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Shaping the future of software driven business
Report of the Directors •
85
The indicative maximum number of Equity Shares bought back at the above maximum price would be 3,000,000. If the Equity
Shares are bought back at a price below the Maximum Buyback Price of
`
750, the actual number of equity shares bought back
could exceed the above indicative Maximum Buyback quantity but will always be subject to the Maximum Buyback Size.
Status of the Buyback as on the report date
The buyback commenced on February 8, 2019. The details regarding the number of shares bought back on a monthly basis are
as follows:
Sr.
No.
Month
No. of Equity
Shares bought back
Consideration
Paid (In
`
)
% of Maximum
Buyback Size
Avg. Price (In
`
)
1.
February 2019
368,851
234,137,303.25
10.41
634.77
2.
March 2019
512,247
337,264,931.01
14.99
658.40
3.
April 2019
1,449,015
913,981,595.74
40.62
630.76
4.
May 2019
695,000
423,177,301.10
18.81
608.89
5.
Up to June 11, 2019
240,000
144,489,590.50
6.42
602.04
Total
3,265,113
2,053,050,721.60
91.25
628.70
In terms of the SEBI Buyback Regulations, the Equity Shares bought back during the month are required to be extinguished
within 15 days of the succeeding month. Accordingly, the shares purchased up to May 31, 2019 i.e. 3,025,113 were extinguished
on June 7, 2019.
Consequently, the paid-up capital of the Company as at June 11, 2019 has been reduced from
`
800,000,000 (Pre-Buyback) to
`
769,748,870 comprising of 76,974,887 Equity Shares of
`
10 each.
The Buyback will be open till August 7, 2019 or reaching maximum buyback size, whichever is earlier.
Liquidity
Your Company continues to maintain adequate amount of liquidity to meet its strategic and growth objectives. Your Company
aims to maintain a balance between earning adequate returns on liquid assets and the need to cover financial and business
risks. As at March 31, 2019, your Company, on an unconsolidated basis, had cash and cash equivalents (including investments)
amounting to
`
13,109.31 Million as against
`
10,768.92 Million as at March 31, 2018. The details of cash and cash equivalents
(including investments) are as below:
(In
`
Million)
Particulars
As at
March 31, 2019
As at
March 31, 2018
Investment in Mutual Funds at fair value
5,270.44
7,573.80
Fixed Deposits with scheduled banks
4,687.90
747.03
Deposit with Financial Institutions (Net)
497.50
1,030.35
Bonds (quoted)
2,088.35
1,112.47
Cash and Bank balances
565.12
305.27
Total
13,109.31
10,768.92
Update on Fixed Deposits with IL&FS
One of the investments in your Company’s treasury portfolio, is in the form of fixed deposits with Infrastructure Leasing and
Financial Services Limited (IL&FS) and IL&FS Financial Services Limited (IL&FS Group) to the extent of
`
430 Million. These
were due for maturity from January 2019 to June 2019. In August 2018, credit rating agency significantly downgraded IL&FS
group’s rating. In view of the uncertainty about the liquidity crisis at IL&FS, it is likely to take considerable time to ascertain
the value of the assets held by various entities in IL&FS Group as against the total outstanding debts of the group. In the above
circumstances, the management of your Company was of the view that the provision for impairment of the deposits needs to
be made in the books of accounts. Hence, a provision of INR 182.50 Million i.e. 42.4% of the total investment in IL&FS has been
made as on March 31, 2019. Your Company continues to monitor developments in this matter and is committed to take steps
including legal action that may be necessary to ensure full recovery of the said deposit.