1. Corporate Information

The Company is principally engaged in the business of providing Managed Printing Solutions and Services, Manufacturing and Distribution of Retail Billing Products and providing Digital Services like GST, Aadhar Authentication, Document Management Solutions, etc. to both enterprise and retail customers, pan India. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act 1956. Its shares are listed on the Bombay Stock Exchange and the registered office of the Company is located at 40/1A, Basappa Complex, Lavelle Road, Bengaluru - 560001.

Notes

a) The Company provides extended warranty for its products. Consequent to adoption of Ind AS, the Company has derecognised the revenue pertaining to the extended warranty and spread on a straignt line basis over the period extended warranty,

b) The amount of stock options expense impact represents the impact of change in valuation of stock options from the erstwhile intrinsic value method under IGAAP to the fair value method under Ind AS.

c) The Company has recognised all actuarial gains and losses on post retirement defined benefit schemes in other comprehensive income. Deferred taxes pertaining to these losses have also been recognised in other comprehensive income.

d) Advance rent expense and Interest income on rent deposits is due to adoption of fair valuation for the Rent Deposits paid by the Company.

e) Warranty provision restatement is due to deferment of revenue for the extended warranty on products sold by the Company. Since the provision was made factoring the extended warranty and with the revenue being deferred and recognised over the period of extended warranty, the provision pertaining to the extended warranty period has been reversed.

a) Capital Reserve - This represents the value of bargain purchase gain upon acquisition and is not freely available for distribution

b) Retained earnings / General reserve - These are free reserves that are available for distribution of dividends. Retained earnings comprises of the Company's undistributed earnings after taxes.

c) Securities premium reserve: Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provision of section 52 of the Companies Act, 2013.

d) Share option outstanding account - The share option outstanding account is used to recognize the value of equity-settled share based payments provided to employees, including key management personnel.

e) Other Comprehensive Income: Changes in the fair value of financial instruments measured at fair value through other comprehensive income and actuarial gains and losses on defined benefit plans are recognized in other comprehensive income (net of taxes), and presented within equity as other comprehensive income.

Terms and Rights Attached to Equity Shares:

Equity shares have a par value of INR 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.

Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Shares Reserved for Issue under Options:

Information relating to ESOP plans of the company, including details of the options issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in Note 24.

Preferential Issue:

On February 6, 2017, the company allotted 20,00,000 equity shares at a price of INR 50 per share, on a preferential basis after the same was duly approved by the members.

Note

On December 28, 2017, the company granted 10,00,000 warrants at a price of INR 60 per warrant, on a preferential basis after the same was duly approved by the members. The company received the initial consideration of 25% i.e. Rs. 1,50,00,000/- and the same has been classified as other Equity. The allottee has a period of 18 months from the date of allottment to convert the warrants into Equity shares, failing which the initial amount paid shall be forfeited as per the terms of the allotment and regulations as applicable.

Note 2: Employee Benefit Plans

The Company provides to its employees following retirement benefits:

i) Gratuity

ii) Leave Accrual

Leave Accrual: The Company allows accumulation / encashment of leave. Such accumulation can be utilized by obtaining leave in the subsequent period employment or encashment at the time of separation. The obligation as on the balance sheet date is provided on the basis of actuarial valuation.

Gratuity: The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportationately for 15 days salary for each completed year of service. The company accounts for gratuity benefits payable in the future based on the actuarial valuation. The company is exposed to actuarial risk with respect to this plan.

Note 3: Warranty

The Company generally offers 6 to 12 months warranties for its products. Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as recent trends that might suggest that past cost information may differ from future claims. Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting period.

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet terms that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in Note 1 to the financial statements.

i) Classification of Financial Assets and Liabilities

All financial assets and financial liabilities are valued at amortised cost.

ii) Fair Value Heirarchy

There are no financial asset or liabilities of the Company, which, after their initial recognition, have been fair valued either during the year or in the previous year.

iii) Financial Risk Management Policies and Objectives

The Company, in the course of its business, is exposed to a variety of financial risks, viz., market risk, credit risk and liquidity risk which can adversely impact the financial performance. The Company's endeavour is to foresee the unrpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The Company has a risk management policy that which not only covers the foreign exchange risk but also other risks such as interest rate risk and credit risk which are associated with financial assets and liabilities.

A. Market Risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the value of financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

B. Foreign currency exchange rate risk

The fluctuations in foreign currency exchange rate may have a potential impact on the statement of profit and loss and equity. This arises from transactions entered. into foreign currency and assets / liabilities which are denomindated in a currency other than the functional currency of the Company.

The Company imports raw materials, traded goods, consumables etc and such transactions are denominated in US Dollars. The Company does not take major exposure in any other foreign currency. The company also exports goods which are billed in US dollars. The Company has a hedging policy approved and reviewed by the Board of Directors to mitigate its risks. Details of foreign currency exposure in USD are as follows:

C. Credit risk

Credit risk is the risk of financial loss arising from counter party failure to repay or service debt according to the contractual terms or obligations. Credit risk covers both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

Trade receivables constitute the financial instruments that are exposed to credit risk. The Company's policy is to deal only with creditworthy counterparts. The Company management considers that all the financial assets that are not impaired for each of the reporting dates under review are of good credit quality, including the reporting dates under review are of good those that are past due. None of the Company financial assets are secured by collateral or other credit enhancements.

The Company's exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date.

Note 4: Segment Reporting

For management purposes, the company is organised into business units based on its products and services and has three reportable segments, as follows:

a) The Printers business which is into design, manufacturing and distribution of Retail Billing Printers and other impact printers

b) The Managed Printing Solutions (MPS) business which is into providing office printing solutions and services to corporate customers

c) The Digital Services business which is into providing Digital services like GST, Aadhaar authentication, document management etc. This business has been seeded during the current financial year.

Note 5: Previous Year figures have been regrouped / rearranged wherever necessary to conform to the current period presentation.