ConsolidatedFinancialStatementsof

DataWindInc.FortheyearendedMarch31,2015(inthousandsofCanadiandollars)

Page | 1

ContentsIndependentAuditor’sReport 2Consolidatedstatementoffinancialposition 4Consolidatedstatementofcomprehensiveloss 5Consolidatedstatementofchangesinshareholders’equity(deficiency) 6Consolidatedstatementofcashflows 7Notestotheconsolidatedfinancialstatement 8‐26

Page | 2

INDEPENDENT AUDITOR’S 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, 2015, and the consolidated statement of 

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 

Page | 3

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.  

Opinion 

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

position of DataWind Inc. as at March 31, 2015, and  its financial performance and  its cash flows for the 

year then ended in accordance with International Financial Reporting Standards.  

Other Matter  

The financial statements of DataWind Inc. for the year ended March 31, 2014, were audited by another 

auditor who expressed an unmodified opinion on those statements on July 16, 2014. 

 

 

Chartered Professional Accountants, Chartered Accountants 

Licensed Public Accountants 

Ottawa, Ontario 

July 6, 2015 

Page | 4

DataWind Inc. CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at March 31, 2015 (in thousands of Canadian dollars except per share data and except where indicated)  

ASSETS Note 2015 2014

Currentassets

Cashandcashequivalents 4 $10,698 $747

Tradeandotherreceivables 5 14,087 3,620

Inventories 7,163 1,583

31,948 5,950

Non‐currentassets

Propertyandequipment 6 156 135

TotalAssets $32,104 $6,085

LIABILITIES

Currentliabilities

Accountspayableandaccruedliabilities 7 $10,671 $8,650

Loansandborrowings 7,8 7,273 125

TotalLiabilities 17,944 8,775

SHAREHOLDERS’EQUITY(DEFICIENCY)

Sharecapital 10 52,168 25,294

Contributedsurplus 3,339 2,149

Accumulatedothercomprehensiveincome (332) (715)

Deficit

(41,015) (29,418)

TotalShareholders'Equity(Deficiency) 14,160 (2,690)

TotalLiabilitiesandShareholders'Equity $32,104 $6,085

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements              

Page | 5

    

DataWind Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS year ended March 31, 2015 (in thousands of Canadian dollars except per share data and except where indicated)

         

Note 2015 2014

Revenue $31,543 $23,436Costofgoodssold 25,496 20,937Grossprofit 6,047 2,499

Operatingexpenses:Researchanddevelopment 2,370 1,260Administrationcost 11 13,079 5,387IPOtransactioncosts 1,688 ‐ Totaloperatingexpenses 17,137 6,647Operatingloss (11,090) (4,148)Financeandotherincome 12 124 ‐ Financeexpense 12 (631) (351)Lossbeforeincometaxes (11,597) (4,499)Taxexpense 9 ‐ ‐Netloss (11,597) (4,499)

Othercomprehensiveincome,netoftax: Foreignexchangetranslationgain/(loss) 383 (401)

Netcomprehensivelossfortheperiod

(11,214) (4,900)

NetlosspershareBasicanddiluted (0.57) (0.30)Weightedaveragenumberofsharesoutstanding:Basic 20,204,317 14,884,295Fullydiluted 21,393,898 20,302,149

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements

Page | 6

DataWind Inc. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIENCY) year ended March 31, 2015 (in thousands of Canadian dollars except per share data and except where indicated)

 

NoteNumberofShares

ShareCapital

ContributedSurplus

AccumulatedOther

ComprehensiveIncome Deficit

TotalShareholders’

Equity/(Deficiency)

BalanceatMarch31,2013 143,368 $22,773 $1,861 $(314) $(24,919) $(599)Shareissuance 10,949 2,521 2,521

Netloss (4,499) (4,499)Stockbasedcompensation 288 288Foreigncurrencytranslation (401) (401)BalanceatMarch31,2014

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

ExchangewithDatawindUKPlc(1:1basis)

10

Shareconsolidation(10:1basis)

10(138,886) ‐

Shareissuance 10 6,316 25,837 ‐ ‐ 25,837Specialwarrantsconvertedtoshares(1:1basis)

10235 896 679 ‐ ‐ 1,575

Shareissuance 75 141 ‐ ‐ ‐ 141Stockbasedcompensation

10‐ ‐ 511 ‐ ‐ 511

Netloss ‐ ‐ ‐ ‐ (11,597) (11,597)Foreigncurrencytranslation 383 383BalanceatMarch312015

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

$(41,015) $14,160

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements

Page | 7

DataWind Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS year ended March 31, 2015 (in thousands of Canadian dollars except per share data and except where indicated)

Note 2015 2014

Cashflowsfromoperatingactivities

Netlossfortheyear $(11,597) $(4,499)Non‐cashitems:

Exchangegains(losses) (789) ‐Depreciationofpropertyandequipment 6 67 48FinanceExpenses ‐ 348Stockbasedcompensation 10 511 288

(11,808) (3,815)Changesinnon‐cashworkingcapitalitems

Accountsreceivable (10,467) (961)Accountspayableandaccruedliabilities 2,021 4,081Inventories (5,580) (847)Netcashusedinoperatingactivities (25,834) (1,542)Cashflowsfrominvestingactivities

Additionofpropertyandequipmentduringtheyear 6 (61) (44)Netcashusedininvestingactivities (61) (44)Cashflowsfromfinancingactivities

Issuanceofcommonshares 26,874 2,521Loansandborrowings 8 7,148 (2,243)Netcashprovidedbyfinancingactivities 34,022 278Netchangeincashandcashequivalents 8,127 (1,308)Cashandcashequivalents–beginningofyear 747 1,987Exchangegains(losses) 1,824 68Cashandcashequivalents–endofyear 10,698 747SupplementaryInformation

Cashinterestpaid 631 351

Page | 8

DataWind Inc. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT March 31, 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.DataWind is a publicly‐traded company listed on the Toronto Stock Exchange (TSX: DW). The Company is aprovideroflow‐costInternetconnectivityfortheemergingmarkets.

OnJuly8,2014,andimmediatelypriortothecompletionoftheinitialpublicoffering(“IPO”)ofDatawindsharesonsame date, all issued and outstanding Ordinary shares of Datawind UK Plc. ("Datawind UK"), an entity undercommoncontrolwiththeCompany,wereexchangedforCommonsharesonthebasisoftenDatawindUKOrdinarysharesforoneCommonshareoftheCompany.HoldersofDataWindUKOrdinarysharesbecameshareholdersofDataWindandDatawindUKbecameawholly‐ownedsubsidiaryofDataWind(the"Pre‐IPOReorganization").ThisPre‐IPOReorganizationhasbeenaccounted forasa reorganizationandcapital transactionofDataWindUKsuchthat the consolidated financial statements of DataWind are a continuation of, and reflect, the historic financialposition and results of operations of DataWind UK retrospectively based on the carrying values and results ofoperationspresentedintheDatawindUKhistoricconsolidatedfinancialstatements.

2. Basisofpresentation

StatementofcomplianceThe consolidated financial statements have been prepared in accordancewith International Financial ReportingStandards(“IFRS”)asissuedbytheInternationalAccountingStandardsBoard("IASB").TheseauditedconsolidatedfinancialstatementswereapprovedbytheCompany’sBoardofDirectorsonJuly6,2015.AmountsreportedareinthousandsofCanadiandollars,exceptwherenoted.

BasisofmeasurementThese consolidated financial statements have been prepared on a historical cost basis except for stock‐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 financial statements ofcomprehensivelossarepresentedbyfunction.

ChangeinPresentationcurrencyThepresentationcurrencyofCompany’sconsolidatedfinancialstatementsistheCanadiandollar.Previousyear’sfigureswereinBritishPounds(£),whichhavebeenconvertedtoCanadiandollarstofacilitatecomparison.

While eachof theCompany’s subsidiarieshas its own functional currency, the functional currencyof theparentcompany,DataWind Inc., is the Canadian dollar. Themajority of the revenues, cost of goods sold and operatingexpenseswithinthesubsidiariesaretransactedinacombinationofIndianrupeesandUSdollars.Presentingtheseconsolidated financial statements in Canadian dollars allows investors to more easily compare the Company’sresults with most of its direct competitors and limits foreign currency fluctuation. Refer to note 15 for thefunctionalcurrenciesofeachofthesubsidiaries.

Page | 9

BasisofconsolidationTheconsolidatedfinancialstatementsincludetheaccountsoftheCompanyanditswholly‐ownedsubsidiaries.Theresultsofthesubsidiariesacquiredin2015areincludedfromthedateofacquisitionandonward.Alltransactionsandbalancesbetweenthesecompanieshavebeeneliminatedonconsolidation.Theconsolidatedfinancialstatementsincorporatetheresultsofbusinesscombinationsusingthepurchasemethod.In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities areinitiallyrecognisedattheirfairvaluesattheacquisitiondate.Theresultsofacquiredoperationsareincludedintheconsolidatedstatementofcomprehensivelossfromthedateonwhichcontrolisobtained.ThesubsidiariesofDatawindInc.asatMarch31,2015allofwhichhavebeenincludedintheseconsolidatedfinancialstatementsareasfollows:

Name Countryofincorporation Proportionofownership DatawindUKPlc1 UnitedKingdom 100% TabletInvestmentsLtd UnitedKingdom 100% Tablet(Guernsey)InvestmentsLtd Guernsey 100% DataWindLimited UnitedKingdom 100% DataWindNetAccessCorporation Canada 100% DataWindInnovationPvt.Ltd. India 99.99% 1EffectiveJuly8,2014,DatawindUKPlchasbeenre‐registeredasDatawindUKLtdasitisnolongerapubliclimitedcompany

Duringtheperiod,theCompanypurchasedanadditional499sharesinDataWindInnovationsPvt.Ltd,bringingthetotalownershipto99.99%anditpurchasedTabletInvestmentsLtd.atcarryingvaluetobetterreportthisfinancingvehicleasaconsolidatedunitoftheCompany

Acquisitionsduringtheperiod

a) DatawindInc.acquired100%ofTablet InvestmentsLtd. (UK)onDecember31,2014,arelatedcompanywhoseonly activitywas toprovide inventory financing toDatawind InnovationsPvt. Ltd at anominal valueof $6 (sixdollars).

Fairvalueofconsiderationamountpaid $’000

Recognizedamountsofidentifiableassetsacquiredandliabilitiesassumed:

Cashandcashequivalents 354Tradeandotherreceivables 19,853Tradeandotherpayables (14,315)Borrowings (5,892)Totalidentifiablenetassets/(liabilities) NilGoodwill NilThecarryingvalueofidentifiableassetsacquiredandliabilitiesassumedapproximatetheirfairvalues.

Page | 10

b) DatawindInc.acquired100%ofTablet(Guernsey)InvestmentsLtd.onJanuary1,2015,arelatedcompanywhoseonlyactivitywas toprovide inventory financing toDatawind InnovationsPvt.Ltdatanominalvalueof$4(fourdollars).

Fairvalueofconsiderationamountpaid $’000

Recognizedamountsofidentifiableassetsacquiredandliabilitiesassumed:

Inventories 307Tradeandotherreceivables 1,561Tradeandotherpayables (1,868)

Totalidentifiablenetassets/(liabilities) NilGoodwill NilThecarryingvalueofidentifiableassetsacquiredandliabilitiesassumedapproximatetheirfairvalues.

3. SignificantaccountingpoliciesForeigncurrencytranslationTheseconsolidated financial statementsarepresented inCanadianDollars,which is theCompany’s functionalandpresentation currency. The functional currency for the subsidiaries, being the currency of the primary economicenvironmentinwhichtheentitiesoperatesareBritishPounds(£)andIndianRupees(₨).Items included in the financialstatementsofeachentityaremeasuredusingtheirrespective functionalcurrenciesand foreign currency transactions are initially recorded in the functional currency of each entity by applying theexchange rate ruling at the date of the transaction. At the end of each reporting period monetary items are re‐translatedusingtheclosingrate.Allexchangegainsand lossesare includedinothercomprehensive incomeinthefinancialstatements.Non‐monetaryitemsmeasuredintermsofhistoricalcostaretranslatedattheexchangerateatthedateofthetransactionandnon‐monetaryitemsmeasuredintermsoffairvaluearetranslatedattheexchangerateatthedatewhenthefairvaluewasdetermined.AttheendofeachreportingperiodtheresultsandfinancialpositionofthesubsidiaryaretranslatedintotheGroup’spresentationcurrency.Assetsandliabilitiesaretranslatedattheclosingrate.Revenuesandexpensesaretranslatedusing the average rate for the reporting period, as an approximation to the exchange rate at the date of eachtransaction. All exchange gains and losses on translation are included in other comprehensive income andaccumulatedintheforeigncurrencytranslationreserve.

Page | 11

PropertyandequipmentItemsofpropertyandequipmentareinitiallyrecognisedatcost.Depreciationisprovidedonallotheritemsofofficeand computer equipment so as to write off their carrying value over their expected useful economic lives. It isprovidedatthefollowingrates:

Officeandcomputerequipment 33%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,dependingonthepurposeforwhich the assetwas acquired.TheGrouphasnot classified anyof its financial assets asheld tomaturity and fairvaluethroughprofitandloss.TheCompanyaccountingpolicyusedisasfollows:LoansandreceivablesTheseassetsarenon‐derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Theyariseprincipallythroughtheprovisionofgoodsandservicestocustomers(e.g.tradereceivables).Theyareinitiallyrecognisedatfairvalueplustransactioncoststhataredirectlyattributabletotheiracquisitionorissue,and are subsequently carried at amortised cost using the effective interest rate method, less provision forimpairment.Impairmentprovisionsarerecognisedwhenthereisobjectiveevidence(suchassignificantfinancialdifficultiesonthepartofthecounterpartyordefaultorsignificantdelayinpayment)thattheCompanywillbeunabletocollectalloftheamountsdueunderthetermsreceivable,theamountofsuchaprovisionbeingthedifferencebetweenthenetcarryingamountandthepresentvalueofthefutureexpectedcashflowsassociatedwiththeimpairedreceivable.Fortradereceivables,whicharereportednet,suchprovisionsarerecordedinaseparateallowanceaccountwiththelossbeing recognised within administrative expenses in the consolidated statement of comprehensive loss. Onconfirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written offagainsttheassociatedprovision.TheCompany'sloansandreceivablescomprisetradeandotherreceivablesintheconsolidatedstatementoffinancialposition.CashandcashequivalentsCashandcashequivalentsincludescashinhand,depositsheldatcallwithbanksandothershorttermhighlyliquidinvestmentswithoriginalmaturitiesofsixmonthsorless.

Page | 12

FinancialliabilitiesTheGroupclassifiesitsfinancialliabilitiesinonecategoryonly.Otherfinancialliabilitiesincludethefollowingitems: Loansandborrowingsareinitiallyrecognisedatfairvaluenetofanytransactioncostsdirectlyattributabletotheissue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using theeffectiveinterestratemethod,whichensuresthatanyinterestexpenseovertheperiodtorepaymentisataconstantrateonthebalanceoftheliabilitycarriedintheconsolidatedstatementoffinancialposition. Trade payables and other short‐term monetary liabilities, which are initially recognised at fair value andsubsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.RevenueRevenuefromsalesofgoodsRevenuefromthesalesofgoodsisrecognisedwhentheCompanyhastransferredthesignificantrisksandrewardsofownership to thebuyerand it isprobable that theGroupwill receive thepreviouslyagreeduponpayment.Thesecriteriaareconsideredtobemetasfollows: Atthetimethedeviceispickedupbythethirdpartydistributioncompanyforcashondeliverysales Atthetimewhentheretailerreceivesdeliveryforretailsales.

Wherea customerhasa rightof return fordefectiveunits, theCompany replaces theunitor givesa credit to thecustomerwhentheunitisreturned.Defectiveunitsareaggregatedandforwardedtotheirrespectivemanufacturerforwarrantyreplacementwith theCompany’scontractmanufacturersonamonthlybasis.ContractmanufacturersprovideoneyearwarrantytermstoDatawindInc.Returnedgoodsdonotattractdutiesortariffsuponre‐entry.AstheonlycostsassociatedwiththewarrantyprocessassumedbyDatawindInc.relatetoshipping,noprovisionsforwarrantyworkhavebeenaccrued.RevenuefromconnectionanddatafeesRevenuereceivedinrespectoftheconnectionanddatafeesisdeferredandrecognisedovertheinitialsubscriptionperiodofoneyear.Provided the amount of revenue can be measured reliably and it is probable that the Group will receive anyconsideration,revenueforservicesisrecognisedintheperiodinwhichtheyarerendered.Share‐basedcompensationThe Company has a stock option plan for executives and other key employees. The Company measures andrecognizes compensation expense based on the grant date fair‐value of the stock options issued using the Black‐Scholespricingmodel.Theoffsettingcreditisrecordedincontributedsurplus.Compensationexpenseisrecordedonastraight‐linebasisoverthevestingperiod,basedontheCompany’sestimateofstockoptions thatwillultimatelyvest.Ateachreportingperiod,theCompanyrevisesitsestimateofthestockoptionsexpectedtovest.Theimpactonthechangeinestimate,ifany,isrecognizedovertheremainingvestingperiod.Considerationpaidbyemployeesontheexerciseofoptionsandrelatedamountsofcontributedsurplusarerecordedas issuedcapitalwhenthesharesareissued.ResearchanddevelopmentcostsAllresearchanddevelopmentexpendituresareexpensedasincurredunlessadevelopmentprojectmeetsthecriteriaforcapitalization.Developmentexpendituresarecapitalizedonlyifdevelopmentcostscanbemeasuredreliably,theproductorprocessistechnicallyandcommerciallyfeasible,futureeconomicbenefitsareprobableandtheCompanyintendstoandhassufficientresourcestocompletedevelopmentandtouseorselltheasset.Nointernallygeneratedintangibleassetshavebeenrecognizedtodate.

Page | 13

InventoriesInventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value usingweightedaverageprice.Costcomprisesallcostsofpurchase,costsofconversionandothercostsincurredinbringingtheinventoriestotheirpresentlocationandcondition.ExternallyacquiredintangibleassetsExternallyacquired intangibleassetsare initially recognisedatcostandsubsequentlyamortisedonastraight‐linebasisovertheirusefuleconomiclives.Amortisation of the asset is included with the administration expenses in the consolidated statement ofcomprehensiveincome.ForeigncurrencyAllfigurespresentedinthefinancialstatementsandtabulardisclosurestothefinancialstatementsarereflectedinCanadiandollars,whichisthefunctionalcurrencyoftheCompany.Foreign currency transactions are translated into Canadian dollars at exchange rates in effect on the date of thetransactions.MonetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthestatementoffinancialpositiondatearetranslatedtoCanadiandollarsattheforeignexchangerateapplicableatthatdate.Realizedandunrealizedexchangegainsandlossesarerecognizedthroughprofitorloss.Non‐monetaryassetsandliabilitiesthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedusingtheexchangerateatthedateofthetransaction.AssetsandliabilitiesofentitieswithfunctionalcurrenciesotherthanCanadiandollarsaretranslatedattheyearendratesofexchange,andtheresultsoftheiroperationsaretranslatedattheexchangeratesprevailingatthedatesoftransactions.Theresultingtranslationadjustmentsareincludedinaccumulatedothercomprehensiveincome(loss)inequity.

EarningspershareThe Company presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS iscalculatedbydividingtheearningsattributable tocommonshareholdersof theCompanybytheweightedaveragenumberofcommonsharesoutstandingduringtheperiod.Dilutedearningspershareiscomputedsimilarlytobasicearningspershare,exceptthattheweightedaveragenumberofsharesoutstandingisincreasedtoincludeadditionalsharesfortheeffectsofalldilutivepotentialcommonshares,whichcompriseconvertiblenotes,warrantsandsharesoptions granted to employees and directors. The effects of anti‐dilutive potential common shares are ignored incalculatingdilutedEPS.Sharecapital–OptionsandWarrantsFinancialinstruments(OptionsandWarrants)issuedbytheCompanyareclassifiedasequityonlytotheextentthattheydonotmeetthedefinitionofafinancialliabilityorfinancialasset.TheCompany’scommonsharesareclassifiedasequityinstruments.IncometaxesTheCompany’sdeferredincometaxassetsandliabilitiesarerecognizedforthefuturetaxconsequencesattributabletotax loss carry forwards and to differences between the financial statement carrying amounts of existing assets andliabilities,andtheirrespectivetaxbases.Deferredincometaxassetsandliabilitiesaremeasuredusingtaxratesthathave been enacted or substantively enacted applied to taxable income in the years in which those temporarydifferencesareexpectedtoberecoveredorsettled.Theeffectondeferredincometaxassetsandliabilitiesofachange

Page | 14

ofstatutorytaxratesisrecognizedinincomeintheperiodofenactmentorsubstantiveenactment.Deferredincometaxassetsarerecognizedtotheextentitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized.CriticalaccountingestimatesandjudgmentsThe preparation of consolidated financial statements in compliance with IFRS requires management to selectappropriateaccountingpoliciesandtomakejudgments,estimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesatthedateoftheconsolidatedfinancialstatements,andthereportedamountsofrevenuesandexpensesduringthereportingperiod.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:WarrantyclaimsThe Group generally offers one‐year warranties on most of its products. The Group has not provided any futurewarrantyclaimsasanyclaimswillberevertedbacktothemanufacturer.InventoriesInventoriesareinitiallyrecognizedatcost,andsubsequentlyatthelowerofcostandnetrealizablevalue.TheGrouphasprovidedagainstalloldstockofdevicesandcomponentswhichdonotrelatetothenewTabletdevices.Thetotalprovisionamountstonilintheyear2015(2014:nil).ProvisionsProvisionsarerecognizedwhentheCompanyhasapresentobligation, legalorconstructiveasaresultofapreviousevent,ifitisprobablethattheCompanywillberequiredtosettletheobligationandareliableestimatecanbemadeoftheobligation.Theamountrecognizedisthebestestimateoftheexpenditurerequiredtosettlethepresentobligationat the end of the reporting period, taking into account the risks and uncertainties surrounding the obligations.Provisionsarereviewedat theendofeachreportingperiodandadjusted toreflect thecurrentbestestimateof theexpectedfuturecashflows.EstimationuncertaintyCritical accounting policies and estimates utilized in the normal course of preparing the Company’s consolidatedfinancial statementsrequire thedeterminationof futurecash flowsutilized inassessingnetrecoverableamountsofaccountreceivableandnetrealizablevaluesofinventory;usefullives;allowanceforbaddebt;usefullivesofpropertyandequipment;provisionforinventoryobsolescence,stock‐basedcompensationandmeasurementofdeferredtaxes.In making estimates, management relies on external information and observable conditions where possible,supplementedbyinternalanalysiswhererequired.These estimates have been applied in amanner consistentwith that in the prior periods and there are no knowntrends, commitments,eventsoruncertainties thatwebelievewillmateriallyaffect themethodologyorassumptionsutilized in these consolidated financial statements. The estimates are impactedbymany factors, someofwhich arehighly uncertain. The interrelated nature of these factors prevents us from quantifying the overall impact of thesemovements on the Company’s consolidated financial statements in a meaningful way. These sources of estimationuncertaintyrelateinvaryingdegreestovirtuallyallassetandliabilityaccountbalances.

Page | 15

FuturechangesinaccountingpoliciesIFRS9FinancialInstruments(“IFRS9”)IFRS9wasissuedbytheIASBinNovember2009andrevisedonOctober28,2010,andwillreplaceIAS39FinancialInstruments: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.Thecoreprincipleoftheguidanceisthatanentityshouldrecognizerevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitled in exchange for those goods or services. IFRS 15 will also result in enhanced disclosures about revenue,provideguidancefortransactionsthatwerenotpreviouslyaddressedcomprehensively(forexample,servicerevenueandcontractmodifications)and improveguidance formultiple‐elementarrangements.Thisguidance iseffective forreporting periods beginning on or after January 1, 2017 and early application is permitted. The standard is to beapplied using one of the following methods: retrospective or modified retrospective with the cumulative effect ofinitiallyapplyingthestandardasanadjustmenttoopeningequityatthedateofinitialapplication.TheCompanyplansto adopt IFRS15beginning January1, 2017, and is currently assessing thepotential effects of these changeson itsconsolidatedfinancialstatements.

4. CashandCashEquivalents

2015 2014

Cash $1,667 $747

Short‐terminvestments 9,031 ‐

Total $10,698 $747Allcashandcashequivalentsareheldinhighratedbanks‐BarclaysBankplc,BankofMontrealandHDFCbankinIndia.Cashequivalentsareheldindiversegovernmentbondsandtreasurybillstoensuremaximuminsurancecoverage.

5. Tradeandotherreceivables

2015 2014Tradereceivables $12,871 $3,620Provisionagainsttradereceivables ‐ ‐Tradereceivables–net 12,871 3,620Otherreceivables 1,216 ‐

Totalfinancialassetsotherthancashandcashequivalentsclassifiedasloansandreceivables 14,087 3,620

Page | 16

Totaltradeandotherreceivables 14,087 3,620Currentportion 14,087 3,620

6. Propertyandequipment

Cost Balanceat AdditionsForeignExchange

AdjustmentsBalanceat

01‐Apr‐14 01‐Mar‐15

Propertyandequipment 195 61 8 264

Total $195 $61 8 $264

Accumulateddepreciation Balanceat DepreciationForeignExchange

AdjustmentsBalanceat

01‐Apr‐14 31‐Mar‐15

Propertyandequipment $60 $67 (19)

$108

Total $60 $67 (19) $108

NetBookValue $156

Page | 17

Cost Balanceat AdditionsForeignExchange

AdjustmentsBalanceat

01‐Apr‐13 31‐Mar‐14

2014

Propertyandequipment $151 44 ‐

$195

Total $151 $44 ‐ $195

Accumulateddepreciation Balanceat DepreciationForeignExchange

AdjustmentsBalanceat

01‐Apr‐13 31‐Mar‐14

Propertyandequipment $8 $48 $4 $60

Total $8 $48 $4 $60

NetBookValue $135

7. CurrentLiabilities

2015 2014

Tradepayables $8,867 $8,028

Otherpayables 1,043 37

Accruals 98 385

Totalliabilitiesmeasuredatamortizedcost 10,008 8,450

Otherpayables‐taxandsocialsecuritypayments 597 35

Deferredincome 66 165Loansandborrowings(Note8) 7,273 125

Totalcurrentliabilities 17,944 8,775

2015 2014

upto3months $17,878 $8,738

3to6months 66 37

6to12months ‐ ‐

Currentportion 17,944 8,775

Page | 18

8. Loansandborrowings There are no undrawn and committed facilities available to the Company. A syndicated group of private investors

agreedtoprovideprivateloanstoTabletInvestmentsLtd.andTablet(Guernsey)InvestmentsLtd.at4%per56dayscycle(orper8weekspaymentfrequency).AfteracquisitionofthesecompaniesonDecember31,2014andJanuary1,2015asdescribed inNote2, theCompany renegotiated loansat the flat rateof 17%peryearpaidquarterly.Theseloansarerecordedasshort‐termloansbecausenorepaymenttermsareagreedwithinvestors.

9. Incometaxesandinvestmenttaxcredits

Incometaxexpensevariesfromtheamountthatwouldbecomputedbyapplyingthebasicfederalandprovincialtaxratestobeforeincometaxes,shownasfollows:

2015 2014

Expectedtaxrates 26.50% 26.50%

Expectedtaxbenefitfromloss (3,073) (1,192)

Increase(decrease)intaxesfrom

Permanentdifferences 59 76Benefitoflosscarryforwardsandtemporarydifferencesnotrecognized 2,926 958

Ratedifferentialontaxjurisdictions 88 158

‐ ‐Inassessingtherealizationofdeferredtaxassets,managementconsiderswhetheritismorelikelythannotthatsomeportion or all of the future tax assets will be realized. The realization of deferred tax assets is dependent on thegenerationof future taxable incomeduring theperiods inwhich those lossescanbecarried forwardand temporarydifferencesaredeductible.Theamountofthedeferredtaxassetsconsideredrealizablecouldchangemateriallyinthenearterm,basedonfuturetaxableincomeduringthecarry‐forwardperiod.

AtMarch31,2015,deductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditsforwhichnodeferredtaxassetshavebeenrecognizedareattributabletothefollowing:

2015 2014

Taxlosses(i) 46,765

36,430 Deductibletemporarydifferences 984 ‐

(i) Relatedtotaxlossesthatarenon‐capitalinnature;thesetaxlossesbegintoexpirein2022.

10. Sharecapital

OnJuly8th,2014,DatawindUK,completedareversetakeoveroftheCanadianentityDatawindInc.andconcurrentlyconsolidated its share capital on a 10:1 basis and issued 6,316,000 new shares for gross proceeds of $30.1M. Thisamountdoesnotincludetheissuancecostsof$5.4M.Inaddition,234,889existingspecialwarrantswereexchangedforcommonsharesofDatawindInc.ona1:1basis(seeconsolidatedstatementofchangesinequity).Inaddition,warrantswere exercised inDecember2014adding an additional 75,000 shares. As atMarch31, 2015, there are22,057,623commonsharesoutstanding.

Page | 19

WarrantsEachwarrantentitlestheholdertopurchaseonecommonshareoftheCompany.TheCompany’soutstandingwarrantsatMarch31, 2015are3,662,101 (March31, 201432,286,640).During theyear75,000 (750,000warrantspre10:1consolidation)exercisedonDecember23,2014and508,438advisorywarrantswere issued inconjunctionwith thefinancing.OptionPlanThe Company’s share option scheme (the “Scheme”) was approved on July 14th, 2008. Under the scheme theremunerationcommitteerecommendthegrantingofoptions toemployeesof thegroupsubject toachievingvariousperformance determined by the board of directors. Options are granted with a fixed exercise price and have acontractuallifeof10yearsandvestingperiodof3years.OptionswerevaluedusingtheBlack‐Scholesoptionpricingmodel.OptionswillbesettledbyissuingequitysharesoftheCompany.AsatMarch31,2015,thereare22,057,623commonshares,2,945,112optionsand3,662,102warrantsoutstanding.

Share Options Warrants

BeforeIPOApril1,2014 154,317,346 21,891,900 32,286,640

Restatedtoreflect10:1consolidation 15,431,734 2,189,190 3,228,664

StrategicAdvisoryWarrants ‐ ‐ 508,438

SpecialWarrantsJuly7,2014 234,889 ‐ ‐

IssuedinIPOJuly7,2014 6,316,000 ‐ ‐

Grantedduringtheyear ‐ 823,389 ‐

Exercised 75,000 ‐ (75,000)

Expiredduringtheyear ‐ (67,467) ‐

TotalAsonMarch31,2015 22,057,623 2,945,112 3,662,102Areconciliationofoptionmovementsovertheyearto31March2015isshownbelow:

2015 2014 Weighted Weighted average Average exercise Exercise Number price Number Price

Outstandingatstartofyear 21,891,900

$0.32

21,891,900

$0.32

Restatedtoreflect10:1consolidation

2,189,190 $3.24

Grantedintheyear 823,389 $3.97 Forfeitedduringtheyear ‐ ‐ Exercised ‐ ‐ Expiredduringtheyear (67,467) ($6.90) ____________ ___________ _____________ ________ Outstandingatendofyear 2,945,112 $3.50 21,891,900 $0.32 ____________ ___________ _____________ ________ Exercisableatendofyear 2,769,190 $3.39 21,891,900 $0.32

____________ ___________ _____________ ________

Page | 20

Thefairvalueperoptiongrantedandtheassumptionsusedinthecalculationareasfollows:

2015

Sharepriceatgrantdate $2.25 Weightedaverageexerciseprice $4.75 Weightedaveragevestingperiod(years) 3.00 Expectedvolatility 50% Riskfreerate 0.7% Weightedaveragefairvalueperoption $0.52

Theexpectedvolatilityisbaseduponpubliclyavailablevolatilitymeasuresofcomparablecompanies.TheriskfreerateofreturnistheyieldbasedonCanadiangovernmentbondsofatermconsistentwiththeoptionlife.Thetotalchargefortheyearrelatingtoemployeesharebasedpaymentplanswas$511,000(2014‐$288,000)allofwhichrelatedtoequitysettledshare‐basedpaymenttransactions.

Areconciliationofwarrantsmovementsovertheyearto31March2015isshownbelow:

2015 2014 Weighted Weighted average Average exercise Exercise Number price Number Price

Outstandingatstartofyear 32,286,640

$0.32

32,286,640

$0.32

OptionconsolidationafterIPOJuly7,2014

3,228,664

$3.24

Grantedintheyear 508,438 $4.75 Exercised (75,000) ($1.88) ____________ ________ _____________ ________ Outstandingatendofyear 3,662,102 $3.48 32,286,640 $0.32 ____________ ________ _____________ ________ Exercisableatendofyear 3,662,102 $3.48 32,286,640 $0.32

____________ ________ _____________ ________

Page | 21

11. Administrationcost

2015 20144Salaries $3,394 $608Sellingandmarketing 2,423 673Travel 1,182 179Depreciationofpropertyandequipment 67 48Baddebts 25 ‐Sharebasedcompensation 511 288Other 5,477 3,591

$13,079 $5,38712. Financeincomeandexpense

2015 2014

Interestincome $124 $‐

Interestexpense (631) (351)

$(507) $(351)13. Relatedparties

DuringtheyearDataWindenteredintothefollowingrelatedpartytransactions.Withtheexceptionofinventoryfinancing,allamountsowingtorelatedpartieshavebeenpaidduringtheyearwithnooutstandingbalances.

Tablet Investments holds syndicated debt used to purchase inventory on our behalf in exchange for 5% ofinventory costs, which we remitted to Tablet Investments after cash payment was received in full for ourdevices.OwnershipofpurchasedinventorywasmaintainedwithinTabletInvestments.WehadonedirectorincommonwithTabletInvestments,beingViscountNicholasBearsted,whowasalsoashareholderinbothentitiespriortoitsacquisition. DatawindResearchInc.ExternaltransactionswithDatawindResearchInc.,acompanywhichis100%ownedbyadirectoroftheCompany,areperformedinthenormalcourseofbusinessandrelatetothepurchaseofproductdevelopmentservices.

Saleofgoods PurchaseofR&DServices

AmountsowedbyRelated

Party

AmountowedbyRelated

Party $’000 $’000 $’000 $’000

Yearended31March2015 ‐ Nil‐ ‐ ‐Yearended31March2014 ‐ 1,496 ‐ ‐

Page | 22

1003161OntarioInc.Externaltransactionswith1003161OntarioInc.,acompanyundercommonownership,areperformedinthenormalcourseofbusinessandrelatetomanagerialservicesprovidedtotheGroupbyRaja,Suneet,andLakhbirTuli.Duringtheyear,theCompanyincurred$283,000incosts(2014:nil).Nofurtheramountsaredue.

14. CommitmentsandContingencies

AtMarch31, 2015 theCompanyhadoperating lease agreements in respect of properties forwhich thepaymentsextendoveranumberofyears.

2015 2014Totalpaymenttoendofleaseundernon‐cancellableoperatingleasesexpiring:

Nolaterthanoneyear $150 $43

Laterthanoneyearandnotlaterthan5years $115 $3115. Financialinstruments

Quantitativedisclosuresofthecreditriskexposureinrelationtofinancialassetsaresetoutbelow.

AtMarch31,2015 AtMarch31,2014

FinancialAssetsCarryingValue

MaximumExposure

CarryingValue

MaximumExposure

Cashandcashequivalents 10,698 10,698 747 747

Tradeandotherreceivables 14,087 14,087 3,620 3,620

Totalfinancialassets $24,785 $24,785 $4,367 $4,367CashinbankAllthecashisheldinhighratedbanks‐BarclaysBankplcandBankofMontrealandHDFC.

TheCompanyisexposedthroughitsoperationstothefollowingfinancialrisks:Creditrisk

TheCompany’smaximumexposuretocreditriskinrelationtotradereceivablesisequaltothecarryingvalueoftradereceivables.TheCompanydoesnotholdanycollateralorothercreditenhancementsassecurityoverthesebalances.ThemajorityoftheCompany’stradereceivablesareduefromcustomerswithwhomtheCompanyhashadabusinessrelationshipformanyyears.Creditriskalsoarisesfromcashandcashequivalentsanddepositswithbanksandfinancialinstitutions.Forbanksandfinancialinstitutions,onlyindependentlyratedpartieswithreasonableratingareaccepted.

Page | 23

ForeignexchangeriskForeignexchangeriskariseswhenindividualgroupentitiesenterintotransactionsdenominatedinacurrencyotherthantheirfunctionalcurrency.TheCompany'spolicyis,wherepossible,toallowcompanyentitiestosettleliabilitiesdenominatedintheirfunctionalcurrencywiththecashgeneratedfromtheirownoperationsinthatcurrency.Wheregroupentitieshave liabilitiesdenominated in a currencyother than their functional currency (andhave insufficientreserves of that currency to settle them), cash already denominated in that currency will, where possible, betransferredfromelsewherewithintheCompany.Inordertomonitorthecontinuingeffectivenessofthispolicy,theBoardreceivesamonthlyforecast,analysedbythemajorcurrenciesheldbytheCompany,ofliabilitiesdueforsettlementandexpectedcashreserves.Netforeigncurrency

UnitedKingdom Canada India Total AtMar

31,2015

AtMar31,2014

AtMar31,2015

AtMar31,2014

AtMar31,2015

AtMar31,2014

AtMar31,2015

AtMar31,2014

CanadianDollar ‐ ‐ $9,575 $422 ‐ ‐ $9,575 $422

PoundsSterling 878 159 ‐ ‐ ‐ ‐ 878 159

USDollar ‐ 98 ‐ ‐ ‐ ‐ ‐ 98

Rupees ‐ ‐ ‐ ‐ 245 68 245 68Totalnetexposure

$878 $257 $9,575 $422 $245 $68 $10,698 $747

LiquidityriskLiquidity 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,itseekstomaintaincashbalancestomeetexpectedrequirementsforaperiodofatleast 45 days. The Company also seeks to reduce liquidity risk by fixing interest rates (and hence cash flows) on aportionofitsborrowings.Thefollowingtablesetsoutthecontractualmaturitiesoffinancialliabilities:

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 $‐

Page | 24

AsatMarch31,2014CarryingAmount

ContractualCashFlows

Upto3months

3to6months

6to12months

Accountspayableandaccruedliabilities $8,650 $8,650 $8,613 $37 $‐

Loansandborrowings 125 125 125 ‐ ‐

Total $8,775 $8,775 $8,738 $37 ‐

16. SegmentedInformation

IFRS 8OperatingSegments defines an operating segment as (a) a component of an entity that engages in businessactivities from which it may earn revenues and incur expenses (including revenues and expenses relating totransactionswith other components of the same entity), (b)whose operating results are regularly reviewed by theentity’schiefoperatingdecisionmakertomakedecisionsaboutresourcestobeallocatedtothesegmentandtoassessitsperformanceand(c)forwhichdiscretefinancialinformationisavailable.FormanagementpurposestheCompany’sactivitiesareattributable toasingleoperatingsegment.Consequently, theCompanydoesnotpresentanyoperatingsegmentinformation.TheCompanyoperates threeregionalbusinessunits: India,UK,andCanada;with theIndiansegmentaccounting forthe largestproportionof theCompany’sbusiness,generating81%(2014:84%)of itsexternalrevenues for theyearendedMarch31,2015.TheCompany'sreportablesegmentsarealignedasoperatingsegmentsconsistentwiththeinternalreportingprovidedtothechiefoperatingdecision‐maker.ThechiefoperatingdecisionmakerhasbeenidentifiedasthemanagementteamincludingtheChiefExecutiveOfficer,ChiefOperatingOfficerandtheChiefFinancialOfficer.TheCompanyevaluatessegmentalperformanceonthebasisofprofitorlossfromoperationscalculatedinaccordancewithIFRSbutexcludingtheeffectsofshare‐basedpayments.Inter‐segmentsalesarepricedatcostandappliedconsistentlythroughoutthecurrentandpriorperiod,ifany.RevenuebygeographicareaThelocationofthecustomerdeterminesthegeographicareasforrevenue.

2015 2014

India 81%

25,469

19,587

Canada 16%

5,076

531

UK 3% 998

3,318

Total

31,543

23,436

Page | 25

17. Capitalmanagement

The Company’s objective is to maintain sufficient capital base so as to maintain investor, creditor and customerconfidenceandtosustainfuturedevelopmentof thebusinessandprovidetheabilitytocontinueasagoingconcern.Management defines capital as the Company’s shareholders’ equity. The Board of Directors does not establishquantitative return on capital criteria for management. The Company currently has not paid any dividends to itsshareholders.

AsatMarch31,2015, totalmanagedcapitalwas comprisedof shareholders’ equityof $14.2million.TherewerenochangesintheCompany’sapproachtocapitalmanagementduringtheperiod.CapitalThe Company’s objectivewhenmanaging capital is to ensure that funds are raised in an appropriate, cost‐effectivemanner.TheCompany’sprimaryconcernistomaintainitsabilitytocontinueasagoingconcerninordertoprovidereturnsforshareholdersandstakeholdersintheCompany.

Financialassets 2015 2014

Cashandcashequivalents 10,698 747

Tradeandotherreceivables 14,087 3,620

Inventory 7,163 1,583

Totalfinancialassets 31,948 5,950

Financialliabilitiesatamortisedcost 2015 2014

Accountspayableandaccruedliabilities 10,671 8,650

Loansandborrowing 7,273 125

Totalfinancialliabilities 17,944 8,775

14,004 (2,825)

Propertyandequipment 156 135

Totalshareholder’sequity $14,160 $(2,690)TheCompanyconsiders its capital to comprise its commonsharecapitalandaccumulateddeficit.Changes toequityduringtheyeararedetailedintheConsolidatedStatementsofChangesinShareholders’Equity(Deficiency)onpage6.FinancialinstrumentrisksThere have been no substantive changes in the Company’s exposure to financial instrument risks, its objectives,policiesandprocesses formanagingthoserisksorthemethodsusedtomeasurethemfrompreviousperiodsunlessotherwisestatedinthisnote.

Page | 26

18. Losspershareattributabletocommonshareholders

YearEndedMarch31,

2015 2014

Netlossfortheyear $(11,597) $(4,499)

NetlosspershareBasicanddiluted $(0.57) $(0.30)

WeightedaveragenumberofsharesoutstandingBasic(000) 20,204 14,884Fullydiluted(000) 21,394 20,302

FullydilutedEPShasbeenexcludedduetoitsantidilutivenature.

For the year endedMarch 31, 2015 the number of shares, options andwarrants that could potentially dilute basicearningspershareinthefuturebutwhichwerenotincludedinthecomputationofdilutedearningspersharebecausetodosowouldhavebeenanti‐dilutivebecauseoflosses.

19. Keymanagementpersonnelanddirectorcompensation

Key management personnel are those individuals having authority and responsibility for planning, directing andcontrolling the activities of the Company and are defined as the Chief Officers of the Company and the Company’sBoardofDirectors.TheCompany’scompensationprogramisadministeredbytheBoardofDirectorsandspecificallyprovides for total compensation for executive officers, which is a combination of base salary, performance‐basedincentivesandbenefitprogramsthatreflectaggregatedcompetitivepayinlightofbusinessachievement,fulfillmentofindividual objectives and overall job performance. Directors, executive officers and employees participate in theCompany’sstockoptionplans(Note10).

The following summarizes keymanagement personnel and directors’ compensation for the years endedMarch 31,2015and2014:

2015 2014

Salariesanddirectors'fees $1,354 $1,636

Share‐basedpayments 511 288

Totalcompensationcost 1,865 1,924