Larsen & Toubro Infotech 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 unaudited standalone financial results of the Company for the quarter and nine months ended December 31, 2018 have been subjected to limited review by the statutory auditors. The results have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at its meeting held on January 18, 2019.
2. Results for the quarter and nine months ended December 31, 2018 are in compliance with Indian Accounting Standards (Ind AS} notified by the Ministry of Corporate Affairs as prescribed under section 133 of the Companies Act, 2013.
3. Effective April 1, 2018, the Company has adopted Ind AS 115 "Revenue from Contracts with Customers". The standard is applied using the cumulative catch-up transition method, retrospectively to contracts that are not completed as on April 1, 2018. Accordingly, the comparatives have not been adjusted. The adoption of the standard does not have any material impact on the financial results of the Company for the quarter and nine months ended December 31, 2018.
4. Other income for the quarters ended December 31, 2018, September 30, 2018 and December 30, 2017, for the nine months ended December 31, 2018 and December 31, 2017 and for the year ended March 31, 2018 includes dividend received from subsidiaries of Rs. 203 Mn,Rs. 205 Mn,Rs. Nil,Rs. 408 Mn,Rs. 579 Mn and Rs. 579 Mn respectively.
5. L&T lnfotech Financial Services Technologies Inc. ("LTIFST"} a wholly owned subsidiary of the Company, carried out buy back of 40% of its total equity capital (i.e. 400,000 shares} from its Shareholder (the Company} on March 21, 2018 for a consideration of Rs. 1,507 Mn against cost of Rs. 1,119 Mn. As a result, other income for the year ended March 31, 2018 included a gain of Rs. 388 Mn.
6. Operating Expenses for the year ended March 31, 2018 included an expense towards the one time commercial settlement of Rs. 617 Mn entered by the Company with one of its clients on March 27, 2018.
7. During the quarter ended December 31, 2018, 371,800 equity shares and during nine months ended December 31, 2018, 1,417,916 equity shares of Rs. 1 each fully paid up were allotted on exercise of stock options by employees in accordance with the Company's employee stock option schemes.
8. Earnings per share for the quarters ended December 31, 2018, September Rs. 30, 2018, December 31, 2017, and nine months ended December 31, 2018 and December 31, 2017 are not annualised.
9. The Company has entered into a definitive agreement to acquire 100% Stake in Ruletronics Limited UK, Ruletronics Systems Inc. US and Ruletronics Systems Pvt Ltd, India (collectively hereinafter referred as 'Ruletronics') on January 16, 2019 for an enterprise value of USO 7.48 Mn on a cash-free, debt-free basis, subject to working capital adjustments. Total revenue of Ruletronics for their respective last financial year aggregated to USO 3.35 Mn.
10. Figures for the earlier period(s} have been regrouped, wherever necessary.
Sanjay Jalona Chief Executive Director & Managing Director