INTEGRATED

REPORT
2016-17

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Executive Messages ________________________________4 Governance _____________________________________ 22
Message from Vice Chairman _____________________4
Risks and Opportunities ___________________________ 28
Message from the Managing Director ______________5
Strategy and Business Model_______________________ 34
Message from the Chief Financial Officer ____________6
Enabling Value Creation ________________________ 34
Message from the Chief Sustainability Officer ________7
Customer Centricity_______________________________ 45
About the Report __________________________________8
Report Boundary and Scope_______________________9 Stakeholder Relationship __________________________ 54

Mergers and Acquisitions_______________________ 10 Materiality ______________________________________ 55

Assurance Statement __________________________ 11 Sustainability Roadmap 2020 - 21 ________________ 58
Awards and Recognition________________________ 15
Delivering Value for Our Stakeholders __________ 60
Company Overview ______________________________ 16 Enabling Our Financial Capital ___________________ 61
Our Portfolio _________________________________ 17 Fostering our Intellectual Capital _________________ 67
Our Vision and Mission _________________________ 19 Reinvigorating Natural Capital ___________________ 73
Aspire 2020 __________________________________ 19 Enhancing our Human Capital____________________ 89

Supply Chain Management ________________________ 20 Delivering on Social and Relationship Capital _______ 99
Manufactured Capital _________________________106

GRI Content Index _______________________________107

Mapping with the CDSB Framework ________________112

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 Sustainability mega forces risks like climate change, extreme
weather events, water scarcity, shortage of skilled workforce and
social unrest are emerging as risks for business. In this
landscape, sustainability will drive businesses, societies and
economies like never before. Businesses will thrive only if they
are able to operate in this interconnected world and create value
for all stakeholders.
In this dynamic and inter-connected external environment, we are
innovating our business model and strategy. We are re-aligning
and re-calibrating business focus, across technologies, domains
and locations. We are developing customized, niche solutions
and platforms to help our customers thrive in the changing socio-
economic and environmental landscape. Through our CSR
programs which are focused on all round development in
education and skilling to make the youth employable and future
ready.
Tech Mahindra’s First Integrated Report is an attempt to share
with our stakeholders how we create value through our business
model, approach, strategy, governance systems and how we
manage our financial and other capitals – Natural, Intellectual,
Human, Social and Relationship and Manufactured to create
value. We have made progress in our sustainability journey. The
approach and milestones are demonstrated in the sections of this
report. The strategy and business model have been aligned with
DAVID philosophy. Risks have been looked from a perspective of
opportunities. We made progress in achieving our sustainability
goals and hope to continue making positive strides towards
excellence in sustainability at Tech Mahindra.
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Executive Messages
Message from Vice Chairman

We are at the intersection of a localized world with

customized solutions. Sustainability is at the core
of our business strategy. From the way we right-
skill, support and empower our associates, and the
way we enhance our customers’ experience to the
way we help our local communities through our
CSR programs on training and education – our
focus is on enabling people to Rise. We constantly
strive to increase the positive impacts and
minimize the negative impacts of our activities.

‘Code to Connect’ is our global initiative to create

customized platforms in partnership with local
municipal bodies and academia to address city
“Driven by innovation and our smart level challenges of air quality, traffic etc.
capital, we are re-imagining product and
service offerings in view of the changing De-carbonizing our business makes financial
societal needs and customer needs. We sense. Carbon reduction pathways are no different
are an organization driven by a common from our business pathways. In the emerging
core purpose – ‘Enabling people to Rise’. climate risk scenarios, Tech Mahindra is striving to
Our strategic decisions and initiatives are move towards a Low Carbon future. Our
imbedded in the Mahindra Rise performance is demonstrated by the external
Philosophy.” recognition we have received in the form of
awards. We made it to the Dow Jones
Sustainability World Index in 2017 for the third
Vineet Nayyar consecutive year in a row. We were listed in CDP’s
Vice Chairman Carbon Disclosure A- List - 2016 and CDP Global
Supplier A-List - 2017.

The zeal of our associates, the robustness in our

The IT Industry is at a new threshold. While
governance systems and processes, focused
technology was earlier assisting businesses, now improvement in infrastructure at our facilities that
it is re-defining business models. Through our provide a good working environment, our efforts in
innovative platforms, solutions and service talent management and retention - all make for a
offerings, we play an enabling role in transforming
positive future outlook and strategy. We will
our customers’ businesses and enabling them to continue to make assured strides in creating value
Rise.
for the company and our stakeholders.

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 and localization. Nationally, demonetization and
Message from the Managing Director
reform in the Financial Sector have brought
Digitization to the core of most business activities.

In this changing scenario, inclusiveness is the new

mantra. Financial Capital must be aligned with the
Natural Capital – the stock of natural assets like
air, water, land, forest and associated ecosystems.
Right skilling our Human Capital can allow us to
leverage the opportunities presented by the
evolving customer requirements. Enhancing our
intellectual capitals through collaborations and
partnerships and acquisition of new age startups
and strong relationships with our stakeholders will
enable us to be the market differentiators.

We are re-skilling our workforce and reimagining

our platforms, solutions and service offerings to
“Skills required for tomorrow are very keep pace with the global technological and
different. We will have to change otherwise political landscape. We are enhancing our
we won't be ready for the new world. I believe Intellectual Capital and Social and Relationship
that automation will be accepted as part of the Capital by focusing on cutting-edge technology
Industry. The good news is that technology is solutions in Blockchain, Artificial Intelligence,
making all the disruptions and there are not Machine learning, Virtual Reality/ Augmented
enough skills available today to meet all the Reality and the Internet of Things. We are
demand. It will always be a demand-supply increasing focus on global talent and local
scenario and I see it as an opportunity. We sourcing. We are taking positive strides towards
are working closely with the Ministry of Skill low carbon growth and water conservation and
Development and NITI Aayog to enable right enabling our supply chain.
skilling and right solutions for our customers.”
In the end, systematic transformation and focus on
long term value creation for all our stakeholders is
C P Gurnani, the responsibility of not just the Management of
Managing Director and Tech Mahindra but also the associates of Tech
Chief Executive Officer Mahindra. We as an organization are geared up to
make a difference.
“Automation will be part of every industry; that will
be enabled by technology led disruptions. Skills
required for new world are very different and we
We are witnessing the Fourth Industrial
are changing for tomorrow. There are not enough
Revolution. Innovation, Digitization, Automation,
skills available today for future demand supply
Virtualization and Artificial Intelligence are driving
scenario. We see it as opportunity and working
the future of companies, economies and societies.
with Ministry of skill development and NITI Aayog
Global Technological and Political Landscape
to enable right skilling and right solutions for our
have been disruptive and transformative.
customers.”
Sustainability Risks are impacting business like
never before. The US Presidential Elections and
Brexit have brought forth a call for de-globalization

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 Message from the Chief Financial Officer
Money is the lifeblood of a business; and finance
is the nerve center. The goal of any finance
function is to provide business support service, at
lowest costs and underpinned by an effective
control of the environment. The conventional view
of finance focuses on being reactive, efficient,
compliant, quantitative and risk averse. Financial
capital is one of most the critical and measurable
output for any corporation, whether big or small.

Prudent management of Financial Capital and its

interconnected relationship with the other capitals
is an enabler for the growth of the company. We
are moving in the right direction by re-aligning and “TechM’s First Integrated Report is an
re-shaping our business in line with the market attempt to share with the stakeholders a
demands. We are managing on multiple fronts – broad based framework for our
changing demand patterns and refreshing skills business and investment decisions that
given the uncertainty in the geo-political are long term, inclusive and with a
environment. As a mature industry, we are purpose. The idea is to promote
converting these challenges into opportunities. cohesive reporting across various
resource capitals, like Financial,
Our Digital business has been growing as per
Intellectual, Human, Natural and Social
expectations. It is backed by solid execution, as we
realign our focus from the ‘Run’, side of the and relationship capitals to enhance
business opportunities to ‘Change and Grow’. We accountability and stewardship.”
are navigating the digitized and automated world
by repurposing, reskilling and recalibration. Our
Milind Kulkarni
performance reaffirms the success of our
D.A.V.I.D. strategy and the journey we have Chief Financial Officer
undertaken to become a leading Digital
Transformation Company.

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Message from the Chief Sustainability cascading to our Supply Chain. There has been
Officer successful adoption of initiatives and programs to
promote sustainability thinking across different
functions.

As a technology company, our revenues depend

largely on software development and client
consultancy services. Since FY 2012-13, we have
been able to achieve a 4.32% reduction in our
Absolute (Scope 1 and 2) GHG emissions. To
bring further focus on reducing our carbon
footprint, we committed ourselves to Science
Based Targets in 2016-17.

“By committing to science-based emission We are gearing up to increase dependence on

reduction targets, we hope to unlock the renewable energy sources while migrating towards
innovation potential within the organization. low carbon operations, solutions and supply chain.
Through an integration of cross functional
Our internal portal ‘Ideation Factory’
capabilities, we are growing our climate action
provides opportunity to employees to submit
suite of services like smart energy platforms, smart
creative ideas for greening the firm’s cities and eco-efficient data center management,
operations or products and services. among others.
Through cross function integration, we have
been developing platforms and solutions to Going forward, Carbon Resilience and
address climate change for customers.” management will not just one of the ways to do
business but the driving factor for many
businesses. While working to steadily reduce the
Sandeep Chandna carbon footprint from our own activities and
Chief Sustainability Officer operations, we hope to play an enabling role in
assisting our value chain partners – our customers,
suppliers and vendors – in transitioning towards
Our Sustainability journey started almost 10 years low carbon development and growth.
ago as a part of the Mahindra Group. Since the last
4 years we had been releasing a Sustainability
Report to disclose our performance on the People,
Planet and Profit aspects of our organization. We
are proud to present our First Integrated Report
2016-17. It is an attempt to disclose how we create
value through our business model, approach,
strategy, governance systems and management of
our Financial, Natural, Intellectual, Human, Social
and Relationship and Manufactured Capitals.

In the last decade, the relevance of Sustainability

to our business is acknowledged and embraced
across the enterprise at all levels. It is also

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About the Report
‘Innovation – Towards a Sustainable Paradigm’ is to create value for the company as well as the
our First Integrated Report for the Financial Year stakeholder’s viz. customers, investors, suppliers,
1st April 2016 to 31st March 2017. The report is local communities and society at large.
the 4th Annual disclosure of our non-financial In order to allow continuity and comparability with
performance on sustainable development and our earlier reports. The performance on all the
value creation. capitals of the report is disclosed using the GRI G4
Guidelines. The disclosure on Natural Capital is in
The core principle of <IR> is a disclosure on how conformance with the Climate Change Reporting
the organization creates value over time. In this Framework issued by the Climate Disclosure
report, we have disclosed our approach towards Standards Board (CDSB).
value creation for all our stakeholders in the short,
medium and long term - our business model,
governance, strategy and future outlook. The
Report discloses our performance of the six
capitals viz. Financial Capital, Manufactured
Capital, Intellectual Capital, Human Capital, Social
and Relationship Capital and Natural Capital.

The report is prepared as per the Integrated

Reporting <IR> Framework. The interactions
between each of these capitals help us manage
the impacts of challenges like climate change,
water and resource scarcity, skill gap amongst the
workforce and income disparity. It also enables us

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Report Boundary and Scope

The scope of the Report is limited to India operations for the following entities:
Tech Mahindra Limited
Tech Mahindra Business Services Limited
Tech Mahindra Foundation (Section 8 Company)
Tech Mahindra BPO Limited (Earlier a wholly owned subsidiary of Tech Mahindra Limited, which
merged with Tech Mahindra Limited in April 2015).

This includes our facilities in the following cities:

Bangalore Bhubaneswar Chandigarh Chennai

Delhi NCR Gandhinagar Hyderabad Kolkata
Mumbai Nagpur Pune Visakhapatnam

Wholly owned subsidiaries outside India and subsidiaries which are not wholly owned by Tech Mahindra are
excluded from the scope of the report. This report has been externally assured by DNVGL Business
Assurance India Private Limited. The assurance process is described in the Independent Assurance
Statement issued by DNVGL Business Assurance India Private Limited. No other relationship exists between
Tech Mahindra and DNVGL Business Assurance India Private Limited.

This report has been externally assured by DNVGL Business Assurance India Private Limited. The assurance
process is described in the Independent Assurance Statement. No other relationship exists between Tech
Mahindra and DNVGL Business Assurance India Private Limited.

Changes in the Reporting Year

In order to maintain consistency and comparability with our earlier Sustainability Reports, we have used the
General and Specific Standard Disclosures of the GRI G4 Guidelines. In the reporting year, there were no
restatements of information provided in the Sustainability Reports of the previous year. However, the
following changes occurred in the scope and boundary of the Report.
Addition of a new location Nagpur and new infrastructure in some of our locations.
Increase in the scope of reporting Scope 3 GHG Emissions.
Outbound logistics from transportation of E-waste and food waste from our facilities.
To and fro employee commute car facility provided to Business Services Group staff.

During Financial Year 2016-17, the following Mergers and Acquisitions took place. However, they did not
change the scope of our Integrated Report.

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 Mergers and Acquisitions

The BIO Agency, a Digital Change agent, specializing in Digital Transformation and Innovation was
acquired by Tech Mahindra in June 2016.
Pininfarina S.p.A., an iconic 85-year-old legendary Italian styling brand was acquired jointly by
TechM and Mahindra & Mahindra Limited (M&M) on May 30, 2016.
Target Group, UK was acquired by TechM to augment its Platform Busine4th – Process-as-a-Service
(BPaaS) offerings in Banking, Financial Services and Insurance (BFSI) in May 2016.

Questions regarding the Report Location of the Organizations

Headquarters
We value your feedback, suggestions and views on Tech Mahindra Limited
the report. 2nd Floor, Corporate Block,
Corporatesustainability@techmahindra.com Rajiv Gandhi Infotech Park,
Phase III, Pune – 411 057,
Maharashtra, India.

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Assurance Statement

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Awards and Recognition

Leadership, Governance and Risk Innovation and Future Readiness

Management
Firm of the Year – IT/ITES at the CNBC
Mr. C. P. Gurnani, Managing Director TV18 India.
& Chief Executive Officer was One Globe Award for Digital Economy.
recognized as the Best CEO in IT and Top IT Exporters Award as part of
ITES industry by BT. HYSEA Summit & Awards.
Mr. C. P. Gurnani won the Asia One ‘Best Digital Enterprise of the Year’ by
Global Indian of the year – Technology. the Drivers of the Digital Awards 2016.
Golden Peacock Award for Corporate Frost & Sullivan India ICT Awards
Ethics. 2016.
ASSOCHAM Second Corporate Golden Peacock Excellence Award –
Governance 2016 for outstanding Business
Excellence Awards. Excellence Practices for its BSG
CNBC TV18 India Risk Management division.
Award for 2017 for the second time in Coveted Economic Times Telecom
a row. Award 2016.
Recognized in 5 categories at 7th Asia Won ET Telecom Award 2017 for
Best employer Brand Awards 2016. "Saarthi - The AI Personal Healthcare
Assistant Robot” under Home &
Personal IoT.

People Climate Change and CSR

The Business World HR Excellence One of only 6 Indian Companies

Award. included in the DJSI Sustainability
HR Excellence Award from the Society Yearbook 2017.
for Human Resource Management. One of the only 3 Indian companies to
Golden Peacock Award for HR make it to DJSI World Index 2016.
Excellence. One of the 10 Indian Companies to
CMO ASIA Award for Best Use of Social make it through the DJSI Emerging
Media in Employer Branding, 2016. Markets Index 2016
Asia Branding Awards for Best Use of Listed in the CDP’s Carbon Disclosure
Technology in HR, Promoting Health in A list 2016 – one of only 2 Indian
the Workplace, Best Use of Social companies.
Media, Excellence in Training, Learning Recognized as CDP Global Supplier A
and Development, Organization with List 2017
Innovative HR Practice. Constituent of the FTSE4Good
NASSCOM Award for Best Practices in Emerging Index 2016
HR Technology, 2016. Tech Mahindra Foundation received the
Awarded at NASSCOM HR summit for Best CSR Practices Award and Best
Excellence in HR Technology Adoption. Corporate Foundation Award.

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Company Overview
Tech Mahindra Limited is a part of the Mahindra Group, a Global Federation of Companies divided into 10
business sectors. The companies act as a federation, with an optimum balance of entrepreneurial
independence and synergy. Though Mahindra operates across vast geographies, al l the companies are
governed by the spirit of Rise.

We are a public limited Company, incorporated and domiciled in India with registered office in Mumbai,
Maharashtra, India. We are listed on the National Stock Exchange of India Limited (NSE) and Bombay Stock
Exchange Limited (BSE).

We are specialists in digital transformation, consulting and business re-engineering solutions. We offer
innovative and customer-centric experiences in a connected world, enabling enterprises, associates and the
society to Rise. With a presence across 90 countries and over 840 global customers, our convergent, digital,
design experiences, innovation platforms and reusable assets connect across a number of technologies to
deliver tangible business value and experiences for the stakeholders.

We help our customers achieve business outcomes through technology, being an end to end partner across
applications, network, security and technology innovation. Our services spans across IT Outsourcing,
Consulting, Next Generation Solutions, Application Outsourcing, Network, Infrastructure Management,
Integrated Engineering Solutions, BPO, Platform Solutions and Mobile Value Added Services. Our innovation
platforms and reusable assets connect across a number of technologies to deliver tangi ble business value
to our stakeholders. We are well placed with our breadth of service offerings in emerging areas of Big Data,
Mobility, Network, Cloud, Security, Platforms and Engineering Services. We constantly innovate, building
intellectual property through various services and platforms to help our customer transform. We operate
across 90 countries, with dedicated offices in most of the countries.

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 Our Portfolio

ADMS, Java and Open Source - Tech Mahindra is premier Application Development & Maintenance
Services provider geared to ensure continuous improvement in service levels that will help meet
customer’s strategic business objective.
Consulting Customer Experience - Tech Mahindra’s consulting Services comprise a comprehensive
team of Consultants and thought leaders specializing in Business Transformation, Business Process
Consulting.
Enterprise Architecture - Tech Mahindra has a proven track record in delivering end-to-end Enterprise
Architecture services.
Platforms, analytics and connected enterprise solutions - Tech Mahindra has extensive experience
across Enterprise Business Solutions suite of applications, Spanning Enterprise Resource Planning,
Data & Analytics and platforms.
Infrastructure management services - Tech Mahindra’s IT Infrastructure management services offers
a suite of reliable, responsive, flexible and proven infrastructure services and solutions that deliver
differentiated value to our customer’s business.
Integrated Engineering Solutions - Integrated Engineering Solutions (IES), a connected Engineering
Solutions business unit of Tech Mahindra, aligns Technology, Businesses and Customers through
innovative frameworks.
Mobility Solutions - Combining the strengths of Tech Mahindra’s mobility solutions and Mahindra
Comviva subsidiary of Tech Mahindra we are today approx. 2800 mobility professionals serving over
250 customers in 100 + countries making us the leading mobile solution provider from Asia.
Performance Engineering - It is dedicated horizontal business unit with over 7500 person years’ of
experience. The unit meets customer’s Non-Functional (NF) testing needs, such as response time
SLA’s, scalability, availability, reliability etc.
Product Lifecycle Management - Our Product Lifecycle Management (PLM) Practice provides
comprehensive end-to-end service offerings, which includes building innovative solutions to the most
pressing PLM challenges.
Enterprise Security and Risk Management - With more than 16 years of experience, Tech Mahindra’s
Enterprise Security and Risk Management (ESRM) services provides services to 140+ large global
clients, including 5 Fortune 20 companies.

Platform Solutions
Our Platform Solutions leverage our best in class analytics, service delivery capabilities, domain knowledge
access to new technology and process acumen to provide our customers with business solutions that enable
scalability, flexibility and cost predictability.

CareXa: Next Generation Customer Care platform for agent virtualization, analytics, assisted
interactions and digital channels.
SOCIA: A Social Media Management platform providing actionable insights and proactive
solutions in a world of multiplying factors and multiple interaction points.
UNO: A Robotic Process Automation tool that manages operations effectively and efficiently
Smart Offers: A Big Data analytics platform for Personalized Marketing and Customer Retention
PRISM: A self Service predictive analytics platform
FQCC (Field Quality and Cost Control): An end to end, production quality and predictive analytics
solution
Retirement and Wealth Services: SURE (Superannuation): The pension and retirement landscape
is in state of flux characterized by ongoing evolution and reform.

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 Cloud Aggregation Platform – CAP: Integrated platform designed for Cloud Brokers and Cloud
Service Providers.
Tech Mahindra CUBES: Unified NextGen Managed Services Platform enabler for running IT
Service operations and Service management.
Epselon: Digital transformations by providing an automated assessment of the enterprise
baseline information.
Digital CPE: B2B enterprise to demand services, test applicability to their environment, and
consume services on the go.

Next Gen Solution

Big Data - Our Big Data consulting helps in gaining insight from large volumes of structured or
unstructured data.
Cloud Computing - Our Cloud Computing solutions help business adaptability, cost efficiency and
business collaboration.
Content Delivery Networks - Our solution offers service providers the scale, serviceability and
openness needed to deploy CDN.
Device Testing & Certification - We offer platform validation, conformance and pre conformance
testing etc for global compliance services.
Digital Enterprise Services - Leverage the power of convergence of seven technologies- Networks,
Mobility, Analytics, Cloud, Security, Social and Senders to enable organizations future Proof and
Future Ready.
Green and Sustainability Solutions - Going beyond the traditional Green IT. Our solutions help achieve
a company’s sustainability goals and objectives.
Long Term Evolution - Our services help telecom operations speed up time-to-market and help quick
launch of products.
Internet of Things (IoT) - Interest in the Internet Of Things (IoT) market is rapidly expanding as
companies across multiple vertical industries recognize the need for connectivity and the potential
transformation enabled through connectivity.
New Generation Supply Chain - Our Supply chain management team offers customer centric
business solutions that help saving cost and revenue growth.
Smart Grid - Our solutions help reduce energy consumption and benefit the utilities and their
customers.
Spend Management System - Our solution helps our customers streamline supplier-facing business
practices and sourcing of goods and services.
Smart Cities - The Internet of Things (IoT) enables cities and administrations to transform resource
management, governance, citizen services and security.

Business Process Services

Tech Mahindra’s Business Process Services delivers innovative and cost-effective solutions that help
transform our customer’s businesses. We leverage our domain expertise and platform-driven process
transformations to offer end-to-end solutions to our customers. Entering a new era of transformations, we
refocus energies towards ‘Creating memorable digital experiences everyday’ for our customers.

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Our Vision and Mission

We will Rise to be among the top three leaders in each of the chosen market segment while fostering
innovation and inclusion.

We will consistently achieve top quartile growth by contributing to our customers’ success, by enabling
our employees to realize their potential and by creating value for all our stakeholders.

Aspire 2020

We are gearing up for the future scenario through Aspire 2020 by accelerating revenue from innovative
future ready business solutions; will simplify systems, processes and stru ctures to make re-skilling and
learning easy for associates; and be a pioneer in the Digital service arena

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Supply Chain Management
Tech Mahindra’s commitment to Corporate Governance, Ethical Business Conduct, Environmental
Stewardship and Sustainability also extends to the Supply Chain. It enables us to mitigate and manage the
risks posed by the supply chain to our business and operations.

The Sustainable Supply Chain Management Framework at Tech Mahindra is depicted below:

As an Information Technology Services Company, the scope of our supply chain primarily extends to the
suppliers of Goods and Services to support our operations. The suppliers are expected to abide by the
Sustainable Supply Chain Management - Supplier Code of Conduct (SSCM CoC) and demonstrate their
commitment to incorporating best practices and continuous improvement in their own activities. Some of the
key aspects of the SSCM are:
Ethical Business Practices.
Management practices that respect the rights of all employees and the local community.
Minimizing the impact on the environment.
Providing a safe and healthy work place.

As a proactive measure, we engage with top 20 suppliers based on Annual market-spend. They are assessed
using a supply-chain questionnaire which requires their compliance with aspects on Labour/Workplace
Management, Occupational Health and Safety, Risk Management, Environment, Corporate Governance and
Ethics, Supply Chain and Community Engagement. We organize Capacity building workshops for our
suppliers.

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We evaluate the impact of our activities in the supply chain at all stages on a periodic basis. We carry out
comprehensive risk analysis of our supply chain in terms of ability to deliver on time because of market and
climate related risks. Our Business Continuity Management system ensures integrated view of requirement
and accordingly plan, coordinate and execute strategies to mitigate the risks. Scope 3 emissions from
transportation and distribution of products purchased from our suppliers and operations of vehicles not owned
or operated by us (Including multi modal shipping where multiple carriers are involved in the deliver y of a
product) are tracked. We are engaging with our suppliers to initiate the process of tracking, monitoring,
reviewing and analysis of the GHG emissions of the supply chain.

In 2016-17, more than 80% of our total procurement expenditure was for the t op 20% suppliers. There are
separate procurement teams for IT Suppliers and Non IT Suppliers. The procurement teams work in tandem
with the Corporate Services team to conduct supplier assessment.

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Governance
Corporate governance is the value by which we ensure and retain the trust of our stakeholders. It represents
ethical governance practices, procedures and systems by which we balance the interests of our stakeholders.
The objective of our corporate governance systems is to facilitate effective, entrepreneurial and prudent
management that can deliver long-term value and ensure accuracy, consistency and responsiveness to our
stakeholder’s viz. shareholders, employees, management, customers, suppliers, governme nt and the local
communities.

We follow the highest standards of corporate governance, ethical business conduct and accountability. Our
practices and guidelines are a reflection of our culture, our relationship with the stakeholders and a
commitment to our values.

Our Board of Directors comprise of leaders with diverse backgrounds and expertise, each bringing their depth
of knowledge and ethics to enable effective, strategic, honest and conscientious decision making. There is a
fair balance between Directors and Independent Directors in Executive and Non-executive capacities.
T HE DIRECTORS ON THE BOARD, AS ON 31ST M ARCH, 2017

Mr. Anand G. Mahindra Mr. Anupam Puri Mr. CP Gurnani

Non-Executive Chairm an Independent Director Managing Director

Mr. M. Dam odaran Mrs. M. Rajyalakshm i Rao Mr. Ravindra Kulkarni

Independent Director Independent Director Independent Director

Mr. T. N. Manoharan Mr. Ulhas N. Yargop Mr. Vineet Nayyar

Independent Director Non-Executive Director Non-Executive Vice
Chairm an

Mr. V S Parthasarathy
Non – executive Director

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Our corporate governance principles and practices are administered and governed through the following
board level committees.

Board of
Directors

Nomination
Audit Stakeholder CSR Risk Securities
& Investment Executive
Relationship Managemen Allotment
Committee Remuneratio Committee Committee Committee
Committee t Committee Committee
n Committee

For more details on corporate governance, composition of Board Level committees and other aspects,
please refer Tech Mahindra Annual Report 2016-17.

We drive Sustainability across the organization through our Sustainability Policy. It provides guidance on the
impacts, risks and opportunities on People, Planet and Profit – and its interconnected impacts on value
creation for our stakeholders.

Our performance on ESG (Environmental, Social and Governance) is administered by Tech Mahindra
Sustainability Council. The Council constitutes of the heads of different functions, namely Finance, Human
Resources, Corporate Services, Sustainability and Legal Services.

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Composition of TechM Sustainability Council
Departments and Designation Name
Chief Financial Officer (CFO) Mr. Milind Kulkarni
Deputy CFO Mr. Manoj Bhat
Chief People Officer Mr. Rakesh Soni
Chief Sustainability Officer Mr. Sandeep Chandna
Head of Corporate Services Mr. Shivanand Raja
Head of Legal Services Mr. Atanu Sarkar

TechM Corporate Social Responsibility Committee

Board Level Committee for governing and overseeing the CSR Strategy and Sustainability Strategy.

TechM Sustainability Council

Forumlating sustainability vision and strategy, identifying risks, approving new initiatives and
monitoring ESG and sustainability performance.

TechM Corporate Sustainability Cell

Guiding, supporting, monitoring and reviewing Tech M's sustainability vision and strategy and aligning
it with the Tech Mahindra Integrated Sustainability Framework. Carrying out sustainability disclosures.

Sustainability Champions
Executing and Monitoring Sustainability Initiatives; Collecting, monitoring and reviewing of
sustainability data and assisting Sustainability Cell in non-financial disclosures.

The Sustainability Council has a direct reporting to the Corporate Social Responsibility (CSR) Committee of
the Tech Mahindra Board. The CSR Committee comprises of Board members who looks into the
Sustainability and CSR strategies and initiatives of the Company. Vineet Na yyar, Non-Executive Vice-
Chairman, is the Chairman and M. Rajya Lakshmi Rao and Ulhas Yargop are the other members of the
Committee.

Tech Mahindra Sustainability Council also consults with the Mahindra Group Sustainability Council which
comprise of TechM Board member Ulhas Yargop and Group Sustainability Head Anirban Ghosh. The
Sustainability Council is responsible for approving and overseeing all the sustainability initiatives within the
Company.

Sandeep Chandna, the Chief Sustainability Officer of the Company is responsible for driving integrated
sustainability thinking across the organization. Since he is also the Chief Customer Officer, he is able to
influence sustainability thinking amongst the customers through the customer centricity office.

In addition to the responsibilities listed in the organizational structure, Tech Mahindra Sustainability Council
also quarterly reviews key risks, overall performance and provides vital insights on the climate strategy.

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Ethics and Integrity
Integrity is a core value at Tech Mahindra. It forms the basis of our organizational culture. Every associate at
Tech Mahindra is the face of the organization to our stakeholders and must therefore exhibit ethical business
conduct with honesty, accountability and due care at all times. Adherence with the Company’s values on
ethics and integrity is administered through the Tech Mahindra Code of Ethical Business Conduct. The Board
of Directors, Senior Management and associates (permanent and on contract) and all external stakeholders
are required to strictly adhere to our Code of ethical Business Conduct (CEBC).

CEBC training is mandatory for all Associates. The training covers fundamental aspects of ethical business
conduct and the mechanism to report any cases of non-compliance to the Corporate Ombudsman. 100% of
the associates completed this training in the training cycle. We encourage our external stakeholders also to
take the CEBC Training which is available on the website.

Our Whistleblower Policy provides associates (whether permanent or on contract), Investors, customers,
vendors and other stakeholders an avenue to raise concerns, in line with our commitment to the standards
of ethical, moral and legal business conduct. The policy provides necessary safeguards for protection of
employees from reprisals or victimization, for whistle blowing in good faith. An ombudsman along with a
dedicated telephone line enables employees to raise their concern and report cases. The policy is
communicated to all associates and other stakeholders through our various engagement platforms.

Bribery and Corruption

Bribery and Corruption is a multi-dimensional issue that can be a risk to our brand, reputation and business
growth. We have zero tolerance to bribery and corruption. All our associates are prohibited from practices of
corruption and bribery, both direct and indirect, in cash or kind. We have an Anti-corruption and Bribery Policy,
which is applicable to all employees of Tech Mahindra and our subsidiary companies.
G4 SO 4 - Communication and training on anti-corruption policies and procedures
The Code of Ethics for Business Conduct covers topics of corruption and bribery. 100% of the employees of
TechM received the training and certification in 2016-17.

G4 SO 5 – Confirmed Incidents of corruption and actions taken

In FY 2016-17, there were no reported incidents of corruption.

Responsible Public Policy Partnership

We view membership with industry association and trade bodies as a platform for influencing public policy
and sharing best practices.
In FY 2016-17, we paid a fee of INR 86.92 lakh towards these memberships. Some of the association which
we are members of include:
National Association of Software and Services Companies (NASSCOM).
Confederation of Indian Industry (CII).

As a part of the Mahindra Group, we are part of the following forums.

World Resources Institute (WRI).
Carbon Pricing Leadership Coalition (CPLC).
The Energy and Resource Institute (TERI).

25
G4 SO6 – Total value of political contributions by country and region
We do not campaign for, support or directly offer any funds or property as a donation or otherwise to any
political party or to any independent candidate for the political office.

We do not make contributions to political parties which are so made to inf luence any decision or gain a
business advantage. We make donations that are legal and ethical under local laws and practices.

Human Rights
We follow International Human Rights Norms and National Labour Laws that protect and empower all
associates directly employed by us and our suppliers and sub-contractors. Enforcement of the principles of
human rights in our decision making and business interactions allows us to identify risks to our business and
create value.

Being part of the Mahindra Group which has long been a United Nations Global Compact (UNGC) signatory,
we were always committed to follow global best practices and adhere to UNGC and UN Guiding Principles
on Business and Human Rights. In FY 2016-17 Tech Mahindra became a Signatory to UN Global Contact.
UNGC Principles of Human Rights

HUMAN RIGHTS
Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights; and
Principle 2: Make sure that they are not complicit in human rights abuse.

LABOUR
Principle 3: Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.

ENVIRONMENT
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.

ANTI-CORRUPTION
Principle 10: Businesses should work against corruption in all its forms, including extortion and
bribery.
We ensure conformance with UNGC principles by the following GRI G4 based performance indicators.

G4 HR 1 - Total number and percentage of significant investment agreements that include human
rights clauses or that have undergone human rights screening.
During the reporting year FY 16-17, we have made 3 major investments in acquired companies with a
cumulative spend of US$ 203 million and all significant investments have undergone human rights screening.

G4 HR 2 - Total hours of employee training on policies and procedures concerning aspects of human
rights that are relevant to operations, including the percentage of employees trained.
Human Rights aspects are administered and implemented through our Policy on Prevention of Sexual
Harassment. We have zero tolerance to sexual harassment at workplace. Our Anti-Sexual Harassment (ASH)
Policy was updated and renamed Prevention of Sexual Harassment (POSH) in 2016 -17. All associates are

26
required to complete a Prevention of Sexual Harassment Training and get a certificate of completion. All our
associates completed the training and certification in 2016-17.

G4 HR3 – Total number of incidents of discrimination and corrective action taken

We have a formal mechanism for tracking incidents of discrimination. There were 23 complaints of sexual
harassment in FY 2016-17, all of which were closed after satisfactory resolution and necessary action.

G4 HR 7 – Percentage of security personnel trained in the organization’s Human Rights policies.

100% security personnel were briefed on aspects of Human Rights

Collective Bargaining
We recognize the right to freedom of association and encourage associates to connect, discuss ideas and
raise issues through readily available internal tools and platforms. Some of the avenues like Free -voice (a
portal where associates can air their issues), IRIS (our Idea bank), All hands Meets, Redressal committee
offer an opportunity for associates to interact with the management, raise concerns and resolve issues and
conflicts in a fair and transparent manner.

In addition to the policies on various aspects of Human Rights like POSH, CEBC, Anti-Bribery and Corruption
Policy, we also have a Business Responsibility Policy, which administers the implementation of our core
values and culture. The Policy is in line with the Nine Principles of the National Voluntary Guidelines proposed
by the Ministry of Corporate Affairs.

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Risks and Opportunities

“Risk Management and compliance is integral to Corporate Governance and Management. We

view Risk management as a precursor to opportunities of the future. We are challenging ourselves
to identify and assess risks not just from a mitigation and management point of view of but also as
drivers of Tech Mahindra's future growth"

The global environmental, social and political landscape are

Sunil Sanger increasingly beginning to pose risks to the company.
Chief Risk Officer, Chief Internal Identification and management of these risks, in addition to
Auditor & Corporate Ombudsman the traditional enterprise risks, is critical for continuity, growth
and success.

We manage our risks through a robust risk management

process which allows us to measure, mitigate and manage risks and enable business continuity. Reporting
of compliance, financial, litigation and climate change risks helps us to integrate these risks into management
decision making. It also provides opportunities for performance improvement; internal innovation; competitive
advantage and generates ideas for new services and solutions.

TechM’s approach to Risk Management is that of early stage identification, communication and management.
The management of risks includes developing and strengthening operational controls; business continuity
and disaster recovery planning; driving internal innovatio n and collaborations and identifying business
opportunities.

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Risk Management Process
Risk Management is driven by the Enterprise Risk Management (ERM) Council which is headed by the Chief
Risk Officer and is represented by the Heads of all Business functions. They report to the Risk Management
Committee of the Board on a quarterly basis. All business functions have designated Risk Officers who collect
inputs on a monthly basis for updating the Risk register. The identified risks are assessed on the basis of
outcomes, probability and magnitude of impacts with the help of tools like SWOT (Strength, Weakness,
Opportunities, and Threat) analysis; Event/Decision Tree analysis; Business Continuity Management and
FMEA (Failure Mode Effect Analysis). The risks, impact and strategies are reported to the Board quarterly
and are set out in the Management Discussion and Analysis Report.

Risk Management
Risk Identification Risk Assessment Risk Response/ Strategy Opportunities

Monthly identification By using tools like Business Continuity and Includes opportunities
and reporting to the SWOT Analysis; Disaster Recovery and for performance
ERM Function. Event/Decision Response Planning and use improvement, internal
Tree analysis and of response strategies. Ex. innovation, competitive
assessment of DAVID Strategy is in advantage and
probability and response to technology and development of new
magnitude of impact. competition risk. Right services and solutions.
skilling associates help Ex. Climate change risks
manage employee risks. have enabled
Information Security Policy development of
and certification help manage solutions like CAPE; the
Privacy risk. Litigation risk is Climate change
dealt with through FEMA. regulation risk drove
internal innovation
towards low carbon
transition; water risk
drove improvement in
water efficiency.

Technology Risk
Digitalization is emerging as a disruptive force for customers, buyers and technology. This disruption coupled
with changes in delivery models and consumer spending patterns could be a threat to the growth in traditional
IT spends and technology obsolescence.
Opportunities
We launched DAVID – Digitalization, Automation, Virtualization, Innovation and Disruption, our new business
model and have been investing in centers of excellence and providing opportunities to employees through
internal and external training on technology and domain skill upgrades.

Global Economy Risk

TechM’s export revenues are over 95% and it derives 47% revenue from US, 29% from Europe and 24%
from the Rest of the World. The Economic growth activity in these nations could directly or indirectly impact
TechM customers’ IT spends. A slowdown in these economies would pose lower growth or deferred IT
spends thus impacting growth for TechM.

29
Opportunities
We have been evolving our Business Model to deal with changes in the business and IT spend outlook of
our clients. Our IT2DT Strategy is a step towards managing risks and realizing opportunities.

Evolving Climate Regulation Risk

There is an increasing trend of regulation across the world with Country and Industry level targets to reduce
greenhouse gases. Many of these industries are our existing or future customers and present a revenue and
margin reduction or loss risk.
Opportunities
Companies are seeking services and solutions that can help them achieve operational efficiency and meet
their carbon reduction, net zero carbon commitments. This has opened up multiple opportunities for the IT
sector. In response to the foreseen opportunities - we have developed new solutions like Smart Grid, IEVCS
and CAPE. Our NextGen technologies and solutions help customers respond to the climate change related
challenges, risks and regulatory requirements.

Litigation Risk

Some regulators have begun to recognize the threat to the economy and countries because of events
related to climate change. Extreme weather events are being attributed to anthropogenic (human
induced) greenhouse gas emissions in some courts. Increased extreme weather events because of
climate change when attributed to activities and actions of the companies, can pose a litigation risk to
Tech Mahindra and the customers of Tech Mahindra. We are capitalising on an opportunity by assisting
our customers in developing solutions that can help companies manage their GHG emissions while
moving towards low carbon operations.

Employee related / Supply Side Risks

IT is a manpower driven services industry will be associated with supply side risks on availability of a talented
pool of people, domain and technology experts. Attracting talented people and attrition also remains a risk.

Risk Response and Strategy

We have a strong in-house and external training curriculum which covers the latest technologies and soft
skills. We engage with employees across locations and levels through various employee friendly initiatives.
We have been diversifying our talent pool by recruiting science graduates, diploma holders and certified
skilled undergraduates, while increasing the hiring of local people in onsite locations.

Competitive remuneration structure, mature HR processes and various employee friendly incentives attract
and retain the best talent. Opportunities are provided to all employees through various program(s) for
employee enhancement and growth like the Global Leadership Cadre (GLC), Young CEO program, Shadow
Board, 1000 Leaders program etc.

High concentration in communication vertical with the vertical witnessing cycling spend
For the Financial year 2016-17; Communication Vertical had a revenue share of ~48% of the total business.
This is much higher when compared to leading Indian and global IT peers of TechM. Services spend in
Communications industry has been cyclical, resulting in periods of prolonged and tepid spends.
Risk Response/Strategy
The Communication Industry is one of the largest spenders on IT and Network Services and the nature of
this spend keeps evolving and changing as new technologies are introduced. Tech Mahindra has made
significant investments in being current and benefiting from the new technology spends. For ex SDN NFV

30
and Smart Cities are areas which are still evolving and Tech Mahindra has already started to create solutions
around these.
Tech Mahindra is one of the few Global IT companies which have a complete end-to-end span of services in
the Communications space and the Company has been able to leverage its expertise and unique positioning
in the Communications vertical helping it grow faster.

Regulatory Change/Visa Risk

We have operations in over 90 countries and our employees work onsite at client locations on visas granted
for extended or short term work. Few economies like USA, UK, Australia, Singapore, etc. have proposed to
tighten immigration norms or increase minimum wages. Any changes in immigration laws or local regulations
can impact profitability and growth.
Risk Response/Strategy
There are adequate and well defined internal processes, including contingency plans to deal with the
changing regulatory environment like delivery center(s) in overseas geographies including USA and hiring
local employees. We also engage with clients on a regular basis to discuss and deal with any critical
regulatory issues which might have an impact on business.

Competition Risk
The global IT services industry is highly competitive with competition arising from Indian IT companies and
MNCIT services companies having sizable presence in low cost geographies. The stiff competition can lead
to pressure on pricing, vendor consolidation and hence can impact Company growth and profitability.
Risk Response/ Strategy
IT services companies have been under a competitive environment for several years. We have been able to
become competitive from a multiple services and competency perspective and move up in the IT services
value chain. Domain knowledge, skilled workforce, delivery capabilities, efficient sales force and relationship
managers help us retain our competitive positioning amongst peers.

Currency Risks
The exchange rate of our major billing currencies like GBP, USD, Euro and AUD has fluctuated widely in the
recent past and may continue to fluctuate significantly in the future. This may result in wide fluctuation in
revenues and Forex losses and gains. This could impact our profitability.
Risk Response/ Strategy
We have a well-established hedging policy to protect from unfavorable currency movements. Moreover over
50% of our revenue is contributed by our onsite activities and a substantial portion of the overall cost is
incurred onsite which acts as a natural hedge. We have a dedicated Treasury Department which seeks advice
from expert professionals and banks for hedging decisions.

Privacy Risk – Brand Risk

Many countries have stringent Data Protection and Privacy Laws. There is a cyber-security risk related to our
corporate and client data which may hamper our relationship with cu stomers and company’s brand value.
Risk Response / Strategy
We have Information Security (IS) policy to ensure confidentiality, integrity and availability of required
information that is acquired, developed and provided to all relevant stakeholders. Our Information and Data
Security initiatives are in line with ISO/IEC 27001:2005 standard and code of practice ISO 27002.We are
certified through Information Security Management System (ISMS) and have our own security risk
assessment and management methodology designed based on generally accepted industry methods.

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Water Quality and Security at the Facilities
Decreased rainfall and drying up of rivers and other water bodies will result in water scarcity, directly affecting
operations. Projected water stress and seasonal supply variability will lead to higher purchase prices of
commercial water leading to higher operating costs.
Risk Response/ Strategy
We recycle water and carry out rain water harvesting to reduce d ependence on fresh water. We installed
water sensors to reduce water consumption. We carry out greater due diligence - pollution checks for
incoming water supply to avoid disruption.

Climate Risk in the Supply Chain

Any disruption amongst our critical suppliers because of climate ch ange poses a business disruption and
delivery risk on our business. It can delay the services to be delivered which in turn can impact our daily
operations and thus our customers.
Risk Response/ Strategy
We carry out comprehensive risk analysis of our supply chain in terms of ability to deliver on time because
of market and climate related risks. We have mitigation plans for high risk suppliers as part of our Business
Continuity Management System.

Carbon Taxes
India has a carbon pricing regime in which it has imposed levies on petrol and diesel, cess on coal, fund
transfer to states based on forest coverage, ramped up its plan for implementation of solar power and is
phasing out HCFCs (Hydro ChloroFluoro Carbons). In addition, India has also implemented a Perform -
Achieve and Trade regime for 8 sectors such as cement, steel, fertilizer, aluminum, pulp and paper, thermal
power, alkali manufacturing plants. It may extend to other industries like IT industry.
Risk Response / Strategy
We have been reducing GHG emissions through energy efficiency and transitioning towards renewable
energy (installing solar plants and power purchase agreements). We have taken targets in our roadmap for
reducing our energy intensity and GHG emissions. We are using energy efficient systems like Motion
Sensors, LEDs and Natural Cooling Systems for Data centers to reduce use of electricity and GHG emissions.

Weather-related risks on our associates, facilities and operations

Changing precipitation patterns and natural calamities like floods, cloud burst etc. increase the spread of
water-borne diseases. This impacts the wellness of our associates and their ability to work, resulting in loss
of productive man hours. Few of our facilities are located in coastal areas that can be affected by the rise in
sea levels threatening the safety of our associates who may require evacuation. This will negatively impact
our business continuity thereby reducing our capacity to deliver our services.
Risk Response/ Strategy
We carried out a thorough risk assessment and evaluated the potential impact on our business activities.
Our Business Continuity Management System and Business Continuity and Disaster Recovery Plan enables
us to plan, coordinate and execute strategies to mitigate the risk ensuring pe ople safety and business
continuity and ensuring uninterrupted services to customers.

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 Non-market Risks

Governments and economies are confronted with growing health issues because of climate change,
sedentary lifestyles, increasing stress and pollution. Inclusive development and opportunity for all are
viewed as a panacea to many of the global risks and challenges.

Opportunities
We have developing platforms and solutions that help address some of these global challenges.
CARBON MANAGEMENT SOLUTIONS ENERGY MANAGEMENT SOLUTIONS
W ASTE MANAGEMENT SOLUTIONS SMART CITY SOLUTIONS
HEALTH AND SAFETY SOLUTIONS
SOLUTIONS FOR THE VISUALLY IMPAIRED

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Strategy and Business Model

Enabling Value Creation

External Environment
Information Technology, the world over is going through a major shift with demand patterns changing
constantly. Most businesses are also battling geopolitical uncertainties. As a Digital Transformation company,
we see these as opportunities in the future. Our clients are approaching us with more problems to solve than
ever before – that is definitely a happy problem to deal with. We are using technology to sustain customer
and business profitability; manage regulatory impacts of climate change and empower our associates through
skilling initiatives for the future.

Traditional Enterprises whose business models, business processes and business operations were built
many years back, fail to meet the needs of the hyper connected world. It is estimated that 40 -50% of the
traditional enterprises will decline in the next 5 years, leading them to embark on initiatives to transform
themselves to Digital Enterprises. Technology industry is also undergoing tremendous pressures from Geo-
political scenario like Brexit, Visa limitations across regions etc.

Core is Changing
The IT Services industry is experiencing a tectonic shift in the traditional spend. By 2020,
15% - 25% of traditional spend will be saved by going digital
80% of the new spend will be around digital technologies
Overall Digital tech spend will be 35%

Staying Relevant
It is not just the spend pattern that will change. Even the customers and associates we engage with, will
gradually be showing a change. More non-CIOs are today and tomorrow’s decision makers - they are
Millennials (they speak a different language and take a harder look at outcomes). The buying -selling cycle
would be Consulting & Domain led. Traditional Models are being challenged and perishing to make way for
“As a Service of Everything”. And the providers of the above may not be Companies like ours, but young
start-ups, new-age companies and a few large IT Service Providers who have been able to embrace this
change.

What enables us to stay Relevant - Being Ambidextrous

Impact of digital is also seen in the way the work skills are changing. Hybrid roles are the ‘in -thing’ and these
require organizations to be flexible & ambidextrous and be able to learn-unlearn & relearn. Technology skills
are so integral to every function today that lines are blurring between being a technologist and a functional
expert.

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“While the environment parameters are
changing, evolution remain the only
constant. We intent to stay relevant
through our DAVID Philosophy”.

Jagdish Mitra
Chief Strategy and Marketing Officer and Head of
Growth Factories

Digital Virtualization
D Transformation from ‘IT2DT’
Digital and IoT solutions
V Micro Vertical Focus
Optimizing IT spend across custom Specialized solutions for lifecycle
developed and ‘as a service’ hybrid needs
models End products for global customers

Innovation Disruption
I Intrapreneurship
Ecosystem D Internet of Things
Competencies Big Data & Analytics
Customer co-innovations Healthcare IT
Partner co-innovations Fintech
Crowd sourcing for ideas Internet and Telecom

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36
All aspects of DAVID will be an integral part of the future business platforms, solutions and services.
In the VUCA world, our journey from IT2DT is a transformational journey to serve our new age of customers,
investors, partners, associates and society at large.
DIGIT.ALL is the enabling mantra to help us help our customers embrace the brave new digital world.
DIGIT.ALL is a program focused on preparing and taking TechM through a rigorous change management
journey across functions to live Digital.

IT2DT journey through DIGIT.ALL is enabled across 115K+associates, all our customers, verticals and sub-
verticals and across 90 countries. This initiative spans across all the functions as Portfolio, Sales, Delivery,
Marketing, and Learning & Training. We transformed our Delivery frameworks to adapt to the changes and
rolled out Digital project lifecycle management approaches. Multiple Crowdsourcing, Hackathons and
Codathons were conducted also in collaboration with our customers to innovate across new solutions .
Our IT2DT strategy is an integral part of DAVID.

Organizing for a Digital Future

As an industry, we have the opportunity to solve challenges that impact billions of lives. And what is more
exciting for us as a company is that in this changing environment, we are not fence sitters, we are not in the
pavilion watching the world change. Instead, we are enabling this global revolution for businesses and society
through technology & skill! As a step in this direction we have started on an organization wid e
transformational journey to build a new identity for ourselves – from being seen as an IT player to being
acknowledged, recognized and respected as a Digital transformation (DT) partner.

Brand Philosophy – Connected World. Connected Experiences.

We foresee a demand for a ‘hyper-connected world’, that will require ‘connected experiences’. This will
play out across industries and businesses. The new ‘hyper-connected world’ will be powered by an
intelligent symphony of solutions and design experiences. In this world, only enterprises which can
provide world class experiences will thrive. Our positioning represents the new connected world,
offering innovative and customer-centric services and solutions and enabling Enterprises,
Associates and Society to Rise by integrating technology with business.

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The Connected Experiences brand philosophy will manifest in three ways
Digital Experiences
The future calls for Digital Change Agents®, and that’s where The BIO Agency steps in. As one of the most
innovative digital agencies, we offer consulting across digital strategy, service design, e -commerce solutions,
digital retail, connected products, and product & service innovation. Helping create the models and
frameworks that will lead enterprises to a new, customer-centric state of being as the future is all about
experience.

Physical Experiences
Great experiences don’t just happen – they are designed. Pininfarina, the 87-year-old, legendary Italian firm
focuses on design, engineering services, conception and manufacturing of products that impact our lives.
With Purity, Elegance, Innovation at the heart of every product, Pininfarina is changing the way the world
experiences products at the intersection of digital technologies and physical spaces.

Convergent Experiences
Extraordinary experiences are when a continuous symphony of technologies, techniques, and touch points
come together. We are driven to elevate businesses into the convergent realm of experiencing singularity
using DAVID – Digital, Automation, Virtualization, Innovation, and Disruption. DAVID is the lens through
which we view every opportunity to re-imagine, reinvent and revolutionize business models and operations,
transforming enterprises into living, breathing connected businesses.

In the VUCA World, TechM employees will need to be trained for the changing times. In 2016-2017, we
revamped the entire learning/training assets and courses on Digital. There were domain trainings released,
to understand the business processes and relate how Digital technologies will help improve the outcomes of
these processes.

Digital Businesses are a perfect amalgamation of Art and Science. Hence, Design is also a very important
element of strategy apart from technology. We deeply integrated of Design Thinking methodology in our
projects, processes and functions. Almost the entire organization was imparted training on design thinking.
Program/Project Managers were also trained to handle the complexities of the Digital Programs. We have

been amongst the earliest adopters of Agile and DevOps . We view them as the methodology of
choice of future projects.

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Internally, we have set up a ‘Centre for Automation Technology’ where we have a dedicated workforce of
around 300 engineers, internally known as “Automation Commandos”. Whether it is Robotic Process
Automation (RPA), AI or Cognitive Intelligence, Analytics or Chat-bots, we are building Intellectual Property
(IPs) in all these areas and are rapidly deploying it in client environments. We have rolled out an initial
program called “Automate to Accelerate” involving around 1500 projects and touching around 20,000 of our
associates and plan to expand it to other projects.

True to our DNA of being Entrepreneurial, TechM continues to be committed to investing in disruptive
startups and encouraging intrapreneurs within TechM to create next generation ventures impacting our
customers and society at large. In the recent past, some of our associates have created ground breaking
solutions and collaborated at multiple layers to create social, economic and environmental impacts.

IEVCS is one of the solutions developed by our associates through the innovation initiatives and CAPE -
Community Acton Platform for Community - emerged as an outcome of collaboration with the local bodies.

Intelligent Electric Vehicle Charging System (IEVCS) – IoT Solution

Electric Vehicle adoption has a direct impact on GHG emissions. IEVCS is an IoT solution for electric car
charging and last mile electric network asset management. The solution uses intelligent mathematical
modelling techniques and statistical analytic algorithms to provide insight into last mile power systems asset
modeling, control, demand forecast and prediction, charge queuing for residential EV charging points.
Value Proposition
This solution will help accelerate the EV adoption rates by minimizing the risk on existing distribution network.
Residents will be able to manage their EV’s consumption of power
Inbuilt Statistical tools for
Asset life cycle modeling
Group Behavior Analysis & Correlation Analysis
Load disaggregation
Impact analysis for overloading, voltage variations and Temperatures
Reduced commercial and optimized technical losses
Enhanced asset life by at least 20-30%
Automate EV workflow by scheduling and demand response
Improved power quality to customers.
Dashboard for prioritizing maintenance schedules

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Community Action Platform for Energy (CAPE) – Online Platform

CAPE - Community Action Platform for Energy is an advanced analytics platform combining energy, satellite,
aerial, social and economic data into targeted insights. Solution target to provide free of charge service to
community groups and city councils to jump-start and scale energy projects.

CAPE includes a free-to-use online platform to help citizens organize and manage their own community
energy schemes, such as neighborhood insulation and roof mounted solar panels. Crucially, because
communities will be group buying the energy products and services, prices will be kept low and quality high.
CAPE supplements satellite imagery with energy and building data to find the best neighborhoods in city for
an energy makeover.
Value Proposition
CAPE for City Councils CAPE for Local businesses CAPE for Citizens
Identify the Analytics to Analytics to accurately
potential areas to accurately develop develop energy solutions
initiate the energy energy solutions Market place to sell energy
saving project Market place to sell saving products
&Improve citizens’ energy saving Initiate projects with City
quality of life products Councils and Consumers
Achieving social, Initiate projects with Better insight via social
environmental and City Councils and media Analytics.
economic Consumers
sustainability Better insight via
targets for our cities social media
Make our cities Analytics
more competitive
and better places to
live in

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Despite the risks and challenges, businesses will continue to invest in IT but there will be shifts in spending
patterns. Digital business, Blockchain, IoT and the progress from algorithms to machine learning to artificial
intelligence will be the customer need. The climate of uncertainty will push new digital alternatives to save
money and speed time to value. Paradoxically, the same uncertainty will cause businesses to freeze CapEx
preferences, which may impact the growth of traditional IT services business.

Preparing For a Hyper Connected World

We are now living in the Hyper Connected World where People-to-People, People-to-Things and Things-
to-Things are connected because of advancement in Communication and Social Networks. Hyper-
Connectivism has forced people to adapt to Digital Lifestyles and gives inanimate things such as car,
machines and equipment, the ability to sense and create data streams.

As the boundaries between the physical and digital worlds get blurred and the worl d is increasingly getting
interconnected with the amalgamation of connected devices and solutions, we hav e refreshed our brand
philosophy. The brand focus has been aligned with the changing needs, with a new brand tagline –
‘Connected World. Connected Experiences’. Going forward, we intend to have the theme of ‘Connected
Experiences’ ingrained in our work.

343 Strategy for Organization

By 2020, we will be looking for a very different future, which will be shaped by using technology. Autonomous
cars, computers working as helpers will become a norm in every process, in every sector. The days when
smart phones replaced old Java based phones are behind us. We are moving towards a world where
everything will be connected and embedded in intelligence. Our customers and Customer’s customer will
Live, Work & Play Differently
Future employees, customers and consumers will communicate using not only voice and data but also video,
AR/VR, holograms etc. They will share and care through hyper fast networks, connected information and
senses. They will be driven by and helped by autonomous workers and automated bots. Data and analytics
will become predominant skills for future processes and operations, they will not just become optimal and
past - but also evolve towards new models and new ways of achieving outcomes. Future operations will have
optimal mix of manpower working side by side of automation, both will be driven by constant information
influx from connected everything. Artificial Reality/Virtual Reality will dominate the space for play,
entertainment and impact on consumers.

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All of these changes are presenting unprecedented opportunities and responsibilities that lie ahead for all of
us. Either we wait for the world to evolve or we get-up, understand the changes and help our customers
align to digital reality.

4 Tech-bets & RCG Strategy

Is our answer to the immense changes that industry is going through currently!!!
-------------------------------------------------------------------------------------------------------------------------

4 Tech bets defining our Strategy for Future -

Our innovation and automation focus and assets and capabilities; both organically and inorganically; has
placed us in an unique position to help our customers transform for the future. We foresee 4 major areas
where our focus will be

Customer Experience Management

Orchestrate the interplay of design, digital and convergent deliver connected customer experiences.

Customer Experience today is not just CRM, website or call center but an integrated journey that will be
redefined for a digital future. With the acquisition of BIO Agency and Pininfarina, we are well placed to
integrate physical, digital designs and user experiences to create connected experienc es, which are world-
class, seamless and phenomenal.

Software Transformation

Leverage Agile, DevOps, open source & automation to build higher velocity-stability to change faster while
running better
Business velocity enabled by software will be the differentiator for the future enterprises. This has been our
historical strength. We have proven abilities and have helped our customers transform at a faster pace.

42
Network of Future

Creating the Foundation for the connected world by creating intuitive network s where physical & digital
come together

Our ability to create very software intense, very intelligent network architecture, coupled with our proven DNA
across Networks and Telecom will be the differentiator where TechM can go the extra mile to help our
customers.

Internet of Things

To drive connected everything by being largest systems orchestrator in the world

We have developed 50+ use cases and have partners across the entire IOT ecosystems, enabling TechM to
deliver various niche & new use cases across connected world. Our Factory of future offerings, Smart City
offerings have enabled various industries & cities to be connected. We have also enabled Telco (s) to become
connected consumer service provider.

Helping Customers Run Better, Change Faster & Grow Greater…

Run Artificial Intelligence, Machine Learning, Bots, Self-Healing etc. are new age
Better technologies to effectively reduce operational cost & enhance process times by 3x-5x.
Predictive intelligence enabled by data also have led productivity & quality enhancement
across the business processes. TechM wants to pioneer this digital journey for our
customers, while ensuring their existing business run better.

Change DevOps, Micro Services, Agile, Analytics, Data Intelligence, Machine Learning are
Faster propelling enterprises to evolve towards new stacks enabled by Digital Technologies.
TechM wants to enable our customers transform, but transform faster as technology
partner of choice.

Grow Digital have opened unprecedented new options and, posed dynamic challenges
Greater towards global businesses. We have enabled our customers to constantly evolve and
cater to new age consumer demands. We will continue to enable our customers grow
through risk sharing, technology as a service and various Business Models.

43
Preparing For the Future Workforce
The future enterprises call for an evolution of the future workforce. We are geared up to retail the Gen Y
workforce and ennable to service the Gen Y customers.

44
Customer Centricity Value Creation for Customers
Customer centricity and retention is core to the
service industry, where new and continued
business is channelized only though proven
excellence, deep understanding of the
customer’s business, its challenges, needs and
pain points. It requires constant engagement to
ensure long-term relationships. At Tech
Mahindra, this is driven by the Customer
Centricity Office (CCO) which takes a
partnership approach by working to help
customers succeed while reducing their risks.
Customer Centricity a Core Value Customer
Centricity is the first of Tech Mahindra’s five
values. Customer centric culture spans across
the organization to ensure better service
experience and value for money for customers.
“We are committed to building a synergistic
relationship with our customers helping them
envisage and deliver solutions and services that
empower them to Run Better, Change Faster and
Grow Greater. Our customer focus along with end
to end technology expertise have enabled us to
transform our customer relationships from being a
vendor to a partner”

Sandeep Chandna
Chief Customer Officer

In alignment with TechM’s DAVID Strategy, our customer value approach is driven towards

Future ready services and solutions Future ready engagement approaches

Services and Solutions

In the future our customers and the customers of our customers will be driven by a desire for Connected
World, Connected Solutions and Connected Experiences. In line with DAVID, we have triggered an IT legacy
of a digital future gearing us to respond to customer’s need of a digital future enterprise.

Powered by Digital, we envision creating a world of imagined and unimagined possibilities for our Customers
and their customers by embracing the technologies of the future like Artificial Intelligence, Machine Learning,
Data Analytics, Data Lakes, Augmented Reality, Virtual reality, BOTs and Internet of Things.

These technologies will redefine business models of customers and create future growth opportunities,
reduce operating costs, reduce time for standard processes and empower them to target newer segments
and markets.

45
Engagement Approaches
We are becoming end-to-end solutions providers and moving from being just another vendor to a preferred
vendor and partner. We are achieving this by integrating various other vendor deliverables (ranging from 30-
300 vendors across engagements). Our processes, people, systems and outcome orientation help mitigate
and minimize risks from exposure to multiple vendors. We have been primary and designated “preferred
vendor of choice” for many of our customers.

Customer Centricity a Core Value

Customer Centricity is the first of Tech Mahindra’s five values. Customer centric culture spans across the
organization to ensure better service experience and value for money for customers.
Continued focus on customer centricity has propelled us to be a trusted partner and advisor to our clients. It
is our priority to understand the problem areas, business processes and strategi c business direction of the
customers.

Ensuring Customer Engagement at all

levels
Customer engagement is at the core of our
customer relationships management. We
focus on every customer and are in
constant contact with them - on a bi -
weekly, monthly and immediate need basis
- to understand dynamic business priorities.
Together we are working to create new age
business models that can enable revenue
growth and connected experiences not just
for the customers, but also the customers’
customers. Along with technology advice,
we also help our customers as joint go-to-
market partners. We provide direct face
time to help them with their business run
processes. There are dedicated feedback
sessions scheduled with each customer.

Customer Centricity Office works non-intrusively with various functions across the organization such as
delivery, sales and support to elicit the most positive customer responses and outcome. It is done by tracking
all the critical customer escalations at a central level and taking necessary actions to close these escalations
early, effectively and efficiently.

Measuring Customer Satisfaction

Our pro-customer centric initiatives include meeting customers pro-actively to understand the pulse on the
ground, monitoring customer concerns, if any and measuring customer satisfaction through customer survey
known as NPS (Net Promoter Score) or CaPS (Customer as Promoter score). We carry out a CaPS survey
annually and so as, to maintain the neutrality, this survey is carried out via a third party. In addition we also
carry out a Project Satisfaction Survey every 6 months to track the performance of the project and identify
problem areas and ensure that proactive mitigation plan is on an ongoing basis.

Our focus on Customer Centricity via our CCO enables us to be connected with our customers 24/7.

46
 Account Escalation Dashboard - Predictive Analytic Tool

Our approach towards customer satisfaction is that of nipping the customer challenge even before it
surfaces. We use Account Escalation Dashboard - a predictive tool which helps us in knowing in
advance the bottlenecks that customers are facing. In addition, there is an agile process to help
customer with unresolved issues and challenges. The account escalation path provides the users with
information on how to report issues which they encounter with the services displayed on the dashboard
and how to escalate issues through a chain of command. This chain of command ensures that the
customer can voice their problem to multiple senior leaders and also to our Chief Operating Officer.

Bringing together Service Quality and Delivery Capability

We continue our focus on quality and strive to exceed customer expectations at all times. We are certified
under various standards to meet client demands and enhance value delivery. We are
Certified on ISO 22301:2012 (Societal Security) and other relevant certifications.
Have a comprehensive Business Continuity and Disaster Recovery framework, to prevent potential
business disruptions in the event of any disaster. It has processes that will help resume services to
customers’ acceptable service levels.
Have an automated service desk with SLAs for enabling business and Vulnerability Assessment and
Penetration
Have Testing Lab for secured corporate network operations are highlights showcasing information
security posture of the Organization.

These certifications and systems enable us to remain robust in our business processes and retain the
quality culture in the organization.

Business Continuity and Disaster Recovery Framework

We are guided by our Business Continuity and Disaster Recovery (BCDR) Framework and are ISO
22301:2012 (Societal Security) Certified. It enables us to focus on driving operational excellence and
manage business and workplace adversity. It also prevents potential business disruptions in the event
of any disaster. We have processes that help resume services to customers’ acceptable service
levels. We have Automated Service Desk with SLAs for enabling business and Vulnerability
Assessment and Penetration Testing Lab for secured corporate network operations.

We have introduced practices for transforming quality assurance processes to delivery assurance processes
with focus on product assurance and architecture assurance. We measure and monitor this through
“Execution Excellence Index”. It focuses on achieving high project maturity, improved tools usage and
standardization, knowledge management and performance on key business metrics, in order to strengthen
further the Business Excellence in what we deliver to the customers.

Business Domain Expertise

We specifically focus on domain knowledge, skilled workforce, delivery capabilities, efficient sales force and
relationship managers to ensure customer satisfaction. We listen to our customers. We keep our associates
updated on business domains and technology by investing in centres of excellence and internal and external
trainings.

Tech Mahindra has also invested in creating Point of Views for each vertical where dedicated teams have
studied business transformations and technology transformations happening in current times; and expected
changes in respective verticals due to the same. Each touch-point across customer journey cycle thereby

47
has been enabled with dedicated trainings on vertical business dynamics and changes. This enables us to
steer our customer engagements towards consultative and helps our customers also to stay ahead of time.

Data Privacy and Security

Data Privacy and Security is critical for the customers of Tech Mahindra. Cyber -security risk related to our
corporate and client data may hamper our relationship with customers and impact our brand value.

Security of data and information is the responsibility of all. It is managed through our Information Security
(IS) Policy. It enables us to ensure confidentiality, integrity and availability of required information that is
acquired, developed and provided to all relevant stakeholders.

We are certified through Information Security Management System (ISMS). Our Information and Data
Security initiatives are in line with ISO/IEC 27001:2005 standard and code of practice ISO 27002. In addition
we have our own security risk assessment and management methodolo gy designed based on generally
accepted industry methods.

Data Privacy and security is instilled amongst our associates through our Information Security Portal. It
enables a sound security posture across the organization and helps us to identify vulnerabi lities in the security
aspects and initiate a root cause analysis to identify safeguards to be implemented and ensure protection
against security breaches.

We ensure that all the employees of the company are aware of the security procedures through continuous
awareness programs and mandatory training and certification.

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PR 8 – Total number of substantiated complaints regarding breaches of customer privacy and loss
in customer data
In FY 2016-17, there were no complaints regarding breaches of Customer privacy and loss in customer data.
There have been no incidents to our IT infrastructure and we did not pay any penalties or suffer any revenue
losses.

Bouquet of Innovative Sustainability Solutions

There is a global effort to reduce dependency on fossil fuels and move towards a sustainable production and
consumption patterns. In our aspiration to create value for all the stakeholders we are developing platforms
and solutions that help address global challenges.

Carbon Management Solutions

Energy Management Solutions
Waste Management Solutions
Smart City Solutions
Health and Safety Solutions
Solutions for the Visually Impaired

Energy and Carbon Management Solutions

As organizations look to consolidate and bring sustainability related data under one roof, they are increasingly
being flooded with enormous amount of data. Manually tracking, a ggregating and consolidating this data is
extremely cumbersome, time consuming and prone to errors. To meet these challenges, organizations today
are looking for tools that can help in managing, reporting and analyzing sustainability data, thereby giving
them a complete picture of their environmental performance.

Since the last 3 years we have been actively working in Enterprise Energy and Carbon Management space
and have developed industry specific bespoke carbon management solutions. We have also leveraged
vendor partnerships to customize and deploy enterprise carbon management tools. These solutions help
customers with robust data management, automate energy data recording, monitor key sustainability metrics,
and establish energy consumption baselines.

Remote Monitoring & Diagnostics (Solar Plants) Solution

The solution can do Real-time monitoring and control of remotely located assets and can
Leverages IoT, OT and IT to remotely monitor and manage critical assets like Solar PV Plants.
Integrates IoT enabled mechanism to
improve power generation by
automatically positioning panels based
on real-time environmental conditions.
Lowers operations and maintenance
costs for the plant by predicting
potential failures.
Delivers tangible operational
improvements in terms of efficiency,
productivity and availability.
Easily extended to other plants and
industries with minimal customization
for delivering significant operational
improvements.

49
Smart City Solutions with IoT
Smart grid will play a crucial role as we move towards a sustainable tomorrow. We have established ourselves
as leaders by working with clients to perform a variety of services from planning to build individual
components to wholesale deployments in the emerging area of Smart Gr id.

Our Competency in Smart Grid Solutions includes Home Area Networks (HAN), Advanced Metering
Infrastructure (AIM), Energy Management Solutions, GIS solutions and Sensor Design Services. We have
set up a Smart Grid Service Demonstration Center at our campus in Hyderabad.

The IoT enables cities and administrators to transform resource management, governance, citizen services
and security. IoT combines with the ability to acquire, ingest and derive insights from streaming data, is
already delivering enhances experiences for citizens, improving the quality of life and making the economic
growth sustainable. Our portfolio of IoT powered smart city solutions equips citizens, economic zones and
urban planners to weave the benefits of connectivity, data and analytics into their very fabric. Some of the
solutions include Smart Energy Management, Smart Street Lighting, Smart Automated Meter Reading, Smart
Bins and Integrated Command and Control Center. Some solutions are detailed further.

Smart Parking – Camera and Sensor Based Solutions

Camera based counting and Sensor based solutions for smart parking that are technically robust and provide
a real business value for customers. Both the solutions can accurately predict the available parking spots in
real time. It enables intelligent decisions using real-time status as well as historical analytics reports. The
solution has ability to deliver content over web portal and mobile devices.

Smart Lighting – Web and Mobile Bases User Interface

We have a range of smart lighting solution with control features such as monitoring real time energy
consumption, daylight harvesting and demand-based lighting optimization for multiple zones. The solution is
meant to optimize energy usage, predictive maintenance, fault detection and trend analysis. This can help in
reducing carbon footprint at the city and municipality level.

50
Waste Management Solution – Radio Frequency Identification based Technology
This is an end-to-end smart waste management solution with door to door collection tracking and monitoring.
It includes installation and monitoring of Bin level sensors at semi underground bin locations, setting up of
command centers, providing GIS view of the bins and municipal dumpsters and integrating the waste
management application with Waste to energy plant application and VTMS.

This solution enables the city authorities to track the end-to-end life cycle of city waste from collection to
disposal remotely from the command center, and also provides a view of energy generated from the waste
collected.

Smart Pole – Integrates multiple services on a single platform

This solution integrates multiple services like street light, CCTV camera, digital signage and public Wi-Fi and
enables integrated view of these services on a single platform. The solution enables the city councils and
authorities in saving additional investments required on infrastructure layouts.

Intelligent Risk Management Solution (IRMS)

It monitors temperature, pressure and water leakage conditions of pipes and boilers at various properties
remotely and provides real time alerts and notifications in case these parameters are not within the configured
threshold limits. The solution can reduce leakage or bursting of pipes and minimize associated insurance
claims.

Green Data Centers

Data Centers today are responsible for approximately 2% of global Green House Gas (GHG) emissions. The
evolution of cloud based solutions and the ever increasing density of computing equipment is making it
necessary for CIOs and IT managers to closely monitor and control their data center energy usage. For
addressing this market we have been offering Data Center Management Services for nearly two decades.

Energy Audit
With the dramatic spike in energy costs over the last decade and the in tense focus on reducing GHG
emissions, Energy Efficiency has become the hot topic of board room discussions world over. Global and
region specific mandates such as the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme are
also playing a vital role in driving the need to improve energy efficiency of organizations.

In light of this focus, a high quality Energy Audit is the first, critical step in curbing energy use and improving
the energy efficiency of any facility. Energy Audit is the technique to establish the current status of energy
efficiency of a System/Facility/Commercial Building. It involves the verification, monitoring and analysis of
use of energy and submission of technical report containing recommendations for improving energy efficiency
with cost benefit analysis and an action plan to reduce energy consumption.

Health and Safety Solutions

Monitoring Indoor Air Quality
Organizations recognize that Human Capital is the critical differentiator for business continuity, growth and
innovation. The employees are the greatest assets for any company. In order to help enterprises ensure the
health of their employees we have developed an Indoor Environment Monitoring Solution. It is a cloud- based
platform which monitors indoor environment conditions for varied industry requirements. This solution is
flexible and has derivative use-cases in Logistics, Healthcare, Pharma and Data Centre Monitoring.

51
ConnectSenseHealth – Digital Platform to bring Wellness from Hospitals into people’s homes
The platform enables us to extend wellness, diagnostics, prognostics and recovery from hospitals into
people’s homes and lives. It promotes Hospital-Doctor-Patient engagement using Digital Convergence
technologies. It transforms the entire healthcare ecosystem in the following manner:
Payers: Pay for value over volume of care
Hospitals: Better care for more patients
Doctors: Technology for remote, constant monitoring of patients
Patients: Anytime, anywhere monitoring

Healthcare Gamification - An Artificial Intelligence based Healthcare Game motivates the patient
The healthcare game functions through multiple sensors and captures all the data about patient’s physical
performance and stores it in cloud. Later it analyses the cloud data and provides ac curate report about the
patient. It encourages the patient to take physical exercise.

FightBack – Mobile Based SOS Service to enable Employee Safety

This Mobile App based service is conceptualized to help enterprise and retail customers raise different types
of alerts, sharing their location details in case of emergency situations. It also provides support for backend
monitoring through dashboard for admin to check the alerts and facilitate necessary support for the users.
The solution has three components:

For user registration and settings. Helps

Web Interface admin to provision and monitor alerts being
raised by the users, location tracking and
coordination with 3rd party service providers.

Mobile Client Application For users to raise emergency alerts and

(On Major Smartphone provide their location coordinates to admin
OS) and security service providers.

Helps user raise the alert immediately and

GPS Devices conveniently via GPRS/ SMS channels to be
displayed on backend admin dashboard.

Solutions to Bring efficiency and connectivity to the Manufacturing Sector

Vistamon - Vigilance and Status Monitoring for Performance Optimization
This solution leverages the principles of IoT and advanced analytics which enable remote control monitoring
and diagnostics, and performance optimization. The solution was developed for the aerospace industry but
has the potential to be extended to other asset-intensive industries including rail transportation and power
generation systems.

52
FQCC - Field Quality and Cost Control Framework
FQCC bridges the gap between product failure identification, diagnosis and resolution and closes the loop
between customer service, quality, production, sourcing, and engineering departments.
Visibility into on-field information from the point of failure to source of failure and suppliers helps OEMs in
Reducing detection to correction (DTC) times by 25 to 50%.
Reducing overall warranty related costs by 10 to 20%.
Improving early warning by up to 50%.

The solution streamlines quality costs and provides end-to-end actionable insight across the quality
improvement process.

Digital Marketing Solution

An enterprise engagement platform strategy and vision that enables OEMs to effectively coordinate and
integrate data and activities of various divisions, programs, dealers and vendors across the ecosystem. The
platform helps OEMs reach wider and bigger audience, acquire and retain customers, up-sell and cross-sell
products and services and support dealers.

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Stakeholder Relationship
The nature and quality of relationships with our key stakeholders has a direct linkage with business growth
and sustainability. We are in business because of our customers, employees and investors. Local
communities and regulators provide us a license to operate. Internal and external systems and processes,
organizational facilities and the right suppliers and NGO partners enable us to carry out our activities in
alignment with our core values. Partners and collaborators and academia provide future growth ar eas. We
view each of them as relevant stakeholders.

These relationships facilitate the development and enhancement of our Human, Intellectual, Social and
Relationship, Natural and Manufactured Capitals and assure the development of our Financial Capital.
Material topics identified by the various stakeholders groups (represented in the Materiality section).

Method and Frequency of Engagement

We engage with our stakeholders on a regular and continuously basis to receive feedback and respond to
concerns raised by them. The purpose of engagement includes sharing relevant information, gaining
feedback, fulfilling expectations, addressing concerns raised by the stakeholders and identifying risks and
opportunities. The frequency of engagement ranges from monthly, to quarterly, annually and need based
depending on the stakeholders and the topics of concern. We use multiple channels for engagement with our
stakeholders.

Methods of engagement with the key stakeholders are elaborated below.

Clients and Customers Investors and Associates Local Communities
Shareholders (Employees)
Ongoing client Annual Report UVO – The HR Impact
visits and Sustainability Chatbot Assessments
meetings Report NeMo – The new Personal
Social media Press Releases and more app Interviews and
Mailers, Investor HR Flipbooks Survey for need
brochures and presentations Simulation identification
news letters Corporate Games for
Annual Customer Website learning
Satisfaction Quarterly & Online portals
Survey Annual results Feedback
Bi Annual Other non- Surveys
Satisfaction financial One-to-one
Survey disclosures interactions.
Collaborations
for co creation

We respond to the priorities of our stakeholders by aligning our strategy, projects and initiatives with the
feedback received from our stakeholders. The CSR initiatives are identified based on the need assessment
carried out with local communities. The evolving customer needs of Agility, Virtualization, Digitization and
Automation have propelled us to re-define our Business Model – DAVID. In order to prepare our associates
to service the new age customers, we have been re-skilled them. ‘Code to Connect’ is our global initiative to
create customized platforms in partnership with local municipal bodies and academia to address city level
challenges of air quality, traffic etc. The manner in which we have responded to the needs of our stakeholders
has been covered under the respective sections of the report and reference page numbers are provided in
the Materiality section.

54
Materiality
Materiality assessment enables us to identify those topics which can substantially affect our ability to create
value over the short, medium and long term. A structured materiality assessment enables us to focus on the
things that matter - increasing positive impacts and minimizing negative impacts of our activities and
operations.

As the external environment undergoes transformation and the stakeholder priorities keep shifting, we review
our materiality assessment from time to time. In 2016-17, we carried out a materiality assessment for
developing Tech Mahindra’s Sustainability Roadmap 2021. We identified stakeholders based on the criticality
of each stakeholder for the business. Through various formal and informal engagement mechanisms we
arrived at the list of material topics for each stakeholder group.

Material Topics by Stakeholder Category

STAKEHOLDER GROUP MATERIAL TOPICS REFERENCE SECTION

INTERNAL – Governance Governance
EXTERNAL Ethical and Compliance Risks and Opportunities
SYSTEMS AND Code of Conduct (Bribery &
PROCESSES Corruption)
Climate Change
ORGANIZATION Safety, Security and comfortable Manufactured Capital
FACILITY OR workplaces Natural Capital
LOCATION E-waste
Data centers,
GHG Emissions
Water
Biodiversity
CLIENTS AND Delivery Capability Governance
CUSTOMERS Quality
Data Privacy and Security
Domain and Business Knowledge
Fair and ethical business conduct
INVESTORS AND Corporate Governance Governance
SHAREHOLDERS Transparency and Disclosure Financial Capital
Continued Revenue Growth
Profitability
Dividend Payouts
Cash Flows
ASSOCIATES Career Development Human Capital
(EMPLOYEES) Engaging assignments
Talent attraction and retention
Freedom of expression
Human Rights
Code of Conduct
Environmental Stewardship
LOCAL Digital Inclusion Social & relationship
COMMUNITIES Support for development programs, Capital
Responsible Citizenry*
PARTNERS AND Engagement activities. Strategy & Business
COLLABORATORS Collaboration to develop new services Model
and platforms. Intellectual Capital
Innovation.
REGULATORS Compliance Governance
Partnering in solutions to address Creating value for
environmental and social challenges. Customers

55
 ACADEMIA AND Curriculum Development Intellectual Capital
INSTITUTIONS Job Creation Strategy & Business
Faculty Development Model

SUPPLIERS AND Ethical Business and Governance Supply Chain

VENDORS Compliance (EHS and Social)
Capacity Building
Knowledge Sharing
Fair business practices
Environmental Stewardship
NGOS Support for Development Program Social & relationship
Ethical Governance Practices Capital
Donations and Impact Assessments Governance
SOCIETY AT Green IT Intellectual Capital
LARGE Product Innovation Innovative Sustainability
Research and Development Solutions

Responsible Citizenry represents responsibility towards the local communities in the areas of operation. The
activities and operations should not have an adverse effect on the water table or surface water availability for
local users.
The material topics for Tech Mahindra’s strategic priorities were arrived at by interaction and discussions with
the Senior Management.

Prioritization of Material Issues

The material topics for the stakeholders and TechM were prioritized by assessing the magnitude of impact in
terms of value creation for the stakeholders and the Organization. The material issues were then plotted on
our Materiality Matrix.

56
Aligning the Materiality Matrix with the Mahindra Framework
In 2016-17, we aligned our Materiality Matrix with the Mahindra Sustainability Framework and updated some
of the stakeholder priorities.
Build a Great Place to Associate Development
Enabling Work Career Development
Stakeholders Foster Inclusive Health and Safety
to Rise Development Social Responsibility
Make Sustainability Volunteer Activity
Personal
Achieve Carbon Neutrality Climate Change
Rejuvenating Become Water Positive Water
the Ensure no waste to Landfill Waste
Environment Promote Biodiversity Biodiversity

Grow Green Revenue Strategic Initiatives

Mitigate Risks including Climate Change, Waste
Building Climate Risk Supply Chain
Enduring Make Supply Chain Innovation
Business Sustainable Governance
Embrace Technology and Economic Disclosures
Innovation
Enhance Brand Equity

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Sustainability Roadmap 2020 - 21
REINVIGORATING THE ENVIRONMENT
ASPECT Mahindra Target Baseline Progress Target
Sustainability 2015-16 2016-17 2020-21
Framework
GHG EMISSIONS Achieving Reduction in Scope 1 114309 122697 15%
Carbon -2 GHG emissions
Neutrality (MTCO2)
PUE Achieving Reduction in Power 1.76 1.78 2%
Carbon Usage Effectiveness
Neutrality of Data Centers (%)
RENEWABLE Achieving Renewable energy 1.77 2.10 10%
ENERGY Carbon as percentage of
Neutrality total electricity used
(%)
WATER Water Security Reduction in per 13.73 18.28 5%
capita fresh water
consumption
(Kl/employee/year)
Water Security Rain water 2 4 6
harvesting units
(Numbers)
WASTE Ensuring zero Reduction in Paper 93.37 86.17 15%
MANAGEMENT waste to landfill Consumption
(Tons/year)
Ensuring zero Composting food 2 3 9
waste to landfill waste at Owned
Facilities (No of
Locations)

BUILDING A FUTURE READY BUSINESS

ASPECT Integrated Target Baseline Progress Target
Sustainability 2015-16 2016-17 2020-21
Framework
PROMOTE Becoming Innovation contests 18 48 24
INNOVATION Innovation and and events (No of
Technology events per year)
Leaders
Becoming Ideas incubated in 2 4 8
Innovation and Labs (Number of
Technology ideas per year)
Leaders
REALIZATION OF Becoming Revenues from 40 42 100
OPPORTUNITIES Innovation and Innovative Solutions
FROM Technology (USD in Million)
INNOVATION Leaders
CONNECTING Enhancing the Customers 8 46 30
WITH Customer Connected
CUSTOMERS Experience
SUPPLY CHAIN Greening the Supplier Audis on 2 4 10
Supply Chain Sustainability
(Numbers)

58
REDUCING Greening the Estimating GHG - 1 5
CARBON Supply Chain emission (Scope 3)
FOOTPRINT IN from IT Products
SUPPLY CHAIN
CREATING VALUE FOR STAKEHOLDERS
ASPECT Integrated Target Baseline Progress Target
Sustainability 2015-16 2016-17 2020-21
Framework
EMPLOYEE Developing and Employee 3.7 3.78 3.9
ENGAGEMENT re-skilling the Engagement Score
AND RETENTION Associates

GENDER Enabling Women in Senior 8 8.4 12

DIVERSITY Inclusive Management (%)
development
INTEGRATING Integrating Sustainability 25 27 100
SUSTAINABILITY Sustainability Training for
INTO BUSINESS with Business Associates (%)
TALENT Developing and IT Attrition (%) 20 17 17
RETENTION re-skilling the
Associates
LEARNING AND Developing and Learning Hours per 40 40 40
DEVELOPMENT re-skilling the associate per year
Associates
HEALTH & Developing and Health, Safety and 10 11 12
SAFETY re-skilling the Ergonomics
Associates. Trainings (No of
Locations)
Developing and Telephonic and 7 8 12
re-skilling the Face to face
Associates. Counseling (No of
Locations)
CSR Enabling Direct and Indirect 3.85 2.5 5.39
Inclusive beneficiaries of Tech
development. Mahindra
Foundation (Number
in Lakh)
Empowering TechM Foundation 75 80 130
through SMART Vocational
education and Training Centers.
skill (Numbers)
development.

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Delivering Value for Our Stakeholders
Strategic and Prudent Management of the Capitals; the interactions between the capitals; the
interdependence of the stakeholders with the capitals has been the focus for value creation in our short,
medium and long term agenda, not just for the investors and shareholders but also for the customers,
employees, supply chain and society at large.

This section represents how we create value for our stakeholders by the use of the 6 capitals. For Tech
Mahindra, the Human capital and Intellectual capital are critical. Natural capital will be a differentiator for the
company as well as the customers. The customers act as drivers for innovation, digitization and automaton
and right skilling the associates. The subsequent sections elaborate on how we managed these c apitals.

Financial capital – the pool of funds available

for delivering service: revenue, debt, equity,
grants.

Manufactured capital – TechM’s facilities and

campuses across the country.

Intellectual capital – Strategic acquisitions,

patents, knowledge within the people of Tech
Mahindra.

Social and relationship capital – The local

Capitals for Value creation
communities in the areas where are facilities
are located and the responsibility towards
them.

Human capital – The employees, both

permanent and contractual, who render on site
and off site services to the customers.

Natural capital - The stock of natural assets

like air, water, land, forest and associated
ecosystems which we depend on.

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Enabling Our Financial Capital

Financial Capital refers to the pool of funds available to Tech Mahindra for use in the
provision of services to the customers. It is obtained through financing or generated
through operations or investments

Legendary investor Warren Buffett has a simple approach to investing: pick out
companies that offer high earnings growth potential and hold them till as long as it is in place. Historically,
high earnings growth companies have always delivered high stock returns.

At Tech Mahindra we have focused on enhancing value creation for our investors and shareholders in the
changing external environment in the technology sector.

In tandem with the disruptive scenario, we have aligned our financial and knowledge resource allocation with
Tech Mahindra Brand Philosophy of ‘Connected world, Connected Experiences’ to propel TechM’s Strategy
– D.A.V.I.D. The Human Capital – our associates are being cross skilled to meet the changing customer
requirements in the Digital and Automation spectrum.

Performance Overview for FU 2016-17

Consolidated Revenue, EBITDA and PAT
INR Revenue CAGR from FY13 to FY17 is 19.4%
EBITDA and PAT CAGR for the same period is 8.1% and 9.5% respectively
4500 4,351
4,037
4000 3,686
3500
3,098
3000 2,633
2500
2000
1500
1000 687 682 650 535 625
563 498 479
359 428
500
0
FY13 FY14 FY15 FY16 FY17

Revenue (US$ mn) EBITDA (US$ mn) PAT (US$ mn)

61
 300000 2,91,408
2,64,942
250000 2,26,213

200000 1,88,314

1,43,320
150000

100000
41,837 41,528 42,707 41,844
30,633
50000 30,286 26,277 29,929 28,129
19,556

0
FY13 FY14 FY15 FY16 FY17

Revenue EBITDA PAT

Revenue break up – Vertical-wise and Geography-wise

Verticalwise Revenue Breakup
5.9% 6.0% 6.0% 7.1% 7.2%
100%
90% 6.4% 6.5% 6.2% 6.4% 6.9%
80% 10.9% 9.7% 9.6% 10.1% 12.6%
70%
18.8% 18.4% 17.0%
60% 18.7% 18.7%
50%
40%
30% 49.0% 52.0% 52.0%
45.7% 47.8%
20%
10%
0%
FY13 FY14 FY15 FY16 FY17

Communication Manufacturing BFSI Retail, T&L Others

Geography - Wise Revenue

60%

47.5% 47.8% 47.2%

50% 44.0% 45.3%

40%
33.7% 31.7% 30.7% 29.0% 29.3%
30%
22.3% 23.0% 21.8% 23.2% 23.5%
20%

10%

0%
FY13 FY14 FY15 FY16 FY17

North America Europe Rest of World

62
We derive revenue across the key regions of the globe; Americas, Europe and Rest of the World (ROW). A
balanced mix across these key regions and further across 90+ countries helps Tech Mahindra mitigate the
Global Economy Risk and Geography Concentration risk.

Further; the Company derives revenue across large Information Technology (IT) spend verticals such as
Communication, Manufacturing, Banking, Financial Services and Insurance (BFSI), Retail, Travel &
Transportation, etc. The relatively high Concentration in Communication verticals has been coming down
over the years. A faster growth in Non-Communication verticals (Enterprise Business) and most of recent
acquisitions on the Enterprise side have been reason for the gradual decline in the share of revenues from
the Communication verticals.

Revenue break up –Client Contribution and Client Count

% Revenue Contribution from Top Customer
70%
62.1% 60.6% 60.1%
60% 54.2%
50.2% 48.7% 50.9%
48.4%
50%
39.2% 41.5%
36.7% 38.9%
40% 36.4%
30.2% 27.9%
30%

20%

10%

0%
FY13 FY14 FY15 FY16 FY17

Top 5 Top 10 Top 20

We have successfully been able to bring down our client concentration over the past 5 years five years. At
the same time the count of active customers i.e. customers with a revenue threshold of US$ 0.125 mn + on
a LTM basis, has increased by 327 in the last 5 years, thus broadening the client base across various
verticals.

Active Clients
1000 807 843
767
629
516
500

0
FY13 FY14 FY15 FY16 FY17

63
Key Balance Sheet Metrics

Net Worth Total Assets (USD Mn)

3000 2,535 4000
2,202
1,532 1,960
2000 1,262 3000
1000 2000 4,020
3,176 3,400
0 2,544 2,660
1000
Net Worth (USD Mn)
0
FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17

Borrowings (USD Mn) Cash & Cash Eq (USD mn)

900 830
300 785
800
250 674
214 211 700
601
200 600
165 514
500
150
112 400

100 300
61
200
50
100
0 0
FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17

43.0% ROCE
45% 41.30%

40%
32.8%
35%
28.2%
30%
23.8%
25%

20%
FY13 FY14 FY15 FY16 FY17

Key Balance Sheet metrics like Total Assets, Net worth, cash balance etc. have seen gradual increase in line
with growth in revenue. However, ROCE has seen decline, primarily due to relatively lower margin onsite
centric acquisitions and a cyclical slump in the Communications vertical for the past 3 years.

64
Key People Metrics

100% 6,284 6,614 7,636 6,053 6,876

90%
80% 21,830 22,693 27,254 28,414
24,699
70%
60%
50%
40%
60,997 72,952 72,125 82,403
30% 52,126
20% Associate Trend
10%
0%
FY13 FY14 FY15 FY16 FY17
IT BPO Support

IT Attrition
22%
21%
20%
19%
18%

17%
16% 16%
15%
14%

12%

10%
FY13 FY14 FY15 FY16 FY17

IT Utilisation (Incl Trainees) IT Utilisation (Ex Trainees)

79% 82%
78% 80.2% 80.6%
77.5% 80%
77% 76.9% 78.8%
76% 78% 77.5%
75.6%
75%
74.2% 76%
74%
73% 74% 73.5%
72%
71.4% 72%
71%
70% 70%
FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17

65
 Other key Financial Capital Inputs

Market Capitalization (as of 15th Dec 2017) : INR 488,000 mn (US$ 7,615 mn)
Credit Rating : CARE AAA / CARE A1+
D&B Rating : 5A1
D&B D-U-N-S® NUMBER : 65-007-9572

“Despite the external environment, tech Mahindra’s

financial performance in the reporting year was good.
We delivered value for our stakeholders –
investors, customers and associates. There were
strategic acquisitions, recalibration of the strategy
and business model and focus on right skilling the
associates.”

Manoj Bhat,
Dy Chief Financial Officer

Financial Impacts of Climate Change

We believe that there is a direct relationship between TechM’s financial performance and the impacts of
Climate change. Empirical data, statistics and increasing incidents of extreme events have shown that climate
change will be costly and damaging for the growth of our business, our customers and supply chain; safety
and wellbeing of our associates and survival of society at large. If we cross certain atmospheric thresholds,
achieving these goals will become more expensive and harder to achieve. Delaying action on climate change
is not an option for us.

Collective action and responsibility to transition towards a low carbon economy is the imperative.
While we have been taking various energy efficiency initiatives and increasing the use of renewable energy
to reduce GHG emissions, we believe that Carbon Pricing will be an effective tool in spurring
accelerated climate action across the organization. We have assigned an internal Carbon Price across
the organization to spurs green investments and motivate our businesses to maintain and strengthen the
price mechanism internally.

66
Fostering our Intellectual Capital

Intellectual capital refers to Tech Mahindra’s knowledge-based intangibles –the

intellectual property - trademarks and licences; tacit knowledge, systems, procedures
and protocols; and intangibles associated with Tech Mahindra’s brand and reputation.

Strategy and Approach

In the dynamic and changing landscape, Intellectual Capital is the key enabler for business sustainab ility. For
customer services centric organization like Tech Mahindra, Intellectual capital is our people, who constantly
develop new age technologies, processes that we re-imagine for the future and the innovation culture, which
we foster through labs, innovation events and initiatives. We have taken also taken a focused approach to
enhancing intellectual capital in alignment with D.A.V.I.D. strategy – Digitization, Automation, Virtualization,
Innovation and Disruption.

We leverage the knowledge and entrepreneurial mindset of people across the organization. In 2016 -17, we
trained more than 10,000 workforce across digital technologies and futuristic transformations to make them
future ready. We are focused on creating a culture of innovation and knowledge transformation across the
company through programs like DEA, Innovation, Automation, Maker Labs etc.
Approach to Enhancing Intellectual Capital

The knowledge bits and bytes captured through experiences, interactions and learning-on job learning on the
job and interactions develop and evolve into learning tools and solutions. It is channelized through Maker’s
Lab – the thin-q-bator or R&D division of Tech Mahindra. It serves as a co-innovation/co-creation hub for
customers. In order to get new ideas from the next generation customers, we organize a kid -a-thon every six
months where children of the associates of Maker’s lab, visit the lab, see some of the cool things happening
and give their suggestions and ideas.

67
 “Integrating creativity with engineering will be the answer to
future solutions. There is immense potential in extending the
reach to all things that technology can do. We are making
innovation the change agent for developing solutions of the
future.”

L Ravichandran,
Chief Operating Officer

Strategic Acquisitions

The BIO Agency - A Company specializing in Digital Transformation and Innovation, helping organizations
change the way they engage with their customers. The team helps customers change and transform to a
customer centric digital world. The Bio Agency’s innovation and strategy first approach , plus experience in
frameworks and delivery processes create true differentiator for clients. They are helping brands in Financial
Services, Retail, Property Sector, Travel and Technology. Tech Mahindra purchased 100% of the shares of
BIO for an Enterprise Value of around GBP 40 Million.

Target Group, UK - The Company offers Platform Business- Process as-a-Service (BPaaS) offerings in
Banking, Financial Services and Insurance (BFSI). The acquisition will help in expanding Fintech
capabilities and adding IP and platforms to drive non-linearity and play aggressively in the BFSI sector.
Target Group’s proprietary platform automates complex and critical processing, servicing and administration
of loans, investments and insurance. Tech Mahindra purchased 100% of the shares of Target Group for an
Enterprise Value of around GBP 112 Million.

Pininfarina S.p.A., an iconic 85year old legendary Italian styling brand associated among others with Ferrari,
Alfa Romeo and Peugeot. The acquisition was completed on May 30, 2016. The acquisition complements
existing engineering capability of the Company with High-end styling and Engineering Services. As part of
the agreement, and M&M purchased 76.06% of Pininfarina shares from the then controlling shareholder
PincarS.r.l. at a price of Euro 1.1 per share through a Special Purpose Vehicle (SPV), the ownership of which
is with TechM and M&M in the ratio of 60:40.

68
Alliances and Partnerships
Through a powerful alliance ecosystem of leading technology firms and disruptive startups, we develop our
business capabilities to deliver complete and customized solutions to our customers. Our dedicated alliance
teams and partner management help customers in their journey of digital transformation.
Strategic Alliances Solution Partners

Global Relationship Technical engagement

Joint GTM strategies Niche technology firms
Differentiated joint offerings Regional engagement
World class lab and training infrastructure

Organization Level Changes

Federated Structure
We have been focused on building competencies in servicing changing customers – non-CIOs and buyers
and Millennials. It requires multipronged approaches and multiple focus points; agility and simplicity. We
have restructured the organization to a federated structure which allows simplicity and accountability with
autonomy within businesses to create their own growth stories. There are focused units and labs for
Innovation, Automation and Co-creation.

Connected Solutions Framework

Our connected solutions framework harnesses the power of convergence of technologies and the change it
can bring to businesses. We recognize and understand the inter -relations in consumer habits and the
important role it can play in tomorrow’s connected enterprise. We are developing seamless and integrated
technological capabilities across the digital, physical and convergent dimensions to fulfill dynamic customer
preferences.

69
Automation
Digital Transformation enabled by Intelligent Automation techniques is on the rise in the IT and Business
Process Services in various industries, driving the Business efficiency and Customer experience upward.
Technologies like Robotic Process Automation (RPA) and Artificial Intelligence (AI) are driving this disruption.
Whatever we do must positively impact our customer’s top-line, bottom-line, investments and end-customer
experience. AQT, our Automation, Quality, Time framework helps us do that.

We were one of the earliest companies to have our own integrated suite of platforms towards Intelligent
Automation called AQT (Automation, Time, and Quality) TM. These platforms allow you to accelerate
adoption of Digital Workforce in operations and Digital re-imagination of various IT/Business processes. AQT
is powered by technologies like RPA, Analytics and AI, and improves Customer Experience (better Quality)
and Agility (reduced Time-to-market). We apply AQT platforms in all our projects and service lines.

Innovation
We have an innovation culture imbibed deep into our customer as well as our employee relationships. ISIS
and Intrapreneurship – our platforms to nurture innovation provide associates the opportunity to pursue their
ideas and even commercialize them with support from mentors and resources from within the company.
The IRIS (Ideate, Refine, 6-pillar Innovation Strategy
Implement and Shine) program
was launched with the aim to
foster a culture of innovation Iris

and generate new revenue

streams in today’s competitive Intrapreneurs
In house IPR
world. The portal allows hip

associates to share their

innovative ideas 24X7
Intrapreneurshipi’s an internal
Venture Capital program to
fund and assist Tech Mahindra University Innovation
Collaboratio w/ Startups
Associates who have an idea ns
and convert it into a business
reality. Portfolio
Managemen
Innovation with Startups t
Startup ecosystem program

70
 focused on drawing and comprehending innovation ideas at work in startups – the niche product they
make, the new markets they create and their potential for disruptive innovation and jointly unveil the
future opportunities.
Portfolio Management Identify innovative solutions happening within verticals and encouraging cross
pollination of solutions within verticals.
University Collaborating Engage with educational institutional institutions to develop new service
offerings and create innovation culture, incubation frameworks in colleges.
In house IPR Patent, Copyright and Trademark

Maker’s Lab
Makers Lab, an initiative since August 2014 is a place where TechMighties conduct R&D to develop platforms
focused on AI and Machine Learning; Robotics; Artificial Reality and Virtual Reality aimed at finding s olutions
to the Customer Problems. The first Market Lab was developed in Pune with the idea of developing smart
machines that would blend human emotion (EQ) with Artificial Intelligence (AI). Drawing on the success of
the idea, Market Labs were developed in other cities focused on niche technologies. Currently there are 4
Makers Lab in India in Pune, Hyderabad, Bangalore and Chennai. The Market Labs cater to 100 - 300
customers every year in alignment with the organization’s Brand Philosophy - Connected World, Connected
Experiences.

IP accelerators created by the Market Lab

Entellio, is a Bot Framework built on natural language processing which allows seamless and contextually
meaningful conversations. Using the Framework, we developed UVO – an internal HR CHATBOT. The self-
help tool is used to respond to HR queries from employees instantly. It was also applied for a theme park
recently to provide contextual help and respond to customer questions before reaching a theme park. It is
being piloted for a broad range of customers use cases line improving interaction, giving a natural UI of
conversations, reducing OPEX etc.

X-Retail, is being designed as a solution for the Millennials who will require shopping to includ e sensors and
augmented reality. This will provide the next generation shopping experience for enterprise customers. The
system includes beacons for in-store positioning, location based offers and augmented offers on the
application. It is being piloted as a proof of concept for some retail custome rs and showcasing an augmented
display of the product.

71
Our Trademarks & Patents
At Tech Mahindra, we pass our systems and processes from a lens of innovation and transformation. We
view Patents, Trademarks and innovative solutions as the KPIs for measuring intellectual capital. In 2016-
2017, we applied for 20 trademarks and developed 27 products. We have created IP like Entallio, which is a
BOT for chats; which is not being used to address various markets and customer challenges like Entallio for
agent queries, customer experience improvement, financial planning, and quotation help age nt; as virtual
assistant for Banking customer, Telco Customer and government customers. Similarly, we have also
innovated products for AR/VR as 360 view that can be applied for various industries like real estate and
others.

Trademarks Innovative Solutions

20 trademarks filed 27 products developed out of the Innovation

labs.

We also maintain DEA – Delivery Excellence Assurance as knowledge repository which captures every
customer delivery experience. All the key reusable intellectual assets are captured across this repository and
can be used by people across projects for various customers. This improves efficiency.

72
Reinvigorating Natural Capital

Natural Capital represents the stock of natural assets like air, water, land, forest and
associated ecosystems which we derive continuous benefits from. For TechM, the
conservation of natural capital is focused on energy management, carbon neutrality, water
resources management, waste management and protecting and promoting biodiversity.

We derive a host of Direct and Indirect Benefits from Our Natural Capitals. Pollution of these natural
assets is leading to human induced climate change, contamination of water sources and degradatio n of land
- all of which have an adverse impact on human life and development. Climate change induced events pose
a direct and indirect threat to our Financial, Manufactured, Human and Social and Relationship Capitals.

“Climate change has become one of the major

challenges for mankind and the natural environment.
Greenhouse gas emissions released into the
atmosphere is mainly responsible for this change.
Carbon footprint is the direct effect of our actions and
lifestyle that have impact on the environment in terms of
carbon dioxide emissions and all these actions
contribute to accelerating global warming and climate
change. Everyone has a responsibility towards
reducing the emissions or even reversing climate
change.
Tech Mahindra Ltd strives to reduce the ecological
footprint of its activities while ensuring business
growth. In our effort towards de-carbonizing our facilities
and business operations, we have challenged ourselves
to find new ways to reduce our carbon footprint and
invest in the low-carbon infrastructure and renewable
energy. We are managing our water footprint by
reducing per employee water consumption and
implementing the practice of Reduce, Reuse, Recycle Shivanand Raja,
and Recovery of water through Sewage Treatment Sr. Vice President (Commercial & CS)
Plants. We design and build our Infrastructure by using
Energy Efficient Air-conditioning system and Electrical
equipment and using recyclable and eco sensitive
building material. We are shifting focus from
conventional sources of energy to eco-friendly sources
through commissioning of Solar Plants and installation
of Occupancy Sensors.
We, at Tech Mahindra Ltd, reinforce our commitment to
reduce carbon emissions in our operations.”

73
 Strategy and Approach
We recognize the direct linkage between our financial performance and
Natural Capital. Any environmental/ social issue in any facility, where we have
operations can impact our businesses adversely. It can cause a disruption of
service delivery to our customers and jeopardize the safety of the associates,
thereby increasing financial liability.

We are streamlining our processes, assessing environmental risks as part of

the risk management framework and developing carbon and water security
strategies and action plans.

Carbon Neutrality, Energy Efficiency, Water Security and Ensuring Minimal

Waste to Landfills, Promoting Biodiversity and Making Sustainability are key
priorities for the TechM.

Chain
We are Developing Solutions and Platforms to assist Customers in Carbon management and
We are Promoting Green Procurement and Building Capacity of the Supply Chain .

We embrace a proactive and precautionary approach towards environment protection and management
endeavor to create a pollution-free and environmentally-friendly enterprise. Our Environmental Policy
supports our strategy for environmental stewardship.

Sustainability Highlights

74
 Transition towards a Low Carbon Enterprise

Investments towards greening our facilities and transitioning towards low carbon growth are voluntary
initiatives.

Capital Expenditure for Water (INR) Green Investm ents (INR)

54679893.42 166082385.7

75
 Strategy for achieving Carbon Neutrality
Empirical data, statistics and increasing incidents of extreme events have shown
that climate change will be costlier and damaging for the growth of our business,
our customers and supply chain. If it continues to risk our environment, safety and
wellbeing of our associates and survival of society at large is at risk. If we cross
certain atmospheric thresholds, reaching these goals will become more expensive
and harder. Delaying action on climate change is not an option for us. Collective
action and responsibility
of transition towards a low
carbon economy is the
imperative.

Carbon Neutrality is increasingly becoming a priority

for the Management, given the spike in energy costs
over the last decade and focus on reducing GHG
emissions. Global and region specific initiatives such
as the Carbon Reduction Commitment (CRC)
Energy Efficiency Scheme are playing a vital role to
improve energy efficiency of our operations.

At strategy level, we have been making continuous

strides towards low carbon transition. At operations
level, focus areas are improving energy efficiency
and increasing the percentage of renewable energy
in the energy mix, building capacity across supply
chain and developing products, solutions and
platforms for the customers to address their Climate
strategy.

76
 Science Based Targets
The Science Based Targets Initiative is a collaboration between CDP, World Resources Institute (WRI),
the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC) and
commitments of WMB. It champions science-based target setting as a way to boost companies’ competitive
advantage in the transition to the low-carbon economy.


Tech Mahindra has committed to taking Science Based Targets (SBT) - short term targets for 2030 and
long terms targets for 2050 to be within the threshold of 2 degree rise in average surface temperature. We
are in the process of developing a strategy to meet the targets.

Carbon Pricing
At Tech Mahindra, we understand that the business have to be done in more climate responsible manner.
We view Carbon Pricing as an effective tool to enable a transition towards low carbon in our operations and
business activities.

While we have been taking various energy efficiency initiatives and increasing % of renewable energy in our
energy mix and also initiatives to reduce GHG emissions. We believe that Carbon Pricing will be an effective
tool in spurring accelerated climate action across the organization. We have assigned an internal Carbon
Price across the organization to spurs green investments and motivate businesses to maintain and
strengthen the price mechanism internally. We are exploring opportunities to create a shadow price to reduce
our emissions and grow the pool of green investments.

Tech Mahindra was part of World Bank’s Carbon Pricing Leadership Coalition (CPLC) hosted by the
Mahindra Group. It was a coalition of the World Bank, World Resources Institute (WRI), Carbon Disclosure
Project (CDP) and World Business Council on Sustainable Development (WBCSD) to explore various
methods & ways to internally pricing carbon within Indian corporate sector, and encourage businesses to
voluntarily take action using carbon pricing methodology.

Green Procurement
Our Green Procurement Policy helps us to administer and ensure initiatives and steps towards indirect GHG
Emissions. We encourage suppliers to deliver products/services with minimum negative impact on the
environment and adopt safe practices during production and delivery.
As a part of our supply chain strategy we choose IT and Non IT suppliers who have sustainable practices
along with an ability to deliver quality product on time. The criteria of Green Procurement are - Purchase of
high energy rating IT infrastructure (servers, laptops, desktops etc.).
In the FY 2016-17, energy rated laptop and desktops helped us save 2159.87 MTCO2 of Carbon Emissions.

Quantification of GHG Emissions

We measure our Greenhouse Gas Emissions using the World Resources Institute (WRI)/ World Business
Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol – Corporate Accounting and
Reporting Standard. Our Scope 1 emissions are due to diesel consumed in the generator sets and fuel
consumed for the running of company-owned vehicles. Scope 2 emissions are from the electricity purchased
from the grid.

77
G4 EN 15 and G4 EN 16 - Direct and Indirect Green House Gas Emissions (Scope 1 and Scope 2)

MTCO2 FY 2014-15 FY 2015-16 FY 2016-17

Scope 1 10839 6257 3263

Scope 2 104103 108052 119434.02

G4 EN 15& G4 EN 16-SCOPE 1,SCOPE 2

108052 119434
104103

10839
6257 3263

FY 2014-15 FY 2015-16 FY 2016-17

Scope 1 Scope 2

G4 EN 17 – Other Indirect Greenhouse Gas Emissions (Scope 3)

We are committed to reducing direct and indirect GHG emissions from our activities. The boundary of Scope
3 emissions represented below. The boundary of Scope 3 reporting was increased to includ e inbound
transportation of non IT products and transport by taxi for corporate services staff and BSG Group.

Purchased Goods and Services This includes Inbound Logistics for transportation of IT products from the
suppliers to the TechM Facility and downstream transportation of E-waste and used oil from TechM facilities
to the registered recycler and disposal of food waste from the facilities to the piggeries and landfill.
Transportation of non IT products was added in the scope 3 boundary in 2016 -17.

Employee Commute Employee commute from their homes to TechM facilities by company buses was
included in 2015-16.
In 2016-17, we also included the scope 3 emissions from transport by taxi for corporate services staff
and BSG Group, the BPO business since the taxi service is provided by the company to the
employees.

We encourage our employees to carpool to work. Our Carpool Portal and ‘Ride for Pride’ initiatives are a
small step in facilitating and sharing of rides amongst colleagues. The initiative has evoked tremendous
response and has been successful in inculcating a culture of environment conservation and protection.

78
Business Travel Business Travel is the employee travel by air for work. We have focused on use of Lync,
Live meeting, Tele-Presence, video conferencing and virtual meetings through online platforms to minimize
physical travel. Tele-presence and Web-ex services helped us reduce 31306.81 Metric tons of CO2
equivalent GHG emissions as the result of reduction in travel requirements for meetings.

Waste Generated in Operations – This includes the use of paper for operations of the clients.
Scope 3 Category Description 2014-15 2015-16 2016-17
Purchased Goods and Inbound and Outbound 6779.38 18868 12816
Services Logistics for Purchase of
Goods and Services

Em ployee Com m ute Daily Com m ute 2970.067 1733 11994

Business Travel Em ployee air travel 32385.74 25959 28968.611

em ployees for business
Waste Generated in Paper 656.524 667 249.91
Operations

MTCO2 Total 42791.7 47227 54029

G4 EN 18 - Greenhouse Gas Emission Intensity*

GHG emission intensity is the ratio of Greenhouse Gas Emissions produced to the number of employees of
the organization. We have shown a positive trend by consistently reducing GHG intensity year on year.
FY 2014-15 FY 2015-16 FY 2016-17

GHG Emissions (Scope 1 and 2) 114942 114309 122697

Denominator (No of Employees) 60005 64356 73702

GHG Intensity 1.916 1.776 1.665

79
 G4 EN18 - GHG Emission Intensity
1.916

1.776

1.665 GHG Intensity

FY 2014-15 FY 2015-16 FY 2016-17

*The Greenhouse Gas Intensity was arrived at by using the total number of employees as the
denominator.

Energy Efficiency

Energy management, including energy conservation and switching to renewable energy sources is a high
priority for us. Our major energy consumption is from electricity purchase from the grid. Other sources of
energy include diesel for the DG sets and fuel consumption in company owned vehicles.
Initiatives to Reduce Power Consumption

Consolidation of AC Chiller Plants to increase system efficiency and energy savings

Chillers de-scaling
Automation\scheduling of all AHU units of New buildings
Utilizing natural cooling techniques for offshore development centers
Regulated Air Conditioning during working hours (setting the temperature to 25 degree
Celsius) and restriction during non-working hours.
Standardization of Cafeteria AC operations.
Switching off redundant transformers during weekends.
Create awareness on Energy conservation among employees through mailers, webinars,
posters, pamphlets and road shows.
Ozone friendly gases are used as the refrigerants for HVAC equipment

80
G4 EN 3 – Total Energy Consumption within the organization
Total Energy 2014-15 2015-16 2016-17
Consumption
GJ MWh GJ MWh GJ MWh
Direct 146346.72 40651.87 84500.00 23472.22 53117.00 14754.72
Energy

Indirect 457037.03 126954.73 474375.00 131770.83 524344.5 145651.24

energy

Total 603383.75 167606.60 558875.00 155243.06 577461.00 160405.96

G4 EN5 - Energy Intensity

Energy Intensity* 2014-15 2015-16 2016-17
Specific Direct Energy 2.44 1.31 0.72

Specific Indirect Energy 7.62 7.37 7.11

Denominator (No of 60005 64356 73702

employees)

* Energy Intensity was arrived at by using No of employees as the denominator.

Towards Water Security

Water scarcity is a growing problem which requires global attention
and action. We foresee increased costs in purchasing fresh water
with the growth of our business operations, risk of loss in potential
Brand value of the organization and loss in revenue if we do not
establish a robust Water Management Strategy and Plan.

Though majority of our water requirement is for domestic water

usage, we started working towards measuring, reporting and
reducing water footprint of our operations. We administer
implementation of water management initiatives through the
Environmental Policy. The Policy is integrated with the business
strategy and covers the following aspects of water conservation with
the objective of ensuring access to safe water, sanitation and
hygiene for all employees in our premises.

Improve water efficiency in operations

Reduce water footprint through water efficiency measures, adopting the “3 -R” (reduce, reuse
and recycle).
Set, monitor and review mechanisms on an on-going basis toward achieving continuous
improvement.
Comply with all the applicable regulatory and legal and requirements relating to water.
Report our water performance by being transparent to all stakeholders through appropriate
communication channels.
Proactively support governmental and other national water conservation initiatives.

81
Our Water Strategy and Management Plan were aligned with the Mahindra Group Sustainability
Framework to pave the way for new business continuity strategies.

Evaluating water related risks and aligned processes for managing these risks.
Water availability and quality emerged as a business risk. One of the direct critical risks due to Climate
Change is scarcity of fresh water in coming years. Tech Mahindra along with Mahindra Group supported the
development of India Water Tool 2.0 (IWT). The IWT 2.0 allows companies, government agencies, and other
users to identify their water risks; prioritize their water management actions; plan for sustainable water
management and address water risks that confront agriculture, industry, households, and the natural
environment in a given river basin. The research and development of IWT would help us identify future water
risks arising at different facilities due to climate change and carve out the corresponding mitigation strategy.
Water Risk - Mitigation Initiatives in Business Operations

System for ensuring smooth business operation in case of a delay in monsoons and increased water
scarcity.
Assessing the impacts of water borne diseases impacting wellness of our associates which indirectly
impacts the revenue of the company.
Six Sigma projects on optimizing water consumption
Harvesting Rainwater where feasible

We were the least affected company during natural disasters like the Chennai floods and Vizag cyc lone.

G4 EN 8 - Total water withdrawal by source

FY 2014-15 FY 2015-16 FY 2016-17
834104.267 883936.1165 1347486.774
Total volume of water
withdrawal (KL)
651671.019 524204.9565 926537.7542
Total volume of water
consumed (KL)

Recycling and Reusing waste water

We understand the importance of water for our overall business continuity. We recycle sewage water in STPs
and use it for landscaping. We have taken a target to install 6 rain water harvesting units in our owned
premises by 2020-21. These measures are a step towards managing future water stress and water linked
future regulation. They will also enable internal cost efficiencies and reduce dependency on fresh water.

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Sewage Treatment Plants (STPs) for Water Reuse and Recycling
We have STPs at all our owned facilities. All such facilities are ‘Zero Water Discharge’ facilities. Waste water
generated is treated and reused for landscaping and washrooms. This helps us to reduce our fresh water
requirement. In FY 2016-17, we recycled and reused 420949.02 Kl of waste water from 11 locations.

G4 EN10 - Total volume of water recycled

FY 2014-15 FY 2015-16 FY 2016-17
346054.916 405139.2 420949.02
Total volume of recycled water used
(Kl)

G4 EN 22 - Total volume of water discharged by quality and destination

FY 2014-15 FY 2015-16 FY 2016-17
182433.25 340733.22 143469.31
Total volume of water discharged
(KL)

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 Ensuring Zero Waste to Landfill

We are arduously working towards generating less waste by focusing on the

behavioral aspects of waste generation and ensuring that all the waste we
generate from our own activities is disposed in a responsible manner. We have a
robust system of segregation at source, collection and management of both
hazardous and non-hazardous waste. Tech Mahindra have setup procedure and
best practices for Solid Waste Management; all Solid Waste Management across
locations follow procedures. The management of the E-waste is as per the E-
waste Management Policy which are consistent with the E-waste (Management
and Handling) Rules, 2011.

The waste generated by category and how they are recycled is explained below:
Category Waste Disposal Method
E - Waste E-waste which includes E-waste is sent to registered
defunct computers, recyclers who are authorized by
monitors, servers, laptops the respective State Pollution
and electrical items. Control Boards, as per the E-
waste (Management) Rules.
Solid – UPS Batteries, Sent to the respective State
Hazardous Generator Filters Pollution Control Board
Waste Liquid - Compressed oil authorized Recyclers.
and fuel from DG sets.

Non-hazardous Scrap waste comprising of Paper waste is given to vendors

Waste plastic, packaging waste, for recycling.
paper and cardboard and Food waste is either composted
other office waste. on-site to generate manure for
Food waste from the maintaining green belt or sent to
canteens piggeries.

In the same period, we vermin-composted our wet waste and yielded 37.5 tons of manure
which was used for landscaping. Our waste output does not affect any habitats or water
bodies. We do not ship any hazardous waste anywhere. The total waste disposal by
category is provided below:

G4 EN 23 - Total weight of waste by type and disposal method

FY 2014-15 FY 2015-16 FY 2016-17
E-Waste (MT) - 121.3 149.5

Hazardous

Solid (MT) 51 166 130.48

Solid (Nos.) 1007.07 6430 4017

Liquid (KL)* 5 8 9.315

Non Hazardous

Solid (MT) 532 476 715.9

Solid (Nos.) are UPS Batteries.

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G4 EN29 - Monetary value of significant fines and total number of non -monetary sanctions for non-
compliance with environmental laws and regulations
In FY 2016-17, there were no fines or non-monetary sanctions due to non-compliance with environmental
laws and regulation.

G4 EN31 - Total environmental protection expenditures and investments by type

We have been proactively making financial investments towards environmental protection, particularly
improving our operations and activities, to become resilient to climate change. All investments towards
greening our facilities and transitioning towards low carbon growth are voluntary initiatives.
Capital Expenditure for Water (INR) Green Investments (INR)
54679893.42 166082385.7

With a focus on assigning cost to Carbon and Water, we also monitor and track our operating expenditure
on energy and water by facility. The total expenditure was:
Operating Expenditure on Energy and Water (INR)
Fuel 69638245.77

Electricity 1389666807

71981995.52
Water

Total 1531287048

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Promoting Biodiversity
Our commitment to sustainable development also constitutes conservation of biodiversity. We have a
Biodiversity Policy and a directive on protecting habitats and species. We have a swan pond in our Tech
Mahindra Hinjewadi campus, at Pune and a Deer Park at Tech Mahindra Technology Center in Hyderabad.
The objective of the park is to increase awareness of the associates on Biodiversity. It is maintained by a
retired NZP veterinary officer and a qualified veterinarian consultant. The maintenance of the park is
administered through our Vision statement - Education, Conservation and Entertainment.

G4 EN 14 – Number of IUCN Red list species and national conservation list species with habitats in
areas affected by operations
We ensure that none of our operations have a negative impact on biodiversity by complying with all the
conditions identified and recommended during environment impact assessments. There are no IUCN Red
List species or national conservation list species in the vicinity of our locations.

Deer Park at Tech Mahindra Technology Center in Hyderabad

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Making Sustainability Personal
Sustainability is the responsibility of all. When we make Sustainability personal in day -to-day lives of our
associates, we know that we have taken a step beyond integrating sustainability into the strategy. We have
made it a way of life. Our efforts are driven by the Green Marshals - a small band of TechMighties who are
passionate about spearheading the cause of environment and sustainability.

GREEN MARSHALS, which has been our ongoing initiative along with JOSH, enables us to create a platform
for the associates to engage in co-curricular and societal activities driven towards environmental stewardship
and carbon responsibility. To bring greater participation, the initiatives are incentivized and rewarded. Some
of the Green Marshals Initiatives in the reporting year are captured through the Green Marshals Events
Gallery. Our Green Marshals clocked 2782 volunteer hours under our Green and Sustainability initiatives.

87
NAAM Foundation
130 Green Marshals of TechM planted 10,000 trees in Goglegaon Village in the drought affected area of
Ahmednagar with the commitment to ensure survival rate by taking responsibility for 3 years.

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Enhancing our Human Capital

Human Capital refers to the Associates of Tech Mahindra’s competencies, capabilities and willingness to
learn and innovate and remain relevant. It is driven by our governance systems, our learning and
development initiatives and loyalty to the organization.

Strategy & Approach

For TechM, development of the Human Capital means continuous engagement with our associates;
developing and enhancing their knowledge and skills and making them future ready to adapt to the changing
customer requirements; retaining talent and enabling the associates to live the Mahindra Rise Philosophy.
Vision
Build People to Build Business
Mission
To attract, develop and retain a high performing diverse workforce by provide a Caring Environment and
The Freedom to Explore, so as to create value for all stakeholders.

Our Value Proposition for Associate

Freedom to Explore: Connect, Co-Create and Celebrate

Opportunities to CONNECT Aspiration and Achievements

Opportunities to CO-CREATE New Approaches & Breakthrough Solutions.
Opportunities to CELEBRATE the blending of Life & Work

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 “While Technology can enable processes, it is
people who make things happen. In this journey of
delivering tangible business value to stakeholders,
our associates are envisioned as the strategic
differentiators. We take enormous pride in our
associates and are dedicated to making the
organization a great place to work. The policies,
processes and benefits are all aligned to ensure
that the associates work in a transparent and
inclusive environment that helps them to develop
Rakesh Soni, into technically sound and functionally adept
Chief People Officer professionals”.

G10- Total Workforce by Employment Type, Employment Contract, and Region

Employee 31-Mar-17
Type
Age <30 Age 30-50 Age>50 Total

Male Female Male Female Male Female Male Female

Senior 348 38 131 12 479 50

Management
Middle 37 14 7663 1132 340 44 8040 1190
Management
Junior 25027 18261 15529 3700 78 18 40634 21979
Management
Sales 17 5 73 15 19 2 109 22

Fixed Term 82 90 59 16 17 2 158 108

Contract
Third Party 495 100 269 64 4 1 768 165
Contract
Total 25658 18470 23941 4965 589 79 50188 23514

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Opportunities To Connect Aspirations & Achievements

Tech Mahindra actively invests

Multiple Career Shadow Board
in robust Career and
Leadership Development Tracks Young CEO
Right-skilling Associates
Programs to facilitate IJPsLearning
360 Degree & Job Rotation
&
AIM
Associates’ professional Development
Global Exposure Global Leadership Cadre
growth and development. 24*7 Learning 1000 Leaders
Higher Education Support

Associates’ career development and growth are key areas of focus at TechM. We have built an environment
conducive for Associates to grow professionally and personally, through a combination of an effective
performance and career management process, comprehensive learning and development offerings and
focused leadership development programs.

G4 LA 11 – PERCENTAGE OR EMPLOYEES RECEIVING REGULAR PROFESSIONAL AND CAREER

DEVELOPMENT REVIEWS
100% of the associates who joined before September 2016 (in accordance with our appraisal cycle) were
appraised.

G4 LA 10 - PROGRAMS FOR SKILLS MANAGEMENT AND LIFELONG LEARNING THAT SUPPORT

THE CONTINUED EMPLOYABILITY OF EMPLOYEES AND ASSIST THEM IN MANAGING CAREER
ENDINGS
At Tech Mahindra, continuous learning is part of our core strategy and is recognized as the only sustainable
competitive advantage. A culture of continuous learning has been meticulously created and nurtured over
the years, and this is the key factor in delighting all the stakeholders – Associates, Investors and Customers.
We nurture globally competitive professionals and enable their continuous learning through robust training,
360 degree learning and leadership development programs. This is coupled with an effective
performance and career management processes which helps associates in professional growth. We
endeavor to create an environment that fosters innovation and collaboration and enables the associate to
leverage the collective knowledge of TechMighties.

Our multiple career tracks and internal job rotation options give our associates diverse opportunities within
Tech Mahindra. The Young CEO Programme, Shadow Board, 1000 Leaders and the Global Leadership
Cadre are some of our flagship programmes that enable our young achievers to demonstrate their leadership
skills and strategic thought process. Robust learning platforms enable individual development and help
Associates to unleash their true potential

Higher Education Support: Specialized tie-ups with best of education providers are rolled out to provide
customized higher education programs and these programs have been crafted to suit the time challenges of
the working professionals

Right-skilling Associates: Right skilling the associates have been the priority in line with the strategy of
transitioning from IT2DT. We focused on right skilling the associates and making them future ready to provide
relevant solutions. Associates were trained through our Digital Training Framework (Digital Practitioners
and certified professionals in the areas of Design Thinking, DevOps, Automation and Business Networking
skills. Cross Skilling Associates for Virtualization so that they can deliver end to end services to customers.

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G4 LA1 – TOTAL NUMBER AND RATES OF NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER BY
AGE GROUP, GENDER AND REGION
New Hires during reporting period
Employee New Hires
Type Age <30 Age 30-50 Age>50 Total
Male Female Total Male Female Total Male Female Total Male Female
Senior 46 5 51 9 9 55 5
Management
Middle 33 9 42 1468 192 1660 27 2 29 1528 203
Management
Junior 17867 10632 28499 5052 1247 6299 6 1 7 22925 11880
Management
Workmen 0 0
Fixed Term 132 112 244 73 20 93 11 1 12 216 133
Contract
Third Party 731 149 880 393 89 482 4 2 6 1128 240
Contract
Others 297 207 504 43 11 54 12 1 13 352 219
Total 19060 11109 30169 7075 1564 8639 69 7 76 26204 12680

Employee turnover during reporting period

Annualized Quarterly attrition is computed on “LTM” last twelve months. This data is as on 31st March, 2017.
The annual attrition for FY 2017 is 17%

G4 LA9 – AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE BY GENDER, AND BY
EMPLOYEE CATEGORY
2016 – 17

Employee by category Male Female Avg. training Hour

Junior Management
49.35 54.24 51.06
Middle Management 52.63 52.83 52.66
Senior Management 21.47 19.86 21.31
Fixed Term Contract 26.29 13.97 21.29
Third Party Contract 19.53 26.09 20.69
Others 7.83 1.0 6.47

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Opportunities to CO-CREATE New Approaches & Breakthrough Solutions

We promote an empowered work MyBeatPlus

Intrapreneurship Program Freevoice
environment. Every Associate has
the right to challenge status quo IRIS TechM CARES Survey
and explore opportunities to do Mahindra Innovation Awards KÈE Portal
new things and new way of doing Codathons/Hackathons Ask The Expert
things, powered by the collective Leader Chats MINK
wisdom of TechMighties and a Raintree
Coffee Meets
strong engagement with Annual Excellence Awards
All Hands Meets
leadership. KUDOS
Location Councils

Innovation Focused Culture: At TechM, our Associates are an integral part of our 360 degree innovation
strategy and by crowd-sourcing ideas from 100,000+ Associates and transferring the mantle of ideating on
to them, we encourage innovation across the organization. Initiatives like o ur Intrapreneurship Programme,
Innovation Platforms - IRIS, Mission Innovation, Knowledge Portals and the Social Intranet are few of our
platforms that facilitate co-creation and innovation at Tech Mahindra. Through the Intrapreneurship
Program, associates have the opportunity to pursue their business ideas and commercialize them with
support from mentors and resources of the company.

Associate Connect: We believe in staying connected with our Associates and have established multiple
platforms to ensure transparent, informative and engaging two-way communication with our Associates. Our
multi-channel communication programs (Free voice, all hands meet, My Beat plus, SURE, etc..)
enable associates to provide bottom up feedback and contribute, share, use and store both explicit and
implicit knowledge and experiences with the rest of the organization. This feedback is considered for changes
in the organization that impact an associate’s work life and also contribute towards the strategy and direction
of the company.

There are various engagements mechanisms for associates to gain perspectives on the Company’s future
growth plans, industry trends and future orientation. Some of the initiatives for leadership connect are –
Connect with the CEO, CEO Blogs, CXO Blogs, Leaders Web-chats, Coffee Meets, Location Council Meets,
etc.

Associate Satisfaction – TechM Cares: TechM Cares survey measures associate experience across key
engagement dimensions like Career, Alignment, Recognition, Empowerment and Strive. The action planning
feature in the survey is a step towards collaborative decision making that influences aspects such as jobs,
work environment and the direction of the company as a whole.

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Rewards and Recognition: We recognize our
associates for their outstanding efforts and their
contribution and value addition to the organization
through a Rewards and Recognition (R&R) Program.

Tech Mahindra’s performance based recognition

offerings are designed to be relevant and comprehensive,
ranging from individual and instantaneous Awards like –
Bravo, Pat on the Back, Loyalty and Contribution are
recognized through our exclusive Long Service Awards
on Milestone Service Anniversary.

The Annual Excellence Awards is TechM’s apex

platform to celebrate excellence and provide visibility to
the 'Best amongst the Best' performers while recognizing
achievements in Innovation, Excellence, Solutions,
Relationships, Growth and Operations.

Our Rewards Program – KUDOS, is designed to reinforce and recognize the most important outcomes
Associates create for our business. This comprehensive model recognizes excellence demonstrated by
individuals, project teams as well as the larger universe of business and support units and is aimed at
acknowledging Associates achieving excellence in both technical and managerial roles.

Opportunities to Celebrate the blending of Life & Work

We provide a wholesome JOSH Family Day

employment experience to our Special Interests Programs Ekatvam
Associates by enhancing personal ACEr Felicitation
Insurance Coverage Accepting No Limit Awards
wellbeing in addition to their Associate Welfare Trust
professional wellbeing and enable Wealth of Wellness
them to blend life and work Rise for Good through Tech
Let's Talk
Mahindra Foundation
seamlessly. Flexi Work
Diversity & Inclusivity Programs

Workplace Benefits: In order to attract and retain the best talent in the industry, we offer industry leading
benefits to employees.

G4 LA2 – BENEFITS PROVIDED TO FULL TIME EMPLOYEES WHICH ARE NOT PROVIDED TO PART
TIME EMPLOYEES BY SIGNIFICANT LOCATIONS OF OPERATION.
We abide by the local employment/labour laws prevailing in India and the countries we operate. Benefits are
provided to the permanent (full time) and contractual (fixed term/part -time) employees based on the
entitlements as provided by the regulations and the local laws in the countries of operation.

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Work life balance provides great opportunities to improve the bottom line of the company. We are committed
to providing a holistic employment experience to associates with the flexibility to balance both professi onal
and personal commitments. Our HR policies are designed to incorporate work life balance. Flexible work
timings are specifically designed to facilitate seamless work life integration for associates.

JOSH ‘The Catalyst for Fun’: Josh is

a voluntary group at TechM formed by
“life enthusiasts” who run fun, delight
and connect events at TechM. The Josh
Team Members ensure that
TechMighties remain encouraged,
entertained and enable society around
them. JOSH team members - known as
“Joshilays” - give every associate a
reason to smile, celebrate and connect
work with fun. Every Tech Mahindra
location has its Josh teams formed by
Associates volunteering to be part of
these teams and within Josh, there are
clubs dedicated to Culture, Sports,
Adventure, Movies, Quizzing etc. and
they organize events that include
charity, cheer and challenges.

The entire JOSH team works together

in conjunction with the Location
Councils to Drive Positive Change in
the lives of Associates while Accepting
No limits and Thinking Alternatively and
celebrate every single occasion with
passion, enthusiasm and commitment

Our Family Connect Programmes such as Founder’s Day, Family Day, Ekatvam, ACE Awards and ensure
we stay connected with our extended Tech Mahindra universe and celebrate our success with them.

Associate Welfare Trust: Associate Welfare Trust has been formed to provide financial assistance to
members of the Trust in case of medical
emergencies where the medical expenses are
more than the amount covered by the
hospitalization insurance scheme of the Tech
Mahindra. The Trust is funded and run by TechM
associates (Trustees are a set of nominated
associates).

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Wealth of Wellness (WoW): We have a comprehensive Health and Wellness program - ‘Wealth of Wellness’
(WoW), through which we harness the power of technology for associate health and wellness.

WOW strives to provide various avenues to the associates to ensure their physical, mental and spiritual
wellbeing. The program offers sessions, events, camps, webinars, talks, infrastructure, workshops, and
health contests and enables awareness of physical, emotional and spiritual fitness for associates. The WOW
programs, activities and needs are planned through the ‘WOW Committee’, our Health and Safety
Committee. It investigates workplace safety and injuries; brings fitness to the desks of the associates and
also works with the management. The WOW committee is also responsible for tracking the effectiveness of
our wellness program.

Wellness Infrastructure: All large campuses at TechM have Medical Rooms, Gymnasiums and Indoor
Games facilities for use by Associates

G4 LA6 - TYPE OF INJURY AND RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS, AND
ABSENTEEISM, AND TOTAL NUMBER OF WORK-RELATED FATALITIES, BY REGION AND BY
GENDER.
In the reporting year, there were no injuries or illness within the premises which lead to lost days or
absenteeism by the employees.

Counseling Facilities for Associates: We are also committed to the psychological well-being of our
associates. Counseling facilities are available at all the locations and in strict confidentiality.

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Diversity and Inclusivity
TechM’s Diversity and Inclusivity mission for sustainable leadership is “Acknowledge, respect, and leverage
the value of individual differences to enhance organization competency and innovation for Sustainable
Leadership”. In TechM, we do not limit diversity to providing equal employment opportunities but extend it to
valuing and celebrating the uniqueness of every individual by fostering an envir onment of inclusion and
empowerment. We have been focusing on matrices of gender, cultural and generational diversity and we
have made optimistic strides in inclusivity.

We believe that differently-abled associates increase the quality of organizational diversity and encourage
collaborative work. We therefore have special initiatives to provide equal opportunities and necessary support
to differently-abled professionals. Cultural diversity at the workplace provides a competitive advantage
enabling idea generation and an ability to understand a wide variety of customer segments.

Diversity Initiatives
There are focused initiatives which support and empower women to take on leadership positions, some of
which are Leadership Talks, Role Models and Fire-side Chats, COLORS and Mentoring Table.

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G4 LA3 – RETURN TO WORK AND RETENTION RATE AFTER PARENTAL LEAVE
Associates who Associated who returned
availed Parental to work after parental
Leave leave
Maternity Leave
(No) 818 816

Paternity Leave
(No) 7 2184

In the reporting year, we added a new matrix in gender diversity and started monitoring the percentage of
women in revenue generating functions.

Percentage of women in workforce by category FY 2015-16 FY 2016-17

Female as percentage of total workforce (%) 30 30.85

Females in Management Positions (as % of total Management 11 11.47

Employees)

Females in Junior Management Positions, i.e. first line 12 11.63

management (as % of total Junior Management Positions)

Females in Top Management Positions (as % of total Top 8 8.40

Management Positions)

Females in Management positions in Revenue Generating - 10.96

Functions (as percentage of all such managers)

Safe and Fair Work Environment: At TechM, we have institutionalized various policies to promote the highest
standards of ethical behavior in our business conduct and to ensure that the work environment is conducive
to fair, safe and harmonious relations based on mutual trust and respect. This assurance is manifested, in
part, by our Code of Ethical Business Conduct (CEBC), Whistle Blower Policy, and Anti-Sexual Harassment
Policy

GA HR2: TOTAL HOURS OF EMPLOYEE TRAINING ON HUMAN RIGHTS POLICIES OR PROCEDURES

CONCERNING ASPECTS OF HUMAN RIGHTS THAT ARE RELEVANT TO OPERATIONS, INCLUDING
THE PERCENTAGE OF EMPLOYEES TRAINED
Adequate workshops and awareness programmes against sexual harassment are conducted across the
organization

Women Safety
Women safety is a priority for Tech Mahindra. With a focus on increasing the number of women joining the
workforce, we want to reiterate our commitment to safety at the workplace. We have zero tolerance to sexual
harassment at the workplace. We empower our women associates and ensure their safety by organizing self-
defense workshops; GPS enabled cabs; regular transport surveys and training bus/cab drivers on safety
aspects. TechM also follows the highest Health, Safety and Environment standards and is one o f the few IT
Organizations to be dual certified for both ISO 14001 and OHSAS 18001 together.

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Delivering on Social and Relationship Capital

Tech Mahindra’s Social and relationship capital is derived from the institutions
and the relationships within and between communities, groups of stakeholders
and other networks. It includes shared norms, and common values and
behaviours; trust and willingness to engage and strives to build and protect with
external stakeholders; and intangibles associated with the brand and reputation.
It represents the ability to share information to enhance individual and collective
well-being.

“India has the world's largest youth

population, which has tremendous
potential to boost our economy. This is
why, from primary school to
professional training, our CSR
interventions are aimed at
empowering our young people to take
charge of their lives, and build a more
prosperous future for themselves and
their families. The success of SMART,
and now the SMART Academies, has
shown how corporates can play a vital
role in supporting local communities
through CSR."

Loveleen Kacker
Chief Executive Officer, Tech Mahindra Foundation

Strategy and Approach

Corporate Social Responsibility means responsible business practices by involvement of all stakeholders in
the decision-making process and in operations. It entails having business policies that are ethical, equitable,
environmentally conscious, gender sensitive, and sensitive towards the diff erently- abled.

We established Tech Mahindra Foundation (TMF) in 2007 and Mahindra Education Institutions (MEI) in 2013;
under Section 25 of Companies act 1956 (referred to as a section 8 Company in Companies Act 2013) with
dedicated professionals to carry out our CSR activities. The TMF has been focusing on implementation
projects related to of education and employability while MEI implements higher education projects.

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CSR Vision - Empowering Through Education
Purpose of our CSR Program
Demonstrate commitment to the common good through responsible business practices and good
governance.
Actively support and be part of the state’s development agenda to ensure sustainable change.
Set high standards of quality in the delivery of services in the social sector by creating robust
processes and replicable models.
Engender a sense of empathy and equity among employees of TML to motivate them to give back to
the society.
Corporate Social Responsibility Committee
We have a CSR Committee at the Board Level. Our CSR focus areas, budget and initiatives are approved
by the CSR committee of the Board. It formulates and recommends policy and expenditure, and has a
monitoring and review mechanism. We spend at least 2% of the average net profits made during the three
immediately preceding financial years as per the CSR Rules.

Tech Mahindra Foundation

The Foundation focuses on CSR activities that benefit socially and economically disadvantaged communities.
This is done by consistently investing in programs of Education for the underprivileged and the differently
abled as well as equipping youth with market-linked skills and opportunities.

“Educated, Skilled and Able Women and Men Are a Country’s True Strength.”

We are committed to a vision of a more equitable and inclusive India, and the values of good corporate
governance, ethical practices, and dignity of the individual. In order to achieve sustainable transformation,
we support and create opportunities that nurture talent and enable the socially disadvantaged to utilize their
potential.
CSR Focus Areas – Alignment with SDGs

Goal 4:
Ensure inclusive and
quality education for all and
promote lifelong learning.

TMF’s main focus area is Education, Employability, and Disability. It is mirrored with the UN Sustainable
Development Goals (SDGs), particularly Goal 4 – ‘Ensure inclusive and quality education for all and promote
lifelong learning’. Our focus on all round development in education helps us to reach the poorest and
underserved segments children and enable them to Rise. The education program is embedded in inclusivity
for women and differently-abled children. Employability, our other focus area is steered towards skill building
and ensuring employability of the youth.

We track the number of children who benefited under the education and skilling initiatives.

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Education
We believe that Education is the tool for creating an empowered, enlightened society capable of rising to its
full potential. Availability of Quality Education for all classes is the way to ensure an equitable and just social
system. Our Focus Area Is Promotion Of Education. Within this broad theme we include school education,
education for employment, and technical education. Our interventions in these thematic areas are prioritized
to reach the underserved segments of the population like women, economically and geographically
disadvantaged, and vulnerable and marginalized population.

We have identified the following thrust areas in education:

Whole School improvement
Capacity building of teachers and other stakeholders
Supplementary education.

The work in these thrust areas is carried out through the following programs:
All Round Improvement in School Education, or ARISE
ARISE+, or All Round Improvement in Special Education, targeting children with disabilities.
Shikshaantar, a capacity building program for educators.

Empowering through education – Tech Mahindra Foundation’s Initiative to enable society to Rise

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ARISE (All Round Improvement in School)
This program works with the Municipal Corporations of India to develop existing Government/ Non-
Government schools and turn them into schools of excellence. It builds upon four specific connected
domains of school improvement:
Academic - focuses on educational achievements and measures to improve them- ensuring that
children acquire grade appropriate learning.
Social - attempts to build upon values of friendship and collaboration between schools and
families/communities of children through connecting, networking, and ensuring that communities
participate actively in the process of education along with children, teachers, school management and
teachers
Infrastructural - makes schools happier and effective places of learning.
Organizational - attempts to add an effective management component to the schools- to ensure that
schools evolve as effective units of education, functioning effectively as well managed organizations.

ARISE+
Arise+ is a special program, which focuses on school education for children with disabilities. Through this
program, we reach out to some of the most disadvantaged children in India. We work with diverse groups
and empowers children with physical disabilities line sight impairment, hearing/ speech impairment, loco-
motor disabilities and mental disabilities by focusing on the following interventions:
Early detection of disabilities.
Equipping parents, teachers and caregivers with techniques to look after children with disabilities.
Support in education of children with disabilities.

Bringing smiles to their faces and enabling them to Rise through ARISE+

Shikshaantar
Shikshaantar, literally means ‘creating a difference in Education’. It focuses on building the capacity of
teachers, principals, school inspectors, education officers and leaders. It works with a vision to achieve quality
enrichment in education by developing an effective in-service teacher education program which prepares
professionally competent and compassionate education professionals, dedicated to serving the diverse
cultural, linguistic and exceptional learning needs of the most marginalized children.

We have collaborated with the Municipal Corporations of Bengaluru, Chennai, East Delhi, South Delhi,
Greater Mumbai and Pune, as well as academic organizations.

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Disability
India has more than 21 million people with some kind of disability as per the 2001 census. Persons with
disabilities continue to be discriminated against, with the focus being on their disability instead of ability. We
seek to give dignity and independence to persons with disability (with a special focus on visual disability)
through inclusive education, providing employable market-related entrepreneurial skills, and opportunities,
thereby allowing them to be self-reliant.

Employability
We promote the concept of “education to employability”, and runs the SMART (Skills-for-Market-Training)
program to encourage and facilitate employment opportunities for youth from the marginalized communities.
Under this program, there are SMART and SMART+ (for persons with disabilities) centers, which are
operational across India. The SMART program targets school dropouts and addresses the skill gap in areas
like retail, hospitality, accounting, nursing aide, plumbing, electricians, and so on. Employability includes
following CSR events:

SMART (Skills for Market Training)

SMART program is one of the largest skilling initiatives run under corporate social responsibility in India. It is
a model vocational training program for youth from underprivileged backgrounds, which helps them actualize
their potential in a career of their choice. The SMART program equips youth from urban communities with
the requisite skills and attitudes for them to gainfully participate in the new economy.
It is aligned with the Government of India’s vision on skilling.
The SMART program is designed with a vision in mind – it focuses on training today for jobs of
tomorrow. It aims to prepare youth to take on the challenges of newer -age careers by equipping them
with skills in trades like Customer Relationship and Skills, Tally etc.
All the trades in the SMART program start with a Foundation Course, which train students in three
areas – spoken English, basic IT/computers and workplace-readiness. Together, these courses equip
the youth with the quintessential people and soft skills that help them navigate through their everyday
work with confidence and comfort at a very early stage
The program lays great emphasis on practical training, in addition to the concepts and theories of the
trades. Students are regularly taken out for industry visits, and guest lectures are organized to bring
industry expertise right inside the classroom
Full placement support is offered to the graduates, who get placed at a country -level average
placement rate of 70%.
The Foundation maintains a regular connect with the graduates and has real time monitoring of the
program through a robust management information system (MIS).
SMART+
SMART+ or SMART for persons with disabilities was launched in 2013-14 – to include youth with disabilities
under the skilling initiatives of the Foundation. The Programme has enabled youth with a diverse range of
disabilities – sight impairment; hearing/ speech impairment and loco-motor disabilities to receive hands on
training and exposure to the rich curriculum and resources of SMART.

SMART-T
Drawing upon industry research and experience of running a large employability program, the Foundation
realized the need of bridging the demand and supply gap for trained, skilled manpower across various trades
in technical domains. We offer a variety of trades through the SMART –T program, a number of them in
formal partnership with some of the leading agencies in technical training.

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MAHINDRA EDUCATION INSTITUTION (MEI)
Mahindra Educational Institutions, a 100% subsidiary of Tech Mahindra Limited, is a not -for-profit company
set up under Section 25 of the Companies Act 1956 (corresponding to Section 8 of the Companies Act 2013).
The main objectives of MEI are:

To set up institutions of higher learning for encouraging education and research work in different
disciplines, to promote innovation and technology development, to collaborate and/or affiliate with
other universities in India and abroad for the cause of promoting quality higher education.
To collaborate and cooperate with educational or other institutions in any part across world by
exchange of teachers and scholars promote higher education
To undertake, collaborate or affiliate with any institutions, trusts, or any other bodies in India and
abroad for establishment and running of educational institutions in different disciplines to provide
tertiary education and research, to award degrees, institute awards and fellowships, provide
scholarships for education, organize conferences and seminars, provide vocational education and
any other activity related to promotion of higher education.

Technical Education: The Mahindra École Centrale (MEC) project provides high quality technical education
in Engineering and Computer Technology for the students. MEC is an international quality, technology school
with assured career progression for engineering aspirants. It focuses on multi -disciplinary knowledge,
personality development, and critical-creative thinking. MEC College of Engineering, heralds the Rise of the
New Engineer in India.

Employee Volunteering
We lay emphasis on employee volunteering in all our CSR efforts. Driving positive change is one of the three
pillars of Mahindra RISE. It rests on creating opportunities that allow associates to make a difference while
they grow professionally. We live this value, through corporate volunteering.

We encourage associates to contribute their time and skills to diverse social initiatives of the Tech Mahindra
Foundation. We aim to have at least 10% of our associates spend 10% of their free time in CSR activities. In
2016-17, 14370 associates participated in volunteering activities and clocked 70,620 hours. This is almost
20% of the total work force of Tech Mahindra Ltd. India. We also clocked 2782 volunteer hours under our
Green and Sustainability initiatives led by the associates’ advocacy group the Green Marshals.

Volunteering activities are not conducted during work hours. All employees who participate in the
Foundation’s volunteering programs do so during their own free time after work or over the weekends and
holidays.

G4 SO1 – Percentage of operations with implemented local community engagement, impact

assessment and development programs
Tech Mahindra Foundation implements programmes both directly and through NGO partners. The Tech
Mahindra SMART Academy for Healthcare in New Delhi, and the In-Service Teacher Education Institute run
in partnership with the East Delhi Municipal Corporation are direct implementation projects. Two new direct
implementation SMART Academies are in the pipeline in Mohali and Visakhapatnam.
In 2016-17, we ran 144 projects. Through our initiatives we have directly impacted the lives of more than
50000 beneficiaries till date. In addition to the existing SMART Centers, SMART + Centers and SMART- T
Centers, we started the first SMART Academy for Healthcare in Delhi in 2016 -17. The Academy will provide
quality training to allied health professionals such as operation theatre technicians, emergency medical
technicians, dialysis and X-Ray technicians etc. More than 200 students were enrolled in courses of varying
durations in the first year.

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In the reporting year, we trained more than 16,500 young women and men under t he SMART program
through 80 SMART centers. Over 70% of the graduates are placed in jobs upon successful completion of the
training. The details of the initiatives and number of beneficiaries are provided below:
Initiative Description No of Beneficiaries
ARISE (All Round Improvement in Worked with 18 schools 8600
School Education)
ARISE+ (All Round Improvement in Ran 18 Projects 7033
Special Education)

Shikshaantar (Capacity building for Ran 7 projects 7160

educators)
SMART (Skill for Market Training) 80 SMART Centers 16,500

In 2015-16, we carried out an impact assessment of the SMART initiative through a third party. The link to
the Impact Assessment is provided below.
http://techmahindrafoundation.org/wp-content/uploads/2017/02/KPMG-report.pdf

105
Manufactured Capital

Manufactured Capital – Tech Mahindra’s Facilities and Infrastructure; the facilities and
infrastructure of the clients when the associates are on-site for projects; data centers and
IT infrastructure - enables the associates to deliver services to the customers.

The manufactured capital acts as an enabler in increasing our financial capital, intellectual
capital and human capital. Our world class facilities, green open spaces, cafeterias, canteens, training rooms,
medical rooms and gymnasium provide the right environment for the associates to enable service delivery
and development of new platforms and solutions.

Our Facilities

Bangalore Bhubaneswar Chandigarh Chennai

Delhi NCR Gandhinagar Hyderabad Kolkata
Mumbai Nagpur Pune Visakhapatnam

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GRI Content Index
General Standard Disclosures
General Standard Disclosures Page External
Assurance
Strategy and Analysis
G4 1 Statement from the most senior decision-maker. 4– 7 Yes
Organizational Profile
G4 3 Name of the Organization 16 Yes
G4 4 Report the primary brands, products, and services. 17-18 Yes
G4 5 Location of the organization’s headquarters. 10 Yes
G4 6 Number of countries where the organization operates and 16 Yes
there are significant sustainability impacts
G4 7 Report the nature of ownership and legal form. 16 Yes
G4 8 Report the markets served (including geographic 16 Yes
breakdown, sectors served, and types of customers and
beneficiaries)
G4 9 Scale of the organization 62 Yes
G4 10 Total number of employees by employment contract and 90 Yes
gender
G4 11 Percentage of total employees covered by collective 91 Yes
bargaining agreements.
G4 12 Description of the supply chain. 20-21 Yes
G4 13 Significant changes during the reporting period regarding 10 Yes
size, structure, ownership, or supply chain
G4 14 How the precautionary approach or principle is addressed 74 Yes
G4 15 List externally developed economic, environmental and 26 Yes
social charters, principles, or other initiatives to which the
organization subscribes or which it endorses.
G4 16 Memberships of associations and national or international 25 Yes
advocacy organizations in which the organization
participates or holds position.
Identified Aspects and Boundaries
G4 17 List all entities included in the organization’s consolidated 9 Yes
financial statements or equivalent documents. Report
whether any entity included in the organization’s
consolidated financial statements or equivalent documents is
not covered by the report.
G4 18 Explain the process for defining the report content and the 9, 55-57 Yes
Aspect Boundaries.
G4 19 List all the material Aspects identified in the process for 55-57 Yes
defining report content.
G4 20 For each material Aspect, report the aspect boundary (within 55-57 Yes
the organization)
G4 21 For each material Aspect, report the Aspect Boundary 55-57 Yes
(outside the organization).
G4 22 The effect of any restatements of information provided in 9 (No Yes
previous reports, and the reasons for such restatements. restatements)

G4 23 Report significant changes from previous reporting periods in 9 (No Yes

the Scope and Aspect Boundaries changes)

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Stakeholder Engagement
G4 24 a. Provide a list of stakeholder groups engaged by the 54 Yes
organization.
G4 25 a. Report the basis for identification and selection of 54 Yes
stakeholders with whom to engage.
G4 26 Approach to stakeholder engagement, frequency of 54 Yes
engagement by type and by stakeholder group, and whether
any of the engagement was undertaken specifically as part
of the report preparation process.
G4 27 Report key topics and concerns that have been raised 54, 58-59 Yes
through stakeholder engagement, and how the organization
has responded to those key topics and concerns, including
through its reporting.
Report Profile
G4 28 Reporting period (such as fiscal or calendar year) for 8 Yes
information provided.
G4 29 Date of most recent previous report (if any). 8 Yes
G4 30 Reporting cycle (such as annual, biennial). 8 Yes
G4 31 Contact point for questions regarding the report or its 10 Yes
contents
G4 32 ‘In accordance’ option the organization has chosen. GRI 8 Yes
Content Index for the chosen option.
G4 33 Policy and current practice with regard to seeking external 9 Yes
assurance for the report.
Governance
G4 34 The governance structure, committees of the highest 22-25 Yes
governance body and committees responsible for decision-
making on economic, environmental and social impacts.
G4 35 Process for delegating authority for economic, environmental 22 – 24 Yes
and social topics from the highest governance body to senior
executives and other employees.
G4 36 Executive-level position with responsibility for economic, 22 – 24 Yes
environmental and social topics and whether post holders
report directly to the highest governance body.

G4 38 The composition of the highest governance body and its 22 – 24 Yes

committees by executive or non-executive, Independence
and Gender
Ethics and Integrity
G4 56 The organization’s values, principles, standards and norms 25 Yes
of behavior such as codes of conduct and codes of ethics.

108
Specific Standard Disclosures
Material Topic/ Description Page No. Omissions External
Performance Assurance
Indicator
Governance DMA 22 - 25 Nil Yes
G4 34 The governance structure, committees of 22 – 25 Nil Yes
the highest governance body and
committees responsible for decision-
making on economic, environmental and
social impacts
G4 35 Process for delegating authority for 22 – 25 Nil Yes
economic, environmental and social
topics from the highest governance body
to senior executives and other
employees.
G4 36 Whether the organization has appointed 22 – 25 Nil Yes
an executive-level position with
responsibility for economic,
environmental and social topics, and
whether post holders report directly to the
highest governance body
G4 38 The composition of the highest 22 – 25 Nil Yes
governance body and its committees by
Executive or Non-Executive,
Independence, Gender.
G4 56 The organization’s values, principles, 25 Nil Yes
standards and norms of behavior such as
codes of conduct and codes of ethics.
G4 SO4 Communication and training on anti- 25 Nil Yes
corruption policies and procedures
G4 SO5 Confirmed Incidents of corruption and 25 Nil Yes
actions taken
G4 SO6 Total number of political contributions by 25 Nil Yes
country and region

G4 SO8 Monetary value of significant fines and No fines Nil Yes

total number of non-monetary sanctions
for non-compliance with laws and
regulations
G4 EN29 Monetary value of significant fines and 85 Nil Yes
total number of non-monetary sanctions
for non-compliance with environmental
laws and regulations.
G4 EN31 Total Environmental Protection 85 Nil Yes
Expenditure by type
Economic DMA 61 Nil
Disclosures
G4 EC1 Direct economic value generated and 62 - 65 Nil Yes
distributed
G4 EC2 Financial implications and other risks and 66 Nil Yes
opportunities for the organizations
activities due to Climate Change

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Associate DMA 93 – 95 Nil Yes
Engagement
G4 LA2 Benefits provided to full time employees 94 Nil
which are not provided to temporary or
part time employees
G4 LA3 Return to work and retention rates after 98 Nil Yes
parental leave, by gender.

G4 LA 11 Percentage of employees receiving 91 Nil Yes

regular performance and career
development reviews, by gender and by
employee category.
Re-skilling DMA 91 Nil Yes
the
Associates
G4 LA9 Average hours of training per year per 92 Nil Yes
employee by gender, and by employee
category.

G4 LA10 Programs for skill development and 91 Nil Yes

lifelong learning that support continued
employability of employees and assists
them in managing career endings

G4 LA 11 Percentage of employees receiving 91 Nil Yes

regular performance and career
development reviews, by gender and by
employee category.
Health and DMA 96 Nil Yes
Safety
G4 LA6 Type of Injury, occupational diseases, lost 96 Nil Yes
days and absenteeism and total number
of work related fatalities

Customer DMA 45 Nil Yes

Value

G4 PR 5 Results of surveys measuring customer 46 Nil No

satisfaction.
G4 PR 8 Total number of substantiated complaints 49 Nil
regarding breaches of customer privacy
and loss in customer data
Innovation DMA 67 Nil Yes
Management

Renewable DMA 32 Nil Yes

Resources
Supply DMA 20 – 21 Nil Yes
Chain
Management
G4 12 Describe the Organization's Supply Chain 20 – 21 Nil Yes

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G4 EC9 Proportion of spending on local suppliers 20 Nil Yes
at significant locations of operations

Inclusive DMA 99 Nil Yes

Growth
G4 SO1 Operations with implemented local 104 - 105 Nil Yes
community engagement, impact
assessments and development programs

Volunteering DMA 87, 95 Nil Yes

Activity
Water DMA 81 Nil Yes
Security
G4 EN 8 Total water withdrawal by source 82 Nil Yes
G4 EN10 Percentage and total volume of water 83 Nil Yes
recycled and reused

Carbon DMA 76-77 Nil Yes

Neutrality
G4 EN15 Direct greenhouse gas (GHG) emissions 78 Nil Yes
(Scope 1).
G4 EN16 Energy indirect greenhouse gas (GHG) 78 Nil Yes
emissions (Scope 2).
G4 EN17 Other indirect greenhouse gas (GHG) 78 – 79 Nil Yes
emissions (Scope 3).
G4 EN18 Greenhouse gas (GHG) emissions 79 – 80 Nil Yes
intensity.
G4 EN 3 Energy consumption within the 81 Nil Yes
organization.
G4 EN5 Energy Intensity. 81 Nil Yes
Waste DMA 84 Nil Yes
Management
G4 EN23 Total weight of waste by type and 84 Nil Yes
disposal method.
Biodiversity DMA 86 Nil Yes
G4 EN14 Number of IUCN Red List species and 86 Nil Yes
national conservation list species with
habitats in areas affected by operations,
by level of extinction risk.

111
Mapping with the CDSB Framework
The Integrated Report is aligned with the Guiding Principles and requirements (REQs) of CDSB Framework
for reporting environmental information and Natural Capital.
CDSB Guiding Principles
MATERIAL ASPECTS DETAILS PAGE NOS

P1 - Environmental information Material environmental aspects were 55 – 57

shall be prepared applying the identified through a structured process and
principles of relevance and reviewed in 2016-17.
materiality
P2 Disclosures shall be faithfully The information is balanced and neutral 73 – 88
represented. with representation of 3 year trends in the 11 – 14
Natural Capital section. Externally
assurance was carried out by third party.

P3 Disclosures shall be The Natural Capital chapter is part of the NA

connected with other Mainstream Integrated Report using the
information in the mainstream Integrated Reporting Framework.
report.
P4 - Disclosures shall be 3 Year performance trends are provided 73 – 88
consistent and comparable. based on the GRI G4 Guidelines to ensure
comparability with earlier sustainability
reports.

P5 - Disclosures shall be clear All Disclosures are clear and NA

and understandable. understandable

P6 - Disclosures shall be The data is externally assured and the 11 – 14

verifiable. assurance statement is enclosed.

P7 - Disclosures shall be Future outlook of environmental with a 5- 58 – 59

forward looking. year Sustainability Roadmap with 2015-16
as baseline year.

Reporting Requirements
REQ-01 - Company’s Environmental Strategy and roadmap 58 – 59
environmental policy, forms a part of the Sustainability 73 – 88
environmental strategy and Roadmap. There are clearly defined
environmental targets targets for material environmental topics
which are reviewed at the Management
Level.

REQ-02 - Risks and Material current and anticipated 28 – 33

opportunities environmental risks form a part of the
enterprise risk management framework
and are reported along with mitigation
measures in Risks and Opportunities.

REQ-03 – Governance There is a senior executive committee for 23 – 24

monitoring and review of environmental
policies and strategy with monitoring and
review mechanisms. The environmental
policies are subject to the same
governance process and controls as
financial management through the
Sustainability committee.

112
REQ-04 - Sources of GHG Protocol is used for estimation and of 107 – 111
environmental impacts GHG emissions. Other material aspects of
natural capital are reported using the GRI
G4 Guidelines. GRI Content index is
included.

REQ-05 - Performance and Three year trends are reported for each 73 – 88
comparative analysis material environmental topic. 9
There were no changes in strategy,
governance, methodology or KPIs used for
calculating results. However, the scope
increased and has been reported.

REQ-06 - Outlook Effect of environmental impacts, 28 – 33

Risks and opportunities on the
organisation’s future performance and
position is covered in the Risks and
opportunities section.

REQ-07 – Organizational The organizational boundary is the same 8–9

boundary for the Integrated Report - all the facilities
in India. They constitute > 70% of the
business operations.

REQ-08 - Reporting policies The performance has been monitored 9

using the GRI G4 Guidelines consistently.
Assurance statement represents continuity
from one year to the next.

REQ-09 - Reporting period The reporting period of the <IR> is NA

consistent with the Annual Report for
mainstream financial disclosure following
the Financial Calendar of 1st March to 31st
April.

REQ-10 – Restatements There were no restatements of errors in 9

previous reporting period, or changes in
policies or methodology affecting
performance over time. The base year for
GHG emissions was changed as the
number of locations increased to cover all
the locations in India. Acquisitions and
divestments in the reporting year are
disclosed.

REQ-11 – Conformance Disclosures shall include a statement 8

of conformance with the CDSB
Framework.

REQ-12 – Assurance The Integrated Report has been assurance 11 – 14

by an external third party.

113
Tech Mahindra Limited Tech Mahindra Limited
Registered Office: Hinjewadi, Plot No. 1, Phase 3
Gateway Building, Apollo Bunder Rajiv Gandhi Infotech Park
Mumbai 400001, Maharashtra, India Pune 411057, Maharashtra, India
Tel: +91 20 4026 0002
Fax: +91 20 4225 0015

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