Zylog Systems Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

1. The Company has adopted the Indian Accounting Standards (Ind AS) from April 01, 2017 and these financial statements have been prepared in accordance with the recognition and measurement principles laid down in the said standards, consequently, the figures for the period ended Dec 31, 2018 as prepared under IGAAP have been restated to make them comparable.

2. The above results have been reviewed and approved by the Board of Directors at its Meeting held on 14-Feb-2019.

3. Decrease in revenue during the nine months ended period when compared to previous year is due to drop in business across regions.

4. Interest on borrowings have not been provided for, as the company could not get confirmation of balance from the lenders, as all loans have been classified as NPAs.

5. Finance cost is on account of factoring of client invoices in USA operations.

6. The holding company has unpaid Statutory dues pertaining to the period under the erstwhile management till Nov 2015. The Statutory payments for the periods from December 2015 to December 2018 have been paid fully.

7. The holding company has contingent liabilities with respect to demands raised by the government statutory authorities amounting to Rs. 521.95 Crores as of 31st December 2018.

8. The holding company has received notices/complaints from revenue department, labour department, PF department for the complaints made by the ex-employees of the company for non-payment of their dues, which are pertaining to the period (till Nov 2015) of the erstwhile management.

9. The holding company has contingent liability to the tune of Rs.239/- Crores for the corporate guarantees given to the banks on behlaf of its subsidiary companies for the loans availed by them from the banks.

10. The company is engaged primarily in the business Of export of Software and IT related services and hence there is no separate reportable segment as per IndAS.

11. Previous period figures are regrouped / reclassified, to confirm to the current period classification.

Hon'ble Justice Mr. S. Rajeswaran (Retd.)
Administrator