NOTE 37: DISCONTINUED OPERATIONS
The Board of Directors of the Company at its meeting held on 04th August, 2016 had approved the sale of its "Digisol Business" comprising of Selling and Marketing of various categories of Networking and Information Technology (IT) Products sold under brand name "DIGISOL!', hereinafter referred to as ("Digisol Business") and "EMS Business" comprising mainly of manufacture of various categories of electronic and IT products, to Digisol Systems Limited ("Digisol") and SynegraEMS Limited ("Synegra") respectively both 100% subsidiaries of the Company.
The Digisol Business and EMS Business together with its respective assets and liabilities, were transferred to Digisol and Synegra on a 'slump sale' basis as a going concern, for a cash consideration of ?190,000,000/- and ?33,000,000/- respectively adjusted for net working capital changes as on the closing date.
In this connection, the Company obtained the shareholder's approval through postal ballot on 16th September, 2016 and signed the Business Transfer Agreement dated 24th September, 2016. The closing date for the transfer as per the Business Transfer Agreement was 10th October, 2016. Subsequently, the Company had received the aforesaid amount on 15th November, 2016.
Accordingly, the Digisol Business and EMS Business is considered as a 'discontinued operation' in terms of Accounting Standard 24 on 'Discontinued Operations' (AS 24).
The disclosures required under AS 24 are as under:
a. Details of revenue and expenses and assets and liabilities of continuing and discontinued operations:
Amount in Rs.
| |
|
2016-2017
|
|
|
Particular
|
Continuing Operation
|
Discontinued Operation
|
Total
|
|
Turnover (net)
|
216,421,183
|
453,925,286
|
670,346,469
|
|
Other Income
|
25,230,748
|
5,896,201
|
31,126,949
|
|
Total Income
|
241 ,651 ,931
|
459,821 ,487
|
701,473,418
|
|
Total Expenditure
|
123,401,940
|
508,403,415
|
631,805,355
|
|
Profit / (Loss) before tax
|
118,249,991
|
(48,581 ,928)
|
69,668,063
|
|
Provision for taxation
|
82,735,633
|
(33,494,832)
|
49,240,801
|
|
Profit / (Loss) after tax
|
35,514,358
|
(15,087,096)
|
20,427,262
|
|
Assets
|
3,433,011,517
|
399,656,299
|
-
|
|
Liabilities
|
37,101,680
|
143,460,367
|
-
|
b. Cash flow from continuing and discontinued operations:
|
Particulars
|
|
2016-2017
|
Amount in
|
|
|
Continuing Operation
|
Discontinued Operation
|
Total
|
| |
|
|
|
|
Net cash from operating activities
|
(89,025,570)
|
(83,776,433)
|
(172,802,003)
|
|
Net cash (used in) /from investing activities
|
976,187,345
|
9,730,211
|
985,917,556
|
|
Net cash (used in) financing activities
|
(821,615,061)
|
197
|
(821,614,864)
|
NOTE 38: DISCLOSURE REQUIRED UNDER SECTION 186(4) OF THE COMPANIES ACT, 2013
a) Particulars of Guarantees given
Amount in Rs
|
Sr. No
|
Name of the entity
|
Opening Balance
|
Guarantees Given
|
Guarntees Dischanged
|
Outstanding Balance
|
Purpose
|
|
1
|
Digisol Systems Limited
|
40,000,000
|
-
|
-
|
40,000,000
|
To HDFC Bank, for the working capital limit availed
|
|
2
|
Digisol Systems Limited
|
50,000,000
|
-
|
-
|
50,000,000
|
To Kotak Mahindra Bank, for working capital limit availed
|
b) Particulars of Investments made during the year
|
Sr. No.
|
Name of the Investee
|
Investment made
|
Purpose
|
|
1
|
Telesmart SCS Limited
|
23,800,000
|
In Equity Shares as Strategic Investment
|
NOTE 39: OTHER DISCLOSURE
a. In light of section 135 of the Companies Act 2013, the company has incurred expenses on Corporate Social Responsibility (CSR) aggregating to ?18,73,8377- (Previous year ?1,194,7757-) for CSR activities carried out during the current year.
|
|
Particulars |
For the year ended 31st March 2018 |
For the year ended 31st March 2017 |
|
a)
|
Gross amount required to be spent by the company during the year
|
1 ,864,672
|
1,068,548
|
|
b)
|
Amount spent during the year on the following
|
|
|
| |
1 . Construction / acquisition of any asset
|
-
|
-
|
| |
2. On purpose other than (1 ) above
|
|
|
| |
Installation of Networking products in various schools
|
1,328,837
|
-
|
| |
Prime Minister's National Relief Fund
|
345,000
|
600,000
|
| |
- Aspiring Entrepreneurs Workshop/ mentoring sessions for educational institutions
|
200,000
|
594,755
|
|
1,873,837
|
1,194,755
|
NOTE 40:
The information provided in Note no. 25 to 28,30 includes information pertaining to Discontinued Operations.
NOTE 41:
Previous year's figures have been regrouped , wherever necessary, to correspond with those of the current year.
Signature to notes 1 to 41
|
For and on behalf of the Board
|
|
|
K. R. Naik
|
K. M. Gaonkar
|
|
Executive Chairman
|
Director
|
|
DIN: 000020 13
|
DIN: 00002425
|
|
Urjita Damle
|
K. G. Prabhu
|
|
Company Secretary
|
Chief Financial Officer
|
|