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Leading global technology research and advisory firm recognized HappiestMinds case studies among top 25 Best Examples of Digital Transformation overmultiple yearsThe gratifying output of these investments is that our IP-led services have been around10% of the overall Company revenue.Social responsibility and the desire to give back has been our commitment from thebeginning. While we have contributed to multiple programs, the centerpiece for us hasbeen contributing to the mid-day meal program through Akshaya Patra Foundation.We call our landmarks as Smilestones and we contribute meals in the names of ourcustomers and teammates. We set ourselves a goal of 2 million meals by the time ofour IPO and were happy to achieve this. During the current year, we have divertedour entire CSR budget to COVID and related relief measures. As schools have beenclosed, a fair percent of the amount has gone into food packs of rations, each of whichis enough for a family of four to survive for a month. We have also contributed toSri Jayadeva Institute of Cardiovascular Sciences and Research to help set up amolecular lab and ICU beds at the Bengaluru facility.From the very beginning, we organized ourselves into three business units (BU):Product Engineering Services (PES), Digital Business Services (DBS) and InfrastructureManagement & Security Services (IMSS). This structure has not changed over thelast decade. However, during the last year, we made a subtle and important change.Different verticals were assigned to PES and DBS respectively. Care was takento ensure that the BU’s had access to similar market size, and each had a few highgrowths, high potential industries. Consequently, both PES and DBS now offer end-toend solutions in their respective verticals. IMSS continues to be a horizontal businesscutting across all industries. Sometimes it is a door opener for the other two BU’s andoften the recipient of downstream business after solution implementation by eitherPES or DBS. For most of the first seven years of Happiest Minds, our PES businesshas been the bedrock of Happiest Minds’ performance. During the last three yearsboth DBS and IMSS have improved their performance substantially. Three engines ofgrowth and profitability led to our outstanding financial results for FY21, where ourEBITDA and profit margins were comparable with the largest players in the industryand in some cases, even better. Of course, all this would not have been possible withoutthe contribution of our three Centers of Excellence, our field sales organizations, ourDelivery organizations and every support function and person within Happiest Minds.Looking ahead to our second decadeDuring the first ten years, we set our goals through two five-year cycles of our Visionstatements. These were socialized with our teams before announcement. They includedsoft and hard goals, but each had well-defined measurement criteria.Frequent reviews in All Happiest Minds Meets (AHMM) ensured the Vision was alwaysa truly shared VISION with everyone aligned and committed to the same.This time we felt that with so much change in the world, we should look ahead for alonger period. Even as we speak, we are socializing the VISION for 2021-2031 withour teams. We have already received valuable inputs, including from our Board of6Annual Report 2020-21We set ourselves a goalof 2 million meals by thetime of our IPO and werehappy to achieve this.

Corporate OverviewDirectors. The new independent members on the Board (Anita Ramachandran, ShubhaRao Mayya and Rajendra Kumar Srivastava) have tremendous experience, which givesthem foresight. Their contributions also gave us additional insights and I must expressmy gratitude to them. We plan to announce the Happiest Minds Vision for the nextdecade before our anniversary date of August 29. In the next year’s letter, I hope toshare some of the highlights and features of the 2021 – 2031 VISION with you.The US Supreme Court in 1819 declared that “a Corporation is an immortal being”.Unfortunately, most organizations survive less than half the lifetime of an averagehuman being and the period of longevity for corporations is becoming shorter andshorter. This is partly due to faster changes in the business environment, industriesbecoming obsolete due to new technologies etc. However, a key component is alsoan appropriate succession planning approach. I have always had in place a plan for mysuccession in the event of an exigency to me, in every company I have led. During theIPO process, we exposed the contours of the succession plan to our potential investors.The fulcrum of our succession planning is our Executive Board (‘EB’), comprising ourthree BU Heads and the CFO. EB members work individually and collectively as theCEO of the Company. Our EB was created in December 2017. The improvement in ourfinancial results from that date has been dramatic and contributed significantly to oursuccessful IPO. Equally important, the EB has provided us organizational continuityand stability. Collaboration has improved and also the quality of decision-making.Very few issues come to me for resolution and this contributes to organizationalagility. Concurrent with our IPO, we have added two new roles, Joseph Anantharaju asExecutive Vice Chairman, and Venkatraman Narayanan as Managing Director & CFO.Both continue to be on the EB. In their new roles, one of their key responsibilities isto lead our M&A initiative. This will have to be an important part of our future plansas Happiest Minds seeks to become a much larger company. Creating a company“designed for perpetuity” will require much more than just this, including ownershipstructure. This framework will also be part of our Vision 2021-2031. All I can say atthis point is that there will be enormous change. The Happiest Minds of 2031 will bevery, very different from the Company of 2021 and we expect that articulating theVision will help us prepare for the change, which will surely arrive.The Happiest Mindsof 2031 will be very,very different from theCompany of 2021 and weexpect that articulatingthe Vision will help usprepare for the change,which will surely arrive.Before I end, I need to bring myself back to the present moment. As an industry,we are fortunate that business has been able to continue on a work-from-home basiswithout interruptions to project delivery for our customers. Since our major marketsof US and Europe have recovered, demand is strong, and we look forward toachieving our goal of 20% organic growth. We expect to sustain profitability, thoughProfits After Taxes will bear the impact of higher taxes on account of us becoming afull-tax paying Company having exhausted all benefits of tax deductible ‘broughtforward business losses’ from earlier years.In conclusion, I would like to conclude by expressing my gratitude to our customersand partners for their steady support and to our outstanding team whose tirelessefforts have brought us thus far. Also, many thanks to our Board of Directors andother stakeholders.Ashok SootaExecutive ChairmanAnnual Report 2020-217

Executive Board’s LetterDear Stakeholder:This letter comes to you in the backgroundof a year and period which has seensignificant changes in your Company,business, and the overall environment.Since the beginning of the pandemic, oneof the key focus areas for the ExecutiveBoard was to drive sustainable operationswith minimal disruption. Our mission of‘Happiest People . Happiest Customers’ensured that we balanced both theseconstituencies. We transitioned to aremote working environment smoothly,successfully and effectively, by ensuringsuperior quality of delivery with nodisruption to customer projects andcommitments. We constantly monitoredpotential impact and proactivelyincreased the bandwidth of our teams,especially where we saw risk because ofCOVID exigencies.During the pandemic, your Companyprovided logistic, financial, and emotionalsupport to Happiest Minds and theirfamilies. The MITHRA Team, yourCompany’s Good Samaritan Programfor emotional wellbeing reached out tomore than 1,000 Happiest Minds duringthe year. Your Company runs the InternalFirst Responder program for peoplewho are directly or indirectly impactedby the pandemic, a COVID-19 Micrositeto publish useful information, and hasdeveloped an in-house VaccinationTracking System. These initiatives havetremendously helped our Happiest Mindsto cope with and adapt to uncertaintiesrelated to the pandemic. The ExecutiveBoard conveys its deep appreciation toour Happiest Minds who did everythingpossible to support each other as a familyin these adverse times. To summarize, inspite of disruptions in the environment,the fact that we as a team rallied togetherhas been the story of the year.The pandemic has not only causedsignificant damage in terms of life and8Annual Report 2020-21livelihood; it has also taken its toll onyour Company. We lost young and brightHappiest Minds and family members andmany went through a cycle of infectionand prolonged recovery. Our condolencesto the near and dear of those who losttheir battle with the virus.As you may recall from our letter ofthe earlier year, we had filed our draftRed Herring prospectus for a possibleInitial Public Offering (IPO) in Juneof 2020. All work on the document,financial statement and many otheractivities associated with the IPO andtaking the Company public were doneby Happiest Minds and our partners,working remotely across many locations.The filing was followed by multipleInvestor presentations, roadshows,with the issue finally opening forsubscription on September 7 and closingon September mInstitutional, High Net-worth andRetail investors and the issue wasoversubscribed 151 times. Equity sharesof Happiest Minds listed on the BSEand NSE on September 17 and openingat a high of 351 per share versus anissue price of 166. Reportedly, yourCompany’s IPO was one the best in thedecade and seen by many as that whichopened the floodgates to many otherswaiting hesitantly to venture into thepublic market, given the pandemicsituation. Your Company’s successfulIPO was a culmination of our visionof establishing a successful business,with Happiest People and HappiestCustomers, with highest levels ofcorporate governance, in line with ourstrong value systems while returninggood returns to our stakeholders.We now look forward to the decadeahead of us with new goals andchallenges which will be articulated in ourVision 2021-2031.The Executive Boardconveys its deepappreciation to ourHappiest Minds whodid everything possibleto support eachother as a family inthese adverse times.

Corporate OverviewComing to our people, business, andfinancial results, our industry sawdisruptions in the first and the secondquarter. Our muted revenue growthin the early quarters is testimony tothis. Taken aback by the pandemic, ourcustomers paused and took a cautiousapproach toward technology spends.However, as they say, you cannotkeep a good thing capped for too long.The demand for digital technologysolutions came back strongly from thethird quarter and as we write this letter,demand - both pent up and new - are atnew highs. The challenges are aroundhiring and retaining our talent.We are seeing increased demand fordelivering solutions around CloudInfrastructure,real-timeBusinessIntelligence using Analytics, IoT, AI /ML, Automation, Remote Collaboration,eCommerce, Security Services, Robotics,Blockchain, Customer / User Experience,Augmented Reality (AR), Virtual Reality(VR) across our chosen verticals.Just as much as the idea of ‘Offshoring’needs no further selling, enterprisesnow do not need convincing on theneed to adopt and adapt to digital andagile technologies to stay relevant in acompetitive environment.We believe enterprises in a post pandemicworld will align themselves along threetechnology themes:1. People Centricity – People will be at thecenter of all businesses which involvescapturing human behavior (akaInternet of Behavior) globally throughtechnologies like IoT & wearabledevices to garner sophisticated dataand make informed decisions. This willentail a shift from multi-experience toa total experience strategy that linkspeople and customers in a connectedecosystem. Connected experience willbe crafted by context, data, design,innovation, technology, and behavior.2. Location Independence – Thepandemic may have shut internationalborders and hampered physicalmovement of people. However, thetechnology ecosystem pivoted itself toa location independence model whichblurred the computing boundariesfor teams, customers, suppliers,andorganizationalecosystems.Location Independence will beachieved through: Distributed Cloud Infrastructure –Single Cloud providers are makingtheir cloud services availableat different physical locationswhilemanagingoperations,governance, updates, and evolutionby themselves. This has enabledcomputer storage, networking, andprocessing closer to the end userresulting in network scalability, lowlatency, and compliance with localdata regulations. Anywhere Operations – Thepandemiccausedacceleratedadoption of many technologyinnovations such as Hybrid Cloud,EDGE Computing, and AutomatedDigital Operations. The AnywhereOperationslaysdowntheinfrastructure to support teams andcustomers everywhere. Cybersecurity Mesh – The shift toa distributed cloud and anywhereoperations is making a strong casefor ring fencing security around dataprivacy and safety. This is enforcedthrough a cybersecurity mesh whichshifts the security requirementsfrom a single security parameter tomultiple nodes of computing.3. Resilient Delivery – Enterpriseshaving seen and experienced anunprecedented event like theCOVID-19 pandemic are nowrecalibrating themselves to existYour Company’s issuesaw an overwhelmingresponse fromInstitutional, HighNet-worth andRetail investorsand the issue wasoversubscribed 151 times.and prosper in a world of continueduncertainty. This shift requiresbusinessestobuildresilientinfrastructure with the use of: Intelligent Composable BusinessModel – This is a composableenterprise application (architecture)building strategy to define theorganization’s packaged businesscapability (PBCs) which necessitatesdeveloping business applicationsthat are modular, composable, easilyadapted and ready for change. AI Engineering – The use ofArtificial Intelligence (AI) is onlyset to increase to find solutionsfor business problems acrossany industry. The advent of novelsoftware development life cycles like– DataOps, ModelOps, and DevOpshas helped deploy AI at scale tomodular and complex businessproblems alike. The new world willsee AI adoption with much morefocus on trust, transparency, ethics,Annual Report 2020-219

risk mitigation,and compliance.fairness,safety, Hyper Automation – This dealwith the application of advancedtechnologies, including ArtificialIntelligence (AI) and MachineLearning (ML), to increasinglyautomate processes and augmenthuman capability. Hyper automationtakes an integrated approach torapidly identify, vet, and automatebusiness and IT processes toenable an organization become anintelligent enterprise.Your Company with 97% of revenuesfrom Digital and 94% through Agileengagementshasbeendeeplyingrained in its client’s digital adoption,transformation,andinitiatives.The pandemic accelerated the pace ofthese engagements, and your Companywas trusted by enterprises across thespectrum with their most critical digitalinitiatives. It is heartening to see thatwe were able to successfully deliverthese projects with superior customersatisfaction reflecting in improvement ofNet Promoter Score (NPS) to 57 from 51in the previous fiscal.Your Company’s financial resultsfor FY21 have been gratifying.Operating revenues for the year in US was 104.6 Mn showing a growth of6.3% over the previous year. Total Incomefor the year was 798 crores showingan above industry growth of 11.7%.Since FY18, your Company has delivereda Compounded Annual Growth Rate(CAGR) in revenues of 18%. Our revenuegrowth was broad-based, and all threeBusiness Units (BU) have shown growth,profitability, driven by demand andgrowth across all our geographies andour chosen verticals.10Annual Report 2020-21Product Engineering Services led thegrowth by registering a 7.9% growth,followed by Digital Business Services andInfrastructure Management & SecurityServices at 6.4% and 2.7% respectively.The three BU structure which coversthe full gamut of an enterprise’s digitaljourney was adopted and has been inplace at the Company from inception.This was to address appropriate demandgenerators and touch points within ourprospects and customers. During theyear, the Product Engineering Servicesand Digital Business Services havestarted aligning themselves by verticals.The Infrastructure Management &Security Services is evolving to be ahorizontal, rendering services across thespectrum. To enhance our positioning,we will strengthen our focus on buildingconsulting capabilities and adding depthto our domains. Your Company’s threeCenters of Excellence (CoE) – Analytics/ Artificial Intelligence (AI), Internetof Things (IoT) and Digital ProcessAutomation (DPA) have been providingstrong support to the three BUs withtheir ideation, co-creation, and consultingengagements. During the year, yourCompany added nine new billion-dollarcorporations as customers and threecustomers in its US 5 Mn – US 10 Mngroup. This is a clear reflection ofour focus and ability of adding newlogos while expanding our existingrelationships. Your Company endedthe year with 3,228 (Addition of 562during the fiscal) Happiest Minds acrossseven geographies. During the year, wesignificantly ramped up our presence inEurope and Middle East.On PAT, we closed the year with 162.4 crores, a growth of 127% overthe previous fiscal. Our Return on CapitalEmployed (RoCE) was 31%; Return onEquity (RoE), 30%; Free Cash flows forTotal Income for the yearwas 798 crores showingan above industrygrowth of 11.7%.the year was strong at 215 croreswhich is 99% of EBIDTA. The Board ofDirectors, based on your Company’s goodp

DBA pimcore Global Services 3 Sugar Creek Center Blvd Ste#100, Sugar land, tX 77478 phone: 1- 832-886-6730 reGiStered & Corporate oFFiCe #53/1-4, Hosur Main Road, Madivala (Next to Madivala Police Station), Bengaluru - 560068, Karnataka, India CIn: l72900KA2011plC057931 phone: 91 80 6196 0300/0400 oFFiCeS iNdia 3rd & 4th Floor, SJR quinox .