1 BASIS OF PREPARATION
The Balance Sheet as at March 31, 2025, and March 31, 2024 and the Statement of Profit and Loss, Statement of
Changes in Equity and Statement of Cash Flows for the year ended March 31, 2025 and March 31, 2024 and
accompanying annexures to financial statements
The financial statements have been prepared in accordance with IND AS notified under the Companies (Indian
Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment)
Rules, 2016.
The financial statements are prepared on going concern basis under the historical cost convention except the
following
• Certain financial assets and liabilities that are majored at fair value.
All assets and liabilities have been classified as current or non-current in accordance with the operating cycle
criteria set out in IND AS 1 and Schedule III to the Companies Act, 2013.
Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable
accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
All expenses and incomes to the extent ascertainable with reasonable certainty are accounted for on accrual
basis. All taxes, duties and cess etc. paid on purchases have been charged to the Statement of Profit and Loss
except such taxes, duties and cess, which are subsequently recoverable with reasonable certainty from the
taxing authorities.
ACCOUNTING POLICIES:
This note provides a list of the significant accounting policies adopted in the preparation of the standalone
Financial Statements. These policies have been consistently applied to all the years presented, unless otherwise
stated.
i. Functional and Presentation Currency
Items included in the standalone financial statements are measured using the currency of the
primary economic environment in which the Company operates (‘the functional currency’). The
standalone financial statements are presented in Indian rupee (INR), which is ADCOUNTY MEDIA
INDIA LIMITED functional and presentation currency.
ii. Transactions and Balances
Foreign currency transactions are translated into the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement
of such transactions and from the translation of monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are generally recognised in profit or loss.
Foreign exchange gains and losses are presented in the Statement of Profit and Loss on a net basis
within other income.
Operating Segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker.
The Board of Directors assesses the financial performance and position of the Company and makes strategic
decisions and has been identified as chief operating decision maker (CODM).
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that
reflects the consideration expected to be received in exchange for those products or services. Revenue is
measured at the fair value of the consideration received or receivable. Amount disclosed as revenue are
exclusive of goods and service tax, net of returns, trade allowances and rebates.
Revenue is recognized when the Goods/ Services are delivered to customers.
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based
on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences.
Tax expense comprises current and deferred tax. Current and deferred tax is recognised in profit or loss except
to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case,
the tax is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation and considers whether it is probable
that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either
based on the most likely amount or the expected value, depending on which method provides a better
prediction of the resolution of the uncertainty.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the standalone financial statements. Deferred
income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction
that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the
reporting period and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on
a net basis, or to realise the asset and settle the liability simultaneously.
As a Lessee
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset
is available for use by the Company. Contracts may contain both lease and non-lease components. The
Company allocates the consideration in the contract to the lease and non-lease components based on their
relative stand- alone prices. However, for leases of real estate for which the Company is a lessee, it has elected
not to separate lease and non-lease components and instead accounts for these as a single lease component.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include
net present value of the following lease payments:
• Variable lease payments that are based on an index or a rate, initially measured using the index or rate
as at the commencement date
• Amounts expected to be payable by the Company under residual value guarantees
• The exercise price of a purchase option if the Company is reasonably certain to exercise that option, and
• Payments of penalties for terminating the lease, if the lease term reflects the Company exercising that
option.
Lease payments to be made under reasonably certain extension options are also included in the measurement
of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot
be readily determined, which is generally the case for lease in the Company, the lessee’s incremental borrowing
rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain
an asset of similar value to the right-of-use asset in similar economic environment with similar terms, security
and conditions.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
Right-of-use assets are measured at cost comprising the following:
• The amount of the initial measurement of lease liability
• Any lease payments made at or before the commencement date less any lease incentives received
• Any initial direct costs, and
• Restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a
straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life.
Payments associated with short-term leases of equipment and all leases of low value assets are recognised on
a straight-line basis as an expense in profit or loss. Short term leases are leases with a lease term of twelve
months or less.
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs
of disposal and value in use. For the purposes of assessing impairment, assets are compared at the lowest levels
for which there are separately identifiable cash inflows which are largely independent of the cash inflows from
other assets or group of assets (cash-generating units). Non-financial assets that suffered an impairment are
reviewed for possible reversal of the impairment at the end of each reporting period.
For the purpose of presentation in the cash flow statement, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, other highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings
in current liabilities in the balance sheet.
Other Bank Balances
Other bank balances consist of term deposits with banks, which have original maturities of more than three
months. Such assets are recognised and measured at amortised cost (including directly attributable transaction
cost) using the effective interest method, less impairment losses, if any.
Trade receivables are amounts due from customers for goods/services sold in ordinary course of business.
T rade receivables are recognised initially at the amount of consideration that is unconditional. The Company
holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them
subsequently at amortised cost using effective interest method, less loss allowance.
(i) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and
- those measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in the statement of profit and loss or
other comprehensive income. For investments in equity instruments, this will depend on whether the Company
has made an irrevocable election at the time of initial recognition to account for the equity investment at fair
value through other comprehensive income (FVOCI).
The Company reclassifies debt investments when and only when its business model for managing those assets
changes.
(ii) Recognition
Regular way purchases and sales of financial assets are recognised on trade date, on which the Company
commits to purchase or sale the financial asset.
(iii) Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the
financial asset. T ransaction costs of financial assets carried at fair value through profit or loss are expensed in
profit or loss.
Debt Instruments
Subsequent measurement of debt instruments depends on the Company’s business model for managing the
asset and the cash flow characteristics of the asset. There are three measurement categories into which the
Company classifies its debt instruments:
- Amortised Cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost.
Interest income from these financial assets is included in other income using the effective interest rate
method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented
in other income or other expenses. Impairment losses are presented as separate line item in the
statement of profit and loss.
- Fair Value Through Other Comprehensive Income (FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely
payments of principal and interest, are measured at fair value through other comprehensive income
(FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of
impairment gains or losses, interest revenue and foreign exchange gains and losses which are
recognised in the statement of profit and loss. When the financial asset is derecognised, the cumulative
gain or loss previously recognised in OCI is reclassified from equityto the statement of profit and loss
and recognised in other income. Interest income from these financial assets is included in other
income using the effective interest rate method. Foreign exchange gain and losses are presented in
other income and impairment expenses are presented as separate line item in statement of profit and
loss.
- Fair Value Through Profit or Loss: Assets that do not meet the criteria for amortised cost or FVOCI are
measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently
measured at fair value through profit or loss and is not part of a hedging relationship is recognised and
presented net in the statement of profit and loss within other income or other expenses in the period
in which it arises. Interest income from these financial assets is included in other income.
Investments in Mutual Funds and Equity Instruments
Investment in mutual funds and equity instruments are classified as fair value through profit or loss as they are
not held within a business model whose objective is to hold assets in order to collect contractual cash flows and
the contractual terms of such assets do not give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding. Where the Company’s management has elected
to present fair value gains and losses on equity investments in other comprehensive income, there is no
subsequent reclassification of fair value gains and losses to the statement of profit and loss. The Company
makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and
is irrevocable. Dividends from such investments are recognised in profit or loss as other income when the
Company’s right to receive payments is established.
(iv) Impairment of Financial Assets
The Company assesses on a forward-looking basis the expected credit losses associated with its assets carried
at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether
there has been a significant increase in credit risk. Note 45 details how the Company determines whether there
has been a significant increase in credit risk.
For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(v) Derecognition of Financial Assets
A financial asset is derecognised only when
- The Company has transferred the rights to receive cash flows from the financial asset or
- retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.
Where the Company has transferred an sset, the Company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where
the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the
financial asset is not derecognised.
Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of
the financial asset. Where the Company retains control of the financial asset, the asset is continued to be
recognised to the extent of continuing involvement in the financial asset.
(vi) Income
Recognition Interest Income
Interest income from financial assets at fair value through the profit or loss is disclosed as interest income within
other income. Interest income on financial assets at amortised cost and financial assets at FVOCI is calculated
using effective interest method is recognised in the statement of profit and loss as part of other income. Interest
income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset
except for financial assets that subsequently become credit impaired.
Dividends
Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable
that the economic benefits associated with the dividend will flow to the Company, and the amount of the
dividend can be measured reliably.
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency
or bankruptcy of the Company or the counterparty.
Land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost
less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the
items. Cost comprises the purchase price, borrowing costs if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and
the cost of the item can be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognized when replaced. All other repairs and maintenance are charged to Statement of
profit and loss during the reporting period in which they are incurred.
Depreciation Methods, Estimated Useful Lives and Residual Value
Depreciation is calculated using the written down value method to allocate the cost of the assets, net of their
residual values, over their estimated useful lives as follows:
The useful lives have been determined based on technical evaluation done by the management's expert which
are higher than those specified by Schedule II to the Companies Act, 2013, in order to reflect the actual usage of
the assets. The residual values are not more than 5% of the original cost of the asset.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included
in Statement of profit and loss within other income or other expenses.
Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet
date are classified as capital advances under non-current assets.
Capital work-in-progress excluding capital advances includes property, plant and equipment under
construction and not ready for intended use as on Balance Sheet date.
B) TRADE AND OTHER PAYABLES
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due
within twelve months after the reporting period. They are recognised initially at their fair value and
subsequently measured at amortised cost using the effective interest method.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. Borrowings are classified as current
liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve
months after the reporting period.
C) BORROWING COST
General and specific borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset
for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get
ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Other borrowing costs are expensed in the period in which they are incurred.
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