Accounting Policies of SDC Techmedia Ltd. Company

Mar 31, 2025

Significant Accounting Policies

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

Basis of preparation of financial statements

(a) Statement of compliance

These Financial Statements have been prepared to comply with the Generally Accepted Accounting Principles in India
(Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.
The financial statements are prepared on accrual basis under the historical cost convention. The financial statements
are presented in Indian Rupees rounded off to the nearest rupee. All income and expenditure having a material
bearing on the Financial Statements are recognized on accrual basis.

(b) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the Management to make estimates
and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the
reported income and expenses during the year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results could differ due to these estimates and the
differences between the accrual results and the estimates are recognized in the periods in which the results are known
/ materialize.

(c) Operating Cycle

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

(d) Functional and Presentation currency

The Financial statements are presented in Indian Rupees, which is the functional currency of company and the
currency of the primary economic environment in which the company operates.

(e) Revenue Recognition
Revenue from Services

Timing of recognition: Revenue from Services is recognised in the accounting period in which the services are
rendered. For fixed price contracts, revenue is recognised based on the actual service provided to the end of the
reporting period as a proportion of the total services to be provided (percentage of completion method).

Measurement of revenue: Estimates of revenues, cost or extent of progress towards completion are revised if
circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or
loss in the period in which the circumstances that give rise to the revision become known to the management.

Dividend and Interest Income

a) Dividend income from investments is recognised when the shareholder’s right to receive payment has been
established (provided that it is probable that the economic benefits will flow to the company and the amount of
income can be measured reliably).

b) 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.

(f) Taxation:

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax:

Income tax expense comprises of current tax and deferred tax charge or credit. Current Tax is determined based on
the taxable income computed in accordance with the provisions of Income Tax Act, 1961.

Deferred tax:

Deferred Tax Assets and Liabilities are recognised for the future tax consequences of timing differences between the
book profit and tax profit. While deferred tax liabilities are recognised immediately, deferred tax assets are recognised
only if there is virtual certainty of taxable profits in the future.

(g) Impairment of assets

The Company assesses at each Balance sheet date whether there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. An asset’s recoverable amount
is the higher of an asset’s or cash generating unit’s net selling price and its value in use. Recoverable amount is
determined for an individual asset, unless the asset does not generate cash inflows from continuing use that are largely
independent of those from other assets or group of assets. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is
reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized in the
Statement of Profit and Loss. If at the Balance Sheet date, there is an indication that a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject
to a maximum of depreciated historical cost and is accordingly reversed in the Statement of Profit and Loss.

(h) Cash and cash equivalents

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

(i) Investments

Investments that are readily realizable and are intended to be held for not more than one year from the date on which
the investments are made, are classified as Current Investments. All other Investments are classified as Long Term
Investments.

Current Investments are stated at lower of cost and fair value. Long Term Investments are carried at cost, after
providing for any diminution in value, if such diminution is other than temporary in nature.

(j) Property Plant and Equipment

(i) Fixed assets are stated at cost less accumulated depreciation. Cost includes non-refundable taxes, duties
and other incidental expenses related to acquisition and installation.

(ii) The carrying value of fixed assets, both tangible and intangible, is reviewed at each Balance Sheet date and
impairment is provided for, if the carrying value of an asset exceeds its recoverable amount.

(iii) Fixed Assets are physically verified every year.

(k) Depreciation and Amortization methods, estimated useful lives and residual value

The Company has aligned the useful life of its fixed assets with those specified in Part C of Schedule II to the Companies
Act, 2013 wherever the useful lives of assets are determined.

The useful lives of the asset are detailed as under:

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Mar 31, 2024

Significant Accounting Policies
1. Corporate Information

SDC Techmedia Limited ("the company") was incorporated on May 30, 2008 under the Companies Act, 1956
having its registered office at Chennai. The company is engaged in the media and entertainment sector.

Significant Accounting Policies

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

Basis of preparation of financial statements

(a) Statement of compliance

These Financial Statements have been prepared to comply with the Generally Accepted Accounting
Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant
provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under
the historical cost convention. The financial statements are presented in Indian Rupees rounded off to
the nearest rupee. All income and expenditure having a material bearing on the Financial Statements
are recognized on accrual basis.

(b) Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the Management to
make estimates and assumptions considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the year. The Management
believes that the estimates used in preparation of the financial statements are prudent and reasonable.
Future results could differ due to these estimates and the differences between the accrual results and
the estimates are recognized in the periods in which the results are known / materialize.

(c) Operating Cycle

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

(d) Functional and Presentation currency

The Financial statements are presented in Indian Rupees, which is the functional currency of company
and the currency of the primary economic environment in which the company operates.

(e) Revenue Recognition
Revenue from Services

Timing of recognition: Revenue from Services is recognised in the accounting period in which the
services are rendered. For fixed price contracts, revenue is recognised based on the actual service
provided to the end of the reporting period as a proportion of the total services to be provided
(percentage of completion method).

Measurement of revenue: Estimates of revenues, cost or extent of progress towards completion are
revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs
are reflected in profit or loss in the period in which the circumstances that give rise to the revision
become known to the management.

Dividend and Interest Income

a) Dividend income from investments is recognised when the shareholder''s right to receive payment

has been established (provided that it is probable that the economic benefits will flow to the
company and the amount of income can be measured reliably).

b) 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.

(f) Taxation:

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax:

Income tax expense comprises of current tax and deferred tax charge or credit. Current Tax is
determined based on the taxable income computed in accordance with the provisions of Income Tax
Act, 1961.

Deferred tax:

Deferred Tax Assets and Liabilities are recognised for the future tax consequences of timing differences
between the book profit and tax profit. While deferred tax liabilities are recognised immediately,
deferred tax assets are recognised only if there is virtual certainty of taxable profits in the future.

(g) Impairment of assets

The Company assesses at each Balance sheet date whether there is any indication that an asset may be
impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. An
asset’s recoverable amount is the higher of an asset’s or cash generating unit''s net selling price and its

value in use. Recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows from continuing use that are largely independent of those from other assets or
group of assets. If such recoverable amount of the asset or the recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying amount, the carrying amount is
reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized
in the Statement of Profit and Loss. If at the Balance Sheet date, there is an indication that a previously
assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated historical cost and is
accordingly reversed in the Statement of Profit and Loss.

(h) Cash and cash equivalents

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

(i) Investments

Investments that are readily realizable and are intended to be held for not more than one year from the
date on which the investments are made, are classified as Current Investments. All other Investments
are classified as Long Term Investments.

Current Investments are stated at lower of cost and fair value. Long Term Investments are carried at
cost, after providing for any diminution in value, if such diminution is other than temporary in nature.

(j) Property Plant and Equipment

(i) Fixed assets are stated at cost less accumulated depreciation. Cost includes non-refundable
taxes, duties and other incidental expenses related to acquisition and installation.

(ii) The carrying value of fixed assets, both tangible and intangible, is reviewed at each Balance
Sheet date and impairment is provided for, if the carrying value of an asset exceeds its
recoverable amount.

(iii) Fixed Assets are physically verified in every year.

(k) Depreciation and Amortization methods, estimated useful lives and residual value

The Company has aligned the useful life of its fixed assets with those specified in Part C of Schedule II to
the Companies Act, 2013 wherever the useful lives of assets are determined.

The useful lives of the asset are detailed as under:

ASSET PARTICULARS USEFUL LIFE

Motor car 8 Years

Plant and machinery 13 Years

Computers 3 Years

Furniture & Fittings 10 Years

Electrical Equipment 10 Years

Computer software 6 Years

Computers 3 Years

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Mar 31, 2015

A. BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) in compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. Further in view of the revised schedule VI of the Companies Act, the company has also reclassified the previous year figures in accordance with the requirements applicable for the current year

b. GENERAL:

The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses.

c. USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognised in the period in which the results are known/materialised.

d. FIXED ASSETS:

Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation.

e. DEPRECIATION:

Depreciation is provided to the extent of depreciable amount on written Down Value (WDV) at the rates and method prescribed in the Schedule II of the Companies Act, 2013 and on pro rata basis for the additions / deletions during the year.

f. INVENTORIES:

There are no inventories lying with the company at the end of the period. Earlier, inventories were valued at lower of Cost or NRV.

g. REVENUE RECOGNITION:

Revenue is recognized and expenditure is accounted for on their accrual.

h. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash flow will not be required to settle the obligation. Contingent Assets are neither recognized nor disclosed in the financial statements.

i. INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than one year, are classified as current investments. All other investments are classified as long-term investments.

Current Investments are stated at lower of cost or market rate on individual investment basis. Long Term Investments are considered "at cost", unless there is other than temporary decline in value thereof, in which case, adequate provision is made against such diminution in the value of investments.

j. EMPLOYEE BENEFITS:

(i) Gratuity:

The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.

(ii) Provident Fund:

The provisions of the Employees Provident Fund are not applicable to the company since the number of employees employed during the year were less than the minimum prescribed for the benefits.

(iii) Leave Salary:

In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment.

k. TAXATION:

Taxes on Income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization.

l. IMPAIRMENT OF ASSETS:

As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:

a. Provision for Impairment Loss, if any, required or

b. The reversal, if any, required of impairment loss recognized in previous periods.

Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

m. BORROWING COST:

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

n. DEFERRED REVENUE EXPENDITURE:

Miscellaneous Expenditure are written off uniformly over a period of 5 years.

o. INCOME TAX:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods.

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Mar 31, 2014

A. BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) in compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. Further in view of the revised schedule VI of the Companies Act, the company has also reclassified the previous year figures in accordance with the requirements applicable for the current year

b. GENERAL:

The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses.

c. USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognized in the period in which the results are known / materialized.

d. FIXED ASSETS:

Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation.

e. DEPRECIATION:

Depreciation is provided to the extent of depreciable amount on written Down Value (WDV) at the rates prescribed in the Income Tax Act, 1961 and manner at written down value Method Rates and on pro rata basis for the additions during the year.

f. INVENTORIES:

There are no inventories lying with the company at the end of the period. Earlier, inventories were valued at lower of Cost or NRV.

g. REVENUE RECOGNITION:

Revenue is recognized and expenditure is accounted for on their accrual.

h. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash flow will not be required to settle the obligation. Contingent Assets are neither recognized nor disclosed in the financial statements.

i. INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than one year, are classified as current investments. All other investments are classified as long-term investments.

Current Investments are stated at lower of cost or market rate on individual investment basis. Long Term Investments are considered "at cost", unless there is other than temporary decline in value thereof, in which case, adequate provision is made against such diminution in the value of investments.

j. EMPLOYEE BENEFITS:

(i) Gratuity:

The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.

(ii) Provident Fund:

The provisions of the Employees Provident Fund are not applicable to the company since the number of employees employed during the year were less than the minimum prescribed for the benefits.

(iii) Leave Salary:

In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment.

k. TAXATION:

Taxes on Income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization.

l. IMPAIRMENT OF ASSETS:

As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:

a. Provision for Impairment Loss, if any, required or

b. The reversal, if any, required of impairment loss recognized in previous periods.

Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

m. BORROWING COST:

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

n. DEFERRED REVENUE EXPENDITURE:

Miscellaneous Expenditure are written off uniformly over a period of 5 years.

o. INCOME TAX:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods.

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Mar 31, 2013

A. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) in compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. Futher in view of the revised schedule VI of the Companies Act, the company has also reclassified the previous year figures in accordance with the requirements applicable for the current year

b. GENERAL

The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses.

C. USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognised in the period in which the results are known/materialised.

d. FIXED ASSETS

Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation.

e. DEPRECIATION

Depreciation is provided to the extent of depreciable amount on written Down Value (WDV) at the rates and manner at written down value Method Rates on pro rata basis for the additions during the year.

f. INVENTORIES

There are no inventories lying with the company at the end of the period. Earlier, inventories were valued at lower of Cost or NRV.

g. REVENUE RECOGNITION

Revenue is recognized and expenditure is accounted for on their accrual.

h. PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash flow will not be required to settle the obligation. Contingent Assets are neither recognised nor disclosed in the financial statements.

i. INVESTMENTS

Investments that are readily realizable and intended to be held for not more than one year, are classified as current investments. Ail other investments are classified as long-term investments.

Current Investments are stated at lower of cost or market rate on individual investment basis. Long Term Investments are considered "at cost", unless there is other than temporary decline in value thereof, in which case, adequate provision is made against such diminution in the value of investments.

j. EMPLOYEE BENEFITS

i. Gratuity:

The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.

ii. Provident Fund:

The provisions of the Employees Provident Fund are not applicable to the company since the number of employees employed during the year were less than the minimum prescribed for the benefits.

iii. Leave Salary:

In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment.

k. TAXATION

Taxes on Income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization.

l. IMPAIRMENT OF ASSETS

As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:

a. Provision for Impairment Loss, if any, required or

b. The reversal, if any, required of impairment loss recognized in previous periods.

Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

m. BORROWING COST

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

n. DEFERRED REVENUE EXPENDITURE

Miscelleanous Expenditure are written off uniformly over a period of 5 years.

o. INCOME TAX

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods.