t) Provisions, contingent liabilities and contingent assets
Contingent Liabilities are disclosed in respect of possible
obligations that arise from past events, but their existence
will be confirmed by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the
control of the Company or where any present obligation
cannot be measured in terms of future outflow of
resources or where a reliable estimate of the obligation
cannot be made.
Provisions are recognised when the Company has a
present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will
be required to settle the obligation and the amount can
be reliably estimated. Provisions are not recognised for
future operating losses.
Provisions are measured at the present value of the
management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. The increase in the provision due to
the passage of time is recognised as an interest expense.
Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as
a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in the
same class of obligations may be small.
A contingent asset is disclosed, where an inflow of
economic benefits is probable. An entity shall not
recognise a contingent asset unless the recovery is
virtually certain.
u) Earnings per share
Basic earnings per share is calculated by dividing the net
profit or loss (after tax) for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year. The weighted average
numbers of shares also includes fixed number of equity
shares that are issuable on conversion of compulsorily
convertible instruments and it is included from the date
consideration is receivable (generally the date of their
issue) of such instruments.
The Weighted average number of equity shares
outstanding during the year is adjusted for events such
as issue of shares, bonus issue, bonus element in a rights
issue, share split, and reverse share split (consolidation of
shares), without a corresponding change in resources.
Diluted earnings per share is calculated by dividing the
net profit or loss (after tax) for the year attributable to
equity shareholders and the weighted average number of
equity shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
v) Dividend distribution
Final equity dividends on shares are recorded as a liability
on the date of approval by the shareholders and interim
equity dividends are recorded as a liability on the date of
declaration by the Company's Board of Directors.
w) Business combination under common control
Business combinations involving entities or businesses
under common control are accounted for using the
pooling of interest method. Under pooling of interest
method, the assets and liabilities of the combining
entities or businesses are reflected at their carrying
amounts after making adjustments necessary to
harmonise the accounting policies. The financial
information in the financial statements in respect of
prior periods is restated as if the business combination
had occurred from the beginning of the preceding period
in the financial statements, irrespective of the actual
date of the combination. The identity of the reserves is
preserved in the same form in which they appeared in the
financial statements of the transferor in case of merger.
The difference, between the book value of the assets over
the liabilities of the demerged division and the transferor
company (merged Company), after adjusting impact
of capital reduction of Equity of demerged company
in retained earnings and elimination of inter-company
adjustments, if any, shall be recorded in accordance with
Appendix C of Ind AS 103 (Business combinations of
entities under common control) notified under Section
133 of the Act read with relevant rules issued thereunder
and applicable accounting standards prescribed under
the Act.
The scheme of arrangement between the Company and
its wholly owned subsidiary, Navneet Futuretech Limited
('NFL') and its step down subsidiary, Genext Students
Private Limited ('GSPL'), have been accounted under
the 'pooling of interests' method in accordance with
Appendix C of Ind AS 103 'Business Combinations' and
impact has been considered from the beginning of the
preceding year i.e. 1st April, 2022 as detailed in Note 60 to
these standalone financial statements.
5 Use of significant accounting estimates, judgements and
assumptions
The preparation of the financial statements requires
management to make estimates, judgements and assumptions
that affect the reported balances of revenues, expenses, assets
and liabilities, disclosure of contingent liabilities as on the date
of financial statements. Uncertainty about these assumptions
and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future periods.
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its
assumptions and estimates on parameters available when the
financial statements were prepared. Existing circumstances
and assumptions about future developments, however, may
change due to market changes or circumstances arising that
are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.
a) Estimated useful lives and scrap value (Property, plant &
equipment, Investment properties and Intangible assets)
The Company has conducted internal assessment of
residual value and method of depreciation / amortisation
of property, plant & equipment, investment properties
and intangible assets and estimated that the useful life
is in consonance with Schedule II of the Companies Act,
2013. Property, plant & equipment, investment properties
and intangible assets represent a significant proportion
of the asset base of the Company. Further the Company
has estimated that the scrap value of property, plant &
equipment would be able to cover the decommissioning
costs of property, plant & equipment.
Therefore, the estimates and assumptions made
to determine useful life, residual value, method of
depreciation / amortisation and decommissioning costs
are critical to the Company's financial position and
performance.
b) Impairment of investment in subsidiaries
The Company conducts impairment reviews of
investments in subsidiaries whenever events or changes
in circumstances indicate that their carrying amounts
may not be recoverable or tests for impairment annually.
Determining whether the investments in subsidiaries
are impaired requires an estimate of the value in use
of investments. In considering the value in use, the
management has anticipated future cash flows and
other factors of the underlying businesses / operations
of the subsidiaries and a suitable discount rate in order
to calculate the present value. Any subsequent changes
to the cash flows due to changes in the above-mentioned
factors could impact the carrying value of investments.
c) Determining the lease term of contracts with renewal as
a Lessee
The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgement.
The Company uses significant judgement in assessing
the lease term (including anticipated renewals).
The Company determines the lease term as the non¬
cancellable period of a lease, together with both periods
covered by an option to extend the lease if the Company
is reasonably certain to exercise that option; and
periods covered by an option to terminate the lease if
the Company is reasonably certain not to exercise that
option. In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or not
to exercise an option to terminate a lease, it considers
all relevant facts and circumstances that create an
economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option
to terminate the lease. Any subsequent change in
certainty of exercising option to extend lease term could
impact the carrying value of right of use asset and lease
liability significantly.
d) Fair Value Measurement of Financial Instruments
When the fair value of financial assets and financial
liabilities recorded in the Balance Sheet cannot be
measured based on quoted prices in active markets,
their fair values are measured using valuation techniques
(obtaining fair valuation report from registered valuer).
The inputs to these models are taken from observable
market where possible, but where this is not feasible,
a degree of judgement is required in establishing fair
values. Judgements include consideration of input such
as projections, liquidity risk, credit risk and volatility.
Changes in assumptions about these factors could affect
the reported fair value of financial instruments.
e) Impairment testing for Licenses under intangible assets,
internally generated intangible assets
Impairment testing is an area involving management
judgement, requiring assessment as to whether the
carrying value of assets can be supported by the net
present value of future cash flows derived from such
assets using cash flow projections which have been
discounted at an appropriate rate. In calculating the
net present value of the future cash flows, certain
assumptions are required to be made in respect of highly
uncertain matters including management's expectations
of future growth, discount rates etc.
able)
Allowance for doubtful receivables and advances
(including advances to subsidiaries) represent the
estimate of losses that could arise due to the inability
of the customer / counter party to make payments
when due. These estimates are based on the ageing,
category, specific credit circumstances and the historical
experience of the Company as forward-looking estimates
at the end of each reporting period.
g) Estimation of provisions and contingencies
Provisions are liabilities of uncertain amount or timing
recognised where a legal or constructive obligation
exists at the balance sheet date, as a result of a past
event, where the amount of the obligation can be reliably
estimated and where the outflow of economic benefit is
probable. Contingent liabilities are possible obligations
that may arise from past events whose existence will
be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events which are not
fully within the control of the Company. The Company
exercises judgement and estimates in recognising the
provisions and assessing the exposure to contingent
liabilities relating to pending litigations. Judgement is
necessary in assessing the likelihood of the success of
the pending claim and to quantify the possible range of
financial settlement. Due to this inherent uncertainty in
the evaluation process, actual losses may be different
from the originally estimated provision.
:.4 New standard issued / modified but not effective as at
reporting date
Ministry of Corporate Affairs ("MCA”) notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended 31st March, 2025, MCA has notified
Ind AS - 117 Insurance Contracts and amendments to Ind
AS 116 - Leases, relating to sale and leaseback transactions,
applicable to the Company w.e.f. 1st April, 2024. The Company
has reviewed the new pronouncements and based on its
evaluation has determined that it does not have any significant
impact in its financial statements.
6.1 New contents have been developed & capitalised as it meets the criteria of Ind AS 38 'Intangible Assets'. Also the Company has
developed and capitalised technology platforms to support other products available for teachers and students in accordance with Ind
AS 38.
Impairment test for costs of contents and technology platform, capitalised or booked as under development (considered as a part of
single CGU which is the combination of publication and digital business i.e. sale of educational and general books along with the use
of digital content and platform), has been carried out by the management and considering the overall profitability of the publication
business, no provision for impairment is considered necessary.
As at year end, certain contents and technology platform modules are under development and hence cost incurred upto year end is
grouped as intangible assets under development in note 7.
6.2 Disclosures on impairment test:- as stated in note 6.1 considering the overall profitability of publication segment no impairment loss is
recognised in Statement of Profit & Loss and in the other comprehensive income and hence no sensitivity analysis carried out by the
management.
8.2 Financial guarantees are issued in favour of the banks against loan taken by subsidiary. The amount of guarantee is ' 4,000 Lakhs
(Previous Year ' 4,000 Lakhs). Fair value of such guarantee amount is included to investment disclosed above amounting to ' 295
Lakhs (Previous year: ' 255 Lakhs) related to Indiannica Learning Private Limited. (Refer footnote (ii) of note 59).
8.3 Impairment test for investments and loan to Navneet Futuretech Limited & Indiannica Learning Private Limited:
The Company has made long-term investments into these subsidiaries. These companies have incurred continuous losses in earlier
years and some marginal profit in previous year in Navneet Futuretech Limited. Considering the same, detail impairment test has been
carried out by the Management. Disclosure in regards to impairment tests carried in regards to these subsidiaries are as under:
a) Impairment test for investment into 'Indiannica Learning Private Limited'
During the year, the management conducted an impairment assessment in consultation with the subsidiary company, considering
various parameters including the business outlook, basis of estimates, valuation technique (based on a fair valuation report
obtained from a registered valuer), appropriateness and reasonableness of key assumptions, and actual performance versus
budgeted figures. Based on the outcome of this assessment, the Company has neither recognised nor reversed any impairment
loss during the year (Previous year: NIL)
b) Impairment test for investment in 'Navneet Futuretech Limited'
Valuation of equity share investment into this subsidiary Company has been carried out by the management (also fair value
report obtained from registered valuer). The Company based on the said valuation report and future business prospects has
provided for an impairment loss of ' Nil. (Previous year ' 4,875 Lakhs)
Further, in the previous year based on the Valuation of equity share investment into this subsidiary Company, the Company
has provided for an impairment loss of ' 4,875 Lakhs, which is primarily on account of demerger and fair value changes in
investments made by the said wholly owned subsidiary.
This impairment provision / write back is shown in the statement of profit and loss under 'Exceptional items'.
c) Key assumptions used for value in use calculations:
The valuation of the subsidiaries has been carried out by registered valuers. Based on the business model of the subsidiary,
different valuation methods which in their opinion are most ideal has been used by them.
In current year as well as in previous year with respect to Indiannica Learning Private Limited the valuation is done based on DCF
model and with respect to Navneet Futuretech Limited valuation is done based on revenue multiple after considering the fair value
of the investment made by the subsidiary.
i) Discount rate (wherever relevant)
Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time
value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates.
The discount rate calculation of each CGU is derived from its Weighted Average Cost of Capital (WACC). The WACC takes
into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company's
investors. The cost of debt is based on the interest-bearing borrowings of the Company. Adjustments to the discount rate
are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.
ii) Growth rate estimate
Growth rate is based on the estimates of growth in business expected by the Management of the Company after taking into
account external / industry growth, customer feedback etc.
iii) Revenue multiple
The revenue multiple is based on market comparable given in valuation report by registered valuer.
Management of the Company has performed sensitivity analysis on the above key assumptions to determine value in use.
8.4 Refer note 67 for information on principal place of business and the Company's ownership interest in the above Subsidiaries and
Associate Companies.
8.5 The Company holds 93% of voting rights and equivalent share in profit / loss with respect to the investment made in 'Navneet Learning
LLP' (subsidiary entity) in accordance with LLP agreement and the underlying value of the assets against this investment is significantly
higher as compared to investments made.
During the current year, LLP has divested part of its holding in its associate 'K12 Techno Services Private Limited' ('K12'). Pursuant to
the transaction K12 ceased to be an associate of Navneet Learning LLP Also refer note 44.
8.6 During the previous year, the Company by the way of rights issue has invested in its wholly owned subsidiary 'Indiannica Learning Private
Limited' ('ILPL') amounting to ' 2,000 Lakhs (i.e. 2,00,00,000 equity shares of ' 10 each, fully paid up).
8.7 During the previous year, the Company has purchased 2,17,553 Compulsory Convertible Debentures ('CCD') of its wholly owned
subsidiary 'Navneet Futuretech Limited' ('NFL') of ' 10 each from the erstwhile debenture holder amounting to ' 22 Lakhs
8.8 During the previous year, the Company by the way of right issue has invested in 'Navneet Futuretech Limited' amounting to ' 1,600 Lakhs
(i.e. 1,60,00,000 equity shares of ' 10 each, fully paid up).
8.9 During the earlier years, the Company had invested 490 Lakhs Optionally Convertible Preference Shares ('OCPS') of ' 10 each aggregating
to ' 4,900 Lakhs in its subsidiary company 'Indiannica Learning Private Limited' at face value. The OCPSs carries 0% coupon rate. The
Subsidiary Company has an option to convert OCPS into same number of Equity shares of the Company of ' 10 each (being face value
of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company,
they shall be redeemed at par in full not later than 20 years from the date of allotment.
8.10 As per Ind AS 109 'Financial Instruments', at initial recognition, the Company had chosen to designate investment in Career Point
Limited as 'Fair Value through Profit and Loss'. Career Point Limited shares are listed on National Stock Exchange and Bombay Stock
Exchange.
8.11 In the earlier years, as per pledge arrangement entered into with the party against amount recoverable of ' 113 Lakhs (Previous year '
127 Lakhs) (disclosed under 'Other Non Current Assets' as advance from suppliers in note 13), pledge is invoked by the Company and
accordingly shares of 'Shrenik Limited' reflecting in demat account but not reflecting in investment schedule. Further, mark to market
gain on such shares is also not accounted as the Company does not have contractual right to recover amount in excess to recoverable
amount. Considering the time period for which the matter is pending and slow recovery process from sale of securities, as a matter
of abundant caution provision of ' 127 Lakhs has been made during the earlier year. Subsequently, in the current year, the Company
managed to sell securities amounting to ' 14 Lakhs, resulting in the reversal of the previously made provision to that extent.
27.1 Secured working capital demand loan includes interest accrued but not due amounting to ' 1 Lakh (Previous year: ' 18 Lakhs). Interest
rate for secured rupee loan is ranging from 7.50% to 8%.
27.2 As at year ended 31st March, 2025 and 31st March, 2024, outstanding Commercial papers (unsecured) balance is NIL. Commercial
papers amounting to ' NIL (Previous Year ' 5,000 Lakhs) were issued and fully repaid during the year having carrying interest rate NIL
(Previous Year 7.45%). These Commercial papers were listed on the National Stock Exchange.
27.3 During the year, the Company has been sanctioned working capital limits from banks on the basis of security of book debts and inventory;
for which the quarterly returns or statements has been filed by the Company with such banks which are in agreement with the books of
accounts of the Company.
27.4 The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or entities, including
foreign entities ("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.
27.5 The Mumbai Bench of the National Company Law Tribunal ('NCLT'), through its order dated 6th May 2024 had approved the scheme
of arrangement with the appointed date of the demerger being 1st April, 2023. Between the Appointed Date and Effective Date, the
Subsidiary Company (to the extent related to the Demerged Undertaking) shall carry on and be deemed to carry on all its business and
activities as hereto and shall stand possessed of its properties and assets for and on account of on behalf of the Company. All income
and expenditure arising to the Demerged Undertaking of the Subsidiary Company (including all taxes, if any, paid or accruing in respect
of any profits) by the Demerged Undertaking of the Subsidiary Company shall for all purposes be treated as the income or expenditure
as the case may be of the Company.
34.1 Provision for Refund Liability:
The above amount is net of provision made for refund liability amounting to ' 658 Lakhs (Previous year ' 560 Lakhs). Also refer Note 53
(a) and Note 31.
34.2 Disclosures of Ind AS 115:
(a) For material accounting policies of revenue recognition, refer note 2.2 (k).
(b) Contracts with customer and significant judgement in applying the standard
i) The Company's operations relates to publication of knowledge based information in educational and general books form and
manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The
Company applies the guidance provided in Ind AS 115 'Revenue from contracts with customer' for determining the timing of
recognition of revenue.
ii) For details of revenue recognised from contracts with customers, refer note 34 above.
iii) There are no contract assets arising from the Company's contract with customers.
(c) Disaggregation of revenue
i) For disaggregation of revenue, refer break-up given in note 34 above and note 60 (B).
ii) Refer note 60 (A) (iii) for details regarding customer concentration that represents 10% or more of the Company's total revenue
during the year ended 31st March, 2025 and 31st March, 2024.
(d) Performance obligation
i) For timing of satisfaction of its performance obligations, refer note 2.2(k) of material accounting policies of the Company.
ii) Unsatisfied (or partially satisfied) performance obligations are due to unexpired contract period in cases of contract where
exclusive license is granted to translate, print, publish and sale the translated book in defined territory. The aggregate value
of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is ' 906 Lakhs (Previous year: '
921 Lakhs) out of which 63% (Previous year: 53%) is expected to be recognised as revenue in the next year and the balance
thereafter.
43.1 Sales Tax and GST Expenses include the reversal of input tax credit in accordance with GST Act/rules.
43.2 Other expenses do not include any item of expenditure which is exceeding one percent of the revenue from operations or ' 10 Lakhs
whichever is higher, in addition to the consideration of 'materiality'.
44*[ EXCEPTIONAL ITEMS
Exceptional items represents:
For the year ended 31st March, 2025
The Company's subsidiary entity, 'Navneet Learning LLP' has divested part of its holding in its associate 'K12 Techno Services Private Limited'
('K12') for a consideration of ' 22,518 Lakhs. Pursuant to the transaction K12 ceased to be an associate of Navneet Learning LLP. Further, the
said transaction / divestment has resulted into the following:
1. Exceptional gain in the said subsidiary entity and Company's share thereon of ' 15,024 Lakhs (net of tax).
2. The said investment in erstwhile associate is now recognised as a financial asset by the subsidiary entity of the Company.
3. As per Ind AS 28 the difference between the carrying value and the fair value of the retained interest has been recognised as an
exceptional gain in the Profit & Loss Account of Navneet Learning LLP. The Company's share in the said fair value gain of ' 43,351 Lakhs
(net of tax) has been recognised as an exceptional gain.
Further, during the quarter ended 31st December 2024, in accordance with the option exercised by the subsidiary entity, fair value gain of
' 2,177 Lakhs (net of deferred tax liability of ' 371 Lakhs) has been accounted through profit and loss account (FVTPL) in subsidiary entity
and accordingly the Company's share of fair value gain of ' 2,024 Lakhs Lakhs (net of deferred tax liability of ' 345 Lakhs) has been accounted
through FVTPL.
For the year ended 31st March, 2024
a) ' 3,023 Lakhs towards profit on sale of property.
b) ' 4,875 Lakhs towards diminution in value of investment of wholly owned subsidiary i.e. NFL, which is primarily on account of demerger
and fair value changes in investments made by the said wholly owned subsidiary. (Refer note 8.3)
45*| CONTINGENT LIABILITIES:
(a) Tax matters:
i) A) For disputed Income tax matters ' 661 Lakhs (Previous year ' 661 Lakhs) against which amount provided in books is ' 548
Lakhs (Previous year ' 548 Lakhs) and amount paid under protest is ' 484 Lakhs (Previous year ' 484 Lakhs).
Income tax demands mainly include the appeals filed by the Company before various departmental appellate authorities /
High Courts against the disallowances made by income tax authorities of certain deductions / expenses claimed. Pending
final decisions, the Company has deposited amounts under protest with Income Tax Authorities.
B) Contingent liabilities taken over at the time of arrangement (Refer note 61)
> Assessing Officers of the Income tax department had made certain disallowances for AY 2012-13 to AY 2014-15 and
reduced the losses claimed by the Company by ' 358 Lakhs. The Company has filed appeals before CIT (Appeals) /
ITAT against these orders.
> The ITAT has given substantial reliefs of ' 94 Lakhs as against disallowance of ' 120 Lakhs for AY 2012-13 and of
' 35 Lakhs as against disallowance of ' 51 Lakhs for AY 2014-15. Management is hopeful of getting relief in
AY 2013-14 also as nature of disallowance is similar.
> Further, department has levied penalty of ' 8 Lakhs and ' 16 Lakhs u/s 271(1)(c) of the Income Tax Act, 1961 for
assessment year 2012-13 and 2014-15 respectively. The Company has filed appeals before CIT (Appeals) against both
the penalty orders. The Company has made payment under protest of ' 2 Lakhs against penalty order for AY 2012-13
i and penalty of AY 2014-15 has been adjusted by CPC against refund of AY 2020-21 without consent of company and
hence the Company has appealed against the same.
> Further Assessing Officer has made disallowances of ' 298 Lakhs for AY 2021-22 and raised a demand of ' 57 Lakhs
without adjusting current year losses. The Company has filed appeals before CIT (Appeals) against these orders.
> Considering nature of disallowance and certain favourable judicial decisions with respect to levy of penalty, the
management of the Company is hopeful of getting favourable orders at the higher forum.
ii) For disputed sales tax matters ' 62 Lakhs (Previous Year ' 2,258 Lakhs) against which amount paid under protest is ' 16 Lakhs
(Previous Year: ' 95 Lakhs). (Refer note below)
Sales Tax demands are mainly on account of dispute in rate of certain products, non submission of statutory declarations etc.
Pending final decisions, the Company has deposited amounts under protest with Sales Tax Department.
iii) For disputed GST matters ' 109 Lakhs (Previous Year ' 740 Lakhs) against which amount paid under protest is ' 69 Lakhs, (Previous
year: ' 302 Lakhs) (Refer note 13). Company is in appeal before departmental appellate authority against the assessment orders
for the period from 01.07.2017 to 31.03.2022 where State GST Department of Maharashtra conducted Investigation during the
earlier years.
Note: Future cash outflows in respect of matters considered disputed are determinable only on receipt of judgements / decisions
pending at various forums / authorities. The management does not expect these claims to succeed.
(b) Against bond (mainly GST benefit):
Duty free imports for which export obligation is pending as at year end amounting to ' 1 Lakh (Previous Year ' 48 Lakhs). In the event
Company does not meet the respective obligation, GST would have to be paid for which input credit would be available.
(c) Other matters:
Kotak Mahindra Bank and ICICI bank have given bank guarantees to two of the customers of the Company amounting to ' 12 Lakhs
(Previous year: 12 Lakhs) and ' 3 Lakhs (Previous year: 3 Lakhs) respectively, against which the Company has provided a bank deposit
of the same amount which is kept under lien by the Bank. Further, the Company had availed bank overdraft facility from ICICI Bank
Limited against which the Company had provided a bank deposit of ' Nil (Previous year: 2 Lakhs) which is kept under lien by the Bank.
46*[ CAPITAL COMMITMENTS AND OTHER COMMITMENTS
(a) Estimated amount of contracts remaining to be executed (net of advances) on capital account is ' 11,314 Lakhs (Previous year: ' 25
Lakhs).
(b) Company is committed to fund its wholly owned subsidiaries as and when required.
47~| DISCLOSURE UNDER IND AS 116 'LEASES'
The Company has adopted Ind AS 116 'Leases' effective from 1st April, 2019. Also refer note 2.2(p) for accounting policy on leases.
a) As a Lessee
The Company's lease assets primarily consist of leases for office premises, warehouses, vehicles and computers. For lease arrangement
with lease terms of 12 months or less, the Company has applied the 'short-term lease' recognition exemptions and for lease with lower
underlying value asset, the Company has applied the 'low value asset' recognition exemption.
Notes:
1. The right-of-use asset is depreciated using the straight-line method (SLM) from the commencement date over the lease term of right-
of-use asset. For details of addition, depreciation and carrying amount of right of use asset, refer note 4.
2. Also refer note 63 for contractual maturities of lease liability (as per Ind AS 107).
3. For the purpose of calculation of lease liabilities, future lease payments are discounted at incremental borrowing rate for the lease term
of 5 years. This lease term is arrived based on reasonable certainty of renewal of lease agreement.
b) As a Lessor
For assets given on cancellable lease, it's depreciation and carrying amount, refer note 4. Also, for rental income earned on that
properties, refer note 4.1, which is recognised on a straight line basis over the term of the relevant lease for long term leases.
(e) Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the
hedging instrument is expected to offset changes in cash flows of hedged items.
If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the
hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging
instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes.
The amount of gain / (loss) recognised in Statement of Profit and Loss on account of hedge ineffectiveness for cash flow hedges for
the year ended 31st March, 2025 is ' NIL (Previous year : ' NIL).
(b) Defined benefit plan and long term employment benefits:
These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary increase risk:
I. Investment / Interest risk: The Company is exposed to Investment / Interest risk if the return on the invested fund falls below the
discount rate used to arrive at present value of the benefit. Since the scheme is unfunded in case of compensated absence, the
Company is not exposed to Investment / Interest risk.
II. Longevity Risk: The Company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the
employee separating from the employer for any reason.
III. Risk of Salary Increase: The Company is exposed to higher liability if the future salaries rise more than assumption of salary
escalation.
(i) Defined benefit plan and long term employment benefits: Gratuity (Defined benefit plan):
In respect of Gratuity, the Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation
of India, funded defined benefits plan for qualified employees. However, gratuity for employees of the demerged undertaking (taken over
by the Company from subsidiary 'Navneet Futuretech Limited) is unfunded. The scheme provided for lump sum payments to vested
employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for
each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The Company has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method. The following table sets
out for the status of gratuity plan:
6l| SCHEME OF ARRANGEMENT FOR THE YEAR ENDED 31st MARCH, 2024
a) The Board of Directors at its meeting held on 1st August, 2023 approved the Composite Scheme of Arrangement ('Scheme'), for
amalgamation of 'Genext Students Private Limited' ('GSPL') (step down subsidiary) with the Company and the demerger of Edtech
business of 'Navneet Futuretech Limited' ('NFL') (wholly owned subsidiary) into the Company. The Mumbai Bench of the National
Company Law Tribunal ('NCLT'), through its order dated 6th May, 2024 has approved the scheme with the appointed date of the merger
being 1st April, 2023. A copy of the order was filed with the Registrar of Companies, on 17th May, 2024 in accordance with the applicable
provisions of the Companies Act 2013 and accordingly the Scheme became effective from 17th May, 2024, upon completion of necessary
formalities.
b) The merger has been accounted under the 'pooling of interests' method in accordance with Appendix C of Ind AS 103 'Business
Combinations' and impact has been considered from the beginning of the preceding year i.e. 1st April, 2022. Accordingly, the operations
of the demerged division (software business of NFL) and merged business of GSPL for the period 1st April, 2022 till 31st March, 2023
was given effect by restating the financial statement of the Company for the previous year i.e. financial year ended 31st March, 2023.
The restated financial statements of the Company has been approved by the Board of Directors of the Company at their meeting held
on 22nd May, 2024.
:) Pursuant to the Scheme of Arrangement :
i) The Company has recorded all assets and liabilities of the demerged division of NFL and transferor Company GSPL at their
respective book values thereof as appearing in the books of the NFL and GSPL as at 1st April, 2022 and also as appearing in the
Consolidated Financial Statement . The balances of Assets and liabilities as stated above has been considered based on the
audited financial statements of NFL and GSPL as at and for the year ended 31st March, 2022 which was approved by the Board of
the directors at their meeting held on 13th May, 2022.
ii) The difference, between the book value of the assets over the liabilities of the demerged division of NFL and transferor company
GSPL, after adjusting impact of capital reduction of Equity of NFL in retained earnings and elimination of inter-company adjustments
has been recorded as amalgamation reserve in the books of the Company. Summary of relevant information has been provided
below:
62*[ FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The management assessed that the fair values of financial asset and financial liabilities approximate their carrying amounts.
The following methods and assumptions were used to estimate the fair values:
(a) Fair values of cash and cash equivalents, trade receivables, interest accrued on deposits with bank, bank deposits, trade payables and
other financial liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.
(b) The management has considered fair value of security deposits, loan from bank, loan from related party, equal to their carrying value as
fair values based on the current market interest rates and other risk factors approximate to carrying value.
Financial/Bank guarantee:
(i) Financial Guarantees are issued in favour of banks against loans taken by subsidiary. The amount of guarantee is ' 4,000 Lakhs
(Previous Year ' 4,000 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 8.2 and 29).
(ii) Bank Guarantee is given to electricity department (DNH Power Distribution Corporation Limited, Uttar Gujarat Vij Company Ltd and
Dakshin Gujarat Vij Company Ltd) for electricity deposit of ' 116 Lakhs (Previous Year ' 91 Lakhs), Insurance agency (Avalon Risk
Management Insurance Agency LLC) of ' 171 Lakhs (Previous Year ' 131 Lakhs) given to custom department for imports to be made
and to supplier (Century Pulp And Paper) for securing supplies of materials of ' 60 Lakhs (Previous Year ' 60 Lakhs) For Government
Tender (Tribal Development) of ' 41 Lakhs (Previous Year-' NIL) given to Government tender department. For Gas supply (Sabarmati
Gas Limited) ' 14 Lakhs (Previous Year ' NIL).The Company does not anticipate any liability on these guarantees.
(iii) Kotak Mahindra Bank and ICICI Bank have given bank guarantee to two of the customers of the Company amounting to ' 15
Lakhs (Previous year: 14 Lakhs ) and ' 4 Lakhs (Previous year: 3 Lakhs) respectively, against which the Company has provided a bank
deposit of the same amount which is kept under lien by the Bank. Further, the Company had availed bank overdraft facility from ICICI
Bank Limited against which the Company had provided bank deposit of ' Nil (Previous year: 2 Lakhs) which was kept under lien by the
Bank (Refer note 17.3).
63*| FINANCIAL RISK MANAGEMENT
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprise three types of risk: foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market
risk primarily include trade receivables, trade payables and cash and cash equivalents.
The sensitivity analysis in the following sections relate to the position for the periods presented. The sensitivity analysis has been prepared on
the basis that the amount of net debt and the proportion of financial instruments in foreign currencies are all constant. The analysis exclude
the impact of movements in market variables on the carrying values of gratuity obligation and provisions.
The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks based on the financial
assets and financial liabilities held at the periods presented.
b) Interest rate risk
The following tables demonstrate the sensitivity to a reasonably possible change in interest rate, with all other variables held constant. The
impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities.
Previous year figures are in bracket
Note:- For the purpose of foreign currency sensitivity, trade receivables to the extent unhedged are considered.
d) Price risk
The Company is not exposed to any significant price risk.
e) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other
financial assets.
Trade receivables
Customer credit risk is managed based on the Company's established policy, procedures and control relating to customer credit risk
management. The Company evaluates the concentration of risk with respect to trade receivables as low. Out of total trade receivables
balance as at 31st March, 2025, ' 5,256 Lakhs (Previous year ' 4,132 Lakhs) is due from a single customer being the Company's largest
customer. There are no other customers who represent more than 10% of the balance of trade receivables. Outstanding customer receivables
are regularly monitored by the management.
An impairment analysis is performed at each reporting date on an individual basis for major customers.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company generally does
not hold collateral as security except in one case refer note 15.4.
| Details of the sources of estimation uncertainty in related to significant accounting estimates and judgements:
i) Impairment of investment in subsidiaries
Refer note 2.3 (b) of material accounting policies and note 8.3 for significant accounting estimates and judgements used in performing
impairment test on investment value of subsidiaries.
ii) Provision for employee benefits
Refer note 2.3 (e) of material accounting policies and note 54(b)(i) for significant accounting estimates and judgements used and it's
financial impact of sensitivity of such assumptions.
b) Goodwill was created in financial year 2021-22 on acquisition of subsidiary Genext Students Private Limited and appearing in the
consolidated financial statements. Upon accounting as per pooling of interest method for merger of Genext Students Private Limited
with Navneet Education Limited, the said goodwill is now part of the standalone financial statement.
c) Impairment test for goodwill
The goodwill is mainly on account of future benefits due to the technology platform, content, data base which is being used by the
publication business for creating digital content / books with digital content and to ensure seamless blend of traditional print and
progressive digital platforms. Considering the overall profitability of the publication business, no provision for impairment is considered
necessary.
69*[ WILFUL DEFAULTER
As on 31st March, 2025 the Company has not been declared wilful defaulter by any bank/financial institution or other lender.
70*[ DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY
The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence no disclosure is required.
7l| REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The Company does not have any charges or satisfaction yet to be registered with the registrar of companies(ROC) beyond the statutory period
as at 31st March, 2025.
Note: Explanation for change in ratio by more than 25%
(i) Current ratio improved primarily due to a reduction in borrowings as compared to the previous year
(ii) Debt equity ratio is improved due to a reduction in borrowings compared to the previous year.
(iii) The Debt Service Coverage Ratio has improved primarily due to higher repayment of principal during the year compared to the previous
year.
(iv) Trade payables turnover ratio primarily driven by a rise in the purchase of trading goods and related incidental expenses.
(v) Return on Equity Ratio increases because of ' 604 Crores exceptional gain included in net profit.
(vi) Net profit ratio increases because of ' 604 Crores exceptional gain included in net profit.
(vii) Return on Investment (ROI) improved because the fair-value gain on quoted equity holdings increased, producing a more favourable
overall return.
(viii) Return on Capital employed increases because of ' 604 Crores exceptional gain included in net profit.
76. | Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss (other than already
disclosed above) are either NIL or Not Applicable.
77. | The Company has used an accounting software for maintaining its books of account for the financial year ended 31st March, 2025
which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software. Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record
retention.
78. | Figures less than ' 50,000 have been denoted by #.
As per our report of even date attached hereto For & On behalf of the Board of Navneet Education Limited
For N. A. Shah Associates LLP
Chartered Accountants
Firm Registration Number - 116560W/W100149 sd/- sd/-
Kamlesh S. Vikamsey Gnanesh D. Gala
Chairman Managing Director
DIN: 00059620 DIN:00093008
sd/- sd/- sd/-
Milan Mody Kalpesh D. Dedhia Amit D. Buch
Partner Chief Financial Officer Company Secretary
Membership Number: 103286 Mem. No. A15239
Place : Mumbai Place : Mumbai
Date : 19th May, 2025 Date : 19th May, 2025
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