consolidated financial statements of datawind...

ConsolidatedFinancialStatementsof

DataWindInc.FortheyearsendedMarch31,2016and2015(inthousandsofCanadiandollars)

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ContentsIndependentAuditors’Report 2‐3Consolidatedstatementoffinancialposition 4Consolidatedstatementoflossandcomprehensiveloss 5Consolidatedstatementofchangesinshareholders’equity 6Consolidatedstatementofcashflows 7Notestotheconsolidatedfinancialstatements 8‐26

800 – 1600 CARLING AVE, OTTAWA ON, K1Z 1G3T: 613.691.4200 F: 613.726.9009 MNP.ca

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of

DataWind Inc.

We have audited the accompanying consolidated financial statements of DataWind Inc., which comprise

the consolidated statement of financial position as at March 31, 2016, and the consolidated statement of

loss and comprehensive loss, consolidated statement of changes in shareholders’ equity (deficiency) and

consolidated statement of cash flows for the year then ended, and a summary of significant accounting

policies and other explanatory information.

Management's Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial

statements in accordance with International Financial Reporting Standards, and for such internal control as

management determines is necessary to enable the preparation of consolidated financial statements that

are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those

standards require that we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance about whether the consolidated financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the consolidated financial statements. The procedures selected depend on the auditor's judgment,

including the assessment of the risks of material misstatement of the consolidated financial statements,

whether due to fraud or error. In making those risk assessments, the auditor considers internal control

relevant to the entity's preparation and fair presentation of the consolidated financial statements in order

to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing

an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by

management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a

basis for our audit opinion.

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Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial

position of DataWind Inc. as at March 31, 2016, and its financial performance and its cash flows for the year

then ended in accordance with International Financial Reporting Standards.

Other Matters

The consolidated financial statements as at March 31, 2015 were audited by Deloitte LLP of Ottawa,

Canada. Deloitte LLP expressed an unmodified opinion on those statements on July 6, 2015.

Chartered Professional Accountants,

Licensed Public Accountants

Ottawa, Ontario

November 20, 2016

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DataWind Inc. CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at March 31, 2016 (in thousands of Canadian dollars except per share data and except where indicated)

ASSETS Note 2016 2015

Current assets Cash and cash equivalents 4 $ 230 $ 10,698

Trade and other receivables 5 29,467 14,087

Inventories 6 10,036 7,163

39,733 31,948

Non‐current assets

Property and equipment 7 218

156

Total Assets $ 39,951 $ 32,104

LIABILITIES Current liabilities Accounts payable and accrued liabilities 8 $ 18,607 $ 10,671

Loans and borrowings 8,9 12,291 7,273

Total Liabilities 30,898 17,944

SHAREHOLDERS’ EQUITY Share capital 11 52,276 52,168

Contributed surplus 3,521 3,339

Accumulated other comprehensive loss (223) (332)

Deficit (46,521) (41,015)

Total Shareholders' Equity 9,053

14,160

Total Liabilities and Shareholders' Equity $ 39,951 $ 32,104

The accompanying notes are an integral part of these consolidated financial statements

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DataWind Inc. CONSOLIDATED STATEMENT OF LOSS AND COMPREHENSIVE LOSS years ended March 31, 2016 (in thousands of Canadian dollars except per share data and except where indicated)

Note

2016 2015

Revenue $ 59,675 $ 31,543 Cost of goods sold 41,919 25,496

Gross profit 17,756 6,047

Operating expenses:

Research and development 12 632 2,370 Administration cost 13 17,648 13,867 IPO transaction costs ‐ 1,688 Foreign exchange translation loss/(gain) 1,151 (788)

Total operating expenses 19,431 17,137

Operating loss (1,675) (11,090) Finance and other income/(expense) 14 (6) 124 Finance expense 14 (3,825) (631)

Loss before income taxes (5,506) (11,597)Income tax expense 10 ‐ ‐

Net loss (5,506) (11,597)

Other comprehensive income, net of income tax: Unrealized foreign exchange translation gain 109 383

Net comprehensive loss for the period $ (5,397) $ (11,214)

Net loss per share Basic and diluted $ (0.25) $ (0.57)Weighted average number of shares outstanding: Basic and Diluted 22,078,868 20,204,317

The accompanying notes are an integral part of these consolidated financial statements.

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DataWind Inc. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY years ended March 31, 2016 (in thousands of Canadian dollars except per share data and except where indicated)

The accompanying notes are an integral part of these consolidated financial statements.

NoteNumberofShares

ShareCapital

ContributedSurplus

AccumulatedOther

Comprehensiveloss Deficit

TotalShareholders’

Equity(Deficiency)

BalanceatMarch31,2014

11 154,317 $25,294 $2,149 $(715) $(29,418) $(2,690)

Shareconsolidation(10:1basis)

11 (138,886) ‐ ‐ ‐ ‐ ‐

Shareissuance 11 6,316 25,837 ‐ ‐ ‐ 25,837Specialwarrantsconvertedtoshares(1:1basis)

11 235 896 679 ‐ ‐ 1,575

Shareissuance 75 141 ‐ ‐ ‐ 141Sharebasedcompensation

11‐ ‐ 511 ‐ ‐ 511

Netloss ‐ ‐ ‐ ‐ (11,597) (11,597)Unrealizedforeignexchangetranslationgain

‐ ‐ ‐ 383 ‐ 383BalanceatMarch31,2015

22,057 $52,168 $3,339 $(332)

$(41,015) $14,160

Shareissuances 11 54 108 ‐ ‐ ‐ 108Sharebasedcompensation

11 ‐ ‐ 182 ‐ ‐ 182

Netloss 11 ‐ ‐ ‐ ‐ (5,506) (5,506)Unrealizedforeignexchangetranslationgain

‐ ‐ ‐ 109 ‐ 109


22,111 $52,276 $3,521 $(223)

$(46,521) $9,053

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DataWind Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS years ended March 31, 2016 (in thousands of Canadian dollars except per share data and except where indicated)

The accompanying notes are an integral part of these consolidated financial statements

Note 2016 2015

Cash flows from operating activities Net loss for the year $ (5,506) $ (11,597)Cash flows from operating activities Adjustments for: Foreign exchange translation loss/(gain) 1,151 (789)

Depreciation of property and equipment 7 87 67

Finance Expenses 3,825 631

Share based compensation 11 182 511 (261) (11,177)Changes in non‐cash working capital items Trade and other receivables (15,380) (10,467)

Accounts payable and accrued liabilities 7,936 2,021

Inventories (2,873) (5,580)

Net cash used in operating activities (10,578) (25,203)

Cash flows from investing activities Addition of property and equipment 7 (141) (61)

Net cash used in investing activities (141) (61)

Cash flows from financing activities Issuance of common shares on exercise of warrants 108 26,874

Proceeds of loans during the year 9 6,024 7,148

Loans repaid during the year (1,167) ‐

Interest paid during the year (3,525) (631)

Net cash provided by financing activities 1,440 33,391

Net change in cash and cash equivalents (9,279) 8,127 Cash and cash equivalents – beginning of year 10,698 747 Effect of foreign exchange rates on balances of cash held in foreign currencies (1,189) 1,824

Cash and cash equivalents – end of year 4 230 10,698

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DataWind Inc. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS March 31, 2016 and 2015 (in thousands of Canadian dollars except per share data and except where indicated) 1 Descriptionofbusiness

DataWind Inc. (the "Company" or "DataWind")was incorporated on April 16, 2014 under the Ontario BusinessCorporationsAct and itsheadoffice is locatedat7895TranmereDrive,Suite207,Mississauga,Ontario,Canada.DataWindisapublicly‐tradedcompanylistedontheTorontoStockExchange(TSX:DW).TheCompanyisaprovideroflow‐costInternetconnectivityfortheemergingmarkets.

OnJuly8,2014,andimmediatelypriortothecompletionoftheinitialpublicoffering(“IPO”)ofDataWindsharesonsame date, all issued and outstanding Ordinary shares of DataWind UK Plc. ("DataWind UK"), an entity undercommoncontrolwiththeCompany,wereexchangedforCommonsharesbasedontenDataWindUKOrdinarysharesforoneCommonshareoftheCompany.HoldersofDataWindUKOrdinarysharesbecameshareholdersofDataWindandDatawindUKbecame awholly‐owned subsidiary ofDataWind (the "Pre‐IPOReorganization"). This Pre‐IPOReorganizationhasbeenaccountedforasareorganizationandcapital transactionofDataWindUKsuchthattheconsolidatedfinancialstatementsofDataWindareacontinuationof,andreflect,thehistoricfinancialpositionandresults of operations of DataWind UK retrospectively based on the carrying values and results of operationspresentedintheDatawindUKhistoricconsolidatedfinancialstatements.

2. Basisofpresentation

StatementofcomplianceThe consolidated financial statements have been prepared in accordancewith International Financial ReportingStandards(“IFRS”)asissuedbytheInternationalAccountingStandardsBoard("IASB").TheseauditedconsolidatedfinancialstatementswereapprovedbytheCompany’sBoardofDirectorsonNovember20,2016.AmountsreportedareinthousandsofCanadiandollars,exceptwherenoted.

GoingConcernThesefinancialstatementshavebeenpreparedbasedonthegoingconcernassumption,whichassumestheCompanywillcontinuetooperatefortheforeseeablefutureandwillbeabletorealizeitsassetsanddischargeitsliabilitiesinthe normal course of operations. In assessing whether this assumption is appropriate, management takes intoaccountallavailableinformationaboutthefuture,whichisatleast,butnotlimitedto,twelvemonthsfromtheendofthereportingperiod.ThisassessmentisbaseduponplannedactionsthatmayormaynotoccurforanumberofreasonsincludingtheCompany’sownresourcesandexternalmarketconditions.AsatMarch31,2016,theCompanyhadaworkingcapitalsurplusof$8,835including$230incash.Fortheperiodended March 31, 2016 the company had $5,506 net loss and accumulative deficit of $46,521. The Companyanticipateshavingsufficientfundstodischargeitscurrentliabilitiesandmeetitscorporateadministrativeexpensesforatleastthenexttwelvemonths.However,theCompanymayrequireadditionalfinancing,throughvariousmeansincludingbutnot limited toequity financing, tocontinue itsgrowth inunit’ssale.There isnoassurancethat theCompanywillbesuccessfulinraisingtheadditionalrequiredfunds.Thecarryingamountsofassets,liabilities,revenuesandexpensespresentedintheconsolidatedfinancialstatementsandtheclassificationusedintheconsolidatedstatementsoffinancialpositionhavenotbeenadjustedaswouldberequiredifthegoingconcernassumptionwasnotappropriate.BasisofmeasurementThese consolidated financial statements have been prepared on a historical cost basis except for share‐basedcompensation, which is measured at fair value. Historical cost is generally based upon the fair value of theconsideration given in exchange for assets. The expenses within the consolidated statements of loss andcomprehensivelossarepresentedbyfunction.

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PresentationcurrencyThepresentationcurrencyofCompany’sconsolidatedfinancialstatementsistheCanadiandollar.

While eachof theCompany’s subsidiarieshas its own functional currency, the functional currencyof theparentcompany,DataWindInc., is theCanadiandollar.Mostof therevenues,costofgoodssoldandoperatingexpenseswithinthesubsidiariesaretransactedinacombinationofIndianRupees,BritishPoundsandUSdollars.PresentingtheseconsolidatedfinancialstatementsinCanadiandollarsallowsinvestorstomoreeasilycomparetheCompany’sresultswithmostofitsdirectcompetitorsandlimitsforeigncurrencyfluctuation.

BasisofconsolidationTheconsolidatedfinancialstatementsincludetheaccountsoftheCompanyanditswholly‐ownedsubsidiaries.Theresults of the subsidiaries acquired in year endedMarch 31, 2015 are included from the date of acquisition andonward.Alltransactionsandbalancesbetweenthesecompanieshavebeeneliminatedonconsolidation.Theconsolidatedfinancialstatementsincorporatetheresultsofbusinesscombinationsusingtheacquisitionmethod.Inthestatementoffinancialposition,theacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesareinitiallyrecognised at their fair values at the acquisition date. The results of acquired operations are included in theconsolidatedstatementoflossandcomprehensivelossfromthedateonwhichcontrolisobtained.ThesubsidiariesofDataWindInc.asatMarch31,2016allofwhichhavebeenincludedintheseconsolidatedfinancialstatementsareasfollows:

Name Countryofincorporation Proportionofownership DataWindUKPlc1 UnitedKingdom 100% TabletInvestmentsLtd UnitedKingdom 100% Tablet(Guernsey)InvestmentsLtd Guernsey 100% DataWindLimited UnitedKingdom 100% DataWindNetAccessCorporation Canada 100% DataWind(Pty)Ltd SouthAfrica 100% DataWindInnovationPvt.Ltd. India 99.99% 1EffectiveJuly8,2014,DataWindUKPlchasbeenre‐registeredasDataWindUKLtdasitisnolongerapubliclimitedcompany3. Significantaccountingpolicies

SegmentreportingOperatingsegmentsarereportedinamannerconsistentwiththeinternalreportingusedfortheconsolidatedfinancialstatements.TheCompanyhasdeterminedthatitonlyhasoneoperatingsegment.

ProvisionsProvisionsarerecognizedwhentheCompanyhasapresentobligation,legalorconstructivebecauseofapreviousevent,ifitisprobablethattheCompanywillberequiredtosettletheobligationandareliableestimatecanbemadeoftheobligation.Theamountrecognizedisthebestestimateoftheexpenditurerequiredtosettlethepresentobligationattheend of the reporting period, considering the risks and uncertainties surrounding the obligations. Provisions arereviewedattheendofeachreportingperiodandadjustedtoreflectthecurrentbestestimateoftheexpectedfuturecashflows.

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ForeigncurrencytranslationTheseconsolidated financial statementsarepresented inCanadiandollars,which is theCompany’s functionalandpresentation currency. The functional currencies of the primary operating subsidiaries, being the currency of theprimaryeconomicenvironmentinwhichtheentitiesoperateareBritishPounds(£)andIndianRupees(₨).Itemsincludedinthefinancialstatementsofeachentityaremeasuredusingtheirrespectivefunctionalcurrenciesandforeigncurrencytransactionsareinitiallyrecordedinthefunctionalcurrencyofeachentitybyapplyingtheexchangerateineffectatthedateofthetransaction.Attheendofeachreportingperiodmonetaryitemsarere‐translatedusingtheclosingrate.Theresultingexchangegainsandlossesarerecognizedinthestatementoflossandcomprehensiveloss.Non‐monetaryitemsmeasuredintermsofhistoricalcostaretranslatedattheexchangerateatthedateofthetransactionandnon‐monetaryitemsmeasuredintermsoffairvaluearetranslatedattheexchangerateatthedatewhenthefairvaluewasdetermined.At the end of each reporting period the results and financial position of the subsidiaries are translated into theCompany’sfunctionalandpresentationcurrency.Assetsandliabilitiesaretranslatedattheclosingrate.Revenuesandexpensesaretranslatedusingtheaveragerateforthereportingperiod,asanapproximationtotheexchangerateatthedateofeachtransaction.Allexchangegainsandlossesontranslationareincludedinothercomprehensiveloss.PropertyandequipmentItems of property and equipment are initially recognised at cost. Depreciation is provided on all property andequipmenttowriteofftheircarryingvalueovertheirexpectedusefuleconomiclives.Itisprovidedatthefollowingrates:

propertyandequipment 18%‐20%perannumonadecliningbasisFurnitureandfixture 26%‐31%perannumonadecliningbasisVehicles 39%perannumonadecliningbasisOfficeequipment 26%‐95%perannumonadecliningbasis

An asset’s residual value, useful life and depreciationmethod are reviewed at each financial year and adjusted ifappropriate.Whenpartsofanitemofequipmenthavedifferentusefullives,theyareaccountedforasseparateitems(majorcomponents)ofequipment.Gainsandlossesondisposalofanitemofpropertyandequipmentaredeterminedbycomparingtheproceedsfromdisposalwiththecarryingamountoftheequipmentandarerecognizedinprofitorloss.

FinancialassetsTheCompanyclassifiesitsfinancialassetsintoonecategoryonlyasdiscussedbelow,dependingonthepurposeforwhichtheassetwasacquired.TheCompanyhasnotclassifiedanyofitsfinancialassetsasheldtomaturityandfairvaluethroughprofitandloss.TheCompany’saccountingpolicyusedisasfollows:LoansandreceivablesTheseassetsarenon‐derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Theyariseprincipallythroughtheprovisionofgoodsandservicestocustomers(e.g.tradereceivables).Theyareinitiallyrecognisedatfairvalueplustransactioncoststhataredirectlyattributabletotheiracquisitionorissue,andaresubsequentlycarriedatamortisedcostusingtheeffectiveinterestratemethod,lessprovisionforimpairment.

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Impairmentprovisionsarerecognisedwhenthereisobjectiveevidence(suchassignificantfinancialdifficultiesonthepartofthecounterpartyordefaultorsignificantdelayinpayment)thattheCompanywillbeunabletocollectalloftheamountsdueunderthetermsreceivable,theamountofsuchaprovisionbeingthedifferencebetweenthenetcarryingamountandthepresentvalueofthefutureexpectedcashflowsassociatedwiththeimpairedreceivable.Fortradereceivables,whicharereportednet,suchprovisionsarerecordedinaseparateallowanceaccountwiththelossbeingrecognised within administrative expenses in the consolidated statement of loss and comprehensive loss. Onconfirmationthatthetradereceivablewillnotbecollectable,thegrosscarryingvalueoftheassetiswrittenoffagainsttheassociatedprovision.TheCompany'sloansandreceivablescompriseofcashandcashequivalentsandtradeandotherreceivablesintheconsolidatedstatementoffinancialposition.CashandcashequivalentsCashandcashequivalentsincludescashinhand,depositsheldatcallwithbanksandothershorttermhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless.FinancialliabilitiesTheCompany classifies its financial liabilities inone categoryonly.Other financial liabilities include the followingitems: Loansandborrowingsareinitiallyrecognisedatfairvaluenetofanytransactioncostsdirectlyattributabletotheissue of the instrument. Such interest‐bearing liabilities are subsequentlymeasured at amortised cost using theeffectiveinterestratemethod,whichensuresthatanyinterestexpenseovertheperiodtorepaymentisataconstantrateonthebalanceoftheliabilitycarriedintheconsolidatedstatementoffinancialposition.

Trade payables and other short‐term monetary liabilities, which are initially recognised at fair value andsubsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.

RevenueTheCompanygeneratesrevenuefromtwomainsources,bysellinghardwareandbyprovidingdataservice.Devicesaresoldeitherasstandalone,orbundledwiththeCompany’sproprietaryinternetdeliveryplatform,foroneyear.RevenuefromsalesofdevicesRevenuefromthesalesofdevicesisrecognisedwhentheCompanyhastransferredthesignificantrisksandrewardsofownershiptothebuyeranditisprobablethattheCompanywillreceivethepreviouslyagreeduponpayment.Thesecriteriaaremetasfollows: Atthetimethedeviceispickedupbythethird‐partydistributioncompanyforcashondeliverysales Atthetimewhentheriskandrewardistransferredtocustomers.

Wherea customerhasa rightof return fordefectiveunits, theCompany replaces theunitor givesa credit to thecustomerwhentheunitisreturned.Therevenueandreceivableisreducedbythevalueofreturnedunits.RevenuefromconnectionanddatafeesRevenuereceivedinrespectoftheconnectionanddatafeesisdeferredandrecognisedovertheinitialsubscriptionperiodofoneyear.Theallocationofrevenuesisdeterminedproportionatelybasedonthestandaloneexpectedvalueof eachbundled component.The Internet access componentof revenues relieson theCompany’s core intellectualproperty while the hardware is relatively commoditized. The amount of revenue allocated to data connection isestimatedbasedonindustrialaverage.Provided the amount of revenue can bemeasured reliably and it is probable that the Company will receive anyconsideration,revenueforservicesisrecognisedintheperiodinwhichtheyarerendered.

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Share‐basedcompensationTheCompanyhasastockoptionplanforexecutivesandotherkeyemployees.TheCompanymeasuresandrecognizescompensationexpensebasedonthegrantdatefair‐valueofthestockoptionsissuedusingtheBlack‐Scholespricingmodel.Theoffsettingcreditisrecordedincontributedsurplus.Compensationexpenseiscalculatedseparatelyforeachawardedoption.Awardswithdifferentvestingdatesisconsideredaseparategrantforthecalculationoffairvalueandtheresultingfairvalueisamortizedoverthevestingperiodoftherespectivegrants,basedontheCompany’sestimateofstockoptionsthatwillultimatelyvest.Attheendofeachreportingperiod,theCompanyrevisesitsestimateofthenumberofequityinstrumentsexpectedtovest.Theimpactoftherevisionoftheoriginalestimates,ifany,isrecognizedinprofitorlosssuchthatthecumulativeexpensereflectstherevisedestimate,withacorrespondingadjustmenttotheContributedsurplus.Considerationpaidbyemployeesontheexerciseofoptionsandrelatedamountsofcontributedsurplusarerecordedasissuedcapitalwhenthesharesareissued.ResearchanddevelopmentcostsAllresearchanddevelopmentexpendituresareexpensedasincurredunlessadevelopmentprojectmeetsthecriteriaforcapitalization.Developmentexpendituresarecapitalizedonlyifdevelopmentcostscanbemeasuredreliably,theproductorprocessistechnicallyandcommerciallyfeasible,futureeconomicbenefitsareprobableandtheCompanyintendstoandhassufficientresourcestocompletedevelopmentandtouseorselltheasset.Nointernallygeneratedintangibleassetshavebeenrecognizedtodate.

InventoriesInventoriesareinitiallyrecognisedatcost,andsubsequentlyatthelowerofcostandnetrealisablevalue(theestimatedsellingprice in theordinary courseof business less any applicable sellingexpenses)usingFIFO (first in firstout)method.Costcomprisesallcostsofpurchase,costsofconversionandothercostsincurredinbringingtheinventoriestotheirpresentlocationandcondition.ExternallyacquiredintangibleassetsExternallyacquired intangibleassetsare initially recognisedatcostandsubsequentlyamortisedonastraight‐linebasisovertheirusefuleconomiclives.Amortisation of the asset is includedwith the administration expenses in the consolidated statement of loss andcomprehensiveloss.EarningspershareTheCompanypresentsbasicanddilutedearningspershare(“EPS”)dataforitscommonshares.BasicEPSiscalculatedbydividingtheearningsattributabletocommonshareholdersoftheCompanybytheweightedaveragenumberofcommonsharesoutstandingduringtheperiod.Dilutedearningspershareiscomputedsimilarlytobasicearningspershare,exceptthattheweightedaveragenumberofsharesoutstandingisincreasedtoincludeadditionalsharesfortheeffectsofalldilutivepotentialcommonshares,whichcompriseconvertiblenotes,warrantsandsharesoptionsgrantedtoemployeesanddirectors.Theeffectsofanti‐dilutivepotentialcommonsharesareignoredincalculatingdilutedEPS.

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Equity–OptionsandWarrantsFinancialinstruments(OptionsandWarrants)issuedbytheCompanyareclassifiedasequityonlytotheextentthattheydonotmeetthedefinitionofafinancialliabilityorfinancialasset.TheCompany’scommonsharesareclassifiedas equity instruments. Contributed surplus within equity, includes amounts in connection with share‐basedcompensation.Retainedearningsincludeallcurrentandpriorperiodearnings(losses).IncometaxesTheCompany’sdeferredincometaxassetsandliabilitiesarerecognizedforthefuturetaxconsequencesattributabletotax loss carry forwards, non‐refundable investment tax credits and to differences between the financial statementcarrying amounts of existing assets and liabilities, and their respective tax bases. Deferred income tax assets andliabilitiesaremeasuredusingtaxratesthathavebeenenactedorsubstantivelyenactedappliedtotaxableincomeintheyearsinwhichthosetemporarydifferencesareexpectedtoberecoveredorsettled.Theeffectondeferredincometaxassetsandliabilitiesofachangeofstatutorytaxratesisrecognizedinincomeintheperiodofenactmentorsubstantiveenactment.Deferredincometaxassetsarerecognizedtotheextentitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized.TheCompanyisentitledtocertainCanadianinvestmenttaxcreditsforqualifyingresearchanddevelopmentactivitiesperformedinCanada.Thesecreditscanbeappliedagainstfutureincometaxespayableandaresubjecttoa20‐yearcarryforward period. An estimate of the refundable investment tax credit on scientific research and developmentexpenditures is recorded in theyear theexpendituresare incurredprovided there is reasonableassurance that thecreditswillbereceived.Theexpendituresarereducedbytheamountoftheestimatedinvestmenttaxcredit.CriticalaccountingestimatesandjudgmentsThe preparation of consolidated financial statements in compliance with IFRS requires management to selectappropriateaccountingpoliciesandtomakejudgments,estimatesandassumptionsthataffectthereportedamountsofassetsand liabilitiesat thedateof theconsolidated financialstatements,andthereportedamountsofrevenuesandexpensesduringthereportingperiod.

Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:EstimatesUsefullivesofdepreciableassetsTheusefullivesofdepreciableassetshavebeendeterminedbasedonmanagementestimatedutilityoftheassets.UncertaintiesintheseestimatesrelatetotechnologicalobsolescencethatmaychangetheutilityofcertainsoftwareandITequipment.Share‐basedcompensationTheestimationofshare‐basedcompensationrequirestheselectionofanappropriatevaluationmodelandconsiderationastotheinputsnecessaryforthevaluationmodelchosen.TheCompanyhasmadeestimatesastothevolatilityofitsownshare,theprobablelifeofshareoptionsgrantedandthetimeofexerciseofthoseshareoptions.ThemodelusedbytheCompanyistheBlack‐Scholesvaluationmodel.

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JudgementsDataRevenueWhenproductsalesincludebothhardwarebundledwithinternetaccesstheCompanyhasallocateditsinternetrevenuessuchthata70percentmarginisachievedonthisbusinessline. Thisratioisinlinewithindustrystandardsfordataresale in therespectivegeographiesand in linewith theexpectedreturnsgeneratedat the timeof the initialpublicoffering. The internet access component of revenues relies on the Company’s core intellectual propertywhile thehardwareisrelativelycommoditized.WarrantyclaimsTheCompanygenerallyoffersone‐yearwarrantyonmostofitsproducts.TheCompanydoesnotprovideforanyfuturewarrantyclaimsasanyclaimsarerevertedtothemanufacturer.ThecontractmanufacturersrepairunitsinIndiaatco‐located facilities. Contractmanufacturersprovideone‐yearwarranty termstoDataWindInc.As theonlycostsassociatedwiththewarrantyprocessassumedbyDataWindInc.relatetoshipping,noprovisionsforwarrantyworkhavebeenaccrued.InventoriesInventoriesareinitiallyrecognizedatcost,andsubsequentlyatthelowerofcostandnetrealizablevalue.Managementestimatesthenetrealizablevaluesofinventories,consideringthemostreliableevidenceavailableateachreportingdate.Thefuturerealizationoftheseinventoriesmaybeaffectedbyfuturetechnologyorothermarket‐drivenchangesthatmay reduce future sellingprices. TheCompanyhas provided $94in the year 2016 (2015: nil) against slowmovinginventories.EstimationuncertaintyTheestimateshavebeenappliedinamannerconsistentwiththatinthepriorperiodsandtherearenoknowntrends,commitments,eventsoruncertaintiesthatwebelievewillmateriallyaffectthemethodologyorassumptionsutilizedintheseconsolidatedfinancialstatements.Theestimatesareimpactedbymanyfactors,someofwhicharehighlyuncertain.The interrelatednatureof these factorspreventsus fromquantifying theoverall impactof thesemovementson theCompany’s consolidated financial statements inameaningfulway.Thesesourcesofestimationuncertainty relate invaryingdegreestovirtuallyallassetandliabilityaccountbalances.FuturechangesinaccountingpoliciesIFRS9FinancialInstruments(“IFRS9”)IFRS 9 was issued by the IASB in November 2009 amended on October 28, 2010, will replace IAS 39 FinancialInstruments: Recognition andMeasurement. During the current year, the IASB issued the final version of IFRS 9,incorporatingimpairmentofFinancialInstrumentswiththeclassification,measurementandhedgeaccountingphasesthat had been issued earlier. IFRS 9 uses a single approach to determinewhether a financial asset ismeasured atamortizedcostorfairvalue,replacingthemultiplerulesinIAS39.Financialliabilitiesheldfortradingaremeasuredat"fairvaluethroughnetresults"(“FVTNR”),andallotherfinancialliabilitiesaremeasuredatamortizedcostunlessthefairvalueoptionisapplied.Thestandardproposesalifetimeexpectedlossmodelforimpairmentoftradereceivables.IFRS9istobeappliedretrospectivelyforannualperiodsbeginningonorafterJanuary1,2018,withearlyadoptionpermitted.Atthistime,managementisstillevaluatingtheimpactofIFRS9ontheconsolidatedfinancialstatements.IFRS15RevenuefromContractswithCustomers(“IFRS15”)InMay2014, the IASB issued IFRS15. IFRS15 replaces IAS18Revenue, IAS11ConstructionContracts and relatedInterpretations.Thecoreprincipleoftheguidanceisthatanentityshouldrecognizerevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobe

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entitledinexchangeforthosegoodsorservices.IFRS15willalsoresultinenhanceddisclosuresaboutrevenue,provideguidance for transactions that were not previously addressed comprehensively (for example, service revenue andcontractmodifications)andimproveguidanceformultiple‐elementarrangements.ThisguidanceiseffectiveforannualreportingperiodsbeginningonorafterJanuary1,2018andearlyapplicationispermitted.Thestandardistobeappliedusing one of the following methods: retrospective or modified retrospective with the cumulative effect of initiallyapplyingthestandardasanadjustmenttoopeningequityatthedateofinitialapplication.TheCompanyplanstoadoptIFRS 15 at the beginning of April 1, 2019, and is currently assessing the potential effects of these changes on itsconsolidatedfinancialstatements.IFRS16Leases(“IFRS16”) In January 2016, the IASB issued IFRS 16 that provides a comprehensive model for the identification of leasearrangementsandtheirtreatmentinthefinancialstatementsofbothlesseesandlessors.ItsupersedesIAS17Leasesanditsassociatedinterpretiveguidance.Significantchangesweremadetolesseeaccountingwiththedistinctionbetweenoperatingandfinanceleasesremovedandassetsandliabilitiesrecognizedinrespectofallleases(subjecttolimitedexceptionsforshort‐termleasesandleasesoflowvalueassets).Incontrast,IFRS16doesnotincludesignificantchangestotherequirementsforlessors.IFRS16iseffectiveforannualreportingperiodsbeginningonorafterJanuary1,2019withretroactiveapplicationandwithearlyadoptionpermitted.TheCompanyiscurrentlyevaluatingtheimpactofIFRS16onitsconsolidatedfinancialstatements.

4. Cashandcashequivalents

2016 2015

Cash $230 $1,667

Short‐terminvestments ‐ 9,031

Total $230 $10,698

Allcashandcashequivalentsareheldinhighratedbanks‐BarclaysBankplc,BankofMontrealandHDFCbankinIndia.Cashequivalentsareheldindiversegovernmentbondsandtreasurybills.

5. Tradeandotherreceivables

2016 2015Tradereceivables $29,750 $13,146Allowancefordoubtfuldebts (1,108) (275)Tradereceivables–net 28,642 12,871Otherreceivables 825 1,216

Totalfinancialassetsotherthancashandcashequivalentsclassifiedasloansandreceivables 29,467 14,087Totaltradeandotherreceivables 29,467 14,087Currentportion 29,467 14,087

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6. Inventories 2016 2015Workinprogress 1,613 ‐ Finishedgoods 8,517 7,163Total 10,130 7,163Provisionforslowmovinginventory (94) ‐ Inventories–net 10,036 7,163$41,919(2015‐$25,496)worthofinventoryhasbeenexpensedoutincostofsalesfortheyearendedMarch31,2016.

7. Propertyandequipment

CostBalanceatApril01,2015

AdditionsForeignExchange

Adjustments


Plantandequipment $82 $62 $3 $147

Furnitureandfixture 21 28 ‐ 49

Vehicles 28 ‐ 1 29

Officeequipment 133 51 6 190

Total $264 $141 $10 $415

AccumulateddepreciationBalanceatApril01,2015

Additions

ForeignExchangeAdjustment

s


Plantandequipment $20 $24 $‐ $44

Furnitureandfixture 4 10 ‐ 14

Vehicles 18 4 1 23


Total $108 $87 $2 $197

Netbookvalue $218

CostBalanceatApril01,2014

Additions


s


Plantandequipment $85 $1 $(4) $82

Furnitureandfixture 23 ‐ (2) 21

Vehicles 27 ‐ 1 28


Total $195 $61 $8 $264

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AccumulateddepreciationBalanceatApril01,2014

Additions


s


Plantandequipment $17 $12 $(9) $20

Furnitureandfixture 6 3 (5) 4

Vehicles 13 6 (1) 18

Officeequipment 24 46 (4) 66

Total $60 $67 $(19) $108

Netbookvalue $156

8. Currentliabilities

2016 2015

Tradepayables $13,399 $8,867

Otherpayables 417 1,043

Accruals 1,651 98

Totalliabilitiesmeasuredatamortizedcost 15,467 10,008

Otherpayables‐taxandsocialsecuritypayments 1,784 597

Deferredincome 1,356 66Loansandborrowings(Note9) 12,291 7,273

Totalcurrentliabilities 30,898 17,944

2016 2015

upto3months $29,541 $17,878

3to6months ‐ 66

6to12months 1,357 ‐

Totalcurrentliabilities 30,898 17,9449. Loansandborrowings TherearenoundrawnandcommittedfacilitiesavailabletotheCompany.Asyndicatedgroupofprivateinvestorsagreed

toprovideprivateloanstoTabletInvestmentsLtd.andTablet(Guernsey)InvestmentsLtd.(“theSubsidiaries”)attheflatrateof17%peryearpaidquarterly.Thesedemandloansarerecordedasshort‐termloansbecausethelenderhasarighttodemandrepaymentbyprovidingthreemonths’notice.TheSubsidiariesholdsyndicateddebtof$12,291asatMarch31,2016(2015:$7,273)whichisusedtopurchaseinventory.TheaccruedinterestpayableonthissyndicateddebtatMarch31,2016amountedto$371.Debtof$1,165wasrepaidduringtheyearendedMarch31,2016(2015:$Nil).The Subsidiaries have initiated a legal action against one investor for alleged breaches of such lender’s construedobligationsunderitslendingarrangementwiththeSubsidiariesandisinactivenegotiationswithrepresentativesofthesyndicated group to renegotiate the terms of the facility. The status of the debt and repayment termswill remainuncertainuntilthesenegotiationsarecomplete.OfthetotalamountoutstandingatMarch31,2016,repaymenthasbeendemandedon$5,595of loanswhichweredueandpayable inMarch2016. TheSubsidiaries are indefaultof theserepaymentobligationsandcontinuestocarrythebalanceofthedebtandanyunpaidbutaccruedinterestat17%asacurrent liability. Additional legal claims may be made by the company against certain individuals associated withSubsidiarieswhohaveinterferedwiththesenegotiationsortakenotheractionswhichmayhavecauseddamagetothe

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company.ManagementhasdeterminedthatitmaybenecessarytoplaceSubsidiariesunderadministrationtoandforceamediatedsettlementaspartofthesenegotiations.

10. Incometaxesandinvestmenttaxcredits

Incometaxexpensevariesfromtheamountthatwouldbecomputedbyapplyingthebasicfederalandprovincialtaxratestobeforeincometaxes,shownasfollows:

2016 2015Expectedtaxrates 26.50% 26.50%

Expectedtaxbenefitfromloss (1,459) (3,073)

Increaseintaxesfrompermanentdifferences 65 59

Benefitoflosscarryforwardsandtemporarydifferencesnotrecognized 1,382 2,926

Ratedifferentialontaxjurisdictions 12 88

‐ ‐Inassessingtherealizationofdeferredtaxassets,managementconsiderswhetheritismorelikelythannotthatsomeportionorallthefuturetaxassetswillberealized.Therealizationofdeferredtaxassetsisdependentonthegenerationoffuturetaxableincomeduringtheperiodsinwhichthoselossescanbecarriedforwardandtemporarydifferencesaredeductible.Theamountofthedeferredtaxassetsconsideredrealizablecouldchangemateriallyinthenearterm,basedonfuturetaxableincomeduringthecarry‐forwardperiod.

AtMarch31,2016,deductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditsforwhichnodeferredtaxassetshavebeenrecognizedareattributabletothefollowing:

2016 2015

Taxlosses(i) $50,547 $46,765

SR&EDexpenditures 1,505 ‐

Shareissuancecosts(ii) 738 984

Other 90 ‐

(i) Relatedtotaxlossesthatarenon‐capitalinnature;thesetaxlossesbegintoexpirein2022.(ii) Shareissuancecostswillexpirein2020.

11. Sharecapital

TheCompany is authorised to issue anunlimitednumberof commons shareswithnopar value.On July 8th, 2014,DataWindUK,completedareversetakeoveroftheCanadianentityDataWindInc.andconcurrentlyconsolidateditssharecapitalona10:1basisandissued6,316,000newsharesforgrossproceedsof$30.1M.Thisamountdoesnotincludetheissuancecostsof$5.4M.Inaddition,234,889existingspecialwarrantswereexchangedforcommonsharesofDataWindInc.ona1:1basis(seeconsolidatedstatementofchangesinshareholder’equity).WarrantswereexercisedinNovember2015resultinginissuanceof53,625shares.AsatMarch31,2016,therewere22,111,248commonsharesoutstanding.WarrantsEachwarrantentitlestheholdertopurchaseonecommonshareoftheCompany.TheCompany’soutstandingwarrantsatMarch31,2016are2,752,639(2015:3,662,101).53,625(536,250warrantspre‐10:1consolidation)wereexercisedduring the year. Theweighted average exercise price of the exercisablewarrants is $3.65. As ofMar 31, 2016, theexercisablewarrantsof2,752,639haveanexercisablevalueof$8.5M.OptionPlanTheCompany’sshareoptionscheme(the“Scheme”)wasapprovedonJuly14,2008.UndertheschemetheremunerationcommitteerecommendthegrantingofoptionstoemployeesoftheCompanysubjecttoachievingvariousperformance

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determinedbytheboardofdirectors.Optionsaregrantedwithafixedexercisepriceandhaveavestingperiodof3years.OptionswerevaluedusingtheBlack‐Scholesoptionpricingmodel.OptionswillbesettledbyissuingequitysharesoftheCompany.Thenumbersharesreservedforissuanceunderthestockoptionplanis15%oftheissueoutstandingsharesoftheCompany.AsatMarch31,2016,thereare22,111,248commonshares,3,290,180optionsand2,752,639warrantsoutstanding.

Shares Options WarrantsRestatedtoreflectApril1,2014(10:1)consolidation

15,431,734 2,189,190 3,228,664

SpecialwarrantsissuedQ12015 ‐ ‐ 234,889

Strategicadvisorywarrants ‐ ‐ 508,438SpecialwarrantsconvertedtocommonsharesJuly7,2014

234,889 ‐ (234,889)

IssuedinIPOJuly7,2014 6,316,000 ‐ ‐

Grantedduringfiscalyear2015 ‐ 823,389 ‐

Expiredduringfiscalyear2015 ‐ (67,467) ‐

Exercisedduringfiscalyear2015 75,000 ‐ (75,000)

TotalasatMarch31,2015 22,057,623 2,945,112 3,662,102

*Correction ‐ 67,467 ‐Grantedduringfiscalyear2016 ‐ 296,000 ‐Expiredduringfiscalyear2016 ‐ (18,399) (855,838)

Exercisedduringfiscalyear2016 53,625 ‐ (53,625)

TotalasatMar31,2016 22,111,248 3,290,180 2,752,639

*Managementfoundtheun‐expiredoptions.AreconciliationofoptionmovementsovertheyeartoMarch31,2016isshownbelow:

2016 2015 Weighted Weighted average average exercise exercise Number price Number priceOutstandingatstartofyear 2,945,112 $3.50 2,189,190 $3.24

Grantedduringtheyear 296,000 $2.26 823,389 $3.97Correctionforlastyear 67,467 $6.90 Forfeitedduringtheyear ‐ ‐ ‐ ‐Exercisedduringtheyear ‐ ‐ ‐ ‐Expiredduringtheyear (18,399) ($5.26) (67,467) ($6.90) ____________ ___________ ____________ ___________ Outstandingatendofyear 3,290,180 $3.45 2,945,112 $3.50 ____________ ___________ ____________ ___________ Exercisableatendofyear 2,664,291 $3.55 2,769,190 $3.39

____________ ___________ ____________ ___________

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Thefairvalueperoptiongrantedandtheassumptionsusedinthecalculationareasfollows:

2016 2015 Weighted Weighted

average averageSharepriceatgrantdate $2.26 $2.25Exerciseprice $4.26 $4.75Expectedlifeofoptions(years) 5.00 3.00Expectedvolatility 50% 50%Riskfreerate 0.7% 0.7%Weightedaveragefairvalueperoption $0.98 $0.52

Theexpectedvolatilityisbaseduponpubliclyavailablevolatilitymeasuresofcomparablecompanies.Therisk‐freerateofreturnistheyieldbasedonCanadiangovernmentbondsofatermconsistentwiththeexpectedlifeofoptions.Thetotalchargefortheyearrelatingtoemployeesharebasedpaymentplanswas$182(2015‐$511,000)allofwhichrelatedtoequitysettledshare‐basedpaymenttransactions.AreconciliationofwarrantsmovementsovertheyeartoMarch31,2016isshownbelow:

2016 2015 Weighted Weighted average Average exercise Exercise Number price Number Price

Outstandingatstartofyear 3,662,102 $3.48 3,228,664 $3.24Grantedintheyear ‐ ‐ 508,438 $4.75Exercisedduringtheyear (53,625) ($2.01) (75,000) ($1.88)Expiredduringtheyear (855,838) ($3.03) ‐ ‐ ____________ _________ ____________ ________ Outstandingatendofyear 2,752,639 $3.65 3,662,102 $3.48 ____________ ________ ____________ ________ Exercisableatendofyear 2,752,639 $3.65 3,662,102 $3.48

____________ ________ ____________ ________12. Researchanddevelopment ClaimsforScientificResearchandExperimentalDevelopment(SR&ED)creditsof$696(2015:$Nil)andIndustrial

ResearchAssistanceProgram(IRAP)fundingof$200(2015:$Nil)havebeenrecordedasareductionofresearchanddevelopmentexpenseduringtheyear.

TheCompanyhasunusednon‐refundableinvestmenttaxcreditsof$300(2015‐$153)tooffsetagainstfuturefederal

incometaxes.Thecreditsbegintoexpirein2035.

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13. Administrationcost

2016 2015Salaries $6,130 $3,394Sellingandmarketing 5,113 2,423Travel 1,248 1,182Legalandprofessional* 1,307 819Depreciationofpropertyandequipment 87 67Amortization* 240 30Baddebts 833 25Sharebasedcompensation 182 511Other* 2,508 5,416

$17,648 $13,867*Comparative2015balancesarere‐classifiedfrompublishedfigurestodiscloseamortization,legalandprofessionalcostsdiscretelyfromOthercosts.

14. Financeincomeandexpense

2016 2015

Financeandotherincome(expense) $(6) $124

Financeexpense (3,825) (631)

$(3,831) $(507)15. Relatedparties

DuringtheyearendedMarch31,2016DataWindenteredthefollowingrelatedpartytransactions.Exceptforinventoryfinancing,allamountsowingtorelatedpartieshavebeenpaidduringyearwithnooutstandingbalances.TabletInvestmentsLtd.andTablet(Guernsey)InvestmentsLtd.holdsunsecuredthirdpartysyndicateddebtof$12,291(2015:$7,273)asatMarch31,2016.ThisdebtwasrestructuredinQ32015toaflatrateof17%.TabletInvestmentsLtd. andTablet (Guernsey) InvestmentsLtd.uses thisdebt topurchase inventorywhich it then resells toDataWindInnovationsPvt.Ltd.atamarkuptocovertheinterestandoperatingcostsofTabletInvestments.Atotalinterestof$1,693waspaidduringtheyearendedMarch31,2016(2015:$631)OwnershipofpurchasedinventoryismaintainedwithinTabletInvestmentsPvt.Ltd.untilitissoldtoDataWindInnovationsLtd.TherewasonedirectorincommonwithTabletInvestments, beingViscountNicholasBearsted,whowas also a shareholder in both entities prior to its acquisition.ViscountNicholasBearstedisadirectorandco‐chairmanoftheCompany. RefertoNote9forasummaryoflitigationinvolvingTabletInvestmentsLtd AnOntarionumberedcompanyExternaltransactionswith1003715OntarioInc.,acompanyundercommonownership,areperformedinthenormalcourseofbusinessandrelatetomanagerialservicesprovidedtotheCompanybyRaja,Suneet,andLakhbirTuli.Duringtheyear,theCompanyincurred$972incosts(2015:283).Inadditiontothesecosts,duringtheyear296optionsweregrantedtoLakhbirTuli.Costsof$48relatedtotheoptionshavebeenincludedinadministrationcostintheconsolidatedstatementoflossandcomprehensiveloss..Nofurtheramountsaredue.

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16. Commitmentsandcontingencies

AtMarch31, 2016, theCompanyhadoperating leaseagreements in respectofproperties forwhich thepaymentsextendoverseveralyears.

2016 2015Totalpaymenttoendofleaseundernon‐cancellableoperatingleasesexpiring: Nolaterthanoneyear $222 $150

Laterthanoneyearandnotlaterthan5years $254 $11517. Financialinstruments

Quantitativedisclosuresofthecreditriskexposureinrelationtofinancialassetsaresetoutbelow.

AtMarch31,2016 AtMarch31,2015

FinancialAssetsCarrying

ValueMaximumExposure

CarryingValue

MaximumExposure

Cashandcashequivalents 230 230 10,698 10,698

Tradeandotherreceivables 29,467 29,467 14,087 14,087

Totalfinancialassets $29,697 $29,697 $24,785 $24,785CashandCashEquivalentsinbankAllthecashisheldinhighratedbanks‐BarclaysBankplcandBankofMontrealandHDFC.

TheCompanyisexposedthroughitsoperationstothefollowingfinancialrisks:InterestRateRiskCashandcashequivalentsarenotinvestedinanyfixedinstruments.TheCompanyhasasyndicateddebtfacilitywhichisrepayableon3months’notice.Thefairvalueofthisdebtwillfluctuatewithchangesinprevailinginterestrates,ifthedebtisreplaced.Consequently,theCompanyisexposedtointerestrateriskintheshortterm.ConcentrationRiskAtMarch31,2016,theCompanyhadacustomerwhosetradereceivablebalancesindividuallyrepresented80.27%oftheCompany’stotalaccountsreceivable.TheCompanyhad70%ofitsrevenuefromasinglecustomer.CreditRiskAnalysisTheCompanyhasprovidedfor$1,108(Note5)againstthedoubtfultradereceivables,duringtheyearendingMarch31,2016.TheCompany’smanagementconsidersthatalltheabovefinancialassetsthatarenotimpairedorpastdueforeachoftheMarch31reportingdatesunderreviewareofgoodcreditquality.AtMarch31,2016,theCompanyhascertaintradereceivables thathavenotbeensettledby thecontractualduedatebutarenot considered tobe impaired.TheamountsatMarch31,2016,analysedbythelengthoftimepastdue,are:

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Ageofreceivablesthatarepastduebutnotimpaired 2016 2015

61‐90days 125 198

91‐120days 85 637

>120days 1,727 2,008

Total 1,937 2,843

ForeignexchangeriskForeignexchangeriskariseswhenindividualgroupentitiesentertransactionsdenominatedinacurrencyotherthantheir functional currency. The Company's policy is, where possible, to allow company entities to settle liabilitiesdenominatedintheirfunctionalcurrencywiththecashgeneratedfromtheirownoperationsinthatcurrency.Wheregroupentitieshave liabilitiesdenominated in a currencyother than their functional currency (andhave insufficientreservesofthatcurrencytosettlethem),cashalreadydenominatedinthatcurrencywill,wherepossible,betransferredfromelsewherewithintheCompany.AsatMarch31,2016,theCompanyhasmostofitsreceivablesinIndianRupeeandpayablesinUSdollar,IndianRupee,BritishPoundandEuro.A10%strengtheningintheCanadiandollaragainstthesecurrenciesasatMarch31,2016wouldhavedecreasednetassetsoftheCompanyby$1,056(a10%weakeningwouldhavehadtheequalbutoppositeeffect).This analysis assumes that all other variables remain constant. Foreign currency denominated financial assets andliabilitieswhichexposetheCompanytocurrencyriskinCanadiandollararedisclosedbelowinCanadianDollar: GBP EUR USD INR Total

March31,2016

FinancialAssets 27,404 27,404

FinancialLiabilities 6,240 2,216 15,490 3,645 27,591

TotalExposure (6,240) (2,216) (15,490) 23,759 (187)

March31,2015

FinancialAssets 10,824 10,824

FinancialLiabilities 3,827 2,043 7,160 1,006 14,036

TotalExposure (3,827) (2,043) (7,160) 9,818 (3,212)

Tomonitor thecontinuingeffectivenessof thispolicy, theBoardreceivesamonthly forecast, analysedby themajorcurrenciesheldbytheCompany,ofliabilitiesdueforsettlementandexpectedcashreserves.Liquidityrisk

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Liquidity risk arises from the Company’s management of working capital and the finance charges and principalrepaymentson itsdebt instruments. It is the risk that theCompanywill encounterdifficulty inmeeting its financialobligationsastheyfalldue.TheCompany'spolicy is toensurethat itwillalwayshavesufficientcashtoallowit tomeet its liabilitieswhentheybecomedue.Toachievethisaim,itseekstomaintaincashbalancestomeetexpectedrequirementsforaperiodofatleast45days.TheCompanyalsoseekstoreduceliquidityriskbyfixinginterestrates(andhencecashflows)onaportionofitsborrowings.Thefollowingtablesetsoutthecontractualmaturitiesoffinancialliabilities:

AsatMarch31,2016CarryingAmount

ContractualCashFlows

Upto3months

3to6months

6to12months

Accountspayableandaccruedliabilities $18,607 $18,607 $17,250 $‐ $1,357

Loansandborrowings 12,291 12,291 12,291 ‐ ‐

Total $30,898 $30,898 $29,541 $‐ $1,357

AsatMarch31,2015CarryingAmount

ContractualCashFlows

Upto3months

3to6months

6to12months

Accountspayableandaccruedliabilities $10,671 $10,671 $10,605 $66 $‐

Loansandborrowings 7,273 7,273 7,273 ‐ ‐

Total $17,944 $17,944 $17,878 $66 $‐18. SegmentedInformation

IFRS 8Operating Segments defines an operating segment as (a) a component of an entity that engages in businessactivitiesfromwhichitmayearnrevenuesandincurexpenses(includingrevenuesandexpensesrelatingtotransactionswithother componentsof the sameentity), (b)whoseoperating results are regularly reviewedby theentity’s chiefoperatingdecisionmakertomakedecisionsaboutresourcestobeallocatedtothesegmentandtoassessitsperformanceand (c) forwhichdiscrete financial information is available.Formanagementpurposes theCompany’sactivities areattributable to a single operating segment. Consequently, the Company does not present any operating segmentinformation.TheCompanyoperates threeregionalbusinessunits: India,UK, andCanada;with the Indianunitaccounting for thelargestproportionoftheCompany’sbusiness,generating96.2%ofitsexternalrevenuesfortheyearendedMarch31,2016(2015:80.7%).TheCompany'sreportablesegmentarealignedasoperatingsegmentconsistentwiththeinternalreportingprovidedtothechiefoperatingdecision‐maker.ThechiefoperatingdecisionmakerhasbeenidentifiedasthemanagementteamincludingtheChiefExecutiveOfficer,ChiefOperatingOfficerandtheChiefFinancialOfficer.TheCompanyevaluatesunitperformancebasedonprofitorlossfromoperationscalculatedinaccordancewithIFRSbutexcludingtheeffectsofshare‐basedpayments.

Page | 25

RevenuebygeographicareaThelocationofthecustomerdeterminesthegeographicareasforrevenue.

2016 2015

India 96.2% 57,407 25,469 80.7%

Africa 2.5% 1,483 ‐ 0.0%

NorthAmerica 1.0% 618 5,076 16.1%

Other 0.3% 168 998 3.2%

Total 59,676 31,543

Non‐CurrentAssetsbygeographicarea

Thelocationofthecustomerdeterminesthegeographicareasforrevenue.

2016 2015

India 100.0% 218 156 100.0%

Total 218 156

19. Capitalmanagement

TheCompany’sobjectiveistomaintainsufficientcapitalbasetomaintaininvestor,creditorandcustomerconfidenceandtosustainfuturedevelopmentofthebusinessandprovidetheabilitytocontinueasagoingconcern.ManagementdefinescapitalastheCompany’sshareholders’equity.TheBoardofDirectorsdoesnotestablishquantitativereturnoncapitalcriteriaformanagement.TheCompanycurrentlyhasnotpaidanydividendstoitsshareholders.

AsatMarch31,2016,totalmanagedcapitalwascomprisedofshareholders’equityof$9,100(2015:$14,200).TherewerenochangesintheCompany’sapproachtocapitalmanagementduringtheperiod.CapitalThe Company’s objectivewhenmanaging capital is to ensure that funds are raised in an appropriate, cost‐effectivemanner.TheCompany’sprimaryconcernistomaintainitsabilitytocontinueasagoingconcerntoprovidereturnsforshareholdersandstakeholdersintheCompany.

TheCompanyconsiders its capital to comprise its commonsharecapitalandaccumulateddeficit.Changes toequityduringtheyeararedetailedintheconsolidatedstatementsofchangesinshareholders’equityonpage5.FinancialinstrumentrisksTherehavebeennosubstantivechangesintheCompany’sexposuretofinancialinstrumentrisks,itsobjectives,policiesandprocessesformanagingthoserisksorthemethodsusedtomeasurethemfrompreviousperiodsunlessotherwisestatedinthisnote.

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20. Losspershareattributabletocommonshareholders

YearEndedMarch31,

2016 2015

Netlossfortheyear $(5,506) (11,597)

Netlosspershare Basicanddiluted $(0.25) $(0.57)

Weightedaveragenumberofsharesoutstanding Basic(000) 22,079 20,204

FullydilutedEPSisthesameasBasicEPSbecausethestockoptionsandwarrantswereantidilutivefortheperiod.

For the year endedMarch 31, 2016, the number of shares, options andwarrants that could potentially dilute basicearningspershareinthefuturewerenotincludedinthecomputationofdilutedearningspersharebecausetodosowouldhavebeenanti‐dilutiveduetolosses.

21. Keymanagementpersonnelanddirectorcompensation

Key management personnel are those individuals having authority and responsibility for planning, directing andcontrollingtheactivitiesoftheCompanyandaredefinedastheChiefOfficersoftheCompanyandtheCompany’sBoardofDirectors.TheCompany’scompensationprogramisadministeredbytheBoardofDirectorsandspecificallyprovidesfortotalcompensationforexecutiveofficers,whichisacombinationofbasesalary,performance‐basedincentivesandbenefitprogramsthatreflectaggregatedcompetitivepayconsideringbusinessachievement, fulfillmentof individualobjectivesandoveralljobperformance.Directors,executiveofficersandemployeesparticipateintheCompany’sstockoptionplans(Note11).Thefollowingsummarizeskeymanagementpersonnelanddirectors’compensationfortheyearsendedMarch31,2016and2015:

2016 2015

Salariesanddirectors'fees $1,522 $1,354

Share‐basedpayments(Note11) 182 511

Totalcompensationcost 1,704 1,865 Directorfeeof$155ispayableatyearendedMarch31,2016(2015:$37)22. Subsequentevent

OnApril4,2016,theCompanycompleteda$2.99millionboughtdealfinancing(the“2016Financing”)withHaywoodSecuritiesInc.(“Haywood”).Pursuanttothe2016Financing,atotalof1,495,000units(the“Units”)wereissuedatapriceof$2.00perUnitfortotalaggregateproceedstousofapproximately$2,990.EachUnitconsistedofoneCommonShareandone‐halfofonecommonsharepurchasewarrant(eachwholecommonsharepurchasewarrant,a“2016Warrant”).Each2016WarrantentitlestheholderthereoftoacquireoneCommonShareatanexercisepriceof$2.80foraperiodoftwelvemonthsfollowingclosingofthe2016Financing.

consolidated financial statements of datawind...

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