Accounting Policies of Radiowalla Network Ltd. Company

Mar 31, 2025

l.A Ceneral Information: Corporate Information

RADIOWALLA NETWORK PRIVATE LIMITED ("the Holding Company") was incorporated on 30''¹'' July 2010. The Holding Company is a Private Limited Company incorporated under the provisions of Companies Act, 1956, and Rules and Regulations framed thereunder. The Holding Companv and its wholly owned subsidiaries constitute the Group. The Group is is engaged in the business of setting up In-store audio channels network. The registered address of the company at 16/ A, Maratha Bhawan, Basement Floor, Miller Tank Bund Road, Vasanth Nagar, H.K.P. Road, Bangalore, Bangalore North, Karnataka, India, 560051.

1.B Statement of Compliance

These consolidated financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules as amended from time to time.

2.0. Material Accounting Policies:

2.1. Basis of Preparation

Tirese consolidated financial statements have been prepared on historical cost basis except for certain financial instruments and defined benefit plans which are measured at fair value or amortised cost at tire end of each reporting period. Historical cost is generally based on tire fair value of tire consideration given in exchange for goods and services. Fair value is tire price that would be received to sell an asset or paid to transfer a liability in air orderly transaction between market participants at the measurement date. All assets and liabilities have been classified as current and non-current as per the Group''s normal operating cycle. Based on the nature of services rendered to customers and time elapsed between deployment of resources and fhe realisation in cash and cash equivalents of the consideration for such services rendered, the Group has considered an operating cycle of 12 months.

''Hie statement of cash flows has been prepared under indirect method, whereby profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated. ''Hie Group considers all highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value to be cash equivalents.

The functional currency of the Company and its Indian subsidiaries is the Indian Rupee (?). Foreign currency transactions are recorded

at

exchange rates prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are retranslated at the exchange rate prevailing on the balance sheet dates and exchange gains and losses arising on settlement and restatement are recognised in the statement of profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated.

The material accounting policy information related to preparation of the consolidated financial statements have been discussed in tine respective notes.

2.2. Presentation of the Consolidated Financial Statements

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

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, Level 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety which are described as follows:

Level 1 — inputs are quoted (unadjusted) prices in active markets for identical assets or liabilities that the entity can access at fine measurement date;

Level 2 — inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability either directly or indirectly.

Level 3 — inputs are unobservable inputs for the assets or liability.

2.3. Basis of Consolidation

The Consolidated Financial Statements incorporates the financial infoimation of the Holding Company, its subsidiary’. Control is achieved when the Company:

• has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of tire three elements of control listed above.

Consolidation of a subsidiary begins when the company obtains control over the subsidiary and ceases when the Group loses control of tire subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Group. Iotal comprehensive income of subsidiaries is attributed to the owners of the Group.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Principles of Consolidation

Hie Consolidated Financial Statements relate to Radiowalla Network Private Limited (the ''Holding Company'') and its subsidiaries. The Consolidated Financial Information have been prepared on the following basis:

Tile financial information of the subsidiary companies is drawn upto tire same reporting date as that of the Group for each of the ^a’ reporting period covered by consolidated financial Information.

The financial information of the Holding Company and its subsidiary companies have been combined on a line-by-line basis by adding

b. together like items of assets, liabilities, income and expenses, after eliminating intra-group balances, intra-group transactions and resulting unrealised profits or losses, unless cost cannot be recovered.

Investment in Associates - Investments ill entities where the Group has significant influence (associate) is accounted under the equity method as prescribed by Indian Accounting Standard 28. Investments in Associates and Joint Ventures ("Ind AS 28"). Under the equity

c. method, on initial recognition tire investment in an associate has been recognized at cost, and the carrying amount has been increased or decreased to recognize the Group''s share of die profit or loss of the investee after the date of acquisition. The Group''s share of the investee''s profit or loss has been recognized in the statement of profit or loss.

d.	Following companies have been considered in the preparation of the consolidated financial Information:
					% of Holding and voting power either directly or
	Name of the Entity	Relationship	Country of Incorporation	Ownership Held by	indirectly at each reporting period covered under the Restated Consolidated Financial Information
	Decibel Media Private Limited	Wholly owned Subsidiary	India	Radiowalla Network Private Limited	100%

e. The Consolidated Financial Information has been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the Group''s separate financial statements.

2.4. Revenue Recognition

a) The Group has applied Ind AS 115 Revenue from Contracts with Customers which establishes a comprehensive framework for determining Whether, how much and when revenue is to be recognised. Under Ind AS 115, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for rendering services to a customer. Tire standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances related to contracts with their customers.

b) Tire Group recognise revenue when the significant terms of the arrangement are enforceable, sen-ices have been delivered and tire collectability is reasonably assured. The Group recognise revenue based on two main models: services rendered at a point in time and services rendered over time:

Services rendered at a point in time: Revenues and costs relating to time and service contracts are recognised as die related services are rendered.

Services rendered over time: Revenue from annual fee contracts is recognised proportionately over die period of the contract. When services are performed through an indefinite number of repetitive acts over a specified period of time, revenue is recognised on a straight-line basis over die specified period or under some other method that better represents the stage of completion.

c) Interest income is accounted on accrual basis. For financial instruments measured at amortised cost, interest income is recorded using

the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life

of the financial instrument or a shorter period, where appropriate, to die gross carrying amount of the financial asset or to the amortised

cost of a financial liability.

d) Dividend income is accounted for when the right to receive it is established.

2.5 Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantiallv all the risks and rewards incidental to ownership to the lessee.

As a Lessee -

At die date of commencement of the lease, die Group 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 (short-term leases) and low value leases. For diese short-term and low value leases, die Group recognizes die lease payments as an operating expense on a straight-line basis over die term of die lease.

Certain lease arrangements include the options to extend or terminate die lease before die 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 lease term and useful life 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. For the purpose of impairment testing, die recoverable amount (I.e., the higher of die fair value less cost to sell and die value-in-use) is determined on an individual asset basis unless die asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which die asset belongs.

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 die lease or, if not readily determinable, using the incremental borrowing rates in die country of domicile of these leases. Lease liabilities are remeasured 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 have been separately presented in the Balance Sheet and lease payments have been adjusted towards rent expenses in the Statement of Profit and Loss.

Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to die existing standards under Companies (Indian

Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has notified lnd AS - 117 Insurance

Contracts and amendments to lnd AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Group W.e.f. April 1,

2024. The Group has reviewed the new pronouncements and based on its evaluation has determined that it does not have any

significant impact in its financial statements.

2.6. Employee Benefits

Employee benefits include provident fund, superannuation fund, gratuity fund, and compensated absences.

Defined Contribution Plan:

Tile Group’s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

i Provident Fund:

Employees are entitled to receive benefits in respect of provident fund, m which both employees and the Group make monthly contributions at a specified percentage of the covered employees'' salary (currently 12% of employees'' basic salarv).

Defined Benefit Plans

i Gratuity:

Tire Group accounts for the net present value of its obligations for gratuity benefits based on an independent external actuarial valuation determined on the basis of the projected unit credit method carried out at the Balance Sheet date. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in retained earnings and is not reclassified to profit and loss. Past sendee cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit cost are categorised as follows:

• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• Net interest expense or income; and

• Remeasurement

ii Other Employee Benefits:

Performance Incentive and Compensated Absences:

The amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the services. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of tire period in which the employee renders the related service.

Tire Group accounts for the net present value of its obligations for compensated absences based on an independent external actuarial valuation carried out at the Balance Sheet date. Tire cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when tire absences occur.

Method used for Accounting for Share Based Payment Plan:

Tire stock options granted to employees pursuant to tire Bank Stock options Schemes, are measured at the fair value of the options at the grant date using Black-Scholes model, lire fair value of the options determined at grant date is recognised as employee compensation cost over the vesting period on straight line basis over tire period of option, based on the number of grants expected to vest, with corresponding increase in equity

2.7. Tax on Income

Income tax expense represents the sum of the tax currently payable and deferred tax. i. Current Tax The

tax currently payable is based on taxable profit for the year. Taxable profit differs from ''Profit Before Tax'' ns 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.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, in accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards (ICDS) prescribed therein The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

ii. Deferred Tax

Deferred tax is recognised on the temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets are generally recognised for all deductible temporary differences to tire extent that it is probable that taxable profits wiU be available against which deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

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

iii. Current and Deferred Tax for the year

Current and deferred tax are recognised in profit or 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.

2.8. Property, Plant &: Equipment

Property, Plant <§r Equipment earned at cost less accumulated depreciation and amortisation and impairment losses, if any. The cost comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from tire tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to tire date tire asset is ready for its intended use. i. Capital Work-in-Progress:

Projects under which tangible fixed assets that are not yet ready for their intended use are carried at cost, comprising direct cost, related incidental expenses, and interest attributable.

Intangible Assets

Intangible assets purchased are measured at cost as of the date of acquisition less accumulated amortization and accumulated impairment, if any.

i. Intangible Assets under Development

Projects under which Intangible assets that are not yet ready for their intended use are carried at cost, comprising Development expenses and software expenses.

2.10. Depreciation and Amortisation

Depreciation is charged so as to write off the cost of assets other titan Capital work-in-progress less its estimated residual value over the useful lives as prescribed in Schedule II to the Companies Act, 2013, using the straight-line method.

Intangible assets are amortised on a straight line basis. Computer software is amortised over 24 months or useful life, whichever is lower.

2.11. Provision and Contingencies

A provision is recognised when the Group has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

Provisions are discounted to their present value and are detemuned based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised /disclosed in the consolidated financial information.

Contingent Liabilities and Assets

Contingent liabilities are when there is a possible obligation arising from past events, the existence of which will be confirmed only by die occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources wifi be required to settle or a reliable estimate of the amount cannot be made. Contingent liabilities are not recognised but are disclosed in the notes.

Contingent asset is a possible asset that arises from past events the existence of which will be confirmed only by die occurrence or nonoccurrence of one or more uncertain future events not wholly widiin the control of the enterprise. Contingent assets are neither

recogi\ised nor disclosed in the consolidated financial information.

2.12. Foreign Currency Transactions and Balances

Transactions in foreign currency are translated into die respective functional currencies using die exchange rates prevailing at the dates of die respective transactions. Foreign exchange gains and losses resulting from die settlement of such transactions and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Profit and Loss and reported within foreign exchange gains/ (losses).

2.13. Financial Instruments

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments. All financial instruments are recognised initially at fair value.

2.14. Financial Assets

Financial assets are (Investment in Mutual Funds, Non- Convertible Debentures, Bonds and Government Securities) classified into die following specified categories: financial assets "at amortised cost", "fair value through other comprehensive income", "fair value through Profit or Loss". The classification depends on the entity''s business model for managing die financial assets and the contractual cash flow characteristics of the financial asset at die time of initial recognition.

Financial assets are recognised by the Group as per its business model.

All Financial Assets are recognized initially at fair value plus, in die case of financial assets not recorded at fair value dirough profit or loss, transaction cost that are attributable to the acquisition of the Financial Asset. However, trade receivables that do not contain a significant financing component are measured at transaction price. Transaction costs directly attributable to the acquisition of financial assets measured at fair value through profit or loss are recognized immediately in the Statement of Profit and Loss.

All equity instruments are measured at fair value other dian investments in unquoted equity¹ shares including investment in subsidiaries and associates. Equity instruments held for trading is classified as FVTPL. For all odier equity instruments, the Group may make an in-evocable election to present subsequent changes in the fair value in OCI. The Group makes such election on an instrument-bv-instrument basis.

Income and expense is recognised on an effective interest basis for debt instrument.

All other investments are classified as Fair Value Iluough Profit or Loss (FVTPL). The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising die use of unobservable inputs.

Impairment of Financial Assets

In accordance with Ind AS 109, die Group applies expected credit loss (ECL) model for measurement and recognition of impairment loss. Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after die initial recognition of die financial asset, die estimated future cash flows of the investment have been impacted.

Objective evidence of impairment could include -

• Significant financial difficulty of tine users or counterparty; or

• Default or delinquency in interest or principal payments; or

• It becoming probable that the borrower will enter bankruptcy or financial reorganization.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade and other receivables. For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and die decrease can be related objectively to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent tine earning amount of the mvestment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment no! been recognised

Expected Credit Losses on t rade Receivables

For trade receivables tile Group measures the loss allowance at dll amount equal to life time expected credit losses. Further, for the purpose of measuring life time expected credit losses for trade receivables, the company follows simplified approach as permitted under Ind AS 109.

De-recognition of Financial Assets

The Group derecognises a financial asset only when tire 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 die asset to another entity. If die Group neither transfers nor retains substantially all die risks and rewards of ownership and continues to control the transferred asset, die Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise die financial asset and also recognises a collateralised borrowing for the proceeds received.

2.15 Impairment of Non-Financial Assets

The Group assesses at each reporting date whether there is any observable evidence that a non-tmanciai asset or a company of non-

financial assets is impaired. If any such indication exists, the Group estimates die amount of impairment loss. An impairment loss is calculated as the difference between an asset’s carrying amount and recoverable amount. Losses are recognised in Statement of profit and loss and reflected in an allowance account. When the Group considers that there are no realistic prospects of recovery of the asset, die relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognised, then the previously recognised impairment loss is reversed through statement of profit and loss.

2.16 Financial Liabilities and Equity Instruments Classification as Debt or Equity

Financial Liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered mto and the definitions of a financial liability and an equity instrument

FquSty Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deduction all of its liabilities

Financial Liabilities:

i. Initial Recognition and Measurement:

Financial liabilities are recognised when the Group becomes a party to the contractual provisions of die instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit and loss.

ii. Subsequent Measurement

Financial liabilities are subsequently measured at amortised cost using die effective interest rate metiiod. Financial liabilities carried at fair value dirough profit or loss are measured at fab value with all changes in lair value recognised in me statement of profit and loss.

Derecognition of Financial Liabilities

The Group derecognises financial liabilities when, and only when, the Group''s obligations are discharged, cancelled or they expire.

2.17. Cash and Cash Equivalents

Cash and cash equivalents comprise of cash on hand, balances in current account and demand deposits with banks having an original maturity of three months or less. These do not include bank balances earmarked/restricted for specific purposes

Bank balances other than cash and cash equivalents comprises of demand deposits with banks having an original maturity of more than

three months.

2.18. Use of Estimates and Judgement

Tlie preparation of consolidated financial information in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, incomes, expenses, disclosure of contingent assets and disclosure of contingent liabilities. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in anv future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial information is included in the following note:

Useful lives of Property, Plant and Equipment/Intangible Assets

Property, Plant and Equipment/ Intangible Assets are depreciated/amortised over their estimated useful lives, after taking into account estimated residual value. Tlie useful lives and residual values are based on the Group''s historical experience with similar assets and

taking into account anticipated teclmological changes or commercial obsolescence. Management reviews tlic estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. Tlie depreciation / amortisation for future periods is revised, if there are significant changes from previous estimates and accordingly, the unamortised/depreciable amount is charged over the remaining useful life of the assets.

Contingent Liabilities and Assets

Contingent Liabilities are disclosed when there is a possible obligation arising from the past events, the existence of which will be confirmed only by the occurrence or non - occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from die past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Income Taxes The Group''s tax jurisdiction is in India. Significant judgments are involved in determining the provision for income taxes,

deferred tax assets and liabilities including the amount expected to be paid or recovered in connection with uncertain tax positions.

Expected Credit Losses on Trade Receivables

Tire Group estimates the probability of collection of trade receivable by analyzing historical payment patterns, customer status, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances are made.

Employee Benefits

Defined employee benefit assets / liabilities determined based on the present value of future obligations using assumptions determined

by tire Company with advice from an independent qualified actuary.

2.19. Operating Cycle

Based on the activities of the Group and tire normal time between acquisition of assets and their realisation in cash or cash equivalents, the Group has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.