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.