Note 5: Other equity
Refer to the statement of changes in equity for movement in Other equity.
Nature and purpose of reserves General reserve
General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. This can be utlised in accordance with the provisions of Companies Act.2013.
Security premium
The amount received in excess of face value of the equity shares, in relation to issuance of equity, is recognised in Securities Premium Reserve. It is utilised in accordance with the provisions of the Companies Act, 2013
Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions made to the shareholders.
B. Defined benefit plans:
The Company has following post employment benefits which are in the nature of defined benefit plans:
(a) Gratuity
The Company made provision for gratuity liability which is un funded.The scheme provides for payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in execess of six months. Vesting occurs upon completion of five years of service.
The present value of the defined benefit obligation and th related current service cost were measured using the Projected Unit Credit method as per actuarial valuation carried out at the balance sheet date.
The following tables sets out the status of the gratuity plan as required under IND AS-19 and the amounts recognized in the company's financial statements as at 31st March, 2025.
The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and cha assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present obligation calculated with the projected unit credit method at the end of the reporting period) has been applied while calculating the defined benefit liability recogn
The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the prior year.
The expense of consumables stores and spares has increased in comparison to earlier year because of use of sublimation paper on starting of number of digital printing machines during the year for the first time, which has affected the increase in processing jobs charges reflected in revenue from operations in note no. 19.
Note 18 : Fair value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
a) Level 1 -- This includes financial instruments measured using quoted prices. The fair value of all equity instruments which are traded on the Stock Exchanges is valued using the closing price as at the reporting period.
b) Level 2 -- The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
c) Level 3 -- If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
External valuers are involved, wherever required, for valuation of significant assets, such as properties, unquoted financial assets and significant liabilities. Involvement of external valuers is decided upon by the Company after discussion with and approval by the Company's management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The Company, after discussions with its external valuers, determines which valuation techniques and inputs to use for each case.
At each reporting date, the Company analyses the movements in the values of assets and liabilities which are required to be remeasured or reassessed as per the Company's accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. The Company also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
This note summarises accounting policy for fair value measurement. Other fair value related disclosures are given in the relevant notes.
Note 19 : Financial risk management
The Company's principal financial liabilities comprise of loans and borrowings, trade payables and other financial liabilities. The loans and borrowings are primarily taken to finance and support the Company's operations. The Company's principal financial assets include loans, cash and cash equivalents, trade receivables and other financial assets.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's senior management ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The risk management system is relevant to business reality, pragmatic and simple and involves the following:
Risk identification and definition: Focuses on identifying relevant risks, creating / updating clear definitions to ensureundisputed understanding along with details of the underlying root causes / contributing factors.
Risk classification: Focuses on understanding the various impacts of risks and the level of influence on its root causes. This involves identifying various processes generating the root causes and clear understanding of risk interrelationships.
Risk assessment and prioritisation: Focuses on determining risk priority and risk ownership for critical risks. This involves assessment of the various impacts taking into consideration risk appetite and existing mitigation controls.
Risk mitigation: Focuses on addressing critical risks to restrict their impact(s) to an acceptable level (within the defined risk appetite). This involves a clear definition of actions, responsibilities and milestones.
Risk reporting and monitoring: Focuses on providing to the Board periodic information on risk profile evolution and mitigation plans.
1. Market Risk
The Company has assessed its exposure to market risk. Based on this assessment, the Company is not significantly exposed to market risk. Accordingly, detailed market risk disclosures, including sensitivity analyses, are not applicable.
2 Credit Risk
The Company has evaluated its exposure to credit risk. Based on this evaluation, the Company is not significantly exposed to credit risk from its operating or financing activities. Accordingly, detailed credit risk disclosures, including expected credit loss analysis, are not applicable.
3 Liquidity Risk
The principal sources of liquidity of the Company are cash and cash equivalents, borrowings and the cash flow that is generated from operations. It believes that current cash and cash equivalents, borrowings and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.
The following table shows the maturity analysis of financial liabilities of the Company based on contractually agreed undiscounted cash flows as at the Balance Sheet date
Note 20: Capital Management
The primary objective of capital management is to maintain a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value, safeguard business continuity and support the growth of the Company. It determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated. It is not subject to any externally imposed capital requirements.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. 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, interest bearing loans and borrowings, less cash and cash equivalents.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2025 and March 31,2024
(Net debt/equity)
[Net debt: Non-current borrowings- Deposits/Margin Money against Long Term Borrowings [Equity: Equity share capital Other equity]
(EBIT/(Net finance charges Scheduled principal repayments of non current borrowings (excluding prepayments) during the period))
[EBIT: Profit before taxes /(-) Exceptional items Net finance charges]
[Net finance charges: Finance costs ]
Profit after tax (PAT)/Average Equity)
[Equity: Equity share capital Other equity]
(Sales (including sales & services)/Average Inventory )
[Turnover: Sales (including Sales & Services]
(Sales (including sales & services)/Average Debtors )
[Turnover: Sales (including Sales & Services]
(Average Trade Payables/Expenses in days)
[Expenses: Total Expenses - Finance Cost - Depreciation and Amortisation Expense -Balances Written off -Other expenses with respect to Royalty, Rates & Taxes, Provision for Doubtful Debts & Advances, Provision for Impairment and Foreign Exchange Gain/Loss, Loss on sale of fixed assets]
working capital/Turnover
[Working capital: Current assets - Current liabilities]
[Turnover: Sales (including Sales & Services]
(Net profit after tax/Turnover)
[Turnover: Sales (including Sales & Services]
(EBIT/Average capital employed)
[Capital Employed: Equity share capital Other equity Non current borrowings
Current borrowings]
[EBIT: Profit before taxes /(-) Exceptional items Net finance charges
((Net gain/(loss) on sale fair value changes of mutual funds)/Average investment funds in current and non-current investments)
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