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Shaping the future of software driven business
Management Discussion and Analysis •
181
Particulars
As at
March 31, 2019
As at
March 31, 2018
Retained Earnings
10,657.52
9,544.13
Effective portion of cash flow hedges
185.06
16.63
Exchange differences on translating the financial statements of foreign operations
265.17
151.35
Total
22,655.61
20,471.99
Securities Premium Reserve
The Company utilized
`
562.60 Million from Securities Premium Reserve towards buy back of equity shares in accordance with
the provisions of Section 52 of the Companies Act, 2013. Reduction in Securities Premium Reserve was on account of utilization
for share buy-back. Out of the average buy-back price of
`
648.51 per share,
`
638.51 per share (after deducting the face value
of
`
10 each) for 881,098 shares bought back till March 31, 2019 has been appropriated against Security Premium Reserve.
For further details, please refer “Other Equity” under Statement of Changes in Equity in the consolidated financials.
General Reserve
During the Financial Year 2018-19, the Company transferred
`
1,260.03 Million out of the profits of the year to General Reserve
in accordance with the Company’s Policy of Transfer of Profits to General Reserve. Further, there has been transfer of
`
14.23
Million from Share Options Outstanding Reserve on exercise/expiry of stock options by the employees. The balance in General
Reserve stood at
`
10,565.95 Million as at March 31, 2019 as against
`
9,306.27 Million as at March 31, 2018. Please refer “Other
Equity” under Statement of Changes in Equity in the consolidated financials for details.
Share Options Outstanding Reserve
In accordance with Ind AS 102 – “Share Based Payments”, the cost of equity-settled transactions is determined by the fair value
of the options at the date of the grant and recognized as employee compensation cost over the vesting period following graded
vesting method.
The amount of stock options outstanding as at March 31, 2019 was
`
76.29 Million for 1.05 Million options outstanding as on that
date (The corresponding amount in stock options outstanding account as on March 31, 2018 was
`
90.52 Million for 1.70 Million
options outstanding on that date). The decrease in the liability represents fair value of options vested and exercise during
the year by the employees. Please refer “Other Equity” under Statement of Changes in Equity in the consolidated financials
for details.
Gain on bargain purchases
As per Ind AS 103- “Business Combinations”, if the net fair value of the identifiable assets, liabilities and contingent liabilities
acquired exceeds the cost of business acquisition, a gain is recognized as Gain on bargain purchases under other comprehensive
income. The Company has carried out the fair valuation of all identifiable assets, liabilities and contingent liabilities acquired
under the business acquisitions after the date of transition to Ind AS (i.e. April 1, 2015). Based on this, the Gain on bargain
purchases stood at
`
52.71 Million and
`
26.39 Million as at March 31, 2019 and March 31, 2018 respectively.
Please refer “Other Equity” under Statement of Changes in Equity in the consolidated financials for details.
Capital redemption reserve
During the year ended March 31, 2019, he Company has transferred
`
8.81 Million to Capital redemption reserve representing
the nominal value of the shares bought back in accordance with section 69 of the Companies Act, 2013. Please refer “Other
Equity” under Statement of Changes in Equity in the consolidated financials for details.
Special Economic Zone re-investment reserve
The Company has transferred
`
70.00 Million to Special Economic Zone re-investment reserve out of the profit in terms of the
provisions of Section 10AA(1)(ii) of the Income tax Act, 1961. The reserve will be utilised by the Company for acquiring new plant
and machinery for the purpose of its business in terms of Section 10AA(2) of the Income tax Act, 1961.
Retained Earnings
The balance retained in the Statement of Profit and Loss as at March 31, 2019 is
`
1,113.39 Million, after appropriation towards
dividend of
`
880.00 Million, dividend distribution tax of
`
137.41 Million on dividend paid during the year, transfer to General
Reserve
`
1,260.03 Million, transfer to capital redemption reserve
`
8.81 Million and transfer to Special Economic Zone
re-investment reserve
`
70.00 Million.