1. MATERIAL ACCOUNTING POLICIES
(i) Basis of Preparation of Standalone financial statements:
These Standalone financial statements have been prepared in accordance with the generally accepted accounting
principles in India under the historical cost convention (except for certain financial instruments that are measured
at fair values at the end of each reporting period) on accrual basis to comply in all material aspects with the Indian
Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant
to section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.The Standalone financial
statements have been prepared on accrual and going concern basis. The accounting policies are applied
consistently to all the periods presented in the financial statements.
(ii) Basis of Measurement
These Standalone financial statements are prepared under the historical cost convention unless otherwise
indicated.
(iii) Key estimates and assumptions
The preparation of Standalone financial statements requires management to make judgments, estimates and
assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates. 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. Information about critical judgments in applying accounting policies, as well as
estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities
within the next financial year, are as follows:
- Determination of the estimated useful lives of tangible assets and the assessment as to which component
of the cost may be capitalized - refer point (v) of significant accounting poilicies
- Impairment of Property, Plant and Equipment’s - refer note no. 2
- Fair value of financial instruments - refer note no. 3
- Recognition of deferred tax assets - refer note no. 4
- Provisions and Contingent Liabilities - refer note no. 22
(iv) Current and Non-Current Classification
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating
cycle (twelve months) and other criteria set out in the Schedule III to the Act.
(v) Property plant and equipment(PPE)
PPE are initially recognised at cost. The initial cost of PPE comprises its purchase price, including non-refundable
duties and taxes net of any trade discounts and rebates. The cost of PPE includes interest on borrowings
(borrowing cost) directly attributable to acquisition, construction or production of qualifying assets subsequent
to initial recognition, PPE are stated at cost less accumulated depreciation (other than freehold land, which are
stated at cost) and impairment losses, if any.
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 Company and the
cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate
asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the
reporting period in which they are incurred.
Depreciation on fixed assets is provided on Straight Line Method (SLM) on pro-rata basis as per the useful life
prescribed in the Schedule II of the Companies Act, 2013. However the Property plant and equipment is fully
depreciated to Residual value and thus no depreciation is charged for the current as well as previous year.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable.
The residual values, useful life and depreciation method are reviewed at each financial year-end to ensure that
the amount, method and period of depreciation are consistent with previous estimates and the expected pattern
of consumption of the future economic benefits embodied in the items of property, plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on disposal or retirement of an
item of property, plant and equipment is determined as the difference between sales proceeds and the carrying
amount of the asset and is recognised in profit or loss. Fully depreciated assets still in use are retained in financial
statements.
All the plant and equipments mentioned in balance sheet as at the even date is carried at residual value and
hence no depreciation is charged in Statement of profit and loss account.
(vi) Measurement of fair values
The Company’s accounting policies and disclosures require the measurement of fair values for financial
instruments.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.
• Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is Unobservable.
Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts
of cash that are subject to an insignificant risk of change in value and having original maturities of three months
or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with
banks which are unrestricted for withdrawal and usage.
Financial assets at fair value through other comprehensive income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business whose objective is achieved by both collecting contractual cash flows that give rise on specified
dates to solely payments of principal and interest on the principal amount outstanding and by selling financial
assets.
The Company has made an irrevocable election to present subsequent changes In the fair value of equity
investments not held for trading in Other Comprehensive Income.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair
value through other comprehensive income on initial recognition. The transaction costs directly attributable to
the acquisition of financial assets and liabilities at fair value through profi t or loss are immediately recognised in
profit or loss.
Financial liabilities
Financial liabilities are measured at amortised cost using the effective interest method.
Equity instruments
An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments recognised by the Company are measured at the proceeds received net off
direct issue cost.
Off setting of financial instruments
Financial assets and financial liabilities are off set and the net amount is reported in financial statements if there
is a currently enforceable legal right to off set the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.
(vii) Impairments of Non-financial assets
The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if
any indication of impairment exists.
if the carrying amount of the assets exceed the estimated recoverable amount, impairment is recognized for such
excess amount. The impairment loss is recognized as an expense in the Statement of Profit and Loss, unless
the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a
revaluation decrease to the extent a revaluation reserve is available for that asset.
When there is indication that an impairment loss recognized for an asset in earlier accounting periods which no
longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit
and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss.
(viii) Revenue recognition
The company is engaged into purchase and sale of equity shares which are accounted as and when trade is
effected on stock exchange. The other sources of revenue for the company are subscriptions and advertisements
on the company’s online media. Revenue from subscriptions is recognized upon delivery of the product.
Revenue from advertisements is not recognized over the contractual period of advertisement. Instead the same
is recognized on the advertisement being placed on the website. No segregation over contractual period is made
since the advertisement revenue is insignificant. Revenue from Content sale is recognized on delivery of content.
Dividend income is recognised when the right to receive the same is established, it is probable that the economic
benefits associated with the dividend will flow to the Company and the amount of dividend can be measured
reliably.
Interest income from financial assets is recognized when it is probable that economic benefits will flow to the
Company and the amount of income can be measured reliably.
(ix) Employee benefits
Short-Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short term
employee benefits. Benefits such as salaries, performance incentives, etc., are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in which the employee renders the related
service
There is no post employment and terminal benefits scheme prevailing in the company.
(x) Taxes on Income
Income tax expense comprises current and deferred tax and is recognized in the Statement of Profit and Loss
except to the extent that it relates to items recognized directly in equity or in OCI.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted
or substantively enacted at the reporting date.
Deferred Tax
Deferred income tax is recognised using the Balance Sheet approach. Deferred income tax assets and liabilities
are recognized for deductible and taxable temporary differences arising between the tax base of assets and
liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable
proft or loss at the time of the transaction.
Deferred tax assets are recognised only to the extent that it is probable that either future taxable profits or reversal
of deferred tax liabilities will be available, against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of a deferred tax asset shall be reviewed at the end of each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable proft will be available to allow all or part of the
deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or
substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax
asset is realised or the deferred tax liability is settled.
Deferred tax assets and liabilities are off set when there is a legally enforceable right to off set current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority.
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