1 Background of the Company
D-Link (India) Limited (“The Company”) was incorporated on May 26, 2008 under Companies Act, 1956. The Company is a subsidiary of
D-Link Holding Mauritius Inc. and is primarily engaged in marketing and distribution of Networking products. The Company operates through a
distribution network with a wide range of product portfolio and solutions with a nationwide reach across India. The equity shares of the Company
are listed on BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE).
TeamF1 Networks Private Limited (“the subsidiary company”) was incorporated on February 6, 2012. D-Link (India) Limited holds 99.99% of the
equity share capital of the subsidiary company. The subsidiary company is in the business of providing services in relation to security features in
Networking Products and test new applications / enhancements and provide maintenance support for existing applications.
The registered office of the Company is “Plot no. U02B, Verna Industrial Estate, Verna, Salcette, Goa - 403 722, India” and the corporate office
is at Unit no. 24, 2nd Floor, Kalpataru Square, Kondivita lane, Andheri-East, Mumbai - 400059.
2 Basis of preparation and material accounting policies
2.1 Basis of preparation
a Statement of compliance
The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the
Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, notified under section 133 of the Companies Act, 2013
(“the Act”) and other relevant provisions of the Act.
The standalone financial statements for the year ended March 31,2026 were approved by the Board of Directors and authorised for issue on
May 9, 2026.
b Functional and presentation currency
The standalone financial statements are presented in Indian Rupees (‘INR’), which is also the Company’s functional currency and all values are
rounded to the nearest lakhs, except where otherwise indicated.
c Basis of measurement
The standalone financial statements have been prepared on the accrual basis and under historical cost convention, except for certain financial
instruments that are measured on an alternative basis on each reporting date:
- Certain financial assets and liabilities (including derivative instruments) and investment in mutual funds (fair value through P&L) that is
measured at fair value (refer accounting policy regarding financial instruments), and
- Net defined benefit liability / asset - Fair value of plan assets less the present value of the defined benefit obligations, limited as explained in
Note 2.2 f.
d Current / non-current classification
The assets and liabilities of the Company have been classified as current or non-current based on the following criteria:
Assets
An asset is classified as current when it satisfies any of the following criteria:
(a) it is expected to be realised in, or is intended for sale or consumption in, the Group’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realised within 12 months after the balance sheet date; or
(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the balance
sheet date.
Current assets include the current portion of non-current financial assets.
All other assets are classified as non-current”
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
(a) it is expected to be settled in, the Group’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within 12 months after the balance sheet date; or
(d) the Group does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.
Terms of a liability that could, at the option of the counter-party, results in its settlement by issue of equity instruments do not affect its
classification. Current liabilities include current portion of non-current financial liabilities.
All other liabilities are classified as non-current.
2.1 Basis of preparation (contd.)
Operating cycle
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The operating
cycle of the Company has been calculated as twelve months for the purpose of current / non-current classification of its assets and liabilities.
e Significant accounting estimates, assumptions and judgments
In application of the Company’s accounting policies, which are described in note 2.2, the management of the Company are required to make
judgements, estimates and assumptions about the carrying amounts of revenues, expenses, assets, liabilities, the accompanying disclosures,
and the disclosure of contingent liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based
on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised prospectively.
Estimates and assumptions
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date that may have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ended
March 31,2026 is included in the following notes:
- recognition of deferred tax assets: availability of future taxable profit against which deductible temporary differences and tax losses carried
forward, if any, can be used.
- measurement of defined benefit obligations: key actuarial assumptions;
- recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of
resources;
- provision for inventory obsolescence
- impairment of financial assets (i.e. expected credit loss on trade receivables)
- impairment of non-financial assets
f Measurement of fair values
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take
those characteristics into account when pricing the asset or liability at the measurement date.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,2, or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described
as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement
date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or
indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
If the inputs used to measure the fair value of an asset or liability fall into different levels of the fair value hierarchy, then the fair value measurement
is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the reporting date during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in the following notes:
- investments (current)
- fair value measurements
2.2 Material accounting policies
a Property, plant and equipment
The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if it is probable that future economic benefits
associated with the item will flow to the Company and the cost of the item can be measured reliably.
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost of an item of property,
plant and equipment comprises its purchase price after deducting trade discounts and rebates, any directly attributable cost of bringing the item
to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located.
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.
2.2 Material accounting policies (contd.)
Depreciation has been provided on straight-line method. The estimated useful life which is in line with Schedule II to the the Act is set out herein
below.
Plant and machinery - 15 years
Office premises - 60 years
Office equipments - 3 to 6 years
Furniture and fixtures - 10 years
Electrical installations - 10 years
Vehicles - 8 years
Assets costing less than ' 5,000 are fully depreciated in the year of acquisition.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as
the difference between the sales proceeds and the carrying amount of the asset and is recognised in the standalone statement of profit and loss
when the asset is derecognised.
Depreciation method, useful lives and residual values are reviewed at each reporting dates and adjusted if appropriate. The management believes
that its estimates of useful lives as given above best represent the period over which management expects to use these assets.
Depreciations on additions / disposals is provided on a pro-rata basis i.e. from / upto the date on which asset is ready for use / disposed of.
b Intangible assets
Intangible assets are stated at their cost of acquisition, less accumulated amortisation and impairment losses. An intangible asset is recognised,
where it is probable that the future economic benefits attributable to the asset will flow to the enterprise and where its cost can be reliably
measured. The amortisable amount of intangible assets is allocated over the best estimate of its useful life on a straight-line basis. The estimated
useful life and amortisation method are reviewed at each reporting date.
The Company capitalises software costs where it is reasonably estimated that the software has an enduring useful life. Software is amortised over
the management’s estimate of its useful life of five years and it is included in depreciation and amortisation expense in the standalone statement
of profit and loss.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising
from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset,
are recognised in the standalone statement of profit and loss when the asset is derecognised.
c Impairment of non-financial assets
Non-financial assets are reviewed at each reporting date to determine whether there are indications of impairment and the carrying amount of the
asset, or where applicable the cash generating unit to which the asset belongs, exceeds its recoverable amount (i.e. the higher of the asset’s net
selling price and value in use). The carrying amount is reduced to the recoverable amount and the reduction is recognised as an impairment loss
in the standalone statement of profit and loss.
The Company’s corporate assets (e.g. central office building for providing support to various cash-generating units) do not generate independent
cash inflows. To determine impairment of corporate asset, recoverable amount is determined for the cash-generating units to which the corporate
asset belongs.
The recoverable amount of a cash generating unit (or an individual asset) is the higher of its value in use and its fair value less costs to sell. Value
in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the cash generating unit (or the asset).
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate
of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised
immediately in the standalone statement of profit and loss.
d Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount
that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company assesses
promises in the contract that are separate performance obligations to which a portion of transaction price is allocated.
Income from services rendered is recognised based on agreements/arrangements with the customers as the service is performed and there are
no unfulfilled obligations.
Revenue is measured based on the transaction price as specified in the contract with the customer. It excludes taxes or other amounts collected
from customers in its capacity as an agent. In determining the transaction price, the Company considers below, if any:
- Variable consideration - This includes bonus, incentives, discounts etc. It is estimated at contract inception and not considered until it
is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated
uncertainty with the variable consideration is subsequently resolved. It is reassessed at the end of reporting date.
- Significant financing component - The Company receives short-term advances from its customers. Using the practical expedient in Ind AS
115, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects,
at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for
that good or service will be one year or less.
- Consideration payable to a customer - Such amounts are accounted as reduction of transaction price and therefore, of revenue unless the
payment to the customer is in exchange for a distinct good or service that the customer transfers to the Company.
Contract modifications are accounted for when additions, deletions or changes are approved either to the contract scope or contract price. The
accounting for modifications of contracts involves assessing whether the services added to the existing contract are distinct and whether the
pricing is at the standalone selling price. Services added that are not distinct are accounted for on a cumulative catch up basis, while those that
are distinct are accounted for prospectively, either as a separate contract, if additional services are priced at the standalone selling price, or as a
termination of existing contract and creation of a new contract if not priced at the standalone selling price.
Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.
e Inventories
Stock-in-trade are valued at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for inventories
less all estimated cost of completion and cost necessary to make the sale. The comparison of cost and net realisable value is made on item-by¬
item basis.
Cost of Stock-in-trade is determined by the weighted average cost method. Cost of Stock-in-trade comprises of all costs of purchase and other
costs incurred in bringing the inventories to their present location and condition.
The Company reviews the condition of its inventories and makes provision against obsolete and slow-moving inventory items which are identified
as no longer suitable for sale or use. The Company estimates the net realisable value for such inventories based primarily on the latest invoice
prices and current market conditions. The Company carries out an inventory review at each reporting date and makes provision against obsolete
and slow-moving items. The Company reassesses the estimation on each reporting date.
f Employee benefits
i. Short-term employee benefits
Employee benefits such as salaries, allowances, bonus and ex-gratia, which fall due for payment within a period of twelve months after
rendering service, are measured on an undiscounted basis. It is charged as expense to the standalone statement of profit and loss in the
period in which the service is rendered.
ii. Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which the Company pays specified contribution to a Government
administered scheme and has no obligation to pay any further amounts. The Company’s monthly contribution to Provident Fund and
Employee’s State Insurance Scheme are considered as defined contribution plans and are charged as an expense in the standalone statement
of profit and loss, based on the amount of contribution required to be made and when services are rendered by the employees.
iii. Defined benefit plans
Employee benefits under defined benefit plans such as gratuity which fall due for payment after completion of employment are measured
by the projected unit credit method, on the basis of actuarial valuations carried out by third party actuaries at each reporting date. The
Company’s obligation recognised in the standalone balance sheet represents the present value of obligations as reduced by the fair value of
plan assets.
Actuarial gains or losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest) are
recognised immediately in other comprehensive income. Remeasurement recognised in other comprehensive income is reflected immediately
in retained earnings and is not reclassified to the standalone statement of profit and loss. Past service cost is recognised in the standalone
statement of profit and loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of
the period to the net defined benefit liability or asset.
The defined benefit obligation recognised in the standalone balance sheet represents the actual deficit or surplus on the Company’s defined
benefit plan. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds
from the plan or reductions in future contributions to the plan.
iv. Other long-term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the
related service are recognised as a liability on the basis of an independent actuarial valuation carried out at the reporting date, using the projected
unit credit method. Actuarial gains or losses are recognised in the standalone statement of profit and loss in the year in which they occur.
The obligations are presented as current liabilities in the balance sheet if the Company does not have an unconditional right to defer the
settlement for at least twelve months after the reporting date.
2.2 Material accounting policies (Continued)
g Foreign currency transactions
Transactions in foreign currencies are recognised at the rates of exchange prevailing at the date of the transaction.
At the end of each reporting date, monetary items denominated in foreign currencies are restated at the rates prevailing at that date.
Exchange differences on monetary items are recognised in the standalone statement of profit and loss in the year in which they arise.
h Borrowing costs
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in the standalone statement of profit and loss in the period in which they are incurred.
i Income tax
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current and deferred tax are recognised in the standalone statement of profit and loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income
or directly in equity respectively.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable
or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received
after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted
by the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amount, and it is intended
to realise the asset and settle the liability on a net basis or simultaneously.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilised.
Deferred tax is not recognised for :
- temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profit or loss at the time of the transaction;
- temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to
control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future;
The carrying amount of deferred tax assets is reviewed at the end of each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company
expects, at the end of the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax
liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
j Cash dividends
The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution is authorised and the
distribution is no longer at the discretion of the Company. As per corporate laws in India, a distribution is authorised when it is approved by the
shareholders in a general meeting. A corresponding amount is recognised directly in equity. An interim dividend is recorded as a liability on the
date of declaration by the Board of Directors.
k Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three
months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the cash flows statement, cash and cash equivalents consist of cash and short term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.
l Earnings per share (‘EPS’)
Basic EPS is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity
shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except
where the results are anti-dilutive.
m Leases
The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right
to control the use of an identified assets, the Company assesses whether: (i) the contact involves the use of an identified asset (ii) the Company
has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct
the use of the asset.
As a lessee, the Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right of-use asset is initially
measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement
date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset
or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same
basis as those of property and equipment. In addition, the right-of- use asset is periodically reduced by impairment losses, if any, and adjusted
for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the
Company uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the fixed payments, including insubstance fixed payments;
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease
payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under
a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if
there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is
recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Company applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.
The Company’s leases comprise buildings for warehouse facilities and office premises.
The Company has elected not to recognise right of use assets and lease liabilities for leases of low value assets and short term leases. The
Company recognise the lease payments associated with these leases as an expense in profit or loss on a straight line basis over the lease term.
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