2. Significant Accounting Policies

A. Basic of Preparations

i. Statement of Compliance

These Financial Statements have been prepared in accordance with Indian
Accounting Standards ('Ind AS’) as notified by the Ministry of Corporate Affairs
pursuant to section 133 of the Companies Act, 2013 ('Act') read with Companies
(Indian Accounting Standards) Rules, 2015 as amended and other relevant
provisions of the Act and rules made thereunder.

ii. Basis of Measurement

The financial statements have been prepared on an accrual system, based on the
principle of going concern and under the historical cost convention, unless
otherwise stated. The accounting policies are applied consistently to all the periods
presented in the Financial Statements except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting standard requires
a change in the accounting policy hitherto in use.

iii. Use of Estimates and Judgements

The preparation of Financial Statements in conformity with Ind AS requires
management to make judgments, estimates and assumptions in the application of
accounting policies that affects the reported amounts of assets, liabilities etc. 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,
with the differences between the same being recognized in the period in which the
results are known or materialize.

Continuous evaluation is done on the estimation and judgments based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable. Revisions to accounting estimates are recognised in
Financial Statements in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision & Future period if revision
affects both current and future periods.

The areas involving critical estimates or judgements are:

a. Impairment of Financial Assets such as Trade Receivable.

b. Impairment of Non-Financial Assets.

c. Estimates of Tax Expenses and Liability.

d. Revenue recognitions.

B. Current and Non-Current Classification

The Company presents assets and liabilities in its Balance Sheet based on current versus
non-current classification.

An asset is classified as current when it is:

i. Expected to be realized or intended to sold or consumed in normal operating cycle,

ii. Held primarily forthe purpose of trade,

iii. Expected to be realized on demand or within twelve months after the reporting date,
or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when:

i. it is expected to be settled in normal operating cycle,

ii. it is held primarily for the purpose of trade,

iii. it is due to be settled on demand or within twelve months after the reporting date,
and

iv. there is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting date.

The Company classifies all other liabilities as non-current. Deferred tax assets and
liabilities are classified as Non-Current Assets and Liabilities.

C. Revenue Recognition

i. Revenue is measured at the fair value of the consideration received or receivable.
The Company recognises revenue when the amount of revenue can be reliably
measured, it is probable that future economic benefit will flow to the entity. The
Company bases its estimates on historical results, taking into consideration the
type of customer, the type of transaction and the specific of each agreement.

ii. Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the effective interest rate applicable.

iii. Profits / Losses from share trading is determined on the basis of the “First In First
Out” method.

D. Income Taxes

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 and to unused tax losses, if
any.

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 in the country where the Company
generates taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities. 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 financial statements.

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, unused tax
losses and carry forward tax credits only if it is probable that future taxable amounts will be
available to utilise those temporary differences, tax losses and tax credits.

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.

Current and deferred tax is recognised in the Statement of Profit and 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.

E. Impairment of Non-Financial Assets - Property, Plant & Equipment

The Company assesses at each reporting dates as to whether there is any indication that
any property, plant and equipment may be impaired. If any such indication exists the
recoverable amount of an asset is estimated to determine the extent of impairment, if any.

An impairment loss is recognized in the Statement of the Profit and Loss to the extent,
asset's carrying amount exceeds its recoverable amount. The recoverable amount is
higher of an asset's fair value less cost of disposal and value in use. Value in use is based
on the estimated future cash flows, discounted to their present value using pre-tax
discount rate that reflects current market assessments of the time value of money and risk
specific to the assets.

The impairment loss recognised in prior accounting period is reversed if there has been a
change in the estimate of recoverable amount.

F. Inventory

Inventories are measured at the lower of cost and net realisable value after providing for
obsolescence, if any. 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.

G. Cash and Cash Equivalent

Cash and cash equivalents include cash in hand, deposits held at call with banks, other
short term highly liquid investments which are readily convertible into known amounts of
cash and are subject to insignificant risk of changes in value. Bank overdrafts are shown
within borrowings in current liabilities on the balance sheet.

H. Cash Flow Statement

Cash flow are reported using Indirect method, where by net profit before tax is adjusted for
the effects of transaction of non-cash nature any deferrals or accruals of past or future
operating cash receipts or payments and items of income and expenses associates with
investing or financing activity. The Cash flows from operating, financing and investing
activity is shown separately.

I. Financial Instruments

Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair value through profit or loss
are recognised immediately in profit or loss.

Financial assets and financial liabilities are offset against each other and the net amount
reported in the balance sheet if, and only if, there is a currently enforceable legal right to
offset the recognized amounts and there is an intention to settle on a net basis, or to realize
the assets and settle the liabilities simultaneously.

i. Financial Assets

Financial assets are divided into the following categories:

a. financial assets carried at amortised cost

b. financial assets at fair value through other comprehensive income

c. financial assets at fair value through profit and loss;

Financial assets are assigned to the different categories by management on initial
recognition, depending on the nature and purpose of the financial assets. The
designation of financial assets is re-evaluated at every reporting date at which a
choice of classification or accounting treatment is available.

Financial Assets like Investments in Subsidiaries are measured at Cost as allowed
by Ind-AS 27 - Separate Financial Statements and hence are not fair valued.

ii. Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a
business model whose objective is to hold the asset in order to collect contractual
cashflows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding. These are non-derivative financial assets that are
not quoted in an active market. Loans and receivables (including trade and other
receivables, bank and cash balances) are measured subsequent to initial
recognition at amortized cost using the effective interest method, less provision for
impairment. Any change in their value through impairment or reversal of
impairment is recognized in the Statement of profit and loss.

In accordance with Ind AS 109: Financial Instruments, the Company recognizes
impairment loss allowance on trade receivables and content advances based on
historically observed default rates. Impairment loss allowance recognized during
the financial year is charged to Statement of profit and loss.

iii. Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income are non¬
derivative financial assets held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets and
the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount
outstanding. Fair value movements are recognized in the other comprehensive
income (OCI). However, the Company recognizes interest income, impairment
losses in the statement of profit and loss.

iv. Financial assets atfair value through profit or loss

A financial asset which is not classified in any of the above categories are
subsequently fair valued through profit or loss. It includes non-derivative financial
assets that are either designated as such or do not qualify for inclusion in any of the
other categories of financial assets. Gains and losses arising from investments
classified under this category is recognized in the Statement of profit and loss when
they are sold or when the investment is impaired.

v. Impairment of Financial Assets

In the case of impairment, any loss previously recognized in other comprehensive
income is transferred to the Statement of profit and loss. Impairment losses
recognized in the Statement of profit and loss on equity instruments are not
reversed through the Statement of profit and loss. Impairment losses recognized
previously on debt securities are reversed through the Statement of profit and loss
when the increase can be related objectively to an event occurring after the
impairment loss was recognized in the Statement of profit and loss.

When the Company considers that fair value of financial assets can be reliably
measured, the fair values of financial instruments that are not traded in an active
market are determined by using valuation techniques. The Company applies its
judgment to select a variety of methods and make assumptions that are mainly
based on market conditions existing at each balance sheet date. Equity
instruments measured at fair value through profit or loss that do not have a quoted
price in an active market and whose fair value cannot be reliably measured are
measured at costless impairment at the end of each reporting period.

An assessment for impairment is undertaken at least at each balance sheet date.

vi. De-recognition of Financial Assets

Afinancial asset is derecognized only where the contractual rights to the cash flows
from the asset expire or the financial asset is transferred and that transfer qualifies
for derecognition. Afinancial asset is transferred if the contractual rights to receive
the cash flows of the asset have been transferred or the Company retains the
contractual rights to receive the cash flows of the asset but assumes a contractual
obligation to pay the cash flows to one or more recipients. Afinancial asset that is
transferred qualifies for derecognition if the Company transfers substantially all the
risks and rewards of ownership of the asset, or if the Company neither retains nor
transfers substantially all the risks and rewards of ownership but does transfer
control of that asset.

vii. Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets
of an entity after deducting all of its liabilities. Equity instruments issued by the
Company is recognised at the proceeds received, net of direct issue costs.

viii. Financial Liabilities

Financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument. Financial liabilities are initially measured
at the amortised cost unless at initial recognition they are classified as financial
liabilities affair value through profit or loss.

ix. Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR
method. Financial liabilities carried at fair value through profit or loss are measured
at fair value with all changes in fair value recognised in the Statement of Profit and
Loss.

x. De-recognition

A financial liability is derecognized only when the obligation is extinguished, that is,
when the obligation is discharged or cancelled or expires. Changes in liabilities' fair
value that are reported in profit or loss are included in the Statement of profit and
loss within finance costs orfinance income.

J. Property, plant and equipment and depreciation

i. Initial Recognition and Measurement

Property, plant and equipment are stated at cost, net of recoverable taxes, trade
discount and rebates less accumulated depreciation and impairment losses, if any.
Such cost includes purchase price, borrowing cost and any cost directly attributable
to bringing the assets to its working condition for its intended use.

If significant parts of an item of property, plant and equipment have different useful
lives, then they are accounted for as separate items (major components) of
Property, plant and equipment.

Capital work-in-progress comprises cost of property, plant and equipment and
related expenses that are not yet ready for their intended use at the reporting date.
Advances given towards acquisition of property, plant and equipment outstanding
at each balance sheet date are disclosed as Capital Advances under other non¬
current assets.

Gains or losses arising from derecognition of a property, plant and equipment are
measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognised in the Statement of Profit and Loss when
the asset is derecognised.

ii. Subsequent Cost

Subsequent costs are included in the asset's carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the entity and the cost can be
measured reliably. All other repairs and maintenance are charged to the Statement
of Profit and Loss during the period in which they are incurred.

iii. Depreciation/amortisation on property, plantand equipment

Depreciation on all the assets have been provided at the rates and in the manner
prescribed in Schedule II of the Acton Written Down Value Method. Depreciation on
additions to assets or on sale / disposal of assets is calculated on the basis of Pro
rata basis from date of such addition or up to the month of such sale / scrapped, as
the case may be.

K. 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.