DiGiSPICE Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2020
Notes :
1 The above results were reviewed by the Audit Committee and approved by the Board of Directors in their meetings held on 25th June 2020 and 26th June 2020 respectively. The results have been subjected to audit by the statutory auditors. The financial results are in accordance with the Indian Accounting Standards (''IND AS'') as prescribed under Section 133 of Companies Act, 2013 read with relevant rules made thereunder.
2 Employee benefit expense for the current quarter and the year includes Rs. (74.01) Lakhs and INR 26.94 Lakhs ( Previous quarter- Rs. 10.34 Lakhs, previous year- Rs. 298.52 Lakhs) being the provision for fair value of Options granted under Employee Stock Option Plan-2018 of the Company recognised in accordance with the provisions of IND AS 102.
3 Effective April 1, 2019, the Company adopted Ind AS 116 "Leases". applied to all lease contracts existing on April 1. 2019. The effect of this adoption is not material on the profit for the period and earnings per share.
4 The Exceptional items for the year include as below
a) Rs 182.34 lakhs comprises of settlement of old liabilities pertaining to central excise and service tax matter under the scheme Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 ,
b)Impairment provision of Rs 5,000.64 lakhs related to Investments in S Global Services Pte. Ltd (Rs 5000 lakhs) and S Mobility (HK) Limited (INR 0.64 lakhs) being the difference in carrying amount and recoverable value.
c) The Company reviewed the entire portfolio of its receivables and loans and, on a conservative basis, have made a provision of Rs 1603.71 lakhs out of which Rs 690.09 lakhs relates to other receivables and Rs 913.62 Lakhs for receivables and loans from subsidiary companies in the quarter ended 31st March 2020. Since this provision has mainly arisen due to inordinate delays, business uncertainties and stress over cash-flows of our customers//subsidiaries accelerated by the spread of Covid 19 pandemic all over the world, this has been shown as Exceptional item”.
Except as disclosed above, the management believes that there may not be significant impact of Covid-19 pandemic on the financial position and performance of the Company, in the long-term. The Company estimates to recover the carrying amount of all its assets including receivables and loans in the ordinary course of business based on information available on current economic conditions. These estimates may change and be affected by the severity and duration of pandemic. The Company is continuously monitoring any material change in future economic conditions.
5 The Company's business activities fall within a single operating segment viz. " Digital Technology Services (Digi Spice)" and accordingly, the disclosure requirement of Indian Accounting Standard (Ind AS-108) 'Operating Segments ' prescribed under Section 133 of the Companies Act, 2013 read with the relevant Rules issued thereunder is not applicable.
6 The paid up equity share capital of the Company is Rs. 6,837.06 Lakhs. However, taking a conservative interpretation of "Ind AS 32", the paid up equity share capital had been reduced by Rs. 782.04 Lakhs (31 Dec 2019 - Rs. 782.04 Lakhs) being the face value of 26,067,843 (31 Dec 2019 - 26,067,843) equity shares of Rs. 3/- each held by two trusts viz. Independent Non Promoter Trust and Independent Non Promoter (Spice Employee Benefit) Trust .
7 Tax expense includes provisions for current income taxes, deferred taxes, foreign taxes and income tax adjustments for earlier years.
8 Previous period’s figures have been regrouped and/or recasted, wherever considered necessary to conform to the current period presentation.
9 The figures for the Quarter are the balance figures between audited figures for the full financial and published year to date figures up to the third quarter of the relevant financial year.