2.15 Provisions, contingent liabilities and contingent
assets

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made
of the amount of the obligation. When the Company
expects some or all of a provision to be reimbursed, the
reimbursement is recognised as a separate asset, but only

when the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement of
profit and loss net of any reimbursement.

I f the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.

Contingent liabilities are 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 with in the control of the Company or 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 reliable estimate of the amount cannot be
made. Therefore, in order to determine the amount to be
recognised as a liability or to be disclosed as a contingent
liability, in each case, is inherently subjective, and needs
careful evaluation and judgement to be applied by the
management. In case of provision for litigations, the
judgements involved are with respect to the potential
exposure of each litigation and the likelihood and/or
timing of cash outflows from the Company, and requires
interpretation of laws and past legal rulings.

Possible inflows of economic benefits to the Company that
do not yet meet the recognition criteria of an asset are
considered contingent assets.

2.16 Earnings per share (EPS)

Basic earnings per share is calculated by dividing the profit
or loss for the period attributable to equity shareholders
of the Company by the weighted average number of equity
shares outstanding during the year.

Diluted earnings per share are computed and disclosed
after adjusting the effects of all dilutive potential equity
shares, if any, except when the results will be anti-dilutive.

2.17 Dividend

The Company recognises a liability to make cash or non¬
cash distributions to equity holders of the Company
when the distribution is authorised and the distribution
is no longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorised when

it is approved by the shareholders. A corresponding
amount is recognised directly in equity.

2.18 Significant accounting judgements, estimates and
assumptions

The preparation of the Company's financial statements
in conformity with the Indian Accounting Standards
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures (including contingent liabilities). The
management believes that the estimates used in
preparation of the financial statements are prudent and
reasonable. Uncertainty about these assumptions and
estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities
affected in future periods.

A. Judgement

In the process of applying the Company's accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognised in the financial statements:

i) Determining the lease term of contracts with
renewal and termination options - Company as
lessee

The Company determines the lease term as the
non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it
is reasonably certain to be exercised, or any periods
covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.

Cor the lease contracts that includes extension
and termination options. The Company applies
judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to
renew or terminate the lease. That is, it considers all
relevant factors that create an economic incentive for
it to exercise either the renewal or termination. After
the commencement date, the Company reassesses
the lease term if there is a significant event or change
in circumstances that is within its control and
affects its ability to exercise or not to exercise the
option to renew or to terminate (e.g., construction
of significant leasehold improvements or significant
customisation to the leased asset).

Leases - estimating the incremental borrowing
rate

The Company cannot readily determine the interest
rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease
liabilities. The IBR is the rate of interest that the
Company would have to pay to borrow over a similar
term, and with a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-
use asset in a similar economic environment. The IBR
therefore reflects what the Company 'would have to
pay', which requires estimation when no observable
rates are available or when they need to be adjusted
to reflect the terms and conditions of the lease. The
Company estimates the IBR using observable inputs
(such as market interest rates) when available and
is required to make certain entity-specific estimates
(such as the subsidiary's stand-alone credit rating).

ii) Revenue from contracts with customers

The Company applied the following judgements
that significantly affect the determination of the
amount and timing of revenue from contracts with
customers:

Determining method to estimate variable
consideration and assessing the constraint

Certain contracts for the sale of books include cash
discounts and turnover discounts and a right to return
the goods that give rise to variable consideration. In
estimating the variable consideration, the Company
is required to use either the expected value method
or the most likely amount method based on which
method better predicts the amount of consideration
to which it will be entitled.

Before including any amount ofvariable consideration
in the transaction price, the Company considers
whether the amount of variable consideration
is constrained. The Company determined that
the estimates of variable consideration are not
constrained based on its historical experience,
business forecast and the current economic
conditions. In addition, the uncertainty on the
variable consideration will be resolved within a short
time frame.

B. Estimates and assumptions

The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts

of assets and liabilities within the next financial
year, are described below. The Company based its
assumptions and estimates on parameters available
when the financial statements were prepared.
Existing circumstances and assumptions about
future developments, however, may change due to
market changes or circumstances arising that are
beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

i) Deferred tax assets

Deferred tax assets are recognised to the extent
it is probable that future taxable profits will
be available against which they can be used.
Significant management judgement is required
to determine the amount of deferred tax assets
that can be recognised, based upon the likely
timing and the level of future taxable profits
together with future tax planning strategies.

ii) Defined employee benefits plans

The cost of the defined employee benefits
obligations are determined using actuarial
valuations. An actuarial valuation involves
making various assumptions that may differ
from actual developments in the future. These
include the determination of the discount rate,
future salary increases and mortality rates. Due
to the complexities involved in the valuation
and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at
each reporting date.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate, the management considers the
interest rates of government bonds with term
that correspond with the expected term of the
defined benefit obligation.

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend
to change only at interval in response to
demographic changes. Future salary increases
are based on expected future inflation rates for
the respective countries.

Further details about defined employee benefit
plans are given in note 40.

iii) Provision for expected credit losses of trade
receivables

The Company uses a provision matrix to
calculate ECLs for trade receivables. The
provision rates are based on days past due for
groupings of various customer segments that
have similar loss patterns (i.e., by geography,
product type, customer type and rating, and
coverage by letters of credit and other forms of
credit insurance).

The provision matrix is initially based on the
Company's historical observed default rates.
The Company will calibrate the matrix to
adjust the historical credit loss experience with
forward-looking information. For instance,
if forecast economic conditions (i.e., gross
domestic product) are expected to deteriorate
over the next year which can lead to an increased
number of defaults in the manufacturing sector,
the historical default rates are adjusted. At
every reporting date, the historical observed
default rates are updated and changes in the
forward-looking estimates are analysed.

The assessment of the correlation between
historical observed default rates, forecast
economic conditions and ECLs is a significant
estimate. The amount of ECLs is sensitive
to changes in circumstances and of forecast
economic conditions. The Company's historical
credit loss experience and forecast of economic
conditions may also not be representative of
customer's actual default in the future. For
details of allowance for expected credit loss,
please refer note 15.

iv) Impairment of financial and non-financial
assets

The impairment provisions for financial assets
are based on assumptions about risk of default
and expected cash loss rates. The Company
uses judgement in making these assumptions
and selecting the inputs to the impairment
calculation, based on Company's past history,
existing market conditions as well as forward¬
looking estimates at the end of each reporting
period.

The carrying amounts of the Company's non¬
financial assets, other than deferred tax assets,
are reviewed at the end of each reporting period
to determine whether there is any indication of
impairment. If any such indication exists, then
the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash¬
generating unit ('CGU') is the greater of its
value in use and its fair value less costs to sell.
In assessing value in use, the estimated future
cash flows are discounted to their present
value using a pre-tax discount rate that reflects
current market assessments of the time value of
money and the risks specific to the asset or CGU.
For the purpose of impairment testing, assets
that cannot be tested individually are grouped
together into the smallest group of assets that
generates cash inflows from continuing use that
are largely independent of the cash inflows of
other assets or groups of assets ('CGU').

Market related information and estimates are
used to determine the recoverable amount.
Key assumptions on which management has
based its determination of recoverable amount
include estimated long term growth rates,
weighted average cost of capital and estimated
operating margins. Cash flow projections take
into account past experience and represent
management's best estimate about future
developments.

v) Useful lives of depreciable/amortisable
assets

Management reviews the estimated useful
lives and residual value of property, plant and
equipment and intangibles at the end of each
reporting period. Factors such as changes in
the expected level of usage could significantly
impact the economic useful lives and the
residual values of these assets. Consequently,
the future depreciation charge could be revised
and may have an impact on the profit of the
future years.

2.19 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company's Managing Director
assesses the financial performance and position of the
Company, and makes strategic decision and has been
identified as the chief operating decision maker. The
Company's primary business segment is reflected based on
principal business activities carried on by the Company. As
per Indian Accounting Standard 108, Operating Segments,
as notified under the Companies (Indian Accounting
Standards) Rules, 2015, the Company operates in one
reportable business segment i.e., publishing of books.
The geographical information analyses the Company's

revenue and trade receivables from such revenue in India
and other countries. The Company primarily operates in
India. Refer note 49 for segment reporting.

2.20 Business combination

Business combination between entities under common
control are accounted at historical cost. The difference
between the consideration paid/received and the carrying
amount of assets and liabilities transferred is recorded in
the capital reserve, a component of other equity.

Business combination arising from transfers of interest
in entities that are under common control are accounted
for as if the acquisition had occurred at the beginning of
the earliest comparative period presented or, if later, at
the date that common control was established; for this
purpose, comparatives are revised.

2.21. Application of new standards and amendments
The Ministry of Corporate Affairs ('MCA') notified
new standards or amendment to existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. The Company
applied following amendments for the first-time
during the current year which are effective from 01
April 2025:

(a) Lack of exchangeability - Amendments to Ind AS
21

MCA via notification dated 7 May 2025, announced
amendments to Ind AS 21, The Effects of Changes
in Foreign Exchange Rates, to specify how an entity
should assess whether a currency is exchangeable
and how it should determine a spot exchange rate
when exchangeability is lacking.

The amendments also require disclosure of
information that enables users of its financial
statements to understand how the currency not being
exchangeable into the other currency affects, or is
expected to affect, the entity's financial performance,
financial position and cash flows.

The amendments do not have any material impact on
the financial statements.

(b) Classification of liabilities as current or non¬
current and non-current liabilities with
covenants - Amendments to Ind AS 1

TCA via notification dated 13 August 2025
announced amendments to Ind AS 1, Presentation of
Financial Statements, which elaborate on guidance
set out in Ind AS 1 by:

• Tlarifying that the right to defer settlement
of a liability for at least 12 months after the
reporting period;

a) must have substance, and

b) must exist at the end of the reporting
period;

• stating that management's expectations

around whether the settlement of a liability
would be deferred or not, does not impact the
classification of the liability;

• i ncluding requirements for liabilities that can
be settled using an entity's own instruments;
and

• stating that at the reporting date, the entity
does not consider covenants that will need to be
complied with in the future when considering
the classification of the debt as current or non¬
current.

In addition, an entity is required to disclose when a
liability arising from a loan agreement is classified as
non-current and the entity’s right to defer settlement
is contingent on compliance with future covenants
within twelve months.

The amendments do not have any material impact on
the classification of the Company's liabilities as at the
balance sheet date.

(c) Supplier finance arrangements - Amendments to
Ind AS 7 and Ind AS 107

MCA via notification dated 13 August 2025 announced
amendments to Ind AS 7, Statement of Cash Flows
and Ind AS 107, Financial Instruments: Disclosures
which introduced disclosure requirements with the
objective to enable users of financial statements to
assess how supplier finance arrangements affect
an entity's liabilities, cashflows and exposure to
liquidity risk.

The amendments do not have any material impact on
the financial statements.

(d) International tax reform - pillar two model rules
- Amendments to Ind AS 12

TCA via notification dated 13 August 2025
announced amendments to Ind AS 12, Income Taxes,
which includes:

• a temporary exception to the recognition and
disclosure of deferred taxes arising from the
implementation of the Pillar Two model rules;
and

• additional disclosure requirements targeted at
a reporting entity's exposure to income taxes in
periods in which the Pillar

Two Model legislation is enacted or substantively
enacted but not yet in effect.

The amendments do not have a material impact on
the financial statements.

2.22 New standards and amendments to existing Stan¬
dards which are issued but are not yet effective and
have not been early adopted by the Company:

(a) Classification of liabilities as current or non¬
current and non-current liabilities with
covenants - Amendments to

Ind AS 1 Paragraph 74 of Ind AS 1 currently effective
for the year ended 31 March 2026 requires the entity

not to classify the liability as current, if there is a
breach of a material covenant of a long-term loan
arrangement on or before the end of the reporting
period with the effect that the liability becomes
payable on demand on the reporting date, however,
the lender agreed, after the reporting period and
before the approval of the financial statements for
issue, not to demand payment as a consequence of
the breach.

MCA vide notification dated 13 August 2025, has
introduced amendment under Paragraph 74 of Ind
AS 1 which requires the entity to classify the liability
as current under the aforementioned situation
because, at the end of the reporting period, it does
not have the right to defer its settlement for at least
twelve months after that date. Such amendment has
been made effective for annual reporting periods
beginning on or after 01 April 2026 retrospectively
in accordance with Ind AS 8.

This amendment is not expected to have a material
impact on the financial statements.

Notes:

a. During the previous year, the Company has sold 7,016 0.1% unsecured Compulsory Convertible Debentures (CCDs) (Series
1) to its wholly-owned subsidiaries at t 100,000 each. In accordance with the agreement, the receivable against this sale
of investment will be received over 7 years in defined instalments. The said receivable is interest free and accordingly the
difference between the present value of receivable and consideration receivable has been classified as equity contribution
by the parent amounting t 138.03 millions (31 March 2025: t 184.32 millions).

b. Investment in equity shares in such subsidiaries include deemed investments of t 51.48 millions (31 March 2025: t 50.67
millions) due to ESOP granted to employees of subsidiary companies and corporate guarantee given by Holding Company
on behalf of subsidiary companies.

c. During the current year, the Company has acquired 676,292 equity shares face value t 10 each in S. Chand Edutech Private
Limited at a price of ' 50.40 per share.

d. During the last year, the Company has acquired 661,362 equity shares face value t 10 each in BPI (India) Private Limited
at a price of ' 63 per share.

e. The Company has determined the recoverable amounts of its investments in subsidiaries under Ind AS 36 "Impairment
of Assets" using the discounted cashflow method which involves estimates pertaining to expected business and earnings
forecasts and key assumptions including those related to discount and long-term growth rates, which are considered
reasonable by the Management. Significant inputs used in fair value measurements are as follows :

On a careful evaluation of the aforesaid factors, the management has concluded that the recoverable value of the
investments is higher than their carrying amounts as at 31 March 2026*.

*During the current year, the management has evaluated that the recoverable value in two subsidiary is less than the
carrying value as on 31 March 2026. Refer note 54.

Sensitivity

The management believes that any reasonable possible changes in the key assumptions would not cause the investment's
carrying amount to exceed its recoverable amount.

b. Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of t 5 per share (31 March 2025: t 5 per share). Each
holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. 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 amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

c. The Company has not issued any shares pursuant to a contract without payment being received in cash in the current
year and preceding five years. There has not been any buy-back of shares in the current year and preceding five years. The
Company has not issued any bonus shares during the year.

Nature and purpose of reserves:

Capital reserve

Capital reserve represents reserve created on cancellation of forfeited equity shares and on account of business combinations
under common control.

General reserve

General Reserve represents amount apportioned out of retained earnings.

Securities premium

Securities premium comprises of the premium on issue of shares. The reserve is utilised in accordance with the specific
provision of the Companies Act, 2013.

Retained earnings

Retained earnings refer to the net profit/(loss) retained by the Company for its core business activities. Also includes re¬
measurement gains on defined benefit plans.

Employee stock options outstanding

Employee stock options have been issued under Equity Settled ESOP Scheme 2012 (Scheme 2012), Equity Settled ESOP
Scheme 2018 (Scheme 2018) and Equity Settled ESOP Scheme 2023 (Scheme 2023) to the eligible employees and subsequent
to that various grants were issued. The reserve has been created for the various ESOP grants issued by the Company thereafter.

Notes:

a. Cash credit from State Bank of India (SBI) is secured by way of first pari passu charge (along with HDFC, Yes Bank
and Indian Bank) on the entire existing and future current assets and movable property, plant and equipment of the
Company (excluding assets which are specifically charged to other lenders), personal guarantee of Mr. Himanshu Gupta
and Mr. Dinesh Kumar Jhunjhnuwala, Directors of the Company. The loan carry interest rate of 9.45% to 10.20% p.a. (31
March 2025: 9.85% to 10.10% p.a.).

The Company has further availed cash credit/dropline overdraft from RBL Bank, secured by way of subservient charge on
the entire existing and future current assets and movable property, plant and equipment of the Company (excluding assets
which are specifically charged to other lenders), charge on immovable property of the Company situated at plot no. 40/2
A, site no. IV, UPSIDC industrial estate, Sahibabad and personal guarantee of Mr. Himanshu Gupta and Mr. Dinesh Kumar
Jhunjhnuwala, Directors of the Company. This facility carries interest rate of 9.75% p.a. (31 March 2025: 9.75% p.a).

Cash credit from Indian Bank, secured by way of first pari passu charge along with HDFC Bank, Yes Bank and SBI on
the entire existing and future current assets and fixed assets of the Company (excluding assets which are specifically
charged to other lenders), personal guarantee of Mr. Himanshu Gupta and Mr. Dinesh Kumar Jhunjhnuwala, Directors of
the Company. These loans carry interest rate of 7.45% to 8.45% p.a. (31 March 2025: 8.70% p.a).

Cash credit from Yes Bank, secured by way of first pari passu charge along with HDFC Bank, Indian Bank and SBI on
the entire existing and future current assets and fixed assets of the Company (excluding assets which are specifically
charged to other lenders), personal guarantee of Mr. Himanshu Gupta and Mr. Dinesh Kumar Jhunjhnuwala, Directors of
the Company. These loans carry interest rate of 7.90% to 8.65% p.a.

b. Working capital demand loan from HDFC Bank, State Bank of India and Yes Bank have been availed during the year.
These loans carry interest rate of 7.00% to 9.06% p.a (31 March 2025: 7.12% to 9.58% p.a). For HDFC Bank and State
Bank of India, loan is secured by way of first pari passu charge on entire existing and future current assets and movable
fixed assets of the Company (excluding assets which are specifically charged to other lenders) and personal guarantee of
Mr. Himanshu Gupta and Mr. Dinesh Kumar Jhunjhnuwala, Directors of the Company. For Yes Bank, loan is secured by first
pari passu charge by way of hypothecation on current assets (both present and future) and first pari passu charge by way
of hypothecation on movable fixed assets (excluding those exclusively charged to other lenders) both present and future.

c. The Company is required to comply with certain debt covenants as mentioned in the loan agreement for term loans,
failure of which makes the loan to be repaid on demand at the discretion of the bank. During the current financial year,
there has been no covenant breach.

d. The funds raised by the Company on short term basis have not been utilised for long term purposes.

e. Refer note 56 for summary of quarterly statements submitted to banks and its reconciliation with amounts as per books
of accounts.

Performance obligation

Information about the Company's performance obligations are summarised below:

Finished goods/ Traded goods

The performance obligation is satisfied upon delivery of the goods to the transporter or to the customer whichever is earlier.

The customer has a right to return material to an extent as may be agreed upon with each customer or within the limits as may
be determined by the Company.

The customer is also eligible for discounts based on achievement of revenue targets as may be agreed.

Services

Revenue from services rendered is recognised over a period of time.

39 The Government of India has notified the code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security,
2020 and the Occupational Safety, Health and Working Conditions code, 2020 ("Labour Codes") with effect from 21 November
2025 which consolidates 29 existing labour laws, Based on the draft rules and FAQs issued by the ministry of labour and
employment and best available information, the company has estimated the financial implications thereof and has made an
additional provision of t 13.80 millions for the year ended 31 March 2026. Considering the materiality, regulatory driven
and non-recurring nature of the impact, the Company has presented such incremental impact under "exceptional item". The
Company continues to monitor the finalisation fo central/state rules and other developments pertaining to labour codes and
would provide appropriate accounting effect on the basis of such developments, if any.

40 Employee benefits

a. Defined contribution plan

An amount of t 38.04 millions (31 March 2025 : t 35.27 millions) for the year has been recognised as an expense in respect
of the Company's contributions towards Provident Fund, an amount of t 0.10 millions (31 March 2025 : t 0.13 millions) for
the year has been recognised as an expense in respect of Company’s contributions towards Employee State Insurance and
an amount of t 1.69 millions (31 March 2025 : t 1.50 millions) for the year has been recognised as an expense in respect of
the Company's contributions towards National Pension Scheme, which are deposited with the government authorities/funds
approved by the government authorities and have been included under employee benefit expenses in the Statement of Profit
and Loss.

b. Gratuity

The Company has a defined benefit gratuity plan governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act,
employees are entitled to specific benefit at the time of retirement or termination of the employment on completion of five
years or death while in employment. The level of benefit provided depends on the member's length of service and salary at the
time of retirement/termination age.

Under the Company's gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure
at 15 days of last drawn salary for each completed year of service or part thereof in excess of six months subject to a maximum
of t 3.00 million. The scheme is funded with two insurance companies in the form of qualifying insurance policies.

The following tables summarize the components of net benefit expense recognised in the profit and loss account and amounts
recognised in the balance sheet for Gratuity Plan.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The above defined benefit plan exposes the Group to following risks:

Investment risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair
value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount
rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount
rate during the inter-valuation period.

Market risk (interest risk):

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. The discount
rate reflects the time value of money. An increase in discount rate leads to decrease in defined benefit obligation of the plan
benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of
liability is exposed to fluctuations in the yields as at the valuation date.

Longevity risk:

The impact of longevity risk will depend on whether the benefits are paid before retirement age or after. Typically for the
benefits paid on or before the retirement age, the longevity risk is not very material.

Actuarial risk:

Salary increase assumption

Actual salary increase that are higher than the assumed salary escalation, will result in increase to the obligation at a rate that
is higher than expected.

Attrition/withdrawal assumption

If actual withdrawal rates are higher than assumed withdrawal rates, the benefits will be paid earlier than expected. Similarly
if the actual withdrawal rates are lower than assumed, the benefits will be paid later than expected. The impact of this will
depend on the demography of the company and the financials assumptions.

Regulatory risk:

Any changes to the current Regulations by the Government, will increase (in most cases) or decrease the obligation which is
not anticipated. Sometimes, the increase is many fold which will impact the financials quite significantly.

# Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for current leases (leases with an expected term of 12 months or less)
or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The Company does
not have any liability to make variable lease payments for the right-to-use the underlying asset recognised in the financials.

Total cash outflow for current leases and leases of low value for the year ended 31 March 2026 was t 5.56 millions (31 March
2025 : t 3.30 millions).

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to
meet the obligations related to lease liabilities as and when they fall due.

The aggregate depreciation on Right-of-use assets has been included under depreciation and amortisation expense in the
Statement of Profit and Loss.

*Does not include gratuity and compensated absences, since the provision is based upon actuarial for the Company as a whole.

Terms of conditions of transactions with related parties

The transactions with related parties are made in the ordinary course of business and on terms equivalent to those that prevail
in arm's length transactions. The settlement of outstanding balances as at year end occurs in cash.

Refer notes 20 and 23 which describes borrowings that are secured against the personal guarantees from certain directors.
43 Employee stock option plans

The Company provides share-based payment schemes to its employees. During the year ended 31 March 2026, Equity Settled
ESOP Scheme 2012 (Scheme 2012), Equity Settled ESOP Scheme 2018 (Scheme 2018) and ESOP Scheme 2023 (the "ESOP
2023") were in existence. The relevant details of the schemes and the grant are as below.

Equity Settled ESOP Scheme 2012 (Scheme 2012) :

On 30 June 2012, the board of directors approved the Equity Settled ESOP Scheme 2012 (Scheme 2012) for issue of stock
options to the eligible employees. According to Scheme 2012, two types of options were granted by the Company to the
eligible employees viz Growth and Thankyou option and were entitled to 2,194 and 292 options respectively. The options were
subject to satisfaction of the prescribed vesting conditions, viz., continuing employment with the Company. However in case of
Growth options, in addition to this the board may also specify the certain corporate, individual or a combination performance
parameters subject to which the option would vest.

Equity Settled ESOP Scheme 2018 (Scheme 2018) :

Equity Settled ESOP Scheme 2018 (Scheme 2018) was approved by shareholders on 25 September 2018, for issue of stock
options to the eligible employees. According to Scheme 2018, eligible employees will be granted 190,000 options. The options
were subject to satisfaction of the prescribed vesting conditions, viz., continuing employment with the Company.

Each vest has been considered as a separate grant with weights assigned to each vesting as per the vesting schedule. The
minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is
the period after which the options cannot be exercised. The expected life has been calculated as an average of minimum and
maximum life.

The volatility for periods corresponding to the respective expected lives of the different vests, prior to the grant date has been
considered. The daily volatility of the Company's stock price on stock exchanges over these years has been considered.

44 Financial Instruments:- Financial risk management objectives and policies

The Company's principal financial liabilities, comprises of loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance the Company’s operations. The Company's principal financial assets include investments
in equity shares, advances to related party, trade and other receivables, security deposits, cash and short-term deposits that
are derived directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the
management of these risks and advises on financial risks and the appropriate financial risk governance framework for the
Company. The board provides assurance to the shareholders that the Company's financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the
Company's policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below.

A. 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.

The Company is exposed to following type of market risk:-

a) interest rate risk,

b) foreign currency risk and

c) other price risk

Financial instruments affected by market risk include borrowings and investments.”

The sensitivity analyses in the following sections relate to the position as at 31 March 2026 and 31 March 2025.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of floating to fixed interest
rates of the debt and the proportion of financial instruments in foreign currencies are all constant in place at 31 March
2026.

The analyses exclude the impact of movements in market variables on: the carrying values of employee benefits provisions.
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.

a. Interest rate risk

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 debt obligations with variable interest rates.

b. 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 the
Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company does not hedge its foreign currency exposure, however the sensitivity analysis is given as below for the
currencies, in which Company has foreign exposure:

Other price risk

The Company’s investments are susceptible to market price risk arising from uncertainties about future values of the
investment securities.

The price risk related to investment in mutual fund schemes is not significant considering the relatively short tenure of
underlying portfolio of the mutual fund schemes in which the Company has invested.

The following table summarises the sensitivity to change in the price of investment in unlisted and listed equity securities
(other than investment in subsidiaries) held by the Company:

d. Commodity risk

Commodity price risk arises due to fluctuation in prices of papers. The Company has risk management framework
aimed at prudently managing the risk arising from volatility in the commodity prices. The Company's commodity risk
is managed centrally through well established control processes. Further the selling price of finished goods fluctuates
due to fluctuation in price of papers and the Company expects that the net impact of such fluctuation would not be
material.

B. Credit risk

a. 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 not exposed to any significant credit risk from its operating activities (primarily
trade receivables), including deposits with banks and financial institutions, foreign exchange transactions and other
financial instruments.

The carrying amount of financial assets represent the maximum credit risk exposure.

The ageing analysis of trade receivables (net) before adjustment of expected credit loss provision of t 143.63 millions (31
March 2025 t 209.11 million) as of the reporting date is as follows:

c. Treasury related credit risk

Credit risk on cash and cash equivalents and other deposits with the banks is limited as the Company generally invest
in deposits with banks with high credit ratings assigned by external credit rating agencies, accordingly the Company
consideres that the related credit risk is low. Impairment on these items is measured on 12- month expected credit loss
basis.

Significant Increase in Credit Risk (SICR)

The Company considers a financial instrument to have experienced a significant increase in credit risk when on any
financial instrument if the payment is more than 30 days past due on its contractual payments.

C. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company's objective is to maintain a
balance between continuity of funding and flexibility through the use of bank overdrafts, and bank loans. The Company’s
approach to managing liquidity to ensure, as far as possible, that it will have sufficient liquidity to meet its liability when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to
the Company's reputation. The Company closely monitors its liquidity position and deploys a robust cash management
system. The Company manages liquidity risk by maintaining adequate reserves, borrowing liabilities, by continuously
monitoring forecast and actual cash flows, profile of financial assets and liabilities. It maintain adequate sources of
financing including loans from banks at an optimised cost. The table below provides the details regarding contractual
maturities of financial liabilities.

45 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise
the shareholder value.

The Company seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings
and the advantages and security afforded by a sound capital position. The primary objective of the Company's capital
management is to maximise the shareholder value.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company's
policy is to keep the gearing ratio less than 30%. The Company measures underlying net debt as total liabilities, comprising
interest bearing loans and borrowings, excluding any dues to subsidiaries or group companies less cash and cash equivalents.
For the purpose of capital management, total capital includes issued equity capital, share premium and all other reserves
attributable to the equity holders of the Company, as applicable.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been
no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2026 and
31 March 2025.

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

i) The fair values of trade receivables, cash and cash equivalents, other current financial assets, trade payable and other
current financial liabilities are considered to be same as their carrying values due to their short term nature.

ii) Fair value of quoted financial instruments is based on quoted market price at the reporting date.

iii) The carrying amount of other items carried at amortized cost are reasonable approximation of their fair value.

iv) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the quoted
notes and bonds are based on price quotations at the reporting date.

47 The Board of Directors of the Company have approved the payment of interim dividend of ' 4.00 (80%) per equity share of '
5.00/- each for the financial year ended 31 March 2026. The record date for the purpose of payment of interim dividend is fixed
as 29 May 2026. The Board of Directors of the Company had recommended a dividend of ' 4.00/- (80%) per equity share of '
5.00/- each for the financial year ended 31 March 2025 which was subsequently approved by the shareholders in the Annual
General Meeting held on 25 September 2025 and paid thereof.

49 Segment reporting
Basis of segmentation:

The Company's primary business segment is reflected based on principal business activities carried on by the Company. The
Managing Director has been identified as being the Chief Operating Decision Maker (‘CODM’) and evaluates the Company’s
performance and allocates resources based on analysis of the various performance indicators of the Company as a single unit.
As per Indian Accounting Standard 108, Operating Segments, as notified under the Companies (Indian Accounting Standards)
Rules, 2015, the Company operates in one reportable business segment i.e., publishing of books.

Geographical information:

The geographical information analyses the Company's revenue and trade receivables from such revenue in India and other
countries. In presenting the geographical information, segment revenue and receivables has been based on the geographical
location of the customer.

Notes:

a In respect of Assessment Year 2015-16, a disallowance under section 36(1)(va) read with section 2(24)(x) of the Income
Tax Act, a demand has been raised on account of disallowance of payment made towards employee's contribution to
Provident Fund after the due date of payment but before the due date of filling return and disallowance of unexplained
expenditure u/s 69 C of the Income Tax Act. The matter is pending with CIT (A). The amount involved is t 0.72 million (31
March 2025: t 0.72 million).

b In respect of Assessment Year 2018-19, a demand order for the payment of additional tax liability due to application of
lower tax rate (25% instead of 30%) had been received. The matter is pending with CIT (A). The amount involved is t 1.92
million (31 March 2025: t 1.92 million) .

c In respect of Financial Year 2017-18, the Company has filed appeal before Commissioner Appeals against the order
passed by the department for ailment of excess ITC in GSTR 3B as compared to table 8A of GSTR 9, further reversal of
ITC on non-business transaction and exempt supplies, and ineligibility of ITC on purchase of electrical items. The amount
involved is t 4.82 million (31 March 2025: t 4.82 million).

d During the year 2015-16, the Company received notice under Indian Stamp Act, 1899 for non-payment of stamp duty on

transfer of property on amalgamation and demerger held in the financial year 2011-12. The district registrar contented
that order of Hon'ble High Court for amalgamation and demerger does not grants exemption in respect of payment of
stamp duty.

During the year 2017-18, the Company has also received a demand notice from the Sub-Registrar under section 80A of
the Registration Act, 1908 wherein the authority has directed the Company to pay additional registration fee of t 0.03
million (31 March 2025: 0.03 million) and stamp duty of t 27.01 million (31 March 2025: 27.01 million).

As per the legal opinion obtained, management is of the view that no liability would accrue on the Company on account
of such case. Accordingly, no provision has been made in the books of account for the same.

e The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions
are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The Company
also believes that the above issues, when finally settled, are not likely to have any significant impact on the financial
position of the Company. The Company does not expect any reimbursements in respect of the above contingent liabilities.

54 During the year, diminution in the carrying value of investment in respect of its subsidiary companies amounting to t 55.25
million (31 March 2025: t 88.90 million) (represented by investment in equity shares) has been made to recognise a decline
in the value of its investments in resultant business, other than temporary, in the value of the investment.

55 Unhedged foreign currency exposure

The amount of foreign currency exposure that are not hedged by derivative instrument or otherwise as on 31 March 2026 and
31 March 2025 are as under:

*Exchange Rate for 31 March 2026, 1 USD = ' 94.65, 1 DIRHAM = ' 25.20

**Exchange Rate for 31 March 2025, 1 USD = ' 85.42, 1 DIRHAM = ' 23.25, 1 QAR = ' 23.45

Refer note 44 for sensitivity analysis.

56 Summary of quarterly statements to banks

The Company is regular in submission of monthly statements of current assets with banks for the borrowings sanctioned
against security of such assets.

The particulars of securities provided and amounts reported in the quarterly statements are in accordance with terms of
sanction for borrowings with respective banks.

The above information has been determined to the extent information available with the Company, which has been relied upon
by the auditors.

Note: Following are the nature of reconciling items between amounts reported as per quarterly statements and amounts as per
books of accounts

a. Inventories - adjustments on account of sales returns and provision for slow moving/ non-moving items

b. Trade receivables - on account of exclusion of related party balances, and adjustments related to provision for sales
returns/ discounts; and

c. Trade payables - on account of exclusion of payables towards royalty and expenses accrual other than creditors for
printing and purchase of books.

Reasons for variance

a. Decreased profitability/earnings in the current year.

b. Increased working capital in the current year.

58 Other statutory information

(i) No proceedings have been initiated or are pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) The Company does not have transactions with companies struck-off from Register of Companies.

(iii) There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person or entity, 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.

(vi) The Company has not received any funds from any person or entity, 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.

(vii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).

(viii) The Company is not declared wilful defaulter by any bank or financial institution or government or any government
authority.

59 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of
the Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies,
which uses accounting software for maintaining its books of account, shall use only such accounting software which has a
feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account
along with the date when such change were made and ensuring that the audit trail cannot be disabled.

During the current year, the audit trail (edit logs) feature for any direct changes made at the database level was not enabled for
the accounting software used for maintenance of books of account. However, the audit trail (edit log) at the application level
for the accounting software were operating for all relevant transactions recorded in the software. Furthermore, the audit trail
has been preserved by the Company as per the statutory requirements for record retention.