1: DISCONTINUED OPERATIONS
The Board of Directors of the Company at its meeting held on 04th August,2016 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 Synegra EMS 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 Rs. 190,000,000/- and Rs. 33,000,000/- respectively adjusted for net working capital changes as on the closing date.
In this connection, the Company had 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 has 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).
2: OTHER DISCLOSURE
3. Employee benefits expense for the previous year includes compensation to employees pursuant to a employee separation scheme of Rs. 16,835,510/-.
4. In light of section 135 of the Companies Act 2013, the company has incurred expenses on Corporate Social Responsibility (CSR) aggregating to Rs. 1,194,775/- (Previous year Rs. 405,225/-) for CSR activities carried out during the current year.
5. The information provided in Note no. 26 to 30, 32 and 36 includes information pertaining to Discontinued Operations.
6.Previous year''''s figures have been regrouped , wherever necessary, to correspond with those of the current year.