Moneycontrol Bureau
Mastek shares gained 3.5 percent intraday Tuesday after getting board approval for change in pricing policy between company and UK unit.
"Board of directors, on March 28, has approved change in pricing policy between the company and its wholly owned subsidiary in United Kingdom, Mastek UK," says the midcap IT company in its filing.
It further says considering expansion in roles and responsibilities of UK unit due to ongoing business developments, the company proposed to revise current pricing policy with effect from April 1, 2016 to align same with arm's length.
Consequently, the company proposed to terminate master agreement, execute a services agreement with Mastek UK, execute a corporate trademark license agreement with UK unit and undertake relevant tax and regulatory filings, if any.With this restructuring, the company will provide services to Mastek UK on an arm's length pricing basis, aligned with the changed roles and responsibilities of the company and UK unit.
At 10:22 hours IST, the scrip of Mastek was quoting at Rs 141.70, up Rs 3.40, or 2.46 percent on the BSE.Posted by Sunil Shankar Matkar
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
