HCL Technologies 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 consolidated and the standalone financial results for the quarter and nine months ended 31 December 2018 were reviewed by the Audit Committee and have been approved and taken on record by the Board of Directors at its meeting held on 29 January 2019.
2.The Board of Directors at its meeting held on 29 January 2019 has declared an interim dividend of Rs. 2/- per share.
3.Financial results for all the periods presented have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
4.As per Ind AS 108 'Operating Segments’, the Company has disclosed the segment information only as part of the consolidated financial results.
5.On 7 December 2018, the Company has signed a definitive agreement to acquire business relating to select IBM software products for Rs. 12,391 crores (USD 1,775 millions) including earn out, 50% of the same will be paid at close and balance later. It is an asset carve-out deal with 100% control on the assets being acquired. The transaction is expected to close by mid-2019, subject to completion of applicable regulatory approvals.
6.During the quarter ended 31 December 2018, the Company has completed the share buyback by extinguishing 36,363,636 fully paid-up equity shares of face value of Rs. 2/- each at a price of Rs. 1,100/- per share paid in cash for an aggregate consideration of Rs. 4,000 crores. The same has been recorded as reduction of Equity Share Capital by Rs. 7 crores and Other Equity by Rs. 3,993 crores.
7.Effective 1 April 2018, the Company has adopted IND AS 115 using the cumulative effect method. The standard is applied retrospectively only to contracts that are not completed as at the date of Initial application and the comparative information is not restated in the financial results. The adoption of the standard did not have any material impact to the financial statements of the Company.