Registered number: 03264570
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The UK economy is expected to expand modestly: GDP grew about 1.4% in 2025, with the Office for Budget Responsibility forecasting 1.1% growth in 2026 and ~1.6% in 2027. Disinflation is projected to continue as the labour market tightness eases and energy/food inflation cools, helping inflation return toward the 2% target around late 2026.
Globally, the IMF’s January 2026 update projects growth at 3.3% in 2026 and 3.2% in 2027 (below the ~3.7% 20 year average), reflecting a balance of trade-policy uncertainty and geopolitical risks against tailwinds from technology/AI investment and supportive financial conditions. Global headline inflation is expected to decline from ~4.1% in 2025 to 3.8% in 2026 and 3.4% in 2027, with central bank rates generally expected to ease or remain steady depending on country-specific inflation dynamics.
World trade volume growth is projected to slow from 4.1% in 2025 to 2.6% in 2026 before improving to 3.1% in 2027 as one-off effects from policy shifts and front loading fade and conditions normalize. Even with some easing in trade tensions, uncertainty around U.S. tariff settings remains a key swing factor for global demand and investment.
UK policy commentary (Feb 2026 MPC) notes activity remained subdued through 2025 amid weak household consumption and cautious business investment, with a gradual recovery expected from 2026. A key risk is inflation persistence: services inflation is projected to stay elevated (~3–3.5% through much of 2026) while wage growth decelerates only gradually toward ~3%, which could keep policy restrictive for longer and weigh on growth and employment.
Trade uncertainty also remains elevated (especially around U.S. trade policy). UK export growth slowed after ~2.1% growth in 2025 and is expected to moderate further in 2026 as softer global demand offsets easier financial conditions; import growth is also expected to cool as domestic demand stays subdued. Muted import prices (helped by lower energy prices and weaker global goods inflation) should continue to ease imported inflation pressures.
In the Euro area, growth was ~1.4% in 2025. ECB staff projections expect real GDP growth of ~0.9% in 2026, improving to ~1.3% in 2027 and ~1.4% in 2028. Near-term momentum is supported by consumption and government investment, but weaker manufacturing, higher energy prices, and conflict-related uncertainty are weighing on confidence and the 2026 outlook.
Implications for Automotive and ER&D: Modest growth and easing rates should support a gradual recovery in demand, but tariff uncertainty and energy volatility keep supply chains, pricing and investment exposed. In this environment, OEMs and suppliers are expected to protect engineering spend that directly improves cost, compliance and time-to-market—accelerating platform rationalisation, simulation-led validation and automation—while trimming discretionary programmes.
Global Automotive & Mobility ER&D continues to expand, but with sharper prioritisation as OEMs balance near term affordability and profitability pressures with long term electrification and digital competitiveness. In Europe and the UK, a slower-than-expected ramp-up of battery-electric demand is reinforcing a multi powertrain strategy (ICE optimisation, hybrids/PHEVs, BEVs and select range extended/alternate fuel solutions), alongside ongoing investment in batteries, charging experience and manufacturing localisation. OEM product roadmaps are increasingly defined by Software Defined Vehicle (SDV) programmes—centralised E/E architectures, vehicle operating systems, OTA-enabled feature upgrades and data-driven services—often delivered through ecosystem partnerships to manage complexity, talent constraints and cost. Engineering investment is also concentrating on scalable ADAS and validation, AI-enabled development (including simulation/digital twins) and in cabin digital experiences, with cybersecurity, functional safety and regulatory compliance embedded by design.
Globally, the IMF’s January 2026 update projects growth at 3.3% in 2026 and 3.2% in 2027 (below the ~3.7% 20 year average), reflecting a balance of trade-policy uncertainty and geopolitical risks against tailwinds from technology/AI investment and supportive financial conditions. Global headline inflation is expected to decline from ~4.1% in 2025 to 3.8% in 2026 and 3.4% in 2027, with central bank rates generally expected to ease or remain steady depending on country-specific inflation dynamics.
World trade volume growth is projected to slow from 4.1% in 2025 to 2.6% in 2026 before improving to 3.1% in 2027 as one-off effects from policy shifts and front loading fade and conditions normalize. Even with some easing in trade tensions, uncertainty around U.S. tariff settings remains a key swing factor for global demand and investment.
UK policy commentary (Feb 2026 MPC) notes activity remained subdued through 2025 amid weak household consumption and cautious business investment, with a gradual recovery expected from 2026. A key risk is inflation persistence: services inflation is projected to stay elevated (~3–3.5% through much of 2026) while wage growth decelerates only gradually toward ~3%, which could keep policy restrictive for longer and weigh on growth and employment.
Trade uncertainty also remains elevated (especially around U.S. trade policy). UK export growth slowed after ~2.1% growth in 2025 and is expected to moderate further in 2026 as softer global demand offsets easier financial conditions; import growth is also expected to cool as domestic demand stays subdued. Muted import prices (helped by lower energy prices and weaker global goods inflation) should continue to ease imported inflation pressures.
In the Euro area, growth was ~1.4% in 2025. ECB staff projections expect real GDP growth of ~0.9% in 2026, improving to ~1.3% in 2027 and ~1.4% in 2028. Near-term momentum is supported by consumption and government investment, but weaker manufacturing, higher energy prices, and conflict-related uncertainty are weighing on confidence and the 2026 outlook.
Implications for Automotive and ER&D: Modest growth and easing rates should support a gradual recovery in demand, but tariff uncertainty and energy volatility keep supply chains, pricing and investment exposed. In this environment, OEMs and suppliers are expected to protect engineering spend that directly improves cost, compliance and time-to-market—accelerating platform rationalisation, simulation-led validation and automation—while trimming discretionary programmes.
Global Automotive & Mobility ER&D continues to expand, but with sharper prioritisation as OEMs balance near term affordability and profitability pressures with long term electrification and digital competitiveness. In Europe and the UK, a slower-than-expected ramp-up of battery-electric demand is reinforcing a multi powertrain strategy (ICE optimisation, hybrids/PHEVs, BEVs and select range extended/alternate fuel solutions), alongside ongoing investment in batteries, charging experience and manufacturing localisation. OEM product roadmaps are increasingly defined by Software Defined Vehicle (SDV) programmes—centralised E/E architectures, vehicle operating systems, OTA-enabled feature upgrades and data-driven services—often delivered through ecosystem partnerships to manage complexity, talent constraints and cost. Engineering investment is also concentrating on scalable ADAS and validation, AI-enabled development (including simulation/digital twins) and in cabin digital experiences, with cybersecurity, functional safety and regulatory compliance embedded by design.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
The Directors are pleased to report that the financial year as of March 2026 ended on a positive note.
The automotive industry has entered a phase of gradual recovery and is expected to witness sustained momentum over the medium term of the next three to five years. This period is anticipated to be one of the most significant investment cycles for automakers, driven by the continued adoption of megatrends such as Connectivity, Autonomous technologies, Shared mobility, and Electrification (CASE). Strategic priorities are expected to increasingly shift towards software led transformation, digital platforms, and enhanced customer experience. While the territory recorded positive momentum across key focus practices during the year, the business environment continues to be characterised by longer decision making and sales cycles, which are expected to persist in the medium term.
During the quarter ended 30 September 2025, KPIT Technologies (UK) Limited, completed a 100% acquisition of the Caresoft Group entity - Caresoft Engineering Services Limited. Subsequently, on 10 October 2025, the Company, under the same contractual arrangement, also completed 100% acquisition of OXI SRL Italy. In anticipation of the completion of the above transaction, KPIT Technologies Limited, India had infused Euro 28 million towards equity share capital into KPIT Technologies (UK) Limited in June 2025.
Caresoft Global is a leader in automotive benchmarking and cost reduction oriented engineering solutions. The acquisition will augment KPIT's growth in Trucks and Off-highway segment, boost value creation for KPIT clients with full vehicle cost reduction solutions and enhance KPIT's manufacturing engineering solutions portfolio and accelerate KPIT's foray into China Market.
On 7 October 2025, KPIT Technologies (UK) Limited, acquired a 62.9% stake in N-Dream AG for a total consideration of Euro 16.35 million. Pursuant to this acquisition, N-Dream AG has become subsidiary of the Company. On 17 November 2025, Company has acquired further stake of 1.1% at a consideration of Euro 2.82 million. On 23 March 2026, Company has acquired 26% stake from KPIT Technologies Limited (Parent Company registered in India), taking the total of KPIT UK shareholdings to 90% in N-Dream AG.
N-Dream is a Cloud based Game Aggregation Platform company, based in Switzerland. This strategic investment in N-Dream is part of KPIT’s roadmap to enable Automotive OEMs enhance the driver & passenger experience in the Cockpit of the Future. KPIT will offer complementary software integration & validation services to N-Dream’s Automotive clients. Both parties will collaborate towards offering value-added data products for Automotive OEMs, thereby enabling them to create additional monetizable experiences & feature.
During October 2025, KPIT Technologies (UK) Limited transferred a 5.32% stake in KPIT Technologies GMBH, Germany at a consideration of Euro 19.99 million to KPIT Technologies Limited (Parent Company registered in India), taking the total of KPIT Technologies (UK) Limited shareholdings to 69.85% in KPIT Technologies GMBH, Germany.
On 19 December 2025, KPIT Technologies (UK) Limited complete additional capital infusion of SEK 5 million in KPIT Technologies AB Sweden (wholly owned subsidiary of the Company).
The automotive industry has entered a phase of gradual recovery and is expected to witness sustained momentum over the medium term of the next three to five years. This period is anticipated to be one of the most significant investment cycles for automakers, driven by the continued adoption of megatrends such as Connectivity, Autonomous technologies, Shared mobility, and Electrification (CASE). Strategic priorities are expected to increasingly shift towards software led transformation, digital platforms, and enhanced customer experience. While the territory recorded positive momentum across key focus practices during the year, the business environment continues to be characterised by longer decision making and sales cycles, which are expected to persist in the medium term.
During the quarter ended 30 September 2025, KPIT Technologies (UK) Limited, completed a 100% acquisition of the Caresoft Group entity - Caresoft Engineering Services Limited. Subsequently, on 10 October 2025, the Company, under the same contractual arrangement, also completed 100% acquisition of OXI SRL Italy. In anticipation of the completion of the above transaction, KPIT Technologies Limited, India had infused Euro 28 million towards equity share capital into KPIT Technologies (UK) Limited in June 2025.
Caresoft Global is a leader in automotive benchmarking and cost reduction oriented engineering solutions. The acquisition will augment KPIT's growth in Trucks and Off-highway segment, boost value creation for KPIT clients with full vehicle cost reduction solutions and enhance KPIT's manufacturing engineering solutions portfolio and accelerate KPIT's foray into China Market.
On 7 October 2025, KPIT Technologies (UK) Limited, acquired a 62.9% stake in N-Dream AG for a total consideration of Euro 16.35 million. Pursuant to this acquisition, N-Dream AG has become subsidiary of the Company. On 17 November 2025, Company has acquired further stake of 1.1% at a consideration of Euro 2.82 million. On 23 March 2026, Company has acquired 26% stake from KPIT Technologies Limited (Parent Company registered in India), taking the total of KPIT UK shareholdings to 90% in N-Dream AG.
N-Dream is a Cloud based Game Aggregation Platform company, based in Switzerland. This strategic investment in N-Dream is part of KPIT’s roadmap to enable Automotive OEMs enhance the driver & passenger experience in the Cockpit of the Future. KPIT will offer complementary software integration & validation services to N-Dream’s Automotive clients. Both parties will collaborate towards offering value-added data products for Automotive OEMs, thereby enabling them to create additional monetizable experiences & feature.
During October 2025, KPIT Technologies (UK) Limited transferred a 5.32% stake in KPIT Technologies GMBH, Germany at a consideration of Euro 19.99 million to KPIT Technologies Limited (Parent Company registered in India), taking the total of KPIT Technologies (UK) Limited shareholdings to 69.85% in KPIT Technologies GMBH, Germany.
On 19 December 2025, KPIT Technologies (UK) Limited complete additional capital infusion of SEK 5 million in KPIT Technologies AB Sweden (wholly owned subsidiary of the Company).
Page 2
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
During this year, our revenue stood at GBP 38.35 million, a Y-o-Y growth of 5.76% against GBP 36.26 million in FY’25.
EBITDA for FY'26 stood at 8.61% as against 7.11% for FY’25. The EBITDA for FY’26 is GBP 3.25 million as against GBP 2.58 million for FY25.
The Net Profit for FY’26 stood at GBP 19.4 million which includes GBP 16.4 million of profit on sale of investment in subsidiary. The Net Profit for FY’25 stood at GBP 1.2 million.
With respect to liquidity, the Cash Balance as of March 31, 2026, stood at GBP 8.78 million as against GBP 8.74 million as of March 31, 2025. The DSO were at 40 days as of March 31, 2026, as against 40 days as of March 31, 2025. We have consistently focused on faster cash conversion and as a result have been able to maintain the DSO.
The total headcount for the Company stood at 100 at the end of FY’26. The same was 95 as at the end of FY’25. The Development Headcount was 94 in FY’26 as against 89 in FY’25.
In the medium term, we want to focus on scaling up our business in strategic accounts in UK. We had revenue growth along with profitability improvement in FY26. FY27 will be year of consolidation where we will spend efforts in Focused Engineering Practices to build strategic accounts for long term & maintain our profitability.
EBITDA for FY'26 stood at 8.61% as against 7.11% for FY’25. The EBITDA for FY’26 is GBP 3.25 million as against GBP 2.58 million for FY25.
The Net Profit for FY’26 stood at GBP 19.4 million which includes GBP 16.4 million of profit on sale of investment in subsidiary. The Net Profit for FY’25 stood at GBP 1.2 million.
With respect to liquidity, the Cash Balance as of March 31, 2026, stood at GBP 8.78 million as against GBP 8.74 million as of March 31, 2025. The DSO were at 40 days as of March 31, 2026, as against 40 days as of March 31, 2025. We have consistently focused on faster cash conversion and as a result have been able to maintain the DSO.
The total headcount for the Company stood at 100 at the end of FY’26. The same was 95 as at the end of FY’25. The Development Headcount was 94 in FY’26 as against 89 in FY’25.
In the medium term, we want to focus on scaling up our business in strategic accounts in UK. We had revenue growth along with profitability improvement in FY26. FY27 will be year of consolidation where we will spend efforts in Focused Engineering Practices to build strategic accounts for long term & maintain our profitability.
The directors consider that, as set out under Section 172 (1) of the Companies Act 2006, they have acted in good faith in a way that they consider would promote the success of the Company. In doing so, the directors have given due regard to all the following matters being:
a) The likely consequences of any decision in the long term.
b) The interests of the company's employees
c) The need to foster the company's business relationships with suppliers, customers, and others.
d) The impact of the company's operations on the community and the environment.
e) The desirability of the company maintaining a reputation for high standards of business conduct.
f) The need to act fairly between members of the company.
a) The likely consequences of any decision in the long term.
b) The interests of the company's employees
c) The need to foster the company's business relationships with suppliers, customers, and others.
d) The impact of the company's operations on the community and the environment.
e) The desirability of the company maintaining a reputation for high standards of business conduct.
f) The need to act fairly between members of the company.
This report was approved by the board on 28 April 2026 and signed on its behalf.
Page 3
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The profit for the year, after taxation, amounted to £19,393,056 (2025 - £1,202,284).
No dividends were declared in the year (2025 - £NIL) and the directors do not recommend payment of a dividend.
The directors who served during the year were:
Page 4
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
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.
The Company has chosen in accordance with Section 414C(II) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 to set out within the Company’s Strategic Report, the information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the Directors' Report, such as the business review, future developments and the Company's approach to compliance with Section 172(1) of the Companies Act 2006.
There have been no significant events affecting the Company since the year end.
This report was approved by the board on 28 April 2026 and signed on its behalf.
Page 5
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KPIT TECHNOLOGIES (UK) LIMITED
We have audited the financial statements of KPIT Technologies (UK) Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, 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 auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Page 6
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KPIT TECHNOLOGIES (UK) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
Page 7
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KPIT TECHNOLOGIES (UK) LIMITED (CONTINUED)
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 an Auditor's Report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
∙The Companies Act 2006;
∙Financial Reporting Standard 102;
∙UK employment legislation; and
∙UK tax legislation.
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur.
Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud would be the use of management override of controls to manipulate results, or to cause the company to enter into transactions not in its best interests.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.
Page 8
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KPIT TECHNOLOGIES (UK) LIMITED (CONTINUED)
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 an Auditor's Report 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
4th Floor
95 Gresham Street
London
EC2V 7AB
Page 9
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
Page 10
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 April 2026 .
The notes on pages 13 to 29 form part of these financial statements.
Page 11
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2026
Page 12
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
KPIT Technologies (UK) Limited is a private company, limited by shares, registered in England and Wales. The Company's registered number and registered office address can be found on the Company Information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of KPIT Technologies Limited as at 31 March 2026 and these financial statements may be obtained from KPIT Campus, Number-17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Hinjawadi, Pune, 411057.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.
Page 13
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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 and 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.
Revenue for time and 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.
Page 14
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over 10 years.
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over 10 years.
Page 15
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Page 16
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
The areas of judgement and estimates applied by the directors are not considered sufficiently significant to require disclosure in these financial statements.
Page 17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
The whole of the turnover is attributable to the principal activity which is software development and engineering services.
Analysis of turnover by country of destination:
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
There were no factors that may affect future tax charges.
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
Page 23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
On 25 June 2025, 1,265,150 Ordinary shares of £1 each were allotted at a premium of £16.70 per share.
Share premium account
Profit and loss account
Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £87,878 (2025 - £94,002).
KPIT Technologies Limited is the parent undertaking of the only group for which consolidated financial statements are prepared. These financial statements may be obtained by the public form KPIT Campus, Number-17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, Hinjawadi, Pune, 411057.
Page 29