Inspirisys Solutions Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The above financials results as reviewed by the Audit Committee were approved and taken on record by the Board at its meeting held on 05 February 2019.

2. The company has an investment of INR 790 lacs in a subsidiary named Accel IT Resources Limited (AITRL) and has further advanced loans (including interest) amounting to INR 768 lacs to this subsidiary as at 31 December 2018. The net worth of AITRL is negative as at 31 December 2018. The management of the subsidiary has been revamped to restructure operations to optimize revenue generation by investing in technology and adding customer base. Whilst a new business plan was put in place and the subsidiary has got the training centres accredited to National Skill Development Corporation (NSDC), the revenue generated out of this accredition is negligible. The management of the subsidiary and the Company is of the view that the company would need to give some more time for these plans to materialise or work out alternate plans to grow business and improve the financial position of the subsidiary thereby enabling the recovery of these investments and loans given along with interest. Hence, the management has not created any provision for this
investment and outstanding loans induding interest. This is a subject matter of lification in the audit report for the year ended 31 March 2018 and review report for the period ended 30 June 2018, 30 September 2018 and 31 December 2018.

3. The figures for the corresponding previous periods have been regrouped/ reclassified wherever considered necessary to conform to the figures presented in the current period.

Malcolm F. Mehta
Chairman and Chief Executive Officer