eClerx 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. The statement of unaudited financial results have been reviewed by Audit Committee and approved by the Board of Directors at their respective meetings held on January 31, 2019. There are no qualifications in the limited review report issued by the auditors.

2. These financial results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards (Ind AS) 34 Interim Financial Reporting prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder.

3. The Company operates under a single reportable segment which is data management, analytics solutions and process outsourcing services. Further the risks and rewards under various geographies where the group operates are similar in nature.

4.During the financial year 2017-18, the Company received duty credit scrips under Service Exports from India Scheme (the “Scheme” / "SEIS") for the financial year 2015-16. The duty credit scrips had been granted against export of services under defined category as per the Scheme. The Company realised Rs.121.85 million net of expenses, from the sale of duty credit scrips. In addition, the Company also accrued net income of Rs. 90.74 million for the financial year 2016-17 based on estimation of net realisable value.

5.Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue from Contracts with Customers” using the cumulative catch-up transition method which is applied to contracts that were not completed as of April 1, 2018. Accordingly, the comparatives have not been retrospectively adjusted. The effect on adoption of Ind AS 115 is insignificant on the financial results.

6.Other income includes net foreign exchange gain/(loss). Other income includes net foreign exchange loss of Rs.115.67 million and Rs.66.64 million for the quarter ended December 31, 2018 and quarter ended December 31, 2017 respectively.