Datamatics Global Services Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2017
Auditor and Management Disclosures and Notes for the annual results dated 31 Mar 2017
1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their Meeting held on May 23,2017.
2. The Company mainly operates in a single primary business segment and hence segment details are not required to be published.
3. The Company has an investment of Rs. 646.30 mn in two of Its wholly owned subsidiaries and has also extended loans and advances of Rs. 9.52 million to these subsidiaries as on March 31, 2017. The net worth of these subsidiaries have declined. These investments are for long term and of strategic nature. As the management is confident of turning around the subsidiaries in the near future, provision for diminution in the value, if at all required is not made.
4. The Hon'ble High Court of Bombay has approved a scheme of amalgamation between the Company and its subsidiaries i.e. Datamatics Software Services Limited (DSSL) and Datamatics Vista Info Systems Limited (DVISTA) Vide its order dated April 22, 2016. The Scheme has been made effective on May 13,2016 with an appointed date of April 1,2015.
Pursuant to the Scheme of Amalgamation, DSSL and DVISTA have been amalgamated with the Company and accordingly all the assets and liabilities of DSSL and DVISTA were transferred to and vested in the Company, without any consideration and on going concern basis, with effect from April 1, 2015 (the appointed date).
Hence the standalone results for quarter ended March 31,2016 include the quarterly results of the Company with DSSL and DVISTA.
Accordingly the standalone results of the Company for the quarter ended March 31, 2017 are not comparable with those of corresponding previous period.
5. Exceptional Item - Standalone - Exceptional Item - Standalone - a) Datamatics Global Services GmbH (DGSG), a subsidiary Company has filed for voluntary winding up/liquidation/de registration procedure in Financial year 2015-16. In view of this, the Company has made further provision for diminution to the extent of balance appearing in respective investment of Rs. 130.23 mn (65.66 mn) under exceptional item.
b) Datamatics Technologies UK Limited (DTUK), a subsidiary Company in the UK had filed for voluntary winding up / liquidation and the same was liquidated during the year ended March 31,2017. Accordingly, the Company has written off its investment in DTUK and an amount of Rs. 23.89 mn has been shown as an exceptional item.
6. Exceptional Item - Consolidated - a) A subsidiary of the Company, had issued preference shares worth Rs. 771.76 million to outside shareholders in earlier year. During the year, the same was purchased / bought back by the Company/subsidiary for Rs. 217.80 million and Rs. 250 million respectively, resulting in total exceptional gain of Rs. 303.96 million. Considering the fact that preference shares are a financial liability and bought back from outside shareholders, the resultant gain is recognised as exceptional gain in the Consolidated Financial Result.
b) One of the step down subsidiary also discontinued its business. Hence the Company has provided for loss of Rs. 32.88 mn which is considered as exceptional item in consolidated financials.
7. Figures for the quarter ended March 31, 2017 and March 31, 2016 are the balancing figures between the audited figures in respect of the full financial year and published year to date figure upto the third quarter of the relevant financial year.
8. The Board has recommended final dividend of Rs. 0.75 per equity share (i.e 15%) of the face value of Rs. 5 each for the financial year ended March 31, 2017.
9. Previous quarter/year figures have been appropriately regrouped and reclassified wherever necessary to conform to the current quarter/year presentations.