1. (I) GENERAL INFORMATION Jagran Prakashan Limited ("the Company"or "JPL") is engaged primarily in printing and publication of Newspaper and Magazines in India. The other activities of the company comprise outdoor advertising business, event management services and digital business. The Company is a public limited company and is listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) (II) SIGNIFICANT ACCOUNTING POLICIES a) Accounting Convention These financial statements have been brpared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act 2013 read with Rule 7 of the Companies (Accounts) Rules 2014, till the Standards of Accounting or any addendum thereto are brscribed by the Central Government in consultation and recommendation of the National Finance Reporting Authority, the existing Accounting Standards notified under Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been brpared to comply in all material respects with accounting standards notified under section 211(3C) [Companies (Accounting Standards) Rules 2006 as amended] and other relevant provisions of the Companies Act, 2013. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has considered its operating cycle as 12 months for the purpose of current and non-current of classification of assets and liabilities between. b) Tangible and Intangible Assets i. Tangible assets and Intangible assets are recorded by the Company at the cost of acquisition or construction. Tangible assets are debrciated on pro-rata basis on the Written-Down Value method over the estimated useful lives of the assets brscribed in Schedule II to the Companies Act 2013. ii. Assets individually costing less than Rs. 5,000 each are fully debrciated in the year of acquisition. In respect of assets acquired, sold or discarded during the year, debrciation is provided on pro-rata basis for the period during which each asset was in use. iii. Debrciation is provided on composite cost of Land and Building wherever cost of Land is not separately available. In these cases, the said composite cost is capitalised under Building. iv. Leasehold land and Leasehold improvements are amortised on a straight-line basis over the total period of lease including renewals. v. Losses arising from the retirement of and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss. vi. Title Dainik Jagran has been amortized on straight line basis over its estimated useful life. vii. Computer Software are stated at their cost of acquisition net of accumulated amortisation. These are amortised on straight line basis over their estimated useful life of three years. viii. Items of fixed assets that have been retired from the active use and are held for disposal are stated at lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the Statement of profit and loss. Investments I nvestments that are readily realisable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments. Long term investments are stated at cost of acquisition inclusive of expenditure incidental to acquisition. A provision for diminution is made to recognise a decline, other than temporary in the value of long term investments, such reduction being determined and made for each investment individually. Current investments are stated at lower of cost and fair value determined on an individual basis. f) Consideration for barter/exchange transactions is exchanged in accordance with the terms of the contract to formalise the arrangement. d) Inventories I nventories are valued at cost or net realisable value, whichever is lower. Cost of raw materials and stores is determined on first-in-first-out basis and cost of finished goods is determined on direct cost basis. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. e) Foreign Currency Transactions On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in the brvious financial statements, are recognized as income or as expense in the year in which they arise. As at the reporting date, non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using exchange rates that existed when values were determined. Foreign Currency Monetary Items outstanding as at Balance Sheet date are valued using the conversion rate brvailing as at Balance Sheet date and the exchange differences on restatement are recognised as income or as expense in the Statement of Profit and Loss. The Company does not have any derivative transactions. f. Revenue Recognition Revenues are recognized to the extent that it is probable that economic benefit will flow to the Company and revenue can be reliably measured. It is accounted for net of trade discounts. Specifically the following basis are adopted in respect of various sources of revenues of the Company:- i. Advertisement Revenue from sale of advertisement space is recognized, as and when the relevant advertisement is published. Revenue/Expense against all Barter-Contracts is recognised at the time of actual performance of the contract to the extent of performance completed by either party against its part of contract. ii. Sale of Publications Revenue from sale is recognised on dispatch, net of credits for unsold copies, which coincides with transfer of significant risks and rewards. iii. Others Revenue from Outdoor activities is recognised as and when the relevant advertisement is displayed. Revenue from Event Management services is recognised when the event is completed. Revenue from printing job work is recognised on delivery of goods after completion as set out in the relevant contracts. Claims from insurance companies/ Interest on income tax refunds/ Government department are recognised as and when amount receivable can be reasonably determined. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend income is recognised if the right to receive payment is established by the Balance Sheet date. g) Employee Benefits Short term employee benefits are recognised in the period during which the services have been rendered. The Company's contribution to Employee Provident Fund, Employee's State Insurance Fund and Employee's Pension Scheme 1995 are charged to revenue. These are defined contribution plans and the Company deposits these amounts with the fund administered and managed by the provident fund authorities. The Company does not carry any further obligations, apart from the contributions made on monthly basis. The Company has Defined Benefit plans namely leave encashment and gratuity for all employees, the liability for which is determined on the basis of an actuarial valuation at the end of the year using the projected unit credit method. Every employee is entitled to benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service using the projected unit credit method. Gratuity Fund is recognised by the income tax authorities and is administered and managed by the Life Insurance Corporation of India ("LIC"). Termination benefits are recognised as an expense immediately. Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions are recognised immediately in the Statement of Profit and Loss as income or expense. Taxation i. Tax expense comprises current tax and deferred tax. ii. Current tax comprises Company's tax liability for the current financial year as well as additional tax paid/adjusted, if any, during the year in respect of earlier years on receipt of demand from the authorities. For computation of taxable income under the Income Tax Act, 1961, cash basis of accounting has been adopted and consistently followed by the Company. iii. Deferred tax assets and liabilities are computed on the timing differences at the Balance Sheet date using the tax rate and tax laws that have been enacted or substantively enacted by the Balance sheet date. Deferred tax assets are recognised subject to consideration of prudence based on management estimates of reasonable certainty that sufficient taxable income will be available in the future periods against which such deferred tax assets can be realised. Unrecognised deferred tax assets of earlier years are re-assessed and recognised to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realised. iv. Minimum Alternative tax ("MAT") credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period i) Lease Assets acquired under finance leases are recognised as fixed assets. Liability is recognised at the lower of the fair value of the leased assets at inception of the lease and the brsent value of minimum lease payments. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability and charge to the Statement of profit and loss. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to Statement of Profit and Loss on a straight line basis over the period of the lease. In case of non-cancellable operating leases, the total rent payable including future escalations till the expiry of lease is charged equally to Statement of profit and loss over the period of lease including renewals. j) Impairment of Assets At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists, the impairment loss is recognised for the amount by which the assets carrying value exceeds its recoverable amount. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their brsent value using a brtax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. k) Provisions and Contingent Liability i. The Company creates a provision when there is a brsent obligation arising as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are measured at the best estimate of the expenditure required to settle the brsent obligation at the balance sheet date and are not discounted to its brsent value. ii. A disclosure for a contingent liability is made when there is a brsent obligation or arising as a result of past event that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made. l) Earnings Per Share Earnings Per Share ("EPS") are computed on the basis of net profit after tax for the year. The number of shares used in computing basic EPS is weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, since there are no dilutive equity shares. m) Segment Information The Company is engaged primarily in printing and publication of Newspaper and Magazines in India. The other activities of the company comprise outdoor advertising business, event management services and digital business. However these in the context of the Accounting Standard 17 on Segment Reporting is considered to constitute single reportable business segment and single geographical segment. Accordingly, no separate disclosure for primary or secondary segments is given. n) Cash Flow Statement Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of non-cash nature. The cash flows from operating, investing and financing activities of the Company are segregated. o) Borrowing Cost p) Cash and Cash Equivalents Borrowing cost attributable to the acquisition or In the cash flow statement, cash and cash construction of fixed asset which take substantial equivalents include cash in hand, demand period of time to get ready for its intended use is deposits with banks, other short-term highly capitalised as part of the cost of that asset. Other liquid investments with original maturities of borrowing costs are recognized as an expense in three months or less. the year in which they are incurred 1. brVIOUS YEAR'S FIGURES HAVE BEEN REGROUPED AND RECLASSIFIED TO CONFORM TO THE CURRENT YEAR'S CLASSIFICATION WHEREVER NECESSARY. For Price Waterhouse Chartered Accountants LLP Firm Registration Number ( 012754N/N500016 ) Chartered Accountants Anurag Khandelwal Partner Membership Number-078571 The notes referred to above form statements. For and on behalf of the Board Mahendra Mohan Gupta Chairman and Managing Director Sanjay Gupta Whole time Director and CEO Sunil Gupta Whole time Director Anurag Khandelwal Shailesh Gupta Whole time Director Satish Chandra Mishra Whole time Director Anita Nayyar Director Anuj Puri Director Devendra Mohan Gupta : Director Dilip Cherian : Director Jayant Davar :: Director R.K. Jhunjhunwala: Director Shailendra Mohan Gupta : Director Vijay Tandon : Director R.K. Agarwal: Chief Financial Officer Amit Jaiswal : Company Secretary Place: New Delhi Date: May 28, 2015 |