Hexaware Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2019
Auditor and Management Disclosures and Notes for the quarterly results dated 30 Jun 2019
1) The Consolidated audited financial results and standalone audited financial results of the Company, reviewed and recommended by the Audit
Committee, were taken on record by the Board of Directors of the Company at its meeting held on August 8, 2019.
The Company has opted to publish only consolidated audited financial results, along with information on audited standalone results as per the
amended guidelines issued by the Securities and Exchange Board of India. Standalone audited results are available on the Company's website.
2) Information on segments has been disclosed on a consolidated basis in accordance with Ind AS 108 "Operating Segment"
3) Figures of the quarter ended 31st December are the balancing figures between audited figures in respect of the full financial year ended 31st
December and the audited figures upto the third quarter of such financial year.
4) The Group entered into Agreement and Plan of Merger as well as Share Transfer Agreement, both dated June 13, 2019 to acquire 100% equity in Mobiquity Inc. and
Mobiquity Softech Private Limited respectively (both together referred to as Mobiquity).
Headquartered in the US, and with a global presence across 3 continents, Mobiquity is one of the largest independent customer experience consulting firms that
specializes in creating frictionless multi-channel digital experiences using cloud technologies.
Details of Purchase consideration and purchase price that have been allocated based on management’s preliminary estimates and independent appraisal of fair values, is as follows:
Details of Acquisition Rupees Million
Initial upfront cash consideration 9,222.41
Fair value of deferred consideration payable by January 09, 2020 2,070.60
Fair value of contingent consideration payable by October 8, 2020 1,262.18
Total Purchase consideration 12,555.19
Fair value of net assets as on the date of acquisition 1,022.49
Deferred tax liability on intangible assets (679.31)
Goodwill 9,696.06
Total Purchase consideration 12,555.19
The transaction costs of Rs. 169.55 million has been included in the statement of profit and loss account and shown as an exceptional item.
5) Effective January 1, 2019, 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 condensed interim consolidated statement of profit and loss.
The adoption of the standard did not have any material impact to the financial statements of the Company.
6) The Board of Directors have declared an interim dividend of Re. 1.5/- per share (75%) on an equity share of Rs. 2/- each
7) Figures for the previous period has been regrouped wherever necessary to conform to the current period.
H) Notes:-
1) The Consolidated audited financial results and standalone audited financial results of the Company, reviewed and recommended by the Audit
Committee, were taken on record by the Board of Directors of the Company at its meeting held on August 8, 2019.
The Company has opted to publish only consolidated audited financial results, along with information on audited standalone results as per the
amended guidelines issued by the Securities and Exchange Board of India. Standalone audited results are available on the Company's website.
2) Information on segments has been disclosed on a consolidated basis in accordance with Ind AS 108 "Operating Segment"
3) The Group on June 13, 2019 acquired 100% equity in Mobiquity Inc. and its subsidiaries (together referred to as Mobiquity).
Mobiquity Inc. is headquartered in the US, and with a global presence across 3 continents, Mobiquity is a customer experience consulting firm that
specializes in creating frictionless multi-channel digital experiences using cloud technologies.
Purchase price has been allocated on a provisional basis as set out below, to the assets acquired and liabilities assumed in the business combination.
Deferred tax liability on intangible assets (679.31)
Other assets, net 1,022.49
Fair value of net assets as on the date of acquisition 2,859.13
Purchase consideration 12,555.19
Goodwill 9,696.06
Details of the purchase consideration Rupees Million
Initial upfront cash consideration 9,222.41
Fair value of deferred consideration payable by January 09, 2020 2,070.60
Fair value of contingent consideration payable by October 8, 2020 1,262.18
Total Purchase consideration 12,555.19
The transaction costs of Rs. 169.55 million has been included in the statement of profit and loss account and shown as an exceptional item.
Considering the aforesaid business combination, the financials for the period ended and as at June 30, 2019 are not
comparable with that of the previous periods.
4) Effective January 1, 2019, 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 condensed interim consolidated statement of profit and loss.
The adoption of the standard did not have any material impact to the financial statements of the Company.
5) The Board of Directors have declared an interim dividend of Re. ….../- per share (…...%) on an equity share of Rs. 2/- each
6) Figures for the previous period has been regrouped wherever necessary to conform to the current period.