Accounting Policies of Praveg Ltd. Company

Mar 31, 2025

2 Significant Accounting Policies

2.1 Basis of preparation of financial statements

The separate financial statements of the company are prepared in accordance with Indian Accounting
Standards (Ind AS), under the historical cost convention on the accrual basis as per the provisions of the
Companies Act, 2013 ("the Act"), except for

â¢ Financial instruments - measured at fair value;

â¢ Assets held for sale - measured at fair value less cost of sale;

â¢ Plan assets under defined benefit plans - measured at fair value

â¢ Employee share-based payments - measured at fair value

â¢ In addition, the carrying values of recognised assets and liabilities, designated as hedged items in fair
value hedges that would otherwise be carried at cost, are adjusted to record changes in the fair values
attributable to the risks that are being hedged in effective hedge relationship.

The Standalone Financial Statements have been presented in Indian Rupees (INR), which is the Company''s
functional currency. All financial information presented in INR has been rounded off to the nearest two
decimals of Lakh, unless otherwise stated.

Current and non-current classification

An asset is classified as current when it satisfies any of the following criteria:

â¢ it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal
operating cycle or

â¢ It is expected to be realised within 12 months after the reporting date; or

â¢ It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting date.

â¢ All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

â¢ It is expected to be settled in the Company''s normal operating cycle;

â¢ It is held primarily for the purpose of being traded

â¢ It is due to be settled within 12 months after the reporting date; or the Company does not have an
unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.

â¢ All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current only

The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and relevant amendment rules issued thereafter. Accounting policies have been
consistently applied except where a newly issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy hitherto in use.

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its
normal operating cycle as twelve months.

2.2 Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the Management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the
application of accounting policies and the reported amounts of assets and liabilities, the
accompanying disclosure, the disclosures of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the period. Actual results could
differ from those estimates. The management believes that the estimates used in preparation of the
financial statements are prudent and reasonable.

The Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.

This note provides an overview of the areas where there is a higher degree of judgment or complexity.
Detailed information about each of these estimates and judgments is included in relevant notes
together with information about the basis of calculation.

The areas involving critical estimates or judgments are:

Areas Note No.

â¢ Useful life of intangible asset 2.3-B

â¢ Impairment of financial assets 2.3-G

â¢ Defined benefit obligation 2.3-Q

â¢ Recognition of revenue and allocation of transaction price 2.3-J

â¢ Current tax expense and current tax payable 2.3-N

â¢ Deferred tax assets for carried forward tax losses 2.3-N

Estimates and judgments are regularly revisited. Estimates are based on historical experience and other
factors, including futuristic reasonable information that may have a financial impact on the company.

2.3 Summary of Significant accounting policies

A summary of the significant accounting policies applied in the preparation of the financial statements
are as given below. These accounting policies have been applied consistently to all the periods
presented in the financial statements.

A Property, plant and equipment
Recognition and measurement

The cost of property, plant and equipment comprises its purchase price net of any trade discounts
and rebates, any import duties and other taxes (other than those subsequently recoverable from
the tax authorities), any directly attributable expenditure on making the asset ready for its
intended use, including relevant borrowing costs for qualifying assets and any expected costs of
decommissioning. Expenditure incurred after the property, plant and equipment have been put
into operation, such as repairs and maintenance, are charged to the Statement of Profit and Loss
in the year in which the costs are incurred. Major shutdown and overhaul expenditure is
capitalised as the activities undertaken improves the economic benefits expected to arise from
the asset.

It includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance
with the Company''s accounting policy based on Ind AS 23 - Borrowing costs. Such properties are
classified to the appropriate categories of PPE when completed and ready for intended use.

Assets in the course of construction are capitalised in the assets under construction account. At
the point when an asset is operating at management''s intended use, the cost of construction is
transferred to the appropriate category of property, plant and equipment and depreciation
commences. Costs associated with the commissioning of an asset and any obligatory
decommissioning costs are capitalised where the asset is available for use but incapable of
operating at normal levels until a year of commissioning has been completed.

Property, plant and equipment except freehold land held for use in the production, supply or
administrative purposes, are stated in the balance sheet at cost less accumulated depreciation
and accumulated impairment losses, if any.

The Company has elected to continue with the carrying value for all of its property, plant and
equipment as recognised in the financial statements on transition to Ind AS, measured as per the
previous GAAP and use that as its deemed cost as at the date of transition.

Subsequent expenditure and componentization

Subsequent costs related to an item of Property, Plant and Equipment are included in its carrying
amount or recognised as a separate asset, as appropriate, only when it is probable that the future
economic benefits associated with the item will flow to the Company and the cost of the item can
be measured reliably. Subsequent costs are depreciated over the residual life of the respective
assets. All other expenses on existing Property, Plant and Equipments, including day-to-day repair
and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit
and Loss for the period during which such expenses are incurred.

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

Decommissioning costs

Decommissioning cost includes cost of restoration. Provision for decommissioning costs is
recognized when the Company has a legal or constructive obligation to plug and abandon a well,
dismantle and remove a facility or an item of Property, Plant and Equipment and to restore the
site on which it is located. The full eventual estimated provision towards costs relating to
dismantling, abandoning and restoring sites and other facilities are recognized in respective
assets when the site is complete / facilities or Property, Plant and Equipment are installed.

Depreciation and useful life

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value. Depreciation is recognised so as to write off the cost of assets (other
than freehold land and properties under construction) less their residual values over their useful
lives, using straight line method as per the useful life prescribed in Schedule II to the Companies
Act, 2013 except in respect of following categories of assets, in whose case the life of the assets
has been assessed as under based on technical advice, taking into account the nature of the asset,
the estimated usage of the asset, the operating conditions of the asset, past history of
replacement, anticipated technological changes, manufacturers warranties and maintenance
support, etc.

"During the year, the management has reestimated the useful lives for the Property, Plant and
Equipment are as follows:"

In respect of Leasehold Improvements, depreciation is based on the tenure which is lower of the
life of the assets or the expected lease period. Improvements to leased Assets are depreciated
based on their estimated useful lives/ expected lease period.

The property, plant and equipment acquired under finance leases is depreciated over the lower of
the asset''s useful life or the lease term, if there is no reasonable certainty that the Company will
obtain ownership at the end of the lease term.

Major overhaul costs are depreciated over the estimated life of the economic benefit derived
from the overhaul. The carrying amount of the remaining previous overhaul cost is charged to the
Statement of Profit and Loss if the next overhaul is undertaken earlier than the previously
estimated life of the economic benefit.

The Company reviews the residual value, useful lives and depreciation method annually and, if
expectations differ from previous estimates, the change is accounted for as a change in
accounting estimate on a prospective basis.

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

Leasehold Improvements assets with finite useful lives that are acquired separately are carried at
cost less accumulated amortisation and impairment losses. Amortisation is recognised on
astraight-line basis over the lower of useful life of the assets or lease term.

Derecognition

An item of PPE is de-recognised 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 the disposal or retirement
of an item of property, plant and equipment is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss.

B Intangible assets

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 year, 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.

Where intangible asset is acquired in a business combination, it is measured at its acquisition date
fair value.

Internally generated intangible asset is recognised as an asset in the books only and only when
the company develops an identifiable intangible asset and the following criteria are satisfied:

â¢ It is technically feasible to complete the software so that it will be available for use

â¢ Management intends to complete the software and use or sell it

â¢ There is an ability to use or sell the software

â¢ It can be demonstrated how the software will generate probable future economic benefits

â¢ Adequate technical, financial and other resources to complete the development and to use or
sell the software are available, and

â¢ The expenditure attributable to the software during its development can be reliably
measured.

â¢ Directly attributable costs that are capitalised as part of the intangible asset include employee
costs and an appropriate portion of relevant overheads. Capitalised development costs are
recorded as intangible assets and amortised from the point at which the asset is available for
use.

â¢ Revenue collection rights obtained in consideration for rendering Hospitality services
represent the right to collect rent during the concession period in respect of Build-Operate-
Transfer (BOT) projects undertaken by the Company. Rent collection rights are capitalised as
intangible asset upon completion of the project at the cumulative construction costs.

Useful life and amortisation

Intangible assets with finite useful lives that are acquired separately are carried at cost less
accumulated amortisation and impairment losses. Amortisation is recognised on a straight-line
basis over the useful lives of the asset from the date of capitalisation as below:

Brands or Trademarks ---> 10 Years

Rent collection rights are amortised using the straight-line method over the period of concession

The estimated useful life is reviewed at the end of each reporting period and the effect of any
changes in estimate is accounted for prospectively.

Intangible assets acquired in a business combination viz. Goodwill, Patents, Copyrights and
Brands do not have definite useful life and thus, are not amortised. However, these assets are
tested for impairment on an annual basis. These are further tested for impairment upon any
indication of impairment subsequent to annual testing.

Derecognition

Intangible assets are derecognised on disposal, or when no future economic benefits are
expected from use or disposal. Gains or losses arising from derecognition of an intangible asset
are determined as the difference between the net disposal proceeds and the carrying amount.

The Company has elected to continue with carrying value of all its intangible assets recognised as
on transition date, measured as per the previous GAAP and use that carrying value as its deemed
cost as of transition date.

C. Capital Work in Progress

Capital work in progress (CWIP) comprises of Property, Plant and Equipment that are not ready
for their intended use at the end of reporting period and are carried at cost. Cost of CWIP
comprises direct cost, related incidental expenses, borrowing cost and other directly attributable
costs.

D. Investments in subsidiaries, associates and joint ventures

The investments in subsidiaries, associates and joint ventures are carried in these financial
statements at historical ''cost'', except when the investment, or a portion thereof, is classified as
held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued
operations. Where the carrying amount of an investment in greater than its estimated
recoverable amount, it is written down immediately to its recoverable amount and the difference
is transferred to the Statement of Profit and Loss. On disposal of investment the difference
between the net disposal proceeds and the carrying amount is charged or credited to the
Statement of Profit and Loss.

E. Investment in joint operation

A joint operation is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations for the liabilities, relating to the
arrangement. Joint control is the contractually agreed sharing of control of an arrangement,
which exists only when decisions about the relevant activities require unanimous consent of the
parties sharing control.

When the Company undertakes its activities under joint operations, the Company as a joint
operator recognises in relation to its interest in a joint operation:

â¢ Its assets, including its share of any assets held jointly;

â¢ Its liabilities, including its share of any liabilities incurred jointly;

â¢ Its revenue from the sale of its share of the output arising from the joint operation;

â¢ Its share of the revenue from the sale of the output by the joint operation; and

â¢ Its expenses, including its share of any expenses incurred jointly.

The Company accounts for the assets, liabilities, revenues and expenses relating to its interest in a
joint operation in accordance with the standards applicable to the particular assets, liabilities,
revenues and expenses.

F. Investment property

Property that is held for long-term rental yields or for capital appreciation or both, and that is not
occupied by the Company, is classified as investment property. Investment property is measured
initially at its cost, including related transaction costs and where applicable borrowing costs.
Subsequent expenditure is capitalised 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 derecognised.

Investment properties are subsequently measured at cost less depreciation. Investment
properties are depreciated using the straight-line method over their estimated useful lives.
Investment properties generally have a useful life of 25-40 years. The useful life has been
determined based on technical evaluation performed by the management''s expert.

G. Impairment

At the end of each reporting year, the Company reviews the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any). Where it is not possible to estimate
the recoverable amount of an individual asset, the Company estimates the recoverable amount of
the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of
allocation can be identified, corporate assets are also allocated to individual cash-generating
units, or otherwise they are allocated to the smallest group of cash-generating units for which a
reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are
tested for impairment at least annually, and whenever there is an indication that the asset may be
impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that refects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised immediately in the Statement of Profit and
Loss.

Goodwill and intangible assets that do not have definite useful life are not amortised and are
tested at least annually for impairment. If events or changes in circumstances indicate that they
might be impaired, they are tested for impairment once again.

H. Non-current assets or disposal held for sale and discontinued operations

Non-current assets or disposal held for sale

"Non-current assets or disposal groups are classified as held for sale if their carrying amounts will
be recovered principally through a sale transaction rather than through continuing use. Such
assets or disposal groups are classified only when both the conditions are satisfied -

1. The sale is highly probable, and

2. The asset or disposal group is available for immediate sale in its present condition subject only
to terms that are usual and customary for sale of such assets."

Management must be committed to the sale, which should be expected to qualify for recognition
as a completed sale within one year from the date of classification as held for sale, and actions
required to complete the plan of sale should indicate that it is unlikely that significant changes to
the plan will be made or that the plan will be withdrawn. Non Current assets or disposal group are
presented separately from the other assets in the balance sheet. The liabilities of a disposal group
classified as held for sale are presented separately from other liabilities in the balance sheet.

Upon classification, non-current assets or disposal group held for sale are measured at the lower
of carrying amount and fair value less costs to sell. Non-current assets which are subject to
depreciation are not depreciated or amortized once those classified as held for sale.

Discontinued operation

A discontinued operation is a component of the entity that has been disposed of or is classified as
held for sale and that represents a separate major line of business or geographical area of
operations, is part of a single co-ordinated plan to dispose of such a line of business or area of
operations, or is a subsidiary acquired exclusively with a view to resale. The results of
discontinued operations are presented separately in the statement of profit and loss.

I. Government grants

Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attached to them and that the grants will be received.

Government grants are recognised in the Statement of Profit and Loss on a systematic basis over
the years in which the Company recognises as expenses the related costs for which the grants are
intended to compensate or when performance obligations are met.

Government grants, whose primary condition is that the Company should purchase, construct or
otherwise acquire non-current assets and non monetary grants are recognised and disclosed as
''deferred income'' under non-current liability in the Balance Sheet and transferred to the
Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related
assets.

The benefit of a government loan at a below-market rate of interest and effect of this favourable
interest is treated as a government grant. The loan or assistance is initially recognised at fair value
and the government grant is measured as the difference between proceeds received and the fair
value of the loan based on prevailing market interest rates and recognised to the income
statement immediately on fulfilment of the performance obligations. The loan is subsequently
measured as per the accounting policy applicable to financial liabilities.

J. Revenue recognition

Revenue is recognised at an amount that refects the consideration to which the Company
expects to be entitled in exchange for transferring the promised goods or services to a customer
i.e. on transfer of control of the goods or service to the customer. Revenue from sales of goods or
rendering of services is net of Indirect taxes, returns and variable consideration on account of
discounts and schemes offered by the Company as part of the contract.

Income From Operations

Revenue is recognised at the transaction price that is allocated to the performance obligation.
Revenue includes room revenue, food and beverage sale and use of Conference Hall and meeting
room services which is recognised once the rooms are occupied, food and beverages are sold and
Conference Hall and meeting room used have been provided as per the contract with the
customer.

Revenue from Event & Exibition services are recognised when the services are rendered and the
same becomes chargeable or when collectability is certain. This includes Tent City Room revenue
and food and beverage revenue. These contracts for event service are generally of short-term in
nature. Revenue is recognised in the period in which services are being rendered.

Sale of goods

Revenue is measured at the fair value of the consideration received or receivable. The Company
recognises revenues on sale of mateials, net of discounts, sales incentives, rebates granted,
returns, sales taxes/GST and duties when the products are delivered to customer, which is when
title and risk and rewards of ownership pass to the customer.

Dividend Income

Interest Income

Interest income from a financial asset is recognised when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably. Interest
income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset''s net carrying amount on initial
recognition.

K. Estimation of value for inventories

Inventory is stated at the lower of cost and net realizable value (NRV). NRV for completed
inventory is assessed by reference to market conditions and prices existing at the reporting date
and is determined by the Company, based on comparable transactions identified. Cost of
inventories comprises of cost of purchase, cost of conversion and other costs net of recoverable
taxes incurred in bringing them to their respective present location and condition. Trade
discounts and rebates are deducted in determining the cost of purchase.

L. Leases

The Company recognizes a right-of-use asset (ROU) and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases with a term of twelve months or less (shortÂ¬
term leases) and low value leases. For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the term of
the lease. Certain lease arrangements includes the options to extend or terminate the lease
before the end of the lease term. ROU assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made at or prior to the commencement date of the
lease plus any initial direct costs less any lease incentives.

They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over
the shorter of the useful life of the asset or the balance lease term of the underlying asset. Right of
use assets are evaluated for recoverability whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.

The lease liability is initially measured at amortized cost at the present value of the future lease
payments. The lease payments are discounted using the interest rate implicit in the lease or, if not
readily determinable, using the incremental borrowing rates in the country of domicile of the
leases. Lease liabilities are re-measured with a corresponding adjustment to the related right of
use asset if the company changes its assessment if whether it will exercise an extension or a
termination option.

Lease liability and ROU asset shall be separately presented in the Balance Sheet and lease
payments shall be classified as financing cash flows.

M. Foreign exchange translation

The functional currency of the Company is Indian Rupees which represents the currency of the
primary economic environment in which it operates.

Foreign currency transactions are translated into the functional currency using the exchange
rates at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions are generally recognised in profit or loss. Monetary balances
arising from the transactions denominated in foreign currency are translated to functional
currency using the exchange rate as on the reporting date. Any gains or loss on such translation,
are generally recognised in profit or loss. Foreign exchange differences are deferred in equity if
they relate to qualifying cash flow hedges and qualifying net investment hedges or are
attributable to part of the net investment in a foreign operation. A monetary item for which
settlement is neither planned nor likely to occur in the foreseeable future is considered as a part of
the entity''s net investment in that foreign operation.

Exchange differences on monetary items are recognised in Statement of Profit and Loss in the
year in which they arise.

Non-monetary items that are measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined.

N. Income taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are recognised in the Statement of Profit and
Loss, except when they relate to items that are recognised in Other Comprehensive Income or
directly in equity, in which case, the current and deferred tax are also recognised in Other
Comprehensive Income or directly in equity, respectively.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit
before tax'' as reported in the Statement of Profit and Loss because of items of income or expense
that are taxable or deductible in other years and items that are never taxable or deductible. The
Company''s current tax is calculated using tax rates and laws that have been enacted or
substantively enacted by the end of the reporting period.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to
set off the recognised amounts and there is an intention to settle the asset and the liability on a
net basis.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the Financial Statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised for all deductible temporary differences
to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not
recognised if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill. Deferred income tax is recognised using
the balance sheet approach.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at
each reporting date and are recognised to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Deferred tax items are recognised in
correlation to the underlying transaction either in Other Comprehensive Income or directly in
equity.

O. Borrowing costs

Borrowing costs, general or specific, that are directly attributable to the acquisition or
construction of qualifying assets is capitalized as part of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for intended use. All other borrowing
costs are charged to the Statement of Profit and Loss.

The Company determines the amount of borrowing costs eligible for capitalisation as the actual
borrowing costs incurred on that borrowing during the year less any interest income earned on
temporary investment of specific borrowings pending their expenditure on qualifying assets, to
the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying
asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying
asset, borrowing costs eligible for capitalisation are determined by applying a capitalisation rate
to the expenditures on that asset.

Borrowing cost includes exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the finance cost.

Mar 31, 2024

2 Significant Accounting Policies

2.1 Basis of preparation of financial statements

The separate financial statements of the company are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on the accrual basis as per the provisions of the Companies Act, 2013 ("the Act"), except for

â¢ Financial instruments - measured at fair value;

â¢ Assets held for sale - measured at fair value less cost of sale;

â¢ Plan assets under defined benefit plans - measured at fair value

â¢ Employee share-based payments - measured at fair value

â¢ In addition, the carrying values of recognised assets and liabilities, designated as hedged items in fair value hedges that would otherwise be carried at cost, are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationship.

The Standalone Financial Statements have been presented in Indian Rupees (INR), which is the Company''s functional currency. All financial information presented in INR has been rounded off to the nearest two decimals of Lakh, unless otherwise stated.

Current and non-current classification

An asset is classified as current when it satisfies any of the following criteria:

â¢ it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle or

â¢ It is expected to be realised within 12 months after the reporting date; or

â¢ It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

â¢ All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

â¢ It is expected to be settled in the Company''s normal operating cycle;

â¢ It is held primarily for the purpose of being traded

â¢ It is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

â¢ All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current only

The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as twelve months.

2.2 Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the accompanying disclosure, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

The Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation.

2.3 Summary of Significant accounting policies

A summary of the significant accounting policies applied in the preparation of the financial statements are as given below. These accounting policies have been applied consistently to all the periods presented in the financial statements.

A Property, plant and equipment Recognition and measurement

The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and any expected costs of decommissioning. Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance, are charged to the Statement of Profit and Loss in the year in which the costs are incurred. Major shutdown and overhaul expenditure is capitalised as the activities undertaken improves the economic benefits expected to arise from the asset.

It includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company''s accounting policy based on Ind AS 23 - Borrowing costs. Such properties are classified to the appropriate categories of PPE when completed and ready for intended use.

Assets in the course of construction are capitalised in the assets under construction account. At the point when an asset is operating at management''s intended use, the cost of construction is transferred to the appropriate category of property, plant and equipment and depreciation commences. Costs associated with the commissioning of an asset and any obligatory decommissioning costs are capitalised where the asset is available for use but incapable of operating at normal levels until a year of commissioning has been completed.

Property, plant and equipment except freehold land held for use in the production, supply or administrative purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated impairment losses, if any.

The Company has elected to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements on transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Subsequent expenditure and componentization

Subsequent costs related to an item of Property, Plant and Equipment are included in its carrying amount or recognised as a separate asset, as appropriate, only when it is probable that the future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Subsequent costs are depreciated over the residual life of the respective assets. All other expenses on existing Property, Plant and Equipments, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred.

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

Decommissioning costs

Decommissioning cost includes cost of restoration. Provision for decommissioning costs is recognized when the Company has a legal or constructive obligation to plug and abandon a well, dismantle and remove a facility or an item of Property, Plant and Equipment and to restore the site on which it is located. The full eventual estimated provision towards costs relating to dismantling, abandoning and restoring sites and other facilities are recognized in respective assets when the site is complete / facilities or Property, Plant and Equipment are installed.

Depreciation and useful life

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using straight line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of following categories of assets, in whose case the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc.

In respect of Leasehold Improvements, depreciation is based on the tenure which is lower of the life of the assets or the expected lease period. Improvements to leased Assets are depreciated based on their estimated useful lives/ expected lease period.

The property, plant and equipment acquired under finance leases is depreciated over the lower of the asset''s useful life or the lease term, if there is no reasonable certainty that the Company will obtain ownership at the end of the lease term.

Major overhaul costs are depreciated over the estimated life of the economic benefit derived from the overhaul. The carrying amount of the remaining previous overhaul cost is charged to the Statement of Profit and Loss if the next overhaul is undertaken earlier than the previously estimated life of the economic benefit.

The Company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.

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

Leasehold Improvements assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and impairment losses. Amortisation is recognised on a straight-line basis over the lower of useful life of the assets or lease term.

Derecognition

An item of PPE is de-recognised 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 the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss.

B Intangible assets

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 year, 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.

Where intangible asset is acquired in a business combination, it is measured at its acquisition date fair value.

Internally generated intangible asset is recognised as an asset in the books only and only when the company develops an identifiable intangible asset and the following criteria are satisfied:

â¢ It is technically feasible to complete the software so that it will be available for use

â¢ Management intends to complete the software and use or sell it

â¢ There is an ability to use or sell the software

â¢ It can be demonstrated how the software will generate probable future economic benefits

â¢ Adequate technical, financial and other resources to complete the development and to use or sell the software are available, and

â¢ The expenditure attributable to the software during its development can be reliably measured.

Directly attributable costs that are capitalised as part of the intangible asset include employee costs and an appropriate portion of relevant overheads. Capitalised development costs are recorded as intangible assets and amortised from the point at which the asset is available for use.

Useful life and amortisation

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and impairment losses. Amortisation is recognised on a straight-line basis over the useful lives of the asset from the date of capitalisation as below:

Brands or Trademarks ---> 10 Years

The estimated useful life is reviewed at the end of each reporting period and the effect of any changes in estimate is accounted for prospectively.

Intangible assets acquired in a business combination viz. Goodwill, Patents, Copyrights and Brands do not have definite useful life and thus, are not amortised. However, these assets are tested for impairment on an annual basis. These are further tested for impairment upon any indication of impairment subsequent to annual testing.

Derecognition

Intangible assets are derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount.

The Company has elected to continue with carrying value of all its intangible assets recognised as on transition date, measured as per the previous GAAP and use that carrying value as its deemed cost as of transition date.

C Capital Work in Progress

Capital work in progress (CWIP) comprises of Property, Plant and Equipment that are not ready for their intended use at the end of reporting period and are carried at cost. Cost of CWIP comprises direct cost, related incidental expenses, borrowing cost and other directly attributable costs.

D Investments in subsidiaries, associates and joint ventures

The investments in subsidiaries, associates and joint ventures are carried in these financial statements at historical ''cost'', except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations. Where the carrying amount of an investment in greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Statement of Profit and Loss. On disposal of investment the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

E Investment in joint operation

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

When the Company undertakes its activities under joint operations, the Company as a joint operator recognises in relation to its interest in a joint operation:

â¢ Its assets, including its share of any assets held jointly;

â¢ Its liabilities, including its share of any liabilities incurred jointly;

â¢ Its revenue from the sale of its share of the output arising from the joint operation;

â¢ Its share of the revenue from the sale of the output by the joint operation; and

â¢ Its expenses, including its share of any expenses incurred jointly.

The Company accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the standards applicable to the particular assets, liabilities, revenues and expenses.

F Investment property

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised 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 derecognised.

Investment properties are subsequently measured at cost less depreciation. Investment properties are depreciated using the straight-line method over their estimated useful lives. Investment properties generally have a useful life of 25-40 years. The useful life has been determined based on technical evaluation performed by the management''s expert.

G Impairment

At the end of each reporting year, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Profit and Loss.

Goodwill and intangible assets that do not have definite useful life are not amortised and are tested at least annually for impairment. If events or changes in circumstances indicate that they might be impaired, they are tested for impairment once again.

H Non-current assets or disposal held for sale and discontinued operations Non-current assets or disposal held for sale

"Non-current assets or disposal groups are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Such assets or disposal groups are classified only when both the conditions are satisfied -

1. The sale is highly probable, and

2. The asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such assets."

Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale, and actions required to complete the plan of sale should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Non Current assets or disposal group are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

Upon classification, non-current assets or disposal group held for sale are measured at the lower of carrying amount and fair value less costs to sell. Non-current assets which are subject to depreciation are not depreciated or amortized once those classified as held for sale.

Discontinued operation

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of profit and loss.

I Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants are recognised in the Statement of Profit and Loss on a systematic basis over the years in which the Company recognises as expenses the related costs for which the grants are intended to compensate or when performance obligations are met.

Government grants, whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets and non monetary grants are recognised and disclosed as ''deferred income'' under non-current liability in the Balance Sheet and transferred to the Statement of Profit and Loss on a systematic and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest and effect of this favourable interest is treated as a government grant. The loan or assistance is initially recognised at fair value and the government grant is measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates and recognised to the income statement immediately on fulfilment of the performance obligations. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

J Revenue recognition

Revenue is recognised at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services to a customer i.e. on transfer of control of the goods or service to the customer. Revenue from sales of goods or rendering of services is net of Indirect taxes, returns and variable consideration on account of discounts and schemes offered by the Company as part of the contract.

Income From Operations

Revenue is recognised at the transaction price that is allocated to the performance obligation. Revenue includes room revenue, food and beverage sale and use of Conference Hall and meeting room services which is recognised once the rooms are occupied, food and beverages are sold and Conference Hall and meeting room used have been provided as per the contract with the customer.

Revenue from Event & Exibition services are recognised when the services are rendered and the same becomes chargeable or when collectability is certain. This includes Tent City Room revenue and food and beverage revenue. These contracts for event service are generally of short-term in nature. Revenue is recognised in the period in which services are being rendered.

Sale of goods

Revenue is measured at the fair value of the consideration received or receivable. The Company recognises revenues on sale of mateials, net of discounts, sales incentives, rebates granted, returns, sales taxes/GST and duties when the products are delivered to customer, which is when title and risk and rewards of ownership pass to the customer.

Dividend Income

Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

K Estimation of value for inventories

Inventory is stated at the lower of cost and net realizable value (NRV). NRV for completed inventory is assessed by reference to market conditions and prices existing at the reporting date and is determined by the Company, based on comparable transactions identified. Cost of inventories comprises of cost of purchase, cost of conversion and other costs net of recoverable taxes incurred in bringing them to their respective present location and condition. Trade discounts and rebates are deducted in determining the cost of purchase.

L Leases

The Company recognizes a right-of-use asset (ROU) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (shortterm leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.

They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the useful life of the asset or the balance lease term of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are re-measured with a corresponding adjustment to the related right of use asset if the company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset shall be separately presented in the Balance Sheet and lease payments shall be classified as financing cash flows.

M Foreign exchange translation

The functional currency of the Company is Indian Rupees which represents the currency of the primary economic environment in which it operates.

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are generally recognised in profit or loss. Monetary balances arising from the transactions denominated in foreign currency are translated to functional currency using the exchange rate as on the reporting date. Any gains or loss on such translation, are generally recognised in profit or loss. Foreign exchange differences are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. A monetary item for which settlement is neither planned nor likely to occur in the foreseeable future is considered as a part of the entity''s net investment in that foreign operation.

Exchange differences on monetary items are recognised in Statement of Profit and Loss in the year in which they arise.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

N Income taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred tax are recognised in the Statement of Profit and Loss, except when they relate to items that are recognised in Other Comprehensive Income or directly in equity, in which case, the current and deferred tax are also recognised in Other Comprehensive Income or directly in equity, respectively.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the end of the reporting period.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill. Deferred income tax is recognised using the balance sheet approach.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in Other Comprehensive Income or directly in equity.

O Borrowing costs

Borrowing costs, general or specific, that are directly attributable to the acquisition or construction of qualifying assets is capitalized as part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

The Company determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on that borrowing during the year less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalisation are determined by applying a capitalisation rate to the expenditures on that asset.

Borrowing cost includes exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the finance cost.

Mar 31, 2023

Significant Accounting Policies

1 Corporate Information

These statements comprise the Standalone Financial Information of Praveg Limited (Formerly Known as Praveg
Communications (India) Limited) (the Company). The Company is domiciled in India, incorporated on February 28,
1995 under the provisions of the Companies Act applicable in India and listed on Bombay Stock Exchange. The
registered office of the company is located at 214, Athena Avenue, Behind Jaguar Showroom, S.G. Highway, Gota,
Ahmedabad GJ 382481, India.

The Company is principally engaged in business of providing services of Advertising, Hospitality, Management and
organization of Events and Exhibitions.

Statement of compliance

Standalone Financial Statements have been prepared in accordance with the accounting principles generally
accepted in India including Indian Accounting Standards (Ind AS) prescribed under the Section 133 of the
Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended
and relevant provisions of the Companies Act, 2013.

2 Significant Accounting Policies

2.1 Basis of preparation of financial statements

â¢ Financial instruments - measured at fair value;

â¢ Assets held for sale - measured at fair value less cost of sale;

â¢ Plan assets under defined benefit plans - measured at fair value

â¢ Employee share-based payments - measured at fair value

Current and non-current classification

An asset is classified as current when it satisfies any of the following criteria:

â¢ It is expected to be realised in, or is intended for sale or consumption in, the Company''s normal
operating cycle or

â¢ It is expected to be realised within 12 months after the reporting date; or

â¢ It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting date.

â¢ All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

â¢ It is expected to be settled in the Company''s normal operating cycle;

â¢ It is held primarily for the purpose of being traded

â¢ All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current only

consistently applied except where a newly issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy hitherto in use.

For the purpose of current/non-current classification of assets and liabilities, the Company has ascertained its
normal operating cycle as twelve months.

2.2 Use of estimates and judgments

The areas involving critical estimates or judgments are:

Areas Note No.

â¢ Useful life of intangible asset 2.3-B

â¢ Impairment of financial assets 2.3-G

â¢ Defined benefit obligation 2.3-Q

â¢ Recognition of revenue and allocation of transaction price 2.3-J

â¢ Current tax expense and current tax payable 2.3-N

â¢ Deferred tax assets for carried forward tax losses 2.3-N

2.3 Summary of Significant accounting policies

A Property, plant and equipment
Recognition and measurement

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

Decommissioning costs

Depreciation and useful life

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value. Depreciation is recognised so as to write off the cost of assets (other
than freehold land and properties under construction) less their residual values over their useful
lives, using written down value method as per the useful life prescribed in Schedule II to the
Companies Act, 2013 except in respect of following categories of assets, in whose case the life of
the assets has been assessed as under based on technical advice, taking into account the nature
of the asset, the estimated usage of the asset, the operating conditions of the asset, past history
of replacement, anticipated technological changes, manufacturers warranties and maintenance
support, etc.

The property, plant and equipment acquired under finance leases is depreciated over the asset''s
useful life or over the shorter of the asset''s useful life and the lease term if there is no reasonable
certainty that the Company will obtain ownership at the end of the lease term.

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

Leasehold Improvements assets with finite useful lives that are acquired separately are carried at
cost less accumulated amortisation and impairment losses. Amortisation is recognised on a
straight-line basis over the lower of useful life of the assets or lease term.

Derecognition

B Intangible assets

Where intangible asset is acquired in a business combination, it is measured at its acquisition date
fair value.

Internally generated intangible asset is recognised as an asset in the books only and only when
the company develops an identifiable intangible asset and the following criteria are satisfied:

â¢ It is technically feasible to complete the software so that it will be available for use

â¢ Management intends to complete the software and use or sell it

â¢ There is an ability to use or sell the software

â¢ It can be demonstrated how the software will generate probable future economic benefits

â¢ Adequate technical, financial and other resources to complete the development and to use
or sell the software are available, and

â¢ The expenditure attributable to the software during its development can be reliably
measured.

Directly attributable costs that are capitalised as part of the intangible asset include employee
costs and an appropriate portion of relevant overheads. Capitalised development costs are
recorded as intangible assets and amortised from the point at which the asset is available for use.

Useful life and amortisation

Brands or Trademarks ---> 10 Years

The estimated useful life is reviewed at the end of each reporting period and the effect of any
changes in estimate is accounted for prospectively.

Derecognition

C Capital Work in Progress

D Investments in subsidiaries, associates and joint ventures

When the Company undertakes its activities under joint operations, the Company as a joint
operator recognises in relation to its interest in a joint operation:

â¢ Its assets, including its share of any assets held jointly;

â¢ Its liabilities, including its share of any liabilities incurred jointly;

â¢ Its revenue from the sale of its share of the output arising from the joint operation;

â¢ Its share of the revenue from the sale of the output by the joint operation; and

â¢ Its expenses, including its share of any expenses incurred jointly.

F Investment property

G Impairment

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value
in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.

H Non-current assets or disposal held for sale and discontinued operations
Non-current assets or disposal held for sale

Non-current assets or disposal groups are classified as held for sale if their carrying amounts will
be recovered principally through a sale transaction rather than through continuing use. Such
assets or disposal groups are classified only when both the conditions are satisfied -

1. The sale is highly probable, and

2. The asset or disposal group is available for immediate sale in its present condition subject
only to terms that are usual and customary for sale of such assets.

Discontinued operation

I Government grants

Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attached to them and that the grants will be received.

J Revenue recognition

Revenue is recognised at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for transferring the promised goods or services to a customer
i.e. on transfer of control of the goods or service to the customer. Revenue from sales of goods or
rendering of services is net of Indirect taxes, returns and variable consideration on account of
discounts and schemes offered by the Company as part of the contract.

Income From Operations

Sale of goods

Dividend Income

Interest Income

K Estimation of value for inventories

L Leases

They are subsequently measured at cost less accumulated depreciation and impairment losses.

Lease liability and ROU asset shall be separately presented in the Balance Sheet and lease
payments shall be classified as financing cash flows.

M Foreign exchange translation

The functional currency of the Company is Indian Rupees which represents the currency of the
primary economic environment in which it operates.

Exchange differences on monetary items are recognised in Statement of Profit and Loss in the
year in which they arise.

Non-monetary items that are measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined.

N Income taxes

Current tax

Deferred tax

O Borrowing costs

Borrowing cost includes exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the finance cost.

Mar 31, 2022

A Overview and Significant Accounting Policies

1 Company overview

These statements comprise the Standalone Financial Information of Praveg Communications (India) Limited (the Company). The Company is domiciled in India, incorporated on February 28, 1995 under the provisions of the Companies Act applicable in India and listed on Bombay Stock Exchange. The registered office of the company is located at 214, Athena Avenue, Behind Jaguar Showroom, S.G. Highway, Gota, Ahmedabad GJ 382481, India.

The Company is now principally engaged in business of providing services of Advertising, Hospitality, Management and organization of Events and Exhibitions.

2 Significant Accounting Policies

Statement of compliance

Standalone Financial Statements have been prepared in accordance with the accounting principles generally accepted in India including Indian Accounting Standards (Ind AS) prescribed under the Section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and relevant provisions of the Companies Act, 2013.

2.1 Basis of preparation of financial statements

The separate financial statements of the company are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on the accrual basis as per the provisions of the Companies Act, 2013 ("the Act"), except for

â¢ Financial instruments - measured at fair value;

â¢ Assets held for sale - measured at fair value less cost of sale;

â¢ Plan assets under defined benefit plans - measured at fair value

â¢ Employee share-based payments - measured at fair value

â¢ In addition, the carrying values of recognised assets and liabilities, designated as hedged items in fair value hedges that would otherwise be carried at cost, are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationship.

Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset is classified as current when it satisfies any of the following criteria: it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle.

â¢ It is expected to be realised within 12 months after the reporting date; or

â¢ It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

â¢ All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

â¢ It is expected to be settled in the Company''s normal operating cycle;

â¢ It is held primarily for the purpose of being traded

â¢ It is due to be settled within 12 months after the reporting date; or the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

â¢ All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current only

The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The Standalone Financial Statements have been presented in Indian Rupees (INR), which is the Company''s functional currency. All financial information presented in INR has been rounded off to the nearest two decimals of Lakh, unless otherwise stated.

2.2 Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation.

The areas involving critical estimates or judgments are:

Areas	Note No.
â¢ Useful life of intangible asset	2.3-E
â¢ Impairment of financial assets	2.3-F
â¢ Defined benefit obligation	2.3-P
â¢ Recognition of revenue and allocation of transaction price	2.3-I
â¢ Current tax expense and current tax payable	2.3-M
â¢ Deferred tax assets for carried forward tax losses	2.3-M

Estimates and judgments are regularly revisited. Estimates are based on historical experience and other factors, including futuristic reasonable information that may have a financial impact on the company.

Estimation of uncertainties relating to the global health pandemic from COVID-19:

The Company has taken into account all the possible impacts of COVID-19 in preparation of these standalone financial statements, including but not limited to its assessment of, liquidity and going concern assumption, recoverable values of its financial and non-financial assets, impact on revenue recognition owing to changes in cost budgets of fixed price contracts, impact on leases and impact on effectiveness of its hedges. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these standalone financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the standalone financial statements may differ from that estimated as at the date of approval of these standalone financial statements owing to the nature and duration of COVID-19.

2.3 Summary of Significant accounting policies

A summary of the significant accounting policies applied in the preparation of the financial statements is as given below. These accounting policies have been applied consistently to all the periods presented in the financial statements.

A Investments in subsidiaries, associates and joint ventures

The investments in subsidiaries, associates and joint ventures are carried in these financial statements at historical ''cost'', except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations. Where the carrying amount of an investment in greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Statement of Profit and Loss. On disposal of investment the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

B Investment in joint operation