"Provisions are recognized in the balance sheet when the Company has a present obligation (legal or
constructive) as a result of a past event, which is expected to result in an outflow of resources embodying
economic benefits which can be reliably estimated. Each provision is based on the best estimate of the
expenditure required to settle the present obligation at the balance sheet date. When appropriate, provisions
are measured on a discounted basis.
Constructive obligation is an obligation that derives from a Company's actions where:
(a) by an established pattern of past practice, published policies or a sufficiently specific current
statement, the Company has indicated to other parties that it will accept certain responsibilities; and
(b) as a result, the Company has created a valid expectation on the part of those other parties that it will
discharge those responsibilities.
A.18. Leases
The Company's lease asset classes primarily consist of leases for land and buildings. The Company, at the
inception of a contract, assesses whether the contract is a lease or not lease. A contract is, or contains, a lease if
the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration.
This policy has been applied to contracts existing and entered into on or after April 1, 2019.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received.The right-of-use asset is subsequently depreciated using
the straight-line method from the commencement date to the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the Company's long term borrowing rate. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in
the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the
Company changes its assessment of whether it will exercise a purchase, extension or termination option. When
the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of
the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero. The Company has elected not to recognise right-of-use assets and lease liabilities for short¬
term leases that have a lease term of 12 months or less and leases of low-value assets (assets of less than INR
5,000 in value). The Company recognises the lease payments associated with these leases as an expense over
the lease term.
A.19. Cash and Cash Equivalents
Cash and cash equivalents include cash in hand, demand deposits with bank, and other short term highly liquid
investments, with original maturities of 3 months or less.
Cash flow Statement: Cash flows are reported using the indirect method, whereby profit for the period is adjusted
for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash
flows from operating, investing and financing activities are segregated.
Performance Obligations :
a) The performance obligation is satisfied by transferring the promised good or service to a customer and the
customer obtains controls over it.
b) The Company payment terms range from advance to 60 days.
c) The Company earns revenue primarily from Managed Printing Solutions and Services, Manufacturing and
Distribution of Retail Billing Products as well as multi-functional printers and providing Digital Services like
faciliation of GST return filing etc. to both enterprise and retail customers, across India.
d) The Company generally offers Standard warranties of 3 months to 12 months for its products sold.
e) The Company has applied the practical expedient given in Ind AS 115 available for performance obligation
which is part of contract that has an original expected duration of one year or less with regard to disclosure of
remaining performance obligation.
The Company provides to its employees following retirement benefits:
i) Gratuity
ii) Leave Accrual
Leave Accrual: The Company allows accumulation / encashment of leave. Such accumulation can be utilized
by obtaining leave in the subsequent period of employment or encashment at the time of separation. The
obligation as on the balance sheet date is provided on the basis of actuarial valuation and is Rs 57.04 Lakhs (Rs
55.82 Lakhs as on 31st March 2024)
Gratuity: The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable
on retirement/termination is the employees last drawn basic salary per month computed proportionately for
15 days salary for each completed year of service. The company accounts for gratuity benefits payable in the
future based on the actuarial valuation and the company has taken out a policy with LIC of India in this regard
to mitigate actuarial and liquidity risks.
The following table sets out the amounts recognised in the financial statements for Gratuity
The Company generally offers 3 months to 12 months warranties for its products. Management estimates the
related provision for future warranty claims based on historical warranty claim information, as well as recent
trends that might suggest that past cost information may differ from future claims. Provision is made for
estimated warranty claims in respect of products sold which are still under warranty at the end of the reporting
period.
(ii) The Company is contesting claims under erstwhile Service Tax Law before Appellate authorities. The
Company has disclosed these claims as contingent liabilities as it not practicable to assess the outcome
of the proceedings. The company has made adequate provisions for all ascertained liabilities and the
contingent claims does not have any adverse impact on the financial statement as at 31st March 2025.
(iii) The E-Waste (Management) Rules 2022 and the erstwhile E-Waste (Management) Rules 2016 requires
the Company to fulfill the Extended Producer Responsibility(EPR) targets which are measured based on sales
made in the preceding years, if it is participant in the market during a financial year. Thus, participation in
the market in a year constitutes the obligation event. The Rules permit the Company to purchase extended
producer responsibility certificate from registered recyclers for the purpose of meeting the EPR targets and it is
not practical for the company to estimate the timing of cash outflows, if any, in respect of such purchases in the
future.
For management purposes, the Company is organised into business units based on its products and
services and has two reportable segments, as follows:
a. Partners business segment which is into distribution of traded and manufactured products and
allied services through the Channel Partners/Dealers.
b. Enterprise business segment which serves the Enterprise customers for all their workplace
productivity enhancing products and services.
This section gives an overview of the significance of financial instruments for the Company and provides additional
information on balance sheet terms that contain financial instruments.
The details of material accounting policies, including the criteria for recognition, the basis of measurement and
the basis on which income and expenses are recognised, in respect of each class of financial asset, financial
liability and equity instrument is disclosed in Note 1 to the financial statements.
(i) Classification of Financial Assets and Liabilities
All financial assets and financial liabilities are valued at amortised cost.
(ii) Fair Value Heirarchy
There are no financial assets or liabilities of the Company, which, after their initial recognition, have been fair
valued either during the year or in the previous year.
(iii) Financial Risk Management Policies and Objectives
The Company, in the course of its business, is exposed to a variety of financial risks, viz., market risk, credit risk and
liquidity risk which can adversely impact the financial performance. The Company's endeavour is to foresee the
unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.
The Company has a risk management policy that not only covers the foreign exchange risk but also other
risks such as interest rate risk and credit risk which are associated with financial assets and liabilities.
A. Market Risk
Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result
from a change in the value of financial instrument. The value of a financial instrument may change as a result of
changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market
changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
B. Foreign currency exchange rate risk:
The fluctuations in foreign currency exchange rate may have a potential impact on the statement of profit and loss
and equity. This arises from transactions entered in foreign currency and assets/liabilities which are denominated
in a currency other than the functional currency of the Company.
The Company imports raw materials, traded goods, consumables etc and such transactions are denominated in
US Dollars. The Company does not take major exposure in any other foreign currency. The Company also exports
goods which are billed in US dollars.The Company has a hedging policy approved and reviewed by the Board of
Directors to mitigate its risks. As part of the hedging policy, the Company concludes forward contracts at regular
intervals to mitigate the risk. Details of foreign currency exposure in USD are as follows:
C. Interest Rate Risk Management:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates
primarily to the Company's long term debt obligations with floating interest rates.
C.1 Interest Rate Sensitivity Analysis
The sensitivity analysis below have been determined based on the exposure to interest rates for both derivatives
and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is
prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding
for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to
key management personnel and represents management's assessment of the reasonably possible change in
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inteiest iates.
D. Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established
an appropriate liquidity risk management framework for the management of the Company's short-, medium-
and long-term funding and liquidity management 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 by matching the maturity profiles of financial assets and liabilities.
E. Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the
contractual terms or obligations. Credit risk covers both the direct risk of default and the risk of deterioration
of creditworthiness as well as concentration risks.Trade receivables constitute the financial instruments that
are exposed to credit risk. The Company's policy is to deal only with creditworthy counterparts. The Company
management considers that all the financial assets that are not impaired for each of the reporting dates under
review are of good credit quality, including those that are past due. None of the Company financial assets are
secured by collateral or other credit enhancements.
The Company's exposure to credit risk is limited to the carrying amount of financial assets recognised at the
balance sheet date.
The Company's capital management is intended to maximise the return to shareholders for meeting
the long-term and short-term goals of the Company through the optimization of the debt and equity
balance.
The Company determines the amount of capital required on the basis of annual and long-term
operating plans and strategic investment plans. The funding requirements are met through
equity and long-term/short-term borrowings. The Company monitors the capital structure on the
basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
For the purpose of capital management, capital includes issued equity capital, securities
premium and all other reserves attributable to the equity shareholders of the Company. Net
debt includes all long and short-term borrowings as reduced by cash and cash equivalents.
The following table summarises the capital of the Company:
Dividends proposed or declared after the date of balance sheet but before the financial statements
have been approved by the Board of Directors for issue are not recognised as liability on the date of
the balance sheet.
The Board of Directors have recommended final dividend of Rs0.50 per equity share for the financial
year ended on 31st March 2025, subject to the approval of the shareholders in the ensuing Annual
General Meeting of the Company. (Previous year dividend: Rs 0.50 per equity share)
i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property(31st March2024-Nil)
ii) The Company has not traded or invested funds in Crypto currency of Virtual currency (31st March 2024-Nil)
iii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), 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 (31st March 2024-Nil)
iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities(Funding
Party) with the understating (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 (31st March 2024-Nil)
v) The Company has not been declared wilful defaulter by any bank or financial institution (as defined under
the Act ) or consortium thereof, in accordance wit the guidelines on wilful defaulters issued by the Reserve Bank
of India. (31st March 2024- Nil)
vi) The Company does not have any such transaction which is not recorded in books of account that has been
surrendered or disclosed as income during the year in the tax assessments (such as, search or survey or any
other relevant provisions) under Income Tax Act, 1961. (31st March 2024-Nil)
vii) The Company is in compliance with the requirement of Section 2(87) of the Companies Act, 2013 read with
the Companies (Restriction on number of Layers) Rules, 2017.There are no such holdings or investments made
by company which is related to the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017. (31st March 2024-Nil)
viii) Disclosure as per section 186 of Companies Act 2013: The details of loans, guarantees and investments
under section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers)
Rules, 2014 are as follows:
(a) There are no investments made by the Company
(b) There are no loan given by the Company and guarantees issued as at March 31, 2025 (31st March 2024-Nil)
(ix) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period (31st March 2024- Nil)
(x) There are no immovable property which are held in the name of promoter, director or relative of promoter/
director or employee of promoter/director.(31st March 2024-Nil)
(xi) During the year, company has not revalued its Property, Plant and Equipment. (31st March 2024-Nil)
(xii) There are no intangible assets held under development as on Balance sheet date. (31st March 2024-Nil)
(xiii) There are no Loans or Advances granted to promoters, directors, KMPs and related parties either severally
or jointly with any other person which are either of repayable on demand or without specifying any terms or
period of repayment. (31st March 2024-Nil)
As per Section 135 of the Companies Act 2013, a company meeting the threshold for applicability
is required to spend atleast two percent of the average net profits of the company earned during
the three immediately preceding financial years as per the Corporate Social Responsibility Policy
of the Company. The areas of CSR activities are eradicating hunger, promoting education, art and
culture, healthcare, destitute care and rehabilitation, ensuring environmental sustainability, disaster
management and rural development projects.
See Accompanying Notes to the Financial For and on behalf of the Board of Directors of
Statements WeP Solutions Limited
As per our report of even date attached
For Guru & Jana Shankar Jaganathan Ashok Tripathy
Chartered Accountants Director Managing Director & CEO
ICAI Firm Registration No.006826S DIN:02121024 DIN:09564236
Heena Kauser A P S. Pradeep Chandralika Sharma
Partner Chief Financial Officer Company Secretary
Membership No. : 219971
UDIN:25219971BMMHHL6714
Place: Bengaluru Place: Bengaluru
Date : 17th May 2025 Date : 17th May 2025
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