Onward Technologies 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 statement has been reviewed by the Audit Committee and approved by the Board of Directors at it's meeting held on January 24, 2019.

2. This statement has been prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") 34 Interim Financial Reporting prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

3. As per Ind AS 108 "Operating Segments", when a financial report contains both consolidated results and separate financial results for parent, segment information needs to be presented only in case of consolidated financial results. Accordingly, segment information has been provided only in the consolidated financial results.

4. During the quarter and nine months ended December 31, 2018, the Company issued 55,100 and 2,09,600 equity shares respectively following the exercise of stock options by certain employees under the ESOP scheme, 2009.

5. Effective April 1, 2018, the Company has adopted Ind AS 115 "Revenue from Contracts with Customers" using the modified retrospective option which is applied to contracts that were not completed as at April 1, 2018. Accordingly, the comparatives have not been retrospectively adjusted. The effect on adoption of Ind AS 115 did not have any material impact to the financial results of the Company.

6. Export Incentive under Service Exports from India Scheme, 2015 is included in Other Income (net) for nine months ended December 31, 2017 and December 31, 2018 amounting to INR 77.46 lakhs and INR 152.31 lakhs respectively.

7. Previous year figures have been regrouped / rearranged wherever considered necessary.