Building with a carrying amount of '1,093 Lakhs (Previous year: '1,149 Lakhs) are subject to first charge to secure bank loan. The same property is provided on cancellable lease to one of its subsidiary as at 31st March, 2022.

Fair value of investment properties as at year-end 31st March, 2022 was determined based on valuation carried by external independent property valuer, having appropriate recognised professional qualifications which was ' 3,175 Lakhs (Previous Year '2,966 Lakhs). During the year, part of the assets which were transferred to asset held for sale in previous year are sold at sale consideration of ' 7,000 Lakhs as per arrangement made with one of the related parties (also refer note 22.1).

The Company has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements and there are no restriction on remittance of income and proceed on disposal (except restriction over disposal of investment property as disclosed in note 6.2 above).

9.2 Financial guarantees are issued in favour of the banks against loan taken by subsidiaries. The amount of guarantee is ' 5,650 Lakhs (Previous Year ' 5,650 Lakhs). Fair value of such guarantee amount is included to investment disclosed above amounting to ' 229 Lakhs (Previous year: ' 221 Lakhs) and ' 175 Lakhs (Previous year: ' 155 Lakhs) for Navneet Futuretech Limited and Indiannica Learning Private Limited respectively. (Refer footnote (ii) of note 58).

9.3 Impairment test for investments and loan to Navneet Futuretech Limited & Indiannica Learning Private Limited: The Company has made long-term investments into these subsidiaries. These companies have incurred losses during the year and previous years Considering the same, detail impairment test has been carried out by the Management. Disclosure in regards to impairment tests carried in regards to these subsidiaries are as under:

a) Impairment test for investment into ‘Indiannica Learning Private Limited'

During the year, the impairment test carried out by the management including the business outlook, basis of estimates, valuation technique (fair value report obtained from independent chartered accountant from time to time), appropriateness & reasonableness of assumptions, actual performance as against budget and various other parameters with the management of the subsidiary Company, and based on which, the Company has recognised impairment loss of ' 2, 233 Lakhs (Previous year: ' 237 Lakhs). This loss is charged to the Statement of Profit & Loss under ‘Other Expenses'. Also refer note 41.

b) Impairment test for investment in ‘Navneet Futuretech Limited'

Valuation of equity share investment into this subsidiary Company has been carried out by the management (also fair value report was obtained from independent chartered accountant during the previous year ended 31st March, 2021) based on future profitability and business prospects projected in detailed projections provided by Management of the subsidiary Company, and based on which, the Company has recognised impairment loss of ' Nil (Previous year: ' 153 Lakhs). This loss is charged to the Statement of Profit & Loss under ‘Other Expenses'. Also refer note 41.

c) Key assumptions used for value in use calculations: i) Discount rate

Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation of each CGU is derived from its Weighted Average Cost of Capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Company's investors. The cost of debt is based on the interest-bearing borrowings of the Company. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax discount rate.

ii) Growth rate estimate

Growth rate is based on the estimates of growth in business expected by the Management of the Company after taking into account external / industry growth, customer feedback etc.

Management of the Company has performed sensitivity analysis on the above key assumptions to determine value in use.

9.4 The Company has purchased / acquired 100% equity share capital of the ‘Navneet Tech Ventures Private Limited' (i.e.

10,000 equity shares of ' 10 each, fully paid up) at face value from existing shareholders during the year ended 31st March 2022, accordingly it had become wholly owned subsidiary of the Company with effect from 29th June 2021. The Company has invested in 56,50,004 equity shares at face value amounting to ' 565 Lakhs of ' 10 each, fully paid up during the year ended 31st March 2022. Further, the Company had invested in 0% fully and compulsorily convertible debentures (FCCDs) amounting to ' 2,478 Lakhs at face value of ' 10 each which shall be converted into equal number of equity share of the face value of ' 10 of the said subsidiary company during the year ended 31st March 2022. During the year ended 31st March 2022, there was a change in terms of issue of these 0% FCCDs, which were converted into 0% fully optionally convertible debentures (FOCDs). Subsequent to the change, 58,57,356 FOCDs were redeemed at ' 10 each. This investments are for long-term and strategic in nature. In the opinion of management, no impairment provision in the investment value is required as at 31st March, 2022 based on the estimate of future profitability and business prospects.

9.5 Refer note 66 for information on principal place of business and the Company's ownership interest in the above Subsidiaries.

9.6 The Company holds 93% of voting rights and equivalent share in profit / loss with respect to the investment made in ‘Navneet Learning LLP' (subsidiary entity) in accordance with LLP agreement and the underlying value of the assets against this investment is higher as compared to investments made.

9.7 During the earlier years, the Company had invested 4,90,00,000 in Optionally Convertible Preference Shares (OCPS) of ' 10 each aggregating to ' 4,900 Lakhs in its subsidiary Company ‘Indiannica Learning Private Limited' at face value. The OCPSs carries 0% coupon rate. The Subsidiary Company has an option to convert OCPS into same number of Equity shares of the Company of ' 10 each (being face value of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company, they shall be redeemed at par in full not later than 20 years from the date of allotment.

9.8 During the year, the Company has invested in 4,37,50,000 (Previous year 2,30,00,000) Optionally Convertible Preference Shares (OCPS) of ' 10 each aggregating to ' 4,375 Lakhs (Previous year ' 2,300 Lakhs) in its subsidiary Company ‘Navneet Futuretech Limited' at face value. The OCPSs carries 0% coupon rate. The subsidiary has an option to convert OCPS into 1.103 Equity shares of the Company of ' 10 each (being face value of the shares) at any time after allotment date but before end of 20 years. In case OCPS are not converted by the Subsidiary Company, they shall be redeemed at par in full not later than 20 years from the date of allotment.

9.9 As per Ind AS 109 ‘Financial Instruments', at initial recognition, the Company had chosen to designate investment in Career Point Limited as ‘Fair Value through Profit and Loss'. Career Point Limited shares are listed on National Stock Exchange and Bombay Stock Exchange.

9.10 In the previous year, as per pledge arrangement entered into with the party against amount recoverable of ' 179 Lakhs (Previous year '195 Lakhs) (disclosed under ‘Other Non Current Assets' as advance from suppliers in note 14), pledge is invoked by the Company and accordingly shares of ‘Shrenik Limited' reflecting in demat account but not reflecting in investment schedule. Further, mark to market gain on such shares is also not accounted as the Company does not have contractual right to recover amount in excess to recoverable amount.

10.1 The above amount includes ' 1,459 Lakhs (Previous year : ' 1,459 Lakhs) from one party against which Company has filed a legal case with Honourable High Court of Mumbai. As per the interim order, the Company possesses the property deed of an immovable property for recovery of the due, which is adequate to cover loan amount. The Company expects the matter to be favourably settled in its favour. Considering the interim order of the Honourable High Court of Mumbai and the possession of the deed of the property, loan against the said property is considered secured.

12.1 Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences.

Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of: (a) deductible temporary differences; (b) the carry forward of unused tax losses; and (c) the carry forward of unused tax credits (Refer note 54 for reconciliation between the provision of income tax of the Company and amounts computed by applying the Indian statutory income tax rate to profit before taxes).

14.1 These advances to suppliers are secured by equity shares of the party. During the year, the Company has invoked its right on securities pledged by this party from whom recoverable amount as at year-end was ' 179 Lakhs (Previous year '195 Lakhs). As per the terms of pledge agreement, any consideration in excess of amount recoverable from the party shall be refunded back. Accordingly, market value of shares invoked in excess of amount recoverable is not accounted. Also refer note 9.1.

15.1 During the year, ' 454 Lakhs (Previous year ' 339 Lakhs) was recognised as an expense for inventories.

15.2 Inventories are subject to first charge to secure bank loan.

15.3 Inventory amount disclosed above is netted off amount after considering impact of provision for slow moving inventories of ' 287 Lakhs (Previous year: ' 317 Lakhs).

16.1 Trade receivables are subject to first charge to secure bank loan.

16.2 Trade receivables are generally due between 30 to 90 days. The Company's term includes charging of interest for delayed payment beyond agreed credit days. However, the Company charges interest after considering the historical trend, business prospects, reason for delay, market conditions etc.

16.3 Credit risk is managed at the operational segment level (i.e. publication and stationery). The credit limit and credit period are fixed for each customer after evaluating the financial position, past performance, business opportunities, credit references etc. The credit limit and the credit period are reviewed regularly at periodical intervals.

16.4 As per Memorandum of Understanding with one of the party, a sum of ' 286 Lakhs (Previous year: ' Nil) is secured by mortgage of immovable property.

18.1 There is no amount due to Investor Education & Protection Fund as on 31st March, 2022.

18.2 Bank deposit includes interest accrued but not due amounting to ' 9 Lakhs (Previous year: ' 8 Lakhs) and this deposit is under lien for tender deposit given to a customer.

18.3 Other bank balances represent restricted deposits (along-with accrued interest thereon) under lien placed with sales tax authorities.

19.1 The loans and advances given to various parties are for commercial purpose and same is repayable on demand.

19.2 The above amount includes ' 55 Lakhs from one party against which Company has filed a legal case in the court of learned Metropoltian Magistrate's Court, Mazgoan, Mumbai.

20.1 Gratuity recoverable from Employee's Gratuity Fund maintained with Life Insurance Corporation represents gratuity amount paid to employees directly during the year on behalf such fund.

20.2 Refund receivable from government authority includes GST refunds receivables from government authorities which are expected to be realised within 12 months. Accordingly, the same is grouped as current financial assets. Out of which, subsequent to year end, the Company has received refund of '16 Lakhs (Previous year: ' 271 Lakhs)

20.3 As the Company is rightfully entitled to receive export incentives, the same is classified as financial asset in accordance with ITFG clarification issued by the Institute of Chartered Accountants of India.

23.2 Terms / Rights Attached to Equity Shares

The Company has only one class of equity shares having a par face value of ' 2/- per share. Each holder of equity shares is entitled to one vote per share and all rank pari passu. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the equity shares held by the shareholders.

26.1 Secured working capital demand loan includes interest accrued but not due amounting to ' # (Previous year: ' Nil). Interest rate for secured rupee loan is ranging from 4.35% to 4.75%. Subsequent to the year end, this loan has been fully repaid.

26.2 As at year end, commercial papers (unsecured) amounts to ' 6,000 Lakhs (Previous year: ' NIL). Commercial papers amounting to ' 7,500 Lakhs (Previous year: ' 10,000 Lakhs) were issued and fully repaid during the year carrying interest rates ranging from 3.68% to 3.72% (Previous year: 5.74% to 6.45%). These Commercial papers were listed on the National Stock Exchange.

26.4 The Company has not advanced any funds or loaned or invested by the Company to or in any other person(s) or entities, including foreign entities ("Intermediaries"), with the understanding that the intermediary shall whether directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of ultimate beneficiaries.

The Company has not received any funds from any person(s) or entities including foreign entities ("Funding Parties") with the understanding that such Company shall whether, 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 provide guarantee, security or the like on behalf of the ultimate beneficiaries.

33.1 Provision for Sales Returns:

The above amount is net of provision made for sales return amounting to ' 582 Lakhs (Previous year ' 488 Lakhs). Also

refer note 51 (a) and note 30.

33.2 Disclosures of Ind AS 115:

(a) For accounting policy of revenue recognition, refer note 2.2 (k).

(b) Contracts with customer and significant judgement in applying the standard

i) The Company's operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The Company applies the guidance provided in Ind AS 115 ‘Revenue from contracts with customer' for determining the timing of recognition of revenue.

ii) For details of revenue recognised from contracts with customers, refer note 33 above.

iii) There are no contract assets arising from the Company's contract with customers.

(c) Disaggregation of revenue

i) For disaggregation of revenue, refer break-up given in note 33 above and note 59 (B).

ii) Refer note 59 (A) (iii) for details regarding customer concentration that represents 10% or more of the Company's total revenue during the year ended 31st March, 2022 and 31st March, 2021.

(d) Performance obligation

i) For timing of satisfaction of its performance obligations, refer note 2.2(k) of significant accounting policies of the Company.

ii) Unsatisfied (or partially satisfied) performance obligations are due to unexpired contract period in cases of contract where exclusive license is granted to translate, print, publish and sale the translated book in defined territory. The aggregate value of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is ' Nil (Previous year: ' Nil). Aggregate value of transaction with unsatisfied performance obligation was ' Nil (Previous year: ' Nil) which is fully recognised as revenue in the current year upon fulfilment of obligations.

33.5 The Company receives government assistance in the form of MEIS license / duty drawback, which are issued to eligible exporters. Above revenue includes MEIS, DFIA, RODTEP as applicable and duty drawback income of ' 1,160 Lakhs (Previous year: ' 1,280 Lakhs). Out of the revenue recognised, '734 Lakhs (Previous year: ' 1,019 Lakhs) will be received from government upon receipt of balance amount from customer and fulfilment of other procedural formalities.

41.1 As expense-wise breakup in respect of input credit reversals is not readily available, such reversal are grouped under Sales Tax / GST expenses.

41.2 Other expenses do not include any item of expenditure which is exceeding one percent of the revenue from operations or ' 10 Lakhs, whichever is higher, in addition to the consideration of ‘materiality'.

42 Exceptional items:

Exceptional items represents:

a) ' 6,813 Lakhs towards profit on sale of property

b) ' 2,233 Lakhs towards provision for impairment of investment in ‘Indiannica Learning Private Limited' (Wholly owned subsidiary) driven primarily by the losses incurred during the period, uncertainties and continuous delays in re-opening of schools which has affected the performance of the Company.

43 Contingent liabilities:

(a) Tax matters:

i) For disputed Income tax matters ' 494 Lakhs and (Previous year ' 455 Lakhs) against which amount provided in books is ' 489 Lakhs (Previous year ' 449 Lakhs) and amount paid under protest is ' 418 Lakhs (Previous year ' 412 Lakhs) (Refer below note).

Income tax demands mainly include the appeals filed by the Company before various departmental appellate authorities / High Courts against the disallowances made by income tax authorities of certain deductions / expenses claimed. Pending final decisions, the Company has deposited amounts under protest with Income Tax Authorities.

ii) For disputed sales tax matters ' 2,269 Lakhs (Previous Year ' 2,307 Lakhs) against which amount paid under protest is ' 101 Lakhs (Previous Year: ' 90 Lakhs). (Refer below note)

Sales Tax demands have been mainly raised on account of dispute on rate of certain products, non submission of statutory declarations etc. Pending final decisions, the Company has deposited amounts under protest with Sales Tax Department. Also refer note 41.1.

iii) For disputed GST matters ' 3 Lakhs (Previous Year ' 3 Lakhs) against which amount paid under protest is ' # (Previous year: ' #) (Refer below note)

GST demand have been mainly raised on account of detention of vehicle by an authority. Pending final decisions, the Company has deposited amounts under protest with GST Department. Also refer note 41.1.

Note: Future cash outflows in respect of matters considered disputed are determinable only on receipt of judgments / decisions pending at various forums / authorities. The management does not expect these claims to succeed and accordingly, no provision has been recognized in the financial statements.

(b) Against bond (mainly GST benefit):

Duty free imports for which export obligation is pending as at year end amounting to ' 11 Lakhs (Previous Year ' 9 Lakhs). In the event Company does not meet the respective obligation, GST would have to be paid for which input credit would be available.

44 Capital Commitments and Other Commitments

(a) Estimated amount of contracts remaining to be executed (net of advances) on capital account is ' 296 Lakhs (Previous year: ' 1,018 Lakhs).

(b) Company is committed to fund its wholly owned subsidiaries as and when required.

45 Disclosure under Ind AS H6 ‘Leases'

The Company has adopted Ind AS 116 ‘Leases' effective from 1st April, 2019. Also refer note 2.2(p) for accounting policy on leases.

a) As a Lessee

The Company's lease assets primarily consist of leases for office premises, warehouses, vehicles and computers. For lease arrangement with lease terms of 12 months or less, the Company has applied the ‘short-term lease' recognition exemptions and for lease with lower underlying value asset, the Company has applied the ‘low value asset' recognition exemption.

b) As a Lessor

For assets given on cancellable lease, it's depreciation and carrying amount, refer note 6. Also, for rental income earned on those properties, refer note 6.1, which is recognized on a straight line basis over the term of the relevant lease for long term leases.

46 Derivative Financial Instruments

The Company uses derivative financial instruments such as forwards and options, to hedge its risks associated with foreign exchange fluctuation. The counterparty for these contracts is generally a bank. These derivative financial instruments are valued based on quoted price for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the market place.

(e) Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes.

The amount of gain / (loss) recognised in Statement of Profit and Loss on account of hedge ineffectiveness for cash flow hedges for the year ended 31st March, 2022 is ' Nil (Previous year : ' Nil).

(b) Defined benefit plan and long term employment benefits:

These plans typically expose the Company to actuarial risks such as: Investment, Interest rate, longevity and salary increase risk:

I. Investment / Interest risk: The Company is exposed to Investment / Interest risk if the return on the invested fund falls below the discount rate used to arrive at present value of the benefit. Since the scheme is unfunded in case of compensated absence, the Company is not exposed to Investment / Interest risk.

II. Longevity Risk: The Company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the employee separating from the employer for any reason.

III. Risk of Salary Increase: The Company is exposed to higher liability if the future salaries rise more than assumption of salary escalation.

(i) Defined benefit plan and long term employment benefits: Gratuity (Defined benefit plan):

In respect of Gratuity, the Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, funded defined benefits plan for qualified employees. The scheme provided for lump sum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

56 Disclosure as per Ind AS 10 ‘Events after the reporting period'

a) The directors have recommended payment of final dividend for FY 2021-22 of ' 1.50 per equity share (i.e. 75%) in its board of directors meeting held on 18th May, 2022. This proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting.

b) No other significant event has occurred subsequent to year end.

57 Impact of Covid-19

a) During the year the business of the Company was significantly impacted by the continuing delay in re-opening of schools amid Covid-19 restrictions. The management is continuously monitoring the situation and expects an improvement in the business going forward, considering the increase in the pace of vaccination, reduction in the number of cases and opening up of schools. The Company has made assessment of its liquidity position for the current financial year and has considered internal and external information in assessing the recoverability of its assets such as investments, loans, intangible assets, trade receivable, inventories, etc. and other significant management estimates. The Company has used the principles of prudence in applying judgments, estimates and assumptions and based on the current estimates, the Company expects to fully recover the carrying amount of these assets.

The impact assessment of COVID-19 is an ongoing process and may be different from that estimated as at the date of approval of these standalone financial results, given the uncertainties associated with its nature and duration and the Company will continue to monitor all material changes to the entity's environment.

b) On account of the pandemic and low business activity, the Company and directors / senior management team had mutually agreed that the Company would not pay remuneration aggregating to ' 237 Lakhs to such directors / senior management team members for the month of April & May 2020. Also refer note 58.

58 Related Party Transactions

I) List of related parties with whom transactions have taken place and their relationships:

(a) Enterprises where control exists:

Subsidiaries:

Navneet Futuretech Limited (formerly known as eSense Learning Limited, refer note 65)

Navneet Learning LLP Indiannica Learning Private Limited Navneet (HK) Limited

Navneet Edutech LLP (from 30.03.2021 to 29.06.2021)

Navneet Tech Ventures Private Limited (w.e.f. 29.06.2021)

Step down subsidiary:

Genext Students Private Limited (w.e.f. 20.07.2021)

(b) Associates:

K12 Techno Services Private Limited

Carveniche Technologies Private Limited (w.e.f. 16.07.2021)

(i) The above figure excludes provision for gratuity and compensated absences which have been actuarially determined on overall basis.

(ii) Financial Guarantee are issued in favour of banks against loans taken by subsidiaries. The amount of guarantee is ' 5,650 Lakhs (Previous Year ' 5,650 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 9).

(iii) Transactions with related parties in the nature of sale of goods, rendering of services, purchase of goods, procurement of services are at arm's length price. The related party transactions and year end balances do not include expenses paid on behalf of related parties and its recovery.

(iv) Interest ranges from 5% and 6.7% (Previous year: 7%) per annum, has been charged to Navneet Futuretech Limited, Navneet Tech Venture Private Limited and Indiannica Learning Private Limited.

59 Operating Segment

The Company's operations relates to publication of knowledge based information in educational and general books form and manufacturing of paper and other stationery items. It caters to the educational need of Indian as well as Global market. The Company is organised into business units based on its products and services and has three reportable segments as follows

i) Publication

ii) Stationery

iii) Others comprises of revenue from generation of power by windmill, trading items etc.

The accounting principles and policies used in the preparation of the Standalone Financial Statements, as set out in the note on significant accounting policies, are also consistently applied to record assets, liabilities, revenue and expenditure, in individual segments.

Notes : (i) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the respective segment, however, revenue and expenses which can not be identified or allocated reasonably to a segment being related to the enterprise as a whole have been grouped as unallocable.

(ii) Segment assets and segment liabilities represent assets and liabilities of respective segments , however the assets and liabilities not identifiable or allocable on reasonable basis being related to enterprise as a whole have been grouped as unallocable.

(iii) In publication segment, concentration of revenues from one customer of the Company were 10.95% and Nil of total publication revenue for the year ended 31st March, 2022 and 31st March, 2021 respectively and in stationery segment, concentration of revenues from one customer of the Company were 37.12% and 43.24% of total stationery revenue for the year ended 31st March, 2022 and 31st March, 2021 respectively.

(iv) Sales between operating segments are carried out at arm's length basis and are eliminated at Company level consolidation.

(v) Impairment of investment is accounted for ‘Navneet Futuretech Limited' of ' NIL (Previous year: ' 153 Lakhs) and for ‘Indainnica Learning Private Limited' of '2,233 Lakhs (Previous year: ' 237 Lakhs). Also refer note 9.3.

60 Fair value of financial assets and liabilities

The management assessed that the fair values of financial asset and financial liabilities approximate their carrying amounts.

The following methods and assumptions were used to estimate the fair values:

(a) Fair values of cash and cash equivalents, trade receivables, interest accrued on deposits with bank, bank deposits, trade payables and other financial liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.

(b) The management has considered fair value of security deposits, loan from bank, loan from related party, equal to their carrying value as fair values based on the current market interest rates and other risk factors approximate to carrying value.

Notes:

(i) For Details of income and gains related to financial instruments (Refer Note 34).

(ii) Investments in subsidiaries are valued at cost less impairment loss (if any) in accordance with Ind AS 27 ‘Separate Financial Statements', consequently the same is not disclosed in above table.

Financial /Bank guarantee:

(i) Financial Guarantees are issued in favour of banks against loans taken by subsidiaries. The amount of guarantee is ' 5,650 Lakhs (Previous Year ' 5,650 Lakhs). Fair value of financial guarantee is accounted in accordance with Ind AS 109 (Refer note 9.2 and 28).

(ii) Bank Guarantee is given to electricity department (DNH Power Distribution Corporation Limited and Uttar Gujarat Vij Company Limited) for electricity deposit of ' 80 Lakhs(Previous Year ' 130 Lakhs).

61 Financial Risk Management

The Company is exposed to market risk, credit risk and liquidity risk. The management reviews and agrees policies for managing each of these risks which are summarized below:

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk primarily include trade receivables, trade payables and cash and cash equivalents.

The sensitivity analysis in the following sections relate to the position for the periods presented. The sensitivity analysis has been prepared on the basis that the amount of net debt and the proportion of financial instruments in foreign currencies are all constant. The analysis exclude the impact of movements in market variables on the carrying values of gratuity obligation and provisions.

The sensitivity of the relevant profit and loss item is the effect of the assumed changes in respective market risks based on the financial assets and financial liabilities held at the periods presented.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to trade payables and trade receivables.

The following table analyses the foreign currency risk from monetary assets and liabilities as at balance sheet date:

Note: - For the purpose of foreign currency sensitivity, trade receivable to the extent unhedged are considered Price risk

The Company is not exposed to any significant price risk.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, primarily for trade receivables and deposits with banks and other financial assets.

Trade receivables

Customer credit risk is managed based on the Company's established policy, procedures and control relating to customer credit risk management. The Company evaluates the concentration of risk with respect to trade receivables as low. Out of total trade receivables balance as at 31st March, 2022, ' 1,805 Lakhs (Previous year: ' 792 Lakhs) is due from a single US based customer being the Company's largest customer. There are no other customers who represent more than 10% of the balance of trade receivables. Outstanding customer receivables are regularly monitored by the management.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix and past historical experience. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information.

An impairment analysis is performed at each reporting date on an individual basis for major customers.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum level of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis.

The Company is not exposed to significant liquidity risk based on past performance and current expectations. The Company believes that the cash and cash equivalents, cash generated from operations and available undrawn credit facilities, will satisfy its working capital needs, capital expenditure, investment requirements, commitments and other liquidity requirements associated with its existing operations, through at least the next twelve months.

Note: Investments in subsidiaries are valued at cost less impairment loss (if any) in accordance with Ind AS 27 ‘Separate Financial Statements', consequently the same is not disclosed in maturity profile tabulated above.

63.2 Aggregate outflow on account of direct taxes paid is ' 4,576 Lakhs (Previous year ' 2,777 Lakhs).

63.3 Net cash inflow from operating activity netted off with expenditure on Corporate Social Responsibility (CSR) expenditure of ' 457 Lakhs (Previous year ' 549 Lakhs) (Refer note 53).

64 Details of the sources of estimation uncertainty in related to significant accounting estimates and judgements:

i) Impairment of investment in subsidiaries

Refer note 2.3 (b) of significant accounting policies and note 9.3 for significant accounting estimates and judgements used in performing impairment test on investment value of subsidiaries.

ii) Provision for employee benefits

Refer note 2.3 (e) of significant accounting policies and note 52(b)(i) for significant accounting estimates and judgements used and it's financial impact of sensitivity of such assumptions.

65 Subsequent to the year ended 31st March, 2022, one of the subsidiary eSense Learning Private Limited has changed its name from eSense Learning Private Limited to ‘eSense Learning Limited' with effect from 27th April, 2022. Further, eSense Learning Limited has changed its name from eSense Learning Limited to ‘Navneet Futuretech Limited' with effect from 17th May, 2022.

67 Wilful defaulter

As on 31st March, 2022 the Company has not been declared wilful defaulter by any bank/financial institution or other lender.

68 Details of Crypto currency or Virtual currency

The Company is not engaged in the business of trading or investing in crypto currency or virtual currency and hence no disclosure is required.

69 Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company does not have any charges or satisfaction yet to be registered with the registrar of companies(ROC) beyond the statutory period as at 31st March, 2022.

70 Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

71 Benami Property

No proceedings have been initiated or are pending against the Company as on 31st March, 2022 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

72 Relationship with struck off companies

The Company does not have any transaction with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 and hence no disclosure is required.

73 Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any scheme of arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

(ii) Debt service coverage ratio has improved as compared to previous year due to increase in profit and decrease in interest.

(iii) Due to buy-back of equity shares and increase in profit after tax, return on equity has improved as compared to previous year.

(iv) Inventory turnover ratio has improved as compared to previous year due to increase in sales.

(v) Increase in sales has resulted into improved trade receivables turnover ratio as compared to previous year.

(vi) Due to increase in net profit, net profit ratio has improved as compared to previous year.

(vii) Return on capital employed has improved as compared to previous year due to increase in earning before interest and tax.

(viii) Income generated from treasury investment has reduced leading to adverse return on investment.

75 Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss

(other than already disclosed above) are either Nil or Not Applicable.

76 Previous Year Figures have been regrouped/rearranged wherever necessary.