Dear Shareholders,

For over two decades we have delivered value for our customers, helping them unravel the complexities of rampant innovation, global ambitions, disparate legacy technology, dynamically evolving regulation and the often contradictory demands of run-the-business and change-the-business.

What do our customers ask of financial technology?

They seek Speed and Scale backed with Accuracy and Reliability. It takes a mature organisation with a well-established Systems Learning Process to decode the complexities of expertise in domain, technology and frameworks. Through the journey of several years during which Polaris built this competence, we continually built IP and valuable reference sites across the world. Our models and protocols ensure better design development and delivery. Our transformative technologies are already being deployed across geos and will fundamentally change the way the legacy challenge is addressed, while adapting to new media, channels and devices. Addressing complex customer challenges across the spectrum of financial services needs has earned us further recognition as transformation specialists.

Our FT Services business is driven by a strong solution mindset. Our FT Products business is powered by the most holistic enterprise suite of solutions. It gives me pleasure to say that each of these businesses has reached take-off velocity. The path ahead is clearly to apply design principles to our own organisation and enable our businesses to realise their potential.

The base on which we will build the next year, registered a revenue of Rs.2,258 crores, an increase of 10% from Rs.2,049 the previous year. Profit after tax for the year ended March 31, 2013 was Rs.201 crores, compared to Rs.220 crores last year. Cash reserves grew to Rs.490 crores from Rs.390 crores in the previous year. EPS stood at Rs.20.19. A final dividend of 100% (Rs.5 per equity share) was proposed. Our solid base allows us the freedom required to design a future that unleashes our enterprise potential. You will read about some of our plans in this regard in this report and witness the unfolding and implementation of our design for deep differentiation through the coming year.

This letter is an opportunity for me to share a few of the highlights of the recently concluded financial year. Many of these milestones will have a significant bearing in the manner in which we re-orient the organisation to drive greater value – for our customers and all other stakeholders.

The FT Services business revenue grew to Rs.1,730 crores and accounted for 22 new wins. This reflected an increase of 13% over the last year. Revenues were distributed across key business geographies with the Americas contributing 53%, Europe 23%, India 6% and 18% from the rest of the world. Gross margins for the Services business stand at 33%. Polaris continued to compete and win against the largest global labels on large service deals with mission-critical requirements.

Master Services Agreement with one of the foremost commercial banks in Western New York.

The world’s leading and most diverse financial and commodities derivative exchange based in the US and providing the widest range of benchmark futures and options covering all major asset classes, chose Polaris for its Global Technology Services.

One of UK’s largest banking groups chose Polaris as a preferred partner for its transformational initiatives, validating our vertical practices prowess.

A leading provider of fraud prevention and intelligent transaction handling solutions chose Polaris for its Authentication & Fractals Products Testing Services.

One of the oldest institutions in Hong Kong chose Polaris Enterprise Content Management practice to redefine customer experience.

An Asset Management Company based in the US managing significant assets across global markets chose Polaris Testing Services for Capital Markets and Treasury.

One of the leaders in e-commerce, logistics and support services including e-fulfillment, e-CRM and e-analysis in the UK chose Polaris Application Development and Road Map Consulting.

A major manufacturer of personal and life style products in Japan chose Polaris to manage their entire IT infrastructure backed up with a dedicated bi-lingual helpdesk.

FT Products revenues closed at Rs.528 crores with a rapidly expanding global footprint and 38 new wins. Across Core, Investment and Corporate Banking, the Intellect Enterprise Solution Suite received critical acclaim from analysts and customers. The FT Products business continued to consolidate its position in India, Middle East and Africa, participating in transformation initiatives, while working with the western global banks on progressive modernisation objectives that aligned with regulatory requirements and regional growth ambitions, within rigorous analytics and oversight parameters.

A leading Canada-based global financial institution chose Intellect CBX to enhance its Wholesale Banking division.

A leading domestic bank in UAE chose Intellect Retail CBX to provide a memorable and differentiated customer experience.

A leading private sector bank in India with $7 billion assets and over 700 branches chose Intellect Treasury spanning domestic and forex treasury functions across front, middle and back office with a single database and balance sheet.

A leading and diversified financial institution in Ghana chose Intellect Loan Origination to enable faster and better informed credit decision making.

A leading bank in Japan selected Intellect Loan Services Hub for its China deployment.

One of the oldest and most prominent banks in South Africa and part of an integrated finance services group offering full spectrum services in South Africa and niche products in select international markets, chose Intellect Cash & Liquidity Management System in a multi-million dollars deal.


This year stands proud testimony to the recognised Polaris prowess in Core Banking, Global Transaction Banking and Treasury & Capital Markets. The rapid strides we have made in taking on and successfully dealing with complex customer challenges were possible due to our deep Services and Products domain knowledge, design emphasis backed up with industry leading transformative technologies and delivery excellence.


The world’s first implementation of an Integrated Transaction Banking platform across front and back offices went live at Mashreq Bank, one of UAE’s leading financial ® institutions. The advanced Intellect Global Transaction Banking (GTB) Platform with integrated cash management, complete with a full service corporate transaction portal, CFO dash boards and back-end product processors, will enable Mashreq offer its customers transaction services on a single platform across multiple countries. Through this unified portal, the bank’s corporate customers can access full spectrum services related to accounts, payments, liquidity, collections and trade.

When Karur Vysya Bank decided to launch green field transaction banking operations, they chose the Intellect Global Transaction Banking (GTB) Platform. The proven and India-ready solution spans cash management, supply chain finance, securities, liquidity management, trade finance, treasury, all enabled through a heightened user experience driven banking portal.


National Bank of Ethiopia, the central bank of the country, adopted Intellect Quantum CBS for its core banking transformation. The revolutionary solution engineered specifically for central banks and already in operation at the Reserve Bank of India and the Central Bank of Seychelles, integrates money, securities, payments & settlement systems and the enterprise GL for real-time decisioning, accurate management and regulatory reporting.

Citizens Development Business Finance Plc (CDB), a major non-banking financial institution in Sri Lanka, went live with the Intellect Core Banking Solution. CDB can now grow into a complete financial services provider while expanding geo presence and providing 24/7 access via ATM / POS and online gateways. As part of an ambitious regional Partner Alliance Programme, Polaris worked with Sri Lanka-based Millennium IT, a leading trading technology firm owned by the London Stock Exchange, specialised in finance, telecom and capital markets.

The Andhra Pradesh State Co-operative Bank Ltd. (APCOB) went live with Intellect CBS in all 22 affiliated District Central Cooperative Banks (DCCBs) across the state. From the centralised data centre in Hyderabad, all 560 branch offices and 22 head offices of the bank are provided access to the Intellect multi-entity CBS. This will enable comprehensive integration of the DCCBs’ operations with 2,748 Primary Agricultural Credit Co-op Societies (PACs) in Andhra Pradesh, in a first of its kind state-wide implementation in India. The Polaris solution will improve channel banking reach and dramatically enhance operational efficiency in rural credit dispensation, generating more for APCOB, with the advantages of shared infrastructure costs and sharply reduced total cost of ownership.

Housing Finance Bank, Uganda, a full service retail bank and the dominant mortgage bank in the country embraces the Intellect platform in its transformation initiative, seeking to automate business processes to enhance competitiveness. The ® Polaris solution spans Intellect CBS, Loan Origination, Capital Markets, Trade Finance, Treasury, Anti-Money Laundering and Retail Internet Banking.

Leveraging proprietary Accelerated Implementation Methodology (AIM) Polaris ® implemented Intellect CBS at MAXBANK, Philippines in just four months. The Polaris solution at this micro-finance oriented thrift bank will fulfil the bank’s requirement of a central system that manages a diverse portfolio as well as general ledger, CASA, loans and advances, and deposits, along with a full fledged Financial Reporting Package. The rapid implementation resulted in greater efficiency, streamlining of operations and better service to customers.


Partnership with US-based Numerix for rich risk analytics that enable superior credit valuation adjustment and advanced risk capabilities. With over 40 customers across 80 countries, the Polaris Risk & Treasury solution will now leverage the comprehensive Numerix models library and it’s market standard cross-asset analytics platform to provide Basel III compliance in consistent pricing, stress testing, and accurate reporting for robust counter-party risk management. Polaris will now integrate Numerix models into banks’ end-to-end pricing and risk management solutions.


The Pyxis acquisition builds a competitive edge in the complex world of Derivatives and Capital Markets. Pyxis is a specialised player in technologies for Global Markets front office and Market Risk related to cash and derivative instruments. The acquisition will strengthen Polaris consulting and solutioning capabilities in this area.


The launch of the Research Innovation & Development Centre (RIDC) in Belfast is a dedicated near-shore facility for strategic customers in Europe, focussed on mission-critical engagements and transformational initiatives. In active collaboration with UK Trade & Investment, the Polaris RIDC in Northern Ireland will leverage IP expertise from Polaris FT Research to drive outcomes in seven dimensions: Customer Experience, Operations, Performance, Analytics, Risk & Compliance, Integration and Security.

The opening of the Wellington Sales Office in New Zealand will provide immediate access to Polaris knowledge IP and technology services. Customers will gain from consultants with deep FT domain expertise and competitive service delivery models.


Transformative technologies that will set financial services industry standards include

Canvas Technology – spanning Banking Enterprise App Store, FT App Exchange and Workspace Designer.

Hub Technology – for process optimisation and centralised risk management.

Octopus Workplace Technology – for collaborative design and D-3 OTIF delivery.

MPX Technology – for Smart Requirement Management with Knowledge Shelving & Wiring

Building on these technologies, during the year, specific solutions were launched and deployed around the world.

The launch of Intellect CBX 4.0 App Store that runs on CBX technology empowers business and IT groups of financial institutions to accelerate their modernisation and convergence initiatives in a cost-efficient manner within a framework that allows for the creation and enablement of self and thirdparty created applications. The solution runs on CBX technology, a secure multi-channel solution for PC and non-PC devices with ‘configure once, run anywhere’ capability. The workspace and widget theme of CBX technology provides a rich user interface and effective tools for various role players in the customer organisation and for its customers.

The world’s most efficient Customer On Boarding Hub was launched at the FT Innovation Series in New York. The Intellect Customer On Boarding Hub built on Polaris transformative Hub technology is a next generation compliance framework built on a loosely coupled, component-based architecture. Banks will gain from needsdriven flexibility instead of being tied down to expensive and redundant monolithic platforms. The Intellect Customer On Boarding Hub allows unparalleled emphasis on KYC compliance, risk management and regulatory norms. It provides flexible ruledriven work flows, configurable user interfaces, dynamic data models, built-in integration engine, efficient image and document management capabilities, secure user and role-based entitlements with standardised on-boarding processes across o lines of business, enhanced 360 customer views and extensive business activity monitoring and reporting capabilities.

Cutting through the complexity of Insurance operations and catering to several Insurance lines of business including Life and Disability Health, Intellect Claims was launched. This is a cloud-enabled comprehensive Claims Processing System with a loosely coupled component architecture that provides the unique flexibility required to create customised solutions. The revolutionary Product Configurator with an intuitive UI enables real-time dynamics from product and rules definition through claims submission and processing. Polaris proprietary Hub technology allows seamless integration with key systems including Policy Administration, Document Management and Finance Systems.

Intellect Algorithmic Liquidity, launched at Sibos 2012 in Osaka, Japan, harnesses advanced mathematical models for transactions decisions in liquidity management, slashing transaction costs and allowing treasury managers take control of their global liquidity. The solution increases speed and flexibility, managing volatility at zero or fully hedged risk. This financial technology innovation provides the best returns for idle balances and increased transparency for regulatory compliance as peripheral banks evolve into Treasury Banks.

Intellect FABX on the iPad launched at Harvard Club, New York City. Intellect FABX (Financial Advisor Business Exchange) is the most comprehensive advisory solution o providing a 360 customer view while extracting data from multiple applications and delivering consistent application experience across devices. This productivity enhancer features superior interaction layers and analytics designed for smarter decisioning.


Some of the many endorsements received during the year include:

The only ‘global pursuer’ for all global and new deals in the Forrester report titled Global Banking Platform Deals 2012.

The Aite Report on Intellect CBS spoke of scalability proven by large deal sizes.

The Ovum Decision Matrix Report cited Intellect Origination as a solid solution with deployments in several geographies recommended for lenders looking for a common retail loan origination platform.

iRetail Solution won the Electronic Point of Sale Initiative of the Year award from Franchise India & Retailer Magazine. This fully integrated multi-channel retail solution is now in use by leading retailers across FMCG, lifestyle, fashion, specialty and food & beverage verticals.

For the third consecutive year, Gartner positioned Polaris in the Leaders Quadrant in its report, Magic Quadrant for International Retail Core Banking 2012.

Everest Group recognises Polaris as a ‘Star Performer’ and ‘Major Contender’ in the PEAK Matrix for Large Banking Applications Outsourcing Relationships in 2012.

Celent rates Intellect Payment Services Hub as the best option for financial services focussed organisations.

Intellect Customer On Boarding Hub is rated ‘Major Player’ in the IDC report, ‘North American Treasury On Boarding MarketScape’.

Intellect Wealth is rated best in Global Private Banking Platforms, Front Office and among the best in Mid and Back Office capabilities by Aite in their report ‘Evaluating Global Private Banking Platforms: Change May Create Opportunity’.

Polaris was awarded the Best Payments Infrastructure Award for Mid Tier Banks at the Asian Banker Summit 2012 for the complete transformation of the Payments System at the National Bank of Abu Dhabi.

Polaris won the HP AllianceOne Partner of the Year 2012 Award for the Intellect Core Banking Solution for central banks deployed at the Reserve Bank of India. This is the first integrated money and securities solution in the world that comes with depositories and securities settlement with DVP-3 capabilities, supports public debt management and connects government payment gateways.

Polaris FT – RBI ten-year deal is among the top 9 deals announced and the only one by an Indian player cited in the Everest Group report, IT Application Outsourcing (AO) in Banking – Trends & Future Outlook.

Intellect Payments was rated Best in Class for payables functionality in the CEB Tower Group Report. The Polaris solution has all the attributes required by a bank to cater to its corporate clients.


Collaborative design thinking is required to attack the rampant complexity in the financial services business and devise viable solutions to the most forbidding challenges. 8012 FT Design Center is the world’s first financial technology design facility, specially created to uniquely connect business, technology and operations, and engineer solutions that drive unprecedented value. Customer conversations at the first such center on the IT Highway, Chennai, India have begun. Workshop sessions are being scheduled. This is where transformation agendas will be discussed from ideation through custom modelling and deployment.

The Design Centre has already earned critical acclaim from customers, analysts and industry media. With four design patents for 8012 FT Design Center and 11 patents filed for transformative technologies that can be experienced at the facility, this is where Financial Technology Design Immersion will pay rich dividends.


Polaris has always been a very people oriented organisation, where the spirit of entrepreneurship runs deep. The unwavering belief that there is ‘a simpler way’ drives our commitment to complexity reduction and the leveraging of financial technology to deliver unprecedented value in whatever manner it may be measured.

We are Financial Technology Specialists. The successful roll out of the Reserve Bank of India’s balance sheet (INR 22 trillion) on the first working day of the next year, the implementation of treasury single account, combining all accounts across banks and regions in a single window monitoring 4 million transactions per day is one of the deeply satisfying highlights of the year. As was the consistently successful operations of the high-volume forex trading system for a global financial conglomerate with a capacity of $10 trillion in transactions in a day.

Delivery excellence is the beginning, the end and everything in between in our business. Polaris has continually improved its On Time In Full index which currently stands at over 90%. Customer Satisfaction (CSat) Ratings report 4.2 on 5.

As we gear up to meet the enormous needs in the financial services sector for our proven specialist capabilities, our focus will be on growing our talent base. In the area of Human Capital, apart from gratifying awards won for ‘Organisation with Innovative HR Practices’ and ‘Outstanding Contribution to the cause of Education’, we have launched several initiatives including Talent Compass to personalise learning, FT Credits to incubate and recognise culture aligned behaviour and a Talent Round Table to spot and nurture growth potential. The launch of Octopus, a unique collaborative platform, has integrated over 13,000 associates providing a forum to coach and be mentored. To work in a stimulating open kitchen, transparent work ethic format on live projects. This is an environment where collaboration and skills development uniquely and very visibly fuel individual growth.

IN THE YEAR AHEAD, YOU CAN LOOK FORWARD TO DESIGN PLAYING A SIGNIFICANT ROLE IN OUR ENTERPRISE JOURNEY. As we unlock value for customers in their transformative initiatives, we will unleash the potential of Polaris across the dimensions of lines of business, vertical specialisation, domain expertise and IP, diagnostics and delivery models. My leadership team and I are grateful for your support and look forward to reporting on progress as it unfolds.

Arun Jain
Chairman & CEO