IT FIRM Hexaware Technologies has taken a Rs 103 crore hit in the fourth quarter ended December 2007 because of unwinding of the exotic forex contracts it had entered into in currencies other than the rupee. This led to a net loss of Rs 81 crore for the period. The company management said there would be no further impact on its results and the contracts were not being carried forward into 2008. Not counting this impact, the company made a net profit of Rs 22 crore. The company also said it has tightened norms for foreign exchange contracts to prevent unauthorised transactions.
Henceforth, all forex contracts will have to be signed by a member of the executive management. There will also be specific hedging limits set with banks which would be asked to inform the company if the levels are breached, vice-chairman and CEO Rusi Brij said.