Notes 1: Background and basis of preparation
Background
Jagran Prakashan Limited (“the Company” or “JPL” or
“Company”) is a Company limited by shares, incorporated
and domiciled in India. The Company is engaged primarily
in printing and publication of newspapers and magazines in
India. The other activities of the Company comprise outdoor
advertising business, event management and activation
services and digital business. The Company is a public limited
company and its equity shares are listed on Bombay Stock
Exchange (BSE) and National Stock Exchange (NSE). The
Company is having its registered office at Jagran Building,
2, Sarvodaya Nagar, Kanpur 208 005. The ultimate holding
company of the Company is Jagran Media Network Investment
Private Limited.
Basis of Preparation
(i) Compliance with Ind AS
The standalone financial statements comply in all material
aspects with the Indian Accounting Standards (Ind AS)
notified under Section 133 of the Companies Act, 2013
(the Act) [Companies (Indian Accounting Standards) Rules,
2015] and other relevant provisions of the Act.
(ii) Historical cost convention
The standalone financial statements have been prepared
on a historical cost basis, except for the following:
• Certain financial assets and liabilities that are
measured at fair value; and
• Defined benefit plans - plan assets measured at
fair value
(iii) New and amended standards adopted by the Company
The Ministry of Corporate Affairs vide notification dated
September 9, 2024 and September 28, 2024 notified
the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024 and Companies (Indian
accounting standards) and Third amendment rules 2024
respectively which amended/notified certain accounting
standard (See below) and are effective for annual
reporting period beginning on or after April 1, 2024 :
• Insurance contracts-Ind AS 117, and
• Lease liability in sale and leaseback- Amendments
to Ind AS 116
These amendments did not have any material impact
on the amounts recognized in prior periods and are
not expected to significantly affect the current or future
periods.
Note 2: Critical estimates and judgements
The preparation of standalone financial statements requires
the use of accounting estimates which, by definition, will likely
differ from the actual results. Management also needs to
exercise judgement in applying the Company’s accounting
policies.
This note provides an overview of the areas that involved a
higher degree of judgement or complexity, and of items which
are more likely to be materially adjusted due to final outcome
deviating from estimates and assumptions made. Detailed
information about each of these estimates and judgements is
included in relevant notes together with information about the
basis of calculation for each affected line item in the standalone
financial statements.
Critical estimates and judgements
The areas involving critical estimates or judgements are:
• Estimated goodwill impairment - refer note 3(d)
• Estimation of defined benefit obligation - refer note 12
• Impairment of trade receivables - refer note 5(b) and 30
• Estimated useful life of property plant & equipment -refer
note 3(a)
• Determination of lease term -refer note 3(b)
• Estimated impairment of investments in subsidiaries and
affiliates - refer note 4 and 5
Estimates and judgements are continually evaluated. They are
based on historical experience and other factors, including
expectations of future events that might have a financial impact
on the Company and that are believed to be reasonable under
the circumstances.
Note 3(a): Property, plant and equipment (including
capital work in progress)
Accounting Policy
Freehold land is carried at historical cost. All other items of
property, plant and equipment are stated at historical cost
less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset, as appropriate, only when
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. The carrying amount of any component
accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to
profit or loss during the reporting period in which they are
incurred.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue
with the carrying value of all of its property, plant and
equipment measured as per the previous GAAP and use that
carrying value as the deemed cost of the property, plant and
equipment.
Depreciation methods, estimated useful lives and residual
value.
Note 3(b): Leases
Accounting Policy
The Company leases various offices, warehouses, equipment and land. Rental contracts are typically made for periods of 5
months to 99 years, but may have extention options as described below.
As a Lessee
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement
date
• amounts expected to be payable by the Company under residual value guarantees
• the exercise price of a purchase option if the Company is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is
generally the case for leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Company:
• where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect
changes in financing conditions since third party financing was received
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by Jagran Prakashan
Limited, which does not have recent third party financing
• makes adjustments specific to the lease, e.g. term, country, currency and security.
If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which
has a similar payment profile to the lease, then the Company entities use that rate as a starting point to determine the incremental
borrowing rate.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the
lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying
asset’s useful life.
Payments associated with short-term leases of equipment and all leases of low-value assets are recognized on a straight-line
basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less, without purchase option.
As a lessor
Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the
lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset
and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included
in the balance sheet based on their nature.
(iii) Variable lease payments
The Company does not have any leases with variable lease payments.
(iv) Extension and termination options
Extension and termination options are included in a number of property leases across the Company. These are used to
maximise operational flexibility in terms of managing the assets used in the Company's operations. The majority of extension
and termination options held are exercisable only by the Company and not by the respective lessor.
Critical judgement in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic incentive to
exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options)
are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
For leases of buildings, the following factors are normally the most relevant:
• If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or
not terminate).
• If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonably
certain to extend (or not terminate).
• Otherwise, the Company considers other factors including historical lease durations and the costs and business
disruption required to replace the leased asset.
Most extension options in building/office leases have not been included in the lease liability, because the Company could
replace the assets without significant cost or business disruption.
The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise
(or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in
circumstances occurs, which affects this assessment, and that is within the control of the lessee.
(v) Residual value guarantees
There are no residual value guarantees in the lease contracts.
Notes:
(a) Refer note 36 for carrying value of leasehold land charged as security by the Company.
(b) Refer note 11 (a)(i), 11 (a)(ii) and 11 (a)(iv) for assets charged as security by the Company.
(c) Refer note 35 (ii) in respect of title deeds of immovable properties that have been taken on lease and not in the name
of the Company.
(d) The Company has not revalued any right-of-use assets during the current or the previous year.
Note 3(c): Investment properties
Accounting Policy
Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is
classified as investment property.
Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs.
Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits
associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs
and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of
the replaced part is derecognised.
Leasehold land included in investment properties is depreciated using the straight-line method over the lease term. Leasehold
lands have a lease term ranging from 30 to 99 years. The useful life has been determined based on lease term.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its investment properties measured
as per the previous GAAP and use that carrying value as the deemed cost of investment properties.
(iv) Presenting cash flows
The Company classifies cash inflows/outflows to acquire or construct and proceeds from sale of investment property as
investing and rental inflows as operating cash flows.
Notes:
(a) Refer note 36 for carrying value of investment property charged as security by the Company.
(b) Refer note 11 (a)(i), 11 (a)(ii) and 11 (a)(iv) for assets charged as security by the Company.
(c) Refer note 35 (i) in respect of title deeds of immovable property not in the name of the Company.
Note 3(d) : Goodwill and other intangible assets (acquired)
Accounting policy
(i) Goodwill
Goodwill arising on acquisitions of business is recognised as intangible assets. Goodwill is not amortised but it is tested
for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired,
and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the
carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those
cash-generating units or groups of cash-generating units that are expected to benefit from the business combination
in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored
for internal management purposes, which in our case are the operating segments.
(ii) Title
Title “Dainik Jagran” is carried at historical cost less accumulated amortisation and impairment losses. The Company
has amortised the title on a straight line basis over its estimated useful life of 27 years.
(iii) Computer Software
Computer software are stated at their cost of acquisition net of accumulated amortisation.
(iv) Amortisation methods and periods
The Company amortises intangible assets with a finite useful life using the straight-line method over the following
periods:
• Title 27 years
• Software ranging from 3 years to license period
(v) Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of intangible assets measured
as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.
(vi) Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in
use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets
(cash-generating units or ‘CGU’). Non-financial assets other than goodwill that suffered an impairment are reviewed
for possible reversal of the impairment at the end of each reporting period.
Notes:
(a) Impairment test for goodwill:
Goodwill acquired during the previous years represents the difference between the cost of investment in certain businesses,
acquired pursuant to the Composite Scheme of Arrangement approved by Hon'ble High Courts of Mumbai and Allahabad
and the net assets and liabilities acquired by the Company.
The Company is engaged primarily in the business of printing and publication of newspapers and magazines in India.
The other activities of the Company include outdoor advertising business, event management and activation and digital
businesses.The goodwill recognised in the balance sheet pertains entirely to the print CGU which significantly contributes
to the company overall cashflows. Therefore, the carrying value of goodwill is tested for impairment at the company level,
given the substantial cash flow contribution from the print CGU.
The recoverable amount, being the higher of fair value less cost of disposal and value in use, exceeds net the asset value
of the Company including goodwill. Based on the Value-in-use calculation, no impairment is deemed necessary.
Significant estimate: Key assumptions
For the Current year the recoverable amount of new CGU was determined based on Value -in-use calculation which require
the use of assumptions.The Calculations use cash flow projection based on financial benefits approved by management
covering five year period. Cash flows beyond the five year are extrapoliated using the esitmated growth rates stated below.
These growth rates are consistent with forecasts included in industry reports specific to the industry in which each CGU
operates.
Significant estimate: Impact of possible changes in key assumptions
If the budgeted sales annual growth rate used in the value-in-use calculation for the CGU had been 2% lower than the range
above, no impairment loss would be recognised in the CGU.
I f the budgeted operating costs annual growth rate used in the value-in-use calculation for the CGU had been 2% higher
than the range above, no impairment loss would be recognised in the CGU.
I f the pre-tax discount rate applied to the cash flow projections of the CGU had been 1% higher than the management's
estimates (15% instead of 14%), no impairment loss would be recognised in the CGU.
(b) Title- ”Dainik Jagran” was purchased in year 1996-97 from Jagran Publications at a cost of ' 1,700 and has been fully
amortised on straight line basis over estimated useful life of 27 years during the year ended on March 31, 2024.
(c) Computer software licenses are stated at cost less accumulated amortisation. These costs are amortised using the straight¬
line method over their estimated useful lives of three years to license period.
(d) The Company had not revalued any of its intangible assets during the current or the previous year.
(e) There is no intangible assets under development whose completion is overdue or has exceeded its cost compared to its
original plan.
(f) Intangible assets under development mainly comprises of CRSM software being developing in India.
Note 4: Investments in subsidiaries and associates
Accounting Policy
A subsidiary is an entity controlled by the Company. Control exists when the Company has power over the entity, is exposed, or
has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over
the entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly
affect the entity’s returns.
An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control of those policies.
Investments in subsidiaries and associates are carried at cost. Cost comprises price paid to acquire investment and directly
attributable cost.
Notes:
(a) (i) The Company had invested ' 1,000.00 in 200 number of Optionally Convertible Debentures (”OCDs”) of ' 5 Lakhs
each having zero coupon rate in it's subsidiary Midday Infomedia Limited on March 27, 2014 which were redeemable on
March 26, 2021. Midday has redeemed the said OCDs on March 22, 2016 and the final payment was received by the
Company. The said OCDs were issued on zero coupon rate and therefore the same had been valued by discounting the
future cash flows to the present value based on market rate for a comparable instrument and the amount of ' 150.00
was accounted for as a equity component of investment.
(ii) The Company had invested ' 2,500.00 in 10,000,000, 22.5% Non convertible cumulative redeemable preference
shares of ' 10 each in Midday Infomedia Limited on July 6, 2010. Midday had converted the said preference share into
equity shares of ' 10 each on August 14, 2015 and since no return was received on the preference shares, the same
was valued by discounting the future cash flows to the present value and the amount of ' 2,660.00 was accounted for
as equity component of the investment.
Note 4: Investments in subsidiaries and associates (Contd.)
(iii) The Compnay has recognissed the impairment of ' 360.44 in value of investment in Midday Infomedia Limited during the
year ended on March 31, 2025 being the difference in the value of investment and net worth of the Midday Infomedia
Limited.
(iv) Impairment test for goodwill:
Midday Infomedia Limited(“MIL”) is 100% subsidiary of the Company. The Company assesses impairment on its
investment in subsidiary based on the indicators suggested in Ind AS- 36 “Impairment of Assets”.
In the current year, the carrying value of investment in MIL exceeded the recoverable amount, being the higher of fair
value less cost of disposal and value in use. Based on the value-in-use calculation, an impairment loss of ' 360.44 has
been recognised.
Significant estimate: Key assumptions
For the current year, the recoverable amount of the investment in subsidiary was determined based on value -in¬
use calculation which require the use of assumptions.The calculations use cash flow projections based on financial
budgets approved by management covering five year period. Cash flows beyond the five year are extrapolated using
the estimated growth rates stated below. These growth rates are consistent with forecasts included in industry reports
specific to the industry in which subsidiary operates.
Significant estimate: Impact of possible changes in key assumptions
If the budgeted sales annual growth rate used in the value-in-use calculation for the CGU had been 0.5% lower than
the range above, the Company would have had to recognise an additional impairment loss of ' 1,964.
If the budgeted operating costs annual growth rate used in the value-in-use calculation for the CGU had been 0.5%
higher than the range above, the Company would have had to recognise an additional impairment loss of ' 1,660.
If the pre-tax discount rate applied to the cash flow projections of the CGU had been 1% higher than the management's
estimates (13% instead of 12%), the Company would have had to recognise an additional impairment loss of ' 616.
Note 5: Financial assets
Accounting policy
(i) Classification of financial assets at amortised cost
The company classifies its financial assets at amortised cost only if both of the following criteria are met:
• The asset is held within a business model whose objective is to collect the contractual cash flows, and
• The contractual terms give rise to cash flows that are solely payments of principal and Interest.
Financial assets classified at amortised cost comprise trade receivables, loans, Investment in bonds.
Note 5: Financial assets (contd.)
(ii) Classification of financial assets at fair vale through other comprehensive income (FVOCI) Comprise:
Financial assets at fair value through other comprehensive income (FVOCI) Comprise:
• Equity securities (listed and unlisted) which are not held for trading, and for which the company has irrevocably
elected at initial recognition to recognise changes in fair value through OCI rather than profit or loss. These are
strategic investments and the group considers this classification to be more relevant.
• Debt Securities where the contractual cash flows are solely principal and interest and the objective of the company
business model is achieved both by collecting contractual cash flows and selling financial assets.There are
currently no debt securities which are carried at FVOCI.
(iii) Classification of financial assets at fair vale through profit or loss :
The company classifies the following financial assets at fair value through profit or loss (FVTPL)
• Debt investment (bonds,debtenture and mutual fund) that do not qualify for measurement at either amortised
cost or FVOCI.
• Equity Investment that are held for trading and
• Equity Investment for which the entity has not elected to recognise fair value gains and losses through OCI
Financial assets classified at FVTPL comprise of investment in mutual fund, equity.
(iv) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, being the date on which the Company
commits to purchase or sell the financial asset. Financial assets are derecognised when the rights to receive cash flows
from the financial assets have expired or have been transferred and the Company has transferred substantially all the
risks and rewards of ownership.
(v) Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at
fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.”
(vi) Investments in mutual funds and equity instruments
Investment in mutual funds and equity instruments are classified as fair value through profit or loss as they are not held
within a business model whose objective is to hold assets in order to collect contractual cash flows and the contractual
terms of such assets do not give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding. Where the Company’s management has elected to present fair value gains and
losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains
and losses to the statement of profit and loss. The Company makes such election on an instrument-by-instrument basis.
The classification is made on initial recognition and is irrevocable. Dividends from such investments are recognized in
profit or loss as other income when the Company’s right to receive payments is established.
(vii) Investment in bonds
Investment in bonds are financial assets with fixed or determinable payments that are not quoted in an active market.
These are classified as financial assets measured at amortised cost as they fulfill the following conditions:
• Such assets are held within a business model whose objective is to hold assets in order to collect contractual
cash flows.
• The contractual terms of such assets give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
The Company recognises these assets on the date when they are originated and are initially measured at fair value
plus any directly attributable transaction costs.
Changes in the fair value of financial assets at fair value through profit or loss are recognized in other gain/ (losses)- net
in the statement of profit and loss.
Note 11: Financial liabilities
Accounting policy
Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit
or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities
are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.
In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period
of the facility to which it relates.
Borrowings are derecognised from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another
party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss
as other gains/(losses).
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability
for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement
on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date,
the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the
financial statements for issue, not to demand payment as a consequence of the breach.
11(a): Non - current borrowings (Contd.)
(ii) b) The second issue comprised 1,500 NCDs (ISIN Number: INE199G07057) of ' 10.00 Lakhs each aggregating ' 15,000.00
Lakhs @ 8.45% p.a. which were allotted on April 27, 2020 The debentures were listed on NSE Limited. The Company has
repaid the amount of ' 7,500.00 Lakhs on April 27, 2023 and balance amount of ' 7,500.00 Lakhs were repaid on April
26, 2024 which denotes the principal repayment due as on date along with interest thereon to the debenture holders in
accordance with the terms of Debenture Trust Deed in full and final settlement of debentures.
(iii) The Company had undertaken that the Promoter Group shall hold at least 60% equity shareholding in the Company, directly
or indirectly, and exercise management control till the tenor of the NCDs. After redemption of debenture on April 27, 2024,
undertaking of holding 60% shares in the Company by the Promoters has been released.
(All amounts in Lakhs, unless otherwise stated)
Note 11(c): Trade payables
Accounting Policy
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which
are unpaid. The amounts are unsecured and are usually paid within due dates.Trade and other payables are presented as current
liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value
and subsequently measured at amortised cost using the effective interest method.
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