TeamLease Services Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. In terms of Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the aforesaid statement of unaudited consolidated financial results for the quarter and nine months ended December 31, 2018 of the Company have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on January 29, 2019, The aforesaid results for the quarter and nine months ended December 31, 2018 have been subjected to limited review by the statutory auditors of the Company.
2. The financial results have been prepared in accordance with the recognition and measurement principles laid down in the applicable Indian Accounting Standards (IND-AS) prescribed under section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder.
3. IND-AS 115 Revenue from Contracts with Customers, mandatory for reporting periods beginning on or after April 1, 2018 replaces existing revenue recognition requirements. The Company has evaluated impact of Ind AS 115 for various revenue streams. In respect of revenues recognized till March 31, 2018, where performance obligation criteria was not met, the same has been reversed and impact thereof (net of tax effect) of Rs. 100.59 lakhs is adjusted in the retained earnings as at April 01, 2018 under modified retrospective approach. For the nine months ended December 31, 2018, revenue of Rs. 90.84 lakhs has not been recognized since the required performance obligation criteria is not met.
4. During the quarter ended December 31, 2018, the Company entered into an investment agreement with Avantis Regtech Private Limited ("ARPL") and invested in 1 equity share of Re. 1 each and subscribed to 219,298 0.1% Compulsorily Convertible Preference Shares (CCPS) of Re. 1 each, both at a premium of Rs. 227 per share for total consideration of Rs. 500 lakhs. ARPL is engaged in rendering SAAS based governance, risk and compliance automation. As per IND-AS 28, "Investment in Associates and Joint Ventures", investment in ARPL has been accounted as a joint venture under equity method w.e.f. November 1, 2018.
5. During the quarter ended September 30, 2018, the Company acquired additional equity stake of 21% in Cassius Technologies Private Limited ("CTPL") as per the definitive agreements at an agreed consideration of Rs. 378.00 lakhs, thereby increasing the total stake to 51% in CTPL, Further, the Company has option to acquire balance 49% equity stake at an agreed price. Accordingly, CTPL has been accounted for as a 100% subsidiary with effect from July 31, 2018.
6. During the quarter ended December 31, 2018, no options have been granted or forfeited under the scheme TeamLease Employees Stock Option Plan 2015. Further, 13,033 options got exercised in the current quarter.
7. The figures of the previous periods have been regrouped/ reclassified, wherever necessary
8. The above standalone financial results of the Company are available on the Company's website (www.teamleasegroup.com) and also on the website of BSE (www.bseindia.com) and NSE (www.nseindia.com), where the shares of the Company are listed.