TEAMLEASE SERVICES LTD.

DILIP KUMAR B R
MBA SECTION’A’ Reg.no :PROV/MBA-7-19/170
 DIRECTORS REPORT
1.FINANCIAL REPORTS:

Balance Sheet of TeamLease Services ------------------- in Rs. Cr. -------------------

Mar 19 Mar 18 Mar 17 Mar 16

12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 17.10 17.10 17.10 17.10
Total Share Capital 17.10 17.10 17.10 17.10
Reserves and Surplus 511.83 415.56 341.28 293.06

Total Reserves and Surplus 511.83 415.56 341.28 293.06

Total Shareholders Funds 528.93 432.66 358.37 310.16

NON-CURRENT LIABILITIES
Other Long Term Liabilities 64.76 47.58 41.48 4.97
Long Term Provisions 0.00 0.00 0.00 28.26
Total Non-Current Liabilities 64.76 47.58 41.48 33.23
CURRENT LIABILITIES
Short Term Borrowings 0.01 0.00 0.00 19.36
Trade Payables 22.83 13.79 10.11 0.00
Other Current Liabilities 412.92 333.77 248.90 204.83
Short Term Provisions 0.00 0.00 0.00 9.27
Total Current Liabilities 435.76 347.55 259.01 233.47
Total Capital And Liabilities 1,029.44 827.79 658.86 576.85
ASSETS
NON-CURRENT ASSETS
Tangible Assets 6.51 2.29 1.56 1.77
Intangible Assets 0.54 2.14 4.87 7.01
Intangible Assets Under Development 3.05 0.22 0.00 0.00
Fixed Assets 10.10 4.65 6.44 8.77
Non-Current Investments 194.09 169.23 99.07 2.37
Deferred Tax Assets [Net] 64.29 41.00 23.63 4.54
Long Term Loans And Advances 91.20 77.53 52.81 61.07
Other Non-Current Assets 184.74 115.39 78.00 29.43
Total Non-Current Assets 544.41 407.79 259.95 106.19
CURRENT ASSETS
Current Investments 16.01 32.32 10.31 0.00
Inventories 0.00 0.00 0.00 0.23
Trade Receivables 242.14 196.67 165.21 120.46
Cash And Cash Equivalents 110.66 129.26 155.86 258.58
Short Term Loans And Advances 0.63 1.20 2.75 17.63
Other Current Assets 115.59 60.55 64.77 73.76
 Total Current Assets 485.03 420.00 398.91 470.67
Total Assets 1,029.44 827.79 658.86 576.85

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 78.96 68.61 48.15 46.18
CIF VALUE OF IMPORTS
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 1.25 1.23 0.00 0.04
REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign Currency - - - -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - - - -
Other Earnings 1.18 1.80 - -
BONUS DETAILS
Bonus Equity Share Capital 14.82 14.82 14.82 14.82
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value - - - -
Non-Current Investments Unquoted Book Value - - 121.06 24.37
CURRENT INVESTMENTS
Current Investments Quoted Market Value - - - -
Current Investments Unquoted Book Value 16.01 32.32 10.31 -

*Dividend and Reserves:

Directors would like to use the profits earned for purpose of
enhancing business and hence do not propose any dividend for the financial year under
review. No amount has been transferred to reserves and the profit for the year has been
retained in the profit and loss account.

2.KEY DEVELOPMENTS:
Your Directors wish to present the details of Business operations done during
the year under review:

i. The Company s total revenue for the year ended March.31, 2019 on a
consolidated basis increased to RS.4,132.47cr from RS.3440.74cr
during the previous year.
ii. The Company achieved an profit after tax (PAT)(including other
income) of RS.97.02cr during the current year as against the previous
year PAT of RS.72.56cr.
 iii. The profit before Tax for the financial year under review was
RS.97.37cr as against RS.70.63cr for the previous financial year.
iv. Profit AfterTax was positively impacted by the tax benefits availed
under section 80JJAA of the Income Tax Act, 1961 and deferred tax
benefits availed from the recently acquired subsidiaries.

Key developments of the staffing industry in 2019

• 6% growth of global staffing revenue is expected in 2019 compared to the 7%

growth rate of 2018. Japan, China, India, and Continental European
markets are also expected to grow by double-digits this year.
• Total U.S. staffing market is expected to rise by 3% in 2019 to reach $152 billion
which was $147 in 2018.
• Projections of growth forecast are 2.4% for the year 2019 and 1.9% for the year
2020.
• The staffing industry has been growing nearly 2x faster than the economy, on
average, since the end of the Great Recession and the same is expected in
2019.
• The unemployment rate is expected to be 3.7% in 2019, which is the lowest in 49
years.
• In 2018, the top concern for staffing firms was attracting and retaining top talent, in
2019 also it is expected to be the same.
The infographic below discusses in more detail, the above and more such industry
trends.

1. Technology takes the front seat

With the advancement in technology, things are going to change for the better in the
staffing industry. Automation is one of the hot favourite topics amongst staffing
professionals, some of them are even considering it to be a huge challenge. There is
also a positive buzz in the industry about digital staffing platforms like Shiftgig,
Catalant, Upwork etc.
2. Balancing both the candidate and client experience – the
key to success
It is extremely critical for the staffing professionals to ensure that both the candidate
and client experience are equally good. If you make the candidates happy, they will
help in promoting your jobs and if you make your clients happy and provide them of
referral business.
 l

3. Artificial Intelligence will make its mark

Artificial intelligence will automate the recruitment process in the staffing industry. It
will no longer be a buzzword or some next-generation technology that was utilized in
a Hollywood blockbuster movie. Staffing industry will be able to utilize it in the best
ways to get the best recruitment results during the hiring process. This will aid in
eliminating subconscious bias from having any part to play during the interview
process resulting in the selection of a diverse workforce. The use of AI will be more
prominent in creating chatbots that can automate the initial communication and
screening of candidates.

4. Temporary workers will increase at a gradual pace

With a highly candidate driven market and shortage of quality candidates there is
expected to a demand for temporary workers. Staffing professionals will be eager to
hire these temporary workers in order to fill in the vacant positions as soon as
possible. This will make the demand for the contract workers to increase in the
current year, albeit at a gradual pace.
5. Mobile recruitment will continue to rise

In 2018, mobile devices will become the most commonly used for searching the web.
This particular insight makes it imperative for staffing professionals to use mobile
devices to stay in touch with candidates. Mobile optimized career websites and
mobile recruitment software will be key to attract candidates and stay in touch with
them throughout the recruitment process.

6. Diversity in hiring will be the key focus

Diversity remains a hot topic in the recruitment domain since last few years. But, in
the current year you will see staffing professionals ignoring the gender and ethnicity
bias a lot more during the interview process and vouch for a diversified workforce.
7. Social recruiting will grow

Digital marketing has opened a new medium for communication with clients and
candidates. Although, with the help of large job boards like Careerbuilder or Monster
Jobs or Indeed, you can find some qualified candidates, you will also find lot of junk
applications which makes searching for the right talent difficult. But, with the help of
social media networks like LinkedIn and Facebook, you can not only post jobs, but
also search for talented candidates who meet your client’s requirements. Social
recruiting will grow even further in 2018, making it imperative for staffing
professionals to capitalize on this trend to the best of their abilities.

3.CAPACITY ADDITION:

Acquisition of IT Staffing Companies:

During the year under review our company has acquired the following IT staffing
companies through its wholly owned subsidiary, Teamlease Staffing Services Private
Limited:

a. Asap Info Systems Private Limited

b. Nichepro Technologies Private Limited

c. Keystone Business Solutions Private Limited

As on the date of reporting the business integration of the acquired companies with
the holding company has been completed and all the financial data of these three
companies have been considered in the audited consolidated financial statements of
the Company for the period ended March.31, 2019.

Consequent to the acquisitions of these three entities the base platform of staffing
business has extended its arms to IT staffing business and your directors are
confident that the IT staffing business will bring additional value in terms of revenue
and profits.
Investment Structure of TeamLease Services
As On : Mar'19
NON-CURRENT INVESTMENTS
Total Investment
Type Face Value No of Shares (Rs Lakhs)

Investment in : Associate
Security Type : Equity Share

Unquoted
School Guru Eduserve Pvt. Ltd. 10 1,84,068 758.9

Investments in Equity Share 758.9

Security Type : Preference Share

Unquoted
School Guru Eduserve Pvt. Ltd. 10 2,69,681 1,350.00

Investments in Preference Share 1,350.00

Investments in Associate 2,108.90

Investment in : Joint Venture
Security Type : Equity Share

Unquoted
Avantis Regtech Pvt. Ltd. 1 1 0.01

Investments in Equity Share 0.01

Security Type : Preference Share

Unquoted
Avantis Regtech Pvt. Ltd. 1 2,19,298 505.66

Investments in Preference Share 505.66

Investments in Joint Venture 505.67

Investment in : Subsidiary
Security Type : Debenture

Unquoted
Teamlease Digital Pvt.Ltd. - 1,226 12,260.00

Investments in Debenture 12,260.00

Security Type : Equity Share

Unquoted
Cassius Technologies Pvt. Ltd. 10 11,111 1,934.65
IIJT Education Pvt.Ltd. 10 80,00,000 2,433.53
Teamlease Digital Pvt.Ltd. 50 47,35,000 2,363.50
Teamlease Education Foundation 10 10,000 1

Investments in Equity Share 6,732.68

Investments in Subsidiary 18,992.68

Total Investments 21,607.25

CURRENT INVESTMENTS
Total Investment
Type Face Value No of Shares (Rs Lakhs)

Investment in : Mutual Fund

Security Type : Magnum

Unquoted
Reliance Quarterly Interval Fund - Growth Plan - 62,36,514 1,600.77

Investments in Magnum 1,600.77

Investments in Mutual Fund 1,600.77

Total Investments 1,600.77

4.FINANCIAL STRATEGIES:
We are one of India’s leading providers of human resource services in the
organized segment delivering a broad range of human resource services to various
industries with a vision of putting India to work. We deliver a broad range of human
resource services to various industries and diverse functional roles across India to
meet the needs of small and large business clients as well as those of qualified job
seekers or “Associate Employees”. Our services span the entire supply chain of
human resources in India, covering aspects of employment, employability and
education. Our employment services include temporary staffing solutions, permanent
recruitment services and regulatory consultancy for labour law compliance; our
employability offerings include different types of learning and training solutions,
including retail learning solutions, institutional learning solutions and enterprise
learning solutions.

We have provided services under our core Team lease brand for over 15 years that
has resulted in providing temporary staffing to the functional areas across industries.
We provide retail training services under the IIJT brand. Our experience and
expertise allow us to accurately assess candidates’ workplace potential and
technical skills to match them to the needs of our clients. We operate through nine
branch offices in India, in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad,
Kolkata, Mumbai and Pune.

In our Staffing business, we had more than 125,000 associate employees spread
over 1,900 clients as of December 31, 2016, making us one of India's leading people
supply chain companies.

During FY17, we entered into IT Staffing business by acquiring ASAP Infosystems,

Nichepro Technologies and Keystone Business Solutions with approximately 1350
associate employees across major IT services companies pan India.

We have provided employment to more than 1.40 million Associate Employees since
2002.
Competitive Strengths:

We believe the following business strengths allow us to successfully compete in the

industry.

1. Market leading position with scale ;

2. Strong compliance practices that enable us to build longstanding relationships

with clients ;

3. Technological and operational excellence;

4. Strong functional knowledge and expertise across industry sectors; and

5. Strong management and thought leadership in public policy initiatives and backing
by marquee private equity investors.
Our map, repair and prepare strategy:

Map : employment
1.Match the requirements of the customers with right human resource.

2.Access to a better quality workforce through its expanded foothold across

the HR services value chain.

Repair : Employability
1.apprenticeship programs assists in making up for any skills deficits of the
associates employees

Prepare : education
1.Teamlease skills university prepares people to enter the workforce by
equipping them with workforce.