and a thought leader. Mr. B V R Subbu holds a post

graduate degree in Economics from Jawaharlal Nehru University and a post graduate diploma from

Indian Institute of Foreign Trade. He was president of Hyundai India earlier. He was also extensively

involved with Tata Group holding various responsibilities, among others in Tata Motors' Light

Commercial Vehicles and Multi Utility Vehicles business.

Mr. Sanjay Kukreja is a fund manager by profession. He joined ChrysCapital, a fund management

firm, in April 2000. He manages the investments of ChrysCapital in business services sector. Mr.

Sanjay Kukreja received his MBA from the Indian Institute of Management, Bangalore and graduated

with a BA in economics from Delhi University.

We also have following Executive Directors.

Chairman & Group CEO

Mr. S. B. (Ravi) Pandit is a founder of the Company and has been a Director on the Board of the

Company since its incorporation. He holds a MS (Management) degree from Sloan School of

Management, MIT, Cambridge, USA. He possesses extensive experience of over four decades in the

fields of IT, Corporate Strategy Formulation and Management Consulting. Mr. S. B. (Ravi) Pandit was

an Audit Professional at Alexander Grant & Co., USA, following which he became a partner at Kirtane

& Pandit LLP, Chartered Accountants, from 1975-1990. He is a Fellow member of the Institute of

Chartered Accountants of India and an Associate member of the Institute of Cost Accountants of

India. He was President of Mahratta Chamber of Commerce, Industries and Agriculture during 2004-

2006. Mr. S. B. (Ravi) Pandit is also a frequent speaker at various national and international seminars.

At KPIT, he leads the team in overseeing Solutions & Services business, assessment of new

technologies, management of key external relationships and managing Board matters. He is a

promoter of the Company and also plays a strategic role in Community Initiatives and Corporate

Governance.

CEO & Managing Director

Mr. Kishor Patil is a Fellow member of the Institute of Chartered Accountants of India and an

Associate member of the Institute of Cost Accountants of India. He has more than 31 years of

experience in various areas like Information Systems and Design, Marketing, Organization Methods

and Systems etc. He is in-charge of the overall management of the Company. He is specifically

responsible for all day-to-day operational issues like planning and executing business, reviewing and

guiding the country offices, customer delivery units and support functions and ensuring efficient and

effective functioning of the organization as a whole. As a promoter of the Company, Mr. Kishor Patil

has provided strategic direction and spearheaded KPIT's foray into international markets. He has

been instrumental in building strategic partnerships and a strong and prestigious customer base for

the Company in a short span of time. Currently, he is focusing on creation and management of new

Product Business Units, executive sponsorship of critical GAMs, management of key external

relationships in India & strategic infrastructure projects.

Whole-time Director & President

Mr. Sachin Tikekar holds a Masters' degree in Strategic Management and International Finance

from Temple University's Fox School of Business and Management, Pennsylvania. He is a co-founder

of KPIT and has played various leadership roles over the years. Currently, he is working on the overall

strategy, operating systems, creation of some new solutions, executive sponsorship of the key Global

Accounts and Partnerships along with Succession Planning and Development of senior people in the

organization.

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The Company takes various initiatives to ensure the active participation of the Directors, particularly,

the Non-Executive Directors, in the decision-making and review process some of which are given

below:

A) Majority of the committees of the Board are chaired by Non-Executive / Independent

Directors. The Company has the following Committees: -

1) Audit Committee

2) Quality Council

3) Innovation Council

4) Nomination and Remuneration (HR) Committee

5) Share Transfer Committee

6) Stakeholders Relationship Committee

7) Risk Management Committee

8) Corporate Social Responsibility Committee

B) The Board of Directors normally have an Annual Strategy Meet and the mid-year strategy

meet to deliberate on the annual operating plans, review the status of the plan and set the

direction for long range plans.

1) The Company has set-up an Audit Committee consisting of 3 Directors out of which 2 are

Independent and form the majority. The Committee consists of Ms. Lila Poonawalla, who is the

Chairperson of this Committee, Mr. Adi Engineer & Mr. S. B. (Ravi) Pandit. The committees play a

major role in reviewing and improving internal controls, internal audit function, financial

reporting, reviewing the performance of statutory and internal auditors and code of conduct. The

role and objectives of the Committee include:

i. Oversight of the financial reporting process and the disclosure of its financial information

to ensure that the financial statement is correct, sufficient and credible;

ii. Recommendation for appointment, remuneration and terms of appointment of auditors of

the Company;

iii. Approval of payment to statutory auditors for any other services rendered by the statutory

auditors;

iv. Reviewing, with the management, the annual financial statements and auditor's report

thereon before submission to the Board for approval, with particular reference to:

a. Matters required to be included in the director's responsibility statement to be included

in the Board's report in terms of clause (c) of sub-section (3) of Section 134 of the

Companies Act, 2013;

b. Changes, if any, in accounting policies and practices and reasons for the same;

c. Major accounting entries involving estimates based on the exercise of judgment by

management;

d. Significant adjustments made in the financial statements arising out of audit findings;

e. Compliance with listing and other legal requirements relating to financial statements;

f. Disclosure of any related party transactions;

g. Modified opinion(s) in the draft audit report;

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v. Reviewing, with the management, the quarterly financial statements before submission to the

Board for approval;

vi. Reviewing, with the management, the statement of uses / application of funds raised through an

issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for

purposes other than those stated in the offer document / prospectus / notice and the report

submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights

issue, and making appropriate recommendations to the Board to take up steps in this matter;

vii. Reviewing and monitoring the auditor's independence and performance, and effectiveness of audit

process;

viii. Approval or any subsequent modification of transactions of the Company with related parties;

ix. Scrutiny of inter-corporate loans and investments;

x. Valuation of undertakings or assets of the Company, wherever it is necessary;

xi. Evaluation of internal financial controls and risk management systems;

xii. Reviewing, with the management, performance of statutory and internal auditors, adequacy of the

internal control systems;

xiii. Reviewing the adequacy of internal audit function, if any, including the structure of the internal

audit department, staffing and seniority of the official heading the department, reporting structure

coverage and frequency of internal audit;

xiv. Discussion with internal auditors of any significant findings and follow up there on;

xv. Reviewing the findings of any internal investigations by the internal auditors into matters where

there is suspected fraud or irregularity or a failure of internal control systems of a material nature

and reporting the matter to the Board;

xvi. Discussion with statutory auditors before the audit commences, about the nature and scope of

audit as well as post-audit discussion to ascertain any area of concern;

xvii. To look into the reasons for substantial defaults in the payment to the depositors, debenture

holders, shareholders (in case of non-payment of declared dividends) and creditors;

xviii. To review the functioning of the whistle blower mechanism;

xix. Approval of appointment of chief financial officer after assessing the qualifications, experience and

background, etc. of the candidate;

xx. Carrying out any other function as is mentioned in the role and objectives of the audit committee.

xxi. Management discussion and analysis of financial condition and results of operations;

xxii. Statement of significant related party transactions (as defined by the audit committee), submitted

by management;

xxiii. Management letters / letters of internal control weaknesses issued by the statutory auditors;

xxiv. Internal audit reports relating to internal control weaknesses;

xxv. The appointment, removal and terms of remuneration of the chief internal auditor shall be subject

to review by the audit committee;

xxvi. Statement of deviations:

a. Quarterly statement of deviation(s) including report of monitoring agency, if applicable,

submitted to stock exchange(s) in terms of Regulation 32(1);

b. Annual statement of funds utilized for purposes other than those stated in the offer

document/prospectus/notice in terms of Regulation 32(7).

14


2) The Quality Council enables the Board to focus on service quality-related aspects and resolve

customer issues proactively. Its role and objectives are to suggest measures to enhance quality

and productivity and the means to optimize the use of the resources. The Committee is chaired by

Mr. BVR Subbu, a renowned automotive industry expert with vast experience in launch of new

vehicles in the market. Prof. Alberto Sangiovanni Vincentelli, Ms. Lila Poonawalla and Mr. Kishor

Patil are the other members. It reviews the quality aspects of the Company’s operations,

productivity improvement measures and the customer satisfaction scores regularly and advises

the management.

3) Innovation Council lays down the innovation road-map for the Company considering the

constantly evolving technology and other trends and also guides the Company in monetizing the

results of the innovation. The Committee is chaired by Dr. R A Mashelkar, a renowned scientist and

innovation champion. Mr. S.B. (Ravi) Pandit, Mr. Kishor Patil, Prof. Alberto Sangiovanni Vincentelli,

Mr. BVR Subbu and Ms. Lila Poonawalla are the other members. The Innovation Council also

reviews the status of innovation projects and evaluates the innovation ideas originated by the

employees. The council actively promotes innovation culture in the organization.

4) The Company has set-up a Nomination and Remuneration (HR) Committee. The Committee is

chaired by an Independent Director, Mr. Adi Engineer, an industry veteran with over five decades

of experience. Its role and objectives include:

All people-related matters including:

i. Formulation of the criteria for determining qualifications, positive attributes and

independence of a director and recommend to the Board of Directors a policy relating to,

the remuneration of the directors, key managerial personnel and other employees;

ii. Formulation of criteria for evaluation of performance of independent directors and the

board of directors;

iii. Devising a policy on diversity of Board of Directors;

iv. Identifying persons who are qualified to become Directors and who may be appointed in

senior management in accordance with the criteria laid down, and recommend to the

Board of directors their appointment and removal;

v. Decide whether to extend or continue the term of appointment of the independent

director, on the basis of the report of performance evaluation of independent directors.

5) The Company has a Share Transfer Committee. The role and objectives of the Committee, as

defined by the Board is to approve matters relating to share transfers. During the year, the

Committee was dissolved for operational convenience as the Company already has in place a

Stakeholders Relationship Committee which is a mandatory committee. The powers of Share

Transfer Committee are delegated by the Board to the Stakeholders Relationship Committee.

6) The Company has formed a Stakeholders Relationship Committee. The role and objectives of the

Committee is to consider and resolve the grievances of the security holders of the Company

including complaints related to transfer of shares, non-receipt of annual report and non-receipt of

declared dividends..

15


7) The Company has formed a Risk Management Committee. The purpose of the committee is to

monitor and review the risk management plan of the Company.

8) The Company has set-up a Corporate Social Responsibility (CSR) Committee to oversee the

discharge of Corporate Social Responsibility obligations, as required under Section 135 of the

Companies Act, 2013. The Committee consists of Mr. S.B. (Ravi) Pandit who is the Chairman, Mr.

Adi Engineer and Mr. Sachin Tikekar. The role and objectives of the Committee are:

i. Formulation and recommendation to the Board, of CSR policy;

ii. Identification of activities to be undertaken by the Company;

iii. Recommendation of amount of expenditure on CSR activities;

iv. Monitor the CSR policy from time to time.

2.3 Board and Senior Management Compensation:

The compensation of the Board is determined in accordance with the following parameters:

• Legal considerations:

This takes into account the maximum limit set out by the Companies Act, 2013 and the rules made

thereunder for remunerating Executive and Non-Executive Directors and is primarily based on the

profits of the Company for the financial year.

• Best Practices:

Remuneration to Executive Directors consists of a fixed component and a performance based

incentive. These are based on the individual performance of the Director and the overall

performance of the Company. Remuneration to Non-Executive Directors is based on the director’s

chairmanship / membership of the Board Committees, contribution of the Director to the

Company’s business outside the Board Meeting and the duration of directorship during the year.

Similarly, compensation of the Senior Management consists of a fixed salary component and

variable pay. The variable pay is dependent on the performance of the individual and that of the

Company. In addition to the performance of the individual, one of the additional factors

determining the pay to the Senior Management is the Key Behavioural Attributes (KBA). The KBAs is

a set of attributes, which an employee demonstrates while in performance of his duties. Each KBA

represents a particular value of the Company and this system of performance measurement

provides perfect alignment of the behaviour of the individual with the Company’s value system.

Compensation of Independent Directors is decided based on the following factors:

• Attendance at Board meetings,

• Attendance at Board committee meetings,

• Chairmanship of the Board,

• Chairmanship of the Board Committees,

• Contribution at the Board and Committee

meetings,

• Guidance and support provided to senior

management of the Company outside

the Board meetings,

• Industry practices,

• Performance evaluation and

• Performance of the Company

16


2.4 Whistle Blower PolicyIn an effort to demonstrate the highest standards of transparency, the Company has adopted the

‘Whistle Blower Policy’, which has established a mechanism for employees to express and report their

concerns to the management in a fearless manner about unethical behavior, fraud, violation of the

code of conduct or ethics. This mechanism also provides for adequate safeguards against

victimization of employees who avail this mechanism and also provide direct access to the Chairman

and members of the Audit Committee in exceptional cases. This policy has been uploaded on the

website of the Company for effective circulation and implementation. The purpose of this policy is to

establish procedures for the:

1) Receipt, retention and treatment of complaints received by the Company regarding improper

activities, financial or otherwise, in the Company ; and

2) Submission by Whistle Blower on a confidential and/or anonymous basis, of concerns regarding

improper activities.

The purpose of this policy is also to state clearly and unequivocally that the Company prohibits

discrimination, harassment and/or retaliation against any Whistle Blower who:-

1) Raises concerns against improper activities; or

2) Provides information or otherwise assists in an investigation or proceeding regarding improper

activities.

The Policy also aims to protect any Whistle Blower who legitimately and in good faith raises concerns

or provides information against improper activities.

Everyone in the Company is responsible for ensuring that the workplace is free from all forms of

discrimination, harassment and retaliation prohibited by this policy. No employee or Director of the

Company has the authority to engage in any conduct prohibited by this Policy.

033.1 Domain wise breakup of all patents filed

3.2 Sparke 2016

3.3 EV Bus Project

3.4 Award List

INNOVATION AT KPIT

18


53

⦁ Hybrid

⦁ ADAS

⦁ High Performance Computing

⦁ BMS

⦁ Others (Signal processing, automotive, Embedded, VLSI, etc.)

15

13

4

3

18

Total patents filed in FY 15-16: 6 patents

• Complete Specification: 1

• Provisional applications: 5

Patent Title: GUIDANCE CONTROL SYSTEM FOR AN AUTONOMOUS VEHICLE

Application: Complete Specification

Brief Description: The present invention describes a guidance control system for an

autonomous vehicle, where the vehicle performs an autonomous navigation and

operation while a position of the vehicle is measured using a satellite navigation system.

The guidance control system has an antenna position compensation module, a vehicle

navigation module, a lateral control module, a heading control module and a yaw rate

control module. The antenna position compensation module provides guidance control

signal to the autonomous vehicle during selection of virtual antenna position.

Patent Title: SYSTEM AND METHOD FOR A SEAT LIFT

Application: Provisional

Brief Description: The present invention discloses the system and method for adjusting

height of vehicle seat and seat belt according to the user comfort and for reducing

vertebra and pelvis fatigue. In a semi-automatic mode, the vehicle seat is equipped with

seat lowering mechanism and the vertical portion of the seat, is fixed to the ground and

is adapted to detach from horizontal seat portion. Additionally, a pair of shoulder or

chest straps connected to a rear portion of seat backrest, is provided to comfortably pin

the passenger to the seat. In a fully-automatic mode, the system comprises of an electric

motor and a controller. The electric motor may be installed behind the seat or any other

convenient location. The motor is driven by the controller.

Patent Title: SYSTEM AND METHOD FOR CALIBRATION EXPERIMENTATION

OPTIMIZATION OF ENGINE


Brief Description: The present invention describes system architecture and method for

an automated way of measuring and ensuring the completeness of system requirements

for any automobile sub-system. The present invention includes repository of actors and

their use cases. Also, the relationship of various actors and their use cases is maintained.

The provision to add, modify or delete actors and use cases is provided to continuously

enrich the database and thereby, improving the completeness analysis for system

requirements.

3.1 Domain wise breakup of all patents filed

Innovation at KPIT

19

Annual Corporate Sustainability Report 2015-16Annual Corporate Sustainability Report 2015-16

Patent Title: SYSTEM AND METHOD FOR TRAFFIC OPTIMIZATION


Brief Description: The present invention discloses a method and system for

optimizing traffic using a game theory based approach. The game theory based

approach identifies the optimum Nash equilibrium and chaos theory to

formulate strategy for reaching such identified equilibrium. The

players/vehicles do not have any encouragement to move to other strategies

because the payoff function for any other strategy would be lesser than the

current one. It is possible that many of the equilibriums are suboptimal such as

the case when the two vehicles come head to head and stop. At this stage, if any

among the two players goes back, its payoff function decreases and if it goes

forward, there would be a collision. This could also be called as attractors if the

problem is formulated using chaos theory. The basic idea is to avoid attractors

which are suboptimal or find attractors which are the best.

Patent Title: SYSTEM ARCHITECTURE AND METHOD FOR AUTOMATED USE

CASE TO REQUIREMENTS COVERAGE TOOL


Brief Description: The present invention describes system architecture and

method for an automated way of measuring and ensuring the completeness of

system requirements for any sub-system of automobiles. The present invention

includes repository of actors and their use cases. Also, the relationship of

various actors and their use cases is maintained. The provision to add, modify or

delete actors and use cases is provided to continuously enrich the database and

thereby, improving the completeness analysis for system requirements.

Patent Title: MODULAR MICRO-CONCENTRATOR ARRAY BASED MULTI-

DIRECTIONAL SUN TRACKING SYSTEM FOR PHOTOVOLTAIC AND THERMAL

ENERGY HARVESTING


Brief Description: This invention provides an efficient architectural concept for

single or multi-axis solar tracking, for multidirectional solar energy harvesting,

which is low cost, modular and is capable of adaptability to small as well as large

scale implementation. In another aspect, the solar system architecture

according to the invention may be employed as a stand-alone solar

photovoltaic system, solar thermal system, solar thermal plus thermoelectric

system or an integrated solar photovoltaic-cum-solar thermal system.

20


This was the second year for KPIT Sparkle, a pan

India innovation-led design contest for Science

& Engineering Students. KPIT Sparkle 2016, in

association with the College of Engineering,

Pune (COEP) aims at fostering a culture of

innovation and critical thinking among

Engineering and Science students across

colleges in India. The theme for this year was

' Smar t So lut ions for Energy and

Transportation'. This year we received 1,700

innovative ideas from over 10,000 students

across 460 colleges in India. 54 best teams

made it to the grand finale of KPIT Sparkle 2016

and top shortlisted presented innovative and

sustainable solutions through scale models and

working prototypes.

Some of the projects featured ideas on Green

Energy, Alternate Fuels & Materials,

Autonomous Vehicles and Intelligent Traffic

Management.

The finalists were evaluated for novelty of their

ideas, completeness of prototype, fulfillment of

society's expectations/problem statement and

technical knowledge at a grand exhibition held

at COEP College ground, Pune.

Team Assist from The Indian Institute of

Technology, Kharagpur won the Gold award of

₹ 5 Lakhs for their 'i-Bike' project. The bicycle

model can drive itself autonomously and also

be driven manually, as and when required, in an

urban bicycle-sharing system to achieve in last-

mile transportation.

3.2 Sparkle 2016

21


Sparkle Winners

Gold award winner

Project name 'i-Bike' project

College name Team Assist from The Indian Institute of Technology, Kharagpur

1) Project name IC engine efficiency increase without compromising present

engine design

College name Team Explorers from Nehru College of Engineering and

Research Centre, Pambady, Kerala

Silver award winner

Developing a system to increase the efficiency and effectiveness

of solar water heating system

Team Veranya from College of Engineering, Pune

3) Project name

College name

Virtual speed breaker

Team Foxtrot Geeks from Hindusthan College of Engineering

and Technology, Coimbatore

2) Project name

College name

4) Project name Reverse pedal braking system

Team Trikeracers from College of Engineering, PuneCollege name

Adaptive Signal Systems for Efficient Traffic Control

Team Dynalithe Systems from Manipal Institute of Technology,

Udupi

5) Project name

College name

Green and facile synthesis of novel supercapacitor electrode

material using JUTE fibres as precursor

Team BIA from Indian Institute of Technology, Kharagpur

6) Project name

College name

Remote Road Quality Assessment and Analysis

RMR M.S. Ramaiah Institute of Technology, Bangalore

7) Project name

College name

22


3.3 EV bus project Hon. Prime Minister of India Shri Narendra Modi flagged off the Smart Electric Bus, an

indigenous technology developed by the India headquartered global technology company, stKPIT Technologies Limited, at the Indian Parliament on the 21 of December 2015. This project

was initiated by India's Minister of Road Transport and Highways (MoRTH) Shri. Nitin Gadkari.

The Central Institute of Road Transport (CIRT) supported this project to validate and ensure

that the electric bus technology is safe, reliable and well suited for Indian road conditions. This

initiative is inspired by Shri. Nitin Gadkari's call to the industry and research organizations to

develop indigenous, innovative and pollution free public transport for India. KPIT's Smart

Electric Bus enables clean mobility and is aligned with the Indian government's initiatives of

Make in India, Smart Cities and Swachh Bharat

The indigenously developed electric system with the IP being owned by KPIT, consists of

components like Motors, Lithium ion batteries and a power transmission unit. It is a versatile

system and features like range (100 km to 200 km), top speed (up to 100 kmph), air

conditioning etc. can be configured as required. This system is being designed to work in all

bus formats, i.e. front engine and rear engine, high floor and low floor etc.

Major Benefits from this technology would be -

1. Zero Emissions

2. Increased passenger comfort

3. Low maintenance

4. Versatile design to meet customer requirement

23


Replacing one diesel bus

with an electric bus can

save carbon d iox ide

emissions up to 48,000 kg a

year which is equal to

p lant ing 2 ,400 t rees

annually. It will also save

diesel worth ₹ 10 lakh a

year.

Hybrid bus

We received an award from Indian Automotive Technology and Innovation Awards (IATIA)

titled “Technology innovation of the year 2015” for hybrid conversion technology.

Currently, we are running hybrid bus pilots along with some of the transportation

undertakings to collect data and results about the performance.

24


3.4 Award List

It gives us immense pleasure to announce that KPIT has been recognized with the 'Promising Transport Innovation Award' at the International Transport Forum (ITF) 2016 Summit in Leipzig, Germany. It won the award for its technology 'REVOLO' that enables clean urban mobility.

The ITF Promising Transport Innovation Award recognizes innovations that have the potential to significantly improve the quality, performance, user experience, accessibility, sustainability or inter-modality of the transport. It is instituted by ITF, an inter-governmental organization which acts as a think tank for transport policy with 57 member nations. ITF is administratively integrated entity of the Organization for Economic Co-operation and Development (OECD), a unique forum where the governments of 34 countries with market economies work with each other, as well as with more than 70 non-member economies to promote economic growth, prosperity and sustainable development.

On receiving this award, Kishor Patil, Co-founder, MD & CEO, KPIT said: "We are honored to

receive this recognition from the International Transport Forum. It firmly establishes our

commitment to create sustainable technologies that have a positive impact on our

environment and are socially inclusive as well. Our smart electric system for buses is a

pollution-free and affordable solution which can be deployed at a very large scale." REVOLO

is a versatile system, designed to work across different bus formats. The key components of

the system are lithium ion batteries, electric motors, a power transmission unit and smart

electronic control units. The Smart Electric buses have multiple features like Intelligent

Transport Systems, Mobile Phone App for journey planning and ticketing, Wifi Infotainment

etc. which provide a superior ride experience that can help encourage adoption of public

transport.

25


KPIT is currently working with multiple bus manufacturers/partners in India, South East Asia,

Africa and South America to bring this technology to market. KPIT's first electric bus with

REVOLO was flagged off by the Indian Prime Minister Shri Narendra Modi in December 2015.

Two such buses are currently operating at the Indian Parliament for its members to

experience green and intelligent technology.

The award ceremony took place in the presence of ministers from 57 member countries of the

ITF. The theme of the event was 'Green and Inclusive Transport.' Kishor Patil, received the ITF

Promising Innovation in Transport Award 2016 from K. L. Thapar, Founder and Chairman,

Asian Institute of Transport Development and José Viegas, ITF Secretary-General.

04KPIT'S WAY OF

GIVING BACK

TO THE SOCIETY

4.1 Scope of our CSR initiatives

4.2 Environment

4.3 Education

4.4 Energy


4.6 Innovating, Inspiring, Appreciating

4.7 CSR initiatives in North America

4.8 Awards & Accolades

4.9 Graphical representation – Employee involvement Vs

No. of beneficiaries for CSR initiatives

27


KPIT's way of giving back to the society

CSR Team

Corporate Social Responsibility (CSR) has been an intrinsic part of KPIT's philosophy ever since its

inception. KPIT has a strong social commitment to the community we live in. We fulfil this

commitment both by employee participation and financial contribution. We focus on social

initiatives, where we believe, we can add significant value to our community worldwide, through

technology, our speed of innovation and employee participation.

Our volunteering efforts are in-line with our CSR guiding principles and philosophy. We believe

that responsible volunteering has the ability to make a lasting impact, enabling us to reach

maximum number of beneficiaries across the communities. At KPIT, we aim to create a more

equitable and inclusive society by supporting communities that lead to a sustainable

transformation and social integration.

Community Contribution is one of the seven core values at KPIT. It has a significant mention in our

Mission and Vision to reflect our commitment towards it. Considering our capabilities and the

need of the communities that we serve, we have reassessed the focus of our CSR initiatives. Actions

in line with CSR guiding principles, our strategies for the year 2015-16 are focused on key initiatives

to ensure significant impact.

4.1 Scope of our CSR initiativesBeing a socially responsible business organization, we continue to push the bar higher through

technology and innovation driven CSR activities. We believe it is our moral responsibility to give

back to the community, which in so many ways has contributed to our success and helped our

business grow. Therefore, we try and make a difference to every community around us,

wherever we operate.

01 EnvironmentMaking this world a better place to live in

02 EducationTransforming lives of people through science

and technology education

03 EnergyDeveloping innovative solutions for efficient

energy consumption and renewable supply

04 Employee EngagementEnsuring employee participation to make

maximum impact

28


Scope Of Our CSR Initiatives

01 Inside the campusPrimarily driven by the employee engagement activities

02 Within city limitsWithin the city limits, we conduct CSR activities in association with NGOs

03 In villages near our locationsAcross regions where KPIT has its presence

04 At places in need of emergency assistanceWe provide financial aid & undertake volunteer rescue operations during natural disasters

0403

0201

4.2 EnvironmentWater Conservation Projects

Background

India has a long tradition of water harvesting. Many of the traditional water harvesting

systems are no longer utilized or have lost their relevance due to their inability to meet the

community demands. For agrarian villages located in arid and semi-arid regions of

Maharashtra, any small reduction in rainfall can jeopardize agricultural yields, drinking

water supplies and the community's entire existence. To expand on the water conservation

projects we have adopted three different models for this year. We excavated new wells in

the villages, constructed check dams, stone bunding and also initiated land levelling

programs. Further, we also collaborated with Government of Maharashtra's flagship

initiative for water conservation - Jalayukta Shivar Abhiyan.

29


Farm Pond InitiativeInitiative

In order to address this issue, KPIT in association with Jnana Prabhodini an NGO and the

local village body from Kusgaon village, launched the farm pond activity in the year 2012.

We built 15 ponds across 5 villages that irrigated 500 acres land, benefiting almost 20,000

people with the support of 1,200 employees. Further in the year 2015-16, we extended our

projects in Pune and Bangalore. Two at Ranje (Shivapur, Pune) and one at Aladahalli,

Nelamangala(Bangalore). In Pune, well excavation was carried out at 4 villages namely

Dhumal Wasti, Metpilawar, Guhini Bhor & Gelhgani which was followed by construction of

two check dams at Sanaswadi.

What makes our Water Conservation project unique?

⦁ This project directly impacts 21,000 beneficiaries

⦁ This has significantly impacted the village economy

⦁ Multiple ways adopted for water conservation, leads to greater impact

⦁ Penetration of these initiatives into more number of villages is helping increase the

water levels, thus impacting the villagers in a positive manner

⦁ Collaboration with the government on the water conservation project has led to

an increase in the reach with sustainable system in place

⦁ Provides enough water supply to farmers to irrigate their lands throughout the year

1,200 acres of agricultural land under irrigation, benefiting 21,000 people

from 7 villages

Volunteers building a farm pond and check dam

Water Conservation Projects - Impact

18000

16000

14000

12000

10000

8000

6000

4000

2000

No. of Employees Engaged No. of People Impacted

2013 - 2014

2014 - 2015

2015 - 2016

515 550 6002000 2500

16500

30


Jalyukta Shivar AbhiyanKPIT contributes towards making Maharashtra drought-free

Background

In a bid to make Maharashtra a drought-free state by 2019, the Maharashtra Government has

initiated the project "Jalyukta Shivar Abhiyan".The project involves deepening and widening of

streams, construction of cement and earthen stop-dams, working on drainage system and

digging of farm ponds.

As a socially responsible corporate, KPIT has decided to make villages water abundant & tanker

free.

Initiative

This project is in tandem with our CSR objective of water conservation. In association with Jnana

Prabodhini (Shiv Paradesh), KPIT volunteers conducted a survey of drought conditions in villages

near Pune. It was observed that although Kashedi village (15 km away from Panshet dam near

Pune) falls in the water catchment area of Panshet dam, it was facing acute drought issue. The only

source of drinking water in this village was a natural reservoir that was drying out, thus creating a

dependency on the government aided water tankers.

Being a small village with scarce population, there were limitations in the way Government could

fund to resolve drinking water issue of the village. After consultation with local government

authorities and Jnana Prabodhini's irrigation experts, KPIT decided to pump water into that

natural reservoir from the Panshet dam backwaters present in the vicinity of the village. Anil

Patwardhan, Chief Financial Officer & Shekhar Sonsale, AVP- Facilities & Logistics Management of

the Company flagged off this project in the village.

Impact

The project involves pumping water to a 150 Meters high by installing a pipeline (2" Diameter) of

1500 Meters. This water will be pulled by a submersible pump of 10Hp. These efforts will result in a

huge relief to the drought conditions faced by the villagers.

The uniqueness of the project lies in the synergism wherein the Government tackles the drought

condition, corporates commit to social responsibility and voluntary organizations execute these

efforts. After observing this commitment, villagers have started digging a channel for installing

the pipe line. The benefits of this water supply scheme was made available to the villagers from the

month of March 2016.

31


Zero Garbage ProjectBackground

For any developing city, waste management is one of the major challenges and all the stakeholders

in the society are striving hard to resolve this issue.

Initiative

KPIT along with Janwani (the CSR wing of MCCIA, Pune) partnered with the Pune Municipal

Corporation (PMC) and other stakeholders to initiate the Zero Garbage Drive in Pune. This initiative

focuses on separating the organic and inorganic waste at the source level. Further, the organic

material is used in the biogas plant for power generation and the inorganic waste such as plastics,

glass etc. is sold as scrap. The ultimate goal of the Zero Garbage Project is to process all waste at the

ward level and provide an alternative to transporting city waste to dumping yards in the city

outskirts like Urali-Devachi village.

Impact:

In the year 2014, four zero garbage awareness rallies were organized in different wards of Pune city,

involving 215 volunteers and reaching out to 2.61 lakh properties and more than 8 lakh residents.

Due to these awareness rallies, the door-to-door collection went up to 60% and segregation up to

40%. In the year 2015-16, we organized another drive at Bavdhan which involved door to door

campaign in association with the self-help groups. We reached out to nearly 2,000 beneficiaries and

with this we successfully completed door-to-door collection for 400 households and in case of

segregation 275 households.

Further extending our reach, we conducted a cleanup drive at Hinjawadi area in association with HIA

(Hinjawadi Industrial Association) and MIDC (Maharashtra Industrial Development Corporation).

The figures represent the number of employees that participated in the initiative

Zero Garbage Project Number Of Employees Engaged

815

2015 - 2016

210 2013 - 2014

250

2014 - 2015

KPITes spreading awareness about the Zero Garbage initiative

32


Environment WeekBackground

We have been celebrating the Environment Week on the occasion of the "World Environment Day"

for the past six years since 2010. In the year 2015-16 we celebrated the Environment Week - 2015

from 1st June to 6th June at all our India locations with great enthusiasm and vigor. Various events

were organized to create an awareness about environment related issues and to demonstrate that

we at KPIT, 'Care for Nature'.

KPIT Pune

"Best from Waste" was the most talked about event of the Environment Week. About 3,500

employees (all India location) participated in the environment week initiatives and displayed their

creativity and enthusiasm.

Swachh Bharat Act

In line with the Swachch Bharat mission of making India clean, at KPIT Pune we organized an act

aiming at spreading awareness on making India clean. CSR team performed this skit and around 200

employees witnessed the same.

Best from Waste

As a part of the Environment week, we invited employees to come up with best product by making

use of non-recyclable/waste products. 35 employees participated in the Best form Waste

competition.

Photography Competition

KPIT on a global level had organized a photography competition with the theme “Capture your

Nature”. 25 Employees participated in this competition. Carbon Footprint, Go Green, Save the

Planet, Recycling & Global Warming were the competition themes.

Floor Walk & Quiz Competition

CSR team conducted floor walks & quiz competition in all ODCs to increase awareness about

environment conservation.

Essay Writing Competition

This year for environment week, we invited all our employees globally to write an essay on

Environment and also suggest ways to present creative solutions for a better tomorrow. 30

employees participated in this competition. The concepts for the competition were 'Smart Cities,

Environment & E-Waste (Electronic/IT waste) - How to handle the future’

KPIT Bangalore

Greenathon (Street Play) – An awareness rally on nature conservation was organized on June 6th,

2015 wherein more than 100 enthusiastic KPITes participated actively. The event aimed at educating

the masses on saving and minimum utilization of natural resources. Street Play was performed by

KPITes that aimed at driving home the message of how we are harming nature and that it is high

time to give back to the nature. Further, to continue the impact, our passionate KPITes volunteered

to conserve the Doddakanahalli, lake.

33


Quiz

Quiz competition was organized to sensitize people on conservation of nature. More than 20

volunteers participated in the competition.

Clean up Drive

Clean up drive was organized in the campus wherein KPITes actively engaged in mulching and

weeding activity to ensure the rain water percolates deep into the ground during monsoons.

More than 50 volunteers participated in this activity and planted trees in the campus.

Organic Product Stall

Organic farming is a kind of farming which uses natural and biodegradable inputs from the

plants and animals and no chemical fertilizers. Consumption of products with chemical fertilizer

leads to health hazards and reduces soil fertility. Thus, in order to promote the use of organic

product, was organized in the campus. More than 250 KPITes participated in the event.

KPIT Mahape (New-Mumbai)

At Mahape as part of environment week we organized various activities to engage employees in

activities to conserve nature namely poster making competition, display of posters and photos

relating to conservation of environment, bay decoration, children's day, Origami, green & brown

attire day and NGO Mela wherein more than 120 volunteers participated collectively.

Paper Mache Workshop

In an attempt to encourage reuse and recycling of waste products, CSR Mahape conducted

“Paper Mache Workshop” for the employees. This was the third time that such a workshop was

organized. Beautiful artworks, installations and sculptures were created out of waste newspapers

and plastic bottles. The workshop was a huge success and also proved to be a great stress-

buster and evoked creativity amongst the participants.Artworks of commercial value have been

created out of waste articles and showcased how one can reuse old useless things into valuable

artworks.

As a part of the CSR Team, we continue the journey towards making the earth greener in a

sustainable manner.

Beautiful artworks made during Paper Mache workshop

34


KPIT Noida (Delhi-outskirt)

Paper Recycle Drive – An awareness video was prepared about paper reuse & recycle and was

displayed at every floor and the employees were encouraged to give their used/waste papers that

were collected & donated to an NGO for reuse.

Tree Plantation Drive – Saplings were planted in the vicinity of our office premises.

Environment Quiz – An enthralling quiz was organized to spread awareness about Environment.

Winners were awarded.

Street Play – Scintillating performances were given by ASK11 Batch spreading cognizance about

Environment through this 'Nukkad Naatak’

Photography Competition – A photography competition was organized where the volunteers

were asked to capture all the Environment week events and submit their entries in the form of a

collage. The best one was rewarded.

KPITes at Pune & Bangalore spreading awareness

about environment conservation via skit and

street play

Impact

Conservation of Private Forests in Koyna-Chandoli Corridor

Background

In 2012, Wildlife Research and Conservation Society (WRCS) completed a study on the current

status, distribution and dynamics of the Private Forests at Maharashtra Western Ghats. The study

showed that the private forests at the Western Ghats needed immediate conservation efforts. At

present large number of private forests are being clear-felled for their sale as firewood, which is

an unsustainable management practice. Due to this, the vegetation cover on the private forests is

vanishing rapidly.

4000

3500

3000

2500

2000

1500

1000

500

0No. of Employees

Engaged

No. of People

Impacted

2000

3500

35


Initiative

In the year 2013-14 in association with WRCS, we carried out the reforestation of 75 acres of

private land of Koyna-Chandoli corridor. To continue our efforts even this year (2015-16)

around 200 of our enthusiastic KPITes volunteered in various activities like seed collection and

sowing, watering the plants and grass clearing, vegetation assessment followed by cleaning of

grass, mulching of plants, and plantation. KPIT joined hands with WRCS for sustainable

management of private forests centered on scientific forestry.

KPITes contributing towards conservation of private forest at Koyna-Chandoli corridor

Conservation of Private Forests in Koyna-Chandoli Corridor

Impact

•Plantation and re-vegetation for establishing vegetation cover

• Objective is to conduct vegetation assessment and monitor progress of project interventions

• Extension program for informing local community about sustainable forest management

250

200

150

100

50

0

2000

160

2014 - 2015

2015 - 2016

No. of Employees Engaged

36


Tree Plantation ProgramsBuilding Oxygen Hub of Pune

Initiative

KPIT joined hands with Tree Public, an NGO, to help reduce carbon footprint by planting native

trees best known for their properties of purifying the polluted atmosphere and providing a

clean and healthy environment. In addition to the 1,000 trees planted last year, in 2015-16

nearly 250 saplings were planted by our volunteers.

Impact

⦁ Creating oxygen hubs for increasing oxygen levels

⦁ Reducing the ever-growing temperature variations in the Pune city

⦁ Reducing Carbon levels

⦁ Retaining Ground Water Table level

⦁ Increasing Bio-diversity and

⦁ Encouraging Bird Migration

We are proud to announce that each and every tree has been taken care of and the survival rate

is 100%

Initiatives at Bangalore

Tree Plantation at Shivanahalli

In 2015, as a part of the Environment week celebration at KPIT, we visited Ramakrishna Mission

Campus, Shivanahalli to restore the forest green cover and biodiversity in the Bannerughatta

National Park area. With the advent of industrialization, IT explosion and ever growing

population, Bangalore has already started losing its tag as the Garden city. Ramakrishna

Mission, Shivanahalli, have embarked upon a gigantic task of enriching the environment by

planting a variety of trees from Western Ghats and other forest region. Already 150+ acres of

land has been converted to pure forest which stands as the evidence. KPIT in association with

Youth For Seva has joined hands with Ramakrishna Mission to support this great initiative of

increasing the green cover of Bangalore by planting 300 saplings wherein 50 of our KPITes

actively participated in this initiative.

Passionate KPITes planted 300 saplings at Shivanahalli

37


Afforestation at Nelamangala

In the month of August 2015, KPIT in association with Youth For Seva successfully completed

the launch of Afforestation at Nelamangala event. As a part of this afforestation initiative at

Nelamangala, 20 of our volunteers actively engaged in planting of 100 saplings along with

mulching and weeding of 50 saplings. Throughout the year 2015-16 we planted more than 500

trees across 2 villages (Aladahalli and Kerekatignur).

Tree Plantation Programs (Year 2015 -2016)

KPITes engaged in afforestation activity at Nelamangala

No. of Employees

Engaged

No. of Trees

planed

1200

1000

800

600

400

200

0

460

1050

38


4.3 EducationChhote Scientists – KPIT's Flagship Initiative

Chhote Scientists: An initiative to teach science fundamentals to school children with the help of

“easy-to-make” & “fun-to-learn” scientific toys

Introduction:

Chhote Scientists is a collaborative project by KPIT Technologies and Jnana Prabodhini. It is a

community and social initiative to bridge the gap between text book knowledge and real life

application of scientific principles.

Scope:

This project focuses on building scientific knowledge and awareness of basic science principles

with simple experiments, demonstration and scientific toys, among the students from selected

schools around KPIT office at Pune, Bangalore & Mumbai.

Vision:

To encourage students to think beyond text book knowledge and to educate them about

application of scientific principles in real-life.

Mission:

• Development of scientific attitude among students

• Strengthening science fundamentals and principles

The Initiative

Being a technology company, KPIT has a significant number of engineers, technology experts

and science enthusiasts. Leveraging their experience & skills, we designed a unique program

called Chhote Scientists that aims at imparting practical education and inducing scientific

thinking among school students.

Chhote Scientists was launched in 2012. Using frugally developed scientific toys, we teach

students various scientific principles primarily in the areas of electricity, motion, pressure,

energy, magnetism and electronics.

No. of Students Covered No. of Employees Engaged

12000

10000

8000

6000

4000

2000

0

Chhote Scientists - Impact

1600800

16003000

10500

2400

39


Media coverage for Chhote Scientists Program

Over the last four years since 2012, cumulatively this program has benefitted 10,500 students

involving 2,400 employees. 800 employees participated in this initiative in FY15-16 alone,

conducting sessions on six different themes. Total 40 schools are covered this year. We

extended this program to 10 PMC's schools (Pune Municipal Corporation) & 10 PCMC's schools

(Pimpri Chinchawad Mahanagara Palika). A total of 300 sessions have been conducted so far

across all locations, comprising of 250 sessions at Pune, 30 at Bangalore and 20 at Mahape.

To continue with our expansion plan and to reach out to more and more children we proposed

this project to the colleges to conduct Chhote Scientists programs at the school. And the pilot

was conducted in Jalana College. As part of this initiative we had nearly 60 of the college

students volunteer for our Chhote Scientists program conducting 156 session, covering 26

schools and thereby reaching nearly 7,500 children.

40


vSolve CompetitionvSolve competition is held every year on the Science Day that marks the completion of the annual

calendar for 'Chhote Scientists'. Students from various government schools across Pune & Bangalore

who were trained under the Chhote Scientists program exhibit solutions that they developed by

applying scientific principles under the guidance of KPIT volunteers. Students got an opportunity to

apply their theoretical knowledge to solve real life challenges. This was a great chance for them to

take their learning to the next level.

At Pune Class 8 students were asked to purify water with the help of easily available material like sand,

charcoal, cotton, alum etc. Class 9 students had to increase the solar panel capacity by creating solar

concentrator. At Bangalore, students were asked to prepare “Balloon Car” with the help of given

material.

The students demonstrated various innovative ways and shown encouraging result. Teachers from the

school and KPITes were excited to witness the outstanding performance from the kids and participated

in huge numbers to motivate our Chhote Scientists.

Around 180 students across 35 government schools participated in the event

Teaching Classes at Thayimane, Bangalore

Thayimane is a humanitarian institute for underprivileged children and KPITes volunteer to educate

them. As a part of this initiative, KPIT volunteers met Mr. Keshvamurthy – Director of Thayimane in

January 2013 & chalked out a plan based on the number of students in various classes and the medium

of study. Initially we formed a team of 15 teachers who were experts in subject areas like Mathematics,

Science, Social Science, Computer Science, Kannada, English etc., but within 2 months, our teachers'

strength doubled, and currently our teaching team comprises 400 teachers. Our enthusiastic teachers

visit Thayimane regularly during weekends (Saturday/Sunday) to teach these students. We received

active participation from 400 volunteers completing successful 500 sessions for the FY 15-16.

Impact

The impact of consistent engagement with the children in teaching for the past 3 years at Thayimane

was commendable. The results of the committed volunteer engagement of our employees ensured the

students excelled academically. The higher primary school students passed with flying colors, while

earlier they were struggling to clear the exam. With regular and committed efforts, the students are

doing well in their exams. About 75% of the students were able to score distinction, 15% scored second

class and 10% of the students were able to pass the exams and get promoted to the next class.

Mr. Ravi Pandit, Chairman & Group CEO, KPIT talking to students during vSolve Competition

41


Skill Donation

KPIT believes in employee involvement instead of merely contributing money for the society

initiatives. Under this initiative, the employees passionately transfer their skills and interests, which

they have garnered over the years, to benefit the greater community. Employees not only volunteer

to build children's skills, be it teaching Mathematics/English, dance, singing, art and craft, sports

etc., but also get an opportunity to explore their interests and meet like-minded people.

We launched this in the month of February 2016 and nearly 60 of our employees have rolled their

wheels and reaching nearly 200 beneficiaries to make a visible impact and thereby enhance the

skills of the children.

Teaching classes at Sarasvati Bal Niketan, Noida

Sarasvati Bal Niketan School was established in 2003 by a trust named Brahmashree Saraswathi

Devi Aadishakti Math. The school aims to educate the underprivileged children in the surrounding

localities. Currently a total of 350 students, from nursery to the fifth standard, are studying at the

school. For the past two years, KPIT employees have been volunteering as teachers at Sarasvati Bal

Niketan and have been visiting the school twice every month to teach these children. They employ

interactive methods, such as practical science experiments, to make learning fun for the students.

Impact

This is an ongoing initiative wherein KPIT volunteers are enhancing skills and capabilities of these

students, thereby helping them improve academically. These sessions are also making them more

confident, enhancing their practical knowledge and better understanding of the concepts. A total

of 96 sessions were conducted throughout the year involving active participation from 50

volunteers.

Glimpses of volunteers taking sessions and the entire team of Thayimane

Energetic and keen students at Bal Niketan with KPIT volunteers

42


KPIT Sparkle 2016, All India Science and Engineering Students ContestKPIT with the College of Engineering Pune (CoEP) organized KPIT Sparkle 2016, an initiative

which invited brilliant ideas that will change the face of innovation in India. The theme for the

contest was 'Smart solutions for Transportation and Energy'. This contest was open to all

science and engineering bachelors, masters and Ph.D. students to participate as individuals or

teams of maximum 5 members. The winning idea received ₹ 5 lakhs while the seven runners

up won ₹ 1 lakh as the prize money.

KPIT Sparkle aims at fostering a culture of innovation and critical thinking among engineering

and science students across colleges in India. The competition with the theme of 'Smart Solutions

for Energy and Transportation' received 1,700 innovative ideas from over 10,000 students across

500 colleges in India. 54 best teams made it to the grand finale of KPIT Sparkle 2016 and top

shortlisted presented innovative and sustainable solutions through scale models and working

prototypes.

Some of the projects featured ideas on Green Energy, Alternate Fuels & Materials, Autonomous

Vehicles and Intelligent Traffic Management.

The finalists were evaluated for novelty of their ideas, completeness of prototype, fulfillment of

society's expectations/problem statement and technical knowledge at a grand exhibition held at

COEP College ground, Pune.

Team 'Assist' from The Indian Institute of Technology, Kharagpur won the Gold award of ₹ 5 Lakhs

for their 'i-Bike' project. The bicycle model can drive itself autonomously and also be driven

manually, as and when required, in an urban bicycle-sharing system to achieve in last-mile

transportation.

43


Team BIA from Indian Institute of Technology,

Kharagpur, for the project on green and facile

synthesis of novel supercapacitor electrode

material using JUTE fibres as precursor

Team RMR from M.S Ramaiah Institute of

Technology, Bangalore for Remote Road

Quality Assessment and Analysis

Team Veranya from College of Engineering,

Pune for their for developing a system to

increase the efficiency and effectiveness of

solar water heating system

Team Trikeracers from College of Engineering,

Pune for their project on reverse pedal braking

system

Team Explorers from Nehru College of

Engineering and Research Centre, Pambady,

Kerala for their project IC engine efficiency

increase without compromising present

engine design

Team Foxtrot Geeks from Hindusthan college

of engineering and technology, Coimbatore,

for their project on virtual speed breaker

01 02

03 04

05 06

The following 7 teams won the Silver award for ₹ 1Lakh each:

44


Team Dynalithe Systems from Manipal

Institute of Technology, Udupi for their project

'Adaptive Signal Systems for Efficient Traffic

Control'

Ravi Pandit, Co-founder, Chairman & Group CEO said, “We congratulate the winners and

commend all the students who participated in KPIT Sparkle 2016. We are delighted to see the

solutions that the students came up with and how creatively these were executed and

showcased. The groundbreaking scientific ideas that we received show that given an

opportunity, today's youth can not only identify critical problems but also come up with cleaner,

safer and smarter solutions. Through KPIT Sparkle 2016 we continue our endeavor to foster

scientific thinking and nurture the problem solving ability of the bright, young minds of this

country.”

Dr. R. A. Mashelkar, Head, Innovation Council said, “It is heartening to see that today's youth is

motivated to solve problems that need urgent solutions. KPIT Sparkle 2016 has once again

proved to be a brilliant platform for engineering and science students to showcase their

innovative ideas; which will resolve real world problems with the use of technology. The projects

and working models presented at the grand finale were highly impressive, not only in terms of

ideation but also because they are cost effective and potential game changers. I congratulate

the winners and wish them the very best for taking their ideas to greater heights.”

The projects were reviewed and evaluated by a jury comprising of eminent judges, consisting of

scientists, industrialists and academicians including Dr. R A Mashelkar, Head, Innovation

Council, Shri Vinit Goenka, Member IT Task Force at Ministries of Shipping, Road Transport &

Highways, Government of India; Air Marshal Shri Bhushan Gokhale, Consultant to Principal

Scientific Advisor, Govt. of India; Shri Satish Ogale, Chief Scientist, CSIR-NCL; Dr. Ashish Lele,

Polymer Science and Engineering Division, NCL (National Chemical Laboratory); Ms. Rashmi

Urdhwareshe, Director of ARAI, Prof. CS Kumar, IIT Kharagpur; Mr. Nachiket Gole, Industrial

Designer and Dr. B. B. Ahuja, Director of COEP, Prof. Devang Khakhar, Director, IIT Bombay was

the chief guest at the awards ceremony.

07

KPIT Sparkle 2016, All India Science and Engineering Students Contest

45


1

10

27

9

316

95

333

51

92

3

416

1

1

1

3

6

21

66

374

43

270

4812

16

Following is the State-wise data for the 1700 ideas/abstracts received from all over India

46


School Kit Drive Initiative

In association with "Seva Sahayog" & "Youth for Seva", we have been conducting the "School Kit

Drive" for the last 7 years and have received an excellent response and participation from KPITes.

In the year 2015-16 around 1,300 employees participated and donated 3,700 school kits.

Another fun-filled part of this drive is the assembly of the school kits. The whole process included

checking the quality of the bags, assembling and final quality check of the packed school kits.

The activity consists of putting everything together and making sure that the bag is ready for

delivery. Around 200 employees along with their families participated in this drive this year.

Impact

As per the feedback received from Seva Sahyog, there has been a tremendous decrease in school

dropout ratio in rural, urban and tribal areas where we are delivering our kits.

School Kit Drive - Impact

4500

4000

3500

3000

2500

2000

1500

1000

500

0

No. of Benefitted Children No. of Employees Donated

3300

1371

3500

1200

3700

1300

Volunteers assembling school kits for the underprivileged students

47


Audio Recording for the visually impairedThis year in March 2016 we launched a new CSR initiative at Bangalore “Audio recording for the

visually impaired” taking a step towards building an inclusive society. The Digital Library was started

in May 2008 and aims to reach out and catalyze education for the print-disabled persons (visually

impaired, slow-learners and dyslexic children). The disabled students produce their text books

which need to be converted into a digital form, volunteers who wish to record these books help in

converting the text books. The final audio is put in a CD and the students can use it according to

their convenience. The library now has hundreds of books and the number is growing. The type of

recording done helps students learn easily. Nearly 83 of our KPITes participated in this initiative.

4.4 ENERGYMild-concentrated solar Photovoltaic technology

As we all know, India is heavily dependent on other countries for the crude oil-related energy

resources. Hence, in order to be self-reliant, we need to substantially increase our usage of

renewable energy resources, such as solar, wind and biodiesel. Solar being the most abundant and

also technologically advanced energy source amongst these, the Indian Government has

announced for reaching 100GW solar Photovoltaic (PV) installation by 2022.

Most of the solar panels available today are made of poly- or mono-crystalline silicon wafers.

Silicon wafers fabrication process is extremely capital intensive and this is why we do not have a

manufacturing unit of Silicon wafers in India. Hence India has been completely dependent on China

and other countries for the import of these wafers as they are available at low cost and thus are

affordable.

The solar PV technology that KPIT Technologies has

innovated, deals with this challenge. We have

developed a low-cost and light weight concentrator,

which can concentrate up to 3-5 times the light that is

incident on it. Due to this, the usage of silicon wafers

has decreased up to 70% in the panel. Such a mild-

concentrated PV system generates around same

wattage/area as a conventional panel would, at a 20-

30% lesser cost. The technology is now available to

voluntary organizations for social cause.

48


4.5 Employee EngagementBlood Donation

Initiative

KPIT, in association with various NGOs across different locations organize blood donation camps to

help hospitals and blood banks tackle the blood shortage issue. We received very good response from

employees across all locations.

Figures represent the number of employees participated and associated Partner NGO

Blood Donation - Impact

1050

1000

950

900

850

800

750

700

02013-14 2014-15 2015-16

NGO Fair

Every year, on account of the auspicious Hindu festival -Diwali, our partner NGOs are invited to the

NGO Fair organized at KPIT premises in Pune. In 2015, five NGOs were a part of the fair. With this we

reached out to nearly 500 beneficiaries.

KPIT employees donating blood selflessly

Eco-friendly products on display for sale by NGOs – Volunteers helping NGOs raise fund

Number of Employees Engaged

707

250

100

50

Location

PuneBangalore

Mahape

Noida

Partner NGOs

Jankalyan Blood Bank & Deenanath Blood Bank

Sankalp Foundation

Wamanrao Oka Blood BankRotary Noida Blood Bank

900863

1031

49


Nirmal Shaala – A step towards Swachh Bharat

Nirmal Shaala in association with Youth For Seva aims at facilitating the construction, operation

& maintenance of toilets in all government schools in Bangalore. As a part of the Swachh Bharat

Abhiyan, volunteers were required who could conduct a survey on the toilet conditions in

schools. Around 50 volunteers participated in this initiative.

KPIT Volunteers conducting survey on toilet condition in schools

Annadaan

“Annadānam Samam Dānam Trilokeshu Na Vidyathe” from the Vedas means that Anna Dāan /

Food donation is supreme and incomparable to any other charity. Food is the basic requirement

for all living beings, including humans.

Through this unique initiative of Annadaan we requested our colleagues to put aside one

handful of grain every day, for three weeks. Around 4,000 employees participated to amass

10,734 kgs of food grains for this year that helped nearly 2,000 beneficiaries across Pune,

Bangalore, Mahape & Noida.

Contributions reaching the beneficiaries

50


KPIT's CSR Team extending support to disaster struck areas

Chennai Flood Relief Fund

Chennai, a city of 4.6 million people on India's south east coast, was reeling from the heaviest

and deadliest rains in decades. In October 2015, flooding killed at least 280 people in the region.

About 28,000 people were rescued and more than 1.25 lakh people were evacuated. Despite

combined rescue efforts by the military and civilian emergency services, some areas were yet to

receive relief and undertake rescue operations. KPIT decided to support our Partner NGO Youth

For Seva in rehabilitation work. We raised ₹ 10, 00,000/- which has been deployed in medical aid

of the flood victims.

Nepal Earthquake Relief Fund

The 2015 Nepal earthquake that killed more than 7,000 people and injured more than twice as

many, occurred on 25 April, with a moment magnitude of 7.8 on Richter scale. It was the most

powerful disaster to strike Nepal since the-1934 Nepal-Bihar earthquake. KPIT CSR Team was

part of the immediate rescue work and also initiated the rehabilitation work.

KPIT CSR team at Nepal engaged in rehabilitation work

Donation Drive

Nelgunda English School

Nelgunda is a remote village in the lush green forest, 350 kms away from Nagpur. There is an

existing modest infrastructure of two rooms initially made for the Zilla Parishad School. The

building today stands in a dilapidated state. The plan is to modify the existing infrastructure &

make it operational for 40 students in first year of operation and the Nelgunda School need

help on the following facilities

• Set up the necessary furniture

• Construct a kitchen-shed cum storage-area, as the school will provide breakfast and lunch to

the enrolled children

• Construct usable toilet-blocks

• Provide portable water to students and staff

KPIT came forward to support Nelgunda English School, A Project by Lok Biradari Prakalp,

started and run by Dr. Prakash and Dr. Mandakini Amte. Nearly 500 employees contributed

towards this initiative supporting the education of nearly 1,000 children.

51


4.6 Innovating, Inspiring, Appreciating … To inspire our volunteers we organized a review meet called "CSR Manthan 2015". As part of this

activity, we held a small get-together with our Chairman Mr. Ravi Pandit at his residence.

Volunteers shared their experiences and gave valuable suggestions to take this volunteering

movement to the next level. Our NGO partners joined us for this brain-storming session. Mr.

Ravi Pandit appreciated the hard work put forth by the volunteers and also congratulated them

for their success. He thanked all the NGO partners for their valuable support. We also invited

Ms.Lila Poonawalla, an Indian industrialist, philanthropist, humanitarian, an award recipient of

the fourth highest civilian award Padma Shri by the Government of India in 1989 to motivate our

volunteers. At Bangalore, CPOO Mr. Abhishek Sinha appreciated the volunteers on their efforts

and encouraged them to take it to the next level with more participation from the team

members.

In continuation with our efforts we invited Dr. Prakash Amte and Dr. Mandakini Amte to share

their inspirational life story. To spread the positivity and encourage our volunteers we have

launched CSR Snippet on the Company’s ecube portal.

Nelgunda School after the renovation

Glimpses of CSR Manthan & Eminent personalities addressing our Volunteers

52


4.7 Corporate Social Responsibility (CSR) initiatives, North AmericaCSR North America Welcomes Earth day April!

The 1st Annual KPIT NA IBU/SBU Earth Day Challenge powered by Joulebug in honor of Earth Day

2015 began in the month of April. As part of KPIT’s “ONE KPIT” initiative and in conjunction with our

CSR efforts, the NA CSR group has sponsored our 1st Annual KPIT NA Earth Day IBU/SBU

Challenge powered by Joulebug, an interactive Smartphone app created in a game-like format

dedicated to tracking sustainable actions. Actions include but are not limited to: recycling, using

reusable cups and plates instead of disposable, walking or biking instead of traveling by car, taking

the stairs instead of the elevator, conserving energy by turning lights and equipment off, etc. The

Challenge was organized from April 16 – April 23 and has pit IBUs and SBUs against each other as

they try to earn the most points and secure the coveted “KPIT Cup”.

KPITes taking up the Earth Day Challenge

Tutoring - Wake NCSU STEM Early College High School

In continuation with our tutoring program for the Wake NCSU STEM Early College High School.

Even for the FY15-16 we witnessed more number of Raleigh KPITes visit students needing support

each week and provided tutoring services in Trigonometry, Algebra and Chemistry.

In the month of March 2016, KPITes at Raleigh office hosted STEM early college high school

students for “Job Shadow Day”. Students met members of the technical team who talked to them

about what it is like to work for a global technology company. These students participated in

interactive activities and were able to ask questions and tour the office. To close the month of

March 2016, Raleigh KPITes hosted a student information event on the campus of North Carolina

State University. The team met with over 100 Computer Science undergraduates to educate them

on KPIT as a company and provide mentorship and guidance as they begin to look for employment

after graduation.

53


KPIT team member on advisory board of NCSU

CSR NA Committee member, Nicole Chahboun, EPLM Partnerships and Global Sourcing

Manager, joined the North Carolina State Early College STEM School's Business Advisory panel.

Nicole is on this panel amongst some very important executive level people from well-known

US companies such as SAS, Duke/Progress Energy, IBM and others. Individuals are hand chosen

and go through a rigorous interview process. Nicole is meeting with the group on a monthly

basis to discuss programing, events and other opportunities. Being a part of the front end

discussions, Nicole positioned KPIT appropriately to continue our deep involvement with the

school and its students.

KPITes teaching students at Wake NCSU STEM Early College High School

Design Programs & Recruitment geared up

Raleigh CSR team ramped up involvement with North Carolina State University (NCSU);

participating in both the NCSU Sr. Design program and several recruiting events came by

specifically towards computer science majors.

The Sr. Design program allows Corporations from across the nation provide real-world learning

experiences for NCSU students as part of the colleges required coursework, CSC 492.

Organizations provide a problem statement and a mentor team, and the university provides

talented students suited to the needs of the project. Under the direction of the Senior Design

Center staff, the student teams follow a software development methodology; develop project

documentation and present progress reviews. This unique academic and experiential focus

gives students the opportunity to enhance their communication, collaboration, project

management and leadership skills. This creates a true "win-win" situation for both company

sponsors and NCSU students.

CSR team Raleigh submitted a proposal entitled “ASD Simplified Technical English Grammar

Proofing” - Simplified Technical English, or Simplified English, is a controlled language originally

developed for aerospace industry maintenance manuals. STE was created for use in the

aerospace and defense industries, but other industries have used it as a basis for their own

controlled English standards. STE is a carefully limited and standardized subset of English that

addresses difficulties in comprehension such as complex sentence structures, confusing word

forms and ambiguous vocabulary. STE is defined by the specification ASD-STE100, which is

maintained by the Simplified Technical English Maintenance Group (STEMG). The specification

contains a set of restrictions on the grammar and style of procedural and descriptive text. It also

contains a dictionary of approximately 875 approved general words. The specification also

provides writers guidelines for adding technical names and technical verbs to their

documentation.


While there are several existing products to assist in document proofing for ASD-STE, no clear

leader has emerged. Additionally, none of them integrates seamlessly into Microsoft Office.

The student team will work with KPITes to implement a Grammar Proofing system based on

specific identified rules.

Career Fair & Expo

On February 3, 2016, Raleigh KPITes attended the North Carolina State University Engineering

Spring Career Fair and Expo. The team met with 200+ Computer Science undergraduate and

graduate students. During the event, students shared details of their current and past projects

as well as career aspirations while KPITes provided feedback and advised them.

KPITes from Raleigh office at Career fair & Expo

Food Drive

During the month of May 2015, CSR NA sponsored a food donation drive to benefit families

being helped by the Women's Center of Wake County. The collection ran from April 10 – May 15

and helped to restock the Women's Center pantry with much needed food and toiletry items.

Further in July, a group from KPIT Raleigh employees headed to the Ronald McDonald house of

Durham, NC to prepare and serve dinner to the 75 families currently being helped by the

organization. The KPIT team prepared and served pulled pork, macaroni and cheese,

vegetables and lots of dessert to what turned out to be a very appreciative group of families.

In March this year a group visited Ronald McDonald House where they prepared and served

lunch to families of sick children staying at the facility. All food items and paper products were

also donated by the team.

54

55


In December 2015 we organized a holiday toy drive where toys were collected to benefit the

Women's Center of Wake County. The group was able to collect over 75 new toys which were

donated to a number of extremely thankful families. The Women's Center of Wake County

provides case management, financial assistance counseling, nutrition assistance, short term

shelter and health education and testing services to single women and women with families.

KPIT employees posing with toys donated to the Women's Center of Wake County

Marathon

In August 2015, the Raleigh team sponsored Small Hands Big Hearts United (SHBHU) first ever

5k /10k Run fundraiser. Funds raised by the each of the 150+ registered runners will be used for

active SHBHU committees and Compassion Missions that are helping to nurture the instinctive

compassion of children in the Raleigh area.


Veterans Corporate Technology Day

On November 19, 2015 Raleigh KPITes attended the Veterans Corporate Technology Day

(VCTD) hosted by CISCO and in partnership with the United Service Organizations of North

Carolina (USO, NC) and North Carolina State University (NCSU). Veterans Corporate

Technology Day (VCTD) is day focusing on recruiting military veterans, easing their transition to

civilian life and connecting them with educational and career opportunities in information and

communications technology (ICT). Ken Ratashak, Director ePLM Practice, was selected as a

panelist and spoke to 150+ attendees about his transition from the army into civilian life. He

provided examples and different educational tools that the attendees could use to help them

land a job in the Technical Field.

Corporate Veterans talking to Military personnel, guiding them for a career in ICT

Launch of Community Initiatives at Columbus Indiana

In the year 2016, we launched corporate social responsibility volunteering activities at our

Columbus Indiana location. As part of this initiative a team of 7 volunteers participated towards

clothes segregation activity at Sans Souci.

Enthusiastic volunteers participating in the CSR launch activity

56

57


4.8 Awards & AccoladesKPIT Honored with the 'Best CSR Practice Award' by the World CSR Congress

The 'Best CSR Practice Award' is conferred to companies for their outstanding activities in the

field of social work. The awards saw participation from around 280 companies, out of which only

30 companies made it to the final.

On 7th December 2015, KPIT was honored with the 'Best CSR Practice Award' by the World CSR

Congress in an award ceremony held in Mumbai.

KPIT was recognized for its exemplary CSR work in the fields of education, energy and

environment. KPIT supports these CSR projects financially as well as engages employees in

these activities.

‘Best CSR Practice Award' being received by KPIT at the World CSR Congress (Mumbai)

Amity Award

In the year 2014, KPIT Technologies won the Amity

CSR Award in the IT category. This award was

given to KPIT for its innovative and metrics-driven

CSR initiatives in the field of Education and

Environment. Amity awarded KPIT with a Special

Recognition Award for extraordinary work in the

field of CSR in 2015.

Amity Award 2015


4.9 YOY Number of Beneficiaries v/s Employee Engagements Employee Engagements v/s Beneficiaries of our CSR initiatives

As per our CSR guidelines, all practices and initiatives should be metrics-driven for greater

transparency and to ensure measurable results. We aim to achieve employee engagements

equal to or greater than 1.5 times of total employee strength in a given year. For the year 2015-

16, we reached nearly 53,093 beneficiaries with 16,044 employee engagements in the

community initiatives. We, at KPIT, are proud to announce that, in adherence to our objective to

achieve employee engagements for the FY 15-16, we could successfully reach out to more

beneficiaries and engage more number of employees in CSR initiatives than ever before.

6000

5000

4000

3000

2000

1000

0

14819

37555

53093

11213

15201 16044

2013 - 2014 2014 - 2015 2015 - 2016

58

055.1 KPIT Green Campus

5.2 Power

5.3 Project undertaken at KPIT for reduction in

power consumption for desktops

5.4 Air Conditioning

5.5 Lighting

5.6 Water

5.7 Waste Management at KPIT Campus

5.8 Environment Awareness Campaigns

5.9 Occupational Health & Safety

5.10 New Campus coming up in Phase III

ENVIRONMENT

INITIATIVES AT KPIT


60

Being an environment conscious company, KPIT is also committed toward ensuring people

health and safety, has adopted the best practices from ISO14001, in the area of environmental

management and from OHSAS18001, in the area of occupational health and safety.

KPIT's IT Campus at Pune aims at creating an environment that fosters creativity through

collaboration. The facility has been built to promote business locally and to aid global growth.

The campus at Hinjawadi, Pune, is spread across a sprawling 480,000 sq. ft. that comprises four

buildings with a combined seating capacity of 4200+ employees with access to open landscape

through the ground floor. The campus design is not only an insignia of KPITs commitment to

energy efficiency and sustainable development, but also embodies the spirit of corporate values

– boundarylessness, knowledge sharing and team work.

Being a socially responsible IT services company, KPIT neither consumes non-renewable

resources of energy nor does it generate process waste or emissions as compared to a

conventional manufacturing industry. Due to the nature of our business, we utilize resources like

energy, water and other secondary resources. While we do acknowledge its impact on the

environment, we have robust processes and systems in place to identify, quantify and reduce

such impact on the environment.

Environment Initiatives at KPIT


5.1 KPIT Green Campus:The facility enables optimum energy utilization to provide water efficiency and a low lifecycle

maintenance cost.

Glass has been used extensively on the north side of the building to let plenty of natural light into the

building without any direct sun-rays falling on it, thus reducing the heat load.

Use of skylights ensure natural light inside the building thus reducing the need for artificial lighting.

Double glazing with reflective glass has been used along the east and west sides of the buildings that

are cladded with dry Moeding tiles. This along with the services core located on the South side

further reduces the heat load on the buildings. Use of soft landscape in the exteriors and interiors

reduces glare and radiation to a great extent. This helps in keeping a micro climatic control on the

exteriors as well.

5.2 Power: Today, conservation of electrical energy is extremely important for two major reasons:

⦁ Scarcity of power, that results in load shedding in almost all states of India, that in turn is not only

inconvenient but also adversely impacts the economy.

⦁ India is world's third largest carbon emission country, primarily because more than 60% of power is

generated using coal.

As a responsible corporate, KPIT has been undertaking various initiatives to reduce energy

consumption that has resulted in a reduction of 9 % KWH units per person with respect to last year

and overall reduction of 35% in energy consumption over the past 9 years.

KWH consumption per person for 2015-16

Power consumption is primarily required for three major areas namely:

● Computers and Servers

● Air conditioning

● Lighting

● Utility

49% UPS_Total

28% AC_Total

15% UTL_Total

5% Cant_Total

3% UPS_Data Centre

Unit consumption

6.00

5.00

4.00

3.00

2.00

1.00

02007-

2008

2008-

2009

2009-

2010

2010-

2011

2011-

2012

2012-

2013

2013-

2014

2014-

2015

2015-

2016

KW

H p

er

pers

on

perd

ay

5.71 5.394.87 4.49 4.26 4.35 4.18 4.06 3.71

61


62

Computers and Data Centre: Of the total power consumption, 38% is by computers and data

centers. Efforts are being made to reduce this figure. Some of these efforts are listed below:

⦁ Server virtualization – 99% servers are consolidated and virtualized reducing data center

footprint as well as reduction in power consumption by 30%

⦁ We have implemented Flash storage technology (EMC ExtremIO) that helps us reduce the

power consumed by storage devices by 70%.

⦁ Soft phones: We focus on implementing various collaboration based technologies to reduce

travel and also investment in hard phones requiring additional power. We have implemented

CISCO Jabber technology integrated with IP telephony and Telepresence (Cisco Video

conferencing solution) across all our global offices. This has helped us reduce the need to

travel globally.

⦁ PC Shut down drives are undertaken frequently to curtail power consumption during non-

working hours. Employees are informed through mailers and posters to switch off their PCs

while not in use. This drive resulted in 95% reduction in such cases. Additionally, effective

power management tool has been installed on all desktops.

5.3 Project undertaken at KPIT for reduction in power consumption

for desktops:Name of the Project: Virtual desktop environment

Like majority of business organizations globally, KPIT also relies on its internal IT

implementations to make processes more efficient, increase automation and also deploy IT to

make collaboration across geographies easier. We have deployed the most advanced

technologies for our processes. These deployments are scalable and future ready to support

changing work styles, information security criteria and the changing usage patterns of

computing devices.

Environmental Challenges

The organization faces the following operational and environmental challenges:

⦁ Power Consumption: Power consumption increases in equal proportion to the number of

employees. Therefore there is a constant need to control this with energy efficient solutions

⦁ Space Utilization: Standalone computers with existing technologies are user specific and

prevent optimum space utilization and easy transferability.

⦁ Consumption of Natural Resources: Due to the advancement in technology, computers need

to be replaced every 5 years to be energy efficient.

⦁ Disposing of E-waste: Disposing of computers every 5 year result in an increase in E-waste.

Operational Challenges

⦁ As a fast growing organization, KPIT constantly requires efficient and scalable IT

infrastructure.

⦁ Our existing solutions reaching their lifecycle's end result in performance issues, which in turn

pressurizes the internal IT staff to spend most of their time on system administration and

troubleshooting.

63


Solution:

Considering the challenges, KPIT decided to shift from conventional desktop technology to

Virtual Desktop Interface (VDI). Following operational aspects were considered while

implementing the VDI solution:

⦁ Deliver on-demand services to users

⦁ Increase IT efficiency

⦁ Simplify management

⦁ Ensure software compliance

Though KPIT was already evaluating a virtualization solution that was deployed in a limited

environment, it had not explored the idea of transitioning the core ERP processes onto the

virtualized environment, but had transitioned only the less critical ones.

Taking a step further toward optimizing energy requirement and consumption, KPIT decided to

increase virtualization.

Solution and technology Deployed

⦁ VMware, EMC and CISCO Infrastructure Platforms

⦁ VMware Horizon View virtual desktop Infrastructure (VDI)

⦁ Thin client

Following Environmental Returns were achieved:

1. Energy savings:

More than 60% reduction in energy consumption was achieved by moving to the private cloud

platform with VDI as compared to using conventional computers. Cisco Unified Computing

System, which is included as part of the private cloud platform, delivers high-memory capacity

to support a large number of virtual machines on each blade server, thus reducing the amount

of physical equipment to be powered and cooled. The desktop computers that consume

around 150 watts of electricity, were replaced with very small devices called thin clients that

consume just 30 watts. This has resulted in energy savings of approximately 3,00,000 units per

year amounting to 375 MT of Co emission. 2

2. Reduction in E-waste:

Almost 90% reduction in e-waste generation was achieved due to the increased IT hardware

refreshment cycle for desktops, laptops & workstations.

Lifespan of the above mentioned hardware is about 5 years due to high resource requirement,

capacity & performance demand due to newer operating systems, application software & tools.

Being a technology provider it is extremely important for us to update our IT hardware platform

and ready it for next generation development tools.

3. The thin client on the other hand has more than 8 years of lifespan. Till that time it does not

require any upgradation or replacement as all the resources like computing power, memory &

disk space are accessed through VDI setup hosted in the datacenter. The overall reduction of E -

waste considering 10 years cycle for 1600 thin clients is given below:

4. Reduced IT Asset Ratio from 1.20:1 to 1.10:1:

VDI environment enables multiple users to access their accounts using a single machine without

compromising on the security aspect. Before deploying the virtual desktop environment, the

asset-to-employee ratio was 1.20:1. This meant that much of the IT infrastructure was

underutilized and was consuming more natural resources. After the deployment of the private

cloud platform with VDI, the asset ratio has reduced to 1.10:1 thereby reducing the computer

hardware consumption by 10%.

5. Workplace utilization increased by 10%:

The VDI helped in improving the utilization and flexibility of IT assets. Users can access their

desktop, applications and data from any location, without compromising on the security of the

system. Also employees can connect to corporate resources using any of the personal devices like

iPads, windows & android based mobiles; thus enabling consumerization of IT. This has led to

workplace flexibility & optimal utilization of workspace i.e. reduction in demand for 120 new seats

amounting to saving of 10,200 sq. ft. of space.

6. Change in UPS system for power efficiency:

KPIT has invested around ₹ 34 lacs for changing over to a better UPS system. This will give us

better power efficiency thereby reducing the UPS power consumption by 10% per annum.

5.4 Air Conditioning: Consumes almost 40% of power, which is the highest compared to any other resources. Major

investments were carried out for adopting energy efficient VRF technology. The VRF technology,

which facilitates local cooling and controls, resulted in considerable savings vis-a-vis a

conventional central AC system.

Apart from the basic infrastructure various operational initiatives were undertaken to reduce the

consumption such as:

• Grouping of ACs w.r.t project functioning schedules

• Closely monitoring the AC system during various seasons, by operating the system w.r.t ambient

temperature that resulted in approximately 30% reduction in electrical consumption

• Optimizing on fresh air intake that reduces heat load on air conditioning system

• Installing AC remote controls in every cabin near the exit door to reduce unwanted usage of AC

2640 nos @ 14.7 kg

(1200 PCs after every

5 years)

Conventional PC disposal twice in

10 years cycle with 10% additional

hardware requirement

38.8 MT E- waste

Thin clients disposal after 8 years 1600 nos @ 1.88 Kg 3.08 MT E- waste

Savings in E Waste 35.72 MT E -waste

64

65

5.5 Lighting:Apart from using natural lighting, steps were undertaken to reduce power requirement for

artificial lighting. Some of these are:

• Installing motion sensors to automatically switch off the lights whenever not in use

• Installing solar street lights along the perimeter road

• Installing timers to control street lights as required

• Washrooms and staircases are powered by hybrid solution of waste air cogeneration system and

PV solar panels

• LED lighting has been installed in one building whereby 56 watts consumed by a normal T-5

lamp was reduced to 14W of LED giving the same results however, reducing 75% lighting load

vis-à-vis kwh consumption.

5.6 Water:Water is used only for domestic purposes and is the second largest natural resource consumed by

KPIT. Therefore investments were made to reduce fresh water consumption by setting up a

sewage treatment plant (STP) within the campus. Now 70% of the water gets treated through STP

and is recycled & used for gardening purposes. Apart from recycling of water, a number of other

initiatives are also undertaken to reduce consumption of fresh water such as:

• Installing drip irrigation system for internal gardens

• Maintaining optimum pressure within water lines to reduce water wastage

• Regulating water flow at all the outlets practicing dry toilet concept at almost all the toilets

• Arresting leakages in pipelines and taps

• Engaging and educating employees through awareness drives

• Provision of hot water to the gymnasium and cafeteria kitchen using solar energy

The above initiatives that have been running for the last 4 years have been resulting in 11%

reduction in water consumption year-on-year. The following table captures the per capita water

consumption:

Monthly water consumption/person

1.8

1.6

1.4

1.2

1

0.8

0.6

0.4

0.2

0Year 10-11

wate

r in

cu

bic

lit

re

Series

Year 11-12 Year 12-13 Year 13-14 Year 14-15 Year 15-16

1.611.42

1.161.09

1.181.05

66

5.7 Waste Management: At KPIT CampusBeing an IT services company, there are no significant primary emissions or process wastes. Due

to the nature of our business, waste generation is limited and restricted primarily to municipal

solid waste (MSW). Other wastes include e-waste and a small proportion of hazardous waste like

lead-acid batteries, electrical waste, waste lube oil etc. Our waste management practice seeks to

reduce the environmental impact of this limited waste to the maximum extent possible by

reduction in generation and segregation at source.

Different methods of disposal for each category of waste in our workplace is summarized below:

• Bio-degradable food and garden waste – Vermicomposting

• Recyclable waste such as paper, plastic, card paper, steel, other metals etc. are sent for recycling

through authorized scrap dealers

• Other mixed dry waste - Sent to authorized dealers for municipal disposal

• Hazardous waste and E-waste – like waste lube oil, UPS batteries and other E-waste generated in

the organization is disposed through government authorized recyclers

• Printer and toner cartridges - Sent back to the OEM under product take-back arrangement

We have managed to reduce food wastage by 37% through continuous employee awareness

initiatives like posters, daily food waste generation communication, etc.

Bio-degradable (Food and Garden) Waste:

Disposal of biodegradable waste was a major concern

for KPIT as it generated a lot of methane gas if it was

dumped in the open. Hence a vermicomposting plant

with a capacity up to 175 kg was commissioned in KPIT

in 2011. KPIT switched to a new technology of

vermicomposting in June 2014. This system can intake

around 100 kg of biodegradable waste on a daily basis

and generate compost on a daily basis which is used in

garden as manure. The vermicomposting plant help in

consuming the entire food and garden waste

generated in the organization on a daily basis.

Food Waste in Kg per Month

1800

1600

1400

1200

1000

800

600

400

200

0

Year 11-12 Year 12-13 Year 13-14 Year 14-15 Year 15-16

817937 887 815 864

Q1 Q2 Q3 Q4 Year Avg

67

1200

1000

800

600

400

200

0Year 11-12 Year 12-13 Year 13-14 Year 14-15 Year 15-16

973 949 924

501 456

12000

10000

8000

6000

4000

2000

0Year 11-12 Year 12-13 Year 13-14 Year 14-15 Year 15-16

2739

73506539

10637

8041

Municipal solid and recyclable waste:

KPIT ensures that solid waste is segregated at the point of generation. Waste bins placed at

strategic places, continuous employee awareness through floor walks, posters and digital

communication has helped us reduce 53% of the municipal solid waste in the year 2015-16.

Similarly, recyclable waste is sent to an authorized vendor for recycling.

Paper is a major recyclable waste that we generate within the organization.

KPIT has therefore taken some effective steps to reduce paper and other office articles. These are:

⦁ Strict policy on the issue of papers to employees

⦁ Discontinuing supply of notepads to employees

⦁ Optimum usage of paper as rough pads

⦁ Bare minimum stationary supply to employees

⦁ Reduction in the availability of printing machines in office

⦁ Purchase of stationary consumables and other office consumables on imprest system

The above steps have not only helped KPIT achieve significant reduction in paper consumption

but also reduce generation of municipal waste by 9% Y-o-Y, despite the increase in employee

numbers.

Regular training to housekeeping staff and employee awareness has also resulted in better waste

segregation and increased recyclable waste by a whopping 66% over the last four years which also

indirectly helps in revenue generation.

Municipal Waste in Kgs (2015-16)

Recyclable Waste in Kgs (2015-16)

Sewage Treatment Plant: We installed and commissioned a STP plant having a capacity of

125,000 litres, which now helps in treating and recycling sewage water. The stored recycled water

is used for gardening purposes.

E-waste Management:

E-waste generated at KPIT includes defunct

computers, monitors, servers, etc. and specific

electronic and electrical items. This is managed as

per KPIT’s e-waste management policy, which

complies with the Government of India’s e-waste

(Management and Handling) Rules, 2011.

In FY 2015-16, 367 computers were disposed

through government authorized handlers/

recyclers. In addition, 116 computers were

donated to charitable institutions.

Hazardous Waste:

Hazardous waste is disposed through

authorized agencies as per the guidelines of

MoEF- (Ministry of Environment and Forests).

Additionally, all the used printer cartridges are

sent back to the manufacturer under “Planet

HP Take Back Program” to ensure proper

recycling.

5.8 Environment Awareness Campaigns:An e-learning module on environmental awareness has been made available on the employee

portal. The module is designed to create awareness on key environmental issues and initiatives

undertaken by the organization and the employee role in these initiatives. Various environmental

awareness campaigns are planned and carried out throughout the year for employee

engagement.

5.9 Occupational Health and Safety:KPIT constantly undertakes initiatives to ensure the safety and well-being of its employees at

workplace.

68

69

External Faculty Visits & Lectures on Health and Safety

A healthcare center has been set up at KPIT that offers all its employees free medical consultation

within the premises. We have a general physician, dietician, gynecologist and counsellor visiting on a

regular basis. In addition, KPIT also organizes sessions by external medical faculty in various fields.

Employee Awareness Drive @ KPIT

EOHS team organizes, plans and executes various programs, events, awareness etc. KPIT follows the

framework of incidents investigations which is tracked through incident management sheet

developed in-house. High risk, medium risk, low risk and near miss incidents are captured in the

sheet upon which CAPA is done for each incident. All incidents are reported to

[email protected]

Employee Transport and Safety

KPIT strongly believes that the safety and security of its employees is intrinsic to its core values.

One of the major focus areas from employee safety perspective is commuting in individual

transport or company provided transport.

Some of the safety measures taken are:

⦁ Mandatory alcohol tests are carried out for all drivers at the time of departure

⦁ Annual medical check-up mandatory for all cab drivers

⦁ Security escorts provided for female employees traveling between 2000 hrs to 0600 hrs and

being the last one to be dropped or the 1st one to be picked-up

⦁ All cabs departing after 2000 hrs having a female employee are tracked and monitored

continuously

⦁ Periodic training sessions planned for all cab drivers on safety, first aid, traffic discipline etc.

⦁ Incident reporting, root cause analysis, CAPA for all major and minor incidents are undertaken

⦁ Do’s and don’ts list and emergency contact helpline has been made mandatory on all the

vehicles

⦁ Only cabs upto 5 years vintage are used for employee commute

⦁ Usage of seat belts and helmets has been mandated within the premises

⦁ Yoga sessions are arranged for cab drivers to ensure they are stress free while driving

Some important events which were celebrated at KPIT to create employee awareness and also to

ensure that the employees live a healthy and stress free life are as follows:

Some of the initiatives undertaken for

employee safety and awareness are:

⦁ Awareness posters and mails

⦁ Work place exercises

⦁ Health and safety education through

floor walks

⦁ Evacuation drills and first aider’s training

⦁ Newsletters

⦁ E-learning module on EOHS for all employees

World Day for Safety

& Health at Work

World No Tobacco Day

World Environment Day

World Population Day

World Heart Day

World Diabetic Day

World Aids Day

Laugh Out Loud

World Cancer Day

World Save Water Day

28/04/2015

29/05/2015

05/06/2015

10/07/2015

29/09/2015

16/11/2015

01/12/2015

13/01/2016

04/02/2016

29/03/2016

ActivityActivity DateDate

Gymnasium facility

KPIT has an in-house state of the art gymnasium

with a dedicated instructor. A “Health History

form” is duly filled and maintained by the

instructor for each employee. Customized

training schedule is prepared for each employee

and the workout sessions are monitored by the

instructor.

70

Recreation facility

KPIT has a fully equipped recreation area & music room for employees to unwind in their free time.

Various indoor tournaments like Table Tennis, Carrom, Pool, Chess etc. are organized periodically.

Music classes are also conducted by external experts to impart training on playing various musical

instruments. Various sessions of meditation and yoga classes are held to benefit employees.

5.10 New Campus coming up in Phase-IIIAt Hinjawadi (Pune) phase III, KPIT is coming

up with facility of around 2.00 Lac Sq.ft with

scenic surrounding that comprises three

blocks with a combined seating capacity of

2000 + employees. The new campus will have

access to open landscape and water body

through its podium level. The campus design is

unique as the building block is built on a

terrain that merges into the hills, with

minimum earth excavation being carried out.

Aspects like innovation, uniqueness, efficiency

and purity were considered while designing

the campus. We are thriving to accomplish

every possible aspect to make the campus one

of the best possible work space.

It's architecture and interior will give an elevated

experience of work area with open meeting

rooms, discussion areas, informal seating etc.

Glass has been used extensively to allow plenty

of natural light into the building with provision to

avoid direct sun-rays falling on it, thus reducing

the heat load and giving clear view of the green

surrounding around.

71

KPIT Green Campus:

The campus is seated amidst natural scenic beauty with hill and green vegetation in the backdrop. This also created a challenge in terms of optimum rain water storage as the water would flow off through the hill. Approximately 97,500 Lac litres of this water was channelized along the plot through swell, ponds, bunds and quarry. Terrace water collection system is designed for efficient collection of rain water.

Out of the total land, 25,000 sq. meter area on ground will be used for landscaping. Around 1000 fruit and flower plants will be planted of 29 different species.

Sewage water generated will be treated by

Sewage Treatment Facility with Soil Bio

Technology (SBT) system. The treated water will

be used for toilet flushing and irrigation

purposes to achieve zero discharge.

72



6.3 Other initiatives

6.4 Performance Appraisal

6.5 Rewards and Recognition

6.6 Employee Competency Development

6.7 Labour Practices Strategy and

Management Approach

6.8 Employment and compensation

6.9 Talent Acquisition

Employee Engagement

At Kpit

EMPLOYEE ENGAGEMENT AT KPIT

6.1 Employee EngagementIt is established that engaged employees are more productive. To ensure employee engagement, it is

important that we connect with our employees, engage them in various activities that are work related

and also beyond work & enable them with various mediums to share their ideas and make themselves

heard. We at KPIT always strive to create a two way communication with our employees where we

encourage exchange of ideas and thus foster an open and transparent culture within the organization.

KPIT's employee engagement framework aims to ensure that we are able to stay in constant touch with

our employees and address their concerns as identified in various forums. Within this framework, we have

identified different mediums that ensure employees are connected with and are benefited by being a part

of our success story. Various synchronous communication channels have been identified and established

wherein the message from the senior management and leadership team is circulated amongst all the

employees at KPIT. This communication is interactive thus creating a collective sense of involvement and

ownership amongst the employees.

Following channels have been established to foster communication:

⦁ Bi-Annual Connect: Our Group CEO addresses the entire organization bi-annually on various business

developments and shares his vision on the road ahead for the company

⦁ Leaders Club Meeting: Company's MD addresses top 100 leaders on strategic approach towards

improving the overall productivity

⦁ The Ground Zero: Business unit heads and the middle management anchors business update emailers

wherein business developments are shared with employees across all grades. Here employees get to

know about the status of company's business, new developments and the way forward for the

organization & the unit level. This is an interactive session and thus employees get a chance to get their

questions answered, if any

⦁ Business Update: A quarterly mailer is sent by the Group CEO on business developments and the

project pipeline

⦁ Sprint: Monthly mailer is sent by the CEO & Managing Director on the overall business environment

within the Company and various SBUs

⦁ Dinner with exceptional performers: The senior management and the leadership team meet

employees with exceptional ratings, in an informal set up giving them an opportunity to interact and

share their views. This happens every 6 months.

Following channels have been established to address employee concerns and enable employee

feedback

⦁ One-on-one connect: This happens after the employee completes 30, 60 and 90 days at KPIT. It is

especially designed for new joiners wherein skip meetings, various discussion forums (Delivery

Manager's forum, Project Manager-Biz HR forum), employee grievance mechanisms, and exit interviews

used as mechanisms to collect feedback and employee pulse

⦁ Buddy program: This helps our new recruits to understand KPIT's value & culture system and helps

them blend faster in the KPIT family

74


To maintain vibrancy at workplace, following recreational programs have been identified:

⦁ Various cultural events: These encourage employee participation and showcase their personal interests

and hobbies. We have different interest clubs like the cerebral club, photography club, nature club and

trekking club to name a few, that the employees can join to pursue their area of interest with other

likeminded colleagues

⦁ Resonance: Every year we organize family day in KPIT, wherein all our employees and their family

members are invited for a social get-together followed by dinner. This event also includes in- house

employee performances and employees get to spend quality time with their families, interact and socialize

with their colleagues, senior management and the leadership team. It is organized at Pune, Mumbai,

Bangalore and Noida.

⦁ Under health and safety, following programs are established to promote employee well-being:

⦁ Framework has been created to move away from a week's focus of Health and Wellness to an annual

approach for "Health and Wellness"

⦁ Choice of workouts provided considering the new trends in physical fitness

- Introduction of Zumba

- Introduction Of Yoga

⦁ Health check –ups & diagnostic support to employees and their families

- Subsidized health check-up package offered to employees and their families

- Negotiated discounts on expensive tests for employees and their families

⦁ Health awareness vaccination drives to address health hazards

- H1N1 Vaccination drive for employees and their families

⦁ Initiated hospital tie-ups for discounted OPD check-ups and other tests (addition to diagnostic

centers)

⦁ Awareness communication sent on days recognised by the World Health Organization (WHO)

⦁ Engagement through wellness

- Laughter sessions

- Special pranayama sessions for International Yoga Day

- Tug of war

- Random blood sugar testing on world diabetes day

- Dental check-up camps

- Eye check-up on campus for employees

- Meditation activity conducted as a mark of "healthy mind”

- Balloon blowing activity on the World Heart Day

75

6.3 Other Initiatives⦁ Leadership Development Program: LIFT- This is a Leadership development program for young and

high potential leaders within the organization. They are identified and mentored by the senior

leaders in the organization. Various workshops are conducted to groom them for higher/

challenging roles and responsibilities. They are given group assignments to further enhance their

exposure and learnings

⦁ Fun at Work: Various games and fun activities are planned to reduce employee stress levels. These

are planned on the organizational level or department-wise

6.4 Performance Appraisal: A new appraisal management framework has been put in place to formally assess the employees’

performance and to support their development needs. This new system, KPMS, rollout was through

business representatives/champions, the Biz HRs and the corporate HR teams. Necessary training

was imparted to all the newly joined employees and first time supervisors to carry out the

performance assessment effectively. Performance review happens every year for all the eligible

employees. Promotions and career progression is based on merit and competencies of individuals.

Training needs are acknowledged and training calendar is planned accordingly.

6.5 Rewards and Recognition: We honour the best and the brightest of our employees who contribute toward the future growth of

our company. As an organization we nurture unique people practices that foster recognition at both

individual and team level, for which we use a multi-pronged approach. A few of them are given below:

⦁ Cheers! - Through this we recognize individual and team contributions in various areas such as

customer delight, going beyond the call of duty, exceptional contribution at workplace,

coaching and mentoring team members, displaying all round performance, displaying

excellent team work, amongst many others. Every employee is free to nominate peers,

superiors, subordinates and also themselves for these awards as the entire process is very

transparent. Overall 787 employees were awarded under this category in the year 2015-16.

⦁ Celebrating High CSAT - This is a unique program to recognize the team achieving highest

level of customer satisfaction. This motivates employees to equip themselves with required

competencies and stay ahead of the competition. We also have platforms wherein employees

demonstrating excellence in various spheres get to interact with the leadership team members

in an informal set-up. These achievers are praised in company’s newsletters. We also identify

brand ambassadors within the Company who are given visibility at various internal and external

forums.

⦁ Tenure and Long service recognition – The employees are recognized for completing 5,10, 15

and 20 years across locations

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6.6 Employee Competency Development: At KPIT we undertake several initiatives to upskill our employees. Be it the campus recruits or the

experienced hires, we have tailored competency development plan for all the employees who need it.

A few of them include:

⦁ PACE: Program for Academic Collaboration & Engagement (PACE) is a strategic initiative to bridge

the gap between academia & industry needs. As a part of this initiative, KPIT has trained college

students as well as conducted multiple Faculty Development programs. We now have 20 PACE

partner colleges where we go for campus hiring for our four business units.

⦁ Genesis: We ensure that campus hires at KPIT are adequately trained and are made available in time

for project deployment. Genesis program has a robust training and assessment structure and is

completely driven in house by a competent team of educators.

We inducted and trained about 1,000 campus recruits this year which includes both BE and Non-BE

trainees.

⦁ Professional Skills Development: well-structured professional skill development program, built

around 5 core Competencies is available to KPIT employees. We now have a bouquet of 20+

Professional skills development programs that can be offered to employees across the grades.

⦁ Certification Programs for Business Enabling Functions: ACCELERATE initiative ensures

competency development for support functions. Such a program was launched for the first time for

Facilities and Logistic Management team, Global Mobility Management team and will be extended

to other enabling functions

⦁ Account Management Education Program: Organization has absolute focus to grow the GAM

accounts. In line with this business need we have designed an exclusive offering, called ACE

program, for account managers to build account management competencies.

⦁ ECoDe | KAIZEN: The Company believes that for employees to effectively perform their role,

appropriate skills, knowledge and competencies are needed. Thus, we created ECoDE|KAIZEN, a

Certification framework, consisting of Training & Certifications conducted for employees on

permanent roles from A – I grades, across six competencies - Technical, Domain, Process, Project

management, Professional skills and Leadership development. The SBU specific academy

educators work closely with businesses to develop, create and deliver these trainings.

⦁ SBU wise Training Academies: A dedicated team of competent educators and program managers

is aligned to different SBUs to take care of cross skill and up skill training needs of the respective

Business Units. The academies have launched multiple technology, domain certifications for the

employees.

⦁ Use of Technology for Trainings: To meet the learning needs of the workforce spread across the

globe, different training techniques have been adopted. Besides the conventional method of

classroom delivery, WebEx, Telepresence, Movi client are also used frequently as training mediums.

Many eLearning are created and training videos are made available at our internal online video

gallery, KPITube.

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6.7 Labour Practices Strategy and Management Approach:Identifying the right talent and empowering them to face business challenges are essential elements

of sustainable business growth and success. Our people are our strength. We believe that they are

reservoirs of abundant capabilities. At KPIT, we strive to create a vibrant and empowering

environment that inspires employees to perform better in their roles. We believe that happy and

energized employees are most productive and are thus committed to devoting time and attention in

creating environment that fosters mutual trust and bonding.

⦁ Prevention Of Sexual Harassment (POSH) policy: The policy framework aims at educating

employees on any sort of harassment (including sexual harassment) and report about it

appropriately when seen or experienced at the workplace. All the cases are acted upon

immediately and corrective actions are taken. E-learning on POSH has been mandated for all

employees.

⦁ Whistle blower policy: We encourage our employees to report any unethical behaviour

through the whistle blower policy. Employees are informed about this policy during the two day

induction program.

6.8 Employment and compensation:KPIT has a diverse workforce, comprising of skilled talent pool from all religions, nationalities and

educational backgrounds. Our full time employees amount to 91%, while 9% are contractors and

subcontractors. Also, 23% of our employees are women. We select our employees based on merit

and the competencies they possess, and do not discriminate on any grounds. We diligently follow the

underlying principles stated in the "Code of Conduct".

Full-time KPIT employees avail of many welfare benefits. Below are some of those:

⦁ Cashless hospitalization benefits

(as per company guidelines)

⦁ Group Personal Accident Insurance

⦁ Group Term Life Insurance

⦁ ESOPs - to select few

⦁ Leave encashment

⦁ In-house doctors, counsellor, dieticians

⦁ Transportation

⦁ Canteen facilities

⦁ Gymnasium with instructor

⦁ Concierge facilities

⦁ Helpdesk facilities

⦁ Assistance in finding accommodation

⦁ Assistance in paying house deposits

⦁ Stress Management Program

⦁ On premise Music room equipped with

musical instruments

⦁ On premise recreation facilities

⦁ Seminars, financial reimbursement for

external certifications aligned with business

⦁ Maternity leave for adoption

⦁ Paternity leave

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In order to best utilize the internal resources, we have evolved our resourcing function through

several processes and systems that include job rotation, reskilling and career planning etc. This

ensures maximum opportunity to our employees to adapt to newer roles and make advances in

their career as per their interest and performance. Our hiring is done through a number of

sources, depending on the criticality of the requirement. These include:

⦁ iRefer Program

Employee Referral program

Internal Job Postings

⦁ KPIT website hiring

Partner job sites

⦁ Partnership with educational institutions

PACE program

⦁ Media

Social sites like LinkedIn

⦁ Other relevant recruitment channels

The recruitment channel and a balanced mix of laterals versus campus recruits, forms an important

parameter of our recruitment strategy.

6.9 Talent AcquisitionKPIT continues to grow and expand across geographies, supplemented by our focused hiring teams

in India and overseas that manage the Company's talent acquisition strategy. Our hiring involves

recruiting the right talent in line with our core values and key behavioural attributes.

We believe in being an equal opportunity employer and our hiring process, at all levels, is based

strictly on merit. Our hiring teams always look at every resource with an intent of matching them with

a role that fits them well. In case improvements are needed in potential hires, internal training and

development programs are in place.

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Gender Diversity

Female Male77% 23%

Source wise hiring FY 15 - 16

80

Agency 13%

Campus 33%

Career Site 1%

Direct 13%

Job Site 15%

Referral 10%

Subcon 16%

Geo wise headcount distribution

100

90

80

70

60

50

40

30

20

10

04%

81%

1%

13%

APAC Europe India South America USA

1%

City tier wise trainee hiring

100

90

80

70

60

50

40

30

20

10

0

53%

9%

City Tier1

38%

City Tier2 City Tier3

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The majority of our hiring is through our planned fresher intake program - PACE (Program for

Academic Collaboration and Engagement), where we work with select colleges to attract the right

talent pool. Under the PACE program, we train, develop and equip young graduates with practical

insights & industry exposure via guest lectures, seminars, workshops, industrial visits, faculty

development programs, sponsorship projects and faculty sabbaticals, amongst others. Our SME

& Senior PACE Academicians contribute toward reviewing the course curriculum from time to

time and provide industry ready resources, thus making this program relevant and industry

friendly.

07 FUTURE AHEAD

Future Ahead

As we move forward our focus is now on people development and growth. We have been doing a lot

of investments in developing our people management by bringing in robust training infrastructure,

revamping the performance management system, promotion policies, internal certification and

competency development framework and hiring fresh graduates and senior level leadership people.

We are also making the required technological investments to strengthen our practices and offerings

and they are generating returns as we are achieving global recognitions for the same.

We will continue to focus on our select verticals and strengthen our industry specific offerings with

an aim to be the first port of call for the customers in our focus verticals. We are investing in Account

Management since majority of our growth will come from our strategic enterprise customers. These

account managers are domain experts and with our unique strength of engineering and business IT

we aim to work on larger deals within these customers. We have also invested in Digital Technologies

viz. ICAMS (IOT, Cloud, Analytics, Mobility and Sensors) to capture the spend in this area. Another

area of focus and investment for us is Products & Platforms. We have been investing in this area for

the last couple of years and we believe we should start generating revenues from newer products viz.

Electric Buses and Automated Meter Reading (AMR), this year onwards.

The high growth areas for us in terms of industry verticals will be Automotive, Life Sciences and

Energy & Utilities. In terms of technologies embedded electronics, digital technologies, Application

Lifecycle Management (ALM)/Product Lifecycle Management (PLM) and SAP would be the leading

growth areas whereas Products & Platforms will also contribute to growth in a meaningful way.

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www.kpit.com

KPIT Technologies Limited

35 & 36, Rajiv Gandhi Infotech Park, Phase - I, MIDC, Hinjawadi, Pune - 411057, India.

Phone: +91 - 20 - 6652 5000 | Fax: +91 - 20 - 6652 5001

Email: [email protected] | Website: www.kpit.com

Documents

KPIT Annual Corporate Sustainability Report 2015-16