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Notes to Accounts of Navneet Education Ltd.
Mar 31, 2025
t) Provisions, contingent liabilities and contingent assets
Contingent Liabilities are disclosed in respect of possible
obligations that arise from past events, but their existence
will be confirmed by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the
control of the Company or where any present obligation
cannot be measured in terms of future outflow of
resources or where a reliable estimate of the obligation
cannot be made.
Provisions are recognised when the Company has a
present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will
be required to settle the obligation and the amount can
be reliably estimated. Provisions are not recognised for
future operating losses.
Provisions are measured at the present value of the
management''s best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. The increase in the provision due to
the passage of time is recognised as an interest expense.
Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as
a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in the
same class of obligations may be small.
A contingent asset is disclosed, where an inflow of
economic benefits is probable. An entity shall not
recognise a contingent asset unless the recovery is
virtually certain.
u) Earnings per share
Basic earnings per share is calculated by dividing the net
profit or loss (after tax) for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. The weighted average
numbers of shares also includes fixed number of equity
shares that are issuable on conversion of compulsorily
convertible instruments and it is included from the date
consideration is receivable (generally the date of their
issue) of such instruments.
The Weighted average number of equity shares
outstanding during the year is adjusted for events such
as issue of shares, bonus issue, bonus element in a rights
issue, share split, and reverse share split (consolidation of
shares), without a corresponding change in resources.
Diluted earnings per share is calculated by dividing the
net profit or loss (after tax) for the year attributable to
equity shareholders and the weighted average number of
equity shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
v) Dividend distribution
Final equity dividends on shares are recorded as a liability
on the date of approval by the shareholders and interim
equity dividends are recorded as a liability on the date of
declaration by the Company''s Board of Directors.
w) Business combination under common control
Business combinations involving entities or businesses
under common control are accounted for using the
pooling of interest method. Under pooling of interest
method, the assets and liabilities of the combining
entities or businesses are reflected at their carrying
amounts after making adjustments necessary to
harmonise the accounting policies. The financial
information in the financial statements in respect of
prior periods is restated as if the business combination
had occurred from the beginning of the preceding period
in the financial statements, irrespective of the actual
date of the combination. The identity of the reserves is
preserved in the same form in which they appeared in the
financial statements of the transferor in case of merger.
The difference, between the book value of the assets over
the liabilities of the demerged division and the transferor
company (merged Company), after adjusting impact
of capital reduction of Equity of demerged company
in retained earnings and elimination of inter-company
adjustments, if any, shall be recorded in accordance with
Appendix C of Ind AS 103 (Business combinations of
entities under common control) notified under Section
133 of the Act read with relevant rules issued thereunder
and applicable accounting standards prescribed under
the Act.
The scheme of arrangement between the Company and
its wholly owned subsidiary, Navneet Futuretech Limited
(''NFL'') and its step down subsidiary, Genext Students
Private Limited (''GSPL''), have been accounted under
the ''pooling of interests'' method in accordance with
Appendix C of Ind AS 103 ''Business Combinations'' and
impact has been considered from the beginning of the
preceding year i.e. 1st April, 2022 as detailed in Note 60 to
these standalone financial statements.
5 Use of significant accounting estimates, judgements and
assumptions
The preparation of the financial statements requires
management to make estimates, judgements and assumptions
that affect the reported balances of revenues, expenses, assets
and liabilities, disclosure of contingent liabilities as on the date
of financial statements. Uncertainty about these assumptions
and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future periods.
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its
assumptions and estimates on parameters available when the
financial statements were prepared. Existing circumstances
and assumptions about future developments, however, may
change due to market changes or circumstances arising that
are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.
a) Estimated useful lives and scrap value (Property, plant &
equipment, Investment properties and Intangible assets)
The Company has conducted internal assessment of
residual value and method of depreciation / amortisation
of property, plant & equipment, investment properties
and intangible assets and estimated that the useful life
is in consonance with Schedule II of the Companies Act,
2013. Property, plant & equipment, investment properties
and intangible assets represent a significant proportion
of the asset base of the Company. Further the Company
has estimated that the scrap value of property, plant &
equipment would be able to cover the decommissioning
costs of property, plant & equipment.
Therefore, the estimates and assumptions made
to determine useful life, residual value, method of
depreciation / amortisation and decommissioning costs
are critical to the Company''s financial position and
performance.
b) Impairment of investment in subsidiaries
The Company conducts impairment reviews of
investments in subsidiaries whenever events or changes
in circumstances indicate that their carrying amounts
may not be recoverable or tests for impairment annually.
Determining whether the investments in subsidiaries
are impaired requires an estimate of the value in use
of investments. In considering the value in use, the
management has anticipated future cash flows and
other factors of the underlying businesses / operations
of the subsidiaries and a suitable discount rate in order
to calculate the present value. Any subsequent changes
to the cash flows due to changes in the above-mentioned
factors could impact the carrying value of investments.
c) Determining the lease term of contracts with renewal as
a Lessee
The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgement.
The Company uses significant judgement in assessing
the lease term (including anticipated renewals).
The Company determines the lease term as the non¬
cancellable period of a lease, together with both periods
covered by an option to extend the lease if the Company
is reasonably certain to exercise that option; and
periods covered by an option to terminate the lease if
the Company is reasonably certain not to exercise that
option. In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or not
to exercise an option to terminate a lease, it considers
all relevant facts and circumstances that create an
economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option
to terminate the lease. Any subsequent change in
certainty of exercising option to extend lease term could
impact the carrying value of right of use asset and lease
liability significantly.
d) Fair Value Measurement of Financial Instruments
When the fair value of financial assets and financial
liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets,
their fair values are measured using valuation techniques
(obtaining fair valuation report from registered valuer).
The inputs to these models are taken from observable
market where possible, but where this is not feasible,
a degree of judgement is required in establishing fair
values. Judgements include consideration of input such
as projections, liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect
the reported fair value of financial instruments.
e) Impairment testing for Licenses under intangible assets,
internally generated intangible assets
Impairment testing is an area involving management
judgement, requiring assessment as to whether the
carrying value of assets can be supported by the net
present value of future cash flows derived from such
assets using cash flow projections which have been
discounted at an appropriate rate. In calculating the
net present value of the future cash flows, certain
assumptions are required to be made in respect of highly
uncertain matters including management''s expectations
of future growth, discount rates etc.
able)
Allowance for doubtful receivables and advances
(including advances to subsidiaries) represent the
estimate of losses that could arise due to the inability
of the customer / counter party to make payments
when due. These estimates are based on the ageing,
category, specific credit circumstances and the historical
experience of the Company as forward-looking estimates
at the end of each reporting period.
g) Estimation of provisions and contingencies
Provisions are liabilities of uncertain amount or timing
recognised where a legal or constructive obligation
exists at the balance sheet date, as a result of a past
event, where the amount of the obligation can be reliably
estimated and where the outflow of economic benefit is
probable. Contingent liabilities are possible obligations
that may arise from past events whose existence will
be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events which are not
fully within the control of the Company. The Company
exercises judgement and estimates in recognising the
provisions and assessing the exposure to contingent
liabilities relating to pending litigations. Judgement is
necessary in assessing the likelihood of the success of
the pending claim and to quantify the possible range of
financial settlement. Due to this inherent uncertainty in
the evaluation process, actual losses may be different
from the originally estimated provision.
:.4 New standard issued / modified but not effective as at
reporting date
Ministry of Corporate Affairs ("MCAâ) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended 31st March, 2025, MCA has notified
Ind AS - 117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. 1st April, 2024. The Company
has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant
impact in its financial statements.
6.1 New contents have been developed & capitalised as it meets the criteria of Ind AS 38 ''Intangible Assets''. Also the Company has
developed and capitalised technology platforms to support other products available for teachers and students in accordance with Ind
AS 38.
Impairment test for costs of contents and technology platform, capitalised or booked as under development (considered as a part of
single CGU which is the combination of publication and digital business i.e. sale of educational and general books along with the use
of digital content and platform), has been carried out by the management and considering the overall profitability of the publication
business, no provision for impairment is considered necessary.
As at year end, certain contents and technology platform modules are under development and hence cost incurred upto year end is
grouped as intangible assets under development in note 7.
6.2 Disclosures on impairment test:- as stated in note 6.1 considering the overall profitability of publication segment no impairment loss is
recognised in Statement of Profit & Loss and in the other comprehensive income and hence no sensitivity analysis carried out by the
management.
8.2 Financial guarantees are issued in favour of the banks against loan taken by subsidiary. The amount of guarantee is '' 4,000 Lakhs
(Previous Year '' 4,000 Lakhs). Fair value of such guarantee amount is included to investment disclosed above amounting to '' 295
Lakhs (Previous year: '' 255 Lakhs) related to Indiannica Learning Private Limited. (Refer footnote (ii) of note 59).
8.3 Impairment test for investments and loan to Navneet Futuretech Limited & Indiannica Learning Private Limited:
The Company has made long-term investments into these subsidiaries. These companies have incurred continuous losses in earlier
years and some marginal profit in previous year in Navneet Futuretech Limited. Considering the same, detail impairment test has been
carried out by the Management. Disclosure in regards to impairment tests carried in regards to these subsidiaries are as under:
a) Impairment test for investment into ''Indiannica Learning Private Limited''
During the year, the management conducted an impairment assessment in consultation with the subsidiary company, considering
various parameters including the business outlook, basis of estimates, valuation technique (based on a fair valuation report
obtained from a registered valuer), appropriateness and reasonableness of key assumptions, and actual performance versus
budgeted figures. Based on the outcome of this assessment, the Company has neither recognised nor reversed any impairment
loss during the year (Previous year: NIL)
b) Impairment test for investment in ''Navneet Futuretech Limited''
Valuation of equity share investment into this subsidiary Company has been carried out by the management (also fair value
report obtained from registered valuer). The Company based on the said valuation report and future business prospects has
provided for an impairment loss of '' Nil. (Previous year '' 4,875 Lakhs)
Further, in the previous year based on the Valuation of equity share investment into this subsidiary Company, the Company
has provided for an impairment loss of '' 4,875 Lakhs, which is primarily on account of demerger and fair value changes in
investments made by the said wholly owned subsidiary.
This impairment provision / write back is shown in the statement of profit and loss under ''Exceptional items''.
c) Key assumptions used for value in use calculations:
The valuation of the subsidiaries has been carried out by registered valuers. Based on the business model of the subsidiary,
different valuation methods which in their opinion are most ideal has been used by them.
In current year as well as in previous year with respect to Indiannica Learning Private Limited the valuation is done based on DCF
model and with respect to Navneet Futuretech Limited valuation is done based on revenue multiple after considering the fair value
of the investment made by the subsidiary.
i) Discount rate (wherever relevant)
Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time
value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates.
The discount rate calculation of each CGU is derived from its Weighted Average Cost of Capital (WACC). The WACC takes
into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company''s
investors. The cost of debt is based on the interest-bearing borrowings of the Company. Adjustments to the discount rate
are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
ii) Growth rate estimate
Growth rate is based on the estimates of growth in business expected by the Management of the Company after taking into
account external / industry growth, customer feedback etc.
iii) Revenue multiple
The revenue multiple is based on market comparable given in valuation report by registered valuer.
Management of the Company has performed sensitivity analysis on the above key assumptions to determine value in use.
8.4 Refer note 67 for information on principal place of business and the Company''s ownership interest in the above Subsidiaries and
Associate Companies.
8.5 The Company holds 93% of voting rights and equivalent share in profit / loss with respect to the investment made in ''Navneet Learning
LLP'' (subsidiary entity) in accordance with LLP agreement and the underlying value of the assets against this investment is significantly
higher as compared to investments made.
During the current year, LLP has divested part of its holding in its associate ''K12 Techno Services Private Limited'' (''K12''). Pursuant to
the transaction K12 ceased to be an associate of Navneet Learning LLP Also refer note 44.
8.6 During the previous year, the Company by the way of rights issue has invested in its wholly owned subsidiary ''Indiannica Learning Private
Limited'' (''ILPL'') amounting to '' 2,000 Lakhs (i.e. 2,00,00,000 equity shares of '' 10 each, fully paid up).
8.7 During the previous year, the Company has purchased 2,17,553 Compulsory Convertible Debentures (''CCD'') of its wholly owned
subsidiary ''Navneet Futuretech Limited'' (''NFL'') of '' 10 each from the erstwhile debenture holder amounting to '' 22 Lakhs
8.8 During the previous year, the Company by the way of right issue has invested in ''Navneet Futuretech Limited'' amounting to '' 1,600 Lakhs
(i.e. 1,60,00,000 equity shares of '' 10 each, fully paid up).
8.9 During the earlier years, the Company had invested 490 Lakhs Optionally Convertible Preference Shares (''OCPS'') of '' 10 each aggregating
to '' 4,900 Lakhs in its subsidiary company ''Indiannica Learning Private Limited'' at face value. The OCPSs carries 0% coupon rate. The
Subsidiary Company has an option to convert OCPS into same number of Equity shares of the Company of '' 10 each (being face value
of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company,
they shall be redeemed at par in full not later than 20 years from the date of allotment.
8.10 As per Ind AS 109 ''Financial Instruments'', at initial recognition, the Company had chosen to designate investment in Career Point
Limited as ''Fair Value through Profit and Loss''. Career Point Limited shares are listed on National Stock Exchange and Bombay Stock
Exchange.
8.11 In the earlier years, as per pledge arrangement entered into with the party against amount recoverable of '' 113 Lakhs (Previous year ''
127 Lakhs) (disclosed under ''Other Non Current Assets'' as advance from suppliers in note 13), pledge is invoked by the Company and
accordingly shares of ''Shrenik Limited'' reflecting in demat account but not reflecting in investment schedule. Further, mark to market
gain on such shares is also not accounted as the Company does not have contractual right to recover amount in excess to recoverable
amount. Considering the time period for which the matter is pending and slow recovery process from sale of securities, as a matter
of abundant caution provision of '' 127 Lakhs has been made during the earlier year. Subsequently, in the current year, the Company
managed to sell securities amounting to '' 14 Lakhs, resulting in the reversal of the previously made provision to that extent.
27.1 Secured working capital demand loan includes interest accrued but not due amounting to '' 1 Lakh (Previous year: '' 18 Lakhs). Interest
rate for secured rupee loan is ranging from 7.50% to 8%.
27.2 As at year ended 31st March, 2025 and 31st March, 2024, outstanding Commercial papers (unsecured) balance is NIL. Commercial
papers amounting to '' NIL (Previous Year '' 5,000 Lakhs) were issued and fully repaid during the year having carrying interest rate NIL
(Previous Year 7.45%). These Commercial papers were listed on the National Stock Exchange.
27.3 During the year, the Company has been sanctioned working capital limits from banks on the basis of security of book debts and inventory;
for which the quarterly returns or statements has been filed by the Company with such banks which are in agreement with the books of
accounts of the Company.
27.4 The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or entities, including
foreign entities ("Intermediariesâ), with the understanding that the intermediary shall whether directly or indirectly lend or invest in other
persons or entities identified in any manner by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security
or the like on behalf of ultimate beneficiaries.
The Company has not received any funds from any person(s) or entities including foreign entities ("Funding Partiesâ) with the
understanding that such Company shall whether, directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provide guarantee, security or the like on behalf of the
Ultimate beneficiaries.
27.5 The Mumbai Bench of the National Company Law Tribunal (''NCLT''), through its order dated 6th May 2024 had approved the scheme
of arrangement with the appointed date of the demerger being 1st April, 2023. Between the Appointed Date and Effective Date, the
Subsidiary Company (to the extent related to the Demerged Undertaking) shall carry on and be deemed to carry on all its business and
activities as hereto and shall stand possessed of its properties and assets for and on account of on behalf of the Company. All income
and expenditure arising to the Demerged Undertaking of the Subsidiary Company (including all taxes, if any, paid or accruing in respect
of any profits) by the Demerged Undertaking of the Subsidiary Company shall for all purposes be treated as the income or expenditure
as the case may be of the Company.
34.1 Provision for Refund Liability:
The above amount is net of provision made for refund liability amounting to '' 658 Lakhs (Previous year '' 560 Lakhs). Also refer Note 53
(a) and Note 31.
34.2 Disclosures of Ind AS 115:
(a) For material accounting policies of revenue recognition, refer note 2.2 (k).
(b) Contracts with customer and significant judgement in applying the standard
i) The Company''s operations relates to publication of knowledge based information in educational and general books form and
manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The
Company applies the guidance provided in Ind AS 115 ''Revenue from contracts with customer'' for determining the timing of
recognition of revenue.
ii) For details of revenue recognised from contracts with customers, refer note 34 above.
iii) There are no contract assets arising from the Company''s contract with customers.
(c) Disaggregation of revenue
i) For disaggregation of revenue, refer break-up given in note 34 above and note 60 (B).
ii) Refer note 60 (A) (iii) for details regarding customer concentration that represents 10% or more of the Company''s total revenue
during the year ended 31st March, 2025 and 31st March, 2024.
(d) Performance obligation
i) For timing of satisfaction of its performance obligations, refer note 2.2(k) of material accounting policies of the Company.
ii) Unsatisfied (or partially satisfied) performance obligations are due to unexpired contract period in cases of contract where
exclusive license is granted to translate, print, publish and sale the translated book in defined territory. The aggregate value
of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is '' 906 Lakhs (Previous year: ''
921 Lakhs) out of which 63% (Previous year: 53%) is expected to be recognised as revenue in the next year and the balance
thereafter.
43.1 Sales Tax and GST Expenses include the reversal of input tax credit in accordance with GST Act/rules.
43.2 Other expenses do not include any item of expenditure which is exceeding one percent of the revenue from operations or '' 10 Lakhs
whichever is higher, in addition to the consideration of ''materiality''.
44*[ EXCEPTIONAL ITEMS
Exceptional items represents:
For the year ended 31st March, 2025
The Company''s subsidiary entity, ''Navneet Learning LLP'' has divested part of its holding in its associate ''K12 Techno Services Private Limited''
(''K12'') for a consideration of '' 22,518 Lakhs. Pursuant to the transaction K12 ceased to be an associate of Navneet Learning LLP. Further, the
said transaction / divestment has resulted into the following:
1. Exceptional gain in the said subsidiary entity and Company''s share thereon of '' 15,024 Lakhs (net of tax).
2. The said investment in erstwhile associate is now recognised as a financial asset by the subsidiary entity of the Company.
3. As per Ind AS 28 the difference between the carrying value and the fair value of the retained interest has been recognised as an
exceptional gain in the Profit & Loss Account of Navneet Learning LLP. The Company''s share in the said fair value gain of '' 43,351 Lakhs
(net of tax) has been recognised as an exceptional gain.
Further, during the quarter ended 31st December 2024, in accordance with the option exercised by the subsidiary entity, fair value gain of
'' 2,177 Lakhs (net of deferred tax liability of '' 371 Lakhs) has been accounted through profit and loss account (FVTPL) in subsidiary entity
and accordingly the Company''s share of fair value gain of '' 2,024 Lakhs Lakhs (net of deferred tax liability of '' 345 Lakhs) has been accounted
through FVTPL.
For the year ended 31st March, 2024
a) '' 3,023 Lakhs towards profit on sale of property.
b) '' 4,875 Lakhs towards diminution in value of investment of wholly owned subsidiary i.e. NFL, which is primarily on account of demerger
and fair value changes in investments made by the said wholly owned subsidiary. (Refer note 8.3)
45*| CONTINGENT LIABILITIES:
(a) Tax matters:
i) A) For disputed Income tax matters '' 661 Lakhs (Previous year '' 661 Lakhs) against which amount provided in books is '' 548
Lakhs (Previous year '' 548 Lakhs) and amount paid under protest is '' 484 Lakhs (Previous year '' 484 Lakhs).
Income tax demands mainly include the appeals filed by the Company before various departmental appellate authorities /
High Courts against the disallowances made by income tax authorities of certain deductions / expenses claimed. Pending
final decisions, the Company has deposited amounts under protest with Income Tax Authorities.
B) Contingent liabilities taken over at the time of arrangement (Refer note 61)
> Assessing Officers of the Income tax department had made certain disallowances for AY 2012-13 to AY 2014-15 and
reduced the losses claimed by the Company by '' 358 Lakhs. The Company has filed appeals before CIT (Appeals) /
ITAT against these orders.
> The ITAT has given substantial reliefs of '' 94 Lakhs as against disallowance of '' 120 Lakhs for AY 2012-13 and of
'' 35 Lakhs as against disallowance of '' 51 Lakhs for AY 2014-15. Management is hopeful of getting relief in
AY 2013-14 also as nature of disallowance is similar.
> Further, department has levied penalty of '' 8 Lakhs and '' 16 Lakhs u/s 271(1)(c) of the Income Tax Act, 1961 for
assessment year 2012-13 and 2014-15 respectively. The Company has filed appeals before CIT (Appeals) against both
the penalty orders. The Company has made payment under protest of '' 2 Lakhs against penalty order for AY 2012-13
i and penalty of AY 2014-15 has been adjusted by CPC against refund of AY 2020-21 without consent of company and
hence the Company has appealed against the same.
> Further Assessing Officer has made disallowances of '' 298 Lakhs for AY 2021-22 and raised a demand of '' 57 Lakhs
without adjusting current year losses. The Company has filed appeals before CIT (Appeals) against these orders.
> Considering nature of disallowance and certain favourable judicial decisions with respect to levy of penalty, the
management of the Company is hopeful of getting favourable orders at the higher forum.
ii) For disputed sales tax matters '' 62 Lakhs (Previous Year '' 2,258 Lakhs) against which amount paid under protest is '' 16 Lakhs
(Previous Year: '' 95 Lakhs). (Refer note below)
Sales Tax demands are mainly on account of dispute in rate of certain products, non submission of statutory declarations etc.
Pending final decisions, the Company has deposited amounts under protest with Sales Tax Department.
iii) For disputed GST matters '' 109 Lakhs (Previous Year '' 740 Lakhs) against which amount paid under protest is '' 69 Lakhs, (Previous
year: '' 302 Lakhs) (Refer note 13). Company is in appeal before departmental appellate authority against the assessment orders
for the period from 01.07.2017 to 31.03.2022 where State GST Department of Maharashtra conducted Investigation during the
earlier years.
Note: Future cash outflows in respect of matters considered disputed are determinable only on receipt of judgements / decisions
pending at various forums / authorities. The management does not expect these claims to succeed.
(b) Against bond (mainly GST benefit):
Duty free imports for which export obligation is pending as at year end amounting to '' 1 Lakh (Previous Year '' 48 Lakhs). In the event
Company does not meet the respective obligation, GST would have to be paid for which input credit would be available.
(c) Other matters:
Kotak Mahindra Bank and ICICI bank have given bank guarantees to two of the customers of the Company amounting to '' 12 Lakhs
(Previous year: 12 Lakhs) and '' 3 Lakhs (Previous year: 3 Lakhs) respectively, against which the Company has provided a bank deposit
of the same amount which is kept under lien by the Bank. Further, the Company had availed bank overdraft facility from ICICI Bank
Limited against which the Company had provided a bank deposit of '' Nil (Previous year: 2 Lakhs) which is kept under lien by the Bank.
46*[ CAPITAL COMMITMENTS AND OTHER COMMITMENTS
(a) Estimated amount of contracts remaining to be executed (net of advances) on capital account is '' 11,314 Lakhs (Previous year: '' 25
Lakhs).
(b) Company is committed to fund its wholly owned subsidiaries as and when required.
47~| DISCLOSURE UNDER IND AS 116 ''LEASES''
The Company has adopted Ind AS 116 ''Leases'' effective from 1st April, 2019. Also refer note 2.2(p) for accounting policy on leases.
a) As a Lessee
The Company''s lease assets primarily consist of leases for office premises, warehouses, vehicles and computers. For lease arrangement
with lease terms of 12 months or less, the Company has applied the ''short-term lease'' recognition exemptions and for lease with lower
underlying value asset, the Company has applied the ''low value asset'' recognition exemption.
Notes:
1. The right-of-use asset is depreciated using the straight-line method (SLM) from the commencement date over the lease term of right-
of-use asset. For details of addition, depreciation and carrying amount of right of use asset, refer note 4.
2. Also refer note 63 for contractual maturities of lease liability (as per Ind AS 107).
3. For the purpose of calculation of lease liabilities, future lease payments are discounted at incremental borrowing rate for the lease term
of 5 years. This lease term is arrived based on reasonable certainty of renewal of lease agreement.
b) As a Lessor
For assets given on cancellable lease, it''s depreciation and carrying amount, refer note 4. Also, for rental income earned on that
properties, refer note 4.1, which is recognised on a straight line basis over the term of the relevant lease for long term leases.
(e) Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the
hedging instrument is expected to offset changes in cash flows of hedged items.
If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the
hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging
instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes.
The amount of gain / (loss) recognised in Statement of Profit and Loss on account of hedge ineffectiveness for cash flow hedges for
the year ended 31st March, 2025 is '' NIL (Previous year : '' NIL).
(b) Defined benefit plan and long term employment benefits:
These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary increase risk:
I. Investment / Interest risk: The Company is exposed to Investment / Interest risk if the return on the invested fund falls below the
discount rate used to arrive at present value of the benefit. Since the scheme is unfunded in case of compensated absence, the
Company is not exposed to Investment / Interest risk.
II. Longevity Risk: The Company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the
employee separating from the employer for any reason.
III. Risk of Salary Increase: The Company is exposed to higher liability if the future salaries rise more than assumption of salary
escalation.
(i) Defined benefit plan and long term employment benefits: Gratuity (Defined benefit plan):
In respect of Gratuity, the Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation
of India, funded defined benefits plan for qualified employees. However, gratuity for employees of the demerged undertaking (taken over
by the Company from subsidiary ''Navneet Futuretech Limited) is unfunded. The scheme provided for lump sum payments to vested
employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for
each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The Company has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method. The following table sets
out for the status of gratuity plan:
6l| SCHEME OF ARRANGEMENT FOR THE YEAR ENDED 31st MARCH, 2024
a) The Board of Directors at its meeting held on 1st August, 2023 approved the Composite Scheme of Arrangement (''Scheme''), for
amalgamation of ''Genext Students Private Limited'' (''GSPL'') (step down subsidiary) with the Company and the demerger of Edtech
business of ''Navneet Futuretech Limited'' (''NFL'') (wholly owned subsidiary) into the Company. The Mumbai Bench of the National
Company Law Tribunal (''NCLT''), through its order dated 6th May, 2024 has approved the scheme with the appointed date of the merger
being 1st April, 2023. A copy of the order was filed with the Registrar of Companies, on 17th May, 2024 in accordance with the applicable
provisions of the Companies Act 2013 and accordingly the Scheme became effective from 17th May, 2024, upon completion of necessary
formalities.
b) The merger has been accounted under the ''pooling of interests'' method in accordance with Appendix C of Ind AS 103 ''Business
Combinations'' and impact has been considered from the beginning of the preceding year i.e. 1st April, 2022. Accordingly, the operations
of the demerged division (software business of NFL) and merged business of GSPL for the period 1st April, 2022 till 31st March, 2023
was given effect by restating the financial statement of the Company for the previous year i.e. financial year ended 31st March, 2023.
The restated financial statements of the Company has been approved by the Board of Directors of the Company at their meeting held
on 22nd May, 2024.
:) Pursuant to the Scheme of Arrangement :
i) The Company has recorded all assets and liabilities of the demerged division of NFL and transferor Company GSPL at their
respective book values thereof as appearing in the books of the NFL and GSPL as at 1st April, 2022 and also as appearing in the
Consolidated Financial Statement . The balances of Assets and liabilities as stated above has been considered based on the
audited financial statements of NFL and GSPL as at and for the year ended 31st March, 2022 which was approved by the Board of
the directors at their meeting held on 13th May, 2022.
ii) The difference, between the book value of the assets over the liabilities of the demerged division of NFL and transferor company
GSPL, after adjusting impact of capital reduction of Equity of NFL in retained earnings and elimination of inter-company adjustments
has been recorded as amalgamation reserve in the books of the Company. Summary of relevant information has been provided
below:
62*[ FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The management assessed that the fair values of financial asset and financial liabilities approximate their carrying amounts.
The following methods and assumptions were used to estimate the fair values:
(a) Fair values of cash and cash equivalents, trade receivables, interest accrued on deposits with bank, bank deposits, trade payables and
other financial liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.
(b) The management has considered fair value of security deposits, loan from bank, loan from related party, equal to their carrying value as
fair values based on the current market interest rates and other risk factors approximate to carrying value.
Financial/Bank guarantee:
(i) Financial Guarantees are issued in favour of banks against loans taken by subsidiary. The amount of guarantee is '' 4,000 Lakhs
(Previous Year '' 4,000 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 8.2 and 29).
(ii) Bank Guarantee is given to electricity department (DNH Power Distribution Corporation Limited, Uttar Gujarat Vij Company Ltd and
Dakshin Gujarat Vij Company Ltd) for electricity deposit of '' 116 Lakhs (Previous Year '' 91 Lakhs), Insurance agency (Avalon Risk
Management Insurance Agency LLC) of '' 171 Lakhs (Previous Year '' 131 Lakhs) given to custom department for imports to be made
and to supplier (Century Pulp And Paper) for securing supplies of materials of '' 60 Lakhs (Previous Year '' 60 Lakhs) For Government
Tender (Tribal Development) of '' 41 Lakhs (Previous Year-'' NIL) given to Government tender department. For Gas supply (Sabarmati
Gas Limited) '' 14 Lakhs (Previous Year '' NIL).The Company does not anticipate any liability on these guarantees.
(iii) Kotak Mahindra Bank and ICICI Bank have given bank guarantee to two of the customers of the Company amounting to '' 15
Lakhs (Previous year: 14 Lakhs ) and '' 4 Lakhs (Previous year: 3 Lakhs) respectively, against which the Company has provided a bank
deposit of the same amount which is kept under lien by the Bank. Further, the Company had availed bank overdraft facility from ICICI
Bank Limited against which the Company had provided bank deposit of '' Nil (Previous year: 2 Lakhs) which was kept under lien by the
Bank (Refer note 17.3).
63*| FINANCIAL RISK MANAGEMENT
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprise three types of risk: foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market
risk primarily include trade receivables, trade payables and cash and cash equivalents.
The sensitivity analysis in the following sections relate to the position for the periods presented. The sensitivity analysis has been prepared on
the basis that the amount of net debt and the proportion of financial instruments in foreign currencies are all constant. The analysis exclude
the impact of movements in market variables on the carrying values of gratuity obligation and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks based on the financial
assets and financial liabilities held at the periods presented.
b) Interest rate risk
The following tables demonstrate the sensitivity to a reasonably possible change in interest rate, with all other variables held constant. The
impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.
Previous year figures are in bracket
Note:- For the purpose of foreign currency sensitivity, trade receivables to the extent unhedged are considered.
d) Price risk
The Company is not exposed to any significant price risk.
e) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other
financial assets.
Trade receivables
Customer credit risk is managed based on the Company''s established policy, procedures and control relating to customer credit risk
management. The Company evaluates the concentration of risk with respect to trade receivables as low. Out of total trade receivables
balance as at 31st March, 2025, '' 5,256 Lakhs (Previous year '' 4,132 Lakhs) is due from a single customer being the Company''s largest
customer. There are no other customers who represent more than 10% of the balance of trade receivables. Outstanding customer receivables
are regularly monitored by the management.
An impairment analysis is performed at each reporting date on an individual basis for major customers.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company generally does
not hold collateral as security except in one case refer note 15.4.
| Details of the sources of estimation uncertainty in related to significant accounting estimates and judgements:
i) Impairment of investment in subsidiaries
Refer note 2.3 (b) of material accounting policies and note 8.3 for significant accounting estimates and judgements used in performing
impairment test on investment value of subsidiaries.
ii) Provision for employee benefits
Refer note 2.3 (e) of material accounting policies and note 54(b)(i) for significant accounting estimates and judgements used and it''s
financial impact of sensitivity of such assumptions.
b) Goodwill was created in financial year 2021-22 on acquisition of subsidiary Genext Students Private Limited and appearing in the
consolidated financial statements. Upon accounting as per pooling of interest method for merger of Genext Students Private Limited
with Navneet Education Limited, the said goodwill is now part of the standalone financial statement.
c) Impairment test for goodwill
The goodwill is mainly on account of future benefits due to the technology platform, content, data base which is being used by the
publication business for creating digital content / books with digital content and to ensure seamless blend of traditional print and
progressive digital platforms. Considering the overall profitability of the publication business, no provision for impairment is considered
necessary.
69*[ WILFUL DEFAULTER
As on 31st March, 2025 the Company has not been declared wilful defaulter by any bank/financial institution or other lender.
70*[ DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence no disclosure is required.
7l| REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The Company does not have any charges or satisfaction yet to be registered with the registrar of companies(ROC) beyond the statutory period
as at 31st March, 2025.
Note: Explanation for change in ratio by more than 25%
(i) Current ratio improved primarily due to a reduction in borrowings as compared to the previous year
(ii) Debt equity ratio is improved due to a reduction in borrowings compared to the previous year.
(iii) The Debt Service Coverage Ratio has improved primarily due to higher repayment of principal during the year compared to the previous
year.
(iv) Trade payables turnover ratio primarily driven by a rise in the purchase of trading goods and related incidental expenses.
(v) Return on Equity Ratio increases because of '' 604 Crores exceptional gain included in net profit.
(vi) Net profit ratio increases because of '' 604 Crores exceptional gain included in net profit.
(vii) Return on Investment (ROI) improved because the fair-value gain on quoted equity holdings increased, producing a more favourable
overall return.
(viii) Return on Capital employed increases because of '' 604 Crores exceptional gain included in net profit.
76. | Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss (other than already
disclosed above) are either NIL or Not Applicable.
77. | The Company has used an accounting software for maintaining its books of account for the financial year ended 31st March, 2025
which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record
retention.
78. | Figures less than '' 50,000 have been denoted by #.
As per our report of even date attached hereto For & On behalf of the Board of Navneet Education Limited
For N. A. Shah Associates LLP
Chartered Accountants
Firm Registration Number - 116560W/W100149 sd/- sd/-
Kamlesh S. Vikamsey Gnanesh D. Gala
Chairman Managing Director
DIN: 00059620 DIN:00093008
sd/- sd/- sd/-
Milan Mody Kalpesh D. Dedhia Amit D. Buch
Partner Chief Financial Officer Company Secretary
Membership Number: 103286 Mem. No. A15239
Place : Mumbai Place : Mumbai
Date : 19th May, 2025 Date : 19th May, 2025
Mar 31, 2024
7.1 New contents have been developed & capitalised as it meets the criteria of Ind AS 38 ''Intangible Assets''. Also the Company has developed and capitalised technology platforms to support other products available for teachers and students in accordance with Ind AS 38.
Impairment test for costs of contents and technology platform, capitalised or booked as under development (considered as a part of single CGU which is the combination of publication and digital business i.e. sale of educational and general books along with the use of digital content and platform), has been carried out by the management and considering the overall profitablity of the publication business, no provision for impairment is considered necessary. The value in use of the future projections is higher than the carrying value of the contents and technology platform.
As at year end, certain contents and technology platform modules are under development and hence cost incurred upto year end is grouped as intangible assets under development in note 8.
7.2 Disclosures on impairment test:-
a) Impairment loss recognised/(reversal) in the Statement of Profit & Loss and in the other comprehensive income is '' Nil (31st March, 2023: '' Nil).
b) Assumptions used to determine the recoverable amount of content/technology platform, are prepared based on market estimates and management judgements (i.e. Growth rate, EBIT, discount rate etc.)
c) The management has carried out sensitivity analysis of discount rate and growth rate considered to arrive at value in use and accordingly there is no provision for impairment required.
9.2 Financial guarantees are issued in favour of the banks against loan taken by subsidiary. The amount of guarantee is '' 4,000 Lakhs (Previous Year '' 4,000 Lakhs). Fair value of such guarantee amount is included to investment disclosed above amounting to '' 255 Lakhs (Previous year: '' 195 Lakhs) related to Indiannica Learning Private Limited. (Refer footnote (ii) of note 58).
9.3 Impairment test for investments and loan to Navneet Futuretech Limited & Indiannica Learning Private Limited:
The Company has made long-term investments into these subsidiaries. These companies have incurred continuous losses in earlier years and some marginal profit in previous year in Indainnica Learning Private Limited. Considering the same, detail impairment test has been carried out by the Management. Disclosure in regards to impairment tests carried in regards to these subsidiaries are as under:
a) Impairment test for investment into ''Indiannica Learning Private Limited''
During the year, the impairment test carried out by the management including the business outlook, basis of estimates, valuation technique (fair value report obtained from registered valuer), appropriateness & reasonableness
of assumptions, actual performance as against budget and various other parameters with the management of the subsidiary company, and based on which, the Company has made/reversed provision of impairment loss of '' Nil (Previous year reversed of '' 1,878 Lakhs).
In the previous year, company had reversed the impairment provision of '' 1,878 Lakhs based on business outlook, basis of estimates, valuation technique, appropriateness & reasonableness of assumptions, actual performance as against budget and various other parameters with the management of the subsidiary company .
This impairment write back/loss is shown in the statement of profit and loss under ''Exceptional items''.
b) Impairment test for investment in ''Navneet Futuretech Limited''
Valuation of equity share investment into this subsidiary Company has been carried out by the management (also fair value report obtained from registered valuer). The Company based on the said valuation report and future business prospects has provided for an impairement loss of '' 4,875 Lakhs , which is primarily on account of demerger and fair value changes in investments made by the said wholly owned subsidiary.
Further, in the previous year based on the Valuation of equity share investment into this subsidiary Company, the Company has reversed the provision of impairment loss made in earlier years of '' 526 Lakhs.
This impairment provision/write back is shown in the statement of profit and loss under ''Exceptional items''.
c) Key assumptions used for value in use calculations:
The valuation of the subsidairies has been carried out by registered valuers. Based on the business model of the subsidairy, different valuation methods which in their opinion are most ideal has been used by them.
In current year as well as in previous year with respect to Indiannica Learning Private Limited the valuation is done based on DCF model and with respect to Navneet Futuretech Limited valuation is done based on revenue multiple after considering the fair value of the investmnet made by the subsidiary.
i) Discount rate (wherever relevant)
Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation of each CGU is derived from its Weighted Average Cost of Capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company''s investors. The cost of debt is based on the interest-bearing borrowings of the Company. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
ii) Growth rate estimate
Growth rate is based on the estimates of growth in business expected by the Management of the Company after taking into account external/industry growth, customer feedback etc.
iii) Revenue multiple
The revenue multiple is based on market comparables given in valuation report by registered valuer. Management of the Company has performed sensitivity analysis on the above key assumptions to determine value in use.
9.4 In previous year ''Navneet Tech Ventures Private Limited'' (''NTVPL), a wholly owned subsidiary of the Company, had fully redeemed 2,47,80,003 0% Fully Optionally Convertible Debentures (''FOCDs'') (amounting to '' 2,478 Lakhs) at face value of '' 10 each upto 31st March, 2023.
9.5 Refer note 67 for information on principal place of business and the Company''s ownership interest in the above Subsidiaries and Associate Companies.
9.6 The Company holds 93% of voting rights and equivalent share in profit/loss with respect to the investment made in ''Navneet Learning LLP'' (subsidiary entity) in accordance with LLP agreement and the underlying value of the assets against this investment is significantly higher as compared to investments made.
9.7 During the current year ended 31st March, 2024 the Company by the way of rights issue has invested in its wholly owned subsidiary ''Indiannica Learning Private Limited'' (''ILPL) amounting '' 2,000 Lakhs (i.e. 2,00,00,000 equity shares of '' 10 each, fully paid up).
9.8 During the current year, the Company has purchased 2,17,553 Compulsory Convertible Debentures (''CCD'') of its wholly owned subsidiary ''Navneet Futuretech Limited'' (''NFL!) (formerly known as ''Esense Learning Limited'') of '' 10 each from the erstwhile debenture holder amounting to '' 22 Lakhs.
9.9 During the current year, the Company by the way of right issue has invested in ''Navneet Futuretech Limited'' amounting 1,600 Lakhs (i.e. 1,60,00,000 equity shares of '' 10 each, fully paid up).
9.10 During the earlier years, the Company had invested '' 4,900 Lakhs in Optionally Convertible Preference Shares (''OCPS'') of Rs 10 each aggregating to '' 4,900 Lakhs in its subsidiary company ''Indiannica Learning Private Limited'' at face value. The OCPSs carries 0% coupon rate. The Subsidiary Company has an option to convert OCPS into same number of Equity shares of the Company of '' 10 each (being face value of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company, they shall be redeemed at par in full not later than 20 years from the date of allotment.
9.11 As per Ind AS 109 ''Financial Instruments'', at initial recognition, the Company had chosen to designate investment in Career Point Limited as ''Fair Value through Profit and Loss''. Career Point Limited shares are listed on National Stock Exchange and Bombay Stock Exchange.
9.12 In the earlier years, as per pledge arrangement entered into with the party against amount recoverable of '' 127 Lakhs (Previous year ''158 Lakhs) (disclosed under ''Other Non Current Assets'' as advance from suppliers in note 14), pledge is invoked by the Company and accordingly shares of ''Shrenik Limited'' reflecting in demat account but not reflecting in investment schedule. Further, mark to market gain on such shares is also not accounted as the Company does not have contractual right to recover amount in excess to recoverable amount. Considering the time period for which the matter is pending and slow recovery process from sale of securities, as a matter of abundant caution provision of '' 158 Lakhs has been made during the previous year. Subsequently, in the current year, the Company managed to sell securities amounting to '' 31 Lakhs, resulting in the reversal of the previously made provision to that extent.
10.1 The above amount includes '' 1,459 Lakhs (Previous year : '' 1,459 Lakhs) from one party against which Company has filed a legal case with Honourable High Court of Mumbai. As per the interim order, the Company possesses the property deed of an immovable property for recovery of the due, which is adequate to cover loan amount. The Company expects the matter to be favourably settled in its favour. Considering the interim order of the Hon''ble high court of Mumbai and the possession of the deed of the property, loan against the said property is considered secured. The underlying value of the assets is significantly greater than the carrying value of the loan. Considering the same no provision is required to be made.
12.1 Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences.
Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of: (a) deductible temporary differences; (b) the carry forward of unused tax losses; and (c) the carry forward of unused tax credits (Refer note 55 for reconciliation between the provision of income tax of the Company and amounts computed by applying the Indian statutory income tax rate to profit before taxes).
12.2 The Company applied Deferred Tax related to Assets and Liabilities arising from single transaction (Amendments to Ind AS 12) from 1st April, 2023. Following the amendments, the Company has recognised a separate Deferred tax asset in relation to its lease liabilities and Deferred tax liability in relation to right of use assets.
16.1 Trade receivables are subject to first charge to secure bank loan.
16.2 Trade receivables are generally due between 30 to 90 days. The Company''s term includes charging of interest for delayed payment beyond agreed credit days. However, the Company charges interest after considering the historical trend, business prospects, reason for delay, market conditions etc.
16.3 Credit risk is managed at the operational segment level (i.e. publication and stationery). The credit limit and credit period are fixed for each customer after evaluating the financial position, past performance, business opportunities, credit references etc. The credit limit and the credit period are reviewed regularly at periodical intervals.
16.4 As per Memorandum of Understanding with one of the party, a sum of '' 286 Lakhs (Previous year: '' 286 Lakhs) is secured by pledge of immovable property. Considering the time period for which the matter is pending, the Company has made provision of '' 70 Lakhs in previous financial year.
16.5 The Company follows simplified approach & the trade receivables do not contain significant financing component and accordingly the Company does not separately track changes in credit risk of trade receivables as the impairment amount represents "lifetime" expected credit loss. Accordingly, the disclosure as required by Schedule III, Division II as regards (a) Trade Receivables which have significant increase in credit risk & (b) Trade Receivables which are credit impaired is not required. In addition to the pool assessment, the Company carried out individual assessment in respect of certain parties where the possibility of default in collection of trade receivable was high.
18.1 There is no amount due to Investor Education & Protection Fund as on 31st March, 2024.
18.2 Bank deposit includes interest accrued but not due amounting to '' 1 Lakhs (Previous year: '' 13 Lakhs) and deposit of '' 11 Lakhs is under lien for tender deposit given to a customer and education department.
18.3 Other bank balance contains, fixed deposit of '' 17 Lakhs (Previous year: '' 16 Lakhs) is under lien with bank against bank guarantee given by Bank to the customer on behalf of the Company. Further, fixed deposit of '' 2 Lakhs (Previous year: '' 2 Lakhs) is under lien with bank against overdraft facility provided by the bank.
Further, fixed deposit of '' 50 Lakhs (Previous year: '' Nil Lakhs) is under lien with Insurance agency Avalon Risk Management Insurance Agency,LLC against bank guarantee given by the same to Customs department.
Balance other bank balances represent restricted deposits (along-with accrued interest thereon) under lien placed with sales tax authorities.
20.1 Gratuity recoverable from Employee''s Gratuity Fund maintained with Life Insurance Corporation represents gratuity amount paid to employees directly during the year on behalf such fund.
20.2 Refund receivable from government authority includes GST refunds receivables from government authorities which are expected to be realised within 12 months. Accordingly, the same is grouped as current financial assets. Out of which, subsequent to year end, the Company has received refund of '' 776 Lakhs (Previous year: '' 1,499 Lakhs)
20.3 As the Company is rightfully entitled to receive export incentives, the same is classified as financial asset in accordance with ITFG clarification issued by the Institute of Chartered Accountants of India.
22.2 Terms/Rights Attached to Equity Shares
The Company has only one class of equity shares having a par face value of '' 2/- per share. Each holder of equity shares is entitled to one vote per share and all rank pari passu. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the equity shares held by the shareholders.
27.1 Secured working capital demand loan includes interest accrued but not due amounting to '' 18 Lakhs (Previous year: '' 20 Lakhs). Interest rate for secured rupee loan is ranging from 6.50% to 8%.
27.2 As at year ended 31st March, 2024, outstanding Commercial papers (unsecured) amounts to '' Nil Lakhs (Previous year: '' 5,000 Lakhs). Commercial papers amounting to ''5,000 Lakhs (Previous Year '' 3,500 Lakhs) were issued and fully repaid during year having carrying interest rate 7.45% (Previous Year 4.40%) . These Commercial papers were listed on the National Stock Exchange.
27.3 During the year, the Company has been sanctioned working capital limits from banks on the basis of security of current assets; for which the quarterly returns or statements has been filed by the Company with such banks which are in agreement with the books of accounts of the Company.
27.4 The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or entities, including foreign entities ("Intermediaries"), with the understanding that the intermediary shall whether directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of ultimate beneficiaries.
The Company has not received any funds from any person(s) or entities including foreign entities ("Funding Parties") with the understanding that such Company shall whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provide guarantee, security or the like on behalf of the Ultimate beneficiaries.
31.1 The movement represents the provision created for the year arising out of the actuarial valuation after considering the actual settlements made during the year.
31.2 In case of accumulated compensated absences outstanding as at year-end, the employees have already earned the right to avail the leave and they are normally entitled to avail the leave at any time during the year. As the employees has an unconditional right to avail the leave, the same are classified as ''current provisions'' as per the guidance note on Schedule III Division II of the Companies Act, 2013 issued by the Institute of Chartered Accountants of India.
33.1 Provision for Refund Liability:
The above amount is net of provision made for refund liability amounting to '' 560 Lakhs (Previous year '' 462 Lakhs).
Also refer Note 52 (a) and Note 31.
33.2 Disclosures of Ind AS 115:
(a) For material accounting policies of revenue recognition, refer note 2.2 (k).
(b) Contracts with customer and significant judgement in applying the standard
i) The Company''s operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The Company applies the guidance provided in Ind AS 115 ''Revenue from contracts with customer'' for determining the timing of recognition of revenue.
ii) For details of revenue recognised from contracts with customers, refer note 33 above.
iii) There are no contract assets arising from the Company''s contract with customers.
(c) Disaggregation of revenue
i) For disaggregation of revenue, refer break-up given in note 33 above and note 59 (B).
ii) Refer note 59 (A) (iii) for details regarding customer concentration that represents 10% or more of the Company''s total revenue during the year ended 31st March, 2024 and 31st March, 2023.
(d) Performance obligation
i) For timing of satisfaction of its performance obligations, refer note 2.2(k) of material accounting policies of the Company.
ii) Unsatisfied (or partially satisfied) performance obligations are due to unexpired contract period in cases of contract where exclusive license is granted to translate, print, publish and sale the translated book in defined territory. The aggregate value of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is '' 921 Lakhs (Previous year: '' 492 Lakhs) out of which 53% (Previous year: 43%) is expected to be recognised as revenue in the next year and the balance thereafter.
Exceptional items represents:
For the year ended 31st March, 2024,
a) '' 3,023 Lakhs towards profit on sale of property.
b) '' 4,875 Lakhs towards diminution in value of investment of wholly owned subsidiary i.e. NFL, which is primarily on account of demerger and fair value changes in investments made by the said wholly owned subsidiary. (Refer note 9.3)
For the year ended 31st March, 2023,
a) '' 633 Lakhs towards profit on sale of property.
b) '' 2,404 Lakhs towards reversal of provision made for impairment of investment in wholly owned subsidiaries based on valuation reports obtained from registered valuer. (Refer note 9.3)
(a) Tax matters:
i) A) For disputed Income tax matters ''661 Lakhs and (Previous year '' 561 Lakhs) against which amount provided in books is ''548 Lakhs (Previous year ''549 Lakhs) and amount paid under protest is ''484 Lakhs (Previous year '' 484 Lakhs) (Refer below note).
Income tax demands mainly include the appeals filed by the Company before various departmental appellate authorities/High Courts against the disallowances made by income tax authorities of certain deductions/ expenses claimed. Pending final decisions, the Company has deposited amounts under protest with Income Tax Authorities.
B) Contingent liabilities taken over at the time of arrangement (Refer note 60)
Assessing Officers of the Income tax department had made certain disallowances for AY 2012-13 to AY 201415 and reduced the losses claimed by the Company by '' 358 Lakhs. The Company has filed appeals before CIT (Appeals)/ITAT against these orders.
The ITAT has given substantial reliefs of '' 94 Lakhs as against disallowance of ''120 Lakhs for AY 2012-13 and of '' 35 Lakhs as against disallowance of '' 51 Lakhs for AY 2014-15. Management is hopeful of getting relief in AY 2013-14 also as nature of disallowance is similar.
Further, department has levied penalty of '' 8 Lakhs and '' 16 Lakhs u/s 271(1)(c) of the Income Tax Act, 1961 for assessment year 2012-13 and 2014-15 respectively. The Company has filed appeals before CIT (Appeals) against both the penalty orders. The Company has made payment under protest of '' 2 Lakhs against penalty order for AY 2012-13 and penalty of AY 2014-15 has been adjusted by CPC against refund of AY 2020-21 without consent of company and hence the Company has appealed against the same.
Further Assessing Officer has made disallowances of '' 298 Lakhs for AY 2021-22 and raised a demand of '' 57 Lakhs without adjusting current year losses. The Company has filed appeals before CIT (Appeals) against hese orders.
Considering nature of disallowance and certain favourable judicial decisions with respect to levy of penalty, the management of the Company is hopeful of getting favourable orders at the higher forum.
ii) For disputed sales tax matters '' 2,258 Lakhs (Previous Year '' 2,279 Lakhs) against which amount paid under protest is '' 95 Lakhs (Previous Year: '' 99 Lakhs). (Refer below note)
Sales Tax demands have been mainly raised on account of dispute on rate of certain products, non submission of statutory declarations etc. Pending final decisions, the Company has deposited amounts under protest with Sales Tax Department. Also refer note 42.1.
iii) For disputed GST matters '' 740 Lakhs (Previous Year '' 388 Lakh) against which amount paid under protest is '' 302 Lakhs (Previous year: '' 167 Lakhs) (Refer below note)
During financial year 2022-23 officers from State GST Department conducted Investigation for the period from 1st July, 2017 to 31st March, 2022.The State GST Officers raised certain issues against which Company made payment of '' 300 Lakhs under protest without accepting liability in respect of said issues. Further, Company paid additional amount of '' 2 Lakhs at the time of filing Appeal for FY 2017-18.
Also refer note 14.
During the year Company received GST Order for 2017-18 wherein substantial relief granted and final demand is reduced to '' 20 Lakhs from '' 145 Lakhs as per the Intimation/Show Cause Notice (SCN) received earlier.Company has filed appeal against the Order for the said year. In case of remaining years, for 2018-19 Intimation as well as SCN received and has responded against it and subsequent to the year end the Company received GST Order wherein substantial relief granted and final demand is reduced and Company is in the process of filing appeal against the said order; further for 2019-20 to 2021-22 only Intimations are received till 31st March, 2024 and subsequent to the year end the Company has received show cause notices for the same. The Assessments for these years are still pending. The management does not expect any material liability with respect to Intimations/SCN received for the these years.
Note: Future cash outflows in respect of matters considered disputed are determinable only on receipt of judgments/ decisions pending at various forums/authorities. The management does not expect these claims to succeed and accordingly, no provision has been recognised in the financial statements.
(b) Against bond (mainly GST benefit):
Duty free imports for which export obligation is pending as at year end amounting to '' 48 Lakhs (Previous Year '' 67 Lakhs). In the event Company does not meet the respective obligation, GST would have to be paid for which input credit would be available.
(c) Other matters:
Kotak Mahindra Bank has given bank guarantee to two of the customers of the Company amounting to '' 15 Lakhs (Previous year: 15 Lakhs) against which the Company has provided bank deposit of same amount which is kept under lien by the Bank. Further, the Company has availed bank overdraft facility from ICICI Bank Limited against which the Company has provided bank deposit of '' 2 Lakhs (Previous year: 2 Lakhs) which is kept under lien by the Bank
~| CAPITAL COMMITMENTS AND OTHER COMMITMENTS
(a) Estimated amount of contracts remaining to be executed (net of advances) on capital account is '' 25 Lakhs (Previous year: '' 1,997 Lakhs).
(b) Company is committed to fund its wholly owned subsidiaries as and when required.
46| DISCLOSURE UNDER IND AS H6 âLEASES''
The Company has adopted Ind AS 116 ''Leases'' effective from 1st April, 2019. Also refer note 2.2(p) for accounting policy on leases.
a) As a Lessee
The Company''s lease assets primarily consist of leases for office premises, warehouses, vehicles and computers. For lease arrangement with lease terms of 12 months or less, the Company has applied the ''short-term lease'' recognition exemptions and for lease with lower underlying value asset, the Company has applied the ''low value asset'' recognition exemption.
1. The right-of-use asset is depreciated using the straight-line method (SLM) from the commencement date over the lease term of right-of-use asset. For details of addition, depreciation and carrying amount of right of use asset, refer note 4.
2. Also refer note 62 for contractual maturities of lease liability (as per Ind AS 107).
3. For the purpose of calculation of lease liabilities, future lease payments are discounted at incremental borrowing rate for the lease term of 5 years. This lease term is arrived based on reasonable certainty of renewal of lease agreement.
For assets given on cancellable lease, it''s depreciation and carrying amount, refer note 6. Also, for rental income earned on that properties, refer note 6.1, which is recognised on a straight line basis over the term of the relevant lease for long term leases.
47| DERIVATIVE FINANCIAL INSTRUMENTS
The Company uses derivative financial instruments such as forwards and options, to hedge its risks associated with foreign exchange fluctuation. The counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted price for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the market place.
(e) Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.
If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes.
The amount of gain/(loss) recognised in Statement of Profit and Loss on account of hedge ineffectiveness for cash flow hedges for the year ended 31st March, 2024 is '' NIL (Previous year : '' NIL).
(b) Defined benefit plan and long term employment benefits:
These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary increase risk:
I. Investment/Interest risk: The Company is exposed to Investment/Interest risk if the return on the invested fund falls below the discount rate used to arrive at present value of the benefit. Since the scheme is unfunded in case of compensated absence, the Company is not exposed to Investment/Interest risk.
II. Longevity Risk: The Company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the employee separating from the employer for any reason.
III. Risk of Salary Increase: The Company is exposed to higher liability if the future salaries rise more than assumption of salary escalation.
(i) Defined benefit plan and long term employment benefits: Gratuity (Defined benefit plan):
In respect of Gratuity, the Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, funded defined benefits plan for qualified employees. However, gratuity for employees of the demerged undertaking (taken over by the Company from subsidiary ''Navneet Futuretech Limited) is unfunded. The scheme provided for lump sum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The Company has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method. The following table sets out for the status of gratuity plan:
Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance Sheet.
Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. The Company declares and pays dividend in Indian rupees. (Also refer Statement of Changes in Equity). Also refer Dividend Distribution Policy of the Company given on the website in ''Corporate Governance Policies'' section.
57| DISCLOSURE AS PER IND AS 10 EVENTS AFTER THE REPORTING PERIOD''
a) The directors have recommended payment of final dividend for 2023-24 of '' 2.60 per equity share (i.e. 130%) in its board of directors meeting held on 22nd May, 2024. This proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting.
b) No other significant event has occurred subsequent to year end.
(ii) Financial Guarantee are issued in favour of banks against loans taken by subsidiary. The amount of guarantee is '' 4,000 Lakhs (Previous Year '' 4,000 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 9).
(iii) Transactions with related parties in the nature of sale of goods, rendering of services, purchase of goods, sale of assets, purchase of assets procurement of services are at arm''s length price. The related party transactions and year end balances do not include expenses paid on behalf of related parties and its recovery.
(iv) Interest rate of 7.5% (Previous year: 8.5%) per annum has been charged to Indiannica Learning Private Limited.
The Company''s operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The Company is organised into business units based on its products and services and has three reportable segments as follows
i) Publication
ii) Stationery
iii) Others comprises of revenue from generation of power by windmill, trading items etc.
The accounting principles and policies used in the preparation of the Standalone Financial Statements, as set out in the note on material accounting policies, are also consistently applied to record assets, liabilities, revenue and expenditure, in individual segments.
(i) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the respective segment, however, revenue and expenses which can not be identified or allocated reasonably to a segment being related to the enterprise as a whole have been grouped as unallocable.
(ii) Segment assets and segment liabilities represent assets and liabilities of respective segments , however the assets and liabilities not identifiable or allocable on reasonable basis being related to enterprise as a whole have been grouped as unallocable.
(iii) In publication segment, concentration of revenues from one customer of the Company were 6% and 19% of total publication revenue for the year ended 31st March, 2024 and 31st March, 2023 respectively and in stationery segment, concentration of revenues from two customer of the Company was 24.12% and 12.73% for the year ended 31st March, 2024 and 24.64% and 10.40% from two customer of the Company for the year ended 31st March, 2023.
(iv) Sales between operating segments are carried out at arm''s length basis and are eliminated at Company level consolidation.
Note: As per IND AS 108, ''Operating Segment'', non-current assets considered above are other than financial instruments,
deferred tax assets, post-employment benefit assets etc.
a) The Board of Directors at its meeting held on 31st August, 2023 approved the Composite Scheme of Arrangement (''Scheme''), for amalgamation of ''Genext Students Private Limited'' (''GSPL) (step down subsidiary) with the Company and the demerger of Edtech business of ''Navneet Futuretech Limited'' (''NFL!) (wholly owned subsidiary) into the Company. The Mumbai Bench of the National Company Law Tribunal (''NCLT''), through its order dated 6th May, 2024 has approved the scheme with the appointed date of the merger being 1st April, 2023. A copy of the order was filed with the Registrar of Companies, on 17th May, 2024 in accordance with the applicable provisions of the Companies Act 2013 and accordingly the Scheme became effective from 17th May, 2024, upon completion of necessary formalities.
b) The merger has been accounted under the ''pooling of interests'' method in accordance with Appendix C of Ind AS 103 ''Business Combinations'' and impact has been considered from the beginning of the preceding year i.e. 1st April, 2022. Accordingly, the operations of the demerged division (software businnes of NFL) and merged business of GSPL for the period 1st April, 2022 till 31st March, 2023 was given effect by restating the financial statement of the Company for the previous year i.e. financial year ended 31st March, 2023. The restated financial statements of the Company has been approved by the Board of Directors of the Company at their meeting held on 22nd May, 2024.
c) Pursuant to the Scheme of Arrangement :
i) The Company has recorded all assets and liabilities of the demerged division of NFL and transferor Company GSPL at their respective book values thereof as appearing in the books of the NFL and GSPL as at 1st April, 2022 and also as appearing in the Consolidated Financial Statment . The balances of Assets and liabilities as stated above has been considered based on the audited financial statements of NFL and GSPL as at and for the year ended 31st March, 2022 which was approved by the Board of the directors at their meeting held on 13th May, 2022.
ii) The difference, between the book value of the assets over the liabilities of the demerged division of NFL and transferor company GSPL, after adjusting impact of capital reduction of Equity of NFL in retained earnings and elimination of inter-company adjustments has been recorded as amalgmation reserve in the books of the Company. Summary of relevant information has been provided below:
6l| FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The management assessed that the fair values of financial asset and financial liabilities approximate their carrying
amounts.
The following methods and assumptions were used to estimate the fair values:
(a) Fair values of cash and cash equivalents, trade receivables, interest accrued on deposits with bank, bank deposits, trade payables and other financial liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.
(b) The management has considered fair value of security deposits, loan from bank, loan from related party, equal to their carrying value as fair values based on the current market interest rates and other risk factors approximate to carrying value.
* There has been no transfer between level 1 and level 2 during the year ended 31st March, 2024 and 31st March, 2023. Level is NA, since valued at amortised cost.
Notes:
(i) For Details of income and gains related to financial instruments (Refer Note 34).
(ii) Investments in subsidiaries are valued at cost less impairment loss (if any) in accordance with Ind AS 27 ''Separate Financial Statements'', consequently the same is not disclosed in above table.
(i) Financial Guarantees are issued in favour of banks against loans taken by subsidiary. The amount of guarantee is '' 4,000 Lakhs (Previous Year '' 4,000 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 9.2 and 27).
(ii) Bank Guarantee is given to electricity department (DNH Power Distribution Corporation Limited and Uttar Gujarat Vij Company Ltd) for electricity deposit of ''91 Lakhs (Previous Year '' 116 Lakhs), Insurance agency (Avalon Risk Management Insurance Agency LLC) of '' 131 Lakhs (Previous Year- NIL) given to custom department for imports to be made and to supplier (Century Pulp And Paper) for securing supplies of materials of '' 60 Lakhs (Previous Year '' 60 Lakhs ).The Company does not anticipate any liability on these guarantees.
(iii) Kotak Mahindra Bank has given bank guarantee to two of the customers of the Company amounting to '' 17 Lakhs (Previous year: '' 15 Lakhs) against which the Company has provided bank deposit of same amount which is kept under lien by the Bank. Further, the Company has availed bank overdraft facility from ICICI Bank Limited against which the Company has provided bank deposit of '' 2 Lakhs (Previous year: '' 2 Lakhs) which is kept under lien by the Bank (Refer note 17.3).
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk primarily include trade receivables, trade payables and cash and cash equivalents.
The sensitivity analysis in the following sections relate to the position for the periods presented. The sensitivity analysis has been prepared on the basis that the amount of net debt and the proportion of financial instruments in foreign currencies are all constant. The analysis exclude the impact of movements in market variables on the carrying values of gratuity obligation and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks based on the financial assets and financial liabilities held at the periods presented.
The Company is not exposed to any significant price risk.
e) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other financial assets.
Customer credit risk is managed based on the Company''s established policy, procedures and control relating to customer credit risk management. The Company evaluates the concentration of risk with respect to trade receivables as low. Out of total trade receivables balance as at 31st March, 2024, '' 4,132 Lakhs(Previous year '' 3,503 Lakhs) is due from a single customer being the Company''s largest customer. There are no other customers who represent more than 10% of the balance of trade receivables. Outstanding customer receivables are regularly monitored by the management.
An impairment analysis is performed at each reporting date on an individual basis for major customers.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company generally does not hold collateral as security except in one case refer note 16.4.
Deposits with banks and other financial assets
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy.
f) Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum level of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis.
The Company is not exposed to significant liquidity risk based on past performance and current expectations. The Company believes that the cash and cash equivalents, cash generated from operations and available un-drawn credit facilities, will satisfy its working capital needs, capital expenditure, investment requirements, commitments and other liquidity requirements associated with its existing operations, through at least the next twelve months.
Note: Investments in subsidiaries are valued at cost less impairment loss (if any) in accordance with Ind AS 27 ''Separate Financial Statements'', consequently the same is not disclosed in maturity profile tabulated above.
The note below sets out details of the undrawn facilities that will be available for future operating facilities and to settle capital commitments of the Company.
For the purpose of the Company''s capital management, capital includes issued equity capital, and all other equity reserves attributable to the equity shareholders. The primary objective of the Company''s capital management is to maximise the shareholder value.
The Company manages its capital structure and makes suitable adjustments in light of changes in economic conditions.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, loan obligation, trade and other payables and less cash and cash equivalents.
64.2 Aggregate outflow on account of direct taxes paid is '' 8,427 Lakhs (Previous year '' 6,728 Lakhs).
64.3 Net cash inflow from operating activity netted off with expenditure on Corporate Social Responsibility (CSR) expenditure of '' 425 Lakhs (Previous year '' 500 Lakhs) (Refer note 54).
65 Details of the sources of estimation uncertainty in related to significant accounting estimates and judgements:
i) Impairment of investment in subsidiaries
Refer note 2.3 (b) of material accounting policies and note 9.3 for significant accounting estimates and judgements used in performing impairment test on investment value of subsidiaries.
ii) Provision for employee benefits
Refer note 2.3 (e) of material accounting policies and note 48(b)(i) for significant accounting estimates and judgements used and it''s financial impact of sensitivity of such assumptions.
66 During the previous year, one of the subsidiary Esense Learning Private Limited has changed its name from Esense Learning Private Limited to ''Esense Learning Limited'' with effect from 27th April, 2022. Further, Esense Learning Limited has changed its name from Esense Learning Limited to ''Navneet Futuretech Limited'' with effect from 17th May, 2022.
b) Goodwill was created in financial year 2021-22 on acquisition of subsidiary Genext Students Private Limited and appearing in the consolidated financial statements. Upon accounting as per pooling of interest method for merger of Genext Students Private Limited with Navneet Education Limited, the said goodwill is now part of the standalone financial statement.
c) Impairment test for goodwill
The goodwill is mainly on account of future benefits due to the technology platform, content, data base which is being used by the publication business for creating digital content/books with digital content. Considering the overall profitability of the publication business, no provision for impairment is considered necessary.
As on 31st March, 2024 the Company has not been declared wilful defaulter by any bank/financial institution or other lender.
70| DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence no disclosure is required.
711 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The Company does not have any charges or satisfaction yet to be registered with the registrar of companies(ROC) beyond the statutory period as at 31st March, 2024.
~| COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
No proceedings have been initiated or are pending against the Company as on 31st March, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
No proceedings have been initiated or are pending against the Company as on 31st March, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder
76 Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either NIL or Not Applicable.
77 The Company has used an accounting software for maintaining its books of account for the financial year ended 31st March, 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.
78 Previous Year Figures have been regrouped/rearranged wherever necessary. This mainly pertaining to:
a) The Company has disclosed amount under protest in ''Other non current assets'' (Refer note 14), earlier this was forming part of ''Other non current financias assets'' (Refer note 11)
b) The Company has disclosed amount under ''Sales and marketing expenses'' (refer note 41) seprately on the face of Profit and Loss statement which was earlier forming part of ''Other expense'' (refer note 42). However due to this regrouping there is no impact on Profit and Loss of the Company.
79 Figures less than '' 50,000 have been denoted by #.
Mar 31, 2023
6.2 Building with a carrying amount of ''1,101 Lakhs (Previous year: ''1,093 Lakhs) are subject to first charge to secure bank loan. The same property is provided on cancellable lease to one of its subsidiary as at 31st March, 2023.
6.3 Fair value of investment properties as at year-end 31st March, 2023 is '' 1,838 Lakhs, determined based on last valuation which was carried by external independent property valuers, having appropriate recognised professional qualifications as at year-ended 31st March, 2022. As per assessment and judgement by the Management, there is no material change in valuation of these investment properties since then. During the current year, the company has sold land & building of vasai at sale consideration of '' 651 Lakhs. In the previous year, part of the assets which were transferred to asset held for sale in 2020-21 are sold at sale consideration of '' 7,000 Lakhs as per arrangement made with one of the related parties .
6.4 The Company has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements and there are no restriction on remittance of income and proceed on disposal (except restriction over disposal of investment property as disclosed in note 6.2 above).
9.2 Financial guarantees are issued in favour of the banks against loan taken by subsidiaries. The amount of guarantee is '' 5,650 Lakhs (Previous Year '' 5,650 Lakhs). Fair value of such guarantee amount is included to investment disclosed above amounting to '' 238 Lakhs (Previous year: '' 229 Lakhs) and '' 195 Lakhs (Previous year: '' 175 Lakhs) for Navneet Futuretech Limited and Indiannica Learning Private Limited respectively. (Refer footnote (ii) of note 55).
9.3 Impairment test for investments and loan to âNavneet Futuretech Limited'' & âIndiannica Learning Private Limited'':
The Company has made long-term investments into these subsidiaries. These companies have incurred continuous losses in earlier years. Considering the same, detail impairment test has been carried out by the Management. Disclosure in regards to impairment tests carried in regards to these subsidiaries are as under:
a) Impairment test for investment into ''Indiannica Learning Private Limited''
During the year, the impairment test carried out by the management including the business outlook, basis of estimates, valuation technique (fair value report obtained from registered valuer), appropriateness & reasonableness of assumptions, actual performance as against budget and various other parameters with the management of the subsidiary company, and based on which, the Company has reversed the provision of impairment loss made in earlier years of '' 1,878 Lakhs
In the previous year, Company had recognised impairment loss of '' 2,233 Lakhs based on business outlook, basis of estimates, valuation technique, appropriateness & reasonableness of assumptions, actual performance as against budget and various other parameters with the management of the subsidiary company .
This impairment write back / loss is shown in the statement of profit and loss under ''Exceptional items''.
b) Impairment test for investment in ''Navneet Futuretech Limited''
Valuation of equity share investment into this subsidiary Company has been carried out by the management (also fair value report obtained from registered valuer). The Company based on the said valuation report, future business prospects has reversed the provision of impairment loss made in earlier years of '' 526 Lakhs. This impairment write back is shown in the statement of profit and loss under ''Exceptional items''.
c) Key assumptions used for value in use calculations:
The valuation of the subsidiaries has been carried out by registered valuers. Based on the business model of the subsidiary, different valuation methods which in their opinion are most ideal has been used by them.
In current year with respect to Indiannica Learning Private Limited the valuation is done based on DCF model and with respect to Navneet Futuretech Limited valuation is done based on revenue multiple.
i) Discount rate (wherever relevant)
Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation of each CGU is derived from its Weighted Average Cost of Capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company''s investors. The cost of debt is based on the interest-bearing borrowings of the Company. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
ii) Growth rate estimate
Growth rate is based on the estimates of growth in business expected by the Management of the Company after taking into account external / industry growth, customer feedback etc.
iii) Revenue multiple
The revenue multiple is based on market comparables given in valuation report by registered valuer.
Management of the Company has performed sensitivity analysis on the above key assumptions to determine value in use.
9.4 The Company had purchased / acquired 100% equity share capital of the âNavneet Tech Ventures Private Limited'' (i.e.
10,000 equity shares of '' 10 each, fully paid up) at face value from existing shareholders during the year ended 31st March, 2022, accordingly it had become wholly owned subsidiary of the Company with effect from 29th June, 2021. The Company had invested in 56,50,004 equity shares at face value of '' 10 each (amounting to '' 565 Lakhs), fully paid up during the year ended 31st March, 2022. Further, the Company had invested in 2,47,80,003 0% fully and compulsorily convertible debentures (âFCCDs'') of face value of '' 10 each (amounting to '' 2,478 Lakhs) which shall be converted into equal number of equity share of the face value of '' 10 of the said subsidiary Company during the year ended 31st March, 2022. During the year ended 31 st March, 2022, there was a change in terms of issue of these 0% FCCDs, which were converted into 0% fully optionally convertible debentures (FOCDs). Subsequent to the change, 58,57,357 0% FOCDs of face value '' 10 each (amounting to '' 586 Lakhs) were redeemed.
During the year ended 31st March, 2023, 1,89,22,646 0% FCCDs of face value '' 10 each (amounting to '' 1,892 Lakhs) have been redeemed by the said subsidiary.
9.5 Refer note 63 for information on principal place of business and the Company''s ownership interest in the above Subsidiaries and Associate Companies.
9.6 The Company holds 93% of voting rights and equivalent share in profit / loss with respect to the investment made in âNavneet Learning LLP'' (subsidiary entity) in accordance with LLP agreement and the underlying value of the assets against this investment is significantly higher as compared to investments made.
9.7 During the earlier years, the Company had invested 4,90,00,000 in Optionally Convertible Preference Shares (âOCPS'') of '' 10 each aggregating to '' 4,900 Lakhs in its subsidiary company âIndiannica Learning Private Limited'' at face value. The OCPSs carries 0% coupon rate. The Subsidiary Company has an option to convert OCPS into same number of Equity shares of the Company of '' 10 each (being face value of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company, they shall be redeemed at par in full not later than 20 years from the date of allotment.
9.8 During the year ended 31st March, 2022, the Company had invested in 4,37,50,000 OCPS of '' 10 each aggregating to '' 4,375 Lakhs in its subsidiary company âNavneet Futuretech Limited'' (formerly known as Esense Learning Limited) at face value. The OCPSs carried 0% coupon rate. The subsidiary has an option to convert OCPS into 1.103 Equity shares of the Company of '' 10 each (being face value of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company, they shall be redeemed at par in full not later than 20 years from the date of allotment. Further during the year ended 31st March, 2023, Navneet Futuretech Limited redeemed '' 6,675 Lakhs OCPS at face value (i.e. 6,67,50,000 OCPS of '' 10 each, fully paid up).
9.9 During the year, the Company has invested '' 23,525 Lakhs (23,52,50,000 equity shares of '' 10 each, fully paid up) equity shares in wholly owned subsidiary âNavneet Futuretech Limited'' (formerly known as Esense Learning Limited) by the way of rights issue.
9.10 As per Ind AS 109 âFinancial Instruments'', at initial recognition, the Company had chosen to designate investment in Career Point Limited as âFair Value through Profit and Loss''. Career Point Limited shares are listed on National Stock Exchange and Bombay Stock Exchange.
9.11 In the earlier years, as per pledge arrangement entered into with the party against amount recoverable of '' 158 Lakhs (Previous year ''179 Lakhs) (disclosed under âOther Non Current Assets'' as advance from suppliers in note 13), pledge is invoked by the Company and accordingly shares of âShrenik Limited'' reflecting in demat account but not reflecting in investment schedule. Further, mark to market gain on such shares is also not accounted as the Company does not have contractual right to recover amount in excess to recoverable amount. Considering the time period for which the matter is pending and slow recovery process from sale of securities, as a matter of abundant caution provision of '' 158 Lakhs has been made during the year.
10.1 The above amount includes '' 1,459 Lakhs (Previous year : '' 1,459 Lakhs) from one party against which Company has filed a legal case with Honourable High Court of Mumbai. As per the interim order, the Company possesses the property deed of an immovable property for recovery of the due, which is adequate to cover loan amount. The Company expects the matter to be favourably settled in its favour. Considering the interim order of the Hon''ble high court of Mumbai and the possession of the deed of the property, loan against the said property is considered secured. The underlying value of the assets is significantly greater than the carrying value of the loan. Considering the same no provision is required to be made.
14.1 During the year, '' 626 Lakhs (Previous year '' 454 Lakhs) was recognised as an expense for inventories.
14.2 Inventories are subject to first charge to secure bank loan.
14.3 Inventory amount disclosed above is netted off amount after considering impact of provision for slow moving inventories of '' 644 Lakhs (Previous year: '' 287 Lakhs).
15.1 Trade receivables are subject to first charge to secure bank loan.
15.2 Trade receivables are generally due between 30 to 90 days. The Company''s term includes charging of interest for delayed payment beyond agreed credit days. However, the Company charges interest after considering the historical trend, business prospects, reason for delay, market conditions etc.
15.3 Credit risk is managed at the operational segment level (i.e. publication and stationery). The credit limit and credit period are fixed for each customer after evaluating the financial position, past performance, business opportunities, credit references etc. The credit limit and the credit period are reviewed regularly at periodical intervals.
15.4 As per Memorandum of Understanding with one of the party, a sum of '' 286 Lakhs (Previous year: '' 286 Lakhs) is secured by pledge of immovable property. Considering the time period for which the matter is pending, the Company has made provision of '' 70 Lakhs in current financial year.
15.5 The Company follows simplified approach & the trade receivables do not contain significant financing component and accordingly the Company does not separately track changes in credit risk of trade receivables as the impairment amount represents "lifetime" expected credit loss. Accordingly, the disclosure as required by Schedule III, Division II as regards (a) Trade Receivables which have significant increase in credit risk & (b) Trade Receivables which are credit impaired is not required. In addition to the pool assessment, the Company carried out individual assessment in respect of certain parties where the possibility of default in collection of trade receivable was high.
17.1 There is no amount due to Investor Education & Protection Fund as on 31st March, 2023.
17.2 Bank deposit includes interest accrued but not due amounting to '' 12 Lakhs (Previous year: '' 9 Lakhs) and this deposit is under lien for tender deposit given to a customer and education department.
17.3 Other bank balances represent restricted deposits (along-with accrued interest thereon) under lien placed with sales tax authorities.
18.1 The loans and advances given to various parties are for commercial purpose and same are repayable on demand.
18.2 The above amount includes '' NIL (Previous Year '' 55 Lakhs) advanced to one party against which the Company had filed a legal case in the court of learned Metropolitan Magistrate''s Court, Mazgaon, Mumbai.
19.1 Gratuity recoverable from Employee''s Gratuity Fund maintained with Life Insurance Corporation represents gratuity amount paid to employees directly during the year on behalf such fund.
19.2 Refund receivable from government authority includes GST refunds receivables from government authorities which are expected to be realised within 12 months. Accordingly, the same is grouped as current financial assets. Out of which, subsequent to year end, the Company has received refund of '' 1,499 Lakhs (Previous year: '' 16 Lakhs)
19.3 As the Company is rightfully entitled to receive export incentives, the same is classified as financial asset in accordance with ITFG clarification issued by the Institute of Chartered Accountants of India.
21.2 Terms / Rights Attached to Equity Shares
The Company has only one class of equity shares having a par face value of '' 2/- per share. Each holder of equity shares is entitled to one vote per share and all rank pari passu. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the equity shares held by the shareholders.
24.1 Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences.
Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of: (a) deductible temporary differences; (b) the carry forward of unused tax losses; and (c) the carry forward of unused tax credits (Refer note 52 for reconciliation between the provision of income tax of the Company and amounts computed by applying the Indian statutory income tax rate to profit before taxes).
25.1 Secured working capital demand loan includes interest accrued but not due amounting to '' 20 Lakhs (Previous year: '' #). Interest rate for secured rupee loan is ranging from 7.50% to 7.90%.
25.2 As at year ended 31st March, 2023, Commercial papers (unsecured) amounts to '' 5,000 Lakhs (Previous year: '' 6,000 Lakhs) carrying coupon rate 7.85%. Commercial papers amounting to '' 3,500 Lakhs were issued and fully repaid during year carrying interest rate 4.40% (Previous Year '' 7,500 Lakhs). These Commercial papers were listed on the National Stock Exchange.
25.3 As at year, the Company has been sanctioned working capital limits from banks on the basis of security of current assets; for which the quarterly returns or statements has been filed by the Company with such banks which are in agreement with the books of accounts of the Company.
25.4 The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or entities, including foreign entities ("Intermediaries"), with the understanding that the intermediary shall whether directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of ultimate beneficiaries.
The Company has not received any funds from any person(s) or entities including foreign entities ("Funding Parties") with the understanding that such Company shall whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provide guarantee, security or the like on behalf of the Ultimate beneficiaries.
Note: The information required to be disclosed in pursuance with the MSMED Act has been determined to the extent of identification of such vendors based on information given by the vendors to the Company.
26.2 Trade payables are non-interest bearing and are normally settled as per due dates generally ranging from 0 to 30 days.
26.3 The Company has financial risk management policies in place to ensure that all payables are paid within the agreed credit terms.
29.1 The movement represents the provision created for the year arising out of the actuarial valuation after considering the actual settlements made during the year.
29.2 In case of accumulated compensated absences outstanding as at year-end, the employees have already earned the right to avail the leave and they are normally entitled to avail the leave at any time during the year. As the employees has an unconditional right to avail the leave, the same are classified as âcurrent provisions'' as per the guidance note on Schedule III Division II of the Companies Act, 2013 issued by the Institute of Chartered Accountants of India.
31.1 Provision for Refund Liability:
The above amount is net of provision made for refund liability amounting to '' 462 Lakhs (Previous year '' 582 Lakhs).
Also refer Note 49 (a) and Note 29.
31.2 Disclosures of Ind AS 115:
(a) For accounting policy of revenue recognition, refer note 2.2 (k).
(b) Contracts with customer and significant judgement in applying the standard
i) The Company''s operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The company applies the guidance provided in Ind AS 115 ''Revenue from contracts with customer'' for determining the timing of recognition of revenue.
ii) For details of revenue recognised from contracts with customers, refer note 31 above.
iii) There are no contract assets arising from the Company''s contract with customers.
(c) Disaggregation of revenue
i) For disaggregation of revenue, refer break-up given in note 31 above and note 56 (B).
ii) Refer note 56 (A) (iii) for details regarding customer concentration that represents 10% or more of the Company''s total revenue during the year ended 31st March, 2023 and 31st March, 2022.
(d) Performance obligation
i) For timing of satisfaction of its performance obligations, refer note 2.2(k) of significant accounting policies of the Company.
ii) Unsatisfied (or partially satisfied) performance obligations are due to unexpired contract period in cases of contract where exclusive license is granted to translate, print, publish and sale the translated book in defined territory. The aggregate value of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is '' Nil (Previous year: '' Nil). Aggregate value of transaction with unsatisfied performance obligation was '' Nil (Previous year: '' Nil) which is fully recognised as revenue in the current year upon fulfilment of obligations.
31.5 The Company receives government assistance in the form of MEIS license / duty drawback, which are issued to eligible exporters. Above revenue includes MEIS, DFIA, RODTEP as applicable and duty drawback income of '' 1,206 Lakhs (Previous year: '' 1,160 Lakhs). Out of the revenue recognised, '' 193 Lakhs (Previous year: '' 734 Lakhs) will be received from government upon receipt of balance amount from customer and fulfilment of other procedural formalities.
Exceptional items represents:
For the year ended 31st March, 2023
a) '' 633 Lakhs towards profit on sale of property.
b) '' 2,404 Lakhs towards reversal of provision made for impairment of investment in wholly owned subsidiaries based on valuation reports obtained from registered valuer. (Refer note 9.3)
For the year ended 31st March, 2022
a) '' 6,813 Lakhs towards profit on sale of property.
b) '' 2,233 Lakhs towards provision for impairment of investment in âIndiannica Learning Private Limited'' (Wholly owned subsidiary) driven primarily by the losses incurred during the period, uncertainties and continuous delays in re-opening of schools which has affected the performance of the company. (Refer note 9.3)
(a) Tax matters:
i) For disputed Income tax matters '' 561 Lakhs and (Previous year '' 494 Lakhs) against which amount provided in books is '' 549 Lakhs (Previous year '' 489 Lakhs) and amount paid under protest is '' 484 Lakhs (Previous year '' 418 Lakhs) (Refer below note).
Income tax demands mainly include the appeals filed by the Company before various departmental appellate authorities / High Courts against the disallowances made by income tax authorities of certain deductions / expenses claimed. Pending final decisions, the Company has deposited amounts under protest with Income Tax Authorities.
ii) For disputed sales tax matters '' 2,279 Lakhs (Previous Year '' 2,269 Lakhs) against which amount paid under protest is '' 99 Lakhs (Previous Year: '' 101 Lakhs). (Refer below note)
Sales Tax demands have been mainly raised on account of dispute on rate of certain products, non submission of statutory declarations etc. Pending final decisions, the Company has deposited amounts under protest with Sales Tax Department. Also refer note 39.1.
iii) (a) For disputed GST matters '' 3 Lakhs (Previous Year '' 3 Lakhs) against which amount paid under protest is
'' # (Previous year: '' #) (Refer below note)
GST demand have been mainly raised on account of detention of vehicle by an authority. Pending final decisions, the Company has deposited amounts under protest with GST Department.
(b) For disputed GST matters '' 388 Lakhs (Previous Year '' NIL) against which amount paid under protest is '' 167 Lakhs (Previous year: '' NIL) (Refer below note)
During the year officers from State GST Department conducted Investigation for the period from 1st July, 2017 to 31st March, 2022.The State GST Officers raised certain issues against which Company made payment of '' 300 Lakhs under protest without accepting liability in respect of said issues. Also refer note 11.
In the month of March 2023, Company received Intimation of Liability for FY 2017-18 and 2018-19 from State GST Department intimating total tax liability of '' 388 Lakhs. The Company has disputed the said liability. Such Intimations for remaining years are not yet received.
The management does not expect any material liability with respect to Intimation of Liability received from State GST Department. Further, no show cause notices have been issued so far.
iv) For disputed Excise duty matters '' 9 Lakhs (Previous Year '' NIL) against which amount paid under protest is '' NIL (Previous year: '' NIL) (Refer below note)
Excise demand has arisen on account of dispute in classification of certain intermediary products. Revenue is in appeal before Department''s Appellate Authority against order passed in favour of Company.
Note: Future cash outflows in respect of matters considered disputed are determinable only on receipt of judgments / decisions pending at various forums / authorities. The management does not expect these claims to succeed and accordingly, no provision has been recognised in the financial statements.
(b) Against bond (mainly GST benefit):
Duty free imports for which export obligation is pending as at year end amounting to '' 67 Lakhs (Previous Year '' 11 Lakhs). In the event Company does not meet the respective obligation, GST would have to be paid for which input credit would be available.
~| CAPITAL COMMITMENTS AND OTHER COMMITMENTS
(a) Estimated amount of contracts remaining to be executed (net of advances) on capital account is '' 1,997 Lakhs (Previous year: '' 296 Lakhs).
(b) Company is committed to fund its wholly owned subsidiaries as and when required.
~| DISCLOSURE UNDER IND AS 116 LEASES''
The Company has adopted Ind AS 116 âLeases'' effective from 1st April, 2019. Also refer note 2.2(p) for accounting policy on leases.
a) As a Lessee
The Company''s lease assets primarily consist of leases for office premises, warehouses, vehicles and computers. For lease arrangement with lease terms of 12 months or less, the Company has applied the âshort-term lease'' recognition exemptions and for lease with lower underlying value asset, the Company has applied the âlow value asset'' recognition exemption.
1. The right-of-use asset is depreciated using the straight-line method (SLM) from the commencement date over the lease term of right-of-use asset. For details of addition, depreciation and carrying amount of right of use asset, refer note 4.
2. Also refer note 58 for contractual maturities of lease liability (as per Ind AS 107).
3. For the purpose of calculation of lease liabilities, future lease payments are discounted at incremental borrowing rate for the lease term of 5 years. This lease term is arrived based on reasonable certainty of renewal of lease agreement.
b) As a Lessor
For assets given on cancellable lease, it''s depreciation and carrying amount, refer note 6. Also, for rental income earned on that properties, refer note 6.1, which is recognised on a straight line basis over the term of the relevant lease for long term leases.
~| DERIVATIVE FINANCIAL INSTRUMENTS
The Company uses derivative financial instruments such as forwards and options, to hedge its risks associated with foreign exchange fluctuation. The counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted price for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the market place.
(e) Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.
If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes.
The amount of gain / (loss) recognised in Statement of Profit and Loss on account of hedge ineffectiveness for cash flow hedges for the year ended 31st March, 2023 is '' NIL (Previous year : '' NIL).
These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary increase risk:
I. Investment / Interest risk: The Company is exposed to Investment / Interest risk if the return on the invested fund falls below the discount rate used to arrive at present value of the benefit. Since the scheme is unfunded in case of compensated absence, the Company is not exposed to Investment / Interest risk.
II. Longevity Risk: The Company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the employee separating from the employer for any reason.
III. Risk of Salary Increase: The Company is exposed to higher liability if the future salaries rise more than assumption of salary escalation.
(i) Defined benefit plan and long term employment benefits: Gratuity (Defined benefit plan):
In respect of Gratuity, the Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, funded defined benefits plan for qualified employees. The scheme provided for lump sum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The Company has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method. The following table sets out for the status of gratuity plan:
Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance Sheet.
The Company contributes all ascertained liabilities towards gratuity to the Life Insurance Corporation of India under their Group Gratuity Scheme. The reimbursement is subject to insurer''s Surrender Policy.
As at 31st March, 2023 and 31st March, 2022, the plan assets have been primarily invested in Government securities. The Company expects to contribute ''250 Lakhs to the gratuity scheme during the next financial year.
In respect of Compensated absences, accrual is made on the basis of a year-end actuarial valuation in pursuance of the Company''s leave rules.
The Company has provided for compensated absences based on the actuarial valuation done as per Project Unit Credit Method. The following table sets out for the status of leave encashment plan:
51 As per Section 135 of the Companies Act 2013, a Corporate Social Responsibility (CSR) Committee has been formed by the Company. The areas for CSR activities are Promoting Education, Preventive Health care, Animal welfare & others which are as per eligible activities specified in Schedule VII of the Companies Act, 2013. (Refer also note 60.3)
Note: Since the Company has spent in excess of the amount which was required to be spent for 2022-23, the Company is entitled to carry forward the amount spent of '' 125 Lakhs (P.Y. '' Nil) to subsequent three financial years respectively which can be set off against CSR obligations of these years. However, for accounting purpose, cumulative excess amount spent of '' 125 Lakhs (P.Y. '' Nil) is not considered as prepaid expenses.
52.1 Deferred tax asset is not recognised on provision towards impairment loss on investments amounting to '' Nil (Previous year: '' 2,995 Lakhs) due to lack of reasonable certainty as regard timing of reversal.
52.2 In the opinion of the Management, the Company does not have any item of allowance / disallowance; tax treatment of which is uncertain on account of on-going disputes with the authorities.
Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. The Company declares and pays dividend in Indian rupees. (Also refer Statement of Changes in Equity). Also refer Dividend Distribution Policy of the Company given on the website in âCorporate Governance Policies'' section.
54| DISCLOSURE AS PER IND AS 10 EVENTS AFTER THE REPORTING PERIOD''
a) The directors have recommended payment of final dividend for 2022-23 of '' 2.60 per equity share (i.e. 130%) in its board of directors meeting held on 16th May, 2023. This proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting.
b) No other significant event has occurred subsequent to year end.
Footnote:
(i) The above figure excludes provision for gratuity and compensated absences which have been actuarially determined on overall basis.
(ii) Financial Guarantee are issued in favour of banks against loans taken by subsidiaries. The amount of guarantee is '' 5,650 Lakhs (Previous Year '' 5,650 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 9).
(iii) Transactions with related parties in the nature of sale of goods, rendering of services, purchase of goods, sale of assets, purchase of assets procurement of services are at arm''s length price. The related party transactions and year end balances do not include expenses paid on behalf of related parties and its recovery.
(iv) Interest rate of 5% (Previous Year: 5%) has been charged to Navneet Futuretech Limited and 6.5% to 7% (Previous year: 7%) per annum has been charged to Indiannica Learning Private Limited.
The Company''s operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The Company is organised into business units based on its products and services and has three reportable segments as follows:
i) Publication
ii) Stationery
iii) Others comprises of revenue from generation of power by windmill, trading items etc.
The accounting principles and policies used in the preparation of the Standalone Financial Statements, as set out in the note on significant accounting policies, are also consistently applied to record assets, liabilities, revenue and expenditure, in individual segments.
Notes :
(i) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the respective segment, however, revenue and expenses which can not be identified or allocated reasonably to a segment being related to the enterprise as a whole have been grouped as unallocable.
(ii) Segment assets and segment liabilities represent assets and liabilities of respective segments , however the assets and liabilities not identifiable or allocable on reasonable basis being related to enterprise as a whole have been grouped as unallocable.
(iii) In publication segment, concentration of revenues from one customer of the Company were 19% and 10.95% of total publication revenue for the year ended 31st March, 2023 and 31st March, 2022 respectively and in stationery segment, concentration of revenues from two customer of the Company was 24.64% and 10.40% for the year ended 31st March, 2023 and 37.12% from only one customer for the year ended 31st March, 2022.
(iv) Sales between operating segments are carried out at arm''s length basis and are eliminated at Company level consolidation.
~| FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The management assessed that the fair values of financial asset and financial liabilities approximate their carrying amounts.
The following methods and assumptions were used to estimate the fair values:
(a) Fair values of cash and cash equivalents, trade receivables, interest accrued on deposits with bank, bank deposits, trade payables and other financial liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.
(b) The management has considered fair value of security deposits, loan from bank, loan from related party, equal to their carrying value as fair values based on the current market interest rates and other risk factors approximate to carrying value.
* There has been no transfer between level 1 and level 2 during the year ended 31st March, 2023 and 31st March, 2022. Level is NA, since valued at amortised cost.
Notes:
(i) For Details of income and gains related to financial instruments (Refer Note 32).
(ii) Investments in subsidiaries are valued at cost less impairment loss (if any) in accordance with Ind AS 27 âSeparate Financial Statements'', consequently the same is not disclosed in above table.
Financial /Bank guarantee:
(i) Financial Guarantees are issued in favour of banks against loans taken by subsidiaries. The amount of guarantee is '' 5,650 Lakhs (Previous Year '' 5,650 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer notes 9.2 and 27).
(ii) Bank Guarantee is given to electricity department (DNH Power Distribution Corporation Limited and Uttar Gujarat Vij Company Limited) for electricity deposit of '' 116 Lakhs (Previous Year '' 80 Lakhs) and to supplier (Century Pulp And Paper) for securing supplies of materials of '' 60 Lakhs (Previous Year '' NIL ).The Company does not anticipate any liability on these guarantees.
58| FINANCIAL RISK MANAGEMENT a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk primarily include trade receivables, trade payables and cash and cash equivalents.
The sensitivity analysis in the following sections relate to the position for the periods presented. The sensitivity analysis has been prepared on the basis that the amount of net debt and the proportion of financial instruments in foreign currencies are all constant. The analysis exclude the impact of movements in market variables on the carrying values of gratuity obligation and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks based on the financial assets and financial liabilities held at the periods presented.
The Company is not exposed to any significant price risk.
e) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other financial assets.
Customer credit risk is managed based on the Company''s established policy, procedures and control relating to customer credit risk management. The Company evaluates the concentration of risk with respect to trade receivables as low. Out of total trade receivables balance as at 31st March, 2023, '' 3,503 Lakhs is due from a single customer being the Company''s second largest customer, previous year, the only company that represented more than 10% of the trade receivable was a US based company being the largest customer and the balance outstanding as on 31st March, 2022 was '' 1,805 Lakhs. There are no other customers who represent more than 10% of the balance of trade receivables. Outstanding customer receivables are regularly monitored by the management.
An impairment analysis is performed at each reporting date on an individual basis for major customers.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company generally does not hold collateral as security except in one case refer note 15.4.
Deposits with banks and other financial assets
Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy.
f) Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum level of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis.
The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments.
The Company is not exposed to significant liquidity risk based on past performance and current expectations. The Company believes that the cash and cash equivalents, cash generated from operations and available un-drawn credit facilities, will satisfy its working capital needs, capital expenditure, investment requirements, commitments and other liquidity requirements associated with its existing operations, through at least the next twelve months.
Note: Investments in subsidiaries are valued at cost less impairment loss (if any) in accordance with Ind AS 27 âSeparate Financial Statements'', consequently the same is not disclosed in maturity profile tabulated above.
The note below sets out details of the undrawn facilities that will be available for future operating facilities and to settle capital commitments of the Company.
For the purpose of the Company''s capital management, capital includes issued equity capital, and all other equity reserves attributable to the equity shareholders. The primary objective of the Company''s capital management is to maximise the shareholder value.
The Company manages its capital structure and makes suitable adjustments in light of changes in economic conditions. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, loan obligation, trade and other payables and less cash and cash equivalents.
60.2 Aggregate outflow on account of direct taxes paid is '' 6,710 Lakhs (Previous year '' 4,576 Lakhs).
60.3 Net cash inflow from operating activity netted off with expenditure on Corporate Social Responsibility (CSR) expenditure of '' 500 Lakhs (Previous year '' 457 Lakhs) (Refer note 51).
61 Details of the sources of estimation uncertainty in related to significant accounting estimates and judgements:
i) Impairment of investment in subsidiaries
Refer note 2.3 (b) of significant accounting policies and note 9.3 for significant accounting estimates and judgements used in performing impairment test on investment value of subsidiaries.
ii) Provision for employee benefits
Refer note 2.3 (e) of significant accounting policies and note 48(b)(i) for significant accounting estimates and judgements used and it''s financial impact of sensitivity of such assumptions.
62 During the year, one of the subsidiary Esense Learning Private Limited has changed its name from Esense Learning Private Limited to âEsense Learning Limited'' with effect from 27th April, 2022. Further, Esense Learning Limited has changed its name from Esense Learning Limited to âNavneet Futuretech Limited'' with effect from 17th May, 2022.
Note: The Company was holding 96% of âNavneet Edutech LLP'' till 29th June, 2021. It had retired as partner of âNavneet Edutech LLP'' with effect from 29th June, 2021, and consequently, it ceased to be a subsidiary from 29th June, 2021.
As on 31st March, 2023 the Company has not been declared wilful defaulter by any bank/financial institution or other lender. ~| DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence no disclosure is required.
~| REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The Company does not have any charges or satisfaction yet to be registered with the registrar of companies(ROC) beyond the statutory period as at 31st March, 2023.
67| COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
No proceedings have been initiated or are pending against the Company as on 31st March, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
No proceedings have been initiated or are pending against the Company as on 31st March, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder
Note: Explanation for change in ratio by more than 25%
(i) Increase in borrowings for operation has led to increase in current liability, so there is a decrease in current ratio as compared to previous year.
(ii) Increase in borrowings for operations has increased the debt-equity ratio as compared to previous year.
(iii) Due to increase in profit after tax, return on equity has improved as compared to previous year.
(iv) Inventory turnover ratio has improved as compared to previous year due to increase in sales.
(v) Higher Capital turnover ratio in comparison to previous year denotes short term asset & liabilities are being effectively used to drive sales
(vi) Return on capital employed has improved as compared to previous year due to increase in earnings before interest and tax.
(vii) Fair valuation gain on investment in quoted equity shares has increased leading to favourable return on investment
72 Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either NIL or Not Applicable.
73 Previous Year Figures have been regrouped/rearranged wherever necessary.The Company has disclosed the right to return assets separately effective current year under âOther Current Assets'' (refer note 20). This was earlier forming part of âInventories''. (also refer note 14).
Mar 31, 2022
Building with a carrying amount of ''1,093 Lakhs (Previous year: ''1,149 Lakhs) are subject to first charge to secure bank loan. The same property is provided on cancellable lease to one of its subsidiary as at 31st March, 2022.
Fair value of investment properties as at year-end 31st March, 2022 was determined based on valuation carried by external independent property valuer, having appropriate recognised professional qualifications which was '' 3,175 Lakhs (Previous Year ''2,966 Lakhs). During the year, part of the assets which were transferred to asset held for sale in previous year are sold at sale consideration of '' 7,000 Lakhs as per arrangement made with one of the related parties (also refer note 22.1).
The Company has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements and there are no restriction on remittance of income and proceed on disposal (except restriction over disposal of investment property as disclosed in note 6.2 above).
9.2 Financial guarantees are issued in favour of the banks against loan taken by subsidiaries. The amount of guarantee is '' 5,650 Lakhs (Previous Year '' 5,650 Lakhs). Fair value of such guarantee amount is included to investment disclosed above amounting to '' 229 Lakhs (Previous year: '' 221 Lakhs) and '' 175 Lakhs (Previous year: '' 155 Lakhs) for Navneet Futuretech Limited and Indiannica Learning Private Limited respectively. (Refer footnote (ii) of note 58).
9.3 Impairment test for investments and loan to Navneet Futuretech Limited & Indiannica Learning Private Limited: The Company has made long-term investments into these subsidiaries. These companies have incurred losses during the year and previous years Considering the same, detail impairment test has been carried out by the Management. Disclosure in regards to impairment tests carried in regards to these subsidiaries are as under:
a) Impairment test for investment into âIndiannica Learning Private Limited''
During the year, the impairment test carried out by the management including the business outlook, basis of estimates, valuation technique (fair value report obtained from independent chartered accountant from time to time), appropriateness & reasonableness of assumptions, actual performance as against budget and various other parameters with the management of the subsidiary Company, and based on which, the Company has recognised impairment loss of '' 2, 233 Lakhs (Previous year: '' 237 Lakhs). This loss is charged to the Statement of Profit & Loss under âOther Expenses''. Also refer note 41.
b) Impairment test for investment in âNavneet Futuretech Limited''
Valuation of equity share investment into this subsidiary Company has been carried out by the management (also fair value report was obtained from independent chartered accountant during the previous year ended 31st March, 2021) based on future profitability and business prospects projected in detailed projections provided by Management of the subsidiary Company, and based on which, the Company has recognised impairment loss of '' Nil (Previous year: '' 153 Lakhs). This loss is charged to the Statement of Profit & Loss under âOther Expenses''. Also refer note 41.
c) Key assumptions used for value in use calculations: i) Discount rate
Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation of each CGU is derived from its Weighted Average Cost of Capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company''s investors. The cost of debt is based on the interest-bearing borrowings of the Company. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
ii) Growth rate estimate
Growth rate is based on the estimates of growth in business expected by the Management of the Company after taking into account external / industry growth, customer feedback etc.
Management of the Company has performed sensitivity analysis on the above key assumptions to determine value in use.
9.4 The Company has purchased / acquired 100% equity share capital of the âNavneet Tech Ventures Private Limited'' (i.e.
10,000 equity shares of '' 10 each, fully paid up) at face value from existing shareholders during the year ended 31st March 2022, accordingly it had become wholly owned subsidiary of the Company with effect from 29th June 2021. The Company has invested in 56,50,004 equity shares at face value amounting to '' 565 Lakhs of '' 10 each, fully paid up during the year ended 31st March 2022. Further, the Company had invested in 0% fully and compulsorily convertible debentures (FCCDs) amounting to '' 2,478 Lakhs at face value of '' 10 each which shall be converted into equal number of equity share of the face value of '' 10 of the said subsidiary company during the year ended 31st March 2022. During the year ended 31st March 2022, there was a change in terms of issue of these 0% FCCDs, which were converted into 0% fully optionally convertible debentures (FOCDs). Subsequent to the change, 58,57,356 FOCDs were redeemed at '' 10 each. This investments are for long-term and strategic in nature. In the opinion of management, no impairment provision in the investment value is required as at 31st March, 2022 based on the estimate of future profitability and business prospects.
9.5 Refer note 66 for information on principal place of business and the Company''s ownership interest in the above Subsidiaries.
9.6 The Company holds 93% of voting rights and equivalent share in profit / loss with respect to the investment made in âNavneet Learning LLP'' (subsidiary entity) in accordance with LLP agreement and the underlying value of the assets against this investment is higher as compared to investments made.
9.7 During the earlier years, the Company had invested 4,90,00,000 in Optionally Convertible Preference Shares (OCPS) of '' 10 each aggregating to '' 4,900 Lakhs in its subsidiary Company âIndiannica Learning Private Limited'' at face value. The OCPSs carries 0% coupon rate. The Subsidiary Company has an option to convert OCPS into same number of Equity shares of the Company of '' 10 each (being face value of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company, they shall be redeemed at par in full not later than 20 years from the date of allotment.
9.8 During the year, the Company has invested in 4,37,50,000 (Previous year 2,30,00,000) Optionally Convertible Preference Shares (OCPS) of '' 10 each aggregating to '' 4,375 Lakhs (Previous year '' 2,300 Lakhs) in its subsidiary Company âNavneet Futuretech Limited'' at face value. The OCPSs carries 0% coupon rate. The subsidiary has an option to convert OCPS into 1.103 Equity shares of the Company of '' 10 each (being face value of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company, they shall be redeemed at par in full not later than 20 years from the date of allotment.
9.9 As per Ind AS 109 âFinancial Instruments'', at initial recognition, the Company had chosen to designate investment in Career Point Limited as âFair Value through Profit and Loss''. Career Point Limited shares are listed on National Stock Exchange and Bombay Stock Exchange.
9.10 In the previous year, as per pledge arrangement entered into with the party against amount recoverable of '' 179 Lakhs (Previous year ''195 Lakhs) (disclosed under âOther Non Current Assets'' as advance from suppliers in note 14), pledge is invoked by the Company and accordingly shares of âShrenik Limited'' reflecting in demat account but not reflecting in investment schedule. Further, mark to market gain on such shares is also not accounted as the Company does not have contractual right to recover amount in excess to recoverable amount.
10.1 The above amount includes '' 1,459 Lakhs (Previous year : '' 1,459 Lakhs) from one party against which Company has filed a legal case with Honourable High Court of Mumbai. As per the interim order, the Company possesses the property deed of an immovable property for recovery of the due, which is adequate to cover loan amount. The Company expects the matter to be favourably settled in its favour. Considering the interim order of the Honourable High Court of Mumbai and the possession of the deed of the property, loan against the said property is considered secured.
12.1 Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences.
Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of: (a) deductible temporary differences; (b) the carry forward of unused tax losses; and (c) the carry forward of unused tax credits (Refer note 54 for reconciliation between the provision of income tax of the Company and amounts computed by applying the Indian statutory income tax rate to profit before taxes).
14.1 These advances to suppliers are secured by equity shares of the party. During the year, the Company has invoked its right on securities pledged by this party from whom recoverable amount as at year-end was '' 179 Lakhs (Previous year ''195 Lakhs). As per the terms of pledge agreement, any consideration in excess of amount recoverable from the party shall be refunded back. Accordingly, market value of shares invoked in excess of amount recoverable is not accounted. Also refer note 9.1.
15.1 During the year, '' 454 Lakhs (Previous year '' 339 Lakhs) was recognised as an expense for inventories.
15.2 Inventories are subject to first charge to secure bank loan.
15.3 Inventory amount disclosed above is netted off amount after considering impact of provision for slow moving inventories of '' 287 Lakhs (Previous year: '' 317 Lakhs).
16.1 Trade receivables are subject to first charge to secure bank loan.
16.2 Trade receivables are generally due between 30 to 90 days. The Company''s term includes charging of interest for delayed payment beyond agreed credit days. However, the Company charges interest after considering the historical trend, business prospects, reason for delay, market conditions etc.
16.3 Credit risk is managed at the operational segment level (i.e. publication and stationery). The credit limit and credit period are fixed for each customer after evaluating the financial position, past performance, business opportunities, credit references etc. The credit limit and the credit period are reviewed regularly at periodical intervals.
16.4 As per Memorandum of Understanding with one of the party, a sum of '' 286 Lakhs (Previous year: '' Nil) is secured by mortgage of immovable property.
18.1 There is no amount due to Investor Education & Protection Fund as on 31st March, 2022.
18.2 Bank deposit includes interest accrued but not due amounting to '' 9 Lakhs (Previous year: '' 8 Lakhs) and this deposit is under lien for tender deposit given to a customer.
18.3 Other bank balances represent restricted deposits (along-with accrued interest thereon) under lien placed with sales tax authorities.
19.1 The loans and advances given to various parties are for commercial purpose and same is repayable on demand.
19.2 The above amount includes '' 55 Lakhs from one party against which Company has filed a legal case in the court of learned Metropoltian Magistrate''s Court, Mazgoan, Mumbai.
20.1 Gratuity recoverable from Employee''s Gratuity Fund maintained with Life Insurance Corporation represents gratuity amount paid to employees directly during the year on behalf such fund.
20.2 Refund receivable from government authority includes GST refunds receivables from government authorities which are expected to be realised within 12 months. Accordingly, the same is grouped as current financial assets. Out of which, subsequent to year end, the Company has received refund of ''16 Lakhs (Previous year: '' 271 Lakhs)
20.3 As the Company is rightfully entitled to receive export incentives, the same is classified as financial asset in accordance with ITFG clarification issued by the Institute of Chartered Accountants of India.
23.2 Terms / Rights Attached to Equity Shares
The Company has only one class of equity shares having a par face value of '' 2/- per share. Each holder of equity shares is entitled to one vote per share and all rank pari passu. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the equity shares held by the shareholders.
26.1 Secured working capital demand loan includes interest accrued but not due amounting to '' # (Previous year: '' Nil). Interest rate for secured rupee loan is ranging from 4.35% to 4.75%. Subsequent to the year end, this loan has been fully repaid.
26.2 As at year end, commercial papers (unsecured) amounts to '' 6,000 Lakhs (Previous year: '' NIL). Commercial papers amounting to '' 7,500 Lakhs (Previous year: '' 10,000 Lakhs) were issued and fully repaid during the year carrying interest rates ranging from 3.68% to 3.72% (Previous year: 5.74% to 6.45%). These Commercial papers were listed on the National Stock Exchange.
26.4 The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or entities, including foreign entities ("Intermediaries"), with the understanding that the intermediary shall whether directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of ultimate beneficiaries.
The Company has not received any funds from any person(s) or entities including foreign entities ("Funding Parties") with the understanding that such Company shall whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provide guarantee, security or the like on behalf of the ultimate beneficiaries.
33.1 Provision for Sales Returns:
The above amount is net of provision made for sales return amounting to '' 582 Lakhs (Previous year '' 488 Lakhs). Also
refer note 51 (a) and note 30.
33.2 Disclosures of Ind AS 115:
(a) For accounting policy of revenue recognition, refer note 2.2 (k).
(b) Contracts with customer and significant judgement in applying the standard
i) The Company''s operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The Company applies the guidance provided in Ind AS 115 âRevenue from contracts with customer'' for determining the timing of recognition of revenue.
ii) For details of revenue recognised from contracts with customers, refer note 33 above.
iii) There are no contract assets arising from the Company''s contract with customers.
(c) Disaggregation of revenue
i) For disaggregation of revenue, refer break-up given in note 33 above and note 59 (B).
ii) Refer note 59 (A) (iii) for details regarding customer concentration that represents 10% or more of the Company''s total revenue during the year ended 31st March, 2022 and 31st March, 2021.
(d) Performance obligation
i) For timing of satisfaction of its performance obligations, refer note 2.2(k) of significant accounting policies of the Company.
ii) Unsatisfied (or partially satisfied) performance obligations are due to unexpired contract period in cases of contract where exclusive license is granted to translate, print, publish and sale the translated book in defined territory. The aggregate value of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is '' Nil (Previous year: '' Nil). Aggregate value of transaction with unsatisfied performance obligation was '' Nil (Previous year: '' Nil) which is fully recognised as revenue in the current year upon fulfilment of obligations.
33.5 The Company receives government assistance in the form of MEIS license / duty drawback, which are issued to eligible exporters. Above revenue includes MEIS, DFIA, RODTEP as applicable and duty drawback income of '' 1,160 Lakhs (Previous year: '' 1,280 Lakhs). Out of the revenue recognised, ''734 Lakhs (Previous year: '' 1,019 Lakhs) will be received from government upon receipt of balance amount from customer and fulfilment of other procedural formalities.
41.1 As expense-wise breakup in respect of input credit reversals is not readily available, such reversal are grouped under Sales Tax / GST expenses.
41.2 Other expenses do not include any item of expenditure which is exceeding one percent of the revenue from operations or '' 10 Lakhs, whichever is higher, in addition to the consideration of âmateriality''.
Exceptional items represents:
a) '' 6,813 Lakhs towards profit on sale of property
b) '' 2,233 Lakhs towards provision for impairment of investment in âIndiannica Learning Private Limited'' (Wholly owned subsidiary) driven primarily by the losses incurred during the period, uncertainties and continuous delays in re-opening of schools which has affected the performance of the Company.
(a) Tax matters:
i) For disputed Income tax matters '' 494 Lakhs and (Previous year '' 455 Lakhs) against which amount provided in books is '' 489 Lakhs (Previous year '' 449 Lakhs) and amount paid under protest is '' 418 Lakhs (Previous year '' 412 Lakhs) (Refer below note).
Income tax demands mainly include the appeals filed by the Company before various departmental appellate authorities / High Courts against the disallowances made by income tax authorities of certain deductions / expenses claimed. Pending final decisions, the Company has deposited amounts under protest with Income Tax Authorities.
ii) For disputed sales tax matters '' 2,269 Lakhs (Previous Year '' 2,307 Lakhs) against which amount paid under protest is '' 101 Lakhs (Previous Year: '' 90 Lakhs). (Refer below note)
Sales Tax demands have been mainly raised on account of dispute on rate of certain products, non submission of statutory declarations etc. Pending final decisions, the Company has deposited amounts under protest with Sales Tax Department. Also refer note 41.1.
iii) For disputed GST matters '' 3 Lakhs (Previous Year '' 3 Lakhs) against which amount paid under protest is '' # (Previous year: '' #) (Refer below note)
GST demand have been mainly raised on account of detention of vehicle by an authority. Pending final decisions, the Company has deposited amounts under protest with GST Department. Also refer note 41.1.
Note: Future cash outflows in respect of matters considered disputed are determinable only on receipt of judgments / decisions pending at various forums / authorities. The management does not expect these claims to succeed and accordingly, no provision has been recognized in the financial statements.
(b) Against bond (mainly GST benefit):
Duty free imports for which export obligation is pending as at year end amounting to '' 11 Lakhs (Previous Year '' 9 Lakhs). In the event Company does not meet the respective obligation, GST would have to be paid for which input credit would be available.
44 Capital Commitments and Other Commitments
(a) Estimated amount of contracts remaining to be executed (net of advances) on capital account is '' 296 Lakhs (Previous year: '' 1,018 Lakhs).
(b) Company is committed to fund its wholly owned subsidiaries as and when required.
45 Disclosure under Ind AS H6 âLeases''
The Company has adopted Ind AS 116 âLeases'' effective from 1st April, 2019. Also refer note 2.2(p) for accounting policy on leases.
a) As a Lessee
The Company''s lease assets primarily consist of leases for office premises, warehouses, vehicles and computers. For lease arrangement with lease terms of 12 months or less, the Company has applied the âshort-term lease'' recognition exemptions and for lease with lower underlying value asset, the Company has applied the âlow value asset'' recognition exemption.
For assets given on cancellable lease, it''s depreciation and carrying amount, refer note 6. Also, for rental income earned on those properties, refer note 6.1, which is recognized on a straight line basis over the term of the relevant lease for long term leases.
46 Derivative Financial Instruments
The Company uses derivative financial instruments such as forwards and options, to hedge its risks associated with foreign exchange fluctuation. The counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted price for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the market place.
(e) Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.
If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes.
The amount of gain / (loss) recognised in Statement of Profit and Loss on account of hedge ineffectiveness for cash flow hedges for the year ended 31st March, 2022 is '' Nil (Previous year : '' Nil).
(b) Defined benefit plan and long term employment benefits:
These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary increase risk:
I. Investment / Interest risk: The Company is exposed to Investment / Interest risk if the return on the invested fund falls below the discount rate used to arrive at present value of the benefit. Since the scheme is unfunded in case of compensated absence, the Company is not exposed to Investment / Interest risk.
II. Longevity Risk: The Company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the employee separating from the employer for any reason.
III. Risk of Salary Increase: The Company is exposed to higher liability if the future salaries rise more than assumption of salary escalation.
(i) Defined benefit plan and long term employment benefits: Gratuity (Defined benefit plan):
In respect of Gratuity, the Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, funded defined benefits plan for qualified employees. The scheme provided for lump sum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
56 Disclosure as per Ind AS 10 âEvents after the reporting period''
a) The directors have recommended payment of final dividend for FY 2021-22 of '' 1.50 per equity share (i.e. 75%) in its board of directors meeting held on 18th May, 2022. This proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting.
b) No other significant event has occurred subsequent to year end.
a) During the year the business of the Company was significantly impacted by the continuing delay in re-opening of schools amid Covid-19 restrictions. The management is continuously monitoring the situation and expects an improvement in the business going forward, considering the increase in the pace of vaccination, reduction in the number of cases and opening up of schools. The Company has made assessment of its liquidity position for the current financial year and has considered internal and external information in assessing the recoverability of its assets such as investments, loans, intangible assets, trade receivable, inventories, etc. and other significant management estimates. The Company has used the principles of prudence in applying judgments, estimates and assumptions and based on the current estimates, the Company expects to fully recover the carrying amount of these assets.
The impact assessment of COVID-19 is an ongoing process and may be different from that estimated as at the date of approval of these standalone financial results, given the uncertainties associated with its nature and duration and the Company will continue to monitor all material changes to the entity''s environment.
b) On account of the pandemic and low business activity, the Company and directors / senior management team had mutually agreed that the Company would not pay remuneration aggregating to '' 237 Lakhs to such directors / senior management team members for the month of April & May 2020. Also refer note 58.
I) List of related parties with whom transactions have taken place and their relationships:
(a) Enterprises where control exists:
Navneet Futuretech Limited (formerly known as eSense Learning Limited, refer note 65)
Navneet Learning LLP Indiannica Learning Private Limited Navneet (HK) Limited
Navneet Edutech LLP (from 30.03.2021 to 29.06.2021)
Navneet Tech Ventures Private Limited (w.e.f. 29.06.2021)
Step down subsidiary:
Genext Students Private Limited (w.e.f. 20.07.2021)
(b) Associates:
K12 Techno Services Private Limited
Carveniche Technologies Private Limited (w.e.f. 16.07.2021)
(i) The above figure excludes provision for gratuity and compensated absences which have been actuarially determined on overall basis.
(ii) Financial Guarantee are issued in favour of banks against loans taken by subsidiaries. The amount of guarantee is '' 5,650 Lakhs (Previous Year '' 5,650 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 9).
(iii) Transactions with related parties in the nature of sale of goods, rendering of services, purchase of goods, procurement of services are at arm''s length price. The related party transactions and year end balances do not include expenses paid on behalf of related parties and its recovery.
(iv) Interest ranges from 5% and 6.7% (Previous year: 7%) per annum, has been charged to Navneet Futuretech Limited, Navneet Tech Venture Private Limited and Indiannica Learning Private Limited.
The Company''s operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The Company is organised into business units based on its products and services and has three reportable segments as follows
i) Publication
ii) Stationery
iii) Others comprises of revenue from generation of power by windmill, trading items etc.
The accounting principles and policies used in the preparation of the Standalone Financial Statements, as set out in the note on significant accounting policies, are also consistently applied to record assets, liabilities, revenue and expenditure, in individual segments.
Notes : (i) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the respective segment, however, revenue and expenses which can not be identified or allocated reasonably to a segment being related to the enterprise as a whole have been grouped as unallocable.
(ii) Segment assets and segment liabilities represent assets and liabilities of respective segments , however the assets and liabilities not identifiable or allocable on reasonable basis being related to enterprise as a whole have been grouped as unallocable.
(iii) In publication segment, concentration of revenues from one customer of the Company were 10.95% and Nil of total publication revenue for the year ended 31st March, 2022 and 31st March, 2021 respectively and in stationery segment, concentration of revenues from one customer of the Company were 37.12% and 43.24% of total stationery revenue for the year ended 31st March, 2022 and 31st March, 2021 respectively.
(iv) Sales between operating segments are carried out at arm''s length basis and are eliminated at Company level consolidation.
(v) Impairment of investment is accounted for âNavneet Futuretech Limited'' of '' NIL (Previous year: '' 153 Lakhs) and for âIndainnica Learning Private Limited'' of ''2,233 Lakhs (Previous year: '' 237 Lakhs). Also refer note 9.3.
60 Fair value of financial assets and liabilities
The management assessed that the fair values of financial asset and financial liabilities approximate their carrying amounts.
The following methods and assumptions were used to estimate the fair values:
(a) Fair values of cash and cash equivalents, trade receivables, interest accrued on deposits with bank, bank deposits, trade payables and other financial liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.
(b) The management has considered fair value of security deposits, loan from bank, loan from related party, equal to their carrying value as fair values based on the current market interest rates and other risk factors approximate to carrying value.
(i) For Details of income and gains related to financial instruments (Refer Note 34).
(ii) Investments in subsidiaries are valued at cost less impairment loss (if any) in accordance with Ind AS 27 âSeparate Financial Statements'', consequently the same is not disclosed in above table.
Financial /Bank guarantee:
(i) Financial Guarantees are issued in favour of banks against loans taken by subsidiaries. The amount of guarantee is '' 5,650 Lakhs (Previous Year '' 5,650 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 9.2 and 28).
(ii) Bank Guarantee is given to electricity department (DNH Power Distribution Corporation Limited and Uttar Gujarat Vij Company Limited) for electricity deposit of '' 80 Lakhs(Previous Year '' 130 Lakhs).
The Company is exposed to market risk, credit risk and liquidity risk. The management reviews and agrees policies for managing each of these risks which are summarized below:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk primarily include trade receivables, trade payables and cash and cash equivalents.
The sensitivity analysis in the following sections relate to the position for the periods presented. The sensitivity analysis has been prepared on the basis that the amount of net debt and the proportion of financial instruments in foreign currencies are all constant. The analysis exclude the impact of movements in market variables on the carrying values of gratuity obligation and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks based on the financial assets and financial liabilities held at the periods presented.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to trade payables and trade receivables.
The following table analyses the foreign currency risk from monetary assets and liabilities as at balance sheet date:
Note: - For the purpose of foreign currency sensitivity, trade receivable to the extent unhedged are considered Price risk
The Company is not exposed to any significant price risk.
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other financial assets.
Trade receivables
Customer credit risk is managed based on the Company''s established policy, procedures and control relating to customer credit risk management. The Company evaluates the concentration of risk with respect to trade receivables as low. Out of total trade receivables balance as at 31st March, 2022, '' 1,805 Lakhs (Previous year: '' 792 Lakhs) is due from a single US based customer being the Company''s largest customer. There are no other customers who represent more than 10% of the balance of trade receivables. Outstanding customer receivables are regularly monitored by the management.
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix and past historical experience. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information.
An impairment analysis is performed at each reporting date on an individual basis for major customers.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum level of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis.
The Company is not exposed to significant liquidity risk based on past performance and current expectations. The Company believes that the cash and cash equivalents, cash generated from operations and available undrawn credit facilities, will satisfy its working capital needs, capital expenditure, investment requirements, commitments and other liquidity requirements associated with its existing operations, through at least the next twelve months.
Note: Investments in subsidiaries are valued at cost less impairment loss (if any) in accordance with Ind AS 27 âSeparate Financial Statements'', consequently the same is not disclosed in maturity profile tabulated above.
63.2 Aggregate outflow on account of direct taxes paid is '' 4,576 Lakhs (Previous year '' 2,777 Lakhs).
63.3 Net cash inflow from operating activity netted off with expenditure on Corporate Social Responsibility (CSR) expenditure of '' 457 Lakhs (Previous year '' 549 Lakhs) (Refer note 53).
64 Details of the sources of estimation uncertainty in related to significant accounting estimates and judgements:
i) Impairment of investment in subsidiaries
Refer note 2.3 (b) of significant accounting policies and note 9.3 for significant accounting estimates and judgements used in performing impairment test on investment value of subsidiaries.
ii) Provision for employee benefits
Refer note 2.3 (e) of significant accounting policies and note 52(b)(i) for significant accounting estimates and judgements used and it''s financial impact of sensitivity of such assumptions.
65 Subsequent to the year ended 31st March, 2022, one of the subsidiary eSense Learning Private Limited has changed its name from eSense Learning Private Limited to âeSense Learning Limited'' with effect from 27th April, 2022. Further, eSense Learning Limited has changed its name from eSense Learning Limited to âNavneet Futuretech Limited'' with effect from 17th May, 2022.
As on 31st March, 2022 the Company has not been declared wilful defaulter by any bank/financial institution or other lender.
68 Details of Crypto currency or Virtual currency
The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence no disclosure is required.
69 Registration of charges or satisfaction with Registrar of Companies (ROC)
The Company does not have any charges or satisfaction yet to be registered with the registrar of companies(ROC) beyond the statutory period as at 31st March, 2022.
70 Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
No proceedings have been initiated or are pending against the Company as on 31st March, 2022 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.
72 Relationship with struck off companies
The Company does not have any transaction with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 and hence no disclosure is required.
73 Compliance with approved Scheme(s) of Arrangements
The Company has not entered into any scheme of arrangements in terms of sections 230 to 237 of the Companies Act, 2013.
(ii) Debt service coverage ratio has improved as compared to previous year due to increase in profit and decrease in interest.
(iii) Due to buy-back of equity shares and increase in profit after tax, return on equity has improved as compared to previous year.
(iv) Inventory turnover ratio has improved as compared to previous year due to increase in sales.
(v) Increase in sales has resulted into improved trade receivables turnover ratio as compared to previous year.
(vi) Due to increase in net profit, net profit ratio has improved as compared to previous year.
(vii) Return on capital employed has improved as compared to previous year due to increase in earning before interest and tax.
(viii) Income generated from treasury investment has reduced leading to adverse return on investment.
75 Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss
(other than already disclosed above) are either Nil or Not Applicable.
76 Previous Year Figures have been regrouped/rearranged wherever necessary.
Mar 31, 2018
1. Company overview, nature of entityâs operations and its principal activities
Navneet Education Limited (âthe Companyâ) is a public limited company incorporated and domiciled in India and has its registered office at Navneet Bhavan, Near Shardasharam Society, Bhavani Shankar Road, Dadar, Mumbai - 400028, Maharashtra, India. The company is listed on Bombay Stock Exchange and also National Stock Exchange.
The Company is a leading manufacturer of Maharashtra and Gujarat State Board Publication books and also Stationery Products. The Publishing segment consists of supplementary books such as workbooks, guides, and question banks which are based on the latest prescribed syllabus by state education boards under the brand name of âVikasâ and âGalaâ. The Stationery Business consists of Paper-based and non-paper based stationery under the brand names âNavneetâ and âYouvaâ.
The financial statements of the Company for the year ended March 31, 2018 were approved and adopted by the board of directors of the Company in their meeting dated May 10, 2018.
2. Significant Accounting Policies and Key Accounting Estimates and Judgments
2.1 Basis of preparation
a) Statement of Compliance
The financial statements (on standalone basis) of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of Companies Act, 2013 (âthe Actâ) read with the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Rules, 2016 and also the subsequent amendments which were notified during the year and applicable to the period. The Company has consistently applied the accounting policies used in the preparation of its financial statements.
b) Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (âthe functional currencyâ). The financial statements are prepared in INR which is the functional and presentation currency. All amounts are rounded to the nearest lakhs.
c) Basis of measurement
The financial statements have been prepared under historical cost convention on accrual basis except for the following:
i) Certain financial assets and financial liabilities measured at fair value (refer accounting policy regarding financial instruments - Note no. 3.10)
ii) Defined benefit plans measured at fair value
2.2 Use of significant accounting estimates, judgments and assumptions
The preparation of the financial statements requires management to make estimates, judgments and assumptions that affect the reported balances of assets and liabilities, disclosure of contingent liabilities as on the date of financial statements and reported amounts of income and expenses during the period. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
a) Estimated useful lives and scrap value (Property, plant & equipment, Investment properties and Intangible assets)
The Company has estimated the useful life, residual value and method of depreciation / amortisation of property, plant & equipment, investment properties and intangible assets based on its internal technical assessment. Property, plant & equipment, investment properties and intangible assets represent a significant proportion of the asset base of the Company. Further the Company has estimated that scrap value of property, plant & equipment would be able to cover the decommissioning costs of property, plant & equipment.
Therefore, the estimates and assumptions made to determine useful life, residual value, method of depreciation / amortisation and decommissioning costs are critical to the Companyâs financial position and performance.
b) Impairment of financial assets (including trade receivable)
Allowance for doubtful receivables represent the estimate of losses that could arise due to inability of the customer to make payments when due. These estimates are based on the customer ageing, customer category, specific credit circumstances and the historical experience of the Company as forward looking estimates at the end of each reporting period.
c) Estimation of defined benefit obligations
The liabilities of the Company arising from employee benefit obligations and the related current service cost, are determined on an actuarial basis using various assumptions as disclosed in notes forming integral part of consolidated financial statements.
d) Estimation of provisions and contingencies
Provisions are liabilities of uncertain amount or timing recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable. Contingent liabilities are possible obligations that may arise from past event whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events which are not fully within the control of the Company. The Company exercises judgment and estimates in recognizing the provisions and assessing the exposure to contingent liabilities relating to pending litigations. Judgment is necessary in assessing the likelihood of the success of the pending claim and to quantify the possible range of financial settlement. Due to this inherent uncertainty in the evaluation process, actual losses may be different from originally estimated provision.
2.3 New standard issued but not effective and hence not adopted
The following standards issued / modified by MCA become effective w.e.f. 1st April 2018.
* Does not include consequential modification to other existing Ind AS due to issue of new Ind AS.
The Company is assessing the detailed potential impact of above amendments on the financial statements. Management presently is of the view that it would not have a material impact on the financial statements.
3.1 Land includes a leasehold land whose gross block and accumulated depreciation as at year end is Rs.84 Lakh (Previous year Rs.84 Lakh).
3.2 Land also includes a leasehold land whose gross block of Rs.2 Lakh (Previous year: Rs.2 Lakh) and accumulated depreciation of Rs. Nil (Previous year: Rs. Nil) being the value of 1,250 shares (Previous year : 1,250 shares) of Rs.100 each in Gala Co-operative Industrial Estate Limited.
Also, refer note 38 (a) for disclosure related to lease of investment properties.
4.1 Building with a carrying amount of Rs.1,334 Lakh (Previous year: Rs.1,403 Lakh) is subject to first charge to secure bank loan (refer note 22.1).
4.2 As at year-end the fair values of investment properties are Rs.9,867 Lakh (Previous Year : Rs.10,035 Lakh). These valuations are based on fair valuation rate given in ready reckoner for stamp duty calculation of Building and for rest it is the Book Value.
5.1 Terms/Rights Attached to Equity Shares
The company has only one class of equity shares having a par face value of Rs.2/- per share. Each holder of equity shares is entitled to one vote per share and all rank pari passu. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amount. The distribution will be in proportion to the equity shares held by the shareholders.
61 All short term rupee loans are secured against hypothecation & first charge over stock of raw materials, work-in-progress, finished goods, stores & spares not relating to plant and machinery & book debts and also mortgage & first charge over office premises 1A, 1B, 2A & 2B at Benefice Business House located at Lower Parel, Mumbai.
6.2 Secured working capital loan includes interest accrued but not due Rs.4 Lakh (Previous year: Rs.2 Lakh). Interest rate for this loan is 8.15%. Subsequent to year end, working capital loan along-with interest repaid on 7th April, 2018.
6.3 Interest rate for unsecured rupee loan is 8.30%. Subsequent to year end, this loan repaid on 6th April, 2018.
7.1 Details of the dues to Micro, Small and Medium Enterprises (MSME), as defined in the Micro, Small and Medium Enterprises Development Act, 2006, as on 31st March, 2018 based on available information with the Company which are as under:
8.1 Provision for Sales Returns:
The above amount is net of provision made for expected sales return amounting to Rs.909 Lakh (Previous year Rs.267 Lakh) in accordance with Ind AS 18. Also refer Note 43 (a) and Note 26.
9. Contingent liabilities:
(a) Tax matters:
i) For disputed Income-tax matters Rs.42 Lakh (Previous Year Rs. Nil). (Refer below note)
ii) For disputed Sales tax-matters Rs.4,708 Lakh (Previous Year Rs.4,271 Lakh) against which amount paid Rs.282 Lakh (Previous year Rs.254 Lakh). (Refer below note)
Note: Future cash outflows in respect of matters considered disputed are determinable only on receipt of judgments / decisions pending at various forums / authorities. The management does not expect these claims to succeed and accordingly, no provision has been recognised in the financial statements.
(b) Against bond:
i) Duty liability amounting to Rs. Nil (Rs.363 Lakh) for the purchase of excisable inputs without payment of duty under the bonds executed if the export obligation is not fulfilled.
ii) Duty-free imports for which export obligation is pending as at year-end amounting to Rs.141 Lakh (Previous Year Rs.22 Lakh).
(c) Bank guarantee:
i) In respect of Bank Guarantee given for tender and electricity of Rs.63 Lakh (Previous Year Rs.100 Lakh).
ii) Financial Guarantee is issued in favour of banks against loans taken by subsidiaries. The amount of guarantee is Rs.4,650 Lakh (Previous Year Rs.3,650 Lakh). The Guarantee given is covered under section 186(4) of the Companies Act, 2013 and is for commercial purpose only. Accounting entry for fair value of financial guarantee as per Ind AS has been passed in the books of account, according to which liability recognised is Rs.142 Lakh (Previous Year Rs.80 Lakh) (Refer note 24).
10. Capital Commitments and Other Commitments
An estimated amount of contracts remaining to be executed on capital account is Rs.803 Lakh (Previous year: Rs. Nil). The Company does not have any other commitments.
11. Operating Leases
(a) As lessor
The existing cancellable operating lease agreements permit the lessee to cancel the arrangement before the expiry of the normal tenure of the lease. Hence no disclosures are required to be made.
(b) As lessee
The Company has taken various commercial premises under cancellable operating leases. These are normally renewable on expiry. The Company has not taken any commercial premises under non-cancellable operating leases.
12. Derivative Financial Instruments
(a) The assets and liabilities position of various outstanding derivative financial instruments is given below:
Note: The Company has exchange rate movement risk for above mentioned foreign currency contracts.
(b) Outstanding position and fair value of various foreign exchange derivative financial instruments:
(c) Details of amount held in hedging reserve and the period over which these are going to be released
(d) Amount of loss recognised in hedging reserve and recycled:
i) During the financial year 2017-18:
ii) During the financial year 2016-17:
(e) The amount of gain / (loss) recognised in Statement of Profit and Loss on account of hedge ineffectiveness for cash flow hedges for the year ended 31st March 2018 is Rs. Nil (Previous year : Rs. Nil).
13. Disclosure pursuant to Indian Accounting Standard 19 âEmployee benefitsâ:
(a) The Company has recognised the following amounts towards defined contribution plans as an expense and included in the Statement of Profit and Loss.
(b) Defined benefit plan and long-term employment benefits: Gratuity (Defined benefit plan):
In respect of Gratuity, the Company makes an annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, funded defined benefits plan for qualified employees. The scheme provided for lump-sum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The Company has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method. The following table sets out for the status of gratuity plan:
(c) Defined benefit plan and long-term employment benefits: Leave encashment (unfunded)
In respect of leave encashment benefit, accrual is made on the basis of a year-end actuarial valuation in pursuance of the Companyâs leave rules.
The Company has provided for leave benefits based on the actuarial valuation done as per Project Unit Credit Method. The following table sets out for the status of leave encashment plan:
14. As per Section 135 of the Companies Act 2013, a Corporate Social Responsibility (CSR) Committee has been formed by the Company. The areas for CSR activities are reducing inequalities faced by socially and economically backward groups, Promoting Education & Preventive Health care which are as per eligible activities specified in Schedule VII of the Companies Act, 2013.
(a) Gross amount required to be spent by the Company during the current year is Rs.418 Lakh (Previous year: Rs.359 Lakh).
(b) Details of amount spent during the year are as under:
15. Figures of Rs.50,000 or less have been denoted by #
16. Income tax
A. Income tax expense in the statement of profit and loss consists of:
B. The reconciliation between the provision of income tax of the Company and amounts computed by applying the Indian statutory income tax rate to profit before taxes is as follows
17. The Board of directors has recommended final dividend of INR 1.50 per share on face value of INR 2/- each for the Financial year 2017-18 on board meeting held on May 10, 2018, subject to approval of shareholders in ensuing Annual General Meeting.
18. Fair value of the financial assets and liabilities
The management assessed that the fair values of financial asset and financial liabilities approximate their carrying amounts.
The following methods and assumptions were used to estimate the fair values:
(a) Fair values of cash and cash equivalents, trade receivables, interest accrued on deposits with the bank, bank deposits, trade payables and other financial liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.
(b) The management has considered fair value of security deposits,loan from bank, loan from related party, equal to their carrying value as fair values based on the current market interest rates and other risk factors approximate to carrying value.
Fair value hierarchy
The following table presents the financial assets and financial liabilities by level with the fair value measurement hierarchy :
* There has been no transfer between level 1 and level 2 during the year ended 31st March, 2018 and 31st March, 2017. Level is NA, since valued at amortised cost.
19. Financial Risk Management
The Company is exposed to market risk, credit risk and liquidity risk. The management reviews and agrees policies for managing each of these risks which are summarized below:
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risks. Financial instruments affected by market risk primarily include trade receivables, trade payables, cash and cash equivalents.
The sensitivity analysis in the following sections relates to the position for the periods presented. The sensitivity analysis has been prepared on the basis that the amount of net debt and the proportion of financial instruments in foreign currencies are all constant. The analysis excludes the impact of movements in market variables on the carrying values of gratuity obligation and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks based on the financial assets and financial liabilities held at the periods presented.
Interest rate risk
The following tables demonstrate the sensitivity to a reasonably possible change in interest rate, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to trade payables, trade receivables.
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
Price risk
The Company is not exposed to any significant price risk.
Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other financial assets.
Trade receivables
Customer credit risk is managed based on the Companyâs established policy, procedures and control relating to customer credit risk management. The Company evaluates the concentration of risk with respect to trade receivables as low. Out of total trade receivables balance as at 31st March, 2018 Rs.2,703 Lakh (Previous year: Rs.702 Lakh) is due from a single US-based customer being the Companyâs largest customer for which the Company has discounted bills with no recourse terms. There are no other customers who represent more than 10% of the balance of trade receivables. Outstanding customer receivables are regularly monitored by the management.
An impairment analysis is performed at each reporting date on an individual basis for major customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.
Deposits with banks and other financial assets
Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Companyâs policy.
Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Companyâs objective is to, at all times maintain an optimum level of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system.
The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payments.
20. Capital management
For the purpose of the Companyâs capital management, capital includes issued equity capital, and all other equity reserves attributable to the equity shareholders. The primary objective of the Companyâs capital management is to maximise the shareholder value.
The Company manages its capital structure and makes suitable adjustments in light of changes in economic conditions.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, Loan obligation, trade and other payables and less cash and cash equivalents.
21. âRevenue from operations for the periods up to 30th June, 2017 includes excise duty, which is discontinued effective 01st July, 2017 upon implementation of Goods and Service Tax (GST) in India. GST is not included in revenue from operations w.e.f. 01st July, 2017. In view of the aforesaid restructuring of indirect taxes, revenue from operations for the year ended 31st March, 2018 are not comparable with previous periods.
For the purpose of comparability, revenue from operations including excise duty and excluding excise duty are given below:
22. SEGMENT REPORTING
The Companyâs operations relate to publication of knowledge-based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. Accordingly âPublicationâ and â Stationery â comprise of the primary segments.
Secondary segmental reporting is performed on the basis of the geographical location of customers.
The accounting principles and policies used in the preparation of the Financial Statements, as set out in the note on significant accounting policies, are also consistently applied to record revenue and expenditure, in individual segments.
Notes :
1. Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the respective segment, however, revenue and expenses which can not be identified or allocated reasonably to a segment being related to the enterprise as a whole have been grouped as unallocable.
2. Segment assets and segment liabilities represent assets and liabilities of respective segments , however, the assets and liabilities not identifiable or allocable on reasonable basis being related to the enterprise as a whole have been grouped as unallocable.
3. The businesses which have been grouped under âOthersâ segment comprises of revenue from the generation of power by windmill, Pre School, trading items etc.
4. In publication segment, concentration of revenues from one customers of the Company were 15.32% and 15.38% of total revenue for the year ended 31st March, 2018 and 31st March, 2017 respectively and in stationery segment, concentration of revenues from one customers of the Company were 28.78% and 31.62% of total revenue for the year ended 31st March, 2018 and 31st March, 2017 respectively .
23. Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Applicable.
24. Previous Year Figures have been regrouped/rearranged wherever necessary.
Mar 31, 2017
1.Terms/Rights Attached to Equity Shares
The Company has only one class of equity shares having a par face value of RS. 2/- per share. Each holder of equity shares is entitled to one vote per share and all rank pari passu.
2. Terms/Rights Attached to Preference Shares which were redeemed as at 1st Aprilâ2015:
3. Redemption - To be redeemed at par at the end of 18 months from the date of allotment.
4. Coupon Rate - 6% per annum non cumulative.
5. Call Option - The Company has an option to redeem the Preference Shares at any time after the end of 1 year from the date of allotment. If the Company exercises its call option, it will pay the amount of the face value of the Preference Shares along with dividend declared, if any, up to the date on which it exercise the call option. In case the Company exercises the call option, its liability to the Preference Shareholders shall stand extinguished from the date of dispatch of the cheques / pay order for the redemption amount, along with dividend, if any.
6. Each holder of 6% RNCPS is entitled to one vote per RNCPS only on resolution placed before the Company which directly affect the rights attached to RNCPS.
7. In the event of winding up of the Company, before redemption of RNCPS, the holders of RNCPS will have priority over equity shareholders in the payment of dividend and repayment of capital.
8. Commitments and contingencies:
9. Commitments
Estimated amount of contracts remaining to be executed on capital account is NIL.
10. Contingencies
11. For disputed Income-tax matters RS. NIL (Previous Year RS. 7 Lakh).
12. For disputed Sales tax matters RS. 4271 Lakh (Previous Year RS. 3841 Lakh) against which amount paid RS. 254 Lakh (Previous year RS. 169 Lakh).
13. Against Bond
Duty liability amounting to RS. 363 Lakh (RS. 294 Lakh) for the purchase of excisable inputs without payment of duty under the bonds executed if the export obligation is not fulfilled.
Duty free imports for which export obligation is pending as at year end amounting to RS. 22 Lakh (Previous Year RS. NIL)
15. In respect of Bank Guarantee given for tender, Excise, Electricity of RS. 100 Lakh (Previous Year RS. 39 Lakh).
16. Financial Guarantee are issued in favour of banks against loans taken by subsidiaries. The amount of guarantee is L 3650 Lakh (Previous Year RS. 1000 Lakh). The Guarantee given is covered under section 186(4) of the Companies Act, 2013 , and is for commercial purpose only.
17. Lease disclosure:
18. As a Lessor in an Operating Lease:
The existing operating lease agreements permit the lessee to cancel the arrangement before expiry of the normal tenure of the lease. As such, no disclosures are required to be made.
19. As a Lessee in an Operating Lease:
Cancelable Operating Leases
The Company has taken various commercial premises under cancelable operating leases. These are normally renewable on expiry.
Non-Cancelable Operating Leases
The Company has not taken any commercial premises under non-cancelable operating leases.
19. Financial & Derivative instruments
The Company has sold USD 35.68 Mn- equivalent RS. 24401 Lakh (Previous Year USD 32.36 Mn- equivalent RS. 22034 Lakh to cover export receivables.)
20. Defined benefit plan and long term employment benefits: Gratuity (Defined benefit plan):
In respect of Gratuity, the Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, funded defined benefits plan for qualified employees. The scheme provided for lump sum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
21. Defined benefit plan and long term employment benefits: Leave encashment
In respect of leave encashment benefit, accrual is made on the basis of a year-end actuarial valuation in pursuance of the Company''s leave rules.
22. OPERATING SEGMENT REPORTING
The Company''s operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. Accordingly âPublicationâ and â Stationery â comprise of the primary segments.
Secondary segmental reporting is performed on the basis of the geographical location of customers.
The accounting principles and policies used in the preparation of the Financial Statements, as set out in the note on significant accounting policies, are also consistently applied to record revenue and expenditure, in individual segments.
23. The Company has recommended dividend for equity shareholder of RS. 2.50 per share in board meeting held on 26th May, 2017
24. Financial Risk Management
Navneet Education Limited (NEL) continues to deploy a well articulated risk management framework. This is based upon a three-tiered approach encompass sing (i) enterprise risks, (ii) process risks, and (iii) compliance risks.
25. Enterprise risk : The company continue to evaluate the risk and also ensures that the mitigation processes are in place./^
26. Process risk management involves assurances by the Company''s internal audit department regarding the effectiveness of business and financial controls and processes in all key activities across the various businesses.
27. Compliance risk management comprises a detailed mechanism of assurances with respect to adherence of all laws and regulations, with a comprehensive reporting process that cascades upwards from the accountable business line executives to NELs Audit Committee and then on to the Board of Directors.
The outcomes of business review meetings conducted by management and internal audit regarding processes and their compliance, as well as observations of the Audit Committee and the Board of Directors are continuously incorporated to capture new risks and update the existing ones. All three dimensions of NELâs Risk Management framework are reviewed annually for their relevance and modifications, as required. The businesses and internal audit make regular presentations to the Audit Committee for detailed review. The risk management process, including its tracking and adherence, is substantially e-enabled for greater consistency and better reporting capabilities.
28. Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Applicable.
29. Previous Year Figures have been regrouped/rearranged wherever necessary.
Mar 31, 2016
1. (a) Terms / Rights Attached to Equity Shares
The company has only one class of equity shares having a par value of
Rs. 2 per share. Each holder of equity shares is entitled to one vote
per share and all rank pari passu.
(b) Terms / Rights Attached to Preference Shares
(i) Redemption - To be redeemed at par at the end of 18 months from the
date of allotment.
(ii) Coupon Rate - 6% per annum non cumulative.
(iii) Call Option - The Company has an option to redeem the Preference
Shares at any time after the end of 1 year from the date of allotment.
If the Company exercises its call option, it will pay the amount of the
face value of the Preference Shares along with dividend declared, if
any, up to the date on which it exercise the call option. In case the
Company exercises the call option, its liability to the Preference
Shareholders shall stand extinguished from the date of dispatch of the
cheques / pay order for the redemption amount, along with dividend, if
any.
(iv) Each holder of 6% RNCPS is entitled to one vote per RNCPS only on
resolution placed before the Company which directly affect the rights
attached to RNCPS.
(v) I n the event of winding up of the company, before redemption of
RNCPS, the holders of RNCPS will have priority over equity shareholders
in the payment of dividend and repayment of capital.
2. Aggregate number and class of shares alloted as fully paid up
pursuant to contract (S) without payment being received in Cash.
96,500,484 equity shares of Rs. 2 each were issued in February, 2013 to
the erstwhile shareholders of Lakheni Publication Pvt. Ltd. pursuant to
the scheme of amalgamation without payment being received in cash.
3. Contingent Liabilities
(a) For disputed Income-tax matters Rs. 7 Lac (Previous Year Rs. NIL)
(b) For disputed Sales tax matters Rs. 3841 Lac (Previous Year Rs. 2954
Lac) against which amount paid Rs. 169 Lac (Previous year Rs. 84 Lac)
(c) Against Bond
Duty liability amounting to Rs. 294 Lac (Rs. 326 Lac) for the purchase
of excisable inputs without payment of duty under the bonds executed if
the export obligation is not fulfilled.
(d) In respect of Bank Guarantee given for tender of Rs. 39 Lac
(Previous Year Rs. 50 Lac).
(e) In respect of Bank Guarantee given for subsidiary Company of Rs.
1000 Lac (Previous Year Rs. 1000 Lac)
4. Foreign currency translation of Rs. 508 Lac (Previous Year debited
Rs. 316 Lac) arising on account of the exchange difference is credited
to the Statement of Profit & Loss.
5. Lease Transactions : Accounting Standard 19 As a Lessor in an
Operating Lease
The existing operating lease agreements permit the lessee to cancel the
arrangement before expiry of the normal tenure of the lease. As such,
no disclosures are required to be made.
As a Lessee in an Operating Lease
(i) Cancellable Operating Leases
The Company has taken various commercial premises under cancelable
operating leases. These are normally renewable on expiry.
(ii) Non-Cancellable Operating Leases
The Company has not taken any commercial premises under non -
cancelable operating leases.
6. SEGMENT REPORTING
As per Accounting Standard (AS) 17 on "Segment Reporting", segment
information has been provided under the Notes of Consolidated Financial
Statements.
7. As per Section 135 of the Companies Act 2013, a Corporate Social
Responsibility (CSR) Committee has been formed by the company.
The areas for CSR activities are Reducing inequalities faced by
socially and economically backward groups, Promoting Education &
Preventive Health care. The funds were primarily allocated to a corpus
and utilized on the activities which are specified in Schedule VII of
the Companies Act, 2013.
8. Details of Loan given, Investments made and Guarantee given
covered under section 186(4) of the Companies Act, 2013 - Loans given
and investments made are shown in their respective heads.
Guarantee is given by the Company in respect of loan taken by its
subsidiary eSense Learning Pvt. Ltd. for Rs. 1000 Lac (Previous Year
Rs. 1000 Lac) as at 31st March, 2016.
9. Figures of Rs. 50,000 or less have been denoted by #
10. Previous Year Figures have been regrouped / rearranged wherever
necessary.
Mar 31, 2015
1. Contingent Liabilities
(a) For disputed Income-tax matters Rs. NIL (Previous Year Rs.33 Lac)
(b) For disputed Sales tax matters Rs. 2954 Lac (Previous Year Rs.NIL)
against which amount paid Rs.84 Lac
(c) Against Bond
Duty liability amounting to Rs. 326 Lac (Rs. 251 Lac) for the purchase
of excisable inputs without payment of duty under the bonds executed if
the export obligation is not fulfilled.
(d) In respect of Bank Guarantee given for tender of Rs. 50 Lac
(Previous Year Rs. 50 Lac).
(e) In respect of Bank Guarantee given for subsidiary Company of Rs.
1000 Lac (Previous Year Rs. 1000 Lac)
2. Financial & Derivative instruments
(a) The Company has sold USD 29.54 Mn - equivalent Rs.18635 Lac
(Previous Year USD 25.26 Mn- equivalent Rs. 15430 Lac) to cover export
receivables, purchased USD NIL equivalent Rs. NIL (Previous Year USD 14
Mn equivalent Rs. 8653 Lac ) to cover loan repayment and purchased USD
NIL equivalent Rs. NIL (Previous Year USD 1 Mn equivalent Rs. 319 Lac )
to cover Import Payment.
The company has entered into USD-JPY derivative option contracts
hedging its exposure on ECB availed in JPY for wind power generation
project. Option contracts worth of JPY NIL (Previous Year JPY 36 Mn)
as on balance sheet date.
3. Foreign currency translation of Rs. 316 Lac (Previous Year debited
Rs. 264 Lac) arising on account of the exchange difference is debited
to the Statement of Profit & Loss.
4. Related party transactions
(I) List of related parties where control exists and related parties
with whom transactions have taken place and relationships : (a) Party
where control exists :
Grafalco Ediciones S.L.
Subsidiary Company 0% (P.Y. 95.58%) of whose equity share capital is
held by the Company as at 31st March, 2015 eSense Learning Private Ltd.
Subsidiary Company 100% (P.Y. 99.81%) of whose equity share capital is
held by the Company as at 31st March, 2015
Navneet Learning LLP
Subsidiary 95% (P.Y. 95%) of share of profit of the Company as at 31st
March, 2015
5. Lease Transactions : Accounting Standard 19 As a Lessor in an
Operating Lease
The existing operating lease agreements permit the lessee to cancel the
arrangement before expiry of the normal tenure of the lease. As such,
no disclosures are required to be made.
As a Lessee in an Operating Lease
(i) Cancellable Operating Leases
The Company has taken various commercial premises under cancellable
operating leases. These are normally renewable on expiry.
(ii) Non-Cancellable Operating Leases
The Company has not taken any commercial premise under non-cancellable
operating leases.
General description
1. Gratuity (defined benefit plan)
The Company makes annual contribution to the employee group gratuity
scheme of the Life Insurance Corporation of India, funded defined
benefits plan for qualified employees. The scheme provided for
lumpsum payments to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to
15 days salary for each completed year of service or part thereof in
excess of six months. Vesting occurs upon completion of five years of
service.
2. Accrual for leave encashment benefit is made on the basis of a
year-end actuarial valuation in pursuance of the Company''s leave rules.
The following table sets out for the status of gratuity / leave
encashment plan
6. SEGMENT REPORTING
As per Accounting Standard (AS) 17 on "Segment Reporting", segment
information has been provided under the Notes of Consolidated Financial
Statements.
7. As per Section 135 of the Companies Act 2013, a Corporate Social
Responsibility (CSR) Committee has been formed by the company.
The areas for CSR activities are Reducing inequalities faced by
socially and economically backward groups, Promoting Education &
Preventive Health care. The funds were primarily allocated to a corpus
and utilized on the activities which are specified in Schedule VII of
the Companies Act, 2013.
8. Details of Loan given, Investments made and Guarantee given covered
under section 186(4) of the Companies Act, 2013 - Loans given and
investments made are shown in their respective heads.
Guarantee is given by the Company in respect of loan taken by its
subsidiary eSense Learning Pvt. Ltd. for Rs.1000 Lac (Previous Year
Rs.1000 Lac) as at 31st March, 2015.
9. Figures of Rs. 50,000 or less have been denoted by #
10. Previous Year Figures have been regrouped / rearranged wherever
necessary.
Mar 31, 2014
SHARE CAPITAL
(a) Terms/Rights Attached to Equity Shares
The company has only one class of equity shares having a par value of
Rs. 2 per share. Each holder of equity shares is entitled to one vote
per share and all rank pari passu.
(b) Terms / Rights Attached to Preference Shares
(i) Redemption - To be redeemed at par at the end of 18 months from the
date of allotment.
(ii) Coupon Rate - 6% per annum non cumulative.
(iii) Call Option - The Company has an option to redeem the Preference
Shares at any time after the end of 1 year from the date of allotment.
If the Company exercises its call option, it will pay the amount of the
face value of the Preference Shares along with dividend declared, if
any, up to the date on which it exercise the call option. In case the
Company exercises the call option, its liability to the Preference
Shareholders shall stand extinguished from the date of dispatch of the
cheques / pay order for the redemption amount, along with dividend, if
any.
(iv) Each holder of 6% RNCPS is entitled to one vote per RNCPS only on
resolution placed before the Company which directly affect the rights
attached to RNCPS.
(v) In the event of winding up of the company, before redemption of
RNCPS, the holders of RNCPS will have priority over equity shareholders
in the payment of dividend and repayment of capital.
1.1 Aggregate number of bonus shares issued during the period of five
years immediately preceding the reporting date
14,29,29,000 (14,29,29,000) Equity shares allotted as fully paid bonus
shares in the last 5 years by capitalisation of Share Premium & General
Reserve
1.2 Aggregate number and class of shares alloted as fully paid up
pursuant to contract (S) without payment being received in Cash.
9,65,00,484 (9,65,00,484) Equity Share and 3,40,500 (3,40,500)
Preference Shares were alloted in last 5 years pursuant to the scheme
of Amalgamation without payment being received in Cash.
2. LONG TERM BORROWINGS
Nature of Security and Terms of Repayments for Secured Borrowings:
Nature of Security Terms of Repayments
Long term foreign currency loan Foreign Currency Loans from Bank
are exclusively secured by carries interest @ Libor 0.5%. The
Hypothecation of windmills. loan is repayable in 12 half yearly
installments of 41980057 JPY starting
from 17th Jan, 2009
The instalments due within 12
months from the date of Balance
Sheet have been grouped under
Other Current Liabilities
(Note No. 8)
Contingent Liabilities
(a) For disputed Income-tax matters Rs. 33 Lac (Previous Year Rs. 410
Lac). However the Company has already made payments against such
disputed liabilities.
(b) Against Bond
Duty liability amounting to Rs. 251 Lac (Previous Year Rs. 115 Lac) for
the purchase of excisable inputs without payment of duty under the
bonds executed if the export obligation is not fulfilled.
(c) In respect of Bank Guarantee given for tender of Rs. 50 Lac
(Previous Year Rs. 50 Lac).
(d) In respect of Bank Guarantee given for subsidiary company of Rs. 10
Cr. (Previous Year Rs. Nil).
Lease Transactions : Accounting Standard 19
As a Lessor in an Operating Lease
The existing operating lease agreements permit the lessee to cancel the
arrangement before expiry of the normal tenure of the lease. As such,
no disclosures are required to be made.
As a Lessee in an Operating Lease
(i) Cancellable Operating Leases
The Company has taken various commercial premises under cancellable
operating leases. These are normally renewable on expiry.
(ii) Non-Cancellable Operating Leases
The Company has taken various commercial premises under non -
cancellable operating leases, the future lease payments in respect of
which are:
Disclosure pursuant to Accounting Standard - 15 (Revised) ''Employee
benefits'' -
(a) The actuarial valuations of the various employee benefits were
carried out by using the Projected Unit Credit Method.
(b) The Company has recognised the following amounts towards defined
contribution plans as an expense and included in the Statement of
Profit and Loss.
General description
1. Gratuity (Defined benefit plan)
The Company makes annual contribution to the employee group gratuity
scheme of the Life Insurance Corporation of India, funded defined
benefits plan for qualified employees. The scheme provided for lumpsum
payments to vested employees at retirement, death while in employment
or on termination of employment of an amount equivalent to 15 days
salary for each completed year of service or part thereof in excess of
six months. Vesting occurs upon completion of five years of service.
2. Accrual for leave encashment benefit is made on the basis of a
year-end actuarial valuation in pursuance of the Company''s leave rules.
The following table sets out for the status of gratuity / leave
encashment plan
SEGMENT REPORTING
As per Accounting Standard (AS) 17 on "Segment Reporting", segment
information has been provided under the Notes to Consolidated Financial
Statements.
* The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011
respectively read with General Circular No. 08 /2014 dated 4th April
2014 has granted a general exemption from compliance with section 212
of the Companies Act, 1956, subject to fulfillment of conditions
stipulated in the circular. The Company has satisfied the conditions
stipulated in the circular and hence is entitled to the exemption.
Necessary information relating to the subsidiaries has been included in
the Consolidated Financial Statements.
Mar 31, 2013
1. Contingent Liabilities
(a) For disputed Income-tax matters Rs. 410 Lac (Previous Year Rs. 496
Lac) against which amount paid is Rs. 507 Lac (Previous Year Rs. 535
Lac)
(b) Against Bond
(i) Import Duty liability of Rs. NIL (Previous Year Rs. 381 Lac) for
import of machinery against licences granted under EPCG scheme.
(ii) Duty liability amounting to Rs. 115 Lac (Previous Year Rs. 86 Lac)
for the purchase of excisable inputs without payment of duty under the
bonds executed if the export obligation is not fulfilled.
(c) In respect of Bank Guarantee given for tender of Rs. 50 Lac
(Previous Year Rs. NIL).
2. Financial & Derivative instruments
(a) The Company has sold USD 17.38 Mn equivalent Rs. 9862 Lac and EUR
NIL equivalent Rs. NIL (Previous Year USD 14.48 Mn equivalent Rs. 7234
Lac and Eur 0.11 Mn equivalent Rs. 78 Lac) to cover export receivables
and purchased USD 12 Mn equivalent Rs. 6773 Lac (Previous Year USD NIL
equivalent Rs. NIL) to cover loan repayment.
The Company has entered into USD-JPY derivative option contracts
hedging its exposure on ECB availed in JPY for wind power generation
project. Option contracts worth of JPY 109-Mn (Previous Year JPY
181-Mn) are open as on balance sheet date, maturing over a period of
seven years ending on July 2014.
3. Foreign currency translation of Rs. 211 Lac (Previous Year debited
Rs. 223 Lac) arising on account of the exchange difference on non
integral foreign operations is credited to the Statement of Profit &
Loss.
4. Related party transactions
(a) Party where control exists :
Grafalco Ediciones S.L Subsidiary Company 95.58% (P.Y. 95.58%) of whose
equity share capital is held by the Company as at 31st March, 2013
eSense Learning Pvt. Ltd. Subsidiary Company 99.81% (P.Y. 90.69%) of
whose equity share capital is held by the Company as at 31st March,
2013
Navneet Learning LLP Subsidiary 95% (P.Y. 95%) of share of profit of
the Company as at 31st March, 2013
(b) Other Related Parties with whom transactions have taken place
during the year :
(i) Enterprises owned or significantly Navneet Prakashan Kendra
influenced by key management Vikas Prakashan personnel or their
relatives Gala Publishers
Sandeep Agency Gala Comp
The Flagship Advertising Pvt. Ltd.
(ii) Key Management
1. Shri A.R. Gala Personnel & Relatives
2. Shri D.R. Gala
3. Shri H.R. Gala
4. Shri S.R. Gala
5. Shri J.L. Gala
6. Shri J.K. Sampat
7. Shri N.N. Shah
8. Shri B.A. Gala
9. Shri A.D. Gala
10. Shri G.D. Gala
11. Shri R.H. Gala
12. Shri D.C. Sampat
13. Shri S.J. Gala
14. Shri S.J. Gala
15. Shri K.H. Gala
16. Shri S.S. Gala
17. Shri K.B. Gala
5. Lease Transactions : Accounting Standard 19 As a Lessor in an
Operating Lease
The existing operating lease agreements permit the lessee to cancel the
arrangement before expiry of the normal tenure of the lease. As such,
no disclosures are required to be made.
As a Lessee in an Operating Lease
(i) Cancellable Operating Leases
The Company has taken various commercial premises under cancellable
operating leases. These are normally renewable on expiry.
(ii) Non-Cancellable Operating Leases
The Company has taken various commercial premises under non -
cancellable operating leases, the future lease payments in respect of
which are:
6. Disclosure pursuant to Accounting Standard - 15 (Revised)
''Employee benefits'' -
(a) The actuarial valuations of the various employee benefits were
carried out by using the Projected Unit Credit Method.
(b) The Company has recognised the following amounts towards defined
contribution plans as an expense and included in the Statement of
Profit and Loss.
7. SEGMENT REPORTING
As per Accounting Standard (AS) 17 on "Segment Reporting", segment
information has been provided under the Notes to Consolidated Financial
Statements.
8. The Hon''ble High Court of Bombay vide its Order (the Order) dated
8th February, 2013 has approved the Scheme of Amalgamation (the Scheme)
between Lakheni Publications Pvt. Ltd. (LPPL / Amalgamating Company)
and the Company and their respective shareholders. LPPL / Amalgamating
Company was engaged in the business of printing and publication. The
said Scheme has become effective on 12th March, 2013 upon filing of the
order with the Registrar of Companies, Mumbai. In terms of the Scheme,
9,65,00,484 equity shares of Rs. 2 / - each held by LPPL in the Company
stood cancelled and an equivalent number of shares have been issued to
all classes of equity shareholders of LPPL. Further, 3,40,500 fully
paid up 6% Redeemable Non Cumulative Preference Shares of Rs. 10 / -
each of the Company are issued to Preference Shareholders of LPPL in
terms of the Scheme. The accounts of the Company for the Financial Year
2012-13 have been prepared after giving effect to the aforesaid Scheme.
Accordingly, the Company has accounted all the assets and liabilities
of LPPL outstanding as on November 1, 2012 i.e. Appointed Date of the
Scheme following purchase method at their respective book values and
the difference, after adjusting the value of shares issued as a
consideration, is credited to Capital Reserve Account.
9. Extra ordinary item consist of provision for diminution in the
value of long term investments in subsidiary namely Grafalco Ediciones
S.L. amounting to Rs. NIL (Previous Year Rs. 326 Lac)
10. Figures of Rs. 50000 or less have been denoted by #
11. Previous Year Figures have been regrouped / rearranged wherever
necessary.
Mar 31, 2012
1 Estimated amount of Capital Contracts (net of advance) remaining to
be executed and not provided for Rs. NIL (Previous Year Rs. 354 Lacs)
2 Contingent Liabilities.
(a) For disputed Income-tax matters Rs. 496 Lacs (Previous Year Rs. 559
Lacs) against which amount paid is Rs. 535 Lacs (Previous Year Rs. 563
Lacs)
(b) Against Bond :
(i) Import Duty liability of Rs. 381 Lacs (Previous Year Rs. 381 lacs) for
import of machinery against licences granted under EPCG scheme.
(ii) Duty liability amounting to Rs. 86 lacs (Rs. 29 lacs) for the purchase
of excisable inputs without payment of duty under the bonds executed if
the export obligation is not fulfilled.
(c) In respect of bank guarantees given for subsidiary Company of Euro
NIL (Previous Year Euro 2-mn) equivalent to Rs. NIL (Previous Year Rs. 1278
Lacs)
3 Financial & Derivative Instruments
(a) The Company has sold USD 14.48 Mn equivalent Rs. 7234 Lacs and EUR
0.11 Mn equivalent Rs. 78 Lacs (Previous Year USD 9.61 Mn equivalent Rs.
4598 Lacs and Eur 0.87 Mn equivalent Rs. 543 Lacs) to cover our export
receivables and purchase USD NIL equivalent Rs. NIL (Previous Year USD 2
Mn equivalent Rs. 941 Lacs) to cover loan repayment.
The Company has entered into USD-JPY derivative option contracts
hedging its exposure on ECB availed in JPY for wind power generation
project. Option contracts worth of JPY 181-Mn (Previous Year JPY
253-Mn) are open as on balance sheet date,
4. Foreign currency translation of Rs. 223 Lacs (Previous Year credited
Rs. 201 Lacs) arising on account of the exchange difference on non
interagal foreign operations is debited to the statement of Profit &
Loss.
5. Related party transactions
(a) Party where control exists :
Grafalco Ediciones S.L. Ã Subsidiary Company 95.58% (P.Y. 100%) of
whose equity share capital is held by the Company as at 31st March,
2012.
eSense Learning Pvt. Ltd. Ã Subsidiary Company 90.69% (P.Y. 90.69%) of
whose equity share capital is held by the Company as at 31st March,
2012.
(b) Associates à Navneet Learning LLP
6. Lease Transactions : Accounting standard 19
As a Lessor in an Operating Lease
The existing operating lease agreements permit the lessee to cancel the
arrangement before expiry of the normal tenure of the lease. As such,
no disclosures are required to be made.
As a Lessee in an Operating Lease (i) Cancellable Operating Leases :
The Company has taken various commercial premises under cancellable
operating leases. These are normally renewable on expiry.
(ii) Non-Cancellable Operating Leases :
The Company has taken various commercial premises under non-cancellable
operating leases, the future lease payments in respect of which are:
7. Segment Reporting
The Company's operations relates to publication of knowledge based
information in educational and general books form and manufacturing of
paper and other stationery items. It caters to the educational need of
Indian as well as Global market. Accordingly "Publication" and
"Stationery" comprise of the primary segments.
Secondary segmental reporting is performed on the basis of the
geographical location of customers.
The accounting principles and policies used in the preparation of the
Financial Statements, as set out in the note on significant accounting
policies, are also consistently applied to record revenue and
expenditure, in individual segments.
8. During the year, in the line with the notification dated 29th
December, 2011 issued by the Ministry of Corporate Affairs, the Company
opted for option given in the paragraph 46A of Accounting Standard - 11
The Effects of Changes in foreign exchange rates. Accordingly, the
Company with effect from April 1, 2011, has capitalized the forign
exchange difference on translation of long term foreign currency
monetary item at rates different from those at which they were reported
in previous financial statements, in so far as it relates to acquisition
of depreciable assets. Consequently, differences arising due to change
in exchange rate on foreign currency loan relating to acquisition of
depreciable Capital Asset amounting to Rs. 670 lacs are added to cost of
such Capital Assets. Consequent to the change, the depreciation for the
year is higher by Rs. 36 lacs and profit for the year is higher by Rs. 634
lacs.
9. Extra ordinary item consist of provision for diminution in the
value of long term investments in subsidiary namely Grafalco Ediciones
S.L. amounting to Rs. 326 Lacs.
10. Figure of Rs. 50,000 or less have been denoted by #
11. The Revised Schedule VI has become effective from 1 April, 2011 for
the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
Mar 31, 2011
1 Estimated amount of Capital Contracts (net of advances) remaining to
be executed and not provided for Rs. 733.22 Lacs (Previous Year Rs. 353.97
Lacs)
2 Contingent Liabilities.
(a) For disputed Income-tax matters Rs. 559.30Lacs (Previous Year Rs.
566.95 Lacs) against which amount paid is Rs. 563.02 Lacs (Previous Year
Rs. 559.77 Lacs)
(b) Against Bond :
(i) Import Duty liability of Rs. 380.61 Lac (Previous Year Rs. 380.61 lacs)
for import of machinery against licences granted under EPCG scheme.
(ii) Duty liability amounting to Rs. 28.53 lacs (Rs. 23.74 lacs) for the
purchase of excisable inputs without payment of duty under the bonds
executed if the export obligation is not fulfilled.
(c) In respect of bank guarantess given for subsidiary Com- pany of
Euro 2-mn (Previous Year Euro 2-mn) equivalent to Rs. 1278 lacs (Previous
Year Rs. 1222 Lacs)
3 Financial & Derivative Instruments
(a) We have sold USD 9.61Mn equivalent Rs. 45.98 cr. and EUR 0.87 Mn
equivalent Rs. 5.43 cr (Previous Year USD 5.83 Mn equivalent Rs. 27.85 cr.
and Eur 0.44 Mn equivalent Rs. 2.88 cr.) to cover our export receivables
and purchase USD 2 Mn equivalent Rs. 9.41cr. (Previous Year USD 3 Mn
equivalent Rs. 13.94 cr.) to cover loan repayment.
(b) NIL (Previous Year USD 0.20 Mn) worth of derivative contracts were
open on balance sheet date for sale of USD, hedging Company's
receivables in foreign currency.
The Company has entered into USD-JPY derivative option contracts
headging its exposure on ECB Borrowing availed in JPY for wind power
generation project. Option contracts worth of JPY 253-Mn (Previous Year
JPY 325-Mn) were open as on balance sheet date, maturing over a period
of seven years ending on Jul 2014. The company has reasonable hedge
against its ECB borrowing.
4. The Ministry of Corporate Affairs, Government of India vide its
General Notification No. S.O.301(E) dated 8th February 2011 issued
under Section 211(3) of the Companies Act, 1956 has exempted certain
classes of companies from disclosing certain information in their
profit and loss account. The Comapny being a 'manufacturing company'
is entitled to the exemption. Accordingly, disclosures mandated by
paragraphs 3(i)(a) and 3(ii)(a) of Part II, Schedule VI to the
Companies Act, 1956 have not been provided.
5. Percentage and Value of Imported and Indigenous Raw Material and
Stores & Machinery Spares Consumed.
6. (a) Sundry Creditors as per Schedule 'H' under Current Liabilities
include Rs. 111.47 lacs (Previous Year Rs. 128.07 lacs) due to Small Scale
Industrial Undertakings.
(c) The above information has been complied in respect of parties to
the extent to which they could be identified as Small Scale Industrial
Undertakings on the basis of information available with the Company.
(d) In the absence of necessary information with the Company, relating
to the registration status of suppliers under the Micro, Small and
Medium Enterprises Development Act, 2006 the into required under the
said act could not be compilied & Disclosed.
7. Foreign Currency Translation of Rs. 200.67 Lacs (Previous Year Rs.
306.58 Lacs) being the exchange difference is credited to the Profit &
Loss account.
8. The Company has standardized its accounting policy pertaining to
amortization of Intangibles other than Trademarks. This has resulted
into lower charge of depreciation by Rs. 158 Lac and higher deferred tax
provision by Rs. 54 Lac.
9. Related party transactions
(a) Party where control exists :
Grafalco Ediciones S.L. Ã Subsidiary Company 100% (P.Y. 100%) of whose
equity share capital is held by the Company as at 31st March, 2011.
eSense Learning Pvt. Ltd. Ã Subsidiary Company 90.69% (P.Y. 90.69%) of
whose equity share capital is held by the Company as at 31st March,
2011.
(b) Other related parties with whom transaction have taken place during
the year.
(i) Enterprises owned or significantly influenced by key management
personnel or their relatives
Navneet Prakashan Kendra
Vikas Prakashan
Gala Publishers
Sandeep Agencies
Bigspace Realty Pvt. Ltd
The Flagship Advertising Pvt. Ltd.
(ii) Key Management Personnel & Relatives
1. Shri A.R. Gala
2. Shri D.R. Gala
3. Shri H.R. Gala
4. Shri S.R. Gala
5. Shri J.L. Gala
6. Shri J.K. Sampat
7. Shri N.N. Shah
8. Shri B.A. Gala
9. Shri A.D. Gala
10. Shri G.D. Gala
11. Shri R.H. Gala
12. Shri D.C. Sampat
13. Shri S.J. Gala
14. Shri S.J. Gala
15. Shri K.H. Gala
16. Shri S.S. Gala
17. Shri K.B. Gala
10. Details of Loans and Advances and Investments as at the year end
and maximum balance thereof as per clause 32 of Listing Agreement with
Stock Exchange in compliance with SEBI Circular No.SMD/ Policy / Cir /
2 / 2003 dt.10.1.2003
11.Lease Transactions : Accounting standard 19 As a Lessor in an
Operating Lease
The existing operating lease agreements permit the lessee to cancel the
arrangement before expiry of the normal tenure of the lease. As such,
no disclosures are required to be made.
As a Lessee in an Operating Lease
(i) Cancelable Operating Leses :
The Company has taken various commercial premises under cancelable
operating leases. These are normally renewable on expiry.
12 Segment Reporting
The Company's operations relates to manufacturing of knowledge based
information in educational and general books form and in paper and
other stationery items. It caters to the educational need of Indian as
well as Global market. Accordingly "Publication" and "Stationery"
comprise of the primary segments.
Secondary segmental reporting is performed on the basis of the
geographical location of customers.
The accounting principles and policies used in the preparation of the
Financial Statements, as set out in the note on significant accounting
policies, are also consistently applied to record revenue and
expenditure, in individual segments.
13. Disclosure pursuant to Accounting Standard - 15 (Revised) 'Employee
benefits' -
(a) The Company adopted Accounting Standard (AS) 15 (revised 2005) on
"Employee Benefits" issued by ICAI. The actuarial valuations of the
various employee benefits were carried out by using the Projected Unit
Credit Method.
General description
(1) Gratuity (Defined benefit plan)
The Company makes annual contribution to the employee group gratuity
scheme of the Life Insurance Corporation of India, funded defined
benefits plan for qualified employees. The scheme provided for lumpsum
payments to vested employees at retirement, death while in employment
or on termination of employment of an amount equivalent to 15 days
salary for each completed year of service or part thereof in excess of
six months. Vesting occurs upon completion of five years of service.
(2) Accrual for leave encashment benefit is made on the basis of a
year-end actuarial valuation in pursuance of the Company's leave rules.
14. Previous Year Figures have been regrouped/rearranged wherever
necessary.
Mar 31, 2010
1 Estimated amount of Capital Contracts (net of advances) remaining to
be executed and not provided for Rs. 353.97 Lacs (Previous Year
Rs.598.50 Lacs)
2 Contingent Liabilities.
(a) For disputed Income-tax matters Rs.566.95Lacs (Previ- ous Year
Rs.587.90 Lacs) against which amount paid is Rs.559.77 Lacs (Previous
Year Rs.490.82 Lacs)
(b) Against Bond
(i) Rs.380.61 Lac (Previous Year Rs.380.61 lacs): For fulfilment of
export obligation of US $ 26.70 Lac equivalent to Rs.1212.88 Lac,
(Previous Year Rs.1368.52 lacs) for import of machinery against licence
granted under EPCG scheme. The aforesaid export obligation is over and
above fulfillment of yearly export obligation of average export
turnover of last 3 years. The Company has to fulfill the said export
obligation by 9th November, 2012. (ii) Rs.551 lac (Previous Year
Rs.1294 lac): For purchase of excisable inputs without payment of duty
under bond to manufacture goods meant for exports.The Company has
already fulfilled obligation upto Rs. 527.43 lac (Previous Year Rs.
1243.01 lac) till the end of the year.
(c) We have sold USD 8.83 Mn equivalent Rs.41.79 cr. and EUR 0.44 Mn
equivalent Rs.2.88 cr. (Previous Year USD 2.91 Mn equivalent Rs.14.81
cr. and Eur 0.40 Mn equivalent Rs. 2.41 cr.) to cover our export
receivables.
(d) USD 0.20 Mn (Previous Year USD 1.40 Mn) worth of derivative
contracts were open on balance sheet date for sale of USD, hedging
Companys receivables in foreign currency.
The company has entered into USD-JPY derivative option contracts
hedging its exposure on ECB availed in JPY for wind power generation
project. Option contracts worth of JPY 379-MN (Previous Year JPY
462-Mn) are open as on balance sheet date, maturing over a period of
seven years on Jul 2014. The company has resonable hedge against its
ECB borrowing.
(e) In respect of bank guarantees given for other Comapanies of Euro
2-mn (Previous Year Ero 1-mn) equivalent to INR 1222-lac (Previous Year
Rs. 584 Lac)
3. During the year, the Company has spent an amount of Rs.9.35 crores
(Previous Year Rs.9.05 Crores) under the head Royalty, the said amount
is for payment to various authors who are writing the books and also
for obtaining of publishing rights for books being published and sold
by the Company.
4. (a) Sundry Creditors as per Schedule H under Current Liabilities
include Rs. 128.07 lacs (Previous Year Rs. 168.67 lacs) due to Small
Scale
Industrial Undertakings.
(c) The above information has been complied in respect of parties to
the extent to which they could be identified as Small Scale Industrial
Undertakings on the basis of information available with the Comany.
(d) In the absense of necessary information with the Company, relating
to the registration status of suppliers under the Micro, Small and
Medium Enterprises Development Act, 2006, the information required
under the said act could not be compiled & Disclosed.
5. Foreign Currency Translation of Rs. 306.58 Lacs (Previous Year Rs.
-379.26 Lacs) being the exchange difference is credited to the Profit &
Loss account.
6. Related party transactions
(a) Party where control exists :
Grafalco Ediciones S.L. - Subsidiary Company 100% (P.Y. 100%) of whose
equity share capital is held by the Company as at 31 st March, 2010.
Navneet E-Learning Pvt. Ltd. - Subsidiary Company 90.69% (P.Y 87.17%)
of whose equity share capital is held by the Company as at 31st March,
2010
(b) Other related parties with whom transaction have taken place during
the year.
(i) Enterprises owned or Navneet Prakashan Kendra
significantly influenced by key Vikas Prakashan management personnel or
their Qa|a pub|jShers relatives Sandeep Agencies
Bigspace Realty Pvt. Ltd
The Flagship Advertising Pvt. Ltd.
(ii) Key Management Personnel & Relatives
1. ShriA.R. Gala
2. ShriD.R.Gala
3. Shri H.R. Gala
4. Shri S.R. Gala
5. Shri J.L Gala
6. Shri J.K. Sampat
7. Shri N.N. Shah
8. Shri B.A. Gala
9. Shri A.D. Gala
10. Shri G.D.Gala
11. Shri R.H. Gala
12. Shri D.C. Sampat
13. Shri S.J. Gala
14. Shri S.J. Gala
15. Shri K.H. Gala
16. Shri S.S. Gala
17. Shri K.B. Gala
7 Segment Reporting
The Companys operations relates to manufacturing of knowledge based
information in educational and general books form and in paper and
other stationery items. It caters to the educational need of Indian as
well as Global market. Accordingly "Publication" and "Stationery"
comprise of the primary segments.
Secondary segmental reporting is performed on the basis of the
geographical location of customers.
The accounting principles and policies used in the preparation of the
Financial Statements, as set out in the note on significant accounting
policies, are also consistently applied to record revenue and
expenditure, in individual segments.
8 Disclosure pursuant to Accounting Standard -15 (Revised) Employee
benefits
(a) Effective 1 April 2007, the Company adopted Accounting Standard
(AS) 15 (revised 2005) on "Employee Benefits" issued by ICAI. The
actuarial valuations of the various employee benefits were carried out
by using the Projected Unit Credit Method and, pursuant to the adoption
of revised AS 15 the Company has written back an amount of Rs.NIL
(Previous Year Rs. NIL) (net of deferred tax charge of Rs. NIL)to the
opening balance of reserve and surplus.
9. Figures of Rs. 50,000 or less have been denoted by #
10. Previous Year Figures have been regrouped/rearranged wherever
necessary.
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Navneet Education Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
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Navneet Education Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
- Change of Name
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Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
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Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
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