Terms and Rights Attached to Equity Shares
Equity shares have a par value of INR 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.
Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote per share.
Shares Reserved for Issue under Options
Information relating to ESOP plans of the company, including details of the options issued, exercised and lapsed during the financial year and options outstanding at the end of the reporting period, is set out in Note 25.
i) Cash Credit facilities are secured by hypothecation of Inventories & book debts of the company
ii) The Company was sanctioned a term loan of Rs 1000 lakhs during the year ended 31st March 2024.The first tranche of Rs.400 Lakhs was received during the year ended 31st March 2024 and second tranche of Rs 450 Lakhs was received during the year ended 31st March 2025. The Company has not availed the balance of the Term Loan. Term Loan is repayable in 46 installments. It carries an interest rate of Repo plus 3.5% p.a.with interest being reset at quarterly intervals and is secured by -
a) Primary Security: Hypothecation of fixed assets purchased using the term loan.
b) Collateral Security: Equitable Mortgage of Leasehold land situated at Baddi, Himachal Pradesh. The final instalment is payable in June 2028.
iii) The Company has been sanctioned second Term Loan of Rs 500 Lakhs during the year ended 31st March 2025. The loan has been disbursed in June 2025. The Loan is repayable in 60 monthly instalments. It carries an interest rate of Repo plus 3.5% p.a. with interest being reset at quarterly intervals and is secured by -
a) Primary Security: Hypothecation of fixed assets purchased using the term loan.
b) Collateral Security: Equitable Mortgage of Leashold land situated at Baddi, Himachal Pradesh. "
iv) There is no breach of Loan Agreements.
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 and IT infrastructure management services 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.
24 : Employee Benefit Plans
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 56.46 lakhs/- (Rs 57.04 lakhs) as on 31st March 2025)
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.
28: Warranty
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.
111 iai\i
(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 2026.
(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.
31 : Segment Reporting
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.
32 : Financial Instruments
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:
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. The Company manages its interest rate risk by having a mixed portfolio of fixed and variable rate loans and borrowings.
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 longterm 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.
38 : Additional disclosure pursuant to schedule III of Companies Act 2013
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 March 2025- Nil)
ii) The Company has not traded or invested funds in Crypto currency of Virtual currency (31st March 2025- 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 2025- 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 2025- 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 2025- 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 2025- 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 2025- 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:
(i) There are no investments made by the Company
(ii) There are no loan given by the Company and guarantees issued as at March 31,2026 (31st March 2025- 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 2025- 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 2025-Nil)
(xi) During the year, company has not revalued its Property, Plant and Equipment. (31st March 2025-Nil)
(xii) There are no intangible assets held under development as on Balance sheet date. (31st March 2025-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 2025-Nil)
|