(xxv) Provisions, Contingent Liabilities and
Contingent Assets

Provisions involving substantial degree of
estimation in measurement are recognised
when there is a present obligation as a result
of past events and it is probable that there
will be an outflow of resources. Contingent
liabilities are not recognised but are
disclosed in the notes to financial statements.
Contingent assets are not recognised but
disclosed in the financial statements when
an inflow of economic benefits is probable.
Provisions, contingent liabilities are reviewed
at each balance sheet date and adjusted to
reflect the current best estimate.

A contingent liability exists when there is a
possible but not probable obligation, or a
present obligation that may, but probably
will not, require an outflow of resources, or
a present obligation whose amount cannot
be estimated reliably. Contingent liabilities
do not warrant provisions but are disclosed
as the possibility of outflow of resources is
remote.

(xxvi) Cash Flow Statements

Statement of Cash Flows is prepared
segregating the cash flows into operating,
investing, and financing activities. Cash flow
from operating activities is reported using
indirect method, adjusting the net profit for
the effects of changes during the period in
inventories, operating receivables, payables,
transactions of a non-cash nature such as
depreciation, provisions, deferred taxes,
unrealised foreign currency gains and losses,
and undistributed profits of associates and
all other items for which the cash effects are
investing or financing cash flows.

For the purpose of presentation in the
statement of cash flow, cash and cash
equivalents includes cash on hand and
balance held with banks and short term
investments in liquid Mutual Funds.

II. For Intangible Assets Under Development

a) Whose completion is overdue or

b) Has exceeded its cost compared to its original plan

There is no Intangible Asset Under Development whose completion is overdue or has exceeded its cost compared
to its original plan.

Note:

These figures are inclusive of Assets at Sri Lanka Branch. Depreciation for Assets at Sri Lanka Branch is charged as per
standards applicable according to local laws of Sri Lanka and not as per Sch-II of Companies Act, 2013.

Terms/ Rights attached to Equity Shares:

The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity
shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General
Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion to their shareholding.

During the FY 2023-24 Company Bought back 3,37,500 Equity Shares at a price of ' 800/- Per Equity Share

(C) In the arbitration proceedings relating to dispute between Videojet Technologies Inc. and Control Print
Limited, Company filed an appeal against the Order of Arbital Tribunal (involving ' 632.92 Lakhs plus
Interest) before the Honourable Bombay High Court. The Honourable Court vide it order date February
28, 2020, stayed the award of the Arbitral Tribunal and directed the Company to furnish Bank Guarantee
of ' 230.00 Lakhs, which the Company has complied with. Since the matter is pending for final adjudication
before the Court, the Company's Management has decided that no provision for any liability in this matter
is considered necessary in the accounts.

48. Financial Statements of the Sri Lanka Branch of the Company for the year ended 31 March 2025 is part of Standalone
Ind As Financial Statement and the same has been translated in accordance with Ind AS-21 “The effects of changes
in the Foreign exchange Rates”. The Branch has incurred Net Loss of ' 18.68 Lakhs during the financial year ended
31 March 2025.

49. The Company operates in a Single Reportable Segment, viz Coding & Marking Machines and Consumables
thereof.

50. During the year, the Company has made monetary contribution of ' 25 Lakhs to NGO which is being carried
forward to immediate three financial year pursuant to the Companies (Corporate Social Responsibility Policy)
Amendment Rules 2021 dated 22 January 2021. Company’s obligation towards Corporate Social Responsibility
under the provisions of Section 135 of The Companies Act 2013 for FY 2024-25 is ' 126.25 Lakhs has been set off

nnninct Rrm inht fnru/nrrl hnlnnm r>f Fycpcc f'RR cnpnt in nnrlinr imnrc

52. The Company having an eligible undertaking under section 80IE of the Income Tax Act, 1961 relating to Guwahati
plant has been historically subject to the Minimum Alternate Tax (MAT) provisions. FY 2024-25 is the last year where
the Company is liable to pay income tax under MAT Provision. The excess of income tax on book profit paid over
the normal income tax for the past several years stand at ' 49.57 Crores and the same is allowed to be carried
forward as a MAT credit, which can be utilised against the normal income tax liability in future years. Based on the
evaluation of the factors mentioned as per Ind-AS 12 “Income Taxes”, the Company has determined that there is
virtual certainty that sufficient future taxable profits will be available against which the MAT credit Entitlement of
' 49.57 Crores can be utilised. Therefore, the Company has recognised a deferred tax asset of ' 49.57 Crores in the
financial statements and correspondingly MAT Credit Entitlement of ' 49.57 Crores under Tax Expenses in Statement
of Profit and Loss for the year ended 31 March 2025.

53. There are no procedings being initiated or pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988, Hence relevant disclosures not applicable.

54. The Company has not entered into any transcations with Companies Struck off under section 248 of the companies
Act 2013 except to the extent stated below:

55. The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or
statements of current assets filed by the Company with banks or financial institutions are generally in agreement
with the books of accounts except some minor differences which are not material to report.

56. There are no instances of any transaction not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961)

57. The Company is not declared as a wilful defaulter by any bank or financial Institution or other lender.

58. There are no charges pending for creation and pending for satisfaction to be registered with Registrar of Companies
beyond the statutory period.

59. 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

60. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

61. EMPLOYEE BENEFIT OBLIGATIONS
Defined benefit plans:

Gratuity Plan

In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan
which provides for gratuity, covering eligible employees. The Plan provided a lump sum gratuity amount to eligible
employees at retirement, termination or death. Liabilities with regard to Gratuity plan are determined by actuarial
valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same method
as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Characteristics of defined benefit plans and associated risks:

The Company has an unfunded Defined benefit gratuity plan. Gratuity is paid from company as and when it
becomes due and is paid as per company scheme for Gratuity.

Gratuity is a defined benefit plan and company is exposed to following Risks:

• Salary Risk- The Present value of the defined benefit plan liability is calculated by reference to the future
salaries of members.

As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

• Interest Rate Risk- A fall in the discount rate which is linked to the Government securities. Rate will increase
the present value of the liability requiring higher provision.

• Asset Liability Matching Risk- The plan faces the ALM risk as to the matching cash flow. Company has to
manage payout based on pay as you go basis from own funds.

• Mortality Risk- Since the benefits under the plan is not payable for life time and payable till retirement age
only plan does not have any longevity risk.

62. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities
(“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has
not received any fund from any party(Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

63. There is no scheme of arrangement approved by competent authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the year, hence relevant disclosures are not applicable.

64. Previous year figures have been regrouped, rearranged and reclassified wherever necessary.

As per our Report of even date attached For and on behalf of the Board of Directors

For Jhawar Mantri & Associates Basant Kabra Shiva Kabra

Chartered Accountants Managing Director Jt. Managing Director

Firm Registration Number: 113221W DIN 00176807 DIN 00190173

Vinayak Mantri Murli Manohar Thanvi Jaideep Barve

Partner Company Secretary & Compliance Officer Chief Financial Officer

Membership No. 153459
UDIN: 25153459BMOAJT9739

Place: Navi Mumbai Place: Mumbai

Date: 23 May 2025 Date: 23 May 2025