Digjam Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2018

2. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on May 24, 2018.

3. The Company operates in single business segment “Textiles” (as per IND AS 108 – “Segment Reporting”).

4. The Company’s operations continue to be affected by significant working capital constraints following the steep fall in consumer product sales during the year, the temporary destocking by trade during transition to GST and overall restricted liquidity in the market, which has significantly impacted performance and cash flows resulting in substantial loss for the year. During the year the Company continued incur losses. It has incurred losses amounting to Rs. 3,211 lacs (2016-17: Rs. 2,216 lacs) for the year ended March 31, 2018, the Net Worth of Company has reduced to Rs. 7,230 lacs, and the Company's current liabilities exceeded its current assets.by Rs. 6,525 lacs (2016-17: Rs. 3,303 lacs). These conditions indicate the existence of a material uncertainty that may cast a significant doubt on the Company's ability to continue as a going concern. The Company is exploring avenues for restructuring of its operations and is evaluating other options, including offers received for sale of surplus freehold land, subject to various approvals. Having regard to this, the financial statements have been prepared on going concern basis and do not include any adjustments relating to recorded amounts and the classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

5. Exceptional Items represents one time Stamp Duty payable under Gujarat Stamp Act, 1958 in respect of the Scheme of Amalgamation sanctioned by the Hon’ble High Court of Gujarat w.e.f. close of business as on June 30, 2015 (Appointed Date).

6. The Company has adopted Indian Accounting Standards (“Ind AS”) from April 1, 2017 with transition date of April 1, 2016 as prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India. Financial results for all the periods presented have been prepared in accordance with the recognition and measurement principles of Ind AS.

Reconciliation between financial results and equity as reported under previous Indian GAAP and Ind AS are as under:

i. Total Comprehensive Income reconciliation
(` in lacs)

Particulars Quarter ended March 31, 2017

(Refer Note 6) Year ended March 31, 2017

(Refer Note 6)

Net (Loss) as per previous Indian GAAP (249) (2,196)

Add / (Less) : Adjustments in statement of Profit & loss

Fair value adjustment of liabilities as per Ind AS (5) (20)

Effect of actuarial gain/(loss) on employee defined benefit plans recognised in Other Comprehensive Income (net of tax Rs. Nil) 15 57

Net (Loss) before Other Comprehensive Income as per Ind AS (239) (2,159)

Add / (Less) : Adjustments in Other Comprehensive Income

Actuarial loss on defined benefit plan transferred from statement of profit & loss (15) (57)

Other Comprehensive Income (net of Tax Rs. Nil) (15) (57)

Total Comprehensive Income as per Ind AS (254) (2,216)

ii. Equity reconciliation
(` in lacs)

Particulars As at March 31, 2017

(Refer Note 6)

Total equity as per Indian GAAP 10,712

Add / (Less) : Adjustments in total other equity

Fair value adjustment of liabilities as per Ind AS (271)

Total equity as per Ind AS 10,441

8. Previous periods’ figures have been regrouped and rearranged wherever necessary.

9. Figures for the quarters ended March 31, 2018 and March 31, 2017 are the balancing figure between audited figures for the full financial year ended March 31, 2018 and March 31, 2017 and the limited reviewed figures up to the third quarter of the respective financial years.