Kpit Cummins Infosystems Ltd Stock Quotes and Charts
Kpit Cummins Infosystems Ltd on April 28, 2008 informed the stock<br>exchanges about certain foreign exchange transactions.<br><br>About 98% of the income that KPIT Cummins derives is in foreign<br>currencies. The Company follows a policy of covering the risks arising<br>out of foreign exchange fluctuations through forward contracts and<br>options.<br><br>During the year ended March 31, 2008, apart from forward contracts,<br>the Company has entered into forex derivative transactions to the tune<br>of US dollar 42.6 million covering a period of next five years. Apart<br>from a committed INR - US dollar conversion rate, the contracts also<br>had a component of contingent premium payment with reference to Euro-<br>US dollar rates beyond bench-mark Euro-US dollar rates. By virtue of<br>the strengthening of the Euro vis--vis US dollar as at March 31,<br>2008, the Mark to Market (MTM) loss of the said contracts currently<br>stands at Rs 892.68 million as on March 31, 2008. Since the Company<br>has not cancelled the contracts as of March 31, 2008, this wilt be non-<br>cash / notional loss.<br><br>The Company's current and future exports in Euros based on the current<br>sales trends indicate that the net inflows to the Company in Euros is<br>higher than the amount on which the premium is payable on the<br>contracts mentioned above. The Company therefore believes that it<br>would not incur a loss by virtue of these contracts, although there<br>could be an opportunity loss, The Company has made its cost structure<br>compatible with the bench-mark Euro-dollar rates.<br><br>The Company is in the process of ascertaining the accounting treatment<br>of the said contracts in the light of the Accounting Standard namely<br>AS 30 mandated by the Institute of Chartered Accountants of India on<br>March 27, 2008. Should the contracts be treated as ineffective hedges<br>under the Standard, the Mark to Market (MTM) loss on these contracts<br>would stand debited to the P&L account as an exceptional / one-time<br>item. Should the said contracts be treated as effective hedges, the<br>Mark to Market (MTM) losses would be provided through reserves without<br>affecting the P&L account.<br><br>Reassuring all the stakeholders, Mr. S B (Ravi) Pandit, Chairman and<br>Group CEO stated:<br>The Company is fully of addressing the challenges that have arisen<br>out of the current situation. Owing to our strong presence and growth<br>in Europe, we have a natural hedge to tide over these contracts. We<br>have a strong pipeline to sustain our growth momentum and attain<br>position of leadership in our focus industries."
Any views on KPIT? IT stocks may gain on appreciating Dollar. Can this comp gain from it and give good returns?
The stock has headed to 160 within a short time after recommendation at 142....This is just start... It has to go way ahead...
KPIT Cummins is up over 5% at Rs.164.Volumes are up at a whopping 26.61 lakh shares traded today as against 1.50 lakh shares traded over last two week average. The stock is buzzing after it announced today that its Board will meet on 27 September 2010, to consider acquisition of a US-based company. The company has a robust track record of successful acquisitions, fulfilling financial and strategic imperatives. Thus another new acquisition is expected to help it grow further.
Approval of Merger by the Hon`ble High Court | 31/01/11 :<br> Kpit Cummins Infosystems Ltd has informed BSE that the Hon`ble Bombay High Court has approved the merger of KPIT Infosystems Central Europe Sp. Z.o.o, Poland and KPIT Cummins Global Business Solutions Ltd with the holding Company, KPIT Cummins Infosystems Ltd on January 28, 2011. The certified copy of the High Court Order is awaited.<br><br>One of the best stock, MUST in good portfolio.....
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