Hexaware Technologies is engaged in mediation with a European client regarding a legal dispute over receivables. The company has fully provided for the USD 9 million claim, anticipating a potentially favorable outcome. Both parties have initiated mediation to resolve the matter, expecting resolution under the Master Service Agreement.
Update on European Client Dispute
Hexaware Technologies is currently undergoing mediation to resolve a legal dispute with a client based in Europe. This follows earlier disclosures regarding the dispute, which impacts receivables due to the company.
Mediation Details
Both Hexaware and the client have agreed to mediation through an agency in the US, aimed at reaching a settlement. The dispute centers on receivables as outlined in the Master Service Agreement.
Financial Impact
The total claim amount is USD 9 million. Hexaware has already made full provision for this amount. While there is no expectation of financial downside, a favorable resolution could result in profit accretion. Hexaware believes that the mediation efforts could lead to a positive outcome.
Source: BSE
