(k) Provisions
Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that the Company will be required to settle
the obligation, and a reliable estimate can be made of the
amount of the obligation. If the effect of the time value of
money is material, provisions are determined by discounting
the expected future cash flows to net present value using
an appropriate pre-tax discount rate that reflects current
market assessments of the time value of money and, where
appropriate, the risks specific to the liability.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation
at the reporting date, taking into account the risks and
uncertainties surrounding the obligation. Where a provision
is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value
of those cash flows (when the effect of the time value of
money is material).
When some or all of the economic benefits required to settle
a provision are expected to be recovered from a third party,
a receivable is recognised as an asset if it is virtually certain
that reimbursement will be received and the amount of the
receivable can be measured reliably.
(l) Contingent Liabilities
A present obligation that arises from past events, where it is
either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made, is
disclosed as a contingent liability. Contingent liabilities are also
disclosed when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company.
Claims against the Company, where the possibility of any
outflow of resources in settlement is remote, are not disclosed
as contingent liabilities.
Contingent assets are not recognised in the Financial
Statements since this may result in the recognition of income
that may never be realised. However, when the realisation
of income is virtually certain, then the related asset is not a
contingent asset and is recognised.
(m) Financial Instruments
Financial assets and financial liabilities are recognised in
the Company's Balance Sheet when the Company becomes
a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured
at fair value, except for trade receivables that do not have
a significant financing component which are measured
at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or
deducted from the fair value of the 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.
(n) Financial assets
(i) On initial recognition, a financial assets is
classified as measured at
- Amortised Cost
- Fair value through profit and loss
(ii) A financial asset is measured at amortised cost if it meets
both of the following conditions and is not designated as
at Fair Value Through Profit or Loss (FVTPL):
- The asset is held within a business model
whose objective is to hold assets to collect
contractual flows; and
- The contractual terms of the financial asset give
rise on specific dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.
(iii) All financial assets not classified as measured at
amortised cost as described above are measured at
FVTPL. This includes all derivative financial assets.
On initial recognition, the Company may irrevocably
designate a financial asset that otherwise meet the
requirements to be measured at amortised cost as at
FVTPL if doing so eliminates or significantly reduces an
accounting mismatch that would otherwise arise.
All recognised financial assets are measured
subsequently in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.
Subsequent Measurement
All recognised financial assets are measured
subsequently in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.
Investments in equity instruments at FVTOCI
On initial recognition, the Company may make an
irrevocable election (on an instrument-by-instrument
basis) to designate investments in equity instruments
as at FVTOCI. Designation at FVTOCI is not permitted
if the equity investment is held for trading or if it is
contingent consideration recognised by an acquirer in a
business combination. Investments in equity instruments
at FVTOCI are initially measured at fair value plus
transaction costs. Subsequently, they are measured at
fair value with gains and losses arising from changes
in fair value recognised in other comprehensive income
and accumulated in a separate component of equity. The
cumulative gain or loss is not reclassified to statement
of profit and loss on disposal of the equity investments,
instead, it is transferred to retained earnings. Dividends
on these investments in equity instruments are
recognised in profit or loss in accordance with Ind AS 109,
unless the dividends clearly represent a recovery of part
of the cost of the investment. The Company designated
all investments in equity instruments that are not held
for trading as at FVTOCI on initial recognition.
Impairment of financial assets
The Company applies the expected credit loss model for
recognising impairment loss on financial assets that are
measured at amortised cost, trade receivables and other
contractual rights to receive cash or other financial asset.
The amount of expected credit losses is updated at
each reporting date to reflect changes in credit risk
since initial recognition of the respective financial
instrument. The Company always recognises lifetime
expected credit losses (ECL) for trade receivables. The
Company recognises lifetime ECL when there has been a
significant increase in credit risk since initial recognition.
However, if the credit risk on the financial instrument has
not increased significantly since initial recognition, the
Company measures the loss allowance for that financial
instrument at an amount equal to 12-month ECL.
Measurement of expected credit losses:
The impairment losses and reversals are recognised in
the statement of profit and loss.
Loss allowance for financial assets measured at
amortised cost are deducted from gross carrying
amount of the assets.
The gross carrying amount of Financial assets is written
off (either partially or in full) to the extent that there is
no realistic prospect of recovery.
Financial assets, other than those at FVTPL, are
assessed for indicators of impairment at the end of each
reporting period. In case of financial assets, the Company
follows the simplified approach permitted by Ind AS 109
- Financial Instruments - for recognition of impairment
loss allowance. The application of simplified approach
does not require the Company to track changes in
credit risk of trade receivable. The Company calculates
the expected credit losses on trade receivables using
a provision matrix on the basis of its historical credit
loss experience.
De-recognition of Financial Rssets:
The Company de-recognises a financial asset when the
contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially
all the risks and rewards of ownership of the asset
to another party. If the Company neither transfers
nor retains substantially all the risks and rewards of
ownership and continues to control the transferred
asset, the Company recognises its retained interest in
the asset and an associated liability for amounts it may
have to pay. If the Company retains substantially all the
risks and rewards of ownership of a transferred financial
asset, the Company continues to recognise the financial
asset and also recognises an associated liability.
On de-recognition of a financial asset, the difference
between the asset's carrying amount and the sum
of the consideration received and receivable and the
cumulative gain or loss that had been recognised in
Other Comprehensive Income and accumulated in other
equity is recognised in statement of profit and loss.
Cash and cash equivalents
Cash comprises cash on hand and demand deposits with
banks. Cash equivalents are short-term balances (with an
original maturity of three months or less from the date
of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
(o) Financial liabilities and equity instruments
Classification as Debt or Equity:
Debt or equity instruments issued by the Company, are
classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument.
Equity Instruments:
An equity instrument is any contract that evidences a residual
interest in the assets of the Company after deducting all of
its liabilities. Equity instruments issued by the Company are
recognised at the proceeds received, net of direct issue costs.
Financial Liabilities:
Financial liabilities that are not held-for-trading and are not
designated as at FVTPL are measured at amortised cost at the
end of subsequent accounting periods. The carrying amounts of
financial liabilities that are subsequently measured at amortised
cost are determined based on the effective interest method.
Interest expenses are included in the ‘Finance cost' line item.
The effective interest method is a method of calculating the
amortised cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected
life of the financial liability, or (where appropriate) a shorter
period, to the amortised cost of a financial liability.
Financial liabilities are classified, at initial recognition and
measured at amortising cost using effective interest method:
• Loans and borrowings
• Payables
All financial liabilities are recognised initially at fair value and in
the case of loans and borrowings and payables, are recognised
net of directly attributable transaction costs. The Company's
financial liabilities include trade and other payables, loans
and borrowings including bank overdrafts, financial guarantee
contracts and derivative financial instruments through the
expected life of the financial liability, or (where appropriate) a
shorter period, to the amortised cost of a financial liability.
De-recognition of Financial Liabilities:
The Company de-recognises financial liabilities when and only
when, the Company's obligations are discharged, cancelled or
have expired. The difference between the carrying amount of
the financial liability de-recognised and the consideration paid
and payable is recognised in statement of profit and loss.
(p) Offsetting of Financial Instruments:
Financial assets and financial liabilities are offset and the net
amount is reported in the attainment of balance sheet, if there
is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.
(q) Derivative financials instruments
The Company uses foreign currency forward contracts to
hedge its risks associated with foreign currency fluctuations
relating to certain firm commitments and highly probable
forecast transactions. The Company does not use derivative
financial instruments for speculative purposes.
Forward contracts are initially recognised at fair value on
the date the contract is entered into and are subsequently
remeasured at fair value at each reporting date. The resulting
gain or loss is recognised in the statement of profit and loss.
(r) Fair value measurement
Some of the Company's accounting policies or disclosures
require the measurement of fair value for both financial and
non-financial assets and liabilities.
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 time of measurement.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:
i. In the principal market for the asset or liability, or
ii. In the absence of a principal market, in the most
advantageous market for the asset or liability.
iii. The principal or the most advantageous market must be
accessible by the Company.
All assets and liabilities (for which fair value is measured or
disclosed in the financial statement) are categorised within
the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value
measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets
for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable other than quoted prices
included in Level 1.
Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement
is unobservable.
At each reporting date, management analyses the movements
in the values of assets and liabilities which are required to be
re-measured or re-assessed as per the Company's accounting
policies. For this analysis, the management verifies the
major inputs applied in the latest valuation by agreeing the
information in the valuation computation to contracts and
other relevant documents.
(s) Investments in subsidiaries are accounted at cost less
accumulated impairment loss, if any.
(t) Cash flow statement
Cash flows are reported using the indirect method, whereby
profit for the period is adjusted for the effects of transactions
of non-cash nature, any deferrals or accruals of operating
cash receipts or payments and items of income or expenses
associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the
Company are segregated based on the nature of transactions.
(u) Earnings per share
Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding
during the period.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.
Diluted earnings per share is computed by dividing the profit
after tax as adjusted for dividend, interest and other charges
to expense or income (net of any attributable taxes) relating to
the dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings
per share and the weighted average number of equity shares
which would have been issued on the conversion of all dilutive
potential equity shares.
Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit
per share from continuing operations. Potential dilutive equity
shares are deemed to be converted as at the beginning of
the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at average
market value of the outstanding shares. Dilutive potential
equity shares are determined independently for each period
presented. The number of equity shares and potentially
dilutive equity shares are adjusted for share splits / reverse
share splits and bonus shares, as appropriate.
(v) Dividend to shareholders
Final dividend distributed to Equity shareholders is recognised
in the period in which it is approved by the members of the
Company in its Annual General Meeting. Interim dividend is
recognised when approved by the Board of Directors at the
Board Meeting. Both final dividend and interim dividend are
recognised in the Statement of Changes in Equity.
(w) Borrowing Cost
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and
exchange differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the
interest cost. Borrowing costs, if any, directly attributable to
the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalized, if any. All other borrowing
costs are expensed in the period in which they occur.
(x) Segment Reporting
Operating segments are reported in a manner consistent with
the internal reporting provided to the Chief Operating Decision
Maker (CODM) of the Company. The CODM is responsible
for allocating resources and assessing performance of the
operating segments of the Company.
(y) Events after Reporting date
Where events occurring after the Balance Sheet date provide
evidence of conditions that existed at the end of the reporting
period, the impact of such events is adjusted within the
financial statement. Otherwise, events after the Balance
Sheet date of material size or nature are only disclosed.
(z) Shared based payments
Share-based payment transactions of the Company
Equity-settled share-based payments to employees and
others providing similar services are measured at the fair value
of the equity instruments at the grant date. The fair value
excludes the effect of non-market-based vesting conditions.
Details regarding the determination of the fair value of equity-
settled share-based transactions are set out in note 57.
The fair value determined at the grant date of the equity-
settled share-based payments is expensed on a straight¬
line basis over the vesting period, based on the Company's
estimate of the number of equity instruments that will
eventually vest. At each reporting date, the Company revises
its estimate of the number of equity instruments expected
to vest as a result of the effect of non-market-based vesting
conditions. The impact of the revision of the original estimates,
if any, is recognised in profit or loss such that the cumulative
expense reflects the revised estimate, with a corresponding
adjustment to reserves.
notes
1 ZNet Technologies Private Limited is a subsidiary (51%) of Rashi Peripherals Limited with effect from January 18, 2019. On June 17,
2025, Rashi Peripherals Limited executed a Share Purchase Agreement and Closing Memorandum to sell of its entire investment in
equity shares (51%) in Znet Technologies Private Limited. As per the terms of the Closing Memorandum, all rights and ownership were
transferred to the purchaser for a consideration of Rs. 20.00 millions. Accordingly, the Company derecognised the investment and
recorded a net loss of Rs 0.05 millions for the year ended March 31, 2026.
2 Refer note 46 for disclosure as required u/s 186(4) of the Companies Act, 2013.
3 The Company had measured the fair value of investments in equity shares of Blynk Marketing Private Limited ('Blynk') at Rs. 0 per
share in March 31, 2024 and it continues to remain the same as on March 31, 2026, on account of underperformance in operations of
Blynk; mainly relating to raising of funds and certain financial parameters.
1. Cash on hand includes balance EURO 55 and EURO 55 , equivalent to Rs. 0.01 millions and Rs. 0.01 millions for the year ended March
31, 2026 and March 31, 2025 respectively and USD 3,730 and USD 863, equivalent to Rs. 0.35 millions and Rs. 0.07 millions for the
year ended March 31, 2026 and March 31, 2025 respectively.
2. Includes Rs. 62.47 millions and Rs. 54.83 millions for the year ended March 31, 2026 and March 31, 2025 respectively held in SGD &
USD denominated bank accounts.
3. Includes balance of Rs. 16.00 millions and Rs. 21.77 millions for the year ended March 31, 2026 and March 31, 2025 respectively held
with Axis Bank Limited-Public Issue Account.
4. Includes balance of Rs. 4.39 millions and Rs. 57.99 millions for the year ended March 31, 2026 and March 31, 2025 respectively held
with IndusInd Bank Limited-Monitoring Account.
2. Terms/ rights attached to equity shares
The Company has only one class of shares referred to as equity shares having par value of Rs. 5 per share. Each holder of equity share
Is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.
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.
1 The Securities Premium reserves was created out of the issue of equity shares at premium. This reserve can be utilised as per the
provisions of the Companies Act, 2013.
2 The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purpose. As the general
reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items
included in the general reserve will not be reclassified subsequently to profit or loss.
3 The Retained Earnings represents accumulated earnings of the Company post distribution of dividends to the equity shareholders
in the respective years. This reserve can be utilized for distribution of dividend by the Company considering the requirements of the
Companies Act, 2013.
4 Other Comprehensive Income represents the cumulative gains and losses arising on the fair valuation of equity instruments designated
at FVTOCI and on remeasurement of defined benefits plan.
5 Share Options Outstanding Reserves represents a cumulative expense recognised for equity-settled share based payment transactions.
(1) Trade Payables are payables In respect of the amount due on account of goods purchased or services received In the normal
course of business.
(2) The above information pertaining to micro enterprises and small enterprises has been determined to the extent such parties have been
identified on the basis of the information available with the Company. This has been relied upon by the auditors. Refer Note 41 for
MSME disclosures.
(i) For provision for Gratuity (included as part of Employee benefits in note 30)
(ii) Payment for post employment benefits plan by the Company to Rashi Peripherals Private Limited Employee Gratuity Trust of Rs. 23.02
millions and Rs. 6.79 millions for the year ended March 31, 2026 and March 31, 2025 respectively.
The Company's obligation towards Gratuity is a Defined Benefit Plan and the details of actuarial valuation as at year ended
is given below:
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 Defined 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 Defined 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 Defined 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.
Significant risks and assumptions:
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. A fall in the discount rate generally increases the mark to market value of the assets depending on the
duration of asset.
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.
Investment Risk :The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference
to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan
deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.
Asset Liability Matching Risk : The plan faces the ALM risk as to the matching cashflow. Since the plan is invested in lines of Rule 101 of
Income Tax Rules, 1962, this generally reduces ALM risk.
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.
Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all
the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk.
notes
1. No Provision has been made for disputed claims against the Company not acknowledged as debts, as the management is hopeful of
successfully contesting the same in appeal.
2. Future cash outflows in respect of the above matters are determinable only on receipt of judgements/decisions pending at various
forums/authorities. The Company does not expect the outcome of the matters stated above to have material adverse impact on
the Company's financial condition, results of operation or cash flows. The Company doesn't envisage any likely reimbursement in
respect of the above.
Details of the summary of material accounting policies and methods adopted, including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognized, in respect of each class of financial assets and financial liabilities are disclosed
in the Statement of Profit and Loss. The fair values of financial assets and financial liabilities at the end of the reporting year approximate
the amounts as shown in the Balance Sheet.
These financial risk management policies are applied in order to mitigate potential adverse impact on the financial performance. The note
below explains how the Company's exposure to various risks, such as market risk (foreign exchange risk), credit risk, liquidity risk, interest
rate risk and capital risk are addressed/mitigated.
Market Risks
Foreign Exchange Risk
The Company enters into transactions denominated in foreign currencies. In order to mitigate risks arising on account of foreign currency
fluctuations, the Company has set policies with respect to foreign exchange risk management. The Company, wherever applicable have used
foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and
highly probable forecast transactions. Most of the transactions of the Company are in Indian rupees and transactions in foreign currencies
are evaluated from the perspective of hedging by a forward cover.
(i) Sensitivity analysis
The Company applies 5% (previous year 1%) as the sensitivity rate while ascertaining foreign currency exposure. Accordingly 5%
(previous year 1%) strengthening of Indian Rupees against all relevant uncovered foreign currency transactions would have impacted
profit before tax by Rs. 233.57 Millions and Rs. 37.76 Millions for the year ended March 31, 2026 and March 31, 2025 respectively.
Similarly for 5% (previous year 1%) weakening of Indian Rupees these transactions, there would be an equal and opposite impact on
the profit before tax.
Credit Risk Management
Credit risk is minimized through conservative credit policy by the Company. Credit insurance is also taken to mitigate the
credit risk. The Company sells to both small retailers generally resellers and large format retailers, giving them average credit
period of 30-90 days. The Company mitigates credit risk by strict receivable management procedures and policies. The
Company has a dedicated independent team to review credit and monitor collection of receivables on a pan India basis. As
per the Company's policy, interest on delayed payments is charged from customers at an average interest rate of 12%-18%.
During the previous year ended March 31, 2025, there was 12.94% of sales to one of the unrelated customer other than this the concentration
of credit risk is limited due to the customer base being large and unrelated. Further, the Company constantly evaluates the quality of trade
receivable and provides allowance towards impairment of trade receivables.
Liquidity Risk Management
The Company has built an appropriate liquidity risk management framework for its short, medium and long-term funding and liquidity
requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and financial liabilities.
Interest Rate Risk Management
Interest rate risk is the risk that the fair value or future cash flows of the financial instruments will fluctuate because of changes in market
interest rates. The Company borrow funds at floating interest rates.The Company applies 1% as the sensitivity rate while ascertaining
interest rate exposure. Accordingly 1% increase in interest rate would have impacted profit before tax by Rs. 95.86 Millions and Rs. 85.48
Millions for the year ended March 31, 2026 and March 31, 2025 respectively. Similarly for 1% decrease of interest rates, there would be an
equal and opposite impact on the profit before tax.
Capital Risk Management
The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximizing the return to
shareholder through the optimisation of the debt and equity balance.
The capital structure of the Company consists of debt, represents the borrowings net of cash and bank balances as disclosed in the
respective notes above and total equity of the Company comprising issued share capital and other equity attributable to the shareholders,
as disclosed in the statement of changes in equity. The gearing ratio at the end of the year is as below:
39 Operating Segments
Reportable segments include components of an enterprise about which separate Financial Information Is available which Is evaluated
regularly by the Chief Operating Decision Maker (the CODM) in deciding how to allocate resources and in assessing performance. The
Company operates in a single operating segment namely Computer Systems , Software & Peripherals, Mobiles. The Board of Directors is
the CODM of the Company and makes operating decisions, assesses financial performance and allocates resources based upon discrete
financial information. Since the Company operate in a single operating segment, separate segment reporting has not been made under
Indian Accounting Standard (Ind- AS 108) -Operating Segment. Further, the operation of the Company comprises of geographical segment
as disclosed in note 26.
1. The above information has been determined to the extent such parties have been identified on the basis of the information available
with the Company. This has been relied upon by the auditors.
2. There are dues of Micro, Small and Medium Enterprises exceeding 45 days from the date of invoice and hence, interest is payable for
the year ended March 31, 2026 and March 31, 2025.
42 Corporate Social Responsibility Expenses (CSR)
1 CSR amount required to be spent as per Sec 135 of the Companies Act, 2013, read with schedule VII thereof by the Company during
the year is Rs. 39.59 millions and Rs. 38.38 millions for the year ended March 31, 2026 and March 31, 2025.
1 Current Ratio is computed by dividing Current Assets by Current liabilities.
2 Debt Equity Ratio is computed by dividing Borrowings by Total Equity.
3 Debt Service Coverage Ratio is computed by dividing earnings available for debt service (profit after tax finance cost depreciation
and amortisation expenses) by debt service (Interest expense lease payments principal repayments of debt (current borrowings)).
4 Return on Equity is computed by dividing profit after tax by average shareholders' equity.
5 Inventory turnover ratio is computed by dividing Cost of goods sold by Average Stock {(Opening Closing stock)/2}.
6 Trade receivables turnover ratio is computed by dividing revenue from operations by average trade receivables.
7 Trade Payables turnover ratio is computed by dividing total purchases by average trade payables.
8 Net capital turnover ratio is computed by dividing revenue from operations by working capital (current assets less current liabilities).
9 Net profit ratio is computed by dividing profit after tax by revenue from operations.
10 Return on capital employed is computed by dividing Earning before Interest and Tax by capital employed. Capital Employed= Tangible
Net Worth Total Debt Deferred Tax Liability
11 Return on investment is computed by dividing profit after tax by average shareholder's equity.
44 Rdditional Regulatory Information required by Schedule III to the Companies Rct, 2013
1 The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against
the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (Act No. 45 of 1988) and Rules
made thereunder.
2 The Company has not been declared wilful defaulter by any bank or financial institution or other lender or Government or any
Government Authority from where Company has availed banking facilities.
3 The Company has complied with the requirement with respect to number of layers prescribed under section 2(87) of the Companies
Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017
4 There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as
search or survey), that has not been recorded in the books of account.
5 The Company has not traded or invested in crypto currency or virtual currency during year ended March 31, 2026 and March 31, 2025
6 The Company does not have any charges or satisfaction of charge which is yet to be registered with Registrar of Companies beyond
the statutory period.
45 The Accounts of the Company have been prepared on going concern basis. The Board of Directors are of the Opinion that the Current
Assets, Loans and Advances have realisation value of an amount equivalent to their stated carrying values.
46 (A) Discloure u/s 186(4) of the Companies Act, 2013
There are no loans given/ investments made during the year ended March 31, 2026 by the Company.
(B) As per Regulation 34(3) read with Para A of Schedule V of the SEBI (Listing Obligations and Disclosures Requirements)
Regulation, 2015 :
The dividend declared and paid by the Company during the year is in accordance with section 123 of the Act, as applicable.
*Out of the total dividend paid by the Company during the year ended March 31, 2026 and March 31, 2025, Rs. 83.89 millions and Rs. 41.78 millions respectively is paid
to key managerial personnel and relatives of key managerial personnel.
48 The Company has not entered into any scheme of arrangement which has an accounting impact for the year ended March 31, 2026
and March 31, 2025.
49 Utilisation of borrowed funds and share premium
(i) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries)
with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries) or;
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
50 During the year ended March 31, 2024 the Company completed IPO comprising of fresh issue of 1,92,92,604 equity shares.
The Company has received an amount of Rs. 5,541.41 millions (net of IPO expenses of Rs. 458.59 millions including taxes) from
proceeds out of fresh issue of equity shares. The utilisation of net IPO proceeds is summarised below.
51 The Board of Directors of the Company have recommended dividend of Rs. 2 per fully paid up equity share of Rs.5/- each for the
financial year 2025-26 subject to approval of members of the Company at the forthcoming Annual General Meeting. The dividend
declared by the Company during the year is in accordance with section 123 of the Act, as applicable.
52 The Company has not entered into any agreements for loans or advances to the directors, promoters, KMP's and related parties where
either loans and advances repayable on demand or without specifying any terms of period of payment.
The Company does not have any transactions with companies which are struck off under Section 248 of the Companies Act, 2013 or Section
560 of the Companies Act, 1956.
54 The quarterly returns comprising stock and book debts statements filed by the Company with banks are in agreement with the books
of accounts of the Company of the respective period.
55 The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes (the
new labour codes) on November 21, 2025. Accordingly, the Company has assessed the impact of these changes and, based on certain
estimates and an actuarial valuation, has made an incremental provision of Rs. 41.46 millions under employee benefit expenses in
the standalone financial statements for the year ended March 31, 2026, considering information available. The Company continues to
monitor the finalisation of the Central and State rules and clarifications issued by the Government on the new labour codes and will
recognise the impact of changes in the estimates in that period, as needed.
56 Share Based Payments
a) Equity settled share option plan
Rashi Peripherals Employee Stock Option Scheme, 2022 covering grant of 1,620,043 options was approved by the shareholders
through Postal Ballot on June 30, 2025. In accordance with the terms of the plan, as approved by shareholders at a previous annual
general meeting, employees with more than 5 years' service with the Company may be granted options to purchase equity shares.
Each option comprises one underlying equity share. Options to be granted under the Plan shall vest not earlier than one year but not
later than a maximum of three years from the date of grant of such options.
The options vest in tranches over 3 years at the rate of 33% , 33% and 34% respectively, with the first Vesting Date being one year
from the Grant Date. If the options remain unexercised after a period of 30 days from the date of vesting, the options expire. Options
are forfeited if the employee leaves the Company before the options vest. The Company has accounted for stock options using the fair
value method in accordance with Ind AS 102. The details of shares outstanding are as follows:
(b) Fair value of share options granted
The fair value of the stock options has been estimated using Binomial model which takes into account as of grant date the exercise
price and expected life of the option, the current market price of underlying stock and its expected volatility based on historical
volatility, expected dividends on stock and the risk free interest rate for the expected term of the option.
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