KPIT Technologies (UK) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03264570

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2020

for

KPIT TECHNOLOGIES (UK) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

K P Patil

D Koshal

P Sathe

SECRETARY:

A Marathe

REGISTERED OFFICE:

Gautam House

1-3 Shenley Avenue

Ruislip Manor

Middlesex

HA4 6BP

REGISTERED NUMBER:

03264570

AUDITORS:

Butler & Co LLP

Chartered Accountants

& Statutory Auditor

Third Floor

126-134 Baker Street

London

W1U 6UE

The directors present their strategic report for the year ended 31 March 2020.

REVIEW OF BUSINESS

The Directors are pleased to report that the financial year ending March 2020 was a successful year for the company.

In the UK territory, the overall economic scenario was mixed in FY 2019-20. As compared to the previous year, the

territory did not show the same level of traction in our Focus Verticals and the sales cycle continue to remain long. The

Brexit vote has brought in uncertain political and economic scenarios and continue to impact the business. Furthermore,

foreign exchange fluctuations also pose a risk to the Company's business. The Company was able to expand business

with its existing customer base in the UK and Europe and also acquired some new customers in the region. The

company has shown substantial growth in FY 2019-20 with its Auto Business leading the way.

Update on the Global Health Pandemic : COVID -19

The rapid outbreak of the coronavirus (COVID - 19) presents an alarming health crisis that the world is grappling with.

The impacts of COVID-19 pandemic are unfolding in real time. The COVID-19 outbreak is expected to have an impact

on the economies of the affected countries and the international markets. The company is working on bringing in

appropriate changes in the business model to tackle the possible future uncertainties in economic conditions due to the

global pandemic and also taking appropriates measures to control its cost structure significantly. We expect the

Company's financial performance in the next year will not be impacted with any major changes over the current year,

even though the revenue targets in FY 2020-21 will have a reasonable impact. We will continue to build on the work

we have done over the past years to drive efficiency in operations and strengthen the foundations of the business.

ON BEHALF OF THE BOARD:

P Sathe - Director

22 May 2020

The directors present their report with the financial statements of the company for the year ended 31 March 2020.

PRINCIPAL ACTIVITY

The principal activity of the company during the year was marketing and sale of computer software products, operating

in conjuction with KPIT Technologies Limited, the parent company which is registered in India.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report.

K P Patil

D Koshal

P Sathe

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company's financial instruments comprise cash and liquid resources, various items such as trade debtors, trade

creditors etc that arise directly from its operations. The main purpose of these financial instruments is to raise finance

for the company's operations. It is, and has been throughout the period under review, the company's policy that no

trading in financial instruments shall be undertaken. The main risks arising from the company's financial instruments

are liquidity risk, interest rate risk, credit risk, and market risk.

Liquidity risk

The company has to manage the financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and

to invest cash assets safely and profitably.

Credit risk

The company financial asset is cash. It is exposed to credit risk in respect of its cash balances as it uses only one

financial institution in the UK.

Foreign exchange risk management

Foreign currency transaction exposures arising on internal and external trade flows are partially hedged. The company's

objective is to minimise the exposure of overseas trade to transaction risk by matching local currency income with local

currency costs where possible, as well as maintaining multi-currency accounts to minimise conversions.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies

Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have

taken as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Butler & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P Sathe - Director

22 May 2020

Opinion

We have audited the financial statements of KPIT Technologies (UK) Limited (the 'company') for the year ended

31 March 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements,

including a summary of significant accounting policies. The financial reporting framework that has been applied in

their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard

102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally

Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The impact of uncertainties due to the COVID19 pandemic on our audit

Uncertainties related to the effects of COVID-19 are relevant to understanding our audit of the financial statements. All

audits assess and challenge the reasonableness of estimates made by the directors, and related disclosures and the

appropriateness of the going concern basis of preparation of the financial statements. All of these depend on

assessments of the future economic environment and the company's future prospects and performance.

COVID-19 is one of the most significant public health, social and economic event and at the date of this report its

effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown.

We applied a standardised firm-wide approach in response to that uncertainty when assessing the company's future

prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible

future implications for the company and this is particularly the case in relation to COVID19

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the

company or to cease its operations, and as they have concluded that the company's financial position means that this is

realistic.They have also concluded that there are no material uncertainties that could have cast significant doubt over its

ability to continue as a going concern for at least a year from the date of approval of the financial statements ("The

going concern period")

We are required to report to you if we have concluded that the use of the going concern basis of accounting is

inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis

for a period of at least a year from the date of approval of the financial statements. In our evaluation of the directors'

conclusions, we considered the inherent risks to the company's business model, including the impact of COVID-19, and

analysed how those risks might affect the company's financial resources or ability to continue operations over the

going concern period. We have nothing to report in these respects.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are

inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material

uncertainty in this auditor's report is not a guarantee that the company continues in operation.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to

you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page three, the directors are responsible

for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such

internal control as the directors determine necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and

are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the

Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

S Phadke (Senior Statutory Auditor)

for and on behalf of Butler & Co LLP

Chartered Accountants

& Statutory Auditor

Third Floor

126-134 Baker Street

London

W1U 6UE

22 May 2020

TURNOVER

3

19,851,317

33,149,801

Cost of sales

17,562,538

27,814,486

GROSS PROFIT

2,288,779

5,335,315

Administrative expenses

2,310,792

3,140,146

OPERATING (LOSS)/PROFIT

5

(22,013

)

2,195,169

Interest receivable and similar income

36,510

21,127

14,497

2,216,296

Interest payable and similar expenses

7

3,961

10,907

PROFIT BEFORE TAXATION

10,536

2,205,389

Tax on profit

8

(9,125

)

544

PROFIT FOR THE FINANCIAL YEAR

19,661

2,204,845

PROFIT FOR THE YEAR

19,661

2,204,845

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

19,661

2,204,845

FIXED ASSETS

Tangible assets

9

61,746

93,361

Investments

10

15,100,198

10,853,141

15,161,944

10,946,502

CURRENT ASSETS

Debtors

11

15,077,845

17,215,801

Cash at bank

2,995,948

6,881,848

18,073,793

24,097,649

CREDITORS

Amounts falling due within one year

12

10,372,925

15,656,950

NET CURRENT ASSETS

7,700,868

8,440,699

TOTAL ASSETS LESS CURRENT LIABILITIES

22,862,812

19,387,201

PROVISIONS FOR LIABILITIES

14

-

7,250

NET ASSETS

22,862,812

19,379,951

CAPITAL AND RESERVES

Called up share capital

15

14,990,616

11,527,416

Retained earnings

16

7,872,196

7,852,535

SHAREHOLDERS' FUNDS

22,862,812

19,379,951

The financial statements were authorised for issue by the Board of Directors and authorised for issue on 22 May 2020 and were signed on its behalf by:

P Sathe - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2018

10,215,966

5,647,690

15,863,656

Changes in equity

Issue of share capital

1,311,450

-

1,311,450

Total comprehensive income

-

2,204,845

2,204,845

Balance at 31 March 2019

11,527,416

7,852,535

19,379,951

Changes in equity

Issue of share capital

3,463,200

-

3,463,200

Total comprehensive income

-

19,661

19,661

Balance at 31 March 2020

14,990,616

7,872,196

22,862,812

Cash flows from operating activities

Cash generated from operations

1

(3,408,847

)

2,822,638

Interest paid

(3,961

)

(10,907

)

Tax paid

237,989

(719,659

)

Net cash from operating activities

(3,174,819

)

2,092,072

Cash flows from investing activities

Purchase of tangible fixed assets

(10,683

)

(102,342

)

Purchase of fixed asset investments

(4,247,057

)

(429,144

)

Sale of tangible fixed assets

-

2,436

Interest received

36,510

21,127

Net cash from investing activities

(4,221,230

)

(507,923

)

Cash flows from financing activities

Amount introduced by directors

46,949

54,654

Amount withdrawn by directors

-

(46,949

)

Share issue

3,463,200

1,311,450

Net cash from financing activities

3,510,149

1,319,155

(Decrease)/increase in cash and cash equivalents

(3,885,900

)

2,903,304

Cash and cash equivalents at beginning of year

2

6,881,848

3,978,544

Cash and cash equivalents at end of year

2

2,995,948

6,881,848

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2020

2019

£

£

Profit before taxation

10,536

2,205,389

Depreciation charges

62,142

23,184

Finance costs

3,961

10,907

Finance income

(36,510

)

(21,127

)

40,129

2,218,353

Decrease/(increase) in trade and other debtors

1,945,307

(4,845,191

)

(Decrease)/increase in trade and other creditors

(5,394,283

)

5,449,476

Cash generated from operations

(3,408,847

)

2,822,638

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 31 March 2020

31/3/20

1/4/19

£

£

Cash and cash equivalents

2,995,948

6,881,848

Year ended 31 March 2019

31/3/19

1/4/18

£

£

Cash and cash equivalents

6,881,848

7,198,004

Bank overdrafts

-

(3,219,460

)

6,881,848

3,978,544

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/19

Cash flow

At 31/3/20

£

£

£

Net cash

Cash at bank

6,881,848

(3,885,900

)

2,995,948

6,881,848

(3,885,900

)

2,995,948

Total

6,881,848

(3,885,900

)

2,995,948

1.	STATUTORY INFORMATION

KPIT Technologies (UK) Limited is a private company, limited by shares , registered in Not specified/Other.

The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents amounts receivable for services provided net of VAT. Revenue is recognised on approval

by the customer, providing all obligations have been fulfilled. .

Revenue for time & material contracts, invoices are raised on the basis of customer approved timesheets. In case

of fixed price projects, invoices are raised for prescribed milestones achieved on the basis of acceptance /

sign-off received from customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Short leasehold - Over the lease term

Fixtures and fittings - 10% to 12.5% on cost

Plant & machinery - 25% to 33.33% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws

that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of

the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling

at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Going concern

The directors believe that the company is well placed to manage its business risks successfully despite the

current uncertain economic outlook. The directors have a reasonable expectation that the company has

adequate resources to continue in operational existence for the foreseeable future. The Directors consider it

appropriate to adopt the going concern basis in preparing the annual financial statements.

Since the financial year end, there are uncertainties relating to the COVID19 pandemic.The directors have

analysed how the risk might affect the company financial resources and ability to continue operations and have

nothing to report in this respect. No provisions have been made in the financial statements.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2020

2019

£

£

United Kingdom

18,700,912

27,258,774

Europe

1,127,545

5,159,220

United States of America

950

704,782

Asia

21,910

27,025

19,851,317

33,149,801

4.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

7,194,247

9,256,898

Social security costs

784,966

968,019

Other pension costs

20,244

-

7,999,457

10,224,917

The average number of employees during the year was as follows:

2020

2019

Marketing, Sales & Delivery

132

156

Administration

2

5

134

161

2020

2019

£

£

Directors' remuneration

395,802

416,350

Information regarding the highest paid director is as follows:

2020

2019

£

£

Emoluments etc

395,802

416,350

5.	OPERATING (LOSS)/PROFIT

The operating loss (2019 - operating profit) is stated after charging:

2020

2019

£

£

Other operating leases

46,563

83,950

Depreciation - owned assets

42,298

23,128

Foreign exchange differences

30,974

50,274

6.	AUDITORS' REMUNERATION

2020

2019

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

17,536

21,622

Legal and professional fees include £36,010 for the provision of a non- audit services i.e.: payroll and taxation

compliance.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank interest

3,961

10,907

8.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

(1,875

)

(5,006

)

Deferred tax

(7,250

)

5,550

Tax on profit

(9,125

)

544