LTIMindtree Limited has received demand notices of INR 10,847,424/- (including penalty of INR 5,423,712/-) by the Office of the License Officer Seilingampally Zone, Greater Hyderabad Municipal Corporation (`GHMC') alleging that the Company has not obtained Trade License for its offices in Hyderabad. However, the Company believes that the levy by GHMC is unjustified since as per prevailing municipal laws, trade license is not applicable for Company's operations. Company will be appealing against the levy.
Impact on financial, operation or other activities of the Company, quantifiable in monetary terms to the extent possible: The total amount of penalty payable based on the demand notices is INR 5,423,712/-. Based on assessment of facts and prevailing law, the Company is of the view that the demand (including penalty) is unjustified. The Company will take an appropriate legal course of action in consultation with its advisors.
Accordingly, there is no likely material impact on the Company's financials or operations.
