Mphasis Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2021
1. The financial results have been prepared in accordance with the Indian Accounting Standards ('Ind AS') prescribed under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, as amended from time to time. These results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 13 May 2021. The statutory auditors have expressed an unmodified audit opinion on these results.
2. The Board of Directors in their meeting held on 13 May 2020 had proposed a final dividend of Rs. 35 per equity share for the year ended 31 March 2020. The dividend proposed by the Board of Directors was approved by the shareholders in the Annual General Meeting held on 23 July 2020 and has been paid during the quarter ended 30 September 2020.
3. The Board of Directors in their meeting held on 13 May 2021 have proposed a final dividend of Rs. 65 per equity share for the year ended 31 March 2021 which is subject to the approval of shareholders at the ensuing Annual General Meeting and if approved, would result in a cash outflow of approximately Rs. 12,157.73.
4. The Code on Social Security 2020 ('Code'), which received the Presidential Assent on 28 September 2020, subsumes nine regulations relating to social security, retirement, and employee benefits. The Code will have an impact on the contributions towards gratuity and provident fund made by the Company. The Ministry of Labour and Employment ('Ministry') has released draft rules for the Code on 13 November 2020 and has invited suggestions from stake holders. The suggestions received are under consideration by the Ministry. The effective date of the Code has not yet been notified and the related rules to ascertain the financial impact are yet to be finalized and notified. The Company will assess the impact once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.
5. Impact of the Global Pandemic ('Covid-19')
The Company has taken into account the possible impacts of Covid-19 in preparation of the standalone financial statements / results, including but not limited to its assessment of liquidity and going concern assumption, impairment triggers for non-current assets, recoverable values of its financial and non-financial assets, impact on revenues and on cost budgets in respect of fixed price contracts, impact on measurement of deferred tax assets / liabilities, impact on leases and impact on effectiveness of its hedging relationships. The Company has considered available sources of information, both internal and external, upto the date of approval of the standalone financial statements / results and expects to recover the carrying amount of its assets. The impact of Covid-19 on the standalone financial statements / results may differ from that estimated as at the date of approval of these standalone financial statements / results.
6. The figures for the current quarter ended 31 March 2021 are the balancing figures between audited figures for full financial year and audited year - to - date figures upto 31 December 2020. The figures for the corresponding previous quarter ended 31 March 2020 are the balancing figures between audited figures for full financial year and the audited year - to - date figures upto 31 December 2019.