FROM PUBLISHED ACCOUNTS

Disclosures related to impact of Covid-19 in
published financial results and auditors’ report thereon for the quarter / year
ended 31^st March, 2020

Compiler’s Note

Despite the challenging
situation due to the Covid-19 pandemic and the consequent lockdown (and the
work from home scenario), many front-line companies have issued their financial
results for the quarter / year ended 31^st March, 2020 and auditors
have also issued their reports thereon. In view of the uncertain future
economic scenario and downturn, most of these companies have given disclosures
for the same and, in many cases the auditors have also given remarks in their
reports. Given below are sector-wise disclosures by companies and their
auditors in this regard.

INFORMATION
TECHNOLOGY SECTOR

Infosys
Limited

From
Notes forming part of Financial Statements

Use of
estimates and judgements – Estimation of uncertainties relating to global
health pandemic from Covid-19.

The company has considered
the possible effects that may result from the pandemic relating to Covid-19 on
the carrying amounts of receivables, unbilled revenues and investments in
subsidiaries. In developing the assumptions relating to the possible future uncertainties
in the global economic conditions because of this pandemic, the company, as at
the date of approval of these financial statements, has used internal and
external sources of information including credit reports and related
information and economic forecasts. The company has performed sensitivity
analysis on the assumptions used and based on current estimates expects the
carrying amount of these assets will be recovered. The impact of Covid-19 on
the company’s financial statements may differ from that estimated as at the
date of approval of these financial statements.

From
Auditors’ Report

No specific disclosure.

Tata
Consultancy Services Limited (TCS)

From
Notes forming part of Financial Statements

Financial
risk management – Foreign currency exchange rate risk – Impact of Covid-19
(global pandemic).

The company basis its
assessment believes that the probability of the occurrence of their forecasted
transactions is not impacted by Covid-19 pandemic. The company has also
considered the effect of changes, if any, in both counter-party credit risk and
own credit risk while assessing hedge effectiveness and measuring hedge
ineffectiveness. The company continues to believe that there is no impact on
the effectiveness of its hedges.

Financial instruments carried
at fair value as at 31^st March, 2020 are Rs. 26,111 crores and
financial instruments carried at amortised cost as at 31^st March,
2020 are
Rs. 45,864 crores. A significant part of the financial assets are classified as
Level 1 having fair value of Rs. 25,686 crores as at 31^st March,
2020. The fair value of these assets is marked to an active market which
factors the uncertainties arising out of Covid-19. The financial assets carried
at fair value by the company are mainly investments in liquid debt securities
and accordingly, any material volatility is not expected.

Financial assets of Rs. 4,824
crores as at 31^st March, 2020 carried at amortised cost are in the
form of cash and cash equivalents, bank deposits and earmarked balances with
banks where the company has assessed the counter-party credit risk. Trade
receivables of Rs. 28,734 crores as at 31^st March, 2020 form a
significant part of the financial assets carried at amortised cost, which is
valued considering provision for allowance using expected credit loss method.
In addition to the historical pattern of credit loss, we have considered the
likelihood of increased credit risk and consequential default considering
emerging situations due to Covid-19. This assessment is not based on any mathematical
model but an assessment considering the nature of verticals, impact immediately
seen in the demand outlook of these verticals and the financial strength of the
customers in respect of whom amounts are receivable. The company has
specifically evaluated the potential impact with respect to customers in
Retail, Travel, Transportation and Hospitality, Manufacturing and Energy
verticals which could have an immediate impact and the rest which could have an
impact with a lag. The company closely monitors its customers who are going
through financial stress and assesses actions such as change in payment terms,
discounting of receivables with institutions on non-recourse basis, recognition
of revenue on collection basis, etc., depending on severity of each case. The
same assessment is done in respect of unbilled receivables and contract assets
of Rs. 8,573 crores as at 31^st March, 2020 while arriving at the
level of provision that is required. Basis this assessment, the allowance for
doubtful trade receivables of Rs. 938 crores as at 31^st March, 2020
is considered adequate.

Leases
– Impact of Covid-19

The company does not foresee
any large-scale contraction in demand which could result in significant
down-sizing of its employee base rendering the physical infrastructure
redundant. The leases that the company has entered with lessors towards
properties used as delivery centres / sales offices are long term in nature and
no changes in terms of those leases are expected due to Covid-19.

Revenue
recognition – Impact of Covid-19

While the company believes
strongly that it has a rich portfolio of services to partner with customers,
the impact on future revenue streams could come from

The company has assessed that
customers in Retail, Travel, Transportation and Hospitality, Energy and
Manufacturing verticals are more prone to immediate impact due to disruption in
supply chain and drop in demand, while customers in Banking, Financial Services
and Insurance would re-prioritise their discretionary spend in immediate future
to conserve resources and assess the impact that they would have due to
dependence of revenues from the impacted verticals. The company has considered
such impact to the extent known and available currently. However, the impact
assessment of Covid-19 is a continuing process given the uncertainties
associated with its nature and duration.

The company has taken steps
to assess the cost budgets required to complete its performance obligations in
respect of fixed price contracts and incorporated the impact of likely delays /
increased cost in meeting its obligations. Such impact could be in the form of
provision for onerous contracts or re-setting of revenue recognition in fixed
price contracts where revenue is recognised on percentage-completion basis. The
company has also assessed the impact of any delays and inability to meet
contractual commitments and has taken actions such as engaging with the
customers to agree on revised SLAs in light of current crisis, invoking of force
majeure clause, etc., to ensure that revenue recognition in such cases
reflects realisable values.

From
Auditors’ Report

No specific disclosure.

BANKING
SECTOR

HDFC Bank
Limited

From
Notes forming part of Financial Results

The Reserve Bank of India,
vide its circular dated 17^th April, 2020, has decided that banks
shall not make any further dividend payouts from profits pertaining to the
financial year ended 31^st March, 2020 until further instructions,
with a view that banks must conserve capital in an environment of heightened
uncertainty caused by Covid-19. Accordingly, the Board of Directors of the
bank, at their meeting held on 18^th April, 2020, has not proposed
any final dividend for the year ended 31^st March, 2020.

The SARS-CoV-2 virus
responsible for Covid-19 continues to spread across the globe and India, which
has contributed to a significant decline and volatility in global and Indian
financial markets and a significant decrease in global and local economic
activities. On 11^th March, 2020 the Covid-19 outbreak was declared a
global pandemic by the World Health Organization. Numerous governments and
companies, including the bank, have introduced a variety of measures to contain
the spread of the virus. On 24^th March, 2020 the Indian government
announced a strict 21-day lockdown which was further extended by 19 days across
the country to contain the spread of the virus. The extent to which the
Covid-19 pandemic will impact the bank’s results will depend on future
developments, which are highly uncertain, including, among other things, any
new information concerning the severity of the Covid-19 pandemic and any action
to contain its spread or mitigate its impact whether government-mandated or
elected by the bank.

In
accordance with the RBI guidelines relating to Covid-19 Regulatory Package
dated 27^th March, 2020 and 17^th April, 2020 the bank
would be granting a moratorium of three months on the payment of all
instalments and / or interest, as applicable, falling due between 1^st
March, 2020 and 31^st May, 2020 to all eligible borrowers classified
as Standard, even if overdue, as on 29^th February, 2020. For all
such accounts where the moratorium is granted, the asset classification shall
remain stand-still during the moratorium period (i.e., the number of days
past-due shall exclude the moratorium period for the purposes of asset
classification under the Income Recognition, Asset Classification and
Provisioning norms). The bank holds provisions as at 31^st March,
2020 against the potential impact of Covid-19 based on the information
available at this point in time. The provisions held by the bank are in excess
of the RBI prescribed norms.

From
Auditors’ Report

Emphasis of
matter

We draw
attention to Note 10 to the standalone financial results, which describes that
the extent to which the Covid-19 pandemic will impact the bank’s results will
depend on future developments, which are highly uncertain.

Our opinion is not modified
in respect of this matter.

Axis Bank
Limited

From
Notes forming part of Financial Results

Covid-19 virus, a global
pandemic has affected the world economy including India, leading to significant
decline and volatility in financial markets and decline in economic activities.
On 24^th March, 2020 the Indian Government announced a strict 21-day
lockdown which was further extended by 19 days across the country to contain
the spread of the virus. The extent to which the Covid-19 pandemic will impact
the bank’s provision on assets will depend on the future developments, which
are highly uncertain, including among other things any new information
concerning the severity of the Covid-19 pandemic and any action to contain its
spread or mitigate its impact whether government-mandated or elected by the
bank.

From
Auditors’ Report

Emphasis of
matter

We draw attention to Note 6
to the Statement which explains that the extent to which Covid-19 pandemic will
impact the bank’s operations and financial results is dependent on future
developments, which are highly uncertain.

ICICI Bank
Limited

From
Notes forming part of Financial Results

Since the
first quarter of CY 2020, the Covid-19 pandemic has impacted most of the
countries, including India. This resulted in countries announcing lockdown and
quarantine measures that sharply stalled economic activity. The Indian economy
would be impacted by this pandemic with contraction in industrial and services
output across small and large businesses. The bank’s business is expected to be
impacted by lower lending opportunities and revenues in the short to medium term.
The impact of the Covid-19 pandemic on the bank’s results, including credit
quality and provisions, remains uncertain and dependent on the spread of
Covid-19, steps taken by the government and the central bank to mitigate the
economic impact, steps taken by the bank and the time it takes for economic
activities to resume at normal levels. The bank’s capital and liquidity
position is strong and would continue to be the focus area for the bank during
this period. In accordance with the regulatory package announced by the Reserve
Bank of India on 27^th March, 2020, the bank has extended the option
of payment moratorium for all amounts falling due between 1^st March,
2020 and 31^st May, 2020 to its borrowers. In line with the RBI
guidelines issued on 17^th April, 2020 in respect of all accounts
classified as standard as on 29^th February, 2020 even if overdue,
the moratorium period, wherever granted, shall be excluded from the number of
days past-due for the purpose of asset classification. At 31^st
March, 2020 the bank has made Covid-19 related provision of Rs. 2,725.00
crores. This additional provision made by the bank is more than the requirement as per the RBI guideline dated 17^th April,
2020.

From
Auditors’ Report

Emphasis of
Matter

We draw attention to Note 2
of the Statement, which describes the uncertainties due to the outbreak of
SARS-CoV-2 virus (Covid-19). In view of these uncertainties, the impact on the
Bank’s results is significantly dependent on future developments. Our opinion
is not modified in respect of this matter.

MANUFACTURING
SECTOR

Reliance
Industries Limited

From
Notes forming part of Financial Results

The
outbreak of coronavirus (Covid-19) pandemic globally and in India is causing
significant disturbance and slowdown of economic activity. In many countries,
businesses are being forced to cease or limit their operations for long or an
indefinite period of time. Measures taken to contain the spread of the virus,
including travel bans, quarantines, social distancing and closures of non-essential
services have triggered significant disruptions to businesses worldwide,
resulting in an economic slowdown.

Covid-19 is significantly
impacting business operations of the companies, by way of interruption in
production, supply chain disruption, unavailability of personnel, closure /
lockdown of production facilities, etc. On 24^th March, 2020 the
Government of India ordered a nationwide lockdown for 21 days which further got
extended till 3^rd May, 2020 to prevent community spread of Covid-19
in India resulting in significant reduction in economic activities. Further,
during March / April 2020, there has been significant volatility in oil prices,
resulting in reduction in oil prices.

In assessing the
recoverability of company’s assets such as Investments, Loans, Intangible
Assets, Goodwill, Trade receivable, Inventories, etc. the company has
considered internal and external information up to the date of approval of
these financial results. The company has performed sensitivity analysis on the
assumptions used basis the internal and external information / indicators of
future economic conditions and expects to recover the carrying amount of the
assets.

Further, in respect to
refining and petrochemicals business, the company has determined the non-cash
inventory holding losses in the energy businesses due to dramatic drop in oil
prices accompanied with unprecedented demand destruction due to Covid-19 and
the same has been disclosed as Exceptional Items in the Financial Results.
Impact of the same, net of current tax for the quarter and year ended 31^st
March, 2020, is Rs. 4,245 crores (tax Rs. 899 crores).

From
Auditors’ Report

No specific disclosure.

Mahindra CIE
Limited

From
Notes forming part of Financial Results

Since December, 2019 Covid-19,
a new strain of coronavirus, has spread globally, including India. This event
significantly affects economic activity worldwide and, as a result, could
affect the operations and results of the group. The impact of coronavirus on
our business will depend on future developments that cannot be reliably
predicted, including actions to contain or treat the disease and mitigate its
impact on the economies of the affected countries, among others.

The impact of the global
health pandemic might be different from that estimated as at the date of
approval of these financial results and the company will closely monitor any
material changes to future economic conditions.

From
Auditors’ Report

Emphasis of
Matter

We draw your attention to
Note 8 to the Statement of Standalone and Consolidated Unaudited Results for
the quarter ended 31^st March, 2020 which describes the impact of the
outbreak of coronavirus (Covid-19) on the business operations of the company.
In view of the highly uncertain economic environment, a definitive assessment
of the impact on the subsequent periods is highly dependent upon circumstances
as they evolve.

Tejas
Networks Limited

From
Notes forming part of Financial Results

Impact of
Covid-19 pandemic

The spread of Covid-19 has
severely impacted businesses around the globe. In many countries, including
India, there has been severe disruption to regular business operations due to
lockdowns, disruptions in transportation, supply chain, travel bans,
quarantines, social distancing and other emergency measures.

The company is in the
business of providing optical and data transmission equipment to telecom
service providers. Since telecom networks have been identified as an essential
service, the company is in a position to provide continual customer and
technical support to its customers in India and worldwide, so that their
network uptime remains high. With more people working remotely and many
services being accessed from home, there has been a significant increase in
data traffic in telecom networks which is expected to drive demand for higher
bandwidth and more optical and data transmission equipment. Telecom operators
are expected to invest more in upgrading their network capacities, especially
to address home broadband needs. The company’s products address the broadband
equipment requirements of telecom operators and are also used for augmenting
the data capacity of their networks. However, uncertainty caused by the current
situation has resulted in delays in confirmation of customer orders and in executing
the orders in hand and an increase in lead times in sourcing components. This
situation is likely to continue for the next two quarters based on current
assessment.

The company has made detailed
assessment of its liquidity position for the next one… and of the
recoverability and carrying values of its assets comprising Property, Plant and
Equipment, Intangible Assets, Trade receivables, Inventory, and Investments as
at the balance sheet date, and has concluded that there are no material adjustments
required in the standalone financial results. In the case of inventory,
management has performed the year-end ‘wall to wall’ inventory verification at
each of its locations and again at a date subsequent to the year-end in the
presence of its internal auditor (an external firm of Chartered Accountants) to
obtain comfort over the existence and condition of inventories as at 31^st
March, 2020 including roll-back procedures, etc.

Management believes that it
has taken into account all the possible impacts of known events arising from
Covid-19 pandemic in the preparations of the standalone financial results.
However, the impact assessment of Covid-19 is a continuing process given the
uncertainties associated with its nature and duration. The company will continue
to monitor any material changes to future economic conditions.

From
Auditors’ Report

Emphasis of
Matter

We draw your attention to
Note 13 to the standalone financial results which explains the uncertainties
and the management’s assessment of the financial impact due to the lockdowns
and other restrictions and conditions related to the Covid-19 pandemic
situation, for which a definitive assessment of the impact in the subsequent
period is highly dependent upon circumstances as they evolve. Further, our
attendance at the physical inventory verification done by the management was
impracticable under the current lockdown restrictions imposed by the government
and we have, therefore, relied on the related alternate audit procedures to
obtain comfort over the existence and condition of inventory at year-end. Our
opinion is not modified in respect of this matter.

Tata Coffee
Limited

From
Notes forming part of Financial Results

The company’s units, which
had to suspend operations temporarily due to the government’s directives
relating to Covid-19, have since resumed partial operations, as per the
guidelines and norms prescribed by the Government authorities.

The management has considered
the possible effects, if any, that may result from the pandemic relating to
Covid-19 on the carrying amounts of trade receivables and inventories
(including biological assets). In developing the assumptions and estimates
relating to the uncertainties as at the Balance Sheet date in relation to the
recoverable amounts of these assets, the management has considered the global
economic conditions prevailing as at the date of approval of these financial
results and has used internal and external sources of information to the extent
determined by it. The actual outcome of these assumptions and estimates may
vary in future due to the impact of the pandemic.

From
Auditors’ Report

Other
matters

Due to the Covid-19 related
lockdown we were not able to participate in the physical verification of
inventory that was carried out by the management subsequent to the year-end.
Consequently, we have performed alternate procedures to audit the existence of
inventory as per the guidance provided in SA 501 Audit Evidence –
‘Specific Considerations for Selected Items’ and have obtained sufficient
appropriate audit evidence to issue our unmodified opinion in these standalone
financial results.Our opinion is not modified in respect of this matter.

SERVICE
SECTOR

GTPL Hathway
Limited

From
Notes forming part of Financial Results

In assessing the impact of
Covid-19 on recoverability of trade receivables including unbilled receivables,
contract assets and contract costs, inventories, intangible assets, investments
and margins of on-going projects, the company has considered internal and
external information up to the date of approval of these financial results.
Further, revenue for some on-going agreements has been considered based on
management’s best estimates. Based on current indicators of future economic
conditions, the company expects to recover the carrying amount of these assets
and revenue recognised. The impact of the Covid-19 pandemic may be different
from that estimated as at the date of approval of these (consolidated)
financial results and the company will continue to closely monitor any material
changes to future economic conditions.

During the previous year, on
account of fire at the warehouse on 11^th January, 2019, the company
has recognised insurance claim of Rs. 90.25 million. The company has submitted
all required information to insurance surveyor and final report is pending due
to lockdown on account of Covid-19. The management estimates that the insurance
claim amount is fully recoverable.

From
Auditors’ Report

Emphasis of
matter

We draw attention to Note No.
3 of the standalone financial results, which describes that based on current
indicators of future economic conditions the company expects to recover the
carrying amount of all its assets and revenue recognised. The impact of the
Covid-19 pandemic may be different from that estimated as at the date of
approval of these financial results and the company will continue to closely
monitor any material changes to future economic conditions. Our opinion is not
modified in respect of this matter.

We draw attention to Note No.
4 of the standalone financial results, wherein it is stated that during the
previous year on account of a fire at the warehouse on 11^th January,
2019, the company has recognised insurance claim of Rs. 90.25 million. The
company has submitted all required information to the insurance surveyor and
the final report is pending due to the lockdown on account of Covid-19. The
management estimates that the insurance claim amount is fully recoverable. Our
opinion is not modified in respect of this matter.

INSURANCE
SECTOR

SBI Life
Insurance Limited

From
Notes forming part of Financial Results

The outbreak of Covid-19
virus continues to spread across the globe including India, resulting in
significant impact on global and India’s economic environment, including
volatility in the capital markets. This outbreak was declared as a global
pandemic by World Health Organization (WHO) on 11^th March, 2020. The
company has assessed the overall impact of this pandemic on its business and
financials, including valuation of assets, policy liabilities and solvency for
the year ended 31^st March, 2020. Based on the evaluation, the
company has made additional reserve amounting to Rs. 600,000 thousands
resulting from Covid-19 pandemic over and above the policy level liabilities
calculated based on prescribed IRDAI regulations and the same have been
provided for as at 31^st March, 2020 in the actuarial liability. The
company will continue to closely monitor any future developments relating to
Covid-19 which may have any impact on its business and financial position.

From
Auditors’ Report

Emphasis of
matter

We invite attention to Note
No. 5 to the standalone financial results regarding the uncertainties arising
out of the outbreak of Covid-19 pandemic and the assessment made by the
management on its business and financials, including valuation of assets,
policy liabilities and solvency for the year ended 31^st March, 2020;
this assessment and the outcome of the pandemic is as made by the management
and is highly dependent on the circumstances as they evolve in the subsequent
periods.

Our opinion is not modified
on the above matter.

ICICI
Prudential Life Insurance Company Limited

From
Notes forming part of Financial Results

The company has assessed the
impact of Covid-19 on its operations as well as its financial statements,
including but not limited to the areas of valuation of investment assets,
valuation of policy liabilities and solvency, for the year ended 31^st
March, 2020. Further, there have been no material changes in the controls or
processes followed in the financial statement closing process of the company.
The company will continue to monitor any future changes to the business and
financial statements due to Covid-19.

From
Auditors’ Report

No specific disclosure.