1. CORPORATE AND OTHER INFORMATION
(a) Signpost India Limited (the "Company") was Incorporated in 2008 as a "Private Limited Company". It got converted
into Public limited company w.e.f. 29th April, 2022. The Company is engaged in business of Advertising in general and
outdoor advertising in various ways and manner including indoor outdoor, newspapers, souvenirs, hoardings, buses,
railways, bus shelters, airport etc. Company's registered office is situated at 126, Jolly Maker Chambers II, Nariman
Point, Mumbai - 400021, and corporate office is situated at 202, Pressman House, 70A, Nehru Road, Near Domestic
Airport Terminal, Vile Parle East, Mumbai- 400099
2 BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES
2.1 Basis of Preparation of Financial Statements
(a) Statement of Compliance: The Standalone Financial Statements have been prepared in accordance with Ind AS and
disclosure thereon comply with requirement of Ind AS, stipulation contained in Schedule III (revised) as applicable
under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014, Companies
(Indian Accounting Standards) Rules 2015 as amended from time to time, pronouncements of ICAI, provisions of the
Companies Act and Rules and guidelines issued by SEBI as applicable.
(b) Basis of Measurement: The financial statements of the Company have been prepared on an accrual basis and under
the historical cost convention except for certain financial instruments. The accounting policies are consistently
applied by the Company to all the period mentioned in the financial statements. The Standalone financial statements
are presented in INR and all values are rounded to the nearest lakhs except when otherwise indicated.
Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current / non-current classification.
An asset is treated as current when it is:
• Expected to be realized or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realized within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period
All other assets are classified as non-current.
A liability is treated as current when it is:
• Expected to be settled in normal operating cycle
• Held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-currents assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.
2.2 Summary of material accounting policies
a) Use of Estimates: The preparation of the financial statements requires the management to make estimate and
assumptions related to financial statements that affect the reported amount of assets and liabilities as at the Balance
Sheet date, reported amount of revenue and expenses for the year and disclosures of contingent liabilities as at the
Balance Sheet date. The estimates and assumptions used in the accounting of Standalone Financial Statements are
based upon the Management's evaluation of the relevant facts and circumstances as at the date of the Standalone
Financial Statements. Actual results could differ from these estimates. Estimates and underlying assumptions
are reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognized in the year in which the
estimates are revised and in any future years affected. Refer Note 3 for details of estimates and judgments.
b) Property, Plant and Equipment: Capital work in progress is stated at cost, net of accumulated impairment loss,
if any. Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment
loss, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long¬
term construction projects if the recognition criteria are met. The cost comprises the purchase price and directly
attributable costs 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 expenditure related to an item of property, plant and equipment is added to its book value only if it
is probable that future economic benefits associated with the item will flow to the Company. All other expenses
on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of
replacing parts, are charged to the statement of profit and loss for the year during which such expenses are incurred.
The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour,
any other costs directly attributable to bringing the item to working condition for its intended use, and estimated
costs of dismantling and removing the item and restoring the site on which it is located.
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal
or when no future economic benefits are expected from its use or disposal. Any gains or losses arising from disposal
of Property, Plant and Equipment are measured as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and loss when the asset is disposed.
c) Investment Property: Property held to earn rentals or/and for capital appreciation or both but not for sale in the
ordinary course of business, or for use in the production or supply of goods or services or for administrative purposes,
are categorized as investment property. Investment property is measured at its cost, including related transaction
costs and where applicable borrowing costs less depreciation and impairment, if any. Subsequent expenditure is
capitalized to the asset's carrying amount only when it is probable that future economic benefits associated with
the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and
maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying
amount of the replaced part is derecognized. The Company depreciates building component of investment property
over 30 years from the date of its capitalization.
Though the Company measures investment property using cost-based measurement, the fair value of investment
property is disclosed in the notes. Fair values are determined based on an evaluation performed by an Independent
Registered Valuer / other valuation method available for use.
Investment properties are derecognized either when they have been disposed off or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.
d) Intangible Assets: Intangible assets acquired separately are measured on initial recognition at cost. Following
initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment
losses, if any. Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working
condition for its intended use. The Company amortizes intangible assets over their estimated useful lives using
written down value method. The estimated useful lives of intangible assets range between 3 to 5 years.
e) Depreciation: Depreciation on Property, Plant and Equipment has been provided on the Written Down Value (WDV)
method in terms of the expected lifespan of assets based on historical experience of management with similar assets
as well as anticipation of future events, which may impact their life as referred to in Schedule II to the Companies
Act, 2013.The residual value and useful life are reviewed annually, and any deviation is accounted for as a change in
estimate.
(ii) In case of certain assets, based on technical evaluation, the Management believes that the useful lives as given
above best represents the period over which 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
(iii) Depreciation
• Residual value of an asset is taken at 5% of the original cost of the asset other than those specified above.
• Depreciation is calculated from the date of put to use
• Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end
and adjusted prospectively, as appropriate
f) Foreign Currency Transactions
Functional and Presentation Currency: Items included in the Standalone Financial Statements are measured
using the currency of the primary economic environment in which the entity operates ('the functional currency').
The Standalone Financial Statements are presented in Indian rupee (INR), which is the Company's functional and
presentation currency.
Transactions and Balances: On initial recognition, all foreign currency transactions are recorded by applying to the
foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of
the transaction. Gains/Losses arising out of fluctuation in foreign exchange rate between the transaction date and
settlement date are recognized in the Statement of Profit and Loss.
All monetary assets and liabilities in foreign currencies are restated at the year end at the exchange rate prevailing at
the year end and the exchange differences are recognized in the Statement of Profit and Loss. Non-monetary items
that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates
of the initial transactions.
g) Borrowing Cost: Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are
capitalized as a part of the cost of that asset, during the period of time that is necessary to complete and prepare
the asset for its intended use. Transaction costs in respect of long-term borrowings are amortized over the tenor of
respective loans using effective interest method. Other borrowing costs are expensed in the period in which they are
incurred.
h) Leases: The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
Company as a Lessee
The Company applies a single recognition and measurement approach for all leases, except for short term and low
value leases. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing
the right to use the underlying assets.
Right of Use Asset
The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis
over the shorter of the lease term and the estimated useful lives of the assets
Lease Liabilities
At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of
lease payments to be made over the lease term. In calculating the present value of lease payments, the Company
uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to
future payments resulting from a change in an index or rate used to determine such lease payments).
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases of office buildings (i.e.,
those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low value assets recognition exemption to leases of assets that are considered to
be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a
straight-line basis over the lease term.
i) Investment in subsidiaries: Investments in subsidiaries and associates are recognized at cost, less impairment loss
(if any) as per Ind AS 27 - Separate Financial Statements. Investments are reviewed for impairment if events or
changes in circumstances indicate that the carrying amount may not be recoverable.
j) Financial Instruments: A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
1. Financial Assets
Initial Recognition and measurement
Financial assets are classified, at initial recognition in the following categories:
• as subsequently measured at fair value (either through other comprehensive income, or through the
Statement of Profit and Loss), and
• measured at amortized cost
The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow
characteristics and the Company's business model for managing them.
Measurement
At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial
assets carried at fair value through the profit and loss are expensed in the statement of profit and loss.
A. 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. The Company classifies its debt instruments into
following categories:
Amortized Costs: A financial asset is subsequently measured at amortized costs, if it is held within a
business model whose objective is to hold asset in order to collect contractual cash flow and the contractual
terms of the financial asset give rise on specified dates to cash flow that are solely payment of principal and
interest on the principal amount outstanding.
Fair Value Through Profit & Loss Account: Assets that do not meet the criteria of amortized cost are
measured at fair value through profit and loss. Interest income from these financial assets is included in
other income.
B. Equity Instruments
Fair Value Through Other Comprehensive Income: A financial asset is subsequently measured at fair value
through other comprehensive income if it is held within a business model whose objective is achieved by
both collecting the contractual cash flows and selling financial assets and the contractual terms of the
financial assets give rise on specified dates to cash flows that are solely payment of principal and interest
on the principal outstanding.
Financial Assets at Fair Value Through Profit & Loss Account: Financial assets at fair value through profit or
loss are carried in the balance sheet at fair value with net changes in fair value recognized in the statement
of profit and loss.
2. Financial Liabilities:
Classification
The Company classifies its financial liabilities in the following measurement categories:
• those to be measured subsequently at fair value through the statement of profit and loss, and
• those measured at amortized cost
Measurement
A. Financial liabilities at amortized cost
Financial liabilities at amortized cost represented by borrowings, trade and other payables are initially
recognized at fair value, and subsequently carried at amortized cost.
B. Financial liabilities at fair value through profit and loss
Financial liabilities at fair value through profit and loss are measured at fair value with all changes recognized
in the statement of profit and loss.
3. Derecognition of Financial Instrument: The Company derecognizes a financial asset when the contractual right
to the cash flow from the financial asset expires or it transfers the financial asset and the transfer qualifies for
derecognition under IND AS 109. A financial liability (or a part of a financial liability) is derecognized from the
Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.
4. Impairment of Assets
Financial Assets: For Financial Assets that are secured, no ECL provision is done in view of security available for
realization.
Non-Financial Assets: The carrying amount of the assets are reviewed at each balance sheet date if there is any
indication of impairment based on internal / external factors. An impairment loss is recognized whenever the
carrying value of the assets exceeds its recoverable amount.
k) Off-setting of Assets and Liabilities: 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 liabilities 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.
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