1 Company overview
The Sandesh Limited (the 'Company') is a public
limited Company domiciled in India and is
incorporated under the provisions of the Companies
Act, 1956 with its Registered Office located at
“Sandesh Bhavan", Lad Society Road, B/h. Vastrapur
Gam, P.O. Bodakdev, Ahmedabad - 380054. The
Company's shares are listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange
(NSE).
The Company belongs to the Regional Print Media
Industry and is a publisher of “SANDESH" a premier
Gujarati daily newspaper in Gujarat Region, it carries
on the business of editing, printing and publishing
newspapers and periodicals, and also runs Gujarati
news channel "Sandesh News ", and out of Home
Business under name of "OOH".
The financial statements are approved for issue by
the Company's Board of Directors on May 29, 2026
2 Basis of preparation2.1 Statement of compliance
These Standalone Financial Statements are prepared
in accordance with the provisions of the Companies
Act, 2013 (''The Act''), guidelines issued by the
Securities and Exchange Board of India (SEBI) and
Indian Accounting Standard (Ind AS) under the
historical cost convention on accrual basis except
for certain financial instruments which are measured
at fair values, defined benefit liability / (asset) which
is recognized at the present value of defined benefit
obligation less fair value of plan assets. The Ind AS
are prescribed under Section 133 of the Act read
with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendment
rules issued thereafter.
2.2 Basis of measurement
The Financial Statements have been prepared on the
historical cost basis except for the following items
which are measured at fair values:
- certain financial assets and liabilities
- defined benefit plan assets
2.3 Functional and presentation currency
The Financial Statements are presented in Indian
Rupees, which is the functional currency of the
Company and all values are rounded to the nearest
lakhs except when otherwise indicated.
2.4 Current and non-current classification of assets
and liabilities:
The Standalone Assets and Liabilities and the
Standalone Statement of Profit and Loss, including
notes, are prepared and presented as per the
requirements of Schedule III (Division II) to the
Companies Act, 2013. All assets and liabilities have
been classified and disclosed as current and non¬
current as per the Company's normal operating
cycle and other criteria set out in Schedule III. Based
on the nature of products and the time between
the acquisition of assets for processing and their
realization into cash and cash equivalents, the
Company has ascertained its operating cycle as
twelve months for the purpose of current and non
current classification of asset and liabilities.
2.5 Use of estimates and Judgements
The preparation of the financial statements in
conformity with Ind AS requires management to
make estimates, judgments and assumptions.
These estimates, judgments and assumptions
affect the application of accounting policies and
the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at
the date of the financial statements and reported
amounts of revenues and expenses during the period.
Accounting estimates could change from period
to period. Actual results could differ from those
estimates. Appropriate changes in estimates are
made as management becomes aware of changes in
circumstances surrounding the estimates. Changes
in estimates are reflected in the financial statements
in the period in which changes are made and, if
material, their effects are disclosed in the notes to
the financial statements.
Application of accounting policies that require
critical accounting estimates involving complex and
subjective judgments and the use of assumptions in
these financial statements are:
- Amortization of advertisement rights
- Useful lives of Property, plant and equipment
- Valuation of financial instruments
- Provisions and contingencies
- Income tax and deferred tax
- Measurement of defined employee
benefit obligations
3 Critical accounting estimates and judgements3.1 Revenue Recognition
Revenue is recognized to the extent it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured. Revenue
towards satisfaction of a performance obligation
Is measured at the amount of transaction price
(net of variable consideration) allocated to that
performance obligation. The transaction price of
goods sold and services rendered is net of variable
consideration on account of discounts as part of the
contract in normal course of Company's activities.
Advertisement revenue
Advertisement revenue is recognised as and when
advertisement is published / displayed / aired and
is disclosed net of trade discounts and goods and
service tax.
Circulation revenue
Sale of newspaper and magazine is recognised when
the significant risk and rewards of ownership have
passed on to the buyers and is disclosed net of sales
return and discounts.
Sale of Trading Goods
The Company earns revenue from trading
in commodities.
Revenue from scrap sale
Sale of waste paper and scrap is recognised when
the significant risk and rewards of ownership have
passed on to the buyers.
Other Income
Gain or Loss on derecognition of financial asset is
determined as the difference between the sale
price/ redemption value (net of selling costs) and
carrying value of financial asset.
Interest income is recognised using effective interest
method. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
through expected life of the financial asset to the
gross carrying amount of the financial asset. When
calculating the effective interest rate, the Company
estimates the expected cash flows by considering all
the contractual terms of the financial instrument but
does not consider the expected credit losses.
Dividend income is recognised when the right to
receive the dividend is established.
All other income are recognised and accounted for
on accrual basis.
3.2 Property, Plant and Equipment
Property, Plant and Equipment are stated at cost,
net of accumulated depreciation and accumulated
impairment losses, if any.
The cost comprises the purchase price, borrowing
cost if capitalization criteria are met and directly
attributable cost of bringing the asset to its
working condition for its intended use. Any trade
discounts and rebates are deducted in arriving at
the purchase price.
Subsequent expenditures relating to property, plant
and equipment is capitalized only when it is probable
that future economic benefits associated with these
will flow to the Company and the cost of the item can
be measured reliably.
All other expenses on existing fixed assets, including
day-to-day repair and maintenance expenditure and
cost of replacing parts, are charged to the statement
of profit and loss for the period during which such
expenses are incurred.
Property, Plant and Equipment not ready for the
intended use on the date of the Balance Sheet are
disclosed as “Capital work-in-progress".
Gains or losses arising from derecognition of fixed
assets are measured as the difference between the
net disposal proceeds and the carrying amount of
the asset at the time of disposal and are recognized
in the statement of profit and loss when the asset
is derecognized.
Depreciation on Property, Plant and Equipment, other
than plant and machinery, is provided on written
down value method and depreciation on plant and
machinery is provided on Straight line method (SLM)
basis as per the useful life prescribed under Schedule
II to the Companies Act, 2013.
In respect of Property, Plant and Equipment
purchased during the year, depreciation is provided
on a pro-rata basis from the date on which such
asset is ready to use.
The residual value, useful life and method of
depreciation of Property, Plant and Equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.
3.3 Intangible assets
An intangible asset is recognised, only where it is
probable that future economic benefits attributable
to the asset will accrue to the enterprise and the cost
can be measured reliably.
a Advertisement right
Intangible assets are stated at cost, less
accumulated amortization and impairment
losses, if any.
Advertisement rights granted by Vadodara
Municipal Corporation (VMC) are against
construction service rendered by the Company
on BOT basis.
Advertisement right cost comprises of direct
and indirect expenses on construction of bus
shelters in terms of Concession Agreement.
Subsequent expenditure related to an item of
intangible assets is added to its book value
only if it increases the future benefits from the
existing asset beyond its previously assessed
standard of performance.
Investment properties are depreciated using
written down value method to allocate cost of
assets over their estimated useful lives as per
Schedule II to the Companies Act .
All other expenses on existing intangible assets
are charged to the statement of profit and loss
for the period during which such expenses
are incurred.
Intangible assets are amortized on straight line
basis over concession period.
b Other intangible assets
Intangible assets are stated at cost, less
accumulated amortization and impairment
losses, if any.
Intangible assets not ready for the intended use
on the date of the Balance Sheet are disclosed
as intangible assets under development.
Separately purchased intangible assets are
initially measured at cost. Subsequently,
intangible assets are carried at cost less any
accumulated amortization and accumulated
impairment losses, if any.
The useful lives of intangible assets are assessed
as either finite or infinite. Finite-life intangible
assets are amortized on a straight-line basis
over the period of their expected useful lives.
Intangible assets are amortized over a period
of six years on straight line basis as per the
useful life prescribed under Schedule II to the
Companies Act, 2013. Intangible assets acquired
/ purchased during the year are amortized on
a pro-rata basis from the date on which such
assets are ready to use.
Intangible assets with an infinite useful life are
not amortized. Such intangible assets are tested
for impairment.
The residual value, useful life and method of
amortization of intangible assets are reviewed
at each financial year end and adjusted
prospectively, if appropriate.
3.4 Investment Property
Investment Property is measured initially at cost
including related transaction costs.
The cost comprises the purchase price, borrowing
cost if capitalization criteria are met and directly
attributable cost of bringing the asset to its working
condition for its intended use.
Subsequent expenditures are capitalized only
when it is probable that future economic benefits
associated with these will flow to the Company and
the cost of the item can be measured reliably.
Investment properties are depreciated using written
down value method to allocate cost of assets over
their estimated useful lives. Investment properties
generally have useful life of 60 years.
All day-to-day repair and maintenance expenditure
are charged to the statement of profit and loss for
the period during which such expenses are incurred.
Gains or losses arising from derecognition of
investment property are measured as the difference
between the net disposal proceeds and the carrying
amount of the asset at the time of disposal and are
recognized in the statement of profit and loss when
the asset is derecognized.
3.5 Inventories
Inventories are valued at lower of cost and net
realizable value. Cost of materials is determined
on weighted average basis. Net realizable value
is the estimated selling price less estimated cost
necessary to make the sale.
3.6 Financial Instruments3.6.1 Initial recognition
The Company recognizes financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument.
All financial assets and liabilities are recognized
at fair value on initial recognition except for
trade receivables which are initially measured at
transaction price.
Transaction costs that are directly attributable
to the acquisition or issue of financial assets and
financial liabilities that are not at fair value through
profit or loss are added to or deducted from the
fair value of financial assets or financial liabilities on
initial recognition.
Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised
immediately in profit or loss.
Trade receivable that do not contain significant
financing component are measured at
transaction price.
Regular purchase and sale of financial assets are
accounted for at trade date.
3.6.2 Subsequent measurementa Non-derivative financial instrumentsi Financial assets carried at amortized cost
A financial asset is subsequently measured
at amortized cost if it is held within a
business model whose objective is to hold
the asset in order to collect contractual
cash flows and the contractual terms of the
financial asset give rise on specified dates
to cash flows that are solely payments
of principal and interest on the principal
amount outstanding.
ii Financial assets at fair value through
other comprehensive income
A financial asset is subsequently measured
at fair value through other comprehensive
income if it is held within a business model
whose objective is achieved by both
collecting contractual cash flows and
selling financial assets and the contractual
terms of the financial asset give rise on
specified dates to cash flows that are solely
payments of principal and interest on the
principal amount outstanding.
The Company has made an irrevocable
election for its investments which are classified
as equity instruments to present the subsequent
changes in fair value in other comprehensive
income based on its business model. For
such equity instruments, the subsequent
changes in fair value are recognized in other
comprehensive income.
iii Financial assets at fair value through
profit or loss
A financial asset which is not classified in any
of the above categories are subsequently
measured at fair value through profit or
loss. Fair value changes are recognised as
other income in the Statement of Profit
or Loss.
iv Financial liabilities
Financial liabilities are subsequently carried
at amortized cost using the effective
interest method.
v Investment in subsidiary
Investment in subsidiary is carried at cost
in the separate financial statements.
b Derivative financial instruments
In order to hedge its exposure to commodity
price risks, the Company enters into derivative
financial instruments. The Company does
not hold derivative financial instruments for
speculative purposes.
Such derivative financial instruments are
initially recognised at fair value on the date on
which a derivative contract is entered into and
are subsequently re-measured at fair value.
Derivatives are carried as financial assets when
the fair value is positive and as financial liabilities
when the fair value is negative.
Any gains or losses arising from changes in the
fair value of derivatives are taken directly to the
statement of profit and loss.
c Equity instruments
An equity instrument is a contract that
evidences residual interest in the assets of the
Company after deducting all of its liabilities.
Incremental costs directly attributable to the
issuance of equity instruments are recognised
as a deduction from equity instrument net of
any tax effects.
3.6.3 Derecognition
The Company derecognizes a financial asset when
the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset
and the transfer qualifies for derecognition under
Ind AS 109. A financial liability is derecognized when
obligation specified in the contract is discharged or
cancelled or expires.
3.6.4 Off-setting
Financial assets and liabilities are offset and the net
amount is presented in the balance sheet when the
Company currently has a legally enforceable right to
offset the recognised amount and intends either to
settle on a net basis or to realize the asset and settle
the liability simultaneously.
3.7 Fair Value Measurement
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.
The fair value measurement assumes that the
transaction to sell the asset or transfer the liability
takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most
advantageous market for the asset or liability
A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefit by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorized within the fair value hierarchy. The
fair value hierarchy is based on inputs to valuation
techniques that are used to measure fair value that
are either observable or unobservable and consists
of the following three levels:
Level 1 - inputs are quoted prices (unadjusted) in
active markets for identical assets or liabilities
Level 2 - inputs are other than quoted prices
included within level 1 that are observable for the
asset or liability either directly (i.e. as prices) or
indirectly (i.e. derived prices)
Level 3 - inputs are not based on observable market
data (unobservable inputs).Fair values are determined
in whole or in part using a valuation model based
on assumption that are neither supported by prices
from observable current market transactions in the
same instrument nor are they based on available
market data.
3.8 Income tax
"Income tax expense comprises current tax expense
and the net change in the deferred tax asset or
liability during the year. Current and deferred taxes
are recognised in 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. "
3.8.1Current Tax
Current tax is recognised in profit or loss, except
when it relates to items that are recognised in
other comprehensive income or directly in equity,
in which case, the current tax is also recognised
in other comprehensive income or directly in
equity, respectively.
Current tax for current and prior periods is recognized
at the amount expected to be paid to or recovered
from the tax authorities, using the tax rates and
tax laws that have been enacted or substantively
enacted by the balance sheet date.
Current tax assets and current tax liabilities are
offset, where Company has a legally enforceable
right to set off the recognised amounts and where
it intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously.
Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject
to interpretation and establishes provisions
where appropriate.
Advance taxes and provisions for current income
taxes are presented in the balance sheet after off¬
setting advance tax paid and income tax provision
arising in the same tax jurisdiction and where the
relevant tax paying unit intends to settle the asset
and liability on a net basis.
3.8.2 Deferred Tax
Deferred tax is recognised in profit or loss, except
when it relates to items that are recognised in
other comprehensive income or directly in equity,
in which case, the deferred tax is also recognised
in other comprehensive income or directly in
equity, respectively.
Deferred income tax is recognised using the
Balance Sheet approach. Deferred tax liabilities are
recognised for all taxable temporary differences,
except to the extent that the deferred tax liability
arises from initial recognition of goodwill; or initial
recognition of an asset or liability in a transaction
which is not a business combination and at the time
of transaction, affects neither accounting profit nor
taxable profit or loss.
Deferred tax assets are recognised for all deductible
temporary differences, carry forward of unused tax
losses and carry forward of unused tax credits to the
extent that it is probable that taxable profit will be
available against which those temporary differences,
losses and tax credit can be utilized, except when
deferred tax asset on deductible temporary
differences arise from the initial recognition of an
asset or liability in a transaction that is not a business
combination and at the time of the transaction,
affects neither accounting profit nor taxable profit
or loss.
Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply to the period
when the asset is realized or the liability is settled,
based on the tax rules and tax laws that have been
enacted or substantively enacted by the end of the
reporting period.
Deferred tax assets and deferred tax liabilities are
offset, where Company has a legally enforceable
right to set off the recognized amounts and where
it intends either to settle on a net basis, or to realize
the asset and settle the liability simultaneously.
Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realized.
3.9 Impairment3.9.1 Financial assets other than investment in
subsidiary
The Company recognizes loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss.
Loss allowance for trade receivables with no
significant financing component is measured at an
amount equal to lifetime ECL.
For all other financial assets, expected credit losses
are measured at an amount equal to the 12-month
ECL, unless there has been a significant increase in
credit risk from initial recognition in which case those
are measured at lifetime ECL.
The impairment loss allowance (or reversal)
recognised during the period is recognised as
income / expense in the statement of profit and loss.
3.9.2 Financial assets - investment in subsidiary
The Company assesses at each reporting date
whether there is an indication that an asset may
be impaired. Such indication include, though are
not limited to, significant or sustained decline in
revenues or earnings and material adverse changes
in the economic environment.
If any indication exists, the Company estimates the
asset's recoverable amount based on value in use.
To calculate value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
rates and the risk specific to the asset
Where the carrying amount of an asset exceeds its
value in use amount, the asset is considered impaired
and is written down to its recoverable amount. The
impairment loss is recognised in statement of profit
and loss.
3.9.3 Non-financial assets
Tangible and intangible assets
The Company assesses at each reporting date where
there is an indication that an asset may be impaired.
If any indication exists the Company estimates the
asset's recoverable amount.
An asset's recoverable amount is the higher of an
assets net selling price and its value in use. The
recoverable amount is determined for an individual
asset, unless the asset does not generate cash
inflows that are largely independent of those from
other assets or groups of assets.
Where the carrying amount of an asset exceeds
its recoverable amount, the asset is considered
impaired and is written down to its recoverable
amount. The impairment loss is recognised in the
statement of profit and loss.
In assessing value in use, the estimated future cash
flows are 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 asset.
In determining net selling price, recent market
transactions are taken into account, if available. If no
such transactions can be identified, an appropriate
valuation model is used.
3.9.4 Lease
Company as lessee
The Company's lease asset classes primarily consist
of leases for Office building. 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 asset, the
Company assesses whether: (i) the contract 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.
At the date of commencement of the lease, the
Company recognizes a right-of-use (ROU) asset
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases
with a term of 12 months or less (short-term leases)
and low value leases. For these short-term and low-
value leases, the Company recognizes the lease
payments as an operating expense on a straight-line
basis over the term of the lease.
The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior
to the commencement date of the lease plus any
initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated
depreciation and impairment losses.
ROU assets are depreciated from the commencement
date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset.
The lease liability is initially measured at amortized
cost at the present value of the future lease
payments. The lease payments are discounted using
the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rates
in the country of domicile of these leases.
Lease liability and ROU assets have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.
Advance lease payment made for the entire life of
the lease is amortized over a lease period.
Company as lessor
Operating lease
Lease income from operating leases where the
Company is a lessor is recognised in income on a
straight-line basis over the term of the relevant
lease. In case of modification of contractual terms,
the same is accounted as a new lease, considering
any prepaid or accrued lease payments relating to
the original lease as part of the lease payments for
the new lease.
3.10 Employee Benefits
All employee benefits payable wholly within twelve
months of rendering the service are classified as
short-term employee benefits. Benefits such as
salaries, wages etc. are recognised in the period in
which the employee renders the related service. A
liability is recognised for the amount expected to be
paid when there is a present legal or constructive
obligation to pay this amount as a result of past
service provided by the employee and the obligation
can be estimated reliably.
For defined benefit plans, the cost of providing
benefits is determined using the Projected Unit
Credit Method, with actuarial valuations being carried
out at each balance sheet date. Remeasurement,
comprising actuarial gains and losses, the effect
of the changes to the asset ceiling and the return
on plan assets (excluding interest), is reflected
immediately in the balance sheet with a charge or
credit recognised in other comprehensive income
in the period in which they occur. Past service
cost, both vested and unvested, is recognised
as an expense at the earlier of (a) when the plan
amendment or curtailment occurs; and (b) when
the entity recognises related restructuring costs or
termination benefits.
The retirement benefit obligations recognised in
the balance sheet represents the present value of
the defined benefit obligations reduced by the fair
value of scheme assets. Any asset resulting from this
calculation is limited to the present value of available
refunds and reductions in future contributions to
the scheme.
The Company provides benefits such as gratuity,
pension and provident fund to its employees which
are treated as defined benefit plans.
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