Accounting Policies of Crystal Business System Ltd. Company

Mar 31, 2025

2. Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of
these financial statements. These policies have been consistently applied to all the years
presented, unless otherwise stated.

a) Basis of preparation

i. Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act)
[Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions
of the Act.

ii. Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the
following:

- Non-Current Investment that are measured at fair value;

Historical cost is generally based on the fair value of the consideration given in exchange
for goods and services.

b) Use of Estimates & Judgments

The preparation of financial statements in conformity with Indian Accounting Standards
(Ind AS) requires management to make judgments, estimates, and assumptions that affect
the reported amounts of revenues, expenses, assets, and liabilities, as well as the
disclosure of contingent liabilities at the reporting date. These estimates and underlying
assumptions are based on management’s best knowledge of current facts, circumstances,
and expectations of future events. Actual results may differ from these estimates. Any
such differences are recognized in the period in which the results are known, and if
required, material adjustments are made to the carrying amounts of assets or liabilities in
future periods.

Fair value measurement

The company measures financial instruments, such as investment in Equity share etc, at
fair value at each balance sheet date. 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. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset
or liability

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised 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) 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

At each reporting date, management analyses the movements in the values of assets and
liabilities which are required to be premeasured or re-assessed as per the company’s
accounting policies. For this analysis, management regularly reviews significant
unobservable inputs applied in the valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.

c) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
include cash in hand, deposits held at call with financial institutions, other short-term highly
liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value.

d) Cash flow statement

Cash flows are reported using indirect method, whereby Profit before tax reported under the
statement of profit/ (loss) is adjusted for the effects of transactions of non-cash nature and
any deferrals or accruals of past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the company are segregated based on
available information.

e) Property, plant and equipment

All other items of property, plant and equipment are stated at historical cost less depreciation.
Historical cost includes expenditure that is directly attributable to the acquisition of the
items. Subsequent costs are included in the asset ‘s carrying amount or recognized 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
derecognized when replaced. All other repairs and maintenance are charged to profit or loss
during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a pro-rata basis on the straight-line method over the estimated
useful lives of the assets. The estimates of useful lives of the assets are as follows:

Asset Useful life

Computers and peripherals 3 years

Office Equipment 5 years

Furniture & Fixtures 10 Years

Plant & Machinery 15 years

The useful lives have been determined based on Schedule II to the Companies Act; 2013.
The residual values are not more than 5% of the original cost of the asset.

The assets residual values and useful life are reviewed, and adjusted if appropriate, at the
end of each reporting period.

The assets carrying amount is written down immediately to its recoverable amount if the
assets carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount.
These are included in profit or loss within other gains/(losses).

f) Intangible assets
Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less
accumulated amortisation and accumulated impairment losses. Amortisation is recognised
on a straight-line basis over their estimated useful lives. The estimated useful life and
amortisation method are reviewed at the end of each reporting period, with the effect of any
changes in estimate being accounted for on a prospective basis. Intangible assets with
indefinite useful lives that are acquired separately are carried at cost less accumulated
impairment losses.

Intangible assets acquired in business combinations are stated at fair value as determined by
the management of the Company on the basis of valuation by expert valuers, less
accumulated amortisation. The estimated useful life of the intangible assets and the
amortisation period are reviewed at the end of each financial year and the amortisation period
is revised to reflect the changed pattern, if any.

Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are
expected from use. Gains or losses arising from derecognition of an intangible asset,
measured as the difference between the net disposal proceeds and the carrying amount of the
asset, and are recognised in profit or loss when the asset is derecognised.

g) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment, or more frequently if events or changes
in circumstances indicate that they might be impaired. Other assets are tested for impairment
annually, or more frequently if events or changes in circumstances indicate that they might
be impaired whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognized for the amount by which the assets
carrying amount exceeds its recoverable amount. The recoverable amount is higher of an
assets fair value less cost of disposal or value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from other assets or a group
of assets (cash-generating units). Non-financial assets, other than goodwill, that suffer an
impairment are reviewed for possible reversal of the impairment at the end of each reporting
period. However, at present the company doesn’t have any goodwill or Intangible asset.

h) Revenue recognition

Revenue is recognized on accrual basis. Sale/purchase of securities is recognized on the basis
of actual deliveries of securities. Profit/loss on sale of investments is arrived at considering
cost of investments. Interest income is not recognized using the effective interest method as
the terms of repayment of the loans given are not specified. The company is recognising the
interest income on loans on simple interest calculation method.

Rendering of services

Service revenue comprises, advertisement revenue, Broadcasting Revenue and other related
services. Income from services is recognised upon completion of services as per the terms
of contracts with the customers. Period based services are accrued and recognised pro-rata
over the contractual period.

Sale of goods

Revenue from the sale of goods is recognised when the goods are delivered and titles have
passed, at which time all the following conditions are satisfied:

• The company has transferred to the buyer the significant risks and rewards of ownership
of the goods;

• The company retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;

• The amount of revenue can be measured reliably

• It is probable that the economic benefits associated with the transaction will flow to the
Company; and

• The costs incurred or to be incurred in respect of the transaction can be measured
reliably.

i) Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a
trade date basis. Regular way purchases or sales are purchases or sales of financial assets
that require delivery of assets within the time frame established by regulation or convention

in the marketplace. All recognised financial assets are subsequently measured in their
entirety at either amortised cost or fair value, depending on the classification of the financial
assets.

Classification of financial assets

The Company classifies its financial assets in the following measurement categories:

- Those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and

- Those measured at amortized cost.

The classification depends on the group’s business model for managing the financial assets
and the contractual terms of the cash flows.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash receipts (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the debt instrument, or,
where appropriate, a shorter period, to the net carrying amount on initial recognition.

However, The Company is not following the effective interest method and Interest income
is recognised on a simple interest basis for debt instruments other than those financial assets
classified as at Fair Value through Profit and Loss (FVTPL). Interest income is recognised
in profit or loss and is included in the “Other income” line item.

Investments in equity instruments at FVTOCI

On initial recognition, the Company can make an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent changes in fair value in other comprehensive
income pertaining to investments in equity instruments. This election is not permitted if the
equity investment is held for trading. These elected investments are initially measured at fair
value plus transaction costs. Subsequently, they are measured at fair value with gains and
losses arising from changes in fair value recognised in other comprehensive income and
accumulated in the ‘Reserve for equity instruments through other comprehensive income’.
The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

A financial asset is held for trading if:

• It has been acquired principally for the purpose of selling it in the near term; or

• On initial recognition it is part of a portfolio of identified financial instruments that the
Company manages together and has a recent actual pattern of short-term profit-taking; or

• It is a derivative that is not designated and effective as a hedging instrument or a financial
guarantee.

Financial assets at Fair Value through Profit or Loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company
irrevocably elects on initial recognition to present subsequent changes in fair value in other
comprehensive income for investments in equity instruments which are not held for trading.

Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria (see above)
are measured at FVTPL. In addition, debt instruments that meet the amortised cost criteria
or the FVTOCI criteria but are designated as at FVTPL are measured at FVTPL.

A financial asset that meets the amortised cost criteria or debt instruments that meet the
FVTOCI criteria may be designated as at FVTPL upon initial recognition if such designation
eliminates or significantly reduces a measurement or recognition inconsistency that would
arise from measuring assets or liabilities or recognising the gains and losses on them on
different bases. The Company has not designated any debt instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period,
with any gains or losses arising on re-measurement recognised in profit or loss. The net gain
or loss recognised in profit or loss incorporates any dividend or interest earned on the
financial asset and is included in the ‘Other income’ line item.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on
financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables,
trade receivables, and other contractual rights to receive cash or other financial asset, and
financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective risks of
default occurring as the weights. Credit loss is the difference between all contractual cash
flows that are due to the Company in accordance with the contract and all the cash flows that
the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective
interest rate (or credit-adjusted effective interest rate for purchased or originated credit-
impaired financial assets). The Company estimates cash flows by considering all contractual
terms of the financial instrument (for example, prepayment, extension, call and similar
options) through the expected life of that financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to
the cost at which such instrument was booked.

If the Company measured loss allowance for a financial instrument at lifetime expected
credit loss model in the previous period, but determines at the end of a reporting period that
the credit risk has not increased significantly since initial recognition due to improvement in
credit quality as compared to the previous period, the Company again measures the loss
allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk
since initial recognition, the Company uses the change in the risk of a default occurring over
the expected life of the financial instrument instead of the change in the amount of expected
credit losses. To make that assessment, the Company compares the risk of a default occurring
on the financial instrument as at the reporting date with the risk of a default occurring on the
financial instrument as at the date of initial recognition and considers reasonable and
supportable information, that is available without undue cost or effort, that is indicative of
significant increases in credit risk since initial recognition.

For trade receivables or any contractual right to receive cash or another financial asset that
result from transactions that are within the scope of Ind AS 11 and Ind AS 18, the Company
always measures the loss allowance at an amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade
receivables, the Company has used a practical expedient as permitted under Ind AS 109.
This expected credit loss allowance is computed based on a provision matrix which takes
into account historical credit loss experience and adjusted for forward-looking information.

The impairment requirements for the recognition and measurement of a loss allowance are
equally applied to debt instruments at FVTOCI except that the loss allowance is recognised
in other comprehensive income and is not reduced from the carrying amount in the balance
sheet.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another party. If the Company neither transfers nor
retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Company recognises its retained interest in the asset and an associated
liability for amounts it may have to pay. If the Company retains substantially all the risks
and rewards of ownership of a transferred financial asset, the Company continues to
recognise the financial asset and also recognises a collateralised borrowing for the proceeds
received.

On derecognition of a financial asset in its entirety, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable and the cumulative
gain or loss that had been recognised in other comprehensive income and accumulated in
equity is recognised in profit or loss if such gain or loss would have otherwise been
recognised in profit or loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety (e.g. when the Company retains
an option to repurchase part of a transferred asset), the Company allocates the previous
carrying amount of the financial asset between the part it continues to recognise under
continuing involvement, and the part it no longer recognises on the basis of the relative fair
values of those parts on the date of the transfer. The difference between the carrying amount
allocated to the part that is no longer recognised and the sum of the consideration received
for the part no longer recognised and any cumulative gain or loss allocated to it that had been
recognised in other comprehensive income is recognised in profit or loss if such gain or loss
would have otherwise been recognised in profit or loss on disposal of that financial asset. A
cumulative gain or loss that had been recognised in other comprehensive income is allocated
between the part that continues to be recognised and the part that is no longer recognised on
the basis of the relative fair values of those parts.

j) Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either financial liabilities
or as equity in accordance with the substance of the contractual arrangements and the
definitions of a financial liability and an equity instrument.

Equity instruments

All equity Instruments are classified at Fair Value through Other Comprehensive Income
(FVTOCI). 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 a
Company are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognised and deducted directly in
equity.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective
interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify
for derecognition or when the continuing involvement approach applies, financial guarantee
contracts issued by the Company, and commitments issued by the Company to provide a
loan at below-market interest rate are measured in accordance with the specific accounting
policies set out below.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either
contingent consideration recognised by the Company as an acquirer in a business
combination to which Ind AS 103 applies or is held for trading or it is designated as at
FVTPL.

A financial liability is classified as held for trading if:

• It has been incurred principally for the purpose of repurchasing it in the near term; or

• On initial recognition it is part of a portfolio of identified financial instruments that the
Company manages together and has a recent actual pattern of short-term profit-taking; or

• It is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading or contingent
consideration recognised by the Company as an acquirer in a business combination to which
Ind AS 103 applies, may be designated as at FVTPL upon initial recognition if:

• Such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise;

• the financial liability forms part of a Company’s financial assets or financial liabilities or
both, which is managed and its performance is evaluated on a fair value basis, in accordance
with the Company''s documented risk management or investment strategy, and information
about the Company is provided internally on that basis; or

• it forms part of a contract containing one or more embedded derivatives, and Ind AS 109
permits the entire combined contract to be designated as at FVTPL in accordance with Ind
AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on
remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss
incorporates any interest paid on the financial liability and is included in the ‘Other income''
line item.

However, for non-held-for-trading financial liabilities that are designated as at FVTPL, the
amount of change in the fair value of the financial liability that is attributable to changes in
the credit risk of that liability is recognised in other comprehensive income, unless the
recognition of the effects of changes in the liability’s credit risk in other comprehensive
income would create or enlarge an accounting mismatch in profit or loss, in which case these
effects of changes in credit risk are recognised in profit or loss. The remaining amount of
change in the fair value of liability is always recognised in profit or loss. Changes in fair
value attributable to a financial liability’s credit risk that are recognised in other
comprehensive income are reflected immediately in retained earnings and are not
subsequently reclassified to profit or loss.

Gains or losses on financial guarantee contracts and loan commitments issued by the
Company that are designated by the Company as at fair value through profit or loss are
recognised in profit or loss.

Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are
measured at amortised cost at the end of subsequent accounting periods. The carrying
amounts of financial liabilities that are subsequently measured at amortised cost are
determined based on the effective interest method. Interest expense that is not capitalised as
part of costs of an asset is included in the ''Finance costs'' line item.

The effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or
(where appropriate) a shorter period, to the net carrying amount on initial recognition.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make
payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued by a Company are initially measured at their fair values
and, if not designated as at FVTPL, are subsequently measured at the higher of:

• The amount of loss allowance determined in accordance with impairment requirements of
Ind AS 109; and

• The amount initially recognised less, when appropriate, the cumulative amount of income
recognised in accordance with the principles of Ind AS 18.

Commitments to provide a loan at a below-market interest rate

Commitments to provide a loan at a below-market interest rate are initially measured at their
fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:

• The amount of loss allowance determined in accordance with impairment requirements of
Ind AS 109; and

• The amount initially recognised less, when appropriate, the cumulative amount of income
recognised in accordance with the principles of Ind AS 18.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired. An exchange between a lenders of
debt instruments with substantially different terms is accounted for as an extinguishment of
the original financial liability and the recognition of a new financial liability. Similarly, a
substantial modification of the terms of an existing financial liability (whether or not
attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of
the original financial liability and the recognition of a new financial liability. The difference
between the carrying amount of the financial liability derecognised and the consideration
paid and payable is recognised in profit or loss.

k) Employee benefits

Employee benefits are recognized as an expense in the profit and loss account of the year.

l) Leases

Leases under which the company assumes substantially all the risks and rewards of
ownership are classified as finance leases. When acquired, such as sets are capitalized at fair
value or present value of the minimum lease payments at the inception of the lease,
whichever is lower. Lease payments under operating leases are recognized as an expenses
on a straight-line basis in net profit in the Statement of Profit and Loss over the lease term.

m) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get
ready for their intended use or sale, are added to the cost of those assets, until such time as
the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are
incurred.

n) Earnings per share

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owners of the Company.

• By the weighted average number of equity shares outstanding during the financial
year, adjusted for bonus elements in equity shares issued during the year and
excluding treasury shares.

ii. Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings
per share to take into account.

• The after income tax effect of interest and other financing costs associated with
dilutive potential equity shares and

• The weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.

o) Income tax

The income tax expense or credit for the period is the tax payable on the current periods
taxable income based on the applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses.

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 countries where the Company
and its subsidiaries (including branches) operate and generate 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 basis of assets and liabilities and their carrying amounts in the
financial statements. Deferred income tax is also not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that at
the time of the transaction affects neither accounting profit nor taxable profit (tax loss).
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 realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax
losses only if it is probable that future taxable amounts will be available to utilize those
temporary differences and losses.

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 realize the
asset and settle the liability simultaneously.

Current tax & deferred tax is recognized in statement of profit or loss, except to the extent
that it relates to items recognized in Other Comprehensive Income or directly in equity. In
this case, the tax is also recognized in Other Comprehensive Income or directly in equity,
respectively.

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Mar 31, 2024

2. Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation
of these financial statements. These policies have been consistently applied to all the
years presented, unless otherwise stated.

a) Basis of preparation

i. Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act)
[Companies (Indian Accounting Standards) Rules, 2015] and other relevant
provisions of the Act.

ii. Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the
following:

- Non-Current Investment that are measured at fair value;

Historical cost is generally based on the fair value of the consideration given in
exchange for goods and services.

Fair value measurement

The company measures financial instruments, such as investment in Equity share
etc, at fair value at each balance sheet date. 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. The fair value measurement
is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either -

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the
asset or liability

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised 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) 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

At each reporting date, management analyses the movements in the values of assets
and liabilities which are required to be remeasured or re-assessed as per the
company''s accounting policies. For this analysis, management regularly reviews
significant unobservable inputs applied in the valuation by agreeing the information
in the valuation computation to contracts and other relevant documents.

b) Use of Estimates

The preparation of financial statements in conformity with Ind AS requires the
management to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenue, costs, expenses and other comprehensive income that are
reported and disclosed in the financial statements and accompanying notes. These
estimates are based on the management ''s best knowledge of current events, historical
experience, actions that the Company may undertake in the future and on various other
assumptions that are believed to be reasonable under the circumstances. Significant
estimates and assumptions are used, but not limited to accounting for costs expected to
be incurred to complete performance under IT service arrangements, allowance for
uncollectible accounts receivables and unbilled revenue, accrual of warranty costs,
income taxes, valuation of share-based compensation, future obligations under
employee benefit plans, the useful lives of property, equipment and intangible assets,
impairment of property, equipment, intangibles and goodwill, valuation allowances for
deferred tax assets, and other contingencies and commitments. Changes in estimates
are reflected in the financial statements in the period in which the changes are made.
Actual results could differ from those estimates.

c) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash
equivalents include cash in hand, deposits held at call with financial institutions, other
short-term highly liquid investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.

d) Cash flow statement

Cash flows are reported using indirect method, whereby Profit before tax reported under
the statement of profit/ (loss) is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or payments. The
cash flows from operating, investing and financing activities of the company are
segregated based on available information.

e) Property, plant and equipment

All other items of property, plant and equipment are stated at historical cost less
depreciation. Historical cost includes expenditure that is directly attributable to the
acquisition of the items. Subsequent costs are included in the asset ''s carrying amount
or recognized 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 derecognized when replaced. All other repairs and maintenance are
charged to profit or loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on a pro-rata basis on the straight-line method over the
estimated useful lives of the assets. The estimates of useful lives of the assets are as
follows:

Asset Useful life

Computers and peripherals 3 years
Office Equipment 5 years

The useful lives have been determined based on Schedule II to the Companies Act;
2013. The residual values are not more than 5% of the original cost of the asset.

The asset''s residual values and useful life are reviewed, and adjusted if appropriate, at
the end of each reporting period.

The asset''s carrying amount is written down immediately to it''s recoverable amount if
the asset''s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying
amount. These are included in profit or loss within other gains/(losses).

f) Intangible assets

Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost
less accumulated amortisation and accumulated impairment losses. Amortisation is
recognised on a straight-line basis over their estimated useful lives. The estimated useful
life and amortisation method are reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for on a prospective basis. Intangible
assets with indefinite useful lives that are acquired separately are carried at cost less
accumulated impairment losses.

Intangible assets acquired in business combinations are stated at fair value as
determined by the management of the Company on the basis of valuation by expert
valuers, less accumulated amortisation. The estimated useful life of the intangible assets
and the amortisation period are reviewed at the end of each financial year and the
amortisation period is revised to reflect the changed pattern, if any.

Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are
expected from use. Gains or losses arising from derecognition of an intangible asset,
measured as the difference between the net disposal proceeds and the carrying amount
of the asset, are recognised in profit or loss when the asset is derecognised.

g) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment, or more frequently if events or
changes in circumstances indicate that they might be impaired. Other assets are tested
for impairment annually, or more frequently if events or changes in circumstances
indicate that they might be impaired whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is
recognized for the amount by which the asset''s carrying amount exceeds its recoverable
amount. The recoverable amount is higher of an asset''s fair value less cost of disposal or
value in use. For the purpose of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or a group of assets (cash-generating
units). Non-financial assets, other than goodwill, that suffer an impairment are reviewed
for possible reversal of the impairment at the end of each reporting period. However, at
present the company doesn''t have any goodwill or Intangible asset.

h) Revenue recognition

Revenue is recognized on accrual basis. Sale/purchase of securities is recognized on the
basis of actual deliveries of securities. Profit/loss on sale of investments is arrived at
considering cost of investments. Interest income is not recognized using the effective
interest method as the terms of repayment of the loans given are not specified. The
company is recognising the interest income on loans on simple interest calculation
method.

Rendering of services

Service revenue comprises, advertisement revenue, Broadcasting Revenue and other
related services. Income from services is recognised upon completion of services as per
the terms of contracts with the customers. Period based services are accrued and
recognised pro-rata over the contractual period.

Sale of goods

Revenue from the sale of goods is recognised when the goods are delivered and titles
have passed, at which time all the following conditions are satisfied:

• The company has transferred to the buyer the significant risks and rewards of
ownership of the goods;

• The company retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold;

• The amount of revenue can be measured reliably

• It is probable that the economic benefits associated with the transaction will flow to
the Company; and

• The costs incurred or to be incurred in respect of the transaction can be measured
reliably.

i) Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on
a trade date basis. Regular way purchases or sales are purchases or sales of financial
assets that require delivery of assets within the time frame established by regulation or
convention in the marketplace. All recognised financial assets are subsequently
measured in their entirety at either amortised cost or fair value, depending on the
classification of the financial assets.

Classification of financial assets

The Company classifies its financial assets in the following measurement categories:

- those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and

- those measured at amortized cost.

The classification depends on the group''s business model for managing the financial
assets and the contractual terms of the cash flows.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash receipts (including
all fees and points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) through the expected life of the
debt instrument, or, where appropriate, a shorter period, to the net carrying amount on
initial recognition.

However, The Company is not following the effective interest method and Interest
income is recognised on a simple interest basis for debt instruments other than those
financial assets classified as at Fair Value Through Profit and Loss (FVTPL). Interest
income is recognised in profit or loss and is included in the "Other income" line item.

Investments in equity instruments at FVTOCI

On initial recognition, the Company can make an irrevocable election (on an instrument-
by-instrument basis) to present the subsequent changes in fair value in other
comprehensive income pertaining to investments in equity instruments. This election is
not permitted if the equity investment is held for trading. These elected investments are
initially measured at fair value plus transaction costs. Subsequently, they are measured
at fair value with gains and losses arising from changes in fair value recognised in other
comprehensive income and accumulated in the ''Reserve for equity instruments through
other comprehensive income''. The cumulative gain or loss is not reclassified to profit or
loss on disposal of the investments.

A financial asset is held for trading if:

• it has been acquired principally for the purpose of selling it in the near term; or

• on initial recognition it is part of a portfolio of identified financial instruments that the
Company manages together and has a recent actual pattern of short-term profit-taking;
or
• it is a derivative that is not designated and effective as a hedging instrument or a
financial guarantee.

Financial assets at Fair Value through Profit or Loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company
irrevocably elects on initial recognition to present subsequent changes in fair value in
other comprehensive income for investments in equity instruments which are not held
for trading.

Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria (see
above) are measured at FVTPL. In addition, debt instruments that meet the amortised
cost criteria or the FVTOCI criteria but are designated as at FVTPL are measured at
FVTPL.

A financial asset that meets the amortised cost criteria or debt instruments that meet
the FVTOCI criteria may be designated as at FVTPL upon initial recognition if such
designation eliminates or significantly reduces a measurement or recognition
inconsistency that would arise from measuring assets or liabilities or recognising the
gains and losses on them on different bases. The Company has not designated any debt
instrument as at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period,
with any gains or losses arising on re-measurement recognised in profit or loss. The net
gain or loss recognised in profit or loss incorporates any dividend or interest earned on
the financial asset and is included in the ''Other income'' line item.

Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on
financial assets measured at amortised cost, debt instruments at FVTOCI, lease
receivables, trade receivables, other contractual rights to receive cash or other financial
asset, and financial guarantees not designated as at FVTPL.

Expected credit losses are the weighted average of credit losses with the respective
risks of default occurring as the weights. Credit loss is the difference between all
contractual cash flows that are due to the Company in accordance with the contract and
all the cash flows that the Company expects to receive (i.e. all cash shortfalls),
discounted at the original effective interest rate (or credit-adjusted effective interest rate
for purchased or originated credit-impaired financial assets). The Company estimates
cash flows by considering all contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) through the expected life of that
financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal
to the cost at which such instrument was booked.

If the Company measured loss allowance for a financial instrument at lifetime expected
credit loss model in the previous period, but determines at the end of a reporting period
that the credit risk has not increased significantly since initial recognition due to

improvement in credit quality as compared to the previous period, the Company again
measures the loss allowance based on 12-month expected credit losses.

When making the assessment of whether there has been a significant increase in credit
risk since initial recognition, the Company uses the change in the risk of a default
occurring over the expected life of the financial instrument instead of the change in the
amount of expected credit losses. To make that assessment, the Company compares the
risk of a default occurring on the financial instrument as at the reporting date with the
risk of a default occurring on the financial instrument as at the date of initial recognition
and considers reasonable and supportable information, that is available without undue
cost or effort, that is indicative of significant increases in credit risk since initial
recognition.

For trade receivables or any contractual right to receive cash or another financial asset
that result from transactions that are within the scope of Ind AS 11 and Ind AS 18, the
Company always measures the loss allowance at an amount equal to lifetime expected
credit losses.

Further, for the purpose of measuring lifetime expected credit loss allowance for trade
receivables, the Company has used a practical expedient as permitted under Ind AS 109.
This expected credit loss allowance is computed based on a provision matrix which takes
into account historical credit loss experience and adjusted for forward-looking
information.

The impairment requirements for the recognition and measurement of a loss allowance
are equally applied to debt instruments at FVTOCI except that the loss allowance is
recognised in other comprehensive income and is not reduced from the carrying amount
in the balance sheet.

Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all
the risks and rewards of ownership of the asset to another party. If the Company neither
transfers nor retains substantially all the risks and rewards of ownership and continues
to control the transferred asset, the Company recognises its retained interest in the
asset and an associated liability for amounts it may have to pay. If the Company retains
substantially all the risks and rewards of ownership of a transferred financial asset, the
Company continues to recognise the financial asset and also recognises a collateralised
borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset''s
carrying amount and the sum of the consideration received and receivable and the
cumulative gain or loss that had been recognised in other comprehensive income and
accumulated in equity is recognised in profit or loss if such gain or loss would have
otherwise been recognised in profit or loss on disposal of that financial asset.

On derecognition of a financial asset other than in its entirety (e.g. when the Company
retains an option to repurchase part of a transferred asset), the Company allocates the
previous carrying amount of the financial asset between the part it continues to
recognise under continuing involvement, and the part it no longer recognises on the
basis of the relative fair values of those parts on the date of the transfer. The difference

between the carrying amount allocated to the part that is no longer recognised and the
sum of the consideration received for the part no longer recognised and any cumulative
gain or loss allocated to it that had been recognised in other comprehensive income is
recognised in profit or loss if such gain or loss would have otherwise been recognised in
profit or loss on disposal of that financial asset. A cumulative gain or loss that had been
recognised in other comprehensive income is allocated between the part that continues
to be recognised and the part that is no longer recognised on the basis of the relative
fair values of those parts.

j) Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either financial
liabilities or as equity in accordance with the substance of the contractual arrangements
and the definitions of a financial liability and an equity instrument.

Equity instruments

All equity Instruments are classified at Fair Value through Other Comprehensive Income
(FVTOCI). 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 a
Company are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognised and deducted
directly in equity.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective
interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not
qualify for derecognition or when the continuing involvement approach applies, financial
guarantee contracts issued by the Company, and commitments issued by the Company
to provide a loan at below-market interest rate are measured in accordance with the
specific accounting policies set out below.

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either
contingent consideration recognised by the Company as an acquirer in a business
combination to which Ind AS 103 applies or is held for trading or it is designated as at
FVTPL.

A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose of repurchasing it in the near term; or

• on initial recognition it is part of a portfolio of identified financial instruments that the
Company manages together and has a recent actual pattern of short-term profit-taking;
or

• it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading or contingent
consideration recognised by the Company as an acquirer in a business combination to
which Ind AS 103 applies, may be designated as at FVTPL upon initial recognition if:

• such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise;

• the financial liability forms part of a Company''s financial assets or financial liabilities or
both, which is managed and its performance is evaluated on a fair value basis, in
accordance with the Company''s documented risk management or investment strategy,
and information about the Company is provided internally on that basis; or

• it forms part of a contract containing one or more embedded derivatives, and Ind AS
109 permits the entire combined contract to be designated as at FVTPL in accordance
with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on
remeasurement recognised in profit or loss. The net gain or loss recognised in profit or
loss incorporates any interest paid on the financial liability and is included in the ''Other
income'' line item.

However, for non-held-for-trading financial liabilities that are designated as at FVTPL,
the amount of change in the fair value of the financial liability that is attributable to
changes in the credit risk of that liability is recognised in other comprehensive income,
unless the recognition of the effects of changes in the liability''s credit risk in other
comprehensive income would create or enlarge an accounting mismatch in profit or loss,
in which case these effects of changes in credit risk are recognised in profit or loss. The
remaining amount of change in the fair value of liability is always recognised in profit or
loss. Changes in fair value attributable to a financial liability''s credit risk that are
recognised in other comprehensive income are reflected immediately in retained
earnings and are not subsequently reclassified to profit or loss.

Gains or losses on financial guarantee contracts and loan commitments issued by the
Company that are designated by the Company as at fair value through profit or loss are
recognised in profit or loss.

Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are
measured at amortised cost at the end of subsequent accounting periods. The carrying
amounts of financial liabilities that are subsequently measured at amortised cost are
determined based on the effective interest method. Interest expense that is not
capitalised as part of costs of an asset is included in the ''Finance costs'' line item.

The effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments (including all fees
and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the

financial liability, or (where appropriate) a shorter period, to the net carrying amount on
initial recognition.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to
make payments when due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued by a Company are initially measured at their fair
values and, if not designated as at FVTPL, are subsequently measured at the higher of:

• the amount of loss allowance determined in accordance with impairment requirements
of Ind AS 109; and

• the amount initially recognised less, when appropriate, the cumulative amount of
income recognised in accordance with the principles of Ind AS 18.

Commitments to provide a loan at a below-market interest rate

Commitments to provide a loan at a below-market interest rate are initially measured at
their fair values and, if not designated as at FVTPL, are subsequently measured at the
higher of:

• the amount of loss allowance determined in accordance with impairment requirements
of Ind AS 109; and

• the amount initially recognised less, when appropriate, the cumulative amount of
income recognised in accordance with the principles of Ind AS 18.

Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Company''s
obligations are discharged, cancelled or have expired. An exchange between a lender of
debt instruments with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial
liability. Similarly, a substantial modification of the terms of an existing financial liability
(whether or not attributable to the financial difficulty of the debtor) is accounted for as
an extinguishment of the original financial liability and the recognition of a new financial
liability. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable is recognised in profit or loss.

k) Employee benefits

Employee benefits are recognized as an expense in the profit and loss account of the
year

l) Leases

Leases under which the company assumes substantially all the risks and rewards of
ownership are classified as finance leases. When acquired, such as sets are capitalized at
fair value or present value of the minimum lease payments at the inception of the lease,
whichever is lower. Lease payments under operating leases are recognized as an
expenses on a straight-line basis in net profit in the Statement of Profit and Loss over
the lease term.

m) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to
get ready for their intended use or sale, are added to the cost of those assets, until such
time as the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are
incurred.

n) Earnings per share

i. Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owners of the Company.

• By the weighted average number of equity shares outstanding during the
financial year, adjusted for bonus elements in equity shares issued during the
year and excluding treasury shares.

ii. Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic
earnings per share to take into account.

• The after income tax effect of interest and other financing costs associated
with dilutive potential equity shares and

• The weighted average number of additional equity shares that would have
been outstanding assuming the conversion of all dilutive potential equity
shares.

o) Income tax

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 for each jurisdiction
adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.

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 countries where the
Company and its subsidiaries (including branches) operate and generate 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 basis of assets and liabilities and their carrying
amounts in the financial statements. Deferred income tax is also not accounted for if it
arises from initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither accounting profit
nor taxable profit (tax loss). 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 realized or the
deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused
tax losses only if it is probable that future taxable amounts will be available to utilize
those temporary differences and losses.

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
realize the asset and settle the liability simultaneously.

Current tax & deferred tax are recognized in statement of profit or loss, except to the
extent that it relates to items recognized in Other Comprehensive Income or directly in
equity. In this case, the tax is also recognized in Other Comprehensive Income or
directly in equity, respectively.