Hexaware Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1) The Consolidated unaudited financial results and standalone unaudited 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 April 29, 2020.



The Company has opted to publish only consolidated unaudited financial results, along with information on unaudited standalone results as per the

amended guidelines issued by the Securities and Exchange Board of India. Standalone unaudited 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 figures for the quarter ended 31 December 2019 are the balancing figures between the audited figures in respect of the full financial year

"

and the audited nine months figures as reported by the Company.



4) The Group has adopted Ind AS 116 ("the Standard"), effective annual reporting period beginning January 1, 2020 and applied the standard to its leases using modified

retrospective approach, with the cumulative effect of initially applying the Standard, recognised on the date of initial application (January 1, 2020). Accordingly, the Company

has not restated comparative information, instead, the cumulative effect of initially applying this Standard has been recognised as an adjustment to the opening balance of retained earnings as on January 1, 2020.



In respect of the consolidated results:

On account of the aforesaid change, the Operations and other expenses is lower by Rs. 166.88 Million, Depreciation and amortization is higher by Rs. 145.00 Million and

Finance costs is higher by Rs. 72.30 million for the quarter ended March 31, 2020.



Further, a right-of-use asset of Rs 3,993.63 Million and a corresponding lease liability of Rs 3,755.78 Million has been recognized. In respect of leases that were classified as

finance leases applying Ind AS 17, an amount of Rs 254.76 Million has been reclassified from property, plant and equipment to right-of-use asset. Prepaid rent on leasehold

land, which were earlier classified under Other assets have been reclassified to right-of-use assets aggregating to Rs. 518.55 Million and an amount of Rs 46.49 million in other

current financial liabilities has been adjusted against right-of-use asset. The cumulative effect on transition in retained earnings is Rs. 241.71 Million (net of deferred tax of Rs.50.23 Million).



In respect of the standalone results:

On account of the aforesaid change, the Operations and other expenses is lower by Rs. 81.98 million, Depreciation and amortization is higher by Rs. 70.19 million and Finance

costs is higher by Rs. 55.36 million for the quarter ended March 31, 2020.



Further, a right-of-use asset of Rs 2,942.78 Million and a corresponding lease liability of Rs 2,558.35 Million has been recognized. In respect of leases that were classified as

finance leases applying Ind AS 17, an amount of Rs 254.76 Million has been reclassified from property, plant and equipment to right-of-use asset. Prepaid rent on leasehold

land, which were earlier classified under Other assets have been reclassified to right-of-use assets aggregating to Rs. 518.55 Million and an amount of Rs. 0.17 million in other

current financial liabilities has been adjusted against right-of-use asset. The cumulative effect on transition in retained earnings is Rs. 126.45 million (net of deferred tax of Rs.26.05 Million).



5) 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.

The transaction costs of Rs. 168.24 million and Rs. 5.24 million for the year ended December 31, 2019 were shown as an exceptional item in the consolidated

and standalone results respectively.

Considering the aforesaid business combination, the results for the period ended March 31, 2020 are not comparable with that of the period ended March 31,

2019 and with the year ended December 31, 2019



6) COVID pandemic:

The Group has assessed the impact on the recoverability of the receivables (including unbilled) and other current and non-current assets including goodwill considering both

internal and external information available till date. It has also assessed, the probability of occurrence of forecasted transactions in the hedging relations, credit risk of the

counter party to the derivative contracts and banks. The Group, based on the analysis on assumption used, believes that the carrying value of these assets are recoverable.

Considering the fact that the global situation is evolving day by day with new facts and numbers, the economic impact of pandemic could be different from the estimated till

date by the management. The management is continuously monitoring the material changes.



7) Figures for the previous period has been regrouped wherever necessary to conform to the current period.