(a) Background
Aspire & Innovative Advertising Limited (formerly known
as Aspire & Innovative Advertising Private Limited (CIN-
L52601DL2017PLC321445) was incorporated in India on 31st
July, 2017 as a Private Company (U52601DL2017PTC321445)
mainly to produce and / or sell all kind of electronic
equipment's, home appliances, kitchen appliances /
utensils, precious metals and stones, providing services
like online or offline advertising, transportation,
software development, warehousing, business support,
training, manpower supply, commission agent etc. The
Company is converted to Public Company vide approval
from MCA dt. 12th December 2023 and consequently
the name of Company was changed from "Aspire &
Innovative Advertising Private Limited" to "Aspire &
Innovative Advertising Limited" vide a fresh certificate of
incorporation consequent upon conversion from private
company to public company dated 12th December, 2023
issued by the Registrar of Companies, Delhi, bearing CIN
U52601DL2017PLC321445. The Company is listed on Stock
Exchange in India in FY 2024-25. Registrar of Companies,
Delhi issued fresh CIN upon Listing of the Company
bearing CIN L52601DL2017PLC321445.
The company is domiciled in India and has its registered
office at C-4 Baldev Park, Shahdara, Delhi-110051 and
corporate office at Plot No. 52, Sector 44, Gurugram,
Haryana-122003. The Company has paid up share capital
of INR 1,517.80 Lakhs divided into 15,178,000 equity shares
of INR 10 each.
(b) Basis for preparation of Financial Statement
The financial statements are prepared under historical
cost convention on an accrual basis in accordance with
the generally accepted accounting principles in India
("Indian GAAP") and comply in all material respects with
the Accounting Standards specified under Section 133 of
the Companies Act, 2013 ('the Act'), read with Rule 7 of
the Companies (Accounts) Rules, 2014 (as amended), and
with the relevant provisions of the Act, pronouncements
of The Institute of Chartered Accountants of India ('ICAI').
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
Act. Based on the nature of business, the Company has
ascertained its operating cycle as up to twelve months
for the purpose of current and non-current classification
of assets and liabilities.
All amounts in Financial Statements are presented in
Indian Rupees, the functional currency of the Company,
unless otherwise specified.
(c) Use of estimates
The preparation of financial statements requires
management to make judgments, estimates and
assumptions, that affect the application of accounting
policies and the reported amounts of assets and liabilities
and disclosures of contingent liabilities at the date of
these financial statements and the reported amounts of
revenues and expenses for the years presented. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and future periods affected.
(d) Property, Plant and Equipment's and Intangible
Assets
Fixed assets are stated at cost, less accumulated
depreciation and impairment losses if any. Cost comprises
the purchase price and any attributable cost of bringing
the asset to its working condition for its intended use.
A) Depreciation
In respect of fixed assets (Other than freehold
land and capital work in progress) acquired during
the year depreciation/amortization is charged on
the Written Down Value (WDV) Method over the
estimated useful life of the assets.
Amortization of intangible assets provided over
the life of intangible Assets on Written Down Value
(WDV) Method.
Residual Value for Tangible and Intangible Assets are
taken as 5% of the acquisition cost.
Useful life of Assets is determined by the
management by internal technical assessment.
Depreciation on additions to fixed assets is provided
on pro-rata basis from the date of acquisition of
the assets. Depreciation on sale/deduction from
fixed assets is provided for up to the date of sale/
deduction.
Individual assets costing INR 0.05 Lakhs or less are
depreciated fully in the year of purchase.
B) Tangible fixed assets
Fixed assets are carried at cost less accumulated
depreciation and impairment losses, if any. The
cost of fixed assets includes interest on borrowings
attributable to acquisition of qualifying fixed assets
up to the date the asset is ready for its intended use
and other incidental expenses incurred up to that
date. Exchange differences arising on restatement /
settlement of long-term foreign currency borrowings
relating to acquisition of depreciable fixed assets
are adjusted to the cost of the respective assets
and depreciated over the remaining useful life of
such assets. Subsequent expenditure relating to
fixed assets is capitalised only if such expenditure
results in an increase in the future benefits from
such asset beyond its previously assessed standard
of performance.
Fixed assets retired from active use and held for sale
are stated at the lower of their net book value and
net realisable value and are disclosed separately in
the Balance Sheet.
C) Intangible assets
Intangible assets are carried at cost less accumulated
amortisation and impairment losses, if any. The
cost of an intangible asset comprises its purchase
price, including any import duties and other taxes
(other than those subsequently recoverable from
the taxing authorities), and any directly attributable
expenditure on making the asset ready for its
intended use and net of any trade discounts and
rebates. Subsequent expenditure on an intangible
asset after its purchase / completion is recognised
as an expense when incurred unless it is probable
that such expenditure will enable the asset to
generate future economic benefits in excess of its
originally assessed standards of performance and
such expenditure can be measured and attributed
to the asset reliably, in which case such expenditure
is added to the cost of the asset.
(e) Impairment of assets
The carrying amounts of assets are reviewed at each
balance sheet date if there is any indication of impairment
based on internal / external factors. An impairment loss
is recognised wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount
is greater of the asset's net selling price and value in use.
In assessing value in use, the estimated future cash flows
are discounted to their present value at the weighted
average cost of capital. After impairment, depreciation
is provided on the revised carrying amount of the asset
over its remaining useful life.
(f) Leases
Leases in which a substantial portion of the risks and
rewards of ownership are retained by the lessor are
classified as operating leases. Payments and receipts
under such leases are recognised to the Statement of
Profit and Loss on a straight-line basis over the term
of the lease unless the lease payments to the lessor
are structured to increase in line with expected general
inflation to compensate for the lessor's expected
inflationary cost increases, in which case the same are
recognised as an expense in line with the contractual
term.
Leases are classified as finance leases whenever the
terms of the lease transfer substantially all the risks and
rewards incidental to ownership to the lessee.
(g) Investments
Investments that are readily realizable and intended to
be held for not more than a year are classified as current
investments. All other investments are classified as long¬
term investments. Current investments are carried at
lower of cost and fair value determined on an individual
investment basis. Long-term investments are carried at
cost. However, provision for diminution in value is made
to recognize a decline other than temporary in the value
of the investments.
(h) Borrowing Cost
Borrowing costs that are directly attributable to the
acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A qualifying
asset is one that necessarily takes substantial period of
time to get ready for its intended use. All other borrowing
costs are charged to the Statement of Profit and Loss in
the period in which they are incurred.
(i) Inventories
Inventories are valued at the lower of cost and net
realisable value. Cost is computed on FIFO basis. Cost of
finished goods and work-in-progress include all costs of
purchases, conversion costs and other costs incurred
in bringing the inventories to their present location
and condition. The net realisable value is the estimated
selling price in the ordinary course of business less the
estimated costs of completion and estimated costs
necessary to make the sale.
(j) Revenue recognition
Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company and
the revenue can be reliably measured. Income has been
recognized as per Accounting Standard-9.
(k) Foreign currency transactions
(i) Initial Recognition: -
Foreign currency transactions are recorded in
the reporting currency, by applying to the foreign
currency amount the exchange rate between
the reporting currency and the foreign currency
at the date of the transaction or at rates closely
approximate at the date of transaction.
(ii) Conversion: -
Foreign currency monetary items are reported using
the closing rate. 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
(iii) Exchange Differences: -
Exchange differences arising on the settlement of
monetary items or on reporting monetary items of
company at rates different from those at which they
were initially recorded during the year, or reported
in previous financial statements, are recognized
as income or as expenses in the year in which they
arise except those arising from investments in non¬
integral operations.
(iv) Forward Exchange Contracts: -
Forward Exchange Contracts not intended for
trading or speculation purposes. The premium
or discount arising at the inception of forward
exchange contracts is amortized as expense or
income over the life of the contract. Exchange
differences on such contracts are recognized in the
statement of profit and loss in the year in which the
exchange rates change. Any profit or loss arising
on cancellation or renewal of forward exchange
contract is recognized as income or as expense for
the year.
(l) Employee benefits
Employee State Insurance
The Employees State Insurance is a defined contribution
plan and contribution to the same are expensed in
the Profit & Loss Account during the year in which the
services are rendered and measured at cost.
Provident fund
A retirement benefit in the form of provident fund
scheme is a defined contribution and the contribution is
charged to the statement of profit and loss of the year
when the contribution to the respective fund is due.
Gratuity
Gratuity is a post-employment defined benefit plan.
Short-term and long-term liability recognized in the
Balance Sheet represents the present value of the
defined benefit obligation at the reporting date less the
fair value of plan assets. Gratuity is provided for on the
basis of an actuarial valuation on projected unit credit
method at the end of each financial year. Actuarial gains
and losses are recognized in full in the statement of
profit and loss for the period in which they occur.
Compensated absences
Short-term and long-term compensated absences
are provided for on the basis of actuarial valuation on
projected unit credit method. Actuarial gains and losses
are recognized in full in the statement of profit and loss
for the period in which they occur.
Bonus
Short Term Employee Benefits like bonus have been paid
in exchange for the services rendered by employees are
recognised undiscounted during the period for which the
employee renders services.
(m) Income taxes
Tax expense for the year comprises of current and
deferred tax. Current income tax is measured at the
amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961 enacted
in India as on the Balance Sheet date as applicable to
current financial year and any adjustment to taxes
in respect of previous years. Interest expenses and
penalties, if any, related to income tax are included other
expenses. Interest Income, if any, related to Income tax
is included in Other Income.
Deferred income taxes reflect the impact of current
year timing differences between taxable income and
accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is recognised in respect of temporary
differences between the carrying amount of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
A deferred tax liability is recognised based on the
expected manner of realisation or settlement of the
carrying amount of assets and liabilities, using tax rates
enacted, or substantively enacted, by the end of the
reporting period. Deferred tax assets are recognised
only to the extent that it is probable that future taxable
profits will be available against which the asset can
be utilised. Deferred tax assets are reviewed at each
reporting date and reduced to the extent that it is no
longer probable that the related tax benefit will be
realised.
Current tax assets and current tax liabilities are offset
when there is a legally enforceable right to set off the
recognised amounts and there is an intention to settle
the asset and the liability on a net basis. Deferred tax
assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off current tax assets
against current tax liabilities; and the deferred tax
assets and the deferred tax liabilities relate to income
taxes levied by the same taxation authority.
(n) Earnings per Share (EPS)
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting preference dividends and
attributable taxes) by the weighted average number of
equity shares outstanding during the period.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number
of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.
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