TCS to provision ₹1,218 crore as exceptional item in EPIC Systems Corporation matter

TCS would be providing ₹1,218 crore as exceptional item, in the EPIC Systems Corporation matter in the financial results for the three and six months ended September 30, 2020, to be announced on October 7, 2020.

On August 20, 2020, the US Court of Appeals, 7th Circuit, Chicago, returned a verdict on the appeal filed by TCS, reducing the damages award. The Court held that the punitive damages award of $280 million is constitutionally excessive, vacated the punitive damages award and directed the Trial Court to reassess the punitive damages. The Court upheld the compensatory damages award of $140 million.

TCS is legally advised that it has the correct and the strongest possible arguments in its favour and the Order and reduced damages are not supported by facts presented during the Trial. In September 2020, TCS has filed petition seeking re-hearing on both compensatory and punitive damages.

EPIC has also filed petition seeking re-hearing on decision of the Appeals Court invalidating award of punitive damages exceeding the amount of compensatory damages.

The provision in the books for legal claim is being made as a matter of prudence.

Shares of TATA CONSULTANCY SERVICES LTD. was last trading in BSE at Rs.2522.75 as compared to the previous close of Rs. 2491.5. The total number of shares traded during the day was 55334 in over 4175 trades.

The stock hit an intraday high of Rs. 2539 and intraday low of 2492. The net turnover during the day was Rs. 138842331.

Source : Equity Bulls

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