MATERIAL ACCOUNTING POLICIES
a Basis of Preparation
These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles
in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies
Act, 2013, as applicable. The financial statements have been prepared under the historical cost convention on
accrual basis.
b Use of estimates
The preparation of financial statements requires the management of the Company to make estimates and
assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent
liabilities as at the date of the financial statements and reported amounts of income and expense during the
year. Examples of such estimates include provisions for doubtful receivables, provision for income taxes, the
useful lives of depreciable Property, Plant and Equipment and provision for impairment. Future results could
differ due to changes in these estimates and the difference between the actual result and the estimates are
recognised in the period in which the results are known / materialise.
c Property, Plant and Equipment
Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs include all
expenses incurred to bring the asset to its present location and condition.
d Depreciation / amortisation
In respect of Property, Plant and Equipment (other than freehold land and capital work-in-progress) acquired
during the year, depreciation/amortisation is charged on a Written down value method so as to write-off the
cost of the assets over the useful lives.
* Based on technical evaluation, the Management believes that the useful lives as given above best represent the
period over which the Management expects to use these assets. Hence, the useful lives for these assets is
different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.
e Leases
Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks
and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease
at lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an
equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a
constant periodic rate of interest on the outstanding liability for each year.
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the
lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement
of profit and loss on a straight-line basis.
f Impairment
At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash
generating unit to determine whether there is any indication that those assets were impaired. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of
impairment. 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 present value using a pre-tax discount rate that reflects the current market assessments of
time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the
statement of profit and loss.
g Investments
Long-term investments and current maturities of long-term investments are stated at cost, less provision for
other than temporary diminution in value.
h Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services are transferred to
the customer at an amount that reflects the consideration entitled in exchange for those goods or services. the
Company is generally the principal as it typically controls the goods or services before transferring them to the
customer.
Rent income and Advertisement income is recorded when the right to receive payment is established.
i Taxation
Current income tax expense comprises taxes on income from operations in India. Income taxpayable in India is
determined in accordance with the provisions of the Income Tax Act, 1961.
Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future
economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal income tax after the tax holiday period. Accordingly, MAT
is recognised as an asset in the balance sheet when the asset can be measured reliably and it is probable that the
future economic benefit associated with it will fructify.
Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income
and accounting income that originate in one period and is likely to reverse in one or more subsequent periods.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these
relate to taxes on income levied by the same governing taxation laws.
j Foreign currency transactions
Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the
transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign
operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and
losses are recognised in the statement of profit and loss. Exchange difference arising on a monetary item that, in
substance, forms part of an enterprise's net investments in a non-integral foreign operation are accumulated in a
foreign currency translation reserve.
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